Appeal filed against court ruling in Cannon Beach bond for infrastructure projects

Published 3:50 pm Monday, July 8, 2024

CANNON BEACH — A motel operator has appealed a judge’s ruling dismissing a legal challenge against $33.6 million in bond financing for infrastructure projects.

Clatsop County Circuit Court Judge Beau Peterson ruled in June that the City Council had the authority to pursue the full faith and credit obligation bond. The financing will go toward 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, has appealed the judge’s ruling to the Oregon Court of Appeals.

Buschert and others who organized under Cannon Beach Together argued that residents should have the right to vote on what they consider a revenue bond.

“I have the utmost respect for Judge Peterson, who obviously has a difficult job,” Buschert told The Astorian. “He sees all kinds of cases, and has to make judgments on just a diversity of cases.

“He did start off by saying that he wasn’t an expert in that field of the case, so we’re bringing it to a higher court who will be able to take more time to really look at the issue.”

The city had been planning to sell the bonds for the three capital projects in late July.

“We’re trying to work through whatever we can, but there will be an impact on the bonds,” City Manager Bruce St. Denis said of the appeal.

St. Denis is unsure how much of a delay the appeal will cause.

“A lot has to do with, when you go to sell the bonds, whether there are perceived issues associated with the bonds or not,” he said. “So I can’t predict what that might be.”

Buschert said she hopes the appeals court will see the impact of the city’s decision and the implications for other local governments across the state.

“It has the potential for governments to make decisions that affect residents that they’re not able to reverse,” she said. “And communities across the state right now are facing issues and trying to hold their local governments accountable.

“Cannon Beach Together is also working on an initiative to prevent our city from seeking future bonds of such a magnitude without expressed consent from the voters through a standard vote.”

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