Oak Harbor took additional steps recently to diversify the city’s economy and lessen its financial dependence on the Navy.

Following two public hearings during its regular scheduled Tuesday meeting, April 19, the City Council unanimously approved two measures. One ordinance altered planning documents to reduce the costs of annexation for property owners north of town, along with enticing new businesses to the area, and the other saw the actual annexation of 122 acres along the east side of Goldie Road.

According to Development Services Director Steve Powers, the goal behind the first measure is to foster growth and economic development. It combats the city’s geographical disadvantage for certain types of development due to its distance from the Interstate 5 corridor.

“Part of what we’re trying to achieve with this particular code is to at least keep the businesses that we have, possibly help them grow, and perhaps even attract new businesses,” Powers said.

Both actions are specific to the North Whidbey Enterprise Area, which is just outside the city’s northern boundary, between Ault Field Road and NE 16th Avenue. It makes up most of the urban growth area north of town and is composed primarily of industrial and planned industrial zoning, Powers said.

The approved ordinance, which saw changes to two city planning documents, did several things but all were essentially geared toward one thing: providing enough of a financial break for rural Island County businesses that they would seek to be annexed into the city.

Along with promising to seek grants for future sewer construction projects and not seek to recover costs for the Goldie Road sewer line project, the city created procedures for existing or pending county approvals and applications would be addressed once properties have been successfully annexed.

A new class of stormwater rate payers was also established, as well as a graduated rate scale. Over a five-year period, property owners will gradually transition from the county rate to the city’s. Finally, unless county health officials determine that a septic system has failed and cannot be repaired, property owners will not be required to hook up to Oak Harbor’s sewer system.

The affected planning documents include the city’s comprehensive plan – a document all municipalities use as a long-range guide for growth – and the North Whidbey Community Diversification Action Plan.

Created in 1995 following Whidbey Island Naval Air Station’s placement on a federal base closure list, it set out long-term goals aimed at weaning Oak Harbor and the county from its financial dependence on the Navy by broadening the city’s economy.

As for the approved 122-acre annexation, it’s a process that’s been ongoing since 2007 and was initiated by Oak Harbor businessman Ron Wallin. The process can start with one person but requires willingness by property owners that own at least 60 percent of the area to be annexed.

Wallin, along with several other property owners, attended the meeting and voiced support for both measures. Wallin complimented city officials, citing specifically Mayor Jim Slowik, City Administrator Paul Schmidt, and Powers, on their efforts and willingness to work with businesses owners in the enterprise area.

“I really appreciate the effort that staff put in on this,” Wallin said. “They went the full degree on this and really appreciate that.”