The City of Lake Oswego and City of Portland are currently in negotiations over how to formulate a new intergovernmental agreement regarding the operation and ownership of a potentially repaired or replaced Tryon Creek Wastewater Plant in Lake Oswego's Foothills District.

Two of the major factors yet to be determined are how and when Lake Oswego would take over the upgraded or replaced facility, as well as the percentage of compensation the City would pay to Portland for taking ownership of the plant.

A committee organized by LO Public Works and led by Deputy City Manager Anthony Hooper was formed earlier this year to look at the feasibility of either upgrading or replacing the 55-year-old wastewater plant with a new type of treatment technology known as membrane bioreactor (MBR). The technology has the potential to reduce the plant's footprint from 13.5 to 3.5 acres, which could free nearly 10 acres of prime real estate for the redevelopment of the Foothills area — currently a major goal for the City.

Last year the City Council received a proposal from PERC Water Corporation of Costa Mesa, California, and used that as a jumping off point to begin exploring options to update the plant.