North Bend council adopts urban renewal amendment to fund workforce housing

The North Bend City Council on Sept. 23 adopted Ordinance No. 2083, approving amendments to the North Bend Urban Renewal Plan that increase the plan's maximum indebtedness and fund a workforce housing project and downtown revitalization programs.

City staff told the council the primary change in the amended plan is a housing project that will demolish and reconstruct properties purchased by the Urban Renewal Agency in 2021. Staff said the agency purchased the properties for $125,000 and later acquired two additional lots on the south side of Virginia Street. Council heard that the federal delegation helped secure $4,000,000 toward that housing project. “This is not a tax increase,” a staff member said during the staff report, describing the amendment as continuing existing shared tax-increment financing rather than raising property tax rates.

The council opened a public hearing on the amendment, received written testimony into the record and closed the hearing before moving to ordinance readings and adoption. Staff said construction for the housing project is anticipated to begin within about 18 months if the program moves forward as planned. The staff presentation also said the amended plan keeps existing downtown programs — including façade grants and urban revitalization funds — and that staff will later present proposals to use program income from Urban Renewal Agency properties for grants outside the district.

At the meeting, Councilor Slater moved to adopt Ordinance No. 2083, and the motion was seconded (second not specified in the record). A roll-call vote recorded Councilor Jones, Councilor Hamilton, Councilor Campbell, Mayor Gable Key, Councilor Schulz, Councilor Slater and Councilor Torres voting “for the ordinance.” The ordinance was adopted; staff said it will be effective 30 days after adoption.

Votes at a glance - Ordinance No. 2083 (North Bend Urban Renewal Plan Amendment): Adopted. Motion to adopt: “I move the city council adopt ordinance 2083 approving the North Bend Urban Renewal Plan Amendment.” Mover: Councilor Slater; second: not specified in the record. Roll call: Councilor Jones — yes; Councilor Hamilton — yes; Councilor Campbell — yes; Mayor Gable Key — yes; Councilor Schulz — yes; Councilor Slater — yes; Councilor Torres — yes. Effective: 30 days from adoption. - Memorandum of Agreement with U.S. Coast Guard Base North Bend (mutual aid): Authorized. Motion recorded as moved and seconded; council authorized the mayor to sign the memorandum subject to final-form review by the city attorney. Mover and seconder recorded in discussion as Councilor Jones (mover) and Councilor Schulz (second). Vote: all in favor. Outcome: approved. - Authorization to apply for Business Oregon housing infrastructure support funding: Authorized. Motion moved by Councilor Jones and seconded by Councilor Barbotany (name as stated in the record). Vote: all in favor. Outcome: approved. - Consent calendar: Approved earlier in the meeting by voice vote; motion carried.

Why this matters The ordinance expands the Urban Renewal Plan’s borrowing capacity and explicitly prioritizes a workforce housing redevelopment project that staff say already has $4 million in federal support. Urban renewal amendments and the use of tax-increment financing affect how future property-tax increments are allocated among taxing districts and which projects receive public support; the council and staff noted they secured concurrence from required taxing districts and have communicated details to utility customers and residents.

Supporting details and council discussion - Staff said the Urban Renewal Agency purchased properties in 2021 for $125,000 and obtained two additional lots on Virginia Street. Staff described the project vision as housing and said it was coordinated with county partners. - Staff described the under-levy that the agency used previously as a tool to preserve options for the agency rather than exhausting the district’s full maximum indebtedness; staff told the council that exhausting maximum indebtedness could have forced the agency to consider sunsetting the agency or other statutory options. - The plan retains downtown façade grant programs and urban revitalization funding; staff said they will return later this year with proposals to use program income for grants beyond the district once the plan is in effect.

What the ordinance does and next steps Ordinance 2083 makes determinations approving the amended Urban Renewal Plan and directs publication of notice of approval. Staff said, if all steps proceed, construction for the housing project could begin in roughly 18 months. The council’s vote completes the local approval step; staff and the Urban Renewal Agency will handle subsequent implementation actions and grant administration as the program moves forward.

Provenance Topic introduced: staff presentation opening the public hearing on the North Bend Urban Renewal Plan amendment (transcript around s=316.11–s=349.23). Topic finished: staff confirmation the ordinance passed and will be effective in 30 days (transcript around s=1091.46–s=1095.73).