The council addressed the substantial funding shortfall for infrastructure improvements, specifically for projects planned on 17th Street and Second Avenue. Despite securing a $2.75 million grant for inflow and infiltration reduction, the city faces immediate financial hurdles. To address this, a phased approach was proposed, prioritizing certain street improvements while delaying others, which would reduce the shortfall to approximately $816,000 for 2025, with remaining deficits deferred to 2026. This strategy aims to enable the city to potentially secure additional bonding funds in the 2025 state legislature session.

The city administrator presented various funding strategies. Options considered included drawing $423,000 from the water fund and bonding for the remaining shortfall, with estimated annual payments ranging from $50,000 to $60,000. The financial implications of taking on additional debt were discussed, with concerns about the city’s existing financial obligations, which are projected to remain high until 2030. The council’s consensus leaned towards phasing the project to manage financial impacts effectively.

In addition to the infrastructure funding challenges, the council engaged in a discussion on a proposed housing development by Real Estate Equities. This project involves a 193-unit residential building designed to offer affordable housing options. The development plan includes a mix of one to four-bedroom apartments aimed at families earning up to 60% of the area median income. However, the proposal sparked concerns about its fiscal impact on the city. The classification of the development as 100% affordable housing raised issues of lost property tax revenue, with the city already perceived as having a high proportion of subsidized housing.

Council members expressed apprehension about the financial strain such a development could impose, particularly noting Newport’s status as one of the lowest-income communities in Washington County. The representative from Real Estate Equities clarified that the project would not seek tax increment financing, a common resource for similar developments. The proposed building, described as “class A high quality,” aims to provide workforce housing without compromising on quality.

Parking emerged as a concern, with the development plan falling short of city requirements by approximately 150 stalls. This discrepancy prompted discussions on the adequacy of parking for the proposed mix of apartment units. Additionally, the council explored the project’s implications for local infrastructure, including traffic flow and connectivity, particularly given the construction standards required for Century Avenue.

Public comments during the meeting reflected community concerns about the broader impact of adding more affordable housing in Newport. Some residents expressed worries about the city’s tax base and the potential increase in subsidized housing. A council member emphasized the need for a balanced approach, suggesting that while affordable housing is necessary, it should not undermine the city’s financial health or disproportionately burden Newport compared to neighboring communities.

The meeting also touched on agreements with neighboring cities, specifically the Cherrywood stormwater agreement with Woodbury, emphasizing collaborative efforts to manage stormwater effectively. This agreement outlines shared maintenance responsibilities essential for managing runoff and maintaining water quality amid developments in both cities.