Lincoln City Council Questions Welcome Center Costs

Lincoln City Council leaders got a closer look Monday, during the city council meeting, (3/9/26) at the final design and price tag for the new Welcome Center at the D River recreation site — and while the project is moving forward, some councilors are clearly uneasy about the cost. The Welcome Center is planned for one of Oregon’s most popular coastal parks, a site that already sees more than 1.2 million visitors a year. City staff described the new facility as Lincoln City’s “living room” — a full‑service, accessible oceanfront park hub meant to replace the aging bathroom building and create a stronger first impression for visitors.

The city has already approved a lease with Oregon State Parks and a progressive design‑build contract. Funding includes 2.5 million dollars from state lottery bonds, with the remaining costs covered by transient room tax revenue. The building itself will be about 1,520 square feet, with exhibit space, staff areas, and public restrooms, plus a redesigned parking lot that adds 22 spaces, including more accessible and RV parking, and improves emergency beach access. Inside, the center will feature 720 square feet of exhibit space that highlights Lincoln City’s story, local businesses, and the coastal environment. Most of the interior artwork will be created by an artist named Duncan, with another artist expected to design a mosaic or similar work in the bathroom area. There will also be a rotating display area, space for tribal exhibits, and a prominent display of glass floats.

But much of the discussion focused on money. Councilor Hoagland questioned why the total project cost is around 7 million dollars for a building of roughly 1,700 square feet, calling line items like 279,000 dollars for siding and 43,000 dollars for painting “astronomical” compared to typical residential construction. Other high‑ticket items singled out included more than 18,000 dollars for toilet accessories and over 150,000 dollars for cabinetry and countertops.

City staff and the project manager said the materials were chosen for durability in a harsh public, oceanfront environment, emphasizing that they are intended to be long‑lasting but “not a Cadillac.” They also explained that some line items presented on the spreadsheet to the council for things like painting, bundle multiple products and treatments such as stains and preservatives for natural wood, not just interior wall paint. The council also pressed for clarity on who controls contingency spending. Staff confirmed that any use of the contingency within the already authorized total is approved by staff, and anything above that must come back to council. If contingency funds are not used, they return to the city.

Questions were also raised about how the contractor gets paid and whether they have any incentive to come in under budget. Staff said this progressive design‑build contract is “open book,” with the city able to see the contractor’s actual costs and the agreed‑upon markup. There is no bonus for finishing under budget, but any unused contingency is not shared with the contractor — it goes back to the city. Allowances are built in for uncertainties like extra gravel if bad soil is found, and for a monument sign that has not yet been fully designed; these allowance items also require approval before spending.

Councilor Hoagland again voiced concern about justifying the high costs to residents, saying he is frequently stopped in public and asked why the city is spending so much on a relatively small building. Staff responded that the costs reflect years of design work, current material and labor prices, and the realities of building a durable public facility on the coast.

For now, the Welcome Center project remains on track, with design complete, funding identified, and construction not to exceed previously approved limits. The next steps will likely focus on refining explanations of specific costs — including what exactly falls under high‑profile line items like painting — as city leaders prepare to answer tough questions from the public about how their tourism dollars are being spent.