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Sherwood secures state award for sanitary line; URA projects proceed amid cost and permitting issues

City of Sherwood Budget Committee · December 5, 2025
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Summary

City staff said Sherwood was awarded $3.2 million via the state 'Christmas tree' bill toward a $5 million bill from Clean Water Services for the Brooklyn sanitary line; staff also updated the URA on Ice Age Drive, the tannery cleanup and a pet‑bridge project.

Sherwood officials told the Urban Renewal Agency and budget committee on Dec. 4 that the city has been awarded $3.2 million through a state funding package (referred to in discussion as the 'Christmas tree' bill) to help cover a roughly $5 million billing from Clean Water Services for the Brooklyn sanitary line. City Manager Craig Sheldon and finance staff said the state award reduces the portion that would be charged through system development charges (SDCs) once master‑plan recalculations are complete, but the money will be received only after lottery bonds are issued next spring.

Craig said the award was tied to project readiness and housing linkage in Sherwood West and other development areas; the city expects that incoming funds will lower the SDC burden when the sanitary master plan is updated. He also reported URA projects in progress: Ice Age Drive (a multi‑season project that began in July and is expected to continue into late 2026/early 2027), a tannery cleanup in 30% design with DEQ review (staff warned hauling the removed material to Arlington rather than Hillsboro will raise costs and that rail is being evaluated), and a pet‑bridge project that staff say is likely to finish under currently tracked estimates.

On funding, David explained the URA has loan proceeds and lines of credit (OTIB and Business Oregon) available for capital work; some bids came in lower than anticipated so the planned draw on certain loans may be reduced. The tannery site work has multiple funding threads: an EPA‑related grant, a potential state restoration grant application, and identified URA dollars; staff said the site remains approximately $2–2.5 million short of full funding and additional grant requests will be considered in the spring.

Committee members asked follow‑up questions about hauling logistics, contamination‑cleanup timing with DEQ, and whether TIF overperformance can be redirected to the general fund (staff said the only practical mechanism would be to redraw URA boundaries). Staff did not propose new URA boundary changes at the meeting.