A historic Wild West city in Oregon with a population of just 30 people is on the brink of financial collapse - and may be forced to disincorporate if it can't raise money immediately.
Shaniko, about 40 miles northeast of Madras, was once a bustling shipping hub for sheep herders and wool buyers, and its population peaked at 600 in 1910.
Although its heyday has long passed, many of the town's original Old West buildings still stand, and Shaniko now markets itself as the state's 'only living ghost town.'
But the ghost-town-themed tourist draw could become permanent if Shaniko doesn't pay off its mounting debts, according to the Oregon Live.
The city held an emergency meeting where the three other councilmen present voted unanimously to authorize the mayor to sell the historic City Hall within 24 hours as a last‑ditch effort to stay solvent.
Shaniko has just $7,320 in the bank but owes about $37,000 in total debt, Council President Pam Brown revealed in the meeting.
Its most pressing bill is the $10,820 owed to its insurance provider, CIS, due Tuesday - a payment the city must make or lose its coverage.
Losing insurance would force the entire council to resign because they would be personally liable for any lawsuits.
Mayor Mark Haskett, who is married to Brown, said: 'I am duty‑bound to represent the people of this community, and whether they like it or not, I believe disincorporation is bad for them.'
He warned that the city's most urgent bill owed to its insurance provider must be paid immediately.
'If we do not pay that on Tuesday, in full, they're dropping our coverage,' Haskett said during the meeting, a recording of which is posted on the city's website. 'If we drop coverage, that means everybody on the council will have to quit, because nobody wants to be held personally liable for lawsuits.'
Shaniko has spent years tangled in vicious political feuds and costly legal disputes.
One resident, Zachary Forrest Marquart, has filed at least 14 lawsuits against the city and its officials since 2020 - all dismissed - with the city attorney calling them 'frivolous' and intended to harass.
These allegations stemmed from disputes that began when Marquart purchased property in Shaniko in 2021 and claimed the city repeatedly blocked his attempts to build a home.
Defending the cases drained thousands the tiny city couldn't afford.
Haskett added that Shaniko's collapse would betray the people who built the town more than a century ago.
'The city's in dire financial straits,' he said. 'Over 120 years ago, people came here to Shaniko looking for a new life. They didn't have cars, there were barely roads, they didn't have electricity, they didn't have chlorine in their water. And it's a disservice to these people that founded this community for us to just throw it all away.'
In addition to the insurance bill, the city also owes $6,800 to a well‑drilling company for water system equipment and $20,000 in unpaid legal fees.
The City Hall building at 48771 E Street is a false‑front wooden structure valued at about $84,800.
It no longer serves as City Hall but has housed the fire department's offices, and its old jail cells in the back were often left open for tourists to explore.
'The sale of the building will enable us to pay these three creditors, and that will then keep our city going,' Haskett said. 'We can either let it go and walk away and go home, or we can make a Hail Mary pass.'
Haskett told the council he already had a $50,000 offer but did not identify the prospective buyer.
Interested parties were given until 8pm Sunday to submit additional offers.
The Daily Mail has reached out to Haskett for comment.
Read more 2026-03-10T17:27:26Z