Highlights from 2025 & High Expectations for 2026

Event Summary

The Oregon City Business Alliance kicked off the year with a comprehensive forum featuring City Manager Tony Konkol, who delivered an annual update on Oregon City’s accomplishments, challenges, and priorities heading into 2026. The forum provided a candid look at infrastructure investments, housing development, downtown revitalization, parks planning, public safety, and the city’s long-term financial outlook.

Konkol highlighted progress on major infrastructure projects, including water and sewer upgrades designed to increase system capacity and reduce long-term costs. He also discussed the adoption of the Parks Master Plan, the growing urgency of addressing the aging Oregon City Pool, and upcoming community engagement efforts to determine future recreation investments.

Key Takeaways

Infrastructure Investment Remains a Core Priority

Major investments are underway in water, sewer, and transportation systems, including water line replacements, inflow and infiltration (I&I) sewer projects, and planning for key corridor improvements. These projects are not highly visible but are critical to long-term growth, system capacity, and cost control.

External Funding Is Essential to Project Delivery

The city has successfully leveraged state, federal, and regional funding to advance large projects. Examples include lottery bonds for water infrastructure, Metro grants for streetscape and shared-use path design, and federal transportation funds for pedestrian improvements. These partnerships significantly reduce the burden on local taxpayers.

Parks, Recreation, and Community Facilities Are at an Inflection Point

The city adopted a long-term Parks Master Plan and is developing its first five-year parks capital improvement plan. A central issue emerging from this work is the future of the Oregon City Pool, which is past its functional lifespan. The city will begin a community engagement process in 2026 to determine whether and how to replace or expand aquatic facilities.

Economic Development Efforts Focus on Revitalization and Small Business Support

Downtown support initiatives include expanded parking time limits, an adaptive reuse rehabilitation program offering forgivable loans, enterprise zone expansion, and continued use of tax incentives such as the Vertical Housing Development Zone. The city is also supporting startups through programs like Biz Pod and advancing tourism through the newly formed destination marketing organization.

Housing Strategy Emphasizes Variety and Coordination

Oregon City is seeing growth across multiple housing types, including multifamily, missing-middle housing, and large single-family subdivisions, particularly in the Park Place area. City staff emphasized maintaining a balanced housing mix rather than shifting exclusively toward rental housing.

Community Safety and Homelessness Responses Are Evolving

The city implemented a downtown civil exclusion zone focused on addressing disruptive behaviors rather than targeting individuals. Oregon City has also expanded its response to homelessness through investments in behavioral health, coordination with service providers, and the launch of a new Caring Court model aimed at reducing recidivism through support rather than punishment.

Budget Pressures Are Driven by Long-Term Cost Growth

While the city remains financially stable, rising costs—particularly healthcare, labor, and pension obligations—are the largest long-term risk. Leadership emphasized disciplined budgeting, forecasting, and prioritization to maintain services without overextending resources.

Civic Leadership and Community Engagement Will Shape the Next Phase

With multiple city leadership positions up for election in November 2026, the direction of future policy will depend heavily on community participation. City leadership emphasized patience, civic involvement, and incremental progress as the foundation for long-term improvement.

Speaker Q&A

How can business owners engage with efforts to reduce homelessness in Oregon City?

Tony Konkol explained that engagement can take many forms depending on a business owner’s interests and capacity. The city regularly coordinates with service providers such as The Father’s Heart and LoveOne, as well as with police and behavioral health partners. Business owners are encouraged to reach out directly to the city to be connected with organizations and initiatives aligned with their desired level of involvement, whether through collaboration, support, or participation in community-based efforts.

Is the Cove (Clackamette Cove / Willamette Falls area) intended to be an economic driver or primarily a park?

Konkol said the future of the Cove remains an open discussion. Options include open space, recreation, housing, or mixed-use development, all of which can function as economic drivers depending on design and execution. No final decision has been made, and additional public engagement will help shape the outcome.

How will the $12.5 million in state funds related to the Willamette Falls area be used?

Konkol described the funds as primarily supporting public access and riverfront improvements in coordination with the Confederated Tribes of Grand Ronde. Due to permitting complexity and construction costs along the river, the funds may only cover a limited stretch of riverfront. Current efforts are focused on agreements, design, and engineering to ensure timely and effective use of the funds.

Is there interest in reviving or expanding urban renewal under Chapter 59 of the city charter?

Konkol stated that the city is operating under the current charter requirements, which mandate voter approval for spending urban renewal funds beyond one year. There are no active discussions underway to change Chapter 59 at this time.

What specific programs are supporting downtown businesses?

Current initiatives include the adaptive reuse rehabilitation program, which provides forgivable loans for improvements to older buildings in the urban renewal district, and the expansion of downtown parking limits from two to three hours. The city is also reviewing expansion of the Vertical Housing Development Zone to better align tax incentives with mixed-use corridors and transit routes.

How is the city addressing concerns about immigration enforcement?

Konkol clarified that Oregon City does not enforce federal immigration law and does not share information unless legally required by a warrant or court order. He emphasized the limits of local government authority and encouraged community-based support, such as mutual aid, education, and advocacy, as critical complements to government action.

He noted that long-term solutions must come through legislative change and civic participation.

What are the biggest risks to the city’s budget?

The primary concern is sustained cost growth, especially healthcare, labor, and pension obligations. While property tax revenues remain relatively stable due to Oregon’s assessment system, rising expenditures require careful budgeting, forecasting, and prioritization. Konkol emphasized focusing on controllable costs and maintaining reserves.

What is the status of the railroad Quiet Zone project?

The project is progressing slowly due to coordination with ODOT, railroads, cost revisions, and required land acquisitions near crossings. Staff continue to advance design and negotiations to keep the project moving forward.

Is Oregon City becoming more of a rental community?

Konkol said the city is seeing a broader mix of housing types, including multifamily and missing-middle housing, but does not believe this represents a shift away from single-family ownership. Large subdivisions, particularly in Park Place, continue to add detached homes, though ownership versus rental ultimately depends on market conditions.

How is the city working with county and state partners?

At the staff level, relationships with Clackamas County are described as productive, particularly on infrastructure and environmental projects. State interaction focuses largely on transportation, housing mandates, and regulatory compliance, with the city seeking to meet state goals while preserving local character.

What are the city’s biggest accomplishments from the past year?

Konkol highlighted collaborative goal-setting with the City Commission, disciplined budgeting through a difficult cycle, successful acquisition of outside funding, and major infrastructure investments that will benefit the community for decades.

What are the biggest priorities for 2026?

Internally, staff morale and retention amid rising costs are a major focus. Externally, infrastructure maintenance and the future of the Oregon City Pool stand out as major upcoming discussions. Additionally, the November 2026 elections—with several commission seats turning over—will be pivotal in shaping the city’s direction.

Conclusion

The January forum offered a comprehensive and candid look at where Oregon City stands as it moves through 2026. City leadership emphasized stability, long-term planning, and disciplined decision-making amid rising costs and evolving community expectations. From infrastructure investments and housing coordination to economic development and public safety, the city is focused on incremental progress rather than short-term fixes.