It’s hard to imagine Central Oregon without thinking of big destination resorts. Names like Sunriver and Black Butte Ranch are almost as iconic as Mt. Bachelor and the Three Sisters.
But an environmental group is raising questions about the impacts of destination resorts on taxpayers. Central Oregon LandWatch says newer resorts are a drain on local governments, despite the tax revenues they produce.
To make its point, Landwatch hired a consulting firm from Eugene to study the impact of the proposed Thornburgh Resort near Redmond. Thornburgh was chosen because it would have a mix of homes and overnight lodging that’s typical for newer destination resorts, and because the plans include golf courses.
The conclusion? If you add up the revenues from property taxes and room taxes, then subtract the costs of government services the resort would use, you end up with a small surplus of about $466,000 per year.
But that doesn’t include certain fixed costs such as the price of building extra police and fire stations, and adding more schools and roads. Once those costs are factored in, local taxpayers wind up with a bill of almost $46 million dollars.
LandWatch Executive Director Erik Kancler says there’s a big difference between the older and newer resorts. “I don’t have a beef with Sunriver and Black Butte,” he says. Those resorts have a heavy mix of overnight rooms, which brings in more money for the local economy.
But Kancler says newer resorts, like Eagle Crest near Redmond, have a higher percentage of permanent residents. He says they’re more like subdivisions. But by selling themselves as destination resorts they go through a “loophole” in the planning process and avoid the kind of public scrutiny they might normally receive.
“We’re trying to answer a very basic question,” says Kancler. “The resorts are to the benefit of developers rather than the general public.”
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