09:47 AM PDT on Thursday, October 13, 2005

Associated Press

KLAMATH FALLS, Ore. -- Homeowners seeking to move out of a subdivision contaminated with asbestos could be leaving by next June under a proposed settlement. 

The settlement between homeowners, developers, the state of Oregon and the U.S. Environmental Protection Agency was outlined Wednesday when homeowners met with the Klamath County Board of Commissioners.

KGW

A sign warns people not to enter an area being cleared of asbestos.

A final agreement hinges on decisions by state and federal courts and the finding of funding to keep houses at the North Ridge Estates subdivision in shape until environmental cleanup is done. 

The homeowners are asking the county to pay $250,000 to help cover the cost of maintaining 20 houses at the subdivision about 3 miles northeast of Klamath Falls.

The asbestos was left over from the area's former use as a military base.  

"We are not a wealthy county," said Commissioner Al Switzer. "For us to get $250,000, we would have to do some real soul searching to figure out where to get it."

Other parts of the settlement, which attorneys involved have kept confidential, were detailed by the homeowners at Wednesdays meeting: 

-- A buyout of the homeowners for 80 to 85 percent of the assessed value of their homes as of six months ago.

-- Study and then possible cleanup of the subdivision by the EPA, at an estimated cost of $20 million. 

-- Establishment of a liquidating agency, supervised by the EPA and run by a trustee, that would sell off 20 of the homes once the cleanup is done.

The county would help fund the liquidating agency, which would cost $667,560 for two years. Other funds could come from mortgage companies that helped with the purchase of homes at North Ridge Estates. The cost would cover security, landscaping and maintenance at the houses while the EPA works. 

"I think everyone agrees this is the best possible outcome," homeowner Harriet Cornachione told the commissioners.

Two more public meetings will be held in November.