Urgent Update: Blue Lake Water Tank Deal on the Brink of Collapse

UPDATE: Tensions escalate in Blue Lake as the city faces a critical deadline in negotiations over the aging water tank. Erin McClure, trustee of the property, has voiced her frustrations during a public city council meeting, stating, “I’m tired of not being paid for the lease.” The situation has reached a boiling point as the city issued its final offer, demanding a response by December 1, 2025.

McClure has been vocal about her grievances on social media, accusing the city of bad faith negotiations and posting videos of the leaking tank that endangers local water resources. The ongoing dispute has persisted for over 2.5 years, with both sides eager to finalize the agreement yet unable to reach common ground.

At the heart of the matter is the property where the water tank sits, a site with deep historical significance. McClure’s family has been tied to the land since her great-great-grandmother established the original water lease in 1911. The current agreement, which allows the city to use the property for a mere $100 a year, has long been deemed outdated. McClure insists on receiving a fair market value for the lease, which she estimates should be significantly higher.

The city’s last, best offer includes a $55,000 lump-sum payment and an annual payment of $6,000 with a 3.2% annual escalation rate. Additionally, the city proposes 300,000 cubic feet of free water annually and various improvements to access and maintain the tank.

As negotiations unfold, both sides have accused each other of stalling. The city claims that McClure’s shifting positions have delayed progress, while McClure contends that the city’s slow legal processes have been the main hurdle. “My concern is I don’t want it to keep kicking it down the road,” she stated, highlighting the urgency to resolve the situation.

Local resident Kent Sawatzky has also weighed in, asserting that the property’s value is significantly higher than the city’s appraisal. The contentious back-and-forth has drawn attention from the community, with many residents rallying behind McClure’s cause. “I couldn’t believe it, it made me sick. Basically, I’m a single woman trying to save a family farm, and all this is happening?” she expressed in a moment of frustration.

The water tank’s condition is worsening, with leaks impacting Powers Creek, intensifying the need for a swift resolution. As negotiations reach a fever pitch, both parties are urged to come to the table and finalize an agreement before the looming deadline.

As of now, McClure has stated she plans to consult with her legal representative regarding the city’s final offer. The outcome of this negotiation is critical, not just for McClure but for the entire Blue Lake community relying on a stable water supply. The city manager has not yet responded to inquiries regarding the situation.

Residents are left wondering if a deal can be struck before the deadline, as both sides prepare for what could be the final round of discussions in this ongoing struggle over essential resources and property rights.