Council, Urban Renewal board approve fee and annexation items; URA authorizes $100,000 development assistance for Paquette Hotel

McMinnville’s City Council and Urban Renewal Agency handled a mix of routine and development‑related items April 23, approving infrastructure cost adjustments, land‑use steps and a small urban‑renewal development assistance package.

Key outcomes at a glance

- Meadows Drive change order (Resolution 2025‑15): The council approved a change order to share additional construction costs for the Meadows Drive project. Staff said the work became necessary when crews opened pavement and discovered existing inlet and manhole connections that needed replacement; the board approved the city’s share for the added work.

- Sanitary sewer user fees (Resolution 2025‑09): The council approved a 2.5% increase in sanitary sewer rates, effective July 1, 2025. Public Works staff said the increase continues a multi‑year schedule of modest annual adjustments the council adopted after a pause during the pandemic; staff cited higher construction and chemical costs at the wastewater plant as part of the rationale.

- Annexation agreements (Resolutions 2025‑12 and 2025‑13): The council approved two annexation agreements that establish the conditions under which properties that are partly inside the urban growth boundary will join city limits when conditions are met. One agreement (Jose Garcia) requires the owner to annex the unincorporated portion of his partitioned parcel when adjoining property annexes to avoid creating an island. The other (Stanley and Nyla Cook Revocable Trust) was the more conventional voluntary annexation framework for a two‑phase 10‑lot subdivision; staff explained required public‑facility and access conditions would be tested during subsequent land‑use review and permitting.

- First reading passed for Ordinance 51‑59 (comprehensive plan amendment / zone change): The council conducted and passed on first reading a comprehensive plan and zoning map change for property at 2320 SE Stratus Avenue (docket CPA‑01‑24 / ZC‑04‑24). The first reading passed 4‑2; the ordinance will return for a second reading at a future council meeting.

- Urban Renewal Agency assistance for Paquette Hotel (Urban Renewal Resolution 2025‑02): The Urban Renewal Board authorized the city manager to enter documents that would put $100,000 of agency support into Alpine Hospitality LLC’s Paquette Hotel project at 1066 NE Alpine Avenue. The support is structured as a five‑year forgivable loan tied to performance metrics and recorded against the property; if the developer fails to meet agreed milestones the loan becomes repayable with interest. Staff described a five‑year repayment/disbursement plan for permit‑fee and SDC billing so the agency can spread the cost while the project is built and occupied.

Why these items matter

- Sewer rates: The 2.5% increase continues a period of modest adjustments staff says are necessary to cover rising operational and capital costs after a pause in rate increases during the pandemic era. The council approved the increase after staff presented assumptions and a schedule tied to the forthcoming wastewater master plan.

- Annexations: The approved annexation agreements set clear conditions for future development and protect the city against isolated unincorporated islands. In both cases the agreements require future land‑use work and public‑facility dedication, and they record obligations that run with the land.

- URA assistance: The $100,000 package for the Alpine/Paquette Hotel was modeled on an earlier hotel assistance package. The funding will be delivered as a forgivable loan structured to be payable if the project is sold or if performance milestones are not met; the agency and city finance staff said the URA can absorb the payment schedule without jeopardizing planned projects.

Votes, roll calls and notable discussion

- Ordinance 51‑59 (Stratus rezoning): passed first reading 4‑2 (cast as recorded in the April 23 roll call). Several councilors raised traffic, pedestrian safety and cumulative growth concerns during the public hearing on that item; staff noted transportation and sewer capacity analyses would be required at the development‑permit stage.

- Resolution 2025‑09 (sanitary sewer fees): adopted unanimous 6‑0 in the roll call presented at the meeting.

- Urban Renewal Resolution 2025‑02 (Paquette Hotel assistance): passed unanimously 6‑0 at the Urban Renewal Board meeting following the council session.

Public comment highlights

Multiple members of the public urged the council to approve more housing and to support affordable development projects elsewhere in the city. Several residents and business owners raised persistent noise, speed and traffic concerns on Third Street and adjacent intersections; a number of public comments focused on downtown traffic safety and enforcement. The meeting also included requests that the city move forward with staff work to prepare a ballot measure for a proposed recreation bond.

What’s next

- The Stratus rezoning ordinance will return for a second reading on a future council agenda (the first reading passed 4‑2). - The Urban Renewal Agency’s recommended MOU to begin negotiations with Palindrome Properties (Resolution 2025‑03) was placed on the URA agenda for May 13, 2025. - Staff will proceed with the five‑year permit‑fee/SDC billing arrangement for the Paquette Hotel if the developer meets the milestones that trigger disbursement or forgiveness.

Speakers and staff who appeared frequently during the business portion of the meeting included Community Development Director Heather Richards, City Manager Jeff Towery, Public Works and Wastewater staff, city finance staff and multiple councilors who led questioning during deliberations on annexations and fees. The full meeting packet and staff reports are posted to the city website and include the cost‑share change‑order materials, the sanitary sewer fee review memo, and the annexation‑agreement forms.

Ending: how to follow up

The council’s next regular meeting dates and the URA meeting schedule are listed on the city calendar. Staff told the board that items with outstanding technical analyses (transportation or detailed sanitary‑sewer capacity reviews) will be resolved during development permit review or via conditions spelled out in the annexation agreements.