Council set to act on Oyhut Bay’s revised plans

The Ocean Shores City Council gave its unanimous approval to the Oyhut Bay development Monday night, ratifying the decision by a city hearings examiner who had reviewed the project’s revised plans and development agreement, including allowing a rezone for nightly rentals and additional commercial and retail plans on the property.

The council on Monday voted 6-0 to pass an ordinance that gives the mayor authority to enter into a development agreement with the project ownership group, adopting a zoning amendment to rezone the 43 acres off of Marine View Drive from R-7 multi-family residential to B-1 retail commercial special district with use restrictions.

After a public hearing last month, hearing examiner Ted Hunter of Sound Law Center in Olympia recommended that the City Council approve the development agreement, special district rezone, preliminary plat and conditional use permits subject to 14 conditions.

In other action Monday, the City Council also approved a 15 percent across the board water rate increase and gave the preliminary go-ahead to refinance the nearly $10 million debt still owed on the Ocean Shores Convention Center.

The most public interest was over the Oyhut Bay project, which was formerly known as The Villages of Ocean Shores before the original development team and owners went bankrupt and the new group bought the property at auction for $1.6 million.

Representing the new ownership group from the Seattle area, Stavros Anastasiou said he hopes to begin initial phase 1 construction this spring.

Here is a summary of the report to the City Council:

Oyhut Bay is located south of Ocean Shores’ main commercial district, immediately adjacent to Washington State Fish and Wildlife’s 683-acre Oyhut wildlife area. The property is located about 150 feet south of Marine View Drive, being separated from Marine View Drive by a residential subdivision. The property connects to the public road system at Fairwood Drive SW, just south of Palmer Street SW, and Marine View Drive SW near Tonquin Avenue SW. The development is 43 acres in size, with several acres of wetlands that are listed as critical areas. The developer of The Villages of Ocean Shores built several improvements including two residential buildings — the 36 unit condominium and one single family residence that has been used as a maintenance shop/sales office. The developer also built a gate house at each entry to the property and several private streets with asphalted parking areas.

The site had been zoned R-7 Multi-Family Medium Density. Single family residential development surrounds the site to the north, east and west. The wildlife area extends across the entire southern boundary.

Project Description

The Oyhut Bay team proposes to subdivide 43.2 acres into 221 lots, including a mix of single family attached, single family detached, the existing 36-unit residential condominium and new commercial lots. Along with the lengthy development agreement, the property now will be rezoned from R-7 Multi-Family Medium Density to B-1 Retail Commercial.

The residences will be offered for sale to the general public who will be able to use the houses as primary residences, a second home, and rent the houses on a nightly basis, if they choose. It is anticipated that a total of 300 dwellings will be constructed on these 217 lots as some of the properties will be built with a primary residence and a secondary residence referred to as carriage houses in the Development Agreement, according to a city report

Row houses, attached houses that share one or more common walls, are proposed on some of the lots

A total area of 40,000 square feet of commercial development is proposed. The majority of the commercial development, 30,000 square feet, will be located on Lots 254, 255, 256, and 257. 10,000 square feet of commercial space is proposed in live/work units which are defined in the Development Agreement.


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