The city of Oak Harbor and the corporation that is building a 192-house development on the hill across from the Safeway store may enter into a unique agreement that could be a first in the state, according to city officials.

City council members will consider the development agreement with Pacific North Group Inc. at the council’s Nov. 16 meeting.

In March 2020, the city’s hearing examiner approved a preliminary plat and planned residential development plan for the 20-acre project, which at the time was being proposed by developer Scott Thompson, the hearing examiner’s decision states.

The new proposal is with a corporation, Pacific North Group Inc., which incorporated in 2019. Thompson is reported as both the director and governor in documents filed with the state; attorney Patrick Hinton resigned as a registered agent in June and the corporation named itself as the new registered agent, documents state.

Under the new proposed agreement, the Hillside Planned Residential Development will be built in two phases and the first phase will consist of four “segments,” according to the city agenda bill.

The developer asked for the flexibility to build in four segments, with each segment as a stand-alone project in case the additional phases are not completed, the city reported.

“Staff has worked hard to devise an innovative plan that safeguards the city with required procedures and bonds,” the agenda bill states.

Standard development practice in the state, the city explained, is to wait to sign off on a final plat until the entire infrastructure for a project is completed.

The proposed development agreement with Pacific North Group Inc., however, allows the final plat to be filed before infrastructure is completed but restricts the sale of lots until the infrastructure is installed.

“This is a practice that is done in other states but may be a first in Washington,” the agenda bill states.

Under the terms of the proposed agreement, the developer will pay staff time and consultant costs not otherwise included within application fees.

Thompson said earlier that he envisioned that the project would include houses of various sizes and price tags, but a small percentage of lots would be reserved for Habitat for Humanity homes.