HomeMy WebLinkAboutAgenda Item - 2026-02-17 - Number 07.1 - ORD 2964, Home Occupation Code Amendments 7.1
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Subject: Findings for Ordinance 2964, Home Occupation Code Amendments (LU 25-0002)
Meeting Date: February 17, 2026 Staff Member: Michael McNamee, Associate Planner
Report Date: February 6, 2026 Department: Community Development
Action Required Advisory Board/Commission Recommendation
❑X Motion ❑X Approval
❑ Public Hearing ❑ Denial
❑X Ordinance ❑ None Forwarded
❑ Resolution ❑ Not Applicable
❑ Information Only Comments: The Council held an initial public hearing
❑ Council Direction on January 20, 2026. At a continuation of the public
❑ Consent Agenda hearing on February 3, 2026 the Council tentatively
approved the proposed Community Development
Code amendments, with modifications.
Staff Recommendation: Enact Ordinance 2964, as modified.
Recommended Language for Motion: Move to enact Ordinance 2964 and adopt findings for
LU 25-0002.
Project/ Issue Relates To: Adoption of findings and enaction of Ordinance 2964 (LU 25-
0002), amending the Community Development Code to update the use-specific standards for
home occupations and create regulations for urban agriculture.
❑Council Goals/Priorities ❑Comprehensive Plan ❑X Not Applicable
EXECUTIVE SUMMARY
On January 20, 2026, the City Council conducted a public hearing on LU 25-0002 (Ordinance
2964), a proposal to amend the Community Development Code to replace existing subjective
home occupation standards with clearer, more measurable language and create a new use
category for urban agriculture. The Council's deliberation during the hearing was continued to
February 3, 2026, at which point they tentatively approved the proposed amendments, with
modifications.
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The attached ordinance and findings reflect the Council's direction to approve the Code
Amendments as modified in the draft dated February 4, 2026.
RECOMMENDATION
Enact Ordinance 2964, as modified, and adopt findings for LU 25-0002.
EXHIBITS
A. Draft Ordinance
Ordinance 2964, draft February 4, 2026 (supersedes January 9, 2026 version)
Attachment 1: City Council Findings
Attachment 2: Community Development Code Amendments, draft
February 4, 2026 (supersedes December 3, 2025 version)
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EXHIBIT A
ORDINANCE 2964
AN ORDINANCE OF THE LAKE OSWEGO CITY COUNCIL AMENDING LOC CHAPTER 50
(COMMUNITY DEVELOPMENT CODE) FOR THE PURPOSE OF AMENDING SPECIFIC USE
REQUIREMENTS FOR HOME OCCUPATIONS AND ADDING A NEW LAND USE CATEGORY CALLED
URBAN AGRICULTURE; AND, ADOPTING FINDINGS (LU 25-0002).
WHEREAS, notice of the public hearing for consideration of this Ordinance was duly given in the
manner required by law; and
WHEREAS, on November 24, 2025, the Planning Commission conducted a public hearing to
consider a City-initiated proposal to amend the Community Development Code to establish
clearer and more objective standards for home occupations, at which the staff report,testimony,
and evidence were received and considered; and
WHEREAS, the Planning Commission has recommended that LU 25-0002, with Planning
Commission recommended Community Development Code Amendments dated October 17,
2025, be approved by the City Council; and
WHEREAS, public hearings on LU 25-0002 were held before the City Council of the City of Lake
Oswego on January 20, 2026 and February 3, 2026, at which the staff report, testimony, and
evidence were received and considered; and
WHEREAS, the Council finds that the Community Development Code should be amended to
replace existing ambiguous language regulating home occupations with clearer and more
objective standards; and
WHEREAS, the Council finds that the Community Development Code should be amended to
create a new use category to be called Urban Agriculture, and that use-specific standards should
be designated for that use;
The City of Lake Oswego ordains as follows:
Section 1. The City Council hereby adopts the Findings and Conclusions (LU 25-0002), attached
as Attachment 1.
Section 2. The Lake Oswego Code, Chapter 50 (Community Development Code) is hereby
amended by deleting the text shown by strikethrough type and adding new text shown
underlined type, in Attachment 2. (Sections or subsections within LOC Chapter 50 that are
omitted in Attachment 2, and not marked for deletion or addition, are neither amended nor
deleted by this Ordinance.)
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
Ordinance 2964 (LU 25-0002) PAGE 1 OF 2
EXHIBIT A
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 meeting of the City Council of the City of Lake Oswego held on the 17th day of
February, 2026.
AYES:
NOES:
ABSTAIN:
ABSENT:
Joseph M. Buck, Mayor
Dated:
ATTEST:
Laura) Hawkins, City Recorder
APPROVED AS TO FORM:
Erica Tatoian, Special Counsel
Ordinance 2964 (LU 25-0002) PAGE 2 OF 2
DRAFT: 02/06/2026 ATTACHMENT 1
LU 25-0002
(Ordinance 2964)
BEFORE THE CITY COUNCIL
2
3 OF THE CITY OF LAKE OSWEGO
4
5
AMENDMENTS TO THE COMMUNITY LU 25-0002
DEVELOPMENT CODE, LOC 50.03.002 USE CITY OF LAKE OSWEGO
TABLE, LOC 50.03.004 ACCESSORY STRUCTURES FINDINGS AND CONCLUSIONS
AND USES, LOC 50.07.005 CONDITIONAL USE
PERMITS, AND LOC 50.10.003 DEFINITIONS;
AND ADOPTING ORDINANCE 2964.
6
7 NATURE OF PROCEEDINGS
8
9 This matter came before the Lake Oswego City Council on the recommendation of the
10 Planning Commission for legislative amendments to the Community Development Code (CDC)
11 for the purpose of replacing existing subjective home occupation standards with more
12 objective, measurable standards that can be easily understood by home occupation business
13 applicants and neighbors and to create a new land use category to be called Urban Agriculture.
14 The proposed amendments are to:
15
LOC 50.003.002 Amend the land use table for residential zones to
allow "Urban Agriculture" as a conditional use in the
R-10 and R-15 zoning districts.
LOC 50.003.004.1.b.ii Amend specific use standards for home occupations.
Remove subcriterion (1), which is subjective. Create
classification system for home occupations. Add new
specific use standards that are more objective and
measurable to replace subcriterion (1).
LOC 50.003.004.1.b.vii Add Subsection vii, specific use standards for Urban
Agriculture.
LOC 50.07.005 Amend the Intent and Purpose section to clarify that
Urban Agriculture businesses that were in place
prior to Ordinance 2964 are not required to obtain a
conditional use to continue operating.
LOC 50.10.003 Amend the Definition of Terms to add a definition
for Urban Agriculture.
16
17
Ordinance 2964 (LU 25-0002) ATTACHMENT 1/Page 1 of 3
DRAFT: 02/06/2026
1 HEARINGS
2
3 The Planning Commission held a public hearing and considered this application at its
4 meeting on November 24, 2025. The Commission adopted its Findings, Conclusion and Order
5 recommending approval of LU 25-0002 on December 8, 2025.
6 The City Council held a public hearing and considered the Commission's recommendation
7 at its meetings on January 20 and February 3, 2026.
8
9 CRITERIA AND STANDARDS
10
11 A. City of Lake Oswego Comprehensive Plan
12 Land Use Planning Policy C-4
13 Complete Neighborhoods & Housing Policy C-6
14 Economic Vitality Policies A-3 and A-10
15 Community Health & Public Safety:
16 Public Safety, Police and Fire Protection Policy 4
17 Sound Quality Policy 1
18 Access to Local Food Policy 3
19 Open Spaces & Natural Areas, Air Resources Quality (Goal 6) Policy 5
20
21 B. Neighborhood Plans
22 Glenmorrie: Housing Policies 6 and 7
23 Lake Forest: Air, Water, and Land Resources: Sound Quality Policy 1
24 Economic Development and Commercial Lands Policy 5
25 Housing/Residential Land Use Policies 5 and 6
26 Waluga: Economic Development Policies 10 and 11
27
28 C. City of Lake Oswego Community Development Code
29 LOC 50.07.003.16.a Legislative Decisions Defined
30 LOC 50.07.003.16.c Required Notice to DLCD
31 LOC 50.07.003.16.d Planning Commission Recommendation Required
32 LOC 50.07.003.16.e City Council Review and Decision
33
34 FINDINGS AND REASONS
35 The Council incorporates the Planning Commission Staff Report dated November 14, 2025
36 (Exhibit D-1), with all exhibits, and the Findings and Conclusions in the Commission's December
Ordinance 2964 (LU 25-0002) ATTACHMENT 1/Page 2 of 3
DRAFT: 02/06/2026
1 8, 2025 Findings, Conclusions and Order, for LU 25-0002, as support for the Council's decision.
2 Following are the supplemental findings and conclusions of the Council:
3
4 1. Use of Public Streets. The Council expressed a desire to mitigate the impact of home
5 occupations on adjacent public streets. As such, they concluded that a new standard
6 should be added to the use-specific standards for home occupations, as follows:
7 The home occupation shall not create a pattern of parking or queuing that is
8 visibly inconsistent with surrounding residential uses.
9 This addition is reflected in the draft code amendments dated February 4, 2026 in
10 Attachment 2 to Ord. 2964.
ii 2. Outdoor Activity. The Council considered two options for regulating outdoor
12 activities related to home occupations: Option 1 would permit specifically defined
13 outdoor activity and provide parameters for how and when that activity can take
14 place, and Option 2 would ban outdoor activity. The Council selected Option 1,
15 which is included in the draft code amendments dated February 4, 2026.
16 3. Amplified Sound. The Council expressed concerns about the impact of noise
17 generated by home occupations on surrounding properties, in particular associated
18 with outdoor activity. The Council concluded that a criterion should be added to the
19 regulations for outdoor activity banning the use of any amplified sound. This change
20 is also included in the draft code amendments dated February 4, 2026.
21 CONCLUSION
22 The Council concludes that LU 25-0002/Ord. 2964, as modified in the draft dated
23 February 4, 2026, complies with all applicable criteria and should be approved.
24
Ordinance 2964 (LU 25-0002) ATTACHMENT 1/Page 3 of 3
Draft 02/04/2026
ATTACHMENT 2
LU 25-0002
LOC 50.03.002 Use Table (Ordinance 2964)
///
2. Residential Use Table.
TABLE 50.03.002-1:RESIDENTIAL DISTRICTS USE TABLE
P=Permitted Use I Blank=Not Permitted I C=Conditional Use I A=Accessory Use
[x]Table notes located at the end of the table
Use Use Type Residential Use-Specific
Category Standards
R-15 R-10 R-7.5 R-6 R-5 R-DD R-W R-3[3] R-2 R-0[3][4]
ACCESSORY USES
Accessory Community A A A A A A A A A A §50.03.003.6.j
Uses garden
Urban C C §50.03.004.1.b.vii
agriculture
Home A A A A A A A A A A §50.03.004.1.b.ii
occupation
Short-term A A A A A A A A A A §50.03.004.1.b.ii
rental lodging
Large animals A A §50.03.004.1.b.iii
kept for owner's
personal use
Small animals A A A A A A A A A A
kept for owner's
personal use[2]
Accessory A A A A A A A A A A §50.03.004.1.b.vi
dwelling unit
///
Ordinance 2964 (LU 25-0002) ATTACHMENT 2/PAGE 1 OF 4
Draft 02/04/2026
LOC 50.03.004 Accessory Structures and Uses
1. Accessory Uses
a. General Standards
///
b. Standards for Specific Uses
///
ii. Home Occupation.There are three types of home occupations:
Type A.A home occupation where a portion of the home is used to operate a business but no
customers come to the site. A Type A home occupation may also involve a home that is used as
a business address, but is not used for business operations.
Type B. A home occupation where a portion of the home is used to operate a business and
customers may come to the site.
Type C. A short-term rental, as defined in LOC 50.10.003.2.
A Type A,Type B, or Type C home occupation may be conducted where allowed by
other provisions of this Code if the following conditions are continuously met
(1) A current and valid business license is maintained.
(2) No persons other than family members who reside at the dwelling may be employed
or otherwise work in the home occupation, except persons performing housekeeping,
yard maintenance, or other domestic services for the dwelling where the business
occurs.
(3)No outdoor storage of goods or materials.
(4)The City's public nuisance rules (LOC Art. 34.08, LOC Art. 34.10) apply to home
occupations, and any complaints of a public nuisance related to a home occupation shall
be treated the same as any other public nuisance.
(5) No more than 25%of the aggregate floor area on the lot is devoted to nonresidential
use, except that an entire dwelling unit or portion thereof may be used for short-term
rental lodging; an accessory structure may be used, provided the provisions of this
subsection are met.
(6) Marijuana facilities, psilocybin service centers, and psilocybin production are
prohibited.
(7) A Type B home occupation shall meet the following additional standards:
(a)The home occupation shall not create a pattern of parking or queuing that is
visibly inconsistent with surrounding residential uses(b) Outdoor activities
involving clients or customers are not permitted, except limited outdoor activity
as provided below:
Ordinance 2964 (LU 25-0002) ATTACHMENT 2/PAGE 2 OF 4
Draft 02/04/2026
(i) Instructional or demonstration uses directly led by the home
occupation operator such as art, gardening, or yoga classes, limited to
five clients or participants at one time are permitted. No more than two
outdoor sessions are permitted per day, and no more than six outdoor
sessions are permitted per week. Outdoor business activities may only
occur between 9:00 am and 7:00 pm. No outdoor business activity is
permitted on Sundays or public holidays.
(ii) Use of outdoor space for events, rentals, parties,weddings,
performances, markets, or other commercial gatherings is prohibited.
(iii) Use of devices that amplify noise, including but not limited to a
speaker of any kind, is prohibited.
(8)Type C Home Occupations, short-term rentals, shall meet the following additional
standards:
(a)A person who owns a lot containing a short-term rental (primary or
secondary dwelling unit) must maintain their primary residence on the lot. The
owner is not required to be on the lot when the dwelling is rented.
(b) No other commercial uses are allowed in conjunction with or accessory to a
short-term rental.The short-term rental shall not be marketed or used for
group events such as weddings, classes, or similar events, for example.
The following uses are exempt from the regulations of this section, except that a
business license is still required:
(a) Registered or certified family child care homes that also meet the State's
requirements of ORS 329A; and
(b) Licensed adult foster homes that also meet the State's requirements of OAR
309-040-0330.
///
///
vii. Urban Agriculture. Urban agriculture is permitted with a Conditional Use Permit.
(1) The property must have a minimum lot size of one acre.
(2) The urban agriculture use shall have a maximum area of 20,000 square feet or 35
percent of the area of the lot,whichever is less.The maximum area includes the
area under cultivation,the area covered by any structures associated with food
and/or beverage production,the compost pile, or any other area associated with
the activities of the agriculture use.
(3) On-site sales and serving are allowed, subject to the following additional standards:
(a) Sales and serving are allowed only between 7:00 am and 8:00 pm.
(b) Sales and serving are allowed up to 45 days in each calendar year.
Ordinance 2964 (LU 25-0002) ATTACHMENT 2/PAGE 3 OF 4
Draft 02/04/2026
(c) A maximum number of clients or customers permitted on the property at
the same time will be determined as part of the conditional use approval.
(4) Use of motorized equipment is only allowed between 7:00 am and 8:00 pm.
///
LOC 50.07.005 Conditional Use Permits.
1. Intent and Purpose; Effect of Use Under Prior Code Which is Conditional Under Current Code.
a. A conditional use is an activity which is permitted in a zone but which, because of some
characteristics which are not entirely compatible with other uses allowed in the zone, cannot be
permitted outright.A public hearing and review of the proposed conditional use by the hearing
body and the imposition of conditions, if necessary, is intended to ensure that the use proposed
will be as compatible as practical with surrounding uses, and is in conformance with the
purposes and requirements of the district, if any, and with other applicable criteria and
standards of the City.
b. An alteration in a use which was classified by the prior zoning code as a permitted use that is by
this Code classified as a conditional use shall conform to the requirements of this Code.
c. A use that existed before December 16, 1982, which is permitted only upon receiving a
conditional use permit under the terms of this Code, and an urban agriculture use that existed
before March 19, 2026, is not a nonconforming use, but is without further action to be
considered a conforming use.
///
LOC 50.10.003 Definitions
2. Definition of Terms.
///
Urban Agriculture
A site where food and/or plants are grown to be sold, including crops that will be used to
produce alcoholic or other beverages,that does not qualify as a Home Occupation per LOC
50.03.004.b.ii.An area for serving or tasting can be included.The food and/or plants may be
sold directly to consumers, restaurants, stores, or other buyers, or at markets. Heavy
manufacturing is not allowed as part of this use.
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Ordinance 2964 (LU 25-0002) ATTACHMENT 2/PAGE 4 OF 4