The Sedro‑Woolley City Council on Oct. 22 approved an ordinance revising community center and senior center policies, updated the city’s master fee schedule and authorized a package of funding and contract actions that include a $611,000 allocation from House Bill 1590 capital funds to the RJ Group.

The council passed Ordinance No. 210525 on a motion by Councilman Henderson, seconded by Councilman Burns. The ordinance updates municipal code provisions for the community center and senior center, revises damage and security deposit language and clarifies that insurance requirements will be handled administratively. The council set the standard security deposit for use of integrated audio‑visual equipment at $100 and retained a $1,000 maximum security deposit where alcohol is served.

Council also approved Resolution No. 116825, an update to the master fee schedule, with the fee and deposit changes for the community center reflected in the resolution.

On the city’s allocation of House Bill 1590 capital funds, the three‑member screening committee (Councilmembers Diamond, Henderson and Lavaca) recommended funding the RJ Group’s Beatty Square project in partnership with Home Trust of Skagit for $611,000. After discussion about competing proposals from Family Promise and others, the council voted to accept the committee recommendation.

The council also authorized the mayor to execute a grant and development agreement with the RJ Group and Skagit County to accept county economic development funds previously awarded to the RJ Group. The council had earlier approved the county grant award and at the Oct. 22 meeting authorized the city to receive the funds and manage reimbursements to the developer as the project incurs eligible costs.

On transportation infrastructure, the council authorized the mayor to sign an agreement with BNSF Railway to proceed with Phase 2 of the Jones‑John Liner railroad undercrossing project and approved Contract Supplement No. 1 with David Evans & Associates to continue design work for the undercrossing (supplement not to exceed $259,955). The public works director said an easement and temporary construction easement payment to BNSF will be due within 60 days of executing the agreement and that a balance payment of roughly $395,000 will be due when BNSF reaches substantial completion of its portion of the bridge work.

Votes at a glance

- Ordinance No. 210525 (Community Center / Senior Center code updates): motion by Councilman Henderson, seconded by Councilman Burns; outcome: approved; tally: 7 yes, 0 no.

- Resolution No. 116825 (Master Fee Schedule update, amending community center deposits/fees): motion to approve as amended; outcome: approved; tally: 7 yes, 0 no.

- HB‑1590 capital funds recommendation (award $611,000 to RJ Group/Home Trust of Skagit): motion by Councilwoman Kesty, seconded by Councilman Henderson; outcome: approved; tally: 6 yes, 1 no.

- Grant/Development Agreement (city authorization to accept Skagit County funds for RJ Group Beatty Square infrastructure): motion by Councilman Burns, seconded by Councilwoman Diamond; outcome: approved; tally: 7 yes, 0 no.

- Agreement with BNSF for Jones‑John Liner undercrossing (authorize mayor to execute): motion made and seconded; outcome: approved; tally: 7 yes, 0 no. Easement payment due within 60 days; additional $395,000 balance contingent on BNSF substantial completion.

- Contract Supplement No. 1 with David Evans & Associates (undercrossing design): motion by Councilwoman Burns, seconded by Councilwoman Diamond; outcome: approved; tally: 7 yes, 0 no; supplement not to exceed $259,955.

What council said

Council members debated the HB‑1590 award at length. Councilman Cook questioned the per‑unit cost of the RJ Group proposal (committee materials showed a subsidy roughly in the neighborhood of about $200,000 per unit in some scenarios), and asked whether Family Promise’s project — which proposed a greater number of units targeted at lower AMI (area median income) levels — provided more immediate shelter for people experiencing homelessness.

Proponents of the RJ Group noted the proposal emphasizes long‑term home ownership and a development template the city could replicate; committee members said the RJ Group project could be delivered more quickly and get the city’s funds into use without substantial additional subsidy. Council members also noted the two projects serve different needs: Family Promise focused on transitional shelter for the 0–30% AMI range, while the RJ Group proposal targets homeownership opportunities at higher AMI thresholds with an objective of household stabilization and turnover to serve additional families over time.

Administrative notes

City staff said the ordinance and fee changes will be entered into the city’s reservation and payments system and will require a day or two for back‑end updates before online reservations reflect the new rules. Staff also clarified that the $1,000 deposit is a maximum cap and that deposits do not stack when multiple items (for example, alcohol and AV equipment) are reserved.

Ending — Follow up: Council members asked staff to continue vetting remaining funding requests and to return with any further recommended allocations or clarifications on funding terms and project timelines.