North Bend Council discusses pilot payment issues for Bangor School housing project

The North Bend City Council's recent work session highlighted a pressing issue regarding the financing of essential city services for a new affordable housing project. The council discussed the need for a Payment in Lieu of Taxes (PILOT) agreement with the local housing authority, which is set to develop 76 affordable housing units. However, the housing authority has indicated it cannot afford to pay for the necessary city services, including police and fire protection.

Council members expressed concern over the implications of this situation, particularly given the scale of the $40 million project. The housing authority's executive director revealed that the project is not supported by HUD, which typically provides funding for such developments, leaving the city in a challenging position. Councilor Gau emphasized the importance of establishing a PILOT to ensure that the city can cover the costs associated with increased demand for services from the new residents.

The council is now tasked with determining how to negotiate a feasible solution that allows the housing authority to contribute to city services without compromising the project's viability. Discussions included the potential for infrastructure support in lieu of direct payments, but the urgency remains as the project moves forward in the permitting process.

As the council navigates this complex issue, they are seeking clear directives on how to proceed, ensuring that the city can maintain its service standards while supporting the development of much-needed affordable housing. The outcome of these negotiations will be crucial for both the city and the future residents of the new housing units.