I have to wonder if the growing number of illegal camps on and near the property didn't play a role here. Who wants to build a facility where criminals are illegally living next door and police services are sparse at best? 

Perhaps they also ran into employees being much happier in Corvallis than they would be in Eugene over the same issue. As has been noted on these boards by many, Corvallis' riverfront isn't an open latrine and homeless camp. I have lost some neighbors to Corvallis over this issue already, so it seems reasonable that people in Corvallis may not want to come live here.