A Clatsop County Circuit Court judge has dismissed a legal challenge to $33.6 million in bond financing for infrastructure projects in Cannon Beach.

The City Council unanimously approved the full faith and credit obligation bond in April to finance the redevelopment of the former elementary school and the construction of a new City Hall and police station.

Hannah Buschert, who operates Sea Breeze Court with her family, filed a petition in May against the city, the City Council and City Manager Bruce St. Denis. Buschert and others who organized under Cannon Beach Together argued that they should have the right to vote on what they consider a revenue bond.

Nathan Reitmann, a Salem-based attorney who represented Buschert, contended that state law requires the city to give residents an opportunity to petition for a referendum on revenue bonds.

Paul Trinchero, the city’s attorney, citing a separate provision of state law, maintained that the city has the discretion to pursue full faith and credit obligation financing without a public vote.

A full faith and credit obligation means the city is required to use all legally available resources to repay the debt.

At a hearing Friday afternoon, Judge Beau Peterson, the presiding judge of the Circuit Court, agreed that the city does have authority to pursue the financing.

“I want to be clear, I guess I do understand why (Buschert) filed this,” Peterson said. “Thirty-three million is a pretty substantial outlay. But as I read the statutes, it appears to me that if the city government believes that they can make these payments on what would be those borrowed funds in this way, and through their normal full faith and credit, then I think they get to do that.

“And if they ultimately can’t, then they’re probably going to have to come back for general obligation bonds or cut their budget in other ways, and I think those are times when (Buschert) will have time to speak up again … But in any event, based on my reading of those statutes, I will grant on that specific ground the city’s motion to dismiss.”

St. Denis said the city plans to sell the bonds for the three capital projects in late July.

“We thought we did it correctly, and that was affirmed by the judge,” he said.

Buschert told The Astorian in an email that she was disappointed in the ruling.

“Our goal was, and continues to be, to offer the residents of Cannon Beach the opportunity to vote on a historic bond that will impact us for a generation,” she said. “Voting is a cherished right. Why would the City of Cannon Beach and elected representatives fear a vote?”