Council adopts annexation of 144 acres in South Beach; residential parcels deferred 10 years

The Newport City Council voted to annex roughly 144 acres of unincorporated land in South Beach into city limits by adopting Ordinance Number 2025‑08 on final passage at its Dec. 1 meeting.

Derek Tokos, community development staff, told the council the annexation is guided by the state’s island‑annexation provisions (referenced in the hearing as CHAP 222.75) and was identified in prior plan work as a priority to normalize boundaries, enable urban services and create industrial/employment land suitable for light industrial or small business parks. Tokos said most of the annex area is designated industrial under the comprehensive plan; about six residentially zoned parcels lie within the 144‑acre area.

To address homeowner concerns, the Planning Commission recommended a 10‑year deferral for residential properties and that language was included in the ordinance. Tokos said that under the ordinance those residential parcels would continue paying taxes as unincorporated property until the deferral expires, and that owners with fully functioning septic systems would not be compelled to connect to city sewer unless systems fail and sewer is proximate. The staff report also noted a Seal Rock Water District payoff obligation of approximately $272,000 for the area; the city plans to cover that amount with urban renewal funds.

Public commenters included several property owners. Jeff Burdalite, a property owner in the area, warned that access constraints and development costs could limit near‑term development and questioned the balance of benefits for owners who are already connected versus those who are not. Joe Sila, one of the six residential owners, asked whether the tax deferral and septic‑connection rules would survive a future sale; staff said the 250‑foot connection policy and deferral provisions would remain in force under the ordinance as described.

Councilor (speaker 13) moved the ordinance to final passage and the council voted with six ayes and one abstention (Councilor Hall). The ordinance withdraws the annex territory from the Newport Rural Fire Protection District, Lincoln County Library District and Seal Rock Water District and establishes city zoning for the annexed area. Implementation steps noted by staff include flagging deferred properties at the county and coordinating utility transitions and incentive programs for connections.