Newport council annexes about 2.65 acres at Southeast Fortieth and U.S. 101

The Newport City Council on Tuesday approved Ordinance No. 2231, annexing about 2.65 acres at the southeast corner of Southeast Fortieth Street and U.S. 101 into the city and withdrawing the annexed territory from the Lincoln County Library District, the Newport Rural Fire District, and the Seal Rock Water District.

Derek Tokos, Community Development director, told the council the annexation petition was filed by South Beach Church. Tokos said the petition covers approximately 2.65 acres, including a 2.32-acre Tax Lot 300 owned by the church, and that the property lies inside the urban growth boundary and is contiguous to city limits. Tokos said staff and the planning commission recommended annexation and industrial zoning to address a local shortage of light industrial land.

Tokos said the city’s urban service area agreement with Seal Rock Water requires the city to pay the property’s proportional share of district debt when a parcel annexes. The staff report referenced an accounting from the Seal Rock Water District; the transcripted figure was unclear. The council record indicates city staff told the council the payoff is covered in the current budget, but the exact payoff amount was not specified in the public record provided at the meeting.

Luke Frechette, speaking for the applicant, told the council the church’s objective is to have the parcel inside city limits to increase the property’s marketability and potential future use; he said the church is not proposing immediate development. Frechette also asked whether the property might benefit from a separate “island annexation” rebate program being developed by the city for other nearby properties; city staff said the parameters of that rebate program have not been fully determined and availability to this parcel is not certain.

Councilor Emond moved to place Ordinance No. 2231 for final passage and to read it by title only; Councilor Rumagu seconded. The motion carried on a recorded roll call with all council members present voting in favor: Emond, Rumagu, Hickman, Capquin, Hall, Parker and Jacoby (ayes). The ordinance formally establishes industrial (I-1/light-industrial) zoning for the annexed territory.

Why it matters: annexation brings additional land into the city’s planning and permitting system, potentially increasing the inventory of light industrial property available for businesses. It also shifts service-provider responsibility and requires the city to resolve remaining financial liabilities with the affected special districts before the annexation takes full effect.

The council closed the public hearing after the applicant’s remarks and voted the ordinance to final passage. Staff said they will proceed with administrative steps to effect the withdrawal from the named special districts and to apply the established zoning. The council did not set a separate implementation date during the meeting.