Council approves AWS‑funded RV park at EOTech; some members press for tighter contract language

The Hermiston City Council on Monday approved an agreement with Amazon Web Services to build an RV park tied to the EOTech property, authorizing the city manager to sign the RV park expansion agreement and license. Council members approved the measure 6‑1 after detailed questions about funding, land ownership, user priority and termination terms.

City Manager Smith said AWS approached the city to help house contractors building the company’s data center campuses and to assist the city in delivering an event‑style RV facility outlined in the EOTech master plan. Smith said the draft agreement provides upfront funding — beginning with a $1.5 million initial payment identified in the draft — and that the city would own and operate the park while AWS would fund construction and receive preference for contractor housing.

Councilor Litton pressed for specifics: whether Hermiston already owns the parcel proposed for the site (Smith said the city owns EOTech property but some options could be on adjacent land that the city might acquire and AWS funds would be available to cover acquisition), whether the city will pay money upfront (Smith said the city will not put up its own funds), how user billing will work (individual renters will pay rental fees; a formal rate schedule has not yet been set), and what happens to non‑AWS users if AWS requests space (non‑AWS users may be required to vacate when AWS needs full capacity).

The agreement includes an initial term in which AWS has priority for a specified number of spaces; Smith said unused spaces could be rented to other users until AWS needs them. Councilors asked about the clause that would require the city to pay $20 per day per parking space to AWS if the city terminates the arrangement during the initial 10‑year term; Smith said that charge is tied to AWS’s upfront capital investment and that operating revenues could offset such payments if spaces were rented.

Council members also discussed indemnification and dispute resolution; Smith said the contract contains mutual indemnification and a standard waiver of jury trial, which is commonly used in municipal contracts. Councilor Litton said several contract provisions should be tightened before final execution; one resident at the meeting urged stronger safeguards. Councilor Hayward recused himself from the discussion and vote because of a stated association with AWS; he did not participate in the vote.

After deliberation, Councilor Barone moved and Councilor McCarthy seconded the motion to authorize the city manager to sign the agreement. The motion passed with six votes in favor and one opposed; the mayor noted that Hayward had recused himself and was not present for the vote.

Timeline and next steps: Smith said the parties will finalize site selection and design, with a target to complete construction by the end of calendar year 2026 and an internal goal to have arrangements finalized before the next fair and rodeo season. Staff will work with fair and rodeo stakeholders, adjacent property owners and the city’s event partners on final site plans, operations, pricing and user‑verification procedures.

Councilors who supported the deal cited the opportunity to obtain an asset the city will own without upfront taxpayer expenditure and to generate long‑term revenue; councilors who pressed for changes sought firmer protections around termination payments, user notification periods and clarity on how non‑AWS users will be notified and protected.