SIUSLAW NEWS ❚ WEDNESDAY, NOVEMBER 1, 2017
Dunes City
from 1A
The commission decided to
look into multiple ways to pre-
vent the grows, including
amending city code to prevent
large agricultural grows,
regardless of the crop, and cre-
ating a moratorium on grow
sites pending further research
and consideration.
Mills was tasked with look-
ing into these issues, which she
frequently did with the com-
mission throughout the follow-
ing months.
On April 27, Mills explained
to the planning commission
that Dunes City cannot prohibit
grow sites, but it could adopt
“reasonable” regulations and/or
require
Conditional
Use
Permits.
Allen suggested that the
commission could address pos-
sible code changes.
On June 22, the commission
notes read, “Staff went on to
report that research is ongoing
into language regulating mari-
juana grow sites and suggested
that research continue and dis-
cussion follow at a later date
(sic).”
But actual changes to the
code were never approved or
discussed by Dunes City
Council until the complete ban
on future grows. The LUCS
were also never discussed,
except by marijuana grower
Valerie Cain-Mathis in April,
when she outlined her opera-
tion’s compliance with city
laws.
The council did not vote on
the actual LUCS; however,
Mills did approve it. Citizens
have stated Mills circumvented
the council and planning com-
mission by doing this, but city
regulations give her full author-
ity to do so.
Oregon State Law 475B.063
states that when a LUCS is sub-
mitted to a city for approval,
the city has 21 days to approve
the LUCS. Cain-Mathis’ was
approved on Feb. 2, long before
the city council and planning
commission’s joint meeting on
what city laws actually mean
regarding grows.
Mills was forced by state law
to make a decision within a 21-
day time frame, which would-
n’t allow for a year’s long dis-
cussion on city codes.
“Since each of the three
LUCS applications submitted
to Dunes City are for indoor
grow operations, and after con-
sulting with the city’s attorney
and another at Lane Council of
Governments (who stated the
grows must be approved), I felt
I had no choice but to approve
the LUCS,” Mills said.
Regarding the fact that Mills
submitted the LUCS without
Dunes City Council approval,
she referred to her contract,
which states she is to “work
under the direction of the
mayor performing other such
duties as may arise.”
“Since the city administrator
is the only official employee of
Dunes City (other staff in the
office are part time Cardinal
employees who do not have
sole decision-making authority
of the city), I am tasked with
duties of the planning secre-
tary,” Mills stated. “The plan-
ning secretary is tasked with
making the final decision on
LUCS.”
It was neither the city coun-
cil’s nor the planning commis-
sion’s job to approve the
LUCS. It was Mills’.
It’s these kinds of communi-
cation issues that the city is
having problems with, coun-
cilors contend. Mills is the only
employee allowed to make
decisions, and there are no
other full-time staff members to
look into complex issues.
This also inhibits Dunes City
Council’s ability to function.
Councilor Duke Wells has
frequently blamed himself and
the past city councilors for not
fully understanding the com-
plexities of marijuana law. In
2016, the council was focused
on possible tax issues regarding
marijuana. It never occurred to
them that they had to think
about grow facilities.
“I was on the city council
when this issue came up and we
missed it,” Wells said.
“Somehow it got put aside. I
honest to God don’t remember
this ever coming up. ‘Do we
want commercial grows in
Dune City?’ I don’t remember
that question being asked in a
meeting. But, at the same time,
obviously it was there to be
found. We didn’t ask the right
questions of staff. I think that’s
how we got here.”
The city’s limited staff could
not fully address the council on
these issues, and a council con-
fused on the full ramifications
of marijuana legalization didn’t
know what to ask city employ-
ees. In short, all parties are
overwhelmed.
Recently,
Dunes
City
Council has asked for the pub-
lic to become more involved to
help the city.
Wells talked about how he
often speaks to citizens on his
own about issues, then brings
those concerns to council meet-
ings, but finds empty seats in
the audience.
“Most of the time there’s
nobody sitting out there,” Wells
said. “When it is big issues like
the septic system or pot, we fill
it up. Which is fine. Like our
mayor said, I wish those folks
would come here every meet-
ing.”
At one time, the city did have
more opportunities for public
input through multiple commit-
tees and commissions, but in
April many of these programs
were abolished due to lack of
public involvement. In one
case, the Dunes City Road
Commission had not had a quo-
rum present for months.
“We’d have a lot smoother
operation if we had that input
all of the time,” Wells said.
An attorney for the grow site
stated that there is nothing in
state law that allows the city to
rescind or revoke a LUCS. Any
attempt by the city to do so
would be unlawful.
The lawyer also made the
case that his clients had a vest-
ed right to continue their grow
operations, as the city had
approved the LUCS months
ago, the growers have invested
large amounts of capital into
the project and the city made a
contract. If the city reneged, the
lawyer said, the growers would
have every right to ask for that
money back from the city.
“The city council has a duty
to protect the interests of all the
citizens of Dunes City, not just
those that yell the loudest,” the
law firm said. “Exposing the
city to substantial liability is
hardly looking out for the well-
being of the entirety of Dunes
City. … It is time for the mayor
and the city council to stop pan-
dering to a vocal minority bent
on bullying my clients out of
Dunes City. It is time for every-
one involved to grow up and
move on.”
Dunes City Mayor Bob
Forsythe said he was sympa-
thetic with the lawyer’s view.
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“Even if there was an error in
the process, but both sides were
acting in good faith, it’s not
going to matter,” he said. “It’s
just like any other contract. Just
because one little thing in the
contract wasn’t right, it doesn’t
mean the whole thing was
thrown out. So, if you’re wait-
ing on line seven, unless it’s
egregious, there’s nothing to do
about it.”
Councilor Sheldon Meyer
asked, “If we go broke, and if
we’re spending all of our
money on legal fees, then what
do we do? We don’t have
money, we don’t have taxes.”
How the city is funded is a
major factor that Forsythe
brought up.
Dunes City has limited
income sources. It receives
money
from
Oregon
Department of Transportation,
which is restricted for the
roads; a hotel tax, which is reg-
ulated to marketing and
tourism; a tobacco tax; and fees
from building permits. One of
the city’s biggest income
streams is franchise and busi-
ness license fees.
But the city does not tax its
residents.
“We’re talking about servic-
es that we don’t have and don’t
provide,” Councilor Robert Orr
said. “I’m not saying that I
would want to tax anyone, but
how do you provide services
without having revenue from a
tax in the community? I know
where we get some of our
7 A
funds, but we don’t have a
budget.”
A major lawsuit could push
the city into bankruptcy.
Enforcing codes without an
infrastructure can cripple jus-
tice. The city cannot afford a
more robust, full time staff that
would help alleviate many of
the compliance and communi-
cation issues the marijuana sit-
uation brought to light.
“The city wants rules and
they want regulations and they
want us to do these things but
we have no teeth,” Councilor
Tom Mallen said. “Really, the
marijuana issue will continue.
If we have some rules that we
can enforce, maybe it could be
helped. It’s a delicate balance
right now. Here we are, trying
to deal with things in making
decisions. I kind of wonder
what type of teeth we do have.”
If these basic functions of a
city cannot be met, the council
wondered, should Dunes City
still be an actual city?
When asked if some of the
city’s problems led to the con-
troversy of marijuana grow
sites, and if these issues could
lead to an answer about the
city’s future, Mallen said, “I
think it plays into it quite heav-
ily because Dunes City is obvi-
ously expressing an opinion
that they don’t want marijuana
here. So, it would seem, just
from all this hullabaloo that
we’ve been through, that Dunes
See
DUNES CITY 8A
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