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by Chelsea DuncanDespite disapproval from Douglas County commissioners, the Roseburg City Council decided Monday night the benefits of having a convention center near downtown Roseburg outweighs the loss of some property tax dollars.
The council passed a resolution in support of the Cow Creek Band of the Umpqua Tribe of Indians' application for putting two pieces of property along Spruce Street in tribal trust.
The tribe applied to the federal Bureau of Indian Affairs in July of 2002 and the application has since been approved. The bureau, however, has sought input from the city, which will be losing tax revenue from the property.
The 2.48-acre property, former site of the Douglas County Co-Op and valued at about $1.7 million, will create more than a $9,000 yearly tax loss for the city, but councilors and community members agree the benefits will far outweigh the loss in tax revenue.
At this point, the tribe plans to build a convention and meeting center at the site. Although it would not be legally required to pay property taxes, the tribe has indicated that it will pay for costs of development and future utility use.
Councilor Dan Hern expressed his gratitude for the tribe's past contributions to the community and said the new development on the property will add further benefit to the city.
"When the tribe is finished with it, it'll be worth four to five million dollars minimum," he said.But a recent letter to the Bureau of Indian Affairs from the Douglas County Commissioners expressed concern over the economic impacts should the land be added to the more than 4,100 acres already in tribal trust.
County Commissioner Dan Van Slyke said this morning it is the role of commissioners to make sure all aspects of moving land into tribal trust are thoroughly weighed for the sake of the taxing districts. He said he doesn't understand why the city is willing to give up the tax revenue at the same time it is attempting to annex property and raise water fees.
"There's sort of some mixed signals," he said, adding that the board will uphold the appeal despite a recent letter from the Cow Creeks asking for a withdrawal.According to 2001 property value figures given in the county's letter, the tribe paid $18,580 in property taxes. Aside from taxes paid to the city, the tribe paid $1,111 to the county and $4,977 to the Roseburg School District, among others.
Council President Tim Freeman said a letter will be sent to the BIA that grants approval of the process but also expresses the need to monitor future acquisitions.
"The solution we identified does continue to identify that we have concerns," he said, adding that these concerns can be mitigated if the governments continue to work together.Wayne Shammel, general counsel for the tribe, said while the economic concerns raised by commissioners and councilors are valid, the tribe has a right to tax exemption. He said this has been the longest process ever for tribal trust acquisition and that the county's appeal is delaying benefits to the community.
"This appeal isn't hurting the tribe, it's hurting the local community," he said.For the development to occur, he said the property needs to be put in tribal trust.
"That's how we afford it," he said. But he added that affordability is not the key issue because the tribe deserves tax-exempted land.The tribe is exempt from property taxation on tribal land because it is a sovereign nation.
Norman Neal of Roseburg expressed opposition at the meeting with concerns that if the tribe is allowed to continue placing land in the trust unchecked, the city will not be able to afford to pay for services.
"You're going to feel the impact of this down the road," he said, although he later admitted economic benefits do exist.David Jaques of Winston said, though, that the potential benefits and the tax dollars are "apples and oranges" because only tax dollars can be used on services such as infrastructure. He said he's glad the council will express their concerns to the federal bureau.
"I do commend you for that," he said.Rich said now the tribe will be aware of the city's concerns about future land placed in the tribal trust and he hopes the two governments can continue to work in partnership.
"I really believe that they'll take it to heart what they heard tonight," he said.
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