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Council Approves Zoning Change for Sunset South Site after Questions About Grant Match
Summary
The council approved a zoning change from C2 to I1 for the Sunset South site after a discussion about a possible $150,000 federal grant requiring up to a 20% local match (approximately $30,000); members debated using TIF funds for the match and whether to include a recoupment clause if private owners later sell the property.
Council debated an ordinance to change zoning at the Sunset South site from C2 (commercial) to I1 (industrial). The discussion focused on a related federal site‑survey grant of $150,000 and a potential city match estimated at roughly 20% (about $30,000), a figure that some council members said they learned about only that day.
Councilmember Randy asked whether funds were budgeted or available and expressed concern at learning of the match requirement at short notice. Staff replied that the properties in question are within the newly approved port district TIF and that up to $30,000 could be moved from the North 11th Street TIF into the port TIF to serve as the match, although the exact grant total and true scope were not yet known.
Randy also asked whether the city could include a recoupment provision so that, should the private owners sell the property later, any city funds used as a match could be repaid. Staff said such provisions were reasonable to consider but emphasized the city’s objective is to make sites 'site ready' to encourage development that could generate larger tax and job benefits.
After discussion about whether to deny the zoning change and refer it to Planning & Zoning or to approve zoning now while handling grant/match approval later, council members amended and then ultimately approved the motion to change zoning from C2 to I1.
Council instructed staff that any future action to apply for grant funding and to approve a local match would come forward as separate items for council consideration and roll‑call approval.
The vote on the zoning change was recorded by roll call and passed.
