Local interest in buying Skyline Forest remains strong

Published 5:45 am Saturday, January 27, 2024

The 32,995-acre Bull Springs Skyline Forest, shown here, has long been on the wish list of Central Oregon conservation groups who prize the area for its natural beauty, wildlife habitat and recreational opportunities. The land's owner, Shanda Asset Management LLC, has  listed it for sale along with all of the corporation's other Central Oregon timber lands.

When U.S. lawmakers criticized Chinese entrepreneur Chen Tianqiao because he owned thousands of acres of agricultural land nationwide, they touched a nerve with Central Oregon conservationists who have sought control of the billionaire’s private forest land near Bend for more than 15 years.

The property — the 32,995-acre Bull Springs Skyline Forest — has long been on the wish list of local conservation groups who prize the area for its natural beauty, wildlife habitat and recreational opportunities. Since July 2008, local leaders have negotiated with owners past and present to secure control of the land, only to fall short each time.

Two years ago, the mayor of Bend, a Deschutes County commissioner and a Bend city councilor stood on a hilltop overlooking Skyline Forest and reaffirmed their commitment to preserving it. Yet despite the community’s long love for the land, little has changed since then.

Still, some remain hopeful that the dream of local ownership and permanent conservation can be a reality.

“I get excited when there is renewed interest in this,” said Anthony Broadman, the city councilor who pledged to conserve the forest two years ago with other officials.

Most Popular

“Each time there is an opportunity for our community to step up and save it from large-scale, impactful development, then it’s worthwhile.”

Broadman said he sees a path forward for local ownership of Skyline Forest but exactly how it might look remains hazy.

Chen’s company, California-based Shanda Asset Management LLC, put the property on the market in 2019 for $127 million but later lowered the price to $95 million. Shanda has given little indication of what direction a sale might go. All that is really known is that price has been an obstacle. In the meantime, Bend-based Deschutes Land Trust has spearheaded local efforts to keep the property undeveloped. There are several management scenarios that potentially include public land managers as part of a conservation outcome, said Executive Director Rika Ayotte.

What are the options for conservation?

Talks to conserve Bull Springs have been ongoing for years. One option is for Deschutes Land Trust to purchase the land by tapping into different funding sources. Another option could see Deschutes Land Trust acting as a steward of the land for a buyer whose goal is conservation.

The Land Trust already conserves 18,7842 acres in Central Oregon. One of its largest conservation areas is the 4,621-acre Priday Ranch, which it acquired in 2020, north of Madras.

Ayotte said Deschutes Land Trust has been close to a deal with a Shanda, but to date, no agreement has been reached.

“We really feel if we can come to an agreement that makes sense for both organizations we are certainly ready to move forward,” she said. “But it’s up to the discretion of the seller. We will continue to maintain a positive working relationship with them.”

More Coverage

Bend’s Skyline Forest — owned by Chinese billionaire — under scrutiny

As for funding, one option could be tapping into the resources from the Land and Water Conservation Fund, a national program created by Congress in 1964. Funded with $900 million annually the program is intended to protect natural areas from development.

A temporary buyer, or group of buyers, could also step in to purchase the property on behalf of Deschutes Land Trust and be repaid over time.

But ultimately, costs have to be a concern.

“Even in the nonprofit space, and even though this a very important property for the community and the state, it has to pencil out for both sides,” said Ayotte.

What is the current status of the forest?

Bull Springs Skyline Forest has special zoning from Deschutes County that permits growing trees and active timber harvesting.

The purpose of the zoning is to guarantee the continuous growth and harvesting of trees while protecting the land from conflicting development. It also permits agriculture and recreation.

Parcels in such zoned areas must have a minimum size of 240 acres, with just one home per parcel.

The zoning designation limits destination resorts and subdivisions whose presence may adversely affect habitat for wildlife, along with water, recreation and wildfire safety. Conditional uses include private hunting and fishing, single-family dwellings and private parks or campgrounds.

Active logging and wildfire thinning projects are currently ongoing at Skyline Forest. Jason Reindorp, a spokesperson for Shanda, said clear-cutting only takes place for salvage after a fire or to manage insects or tree disease. He dismissed reports that clear-cutting occurs as part of the logging strategy.

Ayotte is also wary of claims of clear-cutting.

“I would characterize accusations of clear-cutting as incorrect,” said Ayotte. “We fielded lots of those phone calls. (Shanda) has a clear and straightforward prescription for how they are thinning out there, and it’s aligned with our federal land managers and how they are thinning. So I think clear-cutting is a mischaracterization.”

Access

As for public access, there isn’t any currently. Shanda closed the forest in 2022 due to fire risk and Central Oregon’s extreme drought conditions.

Bill Lynch, president of Central Oregon Trail Alliance, said there is a “general annoyance” in the bike-riding community about the closure, but he is hopeful that one day the forest will reopen to bikers and a singletrack trail can be built to connect Bend and Sisters.

“If I could wave a magic wand, I’d love to see a new land owner who wants to lean into the recreational opportunities,” said Lynch. “We’d love the opportunity to work with an owner to design a great singletrack experience that’d appeal to all types of riders.”

Deschutes Land Trust would like to see such an experience sooner rather than later but says it will stick with its conservation plans for as long as it takes.

“We are here for the long run. We have properties we are committed to stewarding in perpetuity,” said Ayotte. “This property has changed ownership many times over the years, and it may change in the future, but the constant is that we are here and our interest in conserving the property will continue.”

A priority for the land trust is to ensure any owner of the land, Shanda or someone else, understands there is a local partner, Ayotte said.

“We’re willing to work with the current owners and any future owners to find a path for permanent conservation,” said Ayotte. “We have standards that we have to uphold as an accredited land trust, and they have their own personal goals they want to meet, too, so the best-case scenario is that we find the place where those things meet.”

Bull Springs Skyline Forest Timeline

Bull Springs Skyline Forest has had several owners. The following are some of the milestones according to Deschutes Land Trust.

1988: Crown Pacific acquired most of the land now known as Skyline Forest.

2001 to 2003: Crown Pacific sold around 3,500 acres of the Bull Springs Tree Farm near Shevlin Park. Several of these properties are now developed into residential areas.

June 2003: Crown Pacific files for bankruptcy after defaulting on $500 million in secured debt.

December 2004: Crown Pacific is liquidated in bankruptcy court and its assets transferred to creditors. The tree farm falls under the control of a holding company called Cascade Timberlands LLC.

July 2005: The Deschutes Land Trust announces its vision to acquire and conserve the Bull Springs Tree Farm, and rename it Skyline Forest.

May 2006: Fidelity National Financial assumes the controlling interest of Cascade Timberlands, owner of Skyline Forest.

August 2010: Rooster Rock fire burns 6,100 acres in Skyline Forest and the adjacent Deschutes National Forest.

2012: The Deschutes Land Trust and its partner the Conservation Fund tendered offers to Fidelity to buy Skyline Forest. The offer was declined.

June 2014: Two Bulls Fire burns 6,900 acres in Skyline Forest and the Deschutes National Forest.

2015: Fidelity National Financial sells Skyline Forest and all of its Central Oregon holdings to Whitefish Cascade Forest Resources LLC, which is now called Shanda Asset Management, LLC.

2019: Skyline Forest is put up for sale by Shanda Asset Management.

2024: Rep. Lori Chavez-DeRemer calls on federal regulators to investigate the 2015 purchase of Shanda’s forestland in Oregon, including Bull Springs Skyline Forest.

Shanda’s Landholdings

in Oregon

Shanda Asset Management controls approximately 197,500 acres of forestland in Oregon. In addition to the 32,995-acre Bull Springs property, it also owns the 50,200-acre Gilchrist tract, most of which is in Klamath County with a portion located in southern Deschutes County. Shanda’s other holdings include the 22,900-acre Spring Butte tract and the 90,000-acre Mazama, both in Klamath County, and a 480-acre piece of property in Lake County.

Marketplace