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Record of Proceedings

North Bend City Council Workstudy: PRSA, Rezoning, and Downtown Activation - July 28, 2026

City Council — Tuesday, July 28, 2026
BodyNorth Bend, Washington
SessionCity Council
DateTuesday, July 28, 2026
StatusFILED
Video Record
0:00 / 2:13:20

Original source
Transcript — VerbatimClick a timed line to jump · ⧉ to share it

Speaker numbers apply only to this recording.

Speaker 1

0:02

2026.

Speaker 2

0:10

We want to start with Arts and RAC Creation Service Area discussion with A.

Speaker 3

0:17

Okay.

0:18

Thank you everyone for having me.

0:20

Very appreciative of the opportunity to update you on our work.

0:24

And I'll just try to make this a very quick informational download and then give you some time to ask the questions as well.

0:33

So as a quick overview, the Snowqualming Valley Productions Collaborative was formed in late 2024 through a resolution by the Sciview Commissioners.

0:43

And it was renewed in 2025 by the commissioners as well with the addition of Snowqualmie.

0:49

So if you can go ahead and

Speaker 4

0:51

vote the next slide.

Unassigned speaker

0:58

All

Speaker 4

0:58

right, so now we have City of

Speaker 3

1:00

North Bend, City of Snowqualm, SDSD, Sideview, False City, MPB and our organization as well as participants in this collaborative group.

1:11

Over the last few months since we began meeting again, we worked on a uh list of shared premises, and we wanted to do this as a way to find common ground for uh anchoring our future decisions and compromises that this group is going to need to make to find that board.

1:28

So uh we came up with this list of 11 snow palming valley residents value aquatics.

1:34

Snow Palmy Valley residents want a pool.

1:36

A new pool should serve the entire upper Snopalmie Valley.

1:40

Snowcraumy Valley residents expect value and efficiency.

1:44

No single entity can provide a pool on their own.

1:48

That was a good one to see everybody come to.

1:51

Uh good faith regional collaboration and compromise is necessary.

1:55

Location matters, the selected site must be capable of supporting the facility long term.

2:00

The community's voice should guide the process, long term sustainability matters, and lastly, there is no perfect solution.

2:09

That is always an important one when you're talking about making compromise.

2:13

It's uh how to come to terms with the fact that no one's going to be happy about everything.

2:19

So uh let's see.

2:21

Uh we are tackling the problem of how do we make paying or building and operating a new pool fair and equitable when there doesn't exist one taxing district that you can spread that cost out over.

2:34

So with that in mind, we started exploring the idea of a parks and recreation service area.

2:40

Uh go ahead and forward to the next slide.

2:44

A park and recreation service area is one of the three statutorily allowed uh park uh districts for the state of Washington.

2:53

It's it would be a new taxing district created specifically with the narrow purpose of pool construction and operation with boundaries that reflect the service area.

3:02

Uh there would be a new governing board established with representatives from partner jurisdictions, and the cost to construct and operate a new pool, then would be funded by approval of the registered voters that live within that district.

3:15

All right, next slide.

3:19

So there's four currently that exists in the state of Washington.

3:23

One of those is in King County, and that is North Shore PRSA.

3:27

The distinctive part about this type of district is that this is administered through the county.

3:35

So the county can delegate that to the cities that are part of uh the park and recreation district, but the the government's really lives with them.

3:44

Uh, and then they it's administered through an ILA when there are cities involved.

3:50

Uh and we have been working with uh Sarah Perry's office and her staff to start to talk about what would this look like to establish and run in our particular situation, and I'll add in some of the information they've shared with us about that as we

Unassigned speaker

4:04

go.

Speaker 3

4:04

All right, uh, next slide, please.

Unassigned speaker

4:08

All

Speaker 3

4:09

right, funding and governance.

4:11

So I'll I have a nice little illustration of the um the how this is established on the next slide, but for now the funding is done through a six-year regular property tax levy, which requires a 60% 60% approval, and it can issue uh voted general obligation debt, uh similar to what a city can do.

4:32

Uh funding can be submitted on the same ballot as formation, or it can be two different ballot measures you can form first and then fund it

Speaker 1

4:39

later.

Speaker 3

4:40

Obviously, there's advantages and disadvantages to both.

4:44

Um, approval of the voted debt as well, must be 60%.

4:48

It's considered a quasi-municipal corporation and independent taxing authority.

Unassigned speaker

4:53

King County is the governing authority, and then as I mentioned, it's governed with an interlocal agreement with a provision for the administrator or joint board that's responsible for governing it.

Unassigned speaker

5:03

All

Speaker 3

5:03

right, next

Speaker 5

5:03

slide,

Unassigned speaker

5:04

please.

Speaker 2

5:08

Yeah, the PRSA is created.

5:10

Is that voter approved?

5:13

Funding mechanism, any mechanism to fund that or no, it

Speaker 3

5:16

can I'll talk about that a little bit.

5:18

They can receive interlocal funding as well.

5:20

Yes.

Discussion Breakdown — Share of Meeting
Economic Development████████████████████████████████32%
Engineering And Infrastructure█████████████████17%
Affordable Housing████████████████16%
Parks and Recreation████████████12%
Public Engagement█████████9%
Community Engagement█████████9%
Procedural███3%
Arts And Culture█1%
Tourism Promotion█1%
Summary of Proceedings

North Bend City Council Workstudy: PRSA, Rezoning, and Downtown Activation - July 28, 2026

The North Bend City Council held a workstudy on July 28, 2026, at 7:00 PM. The meeting covered four primary discussion items: a proposed Parks and Recreation Service Area (PRSA) for a regional aquatics facility, a request to rezone a constrained property for townhome development, regulations on expanding single-family homes in the downtown zone, and funding strategies for downtown activation and revitalization. The meeting adjourned at 9:13 PM.

Parks & Recreation Service Area (PRSA)

  • Kate Leen of the Snoqualmie Valley Aquatics Collaborative presented a proposal to form a PRSA to fund, construct, and govern a new aquatics facility. The presentation covered the formation process, governance via King County, funding mechanisms (requiring a 60% voter-approved six-year property tax levy), and a $68 million cost estimate for a two-phase facility.
  • Council discussed the proposed boundaries, coordination with a potential Regional Fire Authority (RFA) ballot measure to avoid voter fatigue, and tax sensitivity.
  • Outcome: Broad support for exploring the PRSA. Mayor Miller will reach out to the Mayor of Snoqualmie to align on a resolution for formal Council consideration.

Rezone Request (Low Density Residential to High Density Residential)

  • Jeff Yee of Yee Capital Partners requested a rezone of his 24.35-acre property from LDR to HDR. Mr. Yee argued that steep slopes, wetlands, flood zones, and off-site infrastructure costs (a multi-million dollar box culvert and road improvements) made development under the current zoning financially infeasible.
  • He noted a previous 2006 development agreement for 154 townhomes and proposed approximately 100 townhome units to absorb the high costs. He stated he has spent over $300,000 on pre-development work.
  • Councilmembers questioned the project's viability for affordable housing given the high per-unit land development costs. Councilmember McFarland was amenable to the formal application process, while Councilmembers Elwood and Joselyn expressed significant skepticism about increasing density at the edge of town.
  • Outcome: Council directed Mr. Yee to formally submit his request as a docket item for the 2027 Comprehensive Plan amendment cycle.

Single Family Non-Conforming Use

  • Planning Manager Mike McCarty reported on a request to amend non-conforming use regulations in the Downtown Commercial (DC) zone following a denied application for a 50% home expansion. Current code limits non-conforming single-family homes to a one-time 20% increase in gross floor area.
  • Councilmembers debated the preservation of historic housing stock against property rights. Councilmember Elwood stated strong opposition ("It is a no for me"), concerned about McMansions and changing town character. Councilmember Rustik and Torguson echoed this, suggesting a need for more space should prompt a move. Councilmember McFarland was skeptical the change would solve long-term housing goals.
  • Outcome: There was a clear lack of council interest in pursuing the code amendment. The item will not move forward.

Downtown Foundation Activation & Revitalization

  • Community & Economic Development Director James Henderson presented on downtown's role as the city's primary economic driver, noting a 74% increase in sales tax receipts over the last 10 years compared to a 6% decrease at the Outlet Mall.
  • Henderson reviewed the North Bend Downtown Foundation (NBDF) accomplishments and outlined three funding options: 1) Fund the NBDF ($306k for marketing and events), 2) Establish a City Staff Position (~$255k total for a full-time exempt employee managing events and marketing), or 3) Contract an Event Manager.
  • Council Discussion: Councilmember Elwood and Mayor Pro Tem Tremolada strongly advocated for Option 2, arguing the city needs a dedicated "marketing department" to have more control over its economic development strategy. Councilmember McFarland questioned the needed scope and noted the NBDF's resistance to the Main Street designation program. Councilmember Rustik favored the more cautious Option 3.
  • Outcome: Staff was directed to gather more information on Option #2 (Establishing a City Staff Position) and bring a detailed proposal, including job description and cost-benefit analysis, back to the Council for review at the August 25, 2026 Workstudy for potential inclusion in the 2027 Budget.

Key Outcomes & Announcements

  • PRSA: Mayor to contact Snoqualmie Mayor. Draft resolution to follow.
  • Rezone: Applicant directed to submit formal request for the 2027 Comprehensive Plan docket. No immediate action taken.
  • Single Family Non-Conforming Use: Code amendment will not be pursued.
  • Downtown: Staff to develop detailed proposal for Option 2 (City Staff Position) for the August 25 Workstudy.
  • Announcements: Councilmember Joselyn reported that the City received $2.2 million in PSRC Rural Town & Corridors funding for the North Bend Way roundabout and $2.4 million for the Cedar Falls shared use trail. He also noted the release of the PSRC's "Build Here, Puget Sound!" housing platform.

Meeting Transcript

2026. We want to start with Arts and RAC Creation Service Area discussion with A. Okay. Thank you everyone for having me. Very appreciative of the opportunity to update you on our work. And I'll just try to make this a very quick informational download and then give you some time to ask the questions as well. So as a quick overview, the Snowqualming Valley Productions Collaborative was formed in late 2024 through a resolution by the Sciview Commissioners. And it was renewed in 2025 by the commissioners as well with the addition of Snowqualmie. So if you can go ahead and vote the next slide. All right, so now we have City of North Bend, City of Snowqualm, SDSD, Sideview, False City, MPB and our organization as well as participants in this collaborative group. Over the last few months since we began meeting again, we worked on a uh list of shared premises, and we wanted to do this as a way to find common ground for uh anchoring our future decisions and compromises that this group is going to need to make to find that board. So uh we came up with this list of 11 snow palming valley residents value aquatics. Snow Palmy Valley residents want a pool. A new pool should serve the entire upper Snopalmie Valley. Snowcraumy Valley residents expect value and efficiency. No single entity can provide a pool on their own. That was a good one to see everybody come to. Uh good faith regional collaboration and compromise is necessary. Location matters, the selected site must be capable of supporting the facility long term. The community's voice should guide the process, long term sustainability matters, and lastly, there is no perfect solution. That is always an important one when you're talking about making compromise. It's uh how to come to terms with the fact that no one's going to be happy about everything. So uh let's see. Uh we are tackling the problem of how do we make paying or building and operating a new pool fair and equitable when there doesn't exist one taxing district that you can spread that cost out over. So with that in mind, we started exploring the idea of a parks and recreation service area. Uh go ahead and forward to the next slide. A park and recreation service area is one of the three statutorily allowed uh park uh districts for the state of Washington. It's it would be a new taxing district created specifically with the narrow purpose of pool construction and operation with boundaries that reflect the service area. Uh there would be a new governing board established with representatives from partner jurisdictions, and the cost to construct and operate a new pool, then would be funded by approval of the registered voters that live within that district. All right, next slide. So there's four currently that exists in the state of Washington. One of those is in King County, and that is North Shore PRSA. The distinctive part about this type of district is that this is administered through the county. So the county can delegate that to the cities that are part of uh the park and recreation district, but the the government's really lives with them. Uh, and then they it's administered through an ILA when there are cities involved. Uh and we have been working with uh Sarah Perry's office and her staff to start to talk about what would this look like to establish and run in our particular situation, and I'll add in some of the information they've shared with us about that as we go. All right, uh, next slide, please. All right, funding and governance. So I'll I have a nice little illustration of the um the how this is established on the next slide, but for now the funding is done through a six-year regular property tax levy, which requires a 60% 60% approval, and it can issue uh voted general obligation debt, uh similar to what a city can do. Uh funding can be submitted on the same ballot as formation, or it can be two different ballot measures you can form first and then fund it later. Obviously, there's advantages and disadvantages to both. Um, approval of the voted debt as well, must be 60%. It's considered a quasi-municipal corporation and independent taxing authority. King County is the governing authority, and then as I mentioned, it's governed with an interlocal agreement with a provision for the administrator or joint board that's responsible for governing it.

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