Bend City Council Business Meeting – August 5, 2026

The Bend City Council met on August 5, 2026, at 6:00 p.m. following a 5:00 p.m. executive session. The meeting included a proclamation, public comments, approval of the consent agenda, two public hearings (quasi-judicial and legislative), decisions on affordable housing funding, an enterprise zone tax exemption, a design-build contract for the Reed Market Bridge, and the second reading of the Cavvy Master Planned Development. The Council also received a City Manager’s report and later convened as the Bend Urban Renewal Agency (BURA) to review proposed development assistance programs.

Proclamation

• Councilor Riley presented a proclamation recognizing August 24, 2026, as Ukraine Independence Day. Anna Artemenko, Yuliia, and Pete Zaydachny accepted the proclamation on behalf of Ukrainian families in Central Oregon. The proclamation was adopted unanimously.

Consent Calendar

• Approved unanimously: The Council approved the consent agenda, which included:
  • Minutes from the June 3, June 10, and June 17, 2026 meetings.
  • Authorization for the City Manager to amend the Intergovernmental Agreement with Bend Park and Recreation District for the Gilchrist Bridge Replacement Project, increasing the project cost authorization by $621,650 to a total not to exceed $2,100,000.

Public Comments & Testimony

• Emily Boyd (Bend Chamber): Expressed support for the BURA loan and grant programs, emphasizing that banks should remain primary lenders, and that BURA should complement rather than compete with private markets. She noted a lender roundtable held in June and stated that the Chamber will provide a detailed letter.
• Rondo: Called on the Mayor to declare Benjamin Netanyahu a war criminal and state he would be arrested if he visited Bend.
• Jay Smith: Claimed his rights as a handicapped senior citizen had been violated by city-funded entities and that the city attorney refused to accept his complaint. He warned of potential lawsuits.
• Michael Baker (Boys & Girls Clubs CEO): Thanked Mayor Pro Tem Perkins and City Manager King for participating in the club’s Civics Week, noting that Perkins is a former club kid.
• Unnamed speaker (parking sign issue): Requested clearer signage for 15-minute parking zones in downtown Bend, suggesting arrows instead of “this side” language, and asked for a waiver of a $45 fine because the signage was ambiguous.
• Old Bend Residents (multiple speakers): Approximately 10 residents spoke in opposition to the Bend Bikeway project’s modal filters (diverters) installed in the Old Bend neighborhood. Key concerns included:
  • Increased traffic on narrow streets (Chamberlain, Delaware, Lava) and safety hazards.
  • Drivers ignoring stop signs, driving onto sidewalks and private property.
  • The diverters shifting traffic rather than calming it, and creating dangerous conditions for pedestrians and cyclists.
  • The pilot project’s design being obstructive and not meeting its stated goals.
  • Requests to remove the diverters, shorten the pilot, or implement alternative traffic calming measures such as speed bumps or roundabouts.

Discussion Items

• Quasi-Judicial Public Hearing – Stevens Ranch Master Planned Development (MPD) Text Amendment:
  • Staff presented a proposal to shift a 50-acre large-lot industrial overlay from the southwest corner of the Stevens Ranch MPD to the eastern boundary, maintaining compliance with Comprehensive Plan Policy 1187. The underlying zoning remains General Industrial. The amendment also updates the Transportation Mitigation Plan. The Planning Commission had recommended approval unanimously. The applicant (Tia Lewis) stated the shift would accelerate development of infrastructure and industrial lands. No public testimony was offered. Councilor Franzosa supported the amendment for creating jobs. The Council voted unanimously to approve the first reading of the ordinance.
• Legislative Public Hearing – Amendments for HB 2138 and HB 4037:
  • Staff (Pauline) outlined changes to the Bend Municipal Code and Development Code to implement state housing bills. Key provisions:
    • Allow middle housing on lots with existing dwellings (e.g., a house with an ADU can add a quadplex).
    • Prohibit traffic impact analysis for townhouses and cottage clusters with 12 or fewer units.
    • Provide bonus units for accessible or affordable middle housing units (up to 2 additional units for quadplexes, etc.).
    • Allow single-room occupancy developments with more flexibility.
    • For middle housing land divisions, reduce public hearing and notice requirements, and allow concurrent divisions.
    • For developments of housing using clear and objective standards, limit notice to property owners only and restrict appeals to the applicant.
    • For planned mixed-use developments over 10 acres, if affordable housing occupies more than 20% of commercial land, replacement commercial land must be provided elsewhere.
    • Staff proposed two additional amendments (clarifying language for “approved plan” and requiring a will-serve letter for water from non-city providers). The effective date for bonus units and existing dwelling provisions is January 1, 2027. No public testimony was offered. The Council approved the first reading with the recommended amendments.
• Affordable Housing Fund Recommendations:
  • Staff (Melissa Kamania) presented the 2026 Affordable Housing Fund allocations. The Affordable Housing Advisory Committee recommended two projects from five applications requesting $2.16 million (only $1 million available):
    1. Bend-Redmond Habitat for Humanity – $350,000 for home buyer assistance for 8 units at Bear Creek Village (2 at 31-50% AMI, 6 at 51-80% AMI). Land trust model, 99-year affordability.
    2. Thistle & Nest – $650,000 for construction costs for 38 units at Woodhaven Estates Phases 5&6 (10 at 31-50% AMI, 28 at 51-80% AMI). Land trust model, 20-year silent loan.
  • Councilor Franzosa noted the importance of addressing homeownership, as previous funds went to rental housing. The motion to approve the recommendations passed unanimously.
• Lonza Enterprise Zone Agreement:
  • Staff (Sarah Smooney) presented a 10-year property tax exemption for Lonza Bend Inc. (formerly Bend Research) for a $251 million capital investment at 20465 and 20475 Murray Road. The project will create 81 new jobs with salaries above 150% of the county average annual wage. The extended exemption (years 4-10) requires a 15% school support fee. Multiple letters of support were received. Lonza representatives (Kathy Schweibert, Steph Geisler) noted the investment would create meaningful careers and the extension made Bend competitive with other locations. Councilors expressed strong support, citing the company’s long community presence and STEM education contributions. The motion passed unanimously.
• Reed Market Bridge Project – Progressive Design-Build Contract:
  • Staff (Alex Doza) requested authorization for a progressive design-build contract with Stacy and Witbeck, Inc. for pre-construction services (including 100% design) in an amount not to exceed $5,231,770. The project will eliminate the at-grade railroad crossing on Reed Market Road, funded by a $32 million federal grant and local GO bond funds. Construction is slated for mid-2027 to mid-2029. The Council approved the motion unanimously.
• Second Reading – The Cavvy Master Planned Development:
  • The Council held the second reading and adoption of an ordinance to create The Cavvy, an approximately 45-acre Major Community Master Plan. The motion included a condition that the applicant submit a final master plan incorporating all conditions of approval. The ordinance was adopted by roll call vote (7-0).

Key Outcomes

• Consent Agenda: Approved.
• Stevens Ranch MPD Amendment: First reading approved (unanimous).
• HB 2138/4037 Code Amendments: First reading approved with staff-recommended amendments (unanimous).
• 2026 Affordable Housing Fund: $1,000,000 allocated to Habitat for Humanity ($350,000) and Thistle & Nest ($650,000). Staff authorized to execute loan agreements.
• Lonza Enterprise Zone Agreement: Authorized (unanimous).
• Reed Market Bridge Contract: Authorized for $5,231,770 (unanimous).
• Cavvy MPD: Second reading adopted (roll call vote 7-0).
• BURA Discussion: No action taken; staff will return September 2, 2026, for adoption of grant and loan policies. Grants expected to launch October 1, 2026; loans in January 2027.