Urgent Negotiations Heat Up Over Blue Lake Water Tank Lease

UPDATE: Negotiations over the Blue Lake water tank lease have reached a critical tipping point, with the city issuing a final offer to property trustee Erin McClure amid escalating tensions. City officials have warned McClure that if an agreement is not reached by December 1, 2025, they will assume she has rejected their proposal.

Public comments at the recent Blue Lake City Council meeting revealed McClure’s frustration. “I’m tired of not being paid for the lease,” she declared, highlighting years of stalled negotiations over the water tank property. The city attorney’s latest letter, made public due to McClure’s social media posts, claims her shifting positions are complicating the agreement process.

The ongoing dispute dates back over a decade, when a historic lease agreement expired. The current negotiations have dragged on for more than 2.5 years, resulting in significant water leaks from the aging tank into Powers Creek, raising environmental concerns. McClure, a fifth-generation resident and trustee of the land, accuses the city of negotiating in bad faith. Meanwhile, the city asserts her lack of responsiveness has hindered progress.

The city’s final offer includes a $55,000 lump sum, annual payments of $6,000 with a 3.2% annual increase, and a commitment to providing 300,000 cubic feet of no-charge water annually. This offer aims to provide a sustainable solution for both parties, but McClure insists she wants a “fair market value lease” reflective of the property’s worth.

In a dramatic turn of events, McClure recently announced on Facebook her intention to camp outside city hall until the agreement is finalized, adding to the urgency surrounding the negotiations. She has called upon residents affected by water shut-offs to leverage credits owed to her by the city to alleviate their bills.

Despite a history of delays, McClure remains resolute in her desire to secure a deal. “I don’t want the city to take the property through eminent domain. I will not let my grandfather’s property go,” she stated, emphasizing the emotional stakes involved.

As the deadline looms, city officials remain hopeful that this “last, best offer” will facilitate a resolution to the long-standing conflict. The outcome of these negotiations not only impacts McClure and her family but also the water supply and infrastructure of the entire Blue Lake community.

As tensions rise and the clock ticks, both sides are urged to come to an agreement that benefits the community and preserves the historical legacy of the land. The city manager has not yet responded to inquiries about the negotiations, leaving residents and stakeholders on edge.

Stay tuned for further updates as this situation develops.