North Bend City Council Workstudy – September 22, 2026

The North Bend City Council held a workstudy session on September 22, 2026, at City Hall, 920 SE Cedar Falls Way, beginning at 7 p.m. In keeping with past workstudy practice, no public comment was taken. The agenda had two discussion items: the Downtown Plaza & McClellan Street Improvements, and an ordinance amending NBMC Titles 17 and 20 to establish unit lot subdivision and lot splitting processes. No formal votes were taken; instead, council members gave staff direction on next steps.

Downtown Plaza & McClellan Street Improvements

• Mr. Mohr reviewed the 2023 Taylor parking master plan and the current pedestrian-only plaza design, now at 90% design. The design contract has about $20,000 of its $200,000 remaining, and construction is planned for June through September 2027. The plaza portion is estimated at roughly $900,000–$1,000,000, using local funds.

• To mitigate construction impacts, staff proposed building the Ballard Avenue South parking project first, adding 21 permanent stalls, and temporarily paving the gravel area east of the railroad tracks for about 15 head-in parking stalls. Staff also proposed doing utility work at night and building the new sidewalk first. Current plaza-area parking totals about 11–12 spaces, so the combined replacement parking would be net positive.

• Councilmember Torreson suggested doing McClellan Street improvements first, saying downtown parking should be expanded before plaza construction creates disruption. Several councilmembers, including Councilmember McFarland, disagreed with restructuring the timeline, noting the plaza project had been reviewed repeatedly over three or more years, was a repeated council priority, and was funded. Councilmember Russick said businesses' recent opposition justified further conversation; staff responded that a February 2025 open house had already raised parking concerns that led to added parking in the plan.

• Staff also presented McClellan options. The $7–8 million McClellan alley project is about 30% designed and relies heavily on state and federal funding. Parking analysis showed about 72 existing McClellan-area spaces; retaining the double track would reduce the count to about 62, while removing an unused second track could add roughly 20 net spaces. Councilmembers clarified they did not support removing the active rail line serving the depot. Some councilmembers cited a potential net gain of about 42 spaces from McClellan and Ballard combined.

Ordinance Amending NBMC Title 17 & 20 – Lot Splitting & Unit Lot Subdivision

• Mr. McCarty and Caitlin explained that Senate Bill 5559 and House Bill 1096 require cities to allow unit lot subdivisions and administrative lot splits. The city's deadline to have these processes available is July 27, 2027.

• Unit lot subdivisions would permit residential development on mini-lots within a parent lot, but would not increase the underlying density. The parent lot must meet setbacks, and all height, coverage, parking, landscaping, and design standards continue to apply. Examples include townhomes, cottages, ADUs, and single-family homes, but not stacked apartments.

• Lot splitting would allow one division of a residential parent lot into two lots through a consolidated administrative review with public notice. Both resulting lots must independently meet all zoning requirements, and neither can be split again through this process. A boundary line adjustment remains possible if no nonconformity is created.

• Staff described consequences of missing the deadline, including loss of eligibility for state grants—the city received $817,000 in state grants last year—and being forced to process applications without city-specific regulations. Staff also cited the Housing Accountability Act's "builder's remedy" as a risk if the state finds the city out of compliance on housing issues.

• Council discussed an optional frontage improvement exemption for flag lots with 20 feet or less of frontage or an access easement. Some councilmembers thought the 20-foot threshold was too narrow and noted the city lacks a fee-in-lieu or bonding mechanism for frontage improvements. Council agreed to send that optional provision to CED for further discussion.

Key Outcomes

• No formal motions or votes were taken at the workstudy.

• For the Downtown Plaza, council generally supported advancing the project. Staff will prepare a construction contract/agenda bill, include a clear construction mitigation plan, and address ADA parking availability. The McClellan project remains at 30% design with a funding gap and was not re-prioritized.

• For the state-mandated ordinance, council directed staff to proceed with the required unit lot subdivision and lot splitting regulations, while peeling off the optional frontage improvement exemption for CED review.

• Staff will aim to bring the required ordinance forward on an upcoming agenda so the processes are operational by the July 27, 2027 state deadline.