Cannon Beach developer seeks $4 million for utility and site infrastructure to build surf‑lagoon destination

Cole Cannon and MEDC staff presented Cannon Beach, a mixed-use destination concept centered on a surf lagoon, boutique hotel and flexible entertainment space. The project vision calls for a 3‑acre (or larger) surf lagoon using hydraulically driven wave technology, an approximately 150-room boutique hotel, multi-use entertainment buildings (bowling, indoor karting, climbing), and family-oriented programming.

Cannon requested $4 million from MEDC/MCDC to fund infrastructure improvements to the 34.5-acre site in the first phase, including storm water, utilities and site work for the lagoon. He discussed energy efficiency (lower draw than competing wave systems), community programming (school days, veteran events), lifeguard training and multisession revenue models (day passes and hotel packages). The developer said several prospective tenants have expressed interest in the flexible entertainment space and that the surf‑lagoon phase is the capital‑intensive element that enables the remainder of the project.

Board members probed phasing, tenant interest and assurances that the developer has financial incentives to complete later phases. The developer said incentives and agreements with MEDC/EDC are structured to encourage full completion and that his team is prepared to begin the surf phase first because it is the most difficult component to finance. The board closed the public hearing and will consider materials in the February joint meeting and related council discussions.