“This is the kind of project that defines a community’s legacy,” said City Manager Luke Shepard. “It’s about making decisions today that will serve future generations of Rockaway Beach residents and ensure our City continues to thrive long into the future.”
On April 8th, the City of Rockaway Beach signed an agreement to purchase 800 acres of forestland, including 600 acres in the lower part of the Jetty Creek watershed, which is the City’s primary drinking water source, prior to the end of the year.
“One of the city’s priorities is to ensure we are providing residents and visitors with clean, safe, reliable, and affordable drinking water,” said Mayor Charles McNeilly. “This purchase allows us to do that without increasing rates or taxes. And we will be adding recreation opportunities on the property outside of our drinking watershed, which will support tourism.”
The purchase price of $4.35 million will be covered in large part by state funding – including $1.25 million from the Oregon Watershed Enhancement Board’s Drinking Water Source Protection Program, and another $1.55 million through loan forgiveness from the Oregon Department of Environmental Quality. The remaining $1.55 million will be paid via a loan from DEQ, which the City will repay over 30 years. Through financial planning done by City Staff, this acquisition will not increase water rates throughout the lifetime of the loan.

“This is a huge win for the city and its residents,” said Sandy Johnson, a community member on the Source Water Protection Planning Advisory Committee and the Jetty Creek Forest Stewardship Planning Advisory Committee, two committees that played an instrumental role in planning this acquisition. “It is much more cost-efficient to buy a watershed than to find a different watershed and alternative water supply. It’s also better for our local economy, tourism, and recreation. This is a win-win.”
The City intends to purchase the property from L&C Tree Farms LLC (L&C), which Nuveen Natural Capital has managed since its acquisition in 2017. This purchase was made possible through years of collaboration among Nuveen, local partners, and the City, led by the Jetty Creek Working Group.
“Stewardship is about responsibility and trust,” said Kevin Brown, Regional Manager for Nuveen. “By partnering with the City of Rockaway Beach, conservation organizations, and the local community, we’ve been able to manage these forests in a way that protects clean drinking water, restores salmon habitat, and keeps working forests viable. This purchase represents the culmination of years of trust and collaboration, and we’re proud to have played a role in helping ensure the watershed remains healthy and resilient for generations to come.”
Since the acquisition, Nuveen has invested directly in environmental enhancement projects within the Jetty Creek area. These efforts, designed through conversations with community members and local conservation partners, balance sustainable timber management with ecological restoration and include pre-commercial thinning to reduce forest density and improve wildlife habitat; mapping and removal of invasive species to protect native vegetation; installation of bird boxes and construction of habitat piles for birds and small mammals; tree planting and vegetation maintenance to support long-term forest health; wetland delineation and restoration to improve water filtration and habitat diversity; and stream assessments to guide large wood placement projects that restore salmon habitat.
“This is the kind of project that defines a community’s legacy,” said City Manager Luke Shepard. “It’s about making decisions today that will serve future generations of Rockaway Beach residents and ensure our City continues to thrive long into the future.”
Together, these efforts demonstrate that timberlands can be managed not only for economic value, but also for the benefit of people, wildlife, and the planet.
Frequently asked questions:
– Will this purchase increase the cost of water for residents of Rockaway Beach?
No. This purchase allows the city to keep water costs low, because purchasing and conserving this land is a less expensive way to provide clean drinking water to residents and visitors when compared to the cost of additional infrastructure investments for water treatment.
– What activities will be allowed on the property?
Following the acquisition, the City will develop a recreation and public access plan, to allow continued public access to the property. As currently permitted, the City will continue to allow light, non-motorized recreation and intends to develop a system of trails on portions of the property that will not impact water quality.
– Will there be any timber harvest coming from the property?
No. The associated Forest Stewardship Plan does not contain any recommendations for commercial timber harvest on the property. In the future, the city may explore carbon storage credits for the forest as a revenue source.
– How did the city come to this decision?
Discussion around the Jetty Creek Watershed has been taking place with L&C/ Nuveen since they acquired the property in 2017. Since 2023, the City has been actively involved in discussions around how best to ensure that the watershed continues to supply clean, safe, reliable drinking water to the city. An acquisition of the drinking watershed was identified as the community’s #1 priority in its recent strategic planning efforts. Following significant community engagement efforts, fundraising, and financial planning, the City and Nuveen are ready to turn this years-long acquisition effort into reality and bring 800-acres of forest land into City ownership.
Partners in the project include City Staff, Leadership, and community members, Nuveen Natural Capital, L&C Tree Farms, North Coast Land Conservancy, and Sustainable Northwest.
