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County opposes granting trust status to downtown tribal property

The Roseburg News-Review - August 18, 2005

Two Douglas County Commissioners write to the Federal Bureau of Indian Affairs opposing the placement of tribal land in tribal trust. ...

... The third County Commissioner, Doug Robertson, opposes the letter-writing program stating the economic benefit of tribal plans far outweigh the small loss of property tax revenue.

By John Sowell

Cow Creek Indians denied trust status for city property by county in order for county to save $975 in annual property taxes.

For the second time in the past year, Douglas County commissioners have penned a letter to the federal Bureau of Indian Affairs opposing the placement of land from the city of Roseburg in tribal trust.

Commissioners Dan Van Slyke and Marilyn Kittelman said it is unfair to saddle the county and other local governments and taxing districts with the loss of $16,000 provided annually through property taxes assessed to the Holiday Motel and the former Surplus Center.

The parcels, which total about 1.5 acres and are valued at $1.2 million, figure into the tribe's plans to build a convention and meeting center complex on the Washington Avenue properties formerly occupied by the Surplus Center and the Douglas County Farmers Co-Op. The tribe plans to continue to operate the Holiday, at 444 S.E. Oak Ave., as a motel.

"You pay taxes for services and to provide infrastructure to bring water to your property," Van Slyke said. "When you're not paying those taxes, you're placing a heavier burden on those who are."

Van Slyke and Kittelman voted for sending the letter.

Commissioner Doug Robertson, who said the annual impact to the county of the taxes is only $975 and wasn't significant, opposed the motion and said he would not sign the letter.

Robertson said the economic benefit from the convention center and the money and jobs it would bring outweigh the loss of the property tax revenue. Any concerns over the decision to place lands into tribal trust needs to be raised at the federal level, he said.

"This is a national issue. The conversation needs to be held among (Rep.) Peter DeFazio, (Sen.) Ron Wyden and (Sen.) Gordon Smith," Robertson said.

The city of Roseburg stands to lose the most money, $7,514 annually, if the two properties are placed in tribal trust. Still, the Roseburg City Council supports the move. Tim Freeman, the council president, said the tribe's convention center plans would benefit the community by bringing more visitors to downtown Roseburg.

The city is currently negotiating with the tribe to arrange for additional police and fire services needed for the convention center and to provide infrastructure improvements to roads and sewer lines leading to the properties. Freeman, who said he understands the county's concerns, said the tribe is more than willing to pay its fair share.

"We feel that a working relationship with them is important," Freeman said. "The tribe has the ability and the want to give back to the community."

Although the Roseburg School District would lose $3,646 each year in property tax payments, that amount would be made up by the state as part of its funding formula for public schools.

In their letter, Van Slyke and Kittelman asked the Bureau of Indian Affairs to halt moving any additional land into tribal trust until a plan has been developed that limits how much land can be placed in trust and takes into account the impact to rural communities.

Last October, the commissioners sent a letter to the Bureau of Indian Affairs to consider the economic impact if the property formerly occupied by the farm co-op was placed in tribal trust. Robertson and then-Commissioner Joyce Morgan signed the letter along with Van Slyke.

The Cow Creeks own more than 4,100 acres of property in Douglas County held in trust. As a sovereign nation, the tribe is exempt from paying property taxes on trust lands. The exemption is similar to that granted the county, cities and other public taxing districts such as school districts.

Van Slyke said he would like to see the tribe voluntarily pay a fee comparable to what it would pay if the tribe's holdings were not held in trust. Robertson said that any requirement that the tribe pay fees in lieu of taxes would be illegal.

Sue Shaffer, the tribal chairwoman, could not be reached for comment. Last year, when the county raised its concerns over having the co-op property placed in trust, Shaffer said she was angered and disappointed by the county's action.

She said the tribe had been a positive influence in the county, creating hundreds of jobs and providing millions of dollars to local nonprofit agencies. Under a gaming compact signed with the state, the tribe agreed to distribute 6 percent of its profits to charity.



* You can reach reporter John Sowell at 957-4209 or via e-mail at jsowell@newsreview.info.

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