Nehalem Bay Health District Clinic

Keeping Care Local: Nehalem Bay Health District

Located in Wheeler, Oregon, the Nehalem Bay Health District is the smallest in the state. Over the past 40 years, their health center and pharmacy have outgrown its current building and can no longer keep up with the needs of the area’s aging population. Exam rooms are limited, pharmacy space is cramped, and residents often must travel over 40 miles to receive more specialized care.

In May, Wheeler residents overwhelmingly passed a $10.25 million bond measure to finance construction of a new, modern health center and pharmacy large enough to offer specialty and dental care. To realize their vision, the District needed a partner with a deep understanding of healthcare, coastal, and rural construction —and Klosh Group checked all the boxes.

Whose land is it, anyway?

To accommodate the new facility, the District purchased a 1.3 acre property adjacent to Highway 101 in Wheeler. However, survey maps of the property showed a tiny sliver of land near the road that read, area of undetermined ownership. Tillamook County didn’t have any records of an owner; neither did the city. The area in question was probably a mapping error made decades ago—but without clear ownership, obtaining a building permit would be a challenge.

To resolve the issue, our team has engaged a land use attorney to determine the best way forward and bring the land back into the District’s ownership. We’re also conducting geotechnical engineering and replacing non-native soil to eliminate structural problems down the road.

Building a money matrix

In addition to the bond, the District also received state and federal funds as well as private donations and grant money. Some of the funds are taxable, some aren’t—and each come with their own complex set of reporting requirements and restrictions. To ensure that all funds are used for their intended purpose, we built a detailed funding source matrix to carefully track how and where dollars are used. Not only does this hold all stakeholders accountable, it also keeps the District in compliance with federal and state regulations.

A new era of health care

Our team is currently completing cost validation and working to obtain all necessary permits from the city. We’re also in the process of selecting a general contractor who shares our commitment to building healthier rural communities. Once construction begins, the new medical center and pharmacy is estimated to be complete in summer of 2025. When the doors open, the two-story, 16,000 sq. ft. facility will feature expanded exam rooms, staff work and meeting areas and a significantly larger pharmacy. It will also give Wheeler’s residents access to expanded services like dental, pediatric and geriatric medicine right where they live and work.