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HomeMy WebLinkAboutAgenda Item - 2026-02-17 - Number 05.2 - ORD 2971, 4000 Kruse Way Place Rezoning 5.2 E 0 COUNCIL REPORT pi4.. V -w 0 GREGO\--" Subject: Findings for Ordinance 2971, 4000 Kruse Way Place Rezoning (LU 25-0029) Meeting Date: February 17, 2026 Staff Member: Ellen Davis, Senior Planner Report Date: February 6, 2026 Department: Planning and Building Services Action Required Advisory Board/Commission Recommendation ❑ Motion ❑X Approval ❑ Public Hearing ❑ Denial ❑X Ordinance ❑ None Forwarded ❑ Resolution ❑ Not Applicable ❑ Information Only Comments: The Council held a public hearing on ❑ Council Direction February 3, 2026 and tentatively approved the ❑X Consent Agenda proposed Map Amendments. Staff Recommendation: Enact Ordinance 2971. Recommended Language for Motion: Move to enact Ordinance 2971 and adopt findings for LU 25-0029. Project/ Issue Relates To: Adoption of findings and enaction of Ordinance 2971 (LU 25- 0029), amending the Comprehensive Plan Map and Zoning Map for 4000 Kruse Way Place. ❑X Council Goals/Priorities ❑X Comprehensive Plan ❑Not Applicable EXECUTIVE SUMMARY On February 3, 2026, the City Council conducted a public hearing and tentatively approved LU 25-0029 (Ordinance 2971), a proposal to amend the Comprehensive Plan Map designation from OC/R-3 to OC/R-0 and amend the Zoning Map designation from OC to R-0 for properties at 4000 Kruse Way Place. The attached ordinance and findings reflect the Council's direction to approve the proposed Map Amendments. RECOMMENDATION Enact Ordinance 2971 and adopt findings for LU 25-0029. Respect. eI'er Trust. c 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 2 EXHIBITS A. Draft Ordinance Draft Ordinance 2971 Attachment 1: City Council Findings Attachment 2: Proposed Comprehensive Plan Map and Zoning Map Amendments, 10/16/2025 Respect. Excel'enEe. Trust. Service 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY EXHIBIT A ORDINANCE 2971 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO AMENDING THE LAKE OSWEGO COMPREHENSIVE PLAN MAP AND ZONING MAP TO CHANGE THE DESIGNATION FOR A 12.67 ACRE PARCEL FROM A COMPREHENSIVE PLAN DESIGNATION OF OC/R-3 TO OC/R-0 AND FROM A ZONING DESIGNATION OF OC (OFFICE CAMPUS) TO R-0 (HIGH DENSITY RESIDENTIAL) AT 4000 KRUSE WAY PLACE (21E08BA04000; 21E08BA04001; 21E08BA04002)AND ADOPTING FINDINGS (LU 25-0029). WHEREAS, notice of the public hearing for consideration of this Ordinance was duly given in the manner required by law; and WHEREAS, public hearings were held before the Planning Commission on October 27, 2025, and December 8, 2025, at which the staff report, public testimony and other evidence were received and considered; and, WHEREAS, the Planning Commission has recommended that LU 25-0029 be approved by the City Council; and WHEREAS, a public hearing on the Planning Commission recommendation was held by the City Council of the City of Lake Oswego on February 3, 2026, at which the staff report, public testimony and the record of the proceedings before the Planning Commission were received and considered; and WHEREAS, the Council finds that the proposed amendments to the Comprehensive Plan and zoning map from a Comprehensive Plan designation of OC/R-3 to OC/R-0 and from a Zoning designation of OC (Office Campus) to R-0 (high density residential) at 4000 Kruse Way Place (21E08BA04000; 21E08BA04001; 21E08BA04002) is consistent with all applicable Comprehensive Plan policies, Metro Code requirements and Statewide Planning Goals, and Administrative Rules; The City of Lake Oswego ordains as follows: Section 1. The City Council hereby adopts the Findings and Conclusions (LU 25-0029) attached as Attachment A. Section 2. The Comprehensive Plan and Zoning Maps are hereby amended as illustrated on the map in Attachment B from a Comprehensive Plan designation of OC/R-3 to OC/R-0 and from a Zoning designation of OC (Office Campus) to R-0 (high density residential). Section 3. Severability. The provisions of this ordinance are severable. If any portion of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. Section 4. Effective Date. As provided in Section 35C of Chapter VIII of the Lake Oswego Charter, this ordinance shall take effect on the thirtieth day following enactment. Enacted at the regular meeting of the City Council of the City of Lake Oswego held on the 17th day Ordinance 2971—01/13/26 DRAFT LU 25-0029 PAGE 1 OF 2 EXHIBIT A of February 2026. AYES: NOES: ABSTAIN: ABSENT: Joseph M. Buck, Mayor Dated: ATTEST: Laural Hawkins, City Recorder APPROVED AS TO FORM: Erica Tatoian, Special Counsel Ordinance 2971—01/13/26 DRAFT LU 25-0029 PAGE 2 OF 2 ATTACHMENT 1 LU 25-0029 (Ordinance 2971) 1 BEFORE THE CITY COUNCIL 2 OF THE CITY OF LAKE OSWEGO 3 A REQUEST FOR A COMPREHENSIVE PLAN LU 25-0029 MAP AMENDMENT FROM OC/R-3 TO OC/R-0 4 AND ZONING MAP AMENDMENT FROM OC (Kruse Way LLC/Maple Multi Family Land TX, (OFFICE CAMPUS) TO R-0 (HIGH DENSITY LP-John Frnka) 5 RESIDENTIAL) FOR PROPERTY AT 4000 KRUSE WAY PL; ORDINANCE 2971 FINDINGS, CONCLUSIONS & ORDER 6 7 8 NATURE OF PROCEEDINGS 9 This matter came before the City Council on a recommendation from the Planning 10 Commission to approve an application for: 11 1. A Comprehensive Plan Map amendment from OC/R-3 to OC/R-0; and 12 2. A Zoning Map amendment from OC to R-0. 13 The site is located at 4000 Kruse Way Place, Tax references 21E08BA04000, 21E08BA04001 and 14 21E08BA04002. 15 HEARINGS 16 The Planning Commission held a public hearing and considered this matter on October 17 27, 2025. A request for continuance was granted to leave the record open for written testimony 18 only. The Commission held the continued hearing and conducted deliberations on December 8, 19 2025. On January 12, 2026, the Planning Commission adopted findings, conclusions and order 20 recommending approval of LU 25-0029 (Exhibit B-001). The City Council held a public hearing 21 and tentatively approved LU 25-0029 on February 3, 2026. The following exhibits were 22 submitted after the Planning Commission hearing: 23 G Exhibits: Public Comments 24 Exhibit G-524 Anderson 1-30-2026 25 Exhibit G-525 Waluga Neighborhood Association 1-30-2026 26 Ordinance 2971 (LU 25-0029) ATTACHMENT 1/Page 1 of 4 1 CRITERIA AND STANDARDS 2 A. City of Lake Oswego Community Development Code-Procedure [Chapter 501: LOC 50.07.003.1.b Burden of Proof 3 LOC 50.07.003.3 Notice of Public Hearing LOC 50.07.003.4 Hearings before a Hearings Body 4 LOC 50.07.003.5 Conditions of Approval LOC 50.07.003.7 Appeals 5 LOC 50.07.003.15 Major Development 6 B. City of Lake Oswego Comprehensive Plan Policies: 7 Land Use Planning 8 Policies A-1(a-i), A-6, B-2, B-5, B-6, B-7, B-11, D-1, D-7, E-1(a-g), and E-2(b)(i&ii) 9 Community Culture (Civic Engagement) 10 Policies 1, 2, 4 and 5 11 Inspiring Spaces and Places 12 Goal 1: Policy 6, Goal 2: Policy 3 13 Complete Neighborhoods and Housing 14 Policy A-1(a) 15 Economic Vitality 16 Policy A-1 17 Connected Community 18 Policies A-1, A-7, B-1, B-2, B-3, B-5, C-1, C-6, C-7, D-4, F-2, and G-6 19 Community Health and Public Safety 20 Sound Quality, Policy 1 21 Healthy Ecosystems 22 Goal 5 Resources: 2, 3, and 9, Urban Forest and Vegetation: 1, 4, and 8, Air Quality: 3, 23 and 5 24 C. Metro Urban Growth Management Functional Plan 25 Chapter 3.07 Title 6: Centers, Corridors, Station Communities and Main Streets [MC 3.07.640(a-c)] 26 Title 7: Housing Choice [MC 3.07.730(a-c)] Ordinance 2971 (LU 25-0029) ATTACHMENT 1/Page 2 of 4 1 D. Transportation Planning Rule (Chapter 660, Division 12) 2 OAR 660-12-0060, Plan and Land Use Regulation Amendment 3 E. Oregon Statewide Planning Goals 4 Goal 6: Air, Water and Land Resources 5 Goal 10: Housing Goal 12: Transportation 6 F. Waluga Neighborhood Plan 7 Land Use Chapter- Policies 1, 2, and 4 8 Open Spaces and Natural Resources— Policies 1, 2, 4, 5, 7(b) and (c), 9, 11, and 12 9 Economic Development— Policies 7 and 9 Housing— Policy 3 10 Stormwater— Policies 1, 2, 3, and 4 Transportation — Policies 2, 5, and 13 11 FINDINGS AND REASONS 12 13 The City Council incorporates the Planning Commission staff report, dated October 15, 14 2025 (Exhibit D-001), with all exhibits attached thereto, the staff memorandum to the 15 Commission dated December 3, 2025 (Exhibit D-002), and the Commission's January 12, 2026 16 Findings, Conclusions and Order for LU 25-0029 (Exhibit B-001), together with the following 17 supplemental findings of the City Council. If there is any inconsistency between the 18 supplemental findings and the incorporated materials, the supplemental findings control. 19 Following are the supplemental findings of the City Council: 20 1. Comprehensive Plan Land Use Planning Policies E-1(f) and E-2(b)(ii). The 21 Council received testimony that the applicant had not met its burden of proof with respect to 22 the applicable City of Lake Oswego Comprehensive Plan Land Use Planning Policies E-1(f) and E- 23 2(b)(ii). These policies were previously raised at the Planning Commission hearing and are 24 addressed in the Applicant's Narrative (Exhibit F-001) on pages 19-21 and in the Staff Report 25 (Exhibit D-001) on pages 10-11. Public need for housing, related to Policy E-1(f), is also 26 addressed in the Planning Commission Memo (Exhibit D-002) on pages 3-4. The Council concurs with the Commission's findings. Ordinance 2971 (LU 25-0029) ATTACHMENT 1/Page 3 of 4 1 CONCLUSION 2 The City Council concludes that LU 25-0029, as recommended by the Planning 3 Commission, complies with all applicable criteria and should be approved. The Council also 4 concludes that proposed Ordinance 2971, which implements LU 25-0029 consistent with the 5 Planning Commission's recommendation, should be enacted. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Ordinance 2971 (LU 25-0029) ATTACHMENT 1/Page 4 of 4 l rr II3� 984- Proposed Comprehensive Plan Map and Zone Map Change w� U3992 LU 25-0029/Ordinance 2971 ��y 36GPRMP� ADDRESSES EVEN) o l Or �+ OCR-3 �4S4 4,96 / &7, 4 '96 i 746,00 CO o 0FFICEN°4) TL 4000 15000 75-82 5-64 TL 4002ru E R-3 E a 45-54 0 0 o TL 4001 29-36 37-44 Kruse �00� way A 00 03 00 GC z 066 kr�se Q 3 c, m way Attachment 2 04‘''EO,\ �0 Map and Lot# 21 E08BA TL's 4000, 4001, 4002 v o 42 4'03 City of Lake Oswego: oREco?/ mood Comprehensive Plan Map Change: OC/R-3 to OC/R-0 Ga\est s' Zoning Map Change: OC to R-0 N M40 Subject Sites W E �0 S 0 50 100 200 300 400 500 —Feet 10/16/2025 vC3 -