Staff at the Department of State Lands hopes by mid-November to start seeking sales proposals for a 36-acre Redmond subdivision with 63 finished lots, ready for building.

Before a request for proposal can be issued, it must be reviewed by the Oregon Department of Justice, said John Russell, principal real property planner for the Department of State Lands. He expects a meeting about the process to be held in Redmond, although a date has not been set.

The Department of State Lands got the OK to seek the proposals Oct. 14 from the State Land Board, composed of Gov. John Kitzhaber, Secretary of State Kate Brown and State Treasurer Ted Wheeler.

Typically, the department simply auctions property to the highest bidder, Russell said, but soliciting ideas through an RFP would “allow people to be more creative in their proposals,” he said. The subdivision, called Forked Horn Butte, will not be sold by the lot, Russell said.

The state initially started the sale process for the southwest Redmond development in June but received two widely different appraisals of the property’s value. Russell said he could not specify those values.

Deschutes County, however, now estimates the combined real-market value of all the lots and the bare 19 acres at about $2.7 million, according to property records. Deschutes County certified property tax rolls for 2014-15 on Oct. 13, Assessor Scot Langton said. Last year, the combined value was about $1.64 million, according to property records.

Values on development property have “come back really strong,” Langton said.

The state became the owner of the subdivision in a 2009 property exchange with Giustina Resources, a private timberland owner based in Eugene. Giustina received 620 acres of forestland in Lane County, and the state got the subdivision, located east of SW Helmholtz Way and less than a half-mile north of Ridgeview High School.

Forked Horn Butte has paved streets, sidewalks, streetlights and prepared home lots on 17 acres. It also has an additional 19 acres of bare land for a second phase of building, according to state records.

Those seeking more information about the proposed sale may email John Russell at john.russell@state.or.us

— Reporter: 541-383-0360,

tdoran@bendbulletin.com