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Home My WebLink AboutAgenda Packet - 2025-07-01 Amended Agenda 6-26-25: Added Item 8: ITEMS REMOVED FROM CONSENT AGENDA AGENDA �p CITY COUNCIL MEETING O� Tuesday, July 1, 2025 nl 4:00 p.m. IU O City Hall Council Chamber- 3rd Floor okEGo2 380 A Avenue, Lake Oswego, OR 97034 Staff Contact: Kim Vermillion, kvermillion@lakeoswego.city Virtual Access ADA Accommodation Requests Translation Services This meeting will be held in lakeoswego.city/accommodation Traduccion o interpretacion person.To participate remotely, 503-635-0282; Relay 711 i* M i please email the City Recorder by Please allow four business days to €ems noon the day of the meeting. process your request. 503-534-5738 This meeting will be livestreamed on the City's YouTube Channel and at lakeoswego.city. The meeting will also be broadcasted live on Tualatin Valley Community TV;check tvctv.org for details. 1. CALL TO ORDER 2. ROLL CALL 3. PLEDGE OF ALLEGIANCE 4. EXECUTIVE SESSION: The Lake Oswego City Council will meet under authority of ORS 192.660 (2)(a) consider employment of an officer, employee, staff member or agent; (d) conduct deliberations with persons designated to carry on labor negotiations; and (f) consider records that are exempt by law from public inspection. The remainder of the public portion of the meeting will begin at approximately 5:30 p.m. 5. PUBLIC COMMENT The purpose of Public Comment is to allow community members to present information or raise an issue regarding items not on the agenda or regarding agenda items that do not include a public hearing.A time limit of three minutes per individual shall apply. Public Comment will not exceed thirty minutes in total, unless changed by the Mayor. If you are unable to attend the meeting and prefer to provide public comment in writing, by phone or electronically, please email the City Recorder by noon the day of the meeting. 6. PRESENTATIONS 6.1 Proclamation— Disability Pride Month -July Respect, Excellence. Trust. Service. 503-534-4225 380 A AVENUE PO Box 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Amended Agenda 6-26-25: Added Item 8: ITEMS REMOVED FROM CONSENT AGENDA Page 2 6.2 Proclamation— National Parks and Recreation Month -July 6.3 Lake Oswego Tennis Center's Special Olympics Program 6.4 Youth LAB Members Survey to Teens Update 7. CONSENT AGENDA The Consent Agenda allows the City Council to consider items that require no discussion. An item may only be discussed if it is pulled from the Consent Agenda. The City Council makes one motion covering all items included on the Consent Agenda. Motion: Move to adopt the Consent Agenda. 7.1 WO 362, Meadowlark and Tree Top Pathway, A Public Improvement Contract with Turney Excavating, Inc. in the amount of$891,678 for Meadowlark Lane and Tree Top Lane Sidewalk Project. Motion: Move to authorize the City Manager to sign a Public Improvement Contract with Turney Excavating, Inc. in the amount of$891,678 for the construction of Work Order 362 Meadowlark Lane and Tree Top Lane Sidewalk Project. 7.2 Approval of City Council Meeting Minutes. 1. April 15, 2025, Draft Regular Meeting Minutes 2. May 6, 2025, Draft Regular Meeting Minutes 3. May 20, 2025, Draft Regular Meeting Minutes Motion: Move to approve minutes as written. 8. ITEMS REMOVED FROM CONSENT AGENDA 9. PUBLIC HEARING 9.1 Ordinance 2958, An Ordinance Annexing to the City of Lake Oswego One Parcel Consisting of 0.44 acres at 5450 Kenny street; Declaring City of Lake Oswego Zoning of R-10, Pursuant to LOC 50.01.004.5(a-c); and Removing the Territory from Certain Districts (AN 25-0001). Public Hearing Process: 1. Review of hearing procedure by Ellen Osoinach, City Attorney Respect, Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO Box 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Amended Agenda 6-26-25: Added Item 8: ITEMS REMOVED FROM CONSENT AGENDA Page 3 2. Staff Report by Paul Espe, Associate Planner 3. Testimony—the following time limits shall be observed, but may be changed by the Council: 10 minutes for representatives of recognized neighborhood associations, homeowner associations, government agencies, or other incorporated public interest organizations; 5 minutes per individual 4. Questions of Staff Motion: Move to enact Ordinance 2958 9.2 Ordinance 2961, An Ordinance Annexing to the City of Lake Oswego One Parcel Consisting Of 0.55 Acres At 6210 Lakeview Blvd; Declaring City of Lake Oswego Zoning of R-10, Pursuant to LOC 50.01.004.5(A-C); and Removing the Territory from Certain Districts (An 25-0002). Public Hearing Process: 1. Review of hearing procedure by Ellen Osoinach, City Attorney 2. Staff Report by Paul Espe, Associate Planner 3. Testimony—the following time limits shall be observed, but may be changed by the Council: 10 minutes for representatives of recognized neighborhood associations, homeowner associations, government agencies, or other incorporated public interest organizations; 5 minutes per individual 4. Questions of Staff Motion: Move to enact Ordinance 2961 9.3 Ordinance 2963, An Ordinance Annexing to the City of Lake Oswego One Parcel, Consisting of 0.42 Acres at 16284 Bonaire Avenue; Declaring City of Lake Oswego Zoning of R-7.5 Pursuant to LOC 50.01.004.5(A-C); and Removing the Territory from Certain Districts (An 25-0004). Public Hearing Process: 1. Review of hearing procedure by Ellen Osoinach, City Attorney 2. Staff Report by Paul Espe, Associate Planner 3. Testimony—the following time limits shall be observed, but may be changed by the Council: 10 minutes for representatives of recognized neighborhood associations, homeowner associations, government agencies, or other incorporated public interest organizations; 5 minutes per individual Respect, Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO Box 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Amended Agenda 6-26-25: Added Item 8: ITEMS REMOVED FROM CONSENT AGENDA Page 4 4. Questions of Staff Motion: Move to enact Ordinance 2963 9.4 Resolution 25-34, A Resolution of the Lake Oswego City Council, Acting as the Lake Oswego Public Contracting Review Board Pursuant to ORS 279A.060, Adopting Findings and Approval for a Special Procurement for Professional Services, Exempting the Contract from Competitive Solicitation and Using the Construction Manager/General Contractor(CM/GC) Method for a Potential New South Shore Fire Station. Public Hearing Process: 1. Review of hearing procedure by Ellen Osoinach, City Attorney 2. Staff Report by Kristine Artman, Assistant Fire Chief 3. Testimony—the following time limits shall be observed, but may be changed by the Council: 10 minutes for representatives of recognized neighborhood associations, homeowner associations, government agencies, or other incorporated public interest organizations; 5 minutes per individual 4. Questions of Staff Motion: Move to adopt Resolution 25-34. 10. INFORMATION FROM COUNCIL 11. REPORTS OF OFFICERS (this will conclude the broadcast portion of the meeting) 12. EXECUTIVE SESSION: The Lake Oswego City Council will meet under authority of ORS 192.660 (2)(h) Consult with attorney regarding legal rights and duties of a public body with regard to current litigation or litigation likely to be filed; and (f) consider records that are exempt by law from public inspection. 13. ADJOURNMENT Respect, Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO Box 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY 6.1 o�ti� Foss Proclamation °REGG� Disability Pride Month - July 2025 WHEREAS, Disability Pride Month is observed every July to honor the history, achievements, experiences, and struggles of people with disabilities and to commemorate the signing of the Americans with Disabilities Act (ADA) on July 26, 1990; and WHEREAS, more than 1 in 4 adults in the United States, representing over 70 million people, live with a disability; and WHEREAS, disability is a natural and valuable part of human diversity—not a deficit or a condition to be fixed; and WHEREAS, the 2025 theme for Disability Pride Month— "We Belong Here, and We're Here to Stay"—asserts the rightful place of people with disabilities in every aspect of our communities, pushing back against ableism, exclusion, and injustice; and WHEREAS, despite progress, people with disabilities continue to face systemic barriers in education, employment, health care, public access, and civic life, making it essential to affirm their rights, voices, and dignity; and WHEREAS, Disability Pride Month serves as a vital reminder that people with disabilities should be accepted and included exactly as they are, without conditions, and that our communities are stronger when everyone is welcomed, valued, and empowered; NOW, THEREFORE, BE IT RESOLVED, that we, the Lake Oswego City Council, proclaim July, 2025 as Disability Pride Month and call upon the people of the City of Lake Oswego to join their fellow community members across the United States in recognizing the contributions of people with disabilities, confronting ableism in all its forms, and advancing equity and inclusion so that all may live with pride, purpose, and dignity. Joseph M. Buck, Mayor July 1, 2025 6.2 OK, c; Prodamation National Parks and Recreation Month WHEREAS parks and recreation programs are an integral part of communities throughout this country, including Lake Oswego, Oregon; and WHEREAS parks and recreation promotes health and wellness, improving the physical and mental health of people who live near parks; and WHEREAS parks and recreation promotes time spent in nature, which positively impacts mental health by increasing cognitive performance and well- being, and alleviating illnesses such as depression, attention deficit disorders, and Alzheimers; and WHEREAS parks and recreation encourages physical activities by providing space for popular sports, hiking trails, swimming pools and many other activities designed to promote active lifestyles; and WHEREAS parks and recreation is a leading provider of healthy meals, nutrition services and education; and WHEREAS park and recreation programming and education activities, such as out-of- school time WHEREAS programming, youth sports and environmental education, are critical to childhood development; and WHEREAS parks and recreation increases a community's economic prosperity through increase property values, expansion of the local tax base, increased tourism, the attraction and retention of businesses, and crime reduction; and WHEREAS parks and recreation is fundamental to the environmental well-being of our community; and J OK, X E-----1 0'4_ , F- 0 c.-, . Prodamation ° EGo\A National Parks and Recreation Month WHEREAS parks and recreation is essential and adaptable infrastructure that makes our communities resilient in the face of natural disasters and climate change; and WHEREAS our parks and natural recreation areas ensure the ecological beauty of our community and provide a place for children and adults to connect with nature and recreate outdoors; and WHEREAS the U.S. House of Representatives has designated July as Parks and Recreation Month; and WHEREAS Lake Oswego, Oregon recognizes the benefits derived from parks and recreation resources. NOW THEREFORE, BE IT RESOLVED BY the City Council of the City of Lake Oswego that July is recognized as National Parks and Recreation Month in Lake Oswego, Oregon. Joseph M. Buck, Mayor July 1, 2025 Ocal)0,1'4_ COUNCIL REPORT —� OREGO� Subject: Parks and Recreation Month/Special Olympics Tennis Meeting Date: July 1, 2025 Staff Member: Lisa West, Sports Manager Report Date: June 20, 2025 Department: Parks and Recreation Action Required Advisory Board/Commission Recommendation ❑ Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑ Resolution ❑X Not Applicable ❑X Information Only Comments: ❑ Council Direction ❑ Consent Agenda Staff Recommendation: N/A Recommended Language for Motion: N/A Project/ Issue Relates To: Aligns with City Council Goal to support a diverse population where all people have civic agency, the opportunity to thrive and have equitable access to City Services. Issue before Council (Highlight Policy Question): ❑Council Goals/Priorities EAdopted Master Plan(s) ❑S Not Applicable EXECUTIVE SUMMARY The Lake Oswego Tennis Center (LOTC) has been offering the only Special Olympics tennis program in Oregon for 21 years. The program was recognized in the National Recreation and Parks Association (NRPA) magazine in 2024, and is featured in NRPA's marketing materials for Park and Recreation Month. LOTC began offering programming for Special Olympians in 2001. The program has grown from a few athletes and two staff members to 23 athletes and 25 dedicated volunteers in 2025. We will show a short video and briefly share information from the 2024-25 season. Respect, Excel'ence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY <." 0 COUNCIL REPORT vii111111 o OREGO\-\ Subject: Library Advisory Board Youth Survey Update Meeting Date: July 1, 2025 Staff Member: Melissa Kelly Report Date: June 13, 2025 Department: Library Action Required Advisory Board/Commission Recommendation ❑ Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑ Resolution ❑ Not Applicable ❑X Information Only Comments: ❑ Council Direction Anisha Oruganty, Youth Liaison to the Library ❑ Consent Agenda Advisory Board, will present an overview of her survey's findings to Council with the support of Library Director Kelly. Staff Recommendation: Consider youth survey responses regarding youth needs for library services and facilities. Recommended Language for Motion: N/A Project/ Issue Relates To: City Council Goal to "Develop a strategy for an all-ages and all- activities community center, preferably on the west side of town, that would include event and meeting spaces, public services, and may include library services." Issue before Council (Highlight Policy Question): ❑X Council Goals/Priorities ❑Adopted Master Plan(s) ❑Not Applicable BACKGROUND City Council has a goal to "Develop a strategy for an all-ages and all-activities community center, preferably on the west side of town, that would include event and meeting spaces, public services, and may include library services." Respect. Excellence. Trust. Servi-e. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 2 In support of this goal, Library Advisory Board (LAB) Youth Liaison, Anisha Oruganty, created and distributed a survey to Lake Oswego students in grades 6-12 to learn more about their needs for library services and facilities. LAB's second Youth Liaison, Enid Rittman, also helped to distribute the survey. The survey was shared with students through LOSD newsletters and school principals. The survey description explained it is an opportunity for youth to imagine what an ideal library could be and look like for them. It stated that one idea is to possibly create a new space in the future that goes beyond books and serves as a community center where people can learn, connect, and grow with less limitations. It encouraged respondents to look beyond a traditional library space and think about how a modern space that blends the best aspects of both a library and a community center could look. The questions in the survey were both open-ended and multiple choice. All responses were collected anonymously or with permission to be shared as testimonials, creating an opportunity for honest and creative input. As of mid-May 2025, 355 responses were collected from middle and high school students. DISCUSSION Youth expressed a desire for the library to become a more multifunctional, dynamic, and inviting space. Students explained that they had a desire for more engaging and comfortable physical spaces, including cozy seating, natural lighting, and collaborative areas. The current design was sometimes described as "too dark," or "off-putting," especially during winter when it is darker outside. Skylights, large windows, and greenery to create a bright and refreshing space were brought up frequently. Bean bags, couches, and reading nooks or window seats with cushions tucked away for a more private experience were also common suggestions. The responses emphasized wanting a multifunctional space that serves as both a study center and a spot to meet with friends or relax individually during study breaks. A major theme across the responses was the desire for more spaces that were designed specifically with teenagers in mind. Another key theme was accessibility, not just when referring to transportation, but also in inclusive structures that reflect diverse interests and learning styles. In terms of resources, programs and events, students expressed a desire for maker spaces, new technology integration, and more cultural events. For example, maker labs for 3D printing, inventing, building, and collaborating, as well as music studio rooms, coding and electronics stations, and open art spaces. Many of these ideas reflected a desire for hands-on learning and recreation along with their formal education. Academic support was another focus. Youth expressed a desire for spaces dedicated to quiet study with helpful resources like textbooks, study guides, test preparation events, or peer tutoring. Some suggested dedicated homework help hours or study skill workshops, which would be particularly helpful for students who struggle to find similar support in other spaces. Finally, students requested more food options. Suggestions ranged from snack vending machines to small hydration stations to full cafes. Many explained that having a comfortable place to eat or drink while studying would make them more likely to stay longer and return more frequently because of the welcoming, multifunctional, and casual environment. Respect, Excel'ence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 In conclusion, youth respondents showed a thoughtful understanding of what a library represents and should provide. They emphasized the importance of maintaining the traditional strengths while also welcoming new opportunities. While challenges such as transportation, time constraints, and awareness continue to exist, the survey results clearly demonstrate that youth are not disinterested in libraries, but instead, they care about the role of it in their lives and want a space that grows with them, reflects their values, and supports their academic, creative, and social lives. Students want a library that feels welcoming, dynamic, and modern by combining traditional quiet zones and access to literature with opportunities for collaboration, innovation, and connection. By considering the ideas presented here, such as better seating, outdoor areas, maker spaces, natural lighting, food access, and more visible outreach, our library has an opportunity to better engage with Lake Oswego's youth. Even small improvements from this feedback could go a long way in building stronger relationships with youth visitors. Ultimately, youth want not just a place to read, but a library that continues to be welcoming, dynamic, and more relevant for them as they continue to grow. Respect, Excel'ence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Ocal)0,1'4_ COUNCIL REPORT CIA2) Subject: Award a Public Improvement Contract for the construction of Work Order 362 Meadowlark Lane and Tree Top Lane Sidewalk Project. Meeting Date: July 01, 2025 Staff Member: Will Farley, PE, Assistant City Engineer Report Date: June 20, 2025 Heike Shipton, PE, Senior Associate Engineer Department: Public Works - Engineering Action Required Advisory Board/Commission Recommendation ❑ Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑ Resolution ❑X Not Applicable ❑ Information Only Comments: ❑ Council Direction ❑X Consent Agenda Staff Recommendation: Award a Public Improvement Contract. Recommended Language for Motion: Move to authorize the City Manager to sign a Public Improvement Contract with Turney Excavating, Inc. in the amount of$891,678 for the construction of Work Order 362 Meadowlark Lane and Tree Top Lane Sidewalk Project. Project/ Issue Relates To: Adopted Capital Improvement Plan (CIP) project and Council Goals for prioritizing pathway projects. Issue before Council (Highlight Policy Question): ❑X Council Goals/Priorities ❑X Adopted Master Plan(s) ❑Not Applicable Respect. Excel'ence. Trust. Service, 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 BACKGROUND The 2024 Group 2 Pathways project (Work Order 337) is identified as an important component in the City's Transportation System Plan (TSP) and is funded under the current Capital Improvement Plan (CIP). The four locations included in the Project were recommended by the Transportation Advisory Board (TAB). These locations are: 1. Carman Drive, from Waluga Drive to Quarry Road 2. Pilkington Road, from Boones Ferry Road to Lakeview Boulevard 3. Tree Top Lane, from Overlook Drive to Fernwood Drive 4. Meadowlark Lane, from Overlook Drive to Ridge Pointe Drive. These four pathways will provide safer routes to school and increase overall pedestrian accessibility. On February 20, 2024, the City Council awarded a public services contract to Harper Houf Peterson Righellis, Inc for Engineering Services for the Group 2 Pathways project in the amount of$896,884. Extensive outreach and engagement with the public and impacted residents occurred throughout the design phase, including three in-person open houses and community meetings, one digital open house, online surveys, and face-to-face meetings with residents. To deliver the projects in the most efficient way, the construction contract for the sidewalks along Tree Top Lane and Meadowlark Lane were combined into a single bid package under Work Order 362. As a result of public feedback received during the design phase, a section of sidewalk along Overlook Drive was added to the scope as it closes a gap in the current and new sidewalk configuration. Of separate note, the remaining Group 2 construction projects on Carman Drive and Pilkington Road will be bid out separately at a later date this fall or in early 2026. Respect. Excel'ence. Trust. Service, 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 DISCUSSION Project design was completed in May 2025 and the construction project was advertised for bid on May 30, 2025.The engineers' estimate of probable construction costs was $1,238,493.50. Sealed bids were opened on June 18, 2025 and the following bids were received: Cost GFE Total Rank Contractor Bid Points Points Points 1 1 Turney Excavating, Inc. $891,678 90 3 93 2 Kerr Contractors Oregon, LLC $1,112,124.50 72.16 8 80.16 3 I Pacific Excavation, Inc. $1,130,000 71.02 8 79.02 4 R+R General Contractors, Inc. $1,199,842 66.88 8 74.88 5 Kodiak Pacific Construction $1,299,000 61.78 10 71.78 6 NW Construction General $1,299,416 61.76 10 71.76 Contracting, Inc. 7 Brown Contracting, Inc. $1,396,251 57.48 8 65.48 8 Lee Contractors, LLC $1,393,215 57.60 0 57.60 9 Clark and Sons Excavating, Inc. $2,194,808 36.56 3 39.56 10 Meza Excavation & Construction, Incomplete N/A N/A N/A LLC This procurement included the City's Good Faith Effort (GFE) Requirements, e.g., COBID solicitation. Work is expected to begin in July, with an anticipated completion date in the fall. An interim milestone was set to have all work in the vicinity of Lakeridge High School completed by the beginning of the school year on September 2, 2025. FISCAL IMPACT The project was initially identified and approved in the FY 2023/24 to 2028/29 Capital Improvement Plan (CIP). Funds are also identified for completion of the work in the recently adopted FY 2025/26 to 2030/31 CIP. RECOMMENDATION Authorize the City Manager to sign a Public Improvement Contract with Turney Excavating, Inc. in the amount of$891,678 for the construction of WO 362 Meadowlark Lane and Tree Top Lane Sidewalks. Respect. Excel'ence. Trust. Service, 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY 7.2 0�� E s� COUNCIL REPORT r C.5 0 OREGO\-\ Subject: Approval of City Council Meeting Minutes Meeting Date: July 1, 2025 Staff Member: Kim Vermillion, Interim City Recorder Report Date: June 5, 2025 Department: City Manager's Office Action Required Advisory Board/Commission Recommendation ❑X Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑ Resolution ❑X Not Applicable ❑ Information Only Comments: ❑ Council Direction ❑X Consent Agenda Staff Recommendation: Approve minutes as written. Recommended Language for Motion: Move to approve minutes as written. Project/ Issue Relates To: NA Issue before Council (Highlight Policy Question): ❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑X Not Applicable ATTACHMENTS 1. April 15, 2025, Draft Regular Meeting Minutes 2. May 6, 2025, Draft Regular Meeting Minutes 3. May 20, 2025, Draft Regular Meeting Minutes Respect, Excellence. Trust. Service, 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 O CITY COUNCIL REGULAR MEETING MINUTES April 15, 2025 oREoo� 1. CALL TO ORDER Mayor Buck called the regular City Council meeting to order at 3:03 p.m. on Tuesday, April 15, 2025. The meeting was held both virtually via video conferencing and in-person in the Council Chamber at City Hall 380 A Avenue. 2. ROLL CALL Present: Mayor Buck, Councilors Wendland, Verdick, Corrigan, Afghan (via video conferencing), and Wendland. Councilor Rapf is excused. Staff Present: Martha Bennett, City Manager; Ellen Osoinach, City Attorney; Kari Linder, City Recorder; Madison Thesing, Deputy City Manager; Jessica Numanoglu, Community Development Director; Evan Fransted, Senior Planner; George Burke, Chief of Police; Clayton Simon, Captain; Erica Rooney, City Engineer I Public Works Director; Will Farley, Assistant City Engineer; Ivan Anderholm, Parks Director 3. PLEDGE OF ALLEGIANCE Mayor Buck led the Council in the Pledge of Allegiance. 4. PRESENTATIONS 4.1 Appreciation and Celebration of Laura Masterson. Mayor Buck formally recognized Ms. Masterson for her work as the Founder of 47th Avenue Farm, her contributions to the Luscher Farm Community Supported Agriculture (CSA) Program, and her legacy of sustainable agriculture, environmental stewardship, and community engagement in Lake Oswego. He also noted her service on the Oregon State Board of Agriculture and the Oregon Watershed Enhancement Board, where she brought a small-farm perspective to statewide agricultural and environmental policy. Ms. Masterson thanked City Staff for their integral role in the success of the CSA and acknowledged the Friends of Luscher Farm for their long-time support. Over the past 20 years, she was proud to have employed 250 people, grown more than 660,000 pounds of vegetables for the community, continued feeding people through COVID-19, ice storms, and the heat dome, and donated thousands of pounds of produce to the local food bank. She had put her heart and soul into the Luscher Farm CSA, and while sad to leave, she was glad to pass the opportunity on to the new farmers. City Council Regular Meeting Minutes Page 1 of 14 April 15, 2025 5. PUBLIC COMMENT Larry Kitchen, Commissioner, Lake Grove Water District, stated that although he had served on the District Board since 2013, he was speaking as a private individual. He provided a summary of his professional background and qualifications, the history and service area of the Lake Grove Water District, and the District's plan to switch its wholesale water provider from Portland to the City due to Portland's forecasted rate increase. Mayor Buck informed Mr. Kitchen his time had elapsed and suggested the conversation be taken offline so it could be discussed in more detail. Mr. Kitchen urged Council not to adopt Resolution 25-03, stating there were two errors in the presentation that overcalculated the rates to Lake Grove. He encouraged Council to retain the City's existing methodology and noted that adoption of the alternative proposal would result in an immediate 25 percent rate increase for the District's customers. The City was currently the District's most expensive supplier, and the proposed change would require the District to raise its rates accordingly. The District had been working to phase in increased costs gradually and avoid an immediate rate hike. 6. CONSENT AGENDA 6.1 Resolution 25-03, A Resolution of the City Council of the City of Lake Oswego Authorizing Adjustments to Water Rates for Wholesale Water Customers. 6.2 Resolution 25-17, A Resolution of the City Council of the City of Lake Oswego Updating the City's Financial Policies Sections 6 and 7 as Shown in Exhibits A and B. 6.3 Resolution 25-19, A Resolution of the City Council of the City of Lake Oswego Adjusting the Budget for the Biennium Commencing July 1, 2023, by Transferring Certain Appropriations. 6.4 Approval of Meeting Minutes. February 18, 2025, Draft Regular Meeting Minutes March 4, 2025, Draft Regular Meeting Minutes March 14, 2025, Draft Special Meeting Minutes March 18, 2025, Draft Regular Meeting Minutes END CONSENT Councilor Mboup moved to adopt the Consent Agenda. Councilor Corrigan seconded the motion. A voice vote was held, and the motion passed,with Mayor Buck and Councilors Wendland, Verdick, Corrigan, Afghan, Mboup voting `aye', (6-0). 7. ITEMS REMOVED FROM CONSENT AGENDA No items were removed from the Consent Agenda. City Council Regular Meeting Minutes Page 2 of 14 April 15, 2025 8. COUNCIL BUSINESS 8.1 Resolution 25-07, A Resolution of the City Council of the City of Lake Oswego Authorizing the Budget Committee to Form a Standing Subcommittee (Municipal Grants Subcommittee). Ms. Thesing said the resolution would create a Municipal Grants Subcommittee, which would be authorized to oversee the City's grant programs and develop a funding allocation structure. Adoption of the Resolution would allow a group of four, consisting of two Councilors and two Budget Committee members, to begin meeting. The group would not be allocating funds at this time but would work through the end of the fiscal year to establish a new structure. The subcommittee would return in the new fiscal year with a formal recommendation. The Resolution was consistent with best practices by granting authority to the subcommittee through Council action. Councilor Verdick moved to adopt Resolution 25-07. Councilor Mboup seconded the motion. A voice vote was held, and the motion passed, with Mayor Buck, Councilors Wendland, Verdick, Corrigan, Afghan, and Mboup voting `aye', (6-0). 8.2 2025 Legislative Session Update. Ms. Thesing provided an update on the legislative session, noting while some bills had died in committee, many of the bills the City was tracking remained active. Updates on housing transportation and general City operations were outlined in the Council Report and summarized as follows: • In housing, the City had provided testimony on several of the Governor's bills, and many of the requested amendments had been included. The City continued to monitor shot clock timeline bills and any provisions that could limit its ability to require frontage improvements. A technical fix had been secured to allow transfer of City-awarded funds to Habitat for Humanity. • In transportation, the legislative framework had been shared with Council. It had not yet been assigned a bill number and served as a starting point for concepts that might be included. Nothing had been finalized through negotiations. Many elements reflected the City's advocacy efforts, including diversification of revenues. Ms. Thesing and the Assistant City Engineer participated in the initial meetings with the League of Oregon Cities, and those meetings would continue as the bill was narrowed through further discussion. • In City operations, several bills aligned with existing City efforts, including extension of a fire- related grant, provisions related to drone use by law enforcement, and rebate programs for leaf blowers. While many bills were unexpected, they supported the City's broader goals. The striking bill, Senate Bill 916, remained active and had advanced to the House. The City would continue to monitor its progress. 9. PUBLIC HEARING City Council Regular Meeting Minutes Page 3 of 14 April 15, 2025 9.1 Ordinance 2959, An Ordinance of the City Council of the City of Lake Oswego Amending LOC Chapter 50 (Community Development Code) for the Purpose of Clarifying and Updating Various Provisions (2024); and Adopting Findings (LU 24-0029). Attorney Osoinach reviewed the hearing procedures and asked if any Councilor wished to declare a financial conflict of interest. None were heard. Mr. Fransted presented the Staff report via PowerPoint, noting the purpose of the proposed Code amendments was to correct errors, eliminate text redundancy, clarify text, implement minor policy changes intended to streamline the permit, and implement City goals and priorities consistent with the Comprehensive Plan. • The City received one public comment from the Fair Housing Council of Oregon, Exhibit G-1, which expressed concerns that the Planning Commission Staff report did not address the Statewide Planning Goal for Housing, Goal 10. The Commission found that Goal 10 was not applicable to the proposed code amendments because the amendments did not change allowed residential densities, uses, housing types, Comprehensive Plan Map or Zoning or zoning of any property and therefore did not affect Goal 10. • One of the seven policy items meant to address whether cottage cluster courtyards should be put into easements or tracts was removed from the Code updates after discussion with the Planning Commission, community developers, and other stakeholders because requiring a tract was found to be more restrictive and provided less flexibility. While there was concern that courtyards might not be treated as open space, the current Code allowed the City to enforce any encroachment and the Planning Commission, with Staff concurrence, chose to keep the existing approach. Mr. Fransted continued the presentation with a review of the six policy items included in the updates. He addressed questions that arose on the following issues as noted: • Item 2: Reconstruction of non-conforming commercial, industrial, and multifamily non- conforming structures. • The current Code did not allow for basic additions or alterations to a structure unless it was damaged by a natural disaster, meaning nonconforming commercial structures could not add an addition or remodel. The proposed change would allow for those additions and upgrades. The Code would now refer to buildings "damaged or destroyed by any means," which allowed for the property owner damaging or removing a portion of the structure as long as it did not exceed 50 percent. This would allow nonconforming sections to remain while upgrading the building, which was consistent with the City's original intent. • Item 3: Accessory structure setback reduction. • The proposed change would allow accessory structures up to 12 feet in height to qualify for reduced setbacks. Many accessory structures were prefabricated sheds commonly 12 feet tall. Under the current Code, if a structure exceeded 10 feet in height, it did not qualify for the five-foot side setback or three-foot rear setback and instead had to meet the full City Council Regular Meeting Minutes Page 4 of 14 April 15, 2025 setback required by the zone, which could range from 5 to 15 feet. The Code change would increase the allowed height. Height was measured from grade to the roof peak, either from the existing grade or, if the owner cut the grade, from the cut grade. • Item 6: Generators and variances. • The City received many variance requests from property owners who wished to locate generators closer to property lines. The requests were often from homes on the lake where houses were built to all setbacks and had no room left to place a generator. Under the current Code, such a request constituted a major variance with a public hearing even though the generator would be screened from the street and not impact surrounding properties. The proposed change would allow for a minor variance which was less restrictive but still required a permit and land use application. • Item 7: Definition of detached. During the previous year's Code amendments, Councilors discussed the definition of detached and asked that the definition be further refined in this year's amendments to reduce confusion. Staff sought the Council's feedback on two options for the definition presented as follows: • Option 1: Remove the definition of detached and add language to the accessory structure definition to require no structural connection to the primary structure, excluding breezeways, etc. • Mr. Fransted confirmed Option 1 would eliminate the definition of detached but still require a minimum, three-foot separation where needed to meet other standards, such as Fire Code or additional safety features. He responded to questions as follows: • Under the current Code, if there was no structural connection and the structure was considered detached, it could qualify for reduced rear yard setbacks and receive bonuses for maximum floor area and lot coverage. These dimensional standards differentiated between accessory structures, such as garages, and the primary structure. Whether that distinction remained necessary could be considered in the future. • The maximum size for a detached garage depended on height: 600 square feet if the height was 18 feet or less, and 800 square feet if over 18 feet. For attached structures, the garage floor area counted toward the maximum overall floor area for the lot. The total maximum floor area still applied to the entire lot, but accessory structures were subject to the 600 or 800 square foot limit. • Detached structures could qualify for different setbacks than attached ones. The bonus for maximum lot coverage was approximately 200 square feet; the floor area bonus was likely similar. These bonuses were intended to break up building massing by encouraging meaningful separation between structures, and to support the development of accessory structures. That community's intent to encourage accessory structures would remain in place. • The bonuses would remain in the Code, even without requiring the three-foot separation. If the distance between structures was less than three feet, firewalls would be required. Removing the three-foot minimum allowed greater flexibility for builders or property owners, especially on constrained sites. For example, it would City Council Regular Meeting Minutes Page 5 of 14 April 15, 2025 allow them to construct a covered walkway between eaves or to use the space more effectively, which the current Code prohibited by measuring the separation from eave to eave. • Eliminating the separation requirement allowed for greater site design flexibility without sacrificing safety, and it reflected a recognition that the three-foot space did not meaningfully separate massing. • Option 2 Clarify that "detached" applied to accessory structures and kept the three-foot standard in place. • When originally adopted, the existing three-foot separation standard was thought to provide meaningful separation, but Staff found that it did not. The Planning Commission also discussed revisiting this topic as part of a broader Code audit focused on identifying barriers to housing. A more in-depth analysis of the City's dimensional standards may be needed beyond just redefining "detached." • Accessory Dwelling Units (ADUs) could be considered accessory structures, depending on whether they were located within the primary dwelling. Most often, they were detached and therefore subject to the same 600- to 800-square-foot limitations as other accessory structures. That size constraint was often insufficient for the intended use, such as constructing an ADU above a garage. Because the garage floor area counted toward the total, many property owners ultimately attached the garage to the primary structure to avoid exceeding the maximum. ADUs were not eligible for the bonus provisions because they were limited to 800 square feet. Councilor Corrigan asked for more information regarding Code Maintenance Item 11 which clarified that Type II Tree Removal and Mitigation Standards were applicable to minor and major development permits, but tree protection standards were not. Mr. Fransted replied that the clarification arose from a Development Review Commission (DRC) tree appeal, which found that the current Code's reference to Tree Cutting Chapter 55 did not include tree protection standards. To codify that interpretation, the reference was revised to specifically cite the tree removal standards in Chapter 55.02, making it clear that tree protection did not apply. The crux of the change was that tree protection was not a development standard, though it still applied during construction. Councilor Corrigan sought to confirm tree protection standards still existed but not as a development standard. Director Numanoglu stated the Code now clarified that tree protection was not an applicable approval criterion for minor or major development permits. While tree protection could still be required as a condition of approval, it applied during the construction phase to any project requiring a permit, but it was not part of the land use review process. Mayor Buck asked for more information on how the wording of the ordinance was drafted in regard to Option 1 or 2 for Issue 7. Mr. Fransted replied that Staff found that either option met the Comprehensive Plan criteria. The Planning Commission's recommendation was Option 2. City Council Regular Meeting Minutes Page 6 of 14 April 15, 2025 Public Testimony: • Carole Ockert, Land Use Liaison, First Addition Neighborhood(FAN)/Forest Hills, presented testimony via PowerPoint in support of requiring that cottage cluster courtyards be placed in a separate tract, citing concerns regarding homeowner understanding, violation of home rule, the cottage cluster middle housing type itself, and alleging a privileged relationship between City Staff and developers. She recommended setting a minimum footprint of 850 square feet for cottage clusters to limit the number of units per lot and mitigate related impacts. She supported Option 2 for Policy Item 7, stating it removed confusion surrounding the term "detached" while continuing to incentivize innovative building plans. • Chris Durkee, Palisades Neighborhood Association, Neighborhood Chairs Committee, supported the position outlined by Ms. Ockert adding that allowing a developer to divide cottage cluster courtyards like a pie would create a sense of individual ownership, undermining the intended concept of a common courtyard. The City should establish that courtyards in a cottage cluster be owned in common as their own tract. Dividing the space would lead to unintended consequences related to maintenance, use, access, and other issues. • Stacy Houser, resident, First Addition shared concerns regarding construction debris and clear cutting related to the two FAN cottage cluster developments. The Council should work with the neighborhood, not builders, to identify solutions. The City should require a common courtyard held in a separate tract, establish a minimum footprint for cottages, and end the privileged relationship between Staff and builders. • Deborah Linke, resident, First Addition, asked City Council to enact the Code changes proposed by Carole Ockert that would improve cottage cluster development in Lake Oswego without waiting for State permission. The Council should require that cottage cluster courtyards be held in common ownership within a single tract, establish a minimum cottage footprint of 850 square feet, and adopt Option 2 from Policy Item 7. Mayor Buck acknowledged that getting into the Code could be challenging, noting it was difficult for the Council to respond meaningfully to amendments brought forward during a public hearing. Earlier outreach, such as an email or meeting request, would improve engagement. He added that while policy disagreements were understandable, denigrating City Staff was not appropriate and did not sit well with him. Staff responded to Councilor questions as noted: • The current Code had a maximum of 900 square feet for cottages in cottage clusters, which was consistent with State statute. • HB 2138, which was still under consideration, would remove that limitation and redefine cottage clusters, triplexes, and quadplexes to include both attached and detached units overriding the Council's 2024 decision requiring plexes to be attached. The same bill had previously included language to allow courtyards or amenities, though that provision appeared to be removed. The bill was still under consideration which was one reason Staff hesitated to recommended Code changes that may soon be preempted. • Minimum lot and home size requirements had traditionally been used as exclusionary zoning tools to limit development or restrict who could live in a neighborhood. HB 2138 included provisions prohibiting cities within an urban growth boundary from adopting regulations that City Council Regular Meeting Minutes Page 7 of 14 April 15, 2025 reduced residential density, including limits on units per acre, reductions in floor area or height, increases to minimum lot sizes or setbacks, or other restrictions on developable area. If Council wished to explore an 850-square-foot minimum, Staff could do so, but it could not be added and adopted that evening without proper notice. • Cottage clusters were currently required to include a common courtyard, which could be established either as an easement or a tract at the developer's discretion. In either case, the space was shared among the cottages through easement language. A tract could only be created for a cottage cluster through a middle housing land divisions and no middle housing land divisions for cottage clusters had yet been recorded or developed in the City, so the existing cottage cluster courtyards were located in easements. • Staff reiterated the City could not require a tract unless a middle housing land division was proposed. A land division would be recorded at the County as a plat. A tract could not be required unless they choose that option and developers so far had not been choosing that option. • The City did not require an HOA and Staff did not believe it could require one for either tracts or easements. Regardless of the designation, all property owners would be responsible for maintaining the common courtyard. Legally, the obligations for maintenance and governance were the same whether the space was a tract or an easement. From a Staff standpoint, enforcement would likely be easier with a tract because a tract provided clearer boundaries for property owners than an easement. Issues with easements had been more common in Planned Developments with larger lots, where sensitive lands or open space easements located in backyards were more prone to encroachments. However, on smaller cottage cluster sites, where shared spaces were more visible, enforcement would likely be easier although encroachments could occur in open space tracts as well, including within the City's own park system. • Mr. Fransted did not know why developers did not pursue middle housing land divisions. One cottage cluster had received approval, but the developer had not recorded or moved forward with it. The two developments in First Addition did not choose middle housing land division and were either planning to rent the units or condominimize them, which might be an easier process. Middle housing land division required a public process and a minor development application, which could be appealed and added additional steps. • Director Numanoglu clarified that an easement outlined terms such as access and maintenance requirements. Because the area was intended as a common courtyard, the easement needed to include provisions for access and maintenance. The legal setup in this specific case was unknown, but the arrangement would likely be similar to what is typically established for a tract. The easement needed to clearly identify the area as common space. • Attorney Osoinach stated that whether the space was designated as a tract or an easement, the effect was the same. A recorded easement could appear on a deed in several ways, but enforcement typically occurred through an agreement established by the developer. Prospective buyers would generally receive notice through mechanisms such as a homeowners' association, a recorded easement, or conditions of sale. Enforcement mechanisms would follow how the developer chose to place those requirements into the deed or sales documents. This structure provided more flexibility to the developer in managing the arrangement, rather than creating a direct right recorded on the deed for the purchaser. City Council Regular Meeting Minutes Page 8 of 14 April 15, 2025 • While recording something on a deed could evidence a legal right in a different way, it did not necessarily improve a buyer's ability to enforce that right. In a situation where a property owner encroached on a common area, such as failing to maintain landscaping, there were multiple pathways to enforcement. If the concern was an innocent buyer unaware of their rights, recording the easement would ensure notice. • Director Numanoglu suggested an easement might be preferred by developers because it was easier to establish and avoided the additional steps required to create a separate tract during platting. The choice may also have related to development flexibility, particularly around setbacks and the need to construct a firewall when creating a property line, which would not be required with an easement. • Staff confirmed the cottage cluster units had a maximum footprint of 900 square feet. The units in the FAN neighborhood were designed to be different sizes but averaged no more than 1,000 square feet. Councilor Wendland advocated for courtyards being held in a common tract and was in favor of setting up an 850 square foot minimum for cottage cluster units. The minimum was not meant to be exclusionary, but to fit the lifestyle and precedent of Lake Oswego. He was in favor of Option 2 for Issue 7. Councilor Mboup thanked Staff for their work and expressed concern about the accusations that Staff treated developers in a privileged manner. Debate should be civilized and a lack of trust in government led to chaos. Councilor Verdick said she leaned towards the idea of putting cottage cluster courtyards into a tract to give better definition. She also did not think an 850 square foot minimum was exclusionary because it may result in more main level living styles that would provide a needed type of housing for those who were aging or had a disability. She was in favor Option 2 for Issue 7. Councilor Afghan was in favor of Option 2 for Issue 7. He agreed that the City should examine the possibility of a minimum square footage requirement for cottage cluster units to maximize quality of life for those who bought the units. Following his conversations with the Planning Department and City Attorney, he understood that the end result of an easement and a tract were the same but to avoid conflicts between neighbors, he leaned towards the strategy of requiring the courtyards be in tracts. Councilor Wendland confirmed that regardless of how ownership was structured, the outcome for developers would be a somewhat prescribed process. He noted developers were valuable to the City because they invested in Lake Oswego, but they would take full advantage of what the Code allowed. For that reason, the City needed to ensure that appropriate parameters were in place to preserve the character of the Lake Oswego community while supporting both developers and neighborhoods so they could succeed and function well together. Councilor Verdick thanked Staff for their work to clean up the Code with regard to historic landmarks. She assured those who offered public testimony that City Councilors and City Staff were in contact with State representatives and did try to work to further the City's goals at the State level. City Council Regular Meeting Minutes Page 9 of 14 April 15, 2025 Mayor Buck moved to tentatively approve Ordinance 2959 including Option #2 for Policy Item 7, and directed Staff to return on May 6, 2025, with a final version of the Ordinance, including findings and conclusions for LU 24-0029. Councilor Mboup seconded the motion. A voice vote was held, and the motion passed,with Mayor Buck and Councilors Wendland, Verdick, Corrigan, Afghan, Mboup voting `aye', (6-0). Council took a recess from 5:01 p.m. to 5:12 p.m. 10. STUDY SESSIONS 10.1 Annual Police Department Report and Update. Chief Burke briefly reviewed areas the Police Department had focused on over the past year as follows: • The Department's online reporting went live a couple of weeks ago. Although it included a code component, it had not been widely publicized. The Department wanted the community to understand that if someone called for a police officer, a police officer would respond. Online reporting was introduced to provide convenience for those wishing to make a report. The system was already being used, and the City would continue sharing information about how to access it to make the process easier for residents. • A drone program had been instituted, and Staff expressed pride in the work accomplished. The drone had already been used, including during a recent search and rescue effort on the river. • The Department had entered into an agreement with TriMet to focus on providing resources to the Transit Police. Staff were still determining how best to allocate those resources given ongoing staffing challenges. • A position in the behavioral health unit with the help of a grant. A conditional job offer had been made, and the hiring process was moving forward. • The Department's organization was now in four divisions managed by three lieutenants, and communications operations were managed within LOCOM. • There were currently a few vacancies in the department, but candidates were in the hiring pipeline. Because training took approximately one year, new hires did not count toward staffing until they were fully trained and able to operate independently. Retention continued to present a challenge, and the department was exploring ways to encourage employees to remain with the City while also creating opportunities for officers to gain experience. One promotion was planned, and due to retention challenges, the department had initiated external recruitment for detective positions, which was not common practice. Captain Simon presented the Council Report via PowerPoint and provided information on the number of dispatch calls, police incidents, calls for service and traffic violations. The presentation City Council Regular Meeting Minutes Page 10 of 14 April 15, 2025 reviewed the 2024 Lake Oswego Statistical Transparency of Policing (STOP) Report, a required annual report to the State that collected certain demographic data for discretionary stops; provided in-depth information about how and when the Lake Oswego Police Department had used force over the past year. In 2023, the Department had modified its data collection to examine the difference between display of force and actual force that was used or pointed at someone. Chief Burke commented that Lake Oswego's Police Department tended to overreport its use of force because it separated out display as well as the actual application. Moving forward, displays of force would be identified as opportunities for de-escalation. When a weapon was displayed but not used, the Department viewed that as a successful outcome and intended to document those instances as they occurred. Captain Simon resumed the presentation, reviewing new data that reviewed the circumstances of incidents that required the display of force, the number and type of complaints received in 2024, and use of the Department's behavior Health Specialist. Chief Burke concluded the presentation with a review of overdose statistics. Though the reduction in non-fatal overdoses could be due to the naloxone programs, he was concerned that there were reduced reporting of overdoses due to the presence of naloxone in homes and the City which the City may not receive calls for service for. Mayor Buck asked how the City ensured the productivity of officers on patrol. Chief Burke responded there were many ways to measure officer productivity and the officer's daily work was fairly autonomous, though supervisors did meet with them regularly. The Department reviewed data such as calls for service, self-initiated activity, traffic stops, citations issued, reports written, and how long officers remained in specific locations. There were also important intangibles, such as community contacts that built trust but did not always appear as measurable activity. The Department aimed to shift the focus from simply driving through neighborhoods to driving in neighborhoods and opportunities to make community contact that built trust. Councilors Mboup and Afghan thanked the Police Department for their work. 10.2 "20 is Plenty" Speed Signing Overview and Implementation. Mr. Farley reviewed the Council Report via PowerPoint, reviewing the program's background and legal framework for speed limits, known effects of a 20 miles per hour speed limit, local data, and implementation measures and costs. The City's Transportation Advisory Board had suggested that the City consider marking residential arterials and neighborhood collectors with the lower limit, but the Board was undecided if the program would be worth the cost since it was difficult to measure success. The Council was asked for feedback on whether to sign both residential arterials and neighborhood collectors at the lower limit. Staff responded to questions from Councilors as follows: • A serious injury was defined as one requiring an ambulance and involving broken bones or incapacitation. A minor injury, while it might also result in an ambulance being called, did not involve incapacitation or loss of consciousness and was not expected to result in long-term health effects. City Council Regular Meeting Minutes Page 11 of 14 April 15, 2025 • Goodall was a neighborhood collector whose speed limit was 25. • The functional classification of those roadways had been established some time ago. Some had 11-foot travel lanes, resulting in a total roadway width of 22 feet. The typical design standard for a neighborhood collector included 12-foot travel lanes. In some cases, a bike lane could be incorporated, along with sidewalks and green space. The ultimate design goal was to provide approximately 60 feet of right-of-way. • City Manager Bennett clarified that the $145,000 needed to fund the program would come from the Street Fund. The street fund was limited and the City had millions of dollars in unfunded capital projects. It was ultimately a matter of Council priorities. • Captain Simon stated that the Department would approach enforcement as it did with other issues. Officers would be directed to be proactive where possible, consistent with the Department's current messaging. The same guidance would be given to the traffic unit, which typically responded to complaints. Where possible, officers would focus on educating the public and when education was not effective, enforcement would follow. Tools like the speed trailer would be used to gather data and share information with the community. In most enforcement contacts, the individuals involved lived in the area, making education especially important. Councilor Wendland said the TAB was hesitant to share an opinion because it did not know if it had the money to implement the program and some members did not think there would be a change in behavior based on the statistics presented. Mr. Farley agreed the data showed mixed results and the greatest benefit was shown in bringing down the speed of people driving more than 10 miles per hour over the speed limit. Councilors noted that roadway classifications based on traffic volume did not always reflect actual conditions or user experience. They agreed that reducing speed was important, especially for children and other pedestrians. They supported an education-based approach and believed the investment was worthwhile, as the City could not build pathways everywhere, but lowering speeds would help make streets safer and more accessible. Councilors expressed support for signing residential arterials and neighborhood collectors. Mayor Buck inquired about whether Oregon had a move over law since drivers on some roads, such as Iron Mountain, did not move for pedestrians. City Manager Bennett replied that there was a separated facility on Iron Mountain, so the driver did not have to move over but drivers did have to give three feet when passing a bicyclist or pedestrian. Mayor Buck asked if the blue "Neighborhood Traffic Only" signs would be converted. City Manager Bennett said that as the signs need to be replaced, the City should not replace them, but there needed to be discussion with the neighborhoods before action was taken. The signs were not very welcoming and had no regulatory force, while the 20 mph would have regulatory force. The City should focus on places where it could help people to be good neighbors and produce tangible results. The neighborhood traffic signs were meant to prevent drivers from cutting through neighborhoods, and the lower speed would accomplish the same since those who did cut through neighborhoods would find it inconvenient. City Council Regular Meeting Minutes Page 12 of 14 April 15, 2025 Director Rooney clarified that about 450 new signs, and she did not think she could guarantee those would be in place by the start of the school year because it would involve a lot of manpower and Staff effort. Staff needed to come up with a timeline that included education and outreach. City Manager Bennett added that perhaps the City could post the signs by neighborhood and general area, but Staff would need to discuss priority area and a communication plan. Director Rooney said the Staff would come up with a strategy and bring that back when the Ordinance was brought before Council in May. 11. INFORMATION FROM COUNCIL Councilor Verdick recognized the Library Advisory Board and noted that the youth members had been conducting a survey to gather feedback from high school and junior high students about their library and their needs. The survey had already received 350 to 400 responses. 12. REPORTS OF OFFICERS City Manager Bennett said that this afternoon the City had issued some park rules for the steps which had been emailed to Councilors and would go to the media later today. She reviewed the new rules, noting that some definitions had been added and the existing rule that used to apply to Sundeleaf to only apply to Sundeleaf and Headley. The rules would be posted on the website that night, followed by outreach to Lake Corporation, the State of Oregon, and other parties. The City would sign the park, and the signs should be up by the end of the week. Questions from Councilors regarding new rules and park closures were addressed by Staff as follows: • Director Anderholm clarified that the City brought in portable A-frames to cite that the areas were closed and reference the resolution or rule that allowed the City to do so, including the purpose and time. The ranger program and partners in the police department made everyone aware that the areas were closed for that purpose and for that time period. • City Manager Bennett said those who were going to swim were expected to have a swim buoy. The City was directing people back to the Marine Board to determine what kind of registration or permit they needed for boats or watercraft. • Director Anderholm said the signs would be larger than the temporary Marine Board sign. Now that the rules were adopted, the City would post a temporary sign with bullet points listing the rules for entering the park. The Department was ordering permanent signs and would adjust the text on the existing Marine Board sign so it would be consistent with other park rule signs. • City Manager Bennett said most of the feedback focused on the behavior of people fishing on the lake, which was more concerning than activity at the launch point. The City was working with the Marine Board, Fish and Wildlife, the Sheriff's Office, and Lake Corporation to address behavior on the lake, some of which could be regulated and some of which could not. The most common complaint was people fishing very close to, or underneath, someone's house. • City Manager Bennett said that if someone observed a trolling motor on the lake, they should call the non-emergency number. The City would send someone to Millennium Plaza Park to speak with the operator once they came out of the water, since they could not be approached City Council Regular Meeting Minutes Page 13 of 14 April 15, 2025 while on the lake. The City had not yet conducted outreach to people who were fishing but could ask them about the equipment they were using and why. During the trial, the conversation was about stand-up paddleboarding, swimming, and kayaking, not fishing. • Director Anderholm said that when discussing motorized equipment, the Marine Board did not define a trolling motor as a motor. Their definition referred specifically to an internal combustion motor. From a parks rule perspective, the issue was that about 28 feet from the top of the stairs, there was an interactive fountain that children were encouraged to use, and from a safety standpoint, the City did not want to allow the introduction of a motorized blade in that area, regardless of type. Trolling motors were designed for easy removal but easily removable and could be stored in a vehicle. • City Manager Bennett said that the City could not address concerns about motors and invasive species, but it could address motors in terms of access to the lake from the steps. • Attorney Osoinach said the definition of motorboat was taken directly from state law and included trolling motors, regardless of whether they were intact or operational.The City framed the issue as a motorboat being a boat plus a motor. The regulations were consistent with state law, which prohibited anyone from taking a boat and a trolling motor through the City's access point. Many members of the public were likely unaware of this so the City would focus on education. The City had not expanded on state law. A motorboat included a trolling motor when it was with a boat. State regulations were most concerned with motorized boats because motors could retain liquid and potentially convey invasive aquatic species. • City Manager Bennett said that allowable watercraft on the lake included kayaks, stand-up paddleboards, canoes, and Coast Guard-approved inflatables. All watercraft had to be 18 feet or less, require state permits, and be propelled only with an oar. The goal was to be objectively reasonable. Staff were working on an operational plan, which would include staffing and other components, and an informational campaign would also be needed, but this step needed to happen first under the resolution. When staff reports back in September, there would be an opportunity to share what worked over the summer. 13. ADJOURNMENT Mayor Buck adjourned the City Council meeting at 6:40 p.m. Respectfully submitted, Kim Vermillion, Interim City Recorder Approved by the City Council on July 1, 2025. Joseph M. Buck, Mayor City Council Regular Meeting Minutes Page 14 of 14 April 15, 2025 ATTACHMENT 2 ti,' O CITY COUNCIL REGULAR MEETING MINUTES m-- O May 6, 2025 1. CALL TO ORDER Mayor Buck called the regular City Council meeting to order at 5:33 p.m. on Tuesday, May 6, 2025. The meeting was held both virtually via video conferencing and in-person in the Council Chamber at City Hall 380 A Avenue. 2. ROLL CALL Present: Mayor Buck, Councilors Verdick, Corrigan, Rapf, Afghan, Mboup, and Wendland. Staff Present: Megan Phelan, Assistant City Manager; Ellen Osoinach, City Attorney; Kari Linder, City Recorder; Kim Vermillion, Administrative Assistant; Erica Rooney, City Engineer I Public Works Director; Joel Kuhnke, Assistant Public Works Director; Jason Hoye, Water Conservation Specialist; Brad Stevens, Assistant Finance Director; Megan, Charbonneau, Stormwater Quality Coordinator; Will Farley, Assistant City Engineer Others Present: Tony Vandenberg, Executive Director of Project Management for the Lake Oswego School District 3. PLEDGE OF ALLEGIANCE Mayor Buck led the Council in the Pledge of Allegiance. 4. PRESENTATIONS 4.1 If I Were Mayor Contest Winners. Mayor Buck provided background on the If I Were Mayor contest, sponsored by the Oregon Mayors Association, and invited Anna Ketrenos, an outgoing member of the Lake Oswego Youth Leadership Council, to join him in recognizing the 2025 Lake Oswego winners as follows: • Poster Category for Grades 4-5: 1st Place: Cara Miles; 2nd Place: Lauren Klose; 3rd Place: Tesla Campbell; Honorable Mention: Finley Arata. • Essay Category for Grades 6-8: 1st Place, Sophia Han; 2nd Place: Lena Campbell; 3rd Place: Alex Wu; Honorable Mention: Everest Gao (not present). • First place winners, Cara Miles and Sophia Han, were entered into the statewide contest, where Cara won 1st place in the Poster Category and Sophia placed 2nd in the Essay City Council Regular Meeting Minutes Page 1 of 9 May 6, 2025 ATTACHMENT 2 Category. Cara earned a trip to the Oregon Mayors Association summer conference this August in Baker City. The Council recessed from 5:56 p.m. to 6:00 p.m. 4.2 Annual Meals on Wheels Donation to the City. Judy Hathaway, Lake Oswego Meal Network Advisory Board, provided an overview of Meals on Wheels in Lake Oswego, introduced members of the Board, and presented City Council with a check for $28,454, making up the difference between what the program earned and the actual costs incurred by the City for the program. 4.3 Asian American, Native Hawaiian and Pacific Islander Heritage Month. Mayor Buck proclaimed May as Asian American, Native Hawaiian, and Pacific Island Heritage Month in Lake Oswego. The signed proclamation was available on the City's website and a citywide celebration would be held at Millennium Plaza Park on Sunday, May 18 from 12 to 3 pm. 4.4 National Drinking Water Week. Mayor Buck proclaimed that May 4 through 10 was National Drinking Water Week. The signed proclamation and more information about water plant tours and conservation methods was available on the City's website. 5. PUBLIC COMMENT • Josh Jaster stated his son, Carter, was recently hit by a car at the A Avenue/5th Street intersection while riding his bike. Carter suffered no injuries, but Mr. Jaster remained concerned about safety at the intersection, which locals tried to avoid using. Mayor Buck thanked Mr. Jaster for bringing the issue to the Council's attention, noting the Council was sorry the incident had happened, but everyone was glad Carter was safe. 6. CONSENT AGENDA 6.1 Ordinance 2959, An Ordinance of the City Council of the City of Lake Oswego Amending LOC Chapter 50 (Community Development Code) for the Purpose of Clarifying and Updating Various Provisions (2024); and Adopting Findings (LU 24-0029). 6.2 Resolution 25-21, A Resolution of the City Council of the City of Lake Oswego Authorizing the Mayor to Execute Amendment No. 3 to the Subrecipient Agreement 24-006 between the City and Clackamas County Human Services Department's Social Services Division for Fiscal Years 2023-2027. 6.3 Donation Agreement for a Planned Gift to the Lake Oswego Public Library. END CONSENT City Council Regular Meeting Minutes Page 2 of 9 May 6, 2025 ATTACHMENT 2 Councilor Mboup moved to adopt the Consent Agenda. Councilor Wendland seconded the motion. A voice vote was held, and the motion passed, with Mayor Buck and Councilors Verdick, Corrigan, Rapf, Afghan, Mboup, and Wendland voting `aye', (7-0). 7. ITEMS REMOVED FROM CONSENT AGENDA No items were removed from the Consent Agenda. 8. CONSENT Agenda — Councilor Only 8.1 Resolution 25-22, A Resolution of the City Councilors of the City of Lake Oswego Approving the Appointment of an Alternate to the Library Advisory Board. Councilor Afghan moved to adopt Resolution 25-22. Councilor Corrigan seconded the motion. A voice vote was held, and the motion passed, with Councilors Verdick, Corrigan, Rapf, Afghan, Mboup and Wendland, voting `aye', and the Mayor abstained (6-0-1). 9. COUNCIL BUSINESS 9.1 Smart Water Meter Project Update. Director Rooney provided a brief background of the project's timeline and introduced members of the project team, noting that the Public Works Department had led the effort but partnered with the Utility Billing Department. Mr. Kuhnke presented the Council report via PowerPoint, providing the definition of smart water meters, also known as automated meter infrastructure (AMI), the benefits of smart meters, background and status of the project, project costs, expectations and experiences. Mr. Hoye continued the presentation with a summary of how customers could find and use consumption usage on the City's website, and examples of customer conservation cases including usage trends and irrigation data. Mr. Kuhnke added that under the old system, data that was manually collected could take a week or more to reach the City, which meant water leaks would not be caught for two to three weeks. The new system allowed the City or homeowner to detect issues instantaneously, reducing water loss. Staff addressed key questions from Councilors as noted: • Though 21,000 had signed up for online/bill pay access, the City only had 12,500 water accounts • The system had just begun accepting e-checks for autopay and monthly payments. Questions about American Express were directed to the Assistant Finance Director. The system's portal does notify account holders when a stored card was about to expire. City Council Regular Meeting Minutes Page 3 of 9 May 6, 2025 ATTACHMENT 2 • The City could monitor system performance, including battery life, any tampering, antenna disconnection, etc. The rollout began in a clockwise direction to help track battery life, which was expected to last 20 years. In the future, the City planned to replace devices systematically in smaller zones rather than through another full-city deployment. • The average household used about 8 CCFs per month, with one CCF equal to 748 gallons. During summer, usage increased to 20 CCFs due to irrigation. Smaller households without irrigation used about 3 CCFs per month. • One of the biggest advantages to the new system was customer service. Under the old system, customers were only given the meter reading from the beginning and end of the month, with no detail in between. With the new system, the City had more information to help customers understand when water was used and where it went. • The City had a leak adjustment program that covered up to two months of excess use. Customers submitted an application and proof of repair, such as a receipt or invoice. The City compared the current year's usage to the prior year and split the difference. All excess consumption was marked down to the lowest tier, so most customers paid about 75 percent of the actual use. • The City had previously contracted with a company to do manual meter reading. That company was the only company in the area to do the work and served multiple cities. Councilors commented that they liked the new system, and that the old meters were not replaced out of a desire for the latest technology but because many of the water meters needed replaced. 10. PUBLIC HEARING 10.1 Resolution 25-20, A Resolution of the City Council of the City of Lake Oswego, Acting as the Lake Oswego Public Contracting Review Board Pursuant to ORS 279A.060, Adopting Findings and Approval for a Special Procurement for Professional Services, and Exempting the Contract from Competitive Solicitation in Order to Negotiate a Professional Services Contract with Brown and Caldwell, LLC. Attorney Osoinach reviewed the hearing procedures and asked if any Councilor wished to declare a financial conflict of interest. None were heard. Director Rooney introduced the topic and noted that special procurement for professional services was occasionally used when continuity with past work was essential. The stormwater permit was a long-standing program in which the City had participated as a co-permittee with other regional agencies, and now the same consultant needed to be used for efficiency and the reasons outlined in the Council report. Ms. Charbonneau presented the Council report via PowerPoint, providing an overview and background on the NPDES MS4 Phase I Permit Renewal, the specific type of stormwater permit held by Lake Oswego. The presentation reviewed key dates in the permit process and explained that the special procurement would allow the City to retain Brown and Caldwell, the firm that completed the previous application and already had the necessary templates and data. Brown and Caldwell were also working with the City's co-permittees under the Clackamas permit and with the Association of Clean Water Administrators. Using the same firm would provide continuity, City Council Regular Meeting Minutes Page 4 of 9 May 6, 2025 ATTACHMENT 2 allow for regional coordination, and result in substantial cost savings. Staff recommended Council approve Resolution 25-20. Mayor Buck opened the public hearing, confirmed there was no public testimony, and closed the public hearing. Councilor Wendland moved to adopt Resolution 25-20. Councilor Verdick seconded the motion. A voice vote was held, and the motion passed, with Mayor Buck and Councilors Verdick, Corrigan, Rapf, Afghan, Mboup, and Wendland voting `aye', (7-0). 11. STUDY SESSION 11.1 Transportation Advisory Board Priority Pathways Group 3. Director Rooney introduced the topic, noting it addressed one of Council's goals to develop and build more pathways throughout the city. While the Transportation Advisory Board (TAB) had previously served as the conduit through which the City prioritized pathway projects, in this round of projects, Staff sought Council's feedback on TAB's recommendation and Staff's alternative recommendations as well as direction on finalizing the Capital Improvement Plan (CIP) proposal ahead of the upcoming Budget Committee meeting on Thursday. Mr. Farley reviewed the Council report via PowerPoint, providing background information on the pathway program, details on several pathway projects, and TAB's latest prioritization recommendations. Staff supported TAB's recommendation for improvements on Goodall and Bryant, but had concerns regarding impact, jurisdiction, and benefit surrounding the projects on Atwater and O'Brien. Staff reviewed two alternative projects to pursue in lieu of those on Atwater and O'Brien as noted: • Alternative 1 would construct a pathway on Fernwood Drive between South Shore Boulevard or Green Tree and Tree Top Lane. The project would connect to the pathway planned for construction in the summer of 2025 on Tree Top and would provide a walkable route for many areas to reach Lake Ridge High School, which often had issues accommodating student parking. • Alternative 2 would construct a pathway in cooperation with Lake Oswego School District on McEwan Road between Kristi Way and 65th Avenue which would help connect many residents to River Grove Elementary. Staff sought Council's direction on whether to pursue TAB's recommendation to prioritize Atwater Road and O'Brien Street, or to focus on one of the two alternatives presented: Fernwood Drive, or a partnership with the Lake Oswego School District on the project along McEwan Road. Mr. Farley noted that the recommended improvements for three segments of Goodall Road, which he highlighted, would cost approximately $1.1 million, not the $2.1 million listed in the Council report. Mr. Vandenberg clarified that the School District estimated the total cost of the McEwan Road project was $1,000,000. The District had already committed approximately $150,000 for the City Council Regular Meeting Minutes Page 5 of 9 May 6, 2025 ATTACHMENT 2 design, site investigation and so forth. It planned an additional $200,000 contribution towards the project at this time. Anything beyond that contribution would require that he return to the School Board for final approval. • He noted his interest in the McEwan Road pathway stemmed from its connection to the recently completed River Grove Elementary School, which opened to students earlier this year. During the design and construction phases of the recently completed River Grove Elementary School, many nearby residents, parents, and students identified the pathway as a critical need for the school and surrounding community. The school served students from the Lake Oswego School District, the Cities of Lake Oswego and Rivergrove, and other areas. Pathway connectivity through the site had been determined during planning and was part of the project's approval. Improvements had already been made to the pathway in front of the school, including significant upgrades connecting it to Pilkington Road. A new design had been developed for a pathway extension to 65th Avenue along McEwan Road, which would complete the sidewalk along the entire frontage and provide a major improvement. Mr. Farley, Director Rooney, and Mr. Vandenberg responded to questions from Councilors as follows: • McEwan Road was classified as a local street, so it did not score as highly as neighborhood collectors, major collectors, or arterials. Its close proximity to the elementary school gave it the most points, as schools were the highest priority in the scoring criteria. The pathway would not complete a gap in the existing system; while Lakeview Boulevard had some sidewalk coverage, the side streets did not, though a pathway did connect to McEwan. The project was not included in the Transportation System Plan (TSP). Because TAB was charged with reviewing the 43 TSP projects, it had not originally considered McEwan. The project was only scored after it was raised during TAB discussions. • The cost estimated for McEwan reflected the fact that McEwan was relatively flat, but there were stormwater and tree impacts. Many of the easy projects identified in the TSP had been built. • The estimated total cost of the McEwan project was $1 million, but the District had not yet received a detailed estimate. The $1 million was probably a true estimate but it could be a bit more. • Staff had relayed concerns to TAB about Atwater Road being located within Clackamas County. Staff and TAB also discussed that O'Brien Street was a short segment in an area unlikely to serve many Lake Oswego residents and already had a stairway at the site. However, a few TAB members felt that since they had recommended the higher-cost projects of Goodall Road and Bryant Road, a smaller set of projects should also be brought forward. • TAB had not included the McEwan Road option in its previous recommendations because it was not listed in the Transportation System Plan (TSP), and TAB had focused on prioritizing projects from the 43 identified in the TSP. • The District's funds for the McEwan Road project would come from the 2021 bond program, which included a component for safety and security. Additional funding remained in the River Grove Elementary School project budget that had been set aside for a project of this nature. City Council Regular Meeting Minutes Page 6 of 9 May 6, 2025 ATTACHMENT 2 • The City took over maintenance responsibility of McEwan Road in 2012 to clarify responsibilities such as striping. The road had a complicated jurisdictional history involving transfers with Clackamas County, and annexations in the area had resulted in a checkerboard pattern. Some sections of the road had not been annexed, so coordination with the County was still required. The complexity was one reason the project had not been included in the TSP, though many residents had since requested its inclusion. Whether funding for a pathway could be justified when the jurisdiction was complex was a question for Council Mayor Buck commented that a pathway on McEwan Road was difficult politically, but the partnership with the School District made sense given that it served both unincorporated residents and Lake Oswego residents. The District was participating in the project, and the students attending the school came from both areas. The project served the broader community and aligned with the purpose of the bond. Without the District's partnership, it likely would not have been pursued. Councilor Wendland suggested that if the School District could provide half the funds for the McEwan project, he would be willing to support it because the City would be spending money on its citizens in partnership with the District. He agreed with Staff's recommendation against Atwater and O'Brien. Mr. Farley clarified that Staff had not reach out to the owners of the two properties impacted by the O'Brien project. Mayor Buck stated that the Goodall and McEwan projects provided safe pathways to school and would be used by children on a daily basis. He asked why people did not use Bryant. Mr. Farley replied that there was a retaining wall and two properties on the east side of Bryant and the City wanted to accommodate a full five-foot sidewalk to get pedestrian separation from traffic. It would be difficult to do on the east side due to property impacts. There was only one property on the west side, but the pathway would have to be cut into a hill, and a retaining wall might be needed. Councilor Corrigan asked if the pathway on McEwan could be justified by the number of properties expected to annex in the future. Director Rooney stated that, in her opinion, annexations along McEwan Road were unlikely to happen soon. The area lacked nearby sewer facilities, and properties were on septic systems with no expectation of being required to connect. While the City had annexed properties on the fringe of unincorporated areas elsewhere, nothing had changed along McEwan in the past 16 years, and no annexations were expected along that frontage in the near future. Mayor Buck asked whether the City had the budget this year to complete Goodall Road, Bryant Road, and McEwan Road as a set. Director Rooney responded the City would need to stagger the projects due to the overall cost. Staff sought Council's direction on prioritization so the projects could be incorporated into the CIP funding strategy. The first two years would be funded based on available resources, while the following four years would be based on projected revenue in the Street Fund. McEwan Road should likely be treated as a standalone project due to its unique implementation and construction challenges, whereas Goodall and Bryant could be combined under a single contract. The timing may need to be adjusted, but the priority order would guide the planning. City Council Regular Meeting Minutes Page 7 of 9 May 6, 2025 ATTACHMENT 2 Mayor Buck inquired whether the School Board could communicate with the City a firmer commitment in terms of what funds it would be able to commit to constructing a McEwan pathway. The overall estimate was rough, but the City should know the upper amount the Board would be able to put towards the project. Mr. Vandenberg said he would bring it forward to the Board and share the response with Staff. Councilor Verdick asked whether TAB had discussed the Fernwood Alternative. Mr. Farley responded the recommendation had been brought to TAB, but they were looking for lower cost projects that would align with the amount awarded to pathways in the last biennium. Councilor Verdick asked for Staff's perspective on the use of Fernwood and Bryant by kids. Mr. Farley replied that Fernwood provided a good connection to the future Treetop Lane and the Lake Oswego Recreation and Aquatic (LORAC). The sentiment on Bryant was that providing connectivity set the City up to provide connectivity to the shopping center and down to Lakeview where there was already a sidewalk to the west. Multiple Councilors expressed a preference for prioritizing the McEwan and Fernwood projects over Atwater and O'Brien since the former projects both provided a safe route to schools. Mayor Buck asked Councilors to discuss the prioritization of the Fernwood and Bryant projects. Councilors discussed the prioritization and current pathways along the route to the LORAC. Mr. Farley noted Lakeview Boulevard between South Shore Boulevard and Bryant Road was not on the list for school pathways. Bryant Road had been included because the scoring considered the entire segment from Boones Ferry Road to Childs Road. Providing connectivity from Royce Way to Jean Road placed it close to the school, which contributed to its high proximity score. The segment under consideration was proposed for construction because of the difficulty in navigating the hill in that area. Councilors agreed that the Bryant project should be prioritized over the Fernwood project. The Atwater project could be completed down the road. Director Rooney Director Rooney stated that Atwater Road tended to annex more frequently than other areas because the properties were large, and frontage improvements were required when they were redeveloped. On the east end, within the last four or five years, the City had secured some frontage improvements, including a segment of pathway and a stormwater facility. Progress then paused while the City awaited additional redevelopment. Continued improvements were more likely on Atwater than on McEwan Road due to ongoing redevelopment activity in that area. Mr. Farley commented that the City had a request to fill in a gap on Lakeview and Pilkington. There was possible development on that corner which may require frontage improvement, or it could be fit into another project. With a project like Bryant, the City would not leave a gap there. Director Rooney confirmed the Council's preferred prioritization was Goodall, Bryant, and McEwan. Mayor Buck asked how projects would be prioritized going forward now that the TAB had been disbanded. Mr. Farley said TAB had completed its goal of prioritizing 43 projects. Further prioritization would be brought before Council. City Council Regular Meeting Minutes Page 8 of 9 May 6, 2025 ATTACHMENT 2 12. INFORMATION FROM COUNCIL Councilor Afghan said the 50+ Advisory board had been sunset. In July, the new Community Resilience and Health Advisory Board would begin. He had received positive feedback on LORAC which provided many good things for residents in a beautiful building. Councilor Wendland noted that the Chamber's wine walk in Lake Grove was this Saturday. Councilor Verdick commented that LO Reads had wrapped up, and she had received many positive comments on this year's programming. Mayor Buck provided updates from regional discussions. At JPACT, the first phase of the 1-5 Rose Quarter Corridor project was moving forward. Construction would begin on transition and merging lanes to improve safety. Metro was conducting a community connector study in an effort to incorporate the program into the 2028 Regional Transportation Plan, which could potentially be adopted into the Lake Oswego Transportation Plan update. TriMet had expressed concerns about funding. Metro's Future Vision Commission and Library Task Force were also active. Lake Oswego Library Director Kelly had been selected to serve on the County's Library Task Force as the Urban City Library Director representative. Northwest Housing Alternatives hosted the 49th Annual Lake Run on Saturday, which was a well-attended event. 13. REPORTS OF OFFICERS Ms. Phelan thanked the Councilors who attended the ribbon cutting at LORAC and acknowledged that every available Parks and Recreation Staff member had been present. Significant resources had been dedicated to making the event a success. The recreation side of the facility, including the weight room, gym, and fitness room, was now open, as was the golf course. 14. ADJOURNMENT Mayor Buck adjourned the City Council meeting at 7:50 p.m. Respectfully submitted, Kim Vermillion, Interim City Recorder Approved by the City Council on July 1, 2025. Joseph M. Buck, Mayor City Council Regular Meeting Minutes Page 9 of 9 May 6, 2025 ATTACHMENT 3 t,AKE O O T4_ CITY COUNCIL REGULAR MEETING MINUTES V J O May 20, 2025 OREGO� 1. CALL TO ORDER Mayor Buck called the regular City Council meeting to order at 3:01 p.m. on Tuesday, May 20, 2025. The meeting was held both virtually via video conferencing and in-person in the Council Chamber at City Hall 380 A Avenue. 2. ROLL CALL Present: Mayor Buck, Councilors Rapf, Afghan (via video conferencing), Mboup, Wendland, and Verdick. Councilor Corrigan was excused. Staff Present: Martha Bennett, City Manager; Ellen Osoinach, City Attorney; Kari Linder, City Recorder; Paul Espe, Associate Planner; Kyra Haggart, Project Manager; Ivan Anderholm, PARKS Director; Madison Thesing, Deputy City Manager. Others Present: Matt Hastie, Senior Project Manager with MIG; Lauren Scott, Senior Project Associate with MIG; Jessa Miller, Planning Associate with MIG (via video conferencing) 3. PLEDGE OF ALLEGIANCE Mayor Buck led the Council in the Pledge of Allegiance. 4. PROCLAMATIONS 4.1 Pride Month. Mayor Buck proclaimed that June was Pride Month in Lake Oswego. LO For Love would host the second annual Pride Month Event on June 1 from 12 to 4 pm at Millenium Plaza Park. More information and the signed proclamation was available on the City's website. 4.1a Jewish American Heritage Month. Mayor Buck proclaimed that May was Jewish American Heritage Month in Lake Oswego. The signed proclamation was available on the City's website, which now included a dedicated page with more information about the month. 4.2 National Public Works Week. ATTACHMENT 3 Mayor Buck proclaimed that May 18 through 24 was National Public Works Week. The signed proclamation was available on the City's website. Community members were called upon to join in activities, events, and ceremonies honoring Lake Oswego's Public Works professionals. 4.3 Historic Preservation Month and Awards. Mayor Buck proclaimed that May was Historic Preservation Month in Lake Oswego and thanked community members who volunteered on the Historic Resources Advisory Board (HRAB) and other boards and commissions who contributed to the preservation of the city's historic and architectural past. Mr. Espe presented a report via PowerPoint, summarizing the background and intent of Historic Preservation Month, reviewing Lake Oswego's Historic Preservation and Historic Education grants, and providing information on new initiatives showcasing individual Lake Oswego historic properties via YouTube each week and projects to archive the City's written history. The presentation summarized the Jeannie McGuire Lifetime Achievement Award and introduced its 2025 recipient, Caroline Glad, who was being honored for her work with the Oswego Heritage Council to organize and catalog the City's extensive historical collection. Meg Matsushima, Chair, HRAB, presented Caroline Glad with the Jeannie McGuire Lifetime Achievement award. 5. PUBLIC COMMENT • Gail Toft-Vizzini, Board Member, Lake Oswego Preservation Society, provided information on a recently completed historic preservation project that digitized and transcribed four volumes of Oregon Iron and Steel Company meeting minutes, beginning with the original handwritten book from 1882. The books were currently on display at the Ironworkers Cottage and Museum. • Alexis Barton Castro, Executive Director, Tryon Creek Watershed Council, updated the City Council on a project that would either expand a merged watershed council or form a network model to cover currently unrepresented areas from Forest Park through OHSU, downtown Portland, and the Oregon Zoo, down to West Linn and Wilsonville. The group submitted a capital project request to the state legislature with support from the City of Lake Oswego, Portland City Councilor Oliva Clark, and the Mayors of West Linn and Wilsonville. • Jay Hamachek raised concerns about Park Plan 2040, saying it failed to address water enforcement on Oswego Lake. The City had not provided funding or a method for enforcing Oregon State Marine Board rules. There should be consistent enforcement of safety rules for all lake users. Lake Corp members and easement holders could be removed for violations, while visitors were not subject to the same rules. He also noted that minutes from the Park Board's March meeting had not yet been published. • Ben Adams asked the City to halt the commissioning of a second cell tower array being installed at Lakeridge High School, located approximately 100 feet from his historic home at Stafford Road and Overlook. He raised concerns about the lack of notice, potential safety risks, and the visual and structural impact on his 1881 residence and family and requested time to work with the City and School District to assess the project's impact. • Sarah Ellison, who served on the Parks Board but was speaking on her own behalf, encouraged the Council to adopt amendments to the Parks 2040 Plan previously ATTACHMENT 3 recommended by the Parks Board, including language reflecting public support for improved lake access. 6. CONSENT AGENDA 6.1 Approval of Meeting Minutes. March 31, 2025, Draft Special Meeting Minutes April 1, 2025, Draft Regular Meeting Minutes 6.2 Library's Strategic Plan Progress Report for 2024. END CONSENT Councilor Mboup moved to adopt the Consent Agenda. Councilor Wendland seconded the motion. A voice vote was held, and the motion passed, with Mayor Buck and Councilors Rapf, Afghan, Mboup, Wendland, and Verdick voting `aye', (6-0). 7. ITEMS REMOVED FROM CONSENT AGENDA No items were removed from the Consent Agenda. 8. COUNCIL BUSINESS 8.1 Resolution 25-24, A Resolution of the City Council of the City of Lake Oswego Adopting the Parks Plan 2040. Ms. Haggart introduced the project team and thanked City staff, the Community Advisory Committee (CAC), the Parks Board, and thousands of community members who contributed to Park Plan 2040. The Plan was a long-range, non-binding document that did not commit the City to implementing any specific projects. It included near-term actions, long-term planning suggestions, and tools to help adapt and prioritize in a way that ensured the City was moving in the right direction. Mr. Hastie presented the report via PowerPoint, reviewing the purpose and structure of Parks Plan 2040, the five components of the planning process, community engagement efforts, and Phase 1 of the project,which assessed the City's existing park system and planning context which took into account current and future demographics. Ms. Scott continued the presentation, reviewing the seven key goals, updated vision, and new strategic framework, as well as the comprehensive needs assessment that informed the system- wide and site-specific recommendations. The presentation also reviewed the capital improvement projects (CIP), associated cost estimates, project prioritization, and the implementation timeframe. Current funding sources likely would not cover all of the projects identified in the CIP, so the Plan outlined a funding toolbox that could be evaluated for fit and feasibility as needs and ATTACHMENT 3 priorities were addressed and projects moved forward. The Plan included information about the advantages, limitations, and current application of each funding strategy. Ms. Haggart stated she had failed to close the loop on a recommendation Mayor Buck made at the last meeting regarding one of the strategic recommendations for Hallmark, which was one of the implementation strategies listed. The strategy generally related to creating more community space on the west side of Lake Oswego, so Staff had drafted alternative language for the recommendation that was not included in the packet. The language would be reviewed when Council discussed other alternatives. There would be time to incorporate amended language into the Plan before it appeared on the June 3 Consent Agenda. Ms. Scott concluded the presentation, reviewing the 14 implementation strategies identified in the Plan alongside the projects in the CIP list and summarizing the Plan's development and the changes made since the public review draft was posted. Ms. Haggart reviewed next steps and stated that if Council tentatively adopted the resolution before it this evening, Staff would bring a final draft to the June 3 Consent Agenda for adoption. She summarized the suggested amendments brought forward by the Parks, Recreation, and Natural Resources Advisory Board, noting that Attachment 4 to the memo in Council's packet showed the language in underline and strikeout format. Staff sought Council direction on whether and how to include the suggested amendments in the draft. Mayor Buck stated that the Hallmark Street concept had evolved and that there were conversations about a potential partnership with the School District to create a gathering space on the west side. He preferred broader language about gathering spaces, which aligned with recommendations for more parks on the southwest side, where two planned housing projects would bring more children and increased need for facilities. Ms. Haggart stated that Farmers Market and event staff had advocated for including language around Hallmark because the current configuration made setup and takedown challenging. Improvements would support the continued success of the Market if that space were used going forward. She offered alternative phrasing to incorporate the Mayor's comments: • "Consider physical improvements to Hallmark Drive and/or creation of a plaza or other community gathering space on the west side of Lake Oswego for continued success of the Lake Grove Farmers Market and other Lake Grove community events. This may include coordinating with the City's Engineering Department to encourage implementation of the Hallmark Festival Street design project, TSP Project 152,which included bollards, street trees, or other elements to separate the sidewalk and the roadway, wheel stops, special paving, and special landscaping. In recent years, Parks and Recreation had begun hosting the Lake Grove Farmers Market on Hallmark Drive, which had increased the need for those improvements. Alternatively, a new and improved space for the Lake Grove Farmers Market could be undertaken in coordination with a broader project to develop a new indoor/outdoor community and recreation space on the west side of Lake Oswego." Mayor Buck noted that Council had set a goal this year to be more intentional about visitor services and attracting more people to Lake Oswego. While the Plan included good ideas for making programming more visible and accessible, Council also wanted to connect park facilities to efforts that would specifically draw people to the community. He noted the growing business ATTACHMENT 3 around sports tourism and asked how the City could take advantage of that to bring visitors from both nearby and farther away to enjoy local amenities. He wanted to see that focus reflected in the Plan. Ms. Haggart did not think the report used the term sports tourism, but that could be put in. Councilor Mboup asked how the City would work to ensure equitable parks access. Ms. Haggart replied that in September 2024, Staff presented Council with a map-heavy presentation outlining the process that informed project prioritization. The project team identified gap areas, or parts of the City where residents lacked nearby access to essential services such as sports facilities, playgrounds, nature, and trails. These areas had little or no walkable access compared to other neighborhoods and were used to help prioritize the long-range capital improvement project list. Councilor Mboup asked if the plan took into account climate change or potential disasters. Ms. Haggart stated that the Plan was designed with enough flexibility to allow for response to new and urgent needs and the existing organization did not need to be followed strictly and could be adjusted. For example, wildfire prevention might become the highest priority, requiring the City to adapt its entire system. The Plan included a few strategic recommendations on climate resilience, such as using fire-resistant and low-water plantings, addressing the wildland-urban interface, and managing those areas. While the Plan did not go into detail on these topics, it referenced work already being done by the City's natural areas team. The Natural Areas Habitat Management Plan, adopted a few years ago, included strategies for managing wild and urban spaces to prepare for threats like the Emerald Ash Borer. Mr. Hastie added that when Ms. Scott reviewed the system wide goals incorporated into the Plan, one goal focused on creating a sustainable and resilient system. The strategies and policies under that goal supported that focus and included many of the elements Ms. Haggart referenced. Councilor Wendland asked about Appendix G for the fields, which he did not see in the presentation or his packet. He asked if it was included elsewhere. Ms. Haggart replied that it was included as a hyperlink because the full appendices totaled 900 pages. Councilor Wendland said the Plan lacked a summary on where the City stood with its fields and where the opportunities or voids may be. A summary would indicate the City was incorporating the concerns of citizens who complained of limited or no available time on athletic fields. Ms. Haggart said Staff undertook the study in Appendix G to affirm what was already in the Capital Improvement Plan. It focused on athletic fields, not courts, and found that one new rectangular field would be needed in the next five years to meet demand, which affirmed the need for Rassekh. The study also included recommendations on scheduling and data sharing, and Staff continued to work with the school district to coordinate use. One recommendation was to offer earlier evening time slots to younger age groups. The study found it was unlikely Lake Oswego would need more than one new field within the 15-year planning period, so the two fields proposed for Luscher were removed from the system plan, though they remained in the Luscher Area Master Plan and could be revisited in a future update. Councilor Wendland inquired whether the projected field needs were based on current schedules or demand. Ms. Haggart replied that it was a combination. The City provided the consultant with all currently scheduled data and surveyed local organizations about unmet demand, such as turning away participants or needing more field space. The study also considered future School District projects and demographic projections. ATTACHMENT 3 Mayor Buck commented that he appreciated the stated desire to reinvigorate the partnership with the School district on field space since anything to better facilitate connecting families and kids with fields was great. The plan was very well done and representative of community values. He reiterated the desire to see an economic development piece since the Parks Department did such good work in bringing in and connecting businesses to the community and with the youth entrepreneurship program. There were many ways in which parks helped introduce small businesses to the Lake Oswego community that would not otherwise happen, and it was a huge benefit of the city's parks system. Mayor Buck stated that the Plan was being finalized as the Court was reaching its decision regarding Oswego Lake. The City had to resolve jurisdictional issues with various partners, and it did not seem like the right time to include the suggested amendments related to Oswego Lake. He proposed that none of the alternatives be included for several reasons. He noted that the community, the Parks Board, the CAC, and all who engaged in the process had done a great job. The result was a strong Plan and good feedback from Council, and he suggested they leave it at that. Councilor Afghan asked if food trucks were considered in the Plan at all. Ms. Haggart replied that she did not believe food trucks were considered. Councilors agreed the plan incorporated feedback from the community and was the product of a long process. The amendments proposed were not the product of the same process and were not necessary. Councilor Wendland asked Director Anderholm if he felt that the Plan was executable with current Staff resources. Director Anderholm said he did feel the City was adequately covered. The Plan highlighted that as substantial new facilities are added, additional funds would be needed to operate and maintain them. Unlike the 2025 Plan, which included many projects but little about the resources required to support them, this Plan aimed to clearly address that need. Councilor Wendland stated that he did not want to set high expectations. City Manager Bennett said the Plan was like all other Master Plans. It included a project list that, while beyond the City's current reach, was important for updating SDC charges and provided a sense of magnitude to guide future decisions and tradeoffs among capital needs. The Plan was a vision, an aspiration, and a roadmap. It was not binding and would not result in Code or force Council budget decisions. Council understood the tradeoffs within parks and other municipal services, and priorities would be adjusted with each budget. Mayor Buck noted that additions to the system meant maintaining both active parks and preserved areas. The City had been putting the same amount into the Habitat Benefit Area for some time, while costs had risen and demands had increased. As the system expanded, maintenance remained a key consideration. City Manager Bennett confirmed that Council had directed Staff to revise the language for Hallmark Street to more broadly reflect the desire for a plaza or outdoor event space on the west side. Council also asked to include a summary of the athletic field study findings in the Plan and to add general policy statements about the role of parks in economic development. ATTACHMENT 3 Mayor Buck moved to tentatively adopt Resolution 25-24, and direct Staff to prepare a final version of the Parks Plan 2040 as amended by Council-approved alternative for adoption on June 3, 2025. Councilor Wendland seconded the motion. A voice vote was held, and the motion passed, with Mayor Buck and Councilors Rapf, Afghan, Mboup, Wendland, and Verdick voting `aye', (6-0). Council took a recess from 4:33 p.m. to 4:42 p.m. 8.2 Legislative Update. Ms. Thesing provided a summary of the status of the legislative session, the state's recent financial forecast, and an update on bills the City was following, as follows: • The Governor's Middle Housing Bill and the Shot Clock Bill remained in the Ways and Means Committee. The City opposed both and opposed further changes to the housing process. The Mayor was conducting outreach to Representative Nguyen following a recent amendment. • Senate Bill 916, related to striking employees, was still active. The City opposed the bill. No hearing was scheduled, but it was expected to move to the House floor. • The public safety drone bill, which the City supported, was advancing to the House. • Recreational Immunity had passed. The City supported the bill and would continue to monitor developments. • The transportation package had not yet been assigned a bill number. Mayor Buck stated that the City had worked aggressively to protect livability while supporting statewide goals for climate resilience, housing production, and healthy communities. The City had long advocated for Lake Oswego-specific solutions when responding to state-level changes. However, state law limited the City's ability to act independently or preserve prior Code provisions. When state law changed, the City was required to comply. Given time constraints, Staff would not pursue changes likely to be overturned within months. He encouraged residents frustrated by neighborhood development to direct their concerns to state legislators, as Council was not responsible for enacting the laws in question. 9. PUBLIC HEARING 9.1 Resolution 25-23, A Resolution of the City Council of the City of Lake Oswego, Adopting the Standards and Procedures to be Used in Hiring a Municipal Judge. City Attorney Osoinach reviewed the hearing procedures and asked if Councilors wished to declare any financial conflicts of interest. None were heard. Ms. Phelan presented the Council Report, summarizing the process by which the City would select a new municipal judge to replace Judge Sierra Brown, who had resigned effective June 25, 2025, following her appointment to the Clackamas County Circuit Court. The draft Resolution and job description were identical to those adopted by Council on March 5, 2024. The process would begin with advertising the position, followed by review of applications, Council interviews, and final deliberations in executive session. The selection process would preserve candidate ATTACHMENT 3 confidentiality to the fullest extent permitted under Oregon's Public Meetings and Public Records Laws. Interim coverage would be provided by on-call municipal judges until a new appointment was made. Staff responded to Councilor questions as follows: • Ms. Phelan stated that the Municipal Court had begun the transition to electronic records. While some improvements had been made, it was not clear whether the transition would be complete before Judge Brown's departure. The Council could include questions about electronic systems in the interview process for candidates. She noted that some of the on-call pro tem judges supported the transition and was confident it would continue. • City Attorney Osoinach noted that the City Attorney's office was committed to ensuring complaints and other materials were filed electronically and were providing oversight during the transition as a key partner in the process. • Ms. Phelan clarified that advertising for the municipal judge position would begin in late June and close by the end of the month. An executive session was planned for the July 1 Council meeting, with interviews to follow in July. Background checks would begin in August, and she was optimistic the appointment could be made in September. Mayor Buck stated he and City Manager Bennett were coordinating schedules so that there would be ample time during an executive session to discuss candidates. Mayor Buck opened the public hearing, confirmed there was no public testimony, and closed the public hearing. Councilor Verdick moved to adopt Resolution 25-23. Councilor Rapf seconded the motion. A voice vote was held, and the motion passed, with Mayor Buck and Councilors Rapf, Afghan, Mboup, Wendland, and Verdick voting `aye', (6-0). 10. INFORMATION FROM COUNCIL Councilor Verdick had the honor of giving out the awards to the Arbor Day art contest participants. She congratulated the artists again and thanked those involved for their efforts. Councilor Mboup noted that Sunday's Asian American Pacific Islander Festival was a beautiful event that acknowledged all City Councilors and included an outstanding keynote speaker as well as remarks from Representative Nguyen. Mayor Buck provided updates from around the region, noting that the Joint Policy Advisory Committee on Transportation (JPACT) continued to discuss Regional Flexible Funds Allocation (RFFA) projects. Congressional reauthorization of the Surface Transportation Reauthorization Fund was still needed because this fund had been part of the Bipartisan Infrastructure Law, which was expiring. The reauthorization was necessary to preserve funding streams for ongoing transportation projects. JPACT supported maintaining current funding levels for both special programs and existing formula funds, with a continued policy focus on the safety of all users. Smaller projects submitted by cities through their Regional Transportation Options Plans (RTOP) are now under review. Lake Oswego had consistently submitted a project for Lakeview Boulevard in the industrial area, but funds were limited. ATTACHMENT 3 • Metro had begun its Future Vision project and continued work on the Community Connector Study. The study was unfunded but acknowledged the importance of community connector transportation types. • Metro was also beginning work on a regional Housing Production Strategy(HPS), as required by House Bill 2003. Following the City's own HPS, Metro would review strategies across all jurisdictions and identify regional actions to support housing development and access. The process was being guided by an implementation work group with representatives from all 18 cities in the region. 11. REPORTS OF OFFICERS Ms. Phelan provided information about the event on Wednesday, May 21, to mark the reopening of the Willamette Shore Trolley. The full line had reopened following completion of capital improvements on the long trestle, which had been closed for several years. The work was completed by TriMet. Trolley service would resume Memorial Day weekend and operate Fridays and Saturdays for the general public, with tickets available for purchase. Thursday evening at 5:30 p.m., the City would host a suicide prevention and mental health forum in partnership with Clackamas County. The event, held in City Hall, would include resource tables from the Police Department, Fire Department, Adult Community Center, and Clackamas County. Formal presentations would begin at 6:00 p.m. with Mayor Buck serving as emcee and speakers from the Adult Community Center and the National Alliance on Mental Illness. The event was part of Mental Health Awareness Month. 12. ADJOURNMENT Mayor Buck adjourned the City Council meeting at 5:06 p.m. Respectfully submitted, Kim Vermillion, Interim City Recorder Approved by the City Council on July 1, 2025. Joseph M. Buck, Mayor 9.1 O F �s� COUNCIL REPORT CI CEGO� Subject: Ordinance 2958, Annexing property at 5450 Kenny Street (AN 25-0001) Meeting Date: July 1, 2025 Staff Member: Paul Espe, Associate Planner Report Date: June 11, 2025 Department: Planning and Building Services Action Required Advisory Board/Commission Recommendation ❑ Motion ❑ Approval ❑X Public Hearing ❑ Denial ❑X Ordinance ❑ None Forwarded ❑ Resolution ❑X Not Applicable ❑ Information Only Comments: This annexation is being processed as a ❑ Council Direction public hearing (not expedited decision) under Metro ❑ Consent Agenda Code 3.09.050(A-D). Staff Recommendation: Enact Ordinance 2958. Recommended Language for Motion: Move to enact Ordinance 2958. Project/ Issue Relates To: Annexation of residential property to the city. Issue before Council (Highlight Policy Question): ❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑X Not Applicable EXECUTIVE SUMMARY/BACKGROUND The proposed annexation is owner-initiated and will result in the addition of approximately 0.44 acres of residential land to the City. This Council Report describes the reasons for the annexation and provides basic background information. This annexation will result in property that will be zoned R-10 as designated in the Comprehensive Plan shown in Attachment A. The criteria for approving annexations and findings in support of this annexation are included in Attachment B of Exhibit A-1 (Ordinance 2958). Owner/Applicant: Dana Bennett and Darin Rouhier, Trustees of the Bennett Rouhier Trust, dated June 27, 2018/Jesse Davis, Pavilion Construction Respect. Excel'ence. Trust. Service, 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 srr3 y Vicin - e .72 yti° I �' i• • U Lakeridge •2 ! i x i c) Middle _{y __._ d -._._I U5j School Z- ° 3 E J I m I `� Kgnnvcro t ------- Proposed J ay Annexation i WI .l SW Kenny St ;5�_ and f hrush � Kenny St. (---"---3 I m �T1 �- I Fernhrook Cir "'" �N �' t SW Tualata Ct • L_T �/ ��rrr IN i anCper-St f ntook W W Timhergrove 511 m SUl �� I m 111 `ram* -- _.._e NjSilelz Ct 541+=Charlefon Ct f axwln t to Community �' 9a, - — .—+ •------ Yiantessori °f t- w lI School1..—_E }c. Wa ,oLuc ' — S 5VV Chinook CE LI' 'aad�uck�t �.._.-n _ . I I r--� r - _ i Location/Size: Southeast corner of Pilkington Road and Kenny Street, approximately 925 feet south of the intersection of Pilkington and Jean Roads/0.44 acres (19,166 square feet). Existing Land Use:The property (Tax Map/Lot 21E18DC05400) is vacant. The single-family dwelling was recently demolished through Clackamas County. Neighborhood: Rosewood Neighborhood Association Purpose of Annexation: Owner initiated annexation to connect to city sewer and develop the property. (Future development of the property is beyond the scope of this review). DISCUSSION Plan and Zone Designation: The subject property is currently under Clackamas County's jurisdiction and zoned Low-Density Residential R-10. It is designated R-10, Medium Density Residential on the City of Lake Oswego Comprehensive Plan Map and will be zoned R-10, pursuant to LOC 50.01.004.5.a-c. Development Potential: Based on the size and shape of the parcel, it cannot be further divided. However, it could be developed under the densities allowed under the middle housing standards. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 Statewide Goal 10 and Complete Neighborhoods and Housing Statewide Goal 10 Housing City Comprehensive Plan Complete Neighborhoods and Housing Chapter Statewide Planning Goal 10 (and the Complete Neighborhoods and Housing Goal in the City Comprehensive Plan) ensures the opportunity to provide adequate numbers of needed housing units, the efficient use of buildable land within urban growth boundaries, and to provide greater certainty in the development process so as to reduce housing costs. Staff has provided findings (Exhibit A-1, Attachment B) that the proposed annexation and designation of City R-10 zoning are consistent with the Comprehensive Plan and Map, and will help to meet the City's housing needs as identified by the Housing Needs Analysis (HNA). The proposal would provide the opportunity for needed housing as identified in the HNA, is consistent with the Comprehensive Plan, and therefore complies with Goal 10. (See Attachment B for the complete findings under Goal 10). Sewer and Water Service: Sanitary sewer service is available from an 8-inch collection line located in Pilkington Road along the site frontage that will be able to provide service to this site. (No sanitary sewer service is currently available on Kenny Street.) The City requires sanitary sewer extensions to be taken to the upstream property line when a property proposes to connect. In this case, the sewer will not be required to be extended to the east boundary of the site along Kenny Street because the City Wastewater Master Plan shows a future public main extension coming from the east and terminating near the east portion of this site, with a gap to Pilkington Road. Therefore, this site will be allowed to connect to the existing public sanitary sewer main located in Pilkington Road without being required to construct any public sewer main extension in Kenny Street. Note: The Engineering Staff has preliminarily commented by memo on the development standards that would apply. Water: The property is served by the Rivergrove Water District. There is a Rivergrove Water District water main located on both Pilkington Road and Kenny Street along the site frontage. The nearest existing fire hydrant is located across from the site on the southwest corner of Pilkington Road/Kenny Street. The City of Lake Oswego entered into an agreement with the Rivergrove Water District on February 8, 1984 for water services. The agreement stipulates that the District will continue to serve the property upon annexation if it is capable of delivering a minimum flow of 1500 gallons per minute with a 20 psi residual pressure during periods of peak domestic demand. The District is currently able to meet these demands. If upon further development, this level of service is not provided, then City water may need to be provided. Surface Water Management: Once the property is annexed, the territory will be subject to the City's stormwater management regulations. Any new development will be subject to these Respect. Excel'ence. Trust. Service, 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 4 provisions, which ensure that new development does not have an adverse effect on adjoining properties and does not overburden the City stormwater system. Service Districts: Upon annexation, the property will, by operation of ORS 222.520, be withdrawn from the Lake Grove Fire District#57 (per the July 2003 urban service agreement; no bonded debt) the Surface Water Management Agency of Clackamas County and the Clackamas County Enhanced Sheriff's Patrol District (no bonded debt) but will remain in the Lake Grove Park District (per the July 2003 urban service agreement), Rivergrove Water District (no bonded debt) and the Library District of Clackamas County (per the 2009 County IGA). Transportation:The City's Transportation System Plan (TSP) implements the multi-modal transportation system that will meet the needs of the city for a 20-year planning horizon. Pilkington Road is a Major Collector and is under the jurisdiction and permitting authority of the City of Lake Oswego. The nearest mass transit service is Tri-Met bus line 37, which operates between downtown Lake Oswego and the Tigard and Beaverton Transit Centers. Service can be accessed at the intersection of Pilkington and Jean Roads. The draft findings provided in Attachment B of Exhibit A-1 conclude that the proposed annexation complies with all applicable State statutes and Metro code requirements. Resolution 19-59: Policies Discouraging Destruction of Natural Resources and Significant Trees Prior to Annexation On March 6, 2025, staff visited the site and observed five large Douglas fir trees ranging from 32 inches in diameter to 45 inches in diameter that were removed from the property. These are identified on the site plan of the Tree Removal Certification Application (Exhibit D-1) as trees #11305, #11306, #11307, #11341 and 11342. Staff found that the Policies Discouraging Destruction of Natural Resources and Significant Trees Prior to Annexation (Resolution 19-59) may apply. The applicant states that trees#11228 and 11216 were removed in 1995 prior to the applicant's purchase of the property and Tree#11209 fell during a storm. The annexation policy was adopted by the City Council in 2004 and updated in 2019. It was developed to encourage property owners interested in applying for annexation to the City to preserve and protect natural resources and significant trees on their property. The City has a protection program for hundreds of acres of stream corridors, wetlands and tree groves within the City and its potential annexation area (LOC 50.05.010 and 50.07.004.8). More detailed information can be found in the Findings [Attachment B and Resolution 19-59 (Exhibit E-4)]. In order to evaluate the tree removal for compliance with the City's annexation policy, staff advised the applicant to submit a Type II County Tree Removal Certification application.This is a program offered by the city to residents in unincorporated Clackamas County within the City's Urban Growth Boundary to receive certification that tree removal complies with the City's annexation policy. It is a voluntary program and is not an actual permit issued by the City. Respect. Excel'ence. Trust. Service, 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 5 Findings The applicant's Type II County Tree Removal Certification application is included as Exhibit E-2, and staff's findings for the application is included as Exhibit E-3. Overall, staff finds that Type II Criteria 2 and 3 would have been met for the tree removal, but additional information is necessary to determine compliance with Criterion 1. This is because the applicant provided a generalized building envelope defined by the setbacks (outlined in blue in Exhibit E-2), instead of a specific development plan allowable under the base zone. Since the trees removed were not deemed significant under Criterion 3, meeting the requirements for Criterion 1 would likely have been feasible. Based on the limited tree removal, mainly confined to the building area on the site, and the retention of many other large firs on the site, it appears that the applicant's intent was to remove trees that would be affected by future development rather than to indiscriminately clear-cut the site or damage natural resources in violation of the annexation policy. If the Council decides to approve the annexation request, staff recommends that the applicant be required to mitigate the removal of the five trees by replanting at a minimum 1:1 ratio with a mix of native species of medium to large stature to complement the existing Douglas-firs and oaks on the site. All mitigation trees should be carefully planted to avoid conflicts with future development on the site. The Council has the following decision options: 1. Approve the annexation of the property and require no mitigation. 2. Approve the annexation of the property and require mitigation normally required in the Type II tree removal application by replanting at a minimum 1:1 ratio with a mix of native species prior to final building inspection for any future dwelling. All mitigation trees shall be carefully planted to avoid conflicts with future development on the site. 3. Delay annexation of the property for a period of three years and require replacement of the trees at a 3:1 ratio in accordance with the provisions in Resolution 19-59(4)(a-g) [Exhibit E-4].1 FISCAL IMPACT The estimated assessed value of the residential property is $175,438. The estimated tax revenue after the parcels are annexed is $454. RECOMMENDATION Approve AN 25-0001 (Ordinance 2958) under Option 2. 1 Note that the annexation policy should not be construed as preventing the Council from exercising its full discretionary authority in granting or denying petitions for annexation as otherwise permitted by Oregon law. Respect. Excel'erce. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 6 EXHIBITS A. Draft Ordinances A-1 Ordinance 2958 (Draft Annexation, 06/11/25) Attachment A: Map of Proposed Annexation, 02/12/25 Attachment B: Criteria, Findings, Conclusion, and Effective Date, 06/11/25 B. Minutes None. C. Staff Reports None. D. Graphics/Plans D-1 Applicant's site plan, 04/03/25. E. Written Materials E-1 Housing Needs Analysis 2023 (Oregon Statewide Planning Goal 10) Comprehensive Plan excerpt, 09/21/23 (due to size, use link below to view this exhibit) E-2 Application for Tree Removal Certification for Unincorporated Properties and Checklist E-3 County Type II Tree Removal Certification Review 04/21/25 E-4 Resolution 19-59 Amending Policies Discouraging Destruction of Natural Resources and Significant Trees Prior to Annexation LINK TO PUBLIC RECORDS FOLDER FOR THIS CASE https://www.ci.oswego.or.us/WebLink/Browse.aspx?id=2919942&repo=CityOfLakeOswego Respect. Excel'ence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY ORDINANCE 2958 AN ORDINANCE ANNEXING TO THE CITY OF LAKE OSWEGO ONE PARCEL CONSISTING OF 0.44 ACRES AT 5450 KENNY STREET; DECLARING CITY OF LAKE OSWEGO ZONING OF R-10, PURSUANT TO LOC 50.01.004.5(a-c); AND REMOVING THE TERRITORY FROM CERTAIN DISTRICTS (AN 25-0001). WHEREAS, annexation to the City of Lake Oswego of the territory shown in the map in Attachment "A" and described below, would constitute a contiguous boundary change under ORS 222.111, initiated by petition from the property owners as outlined in ORS 222.111(2); and, WHEREAS, the City has provided written notification of this annexation as required under ORS 222.120(3); and, WHEREAS, the City has received consent for the proposed annexation from all of the property owners and not less than 50 percent of the electors residing in the territory, as outlined in ORS 222.125; and, WHEREAS, the territory lies within the Lake Grove Fire District#57 district boundaries and the district has no bonded debt, and pursuant to the July 2003 urban service agreement between the City and the district the territory should be withdrawn from the district, the City elects ORS 222.520(2)(b), the territory shall be withdrawn from that district immediately upon approval of the annexation; and, WHEREAS, the territory lies within the Clackamas County Enhanced Sheriff's Patrol District boundaries and the district has no bonded debt, the City elects ORS 222.520(2)(b), and the territory shall be withdrawn from the district upon approval of the annexation; and, WHEREAS, the part of the territory that lies within the Surface Water Management Agency of Clackamas County and the district has no bonded debt, the city elects ORS 222.520(2)(b) and the territory shall be withdrawn from that agency immediately upon approval of the annexation; and, WHEREAS, LOC 50.01.004.5 specifies that, where the Comprehensive Plan Map requires a specific Zoning Map designation to be placed on the territory annexed to the City, such a zoning designation shall automatically be imposed on the territory as of the effective date of the annexation; and, WHEREAS, this annexation is consistent with the Urbanization Chapter of the City of Lake Oswego's acknowledged Comprehensive Plan, Oregon Revised Statutes 222.111(2), 222.120 and 222.125 for boundary changes, and Metro Code Sections 3.09.030 (A-C), 3.09.040(A)(1-4) and 3.09.050. Ordinance 2958,AN 25-0001 (21E18DC05400) EXHIBIT A-1/PAGE 1 OF 3 Now, therefore, the City of Lake Oswego ordains as follows: Section 1. The real property described as follows is hereby annexed to the City of Lake Oswego: A tract of land located within the southeast quarter of Section 18,Township 2 South, Range 1 East of the Willamette Meridian, City of Lake Oswego, Clackamas County, Oregon, and being a part of Lot 20, Block 3, Oswego Acres (Plat No. 503), plat records of Clackamas County, said tract of land being all that property conveyed to Dana L. Bennett and Darin L. Rouhier, Trustees of the Bennett Rouhier Trust dated June 27, 2018, by Warranty Deed recorded July 11, 2018 in the Official Records of Clackamas County, as Recording No. 2018-043040; said tract of land more particularly described as follows: The West one-half of Lot 20, Block 3, Oswego Acres (Plat No. 503), plat records of Clackamas County. The annexed territory is depicted on Attachment A. Section 2. The above Recitals are incorporated. Section 3. The annexed area lies within the following districts and shall be retained within these districts upon the effective date of annexation: Lake Grove Park District Library District of Clackamas County Rivergrove Water District Section 4. The annexed area lies within the following districts and shall be withdrawn from these districts upon the effective date of annexation: Lake Grove Fire District#57 Clackamas County Enhanced Sheriff's Patrol District Surface Water Management Agency of Clackamas County Section 5. In accordance with LOC 50.01.004.5, the City zoning designation of R-10, shall be applied to the subject properties on the effective date of annexation, as shown on Attachment A. Section 6. The City Council hereby adopts the findings of fact and conclusions set forth in Attachment B in support of this annexation ordinance. Section 7. Effective Dates: a. Effective Date of Annexation Ordinance. Pursuant to Lake Oswego City Charter, Section 35.C, this ordinance shall be effective on the 30th day after its enactment. Ordinance 2958,AN 25-0001 (21E18DC05400) EXHIBIT A-1/PAGE 2 OF 3 b. Effective Date of Annexation. Following the filing of the annexation records with the Secretary of State as required by ORS 222.177, this annexation shall be effective upon the later of either: 1. the 30th day following the date of adoption of this ordinance; or 2. the date of filing of the annexation records with the Secretary of State. Provided, however, that pursuant to ORS 222.040(2), if the effective date of the annexation as established above is a date that is within 90 days of a biennial primary or general election or after the deadline for filing notice of election before any other election held by any city, district or other municipal corporation involved in the area to be annexed, the annexation shall become effective on the day after the election. Read by title only and enacted at the regular meeting of the City Council of the City of Lake Oswego held on the 15t day of July, 2025. AYES: NOES: ABSTAIN: ABSENT: Joseph M. Buck, Mayor Dated ATTEST: Kim Vermillion, Interim City Recorder APPROVED AS TO FORM: Ellen Osoinach, City Attorney Ordinance 2958,AN 25-0001 (21E18DC05400) EXHIBIT A-1/PAGE 3 OF 3 W vvZL 7953 Annexation to the City of Lake OI wego J 17913 17944 7 >>9 AN 25-0001/Ordinance 2958 - 7975 17968 Sp % 1 i3U94 �cbC) 18098 o� �d'oc, 18025 17948 18004 �Q, cn c"'n c"'n ccnn cn 0 —� ' `� 17956 18108 8005 _E 18125 c cc:', co 181041 o Epp 18050 8�10 18147 Y c9 �� 18011 m 18014 cn — :013 - I w w cn cn CO I w Oa co rn Ca N cn v CP co N 18026CO i 18175 Tree St SW Tree w 18179 St �80q p 18119 I w w 01 cn cn 18117 co I w co a) cc.) N N 764 18115 I °o N 0D °' — N rn 18/24 c9 j_�$11 � 18200 18121 N N I 18123 I---- V Cn cn c„ c„ 18133 I Tualata Ln 8148 w N 01 N i w 18275 N w "' cn I w - (o Ca cn ((0 I1364.y ' N CA Kenny t i Kenn Stl co N ,j N O 01 01 U1 cn N �. w Oa of Q� o N rn rn rn rn N N ('' > 18350 I r 18205 // n' o Q I �,�0 18215 -0 cn r--I 18341 N'n'' 18235 � 18244 6' w oa - N R� 10 w can 18245 I �' 18360 18325 �'`� cn U1 I 18308 6 SW Tualata Ct ^� o rn w 18575 I O v31 cn U1 CJ1 0 CO 01 CA CO I 18350 i 41. N N (6 CNn 0.1 ��40 .eenbrook Way,2 31 o = , w S Cn Cr Cr o 5� N N 62 CA j - Co C, N al SW 5390 6 0 N WISiletZ Ct 5377 4, rn cn 6- 664 I 0101 � > U, 5380 5374 N S6,p I ; u1 w >� o Sq-p N rn 18 \'criNu) / - i ti . L mire rr N a18470^�� tow, 18 Attachment A oY E�4 ' it � 18, Tax Lot ID: 21 E18DC05400 Qo City of Lake Oswego: !. 18! COMPREHENSIVE PLAN = R-10, Residential Low Density • iir -- ZONING = R-10, Residential Low Density �cb Clackamas County: N NZONING = R-10, Urban Residential Low Density ii11014.4F° I I Lake Oswego r Subject i - • II I_—-J City Limits �i Property / 7 0 50 100 200 300 400 500 600 1 - • Feet 2/12/2025 ATTACHMENT B Criteria, Findings,Conclusion, and Effective Date APPLICABLE CRITERIA: A. Oregon Revised Statutes (ORS), Boundary Changes; Mergers and Consolidations. 1. ORS 222.111(2)Authority and Procedure for Annexation; Specifying Tax Rate in Annexed Territory. 2. ORS 222.120(1, 3) Procedure for Annexation Without Election; Hearing; Ordinance Subject to Referendum. 3. ORS 222.125-Annexation by Consent of All Owners of Land and Majority of Electors; Proclamation of Annexation. B. Metro Code. 1. 3.09.030 (A-C) Notice Requirements 2. 3.09.040(A)(1-4) Requirements for Petitions. 3. 3.09.050 Hearing and Decision Requirements for Decisions Other Than Expedited Decisions C. Comprehensive Plan - Urbanization Chapter 1. Policy A-3: "The Urban Services Boundary(as depicted on the Comprehensive Plan Map) is the area within which the City shall be the eventual provider of the full range of urban services." 2. Policy C-3: "Ensure that annexation of new territory or expansion of Lake Oswego's Urban Services Boundary does not detract from the City's ability to provide services to existing City residents." 3. Policy C-4: "Prior to the annexation of non-island properties, ensure urban services are available and adequate to serve the subject property or will be made available in a timely manner by the City or a developer, commensurate with the scale of the proposed development." 4. Policy D-3: "Enter into and maintain an Urban Growth Management Agreement with Clackamas County for lands within the Urban Services Boundary to ... (g) "Promote orderly annexation of territory." D. Comprehensive Plan—Complete Neighborhoods and Housing (Statewide Goal 10) Policy B-1: "Provide and maintain zoning and development regulations that allow the opportunity to develop an adequate supply and variety of housing types, and that accommodate the needs of existing and future Lake Oswego residents." E. OAR 660-008-0010-Allocation of Buildable Land FINDINGS: A. Oregon Revised Statutes (ORS), Boundary Changes; Mergers and Consolidations. 1. ORS 222.111(2)Authority and Procedure for Annexation Specifying Tax Rate in Annexed Territory. ORS 222.111(2) provides that a proposal for annexation of territory to a City may be initiated by the legislative body of the City, on its own motion, or by a petition to the legislative body of the City by owners of real property in the territory to be annexed. The owners of this property have petitioned the City for this annexation.The proposed annexation complies with this statute. 2. ORS 222.120 Procedure for Annexation Without Election; Hearing; Ordinance Subject to Referendum. ORS 222.120(1, 3) states that an election need not be held on the question of annexation to the electors of the city for their approval or rejection if the legislative body provides for a duly noticed public hearing before the legislative Ordinance 2958 (AN 25-0001) ATTACHMENT B/PAGE 1 OF 15 body at which time the electors of the City may appear and be heard on the question of annexation. The City has provided written notification of this annexation by publishing a notice once each week for two consecutive weeks prior to the day of the hearing in a newspaper of general circulation in the city and posted the notice of public hearing in four public places in the city as required under ORS 222.120(3).The notice was published in the Lake Oswego Review and was posted at the City Hall,the Adult Community Center, Operations Center and the City Library. A notice was also posted on the site on March 12, 2025.The notice contained information about the affected territory, time and place of the public hearing and the means by which any person can obtain a copy of the written report.The annexation notification and review procedures comply with this statute. 3. ORS 222.125-Annexation by Consent of All Owners of Land and Majority of Electors; Proclamation of Annexation. ORS 222.125 states that an election need not be held on the question of annexation within the area proposed to be annexed if all of the owners of land in the territory and not less than 50 percent of the electors, if any, residing in the territory consent in writing to the annexation.The subject property(Tax Lot 5400) is vacant. The dwelling was recently demolished through Clackamas County. The owners of the property have consented to this annexation. The proposed annexation complies with this statute. B. Metro Code 1 3.09.030—Notice Requirements A. The notice requirements apply to all boundary change decisions by a reviewing entity except expedited decisions made pursuant to MC 3.09.045.These requirements apply in addition to, and do not supersede applicable requirements of ORS Chapters 197, 198, 221 and 222 and any city or county charter provision on boundary changes. B. Within 45 days after a reviewing entity determines that a petition is complete,the entity shall set a time for deliberations on a boundary change. The reviewing entity shall give notice of its proposed deliberations by mailing notice to all necessary parties', by weatherproof posting of notice in the general vicinity of the affected territory and by publishing notice in a newspaper of general circulation in the affected territory. Notice shall be mailed and posted at least 20 days prior to the date of deliberations. Notice shall be published as required by state law. C. The notice requirements in Subsection B shall: 1. Describe the affected territory in a manner that allows certainty; 2. State the date,time and place where the reviewing entity will consider the boundary change; and 3. State the means by which any person may obtain a copy of the reviewing entity's report on the proposal The City has provided written notification of this annexation to necessary parties (mailed notice), to the general vicinity(posting of the notice of annexation on this property on March 12, 2025), and by publishing notice to the Lake Oswego Review, a newspaper of general circulation in the city. All notices were given at least 20 days prior to the date of the public hearing for annexation as required under MC 30.09.030 B.The notices contained information about the affected territory, the time and place of the public hearing, and the means by which any person can obtain a copy of the written report.The annexation notification and review procedures comply with the Metro code requirements. ' "Necessary party" means "county; city; district whose jurisdictional boundary or adopted urban service area includes any part of the affected territory or who provides any urban service to any portion of the affected territory; Metro; or any other unit of local government." Metro Code 3.09.020(J). Ordinance 2958 (AN 25-0001) ATTACHMENT B/PAGE 2 OF 15 2. 3.09.040- Requirements for Petitions. (A) A petition for a boundary change must contain the following information: 1. The jurisdiction of the reviewing entity to act on the petition; 2. A map and a legal description of the affected territory in the form prescribed by the reviewing entity; 3. For minor boundary changes,the names and mailing addresses of all persons owning property and all electors within the affected territory as shown in the records of the tax assessor and county clerk; and, 4. For boundary changes under ORS 198.855 (3), 198.857, 222.125 or 222.170, statements of consent to the annexation signed by the requisite number of owners or electors. The above information was submitted as required by Metro Code. The property owners have signed the application and petition. The property (TL 05400) is vacant, there are no electors residing on the property. A map and legal description in the form required by the City have been included in the application materials and are on file.The property owners have consented to the annexation on the annexation petition, meeting the consent requirements of ORS 222.125.The annexation petition complies with the Metro code requirements. 3. 3.09.050(B, D) Hearing and Decision Requirements for Decisions Other Than Expedited Decisions 3.09.045(D, E) Expedited Decisions (criteria incorporated for non-expedited decisions by MC 3.09.050(D)) B. Not later than 15 days prior to the date set for a hearing a report shall be available to the public that addresses the criteria identified in subsection (D) and includes the following information: 1.The extent to which urban services are available to serve the affected territory, including any extra territorial extensions of service; 2. Whether the proposed boundary change will result in the withdrawal of the affected territory from the legal boundary of any necessary party; and 3.The proposed effective date of the boundary change. These findings meet subsection B. 3.09.045 Expedited Decision D. To approve a boundary change through an expedited process,the city shall: 1. Find that the change is consistent with expressly applicable provisions in: a. Any applicable urban service agreement adopted pursuant to ORS 195.065 The City has entered into ORS 195.065 agreements with: 1) Lake Grove Park District (Lake Oswego School District) and 2) Lake Grove Fire District. Lake Grove Park District (Lake Oswego School District): The City and the Lake Oswego School District entered into an ORS 195.065 urban service agreement for park services in July, 2003. The School District operates the Lake Grove Swim Park located at 3800 Lakeview Boulevard. The agreement states that the annexation of property by the City within the Lake Grove Park District (which funds the swim park) shall not cause the withdrawal of the property from the district. Lake Grove Fire District: The City and District entered into an ORS 195.065 urban service agreement for fire protection in July, 2003.The agreement states that upon annexation of property within the district by the City,the annexed property shall be withdrawn from the District and the City shall provide fire protection services. This property is within the boundary of the Lake Grove Fire District #57 and the annexation will withdraw this property from that District. Ordinance 2958 (AN 25-0001) ATTACHMENT B/PAGE 3 OF 15 The proposed annexation is consistent with these agreements. b. Any applicable annexation plan adopted pursuant to ORS 195.205. There are no applicable annexation plans adopted pursuant to ORS 195.205 relating to the affected territory. c. Any applicable cooperative planning agreement adopted pursuant to ORS 195.020(2) between the affected entity and a necessary party. There are no ORS 195.020(2) cooperative agreements (which relate to special districts) between the city and a necessary party. d. Any applicable public facility plan adopted pursuant to a statewide planning goal on public facilities and services. Consistent with Statewide Planning Goal 11 (Public Facilities) and the Community Health and Public Safety Chapter of the Comprehensive Plan, the City maintains a Public Facilities Plan (PFP). The PFP consists of master plans for streets, sanitary sewer, water, and stormwater facilities,which provide the basis for long-range planning for both the incorporated and unincorporated lands within Lake Oswego's Urban Services Boundary(USB).The PFP is comprised of the Lake Oswego Transportation System Plan, Wastewater Master Plan, Water System Master Plan, and Clean Streams (Stormwater) Plan, pursuant to Statewide Planning Goals 11 (Public Facilities) and 12 (Transportation). Wastewater Master Plan: Sanitary sewer service is available from an 8-inch collection line located in Pilkington Road along the site frontage that will be able to provide service to this site. (No sanitary sewer service is currently available on its Kenny Street frontage.) The City requires sanitary sewer extensions to be taken to the upstream property line when a property proposes to connect. In this case,the sewer will not be required to be extended to the east boundary of the site along Kenny Street because the City Wastewater Master Plan shows a future public main extension coming from the east and terminating near the east portion of this site, with a gap to Pilkington Road.Therefore,this site will be allowed to connect to the existing public sanitary sewer main located in Pilkington Road without being required to construct any public sewer main extension in Kenny Street. For connection of the sanitary sewer to this property, a mainline tap and new minimum 4-inch lateral will be required with a two-way clean-out positioned at the right-of-way line.A street opening permit will be required for the sewer tap and work within the public right-of-way and a plumbing permit will be required for on-site work.The on-site work will include decommissioning the existing septic tank(removal, or filling with sand or gravel).All work would be done by private contractors. System Development Charge (SDC):A plumbing permit is required for connection. Using the current Master Fees& Charges, as approved by the City of Lake Oswego effective January 1, 2025,the Sewer SDC for a dwelling using a %-inch water meter is $3,607 (a 1-inch water meter is $6,014).These fees and charges are adjusted at the beginning of each year. Note:The Engineering Staff has preliminarily commented by memo on the development standards that would apply for the possible future land division,which will be prepared as a part of the preapplication conference for any land division. The sanitary sewer service that would potentially serve this property could be provided in a manner that is consistent with the Wastewater Master Plan. Ordinance 2958 (AN 25-0001) ATTACHMENT B/PAGE 4 OF 15 Water System Master Plan:The property is served by the Rivergrove Water District.There is a Rivergrove Water District water main located on both Pilkington Road and Kenny Street along the site frontage. The nearest existing fire hydrant is located across from the site on the southwest corner of Pilkington Road/Kenny Street. The City of Lake Oswego entered into an agreement with the Rivergrove Water District on February 8, 1984 for water services.The agreement stipulates that the District will continue to serve the property upon annexation if it is capable of delivering a minimum flow of 1500 gallons per minute with a 20 psi residual pressure during periods of peak domestic demand.The District is currently able to meet these demands. If upon further development, this level of service is not provided,then City water may need to be provided. Water will be provided to this site in a manner that is consistent with the City Water System Master Plan. Clean Streams (Stormwater) Plan:There are no public stormwater systems in the vicinity of this property. After annexation, on-site surface water management requirements will fall under various provisions of the Lake Oswego Code. For example, stormwater runoff from new and/or replaced impervious surface areas shall be managed in accordance with the City's Stormwater Management Code (LOC 38.25), consistent with the Clean Streams (Stormwater) Plan. Transportation (Statewide Planning Goal 12): The City's Transportation System Plan (TSP) implements the multi-modal transportation system that will meet the needs of the city for a 20-year planning horizon. Pilkington Road is a Major Collector and is under the jurisdiction and permitting authority of the City of Lake Oswego.The nearest mass transit service is Tri-Met bus line 37,which operates between downtown Lake Oswego and the Tigard and Beaverton Transit Centers. Service can be accessed at the intersection of Pilkington and Jean Roads. The City's Transportation System Plan implements the multi-modal transportation system that will meet the needs of the city for a 20-year planning horizon. e. Any applicable comprehensive plan policies Comprehensive Plan Map: This property is currently designated Low Density Residential and R-10 on Clackamas County's Comprehensive Plan and Zoning Maps. It is designated Medium Density Residential, R-10 on the City's Comprehensive Plan Map.As required by LOC 50.01.005.5, upon annexation, a City zoning designation of R-10 will be automatically applied to this property. Comprehensive Plan Policies- Urbanization:The Lake Oswego Comprehensive Plan contains the following relevant language in the Urbanization chapter: Policy A-3: "The Urban Services Boundary(as depicted on the Comprehensive Plan Map) is the area within which the City shall be the eventual provider of the full range of urban services."This property is within the City's Urban Services Boundary.Therefore,the proposed annexation and the withdrawal of this property from the identified districts is consistent with this policy. Policy C-3: "Ensure that annexation of new territory or expansion of Lake Oswego's Urban Services Boundary does not detract from the City's ability to provide services to existing City residents." The approval of this annexation will result in the addition of 0.44 acres to be served by the City. As stated in Section 2(b)(1),the addition of this territory will not detract from the City's ability to provide police and fire protection to existing City residents.As outlined elsewhere in these findings and the incorporated materials, annexation of this property will not affect the City's ability to provide parks and recreation services, sewer or water services. Ordinance 2958 (AN 25-0001) ATTACHMENT B/PAGE 5 OF 15 Policy C-4: "Prior to the annexation of non-island properties, ensure urban services are available and adequate to serve this property or will be made available in a timely manner by the City or a developer commensurate with the scale of the proposed development." Availability of urban services serving this property is discussed below: Water: Water is available to serve the subject area, as detailed in subsection D.1.d. Sewer: Sanitary sewer service is available to serve the subject area, as detailed in subsection D.1.d. Stormwater: As detailed in subsection D.1.d,future development will be required to comply with the City standards for stormwater management. Fire Protection: Lake Grove Fire District#57 provides fire protection services to this property by agreement with the City of Lake Oswego.The District has no bonded debt. Upon annexation,this property will be withdrawn from this fire district per a July 2003 urban service agreement and will be served directly by the City.The Jean Road Fire Station on 4555 Jean Road, located northeast of the site,would be able to respond to emergencies under the eight-minute goal established in the Comprehensive Plan. Police: Upon annexation, this property will be withdrawn from the Clackamas County Enhanced Sheriff's Patrol District and served by the City of Lake Oswego The District has no bonded dept.The Lake Oswego Police Department reviewed the proposal and indicated that it does not have any concerns with serving this property upon annexation. Parks and Open Space:The City has 629 acres of park and open space lands, or 14.6 acres per 1,000 population.The parks nearest to this property are Canal Acres/Bryant Woods Natural Park and Pilkington Park. Canal Acres park is 31 acres and located on the north and south sides of Childs Road. Because this is a natural park, there are no amenities for organized recreation activities. Pilkington Park is located east of the site. It is a 3.7-acre neighborhood park and provides drop-in play fields, a walking path and a picnic table.The City's park system will not be overburdened by any additional population annexed to the City with this application. Lake Grove Park District:The Lake Grove Swim Park, managed by the Lake Oswego School District, and funded by the Lake Grove Park District, is located at 3800 Lakeview Boulevard.The swim park is approximately 1.3 acres in size with restroom, play and swim facilities. Per the 2003 Urban Service Agreement, this property will remain within the Lake Grove Park District following annexation. Library District of Clackamas County:The Library District was formed to act as the fiscal agent for the distribution of property tax revenues raised by the District permanent rate to participating local governments who operate public libraries within Clackamas County.This property will remain within the Library District of Clackamas County following annexation. Transportation -Streets and Mass Transit:Transportation infrastructure and transit service is available to serve the subject area, as detailed in subsection D.1.d, above. Other Urban Services: LOC 50.06.008.3 requires that all development be provided with the following utility services: sanitary sewer,water, sidewalks, pedestrian and bicycle paths,traffic control signs and devices, street lights, streets, and TV cable.These utilities are now in place or can be put in place to serve this property. In the event that future development occurs, an applicant for development is obligated to construct all necessary public facilities to serve their development. Ordinance 2958 (AN 25-0001) ATTACHMENT B/PAGE 6 OF 15 Urban Growth Management Agreement The Lake Oswego Comprehensive Plan, Urbanization Chapter, Policy D-3, calls for entering into and maintaining an Urban Growth Management Agreement (UGMA)with Clackamas County for lands within the USB. Similarly, General Urbanization Policy 4.A.4 of the Clackamas County Comprehensive Plan calls for the establishment of Urban Growth Management Areas and Urban Growth Management Agreements to clarify planning responsibilities between the County and cities for areas of mutual interest. Policy 4.A.5 directs the County to establish agreements with cities and service districts to clarify service and infrastructure responsibilities for areas of mutual interest. In furtherance of these policies, the City and County have entered into an UGMA that stipulates a mutual interest in coordinated land use planning, compatible comprehensive plans, and provision of urban services and facilities. This agreement ensures coordination and consistency between the City and County comprehensive plans and outlines responsibilities in providing services and managing growth within the Dual Interest Area. Subsections 6 and 7, provided below, are applicable to annexations. "6C. City and County Notice and Coordination: The City shall provide notification to the County, and an opportunity to participate, review and comment, at least 35 days prior to the first public hearing on all proposed public facilities plans, legislative changes to the City Comprehensive Plan, or quasi-judicial land use actions adjacent to, or in close proximity to unincorporated areas. The City shall provide notice to the County of private or City initiated annexation requests within five days of the filing of an application with the Portland Metropolitan Boundary Commission." The UGMA specifies that the City notify the County of an annexation request within five days of when it is submitted to the Boundary Commission.There is no longer a Boundary Commission for the Portland Metropolitan area. Staff relies on the notice requirements of Metro Code 3.09.030(B), which requires mailing notice to all necessary parties, posting of a weatherproof notice in the general vicinity of the affected territory and by publishing notice in a newspaper of general circulation in the affected territory. Notice shall be mailed and posted at least 20 days prior to the date of deliberations. The notice required by MC 3.09.030 shall follow the requirements under MC 3.09.030(C),where the notice shall describe the affected territory in a manner that allows certainty, state the date,time and place where the reviewing entity will consider the boundary change; and, state the means by which any person may obtain a copy of the reviewing entity's report on the proposal. Clackamas County is a "necessary" party under the Metro Code definition and was notified on March 12, 2025, 20 days before the public hearing. "7. City Annexations A. The City may undertake annexations in the manner provided for by law within the Dual Interest Area. The City annexation proposals shall include adjacent road right- of-way to property proposed for annexation. The County shall not oppose such annexations. B. Upon annexation, the City shall assume jurisdiction of the County roads and local access roads pursuant to a separate road transfer agreement between the City and county." The City is undertaking this annexation in the manner provided for in the applicable provisions of State Law and Metro Code for the territories that lie within the Dual Interest Area.This annexation is Ordinance 2958 (AN 25-0001) ATTACHMENT B/PAGE 7 OF 15 consistent with the City and County comprehensive plans,which have been coordinated in the Dual Interest Area within the regional Urban Growth Boundary(UGB). Statewide Goal 10 and Complete Neighborhoods and Housing City Comprehensive Plan Complete Neighborhoods and Housing Chapter The Complete Neighborhoods and Housing Chapter of the City's Comprehensive Plan implements Statewide Housing Goal 10 and the Portland Metropolitan Housing Rule (OAR 660-007-0000 et seq.), which requires that the City plan for a supply of residentially zoned land with an average allowed density of 10 dwelling units per net acre, and the opportunity to develop a mix of housing types consisting of not less than 50%attached and multifamily dwellings. Compliance with the State rules ensures the opportunity to provide adequate numbers of needed housing units and the efficient use of buildable land within urban growth boundaries, while promoting certainty in the development process to help reduce housing costs. The following Oregon Administrative Rule (OAR) provides standards for compliance with Goal 10 "Housing" pursuant to ORS 197.296 (Buildable Lands) and ORS 197.303 through 197.307 (Needed Housing): OAR 660-008-0010 Allocation of Buildable Land The mix and density of needed housing is determined in the housing needs projection. Sufficient buildable land shall be designated on the comprehensive plan map to satisfy housing needs by type and density range as determined in the housing needs projection. The local buildable lands inventory must document the amount of buildable land in each residential plan designation. The Lake Oswego Comprehensive Plan, Complete Neighborhoods and Housing Chapter, adopted pursuant to Goal 10 and the Metropolitan Housing Rule, is designed to meet Lake Oswego's housing needs for not less than a twenty-year planning period.The Comprehensive Plan Map designates residential land use designations within the City limits and within Lake Oswego's USB through the year 2035.The Comprehensive Plan Map's residential land use designations are consistent with the City's Housing Needs Analysis 20 Year Housing Need 2023-2043 (HNA 9/21/23), also incorporated herein by reference, and the City of Lake Oswego-Clackamas County UGMA, which specifies future zoning of lands with the USB upon annexation to Lake Oswego.These designations match the corresponding Zoning Map designations such that there is only one zone for each Plan designation, and therefore only one zone that is applied to each lot upon annexation, consistent with the UGMA and in compliance with Goal 10 and the Metropolitan Housing Rule. In the case of the subject application, the applicable Plan Map designation and corresponding Zone Map designation is R-10. The HNA is based on the Comprehensive Plan Map's residential land use designations. Figure 6.3 of the HNA, excerpted below,forecasts a citywide deficit of 642 units (86 acres), including a deficit of 192 units (38 acres) of low-density residential land, to meet the city's housing needs by 2043. Ordinance 2958 (AN 25-0001) ATTACHMENT B/PAGE 8 OF 15 FIGURE 6.3: COMPARISON OF FORECASTED FUTURE LAND NEED(2043)WITH AVAILABLE CAPACITY WITHIN CITY LIMITS SUPPLY DEMAND Buildable Land Growth Rate(0.05%) Zone&Plan Inventory- Surplus or(Deficit) Typical Housing Type New Unit Category Housing Unit Capacity Need(2043) Units Avg. Acres Units/ac. Low-Density Single-family detached; 655 847 (192) 5 (38) Some SF attached&plex Med-Density SF attached; Manufact. 195 444 (249) 8 (31) home;2-4 plexes High-Density Multi-family apartments 476 677 (201) 12 (17) I TOTALS: 1,327 1,968 (642) 7 (86) Sources: MIG,Johnson Economics The proposed annexation would add 0.44 acres of low-density residential land to the City's Buildable Lands inventory(BLI), which would correspondingly reduce the deficit of low-density residential land needed to meet the city's housing needs by 2043 by 0.44 acres.The proposed annexation and designation of City zoning is consistent with the Comprehensive Plan and Map, and will help to meet the City's housing needs as identified by the HNA; therefore,the annexation and zone change comply with Goal 10 and its implementing administrative rules. In this case,the zoning district would provide the opportunity for needed housing as identified in the HNA. The City uses the following approach for findings supporting two types of annexation zone changes: • Option 1 is for annexation-related non-discretionary comprehensive plan and zoning map amendments. • Option 2 is for annexation-related discretionary comprehensive plan and zoning map amendments. "Non-discretionary" amendments are zoning map amendments applied to an annexed property(or properties) where the applicable zoning designation is prescribed by the City's Comprehensive Plan and a zoning conversion table in the City-County UGMA. "Discretionary" amendments are where more than one zoning designation is applicable, as prescribed by the City's Comprehensive Plan and the City-County UGMA, and the City Council has discretion in applying zoning. The proposed rezoning in AN 25-0001 is non-discretionary because the zoning is prescribed by the City of Lake Oswego Comprehensive Plan and the zoning conversion table in the City of Lake Oswego-Clackamas County UGMA. The City's R-10 zone is proposed to be applied consistent with (matching)the R-10 land use designation in the City's Goal 10/Metro Housing Rule-compliant comprehensive plan.The Metropolitan Housing Rule (OAR 660-007-0035(3)) state that Lake Oswego must provide for an overall density of ten or more dwelling units per net buildable acre. The City's R-10 zone allows for the development of cottage cluster developments of up to 8 dwelling units on properties meeting the minimum lot size of 10,000 sq.ft., corresponding to a density of more than 34 dwelling units per acre.The City's R-10 zone also allows for the development of quadplexes containing 4 dwelling units on properties meeting the minimum lot size, corresponding to a density of more than 17 dwelling units per acre. Further,the City's R-10 zone allows for the development of triplexes containing 3 dwelling units on properties meeting the minimum lot size, corresponding to a density of more than Ordinance 2958 (AN 25-0001) ATTACHMENT B/PAGE 9 OF 15 13 dwelling units per acre.Therefore,the City's R-10 zone meets the requirement to provide for an overall density of ten or more dwelling units per net buildable acre. The City Council does not have discretion to apply a different zone to the subject property unless it is amending the Comprehensive Plan to change the land use designation;therefore,the City does not evaluate proposed zones against its Housing Needs Analysis (HNA).The City simply applies the zoning that is prescribed by the Comprehensive Plan, consistent with the Complete Neighborhoods and Housing (Goal 10) chapter of the Plan. In doing so,the City relies on LOC 50.01.004.5.a, which states that the Lake Oswego Comprehensive Plan Map provides for the future City zoning of all property within the City's Urban Service Boundary. In cases where the Comprehensive Plan Map requires a specific zoning map designation,this designation is automatically imposed on territory when the property is annexed to the City. In conclusion,the proposed R-10 zoning is consistent with the Comprehensive Plan and City-County UGMA for the subject property, and the City Council does not have other zoning options from which to choose in approving AN 25-0001. f. Any applicable concept plan There are no applicable concept plans in this area. 2. Consider whether the boundary change would a. Promote the timely orderly and economic provision of public facilities and services b. Affect the quality and quantity of urban services c. Eliminate or avoid unnecessary duplication of facilities or services The proximity of this property to existing City services will allow this annexation to promote the timely, orderly and economical extension of public facilities and services. This property can readily be served with urban services and facilities. If and when additional development occurs in the area, provision of public facilities and services will occur consistent with the City's adopted public facility master plans, ensuring that it does not adversely affect the quality or quantity of urban services and avoiding unnecessary duplication of facilities or services. Therefore,this boundary change is consistent with criteria 2.a through 2.c. E. A city may not annex territory that lies outside the UGB except it may annex a lot or parcel that lies partially within and partially outside the UGB. The property to be annexed is located entirely within the Metro UGB. C. Comprehensive Plan- Urbanization Chapter See discussion, above, under Section B.3, regarding Metro Code 3.09.045.D(1)(e), "Comprehensive Plan Policies— Urbanization." D. Comprehensive Plan—Complete Neighborhoods and Housing(Statewide Goal 10) See discussion, above, under Section B.3, regarding Metro Code 3.09.045.D(1)(e), "Comprehensive Plan Policies— Complete Neighborhoods and Housing (Statewide Goal 10)." E. OAR 660-008-0010-Allocation of Buildable Land See discussion, above, under Section B.3, regarding Metro Code 3.09.045.D(1)(e), "Comprehensive Plan Policies— Complete Neighborhoods and Housing (Statewide Goal 10)" Ordinance 2958 (AN 25-0001) ATTACHMENT B/PAGE 10 OF 15 F. Resolution 19-59: Policies Discouraging Destruction of Natural Resources and Significant Trees Prior to Annexation Background On March 6, 2025, staff visited the site and observed five large Douglas fir trees ranging from 32 inches in diameter to 45 inches in diameter that were removed from the property.These are identified on the site plan of the Tree Removal Certification Application (Exhibit D-1) as trees#11305,#11306,#11307,#11341 and 11342. Staff found that the policies discouraging destruction of natural resources and significant trees prior to annexation (Resolution 19-59) may apply. These policies were adopted by the City Council in 2004 and updated in 2019.They were developed to encourage property owners interested in applying for annexation to the City to preserve and protect natural resources and significant trees on their property.The City has a protection program for hundreds of acres of stream corridors, wetlands and tree groves within the City and its potential annexation area (LOC 50.05.010 and 50.07.004.8). Properties that are not yet annexed to the City are under the jurisdiction of a county(Clackamas, Multnomah, or Washington County). Because the City has a higher level of protection for natural resources and trees than county jurisdictions, it is the community's interest to encourage all property owners within the potential annexation area to protect these resources as if the property was annexed to the City. The City can allow the property owner the opportunity to establish that the circumstances of the tree removal would have warranted the issuance of a Type II tree removal permit under the criteria of the Lake Oswego Tree Code. If it is found that a tree removal permit could be issued, Staff could then inform the City Council that the property owner has complied with this policy. If the city determines that the property owner has failed to establish that the criteria for the tree removal permit would have been met,the City has the option to decline the annexation unless the property owner mitigates the loss of the trees in accordance with the provisions under Resolution 19-59(4)(a-g). Should the Council choose this option, the mitigation steps under this section are summarized below: a. This would require the planting of mitigation trees at a 3:1 ratio of the same or similar species that are a minimum of 3-inch caliper at the time of planting. Mitigation trees would need to be planted according to the specification in the "City Tree Planting and Maintenance Guidelines" and can be located: I. Within the required setback of the future zone of the property. II. If the city determines that there is insufficient space on the property to accommodate all of the required mitigation trees, the property owner shall pay the appropriate fee as established in the Lake Oswego Master Fees and Charges into the City of Lake Oswego Tree Fund. b. Successfully maintain mitigation trees for at least 3 years prior to annexation (and replacing any trees that die); and, c. Commits to maintaining the mitigation trees for at two years following annexation; and d. Pay a restoration fee into the City of Lake Oswego Tree Fund in the amount as established by the Tree Code Fees in the City's Master Fees and Charges. e. The property owner shall execute a maintenance agreement with the city to ensure the trees survive for a two-year period after the effective date of the annexation. f. The property owner shall record a restrictive covenant against the city requiring the mitigation to be maintained for at least two years following the effective date of the annexation in a manner consistent with this policy. g. The property owner shall grant and record an easement in the form approved by the city attorney allowing the city access to and use of the property for purposes of restoring and maintaining the required mitigation during the two-year period. h. The property owner shall provide a bond or cash deposit or other security in a sum that is sufficient to cover the cost of the restoration and maintenance of the required mitigation during the two-year period. Ordinance 2958 (AN 25-0001) ATTACHMENT B/PAGE 11 OF 15 The policy states that upon receiving an annexation petition, the City Manager will determine whether a tree of a species and size greater than or equal to that listed below has been removed from the site with the 10-year period. Species Common Name Size (dbh) Quercus garryana Oregon white oak 08" Pseudotsuga menziesii Douglas-fir 18" Thuja plicata Western red cedar 12" Pinus Pondersosa Ponderosa pine 12" Other Deciduous and horticultural tree species 20" Other evergreen and conifer trees 18" Taxus Brevifolius Western Yew 05-6" Analysis The analysis for the Type II county tree removal certification for unincorporated properties was conducted by staff for this property on April 21 (Exhibit E-3). It is important to note that the City's Unincorporated Property certification process is typically completed prior to any tree removal and does not constitute a full evaluation or approval of an application or permit for tree removal under the City of Lake Oswego's Tree Code provisions. LOC 55.02.080(1): Reason for Removal. Criterion 1 determines what the reason for removal is: development, landscape plan, or an outgrown landscape area. Staff Comment: The application states that the reason for removal is "Development."The application listed five trees that were removed,Trees#11305, #11306,#11307,#11341, and#11342, described as Douglas-firs measuring 44" DBH, 36" DBH, 18" DBH,48" DBH, and 40" DBH, respectively. The existing condition of each of the trees (prior to removal) was not available. The site plan included with the submitted materials appears to illustrate the available building envelope defined by the yard setbacks (shown in blue on the site plan in the applicant's submittal, Exhibit D-1), but does not depict any specific proposed building footprint (Exhibit E-2, pg. 5). Under Type II tree removal regulations, a clear-cut of the entire building envelope for future development is not automatically permitted; removal of trees outside the proposed building/development footprint requires an alternatives analysis as to why those trees cannot be preserved during construction if their removal has a significant negative impact on neighborhood character and aesthetics. In the absence of a defined development proposal, staff can only assess the potential buildable area within the designated envelope.The only justification provided for Criterion 1 was the statement: "Site Plan for Proposed Development." Based on the information provided, staff finds that sufficient buildable area appears to be available within the envelope to allow for development without necessitating the removal of all five trees; however, it depends on the type of development proposed (e.g., a single-family dwelling vs. middle housing development). Additionally, staff notes that Tree#11341 is located outside of the illustrated building envelope and may not have qualified for removal under the development-related parameters of Criterion 1, depending on the proposal. Due to the lack of specific information regarding the scope of development, staff cannot determine whether the removal of Trees#11305, #11306,#11307,#11341, and#11342 would meet Criterion 1. LOC 55.02.080(2): Erosion,Surface Water,and Windbreak Impacts. Criterion 2 determines where there is a significant negative impact on erosion, soil stability,flow of surface waters, protection of adjacent trees, or existing windbreaks from the proposed removals. Staff Comment: Staff reported that the applicant did not indicate any impacts, but merely stated: "None of these apply" in the "explanation" portion of the question. Using LO-Maps, staff was able to determine that the property is generally flat, contains no surface water, and there is no indication of soil stability concerns related to removal of trees. Ordinance 2958 (AN 25-0001) ATTACHMENT B/PAGE 12 OF 15 Following a site visit, the City's consulting arborist assessed the potential impacts of tree removals on adjacent trees and existing windbreaks.The evaluation found that the recent removal of five Douglas-fir trees has not resulted in significant negative impacts to the protection or health of adjacent trees.Although the removals have slightly exposed the crowns of nearby trees, this exposure does not occur on the southwest side where predominant storm winds originate.The remaining trees consist mainly of similarly sized Douglas-fir trees that exhibit healthy characteristics, including favorable height-to-diameter and live crown ratios, and only minor crown asymmetry. Importantly, the removed trees were not providing critical wind protection or structural support for the remaining trees. To minimize impacts to potentially interconnected root systems during future development,the consulting arborist recommends that the stumps remain in place. If desired, stumps may be ground below grade. Should stump removal be necessary,the arborist advises that removal be performed under the direct supervision of a qualified arborist. This ensures careful excavation and root severance with minimal disturbance to the root systems of adjacent trees. Based on the materials available at the time of this analysis, and the on-site evaluation of the remaining trees on site, staff can determine that the removal of all five trees would have met Criterion 2. LOC 55.02.080(3): Neighborhood Character or Aesthetics Impacts. Criterion 3 addresses whether the tree removals would cause significant negative impacts to the neighborhood character and aesthetics by the removal of(a) a "significant tree," (b) altering the distinctive features of the neighborhood skyline as viewed from all public streets and properties within 300 ft. of the property, (c) removal of a visual screen between differing zones, (d) removal of street trees, or(e) removal of greater than 50%of a stand. If the trees are individually found to be significant,which is defined in the code, or found to meet the other sub-criterion,then the Exceptions portion of Criterion 3 must be met to be approved for removal. Staff Comment: Staff finds that although the trees are all over 15-inches in diameter and non-invasive,there is no way to determine if all five of the trees met the "healthy" (which includes trees in both fair and good condition) portion of the definition of"significant."The applicant identified Trees#11305,#11341, and #11342 as being in fair condition, and Trees#11306 and #11307 as being in poor condition. However,this cannot be independently verified, as the trees have already been removed.Therefore, staff must assume they were all in at least fair condition and then also determine whether any of the trees meet the remaining criteria for significance, specifically whether they are unique in size, species, or character within the context of the neighborhood. Following a site visit and a review of historical Google Street View imagery, staff observed that the removed trees appeared to have been of average size compared to other trees in the neighborhood. Douglas-fir trees are not a unique species in this neighborhood and the site is similar in character to others in the neighborhood.The surrounding neighborhood is dominated by mature Douglas-fir trees of similar size. Bigleaf maple also seems quite common, as well as invasive black locust and sweet cherry. Many properties also have smaller ornamental trees and shrubs for landscaping.Additionally, all five trees were located on the interior of the lot and did not appear to contribute to a defining feature of the neighborhood. Removal of these trees would not constitute removal of the last tree on the site.The remaining trees are predominately mature Douglas-fir trees of similar size,with an average diameter of approximately 36" DBH.The Douglas firs are in generally good condition, although several along the Pilkington Road frontage have substantial ivy infestation and Tree#11224 had several large red ring rot conks. In addition to the Douglas fir trees,there is a dense group of Oregon white oaks in generally good condition along the south property boundary.The other trees are small and in fair to poor condition including one invasive sweet cherry(just 5-inch DBH) and a 10-inch ash in the building envelope and one invasive English hawthorn,two flowering plums, and three small bigleaf maples with poor structure all amongst the large firs on the west side of the site near Pilkington.The notes on the plan indicate that Tree#11209 fell during a storm, but a snag remains as the trunk broke off at approximately 15-feet. Based on this assessment, staff would likely not have deemed any of the five trees a "significant tree" on an individual basis per Criterion 3(a). Per Criterion 3(b), potential alterations to the neighborhood skyline or its distinctive visual character can only be evaluated by comparing current site photos with historical imagery from surrounding streets and properties. Ordinance 2958 (AN 25-0001) ATTACHMENT B/PAGE 13 OF 15 After reviewing the current condition of the site alongside Google Street View images from prior years (Exhibit E-3), staff does not find that the removal of these trees resulted in a significant negative impact on the neighborhood skyline or overall aesthetics. In addition, the trees were not providing screening between dissimilar zones per Criterion 3(c),they were not street trees per Criterion 3(d), the removal of the five trees does not appear to be greater than 50%of a stand of trees per Criterion 3(e). Staff has determined that this application would have met Criterion 3,without having to address the Exception criterion. Conclusion Overall, the Type II Tree removal certification report finds that Type II Criteria 2 and 3 would have been met, but additional information is necessary to determine compliance with Criterion 1.This is because the applicant provided a generalized building envelope defined by the setbacks (outlined in blue in Exhibit E-2), instead of a specific development plan allowable under the base zone. Since the trees were not deemed significant, meeting the requirements for Criterion 1 would likely have been feasible. Based on the limited tree removal mainly within the building area on the site and retention of many other large firs, it appears that the applicant's intent was to remove trees in for future development rather than to indiscriminately clear-cut the site or damage natural resources in violation of the annexation policy. If the Council decides to approve the annexation request, staff recommends that the applicant be required to mitigate the removal of the five trees by replanting at a minimum 1:1 ratio with a mix of native species of medium to large stature to complement the existing Douglas-firs and oaks on the site.All mitigation trees should be carefully planted to avoid conflicts with future development on the site. The Council has the following decision options: 1. Annex the property and require no mitigation. 2. Annex the property and require mitigation normally required in the Type II tree removal application by replanting at a minimum 1:1 ratio with a mix of native species prior to the final building inspection for any dwelling on the site. All mitigation trees shall be carefully planted to avoid conflicts with future development on the site. 3. Delay annexation of the property for a period of three years and require replacement of the trees at a 3:1 ratio in accordance with the provisions under Resolution 19-59(4)(a-g).2 CONCLUSION: Based on the criteria and findings set forth above, the City Council concludes that AN 25-0001 can be made to comply with all applicable criteria and the annexation should be approved. Staff recommends the Council require mitigation as a condition of approval under Option 2, above. EFFECTIVE DATE: A. Effective Date of Annexation Ordinance. Pursuant to Lake Oswego City Charter, Section 35.C., the ordinance shall be effective on the 30th day after its enactment. B. Effective Date of Annexation. Following the filing of the annexation records with the Secretary of State as required by ORS 222.177, this annexation shall be effective upon the later of: 1. the 30th day following the date of adoption of this ordinance; or 2. the date of filing of the annexation records with the Secretary of State; 2 Note that the annexation policy should not be construed as preventing the Council from exercising its full discretionary authority in granting or denying petitions for annexation as otherwise permitted by Oregon law. Ordinance 2958 (AN 25-0001) ATTACHMENT B/PAGE 14 OF 15 provided however that pursuant to ORS 222.040(2), if the effective date of the annexation as established above is a date that is within 90 days of a biennial primary or general election or after the deadline for filing notice of election before any other election held by any City, district or other municipal corporation involved in the area to be annexed,the annexation shall become effective on the day after the election. Ordinance 2958 (AN 25-0001) ATTACHMENT B/PAGE 15 OF 15 HELD E CONSULTANTS" T I -- z o •HELD Li'61 /M� vaNln MI! 0. IE O�;Sian+i;:0:3 Y✓ J ,TEAT,Nol • 40 I a0.•�•� SW KENNY 05_ / -, , Kai o- SCALE:1 INCH=20 FEET ini - �; Sy 3 30.00' I 25.00' \ W= cf ?z g / ''' N L r N GIs w °H- oN1 •- �,- o - w :� n OH �' w-cpq°-Os wTps'w\ /!!!cls w S mow/ w C9s_w /�OGo - - 1.NOTES S OF BEARINGS AND COORDINATE SYSTEM BASED ON THE OREGON COORDINATE .ns-w- -GIs[5"WATER LINES w ua-w' sAUH RI. 4""IP / j T' - W tst� `V REFERENCE SYSTEM(OCRS).PORTLAND ZONE.NAD83(2011).EPOCH 2010.INTERNATIONAL _w a w m i- SW KENNY ST(PUBUC) {' FEET(IFT). - ` 2. ELEVATIONS ARE BASED ON CITY OF LAKE OSWEGO BENCHMARK"04N-3"WITH<. r l (50'WIDTHWAC KATO ``1 PUBLISHED ELEVATION OF 140.45J'NGVD29.BENCHMARK"04N-3"IS :SES NNE]NNYT(PUBLIC) IE -WT(e'/PVG/u),at.9'3 / l /TH) x5E1D /s FOR ROW MONUMENTATON.ADJACENT PROPERTY LINE ARESHOWN FOR VISUALURP ,AND DO zi G Is-c -c CIS-0 GI-c b ' ; ' \ �/,T�. /� N NOT REPRESENT RESOLVED BOUNDARIES. N > to ry S�e\ ®' `1'OD IP� J /Y (GEM/ ` �/ S8.19.3. . E 1 ,ce.so s 6. FENCES SHOWN HEREON WITH DIMENSIONAL TIES ARE SHOWN THEY WERE PHYSICALLY 0 Z S as ��J�HEo IR N/NO cAPe53�3 MEASURED.1HE FENCE LINE MAV MEANDER Us MEASURED LOCALES W Q • �', GEED H. y��[�`\ T ypl 5 1/?'Ix wI/me J. THIS SURVEY EFFORT WAS PERFORMED WITHOUT THE BENEFIT OF TITLE SUPPORT AND F y 0 i•7. f,ae ; H �nJ HELD AJ PA Jrs' DOES NOT SHOW ANY EASEMENTS AND/OR ENCUMBRANCES,SHOULD ANY EXIST. Q 3 N N �' I! J „23G E/W FOR ACCEPTED J l 0 B. PROPOSED BUILDING LOCATIONS SHOWN PER CLIENT ON 4/1/2025. Z N N o 0 1/ W'W n a �` L ` J 9. THIS SITE APPEARS TO LIE IN UN-SHADED ZONE"X","AREA OF MINIMAL FLOOD HAZARD" O ' a -�-_-__ I -� PER FEMA FLOOD INSURANCE RATE MAP COMMUNITY-PANEL NUMBER 41005C0013D, U O „204 ®I / TRUSTEE - TRUST EFFECTIVE 6/17/2008. N TOPOGRAPHY LEGEND CL TAR I ) DANA L.BENNETT&DARIN L.ROUHIER,TRUSTEES I�y 05 000 NO 2013 08Z5ta 10.PER INFORMATION CONVEYED FROM THE ARBORIST VIA CLIENT,TREES#11306&11307 00 1 OF THE BENNETT ROUHIER TRUST ARE CONSIDERED TO BE PART OF THE SAME TREE. Z N SEE DOO N0.2018-043040 11.PER INFORMATION PROVIDED BY THE CLIENT.TREES#11228&#11216 WERE REMOVED IN • FOUND MONUMENT AS TIDIED I I ' / 1995,PRIOR TO CURRENT OWNERS PURCHASING THE SUBJECT PROPERTY. tn ry� OTE I /I.145'.. 12.PER INFORMATION PROVIDED BY THE CLIENT,TREE#11209 FELL DURING A STORM. AC ASPHALT CONCRETE u', im mall11217J Wx eMNr Dr coi"cP.'P:no.I� xI._ )'1�/ , ,13 3 UTILITY STATEMENT Z'f FIRE HYDRANT E a f oIPG yJJJ �. '�{6 ® ru� OS, �oS N0.00 THE UNDERGROUND UTILITIES SHOWN HAVE BEEN MAPPED FROM FIELD SURVEY INFORMATION, [ ] CIS UTILITY NOTE(SEE UTILITY STATEMENT) _ €tt2 P 1 2 F n�o °A. I YF ''41- in 5,(y" OBSERVED ABOVE GROUND EVIDENCE AND GROUND MARKINGS BY OTHERS,AND ExISTING ��-,0 ,G P DRAWINGS SUPPLIED BY OTHERS.THE SURVEYOR MAKES NO GUARANTEE THAT THE / 1 8 /G�•pL QQ REGISTERED F GUY ANCHOR £\a 12 -- .000I _ $bi UNDERGROUND UTILITIES SHOWN COMPRISE ALL SUCH UTILITIES IN 1HE AREA.EITHER IN UNDERGROUND OR DBUNLITIES HO SURVEYOR HE EXACT DOES NOT WARRANT TAAT THE PROFESSIONAL IP IRON PIPE Y g H nt N0 �� MED J \ UNDERGROUND UTILITIES SHOWN ARE IN THE EXACT LOCATION INDICATED ALTHOUGH HE LAND SURVEYOR ®. SHE DOES CERTIFY THAT THEY ARE LOCATED AS ACCURATELY AS POSSIBLE FROM INFORMATION DEHIR IRON ROD s 3 tt210L [{ / 1-STORY H _-D-I /m AVAILABLE.THE SURVEYOR HAS NOT PHYSICALLY LOCATED THE UNDERGROUND UTILITIES. DIGITALLY SIGNED 1 S LOCATES END,SERVICE MAY CONTINUE ., E4 ; l J 69,5 WSHE HOUSE/1�/�T -ONE-CALL PUBLIC LOCATE TICKET NUMBERS 25077013&25077014,ORDERED ON mAROREGON © SANITARY SEWER MANHOLE " a\ `,' I y0 P j ry0 - T / 1possl6 I GIS WATER MICHAEL 0OWNHOUR / OW o1 Vo5 .flo 0 / -GIS WATER INFORMATION SOURCED FROM LOMAPS.COM,VIEWED ON 3/28/2025. SIGN ` ,(6,.0 m 1 -„ `6 u -GIS GAS INFORMATION SOURCED FROM NW NATURAL PLAT MAP"1-048-024",VIEWED ON 95338PL5 f 2" o 15I>/ �� 1 LCCAnON ', I 3/2B/2025.PLAT MAP DOES NOT SHOW CONNECTING SERVICE TO THE SUBJECT TRACT. RENEWS:12-31-2025 T TREE(DECIDUOUS) } , /uz921 m 1/�"li O^2 n„am 24' � ® ,5,fi o 1 �J TREE(EVERGREEN) '/ . \290��.3 v®r x>x mE�wrm wu.�w a w ot MP) o '®' _' V 6'WOOD FENCE N89T9'53'W 152_51' 5 A1NIAII FK-cE I TREE TABLE TREE TABLE U• TILITY POLE \ �X/a'00 1/290 IP J I 1 m-�J o p01NT# TYPE TRUNK DRIP p01NT# TYPE TRUNK DRIP �m J \ DIAMETER RADIUS DIAMETER RADIUS ® WATER METER 4 MK. �✓ L.4_ ✓JJ `L.� JJ GµOVE R DECIDUOUS 1 12 1117 DECIDUOUS 1 a a gm #4 WATER VALVE x w u',� J NP N)P 5 1100.E EVERGREEN 11224 EVERGREEN AFC YELLOW PLASTIC CAP I 0 11004 EVERGREEN 3.007 EVERGREENas 11225 EVERGREE227 N BRUSH&TREE DRIPLINE I i1 W5 DECIDUOUS11225 EVERGREEN fp BUILDING FOOTPRINT LINE HAIRSIIA Doc NO.2010-D525a3 SKINNER DOC.x0.2015-01ae67 112. EVERGREEN20 11 MP 2. PT U ff EDGE OF PAVEMENT U - .. 11205 DECIDUOUS 11229 EVERGREEN B -x-x-FENCE AS NOTED MT 11206 EVERGREEN 11230 EVERGREEN 3 -OS-OVERHEAD LINES a 11 a 11231 DECIDUOUS T 1 tt 8 M 0 a PROPOSED BUILDING LOCATIONS(SEE NOTE#8) 30.0' 25.00 11206u u 5" 10 11 DECIDUOUS a e ms-G UNDERGROUND GAS LINE(GIS) N o 1120D STUMP 11292 DECIDUOUS k ss UNDERGROUND SANITARY SEWER LINE o T. 03E140'OD 1/210 IP 11210 EVERGREEN 11293 DEAUU005 S i w UNDERGROUND WATER LINE a ` 2 11211 2 EVERGREEN DV 1 112. DECIDUOUS U 305 STUMP as Z -GI-w-UNDERGROUNO WATER LINE(GIS) V- 1 112,E STUMP 8 10 11342 SNAP a0 0 a + S O CONCRETE E 0 11214 DECIDUOUS 11307 STUMP 0 GRAVEL - .3 11215 EVERGREEN 11341 STUMP SHEET z IN(a'jvvIM- 54.. OF IE OUT(e-/P9c/N)1a3.r JOB NO. 3070-001 AN 25-0001 EXHIBIT D-1/PAGE 1 OF 1 ATTACHMENT 2 (ORDINANCE 2934) LU 23-0023 , A I `III16, 04 • I _ - • • • I I ill Source:Lake Oswego Chamber of Commerce CITY OF LAKE OSWEGO, OR HOUSING NEEDS ANALYSIS (OREGON STATEWIDE PLANNING GOAL 10) 20-YEAR HOUSING NEED 2023 - 2043 September 21, 2023 it I JOH NSON ECONOMICS AN 25-0001 EXHIBIT E-1/PAGE 1 OF 55 Acknowledgments Johnson Economics prepared this report for the City of Lake Oswego.Johnson Economics and the City of Lake Oswego thank the many people who helped to develop this document. City Staff Erik Olson, Long Range Planning Manager Jessica Numanoglu, Interim Community Development Director Lake Oswego Housing Task Force Kasey Adler,Transportation Advisory Board Yoko Kinoshita, Resident Kyrsten Baumgart, Housing producer Rebecca Lane, Resident Phil Bertrand, Housing producer Rosalie Nowalk, Resident Joseph M. Buck, City Council Liaison John E. Pauley, Resident Thea Croman, DLCD Bruce Poinsette, Development Review Commission Kelly Reid, DLCD Phillip Stewart, Planning Commission Liaison Douglas Corder, 50+Advisory Board David Tangvald, Housing producer Pat Ginn, Resident Kimvi To, D.E.I. Advisory Board Diana Howell, Resident John Turchi, Resident Cara Kao-Young, Resident Sarah Walker, Housing producer Betty Jung, Resident Consultants Brendan Buckley,Johnson Economics Andrew Parish, MIG Matt Hastie, MIG This report was prepared in accordance with the requirements of OAR 660 Division 8:Interpretation of Goal 10 Housing. This project is funded by the State of Oregon through the Department of Land Conservation and Development. The contents of this document do not necessarily reflect the views or policies of the State of Oregon. City of Lake Oswego Johnson Economics 380 A Ave. 621 SW Alder Street Lake Oswego, OR 97034 Suite 605 (503) 635-0270 Portland, OR 97205 (503) 295-7832 CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 1 AN 25-0001 EXHIBIT E-1/PAGE 2 OF 55 TABLE OF CONTENTS I. INTRODUCTION 3 II. CITY OF LAKE OSWEGO DEMOGRAPHIC PROFILE 4 A. POPULATION GROWTH 5 B. HOUSEHOLD GROWTH &SIZE 5 C. FAMILY HOUSEHOLDS 5 D. GROUP QUARTERS POPULATION 6 E. HOUSING UNITS 6 F. AGE TRENDS 6 G. DIVERSITY TRENDS 8 H. PEOPLE WITH A DISABILITY 10 I. INCOME TRENDS 11 J. POVERTY STATISTICS 12 K. EMPLOYMENT LOCATION TRENDS 12 III. CURRENT HOUSING CONDITIONS 14 A. HOUSING TENURE 14 B. HOUSING STOCK 14 C. NUMBER OF BEDROOMS 14 D. UNIT TYPES BY TENURE 15 E. AGE AND CONDITION OF HOUSING STOCK 16 F. HOUSING COSTS VS. LOCAL INCOMES 17 G. PUBLICLY ASSISTED HOUSING 18 IV. CURRENT HOUSING NEEDS(CITY OF LAKE OSWEGO) 20 V. FUTURE HOUSING NEEDS-2043(CITY OF LAKE OSWEGO) 26 VI. RECONCILIATION OF FUTURE NEED(2043)&LAND SUPPLY 32 APPENDIX A: BUILDABLE LAND INVENTORY SUMMARY 35 CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 2 AN 25-0001 EXHIBIT E-1/PAGE 3 OF 55 I. INTRODUCTION This analysis outlines a forecast of housing need within the City of Lake Oswego. Housing need and resulting land need are forecast to 2043,consistent with the 20-year need assessment requirements of Oregon Revised Statutes.' This report presents a housing need analysis (presented in number and types of housing units) and a residential land need analysis, based on those projections. The primary data sources used in generating this forecast were: ■ Portland State University Population Research Center ■ Metro ■ U.S. Census ■ Claritas2 ■ Oregon Employment Department ■ City of Lake Oswego ■ Clackamas County ■ Other sources are identified as appropriate. This analysis relies heavily on Census data from both the 2020 Decennial Census and the American Community Survey (ACS).All Census data feature some margin of error but remain the best source of data available on many demographic and housing subjects. One limitation of the 2020 Census is the release schedule of data sets,which takes place over several years following the year of the Census. Thus far, data has been released on: Population; Race; Latino ethnicity; number of Households; number of Housing Units; and Group Quarters population. While these are key baseline data sets utilized in this analysis, any additional nuance on demographics and housing from the 2020 Census are not yet available,with the next data release expected later in 2023. Despite the limitations,the 2020 Census is relied upon here as the best available source for the key indicators listed above in Lake Oswego,as of 2023. For more detailed data sets on demographics and housing,this analysis relies on the American Community Survey (ACS), which features a higher margin of error on all tables than the Decennial Census. The ACS is a survey of a representative sample of households which the Census uses to make estimates generalized to the population of the relevant geography.This analysis relies whenever possible on the most recent 2021 ACS 5-year estimates.The 5-year estimates have a lower margin of error than the ACS 1-year estimates. 1 ORS 197.628;OAR 660-025 2 Claritas is a third-party company providing data on demographics and market segmentation.It licenses data from the Nielson Company which conducts direct market research including surveying of households across the nation. Nielson combines proprietary data with data from the U.S.Census,Postal Service,and other federal sources,as well as local-level sources such as Equifax,Vallassis and the National Association of Realtors. Projections of future growth by demographic segments are based on the continuation of long-term and emergent demographic trends identified through the above sources. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 3 AN 25-0001 EXHIBIT E-1/PAGE 4 OF 55 II. CITY OF LAKE OSWEGO DEMOGRAPHIC PROFILE SUMMARY The following table (Figure 2.1) presents a profile of City of Lake Oswego demographics from the 2000 and 2010 Census. It also reflects the estimated population of this area as of 2023 from PSU estimates,forecasted forward to 2023 using the estimated growth rate between 2010 and 2022. ■ Lake Oswego is a City of over 41,500 people located in Clackamas County in the southern-central area of the Portland metropolitan region. ■ Based on estimated population, Lake Oswego is the 13th largest city in the state by population, similar in size to Oregon City regionally,or Keizer and Grants Pass statewide.Lake Oswego has about 1.5 times the population of neighboring West Linn or Tualatin,and about 75%of the population of Tigard. ■ Lake Oswego has experienced modest growth, growing roughly 18% since 2000, or less than 1% per year. In contrast, Clackamas County and the state experienced population growth of 26% and 25% respectively. (US Census and PSU Population Research Center) FIGURE 2.1:LAKE OSWEGO DEMOGRAPHIC PROFILE POPULATION, HOUSEHOLDS, FAMILIES,AND YEAR-ROUND HOUSING UNITS 2000 2010 Growth 2023 Growth (Census) (Census) 00-10 (PSU) 10-23 Population1 35,278 36,619 4% 41,550 13% Households2 14,824 15,893 7% 17,481 10% Families3 9,775 10,079 3% 11,842 17% Housing Units4 15,668 16,995 8% 18,345 8% Group Quarters Populations 163 222 36% 329 48% Household Size(non-group) 2.37 2.29 -3% 2.36 3% Avg.Family Size 2.93 2.88 -2% 2.97 3% PER CAPITA AND MEDIAN HOUSEHOLD INCOME 2000 2010 Growth 2023 Growth (Census) (Census) 00-10 (Proj.) 10-23 Per Capita ($) $42,166 $53,652 27% $74,600 39% Median HH($) $71,597 $84,186 18% $123,300 46% SOURCE:Census,Metro Consolidated Forecast,PSU Population Research Center,and Johnson Economics Census Tables: DP-1(2000,2010);DP-3(2000);S1901;519301 1 From Census,PSU Population Research Center,growth rate 2010-2022 extended to 2023 2 2023 Households=(2023 population-Group Quarters Population)/2023 HH Size 3 Ratio of2023 Families to total HH is based on 2021 ACS5-year Estimates 4 2023 housing units are the'20 Census total plus new units permitted from'20 through'22(source: Census,City) 5 2023 Group Quarters Population based on 5-year ACS estimates 2017-2021 ■ Lake Oswego was home to an estimated 17,500 households in 2023, an increase of over 2,650 households since 2000. The percentage of families has increased slightly from 66% of all households in 2000 to 68% in 2023. The city has a similar share of family households to Clackamas County (69%) but higher than the state (63%).Average household size is estimated to have remained fairly stable during this period. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 4 AN 25-0001 EXHIBIT E-1/PAGE 5 OF 55 • Lake Oswego's estimated average household size is 2.4 persons. This is lower than the Clackamas County average of 2.6 and similar to the statewide average of 2.44. A. POPULATION GROWTH Since 2000, Lake Oswego has grown by nearly 6,300 people within the UGB, or 18% in 23 years. This was lower than the countywide rate of growth. Clackamas County as a whole has grown an estimated 26%since 2000, while other cities in the county such as West Linn and Oregon City grew by 23% and 46% respectively. Portland's population grew by an estimated 19%during this period (PSU Population Research Center). B. HOUSEHOLD GROWTH&SIZE As of 2023,the city has an estimated 17,500 households. Since 2000, Lake Oswego has added an estimated 2,650 households.This is an average of roughly 115 households annually during this period. The growth since 2000 has paced the growth in new housing units,which have been permitted at the rate of roughly 117 units per year. There has been a general trend in Oregon and nationwide towards declining household size as birth rates have fallen, more people have chosen to live alone, and the Baby Boomers have become "empty nesters." While this trend of diminishing household size is expected to continue nationwide,there are limits to how far the average can fall. Lake Oswego's average household size of 2.4 people,with 68%family households,is smaller than Clackamas County (2.6 persons; 69%families). Figure 2.2 shows the share of households by the number of people for renter and owner households in 2021(latest data available),according to the Census.Renter households are more likely to be one-person households,with 75% having two or fewer residents. Owner households are more likely to have two or more persons. FIGURE 2.2:NUMBER OF PEOPLE PER HOUSEHOLD,CITY OF LAKE OSWEGO 0 7-or-more 0% Renter 6 person 1% Owner 2% 5-person 3% 4% in 2° 4-person 11% 18% a = 3-person 11/0 0 19/0 2-person 35/ o 38/o 1-person 40% 20% 0% 5% 10% 15% 20% 25% 30% 35% 40% Share of Households SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables: B25009(2021 ACS 5-yr Estimates) C. FAMILY HOUSEHOLDS As of the 2021 ACS,68%of Lake Oswego households were family households,up from 63.4%of households in 2010. The total number of family households in Lake Oswego is estimated to have grown by over 2,060 since 2000.The Census defines family households as two or more persons, related by marriage, birth or adoption and living together. In 2023,family households in Lake Oswego have an estimated average size of 2.97 people. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 5 AN 25-0001 EXHIBIT E-1/PAGE 6 OF 55 D. GROUP QUARTERS POPULATION As of the 2020 Census, the City of Lake Oswego had an estimated group quarters population of 0.8%of the total population, or 329 persons. Group quarters include such shared housing situations as nursing homes, prisons, dorms, group residences, military housing, or shelters. For the purposes of this analysis, these residents are removed from the estimated population total, before determining the number of other types of housing that are needed for non-group households.In Lake Oswego,nearly 90%of the group quarters population is found in assisted living facilities. E. HOUSING UNITS Data from the City of Lake Oswego and the US Census indicate that the city added roughly 2,680 new housing units since 2000, representing 17% growth in the housing stock. This number of new units is slightly higher than the growth in new households estimated during the same period (2,660), indicating that housing growth has kept pace with growing need. As of 2023, the city had an estimated housing stock of roughly 18,350 units for its 17,500 estimated households. This translates to an estimated average vacancy rate of 4.7%. Residential Permits:An average of 117 units have been permitted annually since 2000,with 24%being multi-family units. Most multi-family housing in Lake Oswego has been built in the last decade. FIGURE 2.3:HISTORIC AND PROJECTED RESIDENTIAL PERMITS,CITY OF LAKE OSWEGO Housing Permits •Multi-Family 350 •Single Family 300 250 200 150 100 ■ 50 I I I I I I I ' I I I I I I I Hi . 0 00 O1 liii Oco Orb O 'L yR tico ti� LO y'L ,LO .y0 ,LO ,LO ,LO .y0 ,LO ,LO ,LO .y0 ,LO ,LO SOURCE:HUD F. AGE TRENDS The following figure shows the share of the population falling in different age cohorts between the 2000 Census and the most recent 5-year American Community Survey estimates. As the chart shows,there is a general trend for middle age and young cohorts to fall as share of total population, while older cohorts have grown in share.This is in keeping with the national trend caused by the aging of the Baby Boom generation. Overall, Lake Oswego has an older population than the county,with a similar share of children, but a smaller share of those aged 25 to 44 years. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 6 AN 25-0001 EXHIBIT E-1/PAGE 7 OF 55 FIGURE 2.4:AGE COHORT TRENDS,2000-2021 25% Lake Oswego(2000) o N Lake Oswego(2021) 20% N o o Clack.Co.(2021) ti Ln v o � o 15% - r ,, ti tsilCV o c-I o e-1 c ,-IO o e-1 O r-I %-1 O c 10% `" al I c o i to5% � N N c- 0% 1ll ''' '''' y�Ae' ��-orate ��Ae' ��aaath h��eac5 ��eate ��eat5 ��aaach A'. aec �o �o �o �o �o ,so �0 cb SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables:QT-P1(2000);S0101(2021 ACS 5-yr Estimates) • The cohorts which grew the most in share during this period were those aged 55 to 74 years.Still,an estimated 79%of the population is under 65 years of age. • In the 2021 ACS, the local median age was an estimated 46 years, compared to 40 years in Oregon, and 39 years nationally. Figure 2.5 presents the share of households with children, and the share of population over 65 years for comparison. Compared to state and national averages, Lake Oswego has a similar share of households with children. However,at 21%,the share of population over 65 is higher than the state and national figures. FIGURE 2.5:SHARE OF HOUSEHOLDS WITH CHILDREN POPULATION OVER 65 YEARS(LAKE OSWEGO) Share of Households with Children Share of Population Over 65 Years 40% 40% 31% 31% 30% 28% 30% 21% 20% 20% 18% 16% 10% 10% 0% 0% Lake Oswego Oregon USA Lake Oswego Oregon USA SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables: B11005;S0101(2021 ACS 5-yr Estimates) CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 7 AN 25-0001 EXHIBIT E-1/PAGE 8 OF 55 G. DIVERSITY TRENDS The following figure presents the distribution of Lake Oswego's population by race and Hispanic ethnicity. The community grew more diverse between the 2010 and 2020 Census, with the population's white (non-Hispanic) share falling from 90%to 80%. The Asian population makes up 8% of the population, and the Hispanic or Latino population makes up 5%of residents.9%of residents identify as two or more races. FIGURE 2.6:RACIAL AND ETHNIC DIVERSITY,2010—2020(LAKE OSWEGO) 100% o Share of Population by Race o Lake Oswego(2010) co 80% •Lake Oswego(2020) 60% I •Clackamas Co. 40% Oregon 20% o o oo o e rn L. Hi o o HiME -. a, c v c a, v o co c > coc m O c LE o47, w• (o Z Q CO C (o cc a, J a, U Q l.1 CO N a, O i ` ▪ Q U H 3Ii 1= ~ SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables:P1,P2(2010,2020) In comparison,the share of the population identifying as white is also 80%in Clackamas County,and 75%statewide. The share of Lake Oswego's population identifying as Hispanic or Latino is 5% of the population, indicating over 2,100 people as of the 2020 Census.This is lower than the 14%share statewide. FIGURE 2.7:AVERAGE NUMBER OF PERSONS PER HOUSEHOLD BY RACIAL AND ETHNIC CATEGORY(OREGON) Average Household Size by Race & Ethnicity(Oregon) All Households 2.5 White alone 2.4 Black or African American alone 2.5 American Indian and Alaska Native alone 2.8 Asian alone 2.8 Native Hawaiian and Pacific Islander 3.5 Hispanic or Latino 3.7 Some Other Race alone 4.0 Two or more races: 2.7 0.0 1.0 2.0 3.0 4.0 5.0 Avg.Number of Persons per Household SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables:P17A-H,(State of Oregon,2020) *This data is presented on a statewide basis using the most recent Census data available(2010).The data for the Lake Oswego or Clackamas County geographies feature unusually large margins of error due to the small sample size. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 8 AN 25-0001 EXHIBIT E-1/PAGE 9 OF 55 Minority households tend to have a larger average household size than the average of all households (Figure 2.7). (This figure presents statewide data due to the high margin of error for local data in this data set.) Households identifying as"white alone" have the lowest average household size(2.4 persons),while all other racial and ethnic categories have a larger estimated average household size. Some of the non-white categories, such as black households and those of two or more races,are still similar in average size(2.5 and 2.7 persons,respectively).Those with the largest estimated households are Latinos, Pacific Islanders,and those identifying as"some other race." Larger average household size indicates a need for units with more bedrooms on average among many minority households. Each household has its own housing needs in terms of the number of bedrooms and other factors, based on the specific makeup of each family. Based on voluntary guidelines provided by HUD for public housing programs, households of between 2 persons generally need a one-bedroom unit, households with 3 persons might need two bedrooms, and those with 4 persons might need three bedrooms. Larger households may need four or more bedrooms,which are typically found in single detached homes. Based on statewide data, many racial and ethnic minorities are currently less likely to own the homes they occupy (Figure 2.8)—meaning that they tend to occupy rental units.These communities face systemic obstacles to home ownership,including lower generational wealth, less access to capital and financing,and a history of discrimination in lending and geography(e.g.,redlining).While the country and state try to address explicit discrimination through the law, the legacy of these barriers continues to hamper home ownership for many minority households. Going forward, many communities would benefit from more entry-level homebuying opportunities for these households, as well as additional rental housing for those who are still unready or unable to buy a home. FIGURE 2.8:HOME OWNERSHIP RATE BY RACIAL AND ETHNIC CATEGORY(OREGON) Owner-Occupied Households by Race& Ethnicity(Oregon) All Households 63% White alone 65% Black or African American alone 36% American Indian and Alaska Native alone 48% Asian alone 63% Native Hawaiian and Pacific Islander 32% Hispanic or Latino 45% Some Other Race alone 43% Two or more races: 50% 0% 20% 40% 60% 80% 100% Ownership Rate SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables:B25003A-H,(State of Oregon,2021 ACS 5-year) *This data is presented on a statewide basis using the most recent Census data available(2020).The data for the Lake Oswego or Clackamas County geographies feature larger margins of error due to small sample size in some of the racial categories. Populations from some racial and ethnic minority groups also have lower average incomes and are more likely to have income below the official poverty level when compared to the total population. Such income levels are correlated with a greater share of renter households and impact the types of housing these populations consume, as discussed in further detail below. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 9 AN 25-0001 EXHIBIT E-1/PAGE 10 OF 55 H. PEOPLE WITH A DISABILITY An estimated 8%of the population of Lake Oswego, or 3,140 people, report having some form of disability.This is lower than the statewide rate of 14%and the Clackamas County rate of 12%of people with a disability.(The Census reports these statistics for the"non-institutionalized population.") The following figure presents Census estimates of the types of disability reported among Lake Oswego residents. Any type of disability impacts the type of housing that may be appropriate for a resident,but those with the greatest impact on needed unit type are generally an ambulatory,self-care, or independent living disability.Those with an ambulatory disability often need units with expanded access for a wheelchair,walker,or scooter.Those with self- care or independent living disabilities may require additional safety precautions around the home to protect a resident who cannot always be directly monitored. FIGURE 2.9:LAKE OSWEGO SHARE OF THE POPULATION WITH DISABILITY,BY TYPE Share of Population Population with a disability 7.8% Hearing difficulty 2.4% Vision difficulty 1.7% Cognitive difficulty 2.7% Ambulatory difficulty 2.9% Self-care difficulty 1.1% Independent living difficulty 2.3% 0% 2% 4% 6% 8% 10% SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables:DP02,(2020 ACS 5-year) FIGURE 2.10:LAKE OSWEGO POPULATION WITH A DISABILITY,BY AGE Share of Population with Disability by Age Total population 7.8% Under 18 years . 2.0% 18 to 64 years NM 5.8% 65 years and over 19.5% 0% 5% 10% 15% 20% 25% SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables:DP02,(2020 ACS 5-year) CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 10 AN 25-0001 EXHIBIT E-1/PAGE 11 OF 55 Older residents are more likely to report a disability, including nearly 20%of those over 65 years.Of those aged 18 to 64 years, 6% of the local population reports a disability, and 2% of children. Because Census data tends to undercount the homeless and other vulnerable populations, there are likely more disabled residents in Lake Oswego than reflected in these data. I. INCOME TRENDS The following figure presents data on Lake Oswego's income trends. FIGURE 2.11: INCOME TRENDS,2000—2023(LAKE OSWEGO) PER CAPITA AND MEDIAN HOUSEHOLD INCOME 2000 2010 Growth 2023 Growth (Census) (Census) 00-10 (Proj.) 10-23 Per Capita ($) $42,166 $53,652 27% $74,600 39% Median HH ($) $71,597 $84,186 18% $123,300 46% SOURCE:Census,Metro Consolidated Forecast,PSU Population Research Center,and Johnson Economics Census Tables: DP-1(2000,2010);DP-3(2000);S1901;S19301 ■ Lake Oswego's estimated median household income was$123,000 in 2023.This is nearly 40%higher than the Clackamas County median of$88,500, and 75%higher than the statewide median of$70,000. ■ Lake Oswego's per capita income is roughly$75,000. ■ Median income has grown an estimated 46% between 2010 and 2023, in real dollars. Inflation was an estimated 34%over this period,so the local median income has well exceeded inflation.This is not the case in many regions and nationally,where income growth has not kept pace with inflation. FIGURE 2.12: HOUSEHOLD INCOME COHORTS,2021(LAKE OSWEGO) Household Income Groups $200,000 or more 27% $150,000 to$199,999 12% $100,000 to$149,999 20% $75,000 to$99,999 11% $50,000 to$74,999 11% $35,000 to$49,999 6% $25,000 to$34,999 4% $15,000 to$24,999 4% $10,000 to$14,999 2% Less than$10,000 3% 0% 5% 10% 15% 20% 25% 30% SOURCE: US Census,Census Tables:S1901(2021 ACS 5-yr Est.) Figure 2.12 presents the estimated distribution of households by income as of 2021. The largest income cohorts are those households earning between $100k and $200k per year (32%), followed by households earning over $200k(27%). ■ 41%of households earn less than$100,000. ■ Roughly 19%of households earn less than$50k per year. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 11 AN 25-0001 EXHIBIT E-1/PAGE 12 OF 55 J. POVERTY STATISTICS According to the US Census,the official poverty rate in Lake Oswego is an estimated 4%over the most recent period reported (2021 5-year estimates).3 This is roughly 1,700 individuals in Lake Oswego. In comparison, the official poverty rate in Clackamas County is 9%,and at the state level is 17%. In the 2017-21 period: • The Lake Oswego poverty rate is low among all groups, but highest among those 65 years and older at 5%.The rate is 4%among those 18 to 64 years of age.The estimated rate is lowest for children at 3%. • For those without a high school diploma,the poverty rate is 11%. • Among those who are employed the poverty rate is 2%,while it is 7%for those who are unemployed. Information on affordable housing is presented in Section II F of this report. FIGURE 2.13:POVERTY STATUS BY CATEGORY(LAKE OSWEGO) Poverty Level of Subgroups Under 18 years 3% 18 to 64 years 4% 65 years and over 5% Employed 2% Unemployed 7% Less than high school 11% High school 10% Some college,associate's 7% Bachelor's degree or higher -9 3% 0% 5% 10% 15% 20% SOURCE: US Census Census Tables: S1701(2021 ACS 5-yr Est.) K. EMPLOYMENT LOCATION TRENDS This section provides an overview of employment and industry trends in Lake Oswego that are related to housing. Commuting Patterns: The following figure shows the inflow and outflow of commuters to Lake Oswego according to the Census Employment Dynamics Database.These figures reflect"covered employment" as of 2019,the most recent year available. Covered employment refers to those jobs where the employee is covered by federal unemployment insurance. This category does not include many contract employees and self-employed and therefore is not a complete picture of local employment.The figure discussed here is best understood as indicators of the general pattern of commuting and not exact figures. As of 2017,the most recent year available,the Census estimated there were roughly 23,100 covered employment jobs located in Lake Oswego. Of these, an estimated 2,250 or 10%, are held by local residents,while nearly 21,000 employees commute into the city from elsewhere.This general pattern is fairly common among many communities Census Tables:S1701(2018 ACS 5-yr Estimates);Methodology The Census Bureau uses a set of income thresholds that vary by family size and composition to determine who is in poverty. There are 48 separate income thresholds set based on the possible combinations of household composition. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 12 AN 25-0001 EXHIBIT E-1/PAGE 13 OF 55 in the Metro area, but the pattern is particularly stark here.The most common homes of local workers commuting into the city are Portland, Beaverton,or Tigard. This data set predates the surge in remote working that has taken place over the last few years. In prior years, it was safe to assume that most residents holding jobs outside the community likely commuted physically. Now, a resident might hold a job in another city but work from home. Unfortunately, these data do not quantify this growing segment. Similarly, of the estimated 18,000 employed Lake Oswego residents, 88% of them commute elsewhere to their employment. The most common destinations for Lake Oswego commuters are Portland and Beaverton. Smaller shares work elsewhere in the Portland metro or in the mid-Willamette Valley. FIGURE 2.14: COMMUTING PATTERNS(PRIMARY JOBS),LAKE OSWEGO Metzger • -. Milwaukie Hospi C A.I-T JL HILL • iJ 14 Tryon Cre=elc State - Q 1 1Iwaukie Et M Natural Area .ti • 1 4a e L i�'. - . - -- �_ 1— lardiL,' ----.-------- \ r2:.,, i 99'E 'Os.•ve o 20,900 2,250 15,800 Work in Lake Oswego, Live and work Live in Lake Oswego, live elsewhere \ in Lake Oswego work elsewhere :ryanl , n•s arrd .ink Durham i! + _. R . t . / 10% 12% / 88% Jena'i .image Center 1, •River Grove :: ualtifi1 Stafford ) 1 Legacy Meridian. ` m I, I L■ l• I , .Source: US Census Longitudinal Employer-Household Dynamics Jobs/Household Ratio: Lake Oswego features a balanced jobs-to-households ratio.There are an estimated 23,000 jobs in Lake Oswego (covered), and an estimated 17,500 households in Lake Oswego.This represents 1.3 jobs per household.There is no standard jobs-to-households ratio that is right for all communities,but it can provide a guide to the balance between employment uses and residential uses in the city. There is an average of 1.0 job held for each Lake Oswego household, a majority of which are located outside the city. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 13 AN 25-0001 EXHIBIT E-1/PAGE 14 OF 55 III. CURRENT HOUSING CONDITIONS This section presents a profile of the current housing stock and market indicators in Lake Oswego.This profile forms the foundation to which current and future housing needs will be compared. A. HOUSING TENURE Lake Oswego has a greater share of homeowner households than renter households.The 2021 ACS estimates that 71% of occupied units were owner occupied, and only 29% renter occupied. The ownership rate is little changed since 2000.The estimated ownership rate is higher across Clackamas County(73%)and lower statewide (63%). B. HOUSING STOCK As shown in Figure 2.1, Lake Oswego had an estimated 18,350 housing units in 2023, with a vacancy rate of 5% (includes ownership and rental units).The housing stock has increased by roughly 2,680 units since 2000,or growth of over 17%. FIGURE 3.1: ESTIMATED SHARE OF UNITS,BY PROPERTY TYPE,2023 Lake Oswego, Oregon 80% 63% 60% 40% 21% 20% 0% 9% 6% - 1% 0% 0% Single Single Duplex 3-or 4-plex 5+Units Manuf. Boat, RV, Detached Attached MFR home other temp SOURCE: US Census,City of Lake Oswego Figure 3.1 shows the estimated number of units by type in 2023 based on US Census. Detached single-family homes represent an estimated 63%of housing units. Units in larger apartment complexes of 5 or more units represent 21%of units,and other types of attached homes represent 16% of units. (Attached single family generally includes townhomes, and some 2 to 4-plexes which are separately metered.) Manufactured homes represent well less than 1%of the inventory. C. NUMBER OF BEDROOMS Figure 3.2 shows the share of units for owners and renters by the number of bedrooms they have. In general, owner-occupied units are much more likely to have three or more bedrooms,while renter-occupied units are much more likely to have two or fewer bedrooms. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 14 AN 25-0001 EXHIBIT E-1/PAGE 15 OF 55 FIGURE 3.2: NUMBER OF BEDROOMS FOR OWNER AND RENTER UNITS,2021(LAKE OSWEGO) Number of Bedrooms 5 or more 1% Renter 11% Owner 4 bedrooms 5% 39% 3 bedrooms 19% 33% 2 bedrooms 43% 14% 1 bedroom ° 27% 2% Studio ° 6% 0/ 0% 10% 20% 30% 40% 50% SOURCE: US Census Census Tables: B25042(2021 ACS 5-year Estimates) D. UNIT TYPES BY TENURE As Figure 3.3 and 3.4 show, a large share of owner-occupied units (81%), are detached homes, which is related to why owner-occupied units tend to have more bedrooms. Renter-occupied units are much more distributed among a range of structure types.About 18%of rented units are estimated to be detached homes or manufactured homes, while the remainder are some form of attached unit. Nearly 60%of rental units are in larger apartment complexes. FIGURE 3.3: CURRENT INVENTORY BY UNIT TYPE,FOR OWNERSHIP AND RENTAL HOUSING(LAKE OSWEGO) OWNERSHIP HOUSING OWNERSHIP HOUSING Single Single 5+Units Manuf. Boat,RV, Total Detached Attached Duplex 3-or 4-plex MFR home other temp Units Totals: 10,557 1,292 9 337 781 32 0 13,008 Percentage: 81.2% 9.9% 0.1% 2.6% 6.0% 0.2% 0.0% 100% RENTAL HOUSING RENTAL HOUSING Single Single 5+Units Manuf. Boat,RV, Total Detached Attached Duplex 3-or 4-plex MFR home other temp Units Totals: 934 332 250 675 3,145 0 0 5,337 Percentage: 17.5% 6.2% 4.7% 12.7% 58.9% 0.0% 0.0% 100% Sources: US Census,JOHNSON ECONOMICS,CITY OF LAKE OSWEGO CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 15 AN 25-0001 EXHIBIT E-1/PAGE 16 OF 55 FIGURE 3.4: CURRENT INVENTORY BY UNIT TYPE,BY SHARE Lake Oswego, Oregon 100% 81% ■Owner 80% • Rental 59% g 60% 0 40% 20% 18/ 10/° 13% 6% 6% 0% 5% 3% 0% 0% 0% 0% 0% Single Single Duplex 3-or 4-plex 5+Units Manuf. Boat, RV, Detached Attached MFR home other temp Unit Type Sources: US Census,JOHNSON ECONOMICS,CITY OF LAKE OSWEGO E. AGE AND CONDITION OF HOUSING STOCK Lake Oswego's housing stock reflects the pattern of development over time.The greatest periods of development in Lake Oswego were in the 1970's and 1980's. Roughly 15%of the housing stock has been built since 2000. FIGURE 3.5: AGE OF UNITS FOR OWNERS AND RENTERS(LAKE OSWEGO) 30% 25% Owner 25% % Renter 20% j0i10JI2i4fP23 * :5% 3%■ 1/ of 3� Year Housing Unit Built c; SOURCE: US Census Census Tables: B25036(2021 ACS 5-year Estimates) • Unfortunately, good quantitative data on housing condition is generally unavailable without an intensive on- site survey of all local housing,which is beyond the scope of this analysis.Census categories related to housing condition are ill-suited for this analysis, dealing with such issues as units without indoor plumbing,which was more common in the mid-20th Century, but is an increasingly rare situation.Age of units serves as the closest reliable proxy for condition with available data. • For ownership units, older homes may be in poor condition, but are also more likely to have undergone some repair and renovation over the years. Rental units are more likely to degrade steadily with age and wear-and- CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 16 AN 25-0001 EXHIBIT E-1/PAGE 17 OF 55 tear, and less likely to receive sufficient reinvestment to keep them in top condition, though this is not universally true. F. HOUSING COSTS VS. LOCAL INCOMES Figure 3.6 shows the share of owner and renter households who are paying more than 30% of their household income towards housing costs, by income segment. (Spending 30%or less on housing costs is a common measure of"affordability" used by HUD and others,and in the analysis presented in this report.) As one would expect, households with lower incomes tend to spend more than 30%of their income on housing, while incrementally fewer of those in higher income groups spend more than 30% of their incomes on housing costs.Of those earning less than$20,000,an estimated 91%of owner households and 100%of renters spend more than 30%of income on housing costs. Even among households earning between $50,000 and $75,000 per year, a majority are housing cost burdened. Because Lake Oswego has an income distribution skewed towards higher income levels,there are relatively few households in these lower income segments,compared to most other cities. In total,the US Census estimates that over 31%of Lake Oswego households pay more than 30%of income towards housing costs(2021 American Community Survey, B25106) FIGURE 3.6: SHARE OF LAKE OSWEGO HOUSEHOLDS SPENDING MORE THAN 30% ON HOUSING COSTS, BY INCOME GROUP 100% 100% 91% 92% 88% Owner Households o 82% 80% 74% Renter Households 64% A 60% 51% L0 U, N tto 40% •c = 20% 12% 16% v 0% n Less than $20,000 to $35,000 to $50,000 to $75,000 or $20,000 $34,999 $49,999 $74,999 more Household Income Sources: US Census,JOHNSON ECONOMICS Census Table: B25106(2021 ACS 5-yr Estimates) Housing is generally one of a household's largest living costs,if not the largest.The ability to find affordable housing options, and even build wealth through ownership, is one of the biggest contributors to helping lower income households save and cultivate wealth. Even if renting, affordable housing costs allow for more household income to be put to other needs, including saving. The following figures show the percentage of household income spent towards gross rent' for local renter households only.This more fine-grained data shows that not only are 49%of renters spending more than 30%of their income on gross rent, but an estimated 29%of renters are spending 50%or more of their income on housing and are considered severely rent-burdened. 'The Census defines Gross Rent as"the contract rent plus the estimated average monthly cost of utilities(electricity,gas,and water and sewer) and fuels(oil,coal,kerosene,wood,etc.)if these are paid by the renter(or paid for the renter by someone else)."Housing costs for homeowners include mortgage,property taxes,insurance,utilities and condo or HOA dues. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 17 AN 25-0001 EXHIBIT E-1/PAGE 18 OF 55 Renters are disproportionately lower income relative to homeowners. Housing cost burdens are felt more broadly for these households, and as the analysis presented in a later section shows there is a need for more affordable rental units in Lake Oswego,as in most communities. FIGURE 3.7: PERCENTAGE OF HOUSEHOLD INCOME SPENT ON GROSS RENT,LAKE OSWEGO RENTER HOUSEHOLDS 35% 30% 29% 25% 25% 22% 0 20% =• 15% 14% v • 10% 7% N 5% � ■ 0% olo y�olo 'Lc) ��Io ��olo oe, o O O 0 Lod \ 01 of %of Income to Gross Rent Sources: US Census,JOHNSON ECONOMICS Census Table: B25070(2021 ACS 5-yr Estimates) G. PUBLICLY ASSISTED HOUSING Oregon Housing and Community Services(OHCS)tracks three currently operating affordable housing properties in Lake Oswego,with a total of 76 units.These are properties that are funded through HUD programs,tax credits and other programs which guarantee subsidized rents for qualified households.All of these units,save one,are offered for elderly residents. The Marylhurst Commons, currently under development, is planned to offer 100 affordable units for families.Completion is expected in 2024. The Housing Authority of Clackamas County administers over 1,600 Section 8 housing choice vouchers that allow low-income participants to find rental units anywhere in the county. Under this program, the renters can find participating landlords and the voucher helps to subsidize the cost of a market-rate rental unit.The unit does not have to be in a property dedicated to subsidized affordable housing but can be in any rental property. The high share of renters still paying over 30% of their income towards housing costs indicates that there is an ongoing need for rental units at the lowest price points. Agricultural Worker Housing: Lake Oswego is not currently home to properties dedicated to agricultural workers. This population may also be served by other available affordable units. People Experiencing Homelessness: The Census does make a multi-faceted effort to include the unhoused population in the total Decennial Census count, by attempting to enumerate these individuals at service providers, and in transitory locations such as RV parks or campgrounds,as of the official Census data (4/1/20). However, it is difficult to make an accurate count of this population, and it is generally presumed that the unhoused are undercounted in the Census. The most recent (January 2022) Point-in-Time count of people experiencing homelessness and households experiencing homelessness in Clackamas County' found 597 unhoused individuals on the streets, in shelters, or 5 Figures are for the entire County CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 18 AN 25-0001 EXHIBIT E-1/PAGE 19 OF 55 other temporary and/or precarious housing. The estimated 597 unhoused individuals represent 0.1% of the county's total estimated population in 2022. • An estimated 45%of individuals were in some sort of temporary shelter,while 55%were unsheltered. • The total included 51 children (under age 18), and 26 youth (aged 18-24). • Of those indicating a gender, 60%of those counted identified as men,40%women. • 5%of those counted were Hispanic or Latino compared to 9.5%in the general population. • 304 individuals,or 51%,were counted as"chronically homeless".6 While the Point-in-Time count is one of the few systematized efforts to count people experiencing homelessness across the country in a regular, structured way, it is widely thought to undercount the population of unhoused individuals and households. People who are doubled up,couch surfing,or experiencing domestic violence may not always be accurately counted. In addition to the impossibility of finding all unsheltered individuals experiencing homelessness,the count is conducted in late January,when homeless counts are likely near their lowest of the year due to inclement weather. It also relies on self-reporting. A recent analysis prepared for OHCS to test a potential approach for preparing Housing Capacity Analyses on a regional basis included estimates of the unhoused population in Oregon communities,including Lake Oswego.The approach utilizes a combination of data from the bi-annual Point-in-Time count and from tracking of unhoused school-aged children in keeping with the McKinney-Vento Act.The analysis estimates 239 households experiencing homelessness in Lake Oswego as of mid-2020. These include households that are unsheltered, in temporary shelters, or staying with friends or relatives. These households are a component of current and future housing need. The persistence of people experiencing homelessness speaks to the need for continuing to build a full spectrum of services and housing types to shelter this population,from temporary shelter to subsidized affordable housing. An analysis of the ability of current and projected housing supply to meet the needs of low-income people and the potential shortfall is included in the following sections of this report. 6 HUD defines "chronically homeless" as an individual with a disability as defined by the McKinney-Vento Assistance Act,who has been in uninhabitable conditions for more than 12 mo.or on four separate occasions in the last three years;or has been in institutional care for less than 90 days;or a family with an adult head of household who meets this definition. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 19 AN 25-0001 EXHIBIT E-1/PAGE 20 OF 55 IV. CURRENT HOUSING NEEDS (CITY OF LAKE OSWEGO) The profile of current housing conditions in the study area is based on Census 2010, which the Portland State University Population Research Center(PRC) uses to develop yearly estimates through 2019. The 2019 estimate is forecasted to 2023 using the estimated growth rate realized since 2010. FIGURE 4.1:CURRENT LAKE OSWEGO HOUSING PROFILE(2023) CURRENT HOUSING CONDITIONS(2023) SOURCE Total 2023 Population: 41,550 PSU Pop.Research Center - Estimated group housing population: 329 (0.8%of Total) US census Estimated Non-Group 2023 Population: 41,221 (Total-Group) Avg. HH Size: 2.36 US Census Estimated Non-Group 2023 Households: 17,481 (Pop/HH Size) Total Housing Units: 18,345 (Occupied+Vacant) Census 2010+permits Occupied Housing Units: 17,481 (=#of HH) Vacant Housing Units: 864 (Total HH-Occupied) Current Vacancy Rate: 4.7% (Vacant units/Total units) Sources: Johnson Economics,City of Lake Oswego,PSU Population Research Center,U.S.Census *This table reflects population,household and housing unit projections shown in Figure 2.1 We estimate a current population of 41,550 residents, living in 17,481 households (excluding group living situations).Average household size is 2.4 persons. There are an estimated 18,345 housing units in the city, indicating an estimated vacancy rate of 5%.This includes units vacant for any reason, not just those which are currently for sale or rent. ESTIMATE OF CURRENT HOUSING DEMAND Following the establishment of the current housing profile, the current housing demand was determined based upon the age and income characteristics of current households. The analysis considered the propensity of households in specific age and income levels to either rent or own their home (tenure), in order to derive the current demand for ownership and rental housing units and the appropriate housing cost level of each.This is done by combining data on tenure by age and tenure by income from the Census American Community Survey(tables: B25007 and B25118, 2021 ACS 5-yr Estimates). The analysis takes into account the average amount that owners and renters tend to spend on housing costs. For instance, lower income households tend to spend more of their total income on housing, while upper income households spend less on a percentage basis. In this case, it was assumed that households in lower income bands would prefer housing costs at no more than 30% of gross income (a common measure of affordability). Higher income households pay a decreasing share down to 20%for the highest income households. While the Census estimates that most low-income households pay more than 30%of their income for housing,this is an estimate of current preferred demand. It assumes that low-income households prefer (or demand) units affordable to them at no more than 30%of income, rather than more expensive units. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 20 AN 25-0001 EXHIBIT E-1/PAGE 21 OF 55 Figure 4.2 presents a snapshot of current housing demand (i.e. preferences)equal to the number of households in the study area (17,481).The breakdown of tenure(owners vs. renters) reflects data from the 2021 ACS. FIGURE 4.2:ESTIMATE OF CURRENT HOUSING DEMAND IN LAKE OSWEGO(2023) Ownership Price Range #of Income Range /of Cumulative Households Total $0k-$80k 330 Less than$15,000 2.7% 2.7% $80k-$130k 267 $15,000-$24,999 2.2% 4.9% $130k-$180k 357 $25,000-$34,999 2.9% 7.8% $180k-$250k 636 $35,000-$49,999 5.2% 13.0% $250k-$350k 1,051 $50,000-$74,999 8.6% 21.7% $350k-$440k 1,147 $75,000-$99,999 9.4% 31.1% $440k-$510k 1,109 $100,000-$124,999 9.1% 40.2% $510k-$560k 892 $125,000-$149,999 7.3% 47.5% $560k-$680k 1,827 $150,000-$199,999 15.0% 62.5% $680k+ 4,577 $200,000+ 37.5% 100.0% Totals: 12,191 %of All: 69.7% Rental Rent Level #of Income Range /of Cumulative Households Total $0-$400 348 Less than$15,000 6.6% 6.6% $400-$700 383 $15,000-$24,999 7.2% 13.8% $700-$900 554 $25,000-$34,999 10.5% 24.3% $900-$1300 621 $35,000-$49,999 11.7% 36.0% $1300-$1800 837 $50,000-$74,999 15.8% 51.9% $1800-$2200 764 $75,000-$99,999 14.4% 66.3% $2200-$2500 505 $100,000-$124,999 9.6% 75.9% $2500-$2800 410 $125,000-$149,999 7.8% 83.6% $2800-$3400 271 $150,000-$199,999 5.1% 88.7% $3400+ 596 $200,000+ 11.3% 100.0% All Households Totals: 5,290 %of All: 30.3% 17,481 Sources: PSU Population Research Center,Claritas.,Census,JOHNSON ECONOMICS Census Tables: B25007, B25106,B25118(2021 ACS 5-yr Estimates) Claritas: Estimates of income by age of householder The estimated home price and rent ranges are irregular because they are mapped to the affordability levels of the Census income level categories. For instance, an affordable home for those in the lowest income category (less than $15,000)would have to cost$80,000 or less.Affordable rent for someone in this category would be $400 or less. The affordable price level for ownership housing assumes 30-year amortization,at an interest rate of 5%(somewhat less than the current market rate,but in line with historic norms),with 10%down payment.These assumptions are designed to represent prudent lending and borrowing levels for ownership households. The 30-year mortgage commonly serves as the standard. In the 2000's, down payment requirements fell significantly, but lending standards tightened significantly since the 2008/9 credit crisis. While 20% is often cited as the standard for most buyers,it is common for homebuyers,particularly first-time buyers,to pay significantly less than this using available programs. Interest rates are subject to disruption from national and global economic forces, and therefore impossible to forecast beyond the short term. The 5% used here is roughly the average 30-year rate over the last 20 years.The CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 21 AN 25-0001 EXHIBIT E-1/PAGE 22 OF 55 general trend has been falling interest rates since the early 1980's,but coming out of the recent inflationary period, the Federal Reserve has raised its base rate significantly in recent years and mortgage rates have also climbed to levels not seen in almost 20 years. CURRENT HOUSING INVENTORY The profile of current housing demand(Figure 4.2)represents the preference and affordability levels of households. In reality, the current housing supply (Figures 4.3 and 4.4 below) differs from this profile, meaning that some households may find themselves in housing units which are not optimal, either not meeting the household's own/rent preference,or being unaffordable(requiring more than 30%of gross income). A profile of current housing supply in Lake Oswego was estimated based on permit data from the City of Lake Oswego and Census data from the most recently available 2021 ACS, which provides a profile of housing types (single family, attached, manufactured home, etc.), tenure, housing values, and rent levels. The 5-year estimates from the ACS were used because margin of error is lower than 1-year ACS estimates. • An estimated 71% of housing units are ownership units, while an estimated 29% of housing units are rental units. This is slightly different than the estimated demand profile shown in Figure 4.2, which estimated a bit higher demand for rental units given local income and age levels.The inventory includes vacant units. • 81%of ownership units are detached homes,and very few are manufactured homes. 17.5%of rental units are either single family homes or manufactured homes,while 59%are in structures of 5 units or more. • Of total housing units, an estimated 63%are detached homes or manufactured homes. 37%are some sort of attached unit type. FIGURE 4.3:PROFILE OF CURRENT HOUSING SUPPLY BY TYPE(2023) Lake Oswego, Oregon 100% 81% ■Owner 80% S9/ Rental 60% 0 v 40% 18% 20% 10% 0 13% - 6/ 0% 5% 3% 6% 0% 0% 0% 0% 0% Single Single Duplex 3-or 4-plex 5+Units MFR Manuf. Boat, RV, Detached Attached home other temp Unit Type Sources: US Census,PSU Population Research Center,JOHNSON ECONOMICS Census Tables: B25004, B25032,B25063, B25075(2021 ACS 5-yr Estimates) • The affordability of different unit types is an approximation based on Census data on the distribution of housing units by value(ownership)or gross rent(rentals). • Most subsidized affordable housing units found in the city are represented by the inventory at the lowest end of the rental spectrum. • Ownership housing found at the lower end of the value spectrum generally reflect older, smaller homes, or homes in poor condition on small or irregular lots. It is important to note that these represent estimates of CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 22 AN 25-0001 EXHIBIT E-1/PAGE 23 OF 55 current property value or current housing cost to the owner,not the current market pricing of homes for sale in the city. These properties may be candidates for redevelopment when next they sell but are currently estimated to have low value. FIGURE 4.4:PROFILE OF CURRENT HOUSING SUPPLY,ESTIMATED AFFORDABILITY IN LAKE OSWEGO(2023) Ownership Housing Rental Housing Affordable Estimated Affordable Estimated Income Range Share of Total Units Price Level Units Rent Level Units Less than$15,000 $0k-$80k 135 $0-$400 70 I 1% $15,000-$24,999 $80k-$130k 129 $400-$700 43 I 1% $25,000-$34,999 $130k-$180k 170 $700-$900 106 I 2% $35,000-$49,999 $180k-$250k 406 $900-$1300 518 • 5% $50,000-$74,999 $250k-$350k 735 $1300-$1800 1,852 14% $75,000-$99,999 $350k-$440k 839 $1800-$2200 1,289 12% $100,000-$124,999 $440k-$510k 753 $2200-$2500 602 7% $125,000-$149,999 $510k-$560k 924 $2500-$2800 223 - 6% $150,000-$199,999 $560k-$680k 2,217 $2800-$3400 229 13% $200,000+ $680k+ 6,700 $3400+ 404 39% 71% 13,008 29% 5,337 0% 10% 20% 30% 40% Sources: US Census,PSU Population Research Center,JOHNSON ECONOMICS Census Tables: B25004, B25032,B25063, B25075(2021 ACS 5-yr Estimates) ■ Most housing (58%) in Lake Oswego is found in price and rent levels affordable to those earning at least $125,000 per year,which is close to the city's median income.There is very little housing available to those in lower income segments. Over 90% of housing is affordable to those earning at least $50,000, and only 9% affordable to those earning less than this. COMPARISON OF CURRENT HOUSING DEMAND WITH CURRENT SUPPLY A comparison of estimated current housing demand with the existing supply identifies the existing discrepancies between needs and the housing which is currently available. The estimated number of units outnumbers the number of households by roughly 865 units, indicating an average vacancy rate of 4.7%. In general, this identifies that there is currently support for more ownership housing at lower price points, while the upper end of the market is generally well supplied.This is because most housing in Lake Oswego is clustered at higher property values, which matches the community's high average household income but leaves some households underserved. The analysis finds that the current market rates for most rental units are in the $1,300 to $2,200/month range. Therefore,this is where most of the rental unit supply is currently clustered. However,the greatest unmet need is found at the lower end of the income scale, where many current renters pay more than 30% of their income in housing costs. Rentals at the most expensive levels generally represent single family homes for rent. Figures 4.5 and 4.6 present this information in chart form,comparing the estimated number of households in given income ranges,and the supply of units currently valued(ownership)or priced(rentals)within those income ranges. The data is presented for owner and renter households. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 23 AN 25-0001 EXHIBIT E-1/PAGE 24 OF 55 FIGURE 4.5:COMPARISON OF OWNER HOUSEHOLD INCOME GROUPS TO ESTIMATED SUPPLY AFFORDABLE AT THOSE INCOME LEVELS IN LAKE OSWEGO(2023) Owner Households vs.Current Units 7,000 6,000 •Est.Owner Households N = 5,000 Units Valued at Income Level D - 4,000 0 v 3,000 0 0 2,000 o 1,000 � xk 0 M ■ ■ ■ I 0 0 < < < x0 ) ) ) ) 0) 0 0 00 0 0 0 0 0 0 00 h, p, p, op e c c 0 t gyp, 1, '0 0 0hy hL hgy h h 'lc) O • • • • • h ra� 0 0 0 0 00 0 0 0 0 0 0 0 ys� 0 0 0 0 0 0 0 00h, h, 'h, 0, Ah' 0, h, 0 He hti hu h' h h 0 � h h'\ hti hti Income Cohorts Sources: PSU Population Research Center,City of Lake Oswego,Census,JOHNSON ECONOMICS FIGURE 4.6:COMPARISON OF RENTER HOUSEHOLD INCOME GROUPS TO ESTIMATED SUPPLY AFFORDABLE AT THOSE INCOME LEVELS IN LAKE OSWEGO(2023) Renter Households vs.Current Units 2,000 •Est.Renter Households E1,500 Units Affordable at Income Level t° 1,000 a) U, = 500 x 0 ■ ■ 1II I I I I . h h h h h ti ti ' O ' wren 000 000 000 000 000 00 00 00 hL �e`'� htih hlh, h''h, h`'0 huh 000 1h0 h00 h,' h, 'IN' Income Cohorts Sources: PSU Population Research Center,City of Lake Oswego,Census,JOHNSON ECONOMICS The home value and rent segments which show a"surplus"in Figures 4.5 and 4.6 illustrate where current property values and market rent levels are in Lake Oswego. Housing prices and rent levels will tend to congregate around those levels.These levels will be too costly for some(i.e.require more than 30%in gross income)or"too affordable" for others(i.e.they have income levels that indicate they could afford more expensive housing if they chose). In general, these findings demonstrate that there are few lower-value housing opportunities for many owner households, and potential support for some less expensive types of ownership housing.There is a need for more rental units at lower rent levels(<$900/mo.). HOME SALE PRICES It is important to note that the figures presented in the prior section represent estimates of current property value or current housing cost to the owner, not the current market pricing of homes for sale in the city. For instance, a household living in a manufactured home that has been paid off over many years may have relatively low housing costs.This indicates that one owner household is living in a"lower value"unit. It does not indicate that units at this price point are available on the current market. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 24 AN 25-0001 EXHIBIT E-1/PAGE 25 OF 55 If this hypothetical household were to sell their home, it would sell at a higher price reflecting inflation and current achievable market prices. For this reason,many of the lower value or lower rent units found in the previous section will actually become higher-priced units when they are sold or become vacant. For reference,this section presents home sales data from 2022 to indicate housing costs for new entrants into the market(Figure 4.7). • The median sale price was$860,000. • The average(mean)sale price was$1,075,000. • The average price per square foot was$430/s.f. • The median square footage was 2,300 s.f. FIGURE 4.7:LAKE OSWEGO HOME SALES(12 MONTHS) Home Sales by Unit Type Home Sales by Price Level $900,000+ 319 $800,000-$899,000 66 20% $700,000-$799,000 67 $600,000-$699,000 56 8% $500,000-$599,000 ■ 39 0 ° 72% $400,000-$499,000 . 31 $300,000-$399,000 . 47 $200,000-$299,000 ■ 43 $100,000-$199,000 13 Detached Home Manuf. Home <$100,000 0 Attached Home Condo 0 100 200 300 400 Sources: RMLS,JOHNSON ECONOMICS • 48%of sales were priced above$900,000. • 34%of sales were priced between$500,000 and$899,000. • Only 18%of sales were priced at less than $500,000. • Only 7%of sales were priced below$300,000. Affordability: As indicated, roughly 75%of recent sales in Lake Oswego were priced at least $600,000. Homes in this range would be mostly affordable to households earning at least $175,000 per year, which is well above the median household income of$123,000. Roughly 66% of households earn less than $175,000 per year, meaning that the bulk of housing supply on the current for-sale market(75%) is likely too expensive for most of these households. The findings of current need form the foundation for projected future housing need, presented in the following section. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 25 AN 25-0001 EXHIBIT E-1/PAGE 26 OF 55 V. FUTURE HOUSING NEEDS-2043 (CITY OF LAKE OSWEGO) The projected future(20-year) housing profile(Figure 5.1)in the study area is based on the current housing profile (2023), multiplied by an assumed projected future household growth rate. The projected future growth is the forecasted 2043 population for the City of Lake Oswego included in the most recently adopted Coordinated Population Forecast from Metro for all cities in the region.This was adopted in 2021 and projected a very modest growth rate for Lake Oswego of well less than 1%per year.' FIGURE 5.1:FUTURE HOUSING PROFILE(2043),LAKE OSWEGO PROJECTED FUTURE HOUSING CONDITIONS(2023-2043) SOURCE 2023 Population(Minus Group Pop.) 41,221 (Est.2022 pop.-Group Housing Pop.) PSU Projected Annual Growth Rate 0.05% Metro Coordinated Forecast(2021) Metro 2043 Population(Minus Group Pop.) 41,629 (Total 2043 Population-Group Housing Pop.) Estimated group housing population: 332 1.7%of total pop.(held constant from 2022) US Census Total Estimated 2043 Population: 41,961 Metro Coordinated Forecast(2021) Metro Estimated Non-Group 2043 Households: 19,298 Metro Coordinated Forecast(2021) Metro New Households 2023 to 2043 1,816 Avg. Household Size: 2.16 Projected 2043 pop./2043 houseolds US Census Total Housing Units: 20,313 Occupied Units plus Vacant Occupied Housing Units: 19,298 (=Number of Non-Group Households) Vacant Housing Units: 1,016 (=Total Units-Occupied Units) Projected Market Vacancy Rate: 5.0% Stabilized vacancy assumption Sources: PSU Population Research Center,Metro,Census,JOHNSON ECONOMICS LLC *Projections are applied to estimates of 2023 population,household and housing units shown in Figure 2.1 The model projects growth in the number of non-group households over 20 years of over 1,800 households, but with accompanying population growth of just 411 new residents. The difference is that the household size is expected to decrease significantly to 2.2 persons,meaning more smaller households to house the same population. (The number of households differs from the number of housing units, because the total number of housing units includes a percentage of vacancy. Projected housing unit needs are discussed below.) 7 The projected growth and housing need presented in this report conforms to the statutory approach to completing a Goal 10 needs analysis. To comply with state rules,the analysis relies on estimates of current population from the Portland State University Population Research Center (PRC)and projections of future growth from the most recent Metro distributed forecast.The forecasted growth rates from Metro are very low in comparison to rates experienced during the past 20 years and low in comparison to projected rates in other parts of the region and state. The City's population increased by about 18%,with an average annual growth rate of about 1%between 2000 and 2020 per year. During the next 20 years,forecasted growth is projected to be a total of 1%,with an average annual growth rate of just 0.05%per year.Many community members in Lake Oswego,including members of the project Task Force,as well as members of the City's Planning Commission and City Council, have questioned the accuracy of the projected growth rates,but no contrary expert testimony of the population forecast is presented.To the extent the City grows faster than the growth rates predict,the deficit of land available to accommodate housing over the long term will be more acute and the City will consume remaining buildable land more quickly,potentially running out of buildable land within several years. Per ORS 197.297,the City is required to adopt an updated HNA at least once every six years;thus,the City will have an additional opportunity in 2029 to correct the population forecast,if the projections in the 2023 HNA are notably different than observed trends.It will be important for the City to coordinate closely with Metro as it updates its growth rates and to continue to monitor actual growth patterns,as well as the supply of buildable land in the City.To the extent growth occurs at a faster rate than projected,the City will need to identify and implement strategies to address a potential shortage in available land for housing in the near term. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 26 AN 25-0001 EXHIBIT E-1/PAGE 27 OF 55 PROJECTION OF FUTURE HOUSING UNIT DEMAND(2043) The profile of future housing demand was derived using the same methodology used to produce the estimate of current housing need. This estimate includes current and future households but does not include a vacancy assumption. The vacancy assumption is added in the subsequent step. Therefore,the need identified below is the total need for actual households in occupied units(19,298). The analysis considered the propensity of households at specific age and income levels to either rent or own their home, in order to derive the future need for ownership and rental housing units, and the affordable cost level of each.The projected need is for all 2043 households and therefore includes the needs of current households. The price levels presented here use the same assumptions regarding the amount of gross income applied to housing costs,from 30%for low income households down to 20%for the highest income households. The affordable price level for ownership housing assumes 30-year amortization,at an interest rate of 5%,with 10% down payment. Because of the impossibility of predicting variables such as interest rates 20 years into the future, these assumptions were kept constant from the estimation of current housing demand. Income levels and price levels are presented in 2023 dollars. Figure 5.2 presents the projected occupied future housing demand(current and new households,without vacancy) in 2043. FIGURE 5.2:PROJECTED OCCUPIED FUTURE HOUSING DEMAND(2043),LAKE OSWEGO Ownership #of Price Range Households Income Range %of Total Cumulative $0k-$80k 364 Less than$15,000 2.7% 2.7% Extremely <30%MFI $80k-$130k 295 $15,000-$24,999 2.2% 4.9% Low Income $130k-$180k 394 $25,000-$34,999 2.9% 7.8% Very Low <50%MFI $180k-$250k 702 $35,000-$49,999 5.2% 13.0% I Income $250k-$350k 1,160 $50,000-$74,999 8.6% 21.7% Low Income <80%MFI $350k-$440k 1,266 $75,000-$99,999 9.4% 31.1% $440k-$510k 1,224 $100,000-$124,999 9.1% 40.2% $510k-$560k 984 $125,000-$149,999 7.3% 47.5% $560k-$680k 2,017 $150,000-$199,999 15.0% 62.5% $680k+ 5,053 $200,000+ 37.5% 100.0% Totals: 13,458 %of All: 69.7% Rental #of Rent Level Households Income Range %of Total Cumulative $0-$400 385 Less than$15,000 6.6% 6.6% Extremely <30%MFI $400-$700 423 $15,000-$24,999 7.2% 13.8% li Low Income $700-$900 611 $25,000-$34,999 10.5% 24.3% Very Low <50%MFI $900-$1300 686 $35,000-$49,999 11.7% 36.0% I Income $1300-$1800 924 $50,000-$74,999 15.8% 51.9% Low Income <80%MFI $1800-$2200 843 $75,000-$99,999 14.4% 66.3% $2200-$2500 558 $100,000-$124,999 9.6% 75.9% $2500-$2800 453 $125,000-$149,999 7.8% 83.6% $2800-$3400 299 $150,000-$199,999 5.1% 88.7% $3400+ 658 $200,000+ 11.3% 100.0% All Units Totals: 5,840 %of All: 30.3% 19,298 Sources: Census,Claritas,JOHNSON ECONOMICS CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 27 AN 25-0001 EXHIBIT E-1/PAGE 28 OF 55 The number of households across the income spectrum seeking a range of both ownership and rental housing is anticipated to grow. It is projected that the homeownership rate in Lake Oswego will fall somewhat over the next 20 years to under 70%from 71%. COMPARISON OF FUTURE HOUSING DEMAND TO CURRENT HOUSING INVENTORY The profile of occupied future housing demand presented above(Figure 5.2)was compared to the current housing inventory presented in the previous section to determine the total future need for new housing units by type and price range(Figure 5.3). This estimate includes a vacancy assumption. As reflected by the most recent Census data, and as is common in most communities, the vacancy rate for rental units is typically higher than that for ownership units. An average vacancy rate of 5%is assumed for the purpose of this analysis. FIGURE 5.3: PROJECTED FUTURE NEED FOR NEW HOUSING UNITS(2043),LAKE OSWEGO OWNERSHIP HOUSING Multi-Family Single Single 3-or 4- 5+Units Manuf. Boat,RV, Total %of Unit Type: Detached Attached 2-unit plex MFR home other temp Units Units Totals: 708 132 31 57 92 3 0 1,024 52.0% Percentage: 69.2% 12.9% 3.1% 5.6% 9.0% 0.2% 0.0% 100% RENTAL HOUSING Multi-Family Single Single 3-or 4- 5+Units Manuf. Boat,RV, Total %of Unit Type: Detached Attached 2-unit plex MFR home othertem P Units Units Totals: 52 87 73 148 585 0 0 944 48.0% Percentage: 5.5% 9.2% 7.7% 15.7% 61.9% 0.0% 0.0% 100% TOTAL HOUSING UNITS Multi-Family Single Single 3-or 4- 5+Units Manuf. Boat,RV, Total %of Unit Type: Detached Attached 2-unit plex MFR home other temp Units Units Totals: 760 220 104 205 677 3 0 1,968 100% Percentage: 38.6% 11.2% 5.3% 10.4% 34.4% 0.1% 0.0% 100% Sources: PSU,City of Lake Oswego,Census,Claritas,JOHNSON ECONOMICS • The results show a need for 1,968 new housing units by 2043. • Of the new units needed, roughly 52% are projected to be ownership units, while 48% are projected to be rental units.This represents more renters than the estimated tenure split, but it is projected that more rental units will need to be added to correct the current modest deficit of rental units, plus the future ownership rate will fall slightly. This results in a proportionately greater share of future units being rental, rather than ownership units. • There is some need for new ownership housing at the middle to low-end of the pricing spectrum. But income trends suggest that the greatest demand will remain in the upper-middle price ranges($300k to$600k). • The greatest need for rental units is found at the lowest and some higher price points. Market rents are currently clustered in the $1,300 to $2,200 range in current dollars.Therefore, most units are to be found in this range. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 28 AN 25-0001 EXHIBIT E-1/PAGE 29 OF 55 ■ There is insufficient rental housing for the lowest income households making $35,000 or less or detached single-family homes for rent. Many households will need rent levels lower than the market rate in order to maintain housing costs that are affordable(see more detail below). Needed Unit Types The mix of needed unit types shown in Figure 5.3 reflects both past trends and anticipated future trends. Single detached units are expected to continue to make up a large share of new housing development for ownership households over the next 20 years. However,an increasing share of new needed units is anticipated to be attached housing types to accommodate renters and first-time home buyers. ■ 39%of the new units are projected to be single detached homes or new manufactured homes, while 61% is projected to be some form of attached housing. ■ Single attached units(townhomes on individual lots)are projected to meet roughly 11%of future need. These are defined as units on separate tax lots,attached by a wall but separately metered,the most common example being townhome units. ■ Duplex,triplex,and four-plex units are projected to represent a growing 16%of the total need, reflecting new state rules for middle housing zoning. Duplex units would include a detached single-family home with an accessory dwelling unit on the same lot, or with a separate unit in the home (for instance, a rental basement unit.) ■ 34%of all needed units are projected to be multi-family in structures of 5+attached units. ■ Less than 1% of new needed units are projected to be manufactured home units, which meet the needs of some low-income households for both ownership and rental. ■ Of ownership units, 69% are projected to be single detached homes or manufactured homes, and 31% are projected to be attached forms. ■ Nearly all new rental units are projected to be found in new attached buildings,with 62% projected in rental properties of 5 or more units, and 33% in other attached housing forms. Only 5.5% of new rental units are projected to be detached homes, including manufactured homes. Group Housing Needs:There is an estimated population of 332 individuals living in group housing in 2043, based on an assumption that the share of the population living in group quarters (1.7%) remains stable from current levels. This would represent an increase of just a few people living in group quarters, as forecasted population growth is modest. In Lake Oswego, the Census estimates that nearly all of Lake Oswego's group housing population lives in nursing facilities. NEEDED AFFORDABILITY LEVELS Figure 5.4 presents the estimated need for net new housing units by major income segment,based on the projected demographics of new households to the market area.The needed affordability levels presented here are based on current dollars. Figure 5.4 also discusses the housing types typically attainable by residents at these income levels. Note that Figure 5.4 presents the official state measure of "low income" used to set rent and income limits for various affordable housing programs. This estimate via OHCS and HUD are based on an estimate of median income in Clackamas County of$106k in 2022, based on a family of four,while the median income in Lake Oswego was a higher$123k. For this analysis,the estimated Median Family Income(MFI)for a family of four($106k)was adjusted to match the average household size in Lake Oswego of 2.4 persons ($89.5k) so that the estimates presented below reflect the city average. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 29 AN 25-0001 EXHIBIT E-1/PAGE 30 OF 55 Figure 5.4 presents some of the types of housing product that might commonly serve households in these income ranges. Many households below 60% MFI or even higher income will require some sort of subsidized affordable unit or voucher to find housing affordability.Those at 60%to 100%MFI may find housing in older and substandard market rate rentals, manufactured homes,and middle housing types. FIGURE 5.4: PROJECTED NEED FOR NEW HOUSING AT DIFFERENT INCOME LEVELS,LAKE OSWEGO Income Level Owner Renter Household Income Segment Total Share Common Housing Product (Rounded) Units Units Government-subsidized;Voucher; Extremely Low Inc. <30%MFI <$27,500 56 149 205 10% Shelter;Transitional Aging/substandard rentals; Very Low Income 30%-60%MFI $27.5k-$55k 95 221 317 16% Government-subsidized;Voucher; Manufactured homes Aging apartments;Government- Low Income 60%-80%MFI $55k-$73k 71 120 190 10% subsidized; Plexes;Aging single- detached;Small homes Single-detached homes; Middle Income 80%-120%MFI $73k-$11ok 134 172 306 16% Townhomes;Condominiums; Newer apartments Single-detached homes; Upper Income >120%MFI >$110,000 669 282 951 48% Townhomes;Condominiums; New apartments TOTAL: 1,024 944 1,968 100% Sources: HUD,Census,Claritas,JOHNSON ECONOMICS ■ Figure 5.3 presents the net NEW housing unit need over the next 20 years. However, there is also a current need for more affordable units. For all households,current and new,to pay 30%or less of their income towards housing in 2043, more affordable rental units (subsidized and non-subsidized) would be required. This indicates that some of the current supply, while it shows up as existing available housing, would need to become less expensive to meet the needs of current households. ■ There is a finding of new need at the lowest end of the rental spectrum ($900 and less). ■ The projection of future ownership units finds that the supply at the lowest end of the spectrum will be insufficient due to the prevalence of newer homes, many of which will be detached houses. (This reflects the estimated value of the total housing stock, and not necessarily the average pricing for housing currently for sale.) Ownership options and lower and middle price points are often manufactured homes, townhomes, condos,and small detached homes,often on smaller lots. Subsidized Affordability Housing Need As alluded to in Figure 5.4,some low-income households,and particularly the lowest income households,typically need some sort of subsidized affordable housing in order to find rents affordable given their modest resources and other household spending needs. Figure 5.5 below presents estimates of need at key low-income affordability levels in 2022 and in 2043.The table uses HUD definitions of Extremely Low, Very Low, and Low Income, as well as 60% MFI which is a common affordability level for tax credit properties. ■ There is an existing and on-going need at these levels,based on income levels specified by OHCS for Clackamas County. An estimated 12%of households qualify as at least"low income"or lower on the income scale,while CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 30 AN 25-0001 EXHIBIT E-1/PAGE 31 OF 55 9% of households qualify as "extremely low income". (Again, this is based on the official state measure of Clackamas County median income for application to HUD and other subsidized affordable housing programs, which is relatively high.) FIGURE 5.5: PROJECTED NEED FOR HOUSING AFFORDABLE AT Low INCOME LEVELS,LAKE OSWEGO Current Need(2022) Future Need(2043) NEW Need(20-Year) Affordablilty Level Income Level* #of Units %of All #of Units %of All #of Units %of All Extremely Low Inc. <30%MFI < $26,800 1,492 9% 1,697 9% 205 10% Very Low Income 30%-50%MEI <_ $44,700 1,560 9% 1,771 9% 212 11% Low Income 50%-80%MFI <_ $71,600 2,075 12% 2,370 12% 295 15% TOTAL: 580%MFI _< $71,600 5,127 29% 5,839 30% 712 36% Tax Credit <_60%MFI <_ $53,700 3,962 23% 4,483 23% 521 26% Sources: OHCS,Claritas,JOHNSON ECONOMICS,HUD * Income levels are based on OHCS guidelines for avg.Lake Oswego household size of 2.4 persons. ■ Typically, only rent-subsidized affordable properties can accommodate these extremely-low-income households and many other low-income households at "affordable" housing cost levels. Often the lowest income households must be served by housing choice vouchers and public housing. Tax credit projects are more likely to serve those earning 50%to 60%of MFI. Housing Need for People Experiencing Homelessness: Given the low forecasted population growth, Lake Oswego is assumed to maintain a fairly stable number of unhoused individuals and households over this period. Unhoused individuals and families may require a mixture of shelter types depending on individual circumstances,ranging from emergency shelter to transitional housing to permanent subsidized housing. This population is a subset of the extremely-low-income population shown in prior figures. Agricultural Worker Housing:There is currently no housing dedicated to this population in Lake Oswego. Based on the assumption that this type of housing will maintain its current representation in the local housing stock, this indicates that there will likely be no new need for housing dedicated specifically for agricultural workers over the planning period. However,this population may also be served by other available affordable units. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 31 AN 25-0001 EXHIBIT E-1/PAGE 32 OF 55 VI. RECONCILIATION OF FUTURE NEED (2043) & LAND SUPPLY This section summarizes the results of the Buildable Lands Inventory (BLI). The BLI is presented in detail in an accompanying memo to this report. The BLI was conducted for land within the city limits, assessing vacant and partially vacant lands based on residential zoning, and environmental and other constraints that may impact development. The following table (Figure 6.1) presents the estimated new unit capacity of the buildable lands identified in the City of Lake Oswego and within the UGB. Residential zones, as well as mixed-use zones that can accommodate some residential uses, were included in the inventory, and are broken into broad categories based on housing density. FIGURE 6.1: ESTIMATED BUILDABLE LANDS CAPACITY BY ACREAGE AND NO.OF UNITS(2023) ACRES ACREAGE Gross Constrained Unconstrained Developable Unit Land Type Acres Area(Acres) Area(Acres) Acres Capacity Residential 3,530 802 2,784 174 705 Mixed Use 490 96 397 10 146 Non-Residential 172 21 150 - - Public/Other 3,147 1,274 1,899 - - Acres Total: 7,339 2,193 5,230 185 851 UNITS UNIT TYPE Single Family Middle Housing Multi-Family Unit Housing Type Units Units Units Capacity Residential 648 39 17 705 Mixed Use 5 23 118 146 Non-Residential - - - - Public/Other - - - - Vacant and Partially Vacant Total: 653 62 135 851 Additional Capacity Approved Developments 2 23 341 366 Additional Middle Housing Infill - 110 - 110 TOTAL HOUSING UNIT CAPACITY: 655 195 476 1,327 Source: MIG • There is a total estimated remaining capacity of 1,327 units of different types within the study area. • The estimated remaining capacity for low density housing units remains the greatest share at capacity for 655 units,or 49%of the total. • There is a total estimated capacity for 195 middle housing units, including future infill in low density zones. This is roughly 15%of the total unit capacity. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 32 AN 25-0001 EXHIBIT E-1/PAGE 33 OF 55 • There is a total estimated capacity for 476 housing units in higher density multi-dwelling properties. This is roughly 36%of the total unit capacity. • 28%of the total capacity(366 units) is found in units already approved for development as of the time of this analysis.Additional infill opportunities identified on large-lot residential and some commercial lands account for an estimated 8%of capacity. See the attached Appendix for full Buildable Land Inventory details and methodology. The following table summarizes the forecasted future unit need for Lake Oswego. These are the summarized results from Section V of this report, presented here for reference. FIGURE 6.2: SUMMARY OF FORECASTED FUTURE UNIT NEED(2043) TOTAL HOUSING UNITS Multi-Family Single Single 3 or 4- 5+Units Manuf. Boat,RV, Total %of Unit Type: Detached Attached 2-unit plex MFR home other temp Units Units Totals: 760 220 104 205 677 3 0 1,968 100% Percentage: 38.6% 11.2% 5.3% 10.4% 34.4% 0.1% 0.0% 100% New Units Needed Single Detached Homes 760 a) Townhomes 220 2 -4 Plex Units 309 oa c 3 5 or More Units 677 Manufactured Homes 3 00 OO OO 00 0`)'L O cb y0 Housing Units Sources: PSU Population Research Center,Census,Johnson Economics Comparison of Housing Need and Capacity There is a total forecasted need for nearly 2,000 units over the next 20 years based on the forecasted growth rate. This is greater than the estimated total capacity of 1,327 units. Figure 6.3 below presents a comparison of the BLI capacity for new housing units, compared to the estimate for new unit need by 2043. It breaks down need by general zoning category(LDR, MDR, HDR). • The projected demand for low-density housing types is higher than the remaining capacity by an estimated 192 units,or the equivalent of 38 acres of low density residential land. • The results find a deficit for medium-density housing of 249 units,or 31 acres. • The projected demand for high-density housing types is higher than the remaining capacity by an estimated 201 units,or the equivalent of 17 acres of high density residential land. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 33 AN 25-0001 EXHIBIT E-1/PAGE 34 OF 55 • These findings assume that under newly adopted state rules,3%of available buildable parcels in the LDR zone will be used for the various types of attached units(single-family attached townhomes,duplex—fourplex). FIGURE 6.3: COMPARISON OF FORECASTED FUTURE LAND NEED(2043)WITH AVAILABLE CAPACITY WITHIN CITY LIMITS SUPPLY DEMAND Buildable Land Growth Rate(0.05%) Zone& Plan Inventory- Surplus or(Deficit) Typical Housing Type New Unit Category Housing Unit Capacity Need(2043) Units Avg. Acres Units/ac. Low-Density Single-family detached; 655 847 (192) 5 (38) Some SF attached & plex Med-Density SF attached; Manufact. 195 444 (249) 8 (31) home; 2-4 plexes High-Density Multi-family apartments 476 677 (201) 12 (17) TOTALS: 1,327 1,968 (642) 7 (86) Sources: MIG,Johnson Economics • These findings point to a need for additional residential land in a range of zones over the 20-year planning period. Available inventory may meet an estimated 67% of total housing needs over the first half of the planning period, but a deficit is projected in the long run. • A range of potential housing policies and strategies will be considered in future development of a Housing Production Strategy by the City, including the ability of future plan areas to meet the need for different types of housing during the 20-year planning period. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 34 AN 25-0001 EXHIBIT E-1/PAGE 35 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: LAKE OSWEGO RESIDENTIAL BUILDABLE LANDS INVENTORY Methodology and Results I July 18, 2023 Introduction This memorandum provides a Residential Buildable Lands Inventory (BLI)for the City of Lake Oswego, which will support the creation of a Housing Needs Analysis (HNA) for the City.The methodology for this BLI is based on the 2018 Metro BLI1 with further refinements through review and discussions with City staff. The BLI is conducted in the following steps: • Step 1:Study Area and Land Classification. This step identifies the land in the City that is available for residential uses. • Step 2: Constraints to Development.This step identifies constraints such as natural resources, steep slopes, and utility easements that limit development. • Step 3: Development Status.This step assigns a "Development Status" of vacant, partially vacant, or developed tax lots in the inventory. • Step 4: Net Buildable Area and Unit Capacity.This step removes land for future rights-of-way and other land needs to provide a net number of acres for each City zoning designation,then estimates number of units and mix of unit type (single detached, multi-dwelling, middle housing) expected based on the results of Step 4. Step 1 : Study Area and Land Classification Study Area The study area for this analysis is shown in Figure 1.The study area includes land within the Lake Oswego City Limits.' 1 https://www.oregonmetro.gov/sites/default/files/2018/07/03/UGRAppendix2 Buildable Lands Inventory.pdf 2 A prior version of this Buildable Lands Inventory included unannexed land outside of the Lake Oswego City Limits which has a City Comprehensive Plan designation.This land has been removed from the study area following APPENDIX A: Buildable Lands Inventory Page 35 AN 25-0001 EXHIBIT E-1/PAGE 36 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Figure 1.Study Area Map s - s SW-STEPHENSONST , y D lessF RpKwY m o S�ONE �, --a O , O 0 P yy� 1 r-- MELROSE ST i \o f i44 '5, i COU/VTRy it X C1 Ug RD II \y� J J 21 a �4 KRUSE WAY O� SO P AAVE '~^ MEADOWS RD Q A. * 111 v i� ,, �r fie- -a OUN7q� SW BON ..R1 p y-�. %t c4 Q' % N, N BiVp > z Z Prim Rp 1 \�O o 71 0 0 740 cc { O cc z o ‘ u_i `� o m > 3 i' �QQ�R P�F�\E`�B\VD S�{ORE 8<V cvEV PEE -_._/` ' �fi tIlirr-Nir x ILO �T o 1- cc sow J o o! w OR 0 GREENTREE PO z� OS `eR Y 2 �.27 N3 Ov 0,00K 0R S BRGISn (FL...._Y ¢ cr I-- �ill9 Z C' m \�pSRD�`' O'rF O, �ile `1'G CHILDS RD �� S 41O _,1 n PO U AP O t . Miles OREGOd 0 0.25 0.5 1 Lake Oswego Buildable Lands Inventory I Study Area ,IF:—/i Study Area Lake Oswego City Limits Land Classification Parcels in the inventory are categorized based on their Comprehensive Plan and Zoning designations, property ownership, and other characteristics available in City/regional datasets.These classifications are described in Table 1 and shown in Figure 4. Comprehensive Plan and Zoning Districts The City of Lake Oswego's Comprehensive Plan Districts are described in Table 1.This is the primary basis for classifying lands into the categories of Residential, Mixed-Use, Nonresidential, and Publicly Owned/Other.Alignment with Zoning Districts are shown in the "Implementing Zones" column. Zoning discussion with the City's Housing Production Strategy Task Force and Oregon Department of Land Conservation and Development(DLCD)staff. APPENDIX A: Buildable Lands Inventory Page 36 AN 25-0001 EXHIBIT E-1/PAGE 37 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 and Comprehensive Plan map designations are shown in Figures 2 and 3, respectively. Overarching categories of land and how they are considered in this inventory are described on the pages following those figures. Table 1. City of Lake Oswego Comprehensive Plan and Zoning Districts Comprehensive Plan Implementing Zone Purpose Designations Zones R-15 Residential Low To provide lands for single-family residential development with R-10 densities ranging from two to five dwelling units per gross Density acre,and to provide lands for middle housing development. R-7.5 To provide lands for single-and multi-family residential development with densities ranging from seven to eight R-5 dwelling units per gross acre,and to provide lands for middle housing development. (1) The purpose of the R-DD zone is to assure that both single-family homes and middle housing are protected from noise,light,glare and reduction in privacy to the maximum extent possible during the area's transition to higher density residential use,to facilitate good architectural design and site planning which maintains residential choices of unit size,cost and other amenities and supports the economic feasibility of new construction R-DD Zone and development,and to assure protection and compatibility of all land uses,including commercial, residential,park,open space and historic sites. (2) The R-DD zone is intended for use in low density residential districts which are undergoing transition to increased densities,and which have scenic,historic, natural or residential features which should be preserved Residential and integrated with new development. Medium Density The FAN R-6 zone is intended to implement the land use policies of the First Addition Neighborhood Plan.The purpose of this zone is to ensure the design quality of proposed development in the neighborhood by: (1) Ensuring that proposed building designs are visually compatible with the character of existing structures,maintain adequate light and air between structures,and complement the neighborhood's architectural character. (2) Minimizing the visual impact of garages from the street, R-6 and to continue established alley uses and functions such as access to garages,off-street parking and trash removal. (3) Encouraging compatible and sensitive remodeling and renovation of existing residences. (4) Preserving the small-town character of the existing streetscape by allowing single-family and middle housing development that is human scale and pedestrian oriented. (5) Enhancing the natural environment of the neighborhood as one of the dominant characteristics. APPENDIX A: Buildable Lands Inventory Page 37 AN 25-0001 EXHIBIT E-1/PAGE 38 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Comprehensive Plan Implementing Zone Purpose Zones Designations (6) Preserving FAN's historical and architectural character by encouraging infill development that is compatible in design character to landmark structures on abutting lots. R-3 To provide lands for single-and multi-family residential Residential High R-2 development with densities of at least 12 dwelling units per Density R-0 gross acre,and to provide lands for middle housing development. R-W Neighborhood To provide land near residential areas for lower intensity Commercial(NC) commercial activities that primarily serve the surrounding neighborhood,smaller public facility uses,and residential uses. To provide lands for a mix of higher intensity commercial General activities supplying a broad range of goods and services to a Commercial(GC) market area approximately equal to the planning area identified in the Comprehensive Plan,as well as residential, public facilities,and cultural uses. To provide lands for commercial activities which meet the Highway needs of the traveling public as well as other highway-oriented Commercial(HC) retail uses which require access to a market area larger than the general commercial zone.This zone is not intended for regional shopping centers. To provide for a mix of uses requiring highway access and Mixed which provide a strong visual identity. Intended uses include Commerce(MC) local and regional convention type facilities,office uses and Commercial supporting retail uses. Office Campus To provide lands for major concentrations of regionally- (OC) oriented offices and employment opportunities for a market area larger than the planning area. Campus To provide a mix of clean,employee-intensive industries, Research and offices and high-density housing with associated services and Development retail commercial uses in locations supportive of mass transit (CR&D) and the regional transportation network. The purpose of the CI zone is to provide zoning regulations for Campus the Marylhurst Campus in order to provide land where Institutional(CI) permitted or conditional uses can be provided for in a unified campus setting. To implement Comprehensive Plan policies applicable to the East End General Downtown Town Center and to provide land for a mix of Commercial(EC) higher intensity commercial,residential,and cultural uses and public facilities that support a traditional downtown commercial core. Industrial Zone The purpose of the industrial zone is to provide land where (I) general industrial development can be located. Industrial To provide lands where primarily light industrial and Industrial Park employment uses can occur in a campus-like setting under Zone(IP) controls to make activities mutually compatible and also compatible with existing uses bordering the zone. West Lake Grove To provide zoning for townhome residential,commercial,and Zones mixed-use development in the West Lake Grove District that Mixed Use (Townhome accommodates lower intensity commercial,public facility and Residential- residential uses;and to provide a transition between the Lake WLG R-2.5, Grove Village Center and adjacent residential neighborhoods. APPENDIX A: Buildable Lands Inventory Page 38 AN 25-0001 EXHIBIT E-1/PAGE 39 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Comprehensive Plan Implementing Zone Purpose Zones Designations Residential These districts are intended to supply services to a market area Mixed Use-WLG that is comprised of adjacent neighborhoods. RMU,and Office- Commercial- WLG OC) To foster a mix of housing,retail and office uses in a central location proximate to downtown and along the Willamette River.Commercial uses are allowed but are not intended to dominate the character of the area. Retail uses are limited in size to complement the downtown core and facilitate the development of neighborhood-focused retail served by transit. The design and development standards are intended to create a unique Lake Oswego community.The emphasis of the zone is on residentially related uses. The Foothills Mixed Use code provisions are intended to: Foothills Mixed i. Connect the FMU area with downtown,Tryon Creek,Old Use(FMU) Town,the Willamette River and Oswego Lake; ii. Create a sustainable walkable neighborhood that possesses a thriving,active,and comfortable pedestrian environment; iii. Create visual interest through varied building heights that are urban in character,yet include detailed amenities at the ground floor that enhance the pedestrian environment; iv. Create high quality buildings,of long lasting materials,to promote the permanence of the community; v. Allow for a mix of residential uses,with urban density,and neighborhood scale retail and office development;and vi. Establish a standard of design that reinforces Lake Oswego's sense of place. The Public Functions(PF)zone is intended to specify Public Use Public Functions appropriate land uses and development standards for public (PF) uses,such as government services,education,and similar activities. The purposes of the Park and Natural Area(PNA)zone are to: i. Protect,preserve,conserve and enhance natural areas, greenways and parks; ii. Permit a wide range of passive and active recreational Park and Natural Park and Natural uses,and accessory uses,on property for the future use and Area(PNA) Area(PNA) enjoyment of the City and its residents; iii. Implement Statewide Planning Goal 8,Recreational Needs;and iv. Establish a master plan process for park planning and development. APPENDIX A: Buildable Lands Inventory Page 39 AN 25-0001 EXHIBIT E-1/PAGE 40 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Figure 2. City of Lake Oswego Zoning Designations Portland "Co- Cammurnr � 4 22 c College--Syl+.i�•• I:: , in Creek f ^`:a tural m- ® 1 sF n • • f a � R�7.5 - � -.-—_' ,. ilLom ---- Milwaukie „F_ � �; Heights Tigard � �f.' °e'_ P `�- 4 R_ya R-io l' v.' 4p HC' R-5 � r M d R-6 Oak Grove PIL R-ya q --t• a i Al. PNn PEC Bonita •sw eon Arts_ -�, 'try., I[d Rd ' Wi �� r• ''S PNA J . .4, ., t. '.:., •.1.tia,.et...41:ali - , IV. SW Durham r as R-yo .1R 7__n5 w5 ' w Concord R.7.5 Cook Pa. Trolley Trail Durham R.1e iiR �aVatln T�N / PNA � �� toy Clul, / GII R i5 t e Jer R-'S Esri,NASA,NGR,USGS,FEMA,Oregon Metro,Oregon State Parks,State of Oregon GEO,Esri.HERE, T iia later. Pro,. Rive rg rove Gamin,SafeGraph,Gyotechnolagies,Inc,METIINASA USES.Bureau of land Management,EPA,NPS, `f_ USDA Mary S.Young Lake Oswego- Buildable Lands Inventory-Zoning Districts Legend =Lake Oseego I ,HC ,F C R.6 LAYER l=I aNA C R-7.5 MI CI ®IP c-0 I l R-DD =Cl/oC 0 MC _I R-Lb ME POW =CRIkD 0 NC CI R-Ls O WLG OC ®PC =NC/R-It p R-2 =SLG R-2.5 MI EC/R-0 I=oc 1=I R-3 0 WIG RMu 0 0.25 0.5 1 0 GC 0 OCJLF3 0 R-s Miles APPENDIX A: Buildable Lands Inventory Page 40 AN 25-0001 EXHIBIT E-1/PAGE 41 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Figure 3. City of Lake Oswego Comprehensive Plan Designations Portland [,,,�___...iii,,, Community • o / .224 ` V Ceilege-sylva' Tryon Creek _ Y + State Natural • 14T 'p ! 4i � r-!.I i 1 PNA Milwaukle C }f}9rr `1.q., - R•�o.� ,/ Hefgh[s '7t °°WW1 _5 • 'F Tigard q 5 to RI I�� _ n �.. �J F q6 [J Oak Grove --. R S 1 Mc — — OCIR.3 R xo - 0EC Bonita. _•- fr. .��.. q.�a R-7.5 �'�n = SW Ronlu Rd `s'^ Cr"—i. �• R." P _.S PNA � j R_7.5 ... '. GC d L emi PNA• 1, N.7 )G — o I SW Durham cc i - • • R-7.5 Concord R•5 . �� 1 I',- ^-R"i5 Cl Trolley-Dail •,-.r. aR Durham lE Lk 4 ir Rno Aillii laiin j / ��' .� aly[lob J .R,� ,�, Iillt# I l -. ler PNA V R' Esri,NASA,NGA,USGS,FE MA,Oregon Metro,Oregon State Parks.State of Oregon GEO,Esri.HERE, Tualatin Rive rg rove r I Gamin,SaleGraph,Ggorechnolagies,Inc.METVNASA,V5G5,Bureau of Land Management,EPA,NOS, I USDA cMary5.Young Lake Oswego- Buildable Lands Inventory-Comprehensive Plan Designations Legend 0 Laie Os.vego 0 HE I]ONE I=12•7.5 I AYFR DIP MliR-0 iRW 1. CI U MC 0 It-AU =SA E CRS) I—I NC ©12-15 fi WLG OC L EC U NCR-0 =11-2 0 WLG R-2.5 EC/R.-0 U OC =R-3 =WLG RMFI L FMU O OCR--3 C R-s =I<alrotherverues> 0 0.25 0.5 1 =GC OPF OR-6 Miles Residential Land Residential Land is intended to meet the City's need for residential uses of various types. It includes land within the R-0, R-2, R-3, R-5, R-6, R-7.5, R-10, R-15, R-W, and WLG R-2.5 Comprehensive Plan designations, unless it meets the criteria for "Publicly Owned/Other" land. Mixed Use Land Mixed Use land can be developed to meet the City's residential and employment needs—sometimes within the same structure. It includes land within the WLG RMU, CI, CR&D, EC, FMU, GC, HC, NC, OC, and WLG OC Comprehensive Plan designations unless it meets the criteria for"Publicly Owned/Other" land. More information about the assumptions for future housing development in these areas is found later in this report. Nonresidential Land Nonresidential land includes employment land and "Publicly Owned/Other" land, as follows. This land is not included in the inventory. APPENDIX A: Buildable Lands Inventory Page 41 AN 25-0001 EXHIBIT E-1/PAGE 42 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Employment Land Employment Land is intended to meet the City's employment needs. It includes land within the MC and IP Comprehensive Plan designations unless it meets the criteria for"Public/Other" land. Publicly Owned/Other This category of land includes the SP, PF, and PNA designations, as well as land in the following categories: • Land in another Comprehensive Plan designation under City, County, State, Federal, or Special District Ownership • Land commonly held in Homeowners'Associations (HOA) common ownership, such as required open space. • Religious or fraternal properties (with the notable exception of Marylhurst University, which is accounted for in a separate line item). • Private driveways and ROW As noted above, properties in this category are generally not included in the inventory. However, some specific parcels in this category may be included in other classifications if information is available to suggest that they have development capacity for residential or employment uses. APPENDIX A: Buildable Lands Inventory Page 42 AN 25-0001 EXHIBIT E-1/PAGE 43 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Figure 4.BLI Land Classification •me niu'ja ^ IVIIIYYdU \ ,___ I _ Y- r�11 pq ld ltr 7. 1 , I I rii t U \1 \,� ! � 1itt. 1''J 7r� ...W. t cif! k T.> 1L ) -1iiiiL ai \ ip IIL %Alt 1�I ji ir111�'li Oakleo 1t � kw. ,„ 811 r►. , 1-49IFIAPI-AWISL 47,----6 44141--W"murFATirk A ... Ai 1 IL r...t . 7. li dpik.. <Aril_ 4 ., 1 4".N.,..., ,,wawa.. AMINC#Flig, ..• •I , PI, 00.010morp.--00_,/•40e 44000110%-ailwAt-'' 1 i ill i ....--0,4 seAV.46., +lip I, .�• 1.7f� wine��•tic�!.P " Li y ... OR l r 4-411 . OF 44:601:14/7. 4111 - I I--- ‘''' ‘..IIM ir�r .- + J,>3l i. AYAt, � - r1,� ...%� , - - iltri , :- , sit '- N ,' 1 EE-til r11 1 •- y or') O---,A EOs t r r`'I- ��r 1 I I rov.I ��=`J' ,�11 t. C.-3 O y 6. . , I u !Miles e RFGO/ 0 1 0.5 1 S: 14y Lake Oswego Buildable Lands Inventory I Land Type ® Study Area Land Type Residential = Mixed Use Non-Residential = Public/Other APPENDIX A: Buildable Lands Inventory Page 43 AN 25-0001 EXHIBIT E-1/PAGE 44 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Step 2: Constraints to Development One of the primary tasks of this BLI is to identify land that is constrained by one or more of the following physical constraints. Constraints may overlap one another spatially—in this case the more restrictive constraint applies. Assumptions for these constraints are listed below—they have been discussed with City staff but are subject to further refinement, as needed. Constraints are described in Table 2 and shown on Figure 5. Table 2. Development Constraints Constraint Description Developable Portion Steep Slopes Slopes greater than 25%. Density transfer resulting in 5% Developable the construction of 1-2 dwelling units allowed. Water Bodies Includes lakes, streams, other areas of open water 0% Developable FEMA Flood Includes Zones A, AE, and X. Density transfer resulting 5% Developable Hazard Areas in the construction of 1-2 dwelling units allowed. Greenway Protects land along the Willamette River. Permitted Management uses include single-family dwellings and accessory 25% Developable Overlay District structures associated with such dwellings. Includes Resource Protection (Streams and Wetlands; RP), Resource Conservation (Tree Groves; RC), and Habitat Benefit Areas (Tree Groves; HBA). RP and RC areas are tightly regulated,while HBAs are areas with optional resource protection incentives rather than regulations. RP—50% Developable Sensitive Lands RP—Density transfer possible. RC—0% Developable RC- Mostly applies to public land and open space HBA—95% tracts,which are not developable (PF and PNA zones, Developable OS tracts in private developments,typically). HBA- Incentives, rather than regulations, are applied to protect natural resources. Usually does not limit development beyond a modest reduction. APPENDIX A: Buildable Lands Inventory Page 44 AN 25-0001 EXHIBIT E-1/PAGE 45 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Figure 5. Constraints to Development s 1 ,', - ISW STEPHENSON S7 9� y ,H, 1� 1 1 1 Ry�D m F x ®� <FssRq ,/PR PKwy. I 1 11 oN�s FE — — m nn 'QO IRE s J ♦ O� 1 1 ° — o or. y sr ENO^ 111 �I _ _ +1• w` eb, ; -' 'xK MEkROSEsr -�,-1 . €[ tea. rli'— r� iI4 & ':.s G.ti¢g: "F *�j to 1 f c °A,7 le #1 • ` iq, 1 rim `f '54_ I'`7 .+`�Ifa� i u R' ce 0B RDA `+'�� u�_:� e 4 %,% 4 2j� I. ��btu,=-_. �„ i i �� " �\ y p 6 KRUSE WAY_ O4 Imo ems=-ta 0"may / A E MEADOWS RD Q �, 4.k , VS�.tiv i e-..N�.•...•• 01 ;40 ,�I AVEE z 1 ^ D cr * ? �11t.ry�y►?yb >UNTq� � I x 1 SW-BONITA-RD�� a.0 q� QG R.1- h 4 .IIIIL"'ll'r'' t�cl` BLVD .4a.e �-'-f ^ '1- .w `� 1 Oct i,,,.:" �' �7 f j y r+ �V �'' , , ,,, , �� 7 •I/, r. Er- d , a j ER��E`IIt� s ��•. i. PEE ,Fril 1, ► �QP PK --,-NORE:1;5',.itl- �CJ° ,� Ji1r A. j1�- 1 . al Q9 �O OJT j,.. H ��,�ti :;_ �O! !1 ,1 `ri 5 a= = �qG ,1: ig 0 6REENTR EE(y0 �� 0E- FRr �. I O- I. I I - 0� y ;idi�A_ � : 1 of ia �T �� 1 '� Q +,` Y Ov�R�pOK - .. S BERGIS.RD �, %, ,i V� • 1 1 1 -kc,E 11,AY 1 r 1+1 - •• r• yl- — f . of 11 * 1 — ♦.. %i 0 1 ` ` 561 4,- - t _ �11 Q ¢te F �� o\ 4.' . ' m 1vo5RD�S - O �R1 a hpCHJLDS RD T I- 9 I_ f i,r ' �►. ow f IJI (Miles � O�� 1,1 ,4 EG o S L Lake Oswego Buildable Lands Inventory I Environmental Constraints ® Study Area Major Roads Taxlots - Greenway Mgmt. Overlay District Slopes>25% FEMA Floodplain Sensitive Lands Overlay Habitat Benefit Areas {HBA) Resource Conservation Areas {RC) Resource Protection Areas(RP) APPENDIX A: Buildable Lands Inventory Page 45 AN 25-0001 EXHIBIT E-1/PAGE 46 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 The BLI includes the following information for each tax lot in the study area based on the location of constraints. • Acres—Total size of the tax lot • Constrained Acres—Acreage of constrained areas, per Table 2 • Unconstrained Acres—Total acres minus Constrained Acres The following table shows gross acres of land in each primary land classification in the Study Area. Table 2. Constrained and Unconstrained Acres by Land Type Land Type Total Acres Constrained Acres Unconstrained Acres Residential 3,530 802 2,784 Mixed Use 490 96 397 Non-Residential 172 21 150 Publicly Owned/Other 3,147 1,274 1,899 Total 7,339 2,193 5,230 Step 3: Development Status Each tax lot in the study area is categorized as Vacant, Partially Vacant, or Developed.The following data is used to determine development capacity of Study Area tax lots: • Tax assessor data, including Property Land Use Code, Improvement Value, and Land Value; • City inventory of outdoor areas, used in identifying public and commonly-held open spaces such as public facilities, parks and Homeowners Association-owned open spaces; • Metro Vacant Land Inventory derived annually from aerial photo information; • Review of recent aerial imagery; and • Discussion and review with City staff and the Housing Production Strategy(HPS)Task Force. Generally,vacant tax lots are assumed to have development capacity equal to the area unconstrained by natural resources, minus additional set-asides for future Right-of-Way and infrastructure (see Step 4). Developed parcels will be subject to further screening for redevelopment potential, described in later steps. Partially Vacant properties have an existing home but are large enough to subdivide based on criteria such as parcel size and allowable lot size, as described in this section. Residential Development Status • Vacant. Land that has a building improvement value of less than $20,000, as indicated by assessor data. All land outside of constrained areas is included in the developable area for these properties. • Vacant—Platted.Vacant land that is part of a platted but unbuilt subdivision is included in this category. Platted lots are assumed to contain one unit each unless other information is available (see Step 4). "Developable Acres" is shown as "0" because they are treated separately from other acreage in the inventory. APPENDIX A: Buildable Lands Inventory Page 46 AN 25-0001 EXHIBIT E-1/PAGE 47 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 • Partially Vacant.This designation is intended for parcels with an existing single-detached home that are large enough to further subdivide or develop to provide additional residential units. While middle housing and townhomes are allowed in many zones,this analysis uses the minimum lot size required for single-detached dwellings as the basis for the Partially Vacant designation, as follows: o Parcels greater than 5 times the minimum lot size:These lots are categorized as "Partially Vacant." %acre is assumed to remain for the existing home and the remaining unconstrained acreage is assumed to be developable. o Parcels between 2 and 5 times the minimum lot size: For lots with a building value below$200,000, %acre is assumed to remain for the existing home and the remaining unconstrained acreage is assumed to be developable. o Parcels less than 2 times the minimum lot size: These lots are categorized as "Developed" if improvement value is present or aerial photo review shows development. • Developed. All other residential land is designated Developed and has no developable area. Mixed Use Development Status Mixed Use development is subject to the same criteria as Residential Land. However, an additional screen is used to determine the likelihood of redevelopment of mixed-use parcels in Step 4, and assumptions about the residential/employment mix (see Error! Reference source not found.3) are a pplied. Mixed Use Residential Proportion Mixed use designations are assumed to develop partly with residential uses and partly with non- residential uses, per the following table. Table 3. Residential Portions of Mixed Use Tax Lots Mixed Use Residential Nonresidential Notes Designation Portion Portion West Lake Grove 50% 50% Townhomes only allowed with office use in the Residential Mixed Use same building (WLG RMU) West Lake Grove 25% 75% Residential limited to Boones Ferry Staging site, Office-Commercial per LOC 50.03.003.2.d. Residential limited to (WLG OC) Boones Ferry Staging Site. Percentage based on the size of this site in relation to the total size of district(see LOC 50.03.003.2.d for geography). Campus Institutional 50% 50% Multifamily development is limited to Subarea I (CI) of the Marylhurst Campus Zone. Campus Research & 30% 70% Assumption based on trends in this area Development(CR&D) East End Commercial 80% 20% (EC) Foothills Mixed Use 80% 20% Most similar to EC in terms of residential/non- (FMU) residential mix General Commercial 30% 70% (GC) APPENDIX A: Buildable Lands Inventory Page 47 AN 25-0001 EXHIBIT E-1/PAGE 48 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Highway Commercial 10% 90% (HC) Neighborhood 50% 50% Commercial (NC) Office Campus(OC) 30% 70% Summary The following table lists the number of tax lots,total and constrained acreage, and developable area by land type. A map summarizing development status is shown in Figure 6. Table 4. Developable Area of Residential and Mixed Use Tax Lots Gross Constrained Unconstrained Developable Land Type Acres Area (Acres) Area (Acres) Acres Residential 3,530 802 2,784 175 Mixed Use 490 96 397 14 Non-Residential 172 21 150 Public/Other 3,147 1,274 1,899 _ Total 7,339 2,193 5,230 189 APPENDIX A: Buildable Lands Inventory Page 48 AN 25-0001 EXHIBIT E-1/PAGE 49 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Figure 6. Development Status of Residential and Mixed Use Land 7 c\F . F , ,,—.141 _ . QP`rJ ri J!! 1P SW STEPHENSON ST. Phi •,, /0 , t y 1! , a . 1 �� c u, I j/ c �• `�, l . ` , , _ram 4 '1•if ,, \ �` 1 -.MELROSE ST I - ! r �( " z>1 I- `� ,, -- •-� - t(R�USSE WAYS 1 • Q� _ A AVE eQ { --j 1 MEADOWS RD e Y) '�">; _ _, - `�' • SW'BONITA RD��7. i EA�P� QG .�c,�� 0 NTAI/y BfVD- 1 IR o No ; °� w.g�VD_ • Ev��E N irl leap , �P �SNQRE.g-r - `` ��IrIP 6y SO/ •ti. lir�wIZO j III ! r_ ti r� S: `q Ali IF o GREENTREAD-- '' 2� 0S- GFR (p ' ''''' 't' (') -,I / ; r 1 Q ` Y L 10J��pO tuft-'9 - S BERGIS/RD�jr ,, , �+ O 11 0C) r i.j F, r,o` • , ,:el 1 ¢ ,Pi 1 S A F a +^ + CHIEDS RD ' .. 1:1.iig,-1.� J c,-2• `..�111� Oy? b N O` :_4..,10 tAt., nIllinin At �l1l1■iw ■ j O ozs 05 �1^ s ■� { �� ~� 1. 011/11;S .ram Lake Oswego Buildable Lands Inventory I Development Status Constraints Development Status Developed Partially Vacant Vacant ® Study Area APPENDIX A: Buildable Lands Inventory Page 49 AN 25-0001 EXHIBIT E-1/PAGE 50 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Step 4: Net Buildable Area and Unit Capacity This step of the BLI establishes the net buildable area of residential land in the Study Area by removing land needed for future right-of-way and other infrastructure set-asides, and by subtracting the non- residential portions of mixed-use zones. This step also accounts for platted subdivisions and other development with known approvals. Right of Way and Other Set-Asides When vacant land develops, land for roads, infrastructure, open space, and other needs reduce the gross available acres into a net developable acreage.The BLI uses the following assumptions to calculate net developable acreage for each parcel. • Residential Land: 20%of vacant properties, 0%of partially vacant properties • Mixed Use Land: 20%of vacant properties, 0%of partially vacant properties Assumed Density and Housing Mix Table 4 shows the assumed density for various zoning designations in the City of Lake Oswego.This information is based on the minimum lot sizes, likely densities, and staff assumptions based on recent projects and comparable zones, and parcel-by-parcel analysis.The proportion of units expected to be developed as Single Family Detached, Middle Housing, and Multi-Family are also shown. Table 4. Unit Density and Mix Assumptions Zoning %Single % Middle % Multi- Designation Notes Density Family Housing Family Detached Residential-Low Density Zones R-15 Min 15,000 sf lot area. 2.9 2.9 DU/AC net 95% 5% DU/AC net R-10 Min 10,000 sf lot area.4.3 4.3 du/ac net 95% 5% du/ac net. R-7.5 Min 7,500 sf lot area 5.8 5.8 du/ac 95% 5% du/ac net • Residential-Medium Density Zones • R-5 7-8 units per gross acre, 'r8 du/ac per code. 5,000 sf min lot size for 90% 5% 5% single-family. 1,500 for townhouse. • R-DD Buffer zone. 21 du/ac —8 du/ac 95% 5% theoretically possible. R-6 First Addition —7 du/ac Neighborhood (FAN) zone 6,000 sf lot area for 95% 5% Single-Family. 1,500 for townhouse. Residential-High Density Zones APPENDIX A: Buildable Lands Inventory Page 50 AN 25-0001 EXHIBIT E-1/PAGE 51 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Zoning %Single % Middle % Multi- Designation Notes Density Family Housing Family Detached R-3 At least 12 du/ac. (3,375 —12 du/ac 70% 10% 20% min per dwelling, or 12.9 du/ac).Townhomes up to 29 du/ac R-2 Min 12 du/ac 12 du/ac 60% 10% 30% R-0 Min 20 du/ac 20 du/ac 60% 10% 30% R-W ^'12 du/ac 60% 10% 30% Mixed Use Zones West Lake Table 50.03.002-2 notes "'5 du/ac Grove "R-5 density or greater" Residential - 50% 50% Mixed Use (WLG RMU) West Lake Table 50.03.002-2 notes 35 du/ac expected in Grove Office- "R-5 density or greater" BFR Staging Site, - 20% 80% Commercial nothing in other areas (WLG OC) Campus Table 50.03.002-2 notes Generally applies to Institutional "R-5 density or greater." Marylhurst University, (CI) Must have commercial on which is treated - - 100% ground floor. separately. Campus 54 du/ac for projects Research& that include residential Table 50.03.002-2 notes Development (-30%of the district, as - - 100% (CR&D) "R-5 density or greater" above) based on LU 19- 0041 East End Table 50.03.002-2 notes ^'56 du/ac Commercial "R-5 density or greater." o (EC) Must have commercial on - - 100/ ground floor. Foothills Table 50.03.002-2 notes ^'56 du/ac Mixed Use "R-5 density or greater" - - 100% (FMU) General Table 50.03.002-2 notes —27 du/ac based on Commercial "R-5 density or greater." Mercantile project (LU (GC) Must have commercial on 18-0026) ground floor. Residential o 0 not allowed "In the GC- 25/ 75/ zoned area in the vicinity of Jean Way and Boones Ferry Road." Highway Table 50.03.002-2 notes 8 du/ac(or R-5 density) Commercial "R-5 density or greater" for the 10%that may - - 100% (HC) develop as residential APPENDIX A: Buildable Lands Inventory Page 51 AN 25-0001 EXHIBIT E-1/PAGE 52 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Zoning %Single % Middle % Multi- Designation Notes Density Family Housing Family Detached Neighborhood Table 50.03.002-2 notes 67 du/ac for the 50% Commercial "R-5 density or greater." that may develop as (NC) Must have commercial on residential (based on LU - 50% 50% ground floor. _ 07-0031) Office Campus Table 50.03.002-2 notes 21 du/ac for the 50% (OC) "R-5 density or greater" that may develop as residential (based on - - 100% Galewood Commons Apartments) Summary of Vacant and Partially Vacant Land Table 5 summarizes net residential acreage for both residential and mixed-use land in the study area, and Table 6 shows the breakdown of capacity by zoning designation. Land with a known development approval has been removed and is accounted for in a later step. Table 5. Capacity of Residential and Mixed Use Land Developable Unit Capacity Land Type Acres Residential 174 705 Mixed Use 10 146 Non-Residential - - Public/Other - - Total 185 851 Table 6. Unit Capacity by Zoning Designation Land Type Unit Capacity Land Type Unit Capacity Residential Land 705 Mixed Use Land 146 EC/R-0 5 CR&D 14 R-0 2 EC 67 R-10 241 GC 12 R-10 Comp Plan 14 NC 23 R-15 131 NC/R-0 9 R-3 28 OC/R-3 5 R-5 116 R-0 8 R-7.5 149 WLG-OC 7 R-7.5 Comp Plan 3 WLG-R RMU 1 R-DD 12 R-W 1 WLG-R 2.5 3 Total Capacity: 851 Units APPENDIX A: Buildable Lands Inventory Page 52 AN 25-0001 EXHIBIT E-1/PAGE 53 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Table 7.Mix of Unit Capacity on Vacant and Partially Vacant Land Unit Capacity Single Family Middle Housing Multi-Family Land Type Units Units Units Residential 705 648 39 17 Mixed Use 146 5 23 118 Non-Residential - - - - Public/Other - - - - Total 851 653 62 136 Additional Capacity: In addition to the capacity listed above,the following categories of additional residential unit capacity have been identified.These are listed in Table 7, along with the expected mix of housing units. • Approved Development. Several parcels have land use approvals and/or are actively undergoing development. Where information about the unit capacity of these approvals is known,that information is used as future capacity(rather than an average assumption based on the zoning designation).These approvals are listed in Table 8. • Additional Middle Housing Capacity: Due to the City's middle housing legislation, most single family lots can be converted to duplexes or other middle housing types.The number of new units expected to be created through this process in the planning horizon is estimated at 1.5%of developed lots with single-detached dwellings outside of PUDs/easements.This totals 110 Units3. • Redevelopment of Commercial Land and Town Centers: An initial "strike price" analysis4 found very few properties that appear to be good candidates for redevelopment at$30/sf.Value per square foot for many properties along Kruse Way and in Town Centers is generally$50/sf or greater.There may be some opportunity to utilize parking areas for new residential uses, depending on the City's development code and many other factors,though additional commercial infill is also a possibility. For the purposes of this BLI, no redevelopment capacity is assumed. 3 A previous version of this analysis assumed 3%of all single detached units, regardless of whether they were located in a PUD. Feedback from stakeholders and DLCD was that this infill assumption seemed high and was unrealistic due to the prevalence of CC&Rs in Lake Oswego. "Strike Price" is a measure of land and building value per square foot at which a developer is assumed to be able to profitably redevelop a piece of property.The 2018 Metro BLI used a strike price of$12/sf for suburban jurisdictions—this analysis examine a more aggressive$30/sf and still found very few candidates for redevelopment. APPENDIX A: Buildable Lands Inventory Page 53 AN 25-0001 EXHIBIT E-1/PAGE 54 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Table 8. Parcels with Approved Development and Assumed Capacity Total Unit Single Family Middle Multi- Land Type Taxlot(s) Family Capacity Units Housing Units Units 21E18AB00400 Habitat for Humanity 21E18AB00300 Townhomes 21E18AB00200 23 0 23 0 [Link] 21E18AB00100 21E18AA00400 5400 Meadows [Link] 21E07BA00900 160 0 0 160 21E08AB02100 Twin Fir Road 2 2 0 0 21E08AB02000 The Boulder 21E07DD02300 [Link] 21E07DD02500 11 0 0 11 21E14DB02900 21E14 00300 21E14 00400 21E14 00401 21E14 00402 Marylhurst University 21E14 00403 170 0 0 170 21E14 00404 21E14 90000 21E14 900A1 21E14 900B2 Total 366 2 23 341 Table 9.Summary of Unit Capacity Total Unit Single Family Middle Housing Multi-Family Land Type Capacity Units Units Units Vacant & Partially 851 653 62 136 Vacant Land Approved 366 2 23 341 Developments Additional Middle Housing Infill 110 110 Total 1,327 655 195 477 Next Steps This inventory will inform the Housing Capacity Analysis and Housing Needs Assessment to provide a picture of the availability of residential land as it compares to the need of certain types of housing units in the next 20 years. It forms part of the factual basis for City policies to address any deficiencies in unit capacity. APPENDIX A: Buildable Lands Inventory Page 54 AN 25-0001 EXHIBIT E-1/PAGE 55 OF 55 o*P4" Tree Removal Fee: � Date: V4 Certification Intake Staff: wow (Unincorporated Properties) °REGOt, As provided for in Resolution 19-59, Policies Discouraging Destruction of Natural Resources and Significant Trees Prior to Annexation, this application process allows unincorporated property owners to certify that proposed tree removal would qualify for a Lake Oswego Tree Removal Permit if the property were within the City's boundaries. This certification process does not constitute a permit granting approval of the tree removal. The property owner is responsible for obtaining any permits that may be required from the County with jurisdiction over the property. Applicant: Jesse Davis Phone:503-713-7141 E-mail (required): jdavis@pavilionconstruction.com Property Owner: Dana Bennett and Darin Rouhier Phone: 503-314-5636 E-mail:bennettrouhier@hotmail.com Address of Tree Removal Site: 5450 SW Kenny St Lake Oswego OR 97035 Are any of the trees in the public right-of-way? ❑Yes El No Number, Size (Trunk Diameter), &Type of Tree(s) to be Removed: 5 Trees,18"-44",Douglas Firs, The tree numbers are called out on the site plan. Reason for Removal: The trees are either in the proposed building footprint of the development or they are close enough to damage both the foundation of the structure and tree itself. I grant permission to City of Lake Oswego employees to enter the above property to inspect the trees requested for removal. I agree to restrain any dog(s) on inspection day. Signature of Property Owner(required) Signature of Applicant (required if different) ❑ TYPE I Submit: (1) Site plan (81/2 x 11"), (2) Printed photograph of tree(s) RI TYPE II Submit: (1) Site plan (81A2 x 11"), (2)Type II Checklist, (3) Landscape plan (if applicable) To Do: (1) Mark tree(s)with ribbon ❑ DEAD Submit: (1) Site plan (81A2 x 11"), (2) Printed photograph of tree(s) Deciduous trees require a site visit by staff between November 1st and April 15th. To Do: Mark the tree(s)with ribbon if a site visit is required ❑ HAZARDOUS Submit: (1) Site plan (81/2 x 11"), (2) Printed photograph of tree, (3) Hazard Evaluation Form completed by a Tree Risk Assessor Qualified Arborist To Do: Mark tree(s)with ribbon if a site visit is required ❑ EMERGENCY Submit: (1) Site plan (81/2 x 11"), (2) Printed photographs of tree(s) and emergency condition ❑ Invasive Submit (1) Site plan (8%x 11"), (2) Printed photograph of tree(s) that clearly identify each species of tree to be removed (e.g., overall photo of tree, close ups of leaves, bark or other identifying features—See Invasive Species Identification Guide) For City Staff Use Only Review Staff: Recognized Neighborhood Assoc.: Certification of Tree Removal: Would Qualify for Removal ❑ Would Not Qualify for Removal ❑ Withdrawn ❑ Certification Date: (Save completed application in Planning Staff Resources/Trees/County Tree Removal Certifications) AN 25-0001 EXHIBIT E-2/1?�►r sappictns\ree permit apps\County Tree Certification Form SITE PLAN EXAMPLE FOR TREE REMOVAL CERTIFICATION A site plan is required as part of your tree removal certification request. The site plan must be on 8.5" x 11" size paper. — — ----------LakeuiewBoulevard- ROW ROW ITEMS TO INCLUDE ON YOUR SITE PLAN: Q Your property lines 14" Maple } RI Address of the Tree Removal Site 14" Walnut i RI Public Right Of Way (Include Street Name) hazard, see hazard RI House or other Structures (Mark "Vacant" if 18" Maple p . ion form} none) N1, RI Creeks, Streams, or Lakes that run through or border property RI Location, Diameter Size and Type of Trees ! ! proposed for removal; mark trees to be removed with an "X" 0 The site plan may be hand-drawn or you can print out a site plan using LOMaps at the following link: ww 123 Lakeview Blvd. w.lakeoswego.city/LOMap. In LOMaps, type your i address in the search box in the upper right side of 10" Cherry the screen or use the zoom tool to zoom in on your Replant w/2 ! property. Once you have zoomed in on your property, 1.5"red oaks I click on "T"for tools at the top of the screen and 16" Oak I select "print." Xill, i Laurel Hedge (to be pruned) _ _ ' _ 00 Staff Review Comments: AN 25-0001 EXHIBIT E-2/PAGE 2 OF 5 o�� Fos TYPE II APPLICATION CHECKLIST VTAA" O Criteria for Issuance of a Type II Tree Cutting Permit OREGO� LOC 55.02.080 A Type II permit may only be approved if your application complies with all of the criteria in LOC 55.02.080.This checklist will assist you. City staff will review the application information and any comments received,visit the site, and then make a tentative decision. If more information is needed after the comment period has started, staff may then be required to restart the comment period, which will delay the initial decision. Please make sure to include all information and evidence to avoid this possibility. The City's Interactive Map can be used to create the required site plan (https://www.lakeoswego.city/lomap). 1. REASON FOR REMOVAL [LOC 55.02.080(1)] Reason for Removal: ❑ Outgrown Landscape Area ❑ Landscape Plan/Improvement El Development (check all that apply and provide additional information below or on a separate page if necessary) Tree Condition Describe Reason for Removal Tree Inches in (Good, Fair, (attach landscape plan and/or site plan for No. Species* Diameter Poor) proposed development,as applicable) 11305 Douglas Fir 44" Fair Site Plan For Proposed Development 11306 Douglas Fir 36" Poor Site Plan For Proposed Development 11307 Douglas Fir 18" Poor Site Plan For Proposed Development 11341 Douglas Fir 48" Fair Site Plan For Proposed Development 11342 Douglas Fir 40" Fair Site Plan For Proposed Development *Don't know the tree species? Enter"unknown deciduous"or"unknown evergreen"and staff will attempt to identify the species at the site visit. Note: If a tree is an invasive species, use an "invasive tree removal application"for removal. 2. EROSION, SURFACE WATER, AND WINDBREAK IMPACTS [LOC 55.02.080(2)] Considering proposed mitigation measures,will removal have a significant negative impact on erosion, soil stability,flow of surface waters, protection of adjacent trees,or existing windbreaks? ❑ Yes • No Please explain your answer(e.g., describe site topography, presence of surface waters, and whether the tree removal would expose nearby trees to wind throw): None of these apply. Page 1of3 AN 25-0001 EXHIBIT E-2/PAGE 3 OF 5 3. NEIGHBORHOOD CHARACTER OR AESTHETICS IMPACTS [LOC 55.02.080(3)] Of the trees listed in Section 1 that are greater than 15"diameter,and in good or fair health,and are not invasive species,are any of those trees significant to the neighborhood due to size,species or distinctive character? ❑ Yes ■ No Please explain your answer(e.g., is the tree one of the biggest in the neighborhood, is it an unusual or rare species, is the tree unique in appearance and distinctive in the neighborhood, etc.): There are roughly 30 plus trees on this property/ROW. Is the tree(s) proposed for removal the only remaining tree(s)on the property? ❑ Yes MI No Will the proposed tree removal alter distinctive features or the neighborhood skyline? ❑ Yes • No Please explain your answer(e.g., is the tree prominently visible from areas within 300' of the site, will the tree removal create a significant change/gap to the treed skyline; photographs are strongly encouraged): No it will not cause change to the skyline. As stated there are 30 plus trees on this property. Do any of the trees proposed for removal provide a visual screen between dissimilar zoning districts,for example between a residential and commercial zone? ❑ Yes ■ No Provide additional details, as needed, below: These do not. Are any trees proposed for removal located in a public right of way? ❑ Yes • No Note:The right-of-way is to the lot lines, not just the edge of the traveled area of the street/alley. Is more than 50%of a "stand" of tree proposed for removal?A"stand" is a group of trees that forms a visual and biological unit at least 15 feet in height with a contiguous crown width of at least 120 feet. ❑Yes ■ No Please explain your answer and describe the measurement methodology used to make this determination: Measurements did not seem to fit this category. EXCEPTIONS TO LOC 55.02.080(3) If you checked "yes"for any of the questions under Section 3, above,you are required to complete the Exceptions Section, below; if you answered "no"to all questions under Section 3,you may elect to skip to Section 4 or you can also address an Exception as an alternative argument for removal (in case the review body disagrees). Are any trees likely to or will continue to cause damage to a permanent,viable existing structure,or to infrastructure (e.g., utilities or paved landscape features, etc.)? U Yes ❑ No Please explain your answer and attach evidence, such as photographs, arborist report, letter from structural engineer, or other relevant information if such damage is not visible and it is not clear that the damage is being caused by the tree: The trees would either be in the structure of the proposed building or close enough to cause damage to the foundation and structure. Page 2 of 3 AN 25-0001 EXHIBIT E-2/PAGE 4 OF 5 If yes,can the damage be remedied through reasonable maintenance or pruning? ❑ Yes • No Please explain your answer and attach evidence, such as an arborist report: Have reasonable alternatives to the tree removal been considered,such as alternative site plans or placement of structures or alternate landscaping designs that would lessen the impact on trees(the alternatives must continue to comply with other provisions of the Lake Oswego Code)? • Yes ❑ No Please explain your answer and attach any alternative plans considered and describe why they cannot be used: Yes, we have explored more site plans then ever imaginable and the current one with the proposed building and location is the best for the property and the neighborhood. The neighbors are excited for this development to happen. Can plant additional trees during the development if needed. 4. VIEW ENHANCEMENT [LOC 55.02.080(4)] Is the proposed tree removal for the sole purpose of providing or enhancing views? ❑ Yes • No 5. COMPLIANCE WITH OTHER CODE SECTIONS [LOC 55.02.080(5)] Is the proposed tree removal contrary to another section of the Lake Oswego Code(e.g.,Sensitive Lands requirement(LOC 50.05.010), prior condition of approval)? ❑ Yes MI No If yes, please list code section and reasons: 6. MITIGATION [LOC 55.02.080(6) PURSUANT TO LOC 55.02.084] Replacement trees are required for each tree removed. Minimum mitigation size: 1.5 inch caliper for deciduous and 6 feet tall for evergreen. The mitigation plan must be approved prior to permit issuance and those trees will be inspected in the field. Indicate if any of the following apply: ❑ Native trees on the City's Master Plant List are proposed for removal. If so, mitigation trees must also be a native species. • "Significant"trees (per Section 3 above) are proposed for removal for development purposes. If so, two mitigation trees are required for each significant tree removed. ❑ Removal is for the landscaping purpose of thinning to improve the health of other trees. If so, mitigation shall be reduced to the extent there is insufficient space to replant elsewhere on the site and maintain tree health. Please explain below. ❑ There is insufficient space to plant one or more mitigation trees on-site. I request that staff verify this and allow replanting off-site on another property I own or to pay a fee into the Tree Fund in lieu of planting. Please explain below. List the proposed mitigation tree(s)species and show their locations,sizes,and species on the site plan. I would like to discuss with the city before paying money to add this to a site plan as I would like your professional input. Page 3 of 3 AN 25-0001 EXHIBIT E-2/PAGE 5 OF 5 MEMORANDUM V O REGO� TO: Paul Espe, Associate Planner FROM: Daphne Cissell, Associate Planner Planning and Building Services SUBJECT: County Type II Tree Removal Certification at 5450 SW Kenny St, Lake Oswego, OR 97035 DATE: April 21, 2025 This letter is to review and certify whether, as provided for in City of Lake Oswego Resolution 19- 59, Policies Discouraging Destruction of Natural Resources and Significant Trees Prior to Annexation,the five Douglas-fir trees removed at the above-referenced address would or would not qualify for City Type II Tree Removal criteria per LOC 55.02.080 if the property were within the City's boundaries. Please note that, as stated above, these trees were removed prior to the submission of this certification application. Therefore, this analysis is based on what staff could determine from a site visit, current photographs, Google Street View images (Exhibit 2), and the County Type II Tree Removal Certification application submitted by the applicant (Exhibit 1). LOC 55.02.080 outlines specific criteria that must be met for approval prior to tree removal. Staff will address these criteria below and indicate whether they would have been met, based on the available materials at the time of analysis. LOC 55.02.080(1): Reason for Removal. Criterion 1 determines what the reason for removal is: development, landscape plan, or an outgrown landscape area.The application states that the reason for removal is "Development." The application listed five trees that were removed,Trees#11305, #11306,#11307, #11341, and #11342, described as Douglas-firs measuring 44" DBH, 36" DBH, 18" DBH, 48" DBH, and 40" DBH, respectively.The existing condition of each of the trees (prior to removal) was not available. The site plan included with the submitted materials appears to illustrate the available building envelope created by yard setbacks (shown in blue), but does not depict any specific proposed building footprint (Exhibit 1, pg. 5). Under Type II tree removal regulations, a clear-cut of the entire building envelope for future development is not automatically permitted; removal of Respect. Excellence. Trust. _ `vi:::@. 503-635-0290 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY AN 25-0002 EXHIBIT E-3/PAGE 1 OF 16 Page 2 of 4 trees outside the proposed building/development footprint requires an alternatives analysis as to why those trees cannot be preserved during construction if their removal has a significant negative impact on neighborhood character and aesthetics. In the absence of a defined development proposal, staff can only assess the potential buildable area within the designated envelope. The only justification provided for Criterion 1 was the statement: "Site Plan For Proposed Development." Based on the information provided, staff finds that there appears to be sufficient buildable area within the envelope to allow for development without necessitating the removal of all five trees; however, it depends on the type of development proposed (e.g., a single-family dwelling vs. middle housing development). Additionally, staff notes that Tree #11341 is located outside of the illustrated building envelope and may not have qualified for removal under the development-related parameters of Criterion 1, depending on the proposal. Due to the lack of specific information regarding the scope of development, staff cannot determine whether the removal of Trees #11305, #11306, #11307, #11341, and #11342 would meet Criterion 1. LOC 55.02.080(2): Erosion,Surface Water, and Windbreak Impacts. Criterion 2 determines where there is a significant negative impact on erosion, soil stability,flow of surface waters, protection of adjacent trees, or existing windbreaks from the proposed removals. The applicant did not indicate any impacts, but merely stated: "None of these apply" in the explanation portion of the question (Exhibit 1, pg. 2). Using LOMaps, staff was able to determine that the property is generally flat, contains no surface waters, and with no indication of soil stability concerns related to removal of trees. Following a site visit, the City's consulting arborist assessed the potential impacts of tree removals on adjacent trees and existing windbreaks. The evaluation found that the recent removal of five Douglas-fir trees has not resulted in significant negative impacts to the protection or health of adjacent trees. Although the removals have slightly exposed the crowns of nearby trees, this exposure does not occur on the southwest side—where predominant storm winds originate. The remaining trees consist mainly of similarly sized Douglas-firs that exhibit healthy characteristics, including favorable height-to-diameter and live crown ratios, and only minor crown asymmetry. Importantly, the removed trees were not providing critical wind protection or structural support for the remaining trees. To minimize impacts to potentially interconnected root systems during future development, the consulting arborist recommends that the stumps remain in place. If desired, stumps may be ground below grade. Should stump removal be necessary, the arborist advises that removal be performed under the direct supervision of a qualified arborist. This ensures careful excavation and root severance with minimal disturbance to the root systems of adjacent trees. Respect. Excellence. Trust. Service. AN 15-000I tAI'1I13I I t-S/I'AUt I VI- lb Page 3 of 4 Based on the materials available at the time of this analysis, and the on-site evaluation of the remaining trees on site, staff can determine that the removal of all five trees would have met Criterion 2. LOC 55.02.080(3): Neighborhood Character or Aesthetics Impacts. Criterion 3 addresses whether the tree removals would cause significant negative impacts to the neighborhood character and aesthetics by the removal of(a) a "significant tree," (b) altering the distinctive features of the neighborhood skyline as viewed from all public streets and properties within 300 ft. of the property, (c) removal of a visual screen between differing zones, (d) removal of street trees, or (e) removal of greater than 50%of a stand. If the trees are individually found to be significant, which is defined in the code, or found to meet the other sub-criterion,then the Exceptions portion of Criterion 3 must be met to be approved for removal. Staff finds that although the trees are all over 15" in diameter and non-invasive,there is no way to determine if all five of the trees met the "healthy" (which includes trees in both fair and good condition) portion of the definition of"significant."The applicant identified Trees #11305, #11341, and #11342 as being in fair condition, and Trees #11306 and #11307 as being in poor condition. However, this cannot be independently verified, as the trees have already been removed. Therefore, staff must assume they were all in at least fair condition and then also determine whether any of the trees meet the remaining criteria for significance—specifically, whether they are unique in size, species, or character within the context of the neighborhood. Following a site visit and a review of historical Google Street View imagery, staff observed that the removed trees appeared to have been of average size compared to other trees in the neighborhood and Douglas-fir trees are not of a unique species in this neighborhood; the site is similar in character to others in the neighborhood. The surrounding neighborhood is dominated by mature Douglas-firs of similar size. Bigleaf maple also seems quite common, as well as invasive black locust and sweet cherry. Many properties also have smaller ornamental trees and shrubs for landscaping. Additionally, all five trees were located on the interior of the lot and did not appear to contribute to a defining feature of the neighborhood. Removal of these trees would not constitute removal of the last tree on the site; the remaining trees are predominately mature Douglas-firs of similar size, with an average diameter of approximately 36" DBH. The Douglas- firs are in generally good condition, although several along the Pilkington frontage have substantial ivy infestation and Tree #11224 had several large red ring rot conks. In addition to the Douglas-firs, there is a dense group of Oregon white oaks in generally good condition along the south property boundary. The other trees are small and in fair to poor condition including one invasive sweet cherry (just 5" DBH) and a 10" ash in the building envelope and one invasive English hawthorn, two flowering plums, and three small bigleaf maples with poor structure all amongst the large firs on the west side of the site near Pilkington. The notes on the plan indicate that Tree #11209 fell during a storm, but a snag remains as the trunk broke off at about 15 feet or so (Exhibit 3). Respect. Excellence. Trust. Service. AN 15-000I tAI1IbII t-S/I'AUt S VI- lb Page 4 of 4 Based on this assessment, staff would likely not have deemed any of the five trees a "significant tree" on an individual basis per Criterion 3(a). Per Criterion 3(b), potential alterations to the neighborhood skyline or its distinctive visual character can only be evaluated by comparing current site photos with historical imagery from surrounding streets and properties. After reviewing the current condition of the site alongside Google Street View images from prior years (Exhibit 2, pgs. 2-6), staff does not find that the removal of these trees resulted in a significant negative impact on the neighborhood skyline or overall aesthetics. In addition, the trees were not providing screening between dissimilar zones per Criterion 3(c), they were not street trees per Criterion 3(d),the removal of the five trees does not appear to be greater than 50%of a stand of trees per Criterion 3(e). Staff has determined that this application would have met Criterion 3, without having to address the Exception criterion. Conclusion and Recommendation: Overall, staff finds that Type II criteria would have been met for Criteria 2 and 3. However, additional information is necessary to determine compliance with Criterion 1, specifically regarding the proposed development and the justification for tree removal within the entire building envelope. That said, since the trees were not deemed significant, meeting the requirements for Criterion 1 would likely have been feasible. Based on the limited tree removal mainly within the building area on the site and retention of many other large firs, it appears that the applicant's intention was to remove trees in anticipation of future development, rather than to completely clear-cut the site or damage natural resources. If the Council decides to approve the annexation request, staff recommends that the applicant be required to mitigate the removal of the five trees by replanting at a minimum 1:1 ratio, using a mix of native species of medium to large stature, to complement the existing Douglas-firs and oaks on the site. All mitigation trees should be carefully planted to avoid conflicts with future development on the site. It is important to note that the county certification process is typically completed prior to any tree removal and does not constitute a full evaluation or approval of an application or permit for tree removal under the City of Lake Oswego's Tree Code provisions. Daphne Cissell Associate Planner ATTACHMENTS 1. Exhibit 1 County Type II Tree Removal Certification application; 2. Exhibit 2 Photos and Google Images; 3. Exhibit 3 5450 Kenny St Tree Survey Respect. Excellence. Trust. Service. AN 15-000I tAI1IbI I t-S/FAUt 4 VI- lb 04 cos Tree Removal Fee: n Date: iv 7/ V __ o Certification Intake Staff: AllREGO� (Unincorporated Properties) As provided for in Resolution 19-59, Policies Discouraging Destruction of Natural Resources and Significant Trees Prior to Annexation, this application process allows unincorporated property owners to certify that proposed tree removal would qualify for a Lake Oswego Tree Removal Permit if the property were within the City's boundaries. This certification process does not constitute a permit granting approval of the tree removal.The property owner is responsible for obtaining any permits that may be required from the County with jurisdiction over the property. Applicant: Jesse Davis Phone:503-713-7141 E-mail (required): Jdavis@pavilionconstruction.com Property Owner: Dana Bennett and Darin Rouhier Phone: 503-314-5636 E-mail:bennettrouhier@hotmail.com Address of Tree Removal Site: 5450 SW Kenny St Lake Oswego OR 97035 Are any of the trees in the public right-of-way? 0 Yes A No Number, Size(Trunk Diameter), &Type of Tree(s)to be Removed: 5 Trees,18'-44",Douglas Firs,The tree numbers are called out on the site plan. Reason for Removal: The trees are either in the proposed building footprint of the development or they are close enough to damage both the foundation of the structure and tree Itself. I grant permission to City of Lake Oswego employees to enter the above property to inspect the trees requested for re oval. I agree to restrain any dog(s)on inspection day. 9/ /-' /7/Z� Signature of Property Owner(required) Signature of Applicant(required if different) 0 TYPE I Submit: (1) Site plan (8%x 11"), (2) Printed photograph of tree(s) El TYPE II Submit: (1) Site plan (8%x 11"), (2)Type II Checklist, (3) Landscape plan (if applicable) To Do: (1) Mark tree(s)with ribbon O DEAD Submit: (1) Site plan (8%x 11"), (2) Printed photograph of tree(s) Deciduous trees require a site visit by staff between November 1st and April 15th. To Do: Mark the tree(s)with ribbon if a site visit is required ❑ HAZARDOUS Submit: (1) Site plan (8%x 11"), (2) Printed photograph of tree, (3) Hazard Evaluation Form completed by a Tree Risk Assessor Qualified Arborist To Do: Mark tree(s)with ribbon if a site visit is required ❑ EMERGENCY Submit: (1) Site plan (8%x 11"), (2) Printed photographs of tree(s) and emergency condition ❑ Invasive Submit (1) Site plan (8%x 11"), (2) Printed photograph of tree(s) that clearly identify each species of tree to be removed (e.g., overall photo of tree, close ups of leaves, bark or other identifying features—See Invasive Species Identification Guide) For City Staff Use Only Review Staff: Recognized Neighborhood Assoc.: Certification of Tree Removal: Would Qualify for Removal O Would Not Qualify for Removal O Withdrawn ❑ Certification Date: (Save completed application in Planning Staff Resources/Trees/County Tree Removal Certifications) 1:\formstapplctns\tree permit apps\County Tree Certification Form AN 25-0002 EXHIBIT E-3/PAGE 5 OF 16 Received '' U/ 2025 o� �sCtdLake Owego TYPE II APPLICATION CHECKLIST F T O Criteria for Issuance of a Type II Tree Cutting Permit OREGO� LOC 55.02.080 A Type II permit may only be approved if your application complies with all of the criteria in LOC 55.02.080.This checklist will assist you. City staff will review the application information and any comments received,visit the site, and then make a tentative decision. If more information is needed after the comment period has started,staff may then be required to restart the comment period,which will delay the initial decision. Please make sure to include all information and evidence to avoid this possibility. The City's Interactive Map can be used to create the required site plan (https://www.lakeoswego.city/lomap). 1. REASON FOR REMOVAL [LOC 55.02.080(1)] Reason for Removal: ❑ Outgrown Landscape Area ❑ Landscape Plan/Improvement El Development (check all that apply and provide additional information below or on a separate page if necessary) Tree Condition Describe Reason for Removal Tree Inches in (Good, Fair, (attach landscape plan and/or site plan for No. Species* Diameter Poor) proposed development, as applicable) 11305 Douglas Fir 44" Fair Site Plan For Proposed Development 11306 Douglas Fir 36" Poor Site Plan For Proposed Development 11307 Douglas Fir 18" Poor Site Plan For Proposed Development 11341 Douglas Fir 48" Fair Site Plan For Proposed Development 11342 Douglas Fir 40" Fair Site Plan For Proposed Development *Don't know the tree species?Enter"unknown deciduous"or"unknown evergreen"and staff will attempt to identify the species at the site visit. Note: If a tree is an invasive species, use an "invasive tree removal application"for removal. 2. EROSION, SURFACE WATER, AND WINDBREAK IMPACTS [LOC 55.02.080(2)] Considering proposed mitigation measures,will removal have a significant negative impact on erosion,soil stability,flow of surface waters, protection of adjacent trees,or existing windbreaks? ❑Yes • No Please explain your answer(e.g., describe site topography, presence of surface waters, and whether the tree removal would expose nearby trees to wind throw): None of these apply. Page 1 of 3 AN 25-0002 EXHIBIT E-3/PAGE 6 OF 16 3. NEIGHBORHOOD CHARACTER OR AESTHETICS IMPACTS [LOC 55.02.080(3)j Of the trees listed in Section 1 that are greater than 15"diameter,and in good or fair health,and are not invasive species, are any of those trees significant to the neighborhood due to size,species or distinctive character? ❑ Yes i No Please explain your answer(e.g., is the tree one of the biggest in the neighborhood, is it an unusual or rare species, is the tree unique in appearance and distinctive in the neighborhood, etc.): There are roughly 30 plus trees on this property/ROW. Is the tree(s) proposed for removal the only remaining tree(s) on the property? ❑ Yes E No Will the proposed tree removal alter distinctive features or the neighborhood skyline? ❑Yes U No Please explain your answer(e.g., is the tree prominently visible from areas within 300' of the site,will the tree removal create a significant change/gap to the treed skyline; photographs are strongly encouraged): No it will not cause change to the skyline.As stated there are 30 plus trees on this property. Do any of the trees proposed for removal provide a visual screen between dissimilar zoning districts,for example between a residential and commercial zone? El Yes U No Provide additional details, as needed, below: These do not. Are any trees proposed for removal located in a public right of way? El Yes NI No Note:The right-of-way is to the lot lines, not just the edge of the traveled area of the street/alley. Is more than 50%of a "stand"of tree proposed for removal?A"stand"is a group of trees that forms a visual and biological unit at least 15 feet in height with a contiguous crown width of at least 120 feet. ❑ Yes I. No Please explain your answer and describe the measurement methodology used to make this determination: Measurements did not seem to fit this category. EXCEPTIONS TO LOC 55.02.080(3) If you checked "yes" for any of the questions under Section 3, above, you are required to complete the Exceptions Section, below;if you answered "no"to all questions under Section 3,you may elect to skip to Section 4 or you can also address an Exception as an alternative argument for removal(in case the review body disagrees). Are any trees likely to or will continue to cause damage to a permanent,viable existing structure, or to infrastructure(e.g.,utilities or paved landscape features,etc.)? IN Yes El No Please explain your answer and attach evidence,such as photographs, arborist report, letter from structural engineer, or other relevant information if such damage is not visible and it is not clear that the damage is being caused by the tree: The trees would either be in the structure of the proposed building or close enough to cause damage to the foundation and structure. Page 2 of 3 AN 25-0002 EXHIBIT E-3/PAGE 7 OF 16 If yes, can the damage be remedied through reasonable maintenance or pruning? ❑ Yes NI No Please explain your answer and attach evidence, such as an arborist report: Have reasonable alternatives to the tree removal been considered,such as alternative site plans or placement of structures or alternate landscaping designs that would lessen the impact on trees (the alternatives must continue to comply with other provisions of the Lake Oswego Code)? IN Yes ❑ No Please explain your answer and attach any alternative plans considered and describe why they cannot be used: Yes, we have explored more site plans then ever imaginable and the current one with the proposed building and location is the best for the property and the neighborhood. The neighbors are excited for this development to happen. Can plant additional trees during the development if needed. 4. VIEW ENHANCEMENT [LOC 55.02.080(4)] Is the proposed tree removal for the sole purpose of providing or enhancing views? ❑ Yes • No 5. COMPLIANCE WITH OTHER CODE SECTIONS [LOC 55.02.080(5)] Is the proposed tree removal contrary to another section of the Lake Oswego Code (e.g.,Sensitive Lands requirement(LOC 50.05.010), prior condition of approval)? ❑ Yes i No If yes, please list code section and reasons: 6. MITIGATION [LOC 55.02.080(6) PURSUANT TO LOC 55.02.084] Replacement trees are required for each tree removed. Minimum mitigation size: 1.5 inch caliper for deciduous and 6 feet tall for evergreen. The mitigation plan must be approved prior to permit issuance and those trees will be inspected in the field. Indicate if any of the following apply: ❑ Native trees on the City's Master Plant List are proposed for removal. If so, mitigation trees must also be a native species. M "Significant"trees (per Section 3 above) are proposed for removal for development purposes. If so,two mitigation trees are required for each significant tree removed. ❑ Removal is for the landscaping purpose of thinning to improve the health of other trees. If so, mitigation shall be reduced to the extent there is insufficient space to replant elsewhere on the site and maintain tree health. Please explain below. ❑ There is insufficient space to plant one or more mitigation trees on-site. I request that staff verify this and allow replanting off-site on another property I own or to pay a fee into the Tree Fund in lieu of planting. Please explain below. List the proposed mitigation tree(s) species and show their locations,sizes,and species on the site plan. I would like to discuss with the city before paying money to add this to a site plan as I would like your professional input. 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DIGITALLY leGI D I ++C • !�,� `'�[�!MP ,-sra,KusE7 ._--' LDG1E5 am.$+NEE LAY LFITMIE ( �D i\ -OrE-C LI.!VAX LOCALE oatrr wale's 27OTJo13■bA77cla,01raQED ON p�gp1 al swam sew.Lwow I R 0l'' , 1X NCR © ! 3/I!/'t0g3. WADI 0 70I1 ' 1 • %°0 b 1.PO _ A l7 + n -ps WIRIER INFORLIATOt SOURCED FRW LO+APS.aa.YEMm M 3/2e/d721 IIOL PE* ,2•" 51p+ 8 .iP- •' ' r-" PDRL/1,[RAL b -O S CAS II LAna4 sour=RCN sir MAMMAL PLAT YAP•I-ors-ow,mum ON 0 TREE(OEUDurn61 „oCr ��7 1 r LOfiiall R 3�2a/207�.pot MAP Da3 5401'SHOW COwECTIIp SRNCE IP 111E sum!TRACT NEMILS I2-St.2�:y 21- TriEE(ENRpIIFH] a i l"'Fi �' i7i , i 1IA1 \ - Y jaiiil�w a I I� ST ', !I +{1._� �/ y ■ TREE 4-rue) A ,,• , I A - UV'r.om raw. NDS1S'3311T�:i j I `�.-• rule 71�TAKE 11�TAME '� i v uTun+a E a I L' 1/rE+ ` 1 zwi a Prlrr/ MITE a R i s PIT/ TIME waYtme ROOM Q Qt B9 yIJIrER uERT D - - l_ -u J 1 CAriq r5ooa r 5y ILO V r M IYALEA VALVE iL �r♦�a - N ] Kum AP hI' n=/5 M" Cr 1•PC YELLOW PIAS11^•CAP a r r .AN Jr It ma I Ar Lr ••----- RIM!LIFE aortae 0 IThy Ir >7 naJS - r• - i,- S _ MOW AI• it 'lET 1" r MY e1JLDINS reomTwlr uIE R a EDGE OF PA+pIEWT ' Y RRC N0'tID/-0l170]'�� N0 }�piN�E1 I,rI wP wr .� aa• r —oTFolof As NO LED 3 nSq- If Ir nrp•____ Jr K C 11101 Jr ,r ,Ii]o W II ---v,—DYEAE•NM 1lIE$ a + t,a'A K a n131 r IP -- PROVOS)S LDOIG LOCATING(YE NOTE PO 3w"1 2' 2EO • MOO r if - SIW! f I ■ 1 Ilan If r -.gm Ir Ir p —os-6 L+-0ER41UrYo CA5 LAE[in 3 i ° ` „Zq - it sr nif :•• iF ■ r I Ic S—llVOfAQtOVND S+X fARY SEVER USE �+ y PO. 1J'iS0 r 67 IFRI 1r it 1IPA Ir !r —•—IIUERrTarnlraD.ALEN LRE p gagay ,aP C —as-.—IAA1FRCROTIO WATER ME Las) n u,tJ r Jr' Ir ,13r Jr r - ' ! 7 OOHrAFiE I / n.0 Y IP ,5)1l7 u Ir r . d n LW AV. 6 M ow Dr it I135,- A Ir r i `• ] IIiM o• 7 51Jy - P ( � _(/- �1/.r�IJIfi 1 Cr 1 ) ESI( /Mu '1 ,ur S o , r 3All ur(rrrvo 070-001 AN 25-0002 EXHIBIT E-3/PAGE 16 OF 16 RESOLUTION 19-59 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO AMENDING THE POLICIES DISCOURAGING DESTRUCTION OF NATURAL RESOURCES AND SIGNIFICANT TREES PRIOR TO ANNEXATION WHEREAS,the "Policies Discouraging Destruction of Natural Resources and Significant Trees Prior to Annexation" (the "Policies") were originally adopted by Resolution 04-38 on May 18, 2004; and WHEREAS, it has been over 15 years since the Policies were adopted, and the City Council finds that the timeframe for the applicability of the policies should be revised from the effective date of the original Policies to a more limited timeframe; and WHEREAS, updates are needed to reflect code changes that have occurred since the Policies were originally adopted and to better assure any required mitigation will not conflict with future development; NOW,THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. The "Policies Discouraging Destruction of Natural Resources and Significant Trees Prior to Annexation" are amended as shown on attached Exhibit A (new text bolded and double- underlined,_deleted text shown with stfikethifettgb). Section 2. Effective Date. This Resolution shall take effect upon adoption. Considered and adopted at the regular meeting of the City Council of the City of Lake Oswego on the 3rd day of December 2019. AYES: Mayor Studebaker, Manz, O'Neill, LaMotte, Nguyen, Wendland, Kohlhoff NOES: None EXCUSED: None ABSTAIN: None Mict Kent Studebaker, Mayor ATTEST: Anne-Marie Simpson, City Recorder APPROVED AS TO FORM: Resolution 19-59 Page 1 of 2 AN 25-0001 EXHIBIT E-4/PAGE 1 OF 15 ,464441 David Powell, City Attorney Resolution 19-59 Page 2 of 2 AN 25-0001 EXHIBIT E-4/PAGE 2 OF 15 RESOLUTION 19-59 EXHIBIT A Proposed revisions are shown in strikeout for deleted text and bold, double-underline for new text. Comment boxes are included explaining the rationale for the revisions. The formatting and comment boxes will be removed for the final draft of the Resolution. POLICIES DISCOURAGING DESTRUCTION OF NATURAL RESOURCES AND SIGNIFICANT TREES PRIOR TO ANNEXATION Purpose: To encourage property owners interested in petitioning the City for annexation to preserve and protect natural resources and significanttrees prior to annexation. Background: The City of Lake Oswego has inventoried, evaluated, mapped and developed a protection program for hundreds of acres of stream corridors, wetlands and tree groves within its planning area (LOC Articic 50 4€50.05.010 and: 50.07.004.8). This planning area includes lands outside the City limits but within the City's Urban Services Boundary. In this unincorporated area, the City and other jurisdictions have agreed that the City is the most logical future provider of urban services and, according to state law, should plan for land use and transportation needs in those areas. It is anticipated that, at some point in the future, properties within the City's Urban Services Boundary will eventually seek annexation, typically for future development purposes or to receive City services. Staff Comment: This change updates the reference to the Sensitive Lands code section, which was renumbered when the CDC was reorganized in 2012. On several occasions, the City has received petitions to annex properties within the unincorporated areas of the Urban Service Boundary on which trees have been cut, vegetation removed and streams degraded. Although these actions may not have been regulated by the County, in some cases they would violate City natural resource protection requirements. Removal of natural resources contributes to erosion and water quality issues resulting in degradation of wildlife habitat and siltation buildup in waterways. When such properties are subsequently annexed, the City may become obligated to develop programs and expend funds to mitigate the negative effects of natural resource removal. These types of actions gain additional importance in light of the listing of salmonid species under the Endangered Species Act in the Tualatin and Willamette Rivers and their tributaries, which receive stormwater runoff and other drainage from within the City. In addition, several creeks within the northerly portion of the unincorporated Urban Services Boundary are tributaries of Tryon Creek, which is a fish-bearing stream. The County, the City and private citizens should work together to ensure that their programs and activities are "salmon safe." Page 1 of 13—Annexation Policies AN 25-0001 EXHIBIT E-4/PAGE 3 OF 15 RESOLUTION 19-59 EXHIBIT A Removal of significant trees, whether or not within a protected tree grove, can have a negative effect upon aesthetics and natural processes, and should be discouraged in areas subject to annexation unless the criteria for tree removal under the City Code have been meet. I. Policy for parcels from which trees of a certain size and species have been removed: The City Council declares that it will decline a petition for annexation of a parcel pursuant to ORS 222.125 or 222.170 if a tree of a size and species listed in the procedures below has been removed from the property within 10years prior to the date the annexation petition is filed with the City foti•ew+egtbe- date-eftb+s-pe+fey under circumstances that, in the determination of the City Manager, would not have warranted issuance of a permit for the removal of the tree under the criteria of the Lake Oswego Tree Code, unless the property owner: • Mitigates for the removal of the each tree at a 3:1 ratio to-the- &ati-sfactio++-04- he-City Ma+aagee-by planting-a trees of the same or similar species-1--5 e49-feet-t-a+4e fae F e ize•e€-§-te.4-2 that are a minimum 3-inch caliper at the time of planting on the ;amc property_The priority locations for planting the mitigation trees shall be within a required setback based on the Comprehensive Plan zone designation for the property. in a legally reserved open space or undevelopable area. or in an area that is separated from_: the developable remainder of the property by an undevelopable area or feature.-4-R-eppre i+ ately lae-sa+ e+eeatiera-es- be fe+ e ed- tcee If in the City's determination there is insufficient space on the property to accommodate all of the required mitigation trees,the property owner shall pay into the City of Lake Oswego Tree Fund the Tree Mitigation Fee as established in the Lake Oswego Master Fees and Charges for each mitigationree that cannot be accommodated on the property in addition to the restoration fee required, below: • Successfully maintains the replacement trees for at least three years prior to annexation, and commits to maintain the mitigation for at least two years following annexation;and • Pays a restoration fee into the City of Lake Oswego Tree Fund in the amount as established by the Tree Code Fees in the City's Master Fees and Charges-e€the a ►e-e€the-cemevedtree. Compliance with this policy shall not be deemed to assure that the City Council will approve the annexation petition. This policy shall not be construed as preventing the Council from exercising its full discretionary authority in granting or denying petitions for annexation as otherwise permitted by Oregon law. This policy applies to annexations that are initiated or requested by the Page 2 of 13—Annexation Policies AN 25-0001 EXHIBIT E-4/PAGE 4 OF 15 RESOLUTION 19-59 EXHIBIT A Staff Comment: Changes the timeframe for applicability of the policy to 10 years prior to annexation per Council direction at the October 15, 2019 study session. Keeping the timeframe for applicability to the date of the adoption of the policy,which was May 18, 2004, creates a longer and longer timeframe as years pass in which staff must determine whether trees were removed from the site in violation of this policy. The change to a 10-year timeframe from the date the annexation petition is filed provides a substantial deterrent to tree removal prior to annexation while maintaining a reasonable timeframe in which staff can determine if trees were removed in violation of this policy. Also changes the tree mitigation requirements to require more mitigation trees,but with a smaller caliper inch size, in order to better assure survival and because the availability of larger caliper mitigation trees, particularly larger caliper native trees, is more limited.Additionally,requires mitigation trees be planted in undevelopable areas such as setbacks or legally reserved areas, if available,rather than in the same general location that the trees were removed from. This reduces the likelihood that the mitigation trees would need to be removed for future development after annexation. If there is insufficient space to accommodate all the mitigation trees on site, the resolution allows for a payment into the Tree Fund instead. Also ties the restoration fee to the tree restoration fee as established by the City's Master Fee and Charges instead of the value of the removed tree,which is more ambiguous. owners of the property to be annexed and that require the consent of owners or electors under ORS Chapter 222. It does not apply to annexations by election under ORS Chapters 222 or 195 or to non-consensual "island" annexations. This policy applies notwithstanding the election requirements of Section 57 of the Lake Oswego Charter, which requires a City-wide vote prior to annexation of parcels within certain portions of the Stafford Area. If the owners of a parcel in that area initiate or request annexation contrary to this policy, the City Council will decline to refer the proposed annexation for a vote under Section 57. Procedure: 1. Upon receipt of an annexation petition, the City Manager will determine whether a tree of a species and size greater than or equal to that listed below has been removed from the site within 10 years prior_. to the date the annexation petition was filed with the City fallewing- e-date e€-th+s-jael+ey: Species Common Name Size (dbh) Quercus garryana Oregon white oak 08" Pseudotsuga menziesii Douglas-fir 18" Thuja plicata Western red cedar 12" Pinus Ponder5osa Ponderosa pine 12" Other Deciduous and horticultural tree species 20" Other evergreen and conifer trees 18"Taxus BrevifoliusWester Western YewTaxt►s-1 a 4fel+es 0g6" Page 3 of 13—Annexation Policies AN 25-0001 EXHIBIT E-4/PAGE 5 OF 15 RESOLUTION 19-59 EXHIBIT A Staff Comment: Changes the timeframe for applicability for the policy from the date of adoption of the resolution to a 10-year timeframe from the date the annexation petition is filed. Changes the size of the western yew that is subject to this policy from 5"to 6" DBH to reflect the 2016 amendment to the Tree Code, which changed the size of regulated trees from 5"to 6" DBH. 2. If the City Manager determines that such a tree has been removed,the City Manager shall then allow the property owner an opportunity to establish, to the satisfaction of the City Manager, that the circumstances of the removal would have warranted issuance of a tree removal permit under the criteria of the Lake Oswego Tree Code. 3. If the City Manager determines that the property owner has established that the circumstances of the removal would have warranted issuance of a tree removal permit, the City Manager shall inform the Council that the property owner has complied with this policy. 4. If the City Manager determines that the property owner has failed to establish that the criteria for a tree removal permit would have been met, annexation shall be declined unless the property owner: a. Plants-e-replaecmcnt mitigation trees at a 3:1 ratio of the same or a similar species (as determined by the City Manager)_that are a minimum 3-4-5- �0-feet-tall and-wit-14--a maize e#� inch caliper at the time of planting-431-b14;+ra- pproximatcly- be- same-+ecatieR on the property as-4he-r-emevedtree.The#e+glat ar renlF�ize w+t#in he above-ranges-shall Jae-dctcc-m+ned-#y- the-City-Manager, considceing Te pe-e-f- ree,-+t-s-grate-ratc, availabilityof-reial cmcnt-trees-et-vaeie -5--sizcs, e hes.i-z-e-ef- thcfeeaeveree-The priority locations for planting the mitigation trees shall be within a required setback based on thg Comprehensive Plan zone designation for the property, in a legally reserved open space or undevelopable area, or in an_ area that is separated from the developable remainder of the= property by an undevelopable area or feature. The trees shall be planted according to the specifications in the City Tree Planting and Maintenance Guidelines as approved by the City Council. If in the City's determination there is insufficient space on the_ property to accommodate all of the required mitigation trees, the property owner shall pay into the City of Lake Oswego Tree Fund the Tree Mitigation Fee as established in the Lake Oswego Master Fees and Charges for each mitigation tree that cannot be accommodated on the property in addition to the restoration fee required in 4 c, below; Page 4 of 13-Annexation Policies AN 25-0001 EXHIBIT E-4/PAGE 6 OF 15 RESOLUTION 19-59 EXHIBIT A Staff Comment: Changes the tree mitigation requirements to require more mitigation trees, but with a smaller caliper inch size, in order to better assure survival and because the availability of larger caliper mitigation trees, particularly larger caliper native trees, is more limited. Additionally, requires mitigation trees to be planted in undevelopable areas such as setbacks or legally reserved areas, if available,rather than in the same general location that the trees were removed from. This reduces the likelihood that the mitigation trees would need to be removed for future development after annexation. If there is insufficient space to accommodate all the mitigation trees on site, the resolution allows for payment into the Tree Fund instead. b. Successfully maintains the iep•laccmcnt mitigation tree for at least three years prior to annexation (Successful maintenance includes,without limitation, immediate replacement of any replacement tree that dies or otherwise declines during the maintenance period); and c. Pays a restoration fee into the City of Lake Oswego Tree Fund in the amount as established by the Tree Code Fees in the City's_ Master Fees and Charges-efthe-vale-el"the-removed-trec as- heterrr i teThesatisfaction e€thecity- age ie-accor-daRe-e- 4itc#memctheds-set 4&Ft#+i-The" +defer-1-lant Appraisal" I+shedrlay-The-Internatie ►al-Societye€Ar-hefieahe eFsuch ether methods -ma)Phe-deemed appropriateby#-lcie•Gi# Maeagef. Staff Comment: Ties the restoration fee to the Tree Restoration Fee as established by the City's Master Fee and Charges instead of the value of the removed tree, which is more In addition to the pre-annexation requirements of Sections 4 a, 4 b and 4 c, above, annexation of the property shall be conditioned upon the following: d. The property owner shall execute an agreement with the City requiring the property owner to maintain the required mitigation (tree replacement), at his or her expense, in a manner consistent with this policy and to the satisfaction of the City Manager for a period of at least two years following the effective date of the annexation.The agreement shall also provide that, if the property owner fails to meet this obligation,the City may enter the property to restore and maintain the mitigation at the property owner's expense; e. The property owner shall record a restrictive covenant against the property, in a form approved by the City Attorney, requiring the mitigation to be maintained for at least two years following the effective date of the annexation in a manner consistent with this policy and to the satisfaction of the City Manager, granting the City the right to enforce the restrictive covenant, and allowing recovery of attorney fees and other enforcement expense by the City; f. The property owner shall grant and record an easement, in the form Page 5 of 13—Annexation Policies AN 25-0001 EXHIBIT E-4/PAGE 7 OF 15 RESOLUTION 19-59 EXHIBIT A approved by the City Attorney,allowing the City access to and use of the property for the purposes of restoring and maintaining the required mitigation during the two-year period; and g. The property owner shall provide the City with a bond, cash deposit or other security acceptable to the City Manager, in a sum deemed by the City Manager to be sufficient to cover the costs of restoration and maintenance of the required mitigation during the two-year period. 5. Any person who owns property within the unincorporated portion of the City's Urban Services Boundary and who proposes to remove a tree may apply for certification by City staff that the proposed removal would qualify fora Lake Oswego Tree Removal Permit if the property were within the City's boundaries. Upon a subsequent annexation petition,the certification shall satisfy the property owner's burden under paragraph 2 of this policy with relation to the removal of the tree. An applicant for a certification under this paragraph shall pay the same fee as established for the corresponding tree removal permit. 6. The City Council will not approve annexation of property where the requirements of this policy have not been met, unless the City Council elects, in its discretion, to exempt the property from this policy. II. Policy for parcels with resources that are inventoried•er-fec-whic-# +s- pe+adirg: Staff Comment: The changes to this Section II remove all references to the Lake Oswego Natural Resource Inventory Update(NRIU)Map,which was a map that showed sites that had been identified as potentially containing significant natural resources under Statewide Planning Goal 5 (Natural Resources)but as of the date of adoption of Resolution 04-38 were pending a determination of a whether a Goal 5 resource existed on the site. In 2015,the Council adopted Ordinance 2687,which updated the City's Sensitive Lands Map and resolved all the sites that were previously pending resource determination on the NRIU Map. As a result, it is no longer necessary to refer to the NRIU Map for purposes of the resolution. An additional change to this section deletes a reference to the"City's Natural Resource Coordinator"and replaces it with "Planning Department"because the City has not had a Natural Resource Coordinator on staff for many years and the reference should be to the department generally since staffing needs and position titles can change. The City Council declares that it will decline a petition for annexation of a parcel pursuant to ORS 222.125 or 222.170 when: (1) the parcel has previously been inventoried pursuant to the ESEE analysis performed by the City pursuant to the requirements of Statewide Planning Goal 5 and determined to have natural resources that would have been protected if located within the City,of-the-parcel is-designated- en-tlaelak -Oswege-Nat-urai-Rese+ ee-4 wenrtory UpdateMa a&#a4 g- Page 6 of 13—Annexation Policies AN 25-0001 EXHIBIT E-4/PAGE 8 OF 15 RESOLUTION 19-59 EXHIBIT A aatu+akresources-# w-hiel}there+sa-pending dcte+acii- atieeas-te- whctheethecriteria-fe+eaei+protcctie+i arc Pa-et-rand (2) the natural resources on the parcel have been removed or otherwise degraded beyond that which would have been clearly permitted under the City natural resource regulations, unless the property owner mitigates the effects of the natural resource removal by restoring the site to the condition which would exist if the site had complied with the City's natural resource regulations from the date of the i nve nto ry-er#remthe etato-e€des+geation-e+ithelake•Gswege•Aiatu+ai- esetEreelnvcntory 4pdate-Ma to the date of annexation, and unless the mitigation is successfully maintained by the property owner for a period of at least three years prior to annexation, and the property owner commits to maintaining the mitigation for at least two years following annexation. If the property owner or other applicant for annexation cannot substantiate to the satisfaction of the City Manager the quality and quantity of natural resources that were on the site prior to the removal or degradation,the property owner must establish or enhance natural resources within the mapped natural resources area to a minimum quality and quantity determined by the City Manager, taking into consideration the data and analysis that resulted in the designation of the mapped natural resources area on the site. +++tbeeaee-e anpe*ation petitions-for parcels with-+-atu+al-+eeettrees- designateden-tfael akeGcwege-Aiatu+afReseerFee-tnventery-klpdate-Map-- R- aeaiysi-s-e€the-r-eeeurccs-Underthe-eritcria-ef-LOC 50. 92 &heif eampieted-lay-Ei -staffatthe-appliea '&expense riee e- heGity-cetiFteil-'-s- ee+isidcratiewefthepetition. + +r+thedetetaaination el=theGity-Mafiagefithe- +eset}rccs ceet--lae-eriteria#er-p-roteetfe+rt+R4ef#heGity-'e+fatu+ak+eeetifees- +egofatie+a ae+eetatiee�ui+i- eeii+red-ppu+stcafit- hi-s-peiiey-bless mitigation eeeurs as-provided-abeve-tfthe‘ity-Mapageetietcrmincstla-attlae- +eset+rces eie et meetthe-crite+ia#er- rotcction,tfa pei+ey sbali aet ate. Compliance with this policy shall not be deemed to assure that the City Council will approve the annexation petition. This policy shall not be construed as preventing the Council from exercising its full discretionary authority in granting or denying petitions for annexation as otherwise permitted by Oregon law. This policy applies to annexations that are initiated or requested by the owners of the property to be annexed and that require the consent of owners or_electors under ORS Chapter 222. It does not apply to annexations by election under ORS Chapters 222 or 195 or to non-consensual"island" annexations. Page 7 of 13-Annexation Policies AN 25-0001 EXHIBIT E-4/PAGE 9 OF 15 RESOLUTION 19-59 EXHIBIT A This policy applies notwithstanding the election requirements of Section 57 of the Lake Oswego Charter, which requires a City-wide vote prior to annexation of parcels within certain portions of the Stafford Area.4 If the owners of a parcel in that area initiate or request annexation contrary to this policy, the City Council will decline to refer the proposed annexation for a vote under Section 57. Procedure: To identify annexing parcels on which natural resources have been degraded and for which the City has conducted natural resources inventory and mapping, the following procedures shall apply: 1. Upon receipt of an annexation petition, City staff will determine whether the site contains inventoried natural resources-eo-conta-in-s- reso e-s-designated-er a=lhe-i_al-e-Os-w-ege- fa4-R-e&etwee Inv-ef e-Fy-i 4ate-{NR-lll}Map: If so, staff will visit the parcel(s) proposed for annexation and compare existing site conditions to the City's site inventory of natural resources e-F-te lae-#RIUMap. 2. If it appears that the functions and values of the natural resources on the site have been compromised since the parcel was inventoried ef- 4e&ignated-ertt-lae-4RIU Map beyond that which would be clearly permitted under the City's natural resource regulations: a. e +nventoricd e-seurcesT and-#enfesources-4e-signated en-the- -Ma aat-have been-detennaincdle-meet-the-criteria-f-e-r- jar-etection tfn4e*-paragraph-2-(44&Staff will instruct the property owner to develop a mitigation and restoration plan that restores and protects the functions and values of the resource on-site to the same degree as if the site had been protected under the City's natural resource programs from the date of inventory to the date of annexation. The plan shall be prepared by a certified professional (restoration ecologist, biologist, ecologist, etc.) approved by the City Manager. If the property owner or other applicant for annexation cannot substantiate to the satisfaction of the City Manager the quality and quantity of natural resources that were on the site prior the removal or degradation, the mitigation plan must provide for the establishment or enhancement of natural resources within the mapped natural resources area to a minimum quality and quantity determined by the City Manager, taking into consideration the data and analysis that resulted in the designation of the mapped natural resources area on the site. (A property owner who wishes to establish a natural resource "baseline" following inventory and prior to any development activities which could degrade the natural resources is encouraged to contact the City'-sNatuFa1- Resource Geerd+nate*Planning Department to obtain an Page 8 of 13—Annexation Policies AN 25-0001 EXHIBIT E-4/PAGE 10 OF 15 RESOLUTION 19-59 EXHIBIT A inventory of the quality and quantity of the natural resources existing on the site.) The mitigation plan shall be reviewed and either approved by the City Manager or the City Manager shall make recommendations for improvement to the mitigation plan. 1-ra• laeeaee-ef-parcels--w-itla••eatuFal-reso4►reesdesignate4•eR- he• AlRlk�Maia a-R-analysis-e the-resources-under#ie•er+teFi-a-ef-W-- 50:-1-5•:820shall. e-ee+a leted -amity-staff et#ie app licant' - ex e4se- -eliewing-the-a-R lysis,- h-e amity-MaRagee-slaall eeter-a4Re-►nrhether#ieFcsoerees•meet- he-er-+teFia-for pretection.if mitigatien-under paFa graph-2(a)-shall-be- Fequ+r-e4te4IRe-same-extent--as t-heugh-t-he-c-ese+kwces#ad been +awentoried rie tetbe{nimgeftiaeenee atie{a�etitioa: 3. If the property owner complies with the mitigation plan as approved by the City Manager prior to annexation, and maintains the mitigation for at least three years prior to annexation, the property owner shall be deemed to have restored the natural resources on the parcel sufficient to be eligible for annexation under this policy. Annexation of the property shall be conditioned upon the following: a. The property owner shall execute an agreement with the City requiring the property owner to maintain the required mitigation, at his or her expense, in a manner consistent with this policy and to the satisfaction of the City Manager for a period of at least two years following the effective date of the annexation. The agreement shall also provide that, if the property owner fails to meet this obligation, the City may enter the property to restore and maintain the mitigation at the property owner's expense; b. The property owner shall record a restrictive covenant against the property, in a form approved by the City Attorney, requiring the mitigation to be maintained for at least two years following the effective date of the annexation in a manner consistent with this policy and to the satisfaction of the City Manager, granting the City the right to enforce the restrictive covenant, and allowing recovery of attorney fees and other enforcement expense by the City; c. The property owner shall grant and record an easement, in the form approved by the City Attorney, allowing the City access to and use of the property for the purposes of restoring and maintaining the required mitigation during the two-year period; and d. The property owner shall provide the City with a bond, cash Page 9 of 13-Annexation Policies AN 25-0001 EXHIBIT E-4/PAGE 11 OF 15 RESOLUTION 19-59 EXHIBIT A deposit or other security acceptable to the City Manager, in a sum deemed by the City Manager to be sufficient to cover the costs of restoration and maintenance of the required mitigation during the two-year period. 4. The City Council will not approve annexation of property where the requirements of this policy have not been met, unless the City Council elects, in its discretion, to exempt the property from this policy. III. ,Policy for parcels where water resources have been degraded in violation of state or federal law. The City Council declares that it will decline a petition for annexation of a parcel pursuant to ORS 222.125 or 222.170 if, following the date of this policy, a water resource on the parcel has been filled, or has had material removed, or has otherwise been degraded, in violation of any state or federal law or regulation, unless the property owner: • Pays in full all fines, civil penalties and other assessments imposed or otherwise required by any state or federal agency; • Pays in full any damages awarded pursuant to the provisions of ORS Chapter 196 or pursuant to any similar or related statutes or regulations; • Fully complies with any order of any state or federal agency related to the degradation of the water resource; and • Complies with all mitigation or restoration requirements imposed or ordered by a state or federal agency, and successfully maintains the mitigation or restoration for at least three years prior to annexation and commits to maintain the mitigation for at least two years following annexation. For the purposes of this policy, "water resource" shall mean any natural waterway including any bay, stream, lake, wetland or other body of water, whether navigable or non-navigable. Compliance with this policy shall not be deemed to assure that the City Council will approve the annexation petition. This policy shall not be construed as preventing the Council from exercising its full discretionary authority in granting or denying petitions for annexation as otherwise permitted by Oregon law. This policy applies to annexations that are initiated or requested by the owners of the property to be annexed and that require the consent of owners or electors under ORS Chapter 222. It does not apply to annexations by election under ORS Chapters 222 or 195 or to non-consensual "island" annexations. Page 10 of 13—Annexation Policies AN 25-0001 EXHIBIT E-4/PAGE 12 OF 15 RESOLUTION 19-59 EXHIBIT A This policy applies notwithstanding the election requirements of Section 57 of the Lake Oswego Charter, which requires a City-wide vote prior to annexation of parcels within certain portions of the Stafford Area. If the owners of a parcel in that area initiate or request annexation contrary to this policy, the City Council will decline to refer the proposed annexation for a vote under Section 57. Procedure: 1. Upon receipt of an annexation petition, City staff will determine whether the site contained a water resource=within 10 years prior to the date the annexation petition is filed with the City-die+4e datc e€Th4s-pel+c-y, and will visit the site to determine the current condition of the resource. 2. If it appears thatr-falfewi14g-4he•datceL h+s-pel-ley? within 10 years prior to the date the annexation petition is filed with the City that removal or fill has occurred, or that the functions and values of the water resource have otherwise been compromised, in violation of any state or federal law or regulation, and if the violation has not previously been reported to the appropriate state or federal agency, the violation shall be reported to the appropriate agency by City staff. Staff Comment: Changes the timeframe for applicability of the policy to 10 years prior to annexation per Council direction at the October 15, 2019 study session. Keeping the timeframe for applicability to the date of the adoption of the policy, which was May 18, 2004, creates a longer and longer timeframe as years pass in which staff must determine whether resources were altered on the site in violation of this policy. The change to a 10-year timeframe from the date the annexation petition is filed provides a substantial deterrent to resource alteration prior to annexation while maintaining a reasonable timeframe in which staff can determine if resources were altered in violation of this policy. 3. If it appears to staff that no violation has occurred and no report has been made, or if a report is made but the appropriate state or federal agency determines that no violation has occurred, the City Manager shall inform the City Council that the proposed annexation does not violate this policy. 4. If a report has been made, and the appropriate state or federal agency determines that a violation has occurred, the annexation petition shall be denied unless the property owner: a. Pays in full all fines, civil penalties and other assessments imposed or otherwise required by any state or federal agency; b. Pays in full any damages awarded pursuant to the provisions of ORS Chapter 196, or awarded pursuant to any similar or related Page 11 of 13—Annexation Policies AN 25-0001 EXHIBIT E-4/PAGE 13 OF 15 RESOLUTION 19-59 EXHIBIT A statutes or regulations; c. Fully complies, in the determination of the City Manager, with any order of any state or federal agency related to the degradation of the water resource; and d. Fully complies, in the determination of the City Manager, with all mitigation or restoration requirements imposed or ordered by the state or federal agency, and successfully maintains the mitigation or restoration for at least five years prior to annexation. In addition to the pre-annexation requirements of Sections 4 (a), 4 (b), 4 (c) and 4 (d), above, annexation of the property shall be conditioned upon the following: e. The property owner shall execute an agreement with the City requiring the property owner to maintain the required mitigation, at his or her expense, in a manner consistent with this policy and to the satisfaction of the City Manager for a period of at least two years following the effective date of the annexation. The agreement shall also provide that, if the property owner fails to meet this obligation, the City may enter the property to restore and maintain the mitigation at the property owner's expense; f. The property owner shall record a restrictive covenant against the property, in a form approved by the City Attorney, requiring the mitigation to be maintained for at least two years following the effective date of the annexation in a manner consistent with this policy and to the satisfaction of the City Manager, granting the City the right to enforce the restrictive covenant, and allowing recovery of attorney fees and other enforcement expense by the City; g. The property owner shall grant and record an easement, in the form approved by the City Attorney, allowing the City access to and use of the property for the purposes of restoring and maintaining the required mitigation during the two-year period; and h. The property owner shall provide the City with a bond, cash deposit or other security acceptable to the City Manager, in a sum deemed by the City Manager to be sufficient to cover the costs of restoration and maintenance of the required mitigation during the two-year period. Page 12 of 13—Annexation Policies AN 25-0001 EXHIBIT E-4/PAGE 14 OF 15 RESOLUTION 19-59 EXHIBIT A 5. The City Council will not approve annexation of property that does not comply with the preceding requirements, unless the Council elects, in its discretion,to exempt the property from this policy. IV. Obligations Run with the Land. Any obligation of the "property owner" under these policies shall "run with the land" and shall be an obligation of the owner of the property at the time required for performance of the obligation, regardless of any prior transfers of title. V. Public Notice. The City Manager shall publicize the adoption of these policies by providing notice to the news media, local realtors, local arborists and foresters, the Home Builders Association of Metropolitan Portland,the Clackamas County Planning Department, and to those Neighborhood Associations and County Planning Organizations whose boundaries include unincorporated areas within the City's Urban Services Boundary.The City Manager shall encourage the Neighborhood Associations and County Planning Organizations to provide notice of these policies to their membership,and to any realtor that posts signage advertising a property for sale within the unincorporated area. The City Manager shall also provide written notice of these policies to the owners (as listed in the property tax assessment roll) of property within the unincorporated area that have inventoried natural resources-eF a have-resource&4esigneted-s 4he-hake-Oswcge-Natty Rcsa e-I cntory 4 p€l &Map. VlrReplacement-e€ revieeseRwexatien-ee4iev These-pel+eies-retalacc hero-ter-i+FI-Peiie}-srr-Aftf►e*atien- -by- e-C-ity-Manage srrApcii-- 2004. Staff Comment: Before Resolution 04-38 was adopted, the City Manager had adopted an Interim Policy on Annexation regarding tree removal and destruction of resources. This section clarified that the interim policy was replaced by Resolution 04-38. Since Resolution 04-38 has been in effect for more than 15 years now,this section is no longer needed. Page 13 of 13-Annexation Policies AN 25-0001 EXHIBIT E-4/PAGE 15 OF 15 9.2 O F �s� COUNCIL REPORT —� OREGO� Subject: Ordinance 2961, Annexing property at 6210 Lakeview Blvd. (AN 25-0002) Meeting Date: July 1, 2025 Staff Member: Paul Espe, Associate Planner Report Date: June 11, 2025 Department: Planning and Building Services Action Required Advisory Board/Commission Recommendation ❑ Motion ❑ Approval ❑X Public Hearing ❑ Denial ❑X Ordinance ❑ None Forwarded ❑ Resolution ❑X Not Applicable ❑ Information Only Comments: This annexation is being processed as a ❑ Council Direction public hearing (not expedited decision) under Metro ❑ Consent Agenda Code 3.09.050(A-D). Staff Recommendation: Enact Ordinance 2961. Recommended Language for Motion: Move to enact Ordinance 2961. Project/ Issue Relates To: Annexation of residential property to the city. Issue before Council (Highlight Policy Question): ❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑X Not Applicable EXECUTIVE SUMMARY/BACKGROUND The proposed annexation is owner-initiated and will result in the addition of approximately 0.55 acres of residential land to the City. This Council Report describes the reasons for the annexation and provides basic background information.This annexation will result in property that will be zoned R-10 as designated in the Comprehensive Plan shown in Attachment A. The criteria for approving annexations and findings in support of this annexation are included in Attachment B of Exhibit A-1 (Ordinance 2961). Owner/Applicant: Matt Williams and Mallory Temple Respect. Excel'ence. Trust. Service, 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 ``' Vicinity Map P 6L S 44 0 0� J\e 1 5c3 U 1 i. Proposed I �,a a sus J� J a °' Annexation il•i 6' 0-, •.1" (7 L, p Kenny St. r6')75, 6C,,,, -> co I 05 6' � o 18231 c18220 F, w F ^e �$ Q — i \ o� 8 r� / 18238 so 0 ACS (—_N_:_i___r•) r•) G� VI. 2p pI ��S 18274 6024 ��"�ti 18440 �� 1 831 6 6010 a)c71 `� 6 18341 w o) a,pS - 'c 18462 •tiN 18344 5978 6 s,, I oi a c, F s__ oS G yds,rsr� i 7 18369 18372 r 6j �5 u) co \) 0 r c, a-) 0) 1 0)a 18411 ) 01 N.) L, ,OA,) (0 �� co Location/Size: Southeast corner of Lakeview Blvd. and Kenny Street/0.55 acres (23,958 square feet). Existing Land Use:The property (Tax Map/Lot 21E18CCO2600) is occupied by a single-family dwelling that takes access from Lakeview Blvd. Neighborhood: Rosewood Neighborhood Association Purpose of Annexation: Owner initiated annexation to connect to city sewer. (Future development of the property is beyond the scope of this review). DISCUSSION Plan and Zone Designation: The subject property is currently under Clackamas County's jurisdiction and zoned Low-Density Residential R-10. It is designated R-10, Medium Density Residential on the City of Lake Oswego Comprehensive Plan Map and will be zoned R-10, pursuant to LOC 50.01.004.5.a-c. Development Potential: Based on the size and shape of the parcel, this parcel could be divided into two lots. It can also be developed under the densities allowed under the middle housing standards. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 Statewide Goal 10 and Complete Neighborhoods and Housing Statewide Goal 10 Housing City Comprehensive Plan Complete Neighborhoods and Housing Chapter Statewide Planning Goal 10 (and the Complete Neighborhoods and Housing Goal in the City Comprehensive Plan) ensures the opportunity to provide adequate numbers of needed housing units, the efficient use of buildable land within urban growth boundaries, and to provide greater certainty in the development process so as to reduce housing costs. Staff has provided findings (Exhibit A-1, Attachment B) that the proposed annexation and designation of City R-10 zoning are consistent with the Comprehensive Plan and Map, and will help to meet the City's housing needs as identified by the Housing Needs Analysis (HNA). The proposal would provide the opportunity for needed housing as identified in the HNA, is consistent with the Comprehensive Plan, and therefore complies with Goal 10. (See Attachment B for the complete findings under Goal 10). Sewer and Water Service: Sanitary sewer service is available from an 8-inch collection line located in Lakeview Blvd. along the site frontage that will be able to provide service to this site. The City requires sanitary sewer extensions to be taken to the upstream property line when a property proposes to connect. In this case, the sewer is already extended along the full length of Lakeview Blvd. Therefore, this site will be allowed to connect to the existing public sanitary sewer main located in Lakeview Blvd. Note: Engineering Staff has preliminarily commented by memo on the development standards that would apply. Water: The property is served by the Rivergrove Water District. There is a Rivergrove Water District water main and a City Water Main located in Lakeview Blvd. along the site frontage. The nearest existing fire hydrant is located at the front of the property adjacent to the east property line. The City of Lake Oswego entered into an agreement with the Rivergrove Water District on February 8, 1984 for water services. The agreement stipulates that the District will continue to serve the property upon annexation if it is capable of delivering a minimum flow of 1500 gallons per minute with a 20 psi residual pressure during periods of peak domestic demand. The District is currently able to meet these demands. If upon further development, this level of service is not provided, then City water may need to be provided. Surface Water Management: Once the property is annexed, the territory will be subject to the City's stormwater management regulations. Any new development will be subject to these provisions, which ensure that new development does not have an adverse effect on adjoining properties and does not overburden the City stormwater system. Respect. Excel'ence. Trust. Service, 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 4 Service Districts: Upon annexation, the property will, by operation of ORS 222.520, be withdrawn from the Lake Grove Fire District#57 (per the July 2003 urban service agreement; no bonded debt) the Surface Water Management Agency of Clackamas County and the Clackamas County Enhanced Sheriff's Patrol District (no bonded debt) but will remain in the Lake Grove Park District (per the July 2003 urban service agreement), Rivergrove Water District (no bonded debt) and the Library District of Clackamas County (per the 2009 County IGA). Transportation:The City's Transportation System Plan (TSP) implements the multi-modal transportation system that will meet the needs of the city for a 20-year planning horizon. Lakeview Blvd. is a two-lane uncurbed Neighborhood Collector and is under the jurisdiction and permitting authority of the City of Lake Oswego. The nearest mass transit service is Tri-Met bus line 37, which operates between downtown Lake Oswego and the Tigard and Beaverton Transit Centers. Service can be accessed at the intersection of Pilkington and Jean Roads. The draft findings provided in Attachment B of Exhibit A-1 conclude that the proposed annexation complies with all applicable State statutes and Metro code requirements. Resolution 19-59: Policies Discouraging Destruction of Natural Resources and Significant Trees Prior to Annexation This annexation policy was adopted by the City Council in 2004 and updated in 2019. It was developed to encourage property owners interested in applying for annexation to the City to preserve and protect natural resources and significant trees on their property. The City has a protection program for hundreds of acres of stream corridors, wetlands and tree groves within the City and its potential annexation area (LOC 50.05.010 and 50.07.004.8). More detailed information can be found in the Findings [Attachment B and Resolution 19-59 (Exhibit E-4)]. The applicant indicated that six trees were removed from the property prior to the application for annexation. In order to evaluate the tree removal for compliance with the City's annexation policy, staff advised the applicant to submit a Type II County Tree Removal Certification application. This is a program offered by the City to residents in unincorporated Clackamas County within the City's Urban Growth Boundary to receive certification that tree removal complies with the City's annexation policy. It is a voluntary program and is not an actual permit issued by the City. The applicant submitted a County Tree Removal Certification application (Exhibit E-2) for the six trees that were removed, which consisted of five Douglas firs (Trees#1 - #5) measuring 18" DBH, 18" DBH, 18" DBH, 48" DBH, and 50" DBH, respectively, as well as one 15" DBH red oak (Tree #6). The existing condition of each of the trees (prior to removal) was not available so staff assumed that all of the trees were in fair or better condition. Summary of Findings As discussed in the staff findings in Exhibit E-3, staff finds that the applicable Type II tree removal criteria would have been met for Criteria 2 and 3. However, additional information is necessary to determine compliance with Type II Criterion 1, specifically, regarding the justification for tree removal with the existing driveway repair on the west side of the property. Respect. Excel'ence. Trust. Service, 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 5 That said, since none of the six trees were deemed significant, it's reasonable to assume that Criterion 1 could be met further details can be found in Exhibit E-3. If the Council decides to approve the annexation request, staff recommends that the applicant be required to mitigate the removal of the six trees by replanting at a minimum 1:1 ratio, using a mix of native species of medium to large stature to complement the existing Douglas-firs and ornamental trees on the neighboring properties. All mitigation trees should be carefully planted to avoid conflicts with future development on the site. The Council has the following decision options: 1. Approve the annexation of the property and require no mitigation. 2. Approve the annexation of the property and require mitigation normally required for a Type II tree removal application by replanting at a minimum 1:1 ratio with a mix of native species prior to final building inspection for any future dwelling. All mitigation trees shall be carefully planted to avoid conflicts with future development on the site. 3. Delay annexation of the property for a period of three years and require replacement of the trees at a 3:1 ratio in accordance with the provisions in Resolution 19-59(4)(a-g) [Exhibit E-4].1 FISCAL IMPACT The estimated assessed value of the residential property is $360,527. The estimated tax revenue after the parcel is annexed is $932. RECOMMENDATION Approve AN 25-0002 (Ordinance 2961) under Option 2. EXHIBITS A. Draft Ordinances A-1 Ordinance 2961 (Draft Annexation, 06/11/25) Attachment A: Map of Proposed Annexation, 05/13/25 Attachment B: Criteria, Findings, Conclusion, and Effective Date, 06/11/25 B. Minutes None. C. Staff Reports None. D. Graphics/Plans E. Written Materials 1 Note that the annexation policy should not be construed as preventing the Council from exercising its full discretionary authority in granting or denying petitions for annexation as otherwise permitted by Oregon law. Respect. Excel'erce. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 6 E-1 Housing Needs Analysis 2023 (Oregon Statewide Planning Goal 10) Comprehensive Plan excerpt, 09/21/23 (due to size, use link below to view this exhibit) E-2 Application for Tree Removal Certification for Unincorporated Properties and Checklist E-3 County Type II Tree Removal Certification Review 06/04/25 E-4 Resolution 19-59 Amending Policies Discouraging Destruction of Natural Resources and Significant Trees Prior to Annexation LINK TO PUBLIC RECORDS FOLDER FOR THIS CASE https://www.ci.oswego.or.us/WebLink/Browse.aspx?id=2950844&repo=CityOfLakeOswego Respect. Excel'ence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY DRAFT: 06/11/2025 ORDINANCE 2961 AN ORDINANCE ANNEXING TO THE CITY OF LAKE OSWEGO ONE PARCEL CONSISTING OF 0.55 ACRES AT 6210 LAKEVIEW BLVD; DECLARING CITY OF LAKE OSWEGO ZONING OF R-10, PURSUANT TO LOC 50.01.004.5(a-c); AND REMOVING THE TERRITORY FROM CERTAIN DISTRICTS (AN 25-0002). WHEREAS, annexation to the City of Lake Oswego of the territory shown in the map in Attachment "A" and described below, would constitute a contiguous boundary change under ORS 222.111, initiated by petition from the property owners as outlined in ORS 222.111(2); and, WHEREAS, the City has provided written notification of this annexation as required under ORS 222.120(3); and, WHEREAS, the City has received consent for the proposed annexation from all of the property owners and not less than 50 percent of the electors residing in the territory, as outlined in ORS 222.125; and, WHEREAS, the territory lies within the Lake Grove Fire District#57 district boundaries and the district has no bonded debt, and pursuant to the July 2003 urban service agreement between the City and the district the territory should be withdrawn from the district, the City elects ORS 222.520(2)(b), the territory shall be withdrawn from that district immediately upon approval of the annexation; and, WHEREAS, the territory lies within the Clackamas County Enhanced Sheriff's Patrol District boundaries and the district has no bonded debt, the City elects ORS 222.520(2)(b), and the territory shall be withdrawn from the district upon approval of the annexation; and, WHEREAS, the part of the territory that lies within the Surface Water Management Agency of Clackamas County and the district has no bonded debt, the city elects ORS 222.520(2)(b) and the territory shall be withdrawn from that agency immediately upon approval of the annexation; and, WHEREAS, LOC 50.01.004.5 specifies that, where the Comprehensive Plan Map requires a specific Zoning Map designation to be placed on the territory annexed to the City, such a zoning designation shall automatically be imposed on the territory as of the effective date of the annexation; and, WHEREAS, this annexation is consistent with the Urbanization Chapter of the City of Lake Oswego's acknowledged Comprehensive Plan, Oregon Revised Statutes 222.111(2), 222.120 and 222.125 for boundary changes, and Metro Code Sections 3.09.030 (A-C), 3.09.040(A)(1-4) and 3.09.050. Ordinance 2961,AN 25-0002 (21E18CCO2900) EXHIBIT A-1/PAGE 1 OF 4 DRAFT: 06/11/2025 Now, therefore, the City of Lake Oswego ordains as follows: Section 1. The real property described as follows is hereby annexed to the City of Lake Oswego: A tract of land located within the southwest quarter of Section 18, Township 2 South, Range 1 East of the Willamette Meridian, City of Lake Oswego, Clackamas County, Oregon, said tract of land being a part of Lot 57, Map of Rosewood (Plat No. 102), and a part of a 40.00-foot right of way vacation as per Board of County Commissioners Order No. 7906, recorded April 13, 1960 in the Official Records of Clackamas County, as Book 569, Pages 760-761, said tract of land being all of that property conveyed to Matthew Timothy Williams and Mallory Judith Temple, by Statutory Warranty Deed recorded March 8, 2024 in the Official Records of Clackamas County as Recording No. 2024-008015; said tract of land more particularly described as follows: Beginning at the northeast corner of Lot 11, Highland Terrace (Plat No. 927), said point being on the southeasterly right-of-way line of Lakeview Boulevard (County Road No. 1126), 30.00 feet southeasterly from the centerline thereof when measured at right angles; Thence leaving said right-of-way line, South along a line being common to the westerly line said Lot 57 and northerly extension thereof, and the easterly lines of said Lot 11 and Lot 10 of said Highland Terrace, 148.14 feet to the northwest corner of Lot 14, Fernbrook No. 2 (Plat No. 1004); Thence leaving said common line, South 88°55'50" East along the northerly lines of said Lot 14 and Lot 13 of said Fernbrook No. 2, 120.00 feet to the southwest corner of Lot 18 of said Fernbrook No. 2; Thence leaving said northerly lines, North along the westerly line of said Lot 18, 236.00 feet to the northwest corner thereof, said point being on the southerly right of way line of Kenny Street (County Road No. 2335), 25.00 feet southerly from the westerly extension of the centerline thereof when measured at right angles; Thence leaving said westerly line of Lot 18, North 88°55'05" West along said southerly right of way line of Kenny Street, approximately 17 feet, more or less, to the intersection of the southeasterly right-of-way line of said Lakeview Boulevard, said line being common to the northwesterly line of said right-of-way vacation as per County Commissioners Order No. 7906; Thence leaving the southerly line of said Kenny Street, South 50°03'00" West along said common line, approximately 134 feet, more or less, to the point of beginning. The annexed territory is depicted on Attachment A. Section 2. The above Recitals are incorporated. Section 3. The annexed area lies within the following districts and shall be retained within these districts upon the effective date of annexation: Lake Grove Park District Library District of Clackamas County Ordinance 2961,AN 25-0002 (21E18CCO2900) EXHIBIT A-1/PAGE 2 OF 4 DRAFT: 06/11/2025 Section 4. The annexed area lies within the following districts and shall be withdrawn from these districts upon the effective date of annexation: Lake Grove Fire District#57 Clackamas County Enhanced Sheriff's Patrol District Surface Water Management Agency of Clackamas County Rivergrove Water District Section 5. In accordance with LOC 50.01.004.5, the City zoning designation of R-10, shall be applied to the subject property on the effective date of annexation, as shown on Attachment A. Section 6. The City Council hereby adopts the findings of fact and conclusions set forth in Attachment B in support of this annexation ordinance. Section 7. Effective Dates: a. Effective Date of Annexation Ordinance. Pursuant to Lake Oswego City Charter, Section 35.C, this ordinance shall be effective on the 30th day after its enactment. b. Effective Date of Annexation. Following the filing of the annexation records with the Secretary of State as required by ORS 222.177, this annexation shall be effective upon the later of either: 1. the 30th day following the date of adoption of this ordinance; or 2. the date of filing of the annexation records with the Secretary of State. Provided, however, that pursuant to ORS 222.040(2), if the effective date of the annexation as established above is a date that is within 90 days of a biennial primary or general election or after the deadline for filing notice of election before any other election held by any city, district or other municipal corporation involved in the area to be annexed, the annexation shall become effective on the day after the election. Read by title only and enacted at the regular meeting of the City Council of the City of Lake Oswego held on first day of July, 2025. AYES: NOES: ABSTAIN: ABSENT: Joseph M. Buck, Mayor Dated Ordinance 2961,AN 25-0002 (21E18CCO2900) EXHIBIT A-1/PAGE 3 OF 4 DRAFT: 06/11/2025 ATTEST: Kim Vermillion, Interim City Recorder APPROVED AS TO FORM: Ellen Osoinach, City Attorney Ordinance 2961,AN 25-0002 (21E18CCO2900) EXHIBIT A-1/PAGE 4 OF 4 % Annexation to the City of Lake Oswego _ AN 25-0002/Ordinance 2961 z 6.00 s. s� ♦ 52 Q � 0) P ��eVD �l o 0 591p a 6 �� ' o. 41 111 ® _ o o o O10 (0 cn envy S4 SWCC Kenny St ��6 "� o w 18231 cn al s s� Q 18220 0 09 i �s R-10 7" ..\J� �� , 7�25>\_7(s)C'D ( 18238 \ cos c 1a�2p I �0A 182�S 18274 6024 '` %7 �� ,mow; oA t°' 00, J`�4 ,• �Q�s :444620 I S N ,�4'`� t• H 18316 6010 0 18341 Q rn rn o ass �I� sr,� a Q cn w 18344 5978 `� �� s7s eev', >• 7c9Q� 18369 SW Fernbrook St 18372 > `� d' 18411 4- -P N o 18418 t N v Q 18558 �� y0 18� C F 1 iv� �— Attachment A oY E�4 li '( I UO No- 1 Tax Lot ID: 21 E18CCO2900 m R GO '"� City of Lake Oswego: ( 18552 COMPREHENSIVE PLAN = R-10, Residential Low Density _ 0141&°"--4)A44011p,Ow ZONING = R-10, Residential Low Density �`p� s�0 Clackamas County: N 1S / -------- - ZONING = R-10, Urban Residential Low Density i - WV AP N a, I Lake Oswego rA Subject ? co rn I——-J City Limits Property (1) °' 0 50 100 200 300 400 500 600 • • Feet 1 5/13/2025 ATTACHMENT B Criteria, Findings, Conclusion,and Effective Date APPLICABLE CRITERIA: A. Oregon Revised Statutes (ORS), Boundary Changes; Mergers and Consolidations. 1. ORS 222.111(2)Authority and Procedure for Annexation; Specifying Tax Rate in Annexed Territory. 2. ORS 222.120(1, 3) Procedure for Annexation Without Election; Hearing; Ordinance Subject to Referendum. 3. ORS 222.125-Annexation by Consent of All Owners of Land and Majority of Electors; Proclamation of Annexation. B. Metro Code. 1. 3.09.030 (A-C) Notice Requirements 2. 3.09.040(A)(1-4) Requirements for Petitions. 3. 3.09.050 Hearing and Decision Requirements for Decisions Other Than Expedited Decisions C. Comprehensive Plan - Urbanization Chapter 1. Policy A-3: "The Urban Services Boundary(as depicted on the Comprehensive Plan Map) is the area within which the City shall be the eventual provider of the full range of urban services." 2. Policy C-3: "Ensure that annexation of new territory or expansion of Lake Oswego's Urban Services Boundary does not detract from the City's ability to provide services to existing City residents." 3. Policy C-4: "Prior to the annexation of non-island properties, ensure urban services are available and adequate to serve the subject property or will be made available in a timely manner by the City or a developer, commensurate with the scale of the proposed development." 4. Policy D-3: "Enter into and maintain an Urban Growth Management Agreement with Clackamas County for lands within the Urban Services Boundary to ... (g) "Promote orderly annexation of territory." D. Comprehensive Plan—Complete Neighborhoods and Housing (Statewide Goal 10) Policy B-1: "Provide and maintain zoning and development regulations that allow the opportunity to develop an adequate supply and variety of housing types, and that accommodate the needs of existing and future Lake Oswego residents." E. OAR 660-008-0010-Allocation of Buildable Land FINDINGS: A. Oregon Revised Statutes (ORS), Boundary Changes; Mergers and Consolidations. 1. ORS 222.111(2)Authority and Procedure for Annexation Specifying Tax Rate in Annexed Territory. ORS 222.111(2) provides that a proposal for annexation of territory to a City may be initiated by the legislative body of the City, on its own motion, or by a petition to the legislative body of the City by owners of real property in the territory to be annexed.The owners of this property have petitioned the City for this annexation.The proposed annexation complies with this statute. 2. ORS 222.120 Procedure for Annexation Without Election; Hearing; Ordinance Subject to Referendum. ORS 222.120(1, 3) states that an election need not be held on the question of annexation to the electors of the city for their approval or rejection if the legislative body provides for a duly noticed public hearing before the legislative Ordinance 2961 (AN 25-0002) ATTACHMENT B/PAGE 1 OF 14 body at which time the electors of the City may appear and be heard on the question of annexation. The City has provided written notification of this annexation by publishing a notice once each week for two consecutive weeks prior to the day of the hearing in a newspaper of general circulation in the city and posted the notice of public hearing in four public places in the city as required under ORS 222.120(3). The notice was published in the Lake Oswego Review and was posted at the City Hall, the Adult Community Center, Operations Center and the City Library. A notice was also posted on the site on June 11, 2025. The notice contained information about the affected territory,time and place of the public hearing and the means by which any person can obtain a copy of the written report. The annexation notification and review procedures comply with this statute. 3. ORS 222.125-Annexation by Consent of All Owners of Land and Majority of Electors; Proclamation of Annexation. ORS 222.125 states that an election need not be held on the question of annexation within the area proposed to be annexed if all of the owners of land in the territory and not less than 50 percent of the electors, if any, residing in the territory consent in writing to the annexation. The subject property(Tax Lot 02900) is occupied by a single-family dwelling.The owners of the property have consented to this annexation. The proposed annexation complies with this statute. B. Metro Code 1 3.09.030—Notice Requirements A. The notice requirements apply to all boundary change decisions by a reviewing entity except expedited decisions made pursuant to MC 3.09.045.These requirements apply in addition to, and do not supersede applicable requirements of ORS Chapters 197, 198, 221 and 222 and any city or county charter provision on boundary changes. B. Within 45 days after a reviewing entity determines that a petition is complete,the entity shall set a time for deliberations on a boundary change. The reviewing entity shall give notice of its proposed deliberations by mailing notice to all necessary parties', by weatherproof posting of notice in the general vicinity of the affected territory and by publishing notice in a newspaper of general circulation in the affected territory. Notice shall be mailed and posted at least 20 days prior to the date of deliberations. Notice shall be published as required by state law. C. The notice requirements in Subsection B shall: 1. Describe the affected territory in a manner that allows certainty; 2. State the date,time and place where the reviewing entity will consider the boundary change; and 3. State the means by which any person may obtain a copy of the reviewing entity's report on the proposal The City has provided written notification of this annexation to necessary parties (mailed notice), to the general vicinity (posting of the notice of annexation on this property on June 11, 2025), and by publishing notice to the Lake Oswego Review, a newspaper of general circulation in the city.All notices were given at least 20 days prior to the date of the public hearing for annexation as required under MC 30.09.030 B.The notices contained information about the affected territory, the time and place of the public hearing, and the means by which any person can obtain a copy of the written report.The annexation notification and review procedures comply with the Metro code requirements. ' "Necessary party" means "county; city; district whose jurisdictional boundary or adopted urban service area includes any part of the affected territory or who provides any urban service to any portion of the affected territory; Metro; or any other unit of local government." Metro Code 3.09.020(J). Ordinance 2961 (AN 25-0002) ATTACHMENT B/PAGE 2 OF 14 2. 3.09.040- Requirements for Petitions. (A) A petition for a boundary change must contain the following information: 1. The jurisdiction of the reviewing entity to act on the petition; 2. A map and a legal description of the affected territory in the form prescribed by the reviewing entity; 3. For minor boundary changes,the names and mailing addresses of all persons owning property and all electors within the affected territory as shown in the records of the tax assessor and county clerk; and, 4. For boundary changes under ORS 198.855 (3), 198.857, 222.125 or 222.170,statements of consent to the annexation signed by the requisite number of owners or electors. The above information was submitted as required by Metro Code. The property owners have signed the application and petition. The property (TL 02900) is occupied by a single-family dwelling, there are two electors residing on the property. A map and legal description in the form required by the City have been included in the application materials and are on file. The property owners have consented to the annexation on the annexation petition, meeting the consent requirements of ORS 222.125. The annexation petition complies with the Metro code requirements. 3. 3.09.050(B, D) Hearing and Decision Requirements for Decisions Other Than Expedited Decisions 3.09.045(D, E) Expedited Decisions (criteria incorporated for non-expedited decisions by MC 3.09.050(D)) B. Not later than 15 days prior to the date set for a hearing a report shall be available to the public that addresses the criteria identified in subsection (D) and includes the following information: 1.The extent to which urban services are available to serve the affected territory, including any extra territorial extensions of service; 2. Whether the proposed boundary change will result in the withdrawal of the affected territory from the legal boundary of any necessary party; and 3.The proposed effective date of the boundary change. These findings meet subsection B. 3.09.045 Expedited Decision D. To approve a boundary change through an expedited process,the city shall: 1. Find that the change is consistent with expressly applicable provisions in: a. Any applicable urban service agreement adopted pursuant to ORS 195.065 The City has entered into ORS 195.065 agreements with: 1) Lake Grove Park District (Lake Oswego School District) and 2) Lake Grove Fire District. Lake Grove Park District (Lake Oswego School District): The City and the Lake Oswego School District entered into an ORS 195.065 urban service agreement for park services in July, 2003.The School District operates the Lake Grove Swim Park located at 3800 Lakeview Boulevard. The agreement states that the annexation of property by the City within the Lake Grove Park District (which funds the swim park) shall not cause the withdrawal of the property from the district. Lake Grove Fire District: The City and District entered into an ORS 195.065 urban service agreement for fire protection in July, 2003.The agreement states that upon annexation of property within the district by the City,the annexed property shall be withdrawn from the District and the City shall provide fire protection services. This property is within the boundary of the Lake Grove Fire District #57 and the annexation will withdraw this property from that District. Ordinance 2961 (AN 25-0002) ATTACHMENT B/PAGE 3 OF 14 The proposed annexation is consistent with these agreements. b. Any applicable annexation plan adopted pursuant to ORS 195.205. There are no applicable annexation plans adopted pursuant to ORS 195.205 relating to the affected territory. c. Any applicable cooperative planning agreement adopted pursuant to ORS 195.020(2) between the affected entity and a necessary party. There are no ORS 195.020(2) cooperative agreements (which relate to special districts) between the city and a necessary party. d. Any applicable public facility plan adopted pursuant to a statewide planning goal on public facilities and services. Consistent with Statewide Planning Goal 11 (Public Facilities) and the Community Health and Public Safety Chapter of the Comprehensive Plan,the City maintains a Public Facilities Plan (PFP). The PFP consists of master plans for streets, sanitary sewer,water, and stormwater facilities, which provide the basis for long-range planning for both the incorporated and unincorporated lands within Lake Oswego's Urban Services Boundary(USB).The PFP is comprised of the Lake Oswego Transportation System Plan, Wastewater Master Plan, Water System Master Plan, and Clean Streams (Stormwater) Plan, pursuant to Statewide Planning Goals 11 (Public Facilities) and 12 (Transportation). Wastewater Master Plan: Sanitary sewer service is available from an 8-inch collection line located in Lakeview Blvd. along the site frontage that will be able to provide service to this site. There appears to be an existing tee (with plug) located at the center of the site's frontage that was installed for the intent to serve the site. A service lateral will be required to be installed within the right-of-way with a two-way clean-out positioned at the right-of-way line.The on-site work would involve decommissioning the existing septic tank(removal, or filling with sand or gravel).All work would be done by private contractors. A street opening permit will be required from the City for the work within the right-of-way. A System Development Charge (SDC) and plumbing permit will be due upon connection. Using the current Master Fees &Charges, as approved by the City of Lake Oswego effective January 1, 2025, the Sewer SDC for a dwelling using a %-inch water meter is $3,607 (a 1-inch water meter is$6,014). These fees and charges are adjusted at the beginning of each year. Note: Engineering Staff has preliminarily commented by memo on the development standards that would apply for the possible future land division, which will be prepared as a part of the preapplication conference for any land division. The sanitary sewer service that would potentially serve this property could be provided in a manner that is consistent with the Wastewater Master Plan. Water System Master Plan:The property is served by the Rivergrove Water District.There is a Rivergrove Water District water main and a City Water Main located in Lakeview Blvd. along the site frontage.The nearest existing fire hydrant is located at the front of the property adjacent to the east property line. The City of Lake Oswego entered into an agreement with the Rivergrove Water District on February 8, 1984 for water services.The agreement stipulates that the District will continue to serve the property upon annexation if it is capable of delivering a minimum flow of 1500 gallons per minute with a 20 psi residual pressure during periods of peak domestic demand.The District is currently able to meet these demands. If upon further development, this level of service is not provided, then City water may need to be provided. Ordinance 2961 (AN 25-0002) ATTACHMENT B/PAGE 4 OF 14 Water will be provided to this site in a manner that is consistent with the City Water System Master Plan. Clean Streams (Stormwater) Plan:There are no public stormwater systems in the vicinity of this property.After annexation, on-site surface water management requirements will fall under various provisions of the Lake Oswego Code. For example, stormwater runoff from new and/or replaced impervious surface areas shall be managed in accordance with the City's Stormwater Management Code (LOC 38.25), consistent with the Clean Streams (Stormwater) Plan. Transportation (Statewide Planning Goal 12):The City's Transportation System Plan (TSP) implements the multi-modal transportation system that will meet the needs of the city for a 20-year planning horizon. Lakeview Blvd. is a two-lane uncurbed Neighborhood Collector and is under the jurisdiction and permitting authority of the City of Lake Oswego.The nearest mass transit service is Tri-Met bus line 37, which operates between downtown Lake Oswego and the Tigard and Beaverton Transit Centers. Service can be accessed at the intersection of Pilkington and Jean Roads. The City's Transportation System Plan implements the multi-modal transportation system that will meet the needs of the city for a 20-year planning horizon. e. Any applicable comprehensive plan policies Comprehensive Plan Map: This property is currently designated Low Density Residential and R-10 on Clackamas County's Comprehensive Plan and Zoning Maps. It is designated Medium Density Residential, R-10 on the City's Comprehensive Plan Map. As required by LOC 50.01.005.5, upon annexation, a City zoning designation of R-10 will be automatically applied to this property. Comprehensive Plan Policies- Urbanization:The Lake Oswego Comprehensive Plan contains the following relevant language in the Urbanization chapter: Policy A-3: "The Urban Services Boundary(as depicted on the Comprehensive Plan Map) is the area within which the City shall be the eventual provider of the full range of urban services."This property is within the City's Urban Services Boundary.Therefore,the proposed annexation and the withdrawal of this property from the identified districts is consistent with this policy. Policy C-3: "Ensure that annexation of new territory or expansion of Lake Oswego's Urban Services Boundary does not detract from the City's ability to provide services to existing City residents." The approval of this annexation will result in the addition of 0.55 acres to be served by the City. As stated in Section 2(b)(1), the addition of this territory will not detract from the City's ability to provide police and fire protection to existing City residents.As outlined elsewhere in these findings and the incorporated materials, annexation of this property will not affect the City's ability to provide parks and recreation services, sewer or water services. Policy C-4: "Prior to the annexation of non-island properties, ensure urban services are available and adequate to serve this property or will be made available in a timely manner by the City or a developer commensurate with the scale of the proposed development." Availability of urban services serving this property is discussed below: Water: Water is available to serve the subject area, as detailed in subsection D.1.d. Sewer: Sanitary sewer service is available to serve the subject area, as detailed in subsection D.1.d. Stormwater: As detailed in subsection D.1.d,future development will be required to comply with the City standards for stormwater management. Fire Protection: Lake Grove Fire District#57 provides fire protection services to this property by agreement with the City of Lake Oswego.The District has no bonded debt. Upon annexation,this property will be withdrawn from this fire district per a July 2003 urban service agreement and will be Ordinance 2961 (AN 25-0002) ATTACHMENT B/PAGE 5 OF 14 served directly by the City.The Jean Road Fire Station on 4555 Jean Road, located northeast of the site, would be able to respond to emergencies under the eight-minute goal established in the Comprehensive Plan. Police: Upon annexation, this property will be withdrawn from the Clackamas County Enhanced Sheriff's Patrol District and served by the City of Lake Oswego The District has no bonded dept.The Lake Oswego Police Department reviewed the proposal and indicated that it does not have any concerns with serving this property upon annexation. Parks and Open Space:The City has 629 acres of park and open space lands, or 14.6 acres per 1,000 population.The parks nearest to this property are Canal Acres/Bryant Woods Natural Park and Pilkington Park. Canal Acres park is 31 acres and located on the north and south sides of Childs Road. Because this is a natural park,there are no amenities for organized recreation activities. Pilkington Park is located east of the site. It is a 3.7-acre neighborhood park and provides drop-in play fields, a walking path and a picnic table.The City's park system will not be overburdened by any additional population annexed to the City with this application. Lake Grove Park District:The Lake Grove Swim Park, managed by the Lake Oswego School District, and funded by the Lake Grove Park District, is located at 3800 Lakeview Boulevard.The swim park is approximately 1.3 acres in size with restroom, play and swim facilities. Per the 2003 Urban Service Agreement, this property will remain within the Lake Grove Park District following annexation. Library District of Clackamas County: The Library District was formed to act as the fiscal agent for the distribution of property tax revenues raised by the District permanent rate to participating local governments who operate public libraries within Clackamas County. This property will remain within the Library District of Clackamas County following annexation. Transportation -Streets and Mass Transit:Transportation infrastructure and transit service is available to serve the subject area, as detailed in subsection D.1.d, above. Other Urban Services: LOC 50.06.008.3 requires that all development be provided with the following utility services: sanitary sewer, water, sidewalks, pedestrian and bicycle paths,traffic control signs and devices, street lights, streets, and TV cable. These utilities are now in place or can be put in place to serve this property. In the event that future development occurs, an applicant for development is obligated to construct all necessary public facilities to serve their development. Urban Growth Management Agreement The Lake Oswego Comprehensive Plan, Urbanization Chapter, Policy D-3, calls for entering into and maintaining an Urban Growth Management Agreement (UGMA)with Clackamas County for lands within the USB. Similarly, General Urbanization Policy 4.A.4 of the Clackamas County Comprehensive Plan calls for the establishment of Urban Growth Management Areas and Urban Growth Management Agreements to clarify planning responsibilities between the County and cities for areas of mutual interest. Policy 4.A.5 directs the County to establish agreements with cities and service districts to clarify service and infrastructure responsibilities for areas of mutual interest. In furtherance of these policies, the City and County have entered into an UGMA that stipulates a mutual interest in coordinated land use planning, compatible comprehensive plans, and provision of urban services and facilities. This agreement ensures coordination and consistency between the City and County comprehensive plans and outlines responsibilities in providing services and managing growth within the Dual Interest Area. Subsections 6 and 7, provided below, are applicable to annexations. Ordinance 2961 (AN 25-0002) ATTACHMENT B/PAGE 6 OF 14 "6C. City and County Notice and Coordination: The City shall provide notification to the County, and an opportunity to participate, review and comment, at least 35 days prior to the first public hearing on all proposed public facilities plans, legislative changes to the City Comprehensive Plan, or quasi-judicial land use actions adjacent to, or in close proximity to unincorporated areas. The City shall provide notice to the County of private or City initiated annexation requests within five days of the filing of an application with the Portland Metropolitan Boundary Commission." The UGMA specifies that the City notify the County of an annexation request within five days of when it is submitted to the Boundary Commission.There is no longer a Boundary Commission for the Portland Metropolitan area. Staff relies on the notice requirements of Metro Code 3.09.030(B), which requires mailing notice to all necessary parties, posting of a weatherproof notice in the general vicinity of the affected territory and by publishing notice in a newspaper of general circulation in the affected territory. Notice shall be mailed and posted at least 20 days prior to the date of deliberations. The notice required by MC 3.09.030 shall follow the requirements under MC 3.09.030(C), where the notice shall describe the affected territory in a manner that allows certainty, state the date,time and place where the reviewing entity will consider the boundary change; and, state the means by which any person may obtain a copy of the reviewing entity's report on the proposal. Clackamas County is a "necessary" party under the Metro Code definition and was notified on June 11, 2025, 20 days before the public hearing. "7. City Annexations A. The City may undertake annexations in the manner provided for by law within the Dual Interest Area. The City annexation proposals shall include adjacent road right- of-way to property proposed for annexation. The County shall not oppose such annexations. B. Upon annexation, the City shall assume jurisdiction of the County roads and local access roads pursuant to a separate road transfer agreement between the City and county." The City is undertaking this annexation in the manner provided for in the applicable provisions of State Law and Metro Code for the territories that lie within the Dual Interest Area.This annexation is consistent with the City and County comprehensive plans, which have been coordinated in the Dual Interest Area within the regional Urban Growth Boundary(UGB). Statewide Goal 10 and Complete Neighborhoods and Housing City Comprehensive Plan Complete Neighborhoods and Housing Chapter The Complete Neighborhoods and Housing Chapter of the City's Comprehensive Plan implements Statewide Housing Goal 10 and the Portland Metropolitan Housing Rule (OAR 660-007-0000 et seq.), which requires that the City plan for a supply of residentially zoned land with an average allowed density of 10 dwelling units per net acre, and the opportunity to develop a mix of housing types consisting of not less than 50%attached and multifamily dwellings. Compliance with the State rules ensures the opportunity to provide adequate numbers of needed housing units and the efficient use of buildable land within urban growth boundaries,while promoting certainty in the development process to help reduce housing costs. The following Oregon Administrative Rule (OAR) provides standards for compliance with Goal 10 "Housing" pursuant to ORS 197.296 (Buildable Lands) and ORS 197.303 through 197.307 (Needed Housing): Ordinance 2961 (AN 25-0002) ATTACHMENT B/PAGE 7 OF 14 OAR 660-008-0010 Allocation of Buildable Land The mix and density of needed housing is determined in the housing needs projection. Sufficient buildable land shall be designated on the comprehensive plan map to satisfy housing needs by type and density range as determined in the housing needs projection. The local buildable lands inventory must document the amount of buildable land in each residential plan designation. The Lake Oswego Comprehensive Plan, Complete Neighborhoods and Housing Chapter, adopted pursuant to Goal 10 and the Metropolitan Housing Rule, is designed to meet Lake Oswego's housing needs for not less than a twenty-year planning period.The Comprehensive Plan Map designates residential land use designations within the City limits and within Lake Oswego's USB through the year 2035.The Comprehensive Plan Map's residential land use designations are consistent with the City's Housing Needs Analysis 20 Year Housing Need 2023-2043 (HNA 9/21/23), also incorporated herein by reference, and the City of Lake Oswego-Clackamas County UGMA, which specifies future zoning of lands with the USB upon annexation to Lake Oswego.These designations match the corresponding Zoning Map designations such that there is only one zone for each Plan designation, and therefore only one zone that is applied to each lot upon annexation, consistent with the UGMA and in compliance with Goal 10 and the Metropolitan Housing Rule. In the case of the subject application, the applicable Plan Map designation and corresponding Zone Map designation is R-10. The HNA is based on the Comprehensive Plan Map's residential land use designations. Figure 6.3 of the HNA, excerpted below,forecasts a citywide deficit of 642 units (86 acres), including a deficit of 192 units (38 acres) of low-density residential land, to meet the city's housing needs by 2043. FIGURE 6.3: COMPARISON OF FORECASTED FUTURE LAND NEED(2043)WITH AVAILABLE CAPACITY WITHIN CITY LIMITS SUPPLY DEMAND Buildable Land Growth Rate (0.05%j Zone&Plan Inventory- Surplus or(Deficit) Typical Housing Type New Unit Category Housing Unit Capacity Need(20431 Units Avg, Acres Unitsiac. Low-Density Single-family detached; 555 847 (192) 5 (38) Some SF attached&plex Med-Density SF attached; Manufact. 195 444 (249) 8 (31) home; 2-4 plexes High-Density Multi-family apartments 475 677 (201) 12 (17) TOTALS: 1,327 1,968 (642) 7 (86) Sources: MIG,Johnson Economics The proposed annexation would add 0.44 acres of low-density residential land to the City's Buildable Lands inventory(BLI),which would correspondingly reduce the deficit of low-density residential land needed to meet the city's housing needs by 2043 by 0.44 acres.The proposed annexation and designation of City zoning is consistent with the Comprehensive Plan and Map, and will help to meet the City's housing needs as identified by the HNA;therefore,the annexation and zone change comply with Goal 10 and its implementing administrative rules. In this case,the zoning district would provide the opportunity for needed housing as identified in the HNA. The City uses the following approach for findings supporting two types of annexation zone changes: • Option 1 is for annexation-related non-discretionary comprehensive plan and zoning map amendments. Ordinance 2961 (AN 25-0002) ATTACHMENT B/PAGE 8 OF 14 • Option 2 is for annexation-related discretionary comprehensive plan and zoning map amendments. "Non-discretionary" amendments are zoning map amendments applied to an annexed property(or properties)where the applicable zoning designation is prescribed by the City's Comprehensive Plan and a zoning conversion table in the City-County UGMA. "Discretionary" amendments are where more than one zoning designation is applicable, as prescribed by the City's Comprehensive Plan and the City-County UGMA, and the City Council has discretion in applying zoning. The proposed rezoning in AN 25-0001 is non-discretionary because the zoning is prescribed by the City of Lake Oswego Comprehensive Plan and the zoning conversion table in the City of Lake Oswego-Clackamas County UGMA. The City's R-10 zone is proposed to be applied consistent with (matching)the R-10 land use designation in the City's Goal 10/Metro Housing Rule-compliant comprehensive plan.The Metropolitan Housing Rule (OAR 660-007-0035(3)) state that Lake Oswego must provide for an overall density of ten or more dwelling units per net buildable acre.The City's R-10 zone allows for the development of cottage cluster developments of up to 8 dwelling units on properties meeting the minimum lot size of 10,000 sq. ft., corresponding to a density of more than 34 dwelling units per acre. The City's R-10 zone also allows for the development of quadplexes containing 4 dwelling units on properties meeting the minimum lot size, corresponding to a density of more than 17 dwelling units per acre. Further, the City's R-10 zone allows for the development of triplexes containing 3 dwelling units on properties meeting the minimum lot size, corresponding to a density of more than 13 dwelling units per acre.Therefore,the City's R-10 zone meets the requirement to provide for an overall density of ten or more dwelling units per net buildable acre. The City Council does not have discretion to apply a different zone to the subject property unless it is amending the Comprehensive Plan to change the land use designation;therefore,the City does not evaluate proposed zones against its Housing Needs Analysis (HNA).The City simply applies the zoning that is prescribed by the Comprehensive Plan, consistent with the Complete Neighborhoods and Housing (Goal 10) chapter of the Plan. In doing so, the City relies on LOC 50.01.004.5.a, which states that the Lake Oswego Comprehensive Plan Map provides for the future City zoning of all property within the City's Urban Service Boundary. In cases where the Comprehensive Plan Map requires a specific zoning map designation,this designation is automatically imposed on territory when the property is annexed to the City. In conclusion,the proposed R-10 zoning is consistent with the Comprehensive Plan and City-County UGMA for the subject property, and the City Council does not have other zoning options from which to choose in approving AN 25-0001. f. Any applicable concept plan There are no applicable concept plans in this area. 2. Consider whether the boundary change would a. Promote the timely orderly and economic provision of public facilities and services b. Affect the quality and quantity of urban services c. Eliminate or avoid unnecessary duplication of facilities or services The proximity of this property to existing City services will allow this annexation to promote the timely, orderly and economical extension of public facilities and services.This property can readily be served with urban services and facilities. If and when additional development occurs in the area, provision of public facilities and services will occur consistent with the City's adopted public facility master plans, ensuring that it does not adversely affect the quality or quantity of urban services and avoiding unnecessary duplication of Ordinance 2961 (AN 25-0002) ATTACHMENT B/PAGE 9 OF 14 facilities or services. Therefore,this boundary change is consistent with criteria 2.a through 2.c. E. A city may not annex territory that lies outside the UGB except it may annex a lot or parcel that lies partially within and partially outside the UGB. The property to be annexed is located entirely within the Metro UGB. C. Comprehensive Plan-Urbanization Chapter See discussion, above, under Section B.3, regarding Metro Code 3.09.045.D(1)(e), "Comprehensive Plan Policies— Urbanization." D. Comprehensive Plan—Complete Neighborhoods and Housing(Statewide Goal 10) See discussion, above, under Section B.3, regarding Metro Code 3.09.045.D(1)(e), "Comprehensive Plan Policies— Complete Neighborhoods and Housing (Statewide Goal 10)." E. OAR 660-008-0010-Allocation of Buildable Land See discussion, above, under Section B.3, regarding Metro Code 3.09.045.D(1)(e), "Comprehensive Plan Policies— Complete Neighborhoods and Housing (Statewide Goal 10)." F. Resolution 19-59: Policies Discouraging Destruction of Natural Resources and Significant Trees Prior to Annexation Background This annexation policy was adopted by the City Council in 2004 and updated in 2019. It was developed to encourage property owners interested in applying for annexation to the City to preserve and protect natural resources and significant trees on their property.The City has a protection program for hundreds of acres of stream corridors, wetlands and tree groves within the City and its potential annexation area (LOC 50.05.010 and 50.07.004.8). More detailed information can be found in the Findings [Attachment B and Resolution 19-59 (Exhibit E-4)]. Properties that are not yet annexed to the City are under the jurisdiction of a county(Clackamas, Multnomah, or Washington County). Because the City has a higher level of protection for natural resources and trees than county jurisdictions, it is the community's interest to encourage all property owners within the potential annexation area to protect these resources as if the property was annexed to the City. The City can allow the property owner the opportunity to establish that the circumstances of the tree removal would have warranted the issuance of a Type II tree removal permit under the criteria of the Lake Oswego Tree Code. If it is found that a tree removal permit could be issued, Staff could then inform the City Council that the property owner has complied with this policy. The policy states that upon receiving an annexation petition, the City Manager will determine whether a tree of a species and size greater than or equal to that listed below has been removed from the site with the 10-year period. Species Common Name Size ( dbh) Quercus garryana Oregon white oak 08" Pseudotsuga menziesii Douglas-fir 18" Thuja plicata Western red cedar 12" Pinus Pondersosa Ponderosa pine 12" Other Deciduous and horticultural tree species 20" Other evergreen and conifer trees 18" Taxus Brevifolius Western Yew 05-6" Ordinance 2961 (AN 25-0002) ATTACHMENT B/PAGE 10 OF 14 The applicant indicated that six trees were removed from the property prior to the application for annexation. In order to evaluate the tree removal for compliance with the City's annexation policy, staff advised the applicant to submit a Type II County Tree Removal Certification application.This is a program offered by the City to residents in unincorporated Clackamas County within the City's Urban Growth Boundary to receive certification that tree removal complies with the City's annexation policy. It is a voluntary program and is not an actual permit issued by the City. The tree removal certification application (Exhibit E-2) listed the six trees that were removed, which are five Douglas firs (Trees#1-#5) measuring 18" DBH, 18" DBH, 18" DBH, 48" DBH, and 50" DBH, respectively, as well as one 15" DBH red oak(Tree#6).The existing condition of each of the trees (prior to removal) was not available. The 15-inch dimeter Oregon Red Oak Tree is below the minimum threshold size for"other deciduous trees" (see table above). Staff found that the Policies Discouraging Destruction of Natural Resources and Significant Trees Prior to Annexation (Resolution 19-59) apply to the other five Douglas fir trees. If the City determines that the property owner has failed to establish that the criteria for the tree removal permit would have been met, the City has the option to decline the annexation unless the property owner mitigates the loss of the trees in accordance with the provisions under Resolution 19-59(4)(a-g). Should the Council choose this option, the mitigation steps under this section are summarized below: a. Plant mitigation trees at a 3:1 ratio of the same or similar species that are a minimum of 3-inch caliper at the time of planting. Mitigation trees must be planted according to the specification in the "City Tree Planting and Maintenance Guidelines" and can be located: I. Within the required setback of the future zone of the property. II. If the City determines that there is insufficient space on the property to accommodate all of the required mitigation trees, the property owner shall pay the appropriate fee as established in the Lake Oswego Master Fees and Charges into the City of Lake Oswego Tree Fund. b. Successfully maintain mitigation trees for at least 3 years prior to annexation (and replace any trees that die); and, c. Commit to maintaining the mitigation trees for at two years following annexation; and d. Pay a restoration fee into the City of Lake Oswego Tree Fund in the amount as established by the Tree Code Fees in the City's Master Fees and Charges. e. The property owner shall execute a maintenance agreement with the City to ensure the trees survive for a two-year period after the effective date of the annexation. f. The property owner shall record a restrictive covenant against the City requiring the mitigation to be maintained for at least two years following the effective date of the annexation in a manner consistent with this policy. g. The property owner shall grant and record an easement in the form approved by the City Attorney allowing the city access to and use of the property for purposes of restoring and maintaining the required mitigation during the two-year period. h. The property owner shall provide a bond or cash deposit or other security in a sum that is sufficient to cover the cost of the restoration and maintenance of the required mitigation during the two-year period. Analysis The analysis for the Type II county tree removal certification for unincorporated properties was conducted by staff for this property on June 4 (Exhibit E-3). It is important to note that the City's Unincorporated Property certification process is typically completed prior to any tree removal and does not constitute a full evaluation or approval of an application or permit for tree removal under the City of Lake Oswego's Tree Code provisions. LOC 55.02.080(1): Reason for Removal. Criterion 1 determines what the reason for removal is: development, landscape plan, or an outgrown landscape area. Ordinance 2961 (AN 25-0002) ATTACHMENT B/PAGE 11 OF 14 Staff Comment: The application states that the reason for removal is "Landscape Plan/Improvement."The application listed six trees that were removed, described as five Douglas firs(Trees#1-#5) measuring 18" DBH, 18" DBH, 18" DBH,48" DBH, and 50" DBH, respectively, as well as one 15" DBH red oak (Tree#6).The existing condition of each of the trees (prior to removal) was not available.The site plan included with the submitted materials appears to illustrate the existing development for the subject property, with notes demarcating where the removals were located. Under Type II tree removal regulations, removal for landscaping purposes includes tree removal, along with additional elements, such as landscaping plants,walkways, patios, or other landscape features.The justification provided for Criterion 1 were the statements: "Encroached on driveway to shop"for Trees#1-#5 and "New Driveway to New Garage"for Tree#6. These reasons given would more accurately fit into "Outgrown Landscape Area"for Trees#1-#5, and "Development" for Tree#6,therefore that is the reasoning staff used to evaluate if these trees would have met Criterion 1. Based on the information provided, it is uncertain whether Trees#1 -#5 would have met the reason for removal under"Outgrown Landscape Area" because there is no evidence to what extent the encroachment was for all five of the trees along the existing driveway.There is evidence of some driveway damage in a Google street view image from 2019 but staff was unable to verify that all five of the trees were damaging the driveway to the extent that removal was necessary. Staff finds that the removal of Tree#6 would have met Criterion 1,for development, based on the new driveway that was installed. Due to the lack of specific information regarding the scope of damage to the existing driveway and whether the trees caused the damage, staff cannot determine whether the removal of Trees#1-#5 would meet Criterion 1. LOC 55.02.080(2): Erosion,Surface Water,and Windbreak Impacts. Criterion 2 determines where there is a significant negative impact on erosion, soil stability,flow of surface waters, protection of adjacent trees, or existing windbreaks from the proposed removals. Staff Comment:The applicant did not indicate any impacts, but merely stated: "There are additional trees nearby at neighbors [sic] property to continue habitat environment" in the explanation portion of the question. Using LOMap, staff was able to determine that the property is generally flat and contains no surface waters,with no indication of soil stability concerns related to removal of trees. Following a site visit,the City's consulting arborist assessed the potential impacts of tree removals on adjacent trees and existing windbreaks.The evaluation found that the recent removals of the five Douglas-fir trees along the western property line has not resulted in significant negative impacts to the protection or health of adjacent trees.The neighboring property is heavily treed with mature Douglas-firs and those closest to the removed trees have long live crowns. Based on their crown structure, it doesn't appear that the removed trees were close enough to compete or provide shelter.The red oak was a stand-alone tree, so there are no impacts to other trees from that recent removal. Based on the materials available at the time of this analysis, and the on-site evaluation of the remaining trees on site, staff can determine that the removal of all six trees would have met Criterion 2. LOC 55.02.080(3): Neighborhood Character or Aesthetics Impacts. Criterion 3 addresses whether the tree removal would cause significant negative impacts to the neighborhood character and aesthetics by the removal of(a) a "significant tree," (b) altering the distinctive features of the neighborhood skyline as viewed from all public streets and properties within 300 ft. of the property, (c) removal of a visual screen between differing zones, (d) removal of street trees, or(e) removal of greater than 50%of a stand. If the trees are individually found to be significant, which is defined in the code, or found to meet the other sub-criterion, then the Exceptions portion of Criterion 3 must be met to be approved for removal. Staff Comment: Staff finds that although the five Douglas fir trees are all over 15" in diameter and non-invasive, there is no way to determine if all of the trees met the "healthy" (which includes trees in either fair or good condition) portion of the definition of"significant."The applicant identified Trees#1-#3 and Tree#6 as being in fair condition, and Trees#4 and #5 as being in good condition. However,this cannot be independently verified, as the trees have already been removed.Therefore, staff must assume they were all in at least fair condition and then also determine whether any of the trees meet the remaining criteria for significance—specifically, whether they are unique in size, species, or character within the context of the neighborhood. Following a site visit and a review of Ordinance 2961 (AN 25-0002) ATTACHMENT B/PAGE 12 OF 14 historical Google Street View imagery, staff observed that the removed trees appeared to have been of average size compared to other trees in the neighborhood (Douglas-fir trees are not of a unique species in this neighborhood, nor are oaks) and that the site is similar in character to others in the neighborhood.The surrounding neighborhood is dominated by mature Douglas-firs of similar size and many of the surrounding properties have smaller ornamental trees, similar to the red oak. Although all six trees were located on the perimeter of the lot,they did not appear to contribute to a defining feature of the neighborhood. Removal of these trees would not constitute removal of the last tree on the site; the remaining tree is listed as an 18" DBH walnut. Based on this assessment, it is reasonably possible that staff would likely not have deemed any of the six trees a "significant tree" on an individual basis per Criterion 3(a). Per Criterion 3(b), potential alterations to the neighborhood skyline or its distinctive visual character can only be evaluated by comparing current site photos with historical imagery from surrounding streets and properties. After reviewing the current condition of the site alongside Google street view images from prior years (Exhibit 2, pgs. 2-4), staff does not find that the removal of these trees resulted in a significant negative impact on the neighborhood skyline or overall aesthetics.There are groups of mature firs throughout the skyline in all directions and the neighboring site to the west is so dense with firs, removal of the on-site trees did not have a significant negative impact on the neighborhood skyline. In addition,the trees were not providing screening between dissimilar zones per Criterion 3(c),they were not street trees per Criterion 3(d), and the removal of the six trees does not appear to be greater than 50%of a stand of trees per Criterion 3(e). Staff has determined that this application would have met Criterion 3,without having to address the Exception criterion. Conclusion Overall, staff finds that the applicable Type II criteria would have been met for Criteria 2 and 3. However, additional information is necessary to determine compliance with Criterion 1, specifically regarding the justification for tree removal with the existing driveway repair on the west side of the property.That said, since the trees were not deemed significant, it could have been reasonably feasible to meet the requirements for Criterion 1. If the Council decides to approve the annexation request, staff recommends that the applicant be required to mitigate the removal of the five trees by replanting at a minimum 1:1 ratio with a mix of native species of medium to large stature to complement the existing Douglas-firs and oaks on the site. All mitigation trees should be carefully planted to avoid conflicts with future development on the site. The Council has the following decision options: 1. Annex the property and require no mitigation. 2. Annex the property and require mitigation normally required in the Type II tree removal application by replanting at a minimum 1:1 ratio with a mix of native species prior to the final building inspection for any dwelling on the site.All mitigation trees shall be carefully planted to avoid conflicts with future development on the site. 3. Delay annexation of the property for a period of three years and require replacement of the trees at a 3:1 ratio in accordance with the provisions under Resolution 19-59(4)(a-g).2 CONCLUSION: Based on the criteria and findings set forth above,the City Council concludes that AN 25-0002 can be made to comply with all applicable criteria and the annexation should be approved. Staff recommends the Council require mitigation as a condition of approval under Option 2, above. 2 Note that the annexation policy should not be construed as preventing the Council from exercising its full discretionary authority in granting or denying petitions for annexation as otherwise permitted by Oregon law. Ordinance 2961 (AN 25-0002) ATTACHMENT B/PAGE 13 OF 14 EFFECTIVE DATE: A. Effective Date of Annexation Ordinance. Pursuant to Lake Oswego City Charter, Section 35.C., the ordinance shall be effective on the 30th day after its enactment. B. Effective Date of Annexation. Following the filing of the annexation records with the Secretary of State as required by ORS 222.177,this annexation shall be effective upon the later of: 1. the 30th day following the date of adoption of this ordinance; or 2. the date of filing of the annexation records with the Secretary of State; provided however that pursuant to ORS 222.040(2), if the effective date of the annexation as established above is a date that is within 90 days of a biennial primary or general election or after the deadline for filing notice of election before any other election held by any City, district or other municipal corporation involved in the area to be annexed, the annexation shall become effective on the day after the election. Ordinance 2961 (AN 25-0002) ATTACHMENT B/PAGE 14 OF 14 ATTACHMENT 2 (ORDINANCE 2934) LU 23-0023 , A I `III16, 04 • I _ - • • • I I ill Source:Lake Oswego Chamber of Commerce CITY OF LAKE OSWEGO, OR HOUSING NEEDS ANALYSIS (OREGON STATEWIDE PLANNING GOAL 10) 20-YEAR HOUSING NEED 2023 - 2043 September 21, 2023 it I JOH NSON ECONOMICS AN 25-0002 EXHIBIT E-1/PAGE 1 OF 55 Acknowledgments Johnson Economics prepared this report for the City of Lake Oswego.Johnson Economics and the City of Lake Oswego thank the many people who helped to develop this document. City Staff Erik Olson, Long Range Planning Manager Jessica Numanoglu, Interim Community Development Director Lake Oswego Housing Task Force Kasey Adler,Transportation Advisory Board Yoko Kinoshita, Resident Kyrsten Baumgart, Housing producer Rebecca Lane, Resident Phil Bertrand, Housing producer Rosalie Nowalk, Resident Joseph M. Buck, City Council Liaison John E. Pauley, Resident Thea Croman, DLCD Bruce Poinsette, Development Review Commission Kelly Reid, DLCD Phillip Stewart, Planning Commission Liaison Douglas Corder, 50+Advisory Board David Tangvald, Housing producer Pat Ginn, Resident Kimvi To, D.E.I. Advisory Board Diana Howell, Resident John Turchi, Resident Cara Kao-Young, Resident Sarah Walker, Housing producer Betty Jung, Resident Consultants Brendan Buckley,Johnson Economics Andrew Parish, MIG Matt Hastie, MIG This report was prepared in accordance with the requirements of OAR 660 Division 8:Interpretation of Goal 10 Housing. This project is funded by the State of Oregon through the Department of Land Conservation and Development. The contents of this document do not necessarily reflect the views or policies of the State of Oregon. City of Lake Oswego Johnson Economics 380 A Ave. 621 SW Alder Street Lake Oswego, OR 97034 Suite 605 (503) 635-0270 Portland, OR 97205 (503) 295-7832 CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 1 AN 25-0002 EXHIBIT E-1/PAGE 2 OF 55 TABLE OF CONTENTS I. INTRODUCTION 3 II. CITY OF LAKE OSWEGO DEMOGRAPHIC PROFILE 4 A. POPULATION GROWTH 5 B. HOUSEHOLD GROWTH &SIZE 5 C. FAMILY HOUSEHOLDS 5 D. GROUP QUARTERS POPULATION 6 E. HOUSING UNITS 6 F. AGE TRENDS 6 G. DIVERSITY TRENDS 8 H. PEOPLE WITH A DISABILITY 10 I. INCOME TRENDS 11 J. POVERTY STATISTICS 12 K. EMPLOYMENT LOCATION TRENDS 12 III. CURRENT HOUSING CONDITIONS 14 A. HOUSING TENURE 14 B. HOUSING STOCK 14 C. NUMBER OF BEDROOMS 14 D. UNIT TYPES BY TENURE 15 E. AGE AND CONDITION OF HOUSING STOCK 16 F. HOUSING COSTS VS. LOCAL INCOMES 17 G. PUBLICLY ASSISTED HOUSING 18 IV. CURRENT HOUSING NEEDS(CITY OF LAKE OSWEGO) 20 V. FUTURE HOUSING NEEDS-2043(CITY OF LAKE OSWEGO) 26 VI. RECONCILIATION OF FUTURE NEED(2043)&LAND SUPPLY 32 APPENDIX A: BUILDABLE LAND INVENTORY SUMMARY 35 CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 2 AN 25-0002 EXHIBIT E-1/PAGE 3 OF 55 I. INTRODUCTION This analysis outlines a forecast of housing need within the City of Lake Oswego. Housing need and resulting land need are forecast to 2043,consistent with the 20-year need assessment requirements of Oregon Revised Statutes.' This report presents a housing need analysis (presented in number and types of housing units) and a residential land need analysis, based on those projections. The primary data sources used in generating this forecast were: ■ Portland State University Population Research Center ■ Metro ■ U.S. Census ■ Claritas2 ■ Oregon Employment Department ■ City of Lake Oswego ■ Clackamas County ■ Other sources are identified as appropriate. This analysis relies heavily on Census data from both the 2020 Decennial Census and the American Community Survey (ACS).All Census data feature some margin of error but remain the best source of data available on many demographic and housing subjects. One limitation of the 2020 Census is the release schedule of data sets,which takes place over several years following the year of the Census. Thus far, data has been released on: Population; Race; Latino ethnicity; number of Households; number of Housing Units; and Group Quarters population. While these are key baseline data sets utilized in this analysis, any additional nuance on demographics and housing from the 2020 Census are not yet available,with the next data release expected later in 2023. Despite the limitations,the 2020 Census is relied upon here as the best available source for the key indicators listed above in Lake Oswego,as of 2023. For more detailed data sets on demographics and housing,this analysis relies on the American Community Survey (ACS), which features a higher margin of error on all tables than the Decennial Census. The ACS is a survey of a representative sample of households which the Census uses to make estimates generalized to the population of the relevant geography.This analysis relies whenever possible on the most recent 2021 ACS 5-year estimates.The 5-year estimates have a lower margin of error than the ACS 1-year estimates. 1 ORS 197.628;OAR 660-025 2 Claritas is a third-party company providing data on demographics and market segmentation.It licenses data from the Nielson Company which conducts direct market research including surveying of households across the nation. Nielson combines proprietary data with data from the U.S.Census,Postal Service,and other federal sources,as well as local-level sources such as Equifax,Vallassis and the National Association of Realtors. Projections of future growth by demographic segments are based on the continuation of long-term and emergent demographic trends identified through the above sources. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 3 AN 25-0002 EXHIBIT E-1/PAGE 4 OF 55 II. CITY OF LAKE OSWEGO DEMOGRAPHIC PROFILE SUMMARY The following table (Figure 2.1) presents a profile of City of Lake Oswego demographics from the 2000 and 2010 Census. It also reflects the estimated population of this area as of 2023 from PSU estimates,forecasted forward to 2023 using the estimated growth rate between 2010 and 2022. ■ Lake Oswego is a City of over 41,500 people located in Clackamas County in the southern-central area of the Portland metropolitan region. ■ Based on estimated population, Lake Oswego is the 13th largest city in the state by population, similar in size to Oregon City regionally,or Keizer and Grants Pass statewide.Lake Oswego has about 1.5 times the population of neighboring West Linn or Tualatin,and about 75%of the population of Tigard. ■ Lake Oswego has experienced modest growth, growing roughly 18% since 2000, or less than 1% per year. In contrast, Clackamas County and the state experienced population growth of 26% and 25% respectively. (US Census and PSU Population Research Center) FIGURE 2.1:LAKE OSWEGO DEMOGRAPHIC PROFILE POPULATION, HOUSEHOLDS, FAMILIES,AND YEAR-ROUND HOUSING UNITS 2000 2010 Growth 2023 Growth (Census) (Census) 00-10 (PSU) 10-23 Population1 35,278 36,619 4% 41,550 13% Households2 14,824 15,893 7% 17,481 10% Families3 9,775 10,079 3% 11,842 17% Housing Units4 15,668 16,995 8% 18,345 8% Group Quarters Populations 163 222 36% 329 48% Household Size(non-group) 2.37 2.29 -3% 2.36 3% Avg.Family Size 2.93 2.88 -2% 2.97 3% PER CAPITA AND MEDIAN HOUSEHOLD INCOME 2000 2010 Growth 2023 Growth (Census) (Census) 00-10 (Proj.) 10-23 Per Capita ($) $42,166 $53,652 27% $74,600 39% Median HH($) $71,597 $84,186 18% $123,300 46% SOURCE:Census,Metro Consolidated Forecast,PSU Population Research Center,and Johnson Economics Census Tables: DP-1(2000,2010);DP-3(2000);S1901;519301 1 From Census,PSU Population Research Center,growth rate 2010-2022 extended to 2023 2 2023 Households=(2023 population-Group Quarters Population)/2023 HH Size 3 Ratio of2023 Families to total HH is based on 2021 ACS5-year Estimates 4 2023 housing units are the'20 Census total plus new units permitted from'20 through'22(source: Census,City) 5 2023 Group Quarters Population based on 5-year ACS estimates 2017-2021 ■ Lake Oswego was home to an estimated 17,500 households in 2023, an increase of over 2,650 households since 2000. The percentage of families has increased slightly from 66% of all households in 2000 to 68% in 2023. The city has a similar share of family households to Clackamas County (69%) but higher than the state (63%).Average household size is estimated to have remained fairly stable during this period. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 4 AN 25-0002 EXHIBIT E-1/PAGE 5 OF 55 • Lake Oswego's estimated average household size is 2.4 persons. This is lower than the Clackamas County average of 2.6 and similar to the statewide average of 2.44. A. POPULATION GROWTH Since 2000, Lake Oswego has grown by nearly 6,300 people within the UGB, or 18% in 23 years. This was lower than the countywide rate of growth. Clackamas County as a whole has grown an estimated 26%since 2000, while other cities in the county such as West Linn and Oregon City grew by 23% and 46% respectively. Portland's population grew by an estimated 19%during this period (PSU Population Research Center). B. HOUSEHOLD GROWTH&SIZE As of 2023,the city has an estimated 17,500 households. Since 2000, Lake Oswego has added an estimated 2,650 households.This is an average of roughly 115 households annually during this period. The growth since 2000 has paced the growth in new housing units,which have been permitted at the rate of roughly 117 units per year. There has been a general trend in Oregon and nationwide towards declining household size as birth rates have fallen, more people have chosen to live alone, and the Baby Boomers have become "empty nesters." While this trend of diminishing household size is expected to continue nationwide,there are limits to how far the average can fall. Lake Oswego's average household size of 2.4 people,with 68%family households,is smaller than Clackamas County (2.6 persons; 69%families). Figure 2.2 shows the share of households by the number of people for renter and owner households in 2021(latest data available),according to the Census.Renter households are more likely to be one-person households,with 75% having two or fewer residents. Owner households are more likely to have two or more persons. FIGURE 2.2:NUMBER OF PEOPLE PER HOUSEHOLD,CITY OF LAKE OSWEGO 0 7-or-more 0% Renter 6 person 1% Owner 2% 5-person 3% 4% in 2° 4-person 11% 18% a = 3-person 11/0 0 19/0 2-person 35/ o 38/o 1-person 40% 20% 0% 5% 10% 15% 20% 25% 30% 35% 40% Share of Households SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables: B25009(2021 ACS 5-yr Estimates) C. FAMILY HOUSEHOLDS As of the 2021 ACS,68%of Lake Oswego households were family households,up from 63.4%of households in 2010. The total number of family households in Lake Oswego is estimated to have grown by over 2,060 since 2000.The Census defines family households as two or more persons, related by marriage, birth or adoption and living together. In 2023,family households in Lake Oswego have an estimated average size of 2.97 people. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 5 AN 25-0002 EXHIBIT E-1/PAGE 6 OF 55 D. GROUP QUARTERS POPULATION As of the 2020 Census, the City of Lake Oswego had an estimated group quarters population of 0.8%of the total population, or 329 persons. Group quarters include such shared housing situations as nursing homes, prisons, dorms, group residences, military housing, or shelters. For the purposes of this analysis, these residents are removed from the estimated population total, before determining the number of other types of housing that are needed for non-group households.In Lake Oswego,nearly 90%of the group quarters population is found in assisted living facilities. E. HOUSING UNITS Data from the City of Lake Oswego and the US Census indicate that the city added roughly 2,680 new housing units since 2000, representing 17% growth in the housing stock. This number of new units is slightly higher than the growth in new households estimated during the same period (2,660), indicating that housing growth has kept pace with growing need. As of 2023, the city had an estimated housing stock of roughly 18,350 units for its 17,500 estimated households. This translates to an estimated average vacancy rate of 4.7%. Residential Permits:An average of 117 units have been permitted annually since 2000,with 24%being multi-family units. Most multi-family housing in Lake Oswego has been built in the last decade. FIGURE 2.3:HISTORIC AND PROJECTED RESIDENTIAL PERMITS,CITY OF LAKE OSWEGO Housing Permits •Multi-Family 350 •Single Family 300 250 200 150 100 ■ 50 I I I I I I I ' I I I I I I I Hi . 0 00 O1 liii Oco Orb O 'L yR tico ti� LO y'L ,LO .y0 ,LO ,LO ,LO .y0 ,LO ,LO ,LO .y0 ,LO ,LO SOURCE:HUD F. AGE TRENDS The following figure shows the share of the population falling in different age cohorts between the 2000 Census and the most recent 5-year American Community Survey estimates. As the chart shows,there is a general trend for middle age and young cohorts to fall as share of total population, while older cohorts have grown in share.This is in keeping with the national trend caused by the aging of the Baby Boom generation. Overall, Lake Oswego has an older population than the county,with a similar share of children, but a smaller share of those aged 25 to 44 years. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 6 AN 25-0002 EXHIBIT E-1/PAGE 7 OF 55 FIGURE 2.4:AGE COHORT TRENDS,2000-2021 25% Lake Oswego(2000) o N Lake Oswego(2021) 20% N o o Clack.Co.(2021) ti Ln v o � o 15% - r ,, ti tsilCV o c-I o e-1 c ,-IO o e-1 O r-I %-1 O c 10% `" al I c o i to5% � N N c- 0% 1ll ''' '''' y�Ae' ��-orate ��Ae' ��aaath h��eac5 ��eate ��eat5 ��aaach A'. aec �o �o �o �o �o ,so �0 cb SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables:QT-P1(2000);S0101(2021 ACS 5-yr Estimates) • The cohorts which grew the most in share during this period were those aged 55 to 74 years.Still,an estimated 79%of the population is under 65 years of age. • In the 2021 ACS, the local median age was an estimated 46 years, compared to 40 years in Oregon, and 39 years nationally. Figure 2.5 presents the share of households with children, and the share of population over 65 years for comparison. Compared to state and national averages, Lake Oswego has a similar share of households with children. However,at 21%,the share of population over 65 is higher than the state and national figures. FIGURE 2.5:SHARE OF HOUSEHOLDS WITH CHILDREN POPULATION OVER 65 YEARS(LAKE OSWEGO) Share of Households with Children Share of Population Over 65 Years 40% 40% 31% 31% 30% 28% 30% 21% 20% 20% 18% 16% 10% 10% 0% 0% Lake Oswego Oregon USA Lake Oswego Oregon USA SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables: B11005;S0101(2021 ACS 5-yr Estimates) CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 7 AN 25-0002 EXHIBIT E-1/PAGE 8 OF 55 G. DIVERSITY TRENDS The following figure presents the distribution of Lake Oswego's population by race and Hispanic ethnicity. The community grew more diverse between the 2010 and 2020 Census, with the population's white (non-Hispanic) share falling from 90%to 80%. The Asian population makes up 8% of the population, and the Hispanic or Latino population makes up 5%of residents.9%of residents identify as two or more races. FIGURE 2.6:RACIAL AND ETHNIC DIVERSITY,2010—2020(LAKE OSWEGO) 100% o Share of Population by Race o Lake Oswego(2010) co 80% •Lake Oswego(2020) 60% I •Clackamas Co. 40% Oregon 20% o o oo o e rn L. Hi o o HiME -. a, c v c a, v o coLE o c > coc m O c 47, w• (o Z Q CO C (o cc a, J a, U Q l.1 CO N a, O i ` ▪ Q U H 3Ii 1= ~ SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables:P1,P2(2010,2020) In comparison,the share of the population identifying as white is also 80%in Clackamas County,and 75%statewide. The share of Lake Oswego's population identifying as Hispanic or Latino is 5% of the population, indicating over 2,100 people as of the 2020 Census.This is lower than the 14%share statewide. FIGURE 2.7:AVERAGE NUMBER OF PERSONS PER HOUSEHOLD BY RACIAL AND ETHNIC CATEGORY(OREGON) Average Household Size by Race & Ethnicity(Oregon) All Households 2.5 White alone 2.4 Black or African American alone 2.5 American Indian and Alaska Native alone 2.8 Asian alone 2.8 Native Hawaiian and Pacific Islander 3.5 Hispanic or Latino 3.7 Some Other Race alone 4.0 Two or more races: 2.7 0.0 1.0 2.0 3.0 4.0 5.0 Avg.Number of Persons per Household SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables:P17A-H,(State of Oregon,2020) *This data is presented on a statewide basis using the most recent Census data available(2010).The data for the Lake Oswego or Clackamas County geographies feature unusually large margins of error due to the small sample size. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 8 AN 25-0002 EXHIBIT E-1/PAGE 9 OF 55 Minority households tend to have a larger average household size than the average of all households (Figure 2.7). (This figure presents statewide data due to the high margin of error for local data in this data set.) Households identifying as"white alone" have the lowest average household size(2.4 persons),while all other racial and ethnic categories have a larger estimated average household size. Some of the non-white categories, such as black households and those of two or more races,are still similar in average size(2.5 and 2.7 persons,respectively).Those with the largest estimated households are Latinos, Pacific Islanders,and those identifying as"some other race." Larger average household size indicates a need for units with more bedrooms on average among many minority households. Each household has its own housing needs in terms of the number of bedrooms and other factors, based on the specific makeup of each family. Based on voluntary guidelines provided by HUD for public housing programs, households of between 2 persons generally need a one-bedroom unit, households with 3 persons might need two bedrooms, and those with 4 persons might need three bedrooms. Larger households may need four or more bedrooms,which are typically found in single detached homes. Based on statewide data, many racial and ethnic minorities are currently less likely to own the homes they occupy (Figure 2.8)—meaning that they tend to occupy rental units.These communities face systemic obstacles to home ownership,including lower generational wealth, less access to capital and financing,and a history of discrimination in lending and geography(e.g.,redlining).While the country and state try to address explicit discrimination through the law, the legacy of these barriers continues to hamper home ownership for many minority households. Going forward, many communities would benefit from more entry-level homebuying opportunities for these households, as well as additional rental housing for those who are still unready or unable to buy a home. FIGURE 2.8:HOME OWNERSHIP RATE BY RACIAL AND ETHNIC CATEGORY(OREGON) Owner-Occupied Households by Race& Ethnicity(Oregon) All Households 63% White alone 65% Black or African American alone 36% American Indian and Alaska Native alone 48% Asian alone 63% Native Hawaiian and Pacific Islander 32% Hispanic or Latino 45% Some Other Race alone 43% Two or more races: 50% 0% 20% 40% 60% 80% 100% Ownership Rate SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables:B25003A-H,(State of Oregon,2021 ACS 5-year) *This data is presented on a statewide basis using the most recent Census data available(2020).The data for the Lake Oswego or Clackamas County geographies feature larger margins of error due to small sample size in some of the racial categories. Populations from some racial and ethnic minority groups also have lower average incomes and are more likely to have income below the official poverty level when compared to the total population. Such income levels are correlated with a greater share of renter households and impact the types of housing these populations consume, as discussed in further detail below. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 9 AN 25-0002 EXHIBIT E-1/PAGE 10 OF 55 H. PEOPLE WITH A DISABILITY An estimated 8%of the population of Lake Oswego, or 3,140 people, report having some form of disability.This is lower than the statewide rate of 14%and the Clackamas County rate of 12%of people with a disability.(The Census reports these statistics for the"non-institutionalized population.") The following figure presents Census estimates of the types of disability reported among Lake Oswego residents. Any type of disability impacts the type of housing that may be appropriate for a resident,but those with the greatest impact on needed unit type are generally an ambulatory,self-care, or independent living disability.Those with an ambulatory disability often need units with expanded access for a wheelchair,walker,or scooter.Those with self- care or independent living disabilities may require additional safety precautions around the home to protect a resident who cannot always be directly monitored. FIGURE 2.9:LAKE OSWEGO SHARE OF THE POPULATION WITH DISABILITY,BY TYPE Share of Population Population with a disability 7.8% Hearing difficulty 2.4% Vision difficulty 1.7% Cognitive difficulty 2.7% Ambulatory difficulty 2.9% Self-care difficulty 1.1% Independent living difficulty 2.3% 0% 2% 4% 6% 8% 10% SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables:DP02,(2020 ACS 5-year) FIGURE 2.10:LAKE OSWEGO POPULATION WITH A DISABILITY,BY AGE Share of Population with Disability by Age Total population 7.8% Under 18 years . 2.0% 18 to 64 years NM 5.8% 65 years and over 19.5% 0% 5% 10% 15% 20% 25% SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables:DP02,(2020 ACS 5-year) CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 10 AN 25-0002 EXHIBIT E-1/PAGE 11 OF 55 Older residents are more likely to report a disability, including nearly 20%of those over 65 years.Of those aged 18 to 64 years, 6% of the local population reports a disability, and 2% of children. Because Census data tends to undercount the homeless and other vulnerable populations, there are likely more disabled residents in Lake Oswego than reflected in these data. I. INCOME TRENDS The following figure presents data on Lake Oswego's income trends. FIGURE 2.11: INCOME TRENDS,2000—2023(LAKE OSWEGO) PER CAPITA AND MEDIAN HOUSEHOLD INCOME 2000 2010 Growth 2023 Growth (Census) (Census) 00-10 (Proj.) 10-23 Per Capita ($) $42,166 $53,652 27% $74,600 39% Median HH ($) $71,597 $84,186 18% $123,300 46% SOURCE:Census,Metro Consolidated Forecast,PSU Population Research Center,and Johnson Economics Census Tables: DP-1(2000,2010);DP-3(2000);S1901;S19301 ■ Lake Oswego's estimated median household income was$123,000 in 2023.This is nearly 40%higher than the Clackamas County median of$88,500, and 75%higher than the statewide median of$70,000. ■ Lake Oswego's per capita income is roughly$75,000. ■ Median income has grown an estimated 46% between 2010 and 2023, in real dollars. Inflation was an estimated 34%over this period,so the local median income has well exceeded inflation.This is not the case in many regions and nationally,where income growth has not kept pace with inflation. FIGURE 2.12: HOUSEHOLD INCOME COHORTS,2021(LAKE OSWEGO) Household Income Groups $200,000 or more 27% $150,000 to$199,999 12% $100,000 to$149,999 20% $75,000 to$99,999 11% $50,000 to$74,999 11% $35,000 to$49,999 6% $25,000 to$34,999 4% $15,000 to$24,999 4% $10,000 to$14,999 2% Less than$10,000 3% 0% 5% 10% 15% 20% 25% 30% SOURCE: US Census,Census Tables:S1901(2021 ACS 5-yr Est.) Figure 2.12 presents the estimated distribution of households by income as of 2021. The largest income cohorts are those households earning between $100k and $200k per year (32%), followed by households earning over $200k(27%). ■ 41%of households earn less than$100,000. ■ Roughly 19%of households earn less than$50k per year. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 11 AN 25-0002 EXHIBIT E-1/PAGE 12 OF 55 J. POVERTY STATISTICS According to the US Census,the official poverty rate in Lake Oswego is an estimated 4%over the most recent period reported (2021 5-year estimates).3 This is roughly 1,700 individuals in Lake Oswego. In comparison, the official poverty rate in Clackamas County is 9%,and at the state level is 17%. In the 2017-21 period: • The Lake Oswego poverty rate is low among all groups, but highest among those 65 years and older at 5%.The rate is 4%among those 18 to 64 years of age.The estimated rate is lowest for children at 3%. • For those without a high school diploma,the poverty rate is 11%. • Among those who are employed the poverty rate is 2%,while it is 7%for those who are unemployed. Information on affordable housing is presented in Section II F of this report. FIGURE 2.13:POVERTY STATUS BY CATEGORY(LAKE OSWEGO) Poverty Level of Subgroups Under 18 years 3% 18 to 64 years 4% 65 years and over 5% Employed 2% Unemployed 7% Less than high school 11% High school 10% Some college,associate's 7% Bachelor's degree or higher -9 3% 0% 5% 10% 15% 20% SOURCE: US Census Census Tables: S1701(2021 ACS 5-yr Est.) K. EMPLOYMENT LOCATION TRENDS This section provides an overview of employment and industry trends in Lake Oswego that are related to housing. Commuting Patterns: The following figure shows the inflow and outflow of commuters to Lake Oswego according to the Census Employment Dynamics Database.These figures reflect"covered employment" as of 2019,the most recent year available. Covered employment refers to those jobs where the employee is covered by federal unemployment insurance. This category does not include many contract employees and self-employed and therefore is not a complete picture of local employment.The figure discussed here is best understood as indicators of the general pattern of commuting and not exact figures. As of 2017,the most recent year available,the Census estimated there were roughly 23,100 covered employment jobs located in Lake Oswego. Of these, an estimated 2,250 or 10%, are held by local residents,while nearly 21,000 employees commute into the city from elsewhere.This general pattern is fairly common among many communities Census Tables:S1701(2018 ACS 5-yr Estimates);Methodology The Census Bureau uses a set of income thresholds that vary by family size and composition to determine who is in poverty. There are 48 separate income thresholds set based on the possible combinations of household composition. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 12 AN 25-0002 EXHIBIT E-1/PAGE 13 OF 55 in the Metro area, but the pattern is particularly stark here.The most common homes of local workers commuting into the city are Portland, Beaverton,or Tigard. This data set predates the surge in remote working that has taken place over the last few years. In prior years, it was safe to assume that most residents holding jobs outside the community likely commuted physically. Now, a resident might hold a job in another city but work from home. Unfortunately, these data do not quantify this growing segment. Similarly, of the estimated 18,000 employed Lake Oswego residents, 88% of them commute elsewhere to their employment. The most common destinations for Lake Oswego commuters are Portland and Beaverton. Smaller shares work elsewhere in the Portland metro or in the mid-Willamette Valley. FIGURE 2.14: COMMUTING PATTERNS(PRIMARY JOBS),LAKE OSWEGO Metzger • -. Milwaukie Hospi C A.I-T JL HILL • iJ 14 Tryon Cre=elc State - Q 1 1Iwaukie Et M Natural Area .ti • 1 4a e L i�'. - . - -- �_ 1— lardiL,' ----.-------- \ r2:.,, i 99'E 'Os.•ve o 20,900 2,250 15,800 Work in Lake Oswego, Live and work Live in Lake Oswego, live elsewhere \ in Lake Oswego work elsewhere :ryanl , n•s arrd .ink Durham i! _. R . t till / 10% 12% / 88% Jena'i ritage Center 1, •River Grove :: ualtifi1 Stafford ) 1 Legacy Meridian. ` m I, I L■ l• I , .Source: US Census Longitudinal Employer-Household Dynamics Jobs/Household Ratio: Lake Oswego features a balanced jobs-to-households ratio.There are an estimated 23,000 jobs in Lake Oswego (covered), and an estimated 17,500 households in Lake Oswego.This represents 1.3 jobs per household.There is no standard jobs-to-households ratio that is right for all communities,but it can provide a guide to the balance between employment uses and residential uses in the city. There is an average of 1.0 job held for each Lake Oswego household, a majority of which are located outside the city. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 13 AN 25-0002 EXHIBIT E-1/PAGE 14 OF 55 III. CURRENT HOUSING CONDITIONS This section presents a profile of the current housing stock and market indicators in Lake Oswego.This profile forms the foundation to which current and future housing needs will be compared. A. HOUSING TENURE Lake Oswego has a greater share of homeowner households than renter households.The 2021 ACS estimates that 71% of occupied units were owner occupied, and only 29% renter occupied. The ownership rate is little changed since 2000.The estimated ownership rate is higher across Clackamas County(73%)and lower statewide (63%). B. HOUSING STOCK As shown in Figure 2.1, Lake Oswego had an estimated 18,350 housing units in 2023, with a vacancy rate of 5% (includes ownership and rental units).The housing stock has increased by roughly 2,680 units since 2000,or growth of over 17%. FIGURE 3.1: ESTIMATED SHARE OF UNITS,BY PROPERTY TYPE,2023 Lake Oswego, Oregon 80% 63% 60% 40% 21% 20% 0% 9% 6% - 1% 0% 0% Single Single Duplex 3-or 4-plex 5+Units Manuf. Boat, RV, Detached Attached MFR home other temp SOURCE: US Census,City of Lake Oswego Figure 3.1 shows the estimated number of units by type in 2023 based on US Census. Detached single-family homes represent an estimated 63%of housing units. Units in larger apartment complexes of 5 or more units represent 21%of units,and other types of attached homes represent 16% of units. (Attached single family generally includes townhomes, and some 2 to 4-plexes which are separately metered.) Manufactured homes represent well less than 1%of the inventory. C. NUMBER OF BEDROOMS Figure 3.2 shows the share of units for owners and renters by the number of bedrooms they have. In general, owner-occupied units are much more likely to have three or more bedrooms,while renter-occupied units are much more likely to have two or fewer bedrooms. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 14 AN 25-0002 EXHIBIT E-1/PAGE 15 OF 55 FIGURE 3.2: NUMBER OF BEDROOMS FOR OWNER AND RENTER UNITS,2021(LAKE OSWEGO) Number of Bedrooms 5 or more 1% Renter 11% Owner 4 bedrooms 5% 39% 3 bedrooms 19% 33% 2 bedrooms 43% 14% 1 bedroom ° 27% 2% Studio ° 6% 0/ 0% 10% 20% 30% 40% 50% SOURCE: US Census Census Tables: B25042(2021 ACS 5-year Estimates) D. UNIT TYPES BY TENURE As Figure 3.3 and 3.4 show, a large share of owner-occupied units (81%), are detached homes, which is related to why owner-occupied units tend to have more bedrooms. Renter-occupied units are much more distributed among a range of structure types.About 18%of rented units are estimated to be detached homes or manufactured homes, while the remainder are some form of attached unit. Nearly 60%of rental units are in larger apartment complexes. FIGURE 3.3: CURRENT INVENTORY BY UNIT TYPE,FOR OWNERSHIP AND RENTAL HOUSING(LAKE OSWEGO) OWNERSHIP HOUSING OWNERSHIP HOUSING Single Single 5+Units Manuf. Boat,RV, Total Detached Attached Duplex 3-or 4-plex MFR home other temp Units Totals: 10,557 1,292 9 337 781 32 0 13,008 Percentage: 81.2% 9.9% 0.1% 2.6% 6.0% 0.2% 0.0% 100% RENTAL HOUSING RENTAL HOUSING Single Single 5+Units Manuf. Boat,RV, Total Detached Attached Duplex 3-or 4-plex MFR home other temp Units Totals: 934 332 250 675 3,145 0 0 5,337 Percentage: 17.5% 6.2% 4.7% 12.7% 58.9% 0.0% 0.0% 100% Sources: US Census,JOHNSON ECONOMICS,CITY OF LAKE OSWEGO CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 15 AN 25-0002 EXHIBIT E-1/PAGE 16 OF 55 FIGURE 3.4: CURRENT INVENTORY BY UNIT TYPE,BY SHARE Lake Oswego, Oregon 100% 81% ■Owner 80% • Rental 59% g 60% 0 40% 20% 18/ 10/° 13% 6% 6% 0% 5% 3% 0% 0% 0% 0% 0% Single Single Duplex 3-or 4-plex 5+Units Manuf. Boat, RV, Detached Attached MFR home other temp Unit Type Sources: US Census,JOHNSON ECONOMICS,CITY OF LAKE OSWEGO E. AGE AND CONDITION OF HOUSING STOCK Lake Oswego's housing stock reflects the pattern of development over time.The greatest periods of development in Lake Oswego were in the 1970's and 1980's. Roughly 15%of the housing stock has been built since 2000. FIGURE 3.5: AGE OF UNITS FOR OWNERS AND RENTERS(LAKE OSWEGO) 30% 25% Owner 25% % Renter 20% j0i10JI2i4fP23 * :5% 3%■ 1/ of 3� Year Housing Unit Built c; SOURCE: US Census Census Tables: B25036(2021 ACS 5-year Estimates) • Unfortunately, good quantitative data on housing condition is generally unavailable without an intensive on- site survey of all local housing,which is beyond the scope of this analysis.Census categories related to housing condition are ill-suited for this analysis, dealing with such issues as units without indoor plumbing,which was more common in the mid-20th Century, but is an increasingly rare situation.Age of units serves as the closest reliable proxy for condition with available data. • For ownership units, older homes may be in poor condition, but are also more likely to have undergone some repair and renovation over the years. Rental units are more likely to degrade steadily with age and wear-and- CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 16 AN 25-0002 EXHIBIT E-1/PAGE 17 OF 55 tear, and less likely to receive sufficient reinvestment to keep them in top condition, though this is not universally true. F. HOUSING COSTS VS. LOCAL INCOMES Figure 3.6 shows the share of owner and renter households who are paying more than 30% of their household income towards housing costs, by income segment. (Spending 30%or less on housing costs is a common measure of"affordability" used by HUD and others,and in the analysis presented in this report.) As one would expect, households with lower incomes tend to spend more than 30%of their income on housing, while incrementally fewer of those in higher income groups spend more than 30% of their incomes on housing costs.Of those earning less than$20,000,an estimated 91%of owner households and 100%of renters spend more than 30%of income on housing costs. Even among households earning between $50,000 and $75,000 per year, a majority are housing cost burdened. Because Lake Oswego has an income distribution skewed towards higher income levels,there are relatively few households in these lower income segments,compared to most other cities. In total,the US Census estimates that over 31%of Lake Oswego households pay more than 30%of income towards housing costs(2021 American Community Survey, B25106) FIGURE 3.6: SHARE OF LAKE OSWEGO HOUSEHOLDS SPENDING MORE THAN 30% ON HOUSING COSTS, BY INCOME GROUP 100% 100% 91% 92% 88% Owner Households o 82% 80% 74% Renter Households 64% A 60% 51% L0 U, N tto 40% •c = 20% 12% 16% v 0% n Less than $20,000 to $35,000 to $50,000 to $75,000 or $20,000 $34,999 $49,999 $74,999 more Household Income Sources: US Census,JOHNSON ECONOMICS Census Table: B25106(2021 ACS 5-yr Estimates) Housing is generally one of a household's largest living costs,if not the largest.The ability to find affordable housing options, and even build wealth through ownership, is one of the biggest contributors to helping lower income households save and cultivate wealth. Even if renting, affordable housing costs allow for more household income to be put to other needs, including saving. The following figures show the percentage of household income spent towards gross rent' for local renter households only.This more fine-grained data shows that not only are 49%of renters spending more than 30%of their income on gross rent, but an estimated 29%of renters are spending 50%or more of their income on housing and are considered severely rent-burdened. 'The Census defines Gross Rent as"the contract rent plus the estimated average monthly cost of utilities(electricity,gas,and water and sewer) and fuels(oil,coal,kerosene,wood,etc.)if these are paid by the renter(or paid for the renter by someone else)."Housing costs for homeowners include mortgage,property taxes,insurance,utilities and condo or HOA dues. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 17 AN 25-0002 EXHIBIT E-1/PAGE 18 OF 55 Renters are disproportionately lower income relative to homeowners. Housing cost burdens are felt more broadly for these households, and as the analysis presented in a later section shows there is a need for more affordable rental units in Lake Oswego,as in most communities. FIGURE 3.7: PERCENTAGE OF HOUSEHOLD INCOME SPENT ON GROSS RENT,LAKE OSWEGO RENTER HOUSEHOLDS 35% 30% 29% 25% 25% 22% 0 20% =• 15% 14% v • 10% 7% N 5% � ■ 0% olo y�olo 'Lc) ��Io ��olo oe, o O O 0 Lod \ 01 of %of Income to Gross Rent Sources: US Census,JOHNSON ECONOMICS Census Table: B25070(2021 ACS 5-yr Estimates) G. PUBLICLY ASSISTED HOUSING Oregon Housing and Community Services(OHCS)tracks three currently operating affordable housing properties in Lake Oswego,with a total of 76 units.These are properties that are funded through HUD programs,tax credits and other programs which guarantee subsidized rents for qualified households.All of these units,save one,are offered for elderly residents. The Marylhurst Commons, currently under development, is planned to offer 100 affordable units for families.Completion is expected in 2024. The Housing Authority of Clackamas County administers over 1,600 Section 8 housing choice vouchers that allow low-income participants to find rental units anywhere in the county. Under this program, the renters can find participating landlords and the voucher helps to subsidize the cost of a market-rate rental unit.The unit does not have to be in a property dedicated to subsidized affordable housing but can be in any rental property. The high share of renters still paying over 30% of their income towards housing costs indicates that there is an ongoing need for rental units at the lowest price points. Agricultural Worker Housing: Lake Oswego is not currently home to properties dedicated to agricultural workers. This population may also be served by other available affordable units. People Experiencing Homelessness: The Census does make a multi-faceted effort to include the unhoused population in the total Decennial Census count, by attempting to enumerate these individuals at service providers, and in transitory locations such as RV parks or campgrounds,as of the official Census data (4/1/20). However, it is difficult to make an accurate count of this population, and it is generally presumed that the unhoused are undercounted in the Census. The most recent (January 2022) Point-in-Time count of people experiencing homelessness and households experiencing homelessness in Clackamas County' found 597 unhoused individuals on the streets, in shelters, or 5 Figures are for the entire County CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 18 AN 25-0002 EXHIBIT E-1/PAGE 19 OF 55 other temporary and/or precarious housing. The estimated 597 unhoused individuals represent 0.1% of the county's total estimated population in 2022. • An estimated 45%of individuals were in some sort of temporary shelter,while 55%were unsheltered. • The total included 51 children (under age 18), and 26 youth (aged 18-24). • Of those indicating a gender, 60%of those counted identified as men,40%women. • 5%of those counted were Hispanic or Latino compared to 9.5%in the general population. • 304 individuals,or 51%,were counted as"chronically homeless".6 While the Point-in-Time count is one of the few systematized efforts to count people experiencing homelessness across the country in a regular, structured way, it is widely thought to undercount the population of unhoused individuals and households. People who are doubled up,couch surfing,or experiencing domestic violence may not always be accurately counted. In addition to the impossibility of finding all unsheltered individuals experiencing homelessness,the count is conducted in late January,when homeless counts are likely near their lowest of the year due to inclement weather. It also relies on self-reporting. A recent analysis prepared for OHCS to test a potential approach for preparing Housing Capacity Analyses on a regional basis included estimates of the unhoused population in Oregon communities,including Lake Oswego.The approach utilizes a combination of data from the bi-annual Point-in-Time count and from tracking of unhoused school-aged children in keeping with the McKinney-Vento Act.The analysis estimates 239 households experiencing homelessness in Lake Oswego as of mid-2020. These include households that are unsheltered, in temporary shelters, or staying with friends or relatives. These households are a component of current and future housing need. The persistence of people experiencing homelessness speaks to the need for continuing to build a full spectrum of services and housing types to shelter this population,from temporary shelter to subsidized affordable housing. An analysis of the ability of current and projected housing supply to meet the needs of low-income people and the potential shortfall is included in the following sections of this report. 6 HUD defines "chronically homeless" as an individual with a disability as defined by the McKinney-Vento Assistance Act,who has been in uninhabitable conditions for more than 12 mo.or on four separate occasions in the last three years;or has been in institutional care for less than 90 days;or a family with an adult head of household who meets this definition. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 19 AN 25-0002 EXHIBIT E-1/PAGE 20 OF 55 IV. CURRENT HOUSING NEEDS (CITY OF LAKE OSWEGO) The profile of current housing conditions in the study area is based on Census 2010, which the Portland State University Population Research Center(PRC) uses to develop yearly estimates through 2019. The 2019 estimate is forecasted to 2023 using the estimated growth rate realized since 2010. FIGURE 4.1:CURRENT LAKE OSWEGO HOUSING PROFILE(2023) CURRENT HOUSING CONDITIONS(2023) SOURCE Total 2023 Population: 41,550 PSU Pop.Research Center - Estimated group housing population: 329 (0.8%of Total) US census Estimated Non-Group 2023 Population: 41,221 (Total-Group) Avg. HH Size: 2.36 US Census Estimated Non-Group 2023 Households: 17,481 (Pop/HH Size) Total Housing Units: 18,345 (Occupied+Vacant) Census 2010+permits Occupied Housing Units: 17,481 (=#of HH) Vacant Housing Units: 864 (Total HH-Occupied) Current Vacancy Rate: 4.7% (Vacant units/Total units) Sources: Johnson Economics,City of Lake Oswego,PSU Population Research Center,U.S.Census *This table reflects population,household and housing unit projections shown in Figure 2.1 We estimate a current population of 41,550 residents, living in 17,481 households (excluding group living situations).Average household size is 2.4 persons. There are an estimated 18,345 housing units in the city, indicating an estimated vacancy rate of 5%.This includes units vacant for any reason, not just those which are currently for sale or rent. ESTIMATE OF CURRENT HOUSING DEMAND Following the establishment of the current housing profile, the current housing demand was determined based upon the age and income characteristics of current households. The analysis considered the propensity of households in specific age and income levels to either rent or own their home (tenure), in order to derive the current demand for ownership and rental housing units and the appropriate housing cost level of each.This is done by combining data on tenure by age and tenure by income from the Census American Community Survey(tables: B25007 and B25118, 2021 ACS 5-yr Estimates). The analysis takes into account the average amount that owners and renters tend to spend on housing costs. For instance, lower income households tend to spend more of their total income on housing, while upper income households spend less on a percentage basis. In this case, it was assumed that households in lower income bands would prefer housing costs at no more than 30% of gross income (a common measure of affordability). Higher income households pay a decreasing share down to 20%for the highest income households. While the Census estimates that most low-income households pay more than 30%of their income for housing,this is an estimate of current preferred demand. It assumes that low-income households prefer (or demand) units affordable to them at no more than 30%of income, rather than more expensive units. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 20 AN 25-0002 EXHIBIT E-1/PAGE 21 OF 55 Figure 4.2 presents a snapshot of current housing demand (i.e. preferences)equal to the number of households in the study area (17,481).The breakdown of tenure(owners vs. renters) reflects data from the 2021 ACS. FIGURE 4.2:ESTIMATE OF CURRENT HOUSING DEMAND IN LAKE OSWEGO(2023) Ownership Price Range #of Income Range /of Cumulative Households Total $0k-$80k 330 Less than$15,000 2.7% 2.7% $80k-$130k 267 $15,000-$24,999 2.2% 4.9% $130k-$180k 357 $25,000-$34,999 2.9% 7.8% $180k-$250k 636 $35,000-$49,999 5.2% 13.0% $250k-$350k 1,051 $50,000-$74,999 8.6% 21.7% $350k-$440k 1,147 $75,000-$99,999 9.4% 31.1% $440k-$510k 1,109 $100,000-$124,999 9.1% 40.2% $510k-$560k 892 $125,000-$149,999 7.3% 47.5% $560k-$680k 1,827 $150,000-$199,999 15.0% 62.5% $680k+ 4,577 $200,000+ 37.5% 100.0% Totals: 12,191 %of All: 69.7% Rental Rent Level #of Income Range /of Cumulative Households Total $0-$400 348 Less than$15,000 6.6% 6.6% $400-$700 383 $15,000-$24,999 7.2% 13.8% $700-$900 554 $25,000-$34,999 10.5% 24.3% $900-$1300 621 $35,000-$49,999 11.7% 36.0% $1300-$1800 837 $50,000-$74,999 15.8% 51.9% $1800-$2200 764 $75,000-$99,999 14.4% 66.3% $2200-$2500 505 $100,000-$124,999 9.6% 75.9% $2500-$2800 410 $125,000-$149,999 7.8% 83.6% $2800-$3400 271 $150,000-$199,999 5.1% 88.7% $3400+ 596 $200,000+ 11.3% 100.0% All Households Totals: 5,290 %of All: 30.3% 17,481 Sources: PSU Population Research Center,Claritas.,Census,JOHNSON ECONOMICS Census Tables: B25007, B25106,B25118(2021 ACS 5-yr Estimates) Claritas: Estimates of income by age of householder The estimated home price and rent ranges are irregular because they are mapped to the affordability levels of the Census income level categories. For instance, an affordable home for those in the lowest income category (less than $15,000)would have to cost$80,000 or less.Affordable rent for someone in this category would be $400 or less. The affordable price level for ownership housing assumes 30-year amortization,at an interest rate of 5%(somewhat less than the current market rate,but in line with historic norms),with 10%down payment.These assumptions are designed to represent prudent lending and borrowing levels for ownership households. The 30-year mortgage commonly serves as the standard. In the 2000's, down payment requirements fell significantly, but lending standards tightened significantly since the 2008/9 credit crisis. While 20% is often cited as the standard for most buyers,it is common for homebuyers,particularly first-time buyers,to pay significantly less than this using available programs. Interest rates are subject to disruption from national and global economic forces, and therefore impossible to forecast beyond the short term. The 5% used here is roughly the average 30-year rate over the last 20 years.The CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 21 AN 25-0002 EXHIBIT E-1/PAGE 22 OF 55 general trend has been falling interest rates since the early 1980's,but coming out of the recent inflationary period, the Federal Reserve has raised its base rate significantly in recent years and mortgage rates have also climbed to levels not seen in almost 20 years. CURRENT HOUSING INVENTORY The profile of current housing demand(Figure 4.2)represents the preference and affordability levels of households. In reality, the current housing supply (Figures 4.3 and 4.4 below) differs from this profile, meaning that some households may find themselves in housing units which are not optimal, either not meeting the household's own/rent preference,or being unaffordable(requiring more than 30%of gross income). A profile of current housing supply in Lake Oswego was estimated based on permit data from the City of Lake Oswego and Census data from the most recently available 2021 ACS, which provides a profile of housing types (single family, attached, manufactured home, etc.), tenure, housing values, and rent levels. The 5-year estimates from the ACS were used because margin of error is lower than 1-year ACS estimates. • An estimated 71% of housing units are ownership units, while an estimated 29% of housing units are rental units. This is slightly different than the estimated demand profile shown in Figure 4.2, which estimated a bit higher demand for rental units given local income and age levels.The inventory includes vacant units. • 81%of ownership units are detached homes,and very few are manufactured homes. 17.5%of rental units are either single family homes or manufactured homes,while 59%are in structures of 5 units or more. • Of total housing units, an estimated 63%are detached homes or manufactured homes. 37%are some sort of attached unit type. FIGURE 4.3:PROFILE OF CURRENT HOUSING SUPPLY BY TYPE(2023) Lake Oswego, Oregon 100% 81% ■Owner 80% S9/ Rental 60% 0 v 40% 18% 20% 10% 0 13% - 6/ 0% 5% 3% 6% 0% 0% 0% 0% 0% Single Single Duplex 3-or 4-plex 5+Units MFR Manuf. Boat, RV, Detached Attached home other temp Unit Type Sources: US Census,PSU Population Research Center,JOHNSON ECONOMICS Census Tables: B25004, B25032,B25063, B25075(2021 ACS 5-yr Estimates) • The affordability of different unit types is an approximation based on Census data on the distribution of housing units by value(ownership)or gross rent(rentals). • Most subsidized affordable housing units found in the city are represented by the inventory at the lowest end of the rental spectrum. • Ownership housing found at the lower end of the value spectrum generally reflect older, smaller homes, or homes in poor condition on small or irregular lots. It is important to note that these represent estimates of CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 22 AN 25-0002 EXHIBIT E-1/PAGE 23 OF 55 current property value or current housing cost to the owner,not the current market pricing of homes for sale in the city. These properties may be candidates for redevelopment when next they sell but are currently estimated to have low value. FIGURE 4.4:PROFILE OF CURRENT HOUSING SUPPLY,ESTIMATED AFFORDABILITY IN LAKE OSWEGO(2023) Ownership Housing Rental Housing Affordable Estimated Affordable Estimated Income Range Share of Total Units Price Level Units Rent Level Units Less than$15,000 $0k-$80k 135 $0-$400 70 I 1% $15,000-$24,999 $80k-$130k 129 $400-$700 43 I 1% $25,000-$34,999 $130k-$180k 170 $700-$900 106 I 2% $35,000-$49,999 $180k-$250k 406 $900-$1300 518 • 5% $50,000-$74,999 $250k-$350k 735 $1300-$1800 1,852 14% $75,000-$99,999 $350k-$440k 839 $1800-$2200 1,289 12% $100,000-$124,999 $440k-$510k 753 $2200-$2500 602 7% $125,000-$149,999 $510k-$560k 924 $2500-$2800 223 - 6% $150,000-$199,999 $560k-$680k 2,217 $2800-$3400 229 13% $200,000+ $680k+ 6,700 $3400+ 404 39% 71% 13,008 29% 5,337 0% 10% 20% 30% 40% Sources: US Census,PSU Population Research Center,JOHNSON ECONOMICS Census Tables: B25004, B25032,B25063, B25075(2021 ACS 5-yr Estimates) ■ Most housing (58%) in Lake Oswego is found in price and rent levels affordable to those earning at least $125,000 per year,which is close to the city's median income.There is very little housing available to those in lower income segments. Over 90% of housing is affordable to those earning at least $50,000, and only 9% affordable to those earning less than this. COMPARISON OF CURRENT HOUSING DEMAND WITH CURRENT SUPPLY A comparison of estimated current housing demand with the existing supply identifies the existing discrepancies between needs and the housing which is currently available. The estimated number of units outnumbers the number of households by roughly 865 units, indicating an average vacancy rate of 4.7%. In general, this identifies that there is currently support for more ownership housing at lower price points, while the upper end of the market is generally well supplied.This is because most housing in Lake Oswego is clustered at higher property values, which matches the community's high average household income but leaves some households underserved. The analysis finds that the current market rates for most rental units are in the $1,300 to $2,200/month range. Therefore,this is where most of the rental unit supply is currently clustered. However,the greatest unmet need is found at the lower end of the income scale, where many current renters pay more than 30% of their income in housing costs. Rentals at the most expensive levels generally represent single family homes for rent. Figures 4.5 and 4.6 present this information in chart form,comparing the estimated number of households in given income ranges,and the supply of units currently valued(ownership)or priced(rentals)within those income ranges. The data is presented for owner and renter households. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 23 AN 25-0002 EXHIBIT E-1/PAGE 24 OF 55 FIGURE 4.5:COMPARISON OF OWNER HOUSEHOLD INCOME GROUPS TO ESTIMATED SUPPLY AFFORDABLE AT THOSE INCOME LEVELS IN LAKE OSWEGO(2023) Owner Households vs.Current Units 7,000 6,000 •Est.Owner Households N = 5,000 Units Valued at Income Level D - 4,000 0 v 3,000 0 0 2,000 o 1,000 � xk 0 M ■ ■ ■ I 0 0 < < < x0 ) ) ) ) 0) 0 0 00 0 0 0 0 0 0 00 h, p, p, op e c c 0 t gyp, 1, '0 0 0hy hL hgy h h 'lc) O • • • • • h ra� 0 0 0 0 00 0 0 0 0 0 0 0 ys� 0 0 0 0 0 0 0 00h, h, 'h, 0, Ah' 0, h, 0 He hti hu h' h h 0 � h h'\ hti hti Income Cohorts Sources: PSU Population Research Center,City of Lake Oswego,Census,JOHNSON ECONOMICS FIGURE 4.6:COMPARISON OF RENTER HOUSEHOLD INCOME GROUPS TO ESTIMATED SUPPLY AFFORDABLE AT THOSE INCOME LEVELS IN LAKE OSWEGO(2023) Renter Households vs.Current Units 2,000 •Est.Renter Households E1,500 Units Affordable at Income Level t° 1,000 a) U, = 500 x 0 ■ ■ 1II I I I I . h h h h h ti ti ' O ' wren 000 000 000 000 000 00 00 00 hL �e`'� htih hlh, h''h, h`'0 huh 000 1h0 h00 h,' h, 'IN' Income Cohorts Sources: PSU Population Research Center,City of Lake Oswego,Census,JOHNSON ECONOMICS The home value and rent segments which show a"surplus"in Figures 4.5 and 4.6 illustrate where current property values and market rent levels are in Lake Oswego. Housing prices and rent levels will tend to congregate around those levels.These levels will be too costly for some(i.e.require more than 30%in gross income)or"too affordable" for others(i.e.they have income levels that indicate they could afford more expensive housing if they chose). In general, these findings demonstrate that there are few lower-value housing opportunities for many owner households, and potential support for some less expensive types of ownership housing.There is a need for more rental units at lower rent levels(<$900/mo.). HOME SALE PRICES It is important to note that the figures presented in the prior section represent estimates of current property value or current housing cost to the owner, not the current market pricing of homes for sale in the city. For instance, a household living in a manufactured home that has been paid off over many years may have relatively low housing costs.This indicates that one owner household is living in a"lower value"unit. It does not indicate that units at this price point are available on the current market. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 24 AN 25-0002 EXHIBIT E-1/PAGE 25 OF 55 If this hypothetical household were to sell their home, it would sell at a higher price reflecting inflation and current achievable market prices. For this reason,many of the lower value or lower rent units found in the previous section will actually become higher-priced units when they are sold or become vacant. For reference,this section presents home sales data from 2022 to indicate housing costs for new entrants into the market(Figure 4.7). • The median sale price was$860,000. • The average(mean)sale price was$1,075,000. • The average price per square foot was$430/s.f. • The median square footage was 2,300 s.f. FIGURE 4.7:LAKE OSWEGO HOME SALES(12 MONTHS) Home Sales by Unit Type Home Sales by Price Level $900,000+ 319 $800,000-$899,000 66 20% $700,000-$799,000 67 $600,000-$699,000 56 8% $500,000-$599,000 ■ 39 0 ° 72% $400,000-$499,000 . 31 $300,000-$399,000 . 47 $200,000-$299,000 ■ 43 $100,000-$199,000 13 Detached Home Manuf. Home <$100,000 0 Attached Home Condo 0 100 200 300 400 Sources: RMLS,JOHNSON ECONOMICS • 48%of sales were priced above$900,000. • 34%of sales were priced between$500,000 and$899,000. • Only 18%of sales were priced at less than $500,000. • Only 7%of sales were priced below$300,000. Affordability: As indicated, roughly 75%of recent sales in Lake Oswego were priced at least $600,000. Homes in this range would be mostly affordable to households earning at least $175,000 per year, which is well above the median household income of$123,000. Roughly 66% of households earn less than $175,000 per year, meaning that the bulk of housing supply on the current for-sale market(75%) is likely too expensive for most of these households. The findings of current need form the foundation for projected future housing need, presented in the following section. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 25 AN 25-0002 EXHIBIT E-1/PAGE 26 OF 55 V. FUTURE HOUSING NEEDS-2043 (CITY OF LAKE OSWEGO) The projected future(20-year) housing profile(Figure 5.1)in the study area is based on the current housing profile (2023), multiplied by an assumed projected future household growth rate. The projected future growth is the forecasted 2043 population for the City of Lake Oswego included in the most recently adopted Coordinated Population Forecast from Metro for all cities in the region.This was adopted in 2021 and projected a very modest growth rate for Lake Oswego of well less than 1%per year.' FIGURE 5.1:FUTURE HOUSING PROFILE(2043),LAKE OSWEGO PROJECTED FUTURE HOUSING CONDITIONS(2023-2043) SOURCE 2023 Population(Minus Group Pop.) 41,221 (Est.2022 pop.-Group Housing Pop.) PSU Projected Annual Growth Rate 0.05% Metro Coordinated Forecast(2021) Metro 2043 Population(Minus Group Pop.) 41,629 (Total 2043 Population-Group Housing Pop.) Estimated group housing population: 332 1.7%of total pop.(held constant from 2022) US Census Total Estimated 2043 Population: 41,961 Metro Coordinated Forecast(2021) Metro Estimated Non-Group 2043 Households: 19,298 Metro Coordinated Forecast(2021) Metro New Households 2023 to 2043 1,816 Avg. Household Size: 2.16 Projected 2043 pop./2043 houseolds US Census Total Housing Units: 20,313 Occupied Units plus Vacant Occupied Housing Units: 19,298 (=Number of Non-Group Households) Vacant Housing Units: 1,016 (=Total Units-Occupied Units) Projected Market Vacancy Rate: 5.0% Stabilized vacancy assumption Sources: PSU Population Research Center,Metro,Census,JOHNSON ECONOMICS LLC *Projections are applied to estimates of 2023 population,household and housing units shown in Figure 2.1 The model projects growth in the number of non-group households over 20 years of over 1,800 households, but with accompanying population growth of just 411 new residents. The difference is that the household size is expected to decrease significantly to 2.2 persons,meaning more smaller households to house the same population. (The number of households differs from the number of housing units, because the total number of housing units includes a percentage of vacancy. Projected housing unit needs are discussed below.) 7 The projected growth and housing need presented in this report conforms to the statutory approach to completing a Goal 10 needs analysis. To comply with state rules,the analysis relies on estimates of current population from the Portland State University Population Research Center (PRC)and projections of future growth from the most recent Metro distributed forecast.The forecasted growth rates from Metro are very low in comparison to rates experienced during the past 20 years and low in comparison to projected rates in other parts of the region and state. The City's population increased by about 18%,with an average annual growth rate of about 1%between 2000 and 2020 per year. During the next 20 years,forecasted growth is projected to be a total of 1%,with an average annual growth rate of just 0.05%per year.Many community members in Lake Oswego,including members of the project Task Force,as well as members of the City's Planning Commission and City Council, have questioned the accuracy of the projected growth rates,but no contrary expert testimony of the population forecast is presented.To the extent the City grows faster than the growth rates predict,the deficit of land available to accommodate housing over the long term will be more acute and the City will consume remaining buildable land more quickly,potentially running out of buildable land within several years. Per ORS 197.297,the City is required to adopt an updated HNA at least once every six years;thus,the City will have an additional opportunity in 2029 to correct the population forecast,if the projections in the 2023 HNA are notably different than observed trends.It will be important for the City to coordinate closely with Metro as it updates its growth rates and to continue to monitor actual growth patterns,as well as the supply of buildable land in the City.To the extent growth occurs at a faster rate than projected,the City will need to identify and implement strategies to address a potential shortage in available land for housing in the near term. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 26 AN 25-0002 EXHIBIT E-1/PAGE 27 OF 55 PROJECTION OF FUTURE HOUSING UNIT DEMAND(2043) The profile of future housing demand was derived using the same methodology used to produce the estimate of current housing need. This estimate includes current and future households but does not include a vacancy assumption. The vacancy assumption is added in the subsequent step. Therefore,the need identified below is the total need for actual households in occupied units(19,298). The analysis considered the propensity of households at specific age and income levels to either rent or own their home, in order to derive the future need for ownership and rental housing units, and the affordable cost level of each.The projected need is for all 2043 households and therefore includes the needs of current households. The price levels presented here use the same assumptions regarding the amount of gross income applied to housing costs,from 30%for low income households down to 20%for the highest income households. The affordable price level for ownership housing assumes 30-year amortization,at an interest rate of 5%,with 10% down payment. Because of the impossibility of predicting variables such as interest rates 20 years into the future, these assumptions were kept constant from the estimation of current housing demand. Income levels and price levels are presented in 2023 dollars. Figure 5.2 presents the projected occupied future housing demand(current and new households,without vacancy) in 2043. FIGURE 5.2:PROJECTED OCCUPIED FUTURE HOUSING DEMAND(2043),LAKE OSWEGO Ownership #of Price Range Households Income Range %of Total Cumulative $0k-$80k 364 Less than$15,000 2.7% 2.7% Extremely <30%MFI $80k-$130k 295 $15,000-$24,999 2.2% 4.9% Low Income $130k-$180k 394 $25,000-$34,999 2.9% 7.8% Very Low <50%MFI $180k-$250k 702 $35,000-$49,999 5.2% 13.0% I Income $250k-$350k 1,160 $50,000-$74,999 8.6% 21.7% Low Income <80%MFI $350k-$440k 1,266 $75,000-$99,999 9.4% 31.1% $440k-$510k 1,224 $100,000-$124,999 9.1% 40.2% $510k-$560k 984 $125,000-$149,999 7.3% 47.5% $560k-$680k 2,017 $150,000-$199,999 15.0% 62.5% $680k+ 5,053 $200,000+ 37.5% 100.0% Totals: 13,458 %of All: 69.7% Rental #of Rent Level Households Income Range %of Total Cumulative $0-$400 385 Less than$15,000 6.6% 6.6% Extremely <30%MFI $400-$700 423 $15,000-$24,999 7.2% 13.8% li Low Income $700-$900 611 $25,000-$34,999 10.5% 24.3% Very Low <50%MFI $900-$1300 686 $35,000-$49,999 11.7% 36.0% I Income $1300-$1800 924 $50,000-$74,999 15.8% 51.9% Low Income <80%MFI $1800-$2200 843 $75,000-$99,999 14.4% 66.3% $2200-$2500 558 $100,000-$124,999 9.6% 75.9% $2500-$2800 453 $125,000-$149,999 7.8% 83.6% $2800-$3400 299 $150,000-$199,999 5.1% 88.7% $3400+ 658 $200,000+ 11.3% 100.0% All Units Totals: 5,840 %of All: 30.3% 19,298 Sources: Census,Claritas,JOHNSON ECONOMICS CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 27 AN 25-0002 EXHIBIT E-1/PAGE 28 OF 55 The number of households across the income spectrum seeking a range of both ownership and rental housing is anticipated to grow. It is projected that the homeownership rate in Lake Oswego will fall somewhat over the next 20 years to under 70%from 71%. COMPARISON OF FUTURE HOUSING DEMAND TO CURRENT HOUSING INVENTORY The profile of occupied future housing demand presented above(Figure 5.2)was compared to the current housing inventory presented in the previous section to determine the total future need for new housing units by type and price range(Figure 5.3). This estimate includes a vacancy assumption. As reflected by the most recent Census data, and as is common in most communities, the vacancy rate for rental units is typically higher than that for ownership units. An average vacancy rate of 5%is assumed for the purpose of this analysis. FIGURE 5.3: PROJECTED FUTURE NEED FOR NEW HOUSING UNITS(2043),LAKE OSWEGO OWNERSHIP HOUSING Multi-Family Single Single 3-or 4- 5+Units Manuf. Boat,RV, Total %of Unit Type: Detached Attached 2-unit plex MFR home other temp Units Units Totals: 708 132 31 57 92 3 0 1,024 52.0% Percentage: 69.2% 12.9% 3.1% 5.6% 9.0% 0.2% 0.0% 100% RENTAL HOUSING Multi-Family Single Single 3-or 4- 5+Units Manuf. Boat,RV, Total %of Unit Type: Detached Attached 2-unit plex MFR home othertem P Units Units Totals: 52 87 73 148 585 0 0 944 48.0% Percentage: 5.5% 9.2% 7.7% 15.7% 61.9% 0.0% 0.0% 100% TOTAL HOUSING UNITS Multi-Family Single Single 3-or 4- 5+Units Manuf. Boat,RV, Total %of Unit Type: Detached Attached 2-unit plex MFR home other temp Units Units Totals: 760 220 104 205 677 3 0 1,968 100% Percentage: 38.6% 11.2% 5.3% 10.4% 34.4% 0.1% 0.0% 100% Sources: PSU,City of Lake Oswego,Census,Claritas,JOHNSON ECONOMICS • The results show a need for 1,968 new housing units by 2043. • Of the new units needed, roughly 52% are projected to be ownership units, while 48% are projected to be rental units.This represents more renters than the estimated tenure split, but it is projected that more rental units will need to be added to correct the current modest deficit of rental units, plus the future ownership rate will fall slightly. This results in a proportionately greater share of future units being rental, rather than ownership units. • There is some need for new ownership housing at the middle to low-end of the pricing spectrum. But income trends suggest that the greatest demand will remain in the upper-middle price ranges($300k to$600k). • The greatest need for rental units is found at the lowest and some higher price points. Market rents are currently clustered in the $1,300 to $2,200 range in current dollars.Therefore, most units are to be found in this range. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 28 AN 25-0002 EXHIBIT E-1/PAGE 29 OF 55 ■ There is insufficient rental housing for the lowest income households making $35,000 or less or detached single-family homes for rent. Many households will need rent levels lower than the market rate in order to maintain housing costs that are affordable(see more detail below). Needed Unit Types The mix of needed unit types shown in Figure 5.3 reflects both past trends and anticipated future trends. Single detached units are expected to continue to make up a large share of new housing development for ownership households over the next 20 years. However,an increasing share of new needed units is anticipated to be attached housing types to accommodate renters and first-time home buyers. ■ 39%of the new units are projected to be single detached homes or new manufactured homes, while 61% is projected to be some form of attached housing. ■ Single attached units(townhomes on individual lots)are projected to meet roughly 11%of future need. These are defined as units on separate tax lots,attached by a wall but separately metered,the most common example being townhome units. ■ Duplex,triplex,and four-plex units are projected to represent a growing 16%of the total need, reflecting new state rules for middle housing zoning. Duplex units would include a detached single-family home with an accessory dwelling unit on the same lot, or with a separate unit in the home (for instance, a rental basement unit.) ■ 34%of all needed units are projected to be multi-family in structures of 5+attached units. ■ Less than 1% of new needed units are projected to be manufactured home units, which meet the needs of some low-income households for both ownership and rental. ■ Of ownership units, 69% are projected to be single detached homes or manufactured homes, and 31% are projected to be attached forms. ■ Nearly all new rental units are projected to be found in new attached buildings,with 62% projected in rental properties of 5 or more units, and 33% in other attached housing forms. Only 5.5% of new rental units are projected to be detached homes, including manufactured homes. Group Housing Needs:There is an estimated population of 332 individuals living in group housing in 2043, based on an assumption that the share of the population living in group quarters (1.7%) remains stable from current levels. This would represent an increase of just a few people living in group quarters, as forecasted population growth is modest. In Lake Oswego, the Census estimates that nearly all of Lake Oswego's group housing population lives in nursing facilities. NEEDED AFFORDABILITY LEVELS Figure 5.4 presents the estimated need for net new housing units by major income segment,based on the projected demographics of new households to the market area.The needed affordability levels presented here are based on current dollars. Figure 5.4 also discusses the housing types typically attainable by residents at these income levels. Note that Figure 5.4 presents the official state measure of "low income" used to set rent and income limits for various affordable housing programs. This estimate via OHCS and HUD are based on an estimate of median income in Clackamas County of$106k in 2022, based on a family of four,while the median income in Lake Oswego was a higher$123k. For this analysis,the estimated Median Family Income(MFI)for a family of four($106k)was adjusted to match the average household size in Lake Oswego of 2.4 persons ($89.5k) so that the estimates presented below reflect the city average. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 29 AN 25-0002 EXHIBIT E-1/PAGE 30 OF 55 Figure 5.4 presents some of the types of housing product that might commonly serve households in these income ranges. Many households below 60% MFI or even higher income will require some sort of subsidized affordable unit or voucher to find housing affordability.Those at 60%to 100%MFI may find housing in older and substandard market rate rentals, manufactured homes,and middle housing types. FIGURE 5.4: PROJECTED NEED FOR NEW HOUSING AT DIFFERENT INCOME LEVELS,LAKE OSWEGO Income Level Owner Renter Household Income Segment Total Share Common Housing Product (Rounded) Units Units Government-subsidized;Voucher; Extremely Low Inc. <30%MFI <$27,500 56 149 205 10% Shelter;Transitional Aging/substandard rentals; Very Low Income 30%-60%MFI $27.5k-$55k 95 221 317 16% Government-subsidized;Voucher; Manufactured homes Aging apartments;Government- Low Income 60%-80%MFI $55k-$73k 71 120 190 10% subsidized; Plexes;Aging single- detached;Small homes Single-detached homes; Middle Income 80%-120%MFI $73k-$11ok 134 172 306 16% Townhomes;Condominiums; Newer apartments Single-detached homes; Upper Income >120%MFI >$110,000 669 282 951 48% Townhomes;Condominiums; New apartments TOTAL: 1,024 944 1,968 100% Sources: HUD,Census,Claritas,JOHNSON ECONOMICS ■ Figure 5.3 presents the net NEW housing unit need over the next 20 years. However, there is also a current need for more affordable units. For all households,current and new,to pay 30%or less of their income towards housing in 2043, more affordable rental units (subsidized and non-subsidized) would be required. This indicates that some of the current supply, while it shows up as existing available housing, would need to become less expensive to meet the needs of current households. ■ There is a finding of new need at the lowest end of the rental spectrum ($900 and less). ■ The projection of future ownership units finds that the supply at the lowest end of the spectrum will be insufficient due to the prevalence of newer homes, many of which will be detached houses. (This reflects the estimated value of the total housing stock, and not necessarily the average pricing for housing currently for sale.) Ownership options and lower and middle price points are often manufactured homes, townhomes, condos,and small detached homes,often on smaller lots. Subsidized Affordability Housing Need As alluded to in Figure 5.4,some low-income households,and particularly the lowest income households,typically need some sort of subsidized affordable housing in order to find rents affordable given their modest resources and other household spending needs. Figure 5.5 below presents estimates of need at key low-income affordability levels in 2022 and in 2043.The table uses HUD definitions of Extremely Low, Very Low, and Low Income, as well as 60% MFI which is a common affordability level for tax credit properties. ■ There is an existing and on-going need at these levels,based on income levels specified by OHCS for Clackamas County. An estimated 12%of households qualify as at least"low income"or lower on the income scale,while CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 30 AN 25-0002 EXHIBIT E-1/PAGE 31 OF 55 9% of households qualify as "extremely low income". (Again, this is based on the official state measure of Clackamas County median income for application to HUD and other subsidized affordable housing programs, which is relatively high.) FIGURE 5.5: PROJECTED NEED FOR HOUSING AFFORDABLE AT Low INCOME LEVELS,LAKE OSWEGO Current Need(2022) Future Need(2043) NEW Need(20-Year) Affordablilty Level Income Level* #of Units %of All #of Units %of All #of Units %of All Extremely Low Inc. <30%MFI < $26,800 1,492 9% 1,697 9% 205 10% Very Low Income 30%-50%MEI <_ $44,700 1,560 9% 1,771 9% 212 11% Low Income 50%-80%MFI <_ $71,600 2,075 12% 2,370 12% 295 15% TOTAL: 580%MFI _< $71,600 5,127 29% 5,839 30% 712 36% Tax Credit <_60%MFI <_ $53,700 3,962 23% 4,483 23% 521 26% Sources: OHCS,Claritas,JOHNSON ECONOMICS,HUD * Income levels are based on OHCS guidelines for avg.Lake Oswego household size of 2.4 persons. ■ Typically, only rent-subsidized affordable properties can accommodate these extremely-low-income households and many other low-income households at "affordable" housing cost levels. Often the lowest income households must be served by housing choice vouchers and public housing. Tax credit projects are more likely to serve those earning 50%to 60%of MFI. Housing Need for People Experiencing Homelessness: Given the low forecasted population growth, Lake Oswego is assumed to maintain a fairly stable number of unhoused individuals and households over this period. Unhoused individuals and families may require a mixture of shelter types depending on individual circumstances,ranging from emergency shelter to transitional housing to permanent subsidized housing. This population is a subset of the extremely-low-income population shown in prior figures. Agricultural Worker Housing:There is currently no housing dedicated to this population in Lake Oswego. Based on the assumption that this type of housing will maintain its current representation in the local housing stock, this indicates that there will likely be no new need for housing dedicated specifically for agricultural workers over the planning period. However,this population may also be served by other available affordable units. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 31 AN 25-0002 EXHIBIT E-1/PAGE 32 OF 55 VI. RECONCILIATION OF FUTURE NEED (2043) & LAND SUPPLY This section summarizes the results of the Buildable Lands Inventory (BLI). The BLI is presented in detail in an accompanying memo to this report. The BLI was conducted for land within the city limits, assessing vacant and partially vacant lands based on residential zoning, and environmental and other constraints that may impact development. The following table (Figure 6.1) presents the estimated new unit capacity of the buildable lands identified in the City of Lake Oswego and within the UGB. Residential zones, as well as mixed-use zones that can accommodate some residential uses, were included in the inventory, and are broken into broad categories based on housing density. FIGURE 6.1: ESTIMATED BUILDABLE LANDS CAPACITY BY ACREAGE AND NO.OF UNITS(2023) ACRES ACREAGE Gross Constrained Unconstrained Developable Unit Land Type Acres Area(Acres) Area(Acres) Acres Capacity Residential 3,530 802 2,784 174 705 Mixed Use 490 96 397 10 146 Non-Residential 172 21 150 - - Public/Other 3,147 1,274 1,899 - - Acres Total: 7,339 2,193 5,230 185 851 UNITS UNIT TYPE Single Family Middle Housing Multi-Family Unit Housing Type Units Units Units Capacity Residential 648 39 17 705 Mixed Use 5 23 118 146 Non-Residential - - - - Public/Other - - - - Vacant and Partially Vacant Total: 653 62 135 851 Additional Capacity Approved Developments 2 23 341 366 Additional Middle Housing Infill - 110 - 110 TOTAL HOUSING UNIT CAPACITY: 655 195 476 1,327 Source: MIG • There is a total estimated remaining capacity of 1,327 units of different types within the study area. • The estimated remaining capacity for low density housing units remains the greatest share at capacity for 655 units,or 49%of the total. • There is a total estimated capacity for 195 middle housing units, including future infill in low density zones. This is roughly 15%of the total unit capacity. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 32 AN 25-0002 EXHIBIT E-1/PAGE 33 OF 55 • There is a total estimated capacity for 476 housing units in higher density multi-dwelling properties. This is roughly 36%of the total unit capacity. • 28%of the total capacity(366 units) is found in units already approved for development as of the time of this analysis.Additional infill opportunities identified on large-lot residential and some commercial lands account for an estimated 8%of capacity. See the attached Appendix for full Buildable Land Inventory details and methodology. The following table summarizes the forecasted future unit need for Lake Oswego. These are the summarized results from Section V of this report, presented here for reference. FIGURE 6.2: SUMMARY OF FORECASTED FUTURE UNIT NEED(2043) TOTAL HOUSING UNITS Multi-Family Single Single 3 or 4- 5+Units Manuf. Boat,RV, Total %of Unit Type: Detached Attached 2-unit plex MFR home other temp Units Units Totals: 760 220 104 205 677 3 0 1,968 100% Percentage: 38.6% 11.2% 5.3% 10.4% 34.4% 0.1% 0.0% 100% New Units Needed Single Detached Homes 760 a) Townhomes 220 2 -4 Plex Units 309 oa c 3 5 or More Units 677 Manufactured Homes 3 00 OO OO 00 0`)'L O cb y0 Housing Units Sources: PSU Population Research Center,Census,Johnson Economics Comparison of Housing Need and Capacity There is a total forecasted need for nearly 2,000 units over the next 20 years based on the forecasted growth rate. This is greater than the estimated total capacity of 1,327 units. Figure 6.3 below presents a comparison of the BLI capacity for new housing units, compared to the estimate for new unit need by 2043. It breaks down need by general zoning category(LDR, MDR, HDR). • The projected demand for low-density housing types is higher than the remaining capacity by an estimated 192 units,or the equivalent of 38 acres of low density residential land. • The results find a deficit for medium-density housing of 249 units,or 31 acres. • The projected demand for high-density housing types is higher than the remaining capacity by an estimated 201 units,or the equivalent of 17 acres of high density residential land. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 33 AN 25-0002 EXHIBIT E-1/PAGE 34 OF 55 • These findings assume that under newly adopted state rules,3%of available buildable parcels in the LDR zone will be used for the various types of attached units(single-family attached townhomes,duplex—fourplex). FIGURE 6.3: COMPARISON OF FORECASTED FUTURE LAND NEED(2043)WITH AVAILABLE CAPACITY WITHIN CITY LIMITS SUPPLY DEMAND Buildable Land Growth Rate(0.05%) Zone& Plan Inventory- Surplus or(Deficit) Typical Housing Type New Unit Category Housing Unit Capacity Need(2043) Units Avg. Acres Units/ac. Low-Density Single-family detached; 655 847 (192) 5 (38) Some SF attached & plex Med-Density SF attached; Manufact. 195 444 (249) 8 (31) home; 2-4 plexes High-Density Multi-family apartments 476 677 (201) 12 (17) TOTALS: 1,327 1,968 (642) 7 (86) Sources: MIG,Johnson Economics • These findings point to a need for additional residential land in a range of zones over the 20-year planning period. Available inventory may meet an estimated 67% of total housing needs over the first half of the planning period, but a deficit is projected in the long run. • A range of potential housing policies and strategies will be considered in future development of a Housing Production Strategy by the City, including the ability of future plan areas to meet the need for different types of housing during the 20-year planning period. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 34 AN 25-0002 EXHIBIT E-1/PAGE 35 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: LAKE OSWEGO RESIDENTIAL BUILDABLE LANDS INVENTORY Methodology and Results I July 18, 2023 Introduction This memorandum provides a Residential Buildable Lands Inventory (BLI)for the City of Lake Oswego, which will support the creation of a Housing Needs Analysis (HNA) for the City.The methodology for this BLI is based on the 2018 Metro BLI1 with further refinements through review and discussions with City staff. The BLI is conducted in the following steps: • Step 1:Study Area and Land Classification. This step identifies the land in the City that is available for residential uses. • Step 2: Constraints to Development.This step identifies constraints such as natural resources, steep slopes, and utility easements that limit development. • Step 3: Development Status.This step assigns a "Development Status" of vacant, partially vacant, or developed tax lots in the inventory. • Step 4: Net Buildable Area and Unit Capacity.This step removes land for future rights-of-way and other land needs to provide a net number of acres for each City zoning designation,then estimates number of units and mix of unit type (single detached, multi-dwelling, middle housing) expected based on the results of Step 4. Step 1 : Study Area and Land Classification Study Area The study area for this analysis is shown in Figure 1.The study area includes land within the Lake Oswego City Limits.' 1 https://www.oregonmetro.gov/sites/default/files/2018/07/03/UGRAppendix2 Buildable Lands Inventory.pdf 2 A prior version of this Buildable Lands Inventory included unannexed land outside of the Lake Oswego City Limits which has a City Comprehensive Plan designation.This land has been removed from the study area following APPENDIX A: Buildable Lands Inventory Page 35 AN 25-0002 EXHIBIT E-1/PAGE 36 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Figure 1.Study Area Map s - s SW-STEPHENSONST , y D lessF RpKwY m o S�ONE �, --a O , O 0 P yy� 1 r-- MELROSE ST i \o f i44 '5, i COU/VTRy it X C1 Ug RD II \y� J J 21 a �4 KRUSE WAY O� SO P AAVE '~^ MEADOWS RD Q A. * 111 v i� ,, �r fie- -a OUN7q� SW BON ..R1 p y-�. %t c4 Q' % N, N BiVp > z Z Prim Rp 1 \�O o 71 0 0 740 cc { O cc z o ‘ u_i `� o m > 3 i' �QQ�R P�F�\E`�B\VD S�{ORE 8<V cvEV PEE -_._/` ' �fi tIlirr-Nir x ILO �T o 1- cc sow J o o! w OR 0 GREENTREE PO z� OS `eR Y 2 �.27 N3 Ov 0,00K 0R S BRGISn (FL...._Y ¢ cr I-- �ill9 Z C' m \�pSRD�`' O'rF O, �ile `1'G CHILDS RD �� S 41O _,1 n PO U AP O t . Miles OREGOd 0 0.25 0.5 1 Lake Oswego Buildable Lands Inventory I Study Area ,IF:—/i Study Area Lake Oswego City Limits Land Classification Parcels in the inventory are categorized based on their Comprehensive Plan and Zoning designations, property ownership, and other characteristics available in City/regional datasets.These classifications are described in Table 1 and shown in Figure 4. Comprehensive Plan and Zoning Districts The City of Lake Oswego's Comprehensive Plan Districts are described in Table 1.This is the primary basis for classifying lands into the categories of Residential, Mixed-Use, Nonresidential, and Publicly Owned/Other.Alignment with Zoning Districts are shown in the "Implementing Zones" column. Zoning discussion with the City's Housing Production Strategy Task Force and Oregon Department of Land Conservation and Development(DLCD)staff. APPENDIX A: Buildable Lands Inventory Page 36 AN 25-0002 EXHIBIT E-1/PAGE 37 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 and Comprehensive Plan map designations are shown in Figures 2 and 3, respectively. Overarching categories of land and how they are considered in this inventory are described on the pages following those figures. Table 1. City of Lake Oswego Comprehensive Plan and Zoning Districts Comprehensive Plan Implementing Zone Purpose Designations Zones R-15 Residential Low To provide lands for single-family residential development with R-10 densities ranging from two to five dwelling units per gross Density acre,and to provide lands for middle housing development. R-7.5 To provide lands for single-and multi-family residential development with densities ranging from seven to eight R-5 dwelling units per gross acre,and to provide lands for middle housing development. (1) The purpose of the R-DD zone is to assure that both single-family homes and middle housing are protected from noise,light,glare and reduction in privacy to the maximum extent possible during the area's transition to higher density residential use,to facilitate good architectural design and site planning which maintains residential choices of unit size,cost and other amenities and supports the economic feasibility of new construction R-DD Zone and development,and to assure protection and compatibility of all land uses,including commercial, residential,park,open space and historic sites. (2) The R-DD zone is intended for use in low density residential districts which are undergoing transition to increased densities,and which have scenic,historic, natural or residential features which should be preserved Residential and integrated with new development. Medium Density The FAN R-6 zone is intended to implement the land use policies of the First Addition Neighborhood Plan.The purpose of this zone is to ensure the design quality of proposed development in the neighborhood by: (1) Ensuring that proposed building designs are visually compatible with the character of existing structures,maintain adequate light and air between structures,and complement the neighborhood's architectural character. (2) Minimizing the visual impact of garages from the street, R-6 and to continue established alley uses and functions such as access to garages,off-street parking and trash removal. (3) Encouraging compatible and sensitive remodeling and renovation of existing residences. (4) Preserving the small-town character of the existing streetscape by allowing single-family and middle housing development that is human scale and pedestrian oriented. (5) Enhancing the natural environment of the neighborhood as one of the dominant characteristics. APPENDIX A: Buildable Lands Inventory Page 37 AN 25-0002 EXHIBIT E-1/PAGE 38 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Comprehensive Plan Implementing Zone Purpose Zones Designations (6) Preserving FAN's historical and architectural character by encouraging infill development that is compatible in design character to landmark structures on abutting lots. R-3 To provide lands for single-and multi-family residential Residential High R-2 development with densities of at least 12 dwelling units per Density R-0 gross acre,and to provide lands for middle housing development. R-W Neighborhood To provide land near residential areas for lower intensity Commercial(NC) commercial activities that primarily serve the surrounding neighborhood,smaller public facility uses,and residential uses. To provide lands for a mix of higher intensity commercial General activities supplying a broad range of goods and services to a Commercial(GC) market area approximately equal to the planning area identified in the Comprehensive Plan,as well as residential, public facilities,and cultural uses. To provide lands for commercial activities which meet the Highway needs of the traveling public as well as other highway-oriented Commercial(HC) retail uses which require access to a market area larger than the general commercial zone.This zone is not intended for regional shopping centers. To provide for a mix of uses requiring highway access and Mixed which provide a strong visual identity. Intended uses include Commerce(MC) local and regional convention type facilities,office uses and Commercial supporting retail uses. Office Campus To provide lands for major concentrations of regionally- (OC) oriented offices and employment opportunities for a market area larger than the planning area. Campus To provide a mix of clean,employee-intensive industries, Research and offices and high-density housing with associated services and Development retail commercial uses in locations supportive of mass transit (CR&D) and the regional transportation network. The purpose of the CI zone is to provide zoning regulations for Campus the Marylhurst Campus in order to provide land where Institutional(CI) permitted or conditional uses can be provided for in a unified campus setting. To implement Comprehensive Plan policies applicable to the East End General Downtown Town Center and to provide land for a mix of Commercial(EC) higher intensity commercial,residential,and cultural uses and public facilities that support a traditional downtown commercial core. Industrial Zone The purpose of the industrial zone is to provide land where (I) general industrial development can be located. Industrial To provide lands where primarily light industrial and Industrial Park employment uses can occur in a campus-like setting under Zone(IP) controls to make activities mutually compatible and also compatible with existing uses bordering the zone. West Lake Grove To provide zoning for townhome residential,commercial,and Zones mixed-use development in the West Lake Grove District that Mixed Use (Townhome accommodates lower intensity commercial,public facility and Residential- residential uses;and to provide a transition between the Lake WLG R-2.5, Grove Village Center and adjacent residential neighborhoods. APPENDIX A: Buildable Lands Inventory Page 38 AN 25-0002 EXHIBIT E-1/PAGE 39 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Comprehensive Plan Implementing Zone Purpose Zones Designations Residential These districts are intended to supply services to a market area Mixed Use-WLG that is comprised of adjacent neighborhoods. RMU,and Office- Commercial- WLG OC) To foster a mix of housing,retail and office uses in a central location proximate to downtown and along the Willamette River.Commercial uses are allowed but are not intended to dominate the character of the area. Retail uses are limited in size to complement the downtown core and facilitate the development of neighborhood-focused retail served by transit. The design and development standards are intended to create a unique Lake Oswego community.The emphasis of the zone is on residentially related uses. The Foothills Mixed Use code provisions are intended to: Foothills Mixed i. Connect the FMU area with downtown,Tryon Creek,Old Use(FMU) Town,the Willamette River and Oswego Lake; ii. Create a sustainable walkable neighborhood that possesses a thriving,active,and comfortable pedestrian environment; iii. Create visual interest through varied building heights that are urban in character,yet include detailed amenities at the ground floor that enhance the pedestrian environment; iv. Create high quality buildings,of long lasting materials,to promote the permanence of the community; v. Allow for a mix of residential uses,with urban density,and neighborhood scale retail and office development;and vi. Establish a standard of design that reinforces Lake Oswego's sense of place. The Public Functions(PF)zone is intended to specify Public Use Public Functions appropriate land uses and development standards for public (PF) uses,such as government services,education,and similar activities. The purposes of the Park and Natural Area(PNA)zone are to: i. Protect,preserve,conserve and enhance natural areas, greenways and parks; ii. Permit a wide range of passive and active recreational Park and Natural Park and Natural uses,and accessory uses,on property for the future use and Area(PNA) Area(PNA) enjoyment of the City and its residents; iii. Implement Statewide Planning Goal 8,Recreational Needs;and iv. Establish a master plan process for park planning and development. APPENDIX A: Buildable Lands Inventory Page 39 AN 25-0002 EXHIBIT E-1/PAGE 40 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Figure 2. City of Lake Oswego Zoning Designations Portland "Co- Cammurnr � 4 22 c College--Syl+.i�•• I:: , in Creek f ^`:a tural m- ® 1 sF n • • f a � R�7.5 - � -.-—_' ,. ilLom ---- Milwaukie „F_ � �; Heights Tigard � �f.' °e'_ P `�- 4 R_ya R-io l' v.' 4p HC' R-5 � r M d R-6 Oak Grove PIL R-ya q --t• a i Al. PNn PEC Bonita •sw eon Arts_ -�, 'try., I[d Rd ' Wi �� r• ''S PNA J . .4, ., t. '.:., •.1.tia,.et...41:ali - , IV. SW Durham r as R-yo .1R 7__n5 w5 ' w Concord R.7.5 Cook Pa. Trolley Trail Durham R.1e iiR �aVatln T�N / PNA � �� toy Clul, / GII R i5 t e Jer R-'S Esri,NASA,NGR,USGS,FEMA,Oregon Metro,Oregon State Parks,State of Oregon GEO,Esri.HERE, T iia later. Pro,. Rive rg rove Gamin,SafeGraph,Gyotechnolagies,Inc,METIINASA USES.Bureau of land Management,EPA,NPS, `f_ USDA Mary S.Young Lake Oswego- Buildable Lands Inventory-Zoning Districts Legend =Lake Oseego I ,HC ,F C R.6 LAYER l=I aNA C R-7.5 MI CI ®IP c-0 I l R-DD =Cl/oC 0 MC _I R-Lb ME POW =CRIkD 0 NC CI R-Ls O WLG OC ®PC =NC/R-It p R-2 =SLG R-2.5 MI EC/R-0 I=oc 1=I R-3 0 WIG RMu 0 0.25 0.5 1 0 GC 0 OCJLF3 0 R-s Miles APPENDIX A: Buildable Lands Inventory Page 40 AN 25-0002 EXHIBIT E-1/PAGE 41 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Figure 3. City of Lake Oswego Comprehensive Plan Designations Portland [,,,�___...iii,,, Community • o / .224 ` V Ceilege-sylva' Tryon Creek _ Y + State Natural • 14T 'p ! 4i � r-!.I i 1 PNA Milwaukle C }f}9rr `1.q., - R•�o.� ,/ Hefgh[s '7t °°WW1 _5 • 'F Tigard q 5 to RI I�� _ n �.. �J F q6 [J Oak Grove --. R S 1 Mc — — OCIR.3 R xo - 0EC Bonita. _•- fr. .��.. q.�a R-7.5 �'�n = SW Ronlu Rd `s'^ Cr"—i. �• R." P _.S PNA � j R_7.5 ... '. GC d L emi PNA• 1, N.7 )G — o I SW Durham cc i - • • R-7.5 Concord R•5 . �� 1 I',- ^-R"i5 Cl Trolley-Dail •,-.r. aR Durham lE Lk 4 ir Rno Aillii laiin j / ��' .� aly[lob J .R,� ,�, Iillt# I l -. ler PNA V R' Esri,NASA,NGA,USGS,FE MA,Oregon Metro,Oregon State Parks.State of Oregon GEO,Esri.HERE, Tualatin Rive rg rove r I Gamin,SaleGraph,Ggorechnolagies,Inc.METVNASA,V5G5,Bureau of Land Management,EPA,NOS, I USDA cMary5.Young Lake Oswego- Buildable Lands Inventory-Comprehensive Plan Designations Legend 0 Laie Os.vego 0 HE I]ONE I=12•7.5 I AYFR DIP MliR-0 iRW 1. CI U MC 0 It-AU =SA E CRS) I—I NC ©12-15 fi WLG OC L EC U NCR-0 =11-2 0 WLG R-2.5 EC/R.-0 U OC =R-3 =WLG RMFI L FMU O OCR--3 C R-s =I<alrotherverues> 0 0.25 0.5 1 =GC OPF OR-6 Miles Residential Land Residential Land is intended to meet the City's need for residential uses of various types. It includes land within the R-0, R-2, R-3, R-5, R-6, R-7.5, R-10, R-15, R-W, and WLG R-2.5 Comprehensive Plan designations, unless it meets the criteria for "Publicly Owned/Other" land. Mixed Use Land Mixed Use land can be developed to meet the City's residential and employment needs—sometimes within the same structure. It includes land within the WLG RMU, CI, CR&D, EC, FMU, GC, HC, NC, OC, and WLG OC Comprehensive Plan designations unless it meets the criteria for"Publicly Owned/Other" land. More information about the assumptions for future housing development in these areas is found later in this report. Nonresidential Land Nonresidential land includes employment land and "Publicly Owned/Other" land, as follows. This land is not included in the inventory. APPENDIX A: Buildable Lands Inventory Page 41 AN 25-0002 EXHIBIT E-1/PAGE 42 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Employment Land Employment Land is intended to meet the City's employment needs. It includes land within the MC and IP Comprehensive Plan designations unless it meets the criteria for"Public/Other" land. Publicly Owned/Other This category of land includes the SP, PF, and PNA designations, as well as land in the following categories: • Land in another Comprehensive Plan designation under City, County, State, Federal, or Special District Ownership • Land commonly held in Homeowners'Associations (HOA) common ownership, such as required open space. • Religious or fraternal properties (with the notable exception of Marylhurst University, which is accounted for in a separate line item). • Private driveways and ROW As noted above, properties in this category are generally not included in the inventory. However, some specific parcels in this category may be included in other classifications if information is available to suggest that they have development capacity for residential or employment uses. APPENDIX A: Buildable Lands Inventory Page 42 AN 25-0002 EXHIBIT E-1/PAGE 43 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Figure 4.BLI Land Classification •me niu'ja ^ IVIIIYYdU \ ,___ I _ Y- r�11 pq ld ltr 7. 1 , I I rii t U \1 \,� ! � 1itt. 1''J 7r� ...W. t cif! k T.> 1L ) -1iiiiL ai \ ip IIL %Alt 1�I ji ir111�'li Oakleo 1t � kw. ,„ 811 r►. , 1-49IFIAPI-AWISL 47,----6 44141--W"murFATirk A ... Ai 1 IL r...t . 7. li dpik.. <Aril_ 4 ., 1 4".N.,..., ,,wawa.. AMINC#Flig, ..• •I , PI, 00.010morp.--00_,/•40e 44000110%-ailwAt-'' 1 i ill i ....--0,4 seAV.46., +lip I, .�• 1.7f� wine��•tic�!.P " Li y ... OR l r 4-411 . OF 44:601:14/7. 4111 - I I--- ‘''' ‘..IIM ir�r .- + J,>3l i. AYAt, � - r1,� ...%� , - - iltri , :- , sit '- N ,' 1 EE-til r11 1 •- y r O---,A EOs t r r`'I- ��r 1 I I rov.I ��=`J' ,�11 t. C.-3 O y 6. . , I u !Miles e RFGO/ 0 1 0.5 1 S: 14y Lake Oswego Buildable Lands Inventory I Land Type ® Study Area Land Type Residential = Mixed Use Non-Residential = Public/Other APPENDIX A: Buildable Lands Inventory Page 43 AN 25-0002 EXHIBIT E-1/PAGE 44 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Step 2: Constraints to Development One of the primary tasks of this BLI is to identify land that is constrained by one or more of the following physical constraints. Constraints may overlap one another spatially—in this case the more restrictive constraint applies. Assumptions for these constraints are listed below—they have been discussed with City staff but are subject to further refinement, as needed. Constraints are described in Table 2 and shown on Figure 5. Table 2. Development Constraints Constraint Description Developable Portion Steep Slopes Slopes greater than 25%. Density transfer resulting in 5% Developable the construction of 1-2 dwelling units allowed. Water Bodies Includes lakes, streams, other areas of open water 0% Developable FEMA Flood Includes Zones A, AE, and X. Density transfer resulting 5% Developable Hazard Areas in the construction of 1-2 dwelling units allowed. Greenway Protects land along the Willamette River. Permitted Management uses include single-family dwellings and accessory 25% Developable Overlay District structures associated with such dwellings. Includes Resource Protection (Streams and Wetlands; RP), Resource Conservation (Tree Groves; RC), and Habitat Benefit Areas (Tree Groves; HBA). RP and RC areas are tightly regulated,while HBAs are areas with optional resource protection incentives rather than regulations. RP—50% Developable Sensitive Lands RP—Density transfer possible. RC—0% Developable RC- Mostly applies to public land and open space HBA—95% tracts,which are not developable (PF and PNA zones, Developable OS tracts in private developments,typically). HBA- Incentives, rather than regulations, are applied to protect natural resources. Usually does not limit development beyond a modest reduction. APPENDIX A: Buildable Lands Inventory Page 44 AN 25-0002 EXHIBIT E-1/PAGE 45 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Figure 5. Constraints to Development s 1 1', - ISW STEPHENSON S7 92 y ,H, 1_ 1 1 1 Ry?D m F x ®i <FssRq ,/PR PKwy I 1 11 oN-s FE - - m nn 'QO IRE .. s J ♦ O0 I I ° — o y sr ENO^ 111 �I _ _ +1• w` eb, ; -' 'xK M6ROsE ST ,, 4- €[ tea. rli'- r� i I4 /i ':.s G.ti¢g: "F *��tA 1 f c °A,7 le A'I' • ` iq, 1 rim `f '54_ I'`7 i��Ifa� i u R' ce 0B RDA `I'�� u� � e 4 %,% 4 2j� I. ��btu',=-_. � i i �� " �\ ylig p 6 KRUSE WAY_ O4 Imo ems=-tli �s"may / • A E MEADOWS RD Q �, Q-\ . VS�.tiv i e-..N�.•...•• Air., .t�� ,�I AVEE z 1 ^ l. D cr * ? �11t.ry�y►?yb >UNTq� � I x 1 SW-BONITA-RD�� a.0 q� QG R.1- h 4 .I011i,n"" t4.-„ BLVD .4a.e �-'-f y r+ �V.195 �'' , , ,,, , �� 7 •I, r EE d 1 1. lit* R��E`II�� , s o •. i. , PEE el 1, ► UpQ PK TSNORE g<Vp I,t�LN tSC' , Ji4A jl�- I rl Q9 �O OJT i'.. H ��--L ,O! 1 it `+y 5 a= = 6qG Ir_x 0 6REENTR EE(y0 �� 0E- FRr kL,4 . I O1 - I I - 0� y ;idi�A._ � : 1 of ia �T �� 1, '� Q +,` Y OvR�pOK - .. S BERGIS.RD �, %, J V� 1 1 1 4.c,E✓VAY 1 r (+1 w •• r• yi- - f 0 _ 1 ,L� n Q 4 J `s ` t f 11 RD Ste¢ --- RO �� \ �' 561 a.. '� m \\vos 5, SFhp 0 �R1 CHJLDS RD I 4,T, - I I_- 9 f ' ►.J (Miles � 0 - �PA. E G O S L Lake Oswego Buildable Lands Inventory I Environmental Constraints ® Study Area Major Roads Taxlots - Greenway Mgmt. Overlay District Slopes>25% FEMA Floodplain Sensitive Lands Overlay Habitat Benefit Areas {HBA) Resource Conservation Areas {RC) Resource Protection Areas(RP) APPENDIX A: Buildable Lands Inventory Page 45 AN 25-0002 EXHIBIT E-1/PAGE 46 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 The BLI includes the following information for each tax lot in the study area based on the location of constraints. • Acres—Total size of the tax lot • Constrained Acres—Acreage of constrained areas, per Table 2 • Unconstrained Acres—Total acres minus Constrained Acres The following table shows gross acres of land in each primary land classification in the Study Area. Table 2. Constrained and Unconstrained Acres by Land Type Land Type Total Acres Constrained Acres Unconstrained Acres Residential 3,530 802 2,784 Mixed Use 490 96 397 Non-Residential 172 21 150 Publicly Owned/Other 3,147 1,274 1,899 Total 7,339 2,193 5,230 Step 3: Development Status Each tax lot in the study area is categorized as Vacant, Partially Vacant, or Developed.The following data is used to determine development capacity of Study Area tax lots: • Tax assessor data, including Property Land Use Code, Improvement Value, and Land Value; • City inventory of outdoor areas, used in identifying public and commonly-held open spaces such as public facilities, parks and Homeowners Association-owned open spaces; • Metro Vacant Land Inventory derived annually from aerial photo information; • Review of recent aerial imagery; and • Discussion and review with City staff and the Housing Production Strategy(HPS)Task Force. Generally,vacant tax lots are assumed to have development capacity equal to the area unconstrained by natural resources, minus additional set-asides for future Right-of-Way and infrastructure (see Step 4). Developed parcels will be subject to further screening for redevelopment potential, described in later steps. Partially Vacant properties have an existing home but are large enough to subdivide based on criteria such as parcel size and allowable lot size, as described in this section. Residential Development Status • Vacant. Land that has a building improvement value of less than $20,000, as indicated by assessor data. All land outside of constrained areas is included in the developable area for these properties. • Vacant—Platted.Vacant land that is part of a platted but unbuilt subdivision is included in this category. Platted lots are assumed to contain one unit each unless other information is available (see Step 4). "Developable Acres" is shown as "0" because they are treated separately from other acreage in the inventory. APPENDIX A: Buildable Lands Inventory Page 46 AN 25-0002 EXHIBIT E-1/PAGE 47 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 • Partially Vacant.This designation is intended for parcels with an existing single-detached home that are large enough to further subdivide or develop to provide additional residential units. While middle housing and townhomes are allowed in many zones,this analysis uses the minimum lot size required for single-detached dwellings as the basis for the Partially Vacant designation, as follows: o Parcels greater than 5 times the minimum lot size:These lots are categorized as "Partially Vacant." %acre is assumed to remain for the existing home and the remaining unconstrained acreage is assumed to be developable. o Parcels between 2 and 5 times the minimum lot size: For lots with a building value below$200,000, %acre is assumed to remain for the existing home and the remaining unconstrained acreage is assumed to be developable. o Parcels less than 2 times the minimum lot size: These lots are categorized as "Developed" if improvement value is present or aerial photo review shows development. • Developed. All other residential land is designated Developed and has no developable area. Mixed Use Development Status Mixed Use development is subject to the same criteria as Residential Land. However, an additional screen is used to determine the likelihood of redevelopment of mixed-use parcels in Step 4, and assumptions about the residential/employment mix (see Error! Reference source not found.3) are a pplied. Mixed Use Residential Proportion Mixed use designations are assumed to develop partly with residential uses and partly with non- residential uses, per the following table. Table 3. Residential Portions of Mixed Use Tax Lots Mixed Use Residential Nonresidential Notes Designation Portion Portion West Lake Grove 50% 50% Townhomes only allowed with office use in the Residential Mixed Use same building (WLG RMU) West Lake Grove 25% 75% Residential limited to Boones Ferry Staging site, Office-Commercial per LOC 50.03.003.2.d. Residential limited to (WLG OC) Boones Ferry Staging Site. Percentage based on the size of this site in relation to the total size of district(see LOC 50.03.003.2.d for geography). Campus Institutional 50% 50% Multifamily development is limited to Subarea I (CI) of the Marylhurst Campus Zone. Campus Research & 30% 70% Assumption based on trends in this area Development(CR&D) East End Commercial 80% 20% (EC) Foothills Mixed Use 80% 20% Most similar to EC in terms of residential/non- (FMU) residential mix General Commercial 30% 70% (GC) APPENDIX A: Buildable Lands Inventory Page 47 AN 25-0002 EXHIBIT E-1/PAGE 48 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Highway Commercial 10% 90% (HC) Neighborhood 50% 50% Commercial (NC) Office Campus(OC) 30% 70% Summary The following table lists the number of tax lots,total and constrained acreage, and developable area by land type. A map summarizing development status is shown in Figure 6. Table 4. Developable Area of Residential and Mixed Use Tax Lots Gross Constrained Unconstrained Developable Land Type Acres Area (Acres) Area (Acres) Acres Residential 3,530 802 2,784 175 Mixed Use 490 96 397 14 Non-Residential 172 21 150 Public/Other 3,147 1,274 1,899 _ Total 7,339 2,193 5,230 189 APPENDIX A: Buildable Lands Inventory Page 48 AN 25-0002 EXHIBIT E-1/PAGE 49 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Figure 6. Development Status of Residential and Mixed Use Land 7 c\F . F , ,,—.141 _ . QP`rJ ri J!! 1P SW STEPHENSON ST. Phi •,, /0 , t y 1! , a . 1 �� c u, I j/ c �• `�, l . ` , , _ram 4 '1•if ,, \ �` 1 -.MELROSE ST I - ! r �( " z>1 I- `� ,, -- •-� - t(R�USSE WAYS 1 • Q� _ A AVE eQ { --j 1 MEADOWS RD e Y) '�">; _ _, - `�' • SW'BONITA RD��7. i EA�P� QG .�c,�� 0 NTAI/y BfVD- 1 IR o No ; °� w.g�VD_ • Ev��E N irl leap , �P �SNQRE.g-r - `` ��IrIP 6y SO/ •ti. lir�wIZO j III ! r_ ti r� S: `q Ali IF o GREENTREAD-- '' 2� 0S- GFR (p ' ''''' 't' (') -,I / ; r 1 Q ` Y L 10J��pO tuft-'9 - S BERGIS/RD�jr ,, , �+ O 11 0C) r i.j F, r,o` • , ,:el 1 ¢ ,Pi 1 S A F a +^ + CHIEDS RD ' .. 1:1.iig,-1.� J c,-2• `..�111� Oy? b N O` :_4..,10 tAt., nIllinin At �l1l1■ii ■ j O ozs 05 �1^ s ■� { �� ~� 1. 011/11;S .ram Lake Oswego Buildable Lands Inventory I Development Status Constraints Development Status Developed Partially Vacant Vacant ® Study Area APPENDIX A: Buildable Lands Inventory Page 49 AN 25-0002 EXHIBIT E-1/PAGE 50 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Step 4: Net Buildable Area and Unit Capacity This step of the BLI establishes the net buildable area of residential land in the Study Area by removing land needed for future right-of-way and other infrastructure set-asides, and by subtracting the non- residential portions of mixed-use zones. This step also accounts for platted subdivisions and other development with known approvals. Right of Way and Other Set-Asides When vacant land develops, land for roads, infrastructure, open space, and other needs reduce the gross available acres into a net developable acreage.The BLI uses the following assumptions to calculate net developable acreage for each parcel. • Residential Land: 20%of vacant properties, 0%of partially vacant properties • Mixed Use Land: 20%of vacant properties, 0%of partially vacant properties Assumed Density and Housing Mix Table 4 shows the assumed density for various zoning designations in the City of Lake Oswego.This information is based on the minimum lot sizes, likely densities, and staff assumptions based on recent projects and comparable zones, and parcel-by-parcel analysis.The proportion of units expected to be developed as Single Family Detached, Middle Housing, and Multi-Family are also shown. Table 4. Unit Density and Mix Assumptions Zoning %Single % Middle % Multi- Designation Notes Density Family Housing Family Detached Residential-Low Density Zones R-15 Min 15,000 sf lot area. 2.9 2.9 DU/AC net 95% 5% DU/AC net R-10 Min 10,000 sf lot area.4.3 4.3 du/ac net 95% 5% du/ac net. R-7.5 Min 7,500 sf lot area 5.8 5.8 du/ac 95% 5% du/ac net • Residential-Medium Density Zones • R-5 7-8 units per gross acre, 'r8 du/ac per code. 5,000 sf min lot size for 90% 5% 5% single-family. 1,500 for townhouse. • R-DD Buffer zone. 21 du/ac —8 du/ac 95% 5% theoretically possible. R-6 First Addition —7 du/ac Neighborhood (FAN) zone 6,000 sf lot area for 95% 5% Single-Family. 1,500 for townhouse. Residential-High Density Zones APPENDIX A: Buildable Lands Inventory Page 50 AN 25-0002 EXHIBIT E-1/PAGE 51 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Zoning %Single % Middle % Multi- Designation Notes Density Family Housing Family Detached R-3 At least 12 du/ac. (3,375 —12 du/ac 70% 10% 20% min per dwelling, or 12.9 du/ac).Townhomes up to 29 du/ac R-2 Min 12 du/ac 12 du/ac 60% 10% 30% R-0 Min 20 du/ac 20 du/ac 60% 10% 30% R-W ^'12 du/ac 60% 10% 30% Mixed Use Zones West Lake Table 50.03.002-2 notes "'5 du/ac Grove "R-5 density or greater" Residential - 50% 50% Mixed Use (WLG RMU) West Lake Table 50.03.002-2 notes 35 du/ac expected in Grove Office- "R-5 density or greater" BFR Staging Site, - 20% 80% Commercial nothing in other areas (WLG OC) Campus Table 50.03.002-2 notes Generally applies to Institutional "R-5 density or greater." Marylhurst University, (CI) Must have commercial on which is treated - - 100% ground floor. separately. Campus 54 du/ac for projects Research& that include residential Table 50.03.002-2 notes Development (-30%of the district, as - - 100% (CR&D) "R-5 density or greater" above) based on LU 19- 0041 East End Table 50.03.002-2 notes ^'56 du/ac Commercial "R-5 density or greater." o (EC) Must have commercial on - - 100/ ground floor. Foothills Table 50.03.002-2 notes ^'56 du/ac Mixed Use "R-5 density or greater" - - 100% (FMU) General Table 50.03.002-2 notes —27 du/ac based on Commercial "R-5 density or greater." Mercantile project (LU (GC) Must have commercial on 18-0026) ground floor. Residential o 0 not allowed "In the GC- 25/ 75/ zoned area in the vicinity of Jean Way and Boones Ferry Road." Highway Table 50.03.002-2 notes 8 du/ac(or R-5 density) Commercial "R-5 density or greater" for the 10%that may - - 100% (HC) develop as residential APPENDIX A: Buildable Lands Inventory Page 51 AN 25-0002 EXHIBIT E-1/PAGE 52 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Zoning %Single % Middle % Multi- Designation Notes Density Family Housing Family Detached Neighborhood Table 50.03.002-2 notes 67 du/ac for the 50% Commercial "R-5 density or greater." that may develop as (NC) Must have commercial on residential (based on LU - 50% 50% ground floor. _ 07-0031) Office Campus Table 50.03.002-2 notes 21 du/ac for the 50% (OC) "R-5 density or greater" that may develop as residential (based on - - 100% Galewood Commons Apartments) Summary of Vacant and Partially Vacant Land Table 5 summarizes net residential acreage for both residential and mixed-use land in the study area, and Table 6 shows the breakdown of capacity by zoning designation. Land with a known development approval has been removed and is accounted for in a later step. Table 5. Capacity of Residential and Mixed Use Land Developable Unit Capacity Land Type Acres Residential 174 705 Mixed Use 10 146 Non-Residential - - Public/Other - - Total 185 851 Table 6. Unit Capacity by Zoning Designation Land Type Unit Capacity Land Type Unit Capacity Residential Land 705 Mixed Use Land 146 EC/R-0 5 CR&D 14 R-0 2 EC 67 R-10 241 GC 12 R-10 Comp Plan 14 NC 23 R-15 131 NC/R-0 9 R-3 28 OC/R-3 5 R-5 116 R-0 8 R-7.5 149 WLG-OC 7 R-7.5 Comp Plan 3 WLG-R RMU 1 R-DD 12 R-W 1 WLG-R 2.5 3 Total Capacity: 851 Units APPENDIX A: Buildable Lands Inventory Page 52 AN 25-0002 EXHIBIT E-1/PAGE 53 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Table 7.Mix of Unit Capacity on Vacant and Partially Vacant Land Unit Capacity Single Family Middle Housing Multi-Family Land Type Units Units Units Residential 705 648 39 17 Mixed Use 146 5 23 118 Non-Residential - - - - Public/Other - - - - Total 851 653 62 136 Additional Capacity: In addition to the capacity listed above,the following categories of additional residential unit capacity have been identified.These are listed in Table 7, along with the expected mix of housing units. • Approved Development. Several parcels have land use approvals and/or are actively undergoing development. Where information about the unit capacity of these approvals is known,that information is used as future capacity(rather than an average assumption based on the zoning designation).These approvals are listed in Table 8. • Additional Middle Housing Capacity: Due to the City's middle housing legislation, most single family lots can be converted to duplexes or other middle housing types.The number of new units expected to be created through this process in the planning horizon is estimated at 1.5%of developed lots with single-detached dwellings outside of PUDs/easements.This totals 110 Units3. • Redevelopment of Commercial Land and Town Centers: An initial "strike price" analysis4 found very few properties that appear to be good candidates for redevelopment at$30/sf.Value per square foot for many properties along Kruse Way and in Town Centers is generally$50/sf or greater.There may be some opportunity to utilize parking areas for new residential uses, depending on the City's development code and many other factors,though additional commercial infill is also a possibility. For the purposes of this BLI, no redevelopment capacity is assumed. 3 A previous version of this analysis assumed 3%of all single detached units, regardless of whether they were located in a PUD. Feedback from stakeholders and DLCD was that this infill assumption seemed high and was unrealistic due to the prevalence of CC&Rs in Lake Oswego. "Strike Price" is a measure of land and building value per square foot at which a developer is assumed to be able to profitably redevelop a piece of property.The 2018 Metro BLI used a strike price of$12/sf for suburban jurisdictions—this analysis examine a more aggressive$30/sf and still found very few candidates for redevelopment. APPENDIX A: Buildable Lands Inventory Page 53 AN 25-0002 EXHIBIT E-1/PAGE 54 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Table 8. Parcels with Approved Development and Assumed Capacity Total Unit Single Family Middle Multi- Land Type Taxlot(s) Family Capacity Units Housing Units Units 21E18AB00400 Habitat for Humanity 21E18AB00300 Townhomes 21E18AB00200 23 0 23 0 [Link] 21E18AB00100 21E18AA00400 5400 Meadows [Link] 21E07BA00900 160 0 0 160 21E08AB02100 Twin Fir Road 2 2 0 0 21E08AB02000 The Boulder 21E07DD02300 [Link] 21E07DD02500 11 0 0 11 21E14DB02900 21E14 00300 21E14 00400 21E14 00401 21E14 00402 Marylhurst University 21E14 00403 170 0 0 170 21E14 00404 21E14 90000 21E14 900A1 21E14 900B2 Total 366 2 23 341 Table 9.Summary of Unit Capacity Total Unit Single Family Middle Housing Multi-Family Land Type Capacity Units Units Units Vacant & Partially 851 653 62 136 Vacant Land Approved 366 2 23 341 Developments Additional Middle Housing Infill 110 110 Total 1,327 655 195 477 Next Steps This inventory will inform the Housing Capacity Analysis and Housing Needs Assessment to provide a picture of the availability of residential land as it compares to the need of certain types of housing units in the next 20 years. It forms part of the factual basis for City policies to address any deficiencies in unit capacity. APPENDIX A: Buildable Lands Inventory Page 54 AN 25-0002 EXHIBIT E-1/PAGE 55 OF 55 oti�' E 0 Tree Removal Fee: / 1 n Date: I Certification Intake Staff: (Unincorporated Properties) °REGO\ As provided for in Resolution 19-59, Policies Discouraging Destruction of Natural Resources and Significant Trees Prior to Annexation, this application process allows unincorporated property owners to certify that proposed tree removal would qualify for a Lake Oswego Tree Removal Permit if the property were within the City's boundaries. This certification process does not constitute a permit granting approval of the tree removal.The property owner is responsible for obtaining any permits that may be required from the County with jurisdiction over the property. Applicant: /I/O W l Ir!a-WI S Phone:_SO 3 —616 - 51Y9 a _ ��//__ I I S l D E-mail (required): alai+ 5 t x k, /rrt Property Owner: /11& i— W �l/(c<.4�'Z S Phone: E-mail: l Address of Tree Removal Site: _t�d (0 L Q v (.kl R . 7705 5 Are any of the trees in the public right-of-way? CI Yes ANo Number, Size(Trunk Diameter), &Type of Tree(s) to be Removed:_S ft S lit 19(0. 4 Reason for Removal: P&ontr-iUeJ avx �f 1Itekit{r !.�t_•.rr I grant permission to City of ake Oswego employees to enter the above property to inspect the trees requested for removal. a e to rest "any dog(s)on inspection day. g ure of Property Owner(required) Signature of Applicant (required if different) El TYPE I Submit: (1) Site plan (81/2 x 11"), (2)Printed photograph of tree(s) YPE II Submit: (1) Site plan (8'/x 11"), (2)Type II Checklist, (3) Landscape plan (if applicable) To Do: (1) Mark tree(s) with ribbon O DEAD Submit: (1) Site plan (8'/x 11"), (2)Printed photograph of tree(s) Deciduous trees require a site visit by staff between November 1st and April 15th. To Do: Mark the tree(s) with ribbon if a site visit is required O HAZARDOUS Submit: (1) Site plan (8'/x 11"), (2)Printed photograph of tree, (3) Hazard Evaluation Form completed by a Tree Risk Assessor Qualified Arborist To Do: Mark tree(s) with ribbon if a site visit is required ❑ EMERGENCY Submit: (1) Site plan (81/x 11"), (2)Printed photographs of tree(s) and emergency condition O Invasive Submit (1) Site plan (81/x 11"), (2)Printed photograph of tree(s) that clearly identify each species of tree to be removed (e.g., overall photo of tree, close ups of leaves, bark or other identifying features—See Invasive Species Identification Guide) For City Staff Use Only Review Staff: Recognized Neighborhood Assoc.: Certification of Tree Removal: Would Qualify for Removal O Would Not Qualify for Removal O Withdrawn O Certification Date: (Save completed application in Planning Staff Resources/Trees/County Tree Removal Certifications) i-\forms\applctns\tree permit apps\County Tree Certification Form AN 25-0002 EXHIBIT E-2/PAGE 1 OF 6 O`ttL ) J TYPE II APPLICATION CHECKLIST V o Criteria for Issuance of a Type II Tree Cutting Permit GREGOtJ LOC 55.02.080 A Type II permit may only be approved if your application complies with all of the criteria in LOC 55.02.080. This checklist will assist you. City staff will review the application information and any comments received, visit the site, and then make a tentative decision. If more information is needed after the comment period has started,staff may then be required to restart the comment period,which will delay the initial decision. Please make sure to include all information and evidence to avoid this possibility. The City's Interactive Map can be used to create the required site plan(https://www.lakeoswego.city/lomap). 1. REASON FOR REMOVAL [LOC 55.02.080W] Reason for Removal: ❑ Outgrown Landscape Area ,landscape Plan/Improvement LI Development (check all that apply and provide additional information below or on a separate page if necessary) Tree Condition Describe Reason for Removal Tree Inches in (Good,Fair, (attach landscape plan and/or site plan for No. , Species* Diameter Poor) proposed development,as applicable) ( F /$fI EYle-roc aur) 01 th;Ire HAI� s hcio DP /B`tu<< DE 18lt `aad - D F6cod Real OR.L /5 I "Don't know the tree species? Enter "unknown deciduous"or"unknown evergreen"andttaff will attempt toridentif'the species at the site visit. Note: If a tree is an invasive species, use an"invasive tree removal application"for removal. 2. EROSION, SURFACE WATER, AND WINDBREAK IMPACTS jLOC 55.02.080j2)] Considering proposed mitigation measures,will removal have a significant negative impact on erosion,soil stability,flow of surface waters,protection of adjacent trees,or existing windbreaks? ❑Yes la-No Please explain your answer(e.g.,describe site topography, presence of surface waters,and whether the tree removal would expose nearby trees to wind throw): i k,cK. art; add i?7a f rrics I[eoi a 4- it c y 1,hex s rot ay iv cox4" ea) cf en u krin me t-f- Page 1 of 3 AN 25-0002 EXHIBIT E-2/PAGE 2 OF 6 SITE PLAN EXAMPLE FOR TREE REMOVAL CERTIFICATION A site plan is required as part of your tree removal certification request. The site plan must be on 8.5" x 11" size paper. Lakeviewoulevard — S ROW ROW _ .:... . _?. _(7_ . _ . _ . . . _ . _ . _ . _: _ . ITEMS TO INCLUDE ON YOUR SITE PLAN: I I 0 Your property lines 1 14" Maple 1 El Address of the Tree Removal Site I \ 14" Walnut I0 Public Right Of Way (Include Street Name) r. see haz�rd RI House or other Structures (Mark "Vacant" if none) i 18" MapleNir - ion form); El Creeks, Streams, or Lakes that run through or i border property Location, Diameter Size and Type of Trees • • proposed for removal; mark trees to be removed 1 I with an "X" 1 1 41 The site plan may be hand-drawn or you can print out a site plan using LOMaps at the following link: I Plikk123 Lakeview Blvd. www.lakeoswego.city/LOMap. In LOMaps, type your 1 I address in the search box in the upper right side of 10" Cherry the screen or use the zoom tool to zoom in on your Replant w/2 F property. Once you have zoomed in on your property, 1 1.5"red oaks click on "T"for tools at the top of the screen and I 116" Oak ----___G i select"print." ______Ci& Laurel Hedge (to be pruned) • — -------6—'--------- . o Staff Review Comments: AN 25-0002 EXHIBIT E-2/PAGE 3 OF 6 3. NEIGHBORHOOD CHARACTER OR AESTHETICS IMPACTS 1LOC 55.02.08053fl Of the trees listed in Section 1 that are greater than 15"diameter,and in good or fair health, and are not invasive species, are any of those trees significant to the neighborhood due to size, species or distinctive character? ❑ Yes KNo Please explain your answer(e.g.,is the tree one of the biggest in the neighborhood, is it an unusual or rare species, is the tree unique in appearance and distinctive in the neighborhood,etc.): spy u 5 ftsvrCocifte 3 crcizz - kef) scone q/red,cctifo. . Is the tree(s) proposed for removal the only remaining tree(s)on the property? ❑Yes 1,4 No Will the proposed tree removal alter distinctive features or the neighborhood skyline? ❑ Yes , No Please explain your answer(e.g.,is the tree prominently visible from areas within 300'of the site, will the tree removal create a significant change/gap to the treed skyline; photographs are strongly encouraged): rGes ari' CG -E«i'>F o' parl-4-y, LU k Cnitz,d l ce, write nos Iq' t r Vis/1' '4 rS ate vl Rv1� � � $tu�� s � � � a�� now �' Do any of the trees proposed for removal provide a visual screen between dissimilar zoning districts,for example between a residential and commercial zone? ❑ Yes ,IiNo Provide additional details, as needed,below: Are any trees proposed for removal located in a public right of way? ❑ Yes .1 JNo Note:The right-of-way is to the lot lines, not just the edge of the traveled area of the street/alley. Is more than 50%of a"stand"of tree proposed for removal?A"stand"is a group of trees that forms a visual and biological unit at least 15 feet in height with a contiguous crown width of at least 120 feet. ❑ Yes o Please explain your answer and describe the measurement methodology used to make this determination: Th s40440I o' -4r'c (-c) s cuty fl,f "A 6 ci rc / i`is Cc� "tirtS 2 4141tS a c e Hod - ± EXCEPTIONS TO LOC 55.02.08013) If you checked "yes" for any of the questions under Section 3, above, you are required to complete the Exceptions Section, below; if you answered "no"to all questions under Section 3, you may elect to skip to Section 4 or you can also address an Exception as an alternative argument for removal (in case the review body disagrees). Are any trees likely to or will continue to cause damage to a permanent,viable existing structure,or to infrastructure(e.g., utilities or paved landscape features, etc.)? ,-Yes ❑ No Please explain your answer and attach evidence, such as photographs, arborist report, letter from structural engineer, or other relevant information if such damage is not visible and it is not clear that the damage is being caused by the tree: I p 1114- .e,- ✓ rcd T I Go x4. C'�((UC woo f e4u h., u�t lC l ktt/C - I Page 2 of 3 AN 25-0002 EXHIBIT E-2/PAGE 4 OF 6 If yes,can the damage be remedied through reasonable maintenance or pruning? ❑Yes , 'No Please explain your answer and attach evidence,such as an arborist report: Cis a,et- c of o t%iL > i y-i 6044(c6 I`s? cusd heel (fti o -4 e Have reasonable alternatives to the tree removal been considered, such as alternative site plans or placement of structures or alternate landscaping designs that would lessen the impact on trees(the alternatives must continue to comply with other provisions of the Lake Oswego Code)? ❑Yes EiNo Please explain your answer and attach any alternative plans considered and describe why they cannot be used:e I 0 '+t&t-s a r- i I� uc� dµcm pcAc�d /ac kai s /7v�,�y a ct i ct k -- It i tat s kifn a lr�c,erei ct4141-c a-4"o ,,,,;;;4. 4. VIEW ENHANCEMENT jLOC 55.02.080 Is the proposed tree removal for the sole purpose of providing or enhancing views? ❑Yes gNo 5. COMPLIANCE WITH OTHER CODE SECTIONS [LOC 55.02.08055)] Is the proposed tree removal contrary to another section of the Lake Oswego Code(e.g.,Sensitive Lands requirement(LOC 50.05.010), prior condition of approval)? ❑Yes ei No If yes, please list code section and reasons: 6. MITIGATION [LOC 55.02.080(6) PURSUANT TO LOC 55.02.0841 Replacement trees are required for each tree removed. Minimum mitigation size: 1.5 inch caliper for deciduous and 6 feet tall for evergreen.The mitigation plan must be approved prior to permit issuance and those trees will be inspected in the field. Indicate if any of the following apply: .kr Native trees on the City's Master Plant List are proposed for removal. If so, mitigation trees must also be a native species. ❑ "Significant"trees (per Section 3 above)are proposed for removal for development purposes. If so,two mitigation trees are required for each significant tree removed. ❑ Removal is for the landscaping purpose of thinning to improve the health of othertrees.If so, mitigation shall be reduced to the extent there is insufficient space to replant elsewhere on the site and maintain tree health. Please explain below. ❑ There is insufficient space to plant one or more mitigation trees on-site. I request that staff verify this and allow replanting off-site on another property I own or to pay a fee into the Tree Fund in lieu of planting.Please explain below. List the proposed mitigation tree(s)species and show their locations,sizes,and species on the site plan. CS-) DavL9 hasf r`c -f-n►,Es /f 0 eG KGC , PeCit Oa I. 5 i K. d ia►if tas f-- fr,doe, e Page 3 of 3 AN 25-0002 EXHIBIT E-2/PAGE 5 OF 6 5.a0F i BUILD NEW ATTACHED Pow 1 G 50SQ1-T UNHEATED GARAGE UVYt 6 e Po wyid E..1.04 gz_ ..�� SITE PLAN NOTES \✓ TAX LOT NO.; 21EI8CCO2900 QI (E)MAIN HOUSE(1,550 SOFT) BLOCK: ROSEWOOD tN)PATIO COVER�311 SOFT):AND LOT: 51 l 0'f� - FALSE GABLE(Ib4 SOFT) SETBACKS: FRONT 25/ SIDES Q tv. : � CONNECT(N)DOWNSPOUT TO(E) I OFT/ REAR 30 �,- •y� """err - STORM WATER DRAIN. Z BLDG AREA: 2,305 SOFT 0� DL ck.03 ® (E)CONC FOOTPATH(90 sort) Q YEAR BUILT: 1948 / t� k I dun' MAP NO,: 21E1SCC p'�4' �� n ♦. SN,��J� ® (E)CONG. DRIVEWAY(1,013 SOFT) LU ZONE: RIO v r 1� gppr� I '�'et"^NA& ® (E)ACCESSORY BUILDING (466 SOFT) N UGB: METRO UGB . -hot {'p © (E)GARAGE(1,212 SOFT) f WATER DIST.' RIVERGROVE ,; • '.i • APPROX ELEVATION: 168.00 FT y'e s •:• Aa,�(Q;1 ® (E)ASHPHALT DRIVEWAY(1,982 SOFT) t YEAR BUILT: 1948 ,� • :N":: •.: •:Q �1 ,,Lr 0 pp.� ® (E)WATER METER © � �� ® (E)1,090 GALLON SEPTIC TANK AND A• :':©_• I6' ASSOCIATED SEWER DRAIN FIELD 0 1 ` ',, w, • . riI*' ® (E)DOWNSPOUT• . +r TREE NOTES i IDOQL+ • : :. ,^�':' :::a.'r, 1 \'I w0 tit J4? • '"�'•.\�m• / •' , . ` Yo • • .•• • • Plot+- (5 6 -ir.la e ves3 ado. *wes MI so R• e- - „- 0 \• •••: "•�:•, -4 o nt r treko cad-�ca of- ce sin �g �ar�ro •i : 1 ::: i! 0h :eir °)4$4 0 .•::::.: . . E ST, if*.1112,12.1_ .„-- -4.::- ci 2% go . ! l-, •i . /' N LIE-LEGEND 5!a .'T I BOUNDRY - m ) ��77 SETBACK - - °' rS TIa ROOF LINE I bare: 11 0 SITE PLAN WATER LINE W 3/14/2025 '-to _ GAS LINE G-- _ SEWER LINE S - SHEET FIRE SEP. —F 0'-1" = 30'0" ELEC. BERM. E AOl AN 25-0002 EXHIBIT E-2/PAGE 6 OF 6 MEMORANDUM V —! O GREGOC TO: Paul Espe, Associate Planner FROM: Daphne Cissell, Associate Planner Planning and Building Services SUBJECT: County Type II Tree Removal Certification at 6210 Lakeview Blvd, Lake Oswego, OR 97035 DATE: June 4, 2025 This letter is to review and certify whether, as provided for in City of Lake Oswego Resolution 19- 59, Policies Discouraging Destruction of Natural Resources and Significant Trees Prior to Annexation,the six trees removed at the above-referenced address would or would not have qualified for removal under the City Type II Tree Removal criteria per LOC 55.02.080 if the property were within the City's boundaries. Please note that, as stated above, these trees were removed prior to the submission of this certification application. Therefore, this analysis is based on what staff could determine from a site visit, current photographs, Google Street View images, and LOMap aerial photos (Exhibit 2), and the County Type II Tree Removal Certification application submitted by the applicant (Exhibit 1). LOC 55.02.080 outlines specific criteria that must be met for approval prior to tree removal. Staff will address these criteria below and indicate whether they would have been met or not, based on the available materials at the time of analysis. LOC 55.02.080(1): Reason for Removal. Criterion 1 determines what the reason for removal is: development, landscape plan, or an outgrown landscape area.The application states that the reason for removal is "Landscape Plan/Improvement."The application listed six trees that were removed, described as five Douglas- firs (Trees#1-#5) measuring 18" DBH, 18" DBH, 18" DBH,48" DBH, and 50" DBH, respectively, as well as one 15" DBH red oak (Tree#6).The existing condition of each of the trees (prior to removal)was not available. The site plan included with the submitted materials appears to illustrate the existing development for the subject property, with notes demarcating where the removals were located. Under Type II tree removal regulations, removal for landscaping purposes includes tree Respect. Excellence. Trust. _ `vi:::@. 503-635-0290 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY AN 25-0002 EXHIBIT E-3/PAGE 1 OF 15 Page 2 of 4 removal, along with additional elements, such as landscaping plants, walkways, patios, or other landscape features. The justification provided for Criterion 1 were the statements: "Encroached on driveway to shop" for Trees#1 - #5 and "New Driveway to New Garage" for Tree #6. These reasons given would more accurately fit into "Outgrown Landscape Area" for Trees #1 -#5, and "Development" for Tree #6, therefore that is the reasoning staff used to evaluate if these trees would have met Criterion 1. Based on the information provided, it is uncertain whether Trees #1 -#5 would have met the reason for removal under "Outgrown Landscape Area" because there is no evidence to what extent the encroachment was for all five of the trees along the existing driveway. There is evidence of some driveway damage in a Google street view image from 2019 (Exhibit 2, Page 5), but staff was unable to verify that all five of the trees were damaging the driveway to the extent that removal was necessary. Staff finds that the removal of Tree#6 would have met Criterion 1, for development, based on the new driveway that was installed. Due to the lack of specific information regarding the scope of damage to the existing driveway and whether the trees caused the damage, staff cannot determine whether the removal of Trees #1 -#5 would meet Criterion 1. LOC 55.02.080(2): Erosion,Surface Water, and Windbreak Impacts. Criterion 2 determines where there is a significant negative impact on erosion, soil stability,flow of surface waters, protection of adjacent trees, or existing windbreaks from the proposed removals. The applicant did not indicate any impacts, but merely stated: "There are additional trees nearby at neighbors [sic] property to continue habitat environment" in the explanation portion of the question (Exhibit 1, pg. 3). Using LOMap, staff was able to determine that the property is generally flat, contains no surface waters, and with no indication of soil stability concerns related to removal of trees. Following a site visit, the City's consulting arborist assessed the potential impacts of tree removals on adjacent trees and existing windbreaks. The evaluation found that the recent removals of the five Douglas-fir trees along the western property line has not resulted in significant negative impacts to the protection or health of adjacent trees. The neighboring property is heavily treed with mature Douglas-firs and those closest to the removed trees have long live crowns. Based on their crown structure, it doesn't appear that the removed trees were close enough to compete or provide shelter. The red oak was a stand-alone tree, so there are no impacts to other trees from that recent removal. Based on the materials available at the time of this analysis, and the on-site evaluation of the remaining trees on site, staff can determine that the removal of all six trees would have met Criterion 2. — Respect. Excellence. Trust. Service. AN 15-000I tAI'1I13I I t-S/I'AUt I VI- 10 Page 3 of 4 LOC 55.02.080(3): Neighborhood Character or Aesthetics Impacts. Criterion 3 addresses whether the tree removals would cause significant negative impacts to the neighborhood character and aesthetics by the removal of(a) a "significant tree," (b) altering the distinctive features of the neighborhood skyline as viewed from all public streets and properties within 300 ft. of the property, (c) removal of a visual screen between differing zones, (d) removal of street trees, or (e) removal of greater than 50%of a stand. If the trees are individually found to be significant, which is defined in the code, or found to meet the other sub-criterion,then the Exceptions portion of Criterion 3 must be met to be approved for removal. Staff finds that although the trees are all over 15" in diameter and non-invasive,there is no way to determine if all six of the trees met the "healthy" (which includes trees in either fair or good condition) portion of the definition of"significant."The applicant identified Trees #1 -#3 and Tree #6 as being in fair condition, and Trees#4 and #5 as being in good condition. However, this cannot be independently verified, as the trees have already been removed. Therefore, staff must assume they were all in at least fair condition and then also determine whether any of the trees meet the remaining criteria for significance—specifically, whether they are unique in size, species, or character within the context of the neighborhood. Following a site visit and a review of historical Google Street View imagery, staff observed that the removed trees appeared to have been of average size compared to other trees in the neighborhood, Douglas-fir trees are not of a unique species in this neighborhood, nor are oaks; the site is similar in character to others in the neighborhood. The surrounding neighborhood is dominated by mature Douglas-firs of similar size and many of the surrounding properties have smaller ornamental trees, similar to the red oak. Although all six trees were located on the perimeter of the lot, they did not appear to contribute to a defining feature of the neighborhood. Removal of these trees would not constitute removal of the last tree on the site; the remaining tree is listed as an 18" DBH walnut. Based on this assessment, it is reasonably possible that staff would likely not have deemed any of the six trees a "significant tree" on an individual basis per Criterion 3(a). Per Criterion 3(b), potential alterations to the neighborhood skyline or its distinctive visual character can only be evaluated by comparing current site photos with historical imagery from surrounding streets and properties. After reviewing the current condition of the site alongside Google street view images from prior years (Exhibit 2, pgs. 2-4), staff does not find that the removal of these trees resulted in a significant negative impact on the neighborhood skyline or overall aesthetics. There are groups of mature firs throughout the skyline in all directions and the neighboring site to the west is so dense with firs, removal of the on-site trees did not have a significant negative impact on the neighborhood skyline. Respect. Excellence. Trust. Service. AN 1 -0001 tAI1IbI I t-S/I'ACUt 3 VI- 10 Page 4 of 4 In addition, the trees were not providing screening between dissimilar zones per Criterion 3(c), they were not street trees per Criterion 3(d), and the removal of the six trees does not appear to be greater than 50%of a stand of trees per Criterion 3(e). Staff has determined that this application would have met Criterion 3, without having to address the Exception criterion. Conclusion and Recommendation: Overall, staff finds that the applicable Type II criteria would have been met for Criteria 2 and 3. However, additional information is necessary to determine compliance with Criterion 1, specifically regarding the justification for tree removal with the existing driveway repair on the west side of the property. That said, since the trees were not deemed significant, it could have been reasonably feasible to meet the requirements for Criterion 1. If the Council decides to approve the annexation request, staff recommends that the applicant be required to mitigate the removal of the six trees by replanting at a minimum 1:1 ratio, using a mix of native species of medium to large stature to complement the existing Douglas-firs and ornamental trees on the neighboring properties. All mitigation trees should be carefully planted to avoid conflicts with future development on the site. It is important to note that the county certification process is typically completed prior to any tree removal and does not constitute a full evaluation or approval of an application or permit for tree removal under the City of Lake Oswego's Tree Code provisions. Daphne Cissell Associate Planner ATTACHMENTS Exhibit 1 County Type II Tree Removal Certification application; Exhibit 2 Photos and Map Images Respect. Excellence. Trust. Service. AN 15-000I tA11It3I I t-S/I'AUt 4 Ur 10 Fos Tree Removal Fee: Date: I �� Certification Intake Staff: (Unincorporated Properties) OREGON As provided for in Resolution 19-59, Policies Discouraging Destruction of Natural Resources and Significant Trees Prior to Annexation, this application process allows unincorporated property owners to certify that proposed tree removal would qualify for a Lake Oswego Tree Removal Permit if the property were within the City's boundaries. This certification process does not constitute a permit granting approval of the tree removal.The property owner is responsible for obtaining any permits that may be required from the County with jurisdiction over the property. Applicant: lt/i01.tE Will(a.-kyt S Phone: SCE 3 —6(6 " FS1 a II 9 J E-mail (required): Ala c&j kfI&leo'f(.eo Property Owner: " f�' i l/ _kvt S Phone: E-mail: ! Address of Tree Removal Site: d (0 t C_l r i �1 U�• �7�3 5 Are any of the trees in the public right-of-way? 0 Yes KNo r /f Number, Size(Trunk Diameter), &Type of Tree(s)to be Removed: S S,�`f"� (04.14_ Reason for Removal: G c tar -Lc U�wp calciatrayiloi cowikke I grant permission to City of ake Oswego employees to enter the above property to inspect the trees requested for removal. a e to restr ' any dog(s)on inspection day. g ure of Property Owner(required) Signature of Applicant(required if different) TYPE I Submit: (1) Site plan (8%x 11"), (2) Printed photograph of tree(s) YPE II Submit: (1) Site plan (8%x 11"), (2)Type II Checklist, (3) Landscape plan (if applicable) To Do: (1) Mark tree(s)with ribbon O DEAD Submit: (1) Site plan (8%x 11"), (2)Printed photograph of tree(s) Deciduous trees require a site visit by staff between November 1St and April 15th. To Do: Mark the tree(s)with ribbon if a site visit is required O HAZARDOUS Submit: (1)Site plan (8%x 11"), (2) Printed photograph of tree, (3) Hazard Evaluation Form completed by a Tree Risk Assessor Qualified Arborist To Do: Mark tree(s)with ribbon if a site visit is required O EMERGENCY Submit: (1) Site plan (8%x 11"), (2) Printed photographs of tree(s) and emergency condition 0 Invasive Submit (1) Site plan (8%x 11"), (2) Printed photograph of tree(s)that dearly identify each species of tree to be removed (e.g., overall photo of tree, close ups of leaves, bark or other identifying features—See Invasive Species Identification Guide) For City Staff Use Only Review Staff: Recognized Neighborhood Assoc.: Certification of Tree Removal: Would Qualify for Removal ❑ Would Not Qualify for Removal 0 Withdrawn 0 Certification Date: _ (Save completed application in Planning Staff Resources/Trees/County Tree Removal Certifications) AN 25-0002 EXHIBIT E-3/PAGEP5,OFn1 emit apps1CountyTree Certification Form SITE PLAN EXAMPLE FOR TREE REMOVAL CERTIFICATION A site plan is required as part of your tree removal certification request. The site plan must be on 8.5" x 11" size paper. -----_-_Lakeview_Boulevard 1 ROW ROW ITEMS TO INCLUDE ON YOUR SITE PLAN: i r ® Your property lines i 14" Maple 1 El Address of the Tree Removal Site i 14" Walnut 1 © Public Right Of Way (Include Street Name) (hazard, see hazard ® House or other Structures (Mark "Vacant" if fnone 18" Maple \ ev ation form i Creeks, Streams, or Lakes that run through or 1 \j /\ 1 border property 0 Location, Diameter Size and Type of Trees proposed for removal; mark trees to be removed I I with an "X" 1 0 The site plan may be hand-drawn or you can print out a site plan using LOMaps at the following link: )23 Lakeview Blvd. www.lakeoswego.citylLOMap. In LOMaps, type your 1 I address in the search box in the upper right side of • Ii)" Cherry the screen or use the zoom tool to zoom in on your Replant w/2 ! property. Once you have zoomed in on your property, i 1.5"red oaks click on "T"for tools at the top of the screen and —.lip. X6" Oak select "print." 1 \ 1 r r Laurel Hedge (to be pruned)_ • _ • _ ' _ • a • Staff Review Comments: AN 25-0002 EXHIBIT E-3/PAGE 6 OF 15 o F�s� ,., ' TYPE II APPLICATION CHECKLIST V �� 0 Criteria for Issuance of a Type ll Tree Cutting Permit LOC 55.02.080 OREGOr� A Type II permit may only be approved if your application complies with all of the criteria in LOC 55.02.080. This checklist will assist you. City staff will review the application information and any comments received, visit the site, and then make a tentative decision. If more information is needed after the comment period has started, staff may then be required to restart the comment period, which will delay the initial decision. Please make sure to include all information and evidence to avoid this possibility. The City's Interactive Map can be used to create the required site plan (https://www.lakeoswego.city/lomap). 1. REASON FOR REMOVAL [LOC 55.02.080(1)j Reason for Removal: ❑ Outgrown Landscape Area landscape Plan/Improvement ❑ Development (check all that apply and provide additional information below or on a separate page if necessary) Tree Condition Describe Reason for Removal Tree Inches in (Good, Fair, (attach landscape plan and/or site plan for No. Species* Diameter Poor) proposed development, as applicable) ' p is 11 r � roct 014 t{;t c wa". a �� -iv sGl°�0 DF 4 Fa{r 3 DF l8`t iir I 600d vi 5 DP 50,k cExil o d,x Str r. tritCc. lit Di dye ktry -, Atii 1 19 *Don't know the tree species? Enter"unknown deciduous"or"unknown evergreen"and ttaff will attempt tcridentify�the species at the site visit. Note: If a tree is an invasive species, use an "invasive tree removal application"for removal. 2. EROSION, SURFACE WATER, AND WINDBREAK IMPACTS [LOC 55.02.080(2)] Considering proposed mitigation measures, will removal have a significant negative impact on erosion, soil stability,flow of surface waters,protection of adjacent trees, or existing windbreaks? ❑Yes 'No Please explain your answer(e.g., describe site topography, presence of surface waters, and whether the tree removal would expose nearby trees to wind throw): That a roc aol` Aros4a ff -I-114.5 a cot bc.• a 4- n c` ii hMr f rot 07 m co*(iK e 1Q1) C# eHukcnYhtn`f" Page 1 of 3 AN 25-0002 EXHIBIT E-3/PAGE 7 OF 15 3. NEIGHBORHOOD CHARACTER OR AESTHETICS IMPACTS [LOC 55.02.080(3)] Of the trees listed in Section 1 that are greater than 15"diameter, and in good or fair health,and are not invasive species,are any of those trees significant to the neighborhood due to size,species or distinctive character? ❑Yes 'No Please explain your answer(e.g., is the tree one of the biggest in the neighborhood, is it an unusual or rare species, is the tree unique in appearance and distinctive in the neighborhood, etc.): s i Svr(ov d3 arm_ -6 etio *oHe Afez x a.K&-C. Is the tree(s) proposed for removal the only remaining tree(s) on the property? ❑Yes No Will the proposed tree removal alter distinctive features or the neighborhood skyline? ❑ Yes , No Please explain your answer(e.g., is the tree prominently visible from areas within 300'of the site,will the tree removal create a significant change/gap to the treed skyline; photographs are strongly encouraged): Trtpes cut cd- -f rowt-E c pay-cd-y. La IC. r d kr) CC tce( ts u IS rbf I f mid ►to uJ .44 u -y Do any of the trees proposed for removal provide a visual screen between dissimilar zoning districts,for example between a residential and commercial zone? ❑Yes , No Provide additional details, as needed, below: Are any trees proposed for removal located in a public right of way? ❑ Yes .- No Note:The right-of-way is to the lot lines, not just the edge of the traveled area of the street/alley. Is more than 50%of a "stand"of tree proposed for removal?A"stand"is a group of trees that forms a visual and biological unit at least 15 feet in height with a contiguous crown width of at least 120 feet. ❑ Yes ....k1 o Please explain your answer and describe the measurement methodology used to make this determination: Thit S I c seftoicts cec rCJs s arts/ Yt t 5h ha it peaks asap --ks e -fr ocs arc cf -1-44 end o EXCEPTIONS TO LOC 55.02.080(3) If you checked "yes" for any of the questions under Section 3, above, you are required to complete the Exceptions Section, below; if you answered "no"to all questions under Section 3, you may elect to skip to Section 4 or you can also address an Exception as an alternative argument for removal (in case the review body disagrees). Are any trees likely to or will continue to cause damage to a permanent,viable existing structure, or to infrastructure(e.g.,utilities or paved landscape features,etc.)? . Yes ❑ No Please explain your answer and attach evidence, such as photographs, arborist report, letter from structural engineer, or other relevant information if such damage is not visible and it is not clear that the damage is being caused by the tree: ` y i{,Yt, U�too{r Goxc [ d ri ttt Wt{y [ rat i wed ctIAA Page 2 of 3 AN 25-0002 EXHIBIT E-3/PAGE 8 OF 15 if yes, can the damage be remedied through reasonable maintenance or pruning? ❑Yes ,eNo Please explain your answer and attach evidence, such as an arborist report: tt-e, c art G Uf O( G I `f- would 60k coot is.f t -- f Will 1 7-v c t J keec rf-tt f24 r , Have reasonable alternatives to the tree removal been considered, such as alternative site plans or placement of structures or alternate landscaping designs that would lessen the impact on trees the alternatives must continue to comply with other provisions of the Lake Oswego Code)? ❑ Yes .INo Please explain your answer and attach any alternative plans considered and describe why they cannot be used: Tk ` -s art Ipt. locricpaci c-Jac kaw -s ou vv-i cue) a • cc-peel-Pt adilert Lo k auk 4. VIEW ENHANCEMENT [LOC 55.02.080(4)] Is the proposed tree removal for the sole purpose of providing or enhancing views? ❑ Yes No 5. COMPLIANCE WITH OTHER CODE SECTIONS [LOC 55.02.080(5)] Is the proposed tree removal contrary to another section of the Lake Oswego Code (e.g.,Sensitive Lands requirement(LOC 50.05.010), prior condition of approval)? ❑ Yes o If yes, please list code section and reasons: 6. MITIGATION [LOC 55.02.080(6) PURSUANT TO LOC 55.02.084] Replacement trees are required for each tree removed. Minimum mitigation size: 1.5 inch caliper for deciduous and 6 feet tall for evergreen.The mitigation plan must be approved prior to permit issuance and those trees will be inspected in the field. Indicate if any of the following apply: 'Native trees on the City's Master Plant List are proposed for removal. If so, mitigation trees must also be a native species. ❑ "Significant" trees(per Section 3 above)are proposed for removal for development purposes. If so,two mitigation trees are required for each significant tree removed. ❑ Removal is for the landscaping purpose of thinning to improve the health of other trees. If so, mitigation shall be reduced to the extent there is insufficient space to replant elsewhere on the site and maintain tree health. Please explain below. ❑ There is insufficient space to plant one or more mitigation trees on-site. I request that staff verify this and allow replanting off-site on another property I own or to pay a fee into the Tree Fund in lieu of planting. Please explain below. List the proposed mitigation tree(s)species and show their locations, sizes,and species on the site plan. C5- ) 1)6'06 6.5 f is -t-rves +0( 1i ov Cacf f xq. I ri t _ t Pecil oa k. +reit J, 5 in. o� rurnt rA) cad- -EGIRct 1 irte Page 3 of 3 AN 25-0002 EXHIBIT E-3/PAGE 9 OF 15 • COPE BUILD NEW ATTACHED • 5S05QFT UNHEATED GARAGE , Q�� L avvt s„ r. SITE PLAN NOTES TAX LOT NO.: 21Ef5CCO2900 10 (E)MAIN HOUSE(1,550 SOFT) - BLOCK ROSEWOOD CW PATIO GOVER(311 SOFT)AND LOT: 51 �'� FALSE GABLE(I64 SOFT) SETBACKS: FRONT 25/ SIDES _ CONNECT(N)DOWNSPOUT TO(E) - I OFT/ REAR 30 4° � © STORM WATER DRAIN. Z BLDG AREA: 2,305 SOFT �� u 1 YEAR BUILT: 1948 �$� lu►�..'. P 'Tt!] , (E�ONG FdOTPATi-I(90 SOFT) 0- fC. vI y ♦, \ (E)CONC. DRIVEWAY (1,6I3 SOFT) W MAP NO.: 2EEIBGG � Ia' �.�.. '� F_ ,' ® F ZONE: R10 , 3<', r�$ O�G vrNS (E)ACCESSORY BUILDING (456 SOFT) 1 UGBY METRO UGB WATER DIST.: RIVERGROVE ' r b (J (E)GARAGE 0,212 SOFT) APPROX ELEVATION: I65.00 FT �'� •• • , /i4,Nc,, 1' ( (E)ASHPI-4ALT DRIVEWAY(1,982 SOFT) I TEAR BUILT: 1945 �� .. .�:: •{�) a� `�r` 04. ® (E)WATER METER J� �::; Mk) /�`�' �.`'. rick {C,� _g+ ® (E)1,000 GALLON SEPTIC TANK AND ' . '•r r 1.6,0 w 1 ASSOCIATED SEWER DRAIN FIELD �( s. ;, ,;:. ©► .1 �J�l��,. �e l b ® (E)DOWNSPOUT cif, t ifs 1111Pitlit . r . .,• ?,,,4 •••)• ;'�I�Isthii a TREE NOTES IL1 Q� - tt� : �:. �' .' : t\WALNUT -18"DIA rwvfd' \ 1'' �:�. : �:::�.,. .. " . ?kawf (5), 6 tag evu� c&vt -hies 2se,��; 11 1�: ; :j::. �,c, r� i u1�f i= caf+`v rcXnvroe c•-oi mY :::.2::: •::..:;,: • • . :.": cl-,- -i--ifitc!‹ 1 i rI w NN:irt1 �- Niv._ ; iP- / . . • LINE LEGEND ,rBOUNDRY - rc m ® Twe- SETBACK - - m N Aly,l j / RD R LINE DATE `�" S WATER UNE UJ j4 GAS LINE G 311 4 12 0 2 5 GISITE PLAN SEWER UNE 5 - ate: FIRE SEP. F 0'-I° = 30 0" ELEC. SERV. E 401 AN 25-0002 EXHIBIT E-3/PAGE 10 OF 15 AN 25-0002 EXHIBIT E-3/PAGE 11 OF 15 AN 25-0002 EXHIBIT E-3/PAGE 12 OF 15 AN 25-0002 EXHIBIT E-3/PAGE 13 OF 15 AN 25-0002 EXHIBIT E-3/PAGE 14 OF 15 AN 25-0002 EXHIBIT E-3/PAGE 15 OF 15 OTC LA Of Department of Planning and Building Services - )1\ 380 A Avenue / I } Post Office Box 369 Lake Oswego, OR 97034 503-635-0290 www•ci.oswego.or.us POLICIES DISCOURAGING DESTRUCTION OF NATURAL RESOURCES AND SIGNIFICANT TREES PRIOR TO ANNEXATION This handout addresses basic questions about the City of Lake Oswego's policies on altering natural resources and removing trees prior to annexation. These policies were adopted by the City Council in 2004 and were updated in 2019. The full text of the policies is available online at www.lakeoswego.cityfplanning/annexation-program-application. If you have questions, please contact the Planning and Building Services Department at 503-635-0290. WHY DOES THE CITY HAVE THESE POLICIES?The policies are to encourage property owners interested in applying for annexation to the City to preserve and protect natural resources and significant trees on their property. The City has a protection program for hundreds of acres of stream corridors, wetlands and tree groves within the City and its potential annexation area (LOC 50.05.010 and 50.07.004.8). Properties that are not yet annexed to the City are under the jurisdiction of a county (Clackamas, Multnomah, or Washington County). Because the City has a higher level of protection for natural resources and trees than county jurisdictions, it is the community's interest to encourage all property owners within the potential annexation area to protect these resources as if the property was annexed to the City.Alterations to natural resources can contribute to erosion and water quality issues resulting in degradation of wildlife habitat, siltation buildup in waterways, and potential damage to property. When this occurs and properties are annexed, City taxpayers may become obligated to fund programs and projects to repair public infrastructure and restore the natural environment. Removal of significant trees negatively affects the appearance and livability of the community, which can negatively impact property values, as well. WHO DO THESE POLICIES APPLY TO?They apply to property owners that apply for annexation to Lake Oswego. Thus, any "unincorporated property" within Lake Oswego's potential annexation area could be affected. "Unincorporated properties" are not yet annexed to the City and are under county jurisdiction. Please contact the Planning and Building Services Department for inquiries about a specific property. Note: the policies apply to annexations that are initiated or requested by the owners of the property to be annexed and that require consent of owners or electors under ORS Chapter 222. It does not apply to annexations by election under ORS Chapters 222 or 195 or to non-consensual "island" annexations. WHAT HAPPENS IF I ALTER A STREAM OR WETLAND OR REMOVE TREES FROM MY PROPERTY?The City Council may delay annexation of your property for up to three years, require you to pay restoration fees, require you to plant and maintain resource and/or tree mitigation for three years prior to annexation and two years Page 1 of 2 - 1/06/2020 P:\Planning Staff Resources\Counter Handouts and Code Sections\Current Handouts\Natural Resource Policy AN 25-0002 EXHIBIT E-4/PAGE 1 OF 2 after annexation, and require posting of a maintenance bond or cash deposit during the two-year period if the City finds that, within 10 years before the date your annexation request was filed, any of the following occurred: 1. A tree from the list below was removed from your property: Species Common Name Size.(DBH*1 Quercus garryana Oregon white oak Pseudotsuga Douglas-fir 18" Thuja plicata Western red cedar 12" Pinus Ponderosa Ponderosa pine 12" Taxus Brevifolius Western Yew 06" Other deciduous trees 20" Other evergreen trees 18" "DBH is the diameter of the tree measured at 4.5 feet above the ground level. 2. A natural resource inventoried by the City has been removed or otherwise degraded beyond that which would have been clearly permitted under the City natural resource regulations; or 3. A natural resource not inventoried by the City has otherwise been degraded in violation of any state or federal law or regulation. ARE THERE EXCEPTIONS? Yes. Removal of trees that are not of a size and species listed above and are not located within an inventoried natural resource are exempt. In addition, tree removal that would have met the City of Lake Oswego's tree removal permit criteria under the City's Tree Code (Lake Oswego Code Chapter 55) is exempt. For example, if a tree of a size and species listed above were removed because it was dead or hazardous and the property owner provided sufficient documentation with the annexation petition that the tree would have qualified for a dead or hazardous tree permit, then the policies would not apply. Any person who owns unincorporated property and who proposes to remove a tree may request certification by City staff that the proposed removal would qualify for a Lake Oswego Tree Removal Permit as if the property were already annexed to the City. This certification would then satisfy the City requirement that a property owner show that the removal would have been permitted under the City's Tree Code when they apply to annex. The City charges a fee to cover administrative costs for reviewing the certification request. For information on tree removal permits in the City go to www.lakeoswego.cityLtrees.To check whether there are any City-inventoried natural resources (Sensitive Lands) on your property go to www.Iakeoswego.city(LOMap, click on the "Planning" layer in the legend, and check "Sensitive Lands." Please note that it is the property owner's responsibility to comply with any county, state or federal regulations that may apply. ISN'T THE CITY IMPOSING REGULATIONS ON PROPERTIES THAT ARE NOT UNDER ITS JURISDICTION? No. These are policies that only apply if a property owner files an application to annex their property to the City. A decision to annex a property is at the discretion of the City Council. Until annexed to the City, an unincorporated property is subject to the regulations of the applicable county jurisdiction and any applicable state or federal laws. Page 2 of 2 - 1/06/2020 P:\Planning Staff Resources\Counter Handouts and Code Sections\Current Handouts\Natural Resource Policy AN 25-0002 EXHIBIT E-4/PAGE 2 OF 2 9.3 O F �s� COUNCIL REPORT CI CEGO� Subject: Ordinance 2963, Annexing property at 16284 Bonaire Avenue (AN 25-0004) Report Date: June 11, 2025 Staff Member: Paul Espe, Associate Planner Meeting Date: July 1, 2025 Department: Planning and Building Services Action Required Advisory Board/Commission Recommendation ❑ Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑X Ordinance ❑ None Forwarded ❑ Resolution ❑ Not Applicable ❑ Information Only Comments: This annexation is being processed as a ❑ Council Direction public hearing (not expedited decision) under Metro ❑X Consent Agenda Code 3.09.050(A-D). Staff Recommendation: Enact Ordinance 2963. Recommended Language for Motion: Move to enact Ordinance 2963. Project/ Issue Relates To: Annexation of residential property to the City. Issue before Council (Highlight Policy Question): ❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑X Not Applicable EXECUTIVE SUMMARY/BACKGROUND The proposed annexation is owner-initiated and will result in the addition of approximately 0.42 acres of residential land to the City. This Council Report describes the reasons for the annexation and provides basic background information. This annexation will result in property that will be zoned R-7.5 as designated in the Comprehensive Plan shown in Attachment A. The criteria for approving annexations and findings in support of this annexation are included in Attachment B of Exhibit A-1 (Ordinance 2963). Applicant/Property Owners: Jay and Julie Cech Location/Size: The subject property consists of 0.42 acres (18,295 square feet) and is located on the East side of Bonaire Avenue, approximately 150 feet north of the intersection of Bonaire Avenue and Madrona Street. Respect. Excel'ence. Trust. Service, 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 -- 1 `,� dge Rd 5 aka i - - _ ; Site Map - i i L__ r — ,.. -- 1r r ~wEirvnnn. a 1 -----i Proposed r--- el Annexation 1--a r -� - t 16 4 �-- -'m L Madrona St. �' - 1 i f 1 SA' .•]ad Ana—— I S -• ' ' .. [ ..____ i I e 11-1 I s `evi11e ve (� e 1 - ` 1 i 1 I — o° 'te 1 , ,/\ es uns.eLTh o C L , � 1 1 Existing Land Use:Tax Map/Lot 21E07DC03100 is occupied by a single-family dwelling and takes access from Bonaire Avenue. Neighborhood: The property is located within the Lake Forest Neighborhood Association. Purpose of Annexation:The property owners initiated the annexation to connect to City sanitary services and expand the existing single-family dwelling. Plan and Zone Designation: The subject property is currently under Clackamas County's jurisdiction and zoned Low Density Residential (R-8.5). It is designated R-7.5, Low Density Residential on the City of Lake Oswego Comprehensive Plan Map and will be zoned R-7.5 upon annexation. Development Potential:This is a 0.42-acre parcel. Based on the size and shape of the parcel, the property can be divided into two parcels and developed to the density allowed under the middle housing standards. Sensitive Lands: There are no Sensitive Lands designated on the property. Statewide Goal 10 and Complete Neighborhoods and Housing Statewide Goal 10 Housing City Comprehensive Plan Complete Neighborhoods and Housing Chapter Statewide Planning Goal 10 (and the Complete Neighborhoods and Housing chapter in the City's Comprehensive Plan) ensures the opportunity to provide adequate numbers of needed housing units, the efficient use of buildable land within urban growth boundaries, and to provide greater certainty in the development process so as to reduce housing costs. Respect. Excellence. Trust. Service• 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 Staff has provided findings (Exhibit A-1, Attachment B) that the proposed annexation and designation of City R-7.5 zoning are consistent with the Comprehensive Plan and Map, and will help to meet the City's housing needs as identified by the Housing Needs Analysis (HNA). The proposal would provide the opportunity for needed housing as identified in the HNA, is consistent with the Comprehensive Plan, and therefore complies with Goal 10. (See Attachment B for the complete findings under Goal 10). Sewer and Water Service: Sanitary sewer service is available from an 8-inch sewer main located in Bonaire Avenue along the site frontage. This sanitary sewer main was recently constructed with two land use partition projects in the City of Lake Oswego (LU 17-0059 and LU 17-0060). Note: Engineering Staff has preliminarily commented by memo on the development standards that would apply for the possible future property development, which will be prepared as a part of the preapplication conference for any future property development. Water: The property is served by the Lake Grove Water District. There is a Lake Grove Water District (LGWD) water main located in Bonaire Avenue along the site frontage. The nearest existing fire hydrant is located approximately 175 feet south of the site at the southeast quadrant of the intersection of Bonaire Avenue/Madrona Street. This property will be withdrawn from the LGWD and will be served by the City. Surface Water Management: Once the property is annexed, the territory will be subject to the City's stormwater management regulations. Any new development will be subject to these provisions, which ensure that new development does not have an adverse effect on adjoining properties and does not overburden the City stormwater system. Service Districts: Upon annexation and by operation of ORS 222.520, the property will be withdrawn from the Lake Grove Fire District#57 (per July 2003 urban service agreement; no bonded debt), the LGWD (no bonded debt), the Surface Water Management Agency of Clackamas County (no bonded debt), and the Clackamas County Enhanced Sheriff's Patrol District (no bonded dept), but will remain in the Lake Grove Park District (per the July 2003 urban service agreement), and the Library District of Clackamas County (per the 2009 County IGA) (no bonded debts for these Districts). Transportation:The City's Transportation System Plan (TSP) implements the multi-modal transportation system that will meet the needs of the city for a 20-year planning horizon. Bonaire Avenue is identified as a local street in the City's Transportation System Plan. Although the portion of this roadway along the frontage of this property has been annexed to the City, it remains under the maintenance jurisdiction of Clackamas County. The road maintenance jurisdiction will not be transferred to the City until it is appropriate to complete a road transfer process with the County in the future. Tri-Met Line 37 provides service on Boones Ferry Road to the transfer station in the City of Tualatin. The draft findings provided in Attachment B of Exhibit A-1 conclude that the proposed annexation complies with all applicable State statutes and Metro code requirements. FISCAL IMPACT The estimated assessed value of the residential property is $290,175. The estimated tax revenue after the lot is annexed is $750.00. Respect. Excel'ence. Trust. Service, 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 4 RECOMMENDATION Approve AN 25-0004 (Ordinance 2963). EXHIBITS A. Draft Ordinance A-1 Ordinance 2963 (Draft 06/11/25) Attachment A: Map of Proposed Annexation, 05/15/25 Attachment B: Criteria, Findings, Conclusion, and Effective Date, 06/11/25 B. Minutes None. C. Staff Reports None. D. Graphics/Plans None. E. Written Materials E-1 Housing Needs Analysis 2023 (Oregon Statewide Planning Goal 10; Comprehensive Plan excerpt, 09/21/23) (due to size, use link below to view this exhibit) LINK TO PUBLIC RECORDS FOLDER FOR THIS CASE https://www.ci.oswego.or.us/WebLink/Browse.aspx?id=2954409&repo=CityOfLakeOswego Respect. Excel'ence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY ORDINANCE 2963 AN ORDINANCE ANNEXING TO THE CITY OF LAKE OSWEGO ONE PARCEL, CONSISTING OF 0.42 ACRES AT 16284 BONAIRE AVENUE; DECLARING CITY OF LAKE OSWEGO ZONING OF R-7.5 PURSUANT TO LOC 50.01.004.5(a-c); AND REMOVING THE TERRITORY FROM CERTAIN DISTRICTS (AN 25-0004). WHEREAS, annexation to the City of Lake Oswego of the territory shown in the map in Attachment "A" and described below, would constitute a contiguous boundary change under ORS 222.111(2), initiated by petition from the property owners as outlined in ORS 222.111(2); and, WHEREAS, the City has provided written notification of this annexation as required under ORS 222.120(3); and, WHEREAS, the City has received consent for the proposed annexation from all of the property owners and not less than 50 percent of the electors residing in the territory as outlined in ORS 222.125; and, WHEREAS, the territory lies within the Lake Grove Fire District#57 district boundaries and the district has no bonded debt, and pursuant to the July 2003 urban service agreement between the City and the district, the City elects ORS 222.520(2)(b), and the territory shall be withdrawn from that district immediately upon approval of the annexation; and, WHEREAS, the territory lies within the Clackamas County Enhanced Sheriff's Patrol District boundaries, which serves unincorporated property within Clackamas County, and the district has no bonded debt, the City elects ORS 222.520(2)(b), and the territory shall be withdrawn from the district upon approval of the annexation; and, WHEREAS, the part of the territory that lies within the Surface Water Management Agency of Clackamas County and the district has no bonded debt, the city elects ORS 222.520(2)(b) and the territory shall be withdrawn from that agency immediately upon approval of the annexation; and, WHEREAS, the part of the territory that lies within the Lake Grove Water District and the district has no bonded debt, the city elects ORS 222.520(2)(b) and per the 1994 IGA, the territory shall be withdrawn from that agency immediately upon approval of the annexation; and, WHEREAS, LOC 50.01.004.5 specifies that, where the Comprehensive Plan Map requires a specific Zoning Map designation to be placed on the territory annexed to the City, such a zoning designation shall automatically be imposed on the territory as of the effective date of the annexation; and, WHEREAS, this annexation is consistent with the Urbanization Chapter of the City of Lake Oswego's acknowledged Comprehensive Plan, Oregon Revised Statutes 222.111(2), 222.120(3) and 222.125 for boundary changes, and Metro Code Sections 3.09.040(A) (1-4) and 3.09.045. Ordinance 2963,AN 25-0004 (21E07DC003100) EXHIBIT A-1/PAGE 1 OF 3 Now, therefore, the City of Lake Oswego ordains as follows: Section 1. The real property described as follows is hereby annexed to the City of Lake Oswego: A tract of land located within the southeast quarter of Section 7,Township 2 South, Range 1 East of the Willamette Meridian, City of Lake Oswego, Clackamas County, Oregon, said tract of land being a part of Lot 218, Map of Bryant Acres Plat 3 (Plat No. 442), said tract of land being all of that property conveyed to Julie B. Cech and Joseph A. Cech, Ill, by Statutory Warranty Deed recorded July 12, 2024 in the Official Records of Clackamas County as Recording No. 2024- 025602; said tract of land more particularly described as follows: The South one-half of said Lot 218, Map of Bryant Acres Plat 3 (Plat No. 442), the north line of said south one-half being parallel with the south line of said Lot 218. Except therefrom any portion of the above described tract of land lying within the platted right-of-way of Bonaire Avenue (Bonita Drive—County Road No. 1839), as per said Map of Bryant Acres Plat 3 (Plat No. 442). The annexed territory is depicted on Attachment A. Section 2. The above recitals are incorporated. Section 3. The annexed area lies within the following districts and shall be retained within these districts upon the effective date of annexation: Lake Grove Park District Library District of Clackamas County Section 4. The annexed area lies within the following districts and shall be withdrawn from these districts upon the effective date of annexation: Lake Grove Fire District#57 Clackamas County Enhanced Sheriff's Patrol District Surface Water Management Agency of Clackamas County Lake Grove Water District Section 5. In accordance with LOC 50.01.004.5, the City zoning designation of R-7.5 shall be applied to the subject property on the effective date of annexation, as shown on Attachment A. Section 6. The City Council hereby adopts the findings of fact and conclusions set forth in Attachment B in support of this annexation ordinance. Section 7. Effective Dates: a. Effective Date of Annexation Ordinance. Pursuant to Lake Oswego City Charter, Section 35.C, this ordinance shall be effective on the 30th day after its enactment. b. Effective Date of Annexation. Following the filing of the annexation records with the Secretary of State as required by ORS 222.177, this annexation shall be effective upon the later of either: Ordinance 2963,AN 25-0004 (21E07DC003100) EXHIBIT A-1/PAGE 2 OF 3 1. the 30th day following the date of adoption of this ordinance; or 2. the date of filing of the annexation records with the Secretary of State. Provided, however, that pursuant to ORS 222.040(2), if the effective date of the annexation as established above is a date that is within 90 days of a biennial primary or general election or after the deadline for filing notice of election before any other election held by any city, district or other municipal corporation involved in the area to be annexed, the annexation shall become effective on the day after the election. Read by title only and enacted at the regular meeting of the City Council of the City of Lake Oswego held on the 15t day of July, 2025. AYES: NOES: ABSTAIN: ABSENT: Joseph M. Buck, Mayor Dated ATTEST: Kim Vermillion, Interim City Recorder APPROVED AS TO FORM: Ellen Osoinach, City Attorney Ordinance 2963,AN 25-0004 (21E07DC003100) EXHIBIT A-1/PAGE 3 OF 3 I0VOL' ... ... I r., -- I -I 1V Annexation to the City of Lake Oswego rn o I AN 25-0004/Ordinance 2963 - ;085 , 1699� I ULM I I (DI I I I > 1 - - - - - -I------_1 QI-------I c37 I C37 I 16126 ' 16060 1 coW C31 c]7 N C,O 165 16115 I1- - - - -' - - - - ' _ cn al ' 16158 : R-7.5 '--- 5W - - - - - Firwoad Rd 193 -- --, m I 01 I ' i� W ' C11 ' 16200 o 0 o CO ti U, 11 16173 1m + - ^' o o 235 — 16212 16242 16219 - - - - - U' 1 265— Et- - - - -I16224 co 16266 16225 cn- - - - - - - - - 11 - 1 16232 u, I 16233 r.' (3) 16310 I- - _ _ _ cn 5 I 1 �O L 16291 j _ a) 1 i3 C r R-10 - — 16344 : 16317 �, U, U., 01 to '1 6349 CO co w w I0'v co 51 ; o CO cn co CO co - 16350 16373 ; m - - - ` ' - -- - - - 1 51N Madrona } 16405 _ 16416 w ti 0-1 1 1 1 16410 R=7.5 a -P 16429 - 16428 21 16446 I 16441 16444 i - AttachmentA -.-.6.1'c.' 16, Tax Lot ID: 21 E07DC03100 - -------- City of Lake Oswego: COMPREHENSIVE PLAN = R-7.5, Residential Low Density ' *IF. 1 16F ZONING = R-7.5, Residential Low Density Clackamas County: �I� � � 165 ZONING = R-8.5, Urban Residential Low Density On_ d� II———4—-' I j Lake OswegoreA, Subject 1: L_—.1 City Limits Property a, 1654k 0 50 100 200 300 I , t'a Feet 5/1512925 • ATTACHMENT B Criteria, Findings,Conclusion, and Effective Date APPLICABLE CRITERIA: A. Oregon Revised Statutes (ORS), Boundary Changes; Mergers and Consolidations. 1. ORS 222.111(2)Authority and Procedure for Annexation; Specifying Tax Rate in Annexed Territory. 2. ORS 222.120(1, 3) Procedure for Annexation Without Election; Hearing; Ordinance Subject to Referendum. 3. ORS 222.125-Annexation by Consent of All Owners of Land and Majority of Electors; Proclamation of Annexation. B. Metro Code. 1. 3.09.040(A)(1-4) Requirements for Petitions. 2. 3.09.045 (A-E) Expedited Decisions. C. Comprehensive Plan - Urbanization Chapter 1. Policy A-3: "The Urban Services Boundary (as depicted on the Comprehensive Plan Map) is the area within which the City shall be the eventual provider of the full range of urban services." 2. Policy C-3: "Ensure that annexation of new territory or expansion of Lake Oswego's Urban Services Boundary does not detract from the City's ability to provide services to existing City residents." 3. Policy C-4: "Prior to the annexation of non-island properties, ensure urban services are available and adequate to serve the subject property or will be made available in a timely manner by the City or a developer commensurate with the scale of the proposed development." 4. Policy D-3: "Enter into and maintain an Urban Growth Management Agreement with Clackamas County for lands within the Urban Services Boundary to ... (g) "Promote orderly annexation of territory." D. Comprehensive Plan—Complete Neighborhoods and Housing (Statewide Goal 10) Policy B-1: "Provide and maintain zoning and development regulations that allow the opportunity to develop an adequate supply and variety of housing types, and that accommodate the needs of existing and future Lake Oswego residents." E. OAR 660-008-0010 Allocation of Buildable Land FINDINGS: A. Oregon Revised Statutes (ORS), Boundary Changes; Mergers and Consolidations. 1. ORS 222.111(2)Authority and Procedure for Annexation;Specifying Tax Rate in Annexed Territory. ORS 222.111(2) provides that a proposal for annexation of territory to a City may be initiated by the legislative body of the City, on its own motion, or by a petition to the legislative body of the City by owners of real property in the territory to be annexed.The property owners have petitioned the City for this annexation.The proposed annexation complies with this statute. 2. ORS 222.120 Procedure for Annexation Without Election; Hearing; Ordinance Subject to Referendum. ORS 222.120(1,3) states that an election need not be held on the question of annexation to the electors of the city for their approval or rejection if the legislative body provides for a duly noticed public hearing before the legislative body at which time the electors of the City may appear and be heard on the question of annexation. Ordinance 2963 (AN 25-0004) ATTACHMENT B/PAGE 1 OF 10 The City has provided written notification of this annexation by publishing a notice once each week for two consecutive weeks prior to the day of the hearing in a newspaper of general circulation in the city and posted the notice of public hearing in four public places as required under ORS 222.120(3).The notice was published in the Lake Oswego Review and was posted at the City Hall,the Adult Community Center the City Library and the Operations Center. The notice contained information about the affected territory, time and place of the public hearing and the means by which any person can obtain a copy of the written report.The annexation notification and review procedures comply with this statute. 3. ORS 222.125-Annexation by Consent of All Owners of Land and Majority of Electors; Proclamation of Annexation. ORS 222.125 states that an election need not be held on the question of annexation within the area proposed to be annexed if all of the owners of land in the territory and not less than 50 percent of the electors, if any, residing in the territory consent in writing to the annexation. The property is occupied by a single-family dwelling with two electors. The property owners who are also electors residing on the property have consented to the annexation.The proposed annexation complies with this statute. B. Metro Code 1. 3.09.040- Requirements for Petitions. A. A petition for a boundary change must contain the following information: 1. The jurisdiction of the reviewing entity to act on the petition; 2. A map and a legal description of the affected territory in the form prescribed by the reviewing entity; 3. For minor boundary changes,the names and mailing addresses of all persons owning property and all electors within the affected territory as shown in the records of the tax assessor and county clerk; and, 4. For boundary changes under ORS 198.855 (3), 198.857, 222.125 or 222.170, statements of consent to the annexation signed by the requisite number of owners or electors. The above information was submitted as required by Metro Code. The property owners have signed the application and petition. A map and legal description in the form required by the City have been included in the application materials and are on file.The property owners have consented to the annexation on the annexation petition, meeting the consent requirements of ORS 222.125.The annexation petition complies with the Metro code requirements. 2. 3.09.045—Expedited Decisions A. The governing body of a city or Metro may use the process set forth in this section for minor boundary changes for which the petition is accompanied by the written consents of one hundred percent of property owners and at least fifty percent of the electors, if any, within the affected territory. No public hearing is required. B. The expedited process must provide for a minimum of 20 days' notice prior to the date set for decision to all necessary parties and other persons entitled to notice by the laws of the city or Metro.The notice shall state that the petition is subject to the expedited process unless a necessary party"gives written notice of its objection to the boundary change. C. At least seven days prior to the date of decision the city or Metro shall make available to the public a report that includes the following information: 1 "Necessary party" means "county; city; district whose jurisdictional boundary or adopted urban service area includes any part of the affected territory or who provides any urban service to any portion of the affected territory; Metro; or any other unit of local government." Metro Code 3.09.020(J). Ordinance 2963 (AN 25-0004) ATTACHMENT B/PAGE 2 OF 10 1. The extent to which urban services are available to serve the affected territory, including any extra-territorial extensions of service; 2. Whether the proposed boundary change will result in the withdrawal of the affected territory from the legal boundary of any necessary party; and 3. The proposed effective date of the boundary change. Metro Code 3.09.045(A) states that an expedited review of an annexation, where no public hearing is required, can be considered by a governing body within the area proposed to be annexed if one hundred percent of the property owners and not less than 50 percent of the electors, if any, residing in the territory consent in writing to the annexation.The property owners have signed the annexation application. One hundred percent of the owners and electors have consented to this annexation. Metro Code 3.09.045(B) requires a minimum of 20 days' notice to all necessary parties prior to the decision date.The County, Metro, and local service districts are the necessary parties under the Metro Code 3.09.020(J) and all have been notified on June 11, 2025, 20 days before the scheduled decision date. Metro Code 3.09.045(C) requires that the report discussing availability of urban services,withdrawal of the affected territory, and the proposed effective date of the boundary change be made available at least seven days prior to the date of decision.The annexation report has been prepared and made available on June 11, 2025, no later than seven days prior to the public meeting. The proposed annexation complies with the Metro Code. D. To approve a boundary change through the expedited process the City shall: 1. Find that the change is consistent with expressly applicable provisions in: a. Any applicable urban service agreement adopted pursuant to ORS 195.065 The City has entered into ORS 195.065 agreements with: 1) Lake Oswego School District, and 2) Lake Grove Fire District. Lake Oswego Park District (Lake Oswego School District):The City and the Lake Oswego School District entered into an ORS 195.065 urban service agreement for park services in July, 2003.The School District operates the Lake Grove Swim Park located at 3800 Lakeview Boulevard.The agreement states that the annexation of property by the City within the Lake Grove Park District (which funds the swim park) shall not cause the withdrawal of this property from the District. Lake Grove Fire District#57:The City and District entered into an ORS 195.065 urban service agreement for fire protection in July, 2003.The agreement states that upon annexation of property within the district by the City,the annexed property shall be withdrawn from the District and the City shall provide fire protection services.This property is within the boundaries of the Lake Grove Fire District#57 and the annexation will withdraw this property from that District. The proposed annexation is consistent with these agreements. b. Any applicable annexation plan adopted pursuant to ORS 195.205. There are no applicable annexation plans adopted pursuant to ORS 195.205 relating to the affected territory. c. Any applicable cooperative planning agreement adopted pursuant to ORS 195.020(2) between the affected entity and a necessary party. There are no ORS 195.020(2) cooperative agreements (which relate to special districts) between the City and a necessary party. Ordinance 2963 (AN 25-0004) ATTACHMENT B/PAGE 3 OF 10 d. Any applicable public facility plan adopted pursuant to a statewide planning goal on public facilities and services. Consistent with Statewide Planning Goal 11 (Public Facilities) and the Community Health and Public Safety Chapter of the Comprehensive Plan, the City maintains a Public Facilities Plan (PFP). The PFP consists of master plans for streets, sanitary sewer, water, and stormwater facilities, which provide the basis for long-range planning for both the incorporated and unincorporated lands within Lake Oswego's Urban Services Boundary(USB).The PFP is comprised of the Lake Oswego Transportation System Plan, Wastewater Master Plan,Water System Master Plan, and Clean Streams (Stormwater) Plan, pursuant to Statewide Planning Goals 11 (Public Facilities) and 12 (Transportation). Wastewater Master Plan: Sanitary sewer service is available from an 8-inch sewer main located in Bonaire Avenue along the site frontage.This sanitary sewer main was recently constructed with two land use partition projects in the City of Lake Oswego (LU 17-0059 and LU17-0060). A minimum 4- inch lateral would be required within the right-of-way to connect to the mainline, and a two-way clean-out shall be positioned at the right-of-way line. A street opening permit will be required for the sewer tap and work within the public right-of-way and a plumbing permit will be required for on-site work. The on-site work will include decommissioning the existing septic tank(removal, or filling with sand or gravel).All work would be done by private contractors. A System Development Charge (SDC)will be due upon connection. A plumbing permit is required for connection. Using the current Master Fees&Charges, as approved by the City of Lake Oswego effective January 1, 2025,the Sewer SDC for a dwelling using a %-inch water meter is$3,607 (a 1- inch water meter is $6,014).These fees and charges are adjusted at the beginning of each year. Note:The Engineering Staff has preliminarily commented by memo on the development standards that would apply for the sewer connection. The sewer line has been installed and maintained in accordance with the provisions of the City's Wastewater Master Plan. Water System Master Plan:The property is served by the Lake Grove Water District.There is a Lake Grove Water District water main located in Bonaire Avenue along the site frontage.The nearest existing fire hydrant is located approximately 150 feet south of the site at the southeast quadrant of the intersection of Bonaire Avenue/Madrona Street. Per the 1994 IGA,the City will withdraw the property from the District and the property will be served by the City. Clean Streams (Stormwater) Plan:After annexation, on-site surface water management will fall under various provisions of the Lake Oswego Code and the Clean Streams plan. However, stormwater runoff from new and/or replaced impervious surface areas shall be managed in accordance with the City's Stormwater Management Code (LOC 38.25).The Clean Streams (Stormwater) Plan does not identify any future projects for this section of Bonaire Avenue. Transportation (Statewide Planning Goal 12): The City's Transportation System Plan (TSP) implements the multi-modal transportation system that will meet the needs of the city for a 20-year planning horizon. Bonaire Avenue is identified as a local street in the City's Transportation System Plan.Although the portion of this roadway along the frontage of this property has been annexed to the City, it remains under the maintenance jurisdiction of Clackamas County.The road maintenance jurisdiction will not be transferred to the City until it is appropriate to complete a road transfer process with the County in the future. Tri-Met Line 37 provides service on Boones Ferry Road to the transfer station in the City of Tualatin. The City's Transportation System Plan implements the multi-modal transportation system that will meet the needs of the city for a 20-year planning horizon. Ordinance 2963 (AN 25-0004) ATTACHMENT B/PAGE 4 OF 10 e. Any applicable comprehensive plan policies Comprehensive Plan Map: This property is currently designated R-8.5 Low Density Residential on Clackamas County's Comprehensive Plan and Zoning Maps. It is designated Low Density Residential, R-7.5 on the City's Comprehensive Plan Map.As required under LOC 50.01.005.5, upon annexation, a City zoning designation of R-7.5 will be automatically applied to this property. The City and County have coordinated their comprehensive plans within the Dual Interest Area outlined in the City-County Urban Growth Management Agreement (UGMA) (dated February 4, 1992 and updated November 18, 1997), hence the City/County designations have been determined to be compatible.The proposed zoning designation of R-7.5 is consistent with the UGMA between the County and the City. Comprehensive Plan Policies:The Lake Oswego Comprehensive Plan contains the following relevant language in the Urbanization chapter: Policy A-3: "The Urban Services Boundary(as depicted on the Comprehensive Plan Map) is the area within which the City shall be the eventual provider of the full range of urban services."The property to be annexed is within the City's Urban Services Boundary.Therefore,the proposed annexation and the withdrawal of this property from the identified districts is consistent with this policy. Policy C-3: "Ensure that annexation of new territory or expansion of Lake Oswego's Urban Services Boundary does not detract from the City's ability to provide services to existing City residents." The approval of this annexation will result in the addition of 0.42 acres to be served by the City. As stated in Section 2(b)(1),the addition of this territory will not detract from the City's ability to provide police and fire protection to existing City residents. As outlined elsewhere in these findings and the incorporated materials, annexation of this property will not affect the City's ability to provide parks and recreation services, sewer or water services. Policy C-4: "Prior to the annexation of non-island properties, ensure urban services are available and adequate to serve the subject property or will be made available in a timely manner by the City or a developer commensurate with the scale of the proposed development." Availability of urban services serving this property is discussed below: Water: Water is available to serve the subject property as detailed in subsection D.1.d. Pursuant to the 1994 IGA with the Lake Grove Water District,the property will be withdrawn from the District. The District has no bonded debt. Sewer: Sanitary sewer service is available to serve the subject areas as detailed in subsection D.1.d. Stormwater: As detailed in subsection D.1.d,future development will be required to comply with the City standards for stormwater management. Fire Protection: Lake Grove Fire District#57 provides fire protection services to this property by agreement with the City of Lake Oswego.The District has no bonded debt. Upon annexation,the property will be withdrawn from this fire district per a July, 2003 urban service agreement and will be served directly by the City.The Fire station on 4555 Jean Road, located south of the site, would be able to respond to emergencies under the eight-minute goal established in the Comprehensive Plan. Police: Upon annexation, this property will be withdrawn from the Clackamas County Enhanced Sheriff's Patrol District and served by the City of Lake Oswego.The Sheriff's District has no bonded debt.The Lake Oswego Police Department reviewed the proposal and indicated that it does not have any concerns with serving this property upon annexation. Ordinance 2963 (AN 25-0004) ATTACHMENT B/PAGE 5 OF 10 Parks and Open Space:The City has 629 acres of park and open space lands, or 14.6 acres per 1,000 population. The parks nearest to this property are Waluga Park East, Waluga Park West and Lamont Springs Natural Area. Waluga Park East and West are located north of Oakridge Road and East and West of Waluga Drive.These two parks consist of 53 acres of active and natural passive areas. West Waluga Park includes two lighted baseball fields, a playground picnic shelters, lights and restrooms. Lamont Springs is a natural park with no amenities for organized recreational activities.The City's park system will not be overburdened by any additional population annexed to the City with this application. Lake Grove Park District: The Lake Grove Swim Park, managed by the Lake Oswego School District, and funded by the Lake Grove Park District, is located at 3800 Lakeview Boulevard.The swim park is approximately 1.3 acres in size with restroom, play and swim facilities. Per the 2003 Urban Service Agreement, this property will remain within the Lake Grove Park District following annexation. Library District of Clackamas County:The Library District was formed to act as the fiscal agent for the distribution of property tax revenues raised by the District permanent rate to participating local governments who operate public libraries within Clackamas County.This property will remain within the Library District of Clackamas County following annexation. Surface Water Management Agency of Clackamas County:The Surface Water Management program protects water quality with programs to prevent, minimize and reduce pollution in rivers streams and wetlands caused by urban story water runoff.This property will be withdrawn from the district upon approval of this annexation. Transportation -Streets and Mass Transit:Transportation infrastructure and transit service is available to serve the subject area, as detailed in subsection D.1.d, above. Other Urban Services: LOC 50.06.008.3 requires that all development be provided with the following utility services: sanitary sewer,water, sidewalks, pedestrian and bicycle paths,traffic control signs and devices, street lights, streets, and TV cable.These utilities are now in place or can be put in place to serve this property. In the event that future development occurs, an applicant for development is obligated to construct all necessary public facilities to serve their development. Urban Growth Management Agreement The Lake Oswego Comprehensive Plan, Urbanization Chapter, Policy D-3, calls for the City to enter into and maintain an UGMA with Clackamas County for lands within the USB. Similarly, General Urbanization Policy 4.A.4 of the Clackamas County Comprehensive Plan calls for the establishment of Urban Growth Management Areas and UGMAs to clarify planning responsibilities between the County and cities for areas of mutual interest. Policy 4.A.5 directs the County to establish agreements with cities and service districts to clarify service and infrastructure responsibilities for areas of mutual interest. In furtherance of these policies, the City and County have entered into an UGMA that stipulates a mutual interest in coordinated land use planning, compatible comprehensive plans and provision of urban services and facilities. This agreement ensures coordination and consistency between the City and County comprehensive plans and outlines responsibilities in providing services and managing growth within the Dual Interest Area. Subsections 6 and 7, provided below, are applicable to annexations. "6C. City and County Notice and Coordination: The City shall provide notification to the County, and an opportunity to participate, review and comment, at least 35 days prior to the first public hearing on all proposed public facilities plans, legislative changes to the City Comprehensive Plan, or quasi-judicial land use Ordinance 2963 (AN 25-0004) ATTACHMENT B/PAGE 6 OF 10 actions adjacent to, or in close proximity to unincorporated areas. The City shall provide notice to the County of private or City initiated annexation requests within five days of the filing of an application with the Portland Metropolitan Boundary Commission." The City-County UGMA specifies that the City notify the County of an annexation request within five days of when it is submitted to the Boundary Commission.There is no longer a Boundary Commission for the Portland Metropolitan area. Staff relies on the notice requirements of Metro Code 3.09.045(B), which requires mailing notice to all necessary parties, 20 days prior to the annexation decision for all necessary parties (other governmental entities).The notice shall state that the petition is subject to the expedited process unless a "necessary party"gives written notice of its objection to the boundary change.The County is a necessary party under the Metro Code definition and has been notified. "7. City Annexations A. The City may undertake annexations in the manner provided for by law within the Dual Interest Area. The City annexation proposals shall include adjacent road right- of-way to property proposed for annexation. The County shall not oppose such annexations. B. Upon annexation, the City shall assume jurisdiction of the County roads and local access roads pursuant to a separate road transfer agreement between the City and county." The City is undertaking this annexation in the manner provided for in the applicable ORS and Metro Code for the territories that lie within the Dual Interest Area.This annexation is consistent with the City and County comprehensive plans which have been coordinated in the Dual Interest Area within the regional Urban Growth Boundary (UGB).The right-of-way adjacent to this property is within the City Boundary and although the portion of this road way along the frontage of this property has been annexed to the City,the road maintenance jurisdiction will not be transferred to the City until it is appropriate to complete a road transfer process with the County in the future. Statewide Goal 10 and Complete Neighborhoods and Housing City Comprehensive Plan Complete Neighborhoods and Housing Chapter The Complete Neighborhoods and Housing Chapter of the City's Comprehensive Plan implements Statewide Housing Goal 10 and the Portland Metropolitan Housing Rule (OAR 660-007-0000 et seq.), which requires that the City plan for a supply of residentially zoned land with an average allowed density of 10 dwelling units per net acre, and the opportunity to develop a mix of housing types consisting of not less than 50%attached and multifamily dwellings. Compliance with the State rules ensures the opportunity to provide adequate numbers of needed housing units and the efficient use of buildable land within urban growth boundaries, while promoting certainty in the development process to help reduce housing costs. The following Oregon Administrative Rule (OAR) provides standards for compliance with Goal 10 "Housing" pursuant to ORS 197.296 (Buildable Lands) and ORS 197.303 through 197.307 (Needed Housing): OAR 660-008-0010 Allocation of Buildable Land The mix and density of needed housing is determined in the housing needs projection. Sufficient buildable land shall be designated on the comprehensive plan map to satisfy housing needs by type and density range as determined in the housing needs projection. The local buildable lands inventory must document the amount of buildable land in each residential plan designation. Ordinance 2963 (AN 25-0004) ATTACHMENT B/PAGE 7 OF 10 The Lake Oswego Comprehensive Plan, Complete Neighborhoods and Housing Chapter, adopted pursuant to Goal 10 and the Metropolitan Housing Rule is designed to meet Lake Oswego's housing needs for not less than a twenty-year planning period.The Comprehensive Plan Map designates residential land use designations within the City limits and within Lake Oswego's USB through the year 2035.The Comprehensive Plan Map's residential land use designations are consistent with the City's Housing Needs Analysis (HNA) 20 Year Housing Need Forecast 2023-2043 (9/21/23), also incorporated herein by reference, and the City of Lake Oswego-Clackamas County UGMA, which specifies future zoning of lands with the USB upon annexation to Lake Oswego.These designations match the corresponding Zoning Map designations such that there is only one zone for each Plan designation, and therefore only one zone that is applied to each lot upon annexation, consistent with the UGMA and in compliance with Goal 10 and the Metropolitan Housing Rule. In the case of the subject application,the applicable Plan Map designation and corresponding Zone Map designation is R-7.5. The HNA is based on the Comprehensive Plan Map's residential land use designations. Figure 6.3 of the HNA, excerpted below,forecasts a citywide deficit of 642 units (86 acres), including a deficit of 192 units (38 acres) of low-density residential land, to meet the city's housing needs by 2043. FIGURE 6.3: COMPARISON OF FORECASTED FUTURE LAND NEED(2043)WITH AVAILABLE CAPACITY WITHIN CITY LIMITS SUPPLY DEMAND Buildable Land Growth Rate(0.05%) Zone&Plan Typical HousingType Inventory- Surplus or(Deficit) Category yp yP Housing Unit New Unit Avg. Capacity Need(2043) Units Acres Units/ac. Low-Density Single-family detached; 655 847 (192) 5 (38) Some SF attached&plex Med-Density SF attached; Manufact. 195 444 (249) 8 (31) home;2-4 plexes High-Density Multi-family apartments 476 677 (201) 12 (17) TOTALS: 1,327 1,968 (642) 7 (86) Sources: MIG,Johnson Economics The proposed annexation would add 0.42 acres of low-density residential land to the City's Buildable Lands inventory (BLI), which would correspondingly reduce the deficit of low-density residential land needed to meet the city's housing needs by 2043 by 0.42 acres.The proposed annexation and designation of City zoning is consistent with the Comprehensive Plan and Map, and will help to meet the City's housing needs as identified by the HNA; therefore,the annexation and zone change comply with Goal 10 and its implementing administrative rules. In this case,the zoning district would provide the opportunity for needed housing as identified in the HNA. The City uses the following approach for findings supporting two types of annexation zone changes: • Option 1 is for annexation-related non-discretionary comprehensive plan and zoning map amendments. • Option 2 is for annexation-related discretionary comprehensive plan and zoning map amendments. Ordinance 2963 (AN 25-0004) ATTACHMENT B/PAGE 8 OF 10 "Non-discretionary" amendments are zoning map amendments applied to an annexed property(or properties)where the applicable zoning designation is prescribed by the City's Comprehensive Plan and a zoning conversion table in the City-County UGMA. "Discretionary" amendments are where more than one zoning designation is applicable, as prescribed by the City's Comprehensive Plan and the City-County UGMA, and the City Council has discretion in applying zoning. The proposed rezoning in AN 25-0004 is non-discretionary because the zoning is prescribed by the City of Lake Oswego Comprehensive Plan and the zoning conversion table in the City of Lake Oswego-Clackamas County UGMA. The City's R-7.5 zone is proposed to be applied consistent with (matching)the R-7.5 land use designation in the City's Goal 10/Metro Housing Rule-compliant Comprehensive Plan.The Metropolitan Housing Rule (OAR 660-007-0035(3)) states that Lake Oswego must provide for an overall density of ten or more dwelling units per net buildable acre.The City's R-7.5 zone allows for the development of cottage cluster developments of up to 8 dwelling units on properties meeting the minimum lot size of 7,500 sq.ft., corresponding to a density of more than 46 dwelling units per acre.The City's R-7.5 zone also allows for the development of quadplexes containing 4 dwelling units on properties meeting the minimum lot size, corresponding to a density of more than 23 dwelling units per acre. Further,the City's R-7.5 zone allows for the development of triplexes containing 3 dwelling units on properties meeting the minimum lot size, corresponding to a density of more than 17 dwelling units per acre. In addition,the City's R-7.5 zone allows for the development of duplexes containing 2 dwelling units on properties meeting the minimum lot size, corresponding to a density of more than 11 dwelling units per acre.Therefore, the City's R-7.5 zone meets the requirement to provide for an overall density of ten or more dwelling units per net buildable acre. The City Council does not have discretion to apply a different zone to the subject property unless it is amending the Comprehensive Plan to change the land use designation;therefore,the City does not evaluate proposed zones against its HNA.The City simply applies the zoning that is prescribed by the Comprehensive Plan, consistent with the Complete Neighborhoods and Housing (Goal 10) chapter of the Plan. In doing so,the City relies on LOC 50.01.004.5.a, which states that the Lake Oswego Comprehensive Plan Map provides for the future City zoning of all property within the City's USB. In cases where the Comprehensive Plan Map requires a specific zoning map designation,this designation is automatically imposed on territory when the property is annexed to the City. In conclusion,the proposed R-7.5 zoning is consistent with the Comprehensive Plan and City-County UGMA for the subject property, and the City Council does not have other zoning options from which to choose in approving AN 25-0004. f. Any applicable concept plan There no applicable concept plans in this area. 2. Consider whether the boundary change would a. Promote the timely orderly and economic provision of public facilities and services b. Affect the quality and quantity of urban services c. Eliminate or avoid unnecessary duplication of facilities or services The proximity of this property to existing City services will allow this annexation to promote the timely, orderly, and economical extension of public facilities and services. It can readily be served with urban services and facilities. If and when additional development occurs in the area, provision of public facilities and services will occur consistent with the City's adopted public facility master plans, ensuring that it does not adversely affect the quality or quantity of urban services and avoiding unnecessary duplication of facilities or services.Therefore, this boundary change is consistent with criteria 2.a through 2.c. Ordinance 2963 (AN 25-0004) ATTACHMENT B/PAGE 9 OF 10 E. A city may not annex territory that lies outside the UGB except it may annex a lot or parcel that lies partially within and partially outside the UGB. The property to be annexed is located entirely within the City's UGB. C. Comprehensive Plan- Urbanization Chapter See discussion, above, under Section B.3, regarding Metro Code 3.09.045.D(1)(e), "Comprehensive Plan Policies—Urbanization." D. Comprehensive Plan—Complete Neighborhoods and Housing(Statewide Goal 10) See discussion, above, under Section B.3, regarding Metro Code 3.09.045.D(1)(e), "Comprehensive Plan Policies—Complete Neighborhoods and Housing (Statewide Goal 10)." E. OAR 660-008-0010-Allocation of Buildable Land See discussion, above, under Section B.3, regarding Metro Code 3.09.045.D(1)(e), "Comprehensive Plan Policies—Complete Neighborhoods and Housing (Statewide Goal 10)." CONCLUSION: Based on the criteria and findings set forth above, the City Council concludes that AN 25-0004 complies with all applicable criteria and the annexation should be approved. EFFECTIVE DATE: A. Effective Date of Annexation Ordinance. Pursuant to Lake Oswego City Charter, Section 35.C., the ordinance shall be effective on the 30th day after its enactment. B. Effective Date of Annexation. Following the filing of the annexation records with the Secretary of State as required by ORS 222.177, this annexation shall be effective upon the later of: 1.the 30th day following the date of adoption of this ordinance; or 2. the date of filing of the annexation records with the Secretary of State; provided however that pursuant to ORS 222.040(2), if the effective date of the annexation as established above is a date that is within 90 days of a biennial primary or general election or after the deadline for filing notice of election before any other election held by any City, district or other municipal corporation involved in the area to be annexed,the annexation shall become effective on the day after the election. Ordinance 2963 (AN 25-0004) ATTACHMENT B/PAGE 10 OF 10 ATTACHMENT 2 (ORDINANCE 2934) LU 23-0023 , A I `III16, 04 • I _ - • • • I I ill Source:Lake Oswego Chamber of Commerce CITY OF LAKE OSWEGO, OR HOUSING NEEDS ANALYSIS (OREGON STATEWIDE PLANNING GOAL 10) 20-YEAR HOUSING NEED 2023 - 2043 September 21, 2023 it I JOH NSON ECONOMICS AN 25-0004 EXHIBIT E-1/PAGE 1 OF 55 Acknowledgments Johnson Economics prepared this report for the City of Lake Oswego.Johnson Economics and the City of Lake Oswego thank the many people who helped to develop this document. City Staff Erik Olson, Long Range Planning Manager Jessica Numanoglu, Interim Community Development Director Lake Oswego Housing Task Force Kasey Adler,Transportation Advisory Board Yoko Kinoshita, Resident Kyrsten Baumgart, Housing producer Rebecca Lane, Resident Phil Bertrand, Housing producer Rosalie Nowalk, Resident Joseph M. Buck, City Council Liaison John E. Pauley, Resident Thea Croman, DLCD Bruce Poinsette, Development Review Commission Kelly Reid, DLCD Phillip Stewart, Planning Commission Liaison Douglas Corder, 50+Advisory Board David Tangvald, Housing producer Pat Ginn, Resident Kimvi To, D.E.I. Advisory Board Diana Howell, Resident John Turchi, Resident Cara Kao-Young, Resident Sarah Walker, Housing producer Betty Jung, Resident Consultants Brendan Buckley,Johnson Economics Andrew Parish, MIG Matt Hastie, MIG This report was prepared in accordance with the requirements of OAR 660 Division 8:Interpretation of Goal 10 Housing. This project is funded by the State of Oregon through the Department of Land Conservation and Development. The contents of this document do not necessarily reflect the views or policies of the State of Oregon. City of Lake Oswego Johnson Economics 380 A Ave. 621 SW Alder Street Lake Oswego, OR 97034 Suite 605 (503) 635-0270 Portland, OR 97205 (503) 295-7832 CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 1 AN 25-0004 EXHIBIT E-1/PAGE 2 OF 55 TABLE OF CONTENTS I. INTRODUCTION 3 II. CITY OF LAKE OSWEGO DEMOGRAPHIC PROFILE 4 A. POPULATION GROWTH 5 B. HOUSEHOLD GROWTH &SIZE 5 C. FAMILY HOUSEHOLDS 5 D. GROUP QUARTERS POPULATION 6 E. HOUSING UNITS 6 F. AGE TRENDS 6 G. DIVERSITY TRENDS 8 H. PEOPLE WITH A DISABILITY 10 I. INCOME TRENDS 11 J. POVERTY STATISTICS 12 K. EMPLOYMENT LOCATION TRENDS 12 III. CURRENT HOUSING CONDITIONS 14 A. HOUSING TENURE 14 B. HOUSING STOCK 14 C. NUMBER OF BEDROOMS 14 D. UNIT TYPES BY TENURE 15 E. AGE AND CONDITION OF HOUSING STOCK 16 F. HOUSING COSTS VS. LOCAL INCOMES 17 G. PUBLICLY ASSISTED HOUSING 18 IV. CURRENT HOUSING NEEDS(CITY OF LAKE OSWEGO) 20 V. FUTURE HOUSING NEEDS-2043(CITY OF LAKE OSWEGO) 26 VI. RECONCILIATION OF FUTURE NEED(2043)&LAND SUPPLY 32 APPENDIX A: BUILDABLE LAND INVENTORY SUMMARY 35 CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 2 AN 25-0004 EXHIBIT E-1/PAGE 3 OF 55 I. INTRODUCTION This analysis outlines a forecast of housing need within the City of Lake Oswego. Housing need and resulting land need are forecast to 2043,consistent with the 20-year need assessment requirements of Oregon Revised Statutes.' This report presents a housing need analysis (presented in number and types of housing units) and a residential land need analysis, based on those projections. The primary data sources used in generating this forecast were: ■ Portland State University Population Research Center ■ Metro ■ U.S. Census ■ Claritas2 ■ Oregon Employment Department ■ City of Lake Oswego ■ Clackamas County ■ Other sources are identified as appropriate. This analysis relies heavily on Census data from both the 2020 Decennial Census and the American Community Survey (ACS).All Census data feature some margin of error but remain the best source of data available on many demographic and housing subjects. One limitation of the 2020 Census is the release schedule of data sets,which takes place over several years following the year of the Census. Thus far, data has been released on: Population; Race; Latino ethnicity; number of Households; number of Housing Units; and Group Quarters population. While these are key baseline data sets utilized in this analysis, any additional nuance on demographics and housing from the 2020 Census are not yet available,with the next data release expected later in 2023. Despite the limitations,the 2020 Census is relied upon here as the best available source for the key indicators listed above in Lake Oswego,as of 2023. For more detailed data sets on demographics and housing,this analysis relies on the American Community Survey (ACS), which features a higher margin of error on all tables than the Decennial Census. The ACS is a survey of a representative sample of households which the Census uses to make estimates generalized to the population of the relevant geography.This analysis relies whenever possible on the most recent 2021 ACS 5-year estimates.The 5-year estimates have a lower margin of error than the ACS 1-year estimates. 1 ORS 197.628;OAR 660-025 2 Claritas is a third-party company providing data on demographics and market segmentation.It licenses data from the Nielson Company which conducts direct market research including surveying of households across the nation. Nielson combines proprietary data with data from the U.S.Census,Postal Service,and other federal sources,as well as local-level sources such as Equifax,Vallassis and the National Association of Realtors. Projections of future growth by demographic segments are based on the continuation of long-term and emergent demographic trends identified through the above sources. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 3 AN 25-0004 EXHIBIT E-1/PAGE 4 OF 55 II. CITY OF LAKE OSWEGO DEMOGRAPHIC PROFILE SUMMARY The following table (Figure 2.1) presents a profile of City of Lake Oswego demographics from the 2000 and 2010 Census. It also reflects the estimated population of this area as of 2023 from PSU estimates,forecasted forward to 2023 using the estimated growth rate between 2010 and 2022. ■ Lake Oswego is a City of over 41,500 people located in Clackamas County in the southern-central area of the Portland metropolitan region. ■ Based on estimated population, Lake Oswego is the 13th largest city in the state by population, similar in size to Oregon City regionally,or Keizer and Grants Pass statewide.Lake Oswego has about 1.5 times the population of neighboring West Linn or Tualatin,and about 75%of the population of Tigard. ■ Lake Oswego has experienced modest growth, growing roughly 18% since 2000, or less than 1% per year. In contrast, Clackamas County and the state experienced population growth of 26% and 25% respectively. (US Census and PSU Population Research Center) FIGURE 2.1:LAKE OSWEGO DEMOGRAPHIC PROFILE POPULATION, HOUSEHOLDS, FAMILIES,AND YEAR-ROUND HOUSING UNITS 2000 2010 Growth 2023 Growth (Census) (Census) 00-10 (PSU) 10-23 Population1 35,278 36,619 4% 41,550 13% Households2 14,824 15,893 7% 17,481 10% Families3 9,775 10,079 3% 11,842 17% Housing Units4 15,668 16,995 8% 18,345 8% Group Quarters Populations 163 222 36% 329 48% Household Size(non-group) 2.37 2.29 -3% 2.36 3% Avg.Family Size 2.93 2.88 -2% 2.97 3% PER CAPITA AND MEDIAN HOUSEHOLD INCOME 2000 2010 Growth 2023 Growth (Census) (Census) 00-10 (Proj.) 10-23 Per Capita ($) $42,166 $53,652 27% $74,600 39% Median HH($) $71,597 $84,186 18% $123,300 46% SOURCE:Census,Metro Consolidated Forecast,PSU Population Research Center,and Johnson Economics Census Tables: DP-1(2000,2010);DP-3(2000);S1901;519301 1 From Census,PSU Population Research Center,growth rate 2010-2022 extended to 2023 2 2023 Households=(2023 population-Group Quarters Population)/2023 HH Size 3 Ratio of2023 Families to total HH is based on 2021 ACS5-year Estimates 4 2023 housing units are the'20 Census total plus new units permitted from'20 through'22(source: Census,City) 5 2023 Group Quarters Population based on 5-year ACS estimates 2017-2021 ■ Lake Oswego was home to an estimated 17,500 households in 2023, an increase of over 2,650 households since 2000. The percentage of families has increased slightly from 66% of all households in 2000 to 68% in 2023. The city has a similar share of family households to Clackamas County (69%) but higher than the state (63%).Average household size is estimated to have remained fairly stable during this period. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 4 AN 25-0004 EXHIBIT E-1/PAGE 5 OF 55 • Lake Oswego's estimated average household size is 2.4 persons. This is lower than the Clackamas County average of 2.6 and similar to the statewide average of 2.44. A. POPULATION GROWTH Since 2000, Lake Oswego has grown by nearly 6,300 people within the UGB, or 18% in 23 years. This was lower than the countywide rate of growth. Clackamas County as a whole has grown an estimated 26%since 2000, while other cities in the county such as West Linn and Oregon City grew by 23% and 46% respectively. Portland's population grew by an estimated 19%during this period (PSU Population Research Center). B. HOUSEHOLD GROWTH&SIZE As of 2023,the city has an estimated 17,500 households. Since 2000, Lake Oswego has added an estimated 2,650 households.This is an average of roughly 115 households annually during this period. The growth since 2000 has paced the growth in new housing units,which have been permitted at the rate of roughly 117 units per year. There has been a general trend in Oregon and nationwide towards declining household size as birth rates have fallen, more people have chosen to live alone, and the Baby Boomers have become "empty nesters." While this trend of diminishing household size is expected to continue nationwide,there are limits to how far the average can fall. Lake Oswego's average household size of 2.4 people,with 68%family households,is smaller than Clackamas County (2.6 persons; 69%families). Figure 2.2 shows the share of households by the number of people for renter and owner households in 2021(latest data available),according to the Census.Renter households are more likely to be one-person households,with 75% having two or fewer residents. Owner households are more likely to have two or more persons. FIGURE 2.2:NUMBER OF PEOPLE PER HOUSEHOLD,CITY OF LAKE OSWEGO 0 7-or-more 0% Renter 6 person 1% Owner 2% 5-person 3% 4% in 2° 4-person 11% 18% a = 3-person 11/0 0 19/0 2-person 35/ o 38/o 1-person 40% 20% 0% 5% 10% 15% 20% 25% 30% 35% 40% Share of Households SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables: B25009(2021 ACS 5-yr Estimates) C. FAMILY HOUSEHOLDS As of the 2021 ACS,68%of Lake Oswego households were family households,up from 63.4%of households in 2010. The total number of family households in Lake Oswego is estimated to have grown by over 2,060 since 2000.The Census defines family households as two or more persons, related by marriage, birth or adoption and living together. In 2023,family households in Lake Oswego have an estimated average size of 2.97 people. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 5 AN 25-0004 EXHIBIT E-1/PAGE 6 OF 55 D. GROUP QUARTERS POPULATION As of the 2020 Census, the City of Lake Oswego had an estimated group quarters population of 0.8%of the total population, or 329 persons. Group quarters include such shared housing situations as nursing homes, prisons, dorms, group residences, military housing, or shelters. For the purposes of this analysis, these residents are removed from the estimated population total, before determining the number of other types of housing that are needed for non-group households.In Lake Oswego,nearly 90%of the group quarters population is found in assisted living facilities. E. HOUSING UNITS Data from the City of Lake Oswego and the US Census indicate that the city added roughly 2,680 new housing units since 2000, representing 17% growth in the housing stock. This number of new units is slightly higher than the growth in new households estimated during the same period (2,660), indicating that housing growth has kept pace with growing need. As of 2023, the city had an estimated housing stock of roughly 18,350 units for its 17,500 estimated households. This translates to an estimated average vacancy rate of 4.7%. Residential Permits:An average of 117 units have been permitted annually since 2000,with 24%being multi-family units. Most multi-family housing in Lake Oswego has been built in the last decade. FIGURE 2.3:HISTORIC AND PROJECTED RESIDENTIAL PERMITS,CITY OF LAKE OSWEGO Housing Permits •Multi-Family 350 •Single Family 300 250 200 150 100 ■ 50 I I I I I I I ' I I I I I I I Hi . 0 00 O1 liii Oco Orb O 'L yR tico ti� LO y'L ,LO .y0 ,LO ,LO ,LO .y0 ,LO ,LO ,LO .y0 ,LO ,LO SOURCE:HUD F. AGE TRENDS The following figure shows the share of the population falling in different age cohorts between the 2000 Census and the most recent 5-year American Community Survey estimates. As the chart shows,there is a general trend for middle age and young cohorts to fall as share of total population, while older cohorts have grown in share.This is in keeping with the national trend caused by the aging of the Baby Boom generation. Overall, Lake Oswego has an older population than the county,with a similar share of children, but a smaller share of those aged 25 to 44 years. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 6 AN 25-0004 EXHIBIT E-1/PAGE 7 OF 55 FIGURE 2.4:AGE COHORT TRENDS,2000-2021 25% Lake Oswego(2000) o N Lake Oswego(2021) 20% N o o Clack.Co.(2021) ti Ln v o � o 15% - r ,, ti tsilCV o c-I o e-1 c ,-IO o e-1 O r-I %-1 O c 10% `" al I c o i to5% � N N c- 0% 1ll ''' '''' y�Ae' ��-orate ��Ae' ��aaath h��eac5 ��eate ��eat5 ��aaach A'. aec �o �o �o �o �o ,so �0 cb SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables:QT-P1(2000);S0101(2021 ACS 5-yr Estimates) • The cohorts which grew the most in share during this period were those aged 55 to 74 years.Still,an estimated 79%of the population is under 65 years of age. • In the 2021 ACS, the local median age was an estimated 46 years, compared to 40 years in Oregon, and 39 years nationally. Figure 2.5 presents the share of households with children, and the share of population over 65 years for comparison. Compared to state and national averages, Lake Oswego has a similar share of households with children. However,at 21%,the share of population over 65 is higher than the state and national figures. FIGURE 2.5:SHARE OF HOUSEHOLDS WITH CHILDREN POPULATION OVER 65 YEARS(LAKE OSWEGO) Share of Households with Children Share of Population Over 65 Years 40% 40% 31% 31% 30% 28% 30% 21% 20% 20% 18% 16% 10% 10% 0% 0% Lake Oswego Oregon USA Lake Oswego Oregon USA SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables: B11005;S0101(2021 ACS 5-yr Estimates) CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 7 AN 25-0004 EXHIBIT E-1/PAGE 8 OF 55 G. DIVERSITY TRENDS The following figure presents the distribution of Lake Oswego's population by race and Hispanic ethnicity. The community grew more diverse between the 2010 and 2020 Census, with the population's white (non-Hispanic) share falling from 90%to 80%. The Asian population makes up 8% of the population, and the Hispanic or Latino population makes up 5%of residents.9%of residents identify as two or more races. FIGURE 2.6:RACIAL AND ETHNIC DIVERSITY,2010—2020(LAKE OSWEGO) 100% o Share of Population by Race o Lake Oswego(2010) co 80% •Lake Oswego(2020) 60% I •Clackamas Co. 40% Oregon 20% o o oo o e rn L. Hi o o HiME -. a, c v c a, v o coLE o c > coc m O c 47, w• (o Z Q CO C (o cc a, J a, U Q l.1 CO N a, O i ` ▪ Q U H 3Ii 1= ~ SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables:P1,P2(2010,2020) In comparison,the share of the population identifying as white is also 80%in Clackamas County,and 75%statewide. The share of Lake Oswego's population identifying as Hispanic or Latino is 5% of the population, indicating over 2,100 people as of the 2020 Census.This is lower than the 14%share statewide. FIGURE 2.7:AVERAGE NUMBER OF PERSONS PER HOUSEHOLD BY RACIAL AND ETHNIC CATEGORY(OREGON) Average Household Size by Race & Ethnicity(Oregon) All Households 2.5 White alone 2.4 Black or African American alone 2.5 American Indian and Alaska Native alone 2.8 Asian alone 2.8 Native Hawaiian and Pacific Islander 3.5 Hispanic or Latino 3.7 Some Other Race alone 4.0 Two or more races: 2.7 0.0 1.0 2.0 3.0 4.0 5.0 Avg.Number of Persons per Household SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables:P17A-H,(State of Oregon,2020) *This data is presented on a statewide basis using the most recent Census data available(2010).The data for the Lake Oswego or Clackamas County geographies feature unusually large margins of error due to the small sample size. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 8 AN 25-0004 EXHIBIT E-1/PAGE 9 OF 55 Minority households tend to have a larger average household size than the average of all households (Figure 2.7). (This figure presents statewide data due to the high margin of error for local data in this data set.) Households identifying as"white alone" have the lowest average household size(2.4 persons),while all other racial and ethnic categories have a larger estimated average household size. Some of the non-white categories, such as black households and those of two or more races,are still similar in average size(2.5 and 2.7 persons,respectively).Those with the largest estimated households are Latinos, Pacific Islanders,and those identifying as"some other race." Larger average household size indicates a need for units with more bedrooms on average among many minority households. Each household has its own housing needs in terms of the number of bedrooms and other factors, based on the specific makeup of each family. Based on voluntary guidelines provided by HUD for public housing programs, households of between 2 persons generally need a one-bedroom unit, households with 3 persons might need two bedrooms, and those with 4 persons might need three bedrooms. Larger households may need four or more bedrooms,which are typically found in single detached homes. Based on statewide data, many racial and ethnic minorities are currently less likely to own the homes they occupy (Figure 2.8)—meaning that they tend to occupy rental units.These communities face systemic obstacles to home ownership,including lower generational wealth, less access to capital and financing,and a history of discrimination in lending and geography(e.g.,redlining).While the country and state try to address explicit discrimination through the law, the legacy of these barriers continues to hamper home ownership for many minority households. Going forward, many communities would benefit from more entry-level homebuying opportunities for these households, as well as additional rental housing for those who are still unready or unable to buy a home. FIGURE 2.8:HOME OWNERSHIP RATE BY RACIAL AND ETHNIC CATEGORY(OREGON) Owner-Occupied Households by Race& Ethnicity(Oregon) All Households 63% White alone 65% Black or African American alone 36% American Indian and Alaska Native alone 48% Asian alone 63% Native Hawaiian and Pacific Islander 32% Hispanic or Latino 45% Some Other Race alone 43% Two or more races: 50% 0% 20% 40% 60% 80% 100% Ownership Rate SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables:B25003A-H,(State of Oregon,2021 ACS 5-year) *This data is presented on a statewide basis using the most recent Census data available(2020).The data for the Lake Oswego or Clackamas County geographies feature larger margins of error due to small sample size in some of the racial categories. Populations from some racial and ethnic minority groups also have lower average incomes and are more likely to have income below the official poverty level when compared to the total population. Such income levels are correlated with a greater share of renter households and impact the types of housing these populations consume, as discussed in further detail below. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 9 AN 25-0004 EXHIBIT E-1/PAGE 10 OF 55 H. PEOPLE WITH A DISABILITY An estimated 8%of the population of Lake Oswego, or 3,140 people, report having some form of disability.This is lower than the statewide rate of 14%and the Clackamas County rate of 12%of people with a disability.(The Census reports these statistics for the"non-institutionalized population.") The following figure presents Census estimates of the types of disability reported among Lake Oswego residents. Any type of disability impacts the type of housing that may be appropriate for a resident,but those with the greatest impact on needed unit type are generally an ambulatory,self-care, or independent living disability.Those with an ambulatory disability often need units with expanded access for a wheelchair,walker,or scooter.Those with self- care or independent living disabilities may require additional safety precautions around the home to protect a resident who cannot always be directly monitored. FIGURE 2.9:LAKE OSWEGO SHARE OF THE POPULATION WITH DISABILITY,BY TYPE Share of Population Population with a disability 7.8% Hearing difficulty 2.4% Vision difficulty 1.7% Cognitive difficulty 2.7% Ambulatory difficulty 2.9% Self-care difficulty 1.1% Independent living difficulty 2.3% 0% 2% 4% 6% 8% 10% SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables:DP02,(2020 ACS 5-year) FIGURE 2.10:LAKE OSWEGO POPULATION WITH A DISABILITY,BY AGE Share of Population with Disability by Age Total population 7.8% Under 18 years . 2.0% 18 to 64 years NM 5.8% 65 years and over 19.5% 0% 5% 10% 15% 20% 25% SOURCE:US Census,JOHNSON ECONOMICS LLC Census Tables:DP02,(2020 ACS 5-year) CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 10 AN 25-0004 EXHIBIT E-1/PAGE 11 OF 55 Older residents are more likely to report a disability, including nearly 20%of those over 65 years.Of those aged 18 to 64 years, 6% of the local population reports a disability, and 2% of children. Because Census data tends to undercount the homeless and other vulnerable populations, there are likely more disabled residents in Lake Oswego than reflected in these data. I. INCOME TRENDS The following figure presents data on Lake Oswego's income trends. FIGURE 2.11: INCOME TRENDS,2000—2023(LAKE OSWEGO) PER CAPITA AND MEDIAN HOUSEHOLD INCOME 2000 2010 Growth 2023 Growth (Census) (Census) 00-10 (Proj.) 10-23 Per Capita ($) $42,166 $53,652 27% $74,600 39% Median HH ($) $71,597 $84,186 18% $123,300 46% SOURCE:Census,Metro Consolidated Forecast,PSU Population Research Center,and Johnson Economics Census Tables: DP-1(2000,2010);DP-3(2000);S1901;S19301 ■ Lake Oswego's estimated median household income was$123,000 in 2023.This is nearly 40%higher than the Clackamas County median of$88,500, and 75%higher than the statewide median of$70,000. ■ Lake Oswego's per capita income is roughly$75,000. ■ Median income has grown an estimated 46% between 2010 and 2023, in real dollars. Inflation was an estimated 34%over this period,so the local median income has well exceeded inflation.This is not the case in many regions and nationally,where income growth has not kept pace with inflation. FIGURE 2.12: HOUSEHOLD INCOME COHORTS,2021(LAKE OSWEGO) Household Income Groups $200,000 or more 27% $150,000 to$199,999 12% $100,000 to$149,999 20% $75,000 to$99,999 11% $50,000 to$74,999 11% $35,000 to$49,999 6% $25,000 to$34,999 4% $15,000 to$24,999 4% $10,000 to$14,999 2% Less than$10,000 3% 0% 5% 10% 15% 20% 25% 30% SOURCE: US Census,Census Tables:S1901(2021 ACS 5-yr Est.) Figure 2.12 presents the estimated distribution of households by income as of 2021. The largest income cohorts are those households earning between $100k and $200k per year (32%), followed by households earning over $200k(27%). ■ 41%of households earn less than$100,000. ■ Roughly 19%of households earn less than$50k per year. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 11 AN 25-0004 EXHIBIT E-1/PAGE 12 OF 55 J. POVERTY STATISTICS According to the US Census,the official poverty rate in Lake Oswego is an estimated 4%over the most recent period reported (2021 5-year estimates).3 This is roughly 1,700 individuals in Lake Oswego. In comparison, the official poverty rate in Clackamas County is 9%,and at the state level is 17%. In the 2017-21 period: • The Lake Oswego poverty rate is low among all groups, but highest among those 65 years and older at 5%.The rate is 4%among those 18 to 64 years of age.The estimated rate is lowest for children at 3%. • For those without a high school diploma,the poverty rate is 11%. • Among those who are employed the poverty rate is 2%,while it is 7%for those who are unemployed. Information on affordable housing is presented in Section II F of this report. FIGURE 2.13:POVERTY STATUS BY CATEGORY(LAKE OSWEGO) Poverty Level of Subgroups Under 18 years 3% 18 to 64 years 4% 65 years and over 5% Employed 2% Unemployed 7% Less than high school 11% High school 10% Some college,associate's 7% Bachelor's degree or higher -9 3% 0% 5% 10% 15% 20% SOURCE: US Census Census Tables: S1701(2021 ACS 5-yr Est.) K. EMPLOYMENT LOCATION TRENDS This section provides an overview of employment and industry trends in Lake Oswego that are related to housing. Commuting Patterns: The following figure shows the inflow and outflow of commuters to Lake Oswego according to the Census Employment Dynamics Database.These figures reflect"covered employment" as of 2019,the most recent year available. Covered employment refers to those jobs where the employee is covered by federal unemployment insurance. This category does not include many contract employees and self-employed and therefore is not a complete picture of local employment.The figure discussed here is best understood as indicators of the general pattern of commuting and not exact figures. As of 2017,the most recent year available,the Census estimated there were roughly 23,100 covered employment jobs located in Lake Oswego. Of these, an estimated 2,250 or 10%, are held by local residents,while nearly 21,000 employees commute into the city from elsewhere.This general pattern is fairly common among many communities Census Tables:S1701(2018 ACS 5-yr Estimates);Methodology The Census Bureau uses a set of income thresholds that vary by family size and composition to determine who is in poverty. There are 48 separate income thresholds set based on the possible combinations of household composition. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 12 AN 25-0004 EXHIBIT E-1/PAGE 13 OF 55 in the Metro area, but the pattern is particularly stark here.The most common homes of local workers commuting into the city are Portland, Beaverton,or Tigard. This data set predates the surge in remote working that has taken place over the last few years. In prior years, it was safe to assume that most residents holding jobs outside the community likely commuted physically. Now, a resident might hold a job in another city but work from home. Unfortunately, these data do not quantify this growing segment. Similarly, of the estimated 18,000 employed Lake Oswego residents, 88% of them commute elsewhere to their employment. The most common destinations for Lake Oswego commuters are Portland and Beaverton. Smaller shares work elsewhere in the Portland metro or in the mid-Willamette Valley. FIGURE 2.14: COMMUTING PATTERNS(PRIMARY JOBS),LAKE OSWEGO Metzger • -. Milwaukie Hospi C A.I-T JL HILL • iJ 14 Tryon Cre=elc State - Q 1 1Iwaukie Et M Natural Area .ti • 1 4a e L i�'. - . - -- �_ 1— lardiL,' ----.-------- \ r2:.,, i 99'E 'Os.•ve o 20,900 2,250 15,800 Work in Lake Oswego, Live and work Live in Lake Oswego, live elsewhere \ in Lake Oswego work elsewhere :ryanl , n•s arrd .ink Durham i! _. R . t till / 10% 12% / 88% Jena'i ritage Center 1, •River Grove :: ualtifi1 Stafford ) 1 Legacy Meridian. ` m I, I L■ l• I , .Source: US Census Longitudinal Employer-Household Dynamics Jobs/Household Ratio: Lake Oswego features a balanced jobs-to-households ratio.There are an estimated 23,000 jobs in Lake Oswego (covered), and an estimated 17,500 households in Lake Oswego.This represents 1.3 jobs per household.There is no standard jobs-to-households ratio that is right for all communities,but it can provide a guide to the balance between employment uses and residential uses in the city. There is an average of 1.0 job held for each Lake Oswego household, a majority of which are located outside the city. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 13 AN 25-0004 EXHIBIT E-1/PAGE 14 OF 55 III. CURRENT HOUSING CONDITIONS This section presents a profile of the current housing stock and market indicators in Lake Oswego.This profile forms the foundation to which current and future housing needs will be compared. A. HOUSING TENURE Lake Oswego has a greater share of homeowner households than renter households.The 2021 ACS estimates that 71% of occupied units were owner occupied, and only 29% renter occupied. The ownership rate is little changed since 2000.The estimated ownership rate is higher across Clackamas County(73%)and lower statewide (63%). B. HOUSING STOCK As shown in Figure 2.1, Lake Oswego had an estimated 18,350 housing units in 2023, with a vacancy rate of 5% (includes ownership and rental units).The housing stock has increased by roughly 2,680 units since 2000,or growth of over 17%. FIGURE 3.1: ESTIMATED SHARE OF UNITS,BY PROPERTY TYPE,2023 Lake Oswego, Oregon 80% 63% 60% 40% 21% 20% 0% 9% 6% - 1% 0% 0% Single Single Duplex 3-or 4-plex 5+Units Manuf. Boat, RV, Detached Attached MFR home other temp SOURCE: US Census,City of Lake Oswego Figure 3.1 shows the estimated number of units by type in 2023 based on US Census. Detached single-family homes represent an estimated 63%of housing units. Units in larger apartment complexes of 5 or more units represent 21%of units,and other types of attached homes represent 16% of units. (Attached single family generally includes townhomes, and some 2 to 4-plexes which are separately metered.) Manufactured homes represent well less than 1%of the inventory. C. NUMBER OF BEDROOMS Figure 3.2 shows the share of units for owners and renters by the number of bedrooms they have. In general, owner-occupied units are much more likely to have three or more bedrooms,while renter-occupied units are much more likely to have two or fewer bedrooms. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 14 AN 25-0004 EXHIBIT E-1/PAGE 15 OF 55 FIGURE 3.2: NUMBER OF BEDROOMS FOR OWNER AND RENTER UNITS,2021(LAKE OSWEGO) Number of Bedrooms 5 or more 1% Renter 11% Owner 4 bedrooms 5% 39% 3 bedrooms 19% 33% 2 bedrooms 43% 14% 1 bedroom ° 27% 2% Studio ° 6% 0/ 0% 10% 20% 30% 40% 50% SOURCE: US Census Census Tables: B25042(2021 ACS 5-year Estimates) D. UNIT TYPES BY TENURE As Figure 3.3 and 3.4 show, a large share of owner-occupied units (81%), are detached homes, which is related to why owner-occupied units tend to have more bedrooms. Renter-occupied units are much more distributed among a range of structure types.About 18%of rented units are estimated to be detached homes or manufactured homes, while the remainder are some form of attached unit. Nearly 60%of rental units are in larger apartment complexes. FIGURE 3.3: CURRENT INVENTORY BY UNIT TYPE,FOR OWNERSHIP AND RENTAL HOUSING(LAKE OSWEGO) OWNERSHIP HOUSING OWNERSHIP HOUSING Single Single 5+Units Manuf. Boat,RV, Total Detached Attached Duplex 3-or 4-plex MFR home other temp Units Totals: 10,557 1,292 9 337 781 32 0 13,008 Percentage: 81.2% 9.9% 0.1% 2.6% 6.0% 0.2% 0.0% 100% RENTAL HOUSING RENTAL HOUSING Single Single 5+Units Manuf. Boat,RV, Total Detached Attached Duplex 3-or 4-plex MFR home other temp Units Totals: 934 332 250 675 3,145 0 0 5,337 Percentage: 17.5% 6.2% 4.7% 12.7% 58.9% 0.0% 0.0% 100% Sources: US Census,JOHNSON ECONOMICS,CITY OF LAKE OSWEGO CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 15 AN 25-0004 EXHIBIT E-1/PAGE 16 OF 55 FIGURE 3.4: CURRENT INVENTORY BY UNIT TYPE,BY SHARE Lake Oswego, Oregon 100% 81% ■Owner 80% • Rental 59% g 60% 0 40% 20% 18/ 10/° 13% 6% 6% 0% 5% 3% 0% 0% 0% 0% 0% Single Single Duplex 3-or 4-plex 5+Units Manuf. Boat, RV, Detached Attached MFR home other temp Unit Type Sources: US Census,JOHNSON ECONOMICS,CITY OF LAKE OSWEGO E. AGE AND CONDITION OF HOUSING STOCK Lake Oswego's housing stock reflects the pattern of development over time.The greatest periods of development in Lake Oswego were in the 1970's and 1980's. Roughly 15%of the housing stock has been built since 2000. FIGURE 3.5: AGE OF UNITS FOR OWNERS AND RENTERS(LAKE OSWEGO) 30% 25% Owner 25% % Renter 20% j0i10JI2i4fP23 * :5% 3%■ 1/ of 3� Year Housing Unit Built c; SOURCE: US Census Census Tables: B25036(2021 ACS 5-year Estimates) • Unfortunately, good quantitative data on housing condition is generally unavailable without an intensive on- site survey of all local housing,which is beyond the scope of this analysis.Census categories related to housing condition are ill-suited for this analysis, dealing with such issues as units without indoor plumbing,which was more common in the mid-20th Century, but is an increasingly rare situation.Age of units serves as the closest reliable proxy for condition with available data. • For ownership units, older homes may be in poor condition, but are also more likely to have undergone some repair and renovation over the years. Rental units are more likely to degrade steadily with age and wear-and- CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 16 AN 25-0004 EXHIBIT E-1/PAGE 17 OF 55 tear, and less likely to receive sufficient reinvestment to keep them in top condition, though this is not universally true. F. HOUSING COSTS VS. LOCAL INCOMES Figure 3.6 shows the share of owner and renter households who are paying more than 30% of their household income towards housing costs, by income segment. (Spending 30%or less on housing costs is a common measure of"affordability" used by HUD and others,and in the analysis presented in this report.) As one would expect, households with lower incomes tend to spend more than 30%of their income on housing, while incrementally fewer of those in higher income groups spend more than 30% of their incomes on housing costs.Of those earning less than$20,000,an estimated 91%of owner households and 100%of renters spend more than 30%of income on housing costs. Even among households earning between $50,000 and $75,000 per year, a majority are housing cost burdened. Because Lake Oswego has an income distribution skewed towards higher income levels,there are relatively few households in these lower income segments,compared to most other cities. In total,the US Census estimates that over 31%of Lake Oswego households pay more than 30%of income towards housing costs(2021 American Community Survey, B25106) FIGURE 3.6: SHARE OF LAKE OSWEGO HOUSEHOLDS SPENDING MORE THAN 30% ON HOUSING COSTS, BY INCOME GROUP 100% 100% 91% 92% 88% Owner Households o 82% 80% 74% Renter Households 64% A 60% 51% L0 U, N tto 40% •c = 20% 12% 16% v 0% n Less than $20,000 to $35,000 to $50,000 to $75,000 or $20,000 $34,999 $49,999 $74,999 more Household Income Sources: US Census,JOHNSON ECONOMICS Census Table: B25106(2021 ACS 5-yr Estimates) Housing is generally one of a household's largest living costs,if not the largest.The ability to find affordable housing options, and even build wealth through ownership, is one of the biggest contributors to helping lower income households save and cultivate wealth. Even if renting, affordable housing costs allow for more household income to be put to other needs, including saving. The following figures show the percentage of household income spent towards gross rent' for local renter households only.This more fine-grained data shows that not only are 49%of renters spending more than 30%of their income on gross rent, but an estimated 29%of renters are spending 50%or more of their income on housing and are considered severely rent-burdened. 'The Census defines Gross Rent as"the contract rent plus the estimated average monthly cost of utilities(electricity,gas,and water and sewer) and fuels(oil,coal,kerosene,wood,etc.)if these are paid by the renter(or paid for the renter by someone else)."Housing costs for homeowners include mortgage,property taxes,insurance,utilities and condo or HOA dues. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 17 AN 25-0004 EXHIBIT E-1/PAGE 18 OF 55 Renters are disproportionately lower income relative to homeowners. Housing cost burdens are felt more broadly for these households, and as the analysis presented in a later section shows there is a need for more affordable rental units in Lake Oswego,as in most communities. FIGURE 3.7: PERCENTAGE OF HOUSEHOLD INCOME SPENT ON GROSS RENT,LAKE OSWEGO RENTER HOUSEHOLDS 35% 30% 29% 25% 25% 22% 0 20% =• 15% 14% v • 10% 7% N 5% � ■ 0% olo y�olo 'Lc) ��Io ��olo oe, o O O 0 Lod \ 01 of %of Income to Gross Rent Sources: US Census,JOHNSON ECONOMICS Census Table: B25070(2021 ACS 5-yr Estimates) G. PUBLICLY ASSISTED HOUSING Oregon Housing and Community Services(OHCS)tracks three currently operating affordable housing properties in Lake Oswego,with a total of 76 units.These are properties that are funded through HUD programs,tax credits and other programs which guarantee subsidized rents for qualified households.All of these units,save one,are offered for elderly residents. The Marylhurst Commons, currently under development, is planned to offer 100 affordable units for families.Completion is expected in 2024. The Housing Authority of Clackamas County administers over 1,600 Section 8 housing choice vouchers that allow low-income participants to find rental units anywhere in the county. Under this program, the renters can find participating landlords and the voucher helps to subsidize the cost of a market-rate rental unit.The unit does not have to be in a property dedicated to subsidized affordable housing but can be in any rental property. The high share of renters still paying over 30% of their income towards housing costs indicates that there is an ongoing need for rental units at the lowest price points. Agricultural Worker Housing: Lake Oswego is not currently home to properties dedicated to agricultural workers. This population may also be served by other available affordable units. People Experiencing Homelessness: The Census does make a multi-faceted effort to include the unhoused population in the total Decennial Census count, by attempting to enumerate these individuals at service providers, and in transitory locations such as RV parks or campgrounds,as of the official Census data (4/1/20). However, it is difficult to make an accurate count of this population, and it is generally presumed that the unhoused are undercounted in the Census. The most recent (January 2022) Point-in-Time count of people experiencing homelessness and households experiencing homelessness in Clackamas County' found 597 unhoused individuals on the streets, in shelters, or 5 Figures are for the entire County CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 18 AN 25-0004 EXHIBIT E-1/PAGE 19 OF 55 other temporary and/or precarious housing. The estimated 597 unhoused individuals represent 0.1% of the county's total estimated population in 2022. • An estimated 45%of individuals were in some sort of temporary shelter,while 55%were unsheltered. • The total included 51 children (under age 18), and 26 youth (aged 18-24). • Of those indicating a gender, 60%of those counted identified as men,40%women. • 5%of those counted were Hispanic or Latino compared to 9.5%in the general population. • 304 individuals,or 51%,were counted as"chronically homeless".6 While the Point-in-Time count is one of the few systematized efforts to count people experiencing homelessness across the country in a regular, structured way, it is widely thought to undercount the population of unhoused individuals and households. People who are doubled up,couch surfing,or experiencing domestic violence may not always be accurately counted. In addition to the impossibility of finding all unsheltered individuals experiencing homelessness,the count is conducted in late January,when homeless counts are likely near their lowest of the year due to inclement weather. It also relies on self-reporting. A recent analysis prepared for OHCS to test a potential approach for preparing Housing Capacity Analyses on a regional basis included estimates of the unhoused population in Oregon communities,including Lake Oswego.The approach utilizes a combination of data from the bi-annual Point-in-Time count and from tracking of unhoused school-aged children in keeping with the McKinney-Vento Act.The analysis estimates 239 households experiencing homelessness in Lake Oswego as of mid-2020. These include households that are unsheltered, in temporary shelters, or staying with friends or relatives. These households are a component of current and future housing need. The persistence of people experiencing homelessness speaks to the need for continuing to build a full spectrum of services and housing types to shelter this population,from temporary shelter to subsidized affordable housing. An analysis of the ability of current and projected housing supply to meet the needs of low-income people and the potential shortfall is included in the following sections of this report. 6 HUD defines "chronically homeless" as an individual with a disability as defined by the McKinney-Vento Assistance Act,who has been in uninhabitable conditions for more than 12 mo.or on four separate occasions in the last three years;or has been in institutional care for less than 90 days;or a family with an adult head of household who meets this definition. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 19 AN 25-0004 EXHIBIT E-1/PAGE 20 OF 55 IV. CURRENT HOUSING NEEDS (CITY OF LAKE OSWEGO) The profile of current housing conditions in the study area is based on Census 2010, which the Portland State University Population Research Center(PRC) uses to develop yearly estimates through 2019. The 2019 estimate is forecasted to 2023 using the estimated growth rate realized since 2010. FIGURE 4.1:CURRENT LAKE OSWEGO HOUSING PROFILE(2023) CURRENT HOUSING CONDITIONS(2023) SOURCE Total 2023 Population: 41,550 PSU Pop.Research Center - Estimated group housing population: 329 (0.8%of Total) US census Estimated Non-Group 2023 Population: 41,221 (Total-Group) Avg. HH Size: 2.36 US Census Estimated Non-Group 2023 Households: 17,481 (Pop/HH Size) Total Housing Units: 18,345 (Occupied+Vacant) Census 2010+permits Occupied Housing Units: 17,481 (=#of HH) Vacant Housing Units: 864 (Total HH-Occupied) Current Vacancy Rate: 4.7% (Vacant units/Total units) Sources: Johnson Economics,City of Lake Oswego,PSU Population Research Center,U.S.Census *This table reflects population,household and housing unit projections shown in Figure 2.1 We estimate a current population of 41,550 residents, living in 17,481 households (excluding group living situations).Average household size is 2.4 persons. There are an estimated 18,345 housing units in the city, indicating an estimated vacancy rate of 5%.This includes units vacant for any reason, not just those which are currently for sale or rent. ESTIMATE OF CURRENT HOUSING DEMAND Following the establishment of the current housing profile, the current housing demand was determined based upon the age and income characteristics of current households. The analysis considered the propensity of households in specific age and income levels to either rent or own their home (tenure), in order to derive the current demand for ownership and rental housing units and the appropriate housing cost level of each.This is done by combining data on tenure by age and tenure by income from the Census American Community Survey(tables: B25007 and B25118, 2021 ACS 5-yr Estimates). The analysis takes into account the average amount that owners and renters tend to spend on housing costs. For instance, lower income households tend to spend more of their total income on housing, while upper income households spend less on a percentage basis. In this case, it was assumed that households in lower income bands would prefer housing costs at no more than 30% of gross income (a common measure of affordability). Higher income households pay a decreasing share down to 20%for the highest income households. While the Census estimates that most low-income households pay more than 30%of their income for housing,this is an estimate of current preferred demand. It assumes that low-income households prefer (or demand) units affordable to them at no more than 30%of income, rather than more expensive units. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 20 AN 25-0004 EXHIBIT E-1/PAGE 21 OF 55 Figure 4.2 presents a snapshot of current housing demand (i.e. preferences)equal to the number of households in the study area (17,481).The breakdown of tenure(owners vs. renters) reflects data from the 2021 ACS. FIGURE 4.2:ESTIMATE OF CURRENT HOUSING DEMAND IN LAKE OSWEGO(2023) Ownership Price Range #of Income Range /of Cumulative Households Total $0k-$80k 330 Less than$15,000 2.7% 2.7% $80k-$130k 267 $15,000-$24,999 2.2% 4.9% $130k-$180k 357 $25,000-$34,999 2.9% 7.8% $180k-$250k 636 $35,000-$49,999 5.2% 13.0% $250k-$350k 1,051 $50,000-$74,999 8.6% 21.7% $350k-$440k 1,147 $75,000-$99,999 9.4% 31.1% $440k-$510k 1,109 $100,000-$124,999 9.1% 40.2% $510k-$560k 892 $125,000-$149,999 7.3% 47.5% $560k-$680k 1,827 $150,000-$199,999 15.0% 62.5% $680k+ 4,577 $200,000+ 37.5% 100.0% Totals: 12,191 %of All: 69.7% Rental Rent Level #of Income Range /of Cumulative Households Total $0-$400 348 Less than$15,000 6.6% 6.6% $400-$700 383 $15,000-$24,999 7.2% 13.8% $700-$900 554 $25,000-$34,999 10.5% 24.3% $900-$1300 621 $35,000-$49,999 11.7% 36.0% $1300-$1800 837 $50,000-$74,999 15.8% 51.9% $1800-$2200 764 $75,000-$99,999 14.4% 66.3% $2200-$2500 505 $100,000-$124,999 9.6% 75.9% $2500-$2800 410 $125,000-$149,999 7.8% 83.6% $2800-$3400 271 $150,000-$199,999 5.1% 88.7% $3400+ 596 $200,000+ 11.3% 100.0% All Households Totals: 5,290 %of All: 30.3% 17,481 Sources: PSU Population Research Center,Claritas.,Census,JOHNSON ECONOMICS Census Tables: B25007, B25106,B25118(2021 ACS 5-yr Estimates) Claritas: Estimates of income by age of householder The estimated home price and rent ranges are irregular because they are mapped to the affordability levels of the Census income level categories. For instance, an affordable home for those in the lowest income category (less than $15,000)would have to cost$80,000 or less.Affordable rent for someone in this category would be $400 or less. The affordable price level for ownership housing assumes 30-year amortization,at an interest rate of 5%(somewhat less than the current market rate,but in line with historic norms),with 10%down payment.These assumptions are designed to represent prudent lending and borrowing levels for ownership households. The 30-year mortgage commonly serves as the standard. In the 2000's, down payment requirements fell significantly, but lending standards tightened significantly since the 2008/9 credit crisis. While 20% is often cited as the standard for most buyers,it is common for homebuyers,particularly first-time buyers,to pay significantly less than this using available programs. Interest rates are subject to disruption from national and global economic forces, and therefore impossible to forecast beyond the short term. The 5% used here is roughly the average 30-year rate over the last 20 years.The CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 21 AN 25-0004 EXHIBIT E-1/PAGE 22 OF 55 general trend has been falling interest rates since the early 1980's,but coming out of the recent inflationary period, the Federal Reserve has raised its base rate significantly in recent years and mortgage rates have also climbed to levels not seen in almost 20 years. CURRENT HOUSING INVENTORY The profile of current housing demand(Figure 4.2)represents the preference and affordability levels of households. In reality, the current housing supply (Figures 4.3 and 4.4 below) differs from this profile, meaning that some households may find themselves in housing units which are not optimal, either not meeting the household's own/rent preference,or being unaffordable(requiring more than 30%of gross income). A profile of current housing supply in Lake Oswego was estimated based on permit data from the City of Lake Oswego and Census data from the most recently available 2021 ACS, which provides a profile of housing types (single family, attached, manufactured home, etc.), tenure, housing values, and rent levels. The 5-year estimates from the ACS were used because margin of error is lower than 1-year ACS estimates. • An estimated 71% of housing units are ownership units, while an estimated 29% of housing units are rental units. This is slightly different than the estimated demand profile shown in Figure 4.2, which estimated a bit higher demand for rental units given local income and age levels.The inventory includes vacant units. • 81%of ownership units are detached homes,and very few are manufactured homes. 17.5%of rental units are either single family homes or manufactured homes,while 59%are in structures of 5 units or more. • Of total housing units, an estimated 63%are detached homes or manufactured homes. 37%are some sort of attached unit type. FIGURE 4.3:PROFILE OF CURRENT HOUSING SUPPLY BY TYPE(2023) Lake Oswego, Oregon 100% 81% ■Owner 80% S9/ Rental 60% 0 v 40% 18% 20% 10% 0 13% - 6/ 0% 5% 3% 6% 0% 0% 0% 0% 0% Single Single Duplex 3-or 4-plex 5+Units MFR Manuf. Boat, RV, Detached Attached home other temp Unit Type Sources: US Census,PSU Population Research Center,JOHNSON ECONOMICS Census Tables: B25004, B25032,B25063, B25075(2021 ACS 5-yr Estimates) • The affordability of different unit types is an approximation based on Census data on the distribution of housing units by value(ownership)or gross rent(rentals). • Most subsidized affordable housing units found in the city are represented by the inventory at the lowest end of the rental spectrum. • Ownership housing found at the lower end of the value spectrum generally reflect older, smaller homes, or homes in poor condition on small or irregular lots. It is important to note that these represent estimates of CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 22 AN 25-0004 EXHIBIT E-1/PAGE 23 OF 55 current property value or current housing cost to the owner,not the current market pricing of homes for sale in the city. These properties may be candidates for redevelopment when next they sell but are currently estimated to have low value. FIGURE 4.4:PROFILE OF CURRENT HOUSING SUPPLY,ESTIMATED AFFORDABILITY IN LAKE OSWEGO(2023) Ownership Housing Rental Housing Affordable Estimated Affordable Estimated Income Range Share of Total Units Price Level Units Rent Level Units Less than$15,000 $0k-$80k 135 $0-$400 70 I 1% $15,000-$24,999 $80k-$130k 129 $400-$700 43 I 1% $25,000-$34,999 $130k-$180k 170 $700-$900 106 I 2% $35,000-$49,999 $180k-$250k 406 $900-$1300 518 • 5% $50,000-$74,999 $250k-$350k 735 $1300-$1800 1,852 14% $75,000-$99,999 $350k-$440k 839 $1800-$2200 1,289 12% $100,000-$124,999 $440k-$510k 753 $2200-$2500 602 7% $125,000-$149,999 $510k-$560k 924 $2500-$2800 223 - 6% $150,000-$199,999 $560k-$680k 2,217 $2800-$3400 229 13% $200,000+ $680k+ 6,700 $3400+ 404 39% 71% 13,008 29% 5,337 0% 10% 20% 30% 40% Sources: US Census,PSU Population Research Center,JOHNSON ECONOMICS Census Tables: B25004, B25032,B25063, B25075(2021 ACS 5-yr Estimates) ■ Most housing (58%) in Lake Oswego is found in price and rent levels affordable to those earning at least $125,000 per year,which is close to the city's median income.There is very little housing available to those in lower income segments. Over 90% of housing is affordable to those earning at least $50,000, and only 9% affordable to those earning less than this. COMPARISON OF CURRENT HOUSING DEMAND WITH CURRENT SUPPLY A comparison of estimated current housing demand with the existing supply identifies the existing discrepancies between needs and the housing which is currently available. The estimated number of units outnumbers the number of households by roughly 865 units, indicating an average vacancy rate of 4.7%. In general, this identifies that there is currently support for more ownership housing at lower price points, while the upper end of the market is generally well supplied.This is because most housing in Lake Oswego is clustered at higher property values, which matches the community's high average household income but leaves some households underserved. The analysis finds that the current market rates for most rental units are in the $1,300 to $2,200/month range. Therefore,this is where most of the rental unit supply is currently clustered. However,the greatest unmet need is found at the lower end of the income scale, where many current renters pay more than 30% of their income in housing costs. Rentals at the most expensive levels generally represent single family homes for rent. Figures 4.5 and 4.6 present this information in chart form,comparing the estimated number of households in given income ranges,and the supply of units currently valued(ownership)or priced(rentals)within those income ranges. The data is presented for owner and renter households. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 23 AN 25-0004 EXHIBIT E-1/PAGE 24 OF 55 FIGURE 4.5:COMPARISON OF OWNER HOUSEHOLD INCOME GROUPS TO ESTIMATED SUPPLY AFFORDABLE AT THOSE INCOME LEVELS IN LAKE OSWEGO(2023) Owner Households vs.Current Units 7,000 6,000 •Est.Owner Households N = 5,000 Units Valued at Income Level D - 4,000 0 v 3,000 0 0 2,000 o 1,000 � xk 0 M ■ ■ ■ I 0 0 < < < x0 ) ) ) ) 0) 0 0 00 0 0 0 0 0 0 00 h, p, p, op e c c 0 t gyp, 1, '0 0 0hy hL hgy h h 'lc) O • • • • • h ra� 0 0 0 0 00 0 0 0 0 0 0 0 ys� 0 0 0 0 0 0 0 00h, h, 'h, 0, Ah' 0, h, 0 He hti hu h' h h 0 � h h'\ hti hti Income Cohorts Sources: PSU Population Research Center,City of Lake Oswego,Census,JOHNSON ECONOMICS FIGURE 4.6:COMPARISON OF RENTER HOUSEHOLD INCOME GROUPS TO ESTIMATED SUPPLY AFFORDABLE AT THOSE INCOME LEVELS IN LAKE OSWEGO(2023) Renter Households vs.Current Units 2,000 •Est.Renter Households E1,500 Units Affordable at Income Level t° 1,000 a) U, = 500 x 0 ■ ■ 1II I I I I . h h h h h ti ti ' O ' wren 000 000 000 000 000 00 00 00 hL �e`'� htih hlh, h''h, h`'0 huh 000 1h0 h00 h,' h, 'IN' Income Cohorts Sources: PSU Population Research Center,City of Lake Oswego,Census,JOHNSON ECONOMICS The home value and rent segments which show a"surplus"in Figures 4.5 and 4.6 illustrate where current property values and market rent levels are in Lake Oswego. Housing prices and rent levels will tend to congregate around those levels.These levels will be too costly for some(i.e.require more than 30%in gross income)or"too affordable" for others(i.e.they have income levels that indicate they could afford more expensive housing if they chose). In general, these findings demonstrate that there are few lower-value housing opportunities for many owner households, and potential support for some less expensive types of ownership housing.There is a need for more rental units at lower rent levels(<$900/mo.). HOME SALE PRICES It is important to note that the figures presented in the prior section represent estimates of current property value or current housing cost to the owner, not the current market pricing of homes for sale in the city. For instance, a household living in a manufactured home that has been paid off over many years may have relatively low housing costs.This indicates that one owner household is living in a"lower value"unit. It does not indicate that units at this price point are available on the current market. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 24 AN 25-0004 EXHIBIT E-1/PAGE 25 OF 55 If this hypothetical household were to sell their home, it would sell at a higher price reflecting inflation and current achievable market prices. For this reason,many of the lower value or lower rent units found in the previous section will actually become higher-priced units when they are sold or become vacant. For reference,this section presents home sales data from 2022 to indicate housing costs for new entrants into the market(Figure 4.7). • The median sale price was$860,000. • The average(mean)sale price was$1,075,000. • The average price per square foot was$430/s.f. • The median square footage was 2,300 s.f. FIGURE 4.7:LAKE OSWEGO HOME SALES(12 MONTHS) Home Sales by Unit Type Home Sales by Price Level $900,000+ 319 $800,000-$899,000 66 20% $700,000-$799,000 67 $600,000-$699,000 56 8% $500,000-$599,000 ■ 39 0 ° 72% $400,000-$499,000 . 31 $300,000-$399,000 . 47 $200,000-$299,000 ■ 43 $100,000-$199,000 13 Detached Home Manuf. Home <$100,000 0 Attached Home Condo 0 100 200 300 400 Sources: RMLS,JOHNSON ECONOMICS • 48%of sales were priced above$900,000. • 34%of sales were priced between$500,000 and$899,000. • Only 18%of sales were priced at less than $500,000. • Only 7%of sales were priced below$300,000. Affordability: As indicated, roughly 75%of recent sales in Lake Oswego were priced at least $600,000. Homes in this range would be mostly affordable to households earning at least $175,000 per year, which is well above the median household income of$123,000. Roughly 66% of households earn less than $175,000 per year, meaning that the bulk of housing supply on the current for-sale market(75%) is likely too expensive for most of these households. The findings of current need form the foundation for projected future housing need, presented in the following section. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 25 AN 25-0004 EXHIBIT E-1/PAGE 26 OF 55 V. FUTURE HOUSING NEEDS-2043 (CITY OF LAKE OSWEGO) The projected future(20-year) housing profile(Figure 5.1)in the study area is based on the current housing profile (2023), multiplied by an assumed projected future household growth rate. The projected future growth is the forecasted 2043 population for the City of Lake Oswego included in the most recently adopted Coordinated Population Forecast from Metro for all cities in the region.This was adopted in 2021 and projected a very modest growth rate for Lake Oswego of well less than 1%per year.' FIGURE 5.1:FUTURE HOUSING PROFILE(2043),LAKE OSWEGO PROJECTED FUTURE HOUSING CONDITIONS(2023-2043) SOURCE 2023 Population(Minus Group Pop.) 41,221 (Est.2022 pop.-Group Housing Pop.) PSU Projected Annual Growth Rate 0.05% Metro Coordinated Forecast(2021) Metro 2043 Population(Minus Group Pop.) 41,629 (Total 2043 Population-Group Housing Pop.) Estimated group housing population: 332 1.7%of total pop.(held constant from 2022) US Census Total Estimated 2043 Population: 41,961 Metro Coordinated Forecast(2021) Metro Estimated Non-Group 2043 Households: 19,298 Metro Coordinated Forecast(2021) Metro New Households 2023 to 2043 1,816 Avg. Household Size: 2.16 Projected 2043 pop./2043 houseolds US Census Total Housing Units: 20,313 Occupied Units plus Vacant Occupied Housing Units: 19,298 (=Number of Non-Group Households) Vacant Housing Units: 1,016 (=Total Units-Occupied Units) Projected Market Vacancy Rate: 5.0% Stabilized vacancy assumption Sources: PSU Population Research Center,Metro,Census,JOHNSON ECONOMICS LLC *Projections are applied to estimates of 2023 population,household and housing units shown in Figure 2.1 The model projects growth in the number of non-group households over 20 years of over 1,800 households, but with accompanying population growth of just 411 new residents. The difference is that the household size is expected to decrease significantly to 2.2 persons,meaning more smaller households to house the same population. (The number of households differs from the number of housing units, because the total number of housing units includes a percentage of vacancy. Projected housing unit needs are discussed below.) 7 The projected growth and housing need presented in this report conforms to the statutory approach to completing a Goal 10 needs analysis. To comply with state rules,the analysis relies on estimates of current population from the Portland State University Population Research Center (PRC)and projections of future growth from the most recent Metro distributed forecast.The forecasted growth rates from Metro are very low in comparison to rates experienced during the past 20 years and low in comparison to projected rates in other parts of the region and state. The City's population increased by about 18%,with an average annual growth rate of about 1%between 2000 and 2020 per year. During the next 20 years,forecasted growth is projected to be a total of 1%,with an average annual growth rate of just 0.05%per year.Many community members in Lake Oswego,including members of the project Task Force,as well as members of the City's Planning Commission and City Council, have questioned the accuracy of the projected growth rates,but no contrary expert testimony of the population forecast is presented.To the extent the City grows faster than the growth rates predict,the deficit of land available to accommodate housing over the long term will be more acute and the City will consume remaining buildable land more quickly,potentially running out of buildable land within several years. Per ORS 197.297,the City is required to adopt an updated HNA at least once every six years;thus,the City will have an additional opportunity in 2029 to correct the population forecast,if the projections in the 2023 HNA are notably different than observed trends.It will be important for the City to coordinate closely with Metro as it updates its growth rates and to continue to monitor actual growth patterns,as well as the supply of buildable land in the City.To the extent growth occurs at a faster rate than projected,the City will need to identify and implement strategies to address a potential shortage in available land for housing in the near term. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 26 AN 25-0004 EXHIBIT E-1/PAGE 27 OF 55 PROJECTION OF FUTURE HOUSING UNIT DEMAND(2043) The profile of future housing demand was derived using the same methodology used to produce the estimate of current housing need. This estimate includes current and future households but does not include a vacancy assumption. The vacancy assumption is added in the subsequent step. Therefore,the need identified below is the total need for actual households in occupied units(19,298). The analysis considered the propensity of households at specific age and income levels to either rent or own their home, in order to derive the future need for ownership and rental housing units, and the affordable cost level of each.The projected need is for all 2043 households and therefore includes the needs of current households. The price levels presented here use the same assumptions regarding the amount of gross income applied to housing costs,from 30%for low income households down to 20%for the highest income households. The affordable price level for ownership housing assumes 30-year amortization,at an interest rate of 5%,with 10% down payment. Because of the impossibility of predicting variables such as interest rates 20 years into the future, these assumptions were kept constant from the estimation of current housing demand. Income levels and price levels are presented in 2023 dollars. Figure 5.2 presents the projected occupied future housing demand(current and new households,without vacancy) in 2043. FIGURE 5.2:PROJECTED OCCUPIED FUTURE HOUSING DEMAND(2043),LAKE OSWEGO Ownership #of Price Range Households Income Range %of Total Cumulative $0k-$80k 364 Less than$15,000 2.7% 2.7% Extremely <30%MFI $80k-$130k 295 $15,000-$24,999 2.2% 4.9% Low Income $130k-$180k 394 $25,000-$34,999 2.9% 7.8% Very Low <50%MFI $180k-$250k 702 $35,000-$49,999 5.2% 13.0% I Income $250k-$350k 1,160 $50,000-$74,999 8.6% 21.7% Low Income <80%MFI $350k-$440k 1,266 $75,000-$99,999 9.4% 31.1% $440k-$510k 1,224 $100,000-$124,999 9.1% 40.2% $510k-$560k 984 $125,000-$149,999 7.3% 47.5% $560k-$680k 2,017 $150,000-$199,999 15.0% 62.5% $680k+ 5,053 $200,000+ 37.5% 100.0% Totals: 13,458 %of All: 69.7% Rental #of Rent Level Households Income Range %of Total Cumulative $0-$400 385 Less than$15,000 6.6% 6.6% Extremely <30%MFI $400-$700 423 $15,000-$24,999 7.2% 13.8% li Low Income $700-$900 611 $25,000-$34,999 10.5% 24.3% Very Low <50%MFI $900-$1300 686 $35,000-$49,999 11.7% 36.0% I Income $1300-$1800 924 $50,000-$74,999 15.8% 51.9% Low Income <80%MFI $1800-$2200 843 $75,000-$99,999 14.4% 66.3% $2200-$2500 558 $100,000-$124,999 9.6% 75.9% $2500-$2800 453 $125,000-$149,999 7.8% 83.6% $2800-$3400 299 $150,000-$199,999 5.1% 88.7% $3400+ 658 $200,000+ 11.3% 100.0% All Units Totals: 5,840 %of All: 30.3% 19,298 Sources: Census,Claritas,JOHNSON ECONOMICS CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 27 AN 25-0004 EXHIBIT E-1/PAGE 28 OF 55 The number of households across the income spectrum seeking a range of both ownership and rental housing is anticipated to grow. It is projected that the homeownership rate in Lake Oswego will fall somewhat over the next 20 years to under 70%from 71%. COMPARISON OF FUTURE HOUSING DEMAND TO CURRENT HOUSING INVENTORY The profile of occupied future housing demand presented above(Figure 5.2)was compared to the current housing inventory presented in the previous section to determine the total future need for new housing units by type and price range(Figure 5.3). This estimate includes a vacancy assumption. As reflected by the most recent Census data, and as is common in most communities, the vacancy rate for rental units is typically higher than that for ownership units. An average vacancy rate of 5%is assumed for the purpose of this analysis. FIGURE 5.3: PROJECTED FUTURE NEED FOR NEW HOUSING UNITS(2043),LAKE OSWEGO OWNERSHIP HOUSING Multi-Family Single Single 3-or 4- 5+Units Manuf. Boat,RV, Total %of Unit Type: Detached Attached 2-unit plex MFR home other temp Units Units Totals: 708 132 31 57 92 3 0 1,024 52.0% Percentage: 69.2% 12.9% 3.1% 5.6% 9.0% 0.2% 0.0% 100% RENTAL HOUSING Multi-Family Single Single 3-or 4- 5+Units Manuf. Boat,RV, Total %of Unit Type: Detached Attached 2-unit plex MFR home othertem P Units Units Totals: 52 87 73 148 585 0 0 944 48.0% Percentage: 5.5% 9.2% 7.7% 15.7% 61.9% 0.0% 0.0% 100% TOTAL HOUSING UNITS Multi-Family Single Single 3-or 4- 5+Units Manuf. Boat,RV, Total %of Unit Type: Detached Attached 2-unit plex MFR home other temp Units Units Totals: 760 220 104 205 677 3 0 1,968 100% Percentage: 38.6% 11.2% 5.3% 10.4% 34.4% 0.1% 0.0% 100% Sources: PSU,City of Lake Oswego,Census,Claritas,JOHNSON ECONOMICS • The results show a need for 1,968 new housing units by 2043. • Of the new units needed, roughly 52% are projected to be ownership units, while 48% are projected to be rental units.This represents more renters than the estimated tenure split, but it is projected that more rental units will need to be added to correct the current modest deficit of rental units, plus the future ownership rate will fall slightly. This results in a proportionately greater share of future units being rental, rather than ownership units. • There is some need for new ownership housing at the middle to low-end of the pricing spectrum. But income trends suggest that the greatest demand will remain in the upper-middle price ranges($300k to$600k). • The greatest need for rental units is found at the lowest and some higher price points. Market rents are currently clustered in the $1,300 to $2,200 range in current dollars.Therefore, most units are to be found in this range. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 28 AN 25-0004 EXHIBIT E-1/PAGE 29 OF 55 ■ There is insufficient rental housing for the lowest income households making $35,000 or less or detached single-family homes for rent. Many households will need rent levels lower than the market rate in order to maintain housing costs that are affordable(see more detail below). Needed Unit Types The mix of needed unit types shown in Figure 5.3 reflects both past trends and anticipated future trends. Single detached units are expected to continue to make up a large share of new housing development for ownership households over the next 20 years. However,an increasing share of new needed units is anticipated to be attached housing types to accommodate renters and first-time home buyers. ■ 39%of the new units are projected to be single detached homes or new manufactured homes, while 61% is projected to be some form of attached housing. ■ Single attached units(townhomes on individual lots)are projected to meet roughly 11%of future need. These are defined as units on separate tax lots,attached by a wall but separately metered,the most common example being townhome units. ■ Duplex,triplex,and four-plex units are projected to represent a growing 16%of the total need, reflecting new state rules for middle housing zoning. Duplex units would include a detached single-family home with an accessory dwelling unit on the same lot, or with a separate unit in the home (for instance, a rental basement unit.) ■ 34%of all needed units are projected to be multi-family in structures of 5+attached units. ■ Less than 1% of new needed units are projected to be manufactured home units, which meet the needs of some low-income households for both ownership and rental. ■ Of ownership units, 69% are projected to be single detached homes or manufactured homes, and 31% are projected to be attached forms. ■ Nearly all new rental units are projected to be found in new attached buildings,with 62% projected in rental properties of 5 or more units, and 33% in other attached housing forms. Only 5.5% of new rental units are projected to be detached homes, including manufactured homes. Group Housing Needs:There is an estimated population of 332 individuals living in group housing in 2043, based on an assumption that the share of the population living in group quarters (1.7%) remains stable from current levels. This would represent an increase of just a few people living in group quarters, as forecasted population growth is modest. In Lake Oswego, the Census estimates that nearly all of Lake Oswego's group housing population lives in nursing facilities. NEEDED AFFORDABILITY LEVELS Figure 5.4 presents the estimated need for net new housing units by major income segment,based on the projected demographics of new households to the market area.The needed affordability levels presented here are based on current dollars. Figure 5.4 also discusses the housing types typically attainable by residents at these income levels. Note that Figure 5.4 presents the official state measure of "low income" used to set rent and income limits for various affordable housing programs. This estimate via OHCS and HUD are based on an estimate of median income in Clackamas County of$106k in 2022, based on a family of four,while the median income in Lake Oswego was a higher$123k. For this analysis,the estimated Median Family Income(MFI)for a family of four($106k)was adjusted to match the average household size in Lake Oswego of 2.4 persons ($89.5k) so that the estimates presented below reflect the city average. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 29 AN 25-0004 EXHIBIT E-1/PAGE 30 OF 55 Figure 5.4 presents some of the types of housing product that might commonly serve households in these income ranges. Many households below 60% MFI or even higher income will require some sort of subsidized affordable unit or voucher to find housing affordability.Those at 60%to 100%MFI may find housing in older and substandard market rate rentals, manufactured homes,and middle housing types. FIGURE 5.4: PROJECTED NEED FOR NEW HOUSING AT DIFFERENT INCOME LEVELS,LAKE OSWEGO Income Level Owner Renter Household Income Segment Total Share Common Housing Product (Rounded) Units Units Government-subsidized;Voucher; Extremely Low Inc. <30%MFI <$27,500 56 149 205 10% Shelter;Transitional Aging/substandard rentals; Very Low Income 30%-60%MFI $27.5k-$55k 95 221 317 16% Government-subsidized;Voucher; Manufactured homes Aging apartments;Government- Low Income 60%-80%MFI $55k-$73k 71 120 190 10% subsidized; Plexes;Aging single- detached;Small homes Single-detached homes; Middle Income 80%-120%MFI $73k-$11ok 134 172 306 16% Townhomes;Condominiums; Newer apartments Single-detached homes; Upper Income >120%MFI >$110,000 669 282 951 48% Townhomes;Condominiums; New apartments TOTAL: 1,024 944 1,968 100% Sources: HUD,Census,Claritas,JOHNSON ECONOMICS ■ Figure 5.3 presents the net NEW housing unit need over the next 20 years. However, there is also a current need for more affordable units. For all households,current and new,to pay 30%or less of their income towards housing in 2043, more affordable rental units (subsidized and non-subsidized) would be required. This indicates that some of the current supply, while it shows up as existing available housing, would need to become less expensive to meet the needs of current households. ■ There is a finding of new need at the lowest end of the rental spectrum ($900 and less). ■ The projection of future ownership units finds that the supply at the lowest end of the spectrum will be insufficient due to the prevalence of newer homes, many of which will be detached houses. (This reflects the estimated value of the total housing stock, and not necessarily the average pricing for housing currently for sale.) Ownership options and lower and middle price points are often manufactured homes, townhomes, condos,and small detached homes,often on smaller lots. Subsidized Affordability Housing Need As alluded to in Figure 5.4,some low-income households,and particularly the lowest income households,typically need some sort of subsidized affordable housing in order to find rents affordable given their modest resources and other household spending needs. Figure 5.5 below presents estimates of need at key low-income affordability levels in 2022 and in 2043.The table uses HUD definitions of Extremely Low, Very Low, and Low Income, as well as 60% MFI which is a common affordability level for tax credit properties. ■ There is an existing and on-going need at these levels,based on income levels specified by OHCS for Clackamas County. An estimated 12%of households qualify as at least"low income"or lower on the income scale,while CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 30 AN 25-0004 EXHIBIT E-1/PAGE 31 OF 55 9% of households qualify as "extremely low income". (Again, this is based on the official state measure of Clackamas County median income for application to HUD and other subsidized affordable housing programs, which is relatively high.) FIGURE 5.5: PROJECTED NEED FOR HOUSING AFFORDABLE AT Low INCOME LEVELS,LAKE OSWEGO Current Need(2022) Future Need(2043) NEW Need(20-Year) Affordablilty Level Income Level* #of Units %of All #of Units %of All #of Units %of All Extremely Low Inc. <30%MFI < $26,800 1,492 9% 1,697 9% 205 10% Very Low Income 30%-50%MEI <_ $44,700 1,560 9% 1,771 9% 212 11% Low Income 50%-80%MFI <_ $71,600 2,075 12% 2,370 12% 295 15% TOTAL: 580%MFI _< $71,600 5,127 29% 5,839 30% 712 36% Tax Credit <_60%MFI <_ $53,700 3,962 23% 4,483 23% 521 26% Sources: OHCS,Claritas,JOHNSON ECONOMICS,HUD * Income levels are based on OHCS guidelines for avg.Lake Oswego household size of 2.4 persons. ■ Typically, only rent-subsidized affordable properties can accommodate these extremely-low-income households and many other low-income households at "affordable" housing cost levels. Often the lowest income households must be served by housing choice vouchers and public housing. Tax credit projects are more likely to serve those earning 50%to 60%of MFI. Housing Need for People Experiencing Homelessness: Given the low forecasted population growth, Lake Oswego is assumed to maintain a fairly stable number of unhoused individuals and households over this period. Unhoused individuals and families may require a mixture of shelter types depending on individual circumstances,ranging from emergency shelter to transitional housing to permanent subsidized housing. This population is a subset of the extremely-low-income population shown in prior figures. Agricultural Worker Housing:There is currently no housing dedicated to this population in Lake Oswego. Based on the assumption that this type of housing will maintain its current representation in the local housing stock, this indicates that there will likely be no new need for housing dedicated specifically for agricultural workers over the planning period. However,this population may also be served by other available affordable units. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 31 AN 25-0004 EXHIBIT E-1/PAGE 32 OF 55 VI. RECONCILIATION OF FUTURE NEED (2043) & LAND SUPPLY This section summarizes the results of the Buildable Lands Inventory (BLI). The BLI is presented in detail in an accompanying memo to this report. The BLI was conducted for land within the city limits, assessing vacant and partially vacant lands based on residential zoning, and environmental and other constraints that may impact development. The following table (Figure 6.1) presents the estimated new unit capacity of the buildable lands identified in the City of Lake Oswego and within the UGB. Residential zones, as well as mixed-use zones that can accommodate some residential uses, were included in the inventory, and are broken into broad categories based on housing density. FIGURE 6.1: ESTIMATED BUILDABLE LANDS CAPACITY BY ACREAGE AND NO.OF UNITS(2023) ACRES ACREAGE Gross Constrained Unconstrained Developable Unit Land Type Acres Area(Acres) Area(Acres) Acres Capacity Residential 3,530 802 2,784 174 705 Mixed Use 490 96 397 10 146 Non-Residential 172 21 150 - - Public/Other 3,147 1,274 1,899 - - Acres Total: 7,339 2,193 5,230 185 851 UNITS UNIT TYPE Single Family Middle Housing Multi-Family Unit Housing Type Units Units Units Capacity Residential 648 39 17 705 Mixed Use 5 23 118 146 Non-Residential - - - - Public/Other - - - - Vacant and Partially Vacant Total: 653 62 135 851 Additional Capacity Approved Developments 2 23 341 366 Additional Middle Housing Infill - 110 - 110 TOTAL HOUSING UNIT CAPACITY: 655 195 476 1,327 Source: MIG • There is a total estimated remaining capacity of 1,327 units of different types within the study area. • The estimated remaining capacity for low density housing units remains the greatest share at capacity for 655 units,or 49%of the total. • There is a total estimated capacity for 195 middle housing units, including future infill in low density zones. This is roughly 15%of the total unit capacity. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 32 AN 25-0004 EXHIBIT E-1/PAGE 33 OF 55 • There is a total estimated capacity for 476 housing units in higher density multi-dwelling properties. This is roughly 36%of the total unit capacity. • 28%of the total capacity(366 units) is found in units already approved for development as of the time of this analysis.Additional infill opportunities identified on large-lot residential and some commercial lands account for an estimated 8%of capacity. See the attached Appendix for full Buildable Land Inventory details and methodology. The following table summarizes the forecasted future unit need for Lake Oswego. These are the summarized results from Section V of this report, presented here for reference. FIGURE 6.2: SUMMARY OF FORECASTED FUTURE UNIT NEED(2043) TOTAL HOUSING UNITS Multi-Family Single Single 3 or 4- 5+Units Manuf. Boat,RV, Total %of Unit Type: Detached Attached 2-unit plex MFR home other temp Units Units Totals: 760 220 104 205 677 3 0 1,968 100% Percentage: 38.6% 11.2% 5.3% 10.4% 34.4% 0.1% 0.0% 100% New Units Needed Single Detached Homes 760 a) Townhomes 220 2 -4 Plex Units 309 oa c 3 5 or More Units 677 Manufactured Homes 3 00 OO OO 00 0`)'L O cb y0 Housing Units Sources: PSU Population Research Center,Census,Johnson Economics Comparison of Housing Need and Capacity There is a total forecasted need for nearly 2,000 units over the next 20 years based on the forecasted growth rate. This is greater than the estimated total capacity of 1,327 units. Figure 6.3 below presents a comparison of the BLI capacity for new housing units, compared to the estimate for new unit need by 2043. It breaks down need by general zoning category(LDR, MDR, HDR). • The projected demand for low-density housing types is higher than the remaining capacity by an estimated 192 units,or the equivalent of 38 acres of low density residential land. • The results find a deficit for medium-density housing of 249 units,or 31 acres. • The projected demand for high-density housing types is higher than the remaining capacity by an estimated 201 units,or the equivalent of 17 acres of high density residential land. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 33 AN 25-0004 EXHIBIT E-1/PAGE 34 OF 55 • These findings assume that under newly adopted state rules,3%of available buildable parcels in the LDR zone will be used for the various types of attached units(single-family attached townhomes,duplex—fourplex). FIGURE 6.3: COMPARISON OF FORECASTED FUTURE LAND NEED(2043)WITH AVAILABLE CAPACITY WITHIN CITY LIMITS SUPPLY DEMAND Buildable Land Growth Rate(0.05%) Zone& Plan Inventory- Surplus or(Deficit) Typical Housing Type New Unit Category Housing Unit Capacity Need(2043) Units Avg. Acres Units/ac. Low-Density Single-family detached; 655 847 (192) 5 (38) Some SF attached & plex Med-Density SF attached; Manufact. 195 444 (249) 8 (31) home; 2-4 plexes High-Density Multi-family apartments 476 677 (201) 12 (17) TOTALS: 1,327 1,968 (642) 7 (86) Sources: MIG,Johnson Economics • These findings point to a need for additional residential land in a range of zones over the 20-year planning period. Available inventory may meet an estimated 67% of total housing needs over the first half of the planning period, but a deficit is projected in the long run. • A range of potential housing policies and strategies will be considered in future development of a Housing Production Strategy by the City, including the ability of future plan areas to meet the need for different types of housing during the 20-year planning period. CITY OF LAKE OSWEGO I HOUSING CAPACITY ANALYSIS PAGE 34 AN 25-0004 EXHIBIT E-1/PAGE 35 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: LAKE OSWEGO RESIDENTIAL BUILDABLE LANDS INVENTORY Methodology and Results I July 18, 2023 Introduction This memorandum provides a Residential Buildable Lands Inventory (BLI)for the City of Lake Oswego, which will support the creation of a Housing Needs Analysis (HNA) for the City.The methodology for this BLI is based on the 2018 Metro BLI1 with further refinements through review and discussions with City staff. The BLI is conducted in the following steps: • Step 1:Study Area and Land Classification. This step identifies the land in the City that is available for residential uses. • Step 2: Constraints to Development.This step identifies constraints such as natural resources, steep slopes, and utility easements that limit development. • Step 3: Development Status.This step assigns a "Development Status" of vacant, partially vacant, or developed tax lots in the inventory. • Step 4: Net Buildable Area and Unit Capacity.This step removes land for future rights-of-way and other land needs to provide a net number of acres for each City zoning designation,then estimates number of units and mix of unit type (single detached, multi-dwelling, middle housing) expected based on the results of Step 4. Step 1 : Study Area and Land Classification Study Area The study area for this analysis is shown in Figure 1.The study area includes land within the Lake Oswego City Limits.' 1 https://www.oregonmetro.gov/sites/default/files/2018/07/03/UGRAppendix2 Buildable Lands Inventory.pdf 2 A prior version of this Buildable Lands Inventory included unannexed land outside of the Lake Oswego City Limits which has a City Comprehensive Plan designation.This land has been removed from the study area following APPENDIX A: Buildable Lands Inventory Page 35 AN 25-0004 EXHIBIT E-1/PAGE 36 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Figure 1.Study Area Map s - s SW-STEPHENSONST , y D lessF RpKwY m o S�ONE �, --a O , O 0 P yy� 1 r-- MELROSE ST i \o f i44 '5, i COU/VTRy it X C1 Ug RD II \y� J J 21 a �4 KRUSE WAY O� SO P AAVE '~^ MEADOWS RD Q A. * 111 v i� ,, �r fie- -a OUN7q� SW BON ..R1 p y-�. %t c4 Q' % N, N BiVp > z Z Prim Rp 1 \�O o 71 0 0 740 cc { O cc z o ‘ u_i `� o m > 3 i' �QQ�R P�F�\E`�B\VD S�{ORE 8<V cvEV PEE -_._/` ' �fi tIlirr-Nir x ILO �T o 1- cc sow J o o! w OR 0 GREENTREE PO z� OS `eR Y 2 �.27 N3 Ov 0,00K 0R S BRGISn (FL...._Y ¢ cr I-- �ill9 Z C' m \�pSRD�`' O'rF O, �ile `1'G CHILDS RD �� S 41O _,1 n PO U AP O t . Miles OREGOd 0 0.25 0.5 1 Lake Oswego Buildable Lands Inventory I Study Area ,IF:—/i Study Area Lake Oswego City Limits Land Classification Parcels in the inventory are categorized based on their Comprehensive Plan and Zoning designations, property ownership, and other characteristics available in City/regional datasets.These classifications are described in Table 1 and shown in Figure 4. Comprehensive Plan and Zoning Districts The City of Lake Oswego's Comprehensive Plan Districts are described in Table 1.This is the primary basis for classifying lands into the categories of Residential, Mixed-Use, Nonresidential, and Publicly Owned/Other.Alignment with Zoning Districts are shown in the "Implementing Zones" column. Zoning discussion with the City's Housing Production Strategy Task Force and Oregon Department of Land Conservation and Development(DLCD)staff. APPENDIX A: Buildable Lands Inventory Page 36 AN 25-0004 EXHIBIT E-1/PAGE 37 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 and Comprehensive Plan map designations are shown in Figures 2 and 3, respectively. Overarching categories of land and how they are considered in this inventory are described on the pages following those figures. Table 1. City of Lake Oswego Comprehensive Plan and Zoning Districts Comprehensive Plan Implementing Zone Purpose Designations Zones R-15 Residential Low To provide lands for single-family residential development with R-10 densities ranging from two to five dwelling units per gross Density acre,and to provide lands for middle housing development. R-7.5 To provide lands for single-and multi-family residential development with densities ranging from seven to eight R-5 dwelling units per gross acre,and to provide lands for middle housing development. (1) The purpose of the R-DD zone is to assure that both single-family homes and middle housing are protected from noise,light,glare and reduction in privacy to the maximum extent possible during the area's transition to higher density residential use,to facilitate good architectural design and site planning which maintains residential choices of unit size,cost and other amenities and supports the economic feasibility of new construction R-DD Zone and development,and to assure protection and compatibility of all land uses,including commercial, residential,park,open space and historic sites. (2) The R-DD zone is intended for use in low density residential districts which are undergoing transition to increased densities,and which have scenic,historic, natural or residential features which should be preserved Residential and integrated with new development. Medium Density The FAN R-6 zone is intended to implement the land use policies of the First Addition Neighborhood Plan.The purpose of this zone is to ensure the design quality of proposed development in the neighborhood by: (1) Ensuring that proposed building designs are visually compatible with the character of existing structures,maintain adequate light and air between structures,and complement the neighborhood's architectural character. (2) Minimizing the visual impact of garages from the street, R-6 and to continue established alley uses and functions such as access to garages,off-street parking and trash removal. (3) Encouraging compatible and sensitive remodeling and renovation of existing residences. (4) Preserving the small-town character of the existing streetscape by allowing single-family and middle housing development that is human scale and pedestrian oriented. (5) Enhancing the natural environment of the neighborhood as one of the dominant characteristics. APPENDIX A: Buildable Lands Inventory Page 37 AN 25-0004 EXHIBIT E-1/PAGE 38 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Comprehensive Plan Implementing Zone Purpose Zones Designations (6) Preserving FAN's historical and architectural character by encouraging infill development that is compatible in design character to landmark structures on abutting lots. R-3 To provide lands for single-and multi-family residential Residential High R-2 development with densities of at least 12 dwelling units per Density R-0 gross acre,and to provide lands for middle housing development. R-W Neighborhood To provide land near residential areas for lower intensity Commercial(NC) commercial activities that primarily serve the surrounding neighborhood,smaller public facility uses,and residential uses. To provide lands for a mix of higher intensity commercial General activities supplying a broad range of goods and services to a Commercial(GC) market area approximately equal to the planning area identified in the Comprehensive Plan,as well as residential, public facilities,and cultural uses. To provide lands for commercial activities which meet the Highway needs of the traveling public as well as other highway-oriented Commercial(HC) retail uses which require access to a market area larger than the general commercial zone.This zone is not intended for regional shopping centers. To provide for a mix of uses requiring highway access and Mixed which provide a strong visual identity. Intended uses include Commerce(MC) local and regional convention type facilities,office uses and Commercial supporting retail uses. Office Campus To provide lands for major concentrations of regionally- (OC) oriented offices and employment opportunities for a market area larger than the planning area. Campus To provide a mix of clean,employee-intensive industries, Research and offices and high-density housing with associated services and Development retail commercial uses in locations supportive of mass transit (CR&D) and the regional transportation network. The purpose of the CI zone is to provide zoning regulations for Campus the Marylhurst Campus in order to provide land where Institutional(CI) permitted or conditional uses can be provided for in a unified campus setting. To implement Comprehensive Plan policies applicable to the East End General Downtown Town Center and to provide land for a mix of Commercial(EC) higher intensity commercial,residential,and cultural uses and public facilities that support a traditional downtown commercial core. Industrial Zone The purpose of the industrial zone is to provide land where (I) general industrial development can be located. Industrial To provide lands where primarily light industrial and Industrial Park employment uses can occur in a campus-like setting under Zone(IP) controls to make activities mutually compatible and also compatible with existing uses bordering the zone. West Lake Grove To provide zoning for townhome residential,commercial,and Zones mixed-use development in the West Lake Grove District that Mixed Use (Townhome accommodates lower intensity commercial,public facility and Residential- residential uses;and to provide a transition between the Lake WLG R-2.5, Grove Village Center and adjacent residential neighborhoods. APPENDIX A: Buildable Lands Inventory Page 38 AN 25-0004 EXHIBIT E-1/PAGE 39 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Comprehensive Plan Implementing Zone Purpose Zones Designations Residential These districts are intended to supply services to a market area Mixed Use-WLG that is comprised of adjacent neighborhoods. RMU,and Office- Commercial- WLG OC) To foster a mix of housing,retail and office uses in a central location proximate to downtown and along the Willamette River.Commercial uses are allowed but are not intended to dominate the character of the area. Retail uses are limited in size to complement the downtown core and facilitate the development of neighborhood-focused retail served by transit. The design and development standards are intended to create a unique Lake Oswego community.The emphasis of the zone is on residentially related uses. The Foothills Mixed Use code provisions are intended to: Foothills Mixed i. Connect the FMU area with downtown,Tryon Creek,Old Use(FMU) Town,the Willamette River and Oswego Lake; ii. Create a sustainable walkable neighborhood that possesses a thriving,active,and comfortable pedestrian environment; iii. Create visual interest through varied building heights that are urban in character,yet include detailed amenities at the ground floor that enhance the pedestrian environment; iv. Create high quality buildings,of long lasting materials,to promote the permanence of the community; v. Allow for a mix of residential uses,with urban density,and neighborhood scale retail and office development;and vi. Establish a standard of design that reinforces Lake Oswego's sense of place. The Public Functions(PF)zone is intended to specify Public Use Public Functions appropriate land uses and development standards for public (PF) uses,such as government services,education,and similar activities. The purposes of the Park and Natural Area(PNA)zone are to: i. Protect,preserve,conserve and enhance natural areas, greenways and parks; ii. Permit a wide range of passive and active recreational Park and Natural Park and Natural uses,and accessory uses,on property for the future use and Area(PNA) Area(PNA) enjoyment of the City and its residents; iii. Implement Statewide Planning Goal 8,Recreational Needs;and iv. Establish a master plan process for park planning and development. APPENDIX A: Buildable Lands Inventory Page 39 AN 25-0004 EXHIBIT E-1/PAGE 40 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Figure 2. City of Lake Oswego Zoning Designations Portland "Co- Cammurnr � 4 22 c College--Syl+.i�•• I:: , in Creek f ^`:a tural m- ® 1 sF n • • f a � R�7.5 - � -.-—_' ,. ilLom ---- Milwaukie „F_ � �; Heights Tigard � �f.' °e'_ P `�- 4 R_ya R-io l' v.' 4p HC' R-5 � r M d R-6 Oak Grove PIL R-ya q --t• a i Al. PNn PEC Bonita •sw eon Arts_ -�, 'try., I[d Rd ' Wi �� r• ''S PNA J . .4, ., t. '.:., •.1.tia,.et...41:ali - , IV. SW Durham r as R-yo .1R 7__n5 w5 ' w Concord R.7.5 Cook Pa. Trolley Trail Durham R.1e iiR �aVatln T�N / PNA � �� toy Clul, / GII R i5 t e Jer R-'S Esri,NASA,NGR,USGS,FEMA,Oregon Metro,Oregon State Parks,State of Oregon GEO,Esri.HERE, T iia later. Pro,. Rive rg rove Gamin,SafeGraph,Gyotechnolagies,Inc,METIINASA USES.Bureau of land Management,EPA,NPS, `f_ USDA Mary S.Young Lake Oswego- Buildable Lands Inventory-Zoning Districts Legend =Lake Oseego I ,HC ,F C R.6 LAYER l=I aNA C R-7.5 MI CI ®IP c-0 I l R-DD =Cl/oC 0 MC _I R-Lb ME POW =CRIkD 0 NC CI R-Ls O WLG OC ®PC =NC/R-It p R-2 =SLG R-2.5 MI EC/R-0 I=oc 1=I R-3 0 WIG RMu 0 0.25 0.5 1 0 GC 0 OCJLF3 0 R-s Miles APPENDIX A: Buildable Lands Inventory Page 40 AN 25-0004 EXHIBIT E-1/PAGE 41 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Figure 3. City of Lake Oswego Comprehensive Plan Designations Portland [,,,�___...iii,,, Community • o / .224 ` V Ceilege-sylva' Tryon Creek _ Y + State Natural • 14T 'p ! 4i � r-!.I i 1 PNA Milwaukle C }f}9rr `1.q., - R•�o.� ,/ Hefgh[s '7t °°WW1 _5 • 'F Tigard q 5 to RI I�� _ n �.. �J F q6 [J Oak Grove --. R S 1 Mc — — OCIR.3 R xo - 0EC Bonita. _•- fr. .��.. q.�a R-7.5 �'�n = SW Ronlu Rd `s'^ Cr"—i. �• R." P _.S PNA � j R_7.5 ... '. GC d L emi PNA• 1, N.7 )G — o I SW Durham cc i - • • R-7.5 Concord R•5 . �� 1 I',- ^-R"i5 Cl Trolley-Dail •,-.r. aR Durham lE Lk 4 ir Rno Aillii laiin j / ��' .� aly[lob J .R,� ,�, Iillt# I l -. ler PNA V R' Esri,NASA,NGA,USGS,FE MA,Oregon Metro,Oregon State Parks.State of Oregon GEO,Esri.HERE, Tualatin Rive rg rove r I Gamin,SaleGraph,Ggorechnolagies,Inc.METVNASA,V5G5,Bureau of Land Management,EPA,NOS, I USDA cMary5.Young Lake Oswego- Buildable Lands Inventory-Comprehensive Plan Designations Legend 0 Laie Os.vego 0 HE I]ONE I=12•7.5 I AYFR DIP MliR-0 iRW 1. CI U MC 0 It-AU =SA E CRS) I—I NC ©12-15 fi WLG OC L EC U NCR-0 =11-2 0 WLG R-2.5 EC/R.-0 U OC =R-3 =WLG RMFI L FMU O OCR--3 C R-s =I<alrotherverues> 0 0.25 0.5 1 =GC OPF OR-6 Miles Residential Land Residential Land is intended to meet the City's need for residential uses of various types. It includes land within the R-0, R-2, R-3, R-5, R-6, R-7.5, R-10, R-15, R-W, and WLG R-2.5 Comprehensive Plan designations, unless it meets the criteria for "Publicly Owned/Other" land. Mixed Use Land Mixed Use land can be developed to meet the City's residential and employment needs—sometimes within the same structure. It includes land within the WLG RMU, CI, CR&D, EC, FMU, GC, HC, NC, OC, and WLG OC Comprehensive Plan designations unless it meets the criteria for"Publicly Owned/Other" land. More information about the assumptions for future housing development in these areas is found later in this report. Nonresidential Land Nonresidential land includes employment land and "Publicly Owned/Other" land, as follows. This land is not included in the inventory. APPENDIX A: Buildable Lands Inventory Page 41 AN 25-0004 EXHIBIT E-1/PAGE 42 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Employment Land Employment Land is intended to meet the City's employment needs. It includes land within the MC and IP Comprehensive Plan designations unless it meets the criteria for"Public/Other" land. Publicly Owned/Other This category of land includes the SP, PF, and PNA designations, as well as land in the following categories: • Land in another Comprehensive Plan designation under City, County, State, Federal, or Special District Ownership • Land commonly held in Homeowners'Associations (HOA) common ownership, such as required open space. • Religious or fraternal properties (with the notable exception of Marylhurst University, which is accounted for in a separate line item). • Private driveways and ROW As noted above, properties in this category are generally not included in the inventory. However, some specific parcels in this category may be included in other classifications if information is available to suggest that they have development capacity for residential or employment uses. APPENDIX A: Buildable Lands Inventory Page 42 AN 25-0004 EXHIBIT E-1/PAGE 43 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Figure 4.BLI Land Classification •me niu'ja ^ IVIIIYYdU \ ,___ I _ Y- r�11 pq ld ltr 7. 1 , I I rii t U \1 \,� ! � 1itt. 1''J 7r� ...W. t cif! k T.> 1L ) -1iiiiL ai \ ip IIL %Alt 1�I ji ir111�'li Oakleo 1t � kw. ,„ 811 r►. , 1-49IFIAPI-AWISL 47,----6 44141--W"murFATirk A ... Ai 1 IL r...t . 7. li dpik.. <Aril_ 4 ., 1 4".N.,..., ,,wawa.. AMINC#Flig, ..• •I , PI, 00.010morp.--00_,/•40e 44000110%-ailwAt-'' 1 i ill i ....--0,4 seAV.46., +lip I, .�• 1.7f� wine��•tic�!.P " Li y ... OR l r 4-411 . OF 44:601:14/7. 4111 - I I--- ‘''' ‘..IIM ir�r .- + J,>3l i. AYAt, � - r1,� ...%� , - - iltri , :- , sit '- N ,' 1 EE-til r11 1 •- y r O---,A EOs t r r`'I- ��r 1 I I rov.I ��=`J' ,�11 t. C.-3 O y 6. . , I u !Miles e RFGO/ 0 1 0.5 1 S: 14y Lake Oswego Buildable Lands Inventory I Land Type ® Study Area Land Type Residential = Mixed Use Non-Residential = Public/Other APPENDIX A: Buildable Lands Inventory Page 43 AN 25-0004 EXHIBIT E-1/PAGE 44 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Step 2: Constraints to Development One of the primary tasks of this BLI is to identify land that is constrained by one or more of the following physical constraints. Constraints may overlap one another spatially—in this case the more restrictive constraint applies. Assumptions for these constraints are listed below—they have been discussed with City staff but are subject to further refinement, as needed. Constraints are described in Table 2 and shown on Figure 5. Table 2. Development Constraints Constraint Description Developable Portion Steep Slopes Slopes greater than 25%. Density transfer resulting in 5% Developable the construction of 1-2 dwelling units allowed. Water Bodies Includes lakes, streams, other areas of open water 0% Developable FEMA Flood Includes Zones A, AE, and X. Density transfer resulting 5% Developable Hazard Areas in the construction of 1-2 dwelling units allowed. Greenway Protects land along the Willamette River. Permitted Management uses include single-family dwellings and accessory 25% Developable Overlay District structures associated with such dwellings. Includes Resource Protection (Streams and Wetlands; RP), Resource Conservation (Tree Groves; RC), and Habitat Benefit Areas (Tree Groves; HBA). RP and RC areas are tightly regulated,while HBAs are areas with optional resource protection incentives rather than regulations. RP—50% Developable Sensitive Lands RP—Density transfer possible. RC—0% Developable RC- Mostly applies to public land and open space HBA—95% tracts,which are not developable (PF and PNA zones, Developable OS tracts in private developments,typically). HBA- Incentives, rather than regulations, are applied to protect natural resources. Usually does not limit development beyond a modest reduction. APPENDIX A: Buildable Lands Inventory Page 44 AN 25-0004 EXHIBIT E-1/PAGE 45 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Figure 5. Constraints to Development s 1 1', - ISW STEPHENSON S7 92 y ,H, 1_ 1 1 1 Ry?D m F x ®i <FssRq ,/PR PKwy I 1 11 oN-s FE - - m nn 'QO IRE .. s J ♦ O0 I I ° — o y sr ENO^ 111 �I _ _ +1• w` eb, ; -' 'xK M6ROsE ST ,, 4- €[ tea. rli'- r� i I4 /i ':.s G.ti¢g: "F *��tA 1 f c °A,7 le A'I' • ` iq, 1 rim `f '54_ I'`7 i��Ifa� i u R' ce 0B RDA `I'�� u� � e 4 %,% 4 2j� I. ��btu',=-_. � i i �� " �\ ylig p 6 KRUSE WAY_ O4 Imo ems=-tli �s"may / • A E MEADOWS RD Q �, Q-\ . VS�.tiv i e-..N�.•...•• Air., .t�� ,�I AVEE z 1 ^ l. D cr * ? �11t.ry�y►?yb >UNTq� � I x 1 SW-BONITA-RD�� a.0 q� QG R.1- h 4 .I011i,n"" t4.-„ BLVD .4a.e �-'-f y r+ �V.195 �'' , , ,,, , �� 7 •I, r EE d 1 1. lit* R��E`II�� , s o •. i. , PEE el 1, ► UpQ PK TSNORE g<Vp I,t�LN tSC' , Ji4A jl�- I rl Q9 �O OJT i'.. H ��--L ,O! 1 it `+y 5 a= = 6qG Ir_x 0 6REENTR EE(y0 �� 0E- FRr kL,4 . I O1 - I I - 0� y ;idi�A._ � : 1 of ia �T �� 1, '� Q +,` Y OvR�pOK - .. S BERGIS.RD �, %, J V� 1 1 1 4.c,E✓VAY 1 r (+1 w •• r• yi- - f 0 _ 1 ,L� n Q 4 J `s ` t f 11 RD Ste¢ --- RO �� \ �' 561 a.. '� m \\vos 5, SFhp 0 �R1 CHJLDS RD I 4,T, - I I_- 9 f ' ►.J (Miles � 0 - �PA. E G O S L Lake Oswego Buildable Lands Inventory I Environmental Constraints ® Study Area Major Roads Taxlots - Greenway Mgmt. Overlay District Slopes>25% FEMA Floodplain Sensitive Lands Overlay Habitat Benefit Areas {HBA) Resource Conservation Areas {RC) Resource Protection Areas(RP) APPENDIX A: Buildable Lands Inventory Page 45 AN 25-0004 EXHIBIT E-1/PAGE 46 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 The BLI includes the following information for each tax lot in the study area based on the location of constraints. • Acres—Total size of the tax lot • Constrained Acres—Acreage of constrained areas, per Table 2 • Unconstrained Acres—Total acres minus Constrained Acres The following table shows gross acres of land in each primary land classification in the Study Area. Table 2. Constrained and Unconstrained Acres by Land Type Land Type Total Acres Constrained Acres Unconstrained Acres Residential 3,530 802 2,784 Mixed Use 490 96 397 Non-Residential 172 21 150 Publicly Owned/Other 3,147 1,274 1,899 Total 7,339 2,193 5,230 Step 3: Development Status Each tax lot in the study area is categorized as Vacant, Partially Vacant, or Developed.The following data is used to determine development capacity of Study Area tax lots: • Tax assessor data, including Property Land Use Code, Improvement Value, and Land Value; • City inventory of outdoor areas, used in identifying public and commonly-held open spaces such as public facilities, parks and Homeowners Association-owned open spaces; • Metro Vacant Land Inventory derived annually from aerial photo information; • Review of recent aerial imagery; and • Discussion and review with City staff and the Housing Production Strategy(HPS)Task Force. Generally,vacant tax lots are assumed to have development capacity equal to the area unconstrained by natural resources, minus additional set-asides for future Right-of-Way and infrastructure (see Step 4). Developed parcels will be subject to further screening for redevelopment potential, described in later steps. Partially Vacant properties have an existing home but are large enough to subdivide based on criteria such as parcel size and allowable lot size, as described in this section. Residential Development Status • Vacant. Land that has a building improvement value of less than $20,000, as indicated by assessor data. All land outside of constrained areas is included in the developable area for these properties. • Vacant—Platted.Vacant land that is part of a platted but unbuilt subdivision is included in this category. Platted lots are assumed to contain one unit each unless other information is available (see Step 4). "Developable Acres" is shown as "0" because they are treated separately from other acreage in the inventory. APPENDIX A: Buildable Lands Inventory Page 46 AN 25-0004 EXHIBIT E-1/PAGE 47 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 • Partially Vacant.This designation is intended for parcels with an existing single-detached home that are large enough to further subdivide or develop to provide additional residential units. While middle housing and townhomes are allowed in many zones,this analysis uses the minimum lot size required for single-detached dwellings as the basis for the Partially Vacant designation, as follows: o Parcels greater than 5 times the minimum lot size:These lots are categorized as "Partially Vacant." %acre is assumed to remain for the existing home and the remaining unconstrained acreage is assumed to be developable. o Parcels between 2 and 5 times the minimum lot size: For lots with a building value below$200,000, %acre is assumed to remain for the existing home and the remaining unconstrained acreage is assumed to be developable. o Parcels less than 2 times the minimum lot size: These lots are categorized as "Developed" if improvement value is present or aerial photo review shows development. • Developed. All other residential land is designated Developed and has no developable area. Mixed Use Development Status Mixed Use development is subject to the same criteria as Residential Land. However, an additional screen is used to determine the likelihood of redevelopment of mixed-use parcels in Step 4, and assumptions about the residential/employment mix (see Error! Reference source not found.3) are a pplied. Mixed Use Residential Proportion Mixed use designations are assumed to develop partly with residential uses and partly with non- residential uses, per the following table. Table 3. Residential Portions of Mixed Use Tax Lots Mixed Use Residential Nonresidential Notes Designation Portion Portion West Lake Grove 50% 50% Townhomes only allowed with office use in the Residential Mixed Use same building (WLG RMU) West Lake Grove 25% 75% Residential limited to Boones Ferry Staging site, Office-Commercial per LOC 50.03.003.2.d. Residential limited to (WLG OC) Boones Ferry Staging Site. Percentage based on the size of this site in relation to the total size of district(see LOC 50.03.003.2.d for geography). Campus Institutional 50% 50% Multifamily development is limited to Subarea I (CI) of the Marylhurst Campus Zone. Campus Research & 30% 70% Assumption based on trends in this area Development(CR&D) East End Commercial 80% 20% (EC) Foothills Mixed Use 80% 20% Most similar to EC in terms of residential/non- (FMU) residential mix General Commercial 30% 70% (GC) APPENDIX A: Buildable Lands Inventory Page 47 AN 25-0004 EXHIBIT E-1/PAGE 48 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Highway Commercial 10% 90% (HC) Neighborhood 50% 50% Commercial (NC) Office Campus(OC) 30% 70% Summary The following table lists the number of tax lots,total and constrained acreage, and developable area by land type. A map summarizing development status is shown in Figure 6. Table 4. Developable Area of Residential and Mixed Use Tax Lots Gross Constrained Unconstrained Developable Land Type Acres Area (Acres) Area (Acres) Acres Residential 3,530 802 2,784 175 Mixed Use 490 96 397 14 Non-Residential 172 21 150 Public/Other 3,147 1,274 1,899 _ Total 7,339 2,193 5,230 189 APPENDIX A: Buildable Lands Inventory Page 48 AN 25-0004 EXHIBIT E-1/PAGE 49 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Figure 6. Development Status of Residential and Mixed Use Land 7 c\F . F , ,,—.141 _ . QP`rJ ri J!! 1P SW STEPHENSON ST. Phi •,, /0 , t y 1! , a . 1 �� c u, I j/ c �• `�, l . ` , , _ram 4 '1•if ,, \ �` 1 -.MELROSE ST I - ! r �( " z>1 I- `� ,, -- •-� - t(R�USSE WAYS 1 • Q� _ A AVE eQ { --j 1 MEADOWS RD e Y) '�">; _ _, - `�' • SW'BONITA RD��7. i EA�P� QG .�c,�� 0 NTAI/y BfVD- 1 IR o No ; °� w.g�VD_ • Ev��E N irl leap , �P �SNQRE.g-r - `` ��IrIP 6y SO/ •ti. lir�wIZO j III ! r_ ti r� S: `q Ali IF o GREENTREAD-- '' 2� 0S- GFR (p ' ''''' 't' (') -,I / ; r 1 Q ` Y L 10J��pO tuft-'9 - S BERGIS/RD�jr ,, , �+ O 11 0C) r i.j F, r,o` • , ,:el 1 ¢ ,Pi 1 S A F a +^ + CHIEDS RD ' .. 1:1.iig,-1.� J c,-2• `..�111� Oy? b N O` :_4..,10 tAt., nIllinin At �l1l1■ii ■ j O ozs 05 �1^ s ■� { �� ~� 1. 011/11;S .ram Lake Oswego Buildable Lands Inventory I Development Status Constraints Development Status Developed Partially Vacant Vacant ® Study Area APPENDIX A: Buildable Lands Inventory Page 49 AN 25-0004 EXHIBIT E-1/PAGE 50 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Step 4: Net Buildable Area and Unit Capacity This step of the BLI establishes the net buildable area of residential land in the Study Area by removing land needed for future right-of-way and other infrastructure set-asides, and by subtracting the non- residential portions of mixed-use zones. This step also accounts for platted subdivisions and other development with known approvals. Right of Way and Other Set-Asides When vacant land develops, land for roads, infrastructure, open space, and other needs reduce the gross available acres into a net developable acreage.The BLI uses the following assumptions to calculate net developable acreage for each parcel. • Residential Land: 20%of vacant properties, 0%of partially vacant properties • Mixed Use Land: 20%of vacant properties, 0%of partially vacant properties Assumed Density and Housing Mix Table 4 shows the assumed density for various zoning designations in the City of Lake Oswego.This information is based on the minimum lot sizes, likely densities, and staff assumptions based on recent projects and comparable zones, and parcel-by-parcel analysis.The proportion of units expected to be developed as Single Family Detached, Middle Housing, and Multi-Family are also shown. Table 4. Unit Density and Mix Assumptions Zoning %Single % Middle % Multi- Designation Notes Density Family Housing Family Detached Residential-Low Density Zones R-15 Min 15,000 sf lot area. 2.9 2.9 DU/AC net 95% 5% DU/AC net R-10 Min 10,000 sf lot area.4.3 4.3 du/ac net 95% 5% du/ac net. R-7.5 Min 7,500 sf lot area 5.8 5.8 du/ac 95% 5% du/ac net • Residential-Medium Density Zones • R-5 7-8 units per gross acre, 'r8 du/ac per code. 5,000 sf min lot size for 90% 5% 5% single-family. 1,500 for townhouse. • R-DD Buffer zone. 21 du/ac —8 du/ac 95% 5% theoretically possible. R-6 First Addition —7 du/ac Neighborhood (FAN) zone 6,000 sf lot area for 95% 5% Single-Family. 1,500 for townhouse. Residential-High Density Zones APPENDIX A: Buildable Lands Inventory Page 50 AN 25-0004 EXHIBIT E-1/PAGE 51 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Zoning %Single % Middle % Multi- Designation Notes Density Family Housing Family Detached R-3 At least 12 du/ac. (3,375 —12 du/ac 70% 10% 20% min per dwelling, or 12.9 du/ac).Townhomes up to 29 du/ac R-2 Min 12 du/ac 12 du/ac 60% 10% 30% R-0 Min 20 du/ac 20 du/ac 60% 10% 30% R-W ^'12 du/ac 60% 10% 30% Mixed Use Zones West Lake Table 50.03.002-2 notes "'5 du/ac Grove "R-5 density or greater" Residential - 50% 50% Mixed Use (WLG RMU) West Lake Table 50.03.002-2 notes 35 du/ac expected in Grove Office- "R-5 density or greater" BFR Staging Site, - 20% 80% Commercial nothing in other areas (WLG OC) Campus Table 50.03.002-2 notes Generally applies to Institutional "R-5 density or greater." Marylhurst University, (CI) Must have commercial on which is treated - - 100% ground floor. separately. Campus 54 du/ac for projects Research& that include residential Table 50.03.002-2 notes Development (-30%of the district, as - - 100% (CR&D) "R-5 density or greater" above) based on LU 19- 0041 East End Table 50.03.002-2 notes ^'56 du/ac Commercial "R-5 density or greater." o (EC) Must have commercial on - - 100/ ground floor. Foothills Table 50.03.002-2 notes ^'56 du/ac Mixed Use "R-5 density or greater" - - 100% (FMU) General Table 50.03.002-2 notes —27 du/ac based on Commercial "R-5 density or greater." Mercantile project (LU (GC) Must have commercial on 18-0026) ground floor. Residential o 0 not allowed "In the GC- 25/ 75/ zoned area in the vicinity of Jean Way and Boones Ferry Road." Highway Table 50.03.002-2 notes 8 du/ac(or R-5 density) Commercial "R-5 density or greater" for the 10%that may - - 100% (HC) develop as residential APPENDIX A: Buildable Lands Inventory Page 51 AN 25-0004 EXHIBIT E-1/PAGE 52 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Zoning %Single % Middle % Multi- Designation Notes Density Family Housing Family Detached Neighborhood Table 50.03.002-2 notes 67 du/ac for the 50% Commercial "R-5 density or greater." that may develop as (NC) Must have commercial on residential (based on LU - 50% 50% ground floor. _ 07-0031) Office Campus Table 50.03.002-2 notes 21 du/ac for the 50% (OC) "R-5 density or greater" that may develop as residential (based on - - 100% Galewood Commons Apartments) Summary of Vacant and Partially Vacant Land Table 5 summarizes net residential acreage for both residential and mixed-use land in the study area, and Table 6 shows the breakdown of capacity by zoning designation. Land with a known development approval has been removed and is accounted for in a later step. Table 5. Capacity of Residential and Mixed Use Land Developable Unit Capacity Land Type Acres Residential 174 705 Mixed Use 10 146 Non-Residential - - Public/Other - - Total 185 851 Table 6. Unit Capacity by Zoning Designation Land Type Unit Capacity Land Type Unit Capacity Residential Land 705 Mixed Use Land 146 EC/R-0 5 CR&D 14 R-0 2 EC 67 R-10 241 GC 12 R-10 Comp Plan 14 NC 23 R-15 131 NC/R-0 9 R-3 28 OC/R-3 5 R-5 116 R-0 8 R-7.5 149 WLG-OC 7 R-7.5 Comp Plan 3 WLG-R RMU 1 R-DD 12 R-W 1 WLG-R 2.5 3 Total Capacity: 851 Units APPENDIX A: Buildable Lands Inventory Page 52 AN 25-0004 EXHIBIT E-1/PAGE 53 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Table 7.Mix of Unit Capacity on Vacant and Partially Vacant Land Unit Capacity Single Family Middle Housing Multi-Family Land Type Units Units Units Residential 705 648 39 17 Mixed Use 146 5 23 118 Non-Residential - - - - Public/Other - - - - Total 851 653 62 136 Additional Capacity: In addition to the capacity listed above,the following categories of additional residential unit capacity have been identified.These are listed in Table 7, along with the expected mix of housing units. • Approved Development. Several parcels have land use approvals and/or are actively undergoing development. Where information about the unit capacity of these approvals is known,that information is used as future capacity(rather than an average assumption based on the zoning designation).These approvals are listed in Table 8. • Additional Middle Housing Capacity: Due to the City's middle housing legislation, most single family lots can be converted to duplexes or other middle housing types.The number of new units expected to be created through this process in the planning horizon is estimated at 1.5%of developed lots with single-detached dwellings outside of PUDs/easements.This totals 110 Units3. • Redevelopment of Commercial Land and Town Centers: An initial "strike price" analysis4 found very few properties that appear to be good candidates for redevelopment at$30/sf.Value per square foot for many properties along Kruse Way and in Town Centers is generally$50/sf or greater.There may be some opportunity to utilize parking areas for new residential uses, depending on the City's development code and many other factors,though additional commercial infill is also a possibility. For the purposes of this BLI, no redevelopment capacity is assumed. 3 A previous version of this analysis assumed 3%of all single detached units, regardless of whether they were located in a PUD. Feedback from stakeholders and DLCD was that this infill assumption seemed high and was unrealistic due to the prevalence of CC&Rs in Lake Oswego. "Strike Price" is a measure of land and building value per square foot at which a developer is assumed to be able to profitably redevelop a piece of property.The 2018 Metro BLI used a strike price of$12/sf for suburban jurisdictions—this analysis examine a more aggressive$30/sf and still found very few candidates for redevelopment. APPENDIX A: Buildable Lands Inventory Page 53 AN 25-0004 EXHIBIT E-1/PAGE 54 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 Table 8. Parcels with Approved Development and Assumed Capacity Total Unit Single Family Middle Multi- Land Type Taxlot(s) Family Capacity Units Housing Units Units 21E18AB00400 Habitat for Humanity 21E18AB00300 Townhomes 21E18AB00200 23 0 23 0 [Link] 21E18AB00100 21E18AA00400 5400 Meadows [Link] 21E07BA00900 160 0 0 160 21E08AB02100 Twin Fir Road 2 2 0 0 21E08AB02000 The Boulder 21E07DD02300 [Link] 21E07DD02500 11 0 0 11 21E14DB02900 21E14 00300 21E14 00400 21E14 00401 21E14 00402 Marylhurst University 21E14 00403 170 0 0 170 21E14 00404 21E14 90000 21E14 900A1 21E14 900B2 Total 366 2 23 341 Table 9.Summary of Unit Capacity Total Unit Single Family Middle Housing Multi-Family Land Type Capacity Units Units Units Vacant & Partially 851 653 62 136 Vacant Land Approved 366 2 23 341 Developments Additional Middle Housing Infill 110 110 Total 1,327 655 195 477 Next Steps This inventory will inform the Housing Capacity Analysis and Housing Needs Assessment to provide a picture of the availability of residential land as it compares to the need of certain types of housing units in the next 20 years. It forms part of the factual basis for City policies to address any deficiencies in unit capacity. APPENDIX A: Buildable Lands Inventory Page 54 AN 25-0004 EXHIBIT E-1/PAGE 55 OF 55 9.4 dc4l E � COUNCIL REPORT o EGOta Subject: Resolution 25-34, Approval for a Special Procurement of Professional Services for a Potential New South Shore Fire Station Meeting Date: July 1, 2025 Staff Member: Kristine Artman,Assistant Fire Chief Report Date: June 19, 2025 Department: Fire Action Required Advisory Board/Commission Recommendation ❑X Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑X Resolution ❑ Not Applicable ❑ Information Only Comments: ❑ Council Direction ❑ Consent Agenda Staff Recommendation: Adopt Resolution 25-34 Authorizing a Special Procurement for a Construction Manager/General Contractor (CM/GC) Procurement for the proposed South Shore Fire Station. Recommended Language for Motion: Move to Adopt Resolution 25-34 Authorizing a Special Procurement for a Construction Manager/General Contractor (CM/GC) Procurement for the proposed South Shore Fire Station. Project/ Issue Relates To: Assess the cost to rebuild the South Shore Fire Station,which has reached the end of its useful life. Issue before Council (Highlight Policy Question): ❑X Council Goals/Priorities ❑Adopted Master Plan(s) ❑ Not Applicable Respect, Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 BACKGROUND Constructed in 1971, the South Shore Fire Station is the oldest of Lake Oswego's four fire stations. Located at 1880 South Shore Boulevard,firefighters based out of this station primarily respond to calls for service within the southeast quadrant of the city. In 2024, South Shore Fire Station Crews responded to 1,106 calls ranging from public service and medical emergencies to fire and life safety incidents. In 2007-08, City staff studied facility deficiencies and scoped replacement costs. In 2009 City Council considered, and deferred, a rebuild. Results from the City's 2023 community survey found that more than 50% of respondents supported investing in the South Shore Fire Station Project. In 2024, the City Council designated this project as a strategic initiative, directing staff to "begin a needs assessment and community engagement process to rebuild the South Shore Fire Station." With Resolutions 24-38, 24-39, and 24-45 the City Council created the South Shore Fire Station Task Force, appointed 17 members after a community-wide recruitment and selection process, and designated Council Member Trudy Corrigan as the Council's Liaison to the Task Force. In 2025, as part of Council's adopted goal: Strengthen public trust in the City through continuous improvement, outstanding customer service, infrastructure investments, and fiscal stewardship, Fire was directed to, "Conclude the South Shore Fire Station needs assessment and launch a community engagement process." With Council's direction, staff have proceeded with these steps: • Owner's Representative: On April 28th, the City awarded a consultant contract to OTAK to provide technical project management assistance to develop pre-bond assessed costs for the proposed fire station. • Community Polling Services: In May 2025 staff awarded FM3 Research the Polling Services Contract. Staff worked to develop questions that would assess the community's knowledge of South Shore Station issues, appetite for Bond with range of costs, and reaction to "For" and "Against" statements regarding putting the South Shore Fire Station Project to Bond. • Architectural Design Services: RFP for Conceptual Designs to inform cost and vision for the proposed fire station has been posted and applications are due July 10th, 2025. DISCUSSION Construction Manager/General Contractor(CM/GC)Alternative Service Delivery In traditional Design-Bid-Build Methods each step in the process is siloed, with the bid not proceeding until the work is complete from the designer, and the same for the general contractor. This method brings a lot of uncertainty and potential risk for the City. With the alternative Construction Manager/General Contractor (CM/GC) Delivery Method (used for both Millennium Park Plaza and City Hall) We have all contractors working together from the Respect, Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 beginning. Staff will work closely with the Owner's Rep, Architect, and GC as the plans develop. There will be constant communication surrounding design, cost, and functionality which reduces City risk and increases ability to manage the budget throughout the project. ALTERNATIVES to CM/GC and Advantages/Disadvantages: • Design Bid Build (DBB):Traditional method where, through competitive bidding process, owner hires Architect to complete design,then bids out construction contract separately. o Advantages: ❖ Clear roles and responsibilities ❖ Familiar process for many stakeholders o Disadvantages: ❖ Longer project duration • Higher risk of costly change orders ❖ Less collaboration between designer and builder • Design Build (DB): A single entity is responsible for both design and construction, providing a unified workflow from concept to completion. o Advantages: ❖ Faster project delivery(overlapping design and construction phases) ❖ Single point of responsibility ❖ Potential for reduced conflicts and change orders o Disadvantages: • Less owner control over design ❖ Limited checks and balances between designer and builder ••• Requires clear scope definition early • General Manager/General Contractor(GM/GC):The general contractor is brought on early in the design phase to provide constructability and cost estimates. Construction work may be bid out or self-performed. o Advantages: ❖ Early contractor involvement improves planning • Improved cost control and risk management ❖ Allows for collaborative scheduling o Disadvantages: ❖ Less price competition on construction phase ❖ Requires strong team collaboration ❖ May induce complexity in roles if not well-defined After careful consideration, consultation with City Project Managers of City Hall, the newly constructed LORAC, and upon recommendation of our contracted Owner's Representative, Fire Staff recommend the alternative CM/GC method of service delivery in lieu of the traditional design-bid-build process. The findings, in Exhibit A, support an exemption from competitive bidding and support the use of the Construction Manager/General Contractor method of contracting. Respect, Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 4 FISCAL IMPACT CM/GC Services (Costing and value engineering conceptual designs)-$50,000.00 Funds to come from Fire Department Budget RECOMMENDATION Move to Adopt Resolution 25-34. ATTACHMENTS • Exhibit A, Findings of Fact • Attachment 1, Resolution 25-34 Respect. Fxcellence. Trust. Se— He. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY EXHIBIT A FINDINGS OF FACT AUTHORIZING: A SPECIAL PROCUREMENT FOR THE USE OF THE CONSTRUCTION MANAGEMENT/GENERAL CONTRACTOR (CM/GC) METHOD OF CONTRACTING FOR DEVELOPMENT AND COST PROJECTIONS OF PROPOSED NEW SOUTH SHORE FIRE STATION. 1. General ORS 279C.335(2), OAR 137-49-0620, OAR 137-49-0640, and OAR 137-49-0690 permit the local contract review board to exempt contracts from competitive bidding requirements upon approval of findings of fact showing that an alternative contracting process is unlikely to encourage favoritism or diminish competition and that the process will result in cost savings to the City. The City of Lake Oswego City Council acts as the Local Contract Review Board ("LCRB") for the City. OAR 137-49-0690(1) describes the factors in determining whether the Construction Manager/General Contractor (CM/GC) method of construction is appropriate as an alternative to traditional competitive bidding. The CM/GC approach is appropriate for construction projects that would benefit from a collaborative team approach to achieve time savings and cost savings, and to address technical complexities. The CM/GC process is appropriate when needed to address issues such as public safety, delivery of an early budget or Guaranteed Maximum Price, and projects requiring complex phasing or highly coordinated scheduling. ORS 279C.337 and OAR 137-049-0690(5) address the solicitation and contract requirements for CM/CG services. These requirements will be met in the solicitation process. ORS 279C.330 defines "Findings" and identifies specific information to be provided as a part of the contracting justification. Under ORS 279C.335(5) a public hearing must be held before the findings are adopted, allowing an opportunity for interested parties to comment on the draft findings. PURPOSE OF THESE FINDINGS: The Lake Oswego City Council held a public hearing as required by ORS 279C.335 and makes the following findings with respect to the issue of whether the construction contract for the proposed new South Shore Fire Station ("Project"), as defined herein, should be exempt from competitive bidding, by the use of the CM/GC method of alternative contracting. The Findings of Facts apply to the CM/GC method of public improvement projects described below, in accordance with ORS 279C.335(2). 2. Background South Shore Fire Station, built in 1971 and occupied by the City of Lake Oswego Fire Department, is at the end of its useful life. The facility is undersized, does not provide sufficient separation of contaminated Personal Protection Equipment from station living areas, and does not meet seismic standards for essential services. The fire department has strategically invested in deferred maintenance issues to extend the life of the facility. In 2007-2008 City Staff studied facility deficiencies and scoped replacement costs. In 2009 City Council considered and deferred a rebuild. Results from the City's 2023 community survey found that over 50% of respondents supported investing in the South Shore Fire Station Project. In 2024 City Council designated this project as a strategic initiative directing staff to "begin a needs assessment and community engagement process to rebuild the South Shore Fire Station." On September 3, 2024, the City Council adopted Resolution 24-38 creating the South Shore Fire Station Task Force. The Task Force identified that eleven significant deficiencies remain with resolution unattainable within the confines of the initial construction of the building. These include: • Not built to "essential facility" seismic standards • Inadequate apparatus and vehicle storage • Electrical system and back-up power unreliable and in poor condition • HVAC System not functioning and needs replacement • Roof needs replacement, does not drain properly • Group bathroom lacks privacy and equitable accommodation • No diversion system for run-off • Inadequate storage space for medical supplies and personal protection equipment Due to the complex and technical nature of this essential facility build, costs from traditional Bid-Design-Build Service Delivery have the potential to increase due to multiple needed change orders as the project moves from design to build. With the CM/GC Process having the Construction Manager and General Contractor at the table from the beginning it allows the entire team: City (Owner), Owner's Representative, Architect, and General Contractor to prioritize function over form and choose cost-saving materials and technology throughout the lifespan of the project. The City of Lake Oswego Fire Department proposes using the alternative contracting procedure to obtain proposals and award a Construction Management/General Contractor Contract for this Project. The Project includes conceptual design and costing for potential bond referral. Fire staff have contracted with OTAK to act as the Owner's Representative for the Project and to assist with the Request for Proposals process for an architect and a CM/GC. The CM/GC will work closely with the architect to determine accurate costing for the Project in preparation to go out for bond in May 2026. The CM/GC shall provide all management, supervision, labor, services, transition planning, equipment, tools, supplies, and any other item needed to complete construction. GM/GC Project Schedule The updated preliminary project schedule is as follows: • Hire Owner's Representative (OTAK): May 2025 • Hire Polling Contractor (FM3): June 2025, Results June 2025 • Post Architectural RFP for Conceptual Designs: June, 16, 2025 • Post CM/GC RFP for cost analysis of conceptual design: August 2025 • Present Findings to Council: December 2025 FINDINGS OF FACT SUMMARY FINDINGS Use of the CM/GC process for the proposed South Shore Fire Station complies with the criteria outlined in ORS 279C.335 (2): 1. It is unlikely the exemption will encourage favoritism or substantially diminish competition. The selection process will be fair and open to all interested proposers as established within the findings below. 2. The exemption will result in cost savings to the City. Also, value will be added to the Project that could not otherwise be obtained. SPECIFIC FINDINGS which substantiate the summary findings are as follows: 1. The CM/GC will be selected through a competitive process in accordance with the Request for Proposal (RFP) selection process.Therefore, it is unlikely that the awarding of the construction contract for the Project will encourage favoritism or substantially diminish competition. This finding is supported by the following: A. SOLICITATION PROCESS: Pursuant to ORS 279C.360, the CM/GC solicitation will be advertised at least once in the Daily Journal of Commerce, and in as many additional publications as the City may determine, including the City of Lake Oswego website. B. FULL DISCLOSURE: To ensure full disclosure of all information, the Request for Proposals solicitation package will include: 1. Detailed Description of the Project 2. Contractual Terms and Conditions 3. Evaluation Criteria, including General Conditions. 4. Role of Evaluation Committee 5. Selection Process 6. Provisions for Comments 7. Complaint Process and Remedies Available C. COMPETITION: As outlined below, the City will follow processes that maintain competition in the procurement of a CM/GC. 1. The City anticipates that competition for this contract will be similar to that experienced in other CM/GC projects of this type.The competition will be open to all qualifying proposers. 2. The City anticipates communicating with the construction contracting community through the Request for Proposal GM/GC. 3. The solicitation and evaluation process will be open and impartial. Selection will be made on the basis of final proposal scores derived from price and other components, which expand the ground of competition beyond price alone to include experience, quality, innovation factors, etc. 4. The competitive process used to award subcontracts for all competitively-bid construction work will be specified in the CM/GC contract and will be monitored by the City. The City will designate in the CM/GC contract the percentage of construction work that must be subcontracted. D. SELECTION PROCESS: Other highlights of the selection process will include: 1. A mandatory pre-proposal conference will be announced and held to inform potential proposers of the Project. This conference will be open to all interested parties. During this pre-proposal conference, as well as any time prior to ten (10) days before the close of the solicitation, interested parties will be able to ask questions, request clarifications and suggest changes in the solicitation documents if such parties believe that the terms and conditions of the solicitation are unclear, inconsistent with industry standards, or unfair and unnecessarily restrictive of competition. 2. The evaluation process will determine whether each proposer and its proposal are qualified and responsive to the minimum requirements of the RFP, and will weigh the responses relative to the criteria. The following process will be used: • Proposers will be evaluated for compliance with the minimum qualifications for selection. Qualified Proposers' Proposals will be evaluated for completeness and compliance with the requirements of the RFP. Those proposals that are materially incomplete or non-responsive will be rejected. • Proposals will be independently scored by the voting members of the Evaluation Committee. Scores will then be combined and assigned to the proposals. • The Evaluation Committee will convene to select the highest-scoring proposers (the Competitive Range) for formal interviews. • Competing proposers will be notified in writing and will be given seven (7) calendar days to review the RFP file and evaluations. Any questions, concerns, or protests about the process for evaluation of the written proposals or the selection of the Competitive Range will be addressed in the manner required by OAR 137-049-0450. • The Evaluation Committee will conduct interviews of those proposers within the Competitive Range. • The Evaluation Committee will use the interview to confirm the Evaluation Committee's understanding of the proposal, and the processes and procedures that will be used by the Proposer to construct the Project in an efficient, cost-effective, and timely manner. Based upon the cumulative scoring, the Evaluation Committee will rank the proposers within the Competitive Range. • The City or designee will negotiate a contract with the top-ranked firm. If an agreement cannot be reached, the City will have the option to terminate negotiations with that proposer, and then negotiate an agreement with the second-ranked proposer, and so forth. • Proposers within the Competitive Range will be notified in writing of the top- ranked proposer and will be given an opportunity to review the RFP file and evaluations of the interview portion. Any questions, concerns, or protests about the Competitive Range evaluation process will be addressed in the manner required by OAR 137-049-0450. 3. The CM/GC contract will require the CM/GC to use an open, competitive selection process to bid all work to be performed by subcontractors. (The CM/GC may be permitted to bid upon portions of the construction work in the same manner as other subcontractors.) 2. Awarding the construction contract for the Project using the CM/GC method will likely result in cost savings to the City. This finding is supported by the following information required by ORS 279C.335 (2)(b) and ORS 279C.330. A. OPERATIONAL, BUDGET, FINANCIAL DATA 1. BUDGET: Early reliable pricing provided by the CM/GC during the design phase will reduce the potential for time delays due to later discovery of higher than-anticipated costs and consequent changes of direction. The CM/GC process will allow the City to set a construction budget. The CM/GC procedures will allow the City to work with the selected CM/GC to use value engineering to keep the Project within the budget. 2. LONG TERM COSTS: The Project will require expertise regarding the constructability and long-term cost/benefit analysis of innovative design. That knowledge is best obtained directly from the construction industry. Many decisions will be required during the design process that call for immediate feedback on constructability and pricing. Under the traditional design-bid-build process, there is a high risk of increased change orders and schedule impacts for a project of this size and complexity. There are significant costs associated with delay, both as to project costs and to the services to the public. Time is of the essence. The CM/GC process will assist in providing a scope of work and constructible design that best meet the requirements of the Project with significantly lower risk to the project costs and time for construction. Involving the CM/GC during design will allow project risks to be addressed early. Teamwork between the City, the design consultant, and the construction contractor (CM/GC) will minimize those risks. 3. FEWER CHANGE ORDERS: When the CM/GC participates in the design process, fewer change orders occur during project construction. This is due to the CM/GC's better understanding of the owner's needs and the architect's design intent. As a result, the project is more likely to be completed on time and within budget. In addition, fewer change orders reduce the administrative costs of project management for both the City and the CM/GC. 4. SAVINGS: If actual costs are less than the GMP, the entire savings will be realized by the City. B. PUBLIC BENEFITS 1. TIME SAVINGS: The CM/GC method allows construction work to commence relatively rapidly on some portions of the work while design continues on the remaining portions. This will shorten the duration of the construction and allow completion of the Project, and its component parts, by the due date(s). Use of a CM/GC in conjunction with the team approach will result in a better coordinated project and speedy completion of the South Shore Fire Station, in addition to minimizing disruption to the public and City staff. 2. COST SAVINGS: The Project will benefit from the active involvement of the CM/GC during the design process for each facility in the following ways: • The CM/GC's input regarding the constructability and cost effectiveness of various alternatives will guide the design toward the most cost-effective choice. • Knowing the specific equipment available to the CM/GC allows creation of a design that best utilizes the capacity of that equipment. • The contractor will be able to provide current and reliable information regarding the cost of materials that are experiencing price volatility and the availability of scarce materials. • The contractor will also be able to order materials while design is being completed in order to avoid inflationary price increases and provide the lead- time that may be required for scarce materials. • The contractor will be able to help develop design documents to reflect the best work plan that accommodates the City, the design team, and contractor within the project deadline; • The CM/GC will have early involvement in the specification of materials and work phasing, allowing: o The CM/GC to schedule the best grouping of the subcontractor bid packages that will help insure optimum subcontractor work coverage; o The most efficient construction staging area in and around the project area; and o Adjustment of the work plan when the needs change along the way that has as minimal impact upon price and schedule as possible. This cannot be addressed by the usual design/bid/build method of construction. All of the above results in a better coordinated project with less cost and change orders. 3. GUARANTEED MAXIMUM PRICE (GMP): By participating in the construction document phase, the CM/GC will be able to obtain a complete understanding of the City's needs, the architect's design intent, the scope of the project, and the operational needs of the City, and will be able to offer suggestions for improvement and cost- reduction. The CM/GC will also be able to better calculate an appropriate GMP, a price within which the CM/GC is contractually bound to implement the final project design. The CM/GC is able to guarantee the maximum price to complete the project because the CM/GC was involved in the design process, identification of the specifications for the work, preparation of the construction schedule, and establishment of the sequence of work. C. VALUE ENGINEERING (VE) 1. WITH THE DESIGN-BID-BUILD PROCESS: If the City were to utilize the design-bid-build method, the contractor would not participate in value engineering. Instead, a value engineering consultant would be hired to participate in the design and cost evaluation process. This adds costs and administrative complications, without providing the same benefits of early contractor participation. 2. WITH CM/GC: The CM/GC process offers a unique opportunity for value engineering that is not possible through the design-bid-build process. VE is done most effectively by a team consisting of the owner, architect, consultants, and the CM/GC. When the CM/GC participates, the team can render the most comprehensive evaluation of all factors that affect the cost, quality, and schedule of the project. D. SPECIALIZED EXPERTISE: The construction project requires specific knowledge of fire stations and how they operate. Early selection of the CM/GC and inclusion of the CM/GC's expertise with the other members of the project construction team creates more informed, better quality decision-making by the project construction team. A more efficient construction team saves the City money. E. MARKET CONDITIONS: As well as the multitude of construction market factors that exist today in Oregon [e.g., competition of other projects, environmental issues that limit construction materials, variable bid market, unemployment, etc.,] the difficulty in establishing the best work sequence complicates the City's ability to accurately estimate the cost of this project. The CM/GC method will be more likely to result in a more experienced and better suited contractor for the particular project.The complexities that need to be addressed to accomplish the tasks are not well served by the usual competitive procurement. CM/GC method ensures that the City can select the best contractor for the most beneficial reasons for the Project outside of having to select based upon lowest responsive and responsible bid. F. TECHNICAL COMPLEXITY:Technical expertise will be required for environmental management, quality management, scheduling, estimating, meeting sustainable facilities standards and guidelines, and ensuring energy efficiency. The complexity and scheduling issues discussed in the Background section above will require special expertise. However, the Project will draw upon existing skills and capabilities available in the construction community. Specialized skills will be required of the CM/GC to negotiate and price multiple options and schedule complex tasks. A high level of coordination among the Fire department, the design entity, and the CM/GC and subcontractors is required and facilitated by the CM/GC approach. ATTACHMENT 1 RESOLUTION 25-34 RESOLUTION 25-34, A RESOLUTION OF THE LAKE OSWEGO CITY COUNCIL,ACTING AS THE LAKE OSWEGO PUBLIC CONTRACTING REVIEW BOARD PURSUANT TO ORS 279A.060, ADOPTING FINDINGS AND APPROVAL FOR A SPECIAL PROCUREMENT FOR PROFESSIONAL SERVICES, EXEMPTING THE CONTRACT FROM COMPETITIVE SOLICITATION AND USING THE CONSTRUCTION MANAGER/GENERAL CONTRACTOR (CM/GC) METHOD FOR A POTENTIAL NEW SOUTH SHORE FIRE STATION. WHEREAS, the Lake Oswego City Council acts as the local contract review board for the City, and in that capacity has authority to exempt certain contracts from the competitive bidding requirements of ORS Chapter 279C; and WHEREAS, ORS 279C.335(2) provides a process for exempting certain contracts from competitive bidding, ORS 279C.337 authorizes procurement of construction manager/general contractor services in accordance with its provisions and Attorney General Model Rule OAR 137-049-0690, as an alternative to traditional competitive bidding, and the Lake Oswego Public Contract Rules include OAR 137-049-0690; and WHEREAS, the above cited statutes and rules authorize the selection of a contractor through the request for proposal ("RFP") Construction Manager/ General Contractor (CM/GC) method of solicitation and construction; and WHEREAS, the findings ("Findings") in Exhibit A to this Resolution address the criteria of ORS 279C.335(2): (a) The exemption is unlikely to encourage favoritism in awarding public improvement contracts or substantially diminish competition for public improvement contracts;and (b) Awarding a public improvement contract under the exemption will likely result in substantial cost savings due to competition, operational, budget and financial data, public benefits, value engineering, specialized expertise required, market conditions, and technical complexity; and WHEREAS, the draft Findings were made available to the public 14 days before the public hearing on this Resolution; and WHEREAS, the solicitation of the CM/GC will comply with the requirements of ORS 279C.337 and OAR 137-049-0690; and WHEREAS, the Lake Oswego City Council determines that the City of Lake Oswego South Shore Fire Station should be constructed by the CM/GC method of contracting. Resolution 25-34 Page 1 of 2 NOW,THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. City Council adopts the Findings in Exhibit A to this Resolution. Section 2. Based upon the findings, the Lake Oswego City Council concludes that the exemption of the construction contract from competitive bidding, and the use of the alternative request for proposal (RFP) CM/GC method of contracting, will promote competition, will not encourage favoritism, and are likely to result in substantial cost savings to the City. Section 3. The contract for costing and construction of the City of Lake Oswego's South Shore Fire Station by a Construction Manager/General Contractor for a Guaranteed Maximum Price is exempted from competitive bidding, and the contractor shall be selected by the RFP CM/GC method in accordance with the City's public contracting rules, including but not limited to OAR 137-049-0690, and the process described in the Findings. Section 4. Effective Date. This Resolution shall take effect upon passage. Considered and enacted at the regular meeting of the City Council of Lake Oswego on the 1st day of July, 2025. AYES: NOES: EXCUSED: IL ABSTAIN: Joe Buck Mayor ATTEST: Kim Vermillion Interim City Recorder APPROVED AS TO FORM: Ellen Osoinach Resolution 25-34 Page 2 of 2