Monday

October 26, 2009 - Millions of Dollars Down The Drain?

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Millions of dollars invested in the Hyatt Lake Resort are on the line as cabin owners fear the fallout from a recent ruling by a Jackson County hearings officer.

At the same time, the owner of the resort, Bob McNeely, filed for bankruptcy on Sept. 30 for Nor'wester Industries Inc. of Washington, the company that built the cabins, which McNeely describes as recreational vehicles.

On Oct. 13, McNeely filed an appeal with the Oregon Land Use Board of Appeals over the Jackson County hearings officer's decision that finds the county Planning Department erred when it allowed 22 units on the property in the first place.

Owners of the cabins, who have agreements to rent them out for $150 or more a night, now are worried about their $150,000 to $200,000 investment, and the fear has spread to nearby Campers Cove, where another 25 units have been installed. Most of the owners live in Jackson County.

"I think everybody is pretty stressed out and concerned," said Robin Schooler, who owns one of the small cabins at the Hyatt Lake Resort.

The Bonanza resident said her dismay about the situation is directed more at surrounding Greensprings property owners who appealed Jackson County's approval of a limited expansion of the resort.

Hearings officer Donald Rubenstein concluded that small cabins referred to by the resort owner as recreational vehicles are, in fact, dwellings that potentially pose a fire danger for the resort and the surrounding forest.

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

Rubenstein concluded county planners erred in allowing 22 of the cabins at the resort. He rejected a request to add an additional 13 spaces.

Schooler said her husband, Michael, helped Bob McNeely's brother, Don, log some of the trees on the property.

"The whole situation for us is kind of sad," she said. "My husband and Don McNeely are best friends. We're not letting any of this come between us."

Still, Schooler is worried about receiving a percentage of the rent from her cottages that goes back to August, particularly with property taxes now owed. "That's pretty upsetting," she said.

Despite the lack of rent collected from tenants who have stayed in her cabin, Schooler said she and her husband continue to make the payments for the park model and lease of the property from Campers Cove.

Schooler said McNeely told cabin owners that filing an appeal with LUBA would buy an extra 12 to 14 months before any action could be taken to remove the park models.

"We don't want to lose our cabin," she said. "We don't want to lose the resort."

McNeely said he's ready to fight any attempts to shut him down.

"I will go to my grave resolving it," he said.

He said millions of dollars now are tied up in the project, his line of credit has been canceled and his company, Nor'wester, has been shut down and its 105 employees have been laid off. He said he's also laid off more than 30 employees at the resort. So far, he said he has spent almost $150,000 in legal fees.

As a result of the publicity, McNeely said he has received 57 cancellations at his resort, but disputed claims he is behind in payments to cabin owners.

He blames both the Greensprings neighbors and the county, which gave him the permits, for the situation that threatens his livelihood.

With the economy in such a slump, he said he doesn't understand why his efforts to clean up the resort and make things better in Jackson County have been battered by local government.

"Honest to God, I feel I'm in a communist country," he said.

If the state does rule against him, he said it would lead to closing other facilities in Oregon that have similar types of recreational vehicles. He cited, in particular, Howard Prairie and Lake of the Woods.

In addition, McNeely said cabin owners likely will sue him, and he will sue the county if the hearings officer's decision is upheld.

McNeely said the records on his property seem clear. He said he is entitled to 65 recreational vehicle spaces, but only wanted to use 35.

"I didn't build any sites there," he said. "They were already there."

He said he received septic licenses from the Jackson County Health Department for 35 sites.

In the hearings officer's decision, McNeely said he sees the potential to try to shut down nearby Campers Cove.

He said there is a lot of misinformation, particularly about the cabins, which he said are clearly designated and designed as recreational vehicles.

While McNeely struggles to keep his resort going and fend off the county, he said he has noticed local government agencies continue to improve parks and have even proposed an aquatic park in Medford.

"The county owns all of the recreation in the county," he said. "It's a real crying shame what our country has come to."

Sandy Speasl, a member of the neighborhood group Southern Oregon Citizens for Responsible Land Use Planning, said she understands why the cabin owners blame her group. "They have to blame somebody," she said.

But, she said, other landowners have been forced to adhere strictly to county regulations, so she said all her group is asking is the resort adhere to the same rules.

"The whole reason we did this is so the county would give everybody equitable treatment, and so that they would obey the laws that are set up," she said.

Speasl said the hearings officer's decision is appropriate, even if it means the cabins would have to be removed.

"I think the hearings officer was pretty clear on that," she said. "They are not allowed."

Talent resident Felicia Hazel said she and her husband are very concerned about the investment they've made at Hyatt Lake Resort.

"We got into it as a rental, and that rental would pay for itself, and it hasn't even come close to that," she said. "As far as what happens next, I'm not sure."

Hazel said she hasn't yet received the rental income from August, though she continues to make lease payments on the land.

She said most of the value of buying into the resort is in placing the cabins on the wooded property a short distance from the lake and just off Hyatt Prairie Road.

"The value is gone if we have to remove the park model and the hot tub," she said.

Hazel said she looked at Whaleshead Beach Resort, also owned by McNeely, before making the purchase, and she and her husband were impressed.

Because of the uncertainty, Hazel said, "We need to take a look at what our options are to protect ourselves."

Phoenix resident Fred Riffle owns a cabin at Campers Cove, and he's worried the land-use problems from Hyatt Resort could become a problem for him.

"It's just going to be a complete loss of investment if the county and whoever has their way," he said.

Riffle, 68, said he was counting on the income from the rental of his cabin to help him with his retirement.

He expects to call McNeely to ask him about the back rent in the near future, but wants to give McNeely ample time to resolve the situation.

"We're not going to bug him," he said. "He needs all the time he can get to defend himself."

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



Thursday

October 22, 2009 - Atkinson Suspends His Try For Governor

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MEDFORD — Republican state Sen. Jason Atkinson suspended his campaign for governor Thursday because of family health problems.

The 39-year-old Central Point lawmaker, who still is recovering from an accidental shooting in 2008 that makes it difficult for him to walk, wants to attend to serious health concerns in his family, he said in a prepared statement. His wife, Stephanie, was treated for thyroid cancer last year.

Atkinson said he will make an announcement at a later time about whether he will continue to run for governor.

Cheri Adkins, Atkinson's legislative aide who also works on his campaign, said the senator just had informed her of his decision not to run Thursday morning.

"Right now he is out of the campaign, but I can't say what is going to happen in the future," she said.

Adkins said the senator had been spending a lot of time with his consulting business, Allmand Tree Creative, since the legislative session ended and has done only limited campaigning.

She said the senator remains in pain from his injuries, but she is not sure of the health condition of Atkinson's wife. "I just know there are problems there," she said.

Atkinson, an avid cyclist, was working on a friend's bicycle on July 29, 2008, when a small bag containing a derringer fell and the weapon fired, hitting Atkinson in the right leg above the knee.

Adkins said a meeting that had been planned to discuss the campaign had not been held yet.

Adkins said she did not believe it would hurt Atkinson's chances of winning the primary on May 18, 2010, if he stopped campaigning for a month or two to deal with family health problems.

Atkinson and the other candidates jumped into the campaign earlier than usual, she said.

Businessman Allen Alley and former legislator John Lim are running for governor on the Republican ticket.

In his prepared statement, Atkinson said, "Stephanie and I have recently been confronted with some serious health concerns that need to be addressed before I undertake such a massive task as running for Governor of our great state. We ask for your thoughts and prayers as well as your patience as we wade through this difficult time. I am not going away, but need time with my family. We greatly appreciate your strong support and kind words."

Former Gov. John Kitzhaber is considered the Democratic frontrunner in the governor's race. Former Secretary of State Bill Bradbury and former Hewlett-Packard executive Steve Shields are also in the Democratic primary race.

Atkinson, who could not be reached for comment Thursday, has not filed his candidacy papers with the Secretary of State's Office in the governor's race.

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



Wednesday

October 21, 2009 - Mistakes Leave Taxpayers Stuck With Bill

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James Bennett was shocked to discover the property taxes on his Medford apartments more than doubled this year because of a clerical error made by the Jackson County Assessor's Office and stunned to learn that the error means he now owes $11,446 in back taxes.

The 69-year-old Eagle Point man and owners of several other apartment buildings off Poplar Drive said they should not be penalized for a mistake made by a government agency.

"This is morally wrong," Bennett said. "This is ethically wrong. You can't do this to another human being."

Bennett owns one of four, four-unit apartment buildings that were built in 1997. His taxes rose from $2,369 last year to $5,642, a 138 percent increase. He also has to pay back taxes for five years, according to the assessor's office.

County Assessor Dan Ross said the error is not the fault of the property owners, but occurred because of an oversight in his department. Ross said a small percentage of property tax statements aren't updated when they should be, but are eventually corrected.

Oregon law requires property owners to pay the back taxes, but they aren't charged any interest, Ross said.

That's cold comfort for Bennett.

"They admit they made a mistake," he said. "They want to pass the burden onto the property owner."

Tax statements were being mailed to 98,932 Jackson County property owners starting Monday.

Ross said the mistake means the property owners were paying less than their fair share of taxes for years, while other apartment buildings around them have been charged the correct amount, he said.

"They should have been paying the taxes, and they weren't," Ross said.

Previously, property owners had to pay the back taxes within a month, but Ross said they now have almost a year to come up with the money.

Property owners have started to appeal the change, but Ross said he doubts it will be successful.

"Not when it is ironclad like this," he said.

Ross said the assessor's office receives 200 to 300 similar complaints every year. He noted that a personal friend of his had booked a trip to Italy recently when he was notified of a property tax hike that was nearly as much as the cost of his vacation.

"He was not happy with me, either," Ross said.

Bennett said the wallop to his wallet comes at a particularly difficult time. Vacancy rates have increased in Jackson County because of the sour economy, and he said one of his four units is vacant.

Bennett said his rents, which are about $650 a month, have not increased for four or five years. He figures it will take the annual income from one and a half of his rental units to pay off the back taxes.

Michael Smith said he moved here from Albuquerque, N.M., five years ago and bought his four-unit apartment off Poplar Drive from Bennett after investigating whether it would make economic sense.

Smith said he calculated he would more than break even on the deal. Now, with the increase in taxes through no fault of his own, he said he will be in the hole.

"When you get a $10,000 bill, it really sets you back," he said. "That takes away any profit I have here — it's gone."

In addition, because of the poor economy, renters who formerly paid regularly are asking for extra time on their payments.

Smith said he has to give his renters flexibility in paying their monthly bill, so he doesn't understand why the county doesn't do the same with property owners, particularly on a mistake made by the assessor's office.

If he didn't have sufficient financial resources, Smith said the extra tax charges could have led to another foreclosure, which the county can ill afford.

Smith said he was surprised to discover the assessor's office could charge for up to five years of back taxes, and he sees this as a lesson to anyone looking at real estate here.

"I do not want to buy any property in Jackson County because of the way I feel," he said.

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


October 9, 2009 - Neighbors Make Stink Over Pot's Smell

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Cultivating medical marijuana is legal, but complaints are growing from neighbors over the pungent smell, bright lights and traffic at all hours.

Jackson County commissioners Thursday said they might consider altering land-use laws to allay these concerns or urging legislators to address the issue of public nuisance, but they wanted to stay clear of any actions that would conflict with state laws.

"The thing we came up against is the smell — it is like being 10 feet from a skunk," said Shayne Maxwell, a Rogue River resident who has a neighbor growing medical pot. "It also attracts skunks."

Maxwell, who presented the problem to commissioners and also is on the county's budget committee, said she supports medical marijuana, but thinks growing the plants should be subject to the same land-use laws that govern other activities on properties.

Her neighborhood comprises mostly 2.5-acre rural residential lots and isn't zoned for farming, she said.

Maxwell said her objection is not to the marijuana, but the smell, the traffic and the bright grow lights.

"I would do the same thing if there were carrots and they smelled like that," she said.

She told commissioners she can't go into her backyard or open windows because the pungent pot smell is overpowering in September and October, when the plants are ready for harvest.

Commissioners appeared sympathetic, but said current land-use laws apply to businesses in rural areas, not to nonprofits such as medical marijuana gardens.

They also wanted to be careful not to write local regulations that would conflict with state laws over medical marijuana.

The commissioners said the Legislature should be more responsible by rewriting the medical marijuana law so that it takes into consideration impact on neighborhoods.

"The Legislature did dump on counties," Commissioner C.W. Smith said.

He said some of the medical marijuana gardens are operating at a commercial level, so he thought there should be provisions to ensure they are good neighbors.

Commissioner Dave Gilmour noted the county wasn't able to devise a noise ordinance several years ago, so he believed drafting regulations on smell and lights also would pose problems.

Commissioners agreed to analyze the possibility of writing new language into the county's land-use laws, but also wanted to urge lawmakers to address the issue with legislation.

Jackson County Sheriff's Detective Donald Adams said his agency received hundreds of complaints over the last month about medical marijuana.

Richard Maughs, a medical marijuana grower and consultant who lives near Rogue River, said neighbor complaints are leading to more people knowing about the operation and increasing the chances of thievery.

Pointing toward one of his neighbors, he said, "He has caused a security risk for our patients."

Maughs said he has people watching the operation 24 hours a day.

He said the conflict with his neighbor is adding to the stress of losing at least three patients to cancer and other illnesses this year.

"Everything here is for our patients," said Maughs, 55.

He said he has talked to the sheriff's department about his operation and doesn't think the smell or the number of plants he's growing should cause a big problem. He estimated the plants are about 100 yards from the nearest house, except for his landlord's.

Maughs said he could grow up to six plants for each patient, but said he has chosen to grow only three to be a good neighbor.

Steve Austin, a Rogue River neighbor who complained to commissioners about a marijuana operation, said, "My issue is the unbelievable hordes of lowlifes and miscreants that charge up and down this driveway."

Melanie Barniskis, spokeswoman for the Southern Oregon chapter of the National Organization for the Reform of Marijuana Laws, said the smell of marijuana can be intense at this time of year, but there is nothing in Oregon legislation addressing smell.

Traffic is a neighborhood issue, which Barniskis said should be worked out among the residents.

"That would upset me," she said. "I would tell my patients to come only during normal business hours."

NORML promotes the responsible use of marijuana and urges growers to show respect to neighbors. But because the marijuana is a medication, there may be instances in which someone needs to come in the early morning hours, she said.

"Most people who are legal growers are going to follow the law to the letter," she said. "They do this out of compassion."

She said under Oregon law, the grow site must be kept out of view of the public.

Growers often become interested in marijuana after they've seen the benefits of the medicine for a loved one who has cancer or glaucoma.

Barniskis said she didn't dispute the possibility the Sheriff's Department has received a lot of complaints recently because the pot is more visible now and there typically is more security before harvest.

"It is a nervous time, even with the legal protection of having the grow cards," she said.

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


October 8, 2009 - Property Owner Fires Back At Newcomers

Phil Krouse says he is fighting to save his family farm in the Applegate Valley before the Jackson County Sheriff's Department auctions it off Monday morning.

The Krouse Ranch, first established by his family in 1924, has been the subject of an intense debate over a gravel-mining operation that has set off disputes with neighbors in recent years, sometimes leading to confrontations.

Now, a $900,000 judgment that Krouse owes to Bridgeview Winery over a lease on a field of grapes on his property and other debts have brought him to the brink of financial collapse.

Krouse, 68, said he suspects the Cave Junction-based winery, owned by Bob Kerivan, is plotting to take over his 240-acre property — a claim Kerivan denies.

"They think they can just take it for nothing — that was his goal," said Krouse.

Kerivan declined to discuss the lawsuit against Krouse or the details of the case involving leasing about 28 acres to grow Riesling grapes. He said he understands Krouse's situation, but Kerivan said his actions have been conducted purely on a business basis.

"I don't have any unkind words for him," he said.

Kerivan said he was essentially chased off the property by Krouse, and the vineyards ended up dying because no one could care for them.

He said he only wants the money awarded to him after a jury trial in Josephine County.

"I'm not interested in the Krouse Ranch at all," he said. "I hope I don't get it."

An auction is scheduled for 10 a.m. Monday at the sheriff's department, 782 W. Eighth St., Medford, to sell off Krouse's property, but Krouse said he plans to declare bankruptcy today or Friday to delay the sale.

"It gives me some time to get on my feet and come up with a plan," said Krouse.

Standing next to his horse corral, Krouse said he first came to the property as a baby in 1941, living in a small house. He also runs cattle on the ranch at 15877 North Applegate Road.

In the distance, the vineyards that were part of the Bridgeview lease appear dead.

Krouse said the grapes died because the soil is poor. "You couldn't raise hell on it with a fifth of whiskey," he said.

Krouse points to another area where he has tried, but has been thwarted in his efforts, to mine gravel after neighbors challenged the operation.

He blames newcomers to the valley whom he said don't respect another man's right to earn a living off his property.

"All the liberals moved to the country and they think they own the place," he said.

Just a few miles down the road, Bridgeview has a tasting room and other vineyards growing bright green — in stark contrast to the plants on the Krouse Ranch.

According to the lawsuit, filed in Josephine County Circuit Court in 2005, Krouse Ranch Inc. and Bridgeview Vineyards Inc. formed K & K Vineyards to grow grapes on Krouse's land.

Bridgeview representatives said they invested $500,000 in grape plants, labor costs and lost future profits.

The suit states Bridgeview provided four promissory notes to Krouse Ranch to fund K & K Vineyards. The notes amounted to $294,629, plus interest and other charges.

Another three promissory notes made to Krouse Ranch totaled $66,353, plus interest and other charges, according to the suit.

Krouse Ranch was in the news in recent years over a proposal to excavate 514,000 tons of rock from a 20-acre gravel pit on the property. A Jackson County hearings officer denied Krouse's application in December 2007 after ruling that neither a traffic plan nor a floodplain study for the site was adequate. The gravel pit had been approved by the county but the initial decision was appealed by an owner of the nearby Wooldridge Creek Winery.

Jamie Ford, a neighbor of Krouse's who also objected to plans for gravel mining, said that while neighbors have had their differences over some issues with Krouse, they don't want to see him lose his farm.

"I don't think there is a person who doesn't feel terrible about this — what's happening to him," Ford said.

But Ford also said some neighbors are worried about Krouse's behavior, particularly after one woman he talked to complained Krouse had fired a shot over her head. The Jackson County Sheriff's Department report on the Sept. 10 incident indicates it couldn't contact the person who initially made a report against Krouse.

"We live in America where we have the right to voice our opinion, and we did nothing other than follow legal challenges," said Ford of the neighbors' fight against the gravel mining. "We shouldn't feel we should live in bodily harm if we spoke up."

Ford said he and other property owners were concerned about the effects of a gravel mining operation on the Applegate River.

"The river's an unsteady thing," he said. "That would put my property in danger from a huge mine above me."

Krouse acknowledges he's had run-ins with others who he said don't respect his property rights.

A veteran, Krouse said he suffers from post-traumatic stress disorder and takes medication. He said he doesn't like people interfering with what he views as his rights.

"There are people who better hope that I take my happy pill," said Krouse.

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


October 7, 2009 - OnTrack Project's Back On Track

By

A $28 million residential complex for former drug addicts who are firmly on the road to recovery could start taking shape next year following an Oregon land board's rejection Friday of an appeal by east Medford neighbors.

The Land Use Board of Appeals ruled a property owner, Louis Duenweg, failed to file the appeal in a timely manner against the city of Medford for the OnTrack Inc. proposal. The appeal was filed on April 10, about four months after controversy erupted over the proposed residential community, LUBA determined.

"There is nothing stopping us from continuing," said Rita Sullivan, director of OnTrack. "It was a strong LUBA decision."

Opponents of the project vowed to appeal the ruling Tuesday, but Sullivan said she still expects her agency will go forward with the project and line up the financing by next year to start construction in April.

OnTrack proposes a 6-acre development, known as Generations, which would have 104,281 square feet of buildings, including 81 dwellings, commercial space and a 5,000-square-foot day-care center. The development would include 19 homes for families with one or more members who had gone through treatment for substance abuse and who had a proven record of social responsibility. It would be located on Harbrooke Street just east of North Phoenix Road.

The other residents would be seniors who would act as mentors, providing a 3-to-1 ratio of mentors to former patients. In addition, there would be counselors on the site.

Duenweg was chosen to represent property owners because he lives in Etna, Calif., and first learned of OnTrack's plans on March 14. Under Oregon law, an appeal could be warranted if a property owner finds out about a land-use decision late in the process.

"We're going to keep on fighting it," said Duenweg. "We're just beginning."

Duenweg said he bought property near the proposed development about six months before neighbors were aware of the project. He intends to build a house on the property.

He's worried that his property values will be affected and that crime will spill over from the project. He said he's scrimped and saved to buy the property and will have to build the house on it.

"What choice have I got now?" he asked.

In its decision, LUBA stated that even if Duenweg chose to be absent from the city and was unaware of the project for so long, that wouldn't be sufficient reason to uphold an appeal, particularly because the project and controversy were well-publicized.

Generations will offer housing primarily to women who have been free of drugs for at least two years. Most of these women will be joined by at least one or two of their children.

Melissa Bauer, a White City mother with two children, is someone who would likely qualify to live at Generations.

Despite her previous methamphetamine abuse, the 33-year-old said there would be so many safeguards and so much accountability in the Generations program that neighbors shouldn't be alarmed.

"I can't see it being a danger," she said.

Almost two years clean, Bauer said it is easy for her and other recovering addicts to pick out someone who is using.

With seniors, counselors and other OnTrack employees on site, the residential complex would be well-supervised, said Bauer.

She now works two jobs to manage her bills. She said she is not proud of her past, having used methamphetamine while pregnant with a daughter who's now 5. She said her daughter doesn't appear to have developmental problems.

"What I did was horrible," she said. "I devastated my whole family."

Sullivan said OnTrack has a history of running its recovery centers without problems, a statement supported by arrest records compiled by the Medford Police Department.

She said OnTrack chose the Generations site because it was close to facilities such as a hospital and shopping center that could be used by both the seniors and clients. She said she expects to have bus service in the future.

Neighbors already have paid a $15,000 retainer to hire Medford attorney Mark Bartholomew as they vow to continue fighting the project.

"This isn't over," said Stephanie Reed of the Southeast Medford Citizens Organization. "I assume we will be appealing it."

She said OnTrack and the city didn't present the development in an honest and forthright way. She said neighbors should have been notified about the project beyond just the 200-foot radius. It was also not represented as a place that would house people who have gone through addiction-recovery programs, Reed said. LUBA noted in its decision that Medford only is required to send notification to property owners who are within 100 feet of a proposed development.

Reed said, "This is an experimental program, combining two groups of people that have never been combined before."

Neighbors don't believe there are enough safeguards and scrutiny of a project that could have profound risks for her neighborhood.

"This project is ill-conceived," Reed said. "The scale of it is too grandiose."

Reed said she thinks the project has many issues and her group will pursue many avenues to put a stop to it.

"We don't intend to just step aside and say, 'oh well,' " she said.

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



October 6, 2009 - Arrest Hit Heroin Network Hard

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Medford police say a major blow has been dealt to the heroin trade locally after a multi-agency investigation led to the arrest of 22 suspected drug ringleaders Sunday morning in Jackson County.

"We cut off the head of the snake," said Medford Police Chief Randy Schoen.

Officers from the FBI, the U.S. Drug Enforcement Agency and other local and state agencies seized about 2 pounds of high-grade, smokable heroin from 2101 Whittle Ave., Medford. That amount could have a potential street value of $90,000. Officers also found lesser amounts of the drug at other locations.

Schoen said that the outcome of the two-year investigation likely will cut the amount of heroin available on the street by more than half.

One of the alleged main distributors of heroin locally, Ismael Anaya-Acevedo, 27, was arrested by the U.S. Marshals Service at the Whittle address on federal conspiracy charges.

U.S. marshals arrested another suspect, Eliot Aden Delavirgen, 33, on federal charges of conspiracy to distribute heroin. He also was charged with attempted assault, harassment, criminal mischief, endangerment and strangulation.

Both Anaya-Acevedo and Delavirgen are in federal custody without bail.

The pair appeared before U.S. Magistrate Judge Mark Clarke in Medford Monday. An indictment returned by a federal grand jury alleges they were part of a criminal conspiracy to possess and distribute heroin and seeks forfeiture of proceeds from heroin trafficking and the property involved.

Detention hearings have been set Wednesday for Anaya-Acevedo, aka "Chivo," and Oct. 13 for Delavirgen, aka "Alex."

In Jackson County, 14 search warrants were issued as part of the investigation, 11 in Medford alone. At three locations — Whittle Avenue, the 5200 block of Pioneer Road near Phoenix and the 4600 block of Antelope Road in White City — SWAT teams were used.

Other suspects taken into custody throughout the county are charged with a variety of crimes, including possession of heroin, methamphetamine and methadone as well as sex abuse, endangering minors, manufacturing and distributing heroin within 1,000 feet of a school and parole violations.

Neighbors thought they heard gunshots when SWAT teams conducted the raids at about 6 a.m. at Whittle and Pioneer, but Schoen said they used a device that produces a flash and a loud bang. He said no shots were fired during the raids and no one was injured.

Schoen said that from the street, the Whittle house at the corner of Roberts Road, decorated for Halloween, looked normal, but after entering he said a trained police officer would notice something was amiss.

"Your nose would have told you that you were in a drug house," he said.

Heroin, long considered an intravenous drug, has become more accepted because the improved quality allows users to smoke it rather than inject it. The drug is considered highly addictive in either form.

Over the past year, local law-enforcement officers have noticed an uptick in heroin usage, thought it hasn't surpassed the popularity of methamphetamine or marijuana.

Cases in which heroin was found during an arrest more than doubled this year in Medford, from 26 in all of 2008 to 55 through Sept. 30 of this year.

"We're seeing more and more people using heroin, particularly young people," said Rita Sullivan, director of OnTrack Inc., a drug rehabilitation center.

Many heroin users start out taking prescription painkillers such as oxycodone or OxyContin. When their prescriptions run out, they sometimes turn to heroin, Sullivan said.

Younger people also are trying these prescription drugs out of the home medicine cabinet, Sullivan said.

A new law passed by the Legislature this year will allow for greater monitoring of prescriptions even if a person goes to different drugstores as a way to curb the rise in addiction. The law will start in January 2010.

Laws restricting the purchases of pseudoephedrine, used for allergies, have helped curtail the supply of methamphetamine in Oregon. As a result, methamphetamine is more difficult to get, and some people with strong addictive behaviors will turn to the most readily available drug. "Drug users sometimes say, 'We might seek what we like, but we will use what we can get,' " Sullivan said.

At OnTrack, the goal is to get people free of taking all drugs because of this addictive behavior, she said.

Evidence that heroin is more popular has come from law-enforcement agencies, the increased caseload at the county methadone clinic and more clients who seek help at OnTrack for heroin addiction, she said.

Dr. Jim Shames, county medical officer, said the methadone clinic in Medford had 50 clients about 20 years ago. When the clinic was turned over to a private company two years ago, there were about 200 patients. Today, there are about 425 patients, said Shames.

"We have certainly seen an upsurge in heroin use," said Shames. "After this bust we will certainly see a diminution in heroin use."

Methadone patients seek treatment for addiction to opiates, whether the opiates are prescription drugs or heroin.

Mark Huddleston, Jackson County district attorney, said the arrests came after a long, arduous investigation coordinating local, state and federal agencies.

He said he is confident there is enough evidence to support the charges levied against the suspects.

He said he couldn't speak specifically about suspects who have been in and out of the local jail, but hoped the federal charges being levied against some of them would mean more prison time if they're convicted.

Schoen said many residents in Medford might be aware of suspicious behavior but don't alert authorities.

"People have to have some responsibility for their neighborhood," he said. "They should not be tolerating this type of behavior."

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



Monday

22 Arrested In Suspected Heroin Ring

By Damian Mann
Mail Tribune

MEDFORD — SWAT teams led a force of 160 federal, state and local law-enforcement officers early Sunday to break up a massive heroin ring centered in Jackson County that resulted in the arrest of 22 suspects.

The FBI, the U.S. Drug Enforcement Administration, Medford police, the Jackson County Sheriff's Department and other agencies issued 14 search warrants — 11 in Medford alone — as the culmination of an investigation that began December 2007. A search warrant was issued in Gold Hill and two others were issued in rural areas.

Investigators allege the drug-trafficking ring has ties to other states as well as the surrounding region including Josephine, Douglas and Klamath counties. More arrests could be made later, according to Medford police.

U.S. Marshalls arrested two of the suspects, Ismael Anaya-Acevedo, 27, of the 2000 block of Whittle Avenue and Eliot Aden Dela-Virgen, 33, of the 4600 block of Antelope Road, White City, were charged with conspiracy to distribute heroin, a controlled substance and a federal crime. Anaya-Acevedo and Dela-Virgen are being held in Jackson County jail without bail.

Other suspects taken into custody throughout the county are charged with a variety of crimes such as possession of heroin, methamphetamines and methadone as well as sex abuse, endangering minors, manufacturing and distributing heroin within 1,000 feet of a school and parole violations.

Neighbors near Whittle Road heard what they described as the sound of two gunshots around 6 a.m. as the SWAT teams descended on a house that previously had aroused the suspicions of local residents.

"They woke me up," said one 76-year-old neighbor, Bud Elton. "I heard a boom, boom."

Elton, who wasn't sure if an officer had fired blanks, said he and other neighbors had noticed people coming and going at all hours of the night at the house where the arrests were made.

"Everybody in the neighborhood had some suspicions," he said. "It didn't seem like normal activity to me."

He heard a loudspeaker alert people in the house that Medford police officers were outside.

Because it was still dark, Elton couldn't make out what the officers were doing, but he did see some children escorted from the house.

"The sad part of the whole thing was the two little girls over there," he said.

Elton said he was not sure how many were arrested at the house.

According to the Medford police, the other suspects arrested throughout the county are Jessica Leeann Lapizco, 24, of Medford; Austin Hernandez, 23, of Medford; Demetrio Hernandez, 25, of Medford; James Nero, 58, address unavailable; Taffy Nero, 53, address unavailable; Jerret Michael Hooey, 21, Talent; Jesse Sorensen, 26, of Medford; Anthony Aaron Albert, 46, of Gold Hill; James Bryant Hurley, 47, of Gold Hill; William Sanders, 35, of Medford; Jodi Potteiger, 28, of Medford; Ronald Coutee, 54, of Medford; Heidi Marie Barosci, 52, of Medford; Ronald Nicholas Mistretta, 52, of Medford; Warren Alexander Rich, 25, of Medford; Erica Ann Lapizco, 31, Medford; Robert Allen Baldwin, 47, Medford; Garalee Janiece Frank, 29, of Medford; Christopher Sheehan, 38, of Medford; and Victor Antonio Solis, 22, address unavailable.

The arrests resulted from an investigation by the FBI and the Medford Area Drug and Gang Enforcement Team.

Law-enforcement agencies set up bases of operation at three locations, in the 2100 block of Whittle Avenue in Medford, the 4600 block of Antelope Road in White City and the 5200 block of Pioneer Road near Phoenix.

A neighbor on Pioneer Road, 59-year-old Diane Loyd, said she couldn't sleep and got up about 6 a.m. At first she thought she heard animal sounds, then realized it was a person's voice.

"All of a sudden I heard a bang and wondered — could it be a car that backfired," she said. "My instinct told me it was like a .22."

As she opened the front door, she heard what sounded like a police officer's megaphone and somebody saying, "Get down on the floor."

A few minutes later Loyd and her husband saw a big truck rolling down the road.

Loyd said she was not sure which property the noise was coming from.

Medford Police Lt. Tim Doney said he couldn't reveal any additional information about the case, which is being handled by the U.S. Attorney's Office and Jackson County District Attorney's Office. The amount of heroin recovered during the arrests was not disclosed.

Some of the suspects have been arrested previously in Jackson County.

Jerret Hooey was arrested in June 2008 on an indictment charging him with manufacture of cocaine, delivery of cocaine, possession of cocaine, possession of MDMA and a parole violation. In October 2007, Hooey appeared in Jackson County Circuit Court on an indictment charging him with manufacture, possession and delivery of cocaine, possession of ecstasy and failure to appear in court. He was booked into the Jackson County Jail and released Sunday on his own recognizance.

In February 2003, Heidi Barosci appeared in Circuit Court on an indictment charging her with possession of amphetamines.

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




October 2, 2009 - Proposed Water Park Leaves Emigrant Lake Waterslide Up In Air

By Damian Mann
Mail Tribune

A proposal to build a water park in Medford has cast a shadow over the fate of an aging county-owned waterslide at Emigrant Lake.

"We're resigned to the fact that a nice water park in Medford would have a negative attendance at the Emigrant Lake waterslide," said John Vial, director of the Jackson County Roads and Parks Department.

Medford City Council members gave final approval Thursday on spending $300,000 to study the feasibility of building a water park at Bear Creek Park.

If built as suggested in 2012, the city water park has the potential to draw visitors away from the 280-foot long slide that dates to 1984.

Over the past four years, the waterslide operation has struggled to remain profitable, failing to generate enough money to pay for itself in two of those years. The total profit is $32,156 over the four-year period.

"We're operating on some pretty slim margins," said Vial.

County officials already had been contemplating the slide's future because of its age and the cost to improve it, while watching attendance levels drop from 21,926 in 2005-06 to 14,883 in 2008-09. At the same time, the county hopes to make its parks financially self-sufficient.

"We're facing a decision on the waterslide no matter what the city of Medford does," said Vial.

Pricing at the slide also could be a problem. The county charges $6 during the week and $7 on the weekend for a 1.5-hour ticket.

Other water parks that feature extensive amenities cost anywhere from $5 to $20 a day — two water parks in Northern California are on the higher end of the scale.

The Medford water park could pay for itself and even generate a substantial profit for the city, depending on admission prices. Additional revenues could come from concessions and rentals.

Vial said the slide has been popular in past years, so the county will analyze whether it should upgrade the facility or find some other use for the space at Emigrant Lake, near Ashland.

"It has served the county very well," he said.

However, he doesn't expect to make a decision on the fate of the slide for two or three more years.

Despite the potential for a loss in attendance at the slide, Vial said a state-of-the-art water park in Medford would be a boost for the valley.

Brian Sjothun, Medford's parks and recreation director, said it's not fair to compare the waterslide with the water park.

"The facility we're talking about is much different," he said. "The waterslide is a totally different attraction that was built in the 1980s and the county never updated it.

The city water park could include slides, a lazy river, family beach areas, splash pads and a wave machine.

A proposed site for it is in Bear Creek Park, where an existing dog park and BMX track are located. The city would relocate those as part of the project.

The Hawthorne Park pool would be closed, while the more heavily used pool at Jackson Elementary would remain open.

Sjothun said if the county had updated the waterslide and added modern features, the city would have been more reluctant to look at building a water park.

Even so, he said, if the county made some improvements, it's possible that both facilities could be successful.

Sjothun said the city isn't trying to compete with the county, but is attempting to develop an attraction that would be beneficial to the largest urban center in the region.

"The last thing I want to do is have a negative impact on Jackson County parks because they need to be self-sufficient financially," he said.

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





October 1, 2009 - Locals With Ties to Somoa Try To Reach Loved Ones

A devastating earthquake and tsunami in Samoa have sent shock waves through Jackson County as relatives with ties to the remote South Pacific islands worry about loved ones.

"Our hearts go out to those folks," said Jackson County Commissioner Dave Gilmour.

Gilmour and his wife, Sera, who was born in Samoa, have not heard from relatives after high waves swept over the coastline early Tuesday. One of their relatives managed to get through to Sera's brother Pati Mekuli, who lives in the village of Lotofago, which had sketchy phone service before the tsunami.

Luckily, Lotofago was moved inland to about 200 feet above sea level in the 1970s. "That probably saved that village," Gilmour said.

The tsunami hit early in the morning just after the earthquake, and Gilmour remains concerned about schoolchildren and others who might have been on their way to work.

According to a study by Oregon State University, the tsunami occurred about 20 minutes after the earthquake in an area that has similar tectonic activity and risks as the Pacific Northwest, where two tectonic plates are colliding.

Gilmour's wife counts 300 or 400 people on the island among her relatives.

"It is astonishing her sense of genealogy and connections," said Gilmour.

Lolamanu, a popular resort area where Gilmour and his wife stayed last year, is just above sea level and early reports indicate that about 40 people were killed there, he said. "The whole village was wiped off the face of the Earth," Gilmour said.

The New Zealand Herald showed photos of Lolamanu, a few miles from Lotofago, with debris strewn over the beach and a car that had been crushed during the tsunami.

Sera Gilmour said she's worried because she has not heard from family members yet, but she's keeping an optimistic outlook.

"I think they're all OK," she said.

Gilmour's son-in-law, Duane Stanley, was heading to Samoa from New Zealand as part of a relief effort organized through the company he works for, Air New Zealand.

Sera's brother Sopo Mekuli, a head elder of the Samoan Adventist Church in Central Point, said, "Western Samoa is really hit bad. There are over 200 people dead, but they are looking for more."

Most phone lines have been cut, but Mekuli said he did manage to get through to his brother Pati Mekuli, who was uninjured. The nearby village of Saleapaga where his father grew up was hit hard, with early reports indicating 50 people died, said Sopo Mekuli. Saleapaga is located between Lotofago and Lolamanu on the southern coast of Samoa.

After talking with his brother, Mekuli said there are many residents who are still missing.

"We expect the worst," Mekuli said.

At this point, he said the government isn't allowing people to go back to their homes until it is deemed safe.

Mekuli said there were 500 Samoans living in Jackson County during a count about five years ago. Many Samoans with ties to the Seventh-day Adventist Church have their own services and have been trying to build their own church in Central Point.

Mekuli said church leaders this weekend plan to get together to discuss fundraising efforts for Samoa.

He said it has been easier to get news reports about American Samoa, but more difficult to get information about the other Samoan islands to the west.

The devastation will have a profound effect on a community that maintains very close family ties, he said.

"When one person dies in our family, it is a very big thing for our culture, but when 15 people pass away, it is too much," Mekuli said.

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


September 30, 2009 - RCC Enrollment Soars In Sour Economy

By

A sagging economy and a surge in financial aid have swelled the student ranks at Rogue Community College by 29 percent this fall term.

"There's plenty of money out there for people to get their hands on for school," said Phoenix resident Ryan Tuff. "If it wasn't for these opportunities, I wouldn't be in school right now."

Tuff, 18, who also works part time, is studying human services and substance abuse issues with hopes of getting into a career as a police officer. He helped boost the number of students, both full and part time, at the college to 9,947, which is 2,215 more than last fall.

RCC's Table Rock Campus, which offers more technical and vocational training, saw a 63 percent jump, with 1,116 students registered, compared with 686 a year ago.

The number of full-time equivalent students stands at 1,453 so far this term, compared with 1,134 last fall, a 28 percent increase. A full-time equivalent is determined by one or more students who take a total of 510 classroom hours a term.

RCC credits the increase to students looking to improve their skills in a region hit by high unemployment and pay cuts.

For January through mid-September, RCC has awarded $32 million in financial aid to nearly 12,000 students. Almost as many students signed up for financial aid in the first nine months of this year as in 21 months in the previous period.

Even with more students and increased financial aid, the school has seen its funding from the state shrink, making it more difficult for students to find the courses they need.

"A lot of classes are full," said Margaret Bradford, spokeswoman for RCC. "The student may have to take a class at a time they don't want, or a class that they don't want."

Cory Sweet, who returned to RCC this fall after last taking classes there in 2000, said he was told to register as soon as possible to get the classes he needs.

The 27-year-old engineering student said he got everything he wanted, but other students weren't so lucky, ending up choosing less popular classes that didn't have waiting lists.


Sweet works part time in a sales job and said he is at a better age to determine his educational goals than he was nine years ago.

"Now I have life experience to say this is where I need to apply," he said.

Sweet said grants are allowing him to take 13 units while continuing to work part time to pay his bills.

Kelly Gray, who held his 6-month-old in his arms, said he was returning to school after going from a high-paying job to minimum wage in the midst of a very tight job market.

"I'm moving out of state — there's no work here," said the 34-year-old father of four. "I'm going to lose my house, probably."

Gray, who lives in Medford, said he plans to major in business, and hopes one day to get a law degree. He said he plans to stay in the Rogue Valley until he can find a job elsewhere.

Sara Secor had worked at a local hospital, but watched her hours steadily dwindle, making it a struggle to raise her 2-year-old, Joseph.

To speed up her education as a physician assistant, the 22-year-old Central Point student is taking 21 credits, funded by financial aid and student loans.

As she walked around campus, Secor said her story is one shared by many classmates.

"I hear a lot of students saying they've had pay cuts, or had their hours cut or they lost their jobs," she said.

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



September 29, 209 - Ruling Puts Brakes On Hyatt Resort Expansion

By Damian Mann
Mail Tribune

A Jackson County hearings officer has ruled against expansion plans at Hyatt Lake Resort in a decision that could lead to the removal of cottages, a restaurant and other improvements.

In a 53-page decision mailed out Friday, Donald Rubenstein concluded that small cabins referred to by the resort owner as recreational vehicles are in fact dwellings that potentially pose a fire danger for the resort and the surrounding forest.

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

Rubenstein concluded county planners erred in allowing 22 of the cabins at the resort. He rejected a request to add an additional 13 spaces.

Rubenstein acknowledged that his decision, which is subject to appeal, could be an economic blow to the developers of the resort.

"The owner finds himself in an unenviable position having invested large sums of money and effort which are jeopardized by this decision," he wrote.

Neighbors had appealed Jackson County's approval of a limited expansion at Hyatt Lake Resort, which is operated by the same group as nearby Campers Cove. Owners of the resort, known as Campers Cove Resort LLC, also appealed a county planning decision, saying they were entitled to additional changes they've requested. Rubenstein reviewed more than 900 pages from the two sides and the county.

Bob McNeely, one of the resort owners, said previously that he had already sold units that look like cabins on the 22 recreational vehicle sites and was in the process of selling four more on 13 additional sites when he was ordered to stop by the county.

McNeely has 21 days to appeal Rubenstein's decision to the Oregon Land Use Board of Appeals. He was not immediately available for comment Monday. His Coos Bay attorney, Jerry Lesan, declined to comment, and his land-use consulting company, CSA Ltd. of Medford, didn't respond to a phone call.

Pam Hardy, a Bend attorney representing the neighbors' group, called Southern Oregon Citizens for Responsible Land Use Planning, said, "Obviously, we're pleased with the decision, and we're anticipating an appeal."

Sandy Speasl, a member of the land-use planning group, said she thought the hearings officer did a very thorough job. She said she hadn't known what to expect going into the land-use challenge, but was happy with the results.

"To me it means that sometimes the little people have a voice in things," Speasl said.

The resort owners wanted to install recreational vehicles that resemble small cabins on 35 spaces, but county planners determined they were legally entitled to only 22 spaces that can have water, electricity and sewage hook-ups. Those spaces have what the owner refers to as park models.

But Rubenstein wrote, "Park models are not recreational vehicles for purposes of land-use planning, and the staff erred in finding otherwise,"

He added that crowding the cottages together with 120-gallon propane tanks next to each unit posed a significant fire danger.

"The absence of setbacks and other standards that are conventionally applied to high-density residential developments substantially increases the likelihood that once the unit is substantially involved in a fire, nearby decks, cabanas, and park models will ignite as well," Rubenstein wrote.

He also found the cottages would generate more sewage than typical recreational vehicles.

Other improvements to the property — including construction of 30 recreational sites without water and sewer, a cabin, a workshop and a restaurant — will require approval by the U.S. government because some of the development falls on federal land, Rubenstein wrote.

The opinion said the disputed cabins are permanent or semi-permanent buildings, as opposed to recreational vehicles which are temporary. The park models also have structures such as garages or cabanas that aren't typically built next to recreational vehicles, he wrote.

Referring to the Web site of Nor'wester Industries Inc. of Washington, which produces the cabins, Rubenstein noted the manufacturer refers to the units as "destination vacation homes" rather than recreational vehicles.

Glenn Munsell, who lives on Hyatt Prairie Road, said he agreed with Rubenstein's decision but wasn't ready to celebrate because it could be appealed.

"We're just kind of waiting to see what happens next," he said.

Munsell said he had maintained all along that McNeely has built a high-density residential park that goes well beyond the original idea of the resort.

"It's really not an RV park," Munsell said. "There are cabins or houses and the density is terrible."

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