The North Bend School District 13 Board of Education voted 5-2 to approve two resolutions that endorse a substantial amendment to the City of North Bend Urban Renewal Agency (URA) plan and allow a public building project to be included in a proposed downtown housing development.

The amendment is intended to keep approximately $250,000 a year of locally generated tax increment in North Bend and to leverage a previously awarded $4,000,000 federal grant for a downtown housing project, city officials told the board. Jeff Bridal, finance director for the City of North Bend and its urban renewal agency, urged the board to support both votes and said they would “benefit our students, strengthen our community, and cost the school district nothing.”

Bridal told the board the amendment would not change state school funding, which he described as “enrollment based, tied to the number of students in our classrooms.” He said the proposal would help create housing for families, which could increase enrollment and associated state funding. Bridal said the city had already secured $4,000,000 in federal funding for the housing project and that approval by the school board would “unlock and multiply” that commitment.

Board members and members of the public raised a series of questions about scope, oversight and local impacts. Several speakers asked whether the school districts own property was included in the URA map and whether inclusion could expose the district to eminent domain or involuntary relocation. City staff said the districts removal from the URA map had been carried forward from the prior administration and that state guidance recommended including school district property because it allows for potential cost-sharing on jointly funded projects; city staff said eminent domain between governments is not the practical mechanism at issue and that the city had not used eminent domain in its history.

Public commenters opposed to the change said local taxing districts lose revenue when tax increment is directed into a URA. Rob Taylor, a resident and public commenter, told the board the plan would divert funds from other taxing districts and urged board members to reject the amendment. Chris Castleman, who said he is from Coos County and reviewed agency documents, called the proposed amendments maximum indebtedness and budget figures a "red flag," questioning why the amendment request exceeded the currently stated project cost.

Board discussion showed differing perspectives. Several board members said increasing housing and enrollment was important to sustain staffing and programs; other members said they were concerned about the city acting as landlord and about the degree of public input on the URA. After discussion, the board approved both measures by hand vote, recorded in the meeting as 5 in favor and 2 opposed for each resolution.

The boards approvals do not finalize the URA changes. City staff said the amendment also requires approval by the City of North Bend and a final vote by the urban renewal agency (the city council typically serves as the URA governing body). City staff also said the special local levy tied to the current URA would sunset if the amendment passes and estimated the citywide effect at roughly a quarter-million dollars per year kept local; they said a related special levy shown on local tax bills (described in the meeting as roughly $300,000 in total) would be affected by the amendment.

Votes at a glance:
- Resolution E26-01 (substantial amendment to North Bend Urban Renewal Agency maximum indebtedness): motion to approve carried, tally 5 yes, 2 no; outcome: approved.
- Resolution (inclusion of a public building project within the downtown housing development): motion to approve carried, tally 5 yes, 2 no; outcome: approved.

What happens next: city staff said the city council and the urban renewal agency must complete their approval steps and that URA financials and federal grant reimbursements will be subject to standard audits and reporting requirements.

Speakers quoted in this report spoke during the agenda item announced as the urban renewal action item. The boards recorded discussion, public comments, and the recorded hand votes are the basis for this account.