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HomeMy WebLinkAboutAgenda Item - 2025-09-22 - Number 06.1 - Staff Memo 09-12-25 PCWS-2 w-Attach PP 25-0002 503-635-0290 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY TO: Lake Oswego Planning Commission FROM: Michael McNamee, Associate Planner SUBJECT: Rezoning for Housing - Work Session #2 (PP 25-0001) DATE: September 12, 2025 WORK SESSION DATE: September 22, 2025 EXECUTIVE SUMMARY This work session will provide background to the Planning Commission (Commission) on the City’s proposed project to rezone mixed-use, commercial, and non-residential areas of Lake Oswego to support the development of more housing units. Since the first work session with the Commission, the Planning Department applied for a Housing Planning Assistance grant from the Department of Land Conservation and Development (DLCD) to fund a consultant to help execute the project. DLCD is expected to decide on the grant awards in September. If successful, a consultant would then be provided by DLCD, who has procured several planning consultants to work on Housing Planning Assistance grant projects. Commencement of the project is estimated to begin in early 2026. The Commission will be involved throughout the process, providing input on code concepts, draft amendments, and the final recommendation to the City Council. The project is anticipated to be finished by the end of 2027. BACKGROUND In the City’s 2023 Housing Needs Analysis (HNA), it was determined that approximately 1,968 units of new housing will need to be developed in Lake Oswego between 2023 and 2043 to meet current and future demand. However, the HNA also determined that the land within the city’s boundaries lacks capacity to build all of those units based on development potential under the existing Zoning Map and Community Development Code (CDC). Additional capacity of at least 641 units is needed to be able to supply the overall number of units required to meet demand. One of the 13 strategies identified by the City’s Housing Production Strategy (HPS) to create extra capacity to build housing is to rezone parts of the city, focusing on the areas currently zoned for commercial, mixed-use, or non-residential uses. While the HPS references a later phase of the project that would add housing capacity in residentially-zoned areas as well, Council has since provided guidance to focus added capacity in non-residentially-zoned areas and to deprioritize rezoning in primarily residential areas of the city. Page 2 of 3 DISCUSSION Project Objectives and Scope The purpose of this project is to amend the Zoning and Comprehensive Plan Maps for certain commercial, mixed-use, or non-residentially zoned areas of the city to allow for greater residential density. The project will be conducted in two phases. The first phase will be to identify focus areas where there may be potential for denser residential development. The second phase will be to formulate more detailed recommendations for how best to amend the Zoning Map in those areas. As part of this process, potential amendments to the text of the CDC may be identified to support the Zoning Map changes. Such code amendments could be accomplished as part of this project or be included in a project the City will be running concurrently, the Code Audit for Housing and Business, which will be conducting a comprehensive review of the City’s zoning requirements to identify barriers to housing and business development citywide. As part of the first phase, identifying areas of the city with a high potential for higher density residential redevelopment, the following steps will be taken: 1. Create a rezoning background report, which will provide basic background information for the project, including defining the methodology the City will use to identify rezoning focus areas. 2. Create a map and report summarizing rezoning opportunities and constraints. 3. Analyze 4-5 focus areas and create zoning alternatives for each. The second phase, creating Zoning and Comprehensive Plan Map amendments, will require the following steps: 1. Refining zoning concept recommendations for selected focus areas. 2. Drafting and finalizing Zoning and Comprehensive Plan Map amendments. 3. Depending on the results of the first phase, potentially drafting and finalizing CDC or Comprehensive Plan text amendments. Completion of the first phase is projected to take at least a year, with an additional nine months needed for the adoption of Zoning Map, Comprehensive Plan Map, and other potential amendments, including public hearings. Public Involvement The consultant (with staff support) will draft a Public Involvement Strategy that will help guide the project to ensure the community’s vision and values are reflected. The community engagement process will likely include open houses, stakeholder interviews, community surveys and online communications (e.g. social media posts, web updates, press releases, etc.). A Technical Advisory Committee (TAC) comprised of key City staff and representatives from the development community will be formed to help direct the technical work of the project. The same TAC will also advise the work of the Code Audit project. Planning Commission Involvement The Commission will be involved throughout the process, providing input on the zoning alternatives, draft amendments, and the final recommendation to City Council. There are expected to be several Commission work sessions for staff to provide project updates, Page 3 of 3 summarize public engagement, and receive advisory input at key points throughout the project. In addition, there will be Commission public hearings to review the proposed code amendments, receive public testimony, and issue final recommendation to City Council. See Timeline and Next Steps, below, for more detail. Timeline and Next Steps The Planning Department applied for a $210,000 DLCD Housing Planning Assistance Program grant on August 4th to hire a consultant for the project (Attachment 1). The application included letters of support from City Council, the Lake Oswego Chamber of Commerce, and the Home Building Association of Greater Portland. DLCD is expected to issue a decision on the grant sometime in September. If successful, a consultant will most likely be chosen by DLCD, who has procured several consultants to work on Housing Planning Assistance grant projects. However, a Request for Proposals (RFP) could be required if the capacity of DLCD’s consultants is exceeded. All tasks—including adoption of code amendments—are tentatively scheduled to be completed by September 2027. The tentative project process and timeline are as follows: PROJECT MILESTONE DATE DUE 1 Project Kick-Off Draft Public Involvement Strategy January 2026 March 2026 2 Rezoning Background Report April 2026 3 Rezoning Opportunities and Constraints Summary Map and Paper July 2026 4 Draft and Final Focus Area Alternatives Report First Draft of Report Second Draft of Report Final Draft September 2026 November 2026 January 2027 5 Draft Zoning Map, Comprehensive Plan, and CDC (if required) Amendments April 2027 6 Adopt Zoning Map, Comprehensive Plan, and CDC (if required) Amendments September 2027 ATTACHMENTS 1. DLCD Housing Planning Assistance Grant Program Application, 8/4/2025 2. Scope of Work – Rezoning for Housing, 8/4/2025 Department of Land Conservation and Development 2025-2027 HOUSING PLANNING ASSISTANCE APPLICATION Page 1 of 7 Please complete each section in the form below. Fill out the requested information in the spaces provided. For applicants requesting multiple services, submit a separate form for each. Submit completed applications by midnight on August 4, 2025. Date of Application: Applicant (Jurisdictional Entity): If applying on behalf of a jurisdiction or pursuing a joint project, please also include the recipient jurisdiction name(s) Contact Name and Title: Contact e-mail address: Contact phone number: Requested Service: Direct Grant (& DLCD-Provided budget estimate)Consultant Housing Planning Assistance Projects Development Code Amendment ☐|$☐ Housing Capacity Analysis (HCA)1 ☐ |$☐ Housing Production Strategy (HPS)☐ |$☐ Housing Implementation Plan (Housing planning ☐ |$☐ activities other than an HCA or HPS) Urbanization Planning Assistance Projects Urban Growth Boundary Land Exchange ☐ |$☐ Urban Growth Boundary Amendment2 ☐ |$☐ One-Time Urban Growth Boundary Amendment3 ☐ |$☐ Urban Reserves ☐ |$☐ Public Facilities Area Plan ☐ |$☐ 1.Housing Capacity Analyses initiated under this Housing Planning Assistance Program are expected to be conducted under the Oregon Administrative Rules implementing the Oregon Housing Needs Analysis that the Land Conservation and Development will adopt in December 2025. 2. A UGB amendment requires a land deficiency identified in a Housing Capacity Analysis. 3. As provided i n SB 1537 (2024) Section 48-60. Department of Land Conservation and Development 2025-2027 DLCD Housing Planning Assistance Application PP 25-0002 ATTACH 1/PAGE 1 OF 7 Page 2 of 7 Project Title: Project Summary: (Summarize the project and products in 50 words or fewer) Project Description & Work Program Please carefully review the attached Sample Work Program applicable to your jurisdiction’s proposed project. The work programs included represent typical tasks and work products associated with common project types. If you expect the project to be substantially similar (i.e. there may be minor variations, but major project deliverables align with applicant expectations) to the project included in the Sample Work Program, the applicant does not need to submit a work plan. However, if the applicant anticipates a proposal for a project that is substantially different from the projects included in the Sample Work Program, please include an attachment detailing the proposed project, addressing each of the following in an attachment. Applicants applying for distinct or unique projects are expected to submit detailed applications that specify the work tasks, products, and timelines unique to their project. Priority will be given to applications that provide well-defined tasks, products, and timelines. Is the jurisdiction planning to utilize the applicable Sample Work Program as the project statement of work? Yes ☐ No ☐ If “yes”, please skip to the “Tasks, Timelines, and Budget” section below. If “no”, please attach a detailed work program including the following. A. Goals and Objectives. The purpose of housing planning assistance projects is outlined in the attached Sample Work Program for reference. Please state the goals or overall purpose of the project. Describe particular objective(s) the community hopes to accomplish. Please indicate whether this is a stand-alone project or is part of a longer multi-year program. If it is the latter, describe any previous work completed, subsequent phases and expected results, and how work beyond this project will be funded. B. Products and Outcomes. Please describe the product(s) and outcome(s) expected from the proposed project in detail, including a brief description of any anticipated significant effect the project would have on development, livability, regulatory streamlining, and compliance with state/ federal requirements, equitable socioeconomic benefits, or other relevant factors. Department of Land Conservation and Development 2025-2027 DLCD Housing Planning Assistance Application PP 25-0002 ATTACH 1/PAGE 2 OF 7 Page 3 of 7 C. Work Program, Timeline & Payment. Please include a comprehensive work program describing the specific tasks, timelines, expected budget, and deliverables. Public engagement is a necessary component of any planning process but may be tailored to fit the project context. Some projects, such as code amendment or technical projects, may not require extensive engagement in comparison to major projects with substantial local policy impacts. If other changes are necessary, please consult with your Regional Representative. * Budget estimates are only required for Direct Grant requests. Applicants requesting DLCD-provided consultants can leave this field blank. Tasks, Timelines, and Budget List and describe the major tasks, including: •The title of the task; •Anticipated timeline for each task, including the tentative start date after the grant agreement or consultant contract is executed, task completion dates, and project completion date. Note that all tasks must be completed before the end of the biennium. We request that project timelines conclude no later than June 15, 2027; •For direct grant projects, anticipated budget for all tasks; and •Expected local contribution, including budget, staff time, and resources. Task Title Timeline (Month, Year)Estimated Budget* Local Contribution 1 to $$ 2 to $$ 3 to $$ 4 to $$ 5 to $$ 6 to $$ 7 to $$ 8 to $$ TOTAL to $$ If the project is part of a multi-year program, provide an overview of the expected timelines in sequence of expected start dates and completion date for each phase and describe subsequent phases to be completed. If the following spaces are not sufficient for your responses, you may attach a separate document with additional information. Please clearly indicate the question number and/or prompt with each response to ensure it aligns with the application form. Department of Land Conservation and Development 2025-2027 DLCD Housing Planning Assistance Application PP 25-0002 ATTACH 1/PAGE 3 OF 7 Page 4 of 7 Project Criteria and Additional Information 1.Evaluation Criteria. Include a statement that addresses the program priorities and evaluation criteria presented in the application instructions (“Eligible Projects and Evaluation Criteria”). 2.Project Partners. List any other public or private entities that will participate in the project, including federal and state agencies, council of governments, city and county governments, and special districts. Briefly describe the role of each (e.g., will perform work under the grant; will advise; will contribute information or services, etc.). If the project includes multiple jurisdictions, briefly describe the capacity and support of those jurisdictions to support and participate in the project. Department of Land Conservation and Development 2025-2027 DLCD Housing Planning Assistance Application PP 25-0002 ATTACH 1/PAGE 4 OF 7 Page 5 of 7 3.Advisory Committees. List any advisory committee or other committees that will participate in the project. 4. Cost-Sharing and Local Contribution. DLCD funds may comprise a portion of overall project costs; if so, please identify sources and amounts of other funds, staff time, or services that will contribute to the project’s success. Cost-sharing (match) is not required, but recommended. Will a consultant be retained to assist in completing grant products? Yes ☐ No ☐ Will you be utilizing this funding to dedicate your own staff resources in completing grant products? Yes ☐ No ☐ Department of Land Conservation and Development 2025-2027 DLCD Housing Planning Assistance Application PP 25-0002 ATTACH 1/PAGE 5 OF 7 Page 6 of 7 Local Official Support The application must include a resolution or letter from the governing body of the city or county demonstrating support for the project. If the applicant is a regional entity proposing a joint project including multiple local governments, a letter from the local government governing body or administrator with authorization to execute intergovernmental agreements supporting the application may be included in lieu of a resolution. The letter of support may be received by DLCD after the application submittal deadline, but it must be received before planning assistance is awarded. --------------------------------------------------------------------------------------------------------------------------------------- Submit your application electronically with all required information to: E-mail: housing.dlcd@dlcd.oregon.gov Please note that we will not be accepting applications by mail. If your jurisdiction requires special accommodations, please reach out to a Grant Program Contact as soon as possible. If you have questions about the Housing Planning program or projects funded by this round of planning assistance, please contact: DLCD Housing Team: housing.dlcd@dlcd.oregon.gov DLCD HAPO Team: dlcd.hapo@dlcd.oregon.gov For all correspondence, please include the appropriate Regional Representative. Mid-Willamette Valley Melissa Ahrens melissa.ahrens@dlcd.oregon.gov Central Oregon Angie Brewer angie.brewer@dlcd.oregon.gov North Coast & Lower Columbia Brett Estes brett.estes@dlcd.oregon.gov Eastern Oregon Dawn Hert dawn.hert@dlcd.oregon.gov Portland Metro (West)Laura Kelly laura.kelly@dlcd.oregon.gov Southern Oregon Josh LeBombard josh.lebombard@dlcd.oregon.gov Portland Metro (East)Kelly Reid kelly.reid@dlcd.oregon.gov South Coast Hui Rodomsky hui.rodomsky@dlcd.oregon.gov South Willamette Valley Patrick Wingard patrick.wingard@dlcd.oregon.gov Department of Land Conservation and Development 2025-2027 DLCD Housing Planning Assistance Application PP 25-0002 ATTACH 1/PAGE 6 OF 7 Page 7 of 7 Important Housing Planning Assistance Dates Date Housing Planning Assistance Milestone June 2, 2025 | 1:30 – 3p Open Forum for follow-up question & answer Zoom link | Meeting ID: 821 4886 4505 | Passcode: 598033 June 3, 2025 Application period opens; materials distributed August 4, 2025 Application period closes; materials submittal deadline Early September Anticipated funding decision; award notices sent October – November 2025 Direct grant agreements anticipated execution November – December 2025 Consultant contract anticipated execution June 15, 2027 Project completion deadline APPLICATION DEADLINE: August 4, 2025 Department of Land Conservation and Development 2025-2027 DLCD Housing Planning Assistance Application PP 25-0002 ATTACH 1/PAGE 7 OF 7 Rezoning for Housing Scope of Work Page 1 Scope of Work - PP 25-0001 Rezoning for Housing Introduction The purpose of this project is to identify commercial, mixed-use, or other non-residentially zoned areas of Lake Oswego that could allow for housing or where zoning could be updated to allow for higher-density housing. Lake Oswego has a shortage of land for housing, as identified in the City’s Housing Needs Analysis (2023). Rezoning was chosen as one strategy to address the future housing needs of the city, and in particular the lack of available capacity for new housing units, in the Housing Production Strategy adopted by the City in 2024. This project is also consistent with the 2025 City Council Goal to, “begin implementation of the near-term strategies in the Housing Production Strategy Report, including rezoning commercial and mixed-use properties, evaluating a low-income rental tax exemption program, and amending the Comprehensive Plan to adopt a fair housing policy.” In October 2023, the Lake Oswego Housing Needs Analysis (HNA) was adopted to identify and analyze what housing is needed for the city’s current and future residents. The HNA indicated that nearly 2,000 new housing units are needed by 2043 to serve individuals at a wide range of income levels through a variety of different housing types. In November 2024, the Lake Oswego Housing Production Strategy (HPS) was adopted, which commits the City to pursuing rezoning as one of thirteen different strategies to increase housing production in Lake Oswego and meet the needs identified in the HNA. The HPS recommends undertaking rezoning to address the shortage of capacity for housing (a deficit of 642 total units), and potentially to address the deficit of higher-density units by rezoning lower-density areas. The goal of this project is to add more capacity to build housing on existing land within the city, starting with commercial, mixed-use, and non-residentially zoned areas, and prioritizing areas with the greatest potential for higher density multifamily housing. The City anticipates that rezoning will have a moderate to high impact on its ability to meet projected future housing needs. There is currently a limited supply but high demand for housing in the community. Given a lack of undeveloped land within the city and limited potential to add new developable land, rezoning will allow housing needs to be met with the existing supply of land. However, development potential will also depend on the physical characteristics of specific sites, such as steep slopes, and availability of infrastructure. Assessing these constraints will be key to determining the most effective areas of the city to rezone. This project is planned to commence in early 2026 and be completed by the end of 2027. Rezoning for Housing – Product and Process The purpose of this project is to amend the Zoning and Comprehensive Plan Maps for certain commercial, mixed-use, or non-residentially zoned areas of the city to allow for greater residential density. The project will be conducted in two phases. The first phase will be to identify focus areas where there may be potential for denser residential development. The second phase will be to formulate recommendations for how best to amend the Zoning Map in those areas. As part of this process, potential amendments to the Community Development Code (CDC) may be identified to support the Zoning Map changes. Code amendments could be accomplished as part of this project or be included in a project the City will be running concurrently, the Code Audit, which will be conducting a PP 25-0002 ATTACH 2/PAGE 1 OF 15 Rezoning for Housing Scope of Work Page 2 comprehensive review of the City’s zoning requirements to identify barriers to housing and business development citywide. As part of the first phase, identifying areas of the city with a high potential for higher density residential redevelopment, the following steps will be taken: 1. Create a rezoning background report which will provide basic background information for the project, including defining the methodology the City will use to identify rezoning focus areas. 2. Create a map and report summarizing rezoning opportunities and constraints. 3. Analyze 4-5 focus areas and create zoning alternatives for each. The second phase, creating zoning map and Comprehensive Plan amendments, will require the following steps: 1. Refining zoning concept recommendations for selected focus areas. 2. Drafting and finalizing Zoning and Comprehensive Plan map amendments. 3. Depending on the results of the first phase, potentially drafting and finalizing CDC amendments. Completion of the first phase is projected to take at least a year, with an additional nine months needed for Zoning map, Comprehensive Plan, and other potential amendments, including public hearings. Work Plan The Scope of Work (SOW), work schedule, and budget, together with the descriptions of work within the work plan, describes the work to be performed by the City itself, or to be performed by the City through or with consultants to be engaged by the City. In the event of any conflict between the provisions of the SOW and the work plan, the terms of the work plan shall control. Unless specified otherwise, references in the SOW to the "project team" shall mean, the City together with the consultants it has engaged through the process outlined in the work plan and the SOW. 1.0 Project Management + Schedule 1.1 Project Management The City, as the Project Manager, will provide overall project management for the process. Ultimately, the project team will be responsible for the materials that are generated under this work plan and for ensuring that the outcome of this process meets the community’s needs. Specific issues related to the management of this process are outlined below. 1.1.1 Consultants Over the course of the project, the City will manage the consultant selection process as well as develop and manage the consultant work scopes in order to successfully deliver the products described herein. The process will be open and transparent, and will include significant City oversight throughout. PP 25-0002 ATTACH 2/PAGE 2 OF 15 Rezoning for Housing Scope of Work Page 3 A. Consultant Selection The City Project Manager will identify the specific deliverables and scope of work for the consultant as required by this work plan. In order to ensure the selection of the most qualified consultants and maximize the City’s value, the City will advertise for an open solicitation for Request for Proposals (RFP). At a minimum, it is anticipated that the following services will be needed for the project and that an appropriate consultant will be selected to provide these services: • Planning/Land Use/Transportation Analysis • Community Engagement • Public Policy • Architecture and Urban Design • Economic Analysis and Research Consultant selection will be done by the City’s Project Manager and include development of an RFP Invitation for selecting qualified consultants. Evaluation criteria will include, but not be limited to, relevant firm experience in: land use planning; public participation; housing policy; architecture and urban design, economic analysis and research; local experience and knowledge; billing rates; and references. All firms must demonstrate their standing as an Equal Employment Opportunity (EEO) employer and meet City COBID requirements. Prior to issuing the RFP, the City’s Project Manager will establish specific scoring criteria for consultants. This information will be communicated in the RFP package. The selection team will have the right to select a consultant based on their response to the RFP or may, at its option, conduct interviews with potential consultants. B. Consultant Scope of Work/Contracts As part of the RFP package, the City will prepare an initial outline of the scope of work that is being requested, based on this work plan. This initial SOW will be used as part of the basis for consultant selection as well as to assist potential consultants in assembling a qualified team and their responses. Following consultant selection, the City’s Project Manager will work with the selected consultant (“Consultant”) to more clearly define their scope of work, including a delivery schedule and not-to-exceed budget for the work. Where Consultant budget or schedule exceeds the established project budget and schedule, the City’s Project Manager will work with the Consultant to meet the budget or schedule through reduced/reassigned work, increasing the budget allocation for certain tasks, or proceeding to negotiate with the second (or next) ranked Consultant. The City’s Project Manager shall approve of any reductions in/reassignments of work, budget increases, or decisions to move to the next Consultant. Products/Deliverables: Executed Consultant Contracts PP 25-0002 ATTACH 2/PAGE 3 OF 15 Rezoning for Housing Scope of Work Page 4 C. Manage Consultant Scope of Work/Contracts The City’s Project Manager will manage the Consultant Scope of Work/Contracts to ensure delivery of the desired Consultant products within the established budget and timeline for the project. This work will include regular meetings with Consultants to review project progress, direction to Consultants to ensure consistency and coordination with other work tasks, and management of costs to ensure budget certainty. Monthly reports will be prepared by the Consultant for review with the City’s Project Manager in order to track Consultant performance to date, including budget, schedule, work completed, and acceptability of Consultant products. Products/Deliverables: Monthly Consultant Performance Reports 1.1.2 Project Schedule The City’s Project Manager will manage the project so as to deliver final products in accordance with the final project schedule based on the conceptual/anticipated Project Schedule. The Project Schedule will be updated monthly by the Consultant (or more as needed) to reflect approved Consultant SOW and reflect progress to date. The Project Schedule will be reviewed at least monthly with the City’s Project Manager, and adjustments will be made as needed based on the outcome of these monthly reviews. Products/Deliverables: Project Schedule and Schedule Tracking Reports 1.1.3 Accounting and Cost Control The Consultant will track the Project Budget reflected in the SOW and provide all accounting and cost controls for the project. Invoices will be submitted monthly to the City for review and approval. The City’s Project Manager will track submitted invoices against the Consultant contracts and the Project Budget and Schedule. Invoices will be approved only if the work performed was included in an approved Consultant contract or approved in writing in advance of the work being performed. Consultants must submit supporting material to the City’s Project Manager for review and approval. Any project expenses exceeding $1,000.00 must be countersigned by the City. Additionally, the Consultant shall submit a summary invoice for that month’s approved costs, including project expenses and fees. A budget tracking report must also be provided to measure Consultant performance against the Project Budget and Consultant fees earned. Upon the City’s review and approval of the summary invoice and tracking report, the City shall electronically transfer payment to the Consultant account. Products/Deliverables: Monthly Invoices/Checks; Budget Tracking Reports 1.1.4 Project Team Meetings The project team will be expected to meet on a regular basis to review project progress, ensure consistency and coordination between work tasks, discuss potential schedule changes, and manage costs to ensure budget certainty. PP 25-0002 ATTACH 2/PAGE 4 OF 15 Rezoning for Housing Scope of Work Page 5 Products/Deliverables: City and Consultant – PT meetings on an ongoing basis; Consultant – Agendas and Minutes for all PT Meetings. 1.2 Project Oversight This work plan is an important step in the establishment of a public involvement process focused on broad outreach that provides a range of opportunities for community members and stakeholders to be involved and engaged in the process. The establishment of a Technical Advisory Committee (TAC) will provide technical expertise on subject matters. The Consultant will be tasked with drafting a public involvement strategy that will then help guide the code amendments to ensure the community’s vision and values are reflected. The community engagement process will likely include a kickoff public event, focus groups, community surveys and online communications (e.g. social media posts, web updates, press releases, etc.). Ultimately, the City Council will make the final decision to approve the amendments, so it will be well served by the guidance of the community and technical expertise of the TAC. 1.2.1 Technical Advisory Committee A Technical Advisory Committee (TAC) comprised of key City staff and representatives from the development community will be formed and managed by the City’s Project Manager and Consultant to help direct the technical work of the project. The TAC is anticipated to be tasked with providing input on this project as well as other strategies identified in the HPS, including the Code Audit strategy, which will run concurrently with this project. The Code Audit strategy will take a comprehensive look at the CDC to identify barriers to housing and economic development. As part of the Rezoning for Housing project, additional CDC amendments may be identified that should be coordinated with the Code Audit work. While the scope of work for the TAC will likely extend beyond the tasks related to this project, and coordination with the Code Audit project will be required, the Consultant will only be expected to manage the TAC in relation to the scope of work and tasks outlined for this project. This group will provide an opportunity for the City and the Consultants to test and refine planning concepts and to ensure that work products will meet the City’s needs for delivery of rezoning recommendations and resulting Zoning and Comprehensive map amendments. The proposed core membership of this group will include the following: • Planning Department staff • Building Department staff • Engineering Department staff • Oregon Home Builders Association Representative • Design and Development Professionals, including: • Multifamily and Middle Housing Developers • Architects / Landscape Architects • Real Estate Professionals • Housing Finance Professionals • Chamber of Commerce Representative • Local Business Owners PP 25-0002 ATTACH 2/PAGE 5 OF 15 Rezoning for Housing Scope of Work Page 6 • Economic Development Professionals • DLCD Representative • City’s Sustainability Program Manager The Consultant, with input from the City, will develop a charge statement for the TAC that outlines the role and responsibility of the committee with respect to this scope of work. It is anticipated that this group may meet monthly after the kickoff event during the selection of focus areas and development of zoning alternatives for focus areas. The Consultant will prepare meeting agendas and distribute information to the TAC in advance of each meeting outlined in the scope for this project. Since the Code Audit project will be run at the same time and utilize the same TAC, the Consultant will need to coordinate with the Project Manager and Consultant for that project to develop meeting agendas. Products/Deliverables: Project Advisory Group Meetings 1.2.2 City Council Meetings The Consultant will be expected to attend and assist with presenting at several City Council study sessions at key points throughout the Plan update process to provide project updates, summarize public engagement, and receive direction related to future phases of the project. The Consultant is also expected to attend and participate in City Council public hearings related to the adoption of Zoning map, Comprehensive Plan, and potential CDC amendments. In addition, the Consultant will coordinate with the City Project Manager to prepare the necessary documents, including staff reports and presentation materials for all City Council study sessions and hearings. Products/Deliverables: In-person attendance and participation at City Council study sessions and hearings; Coordination and preparation of materials in advance of study sessions and hearings. 1.2.3 Planning Commission Meetings The Consultant will be expected to attend and assist with presenting at multiple Planning Commission (PC) Work Sessions to provide project updates, summarize public engagement, and receive advisory input at key points throughout the Plan update process. The Consultant is also expected to attend and participate in PC public hearings related to the adoption of zoning map, Comprehensive Plan, and code amendments. In addition, the Consultant will coordinate with the City Project Manager to prepare the necessary documents, including staff reports and presentation materials for all PC work sessions and hearings. Products/Deliverables: In-person attendance and participation at Planning Commission (PC) Work Sessions and hearings; Coordination and preparation of materials in advance of study sessions and hearings. 1.3 Project Coordination PP 25-0002 ATTACH 2/PAGE 6 OF 15 Rezoning for Housing Scope of Work Page 7 This project will need to take into consideration and coordinate with other efforts by the City and private parties to construct housing or amend the Community Development Code or Comprehensive Plan. 1.3.1 Private projects The Consultant, in coordination with the City, will reach out to owners of large properties in potential focus areas for rezoning to better understand the likelihood for redevelopment and what kind of zoning might support potential redevelopment. This outreach could take the form of a focus group or ongoing targeted outreach or events, which will be outlined in the eventual Public Involvement Strategy (Task 2.4, below). 1.3.2 Concurrent City projects There are two major City projects that will run at the same time as the Rezoning for Housing project. In order to maximize the effectiveness of all related City projects, the Project Manager and Consultant will be expected to keep up to date with developments in other projects and, where appropriate, adjust the rezoning plan or suggest changes to other projects. The two major projects that are anticipated to run concurrently with this one are: (a) The Code Audit. This project will take a comprehensive look at the CDC to identify barriers to housing and business development. The goal of this project is to craft amendments to the CDC that will reduce barriers where they are identified. As mentioned in 1.2.1, since this project is closely related to the Rezoning for Housing project, the two will share a Technical Advisory Committee. As potential code amendments are identified, they may be integrated into the Code Audit project as well. (b) The Foothills District Plan, the goal of which is to create a plan to redevelop the Foothills area of Lake Oswego into a mixed-use neighborhood. Rezoning efforts may dovetail with this project, although rezoning of the Foothills district will likely be completed through the scope of the District Plan and not through the Rezoning for Housing project. However, Foothills zoning should be considered as a complement to zoning alternatives in the Rezoning for Housing project. 2.0 Public Participation + Community Involvement The Consultant, with City support, will lead the public involvement effort, ensuring that all work reflects community priorities and incorporates public feedback. The process includes identifying stakeholders across multiple audiences whose input is critical in determining the focus areas for rezoning and shaping the zoning alternatives for those areas. A specific Public Involvement Strategy will be drafted which incorporates community issues and concerns as part of the planning process. The Draft Public Involvement Strategy will then be presented to the TAC and the Planning Commission (PC) for further refinement. Upon acceptance of the final Public Involvement Strategy, the Consultant and City will execute the strategy and manage public communications and outreach efforts. PP 25-0002 ATTACH 2/PAGE 7 OF 15 Rezoning for Housing Scope of Work Page 8 2.1 Identify Stakeholders The Consultant, with support from the City, will identify stakeholders who might be impacted by or have an interest in the project. Communication will be maintained with these stakeholders throughout the course of the project and some may be included in the Focus Group discussed below in 2.4.1. Product/Deliverable: Mailing list of stakeholders and communication to stakeholders 2.2 Stakeholder Interviews Stakeholders will be interviewed for initial feedback on the project. This will help the City determine potential focus areas for rezoning. The Consultant will be expected to create the interview format and facilitate the interviews. Product/Deliverable: Interview questions and facilitation 2.3 Manage Public Involvement Process The City will manage the public involvement process based on the public involvement strategy produced in Task 2.4 below. Throughout the process, the City and the Consultant will continue to review and refine the public involvement strategy to maximize opportunities for citizen participation and meaningful involvement. 2.4 Public Involvement Strategy The Consultant will prepare a Draft Public Involvement Strategy and submit to staff, the TAC and PC – who acts as the Commission for Citizen Involvement (CCI)- for review and comment. The Public Involvement Strategy will be the “roadmap” that guides public planning efforts for the project, with the goal of preparing final recommendations with broad community support. The Strategy will include: • Recommended public events (workshops, open houses, presentations, etc.) for broad dissemination of information; and • A communications strategy for keeping the public informed of the process. Based on comments received from staff, the TAC, and the PC/CCI, the Consultant will refine the Public Involvement Strategy and move forward with its implementation. It is anticipated that Consultant and the City will revisit the document throughout the planning process, and continue refining the strategy to ensure that opportunities for public involvement are maximized. This Public Involvement Strategy must also incorporate, as a baseline, all of the public involvement activities scoped for Task 2, as well as the project coordination activities scoped for Task 1.3. Product/Deliverable: Draft and Final Public Involvement Strategy 2.4.1 Focus Group PP 25-0002 ATTACH 2/PAGE 8 OF 15 Rezoning for Housing Scope of Work Page 9 As part of the Public Involvement Strategy, the Consultant, with support from the City, will prepare and facilitate multiple focus groups that include developers, land use planning professionals, residents, business owners, Neighborhood Associations, and other parties to be identified in the eventual Public Involvement Strategy. The focus groups will be used to gather input about the focus area zoning alternatives, including what the potential impacts might be to existing residents and businesses and how best to mitigate them. Products/Deliverables: Focus Group materials and event facilitation 2.4.2 Public Events Consistent with the final Public Involvement Strategy, the Consultant will plan, organize, and manage a series of public events (open houses, workshops, or similar formats) with the goal of providing a wider audience with an opportunity to review work products and provide feedback to the Consultant team as well as to the TAC. In advance of the public events, staff will create a mailing list comprised of interested parties/stakeholders, including property owners, residents, and businesses. The City will prepare and mail meeting invitations, with at least two weeks’ notice provided to potential attendees. Following the events, the Consultant will provide a summary of results, comments, and other feedback received at the events. Products/Deliverables: Public Events (TBD); Event Summaries 2.4.3 Communications/Webpage Throughout the planning process, the City will maintain open lines of communication with the stakeholder groups as well as with each of the committees working on the project. An interested party list shall be developed at all public events to allow people to sign up for updates and other relevant information. The City shall be responsible for maintaining and sending information to people on the interested party list. At key points in the process, press releases, website updates or similar products shall be produced to broadly communicate the work efforts to date and to highlight upcoming events. The City will set up a project web site as an additional means for interested parties to keep abreast of the planning process and communicate with the team. Products/Deliverables: Periodical Newsletters; Web site design/upkeep 2.4.4 Engagement Summary Report The Consultant will prepare an Engagement Summary Report that summarizes the key findings from the Stakeholder Focus Group, Online Engagement Tool, and any public events that have been held up to that point (as defined in the Public Involvement Strategy). The Engagement Summary Report will then be presented to the City Council, the PC, and the TAC, as determined by the Public Involvement Strategy. PP 25-0002 ATTACH 2/PAGE 9 OF 15 Rezoning for Housing Scope of Work Page 10 Consultant will have biweekly check-ins with the City to discuss major project milestones and work products, address questions, and identify follow-up actions. Products/Deliverables: Engagement Summary Report 3.0 Rezoning Background Report The purpose of the background report is to assess existing conditions and lay the groundwork for identifying focus areas for zoning map and Comprehensive Plan amendments. The Consultant will meet with City staff to establish expectations for the Report. The information gathered during this phase of work is intended to provide a basis for further analysis and ultimately amendments to the Zoning and Comprehensive Plan Maps. Products/Deliverables: • Drafts of the Rezoning Background Report • Presentation materials 3.1 Base Maps The Consultant will provide maps as part of the report that provide context and an overview of existing conditions. This is expected to include maps depicting existing infrastructure, the age and density of existing development, the location of amenities, and more. The Consultant will propose which maps to create for this task, and the scope of the deliverable will be refined and finalized by mutual agreement between the City and the Consultant. Products/Deliverables: Base Maps 3.2 Analysis of Existing Mixed-Use and Non-Residential Zoning Districts The Report will include a section that provides an overview of the mixed-use and non-residential zoning districts in Lake Oswego. It should include a map showing where those districts are located, an analysis of allowable density in those districts, and a history of the districts, including when they were initially mapped. Products/Deliverables: Analysis of Existing Mixed-Use and Non-Residential Zoning Districts 3.3 Summary of Recent City Actions The Report will include a summary of recent City actions related to housing, including Climate Friendly and Equitable Communities-related amendments, Middle Housing-related amendments, and recent affordable housing developments. The City will take the lead in compiling this information and the Consultant will be expected to incorporate this content into the Report. Products/Deliverables: Summary of Recent City Actions 3.4 Definition of Methodology to Identify Rezone Areas PP 25-0002 ATTACH 2/PAGE 10 OF 15 Rezoning for Housing Scope of Work Page 11 The report will provide a basis for how to identify areas of the city that have the highest potential to be successfully rezoned. The methodology must start at a citywide scale in order to identify potential focus areas for rezoning efforts within commercial, mixed-use, or non-residentially zoned areas of the city. The analysis will include an in-depth analysis of focus areas based on factors such as proximity to existing residential and higher-density zoned areas, proximity to services like transit, schools, and parks, and areas where there are several large properties that have a high potential for redevelopment. Products/Deliverables: Methodology to Identify Rezone Areas 3.5 Potential Concerns The report should include a section about potential concerns, such as whether adequate land would be available for commercial or industrial needs after rezoning. The costs of new infrastructure and impact on the livability of neighborhoods should also be considered. Additional concerns should also be identified by the Consultant. Products/Deliverables: Outline of Potential Concerns 4.0 Rezoning Opportunities and Constraints Summary Map and Paper Building on the methodology devised in the Rezoning Background Report, the Consultant will prepare an initial draft Rezoning Opportunities and Constraints Report presented to staff for review and comments, then prepare a second draft report that will be presented to the City Council, PC, TAC, and general public. Products/Deliverables: • Drafts of the Rezoning Opportunities and Constraints Summary Map and Paper • Presentation materials The draft Report will include: 4.1 Citywide Zoning Capacity Analysis A citywide zoning capacity analysis. This will include a list of groups of redevelopable parcels using the methodology outlined in the Background Report, and an estimate of the development capacity on vacant and redevelopable parcels. 4.2 Identification of Potential Focus Areas for Rezoning The report will include an analysis of potential focus areas for rezoning, which will be selected from the citywide analysis. This will include a summary of opportunities and constraints on a citywide basis, including but not limited to access to services and infrastructure. Potential equity concerns and strategies for mitigating them should also be included. PP 25-0002 ATTACH 2/PAGE 11 OF 15 Rezoning for Housing Scope of Work Page 12 5.0 Analysis of Focus Area Alternatives Based on the findings in the Rezoning Opportunities and Constraints report, the City will select areas of the City to focus on for zoning alternative scenarios. The Consultant will create a report analyzing alternatives for each focus area, of which there will likely be four or five. 5.1 Analysis of Focus Areas The draft Report will include, for each Focus Area: • A description of the area’s history. • An overview of existing site conditions in the area. This will include existing land uses, urban form, and natural features. • An outline of each area’s relationship to existing City plans. This will include the Comprehensive Plan (2013), Neighborhood Plans, Transportation System Plan (1997), Capital Improvement Plan (2025), and Parks Plan 2040. • An outline of potential development constraints, such as the presence of wetlands or steep slopes, or lack of infrastructure capacity. • An overview of existing zoning, including an analysis of existing barriers to housing development, and an analysis of unmet density potential. • An evaluation of traffic impacts consistent with the Transportation Planning Rule. Products/Deliverables: • Drafts of the Rezoning Opportunities and Constraints Summary Map and Paper • Presentation materials 5.2 Identify Zoning Concepts to Increase Density The draft Focus Area Alternatives report will include density scenarios for each Focus Area. The Consultant will include as part of the report two to three density scenarios for each area that will include: • An analysis of the potential number of units that could be newly permissible under each scenario. • An analysis of the potential impact on infrastructure and neighborhood livability. • An analysis of distribution of amenities such as transit, parks, and schools. • Renderings that illustrate what the mass and bulk of potential buildings might look like within the context of the greater neighborhood. Products/Deliverables: • Zoning Concepts • Renderings • Presentation materials 5.3 Draft Recommendations PP 25-0002 ATTACH 2/PAGE 12 OF 15 Rezoning for Housing Scope of Work Page 13 The draft Focus Area Alternatives will include conceptual level zoning recommendations. As part of the report, the Consultant will draft initial recommendations that will include: • An outline of the recommended strategy for each Focus Area, including an explanation of why that strategy was chosen based on previous background and research. • A recommended approach to complete the recommended rezonings, including timing. Products/Deliverables: • Initial Recommendations • Presentation materials for recommendations 6.0 Zoning and Comprehensive Plan Amendments After review of the findings and recommendations of the Final Focus Area Alternatives Report with comments received from the TAC and public, the Consultant and staff will prepare draft zoning map amendments, Comprehensive Plan amendments, and CDC amendments if required. 6.1 Draft Zoning Map and/or Code Amendments The amendments will be presented to City Council, the TAC, the PC (at work sessions), and to the public for review and comment, as determined by the Public Involvement Strategy. Following revisions of the draft amendments based on the comments and feedback received, the project team will refine and finalize the deliverable as described below. Products/Deliverables: • Draft zoning map amendments, CDC amendments (if required), exhibits, and submittal package. • Presentation materials to explain draft to TAC and the public 6.2 Draft Comprehensive Plan and/or Comprehensive Plan Map Amendments The Comprehensive Plan or Comprehensive Plan Map may need to be amended to support the proposed zoning map amendments. The Consultant and staff will identify necessary amendments and prepare a draft. The amendments will be presented to City Council, the TAC, the PC (at work sessions), and to the public for review and comment, as determined by the Public Involvement Strategy. Following revisions of the draft amendments based on the comments and feedback received, the project team will refine and finalize the deliverable as described below. Products/Deliverables: • Draft Comprehensive Plan amendments, exhibits, and submittal package. • Presentation materials to explain draft to TAC and the public 6.3 Finalize Zoning Map, Comprehensive Plan, and CDC Amendments Staff will prepare final draft code amendment documents supplemented with necessary exhibits, and PP 25-0002 ATTACH 2/PAGE 13 OF 15 Rezoning for Housing Scope of Work Page 14 assembled into a format that will allow it to be submitted for public hearings with the Planning Commission and, ultimately, City Council, for those bodies’ review and consideration. The final zoning map amendment document will show the proposed updated zoning designations on the zoning map. The final Comprehensive Plan and CDC amendment documents will be delivered in double underline/strikeout (showing new and deleted text) to indicate changes to the existing code language. Staff will schedule and provide notice and agenda for hearings to adopt the code amendments. The Consultant will coordinate with staff on hearing arrangements and creating presentations for the PC and City Council hearings. Products/Deliverables: • Final zoning map amendments, Comprehensive Plan amendments, and CDC amendments (if required), ordinance, and exhibits submittal package • Revised presentation materials for PC and City Council Hearings Work Schedule and Budget: PROJECT MILESTONE DATE DUE 1 Project Kick-Off Draft Public Involvement Strategy January 2026 March 2026 2 Rezoning Background Report April 2026 3 Rezoning Opportunities and Constraints Summary Map and Paper July 2026 4 Draft and Final Focus Area Alternatives Report First Draft of Report Second Draft of Report Final Draft September 2026 November 2026 January 2027 5 Draft Zoning Map, Comprehensive Plan, and CDC (if required) Amendments April 2027 6 Adopt Zoning Map, Comprehensive Plan, and CDC (if required) Amendments September 2027 Task #0: Consultant Selection Timeline: October – December 2025 Estimated Consultant Cost: $0 (Planning Staff) Task #1: Project Kick-Off: Draft Public Involvement Strategy PP 25-0002 ATTACH 2/PAGE 14 OF 15 Rezoning for Housing Scope of Work Page 15 Timeline: January – March 2026 Estimated Consultant Cost: $15,000 Task #2: Rezoning Background Report Timeline: January – April 2026 Estimated Consultant Cost: $30,000 Task #3: Rezoning Opportunities and Constraints Report Timeline: April – July 2026 Estimated Consultant Cost: $35,000 Task #4: Focus Area Alternatives Report Timeline: July 2026 – January 2027 Estimated Consultant Cost: $70,000 Task #5: Draft Zoning Map, Comprehensive Plan, and CDC (if required) Amendments Timeline: January – April 2027 Estimated Consultant Cost: $40,000 Task #6: Adopt Zoning Map, Comprehensive Plan, and CDC (if required) Amendments Timeline: April – September 2027 Estimated Consultant Cost: $20,000 Budget Total: $210,000 PP 25-0002 ATTACH 2/PAGE 15 OF 15