City Council - Regular Meeting

Yes, you can learn. Good evening. It's six o'clock and I'd like to call the McNavville Urban Renewal Agency meeting to order. I'd like to call on Heather Richards to present. Good evening, mayor and counselors. In your role as the board for the urban renewal agency, tonight you're considering the annual financial report for the fiscal year ended June 30th, 2025. What you do is you um adopt this and um give us the authority to present it to the city. uh we have noticed it in the newspaper uh for the last couple of Fridays and it's different than your audit. This is an annual financial report that's required by urban renewal state law uh to go through some of the resources and expenses for the past year in terms of urban renewal, how we use the funding and how it impacted overlapping taxing districts. But typically for this evening when we bring this to you, we also share with you um what the urban renewal advisory committee is thinking about for the next year. They in their January and February meetings, they go through their five-year strategic plan. Um they look at the budget recommendations and any sort of significant projects that they would recommend to move forward. So I was

going to visit with you about that as well. So just to remind everyone, urban renewal is governed, it's a separate agency from the city. It's governed by the urban renewal plan and the report for that plan and tells us how we can move forward uh in terms of managing the agency and the projects in it. The purpose for it is to improve specific areas of a city that are poorly developed or underdeveloped. Uh, so usually that means there's old or deteriorated buildings and 56% of the northeast gateway area properties when the urban renewal plan was put together were considered low improvement value. Um, streets and utilities are in poor condition typically and there's a lack of parking. That's what described this particular urban renewal district. It allows for the agency to use the tax increment financing that's collected after the frozen base was established to fund projects which will stimulate redevelopment, business invest investment and economic economic vitality to revitalize these areas. So, you've seen this before, but this is a reminder of how um urban renewal is meant to work, where you as the agency invest strategically in public improvement projects and private development projects to stimulate that um tax base in the area. That creates more tax increment financing, which pays off those urban renewal projects. And presumably by the end when you uh sunset out of the area and it goes back all of it goes back onto the tax roles it's at a much higher exponential rate than it would have been without this without this effort and investment. So uh it particularly in the northeast gateway area and this particular urban renewal plan it it has been working that way. So the one of the first projects done by the agency was phase one of Alpine Avenue where investment took

place in taking a gravel street and making it a improved street which then stimulated uh redevelopment and new new investment on vacant properties or redevelopment of um abandoned properties in that area um uh to stimulate the tax base and create jobs. And now we're working on the northwest rubber site as a catalytic redevelopment for that area too. This shows what the urban renewal district is. It combines two of your city center district city center neighborhoods. So the city center itself which we often call downtown and then the northeast gateway area which is um has Alpine Avenue and Lafayette Avenue sort of as the grounding public improvements there. The urban renewal plan has goals and objectives that we need to make sure the projects are implementing. So, public involvement, economy, encourage a unique district identity, uh public utilities, housing, historic preservation, development, and redevelopment. So, there's eight goals and objectives in this urban renewal plan. And when we look at projects, we look to see if they're meeting those goals and objectives. There's a baker's dozen projects in the plan. So, this is how we can expend the the funds collected on these projects. And the plan itself tells us how much we can expend on those uh in 2013, which we can escalate forward based on when we implement the projects. And there's also a time frame in the plan as to when we should implement them. And this was done after careful study and engagement with the community and discussion with property owners about what where their intentions were in terms of private development needs and public improvement needs. And then the plan itself and the financial feasibility was calculated based on when these projects would hit the ground and stimulate that redevelopment. Several of the projects were also taken

care of with the transportation bond that was passed after the TSP was passed. So those projects no longer needed urban renewal funding. And so that funding is now something to be reconsidered for other public improvements if if necessary. And the agency itself has been focusing on two larger transportation improvement projects. the Alpine Avenue project that I discussed phase one and then the third street streetscape project which now has become a a street improvement project and then it's been focused on the other piece that I described which is the uh investing in private development as catalytic redevelopment for the area. So there's been intentional uh decisions made to invest in development assistance programs. One of the first acts we did was create a facade improvement grant program and a development loan and grant assistance program and we see activity in that every year. Um you'll see a recommendation come to you at your next meeting relative to that program. And then property acquisition uh buying property to reposition it for private development to meet the goals of the district um which is what we're working on right now with the Northwest Rubber Site. So to give you a dashboard of where we are uh in terms of property taxes, we have collected about and this is through fiscal year N 2025. So June 30, 2025, we've collected about $4.1 million in uh property tax revenue to show you what what that looks like against our financial feasibility analysis. Our adopted urban renewal report identified a financial feasibility analysis which um was more aggressive than what we've been seeing. So we haven't been performing to that any of the years. It looks like it um it shows that we should be in this fiscal year end collecting about 1.2 million in our annual

increment and we collected 684,000. So about 50% less than that financial feasibility report. What that means is it may take longer to implement the projects in the plan um based on how we're collecting funds and can repay back those bonded projects. In 2016, we realized that it was a bit aggressive and so we did a reset on the financial feasibility analysis before we went out for the Alpine Avenue bond and we seem to be tracking there a lot better. If you look at we're still a little bit down and and we've decreased uh from the previous year and I think that's because some of our larger private properties in the district were picked up for public use and came off the tax roles. Um but uh if you notice fiscal year end 2025, it was anticipated we'd be at 750,000 this past year and we were at 685. So trending pretty closely. Oops, that's a duplicate. Am I going backwards? There we go. Um, so the property assistance program, uh, we have assigned $940,000 to that from the 2013 dollars. We've invested $618,000, a little less than that, in loans and grants. This is intended to be a revolving program. So, as um, we have a five-year clawback on any grant that we invest in. So if the property sells within 5 years, that grant is repaid back to the agency so that there isn't a sort of flipping mechanism to collect equity based on that investment. And then also we have loans that are paid back as well. So we've collected back $133,000 of that $617,000. And the intention is is that replenishes the program to fund more private development projects. In terms of parking, we have a million dollars in the plan for that. We've only spent 115,000 thus far. The bulk of that

was spent on uh repaving the First Presbyterian Church parking lot uh just right outside here. That is used um during the the time that the church is not using it as a downtown public parking lot. And then our third street improvement project in uh 2013 we had about 2.3 million identified for that. We feel that's closer to 3.4 now with escalation and we've spent 330,000 thus far on that. So um in the early years we spent money on sort of having the dis facilitating the public discussion of what do we want to do as a project and then we started getting into design and participated in the 30% design process. with funding. And then the Alpine Avenue Street improvement project, $5.3 million is in the plan for that. We've spent 2 million. Uh we with the transportation bond that was passed in, I think 2013, 2010, somewhere around there. Um half of the Alpine Avenue project phase one was paid for with that bond funding. So the urban renewal agency paid for the other half. It was a $4.5 million project and we're paying off that bond. That's the only bonded debt we currently have. The Northwest Rubber Site is the newest um expenditure, larger expenditure in the program. We have a carry we have a carrying price for paying the interest on the um loan that the city got from the wastewater fund to purchase the site um and also providing uh utilities and security to the site. Our carrying price through June 30 of 26 is $575,000 oh 620,000 with the utilities and security through through the June 30 of this year. And then there's interest proceeds. So

interest proceeds are interesting. You can use them as the agency for um projects that meet the goals and objectives of the plan but may not necessarily be a prescribed project in that 13 um that list of 13. And so we do keep track of the interest earned for that very reason. And there's we have collected about 143,000 in interest earnings over the years. So that takes us into your annual financial report. That's the the dashboard is for the uh lifespan of the urban renewal agency in this particular plan. And now we're just talking about last year. So in the annual financial report we uh we um provide information about the money the resources so the revenue received by the agency which is mostly property taxes. there's some of that property assistance loan payback that's occurring and interest income and then how we expended funds in the past year. So you'll note that when we do a budget we typically will budget um allocations in many different projects so that the funding's there to use it if we need to use it but we don't always use all of it. Um it is a captured independent fund so it rolls over next year into the into the same funding program. So last year uh we collected about $950,000 and we expended about $790,000. Uh we also have to show what our long-term obligations are. So this would be our bonded debt and we have that one bond which is the Alpine Avenue bond. As we start to do other larger projects like the Third Street improvement project and we take out bonds for those, you'll start seeing the sequencing of bonds in this annual report and where we're at with each of those individually. An urban renewal is meant to be used for bond. The intention is you're bonding early for larger projects to stimulate

redevelopment and then paying that back with the um increment financing over the lifespan of the the actual district. So then we also need to calculate uh provide information about what the adopted budget is for our current fiscal year that we're in. So we call it the proposed budget and go through the same sort of process of identifying the resources that we expect and then the expenditures as well. And we have two uh funds for urban renewal. We have a debt fund where the property taxes come into the debt fund. That's where we pay our bonded debt from. And then we have a uh project fund if you want to think of it that way. And we transfer funds from the from the debt fund to the project fund to pay for projects every year. So you'll see transfers in and out of those two funds with each other. Uh we need to report our maximum indebtedness. So that's the maximum debt that we can incur um to implement the plan. Uh in the McMinnville plan, it's $30 million. And we have expended 3.9 million thus far. So about $26 million of maximum deadboness is remaining. And then we have to report the impact on the taxing district. So this is looking at what's called foregone revenue. Forgone revenue is the revenue that um they based on the uh their percentage of the overall levy rate on the property they would have collected uh in this past year. and um it's revenue presumably that's more than it would have been if the district didn't exist because we're trying to stimulate investment and create tax base at a larger rate than what's happening around the city. This is the first year you're going to see McMinnville fire in this list. Um so typically the city of McMinnville and the McMinnville school

district are the two largest districts that are impacted um by this program and then Yamhow County and then McMinnville fire. uh schools in Oregon are funded through a state school fund. So um this this 204,000 from or 211,000 from the McMminville school district doesn't mean that that's what they're losing. That means that's what the state school is losing state school fund is losing that gets then redistributed. So in some areas where you have larger urban renewal agencies where the impact is larger to um the school districts there they could be impacting that state school fund in a greater percentage if you want to think of it that way. Uh so Mir does work from this strategic plan where we have discussions about how to invest the funds. We're still fairly young. The increment is still fairly low. Uh to give you some idea, uh when I left, uh Redmond, we had a downtown urban renewal district and at that point the annual increment was about $2.3 million. That was 10 years ago. So, um they do get to a point where they're generating much larger increments to pay off these projects um quicker at towards the end of the district. Um but because the resources are fairly low, the discussion about how to invest them is very intentional and is look and strategic. And so we've talked through different um projects over the years. The third street improvement project is still on the list and we'll move forward in terms of um financing the next step of design for that. Uh and then the northwest rubber site is obviously on there and uh this year new to the strategic plan is Alpine Avenue phase two. So that's constructing the remainder of Alpine Avenue in the

district. The budget discussion uh the Mirac uh voted on recommending this to the urban renewal board when you go through your budget process, but it's to populate the typical funds that we populate. So, development assistance and housing development. That's the loan and grant programs. Third street improvement uh to fund the downtown master plan, which we're hoping to get underway here very soon. Uh to fund administration. So, the agency does pay the city to administer the program. It's not a full cost recovery. The plan actually has a cap on how much uh the agency can pay the city for administration um to continue to fund holding costs on the Northwest Rubber site and then to come in and start working on Alpine Avenue and the design for Alpine Avenue um and construction documents to move that forward. So, I wanted to share a little bit about the most recent discussions Miracat's had about Alpine Avenue. Um they've been talking about the need to do phase two of Alpine Avenue and in the plan it's described that phase two should be completed by 2028. So we're actually on good timing for that. The first phase was completed in 2018. They started the discussion for design and development of phase one in 2015. And if you see here there's three different districts that were identified in the plan. the festival district, the craft district, and the future district. So phase one was 7th Avenue to 11th Avenue, and phase two will be 11th Avenue to 13th Avenue, comprised of four blocks. Phase one uh again was um $2 million out of urban renewal, so there's 3.3 million remaining. And mayor, thanks to your efforts and Representative Elmer's

efforts and Senator Stars, it is likely that there will be 1.5 million coming to the agency for the remaining cost of that project so we can move forward with it um imminently here. So, in the plan, uh, it talks about Alpine Avenue being the central spine for the district, that it needs to be a primary pedestrian route, that it supports craft workshop atmospheres, that that has a festival street near the grainery district, and it's a catalyst public improvement project. That's all language right out of the plan. Um the design for phase one was based on several different uh areas that the committee looked at. But the um from what I understand, this is all done before my time. So for those of you who are here, if I get it wrong, let me know. Um but from what I understand, Granville Island was a um influenced uh the discussion for how the McMinnville felt this area could develop and should redevelop it and also the sort of pallet for this area. So, Granville Island, if you're not familiar, was an old industrial um area uh and then eventually was redeveloped into this thriving sort of crafts workshop, farmers market area. And these are some pictures from that, but it has a distinctive sense of place associated with it. So the Alpine Avenue project phase one took about uh one year to go through design to construction documents bid and award. So we were looking at that in terms of time frame and had several different uh meetings and design cheretses and community forums that came up with the design that you see out there today. Um this is uh some pictures that I grabbed from old powerpoints that show the committee that worked on this. Many of these people, I'm sure, are familiar to you, and many of them were part of Murack when I first started here nine

years ago. Uh, but this is what Alpine Avenue used to look like. So, very narrow road with no sidewalks, um, and no curb and gutter. And so, the design challenge identified at that time was to balance the design for people and vehicles. Um, so that meant to be a a primary pedestrian avenue and to support the new and existing economic vibrancy and investment. So what that meant was it also needed to balance how freight came into the site and on into the district because there were still industrial businesses working there um that were dependent upon that freight. They came up with design principles uh that reflected that that design challenge and and um that was the decision-making filter for how they came up with the design. And then they looked at several other um facilities around the Pacific Northwest. What's interesting to me is all these are curbless environments. So I'm assuming that that was an initial decision that was made and then they started looking at what does the design look for all those look like for all those curbless environments. They then had a discussion about what would um what would be the freight routes into the area to support existing businesses so that they would make sure that they would design the radi at those intersections with Alpine Avenue in such a way that it didn't interfere with the large truck movements. But you'll notice it is identified for some and not all local streets that are coming off of Lafayette Avenue into Alpine Avenue. And then they will start going through a discussion of design. itself especially for the festival district. So all the designs had some sort of meandering chicane we call it a chicane but um it's a meandering um uh access way for the vehicle and that's what prevents slowing down the vehicle so it can be this primary pedestrian environment. And so

there were two concepts that it looks like it came down to the fields concept and the park concept for that festival district. and the fields was the one that people felt was had the most functional organization and and what the community went through went with in the end. And so from that they developed a typical section for the road. So you'll notice the the vehicular environment is only 20 ft wide. Um and so it's it's it's a much narrower environment for vehicles than um than what we're used to probably even though it's still a 60-oot rideway. So, it's the opposite of downtown where you have 20 feet dedicated to sidewalks and 40 feet to the roaded. Um, and then this they started populating how this design would look relative to the different buildings there and started communicating out the door how they were going to do that. And as you know, it ended up with a unique unique design pallet uh to reflect that industrial area um but also that sort of craftsman heritage that they were trying to promote. So there there has been decisions already made as to what the furnishings and the streetscape would look like. And then this was all put together into what's called a final design methodology me memorandum. So there's like this 45page document which describes what the design for Alpine Avenue should be and that's what governed the phase one. Uh we also did local street designs too back in uh 2020 2019 when we started having some of that development occur uh after Alpine Avenue was built in 2018 and the local streets were built the development was building the local streets. So 9inth Avenue is a great example of that. So we needed to have a design. So uh we went through a process of looking at that design memorandum for

Alpine Avenue and brought some of those elements over into the local streets but not all of them. Uh so that it still mimicked the same look, but it didn't have it was more um reflective of need for parking on the side streets. Um there you don't have the large core 10 planters there and things of that nature. The reason why phase two is important now is and the plan calls this out. It walks us through all these processes. It identified a development program that it felt was going to happen in the northeast gateway district that was based on this sort of crafts craftsmanship businesses. So flexible open space which you see at the Mac Market. Uh woodworking and metals. There's a couple of craftsmen down there right now with that. Specialty craft foods and winery and breweries. And then it also talked about the need for highdensity housing. So town houses, row houses, woodframe condos, and mixed use and mid-rise apartments. We haven't seen the housing materialize as much, but as you know, we're working on the Northwest Rubber Site, which will have the mid-rise apartments and housing. So the short term uh had a goal of the first five years of 50 multifamily units and um a combination of commercial square footage which we've achieved the commercial not the 50 multifamily units and then the long term the next five years is meant to be when you start implementing the rest of the projects there uh is when you get to 220 multifamily units and more commercial space. So the Northwest rubber site that we're talking about right now is 171 units. Uh so it's pushing us into that long-term program anyways where we need to start doing Alpine Avenue to serve that site and we are getting more commercial square footage in that area as well. So that's where Murak was like we need to start talking about the

design of the future district this this next phase two. Um these are some examples of the pictures. This is back from when uh in 2015ish when they were first putting these designs together, but it looks very similar to that today in the second phase of what we're trying to come in and improve. So very similar to the first phase except this is now a gravel street. Um so phase two uh the discussion has been what should the design be? We have a baseline design. uh there's discussion it needs to mimic what exists in phase one, but does it need to really be a mirror of it or is there another way to uh look at that design to serve that area of the district and so having that discussion? Um also the need to do public engagement. Mirac felt it was really important to get uh the property owners that are impacted in that district by the street improvement project involved in the design discussion. And so they their recommendation is to do that and put together a project advisory committee. Um and the first design discussion would be what what carries forward into that future district in terms of design elements. So we have that memorandum with all the streetscape furnishings and the different design constructs. What do we want to bring forward and then do the construction documents and get it constructed. Um, we've estimated that it will be about $450,000 to get through the design process to the 100% construction documents with a full survey done as well so that we can move right into construction. The other thing that Murak did also want to remind you as the urban renewal board that as we're thinking about Alpine Avenue phase 2, there's still work that was left undone uh for the festival portion of the street uh in terms of having above ground utility hookups. Uh so electrical

support and water hookups and water infrastructure for flowers and the bed plants and things of that nature. We did um when we hosted our first event on Alpine Avenue when we first opened it up and identified where all the deficiencies were in that regard and actually came up with a plan to um to retroactively come in and uh put that design on the ground. We elected not to move forward at that time with it. Uh but and because there was some we were early in the district in terms of the tax increment funding, there was concerns about the cost. But Mirk's recommendation is as you work forward to phase two, this really needs to be resolved as well. And so with that, I'm happy to answer any questions. It's more than just your annual financial report, but it's an opportunity to share with you what they're working on and thinking about for next year.

Who wants to start? Councelor Chennowith. Sure, I'll start. Um, couple of questions. First off, um, thank you for the report and thank you for the information you've presented in here. Is this the time for us to be weighing in on what we would like to see the priorities be ourselves um within this list that has been provided to us? Yeah, certainly.

So, um I I'm I'm a little concerned about continuing to build out infrastructure when we have real serious existing infrastructure problems occurring within the district. It seems like the funds that we um have available to us to be should be used to as much as we can facilitate the the repair and the uh movement of fixing the infrastructure problems we currently are dealing with. Um specifically our our downtown core. Um, we we know we're looking at anywhere between 18 to 31 million depending on what project list you look at of infrastructure needs that are needed down in the existing downtown core. Um, it I I I would like to encourage us to consider minimizing what we do with the Alpine district and instead repurposing as much of the money as we can to rightsizing the project on the downtown core um and using the funds as much as we can to get that project off the ground and moving.

Yeah. So, there's there's a couple of uh steps that you would need to take to do that. So, remember I started by saying this is the plan. And these are the projects and this is how many funds you can spend on each project. And and so the third street streetscape project is above ground streetscape furnishings. It's not what the project is today. It's not a street improvement project. And the funds in the plan allocated to is 2.3 million based on 2013 which we think is a little over three million at this point. So if if the agency wanted to spend more money than what's allocated to it in the plan, the agency would have to go through what's called a major amendment to the plan to do so. And you would either have to increase the maximum indebtedness that's allowed in the plan or remove money from other projects in the plan to do so. Uh to be clear, I'm not arguing that we should look at the URRA to pay for the entire Third Street redevelopment, but what I am saying is that we should take as much money as we can from the URRA at this point and focus it on getting that area fixed.

Okay, I understand what you're saying. And we did sit down with the finance director, um Walt Gal, when he was still chair of Murrack and and these discussions were all taking place. Um, we did sit down with the finance director, looked at the cash flow and and remember I said urban renewal is meant to be bonded debt. It's not meant to be pay as you go. Um, so we wanted to see what the current cash flow would support in terms of future bonds. Uh, and looked at uh needs for Alpine Avenue and for Third Street to move forward in the near term. And there's enough cash flow in the system right now to support the bonds for both. And and and to be clear also, I'm not necessarily saying we shouldn't complete Alpine. I'm just saying scale it down. Um let's let's free up as much funds as we can to repurpose towards uh uh accelerating the process of getting the down downtown core underway.

Yeah, I get that. But I and I guess what I'm saying is you could do both fully right now based on the amount that's allocated in the plan to them for bonded debt. If you want to put more into the third street improvement project than what is allocated in the plan and allowed to be put in there, you would need to go through a major amendment process to the plan. So question Heather is um so if we do the four blocks that are left not to the scale of what we have as much of the festival but more pave nice do it nice but simpler. Mhm. Could the balance that's been designated to that just go towards finish the design plan for Third Street? Is that going to need to be

You can spend I'm going to say this again. You can spend up to the amount of dollars that's allocated in the plan to the Third Streetscape project. If you want to change the amount of dollars allocated to that project and what that project actually is, you need to go through a major amendment in the plan. So whether you're saving money with another project, it doesn't mean you can automatically put that on the Third Street project.

Yeah, I I I think I get what you're saying, but I what we're what I'm trying to advocate for is that we should do exactly that. We should put we should put forth a discussion point at Murak to consider putting forth an amendment. Um and that amendment should be minimizing minimizing is not the right word, but scaling back um what's happening on Alpine and increasing what we want to do with with Third Street. Okay. Okay. Councelor Alta, do you have a question?

Yes. Thank you. Um so the $1.5 million that came in through the state funding this year, how does how does that affect the uh the overall bottom line for the for the Murak fund and for this project? Thank you.

So the 1 and a.5 million was what we estimated to be the gap funding for the Alpine Avenue project based on something somewhat similar to what was done in the first half but not to the full bells and whistles as the first half. Um what we don't know for phase two and and I may um start deferring to Jeff because I'll get over my skis on this, but we don't we don't know what the survey on the ground looks like. We don't know what the constructibility looks like for those remaining four blocks. I think it's going to be more complicated in that regard than the first phase. And then also how um the improvements interact with the intersections of the local cross streets.

Thank you. Um just a followup, mayor. Okay. Uh so we got a million and a half as the gap funding and then the um uh remaining amount was estimated to be how much? about 3.3. So the total all-in in that project is 4.8 or does that include or not include the 450 we talked about for the design that includes that? Thank you. Any other counselor have a question? Scott, you're kind of looking like you might Cunningham.

It's it's not necessarily a question. I I I am taking note as to um everything that's been said on the DI so far and I would I would actually agree with it up to a point um that I think that we need to look at those remaining four blocks and not necessarily look to the past where we had the idea if we build it they will come and unfortunately they just didn't show up or at least in the rate that we'd hoped for. But at the same time, I understand that it's critical to get uh those floor blocks finished um to at least the caliber of every other street we have here in McMinnville so that when people are looking at redevelopment that it's looking at something that can be, you know, basically uh shovels in the ground and and something that works immediately. Um, but I certainly would be uh and I probably will be a lot more excited if we get uh the RB rubber uh plant uh moving along for the housing. So

yeah, and you just reminded me and I forgot to share this with you. I don't know how deep we go into this discussion, but um the Murak has been exploring uh over the years we have brought in property owners from the what I'm going to call the northern section of the district. It's on a fairly awkward compass, but um from that northern area of the district where there is less improvement value, right? So you have staging grounds up there, you have some warehousing uh to find out what would it take to stimulate redevelopment and because there aren't improved streets, the public improvements are more expensive than the redevelopment would be. And so that's we've heard from them that that's a significant deterrent for them moving forward with some sort of redevelopment project in that area. Um, I have a question just about the future budget for urban renewal. So, tonight we're going to be looking at the $850,000 and part of that is $97,000 that needs to come from the city for matching and I know it's kind of a mixed utility, but is have you is that in this budget? Have you planned for that?

Yeah. So, um, and Jeff's going to probably share more of this with you when we get to that agenda item, but we talk a lot about it being $850,000. It's $850 is what we got as the federal allocation. There's 200,000 in the budget for urban renewal for this um phase of the third street improvement project. Um, we've carried that in the budget. We had it this fiscal year as well. that was always intended to match the 850 in terms of providing both the city match and more to um come into the budget. And some of the some of the determination for that is based on again that project is just the streetscape project. So what's the proportional what's the proportional funding required from the urban renewal agency for the overall project moving forward that passes the sniff test of what the plan is planning for. So that's that's where the 200,000 allocation came from.

Okay, great. Thank you. Any other questions? I had a question. Yeah, Takulski. Yeah, thank you. U He Heather doesn't talk a lot about public parking specifically. It talks about public parking a number of times, but it doesn't have any details in there. Um in the plan itself. Yeah. And I or in Alpine Avenue? No, the in the urban renewal plan, but I understand it's early for that. So the uh the concern is that there's already limited parking in that area and I know we're talking about acquiring land for that, but are there any further details about that?

No. And I've always said that I think it's kind of interesting. Uh I've worked on uh developing a couple of urban renewal plans in different downtown areas. And um it's always been curious to me that there's so little money of the $30 million uh allocated to public parking for this particular plan uh given um you know the buildout that's that it's coming into. So um the the project itself does talk about adding inventory into it. So we've been looking at it from that perspective, but how much inventory can you add with a million dollars? Not a lot to be frank. So that's where we've had the discussion that if we um move forward with the downtown master planning process, a big part of that will be parking. How can we how where where does it make sense to bring more public parking online? How much is it going to cost? Do we need to amend the urban renewal plan to put more dollars into public parking to support that? Do we need a fee in lie of parking for the area of our downtown that doesn't require parking? And all those have been discussions with Mirac relative to that downtown master planning process.

Okay. The reason I ask is because a million dollars in 2013 is not it's not a lot of parking stalls. No, I don't understand how that's even sufficient. So I in after our last downtown analysis, we ended up with more handicap spaces than anything. And it seems like it reduced the parking opportunities in a lot of areas. And obviously that's federally mandated, but I'm just concerned about parking in general. Yeah. And I I can share with you the Murak members are very concerned about that too and have had those discussions and that million dollars is for, you know, acquisition of property plus buildout. So yeah, you're not going to get much for that. Yeah.

Mayor, may I ask a few others? Um the I guess there is there any kind of a monetary value that's attached to the uh impact of the taxing district for like fire and law enforcement and county um being that this is going to be still part of the urban renewal area but has the talk has it been considered how much is being deferred from those areas that they won't receive the foregone revenue.

Yeah. So when the when and again I wasn't here when this was done here but um when you put together an urban renewal plan you have those discussions with the overlapping taxing district. So I'm assuming when the plan was put together and the $30 million was decided upon that the city had discussions with the impacted overlapping taxing districts. At that time fire was in the city police is in the city. So, those two were encumbered under the city of McMinnville, but there's there I'm assuming there were discussions with the county and the other overlapping taxing districts because you actually have to by law gets concurrence from overlapping taxing districts to move an urban renewal plan forward. um urban overlapping taxing districts can come out against the city voting on an urban renewal plan and if the I forget what the law is now because it changes all the time but it allows the overlapping taxing districts to participate in the dialogue and have um impact on the final decision. Some some cities will move forward with um a shared revenue uh model, meaning that and this is built into the law when you get to a certain size for an urban renewal district, but you can decide once I've and that's not in this plan. So that this this was not elected for McMinnville. But once we once we gotten to a point where we've collected this much money. So let's pretend it's 20 of the 30 million. We're now going to start um shaving off and sending to the overlapping taxing districts the proportionality of that every year. It takes it means it's going to take longer for the district to get the projects done, but revenues going to the overlapping taxing districts during that time frame. So those are all things that agencies and cities can talk about with overlapping taxing districts. And if you do go through a major amen a major amendment process, we'll have this discussion with overlapping taxing districts. We have to have if we're going to do an amendment to the plan, it's a major amendment. The major

amendment means we're talking to the overlapping taxing districts and going through that process. Um, and if you do it for even just the third street project or you do it for more parking funds, whatever it is, th those discussions will need to take place. Okay. And director Heather, excuse me, Director Richards answered that question that I had, but I have one further question. Okay. One more.

Yeah. Thank you. U, on page 13 of your presentation, it talks about um the transportation projects. Uh, it shows what has already been paid. And if you could bring that up again, it might be helpful. But there's no prioritization on the remaining projects that weren't taken care of by transportation. There's actually a planned time frame, but a time frame is a a a goal, but it's not a priorit prioritization of projects and funding as far as I can see. Um, so the time frame is important because you have to create findings why you're not following that. But oh, I thought I had it on the Excuse me. I'll go back to where you were.

Um, but what's interesting is if you do do a so following the Chennowith uh councelor Chennowith board member Chennowith discussion Alex sorry for all those that this is impacting. Yeah, that one.

There we go. Um if if we go through a major amendment and say, "Hey, we have savings because these projects were paid for by the transportation bond. So we haven't invested in these projects. We didn't spend 1.2 million on Fifth Street. Um we didn't spend 700,000 on downtown signals, right? So that's in the maximum indebtedness of 30 million, but we didn't use it. So we go through a major amendment process and we say, you know what, we have more need on Third Street." um and we didn't use those funds, so we're not going to increase the maximum in dentist, but we want to reallocate it to the third street project. That's kind of those are some of the discussions you could have with the overlapping taxing districts to say it's not going to impact you more than it is today, but we'll be able to get more of this done, whatever this is.

Thank you. And that and that answers the question of if can those dollars be used elsewhere? It sounds like yes, but we have to have that conversation with the partners. Yeah. And you have to you have to amend the plan. So amending the plan would mean removing those projects from it and reallocating the dollars. Councelor Chennowith. Thank you. Nope. Can you remind me does the URRA autorenew or is it something that comes to a vote of the council at at its conclusion when so it doesn't autore renew after you've met your $30 million of maximum indebtedness that it it sunsets that's how we describe that

but a lot of Uras end up continuing they will continue by action so they continue by major amendments so there are there are some communities who feel that there's still need in that area uh for some projects that weren't conceived previously i.e. maybe parking and so they want to increase the maximum indebtedness and so they'll go through a major amendment to increase it. There are agencies when we were in Redmond we had two districts and we sunsetted one of them early because we felt that the projects we had invested in had done its job. It was a revitalized area. We wanted to get out of it and let the taxes go to the overlapping taxing districts. Okay. Thank you.

But that's that's action of city council and the agency. Any other questions? Council, you don't. Okay. Anything else? Okay. So, now we just had the resolution to address. So we have resolution consider resolution number 2026-02 a resolution of the McBimble Urban Renewal Board approving the annual financial report for the McBimble Urban Renewal Agency for fiscal year ending June 30th 2025 per Oregon Revised Statute 457.46. Do I have a motion? So moved.

So I have a motion from um sorry councelor Gary. Second. Commissioner and a second from Councelor Cunningham. Any questions? Yeah. May May I ask a question? Yes. Oh, this probably rhetorical, but just approving this doesn't mean that we can no longer modify. Correct. Right. We're just accepting the budget. If we at some point want to come back to modify, we can do that. Thank you. I just want to be clear. Thank you. Well, correct. I punt to the finance director because these these are audited numbers. So, I don't know if you would modify the fiscal year end June 30, 2025 numbers. Yeah, that's

Oh, okay. We're we're just approving at this point the financial report itself. The rest of the discussion is outside of the parameters of the resolution. Yeah. So, so the budget for next year you adopt through your budget process. Any of those other discussions would be outside of this too. Thank you. That's it. Okay. Any other questions? Councelor Tokolski. Hi. Councelor Chennowith. Hi. Councelor Giri. I. Councelor Cunningham. I. Councelor President Peralta. Yes.

Uh, resolution 20262 passes unanimously. Perfect. I will now adjourn the urban renewal meeting at 6:50 and we will be back at 7 o'clock. What?

Okay, it's 7 o'clock and I'd like to now call the city council meeting to order and request Claudia, our city recorder, take a roll call. Councelor Tukulski, present. Councelor Chennowith, as far as I can tell, I'm here. Councelor Giri, good evening. Councelor Cunningham here. Council President Peralta here. Mayor Morris here.

If you're able to stand, please stand for the pledgece to the flag of United States of America to the republic for it stands nation. It's time for public comments. Any interested audience members are invited to provide comments and any comment provided that requires some type of follow-up will be assigned to a staff member. Anyone may speak on any topic other than a matter in litigation, a land use decision that is or will be in front of the city council or a matter scheduled for public hearing at some future date. Comments will be limited to four minutes per person for a total of 32 minutes. If you are on Zoom and wish to speak, please use the raise your hand feature or chat feature and send a chat to the city recorder team. You will need to provide your contact information prior to being promoted to speak. Once your turn is up, we will announce your name and unmute your mic. Please announce your name and the city you live in for the record. We will start with anyone that has signed up prior. Claudia, do we have anybody?

Uh, yes. And before we start, I do want to state for the record that we received two written um emails that I have forwarded to city council. One from Rachel Kentrell Weaver and the second one from Adam Stone. Those will be added to the amended packet posted tomorrow. Uh first we have Amanda Pawanka. Okay. Good evening, Amanda.

You are feel so honored. Wow. Hello, my name is Amanda Pawanka and I live here in McMinnville. And my little speech I wrote is more for the record and for our country um more so than our town. So just sit back, relax, buckle up, and please enjoy the show. Um, we as a people are not talking about the Epstein files enough. We are not talking about the Epstein files enough. I seem to have everyone's attention except There you go. Uh, the files matter to everyone on Earth. The files matter to men and women right now in Iran fighting and giving their lives. Our military men and women are giving their lives right now for a cover up. The crimes connected to the Epstein files are not just a scandal. They represent a profound failure of power and accountability. At the center of this story are young women, girls, and boys who are exploited, trafficked, and abused by people with immense wealth and influence. For years, many of them tried to speak out. Many try to tell their stories, and they're ignored or intimidated in the silence. For many victims of sexual exploitation, coming forward is one of the hardest things they will ever do in their entire life. The Epstein case reveals how systems can fail when power shields wrongdoing. It shows how wealth and influence can create barriers. This is why accountability is so crucial. Accountability means that no one, no matter how wealthy, famous, or politically connected you are, no one is above the law. A healthy society depends on the idea that the rules apply equally to everyone. When that principle breaks down, justice itself begins to erode.

When powerful people are not held accountable, the consequences do not stay at the top. They ripple outward. If the public sees that wealth or status can protect someone from consequences, it sends a dangerous message that some people live under a different set of rules. Case in point, the owner of Pinch Restaurant thought he could consume child porn and it wouldn't hurt anyone. Completely disregarding the children in that situation and the consequences of his actions. We as a community were disgusted, saddened, and rightfully brought to a righteous rage. And I am glad personally that justice is being served to him. But the message that powerful people can get away with actual murder erodess trust in our institutions. It discourages victims from speaking out. It tells everyday people that justice may not apply equally to them. And when accountability disappears at the highest levels, it can create a trickle down culture of silence and abuse. If leaders, elites, or influential figures are allowed to act without consequence, others may feel emboldened to exploit their own power in workplaces, schools, churches, and communities. Accountability is also about prevention. When systems hold power, people responsible for their actions, it sends a clear signal that abuse will not be tolerated. Listening to survivors is part of that accountability. And believing women, believing victims does not mean abandoning fairness or due process. It means starting from a place of respect instead of suspicion. It means recognizing that false reports are rare while unreported abuse is tragically common. When someone finds the courage to say, "This happened to me." Our first response should not be doubt. Our first response should be compassion and a commitment to seek truth. Justice is not only about justice is not only about prosecuting

the guilty. It's also about changing the culture that allowed harm to persist. We owe it to the survivors to keep asking hard questions. We owe it to them to demand transparencing and accountability from institutions and powerful individuals. And we owe it to them to build a world where victims are heard the first time they speak. It's essential to protecting justice for everyone. Thank you. Thank you, Amanda. That's everyone that signed up.

Okay, we're going to move on to the consent agenda. Does any council request to have any item removed from the consent agenda and heard at its regular place on an agenda? Yes. I'd like to ask that we remove E from the consent agenda. Okay. So, E has been removed. Um, anything else? Do I have a motion to con to accept the balance of the consent agenda minus resolution number 2026-15? So moved. Second. I have a motion from councelor Keningham, a second from councelor Tokowski. Any further questions? Aia. Councelor Tolski. I. Councelor Chennowith.

I. Councelor Giri. Hi. Councelor Cunningham. I. Council President Peralta. Yes. The consent agenda as amended has passed unanimously.

Okay. So, now we have we're going to consider resolution number 2026-15, a resolution authorizing the city manager to execute an intergovernmental agreement between the city and the Oregon Department of Transportation for the Third Street Improvement Project. Councelor Chennowith. First, I'd like to say thank you, mayor, for the questions that you posed that we were able to get answers to. Um, they were very helpful in in uh helping me figure out what I wanted to do here. But I want to be really clear on one point. If we vote yes on this, how hard is it going to be if we decide to go with state and local funds instead of federal funds down the road? we we run into whatever for whatever the circumstances um we we we decide we don't want to pursue federal funds. What what is this going to do to us?

So he's directing the question to public works director Goff Huncker. Yes. Um that's okay.

And uh our city engineer James Aloftton also uh looked into this a little bit more yesterday as well and he can come up and answer questions if needed. Um but essentially if we start spending federal dollars it federalizes the project the entire project and we'll have to spend uh we'll have to meet federal requirements for that money which includes some additional administration. It'll include things like buy American steel and iron during construction things like that. If we choose to move forward and these are the only federal dollars that we ever spend on the project and we decided it costs the city less to then defederalize, we would have to pay back this these dollars to then defederalize the project. It's not something that happens very often. Um, and James can probably speak to it better than I can, but that's my understanding. If we chose that we're going to defederalize the project, the only way to not meet the federal requirements moving forward would be to pay back the amount that we have spent. So if you decide and you've only spent 50,000 of the 850, then you would have to pay back that 50,000 and then just not accept the rest.

Does that sound right, James? Okay. And then correlary to that, how how fast are we anticipating spendown of this? What's And we also have our two co- project managers here today. So um Jeff, do you recall the time frame for spendown right now? It hasn't been firmly established because ODOT would be managing the project and they haven't set the full schedule, but we had an estimate either way. So, yeah, go ahead. I'm sorry. I should have read it with more detailed. I apologize.

Or Yeah, that's right. Like, did I say that name right? Uh Jeff Gooden, project manager. Um, so it is in the staff report. The the actual date escapes me at the moment. Um uh I believe we have the um design a schedule of September of 27. Um yeah, the schedule in the staff report says under contract works begins September of 26 and then funds to be uh obligated by September of 27 and then fully spent by September of 20 okay uh 32.

So it's going to take a lot of Yeah, I do apologize. So I we didn't have a schedule for the uh design set out yet. So, you know, in light of my previous conversation in which I was talking about looking at at ways to reallocate funds from the URRA, um that that's where I'm thinking here. And I I I don't mind potentially going forward if the gamble is less than the full 850. And it sounds like since we're looking at a long-term potential payown of this that that gamble is out there a ways. Um so um thank you for that. I appreciate it.

Yeah, there's ways u the has ways for the council to get back out of the IG and we will if there's certain touch points that uh you want us to bring to you to discuss it, we can do those um and bring back any information that you might need to help you make decisions along the way. Jeeoff, is there an opportunity for the city to ask ODAT to draw down the city match before it draws down the federal funds?

That's a good question. We probably have to ask ODOT. Um, we haven't given them our match yet that we have to pay it out in full once the IGA is signed, but potentially um I'd have to ask uh or Jeff and Jody would have to ask Valerie, but we could potentially do that. It's a good idea.

I just want to clarify a question that I did ask and you answered it, but I just want to make sure I understand it. So, we only have so much money. We have to finish the project and the project is going to be higher going with these funds that if we choose to do it in phases but or shorten it a tad that's okay if we start with the way it looks right now going from Adams to Johnson and we choose to in order to be able to afford it shorten it can we do that later or do we have to specify now an add

yes be Because essentially you would then say you're going to be phasing the project and that first phase would be whatever that shorter section is that is the affordability and then you would just demonstrate you're continuing to look for funding for the other phases. Okay. And that can go on for a very long time. Okay. So good. All right. Um that and you will have to eventually all infrastructure has to be replaced someday. So you would be looking for funds to replace that over time. So if the project was shrunk, you would just then start phasing it and then you would go after grants or local dollars or whatever it is for that particular phase. Yes.

Great. Thank you, Councelor Cunningham. Yeah, I know um some of this is to make us ready to to be able to go out for the build grants, correct? Uh yes. to to go after a build grant, you want to be much further along in design than we are. Shovel ready is always something that scores well in those projects. And you can also have better applications when you know more information. And what um if we were to be going after a build grant, what would be the typical grant that we'd be trying to to get for a project of this size? Million.

Yeah, the maximum available build grant for construction is 25 million. Um, so we're actually in a pretty good place with the size of our project because if we had a hundred million dollar project, you could still only get 25 million. So having a project that's around that ballpark is helpful. Um, if we didn't need that much money, we could go for a smaller grant, but we would likely go for the full 25. Okay. And when's the next cycle for that?

Uh, currently build grant cycles are annual. U, they've been around for quite a while. while they were tiger grants, raise grants, build grants. And so they're uh annual now the the NOFOs, the notice of funding opportunities comes out in roughly November every year. The um depending on the administration, the um how the projects are scored is usually slightly different. There was a pretty big change, not a huge change, but there was a change going from the Biden to the Trump administration in the um in some of the scoring, but it was usually the same categories, just more priorities set on certain things. Okay. Thank you, Councelor Peralta.

Thank you, Mayor. Uh I just wanted to acknowledge that uh tonight we've discussed um 1.5 million in funds from state partners and another this $850,000 from federal partners. So, I just wanted to acknowledge both um Representative Elmer, Senator Star, and then on this uh Congresswoman Selenus, as well as the mayor and the professional staff that enabled us to get the these funds to fill some gaps in our in our planning. Um I just wanted to make sure that that was on the record for the public. Thank you.

Great. I have one more question. So, you sent me back an estimate of 28 million. Was that before it was federalized? Um I'm gonna ask Jeff to answer that question. Yeah. So that that estimate there is a range that the um consultant provided 28 to 31 design. So 28 to 31 million um and that to that is not a number that included federalizing the project. Do you have an idea on a percentage that you think that would increase it? I would have I guess that yeah James Loftton do you just keep asking people

it was discussed with the consultant it was anticipated that there's a likelihood we would need to federalize this project and so there was I think it was taken into account for some of the construction dollars. What wasn't necessarily, I think, fully understood is the costs associated with engineering and management of it and then some of the other federalized elements which would add construction cost because that will be dictated by um the the federal process and the consultant we had was it was not a federalized project at the time. So, it's a little out of their scope to really dive into it. That being said, it it was also contemplated. what we anticipate happening first, the first thing would be ODOT would develop than an internal estimate. So early in this process, we'll get a much better idea of what to expect for a federalized project costs and we'd anticipated we'd bring that back to you and and keep you in the loop.

Okay. Um but they can't work on that till they have a signed IGA. So kind of a chicken in the scenario. Great. Thank you and thank you for answering all the questions I sent to you yesterday. It helped for tonight and thanks for coming up. I think we're done. Did you have a question? Yeah. May I ask councelor China with a question. Is that okay? Ask me and I'll ask him. No. Yeah. Well, yeah. I'm trying I'm trying to abide by the rules here. Um

it I was curious what councelor Chennowith's u say trepidation is with the uh acceptance of federal funds specifically if he could articulate that. Chris or councelor Chennowith he's wondering what your concern is by taking federal funds.

I don't know that I could articulate this shortly but um my my biggest concern is locking us multiple the increase in cost may not be worth the 850,000 we're getting. That's number one. Um because it may end up costing us more than $850,000 in increased cost to do this. Um we're banking on getting if by taking the federal funds it's putting us into banking on on getting federal grant money. Um that may or may not materialize. That's concerning to me. Um when we have a pot that we're looking at at the URRA that's available and the state we have had great partners at the state. So locking us into a federal program um is a little concerning to me. Um, so those those would be the two big ones. There's some little ones as well, but those are the two big ones. One thing I will say, I don't know how accurate this is, but a report published by the Government Accountability Office examining GSA construction projects um from 2014 to 2018 noticed that federally funded projects trended 15 to 25% higher. I would say that's accurate with my experience in the industry and uh James is saying yes in my ear as well and he's done more federal projects than I have.

So So if I could just say on the record I would like to see if we could phase this and then also if we could use our you know first our state dollars before we use any federal dollars that would be preferred. Uh yeah, we'll explore that with uh we can explore that with our ODOT partners in this and we will also make sure to uh find touch points to bring information to the city manager who can share with the council on updates for cost estimates and next steps and what phasing would look like. Mayor, I have one more question if that's okay.

Yes. Um Jeeoff, is it possible for the u I I guess your department to bring it to the council before federal dollars would be spent so that we had essentially a trigger to say yes or no. Um if ODOT says we can go the path of spending our dollars first. Um, yeah, it's just a request of the council to city manager that we do that and we can bring that information out and see why we couldn't. That is now your request to the city manager. Okay.

And I appreciate whoever's effort it was to work with ODOT to try to do the city standards on the city rideaways instead of ODOT standards. It was definitely a team effort. Yeah. So, thank you for doing that. That's a biggie, I'm sure, with a cost. So, all right. Any other questions from the council? Do I have a motion or not? And the motion would be, let me tell you, consider resolution 202615, a resolution authorizing the city manager to execute an intergovernmental agreement between the city and the Oregon Department of Transportation for the third street improvement project. So moved. Second.

Have a motion from councelor Giri, a second from councelor Cunningham. Any additional comments? Claudia. Councelor Tokolski. I. Councelor Chennowith. I. Councelor Giri. I. Councelor Cunningham. I. Council President Peralta. Yes. Uh, resolution number 2026-15 passes by a vote of five to zero.

Thank you, Jeeoff, for coming up. Now we're going to move on to ordinances. U consider the first reading with a possible second reading of ordinance number 5173. Does any counselor need to declare an actual or potential conflict of interest or recuse themselves regarding the ordinance? And I believe this ordinance is in regard to planning. We're going to call nothing. We're going to call on mayor or excuse me, city attorney David Lightenberg. The mayor is going to call on you.

Thank you, mayor. This is the first reading of ordinance number 5173, an ordinance approving a comprehensive plan amendment docket CPA1-25 and zone map amendment docket ZC2-25 for approximately 26.07 07 acres located at 2325 Northeast 3M Lane, 160 Northeast Atlantic Street, 2305, 22245, 2225, 2215, and 2205 Northeast Cumulus Avenue and tax lot 422C 01102.

Perfect. And it says that I'm gonna call on Taylor, but am I going to call on you, Heather, instead?

Yes, mayor and counselors. I am pinch hitting for Taylor tonight, our senior planner. So, um, so ordinance number 5173, what it does is it approves a comprehensive plan map amendment. It approves a zone map amendment, and then it adopts the decision document, findings of fact, and conclusionary findings for this land use application. It comes to you as a recommendation from the planning commission after they hosted a public hearing on February 19th, 2026. Um, just to remind you, there is no proposed development plan at this time. So, we are just talking about the zone change and the the map changing the colors on the map two maps, the comprehensive plan map and the zone map. So, this is our comprehensive plan map. This uh this proper subject site is in what we call our three mile lane area. Uh it's comprised of eight parcels of approximately 26 acres. Many of you are familiar with it in terms of um the Baker concrete plant is there as well as se several other businesses. It's uh got frontage on Cumulus Avenue which is one of our frontage roads for Highway 18. The comprehensive plan proposal is to change the comprehensive plan designation from a combination of industrial, residential, commercial, and flood plane to residential, commercial, and flood plane. So remove the industrial comp comprehensive plan designation. The zone change per proposal is to uh change the zoning from an M2, so that's our industrial zone, C3 commercial zone, R4, which is a uh medium to high density residential zone, and R1, which is a low density residential zone, and FP the flood plane to the C3 commercial zone.

R4 a medium to high density zone and flood plane. This is actually a project that is contemplated and uh directed in the three-mile lane area plan which was adopted by city council as an amend as a supplemental document to our comprehensive plan. So our comprehensive plan directs us into um this particular proposal. The threemile lane area plan uh just to remind you was adopted by ordinance number 5126 was adopted in 2022 um as a supplemental document to the McMinnville comprehensive plan. That's important because we create findings based on what the comprehensive plan tells us uh to do with the land use program in McMinnville. Uh it serves as a guiding document for land use and public facilities in this area. And the land use concept uh in the three-mile lane area plan uh contemplates having a commercial focus on the southern portion. So the frontage there on Cumulus Avenue and then uh locating uh mixeduse development and needed housing on the rest of the site. So a a mixeduse development project and this shows uh what the three-mile lane area plan contemplated for the site which is very similar if you look at it to the proposed comp plan map designation and zone map designation. So we the criteria we use for a comprehensive plan map amendment and zoning map amendment is found in the McMinnville municipal code 17.74.02. It's a three-part test. One test is is it consistent with the goals and policies of the comp plan. One test is is uh is it orderly in timing? Does it consider the pattern of development in the area surrounding land uses and any changes which may have occurred in the neighborhood to warrant this proposed

amendment? And the third test is utilities and services can be efficiently provided to serve the proposed uses or other potential uses in the proposed zoning district. So when we're looking at a map amendment, we're looking at the aggregate uh use of that zone and not a particular development plan itself when we're looking at services and utilities. And that's important to remember because I'll walk you through some of the conditions of approval relative to that. So for that first test of is it consistent with the goals and policies of the comprehensive plan you have the decision document in front of you but we went through all the chapters for that and uh determined it did with some conditions of approval. So there's five conditions of approval for this land use decision in front of you. Or the second test um where it says it needs to be orderly and timely and consider the pattern of development in the area surrounding land uses and any changes which may have occurred in the neighborhood or community to warrant the proposed amendment. There's actually a caveat in our development code that says when the proposed amendment concerns needed housing as defined in the McMinnville comprehensive plan and state statute, criterion B shall not apply to the reasonzoning of land designated for residential use on the plan map. So essentially what that's saying is if you're going from a lower density zone to a higher density zone and it's for needed housing, this criterion doesn't apply. it doesn't have to meet this criteria. In addition to that, it says that the housing policies of the comp plan shall be given added emphasis. Uh and the other policies contained in the plan should not be used to one exclude needed housing, two unnecessarily decrease densities or three allow special conditions to be attached which would have the effect of discouraging needed housing through unreasonable cost or delay. So it tells us how to move

forward if it's a housing project. So uh the city concurred and the planning commission concurred that criterion B is satisfied because this is a this is a housing project. So um it's exempted from criterion B as needed housing. So for criterion C, uh it looks at are the utilities and services can they be efficiently provided to serve the proposed uses or other potential uses in the proposed zoning district. And so the planning commission recommendation to you is that it is the finding is that it that this criterion is satisfied with conditions one through four. So when we look at a comp plan map uh amendment and a zone map amendment we there are regulatory rules as to how we look at that. So for comp plan map amendment that's going from residential to commercial or industrial to residential. We have assumptions of how that land will use services for transportation like how many trips it's going to attract u for our wastewater facilities for our water facilities etc. there's assump something associated with that comp plan designation and we just apply it per acre. The same is true for a zone map amendment. So we have assumptions for our different zones and how much they're going to put impact on those facilities and we apply that based on the proposal received per acre. So it's not looking at this many trips for this many housing units. It's looking at what's the assumption for a residential acre of land zoned R4. So um there were no concerns from McMinnville water and light relative to water and power. In terms of the wastewater uh facility, it's adequate per the 2008 master plan. So our 2008 master plan has assumptions for what industrial land would use versus what

residential land would use. And based on comparing those two assumptions uh in our 2008 master plan assumes that industrial land's going to use more uh wastewater capacity than residential land. We are currently in an update of our wastewater master plan. Those assumptions are changing but we can't use the update that hasn't been adopted as part of our findings for this criteria. So you'll see that the condition of approval says for this particular milestone the the uh map um amendments um it meets this criteria but we do we are requiring as a condition of approval that when they're ready to develop the site that they will do another analysis to see if it um the services can support the development and if they can't what improvements need to happen to ensure that we have the capacity to support the development. So there's a second checkpoint down the road um when development comes in and presumably by then we've adopted our new plan. Um for storm water it must meet the city standards at the development stage. So again that development's triggering that. And then for transportation uh we did do a traffic impact analysis. So when you do a comp plan map um amendment you have to do what's called the transportation planning rule analysis TPR. You'll often hear that. and a traffic impact analysis that says what is this change do to the transportation facilities. So ODOT's looking at it as to how is it impacting their facilities. So since this is on a frontage road, how it's impacting the intersections and then uh the local municipality McMinnville is looking at it as to how it impacts the intersections locally. The analysis showed that the comp plan map designation amendment and the zone map amendment impacts um will impact by itself. So will create impact on where an improvement is needed at the Cumulus three-mile lane Nehemiah intersection and it recommends a um right turn lane

going westbound. So coming on to three mile lane from Cumulus and that's for this the the queue that sort of goes around that curve there. But it didn't it didn't recommend any other improvements. And I had there was some question at uh planning commission and there has been questions by city councilors um as to is it that what does this mean for three mile lane at that intersection in terms of traffic improvements and controls that are needed. That intersection is a problematic intersection. We're aware of it. ODOT's aware of it. There are improvements identified in our transportation system plan for it. this particular map amendment is not triggering that and making it worse. It's it's part of our overall system and we have an improvement and we need to um move forward with figuring out with when to build that improvement uh for that particular intersection but we can't apply it to this particular project if that makes sense. Heather, may may I

um councelor Cunningham page 211 referring to the mitigation that you're just now referring to. Um the way I read this, install westbound right turn lane on the eastern leg and a southbound left turn lane on the northern leg of the intersection. So, I'm I didn't I read that as the recommended mitigation does include a left turn lane. No. So, are you reading that under table nine? Table eight,

right? I guess it's above table nine. Right above table 9. Right above table nine. Um, oh, I think this was the original TIA and then it was amended. So, we did have discussion with with uh both ODOT and the um Lancaster Mobly I think is the the engineer that did this analysis. So what there's a difference between what the project is um creating and what the issues are for the for the conditions. Right. Okay.

And so the project is creating the need for the cumulus avenue improvement. It's not creating the need for the improvements at the intersection but the uh on three mile lane but those improvements are needed overall in the system. So just like you I think you see emails in there as well. I'm thinking we provide the emails with ODOT where ODOT came back and said we don't we can't require anything on three mile lane because the condition already exists. This this this project isn't creating it. Okay. Does that make sense? Yes. Yes. Councelor Peralta.

Uh thank you mayor. I just wanted to confirm we're we're talking about the um what where Cal Portland is currently leasing that that facility. used to be the Baker Rock facility. And just reading from the packet, thank you councelor Chennowith for pointing it out. The industrial activity is not ceasing currently just because of this zone change. It just means that any future um they can't expand operations and if if there were things that were incompatible with the zone that were hap would happen in the future, that would cause a problem for the the property owner. uh as long as they're trying to keep it in this current use.

Yeah. So the and thank you for bringing that up. So the property owner is very clear that the there isn't an eminent development on the near horizon. Um he's putting the foundational pieces in place. He was in discussion with us when we were doing the three mile lane area planning process and what was discovered from that in terms of what was thought of as the highest and best use for this property. He didn't come forward with this is the highest and best use for my property. that was discovered through the process and he supports it and so he's moving forward with sort of this foundational piece but yes his tenants are still on property he's working with the tenants there isn't there isn't a you know a near-term action taking place thank you just thank you for bringing that up

one followup if I may um I just want to you know kind of point out that um when that Baker Rock facility went in there uh there was far fewer residential housing in that area and uh in particular this is kind of the area where h near the area where Habitat for Humanity has done a bunch of their work and so I think long term this is a really great shift for the for that area and uh I would note that the proximity even though it's separated by a river from Jod Dancer Park is also very attractive in terms of expanding um residential housing. So appreciate the work that's gone into this and I'll be uh supportive Councelor Gary

just since the door on table 9 on that page 211 was open the question so I didn't I don't think I understood the answer this uh uh table 9 planning horizon conditions with mitigation which includes the PMP peak hour level of service delay and the VC ratios that's after development buildout happens those are the scores for the intersection or those are previous prior to current those are current numbers. Th that's the planning horizon which is to 2041 with full buildout of everything around it and the and how the how the facility is operating. And if you see

that it's failing, but it's already failing without this project being in play. And so that's the difference, right? Um, and that's why we're saying that it's not something when you require a an improvement. When you require a development project to pay for an improvement outside of their SDC, so this is an additional improvement, it has to be directly proportional to that project. They're making that impact that requires that improvement. And this can't because this is intersection is already problematic and is failing is is in our plan to improve. It's another it's in ODOT's uh it's in the three-mile lane area plan which ODOT also um I don't know if they adopted it but they acknowledge it. So the acknowledgement is there that this intersection needs improvements but this project isn't on the hook for paying for it. That's the difference.

Uh yes. So, what I heard you say was that this is current standards regardless of the development buildout proposed. That's what that's what we're those are the VC ratios we're currently hitting at that intersection in the planning horizon which goes to 2041. Understood. There should be another table in there that shows current standards. Well, that that's the current performance. Table nine is planning horizon conditions with mitigation. So that's the horizon. Then there should be an existing conditions table as well. It's table three. Thank you,

Councelor Cunningham. Uh yes. Um S touched on it. um with Cal Portland. I believe in the packet it says that they have additional um years that they can add on to their current lease, but it does not call out exactly how many years that is. Do we have that number or is it No. And and it's not a requirement of the application to have that number. All right. Any additional questions? Towolski.

Yeah, Director Richards. Uh, from my time on the planning commission, I I understand that we still don't have any R5 zoning in the city of McMinnville. Is there a reason that this wasn't selected for R5? Uh, I don't know. I don't know if the uh property owner considered R5 and chose not to select it. The R4 has more flexibility. So if you recall the R5 is all high density residential, so just apartments, right? Uh and I believe the interest is to um at least in the three-mile lane area plan discussions, the discussion was to have the high density there on the frontage of cumulus and then to migrate back to lower density as you get closer to the uh river. I

understand and that makes sense. The the challenge that I see is the R4 zoning isn't driving the density that we expect from R4 and therefore we're not uh using the land according to the zoning uh that we've assigned. And this seems like an opportunity where we could actually increase the h number of housing units in that area by making this an R5 instead of an R4 zone. Yeah, it would probably increase it considerably because the assumption for the R5 for traffic uh would be much higher because there's no there's no dilution, right? Right.

Of it. It could also trigger some transportation improvements that they're probably not prepared to pay for too, which was my next question if I may.

Yes. So holistically, the the city continues to u have these I'll call them infills of uh housing opportunity and that's great. It seems like every time we discuss these opportunities, the traffic impact analysis bumps the ceiling and never crosses the threshold. And it seems to me that the city continually finds these pockets of high density traffic, if you could say that. And holistically, our traffic is increasing significantly, but nothing ever triggers any kind of improvements. Is there ever going to be some kind of a plan that we could bring together holistically for the city to help ODOT say that we do have traffic challenges in certain areas? Yeah. So there's there's two different discussions underway, right? So one is um an overall system that feels congested is what I'm hearing. Um and that system discussion, it takes place with your master planning process, the transportation system plan where we identify as a system, we need these improvements in these areas to to meet whatever our goal is for that area. Right? Then when individual project and that's based on existing zoning and comp plan designations. So we'll do it based on that. Then when a project comes in and says I want to change the color on the map and go to something hot with with more trips let's say. Um we also have times when it comes in with less trips too. Um then then uh what's what is the what does that do to that overall system we just created? So we design a system. We don't we try not to overdesign a system because you also are collecting SDCs to pay for it. So you're not you don't want to overdesign and charge more for your system. Um and so when something comes in that could

trigger it and it's the system isn't planned to accommodate that then we identify what are the improvements that that project's directly related to and they have to pay for that. Now typically if it's a project like this which had a consultant on board and a team of uh you know a transportation engineer and others helping them. They're doing the analysis to understand where are the different thresholds and triggers and what is it going to do to the system. We don't do this analysis. We're not telling them that's what's happening. It's a third party. It's a neutral third party. So, I'm assuming if they, you know, say, "Hey, can you run this scenario?" and it comes back with, "You need to build whatever an interchange or something like that." Okay, that's not what we're going to apply for. We're going to apply for this.

Understand? So, you can, you know, playing that out a little bit further. So, they they have the right to submit whatever application they want to submit, and this is what they submitted. You can uh say, you know, we'd like to see all R5 zoning there. And so we'll change the Actually, no, we wouldn't be able to do that because it has industrial zoning. We'd have to pick a residential zone of some sort. I get it. I the only the only reason I have I've asked about the transportation is because uh we did the same thing on the LAR homes in Baker Creek area and on my way to work the other day. Uh the light was backed up all the way past the church. So yeah, it's not insignificant.

Our our east west connections are concerning. east west across the 99. Yeah. Uh so Second Street, I travel down Second Street to get to work and I just time it based on how many lights I'm sitting through at 8 o'clock. Right. So there there are definitely congestion points at different times of the day in McMinnow right now. Councelor Chennowith. Uh thank you mayor and and thank you councelor Tekkowski for kind of opening not done with my presentation. And so I might my city manager is over inter city manager is over here on my shoulder saying finish your presentation because it might answer the question.

That's fine. Let me answer one question for D councelor Tekowski. Um having walked the area um with a resident holding me by the ear um all the way through the process. I would say there was a pretty loud neighborhood opposition to highdensity residential. Yes. And we will get to that. You're right. Director Richards, please proceed. Thank you.

So the this is a summary of the conditions of approval um that are in there. So uh the sanitary sewer capacity right now it meets the master plan in terms of the assumptions in the master plan or adopted documents. So that's the finding. However, um we want to make sure there's capacity to support the development. So there is a condition of approval saying when development comes in they need to do another analysis. Uh the storm drainage plan, they must comply with the city storm drainage master plan and private maintenance agreements will be needed. The sanitary sewer collection plan, they must meet city standards and easements need to be recorded be before installation. These are fairly standard for those. the traffic improvements um is the one that's been identified for the map amendments, but again that traffic condition of approval requires a traffic impact analysis with development so that we can understand what that particular development is doing. And then there's a fifth one which is to meet the three mile lane area plan policies. So if you recall at the very end of our public hearing process which lasted about eight months there was a decision to take the policies that were suggested policies in the plan and make them um mandated policies. So there shall statements in front of all of them and they have to meet them. The policies are responding to how that area is going to meet the great neighborhood principles. So they would have to do it anyways. Um, but the condition of approval says you need to meet the great neighborhood principles as identified in the three mile lane area plan policies. Uh, then we also show uh does it meet statewide planning goals because we're doing a comprehensive plan amendment. So, does it meet statewide planning goals and and um staff went through that. The planning commission reviewed it and the um conclusion was that it does meet statewide planning goals with the conditions of approval as recommended. turn to public testimony. They had a neighborhood meeting which uh these

types of projects need to have prior to submitting application. Um and right after the neighborhood meeting, we got lots of phone calls. So I can always tell when those are taking place. And um yeah, and there was concern from neighbors in the in that area about the R4 designation and what it meant in terms of highdensity residential housing. When uh with the public hearing at the planning commission, we had three uh people testify. Kathleen McKini, Dan Jones, and Mike Full. And I guess I would say they had concerns about the density of housing. Uh they also had concerns about it in terms of transportation impact. So typically we'll hear concerns about how how many housing units are coming into the neighborhood and then what does that mean in terms of the impact to the transportation system. Um and uh in terms of housing density, this is an area, the three-mile lane area, where we did, as part of the area plan discussion decide that this could accommodate a lot of highdensity housing in McMinnville because of the way the system is set up there with the different transportation systems and we went through that analysis at that time. Um and so it was identified for highdensity housing in our adopted comp plan document. Then in terms of transportation impact, the concerns we heard were mostly about Northeast Atlantic Street, which is the street bordering the um Habitat for Humanity project. So, couple things there. Um they had concerns that that's a very narrow street and won't be able to accommodate the new uh traffic impact. It's a halfbuilt street, so only half of it's built for the Habitat project. Uh and so it would need to be a fully built street if this development moves forward for the frontage this development's on. And then Habitat uh for the Habitat for Humanity project is having problem with crowded on street parking. And so they're working uh with us right now to look at one of their lots and removing

it from housing and putting into off off-site parking to help alleviate that. Uh the other transportation concerns were the discussion that we just had which was that intersection at cumulus three mile lane and Nehemiah. So looking at the different criteria in which we review these which is the procedural requirements did they follow all the right procedures the McMinnville zoning ordinance that's that three-part test I told you about the comp plan and the statewide planning goals uh planning commission is recommending approval um and with the recommendation that it complies with all of those with the conditions as described. So your options when you get a quasi judicial uh land use application is to um we bring it to you as an ordinance with the planning commission recommendation. You can adopt that ordinance which approves the land use application as recommended by the planning commission. So the decision document reflects all the findings the planning commission had. You can decide to adopt the ordinance but and approve the land use application in an amended form. If you do so, we will need amended findings to reflect that that amended decision and uh what criteria that you feel it's not meeting and that's why you want to amend it. You can refuse to adopt the amendment through a vote to deny, but you need to provide findings for your denial. So, why you think it doesn't meet that criteria that I spelled out for you and you can call for a public hearing on the proposal. So, you can say, you know, we want to hear more from the community about this. We'd like to have a public hearing. We would then set that up, but that's subject to the notice requirements that we do for the planning commission level. So, it would be in about 30 days or so from now to do so. Um, so those are the options in front of you and I'm happy to answer any more questions you might have.

Any counselors have any more questions? Do I have a motion? Oh, I have a question. Oh, excuse me. Council Gary has a question. Uh this is the lot that is identified as a potential future pedestrian bridge across the South Yam Hill River connecting to the Jodancer Park Circle Navigable Ch. I think it depends on the topography of that area right behind this. You might know that better than I, but yes, that's there. There is the connectivity planned and the property owner developer has plans for the trail that goes through there in the back.

Okay. Yeah, just as long as that stays in the identified path system and opportunity for that uh pedestrian bridge to go across. I know it's a little lofty, but I just don't want that to get lost at least for easement potentials, especially if those trails are going to get developed. That that would be a natural connection path for uh especially for a lot of the concerns of kids getting into schools from alternate methods. That would that would be a great way. Yeah. And I think that the the prop if the property owner I don't know if they're gonna be the developer I'm assuming they are because they've talked like that saw the value of that as well. Any further you have a question council? I don't have a question just a comment.

Um in general on these kinds of of applications in the past I have been one that has advocated for public hearings. Um and I will continue that pattern today. Um, I think whenever you're having such major changes taking place to a neighborhood, giving the opportunity, even if nobody comes, is worthwhile. Um, so that would be where I would land. Um, I don't want to necessarily put forth a motion because I want to see where everybody else is sitting first. Any more comments on that, Councelor Tokowski?

I would support a a basically a public comment se section. Okay. Any other um Cunningham?

This is actually I'll I'll use I'll say both things. Um looking at table 4, the proposed zoning trip generation. I'd love for there to someday be a work session on how adding 200 units only gets us to 96 trips in the morning time cuz I just can't see over 50% of people who would live in workforce housing using either public transportation or or walking. Um so yeah well yeah I mean it is

we could definitely do that. We have in the past, it's been several years, um we had KDson Associates come in and do a work session with city council and the planning commission on how all these um methodologies are uh reviewed and analyzed.

Yeah. Uh but with that being said, I think that the packet was extraordinarily uh filled with uh lots of information specifically um calling out the transportation because I think that was over 200 pages of the packet itself. Um so I think we did a great job there. Um and uh I would say that if there's appetite for a public hearing, I'd be amanable to that. Councelor Gary. Uh, Director Richards, what's the rough cost and time of holding a public hearing for this? Yeah, thank you for that. I'm going to look it up because I actually have a fee schedule that shows and a rough assumption on staff

staff time.

Um, I would say for staff time it's probably to prop up a public hearing, it's probably about 30 hours of staff time to do so. U and then there's hard costs. We're noticing it. And I guess what I would say is um the other thing to consider about public hearings is usually uh you will find land use attorneys and uh planners recommend public hearings when you feel you need more information in the record like you don't you haven't gotten the information you need. So, for instance, if you want to vet the transportation analysis further, there's that opportunity to ask the applicant those questions. Um, but if you're hosting a public hearing just to generally hear the same thing, you're creating an expectation for the people who want to participate in the public hearing that there are different findings in front of them. If that makes sense.

It does. Um so just on on the public hearing I think I I I have sufficient information um to decide on this without having that I think uh lacking a large hole in this uh application and not seeing any uh threads of criteria to start working away at. Um I don't see a reason to not approve this. And then um uh the the main one I always also is transportation. And on this one, it seems to me our our our roads are already over capacity, and it would be more worthwhile to to to throw ourselves into the TSP effort update as well as uh funding the improvements in current and future TSPs.

Councelor Peralta, um I have a question. So, when this actually gets developed, the development itself will go through the planning process and very likely end up back at the council, won't it? depending on the type of development. So, if it's a plan development, it would just go to the planning commission. That's what's set up in the three mile lane area plan. Um, it would go to the planning commission in a public hearing process. They would make a decision and then that can be appealed to city council. Right. So, they So, sorry, may I continue?

So, it seems to me that really all we're approving here is the right of the property owner to move this into residential. there's no immediate plan to move it into residential. It's not changing the use for any significant, you know, it'll be a significant period of time before that use gets changed. So, I kind of agree with councelor Giri that a public hearing at this point is maybe a little bit of overkill just given that we have uh I mean for for myself anyway I feel like I have all the information that I need to make a decision tonight and I don't know that a public hearing is going to add more information for that decision particularly as director Richards has pointed out the main point of contention from my perspective is the transportation impact and that's not something that's going to be on the table for the hearing. ing. So I I question the need for it.

Any other comments or do I have an actual motion?

Heather, did you already enter into the record that Oh, no. Thank you, Claudia. Um, so I did leave with you at the dis uh for the record um attachment two, which is the planning commission minutes from the February 19th meeting. when we bring you a planning commission recommendation, we need to bring you the minutes from that meeting. We've had some um the the illness that's going around has gone through my team. So, several of our members are out and we got these on Friday and didn't get them to you until today. So, we want to enter that into the record. So, acknowledging that colleagues are reviewing the minutes, uh, unless there's further discussion, I'd like to make a motion that we adopt the ordinance approving the land use application as recommended by the planning commission.

So, I have a motion from councelor Peralta. Do I have a second? Second. Any further discussion? Claudia, uh, is this a motion to accept the first reading of ordinance number 5173 and pass to a second reading? That's the motion I understood I was seconding. What could you could you say that again? Motion to accept the first reading of ordinance number 5173 and possibly passed to a second reading. Okay.

Correct. Uh, councelor Takolski. Yeah, I don't I don't believe the traffic is uh correct. So, nay. Councelor Chennowith. Nay. Councelor Gary. Hi. Councelor Cunningham. I. Council President Peralta. Yes. Ordinance number 5173 passes with descent by a vote of 3 to2 um on its first reading and will be brought back for a second reading on March 24th city council meeting.

Thank you. Thank you, Heather. Okay, so we're going to move on with advice and information items. Uh we're going to do reports from committee councilors on committees, board assignments and department heads. And I am going to start with Goff Huner, public works director. Uh thank you. Just a couple quick ones tonight. We uh received the proposals for the transportation system plan last week. Um so planning, engineering, and community engagement staff are reviewing those proposals over the next couple weeks. and hopefully um we'll have either uh the I a firm chosen or we will be moving on to interviews for our top firms for that. So that project's still moving forward. I know council is interested in that one. And then also there's been uh questions posed to me by the city manager which I know some of the counselors are interested in the Discovery Meadows uh park fountain. Uh we do have the 90% plans in hand. They're being re reviewed by our park maintenance staff right now and they are going to be working on getting me an updated schedule that I can share with you on uh one the path for purchasing the equipment to install because that's got a longer lead time and then two going for construction documents to have somebody get that constructed. Um we're still trying to figure out the timeline. Um there will we don't intend to have not there not be a fountain this summer. We might have to do a single pass through again with the existing equipment one more summer, but we will we are moving forward on that project.

Thank you, Chief Wood. Are you sure?

Well, today today the uh statewide tow met this afternoon and I got to spend a good portion of my afternoon meeting with a tow board discussing disciplinary cases for towers across the state. Um it was it was very exciting. Uh we currently have two police officer candidates in the background process and one candidate who's completed the background and just waiting to complete the final medical evaluations before we can uh offer them a a final or give them a final job offer. Our management support specialist position has uh an accepted offer and we're looking to start that person next month after she finishes up some obligations to her current employer. But uh we're excited to have her on board. comes to us from some uh previous employment with police agencies in California. Uh tomorrow we're holding an assessment center for sergeant candidates. Um it's going to be all day. Uh we have five candidates to assess tomorrow. uh our RMS project continues to move forward and I uh director Burke may talk a little bit more about that, but um we're to the point where we've uh begun planning for uh staff training for the new system uh at the end of April and then I believe it's next week we have another uh process uh interviewing police officer candidates. It's a mixture of new and lateral officer candidates. Thank you, human resource director Vicky Hedges.

Thank you, Mayor. Um, excuse me. I, uh, am sharing the bug with Heather's team. Uh, so I've been sick for several days, but I did attend the CIS conference, uh, at the the last weekend of February. Uh, heard some wonderful news about insurance rates. Joking, they're terrible. Be prepared. uh for 2027 they're not great. Um training activity uh we are 13% complete uh 30% in progress and then 56% have not yet started their training. Thank you. Information system Scott Burke.

Thanks Mayor. As Chief Wood indicated, um we're still spending a lot of time with the RMS project. Um turns out it's a lot of work to integrate three agencies together, get them all talking the same language over the same pipes and whatnot. So we knocked out a lot of technical hurdles last week. Um this week is a training week. Um next week most of the team goes to a conference um where they're going to dig in pretty deeply with his vendor about a lot of things that are open and a lot of things to come. So a lot of good work going on there. Great. Thank you. City reporter Claudia Cesneros.

Yes. A couple of items. Uh the W three vacancy applications are being accepted uh starting yesterday through March 27th. Um, we will be holding interviews on April 8th at a special called city council meeting uh being held here. Um, and then for more information on that, it's on the city website. Um, if any counselors get direct applications, please do not open them. Just forward them to me. Um, and then just make sure you're telling people go out on the front page of the city website. Um, there's information there. We've also put ads in the newspaper. Um Noel's working on a Instagram post and then being added to the newsletter. Um the second thing to remind everyone, uh council and then others who have to fill out their statement of economic interest, those that window opens March 15th through April 15th. So make sure you get those filled out. You'll see several reminders from me on those. And I do apologize for my several reminders, but trying to get you guys to fill them out timely.

Yeah, Councelor Cunningham.

Yeah. Um, both affordable housing and historic landmarks committees were cancelled for February. Um, although we will be having a historic landmarks committee meeting this Thursday. Um I also attended um the ICE verifier training uh that Unitos puts on. And again, want to assure um uh everyone here and in in in the gallery that um they do a really fantastic job of of laying out like uh what is acceptable and what is not acceptable and really stressing to be as safe as possible for both themselves as well as the officers and the people that are engaged in the immigration action. On Tuesday the 3rd, I attended the tour of Stratus Village. Um, and that was uh pretty awesome. It's it's really incredible what they've done out there. Um, I'm really was impressed at uh the quality of the common spaces, the laundry area, the um the mailbox area, but then uh the apartments themselves um are they're just really wellb built and I would say pretty durable. So, I expect um that they will get a lot of life out of them. Uh, one thing to note, um, I believe there's a little bit more than 170 units, uh, in total at that facility. Uh, and most I think 40% or so are already fully moved in and they're and are looking to move in everybody else. And we were given the update that even with filling those 170 units, they have 895

applications on the wait list. So that is 895 families that are still looking um for uh what we would deem uh affordable housing. So uh that was followed up and I'm sure S will talk about a little bit too. uh Friday the 6th went to the annual meeting of the William Valley uh Council of Governments in Monmouth. Um and that was a very well attended and I get to say I did actually win a door prize. So that was fantastic from our friends uh in Yamhill. So um but it was great to see everybody there and get to talk to our fellow communities. Um, and then finally on Saturday the 7th, I went out and attended the wellness fair that Unitos put on out at CHCA. And that too was uh pretty amazing. Really well attended. Um, Virginia Garcia, I just kudos to them because it is is pretty amazing what they do. um brought out uh medical buses for people to have on-site um cancer checks. Um there was lots of stuff for kids. There was Zumba going on um which was uh very active. So that is what I have.

Councelor Chennowith. Yeah, my committees uh both met, but I am again going to withhold sharing what we're doing because we're still in the process of putting together priorities uh both in the SIP at MWACT and at the VLC. Um so until I have the final analysis done, I am not going to present here. Councelor Peralta,

thank you. Uh I just wanted to uh thank uh councelor Cunningham and city manager Garvin for attending the midwam valley council government's uh annual meeting and uh annual report. Um the uh the one item of note is Betsy Earles is of uh the CHMCA board is now the uh chair of the Midwamtt Valley Council of Governments and really appreciated the opportunity to network with other local elected officials and uh staff for business Oregon and some of the other funding partners that we had. Hopefully we made some good contacts for the city at that meeting. Thank you.

I have a few things. Um, I traveled to Washington DC and attended the American Public Power Association convention and legislative rally in Washington DC with alongside general manager John Deetsz and engineering and operations manager James Burke from McBeville Water and Light. We joined other community or excuse me consumer um, PUDS Eugene, Springfield, North Northern Wasco and Central Lincoln. So Lincoln down Lincoln City and we met with senators and congressional members to advocate on behalf of our rateayers. We have concerns about some of the items that are on for the federal government in regards to selections of a new BPA administrator, deletion of the residential exchange program and protecting the current BPA model that we at water and light use. Um protecting the Columbia River treaty. All of these items can have an effect on the rates that we are currently paying. So, we advocated for you there. Um, and then I also, um, have started a program with Superintendent Courtney Courtney Fua. We have what's called the community campaign theme and we go by the hashtag we care about kids. And with that, her and I have made a pact along with Hillary um from Lafayette because some of the kids from the kids from Lafayette go to the McManville public schools and that we try to attend as many activities as we can whether they're school related or just community related with kids and um post about them and encourage them. So this week I attended the diamond dinner which is a grizzly diamond dinner in support of local baseball. The event is a fundraiser but also highlights the senior ball players of the year. She was also able to attend that. Also yesterday I attended the bluecollar tour and it is the western welding academy. They're from Gillette Wyomi. Then they have the bluecollar tour that comes to different high schools. We're lucky to have been here. They have been in McMenville two

years in a row. They talk about welding. They teach welding and they get kids excited to join the trades. um as a society we're losing people that are in our trades and having things like this come and teach the kids, get them excited. They have a YouTube channel um was pretty fun. They do have a 11 schools that will be participating this Saturday in a welding competition at the high school if you want to go check it out. I'm going to try to stop by. Um it was great that um Senator Christine Drezen was in attendance as well as Courtney Fur and Commissioner Kit Johnston. Um, with that also is one more thing is with the school is and also the Oregon Mayor's Association is the if I were mayor campaign, you have until March 20th if you have a fourth or fifth grader, if you have a middle schooler or a high school um that would like to to participate, it's either a an essay um a visual or the high schoolers have a video. It gets turned turned in. If you live in McFendleville, it goes to me. If they live in Lafayette, it goes to Mayor Malcinson of Lafayette. We pick winners and they get turned in to the Oregon Association for the competition. But each winner at that level in each one of our cities also give a prize. So, it's pretty exciting to do that. And then I do have one more thing which um this is just a place that I was told to that would be the best to do this is a month ago at the council meeting councelor um Cunningham proposed a draft to have us come up with a committee. So um I'm going to just read what it's easier if I read it. A month ago the council agreed to draft a statement with regard to federal immigration activity and solidarity with the community. Upon later consultation with the city attorney, it became clear that such an effort was going to take up more staff time and resources than I think we believed as a council. Not more than we anticipated and would not to be the

efficient way to create that because it made a subcommittee that required serial meetings. In fact, creating that committee did require um that we not communicate with each other or collaborate on draft documents except as a notice group in a public setting. I believe that we could draft more efficiently and produce a statement of solidarity for the council to take it up if we weren't subject to those requirements of such a committee. But we're able to work informally and collaboratively. I therefore would request that the council just consider rescending the February 10th motion from the counselor from councelor Cunningham to create a subcommittee of the council to draft a statement with regard to federal immigr immigration. This is not dialing back what we were meant to do. It just changes the process of how we can get it done. At this point, we have not met. We have not done anything. So, um I just wanted to bring that forward for consideration and if somebody were to be interested in making a proposal or have questions. Council Peralta,

I have a comment. The process that we invited upon ourselves was ridiculous. So, apologize to the city attorney for not seeking advice before we made the motion and acted on the motion. I'm happy to rescend it with the promise to actually work to complete the process. So, I have a motion to rescend it. Do I have a second? Second. Thank you, Councelor Cunningham. Do I have any further questions or comments? I would like to just

Councelor Cunningham. And um yeah, and I've met with um the city attorney as well as the city manager. Um and this is where being a young uh counselor uh proves to be a little challenging um that I didn't quite understand. uh the gravity and the um amount of effort that was going to be put forward, but I am thankful for the guidance of our city attorney um to get us into a track that's going to be what I ultimately believe will be a better outcome um for for the city as a whole. So, I have a motion on the floor. Claudia Tokulski. Hi. Councelor Chennowith I guess I

councelor Giri I. Councelor Cunningham. I. Council President Peralta. Yes. Uh the motion passes unanimously by a vote of five to zero. Great. And I just want to take one more moment and just remind the council as a whole that if you do have something that you want to put on the agenda, come to myself or come to S. Let's try to work it out ahead of time the best process. so that we make sure that what we move forward is the best process for the city and for the citizens. Okay. And I know it's a learning process. So, thank you, Councelor Gary.

Visit McManville. Uh I wanted to go over some lodging trends uh overall and then locally and then give a little CEO report and then I'll report on Mirac. Um so, January 2026 snapshot. In January, room night demand among McMindville hotels rose 15.9% compared to one year prior. With hotel supply unchanged, hotel occupancy increased at the same rate, 15.9% compared to last January. Uh hotels averaged 46.8% occupancy for the month. Uh the ADR or average daily rate declined uh in January 2026, dropping 13.1% to settle at about $124 a night. Um that ADR decline coupled with increasing demand and netted essentially flat hotel revenue of.7% year over year to total 662,000 in January. But I believe the punch line is if you're holding still you're doing okay as opposed to losing ground is bad in this climate right now. Uh short-term rental update from January 2026. Uh January is key month for short-term rental bookings, typically accounting for 9 to 10% of total annual bookings. New year budgets and winter travel planning often prompt guests to begin spring booking and summer trips, uh meaning January momentum can set the tone for the year ahead. In 2026, bookings in January rose 5.5% year-over-year. That's the fastest pace uh that growth has happened since July and the second consecutive month of acceleration, signaling a local positive um start for demand. looking at uh the US and the Oregon and then Wamtt Valley for uh lodging statistics for 2026. As I've mentioned a little bit, occupancy rates 52.4% with an ADR of $152 a night for the US.

Orian statewide is 43% with an ADR of 115. And Wamut Valley specifically is um somewhere in the middle at 46.4% 4% occupancy rate with an average daily rate of $116. I'm going to skip these two tables because that's too much boring stuff. Um the CEO report so you'll see a new ad campaign is a foot and will be uh treading out in Travel Portland Visitor Guide and elsewhere. It's called Kickback Mack. Um if you see it, it's a new campaign. Additional step counts for that campaign will acrue in Seattle monthly travel issue and the like. So you might u be seeing some of that a a foot progress continues on the achievements and goals uh and sites are set for another year of approving. So we sort of closed the year and and reviewed um goals and we'll look to create new avenues for um boosting revar especially in December. And then it's always fun to look at the visit McMillville website for the upcoming events calendar. And I saw that uh this weekend uh this Friday is the McManville Widen Food Classic. And then upcoming is something called the Sasquatch Duro. It is a bicycle race on April 11th and it's uh one of Oregon's triple crown bike races. So there you go for visit McMillville Murak. Um the work session really kind of touched on a lot of what Murak talked about, but the only other uh thing on that Murk meeting agenda was an application for $50,000 for the Hoff Homestead development over on First Street. The ask was to help finish the buildout of the interior of the project and went towards the stated $550,000 remaining to complete the project. The committee after discussion awarded the full $50,000 but in the form of a forgivable loan with forgiveness being achieved after two conditions were met. Those conditions being a final occupancy

achieved within 6 months and b full business operation for two years after that. That's my report. Councelor Tolowski. I too visited Stratus Village under a different capacity and was able to see a few things. So that was nice. and I am meeting with the airport commission on the 31st. That's my report. Thank you, Katie Henry, finance director.

Thank you, Mayor and Council. Um we have half of our team out at training this week um at the Oregon Government Finance Officers Association meeting over in um Redmond. And then we've been working on budget, always budget. Um, we're heading into the second round meetings. I know that you don't all see all of the specifics of what we're doing, but the department heads and the departments work on their budgets. We have a first round. Then we go back and we crunch a lot of numbers, fix any mistakes that were found, and then we come back together for a second round and kind of do the same thing again. So those second round meetings are happening next week. So, so we're fine-tuning these financial projections to see what do things look like into the future with where things are at. And then we'll be meeting again with each of the departments next week um to to kind of really fine-tune things and see if we need any more meetings or if we're ready to start moving on getting the budget book put together to prepare for that. So that's where we're at in finance.

Thank you. Director Richards, do you have anything else for tonight?

Yeah, just one thing I wanted to share. Um, if if you don't know, we have been without a code compliance officer since the first week of February. Um, and uh, yours truly is driving the weekends doing co- compliance. But we did uh, we did get a position up and I think it's open today uh, for a co- compliance officer. It will be sometime soon this week. working with uh Vicki and Amy to put that together. And then uh we have brought in uh a temporary person to help us manage the case load. We have 53 open cases right now in code compliance. We are addressing the we're triaging. So we're addressing the most egregious cases first from a public safety perspective and then working through it uh for nuisances. Um the community has been great when we explain what's going on with them and patient and gracious and I'm just asking for a little bit more grace as we get through this situation. So thank you for that.

Happy to hear that. Attorney David Lberg. Thank you mayor. Nothing from the legal department tonight. Interim city manager Adam Garvin.

Thank you mayor. A lot of things that have been working on or attended was already covered by council or other departments. Um we did have from your January 13th uh ICE discussion we had uh information on the website go live today. So that's captured uh on one of the homepage bubbles as well as you can find it under the city council tab. Then there's a subtab on there related to immigration uh enforcement stuff and we'll put additional documents on there uh like the statement that uh you and councelor Cunningham and Council President Peralta will be working on. Uh the survey that the chamber and Unidos and others partnered with us on is open until March 12th. Our ADA survey had over 150 respondents. that's now closed, but that will be uh back before you guys at an April work session. And so uh it doesn't 150 doesn't sound like a lot, but uh given the targeted outreach we went for for that, it was more of a quality over quantity approach that we wanted to take to make sure that we touched all those as many factors as possible of that community. So we got as much insight as possible. Um, I have a Game Hill County City Managers meeting on Friday. So, that'll be um just how we collaborate and come together as regional just similar to what you do, mayor, with the mayors. Um, and then we will have the city buildings posting another ICE item. Those are in final design right now. And so we should have those going up and restrict at the start of restricted accesses in buildings in the next week or two once they're printed. Um that's what I have tonight. Thank you.

Great. Thank you. So now the city council will be going into the conference room for a close to the public executive session pursuant to OS 192.6602E to conduct deliberations with persons you have designated to negotiate real property transaction. Does any counselor need to declare an actual potential conflict of interest or recuse themselves regarding these executive sessions for the record? I personally am recusing myself as I own property next to the RB Rubber site. So, I will not be going into the section session. Anybody else? Okay. I will now adjourn the city council meeting at 8:29 p.m. Thank you.