Depoe Bay urban renewal agency votes to investigate adding Kent Street to district; funding and major infrastructure prioritized

Depoe Bay Urban Renewal Agency members voted to investigate adding the Kent Street property to the city's urban renewal district and spent the work session mapping spending priorities for water, sewer, streets and pedestrian improvements.

The agency discussed using a mix of urban renewal funds and Transient Room Tax (TRT) revenue to pay for infrastructure and to leverage grants and developer investment. Agency members and staff flagged an estimated $4.5 million planning figure for a new water treatment plant, potential change-order overruns on ongoing projects, and the need to sequence engineering work so grant matches and other funding can be secured.

The investigation into Kent Street followed a broader conversation about what projects are already in the urban renewal plan, what remains undone, and whether adding city-owned parcels would allow the agency to use incremental tax dollars to subsidize infrastructure and encourage private development. A member moved that staff investigate adding the Kent Street property to the urban renewal district; the motion passed on a voice vote with members present answering "aye." The motion directed staff to report back with the legal and mathematical analysis required to amend the district boundary and to confirm any percentage or acreage limits that would apply.

Why it matters: urban renewal districts use increases in assessed value within their boundary to pay for public improvements. Agency members said adding city-owned land could let the agency subsidize new development'for example, by extending sewer and water or installing parking and utilities'and then capture the resulting increment in tax receipts for the renewal program.

During the work session staff summarized current fund balances and near-term obligations. Participants cited about $1.3 million already in TRT reserves and discussed a figure of roughly $1.7 million available in TRT overall; staff reported the city had budgeted about $1.8 million in TRT revenue for the year but noted the general fund receives a portion of that revenue under current practice. Members also said recent construction change orders had put the renewal fund roughly $54,000 over budget on a specific project and raised the possibility of more than $100,000 in additional work tied to a cracked conduit related to harbor driveway/electrical work.

Water and sewer infrastructure dominated the priorities discussion. Participants said a failure or sliding of the water treatment facility foundation requires new engineering, and that the agency should add a replacement or relocation of the water treatment plant to the urban renewal projects list so engineering can be completed and grants pursued. Staff said the 4.5 million estimate reflected an early, high-level placeholder for planning and design; members emphasized the work should be phased (engineering first) and noted that receiving state or federal grants will likely require the agency to provide matching funds.

Members reviewed a project list previously prioritized in 2023 and noted several items already completed (sidewalk and parking work on Bay Street, upgrades on Shell Avenue) while others remain pending, such as slip-lining sewer segments around the harbor, upgrades to a 12-inch water main, and replacement of aging AC lines in front of private development. Several members said smaller, lower-cost pedestrian improvements such as curb ramps and sidewalk repairs near the public park, the bus stop by the little blue hotel, and Kearney Street should be considered as early actions because they can improve safety and may be eligible for nonrenewal grants or partnership funding with ODOT.

ODOT coordination and permit requirements were raised repeatedly. Agency members noted that ODOT is committed only to curb ramps under an existing program and that other pedestrian or roadway improvements will require a separate permit process and may be funded by the city or through a city-contracted construction agreement. The agency also discussed timing: ODOT has projects planned in the area for 2027 with a possible move up to 2026, and members said the agency should plan its projects so they complement ODOT work rather than duplicate it.

Members discussed housing as a potential allowable use of renewal funds if the project fits within the plan'for example, sewer and utility extensions to support workforce housing. Several members described a development approach that would keep city ownership of land or sell it to a developer at a favorable price, using urban renewal to pay for public infrastructure and then recapturing increment through the renewal mechanism.

Other topics covered included traffic calming and speed-trailer signage for tourist seasons, options for the city to pursue a charter amendment to change debt limits (which could affect access to certain grants or bonding tools), and the agency's sunset date for the urban renewal plan (members cited a 2029 expiration and said that timeline should inform project sequencing).

The agency asked staff to: (1) analyze the legal and mathematical implications of adding Kent Street to the renewal district (including acreage and percentage limits), (2) update the urban renewal plan document and maps to show boundary amendments and any omitted projects such as the water treatment plant, and (3) return with a prioritized top-four list in water, sewer and streets so the agency can match projects to funding sources and grant opportunities.

Agency members said they will seek engineering estimates before committing large sums, pursue grant programs (including DEQ and other state programs mentioned during the meeting), and consider phased approaches so the city can meet match requirements. The work session adjourned after members confirmed the staff follow-up assignments.