Bend City Council and BURA Meeting Summary - June 18, 2025

The Bend City Council held a combined Bend Urban Renewal Agency (BURA) meeting (4:00–5:15 p.m.), a City Council Work Session (5:00–7:00 p.m.), and a Regular Session (7:00 p.m.–adjournment) on June 18, 2025. The meetings covered tax increment financing for three housing projects, the DBBA annual update, the Franklin Avenue corridor design, budget adoption, a development agreement, sign code amendments, and the creation of a housing funding committee, among other items.

BURA Meeting (4:00 p.m.)

Consent Calendar

• Approval of March 19, 2025 BURA Meeting Minutes – Unanimously approved.

Discussion Items

• Tax Increment Financing (TIF) Assistance for Three Housing Projects – Staff presented three applications for housing developments under the Tax Increment Assistance Policy. Projects include:
  • Project PKWY Studios (17 NW Irving Ave): 24 studio units, $1.2 million rebate over 24 years, targeting 80–90% AMI.
  • Project Joule (424 NE Olney Rd): 125–134 units (studios & 1-bedrooms), $4.37 million rebate over 23 years, 38% of units restricted to 60–90% AMI. Requires a minor boundary amendment to the Core Area TIF area (0.63 acres, less than 0.01% of original boundary).
  • Project Emblem (61105 Ferguson Rd): 264 units (1–3 bedrooms), $21.4 million rebate over 24 years, 20% of units restricted to 70–90% AMI. Requires establishment of a new TIF district on a 2016 UGB expansion site (blight designation as “stagnant and unproductive” land).
• Key Statistics: Combined projects would produce 413 units, 27% rent-restricted; $124 million local economic impact; $19 million household rent savings over program duration.
• Debate: Councilors expressed concerns about blight definition for Project Emblem, the high rebate per affordable unit ($535,000 vs. $81,000 for market-rate), uncertain financing for Project Joule, and lack of entitlements. Staff recommended a pause on new applications after this round.

Key Outcomes

• Project PKWY Studios: Motion to direct staff to draft a development agreement passed unanimously.
• Project Emblem: Motion to direct staff to draft documents for a new TIF area passed 5-2 (Councilors Franzosa and Méndez opposed; Councilor Norris declared potential conflict but voted in favor).
• Project Joule: Motion to direct staff to prepare a minor boundary amendment and development agreement, but with an amendment to require a check-in before adoption of the boundary amendment (due to uncertainty). Passed with the amendment.
• Pause on New Applications: Motion to pause acceptance of new housing-affordability TIF applications until after policy review (except employment projects) passed unanimously.
• Budget Items (4A-4E): All approved:
  • 4A: Authorize BURA Chair to sign promissory notes for loans.
  • 4B & 4C: Public hearings held (no testimony); resolutions adopting the 2025-2027 Biennial Budget ($42.15 million) and 2026-2030 Capital Improvement Program adopted.
  • 4D: Resolution levying property taxes for FY2025-26 adopted.
  • 4E: Resolution declaring intent to reimburse expenditures not to exceed $4.22 million adopted.

City Council Work Session (5:00 p.m.)

Council Schedule Request

• Reed Market/Bond Roundabout Construction Timeline – Councilor Riley requested an August work session to explore design options (single-lane to full four-lane roundabout), pedestrian/cyclist safety, and potential rescheduling. Supported by majority (5-2), with Councilors Méndez and Franzosa opposed.

Downtown Bend Business Association (DBBA) Annual Update

• Rachel O’Rourke (DBBA Executive Director) presented accomplishments: joined Main Street America, sold $97,000 in banner advertising, net revenue $143,981 over budget. Parklet survey results (1,500+ community responses): 40% want removal for parking, 30% support current design, 22% want modifications. Business survey (124 responses): 59% strongly oppose parklets, 81% say parklets negatively affect business due to reduced parking. DBBA recommendations: seasonal use only (May–Oct), uniform design standards, active use requirements, standardized space allocation, increased fees to fund downtown enhancements.

Franklin Avenue Corridor and Undercrossing Project Design

• Staff presented 60% design: complete corridor reconstruction from Harriman to 8th St, including stormwater improvements, water line replacement, and multimodal upgrades. Key issue: 5-6 month full closure of the undercrossing to build uphill bike lanes (cost: ~$2 million). Project budget: GMP3 (4th-8th St) fully funded at $3.8 million; GMP4 (Harriman-4th St) estimated at $12 million with $3.9 million contingency, total cost ~$14 million vs. $9 million available from the General Obligation Bond. Additional needs for Hawthorne Bridge connection and Greenwood corridor funding. Council discussion on value engineering, removing center turn lane, phasing with development, and need for a comprehensive midtown crossing discussion.

Key Outcomes

• Staff Direction: Council generally supported continuing GMP3 (4th-8th St) as designed. For GMP4, Council asked staff to return in September with options including:
  • Removal of center turn lane.
  • Value engineering options (e.g., eliminating uphill climbing lanes, reducing scope).
  • Phasing strategies with core area developers.
  • Funding implications for Hawthorne Bridge connectivity and Greenwood corridor.
• A broader midtown crossing discussion is scheduled for September.

City Council Regular Session (7:00 p.m.)

Good of the Order

• Proclamation: June 26, 2025 proclaimed as KPOV 88.9 FM Recognition Day – unanimously adopted.
• Committee Updates: Stewardship Subcommittee meeting next month; Community Building Subcommittee meeting June 23 (public invited for Galveston discussion).
• Letters: Consensus to send letter opposing federal public land sales.
• Appointments: Todd Prior to Affordable Housing Advisory Committee; Robyn Breynaert, Ken Davies, Amy Leedham to Environment & Climate Committee (Rebecca Kay and Wayne Morter as alternates) – approved.
• Council Reports: Councilors reported on community events, wildfire preparedness, Pride, and neighborhood safety project reconsideration.

Public Comments & Testimony

• Pollution Fund & Gas Pipeline: Multiple speakers (Amy Thomas, Ray Gertler, Carl Schumacher, and youth from Bend High School) urged the city to stop introducing new gas through the pipeline (citing safety risks and climate goals) and establish a pollution fund. They noted federal rollbacks in pipeline safety enforcement.
• Other: Lewis Gore promoted a new mapping platform; Deborah Putnam (Riverside Animal Hospital) requested removal of a median in their driveway and fair compensation for an access easement related to the GoBond project.

Consent Agenda

• Approved: OLCC Report, benefit plan renewals, insurance contracts (property/liability at $1,355,384; workers comp at $1,521,404), and parking district resolution (Downtown, McKay, Old Bend).

Budget Resolutions and Public Hearings (Items 5A–5J, 5.3–5.5)

• 5A: Supplemental budget adjustments – approved.
• 5B: Year-end loan promissory notes – approved.
• 5C: 2025-2027 Biennial Budget ($1.44 billion total) – approved with an amendment by Councilor Méndez to reallocate $400,000 from street preservation to pedestrian and bike safety programs ($200,000 each). Vote on amendment: 6-1 (Councilor Riley opposed). Main motion approved.
• 5D: State shared revenues resolution – approved.
• 5E: Property tax levy – approved.
• 5F: 2026-2030 Capital Improvement Program – approved (discussion on objective ranking process; staff committed to a fall transportation prioritization summit).
• 5G: Intent to reimburse expenditures not to exceed $235.2 million – approved.
• 5H: Staffing Schedule (14.5 new positions, total 831.12 FTE) – approved.
• 5I: Fiscal Policy updates – approved.
• 5J: Investment Policy updates – approved.
• 5.3: Solid waste rate increase (3.9%, 32-gallon can from $20.66 to $21.47) – approved after public hearing (no testimony).
• 5.4: Fees and charges resolution – approved with amendment to waive road closure fee for block parties (line item 2.13.05d set to $0).
• 5.5: System Development Charge (SDC) fee schedule update (2.3% increase) – approved. Discussion on zeroing transportation SDCs for ADUs was not adopted; referred to the HOME committee.

Key Outcomes

• 2025-2027 Council Goal Work Plan – Approved as presented.

Quasi-Judicial Public Hearing: Bachelor View Road Development Agreement (Item 7)

• Proposal: Statutory Development Agreement to modify two residential subdivisions (Bachelor View 2 and 3) – reduce lots from 44 to 39 in BV2, change road standards (private streets, rural cross-section), address street misalignment, and allow a gate on the private road segment.
• Public Comment: Jerry Jones (on behalf of adjacent property owner Peter Yon an) requested conditions to ensure future access and utility easements to the south property, not just rely on phasing.
• Outcome: Council amended the agreement to require the developer to dedicate public access and utility easements (or complete the road) to the southern edge of BV2 within 60 days of tentative plan approval for the Yon an property. Motion passed. First reading of the ordinance adopted as amended.

Public Hearing: Sign Code Amendments (Item 8)

• Changes: Allow portable signs citywide (one per tenant space, during business hours, not in sidewalks), allow murals on alternate material (mounted up to 3 inches from wall – amended to 4 inches), allow electronic signs for certain types (e.g., freestanding signs with up to 25% electronic content, dimmable, content changes max 3 times/day), increase wall sign height limits (up to 30 ft generally, 38 ft on buildings over 40 ft), increase sign area cap from 200 sq ft per building to 200 sq ft per sign, allow changeable murals (graffiti walls) on non-historic buildings, and minor clarifications.
• Planning Commission Recommendation: Unanimous approval.
• Outcome: Motion to adopt ordinance with amendment from 3 to 4 inches for mural projection passed unanimously.

Resolution: Housing Options Made for Everyone (HOME) Committee (Item 9)

• Purpose: Temporary committee (9 voting members) to evaluate subsidy and incentive tools for new housing development and develop a funding work plan. Meetings Sept 2025 – April 2026, with interim recommendations possible.
• Amendments: Added recital on housing affordability challenges (Councilor Riley); added goal language on affordable homeownership/rental diversity and missing middle/small infill (Councilor Franzosa); added check-in requirement by end of 2025 for quick actions (Councilor Riley).
• Outcome: Resolution adopted as amended.

Resolution: Rescind Council Policy 007 on Discretionary Funding/Sponsorships (Item 10)

• Outcome: Adopted – moves program to administrative policy for efficiency.

Airport Grants and Contracts (Items 11, 12, 13)

• FAA Grants: Authorized to apply for up to $3,930,621 for Taxiway A/B rehabilitation, medium intensity lights, magnetic variation change (95% federal, 5% local share ~$91,000).
• Construction Contract: With C.R. Contracting LLC for $3,763,418.65.
• Construction Management Contract: With Century West Engineering for $375,070.
• All three items approved unanimously.

Olney Pedestrian and Bicycle Improvements Project – Contract Amendment (Item 14)

• Scope: $1,706,727.65 amendment (total contract $12,743,439.18) for grouting mitigation under railroad crossing due to unexpected loose soil. Includes $700k for sewer line work and $1M contingent for potential water line work.
• Outcome: Approved unanimously.

Second Reading: Emergency Ordinance Extending Parking Ordinance Effective Date (Item 16)

• Details: Extends effective date of Ordinance NS-2518 (parking regulations) to Dec 31, 2025, and extends continuous parking limit from 24 to 72 hours.
• Outcome: Adopted by emergency roll call (unanimous).

Second Reading: Ordinance Amending Development Code to Expand Housing Options (Item 15)

• Changes: Amendments to BDC chapters 1.2, 2.1, 3.6, 3.8 to allow more ADUs, row houses, etc.
• Outcome: Adopted by roll call (6-0; Councilor Norris declared potential conflict and recused).