Cannon Beach rejects referendum on bond for infrastructure projects

Published 10:00 am Friday, April 26, 2024

CANNON BEACH — The city has rejected a petition for a referendum on $33.6 million in bond financing for a new City Hall and police station and the redevelopment of a former elementary school.

The City Council approved a full faith and credit obligation bond this month for the long-awaited infrastructure projects. City leaders believe they do not need voter approval for the bond.

An attorney for Cannon Beach Together, a newly formed political action committee with ties to Escape Lodging, a Cannon Beach-based hospitality company, cautioned the city about a vote before the City Council approved the bond. The political action committee was behind the petition and argues residents should have the opportunity to vote.

In the city’s letter rejecting the petition on Wednesday, elections official Jennifer Barrett said that since the resolution passed by the City Council was an administrative action and not legislative, it is not subject to the referendum process.

“They were approved by a resolution,” City Manager Bruce St. Denis said. “And bonds that are approved by ordinance, you can petition to make it a referral or referendum. But you can’t on this particular type of action. Full faith and credit is not one that you can just say, ‘We want to have a referral’ to.”

Some of the people involved with the political action committee are vocal opponents of the infrastructure projects who were unable to persuade the City Council to scrap or significantly scale back the investment.

Blueprints call for a new City Hall at the existing location on E. Gower Avenue and a new police station at the city’s Tolovana cache site east of U.S. Highway 101. The redevelopment of the former elementary school and NeCus’ Park site is intended as a destination for tourists and locals that marks the history of the Clatsop-Nehalem Confederated Tribes.

The school redevelopment project — at $12 million — has been the target of the most criticism, with some residents and business leaders questioning its purpose and price tag.

“Citizens have been concerned for months, years even, about the city of Cannon Beach’s many expensive building projects, particularly the $12.6 million dollar school renovation into a high-end tourist facility,” Kyle Genin, the director of Cannon Beach Together and the social media manager for Escape Lodging, said in an email response to questions from The Astorian.

Genin said a full faith and credit obligation bond, which would rely on existing revenue streams, could bankrupt the city if the projects went over budget. Such bonds are backed by the city’s general revenue and taxing power.

“We’re considering all options,” Genin said. “We want to see this issue come before the voters of Cannon Beach. In a decision this big, we believe voters deserve a voice.”

Marketplace