Gladstone, Clackamas County Settle Lawsuit Over Library

GLADSTONE, OR — A lawsuit filed by the city of Gladstone against Clackamas County over building a library was settled out of court this week, paving the way for construction of two new libraries in both Gladstone and the unincorporated Oak Grove/Jennings Lodge area.

As part of the settlement agreement, Gladstone officials — and possibly county officials as well — will need to secure voter approval in the May 2018 election for the construction and operating costs of a 6,000-square-foot library at what is currently Gladstone City Hall. The county will manage the library's services, as part of the agreement, costing Gladstone taxpayers roughly $200,000 annually.

In order for that to happen, however, Gladstone voters will first need to approve using local city dollars to construct the new library, which is currently prohibited. Clackamas County voters may also need to approve a ballot measure should any amendments be made to the agreement going forward.

"The city and county are moving forward on a solution that works for all parties," Gladstone City Administrator Jacque Betz said in a statement. "This is a victory for everyone involved, and the residents of Gladstone should be pleased. This settlement calls for a library that will be a centerpiece of our downtown, and Gladstone residents will not be burdened by additional taxes for its construction."

Click here to read the settlement agreement

Gladstone filed its lawsuit in August 2016, citing a breach of contract between the county and the city. Previously, in April 2011 the two government agencies agreed to fund and construct a new library in Gladstone that would also serve the residents of the "Oak Lodge" area. For that purpose, the county transferred $2.5 million to Gladstone for development and construction of a new library on Webster Road.

In November 2012, following an April vote that required the city to seek approval from voters for any city projects that needed the issuance of a bond or cost more than $1 million, voters rejected the Webster Road Library project, forcing the city to return to the county the $1.5 million remaining after spending $1 million on development of a library that never came to fruition.

Following the failure in 2012, the city and county spent the next two years re-strategizing the construction of a new library.

In November 2014, Gladstone voters approved the construction of a new library on Portland Avenue, between Gladstone High School and the Clackamas River. As part of that approval, voters also said the city was not to use city funds to construct or operate the new library, leaving it up to the county to manage. Essentially, the voters wanted the library, they just didn't want to pay for it.

In February 2016, the city — with its new library plan in hand — submitted to the county its request for the $1.5 million to use for the library's construction; but the county denied the request, citing an insufficient capital plan. In June the city resubmit a new plan, but the county again denied the request — leading the city to file its lawsuit for breach of contract in August. The county filed a counterclaim and September 2017 trial date was set.

In June 2017, both the county and city agreed to set the lawsuit aside in order to come up with a better solution that would ultimately benefit both parties. That option ended up being the two library concept, one in Gladstone and another 19,500-square-foot library in the Oak Lodge area, both of which would be operated by the county.

"This is a win-win-win solution," Clackamas County Administrator Don Krupp said in a statement. "Gladstone residents win because they get a new library with no additional taxes for construction. Oak Lodge area residents win because they get a new library three times as big as the current one.

"The county wins because a lawsuit with a constituent city is dropped," he continued. "This is how governmental conflict should be resolved. I'm especially proud that the settlement specifies a robust public involvement process that will include all relevant parties."

A settlement signing ceremony will be held at 5:30 p.m. on Monday, Oct. 16, at Gladstone City Hall, 525 Portland Ave.

RELATED:

Happy Valley Files Complaint Against Clackamas County Parks And Recreation District

Image: Travis Loose, Patch News