Urgent Negotiations for Blue Lake Water Tank Reach Critical Point

UPDATE: Tensions escalate in Blue Lake as negotiations over the water tank property reach a crucial breaking point. Erin McClure, trustee of the property, has publicly accused the city of bad faith negotiations, while the city has issued a final offer—setting a deadline of December 1, 2025 for acceptance.

The city has been locked in a contentious negotiation process for over 2.5 years, primarily over the lease terms for a water tank that has been leaking into Powers Creek. McClure has argued that the current agreement, which dates back to 1911 and includes a mere $100 annual payment, is outdated. The city’s latest proposal offers a new lease with a $6,000 annual payment that increases by 3.2% each year, alongside a $55,000 lump-sum payment.

The ongoing dispute has drawn sharp public attention, with McClure stating, “I’m tired of not being paid for the lease,” during a recent city council meeting. Her criticism intensified after she posted videos of the leaking tank on social media, accusing the city of failing to address the issue. In response, the city attorney’s letter claims McClure’s shifting demands have delayed the agreement, creating a stalemate.

Negotiations have been further complicated by a public incident last year when city technicians entered the property without permission. McClure locked the gate after informing city staff that any access would require her approval. This incident has fueled her concerns over the city’s intentions, prompting her to threaten camping at city hall until a resolution is reached.

The proposed lease would grant the city access to the tank with various maintenance and improvement commitments, but McClure insists that she is merely seeking a fair market value lease. The city has indicated that if McClure does not accept the final offer by the deadline, they will assume she rejects it, moving forward without her agreement.

In an emotional plea, McClure stated, “I don’t want the city to take the property through eminent domain. I will not let my grandfather’s property go.” Her call for urgency resonates as the community grapples with the implications of the water system’s management.

As both sides await a response, the situation remains tense and unresolved. The council’s willingness to negotiate one last time places the onus on McClure to respond quickly, with the future of the property hanging in the balance. Residents are encouraged to stay tuned for updates as this critical situation develops.