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Council approves $95,000 professional services agreement with Oak Harbor Main Street Association
Summary
The City Council unanimously approved a $95,000 professional services agreement with Oak Harbor Main Street Association under Washington’s Main Street tax incentive program; Main Street leaders presented downtown revitalization projects and event plans.
The City Council voted unanimously on Jan. 7 to enter a professional services agreement with the Oak Harbor Main Street Association, allocating $95,000 for the 2025 Washington State Main Street Tax Incentive Program, a contribution that typically generates a 75% state tax credit for participating entities.
Cheryl Grama, executive director of the Oak Harbor Main Street Association, presented the organization’s downtown revitalization work, describing facade-improvement grants, an incubator program that has graduated small businesses to brick-and-mortar locations, the Serendipity Lane pedestrian connection, and a calendar of more than 30 events planned for 2025. “Downtowns play a crucial role in the economic, social, and cultural well-being of the area,” Cheryl Grama said.
Why it matters: Under the state program the city participates in, contributions to eligible Main Street associations are eligible for a tax credit; the state program’s per-organization cap is described in staff materials as $213,333.33 of contributions with a 75% maximum tax credit. The city’s $95,000 contribution would produce a $71,250 tax credit for the city while funding downtown programs and match opportunities for other contributors.
Council discussion and vote: Grants administrator Wendy Horn reviewed the program rules and the city’s past participation under Resolution 1544, and recommended continuing the $95,000 contribution the city has provided since 2019. Council member Romero moved to approve the professional services agreement; Council member Wiesner seconded. The motion passed unanimously.
Programs and community input: Main Street’s presentation cited a recent façade rehabilitation, Papa Plaza improvements with a mural and stage, an incubator storefront that helped a vendor expand, volunteer recruitment and sponsorship opportunities for downtown benches, and an app for events and parking. Local merchants and incubator participants spoke in support of Main Street’s work during the presentation.
Next steps: With the agreement approved, staff will finalize terms and submit required documentation to the Washington State Department of Revenue and continue coordination with Main Street on the 2025 event calendar and grant reporting obligations.
