6 COLLABORATIVE STORY ⁄ TOURISM Rockaway Beach: Not Business as Usual The Oregon Coast tourist town of Rockaway Beach has fewer than 1,500 year-round residents, but the little city has punched well above its weight in business attraction and retention in recent years. The city government of the beach enclave, where residents used to joke that summer was tourist season and winter was “how to plan for summer season,” has changed in ways that make a huge positive impact for both the economy and fulltime residents. “Seven years ago, we transitioned from a focus on tourism advertising to one of destination management,” says city manager Luke Shepard. “This change to a community-based approach set the stage for everything that followed.” With 13 new businesses in a recent 18-month stretch, a program of facade and marketing grants that has brought a brighter look and more customers to the commercial area, and a professional city administration that welcomes and accommodates businesses, Mayor Charles McNeilly and Shepard have a lot to love — and a lot to say — about Rockaway Beach. Conversations with the two leaders brought out common themes, including the qualities and abilities of city staff. “The level of skill, the quality of our city leadership and city staff has exploded exponentially,” McNeilly says. “Luke Shepard was the keeper,” McNeilly says of the staff that was in place when he became mayor in early 2023. Since then, he says, the city manager “has totally restructured our city hall.” McNeilly praised the “exceptional” full-time planner, city recorder, finance director, public works director and public works superintendent, saying staff professionalism makes the city attractive and easy for businesses to locate there. When Pelican Brewing Tap Room came to Rockaway Beach in 2025, “they were blown away by how supportive and responsive and helpful our leadership was for them,” McNeilly says. Both leaders also agree that the city’s marketing and facade grants help businesses succeed. Shepard says cities offering marketing grants are not uncommon, BY SCOTT GILBERT Beach Bakeshop used the city’s facade-improvement grant to remove the old blue siding (left) and replace it with cedar siding treated to withstand oceanfront weather (right). They also improved the entry for better accessibility and added storm windows. “Seven years ago, we transitioned from a focus on tourism advertising to one of destination management. This change to a communitybased approach set the stage for everything that followed.” LUKE SHEPARD, CITY MANAGER, ROCKAWAY BEACH but “I don’t know of any other city of our size that’s even doing half of what we do, especially with the facade grants.” The facade grants, funded by the Rockaway Beach Transient Lodging Tax, are “a huge deal,” Shepard says. “Businesses love them. You can walk downtown and those that have taken advantage of the program, their buildings look better. They’re brighter, they’re more inviting.” The city also offers generous community grants to nonprofits and community entities, funded from the general budget. McNeilly emphasizes that many changes not only bring more travelers who patronize businesses but also improve life for year-round residents. An example is the city’s upcoming acquisition of much of the timberland that provides its drinking water, which will ultimately lead to reduced evaporation; a related agreement to pay a timber company not to use herbicides to clear roads on the rest of the
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