The Seaside City Council unanimously adopted Ordinance 2025-07 in a special session, creating a property tax exemption program for nonprofit corporations providing low-income housing under ORS 307.54–307.548.

City staff said the ordinance provides a code framework that allows the city to consider applications for exemptions; it does not itself grant an exemption to any specific project. “This doesn’t approve any specific development for a tax exemption,” Jeff (city staff) said, noting individual applications will be brought back to the council for discretionary review.

The ordinance mirrors state requirements and, according to staff, aligns with programs other Oregon cities use to encourage affordable housing. Development representatives said the exemption is a condition of an imminent closing for the Pacifica development (formerly the North 40). “Without having a property tax exemption, this project will not be able to move forward,” Steph Condor said by phone, adding the project is slated to close Wednesday and to break ground Friday if the exemption is available.

Condor told the council the project has secured about $14,600,000 in state subsidy plus roughly $12.5 million in low-income housing tax credits and has lender approvals; she said codifying the state statute into city code facilitates the exemption request and approval.

City legal review was completed after the ordinance’s second reading, staff said, removing earlier reservations among council members. Spencer (city staff) reported that legal review is done and emphasized that the city retains flexibility and discretion about when and how to use the exemption authority.

Councilors moved to read the ordinance by title for third reading and then voted to adopt it. Councilor Posalski moved to adopt Ordinance 2025-07; Councilor McVay seconded. A roll-call vote recorded yes votes from Council President Morrissey, Mayor Wright, Councilor McVay, Councilor Pozalski, Councilor Hoffman and Councilor Benacker. The motion carried unanimously.

Council President Morrissey said she would sign the ordinance immediately and provide a copy to the developer when they arrive. Staff reported that site work preparations were already underway and that the developer had requested gate access so locates and initial site activity could begin before closing.

The ordinance creates the mechanism for Seaside to receive and evaluate exemption applications but leaves approval of any individual exemption to future council action based on an applicant’s merits.