BEND, Ore. — A long-stalled resort development in Deschutes County is becoming a focal point in a broader debate over Oregon’s famously strict land use and water laws, with the developer arguing those regulations are actively suppressing housing construction and job creation across the state. The proposed Thornburgh Resort, envisioned as a luxury destination with nearly 1,000 residential units, a hotel and two golf courses, has faced over two decades of regulatory hurdles, and its founder, Kameron Delashmutt, now claims the delays have cost Oregon and Deschutes County hundreds of millions of dollars in potential revenue. The dispute highlights a tension between Oregon’s commitment to preserving its natural landscapes and the growing necessitate for housing and economic opportunity.
Delashmutt’s claims, detailed in a recent report from Thornburgh Resort, aren’t isolated. A growing chorus of developers, economists, and even some lawmakers are questioning whether Oregon’s land use system, established in the 1970s, is adequately serving the needs of a 21st-century population. While lauded for protecting farmland and open spaces, critics argue the system has created artificial scarcity, driving up housing costs and limiting economic growth, particularly in desirable areas like Central Oregon. The core of the issue centers around obtaining water rights and navigating a complex permitting process that can stretch for years, even decades.
The Thornburgh Resort Saga: A Case Study in Regulatory Delay
The Thornburgh Resort project, first proposed in 2001, illustrates the challenges developers face. Delashmutt says the project has secured the necessary land and funding, but has been repeatedly delayed by disputes over water availability and compliance with various state and county regulations. The resort’s proposed location, near the city of Redmond, is in a high desert environment where water is a precious resource. According to the developer’s report, the project has spent over $20 million on studies, permits, and legal fees, with no construction beyond initial infrastructure work completed.
FILE – A truck loaded with construction materials leaves the Thornburgh destination resort site in Deschutes County, Ore., June 22, 2022.
Emily Cureton Cook / OPB
The developer estimates the completed resort would generate $65 million annually in state and local taxes, as well as create over 1,500 jobs. These figures are based on economic impact studies conducted by ECONorthwest, a Portland-based consulting firm, as reported by The Bend Bulletin. Delashmutt argues that the current regulatory framework effectively discourages large-scale development, contributing to Oregon’s housing shortage and limiting economic opportunities in rural areas.
Oregon’s Land Use System: A History of Protection
Oregon’s land use system is rooted in a series of laws passed in the 1970s, largely in response to concerns about unchecked development and the loss of agricultural land. The system designates land for specific uses – urban, agricultural, forest, and open space – and imposes strict regulations on development within those areas. The goal was to manage growth, protect natural resources, and preserve the quality of life for Oregonians. The Oregon Department of Land Conservation and Development (DLCD) oversees the implementation of these laws. The DLCD website provides detailed information on the state’s land use planning process.
Yet, the system has evolved over time, and its effectiveness in addressing current challenges is being increasingly questioned. The state is facing a severe housing crisis, particularly in urban areas like Portland and Bend, with home prices and rents soaring. According to data from the Oregon Housing and Community Services Department, Oregon needs to build an estimated 580,000 additional homes by 2040 to meet projected demand. Critics argue that the land use system exacerbates this problem by restricting the supply of buildable land.
Water Rights and the Deschutes Basin
The Thornburgh Resort’s challenges are also tied to the complexities of water rights in the Deschutes Basin. Oregon operates under a prior appropriation system, meaning the first in time is the first in right to use water. This system can create conflicts, particularly in arid regions where water is scarce. The resort’s water rights have been challenged by existing water users, including farmers and ranchers, who fear that the development will deplete the region’s water resources. The Oregon Water Resources Department (OWRD) is responsible for managing the state’s water resources and resolving disputes over water rights. More information about Oregon’s water rights system can be found on the OWRD website.
Delashmutt contends that the OWRD has been overly cautious in approving the resort’s water use plan, despite demonstrating a commitment to sustainable water management practices. He argues that the state needs to adopt a more flexible approach to water allocation, recognizing the economic benefits of development while protecting the environment. The debate over water rights in the Deschutes Basin is emblematic of broader challenges facing Oregon as it grapples with the impacts of climate change and a growing population.
The situation with Thornburgh Resort is far from resolved. Delashmutt says he is continuing to work with state and county officials to address the remaining regulatory hurdles. A key upcoming date is a hearing scheduled with Deschutes County officials in May to review the project’s revised water management plan. The outcome of that hearing could determine the future of the resort and potentially set a precedent for future development projects in Oregon.
As Oregon continues to grow, finding a balance between protecting its natural resources and fostering economic opportunity will be a critical challenge. The Thornburgh Resort case serves as a stark reminder of the complexities involved and the potential consequences of inaction.
This is a developing story. We will continue to follow the progress of the Thornburgh Resort project and report on the broader debate over Oregon’s land use and water laws. Share your thoughts on this issue in the comments below.
Related reading
