By John Laney | Realtor, Newberg, Oregon | John Knows Newberg
If you live on or near South River Street in Newberg, Oregon, you’ve probably already heard the buzz. The City of Newberg is moving forward with plans to completely rebuild one of the city’s most troubled roadways — and the project has big implications not just for daily commuters, but for homeowners, buyers, sellers, and investors across the south side of town.
As a Newberg-based realtor who works and lives in this community every day, I want to give you a clear, honest breakdown of what’s happening, what it means for property values, and what you should be thinking about if you’re planning to buy or sell in the area.
Why River Street Is Being Rebuilt
South River Street has been on Newberg’s infrastructure problem list for years. It’s consistently ranked as the city’s largest road with the worst pavement condition — and that’s not just residents venting. Engineers, police, and city staff have all flagged it as a priority. The core issue: the road was originally built on a concrete slab foundation, and that concrete is now buckling beneath layers of asphalt, creating what city officials describe as a “tectonic plate effect.” Patch jobs and quick fixes have been tried repeatedly, but without addressing the root cause, none of it has held.
That’s why the Newberg Urban Renewal Agency (NURA) designated South River Street as its top infrastructure priority, and why the city is now pursuing a complete rebuild — not just a resurface.
The Scope of the Project
The current proposal calls for a full reconstruction of South River Street from East Third Street south to 11th Street. This isn’t just a road project. Along with the new roadway, the city plans to replace aging storm, water, and wastewater infrastructure, and install new curbs and sidewalks. Depending on which design option is selected, the project could also include dedicated bike lanes or a separated multi-use path for pedestrians and cyclists.
Funding is being structured through an intergovernmental agreement between NURA and the City of Newberg, with construction costs supported by NURA’s tax increment financing. This is a multi-year, multi-phase effort — the kind of investment that signals long-term confidence in the south end of Newberg.
The Three Design Options
As of early 2026, three design alternatives are on the table:
Option 1 — Bike Lanes with Utility Relocation: A 36-foot-wide street with bike lanes on both sides and traditional auto traffic lanes. The catch: this option requires relocating high-voltage power lines in coordination with Portland General Electric, which would add years to the project timeline.
Option 2 — Separated Cycle Track: Also 36 feet wide, with standard two-way auto lanes and a two-way cycle track physically separated from traffic by a three-foot barrier. A more modern design that prioritizes cycling safety.
Option 3 — Separated Multi-Use Path: This is the option city staff currently lean toward as the least impactful on existing properties. It features two-way auto lanes, a five-foot sidewalk on one side, and an 11-foot shared-use path on the other for both pedestrians and cyclists. It’s the narrowest overall footprint and would connect with the ODOT bypass multi-use path, creating real trail connectivity through the south end of town.
A formal vote by the Newberg City Council to proceed with a final design was expected at the April 20, 2026 council meeting. An ad-hoc committee made up of River Street residents and community members has also been formed to weigh in on the options before a final decision is made.
What Residents Are Concerned About — And What the City Is Saying
The project has generated real community pushback, and I think it’s important to acknowledge those concerns honestly.
Trees: The mature maple trees lining River Street are beloved by residents — many people say the trees are exactly why they wanted to live there. Unfortunately, city engineers have been clear that all three design options require tree removal. The shallow root systems of maple trees mean any deep roadway repairs will cause irreversible root damage. The city has committed to working with residents to replant a new canopy post-construction, with residents involved in choosing the species.
Property and Driveway Impacts: The city’s right-of-way on River Street was established at 60 feet many years ago, but many homes were built close to the road — and some residents have landscaped, fenced, or extended driveways into that ROW without realizing it. Preliminary designs show some designs cutting into front yard areas of homes and at least one church. City staff have acknowledged this concern and noted that the final design will aim to minimize these impacts, with some flexibility built in.
The city’s position is that the current plans are still in a very early pre-design phase — essentially rough sketches — and that nothing is final. They’ve encouraged residents to send input to publicaffairs@newbergoregon.gov while the project is still in its early stages.
What This Means for Newberg Real Estate
This is where I put on my realtor hat — because this project matters for buyers, sellers, and investors.
Short-term: During active construction, properties directly on River Street may experience disruption — noise, access changes, potential staging. If you’re thinking of listing a home on or immediately adjacent to the project corridor, timing matters. I work with sellers every day to maximize their position, and I can help you think through whether to list before, during, or after construction depending on your timeline and goals.
Long-term: Infrastructure investment of this scale is genuinely good news for property values in the south end of Newberg. A rebuilt River Street with improved pedestrian and cycling infrastructure, new utilities, and a modernized design sets the stage for the city’s long-desired riverfront district — particularly given the potential redevelopment of the former WestRock paper mill site, more than 100 acres that have sat vacant at the south end of River Street for over five years. When that land eventually comes to market and gets developed, a rebuilt River Street will be a key artery connecting that district to the rest of Newberg.
For investors, this is exactly the kind of pre-development signal worth paying attention to. I’m an active real estate investor myself, and I understand how infrastructure projects like this one create opportunity — both in terms of acquisition timing and long-term appreciation.
Stay Informed and Get Involved
If you live on River Street or nearby, the city wants to hear from you. You can email publicaffairs@newbergoregon.gov with questions or comments, and you can follow project updates at the City of Newberg’s Engineering Department page.
And if you’re an investor interested in what’s happening in Newberg’s south end, I’d love to connect with you directly. I host Newberg’s only investor meetup — a monthly gathering of local real estate investors and industry professionals right here in the Chehalem Valley. You can find upcoming event details and RSVP at Newberg Investor Meetup on Eventbrite.
Thinking About Buying or Selling Near River Street?
Whether you’re a homeowner wondering how this project affects your property value, a buyer eyeing the south end of Newberg, or an investor tracking the riverfront district opportunity — this is exactly the kind of local knowledge I bring to every conversation.
I’ve spent years building deep roots in Newberg. I know the neighborhoods, the developments, the city projects, and the market dynamics that don’t always show up in a listing description. That’s what “John Knows Newberg” really means — and it’s the kind of insight that helps my clients make better decisions.
John Knows Newberg
Connect with John Laney | John Knows Newberg
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John Laney is a licensed Oregon REALTOR® with Epique Realty / Assurance Team Real Estate, specializing in seller representation, investor properties, and commercial real estate in Newberg and the Chehalem Valley.
Sources: City of Newberg — River Street Project | Newberg Graphic, April 2, 2026 | Newsberg.org, March 17, 2026
