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About half of Blue Lake’s water storage has been caught in limbo during years of negotiations between the city and a beneficiary of the trust that owns the land it’s stored on.

The city may move this week towards taking 1.89 acres of land through eminent domain, following a lengthy series of problems in lease negotiations to access a 400,000 gallon water tank and other key city-owned public water infrastructure.

In response, a trustee of the property has filed a lawsuit seeking $1,375,000 from the city.

A lingering easement deal with Blue Lake resident Erin McClure seemed finally resolved earlier this year. She sought an updated agreement after a century-old lease expired over a decade ago.

The council agreed to an easement deal in April, with the city paying her the first annual fee of $6,000 to kick off the agreement.

The deal would have come with a lump sum of $60,000 and free water, in exchange for the city’s continued use of the tank and water infrastructure that date back to the early 1900s from when McClure’s ancestors developed the city’s water system.

But negotiations hit another snag this spring, according to the city’s account. To get title insurance for this easement, something attorneys for the city deemed essential, McClure and other beneficiaries needed to sign written consent to the transaction.

Attorneys cited concern that McClure may not have the authority to execute the easement deed under the trust’s terms.

However, according to the city, McClure refused to coordinate the other beneficiaries to sign off on the easement.

“McClure stated she is unwilling to obtain beneficiary consents, will not seek court approval, and will not even provide her own written consent in her capacity as a beneficiary,” according to a city council meeting staff report.

But from McClure’s position, the agreement was already executed, according to a city account.

After multiple unsuccessful attempts to get her cooperation on the insurance issue, and the subsequent official termination of the proposed deal earlier this month, the city manager is now asking the council to cease negotiations and start the process of purchasing about 1.89 acres including the tank site, waterline, access road and pipes through eminent domain.

“The City’s goal has always been and continues to be that we reach a mutually agreed upon negotiated agreement with Ms. McClure, and the City will continue to participate in good-faith negotiations as part of the proposed [Uniform Relocation Act] acquisition process,” Blue Lake City Manager Jennie Short wrote the staff report.

“However, if agreement cannot be reached, or if the property owner continues to be unable to provide insurable title, the proposed process can culminate in action by the courts to grant ownership of the tank site with easements to the City while ensuring that just compensation is paid to the property owner.”

Tonight, the council will consider contracting with a real estate law office for property appraisal and acquisition of the site. The council is asked to authorize $25,000 for property acquisition.

In a letter, the law office indicates it “will attempt one final settlement prior to initiating condemnation proceedings.”

McClure’s lawsuit, filed in Humboldt County Superior Court Friday, claims the city has refused to enter into a lease after over a decade of attempts.

The lawsuit claims the water tank issue has diminished the property value of the 75-acre ranch by $500,000, deprived McClure from using her property, which has allegedly sustained damages of $878,000.

McClure has also taken to Facebook, accusing the city of bullying her for over a decade.

“I’m standing up for all the American people who are threatened in this way. At some point somebody needs to put their foot down. I’ve been willing this entire time to do what was best for both the City and McClure Trust,” she said in a message to the Outpost.

“For over 100 years my family had a lease with this City without problems. My goal was to carry on in the same manner but the City wanted something else. Now here we are. This is not good for anyone. The American people are tired of having their property taken. I hope I can make a difference.”

The item is on the meeting’s consent agenda, typically approved without discussion.

The meeting is Tuesday, July 28, 2026 at 6:30 p.m. in Skinner Store with a Zoom attendance option. Click here for the full agenda.