Staff recommends developer agreement and $298,258 construction contract for Maple Leaf infrastructure; no council vote recorded

At its April 21, 2025 work session, the North Bend City Council heard staff recommendations to finalize a developer agreement with P2 Development tied to a Business Oregon grant and to award a contract for infrastructure work to Buysar Construction for $298,258.50, but the transcript does not record a formal council vote on either item.

City staff explained that the developer agreement is tied to a Business Oregon reimbursement grant and that the city will not sign the construction contract until the developer agreement is executed. "The bottom line is if we don't have the developer agreement signed, we won't sign the contract," a city staff member said. Staff noted the grant is a reimbursement program and funds are disbursed only after the city spends eligible money and submits for reimbursement.

The developer agreement discussion centered on a Business Oregon award of roughly $900,000 to the city for multiple projects; staff said the Maple Leaf project accounts for about $300,000–$350,000 of the construction work and that roughly $450,000 is allocated to utility-related costs in the grant package. Staff also said portions of the project involve systems development charges (SDCs) administered by the local water board. A staff estimate for prepaying SDCs to cover meter installation was reported as $194,000, and staff said SDCs are about $8,400 per meter.

Staff warned the city could be exposed if work is not completed before the grant period ends. The transcript records that the grant's current spending deadline is June 30, 2025, and that the legislature was considering extending grant periods; staff said that extension was not certain. A staff member noted the city received the contract documents from Business Oregon on Dec. 30, 2024, after the award was announced in March 2024, and that state processing delays have affected scheduling.

On procurement, staff reported four timely bids for the Maple Leaf infrastructure work and recommended awarding a contract to Buysar Construction in the amount of $298,258.50 to install water, sewer and storm drainage. "Staff recommends we award a contract to Buysar Construction, amount of $298,258.50," a staff member said. Other bidders named in staff remarks included Johnson Rock and Lizar/Lizaar Construction; staff said one additional bid arrived late and could not be opened.

Councilors asked clarifying questions about the grant timing, how the city would avoid being "on the hook" for unspent funds, and whether the city could prepay SDCs to expend the remaining grant dollars. A councilor asked whether the $900,000 award was received in 2022 or later; staff replied that the award paperwork arrived in late 2024 and that Business Oregon's review of contract documents took additional time. Staff said the city has a contractual out if a contractor does not meet its schedule and that the developer (P2 Development) would cover expenses beyond the grant if an extension is not granted.

No formal motion, mover/second, or roll-call vote appears in the transcript for either the developer agreement or the Buysar contract award. The transcript records staff recommendations and council discussion only.

Short-term implications include a looming grant-spend deadline (June 30, 2025, per staff) and dependence on a possible state extension. If the developer agreement is not signed, staff said the construction contract will not be executed and the city would not yet be financially obligated.

Details provided in the work session indicate staff intends to place the contract and developer agreement on the council agenda for the next regular meeting for formal action once outstanding items (bonds, insurance and the signed developer agreement) are completed and the city is satisfied it will not be exposed to unreimbursed costs.