Rockaway Beach: Not Business as Usual
October 14, 2026
By Scott Gilbert
The Oregon Coast tourist town, with fewer than 1,500 year-round residents, has significantly boosted its business attraction and retention in recent years.
The city government of this beach enclave, where residents once quipped that summer was tourist season and winter was "how to plan for summer season," has undergone a transformation. “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 sprouting up in a 18-month period, a facade and marketing grant program that has revitalized the commercial area, and a competent city administration welcoming businesses, Mayor Charles McNeilly and Shepard have much to celebrate.
Common themes emerged during conversations with the leaders, including the exceptional skills and abilities of city staff.
McNeilly praises the "exceptional" full-time planner, city recorder, finance director, public works director, and public works superintendent, attributing their professionalism to the city's appeal and ease for businesses to locate there.
When Pelican Brewing Tap Room arrived in 2025, they were "blown away by how supportive and responsive and helpful our leadership was," McNeilly notes.
Similarly, Beach Bakeshop used the city’s facade improvement grant to enhance their space, removing old blue siding and replacing it with cedar siding treated for oceanfront conditions. They also improved accessibility and added storm windows.
Both leaders agree that the city’s marketing and facade grants significantly aid businesses. Shepard notes that while marketing grants are not uncommon, few cities of Rockaway Beach's size offer the extensive facade grant program.
These grants, funded by the Rockaway Beach Transient Lodging Tax, have a significant impact. "Businesses love them," Shepard says. "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 provides generous community grants to nonprofits and community entities, funded from the general budget. McNeilly emphasizes that these changes not only attract travelers and benefit businesses but also enhance life for year-round residents, highlighting the city's upcoming acquisition of timberland that provides its drinking water as a notable example.