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George Heidgerken outside the Blue Heron paper mill's front gate.

(Steve Mayes/The Oregonian)

What is George Heidgerken going to do with a defunct paper mill in downtown Oregon City?

That's a question Oregon City officials have been asking since early April, when the Tacoma developer offered to buy the bankrupt mill for $2.2 million and close the deal immediately.

The mill site, covered with some 50 buildings, many of them immense and unsightly, was on the market for more than three years. Three developers made offers then backed out.

Jumpy city and Metro officials, who hold high hopes for the 23-acre site, mounted an unsuccessful last-minute bid for the property. They didn't know much about Heidgerken, had almost no contact with him and that made them nervous.

After meeting with Heidgerken and his land-use advisor for nearly two hours last week, the public sector is breathing easier.

Heidgerken's vision for the site is in line with what the city and Metro want, said City Manager David Frasher.

"We gave him lots of information," Frasher said.

Metro wants to develop a river walkway with a viewpoint overlooking Willamette Falls.

Oregon City spent nearly two years developing a master plan for the site. The plan establishes new zoning, development guidelines, open space and a street grid. Metro hopes to acquire an easement from Heidgerken and build a $30 million riverfront esplanade that would open Willamette Falls to the public.

"He indicated he could live with that," Frasher said.

"We like what they've done (and) what they intend to do," Heidgerken said, who acknowledges he jumped in the deal knowing little about the site or what he would do with it.

"It had everything we like and I said, 'let's do it.' (The bankruptcy trustee) wanted something quick and wanted cash and no messing around and I did it," Heidgerken said.

What Heidgerken likes are sites that have an industrial past, faded glory and a lot of potential.

(For more on Heidgerken's other projects, read 'Rough hewn' George Heidgerken tackeling redevelopment of Olympia brewery, Tacoma mill)

He acquired old Abitibi paper mill in Steilacoom, Wash. last year and part of the former Olympia brewery in Tumwater in 2010. He also bought a 330,000-square-foot Nalley Foods warehouse complex near Tacoma. Like the Oregon City site, they are all in the planning stage.

Blue Heron mill in Oregon City 24 Gallery: Blue Heron mill in Oregon City

Heidgerken has some ideas about what he wants to see on the Blue Heron property: A "very active" farmers' market, perhaps a hotel, art galleries.

He tossed out nearly identical ideas in 2010 when he bought the brewery site, according to The Olympian newspaper.

Perhaps a craft brewing center where local breweries could showcase their products, something he's considering in Tumwater.

And architecture that showcases Willamette Falls. Buildings that offer clear views of the falls and river. "I look at this project as glass ... glass and steel," Heidgerken said.

He will tear down some of the more unsightly metal buildings that dominate the site. "Without a doubt," he said. None of the candidates are buildings Oregon City has identified as historically significant, Heidgerken said.

Heidgerken said he is aware of the place the Blue Heron site holds in Oregon history. Its link to Dr. John McLoughlin; its importance to Native Americans; its 175-year-old industrial ties to Oregon City.

"Everybody has a point of view on your property. You don't want to ignore them. You want to work with them. They're part of the legacy," Heidgerken said. "It's not about us as owners. It's not about the city as planners. It's about the legacy of this site."

-- Steve Mayes