Klamath Falls council reallocates economic development grants after public appeal

Klamath Falls — The City Council voted May 4 to amend staff recommendations for its 2026–27 economic development and event funding, reallocating amounts after several public speakers urged support for the farmers market and downtown revitalization.

Councilor Russo moved the amendment that reallocated $70,000 to Cassita, $10,000 to the farmers market and $10,000 to Discover Klamath; the motion was seconded and carried on a voice vote following council debate. The funding change adjusts staff’s initial recommendations, which were constrained by a city policy that generally limits awards to $50,000 per organization.

Public commenters emphasized local economic impact and transparency. Kelsey Mueller, who identified herself during public comment, said the farmers market generated “$550,000 in vendor sales,” supported “95 vendors” and that 21 new agricultural vendors produced about “$200,000 in sales,” and urged the council to align awards with stated grant goals and avoid treating contracted services as special-project exceptions. “Blurring that line risks undermining trust in the grant program,” she said.

Millie Osgorf, executive director of Discover Klamath, told the council her organization’s downtown gateway revitalization proposal was not recommended for funding and warned the delay would slow benefits shared across downtown businesses. “Visitor spending contributes approximately $245 million to Klamath County,” Osgorf said, arguing investments that increase downtown visitation support business retention and growth.

Councilors described a difficult decision process. Council discussed a rubric with four criteria, and members said the applications that met the most categories were prioritized. Councilor McClung said the difference in scoring for housing-related support was a major driver of which applicants were recommended by staff.

After the allocation vote, City Manager Jonathan said staff would follow up with Cassita to determine how the additional funds should be prioritized (enterprise zones versus Opportunity Zones work) and report back with a revised plan given upcoming application deadlines. Council asked staff to clarify deliverables tied to the extra allocation before full implementation.

Votes at a glance: Council approved the amendment to reallocate funding (Cassita $70,000; Farmers Market $10,000; Discover Klamath $10,000). The council also approved the consent agenda and a staff recommendation to forward a limited on-premises liquor license recommendation for Leo’s Pastoria to the OLCC.

The council’s next procedural step will be staff consultation with Cassita to define tasks tied to the additional funds and to return with details to the council for implementation guidance.