Oak Harbor Council considers two-year extension for hillside home development

The City of Oak Harbor Council held a workshop on March 25, 2025, focusing on the development agreement and subdivision for the Hillside Planned Residential Development. The meeting addressed significant concerns regarding the progress and future of the project, which has faced delays due to regulatory challenges and changing conditions.

Developer Mr. Thompson expressed frustration over the difficulties in obtaining necessary permits and the rising costs of construction on Whidbey Island, where custom homes can exceed $500 per square foot. He indicated that the project, initially planned to include ten homes, has been stalled due to issues with stormwater runoff regulations and the departure of the fire marshal, which has complicated the approval process for fire safety measures.

Council members discussed the implications of the development agreement, which is set to expire soon. They considered options for extending the agreement by one or two years, allowing the developer additional time to meet the requirements for construction schedules and engineering estimates. The council emphasized the importance of ensuring that the project aligns with community needs while also addressing the developer's concerns about the feasibility of the current plan.

After deliberation, the council voted to approve a two-year extension of the development agreement, contingent upon the submission of a construction schedule and engineer's estimate within 60 days. This decision aims to provide the developer with the necessary flexibility to navigate the complexities of the project while ensuring compliance with city regulations.

The council's actions reflect a commitment to balancing development interests with community standards, as they continue to address ongoing questions from residents about the future of housing in Oak Harbor. The next steps will involve close monitoring of the project's progress and further discussions on potential amendments to the development agreement as needed.