Forest Grove City Council Work Session - June 8, 2026
Forest Grove City Council Work Session - June 8, 2026
The Forest Grove City Council held a work session on June 8, 2026, with two main agenda items: an update on the police facility bond and a discussion on the Forest Grove Cornelius Enterprise Zone program. No public comment was taken, and no formal action was approved. The council reached consensus on a 20-year bond term and decided to let the enterprise zone program sunset on June 30, 2026, while continuing policy discussions.
Police Facility Bond Update
Assistant City Manager Kim Ezel presented an update on the police facility bond. Key points included:
- Purpose: To provide an update on the May 2026 election outcomes and reach council consensus on bond structure for drafting ballot language ahead of the August 14, 2026, deadline for the November 2026 ballot.
- Background: The city conducted a needs assessment in 2015-2016, purchased property, and a first bond in May 2025 narrowly failed. Since then, value engineering, polling, and an unsuccessful state grant application have occurred.
- Polling Results (January 2026): The bond can pass but requires a robust campaign. Strong support from women, voters over 50, non-affiliated voters, and registered Republicans. Only registered Democrats showed statistically significant opposition.
- May 2026 Election Results: Statewide, 69 funding measures were on the ballot, including 12 bond measures. Of the three city bond measures, only one passed. In the Portland metro area, two of three bonds passed (Lake Oswego fire station bond passed; Tiger Police Public Works Facility Bond failed 62-38). Overall voter turnout was 41%, higher than expected, attributed to a highly publicized gas tax referendum.
- Bond Structure Options: Staff presented three term lengths: 20-year, 25-year, and 30-year. The 20-year term has the highest annual cost ($175/year, $15/month) but the lowest total cost over the bond term ($111.29?); the 30-year term has the lowest annual cost ($11/month) but the highest total cost ($1,557.9 million). The previous bond measure in May 2025 had a 20-year term.
- Council Consensus: Following discussion, council members unanimously agreed to proceed with a 20-year bond term. Councillor Falkner noted that the $4/month difference was unlikely to sway voters and that a 20-year term represents sound fiscal responsibility.
- Communications Plan: Staff outlined a summer outreach plan including farmers market events, facility tours, National Night Out, and a mailer. Mayor suggested restructuring National Night Out as a city-led event at the police station campus to increase attendance.
Enterprise Zone Program Discussion
Jesse (staff) and Assistant City Manager Kim Ezel presented on the Forest Grove Cornelius Enterprise Zone Economic Development Center program, which expires June 30, 2026. The council had previously requested policy options.
- Program Overview: The enterprise zone is a state-sponsored program offering a five-year property tax exemption for businesses that meet investment, job, and wage requirements. It is limited to industrial and some commercial (hotel/motel) uses. State law sunsets the program in 2032 unless extended.
- Current Local Requirements: Include a $50,000 minimum investment, $50,000 application fee cap, 150% of minimum wage for years 1-3, and 150% of Washington County average wage for years 4-5, plus a community support fee of 25% of abated taxes in years 4-5.
- Partnership with Cornelius: Cornelius has not yet reviewed the program. Options included continuing with amendments to remove Cornelius, engaging with Cornelius, or letting the program lapse and reapplying later.
- Council Direction: Council agreed to let the program sunset on June 30, 2026, to allow time for thorough policy development and potential partnership with Cornelius. Councillor Schimmel emphasized the need to get the policy right given the 10-year commitment.
- Policy Questions Discussed (no decisions, staff to bring data):
- Area: Staff recommended no changes to the current map, but councillors requested more analysis, including overlay of industrial zones and future projects.
- Application Fee Cap: Council agreed to remove the $50,000 cap to align with neighboring cities (Beaverton, Hillsboro).
- Minimum Investment: Staff had no recommendation; council favored increasing the $50,000 minimum but requested data to balance accessibility for small businesses and meaningful investment.
- Job Creation: Council supported increasing the state minimum of 1 job or 10% employment increase, possibly tying it to square footage (e.g., 1 job per 1,000 sq ft), but requested data.
- Wage Requirements: Staff recommended no change to the current 150% of minimum wage, but council requested comparison with neighboring cities.
- Community Support Fee: Current 25% in years 4-5; Beaverton uses 20%, Hillsboro ties fee to jobs. Council sought more information.
- Duration: Council leaned toward a five-year program with higher eligibility requirements, but requested data.
- School Support Fee: No change recommended; staff will consult with the school district.
- Additional Requirements: Council expressed interest in requirements such as land use approval before application or an investment timeline, to prevent stacking of incentives.
Key Outcomes
- The council reached unanimous consensus to place a police facility bond on the November 2026 ballot with a 20-year term. Staff will draft ballot language for review at the next work session.
- The council reached consensus to let the Forest Grove Cornelius Enterprise Zone program sunset on June 30, 2026, and to continue policy discussions with the goal of possibly reapplying with a new program, potentially in partnership with Cornelius. Staff will bring back data and analysis on specific policy questions (minimum investment, job requirements, wage levels, etc.) at a future meeting.
Meeting Transcript
Okay. Um, I think I'll just start this time. Angel will catch up. So I'm going to call to order this work session, the fourth grove city council. There are there's no public comment will be taken, and the council will take no formal action. Tonight's topic is on the police facility, and I'm going to turn it over to our assistant city manager, Kim Ezel. Good evening, Mayor and Council. So tonight we'll be talking about the police facility bond. Next slide. We're going to go into a little bit about the purpose, some background about our previous conversations. We'll do a quick recap of the polling results from January. We'll talk a little bit about the May 2026 election results, and then we have some bond structure considerations that we like council direction on. Next slide. So tonight's purpose is to provide an update to council on the outcomes of the May 2026 election and reach council consensus on bond structure so that a staff is able to draft ballot language for council's review at the next work session. Next slide. This all lines up with our 2040 vision plan around community growth, outcome to improve public safety, and very specifically the action to build a new police facility. This is the full background of the police facility up till now, 2015 to 2016 was the start of the needs assessment, followed by a property purchase and then detailed analysis. By 2025, the city did go forward with the first bond, which was a very close vote. Since then, there's been value engineering. We've reviewed polling results, applied for an unsuccessful state grant, and now reach council consensus to place the bond on the November 2026 ballot. Just a quick reminder that this is what we're looking at for the ballot timeline. The last day to submit for the ballot title is in August August 14th of this year. So we are working towards that timeline pretty aggressively over the next three council meetings. Next slide. These are some of the ballot considerations that were brought forward to you in November or for November. It is a big ballot. It's a general election year. There's a lot of folks who are on the ballot, so we anticipate a larger turnout. It's been one and a half years since the police facility ballot and six months since the city operating levy. We expect a younger electorate with a higher voter turnout, and it would allow for some communications planning over the summer without recosting the police facility. Next slide. We did some polling in January. The summary is that the bond can pass. There is a decent percentage, but it will require a robust campaign, which is what staff has been working on over the last few months. The other strong recommendation was that only one local revenue bond. So do the bond ballot or the levy ballot, but don't combine them into the same election. We normally do the operations levy uh three election cycles prior to expiration in order to give us additional uh time if we need to have additional ballots. Um that levy expires in June 30th, 2028. So that normally scheduled levy would be next May 2027. These are some of the results from the poll that we did in January. The the short version is that the poll uh the bond went over very well with women, folks who are over 50, non-affiliated voters, and those who are registered Republicans. Uh, the only uh segment of the population that was statistically significantly negative on the ballot was registered democrats. Looking at the May 2026 election results, there were 69 total funding measures statewide by local governments. So that is city, county, school district, and special district. Of those, there were 12 bond measures. Um three of those were city bond measures and only one PASS. There were 52 levy measures, five of those were city levy measures and two PASS, and five were general tax measures, but those were there was no city general tax measures. I did look into it, those were all for the establishment or dissolution of special districts, or they did things like establish a logic tax. There was also a statewide gas tax referendum, and that failed 83% no to 17% yes. But I do want to highlight that the gas tax had no referendum had no organized support.
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