The Hermiston City Council voted Monday night to put together a resolution that would initiate proceedings to vacate a portion of W. Ridgeway Avenue, but not before a former council member warned them that doing so could likely result in an expensive lawsuit.
Longtime attorney and former city councilor George Anderson told the council that if it initiates vacation proceedings on its own, it would destroy his clients’ property values. Anderson is representing Darrel and Rhonda Sallee, who own Auto Kool and two other nearby tax lots.
Some background: On Oct. 8, the city received a letter from Justin Burns, an attorney representing Mitco Investments. The letter was in reference to Mitco-owned property northwest of the intersection of Highway 395 and Hermiston Avenue – the former Tum-A-Lum site.
In the letter, Burns informs the city that Mitco is requesting the city initiate vacation proceedings to clear the way for potential development on the south side of W. Ridgeway Avenue between Highway 395 and the railroad tracks.
Anderson told the council Monday night that doing so would significantly lower the Sallees’ property value “because West Gladys provides the only access to three of their separate tax lots.
Anderson said that state statute ORS 271.130 provides that unless the abutting property owners consent to the street vacation, the city is liable for all their damages.
“We conservatively estimate $1 million of damages if the city vacates the street,” Anderson told the council. “These are valuable properties, fronting Highway 395 and contiguous and together.”
Anderson said there were “simple solutions” that do not involve the city, such as having Mitco develop the property on its own and, if necessary, develop West Gladys Avenue into a paved city street.
“Second, if Mitco and its prospective purchasers want to use W. Gladys for its development, they need to acquire all of the property abutting W. Gladys,” Anderson said. “Then they can easily get the street vacated at their own request and at no expense to the city. But the city should not have to do this work for Mitco and its purchasers and end up paying tremendous sums of money both in damages and in attorneys’ fees.
“It is a simple, no-win situation for the city to proceed with Mitco’s request.”
Hermiston City Manager Byron Smith said the action taken by the council Monday night was to begin the process of vacating the property and that all property owners will be notified and public hearings would be held prior to the council making a final decision.
City staff will prepare a resolution to initiate vacation proceedings and the council will take up the matter at its Oct. 27 meeting.
Also Monday night, the council approved a six-month, $50,000 contract extension with its engineering firm, Kennedy Jenks. The council also voted to authorize Smith to sign a contract with Barton Laser Leveling for the Eastern Oregon Trade and Event Center pipeline and pump station project.
The council also proclaimed October to be Domestic Violence Awareness Month.
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