Dec. 30, 2009 - Making the Best Of It: Bean Counting

Jared Rennie, co-owner of Noble Coffee in Ashland, samples the effects of different roasting methods on green beans in the roasting room Tuesday. Mail Tribune / Jim Craven

By Damian Mann
Mail Tribune

EDITOR'S NOTE: This is the fourth in a six-day series on ways local residents are reinventing themselves in hard times.

Step inside Noble Coffee Roasting in Ashland's historic Railroad District and lines sometimes stretch to the door as customers happily part with $2.25 for a cup of java.

Opening a business in the middle of a recession is risky, but starting this high-end coffee shop last May with big-city pricing seemed even riskier.

"It's an affordable luxury," said co-owner Jared Rennie, who started Noble as a roasting business out of his garage two years ago and often mans the espresso machine in the coffee shop at 281 Fourth St.

Judging by his patrons, the coffee is more of a necessity than a luxury.

"I have the curse of seeking quality," said 28-year-old Ashland resident Nick Roberts. "They go above and beyond anything else in town."

Roberts said he's not well off, but he just can't abide bad coffee. He often savors two or three cups of his preferred brew while he works on his Apple computer.

"If the price seems high to you, you can go to a grocery store and get some Yuban," he said.

His girlfriend, Zoe Samczyk, said she likes the environmental ethic of Noble, which buys organic, fair trade coffee and offers only cane syrup and organic milk products.

"Everybody I know who makes coffee at home buys from these guys," she said.

Unlike her boyfriend, Samczyk limits herself to one cup of coffee but was sipping on tea during her visit Tuesday.

When the owners — three couples — first started planning the coffee shop in 2007, the economy seemed healthy. But by the time they opened last May, the recession hit hard and Rennie, who is a former teacher, and his partners wondered whether their idea would work.

"At that point we were already in it," he said. "You make a decision and ask yourself, 'Gosh, do we think our idea is good enough to open up in any given time?'"

Many businesses base pricing on what the owners think the market can bear, then go out and find the cheapest products to create as much profit as possible, he said.

But 33-year-old Rennie and his partners decided to gamble on a different approach: Buy the best quality beans, roast them on site, then brew the coffee in a French press. If it isn't drunk within 45 minutes, throw it out.

Rennie said the partners decided to find out how much it would cost to pour the perfect cup of coffee, then add a little extra on to make a profit for the owners.

They also gambled on the location, a side street away from downtown that was relatively quiet before they opened the doors.

As a result, they had to turn the coffee shop into a destination, which Rennie describes as modern, sleek and cozy. A bookstore, the Palace Cafe and other businesses also moved in this year, and the formerly empty street is crowded with cars.

"There's a renaissance in the Railroad District," Rennie said.

Many of his customers treat the coffee shop as a second office. Rennie points to two men working on computers who have been developing an Internet-based company.

From the first day of its opening, Noble hasn't lacked for customers. The number of employees has increased from five to 15 since May.

"It's beyond amazing," co-owner Kelly Sacks said.

Most of the customers are locals, said the 44-year-old Ashland resident, but sometimes a tourist on Interstate 5 will call looking for directions to make a quick pit stop for coffee.

Other owners include Carolyn Rennie, Steve Sacks and Caleb and Libby Peterson.

Jared Rennie started Noble out of his garage, selling beans online and to local businesses.

He speaks Spanish, so he's able to contact farmers directly in Costa Rica or Nicaragua. One of the premier beans he now sells is produced by a woman farmer in Costa Rica, Francisca Cubilla. Sacks of beans imprinted with her name, phone number and e-mail address sit on a pallet waiting to be roasted. Rennie said it is unusual to find a woman coffee grower in Latin America.

If you think $2.25 is a lot for a cup, try the $4 siphon pot brewing method that resembles a chemistry set and works on a vacuum system to filter the coffee from the grounds.

The siphoned version on Tuesday featured Cubilla's Costa Rican roast, which is also the top selling bean, costing $18 for a 12-ounce bag.

Rennie and roaster Sam Sabori demonstrated a process known as "cupping," in which they sample the effects of different roasting methods on green beans.

Customers can view the roasting through windows and watch as Rennie and Sabori almost stick their noses into a cup or loudly slurp a sample of coffee.

"Oh my God, that's strawberries," exclaimed Rennie, describing the taste of a blend of Sumatran and Ethiopian beans.

Sabori, who laboriously logs every roasting in a three-ring binder, said Noble tries to determine the roasting method that brings out the full flavor of the beans, which often contain subtle or pronounced berry flavors.

"We're trying to let the beans do what they want to do," he said.

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.

Dec. 28, 2009 - New law expected to curb metal theft

Michael Melton, general manager of White City Metals and Supply, stands next to bins of scrap wire. A new law requiring a state certificate to haul scrap metal will take effect Jan 1. Mail Tribune / Jim Craven

By Damian Mann
Mail Tribune

If you're going to haul away scrap metal from your yard, be prepared to get a state certificate Jan. 1 or you will be breaking the law.

Senate Bill 570 requires everyone transporting metal to get the certificate or risk a fine of up to $1,250 or a maximum 30 days in jail.

"What I'm encouraging people to do is to have the certificate — you can print it off the Internet, said OSP Sgt. Stephanie Ingraham. "Save yourself some trouble — just have it."

The certificate will require identifying where the metal was obtained, which doesn't sit well with people who routinely go to scrap yards.

"It seems like a big hassle," said Cory Corbett, a 23-year-old White City resident who works for a refrigeration company.

He brought a load of old refrigeration equipment, motors and condensers that he figured would fetch about $200 or $300 to Schnitzer Steel in White City.

Corbett said it would be difficult to figure out where everything came from, saying the motors were salvaged from 60 different stores.

Bobby Maley, a 31-year-old White City resident, said, "It's going to me a mess."

Maley goes around neighborhoods, knocking on doors, looking for scrap wherever he can find it. Maley said he will have to keep a log of where he gets the metal before he fills out the certificate.

If a person is stopped by law enforcement and doesn't havethe certificate, it would benecessary to prove ownership of the metal as a defense against any possible penalties.

The new law is designed to help law enforcement better track shipments of metal to crack down on the growing problem of metal theft.

Scrap metal yards will be required to inspect the metal transportation certificate and report any suspicious behavior.

Any attempts to alter metal so that its original ownership cannot be detected also is against the law.

Michael Melton, general manager of White City Metals and Supply, said the new law is an expansion of another law that took effect last Jan. 1 and requires his company to take a picture of the scrap sellers, their vehicles and the materials they bring in. In addition, a copy is made of the driver's license.

Many people burn off the insulation surrounding copper wire, but Melton no longer can accept it even though it is worth more money by the pound as bare wire.

Previously, he paid cash for many small transactions, but the state will be requiring a check. The check, however, will have to be held for three days before the seller can receive it.

Some sellers would bring in as little as 63 cents worth of metal, but Melton said he will have to institute a $15 minimum because of the extra paperwork for the checks.

He said the new procedures will be a hassle mostly for the sellers, but not for his company, which already has instituted about 90 percent of the new regulations.

"The big thing is getting people trained because it has been a free-for-all for so long," he said.

Melton said he has seen his fair share of suspicious activity over the years.

A woman was bringing in enough telephone cable each night to pocket $300 to $400. This went on for about four months in 2008 and 2009 before someone saw the woman with a telephone company logo on her shirt. An investigation ensued and the woman was arrested, he said.

One of Melton's employees was arrested in 2007 for stealing wire and hiding it in a lunch pail, then selling it later at Schnitzer Steel.

High prices for metal encourage thievery. Bare copper has been selling for $2.54 a pound and aluminum brings about 40 cents or more a pound, depending on quality.

Even with the new law, Melton said criminals will find a way to make money illegally.

"People are relentless in their pursuit of finding something to steal," he said.

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.

December 20, 2009 - Road warriors

Sue and Dan Young stand on the portion of Millers Gulch Road they own off Rogue River Highway near Valley of the Rogue State Park. The Youngs have been locked in a legal dispute over turnouts on the roadway with a silica mining operation up the road. -- Jim Craven


By Damian Mann
Mail Tribune

Litigation and bad behavior have become a way of life on Millers Gulch Road outside Rogue River, where an easement dispute between the property owners and a mining operation has dragged on for more than three years, sometimes turning violent.

"Somebody's going to get killed over this road," said one of the neighbors, Bob Caldwell Jr. "That's how bad it is."

The first mile of Millers Gulch Road, which is off Rogue River Highway near Valley of the Rogue State Park, traverses property owned by Dan and Sue Young. The couple have been locked in a legal battle over turnouts on the roadway with Magma Gold Inc., the owner of the Bristol Silica Quarry at the end of Millers Gulch. The Youngs, who have owned the property for 18 years, also have denied road access to nearby neighbors who don't have easements.

Neighbors came to blows in 2007, leaving one with a cracked skull and another with an arm gouged by gardening shears. Shots allegedly have been fired. And there have been confrontations with trucks using the road to get gravel from the quarry.

Disputes over road easements in Jackson County flare up frequently as questions arise over boundaries or vague agreements that may have been made a 100 years ago.

Most of the time they are settled, county officials say. But sometimes, as in the case of the Youngs versus Magma Gold, they must be resolved by the courts. According to the Jackson County District Attorney's Office, two or three cases in which a civil property disagreement turned criminal pop up each month.

"I think disputes over easements are very common," County Surveyor Kerry Bradshaw said. "You hear about them weekly."

Decades ago, the exact location of an easement wasn't that important for a couple of friendly landowners.

"It used to be just a handshake," said Bradshaw. "Now, it's got to be very black and white."

In the past, landowners often would move roadways regardless of easements because the rains would wash out the old tracks.

Bradshaw recalled one Phoenix property owner who wanted to develop a portion of a public right of way that was originally designated for an extension of Valley View Road. When the survey was conducted, the right of way was actually 200 feet from the existing roadway, Bradshaw said.

Property disputes tend to occur more often in rural areas, Bradshaw said.

"In urban areas, they don't get too upset about things being a half-foot off, but you get out in the country, and they will fight over an inch in a half-mile-long boundary," he said.

Who's at fault on Millers Gulch is still being played out in the courts, as the Youngs contend the mining operation has illegally widened an easement on their property. They also have warned nearby property owners who don't have an easement not to ride their horses or motorcycles on the road.

The Youngs face misdemeanor charges for various disorderly conduct and reckless driving incidents this year. They say the charges are based on overblown and unfounded statements and that initial misunderstandings with the Jackson County Sheriff's Department unfairly led to the charges levied against them.

They note a 2007 incident in which they said a front-end loader from the mine crashed into their truck. The court, however, found the Youngs' truck crashed into the loader, a ruling they continue to dispute.

"My husband's been beat up, arrested, shot at and run into," said 53-year-old Sue Young. "What's next — oh, yes, he's been sued."

Jackson County Circuit Court Judge Mark Schiveley has ruled in favor of Magma Gold's right to various turnouts along the road. Schiveley walked the roadway in an attempt to determine its boundaries, then ordered a survey.

In a Nov. 24 opinion, Schiveley said based on the Youngs' actions over the past year, he would have granted Magma Gold's earlier request for an injunction against the couple preventing them from interfering with the mining operation.

The Youngs' attorney, Mark Haneberg of Medford, will attempt to change the judge's mind about the turnouts when he appears in court Monday. If that isn't successful, the Youngs have vowed to appeal because they see the judge's decision to allow Magma Gold to access the turnouts as an unfair taking of their property.

Legal debates over Millers Gulch can be traced back to 1976, when a judgment was rendered affirming the center line of the roadway, but no clear determination was made at the time about the width of the road.

Haneberg said the roadway width has changed over time through various court decisions. One portion was 23 feet in 2002, then a court judgment in 2008 ruled it was 30 feet and now it is 38 feet wide, according to a survey last June.

Haneberg said the dispute over the easement on Millers Gulch has become obscured by neighborhood confrontations and other side problems that have erupted.

He said the basic issue is the mining company has taken more of the roadway than it should be entitled to according to the 1976 survey.

"In any case you've got this conflict that has turned bloody, even deadly," Haneberg said.

He said his clients got off on the wrong foot with the sheriff's department because deputies thought the private road was a public right of way.

"Somehow the police have made these people outlaws," said Haneberg, who has posted no-trespassing signs along the roadway. The signs have been defaced, he said.

His clients' blunt, no-nonsense demeanor hasn't helped the situation, Haneberg said. "They failed the attitude test with the sheriff's (deputies)," he said.

Haneberg said he was reluctant to take on such a complicated case initially, but when he saw the damage to the truck, he concluded it couldn't have run into the front-end loader. The damage was to the driver's side fender, not to the front of the truck, which sits in the Youngs' driveway. That kind of damage couldn't have been inflicted by a truck ramming a front-end loader, Haneberg concluded.

Dan Young said disputes over the road with neighbors below him led to the fight in 2007, which landed him in bed for a week after he was punched and fell to the ground, cracking his skull.

At first he didn't think he was badly injured, but ultimately he sought medical care. "If I hadn't gone to the hospital, I would be dead," he said.

"It sounds like a bad movie," Sue Young acknowledged, adding it probably didn't help when she called deputies "Nazis" when they surrounded her house.

Kendell Jackson, a Grants Pass attorney for Magma Gold, said neither she nor her clients would comment on the case.

In a court affidavit filed in June 2007, Janice Perttu, who leases the mine along with her husband, Rauno, stated the easement is about one mile long and averages about 20 feet wide, with three turnouts.

Perttu described various attempts by the Youngs to block access to the turnouts and confront customers with vulgar and profane protests.

"I am afraid if defendants persist, their behavior will become more violent and someone will get hurt," Perttu stated.

Sheriff Mike Winters said his deputies have responded to multiple complaints on Millers Gulch over the years.

In his years of experience, he said some property owners continue to think they control the road even though easements have been granted.

"The thing people can do is use your attorneys and use the court system and don't take the law into your own hands," he said. "Don't let anger cloud your judgment."

Winters said he doesn't know all the particulars of the Youngs' situation, but he said anyone who uses the court system over and over should review their own behavior.

Deputy District Attorney Laura Abraham said the charges against the Youngs are not major crimes, but involve such allegations as spraying someone with a high-pressure hose and throwing gravel at a car.

Generally in property disputes, Abraham said, it's one incident that erupts, leading to a charge filed against a property owner. In this case, there are seven separate charges against Dan Young and two against Sue Young.

"It's a strange situation," she said. "It's an example of where a civil problem can become criminal when people take things into their own hands."

Caldwell, a neighbor who said he saw the fight between Dan Young and another neighbor, said he didn't want to take sides in the controversy, but he believes the dispute has turned ridiculous.

"I think it is at the point that both sides have decided that no matter what the cost they are going to be the victors in this," he said.

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.


Dan Young shows a sign his attorney posted that was vandalized in the Millers Gulch Road dispute near Rogue River. -- Jim Craven

December 14, 2009 - Fighting for free speech

An Oregon Supreme Court ruling in 2006 determined a 1971 law limiting billboards outside of commercial or industrial areas was unconstitutional, allowing the Online Auction sign off Interstate 5 north of the Blackwell Road exit to remain. Alan Herson of Jacksonville was the winning attorney in the case.
--Bob Pennell


By Damian Mann
Mail Tribune

A landmark legal battle in Oregon that resolved a billboard dispute at Callahan's Restaurant has boosted a Jacksonville attorney's career and renown as he fights sign ordinances in dozens of cities and counties.

Alan Herson has been in the national spotlight lately in an ongoing legal battle to allow a new sign in San Carlos, Calif., that depicts Sarah Palin and supports her bid for the presidency in 2012. A federal judge ruled in October that the city should stop enforcing part of its sign ordinance because it restricts free speech.

Herson, 63, is fond of taunting government bureaucrats by paraphrasing the famous Superman quote, "I'm fighting for truth, justice and the American way."

"It gets the opponents really upset when I say that," he said.

Herson said many of the more than a dozen cases he's filed in California and Oregon have been settled because it is difficult to craft a sign ordinance without stomping on the First Amendment's right to free speech.

In Jackson County, Herson fought for Callahan's right to erect an illuminated sign off Interstate 5 near the Siskiyou Summit, which was opposed by county officials and the state of Oregon.

"If he hadn't have stepped in, we wouldn't have had any sign," Callahan's owner Ron Bergquist said. "We wouldn't have been in business."

The Oregon Supreme Court in 2006 determined a 1971 law limiting billboards outside of commercial or industrial areas that advertise something not available on the premises was unconstitutional.

Bergquist, who started his fight in 1996, said he built the sign without permission after the county rejected it. At the time, he said he vowed to fight against any government entity that threatened to take it down because it would violate his free speech. "We will protect our property with firearms if necessary," he said.

Bergquist said he pays $30,000 a year in taxes on his property, zoned interstate commercial, so he thinks that should have given him more sway with government officials when he erected a sign designed to attract visitors from the freeway.

While he thinks sign ordinances conflict with free speech, Bergquist said he's conflicted himself about the idea of allowing billboards everywhere in Oregon.

"I value the beauty of Oregon," he said. "I don't want to see freeway billboard signs every 100 feet."

Herson himself lives just outside of Jacksonville, which is not known for a proliferation of signs.

His latest battle is in San Carlos, where he has been fighting for the right for his son to erect a billboard. The city has banned billboards since 1991.

The suit has drawn national attention because the billboard owner wants to put up a Sarah Palin-for-president photo in a liberal area.

Herson said he believes he will prevail in San Carlos because sign ordinances face an uphill battle against free speech.

"Governments tend to be restrictive and order people around, and they shouldn't," he said.

Contrary to the naysayers, getting rid of Oregon's sign law hasn't led to a flood of new billboards, Herson said.

"Oregon survived the overturn of that law," he said.

Rep. Peter Buckley, D-Ashland, said it has been difficult to craft a state law that could address billboards without infringing on free speech in light of the Supreme Court ruling, but that the Legislature likely will keep working on it.

Though some billboards have sprouted up in Oregon since the Supreme Court ruling, Buckley said, "It has not resulted in an explosion of billboards."

Bernie Zieminski, a property owner who has an "onlineauction.com" sign near Gold Hill, said he doesn't know Herson personally, but the Supreme Court ruling meant that he could keep his billboard.

"That pretty much shut everybody up," he said.

Both the county and the state wanted Zieminski to remove it before the ruling. Recently, Zieminski had the sign replaced because the old one was fading.

"After we kicked their butt, they've stayed out of our hair," he said.

Reach Damian Mann at 776-4476 or dmann@mailtribune.com.

December 10, 2009 - Price for Medford I-5 work balloons

By Damian Mann
Mail Tribune

The south Medford interchange, the largest road construction project in Jackson County since Interstate 5 was built, costs $20 million more than previously reported, a disparity that has caught local officials by surprise.

"My jaw dropped," Commissioner Dave Gilmour said. "That is a lot of money."

On its Web site and in other discussions, the Oregon Department of Transportation has said the project costs about $70 million — but that number is three years out of date.

"From the beginning, we should have gone back and revisited that number," ODOT spokesman Gary Leaming said. "It should have been updated to reflect ongoing material costs and change orders and the scope of the project."

The actual cost is $91 million, according to the latest ODOT numbers, which includes $75 million for the interchange, $12 million for two bridges over Bear Creek on the interstate, $3.2 million for reconstruction of the freeway and $489,000 for work on the Greenway.

The extra projects, which were bundled in with the south Medford interchange project, together amount to $15.7 million. Most of the money to pay for them came from a state bridge renovation fund and interstate maintenance dollars.

All these projects have been referred to by ODOT as being part of the south Medford interchange project, even though they were paid out of other pots of money.

"In our conversations we kind of lumped everything together," Leaming said.

In addition, there have been increased fuel, asphalt and material costs and change orders.

The largest chunk of money for the interchange went to contractor Wildish Standard Paving of Eugene, which was awarded the bid of $59.6 million, $45 million of which was specifically for the interchange. When Wildish got the bid in 2006, it was also going to build a portion of the Bear Creek Greenway path, rebuild two bridges over Bear Creek and rebuild the Barnett Road bridge over Bear Creek.

Since then, material cost increases and change orders put the total construction amount at $71 million, which also includes the reconstruction of the lanes on I-5 from the interchange to the viaduct. Another $20 million purchased land for right of way.

Estimates for the south Medford interchange went up and down during the design phase. At one point, ODOT thought the project would cost $83 million in 2005, but it was later revised down to $70 million. About five years before the project started, ODOT estimated the interchange would cost about $50 million.

When cost projections escalated in 2006, Gilmour and other local officials objected to ODOT using about $13 million for the interchange from an account that had been earmarked for the Highway 62 bypass, which is now a front-burner project.

ODOT has been asking the county's support to build the bypass, but commissioners haven't embraced it yet.

Gilmour said the interchange is costing so much more than original estimates it makes him wary of endorsing the bypass.

"This is far and above what you'd expect from cost overruns," he said.

He said borrowing money from the bypass set a bad precedent that could harm future road projects, particularly if costs escalate.

Leaming said confusion over estimates for the south Medford interchange project has taught ODOT to be more conservative.

"It shows that the department needs to really sharpen its pencil and factor these costs out," he said.

Medford Mayor Gary Wheeler, whose city contributed $15 million toward the interchange, said he didn't know the cost had jumped.

"I'm not familiar with that kind of cost level," he said. "I haven't heard that figure."

Ernie Garb, a Medford resident who was heavily involved in transportation planning when the south Medford project was proposed, said he remembers when cost projections were $35 million, reported in 2001.

He said he was dubious about the estimates ODOT provided back then and suspected the cost of the project would get out of control. He said he's not so much surprised at how much the project is now costing, but angry.

"For me, that is outlandish," he said. "The original cost projections weren't even close to the target."

If people knew the south Medford interchange would be close to $100 million, Garb said the opposition would have been formidable.

Garb said that with the interchange almost completed, he still doesn't understand the logic of building it in the first place.

"This history of it is really a rotten history," Garb said.

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.

December 8, 2009 - Homeless struggle to find warmth

Cary, a homeless man who didn't want to give his last name, tries to warm up in the morning sunlight of Medford's Hawthorne Park Monday after spending the night outdoors.
--Bob Pennell

By Damian Mann
Mail Tribune

A recent cold snap has sent the shivering homeless searching for a better place to sleep than bedding down on the ground.

"That's dangerous for anybody to sleep outside," said Emilio Murillo, a Medford resident who has been struggling to find a job.

The 52-year-old joined other homeless people at the Medford Gospel Mission as temperatures plunged into the teens at night. "Nobody really wants to be here, but they have no choice," Murillo said.

On Monday the mission at 125 W. Jackson St. allowed more people than normal to spend the night because of the cold weather expected for the next few days. The First Presbyterian Church at 1615 Clark Ave., Ashland, will open its doors every night at 8 as an emergency shelter through Thursday.

Murillo, who works in construction, said he occasionally finds work that gives him enough money to stay in a cheap motel for the night, but has found himself at the mission from time to time. "The last five or six months have been rough for me," he said.

Some homeless people say they don't like the cold but don't want to adhere to shelters' policies of no drugs or alcohol.

"I almost froze to death last night," David McManus said. "I use alcohol to stay warm."

The 55-year-old Medford resident, who was in Hawthorne Park exhaling frosty air while warming himself in the sunshine, said the mission allows him to stay for 10 days, then he has to wait 30 days to return.

He didn't want to reveal where he bunks down, but McManus said the trick is to keep the location clean so you don't attract attention.

Mission Executive Director Bill Gourley said his organization decided to temporarily set aside the 10-day rule because of the cold. He invited five or six men who otherwise wouldn't qualify to spend the night Monday.

"When it's like this we don't count it against them," he said.

He said his operation has 76 beds if needed, but it also can put out mats.

So far, he has been averaging about 50 people a night, but expects more will arrive once the word gets out.

Many homeless people choose to sleep outdoors or in their vehicles. Some are well-prepared, with donations of high-quality sleeping bags or lots of blankets, he said.

"But who wants to crawl out of a sleeping bag when it's 19 degrees?" he said. "I've done it myself when I was deer hunting."

At the mission, Justin Green said his feet and toes would get very cold when he slept outdoors. He tried to find a place to bunk down that had a little shelter from the wind and rain.

He expected to spend his third night in a row at the mission Monday.

"I don't really have a place to stay," he said.

Ruth Coulthard of the United Church of Christ said 10 people showed up Saturday at her church when it was turned into an emergency shelter. Five showed up at the First Presbyterian Church Sunday night when the shelter was moved there.

She said anytime the forecast calls for 20 or below, the emergency shelter is opened.

"It's definitely a severe cold snap," Coulthard said.

The Medford mission's Women and Children's Shelter at 534 N. Bartlett St. hasn't seen any surge in activity because of the cold.

"Women don't really sleep out on the streets like the men do," said Nancy Satterly, resource manager. The women generally qualify for grants to get housing, she said.

Satterly said the organization averages 30 to 35 women a night, with four or five kids, but could easily handle more.

"We don't turn them down," she said. "We find a place for them."

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.

December 5, 2009 - Klamath pact creates concern

Pear grower Ron Meyer walks by a holding pond at his orchard in Talent. The debate among farmers, ranchers and American Indians over Klamath Basin water has raised concerns that Jackson County farmers could lose access to water that is piped in from the Klamath River.
--Jim Craven

By Damian Mann
Mail Tribune

An intricate network of lakes and canals brings water from the Klamath Basin to the 14,000 pear trees that Talent orchardist Ron Meyer calls his "pampered darlings."

Meyer thought his right to that water was secure because Congress authorized the Bureau of Reclamation in 1954 to improve the Talent Irrigation District. Three hundred miles of canals provide Klamath Basin water to Jackson County farmers and orchardists, but they fear their supply of that water may be affected by complicated negotiations about where the water will flow in the future.

"If we were cut dramatically, we would have to do something else," Meyer said. "The water rights are precious."

The much-debated Klamath Basin Restoration Agreement could lead to the removal of four dams, and it outlines water allocations among a variety of interested parties. The agreement could be signed in 2010.

More than half of the water that flows through the TID canals comes from the Klamath side, filling reservoirs such as Howard Prairie, Hyatt and Emigrant. Jackson County orchardists and water managers are concerned that the agreement could reduce their Klamath water or turn off the tap completely.

Jim Pendleton, TID manager, said that in general about 15,000 acre-feet of the district's water is from the Rogue River basin, while 20,000 to 24,000 acre-feet flow from the Klamath.

"We don't want to lose it," Pendleton said. "We don't want to just give it away."

If the Klamath water supply to Jackson County was stopped, it would cripple the water district, Pendleton said.

"A few drought years would put us under quickly," he said.

Much of the Klamath water serves the Talent district, but it also feeds the Medford and Rogue River districts' canals.

Jeff Mitchell, a lead negotiator for the Klamath tribes, said local farmers shouldn't be worried, that the water diverted to Jackson County is not in contention as various parties work through the complicated restoration agreement.

"It's not a lot of water in the big picture," Mitchell said. "I do understand that to folks over there (their share of the water) is the big picture."

He said the agreement that is being worked out is more concerned with preserving or improving fisheries and sharing resources.

"At the end of the day, I don't see anybody giving up their rights," he said.

He said rumors that the agreement could have an impact on Jackson County farmers are just part of what he sees as an effort to undermine the ongoing discussions.

"That's the fear-mongering that goes on by certain people," he said.

But others say tribal authorities have made no such promises on paper and that, regardless of the intentions of current tribal leaders, future decision-makers could change course and close the valves.

Medford resident Larry Nicholson, who has a ranch in the Klamath basin, said he's worried the agreement will ultimately give American Indians total control over the water used by local farmers.

"It gives the Indians all the water rights without any due process," he said.

For orchardists like Meyer, an adequate supply of water is essential to raising fruit that will sell in today's demanding market.

The right combination of water, labor and chemicals means that 80 percent of the pears he grows are the right size for market, he said.

When the family orchard started 100 years ago, Meyer's grandfather got by with dry farming, but the pears were smaller than what will sell today, he said.

In the early 1900's, there were 400 pear growers in the Rogue Valley; currently there are just 15, he said.

Meyer said he already tries to maximize the water efficiency of his orchard. He uses a sprinkler system that operates in two-week cycles to provide the right amount of water to size his fruit for the market.

Meyer said he's not sure about all the legal debates over the Klamath water, but he does know that local orchardists won't give up their share without a fight.

"If there is going to be pear orchards and farming here, we need the water," he said.

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.

December 2, 2009 - County will take a look at medical pot gardens

By Damian Mann
Mail Tribune

Jackson County commissioners headed into potentially controversial territory Tuesday to pursue land-use regulations that could curb large-scale medical marijuana operations.

Responding to complaints from neighbors of medical marijuana gardens, the commissioners directed planning and legal staff to craft an ordinance that would regulate traffic, noise, smell, visibility of the gardens and lights used for growing and prohibit cultivation within 1,000 feet of a school.

County legal counsel Frank Hammond told commissioners a local ordinance may be legally feasible because state law regulating medical marijuana doesn't address land-use issues with gardens.

But there likely would be legal challenges from marijuana advocacy groups, he said.

"One of my points is this whole thing would be very controversial," he said.

Some of the concerns could be addressed in Initiative 28, an effort that would regulate growers in Oregon and subject them to state oversight, said Rep. Peter Buckley, an Ashland Democrat.

Buckley said Initiative 28, which has about half the signatures necessary to put it on the November 2010 ballot, could end the problems associated with fly-by-night growers.

Buckley is a strong supporter of state medical marijuana laws, but he said he is also concerned about the behavior of some growers.

"It is extremely frustrating for me when people who are involved in the program as growers don't behave like responsible citizens," he said.

Buckley said the Legislature isn't likely to deal with land-use problems associated with medical marijuana when it convenes in February for a limited session.

With 2,418 medical marijuana cardholders, Jackson County has the third highest number of patients using the drug behind Multnomah and Lane counties, according to the Oregon Medical Marijuana Program.

A caregiver can grow up to six mature plants and 18 starts and seedlings per patient for up to four patients.

The county cannot create an ordinance that contradicts or is more restrictive than the state medical marijuana law, Hammond said.

He suggested commissioners consider regulating marijuana cultivation as an agricultural use.

The county leaders wondered whether the nonprofit marijuana gardens could be treated as a small business.

Commissioner Jack Walker likened them to an operation that wanted to open a rock quarry.

Hammond said that under state law, growers can be reimbursed for expenses but can't make a profit like a regular business.

Commissioner C.W. Smith said he is concerned that growers are banding together to create large operations that increase traffic and cause other issues in neighborhoods.

"It is a quasi-commercial event, even though it is not a profit-making one," Smith said. He noted that he doesn't have a problem with people who have medical marijuana cards.

Smith said the state should have more oversight of marijuana since it is still considered a controlled substance.

Commissioner Dave Gilmour said some of these gardens are a nuisance in some neighborhoods, and he thought it appropriate to have some restrictions.

Bruce Mirken, spokesman for the Marijuana Policy Project, a national organization that has sought to decriminalize marijuana, said most of the conflicts with medical marijuana have arisen over dispensaries, not the gardens.

In general, he said his organization doesn't have a problem with reasonable laws that deal with neighborhood nuisance problems that might arise from marijuana gardens.

"There may be some things not solvable by the law," he said. "Living with other people in society requires dealing with some level of nuisance."

For instance, a homeowner who lived next to oil fields couldn't shut down production just because he didn't like the smell, Mirken said.

He said commissioners are confronting the kind of neighborhood concerns local governments face every day.

"They are trying to find a way to solve legitimate legal concerns," he said.

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.

November 28, 2009 - Hispanic families urge school uniforms

By Damian Mann
Mail Tribune

Alarmed by increased gang activity in the area, several Spanish-speaking families have asked the Medford School District to consider requiring school uniforms for students.

A letter sent to the School Board on Nov. 18 from 17 parents cited recent gang-related incidents in Medford and said uniforms would reduce the problem created by clothing colors associated with gangs.

"They think that would help alleviate the gang activities in our communities," said Yolanda Ortega, a North Medford High English language development teaching assistant.

She and other members of her department worked with the parents to draft the letter and put their words into English.

The parents raised concerns that school colors are red and black at North Medford High School and blue and gray at South Medford high. The Nortenos, "northerners" in Spanish, identify themselves with the color red, while the Surenos, or "southerners," often wear blue.

"Some parents are worried about their students being targeted because they were wearing a specific color," Ortega said.

She said the concern increased after a recent gang-related stabbing on Sept. 15 on Beatty Street and a separate stabbing at a coming-of-age party on Nov. 7 for a 15-year-old girl at the Ramada Inn on Biddle Road.

Gang activity still has not had much effect in local schools, Ortega said, adding that students who appear to have any gang affiliation tend not to stay in school for very long.

Some school districts around the country have adopted dress codes or require uniforms.

Waldo Middle School in Salem has had a dress code since 1997, giving students choices among four colors: navy, white, dark green or tan. Only solid colors can be worn, and the school has other restrictions on the type of clothing. In a 1998 legislative report, it noted that discipline problems fell 23 percent in the year after the dress code was adopted.

Ortega said there was discussion among parents about the cost of uniforms and how some families would pay for them.

"Parents can't afford to buy the uniforms," she said.

Eric Dziura, Medford School Board chairman, said the idea of uniforms is not an issue that's currently on the district's radar.

"There is nothing that would warrant it at this point," he said.

Dziura said he first heard of the request from parents on Friday.

During recent talks with the Medford Police Department, School Board members learned that gang activity has increased in the area, Dziura said. But there have been no reports of increased problems at schools, he said.

The idea of school uniforms could be considered by the School Board in the future, he said, if there is an uptick in gang activity on campuses.

"If we have particular concerns, we'll take it up," Dziura said.

Kim Lockett, an English language development teacher at North Medford, said very few students are affiliated with gangs.

"It does not impact daily school activity, usually — certainly not in the classrooms," said Lockett.

She said requiring uniforms might reduce the potential for gang activity at the school, but it wouldn't solve the underlying problem.

"I think it's more complex than colors," she said. "In the long term, what young men need is an education — and young women do, too.

"Kids who think they don't have a future turn to gangs."

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.

November 26, 2009 - White City plant nears closure

By Damian Mann

Mail Tribune

WHITE CITY — Jack Lewis will spend the next week closing the Timber Products plywood plant on Agate Road while he struggles to find a new job in a county hard hit by high unemployment.

"We're just locking it up, and we're done," said the 55-year-old maintenance superintendent, who has worked at two timber products operations in White City over the past 24 years. "I'm being laid off."

The Medford man worked for Burrill Lumber across the street for 22 years as a maintenance superintendent before landing the same job at Timber Products two years ago. "I've been doing this a long time," he said.

Timber Products Co. will move its Southern Oregon softwood plywood production to Grants Pass, leaving only two remaining plywood plants in White City.

On the same street as Timber Products, Boise Cascade, Royal Oak Charcoal and Burrill Lumber have all shut their doors in recent years.

Springfield-based Timber Products officials said 14 of the 44 workers at the plant likely will lose their jobs.

The plant made specialty plywood that was thick enough to support diesel engines as well as other construction plywood used in floors and walls.

Of the workers remaining, 28 will go to the Grants Pass plant or to the Spectrum Division, which makes decorative laminates on Avenue G in White City. Two others will be reassigned elsewhere in the company.

Tracy Wills, a 70-year-old caretaker of the former Burrill Lumber plant, gazed down Agate Road, which more and more resembles a ghost town, and shook his head at the closure of the Timber Products Co. plywood plant Wednesday.

"It's going to be a hardship for the whole community," Wills said.

Wills stacked old pallets with his forklift next to Agate Road, making it easier for people to collect some firewood in these tough economic times.

Wills, who has worked in the timber industry since he was 17, and other local residents reacted with alarm to the news that another wood products company has shut its doors, striking another blow to what had been a strong economic base for the community.

Wills, who said he lives in a shack on the Burrill property, said a combination of timber policies and the economy have hit the local industry hard.

"Why make a product if you can't sell it?" Wills said.

Like other local residents, he blames federal regulations that have put much of the forests off-limits.

"I think it's stupid," said Wills. "There's so much timber in this country."

Eagle Point resident Jaime Harra, who was picking up some of the pallets, said it was a surprise to hear the Timber Products plant was closing.

"I think it's really unfortunate," the 28-year-old said. "Some friends of mine were laid off from there."

She said one of her friends is going back to school to get retraining, but is upset at finding himself among the growing ranks of the unemployed.

"It's too bad when you have a family and lose a job," Harra said.

Dave Schott, of the Southern Oregon Timber Industries Association. said there are only two remaining plywood mills in White City, one owned by Murphy Veneer and the other by Boise.

Timber Products also has a Medford plant that produces cabinet-grade plywood.

The demand for plywood is down markedly because housing construction has been crippled by the recession, Schott said.

Single-family and multiple-family residential building has declined from more than 2.1 million units annually to little more than 500,000 this year.

With the closure of the White City plant, Schott said it means the area is rapidly losing its critical mass of wood production facilities.

"It's another nail in the coffin," he said.

In downtown White City, residents shook their heads at the news.

"That's going to hurt businesses around here," said Brian Cassen, a 48-year-old veteran who lives at the Department of Veterans Affairs' Southern Oregon Rehabilitation Center and Clinics. "It's sad to see that it's going to shut down. The percentage of homelessness is going to go up, and people are going to be begging to feed their kids."

Lewis said he's already looking for a job in the same field and can't afford to stay on unemployment for too long.

Despite how difficult it is to find a job right now, Lewis said he will just keep working at it.

"It's been a couple of weeks since I found out," he said. "The shock is over. The emotions you through are pretty much over. You're in a survival mode and you go out and find another job."

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.

November 25, 2009 - Giving thanks

By Damian Mann

Mail Tribune

Nine-year-old Codie Dunlap could hardly contain her enthusiasm while standing in line for more than an hour to get a turkey and a pie from the Salvation Army.

"I think this really helps people with the holidays," said the White City girl. "It gives people a chance to have a really good Thanksgiving."

Her mother, 28-year-old Stacy Hamlin, added, "It won't be so depressing."

Hamlin, Codie and her two sisters joined 964 other families for the biggest turnout for a Thanksgiving food program in the local Salvation Army's history.

The line that stretched for almost a block at the old Lithia Dodge building on Fifth Street underscored the economic hardships many families are enduring this holiday season.

"There was no line last year," Hamlin said.

Her daughter said the food will help her family enjoy the holidays.

"We're really running out of money," Codie said. "This will give us a chance."

Jackie Agee, the Salvation Army's development director, said at least 50 percent of those asking for help this year did so for the first time, many because they recently were unemployed.

Agee said the Salvation Army last year offered families a choice between a Thanksgiving dinner or a Christmas dinner.

About 800 chose Christmas and 200 families chose Thanksgiving.

Because of the recession, the Salvation Army decided to offer dinner donations for both holidays for all the families who registered.

"It's the most we've ever offered for a Thanksgiving," she said. "We knew it was going to be a tough year for families and we decided to do it this way."

Her organization had a limit of 1,000 meals, but 964 signed up so no one was turned away, said Agee. Families get all the fixings for their holiday dinners, from turkey to potatoes to yams and fruit.

Donations from businesses and individuals, as well as funds from the Salvation Army, paid for the food.

The organization will hand out food and toys for children under 14 at 9 a.m. Dec. 16-17 at the old Lithia Dodge building, 315 Fifth St., Medford.

The two events will assist 3,605 people, of which 1,827 are children.

Debra Fossen, a 35-year-old Shady Cove mother of three, said her husband's hours were cut back at work, making it more difficult on her family, particularly during the holiday season.

The Salvation Army food will make all the difference, she said.

"I've never done this before," said Fossen. "I usually don't like to take advantage of these kinds of things."

Heather Anderson, a 32-year-old Medford mother, said this was her first time receiving donations from the Salvation Army.

"I was thinking, 'Was it worth the wait?' It is," she said. "I thought to myself 'that's a lot of people in need.' "

Wheeling her 18-month-old son, Damien Moredock, in a stroller, Anderson said this will help her enjoy the holiday season a bit more. "Every little bit helps," she said.

Medford resident Jose Ramirez said he got laid off last year as a migrant worker and was a very happy man after loading up his car with a turkey, fruit, sour cream and a large pumpkin pie.

A single parent, the 40-year-old father said the donation from the Salvation Army will make for a very nice Thanksgiving dinner for his four children.

"I know I appreciate it very much," he said.

Two of his girls who accompanied him liked the food, but they didn't like the wait.

"It was so cold,' said his 14-year-old daughter, Danielle.

Ramirez said his unemployment benefits ran out, but he managed to get a job at a McDonald's.

With money still tight, Ramirez and his family usually make do with a large pot of beans, rice and homemade tortillas they make together. "That's saving us quite a bit of money," he said.

Despite his situation, Ramirez said he takes everything in stride.

"You just keep on moving down the road," he said. "You try to keep a good attitude."

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.

November 18, 2009 - An Unstable Stabilizer

By Damian Mann

Mail Tribune

A federal program designed to stabilize communities hit hard by foreclosures has left one Medford couple at their wits' end trying to find a lender so they can buy a house.

"It is a very unstable program," said Jaymi Bowers, a 26-year-old mother of two. "I want the public who is trying to use this program to know what they are in for."

Bowers and her 29-year-old husband, Matthew, received approval from the federal government to buy a foreclosed home under the Neighborhood Stabilization Program that assists families with the down payment. The Bowerses were the first family to qualify under Medford's version of the program on Sept. 4.

They discovered that lenders are reluctant to loan through this program because it has changed frequently, it requires more paperwork and the federal government pays a substantial amount of the down payment.

The city of Medford has received $459,260 in federal neighborhood stabilization funds to divvy out in the next two years. The funds may be used for the purchase price of a foreclosed home, all in an effort to keep homes occupied and prevent neglect and neighborhood blight often associated with foreclosures.

Nationwide, about $4 billion is available through the program. Oregon's share is about $19.6 million.

Another Medford resident, Tom Ellis, was the first neighborhood stabilization grant recipient in Oregon in July. He was awarded about $50,000 to put toward the purchase of his home or to make home repairs and upgrades. Ellis was part of the state's test version of the program, while the Bowerses are part of a program administered in Medford.

Karen Cooper, who is a broker for American Pacific Mortgage Banker and represents the Bowerses, said the program is frustrating for her clients and everyone else involved.

"They've felt like they've been stuck through a ringer, and so have I," she said.

"There have been so many changes that I don't think the underwriter knows what is up."

In February, the program allowed for the paying of repairs on a foreclosed house before the sale was concluded. "That's gone now," she said.

To qualify for the program, a family of four would have to earn a maximum of 120 percent of the Jackson County median income, or $66,500, she said.

Lenders are wary of families that earn about $50,000 because they may be at risk of defaulting on their mortgages if one of the wage earners is laid off.

Despite the difficulties for the Bowerses, Cooper said she believes most of the paperwork has been completed. If the sellers agree to extend the contract and make repairs to the house, the Bowerses could close in about a week, she said.

They would like to buy a small north Medford home for $165,000 that was built in 2002 and is now owned by a bank. To qualify for the loan, they had to have a good credit score; theirs is 790. Jaymi Bowers is a beauty consultant and her husband works for a landscaping company.

Bowers said her beef is not with the federal stimulus program but with lenders leery of providing loans under it.

"None of them wanted to work with the Neighborhood Stabilization Program," she said.

Her husband said the program is great for people to get into if they've got the patience. He said they will have to come up with $2,800 to qualify with the federal program kicking in about $38,000.

"It's a program that's really good, but it's not working," he said.

Judi Robinson, senior loan officer with People's Bank, said the new loans are more difficult to process and haven't been well received by banks and lending institutions.

"Investors are a little bit shy of them," she said. "Some of them just want to throw their hands up."

The down payment contributed by the federal government is considered a "silent second," which is owed when the house is sold, which scares some investors, she said.

Despite the problems, Robinson said the federal program is generally good and she thinks lenders should get on board with it to ease the foreclosure mess.

Robinson, who is currently processing two of these types of loans, describes the program as a creative way to help solve the problem, though it has had a few snags.

A year into the program, the government is just now making the forms available online, she said. Also, the Federal Housing Administration doesn't yet have all the answers that lenders might need, Robinson said.

It also can take an extra month to process the loan, which can be a problem, Robinson said.

"It's not an easy product to put together," she said.

Jaymi Bowers said many people trying to take advantage of the Neighborhood Stabilization Program might panic and give up, but she recommended patience.

Though she has been disappointed before, she said that signs indicate she may get her loan.

"It looks like it's going to go through," she said.

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.

November 17, 2009 - Land Group Challenges County Over 10-Acre Rule

By Damian Mann

Mail Tribune

A land-use watchdog group has charged that Jackson County is attempting an end run around its own zoning laws that could clear the way for sprawl in rural areas.

Rogue Advocates last week filed a 36-page challenge with the Oregon Land Use Board of Appeals over a decision by the county to allow division of a 340-acre property near Johns Peak into 10-acre parcels.

"Our issue is that it generates sprawl," said Jimmy MacLeod, spokesman for the nonprofit group.

MacLeod said the county essentially sidestepped a more rigorous state process that is normally required for these types of zoning changes, an argument disputed by county officials.

The property owner, Edward Cox, has been attempting to develop the land near Jacksonville for years, including filing a claim under the failed property rights initiative known as Measure 37. He then applied for a zoning change from forest to rural use, a new county zoning designation that allows a 20-acre minimum if it can be proved the original zoning was incorrect.

However, Cox has since decided to ask Jackson County to change the property from forest to another zoning category known as rural residential, which would allow it to be divided into 10-acre lots. Cox presented arguments why the property should not be classified as forestlands, and the county approved the request.

Kelly Madding, the county's Development Services director, said the county disagrees with Rogue Advocates' position, citing recent legal actions that have come down in favor of counties that changed the zoning, if warranted.

She said the county's intention is not to encourage sprawl, but to look at each land-use application on an individual basis. If the owner presents arguments showing why a property shouldn't be considered forestland, Madding said the county will determine whether the arguments are valid.

"We're looking at this case specifically," she said.

Madding said the county's position is that the rural use and rural residential zoning are two different issues.

She said she has no way of determining whether the county's action would encourage sprawl as members of Rogue Advocates have maintained.

"I don't know the answer to their question," she said.

However, she said that in the past it has been difficult for many property owners to make the case that their properties aren't zoned appropriately.

The county created the rural use zoning in 2006 after planning officials and county commissioners agreed that a 20-acre minimum lot size was the most appropriate in rural settings because it would be less disruptive to wildlife and wouldn't strain police and fire services in nearby communities.

When the rural use zoning was first approved, commissioners adopted a 10-acre minimum, but the Oregon Court of Appeals upheld a challenge to that minimum by local cities. After much debate, commissioners finally adopted the 20-acre minimum.

Now, the county is permitting 10-acre minimum lot sizes on Cox's property, which runs counter to the logic of the rural use zoning, MacLeod said.

"Effectively, it nullifies rural use," he said.

Cox's Medford attorney, Mark Bartholomew, said the county's approval and the county commissioners' interpretation are correct in determining the property should have the rural residential zoning.

Bartholomew said his client provided ample evidence why the property wasn't zoned correctly.

"The record is loaded with evidence why this is not good timberland," he said.

MacLeod said that if the rural-use zoning weren't on the books in this county, Rogue Advocates would not have been able to file its appeal. He said other counties that allowed a zoning change on forest or agricultural lands do not have a zoning designation like rural use.

MacLeod said that if the organization loses its case with LUBA, it will likely not appeal.

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.

November 16, 2009 - Feds Uncertain If Hyatt Lake Owner Ran Afoul of Lease

By Damian Mann

Mail Tribune

A U.S. agency is worried Hyatt Lake Resort might have run afoul of its lease by remodeling a restaurant and other facilities without permission and using federal property to access private lands.

Rik Arndt, Pacific Northwest program manager for the U.S. Bureau of Reclamation, said he is still trying to determine what, if any, violations of a federal lease have occurred on the resort.

However, Bob McNeely, owner of Hyatt Lake Resort and nearby Campers Cove, said he has a stack of documents from the Bureau of Reclamation's Bend office that give him permission to remodel the buildings.

"We've got all the files that he wanted, and we've done exactly what he wanted," he said.

McNeely maintains the restaurant and other facilities on the federal land under a lease agreement with the Bureau of Reclamation, and he owns 30 acres next-door that contain 22 cabins that he describes as recreational vehicles.

A Jackson County hearings officer in September found the county Planning Department erred when it allowed McNeely to install the cabins at the resort, calling into question millions invested in the property. The resort filed an appeal on Oct. 13 with the Oregon Land Use Board of Appeals.

Hearings officer Donald Rubenstein concluded the cabins pose a fire danger for the resort and the surrounding forest.

He determined the resort, 20 miles east of Ashland, resembles a high-density residential development with some units only 7 feet apart.

Rubenstein rejected a request to add an additional 13 spaces.

McNeely filed for bankruptcy on Sept. 30 for his company Nor'wester Industries Inc. of Washington, which built the cabins.

According to the bureau's records, there should be a restaurant, about five cabins, two mobile homes and a workshop on the federal land.

Arndt will be using photos taken in 2000 and 2001 to help verify what improvements have been made to the property since then. In addition, an access road and parking area have been improved, possibly without permission from the federal government.

Arndt said the Bureau of Reclamation has reduced staff and closed some offices, making it difficult to determine whether McNeely received federal approvals. He said he would visit the Bend office soon to go through documentation to make the determination.

"We are trying to make sure we have treated Mr. McNeely fairly," he said.

The cabins have been installed on McNeely's land, but the access to these cabins is over federal land.

Arndt said the private property should have its own access off Hyatt Prairie Road.

"If we had some kind of emergency, how would the emergency vehicles get in and get out on the same road?" he said. "At some time we need to sever the lease lands from the private lands."

Arndt said he needs to clarify with McNeely that the public has free access to the lake over the federal road.

If McNeely made improvements on the buildings with federal approval, Arndt said it is difficult to say what steps his agency would take until he has fully reviewed the situation.

A letter sent by Arndt on Sept. 3 to the Jackson County Development Services Department asked county officials not to issue any permits for construction or renovation on the federal lands.

Under terms of a 1963 lease, concessionaires of Hyatt Lake Resort need approval by the federal government to build new buildings or remodel old facilities.

The original lease was given to the Talent Irrigation District and then transferred to Rick Franklin in 1990. Arndt said he hasn't yet found any clear record of transferring the lease to McNeely from Franklin.

The lease terminates on Sept. 1, 2012. Arndt said the government could either renew the lease through a competitive bid process or determine a lease is no longer appropriate, requiring the current lease holder to remove the buildings on the property.

McNeely said he has the documentation to show the lease was transferred. He said Arndt has never told him about any issues regarding access to his property.

The bankruptcy at Nor'wester and recent publicity have hurt business at Hyatt Lake Resort, said McNeely.

"A lot of people thought we closed down, and we've not," he said.

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.

November 15, 2009 - Foreclosures Hit Home

By Damian Mann

Mail Tribune

Sammie Pakros, her 2-year-old grandson and her ex-husband have been living on borrowed time.

In March 2008, the 53-year-old couldn't make her $1,400 mortgage payment on her east Medford home after losing her job as a dental hygienist.

Pakros hasn't made a payment since.

Like many Jackson County residents forced into foreclosure proceedings because of the recession, she has been coming to terms with the day she must leave her home of the past 25 years.

"If they call me tomorrow and tell me to move out, I will cry, but I will move on," she said.

Since the recession began in December 2007, lending institutions have foreclosed on 1,718 homes in Jackson County. A third more mortgages went into default during that time, according to county statistics.

This year alone, 919 homes have been foreclosed on and 1,855 property owners have received notices they are at least 90 days behind in their payments, according to data compiled by Rogue Federal Credit Union, based on county information.

And it's only expected to get worse.

Some 2,500 adjustable rate mortgages countywide will automatically ratchet to a higher interest rate beginning next year, which will put more families at risk of losing their homes, local real-estate experts said. One expert said he knows of a loan that will rise from $1,400 a month to $2,100, and the homeowner is out of work.

Stemming the tide of foreclosures has been the goal of ACCESS Inc., a nonprofit that provides food and housing assistance, and Building Hope, an alliance of businesses and organizations spearheaded by Rogue Federal Credit Union and the Home Builders Association of Jackson County.

But keeping up with the demand for assistance has taxed these agencies, which spend considerable time wading through the complicated financial situations and loan problems of local residents.

They have been helping residents make the tough decisions to scale back on expenses and find other income sources, while considering the harsh realities of whether they have the financial wherewithal to keep their homes.

Pakros said though she has a dog-washing business, Dirty Dogz, she can't generate enough income to even consider refinancing options. Her bank has been more understanding than most, offering her a three-month reprieve on payments that would be tacked onto the end of her loan.

Because the downturn in the economy has meant people are putting off their teeth-cleaning, Pakros has had difficulty finding a job. And for the first time in her life, she's had to get food stamps, she said.

She fears that when the time comes to leave her home, she won't have the money to pay rent for an apartment for her, her grandson A.J., and her 61-year-old ex-husband, Alden Pakros, who is disabled.

"I'm just living with my ex platonically," she said. "We're just there to support each other to get through this."

It's an all-too-familiar situation to Pete Cislo, who has devoted two hours a day to Building Hope. The organization has provided educational classes and counseling to 600 families since it was founded a year ago.

Cislo said he has advised some people to stop making their mortgage payments because they have run out of money.

A Medford architectural designer, for example, came to him and said his work had dried up because of the collapse of the construction market. His wife was pregnant and they had only $6,000 left in savings.

"I never expected to be in a public situation telling people not to make house payments," said Cislo, who works for Leave Your Mark landscaping supply.

Cislo said he first encourages people who are behind in their house payments to contact the lender. They might find, like Pakros did, that the lender is in no hurry to get them out of the house.

Or they might find their lender difficult to deal with, as did one Medford woman who was short $160 on her $1,800 house payment. The lender refused to accept the partial payment, Cislo said.

Medford resident Fred Burnhart, in a desperate battle to save his home from foreclosure, spent the better part of this year getting bounced from banks to refinance companies as he tried to renegotiate his loan.

He said he was barraged with paperwork, misinformation and offers to refinance at a monthly rate higher than he paid before. He said he received 15 different answers from 15 different people about his loan modification.

"They don't give a damn whether you keep your house or not," said Burnhart, who is struggling with declining income from his business.

Eventually, Burnhart managed to get his loan renegotiated with help from ACCESS Inc., but is still worried about a second loan and the possibility he could still lose his house.

ACCESS Inc., on the front lines of the foreclosure crisis, has only two full-time employees to help 80 families figure their way out of foreclosure.

"We are over our limit as to how many cases we can handle," said ACCESS Housing Director Cindy Dyer, who said she has been referring callers to Building Hope.

Each case her organization confronts is unique, requiring a great deal of staff time to sort through.

ACCESS doesn't want to shut the door to people seeking help, but Dyer said the need is overwhelming.

She said a year ago ACCESS was helping people who had taken out bad loans. Now, many of the people coming to the organization have lost their jobs and are running out of money.

"It's now an unemployment issue," she said.

Kerrie Davis, community education and outreach coordinator for the not-for-profit Rogue Federal Credit Union, said she expects commercial loan foreclosures to follow on the heels of residential defaults if the economy doesn't improve.

"I think we've got 2010 to go through," said Davis, adding she hopes to see signs of improvement in 2011.

Davis, who speaks at seminars designed to help residents survive foreclosure, said she's noticed many of the participants enjoyed a middle-to-upper-class lifestyle and had never been in serious financial trouble before.

Some who were strong supporters of nonprofits never imagined they would need support themselves.

"I told them don't forget about getting your food stamps — there was a look of shock," said Davis. "Somebody said this was their American dream. These people are paralyzed."

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.

November 11, 2009 - County's Skeptical of Bypass Proposal

By Damian Mann

Mail Tribune

Appeals by legislators and transportation officials failed to fully convince Jackson County commissioners Tuesday that a $100 million Highway 62 bypass proposal won't be a waste of money.

"I don't think it's the best project for the entire community of Jackson County," Commissioner Jack Walker said.

After years of discussion and research, the Oregon Department of Transportation is proposing a bypass to alleviate congestion on busy Highway 62 in north Medford. The new roadway would begin just east of Poplar Avenue, on the north side of Highway 62, and create either a two-lane or four-lane highway running roughly along the old Medco Haul Road for 3.5 miles to just south of White City. Another option is to end the bypass at Vilas Road.

Projections indicate that 27 percent of drivers on the highway would use the new route.

"It's really a lot of money to handle about a third of the traffic," said Commissioner Dave Gilmour. "If all that comes out of this is a permanent bypass that goes from Vilas Road to Ace Hardware (near Poplar Avenue), not a lot is gained."

While the commissioners's support is not required for the project to move forward, their opposition could jeopardize the funding and the money could go elsewhere in the state, Matt Garrett, director of ODOT warned.

Commissioners said they want ODOT to answer questions about the project before the county endorses it. After receiving assurances their questions would be answered, the commissioners agreed Tuesday they would not send a letter opposing the project.

The bypass would primarily be funded through Oregon House Bill 2001, which provided more than $900 million in transportation projects over 10 years throughout the state.

The money will be raised through bonds and by increasing motor vehicle fees and the gas tax by 6 cents per gallon.

Legislators who helped Jackson County get the money in Salem were surprised the commissioners didn't endorse the bypass plan that was part of a multi-year planning effort. The bypass also has been identified as a project of statewide importance, offering tourists a gateway to Crater Lake.

"It's not spending money for the sake of spending money," said Rep. Peter Buckley, D-Ashland.

Rep. Dennis Richardson, R-Central Point, said it's important to have the county endorse a project that has been the subject of much discussion for at least 12 years.

"Commissioner Walker is grousing about what's already been done," he said.

Art Anderson, ODOT area manager, said the portion of Highway 62 — also known as Crater Lake Highway — in the Medford area is one of the most congested in Southern Oregon, with an average of about 40,000 vehicle trips a day.

While ODOT prefers to build a four-lane bypass, Anderson said that the $100 million might only pay for a two-lane segment at first. However, the long-range plans call for the roadway to be four lanes, he said.

Rep. Sal Esquivel, R-Medford, said a four-lane roadway to Vilas has been proposed for years.

"Do it right in the first place," he said. "We fought very hard to allocate the money for this project."

The commissioners also asked for more information about how many businesses would be harmed by the bypass, either by being displaced or having their access changed.

Walker said many local businesses are struggling with the economy and don't need limits placed on customer access.

"If I were one of those businesses, I would say not now," he said.

Anderson said ODOT does consider the impact on businesses, but also must look at safety issues on Highway 62.

"It's a balance," he said.

The commissioners also voiced concern that other local transportation projects could get shortchanged if the state throws more money into extending the bypass in the future. The total cost to build the bypass to White City has been estimated at up to $450 million.

When the bypass is built, ODOT wants to turn over jurisdiction of Highway 62 to the city and county. Gilmour said if the county assumes responsibility for the roadway it would also have to pay for the maintenance, which could be considerable.

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.