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HomeMy WebLinkAboutAgenda Item - 2026-03-09 - Number 06.1 - Staff Memo- PC 2026 Work Plan 02-26-26 PCWS-2 03-09-26 503-675-3984 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY TO: Planning Commission/Commission for Citizen Involvement FROM: Erik Olson, Long Range Planning Manager SUBJECT: Planning Commission / Commission for Citizen Involvement 2026 Work Plan Review - Work Session #2 DATE: February 26, 2026 MEETING DATE: March 9, 2026 ACTION Review and provide direction on a draft work plan to support 2026 City Council Goals and Initiatives. EXECUTIVE SUMMARY During a work session on January 12, the Planning Commission / Commission for Citizen Involvement (Commission) reviewed and provided direction on their top three accomplishments from 2025 as well as the top three themes or ideas that the y would like City Council to consider in their 2026 goal setting session . The staff-recommended work plan, below, reflects the outcome of that discussion. STATUS OF 2025 WORK PLAN The Commission adopted the following work plan for 2025 recognizing that some of this work would extend beyond 2025 as part of a multiyear work plan. The status of each project is provided: 1. Foothills District Plan Update (PP 25-0005): Commence work on a multi-year community engagement process to adopt an updated Foothills District Framework Plan (Plan), along with associated amendments to the Comprehensive Plan, Community Development Code (CDC), or other City codes as required to implement the Plan, by December 31, 2027. Status: In progress. The Commission commenced work and is on track to successfully implement the 2025 Council initiative to update the Foothills District Framework Plan. Most recently, the Commission held a work session on January 26, 2026, that included a presentation with a high-level overview of existing conditions in the Foothills neighborhood and an overview of opportunities and constraints for the City’s efforts to Page 2 of 6 update the Foothills District Framework Plan. The Commission’s input has been considered alongside input from the public, stakeholder focus groups, City Council, and a Foothills Community Advisory Committee comprised of community representatives with relevant skills and expertise. The Commission will have another opportunity to weigh in on the overall project vision and goals at a forthcoming work session on March 23. Initial conceptual plan alternatives are tentatively scheduled to be discussed with the Commission in May. The updated Plan is scheduled for Council adoption in early 2027, while subsequent code amendments to implement the Plan are scheduled to be adopted by the end of 2027. 2. Tree Regulation Amendments (PP 24-0006): Adopt amendments to the Tree Code and CDC pursuant to the recommendations in the Urban and Community Forestry Plan (UCFP) by Winter 2026. Status: In progress. The Commission continued to contribute to the City’s project to update its tree regulations in the Tree Code and CDC to align with the recommendations in the UCFP in 2025. The Commission held a recent work session on December 8, 2025, to provide direction on preliminary regulatory concepts for updating the City’s tree regulations. The Commission’s work has supplemented the work of the ad hoc Tree Task Force, which has met four times throughout the course of the project thus far. A joint work session with the Development Review Commission is scheduled for the Commission’s April 13 meeting to review draft amendments to the Tree Code and CDC. A public hearing is subsequently scheduled to be held with the Commission on June 8, with Council adoption now expected in September. 3. Code Audit and Amendments (PP 25-0002): Undertake a comprehensive audit of the CDC to identify barriers to housing production and economic development, and implement code amendments to address those barriers, by December 31, 2027. Status: In progress. The Commission began to discuss a new project in 2025 to conduct a comprehensive review of the CDC to identify and address barriers to housing production and economic development. On February 3, 2026, City Council approved an intergovernmental agreement with Metro to receive a $306,000 Metro 2040 Planning and Development grant to hire a consultant for the project. Subsequently, staff issued a Request for Proposals for planning consultant services to conduct the work on February 11, with a contract expected to be executed with a consultant team in May. The project is anticipated to be finished by August 2027. 4. Rezoning for Housing (PP 25-0001): Rezone commercial, mixed-use, or other areas not exclusively zoned for residential use to better accommodate residential uses, especially multi-family housing, by December 31, 2026. Status: In progress. In addition, the Commission began to discuss another new project in 2025 to rezone mixed-use, commercial, and non-residential areas of Lake Oswego to support the development of more housing units. The City is currently finalizing negotiations on a contract to receive a DLCD Housing Planning Assistance grant to hire Page 3 of 6 Cascadia Partners as the project consultant. The project is now scheduled to be completed by September 2027. 5. Low-Income Rental Housing Tax Exemption (PP 25-0003): Consider the adoption of a program to administer this tax exemption for any entity that provides income-restricted rental housing, including both nonprofits and for-profit developers, by December 31, 2025. Status: In progress. Though this work was initially scheduled to be adopted by the end of 2025, the program is now tentatively expected to be adopted sometime in 2026. 6. Fair Housing Policy and Education (LU 25-0001): Amend the Comprehensive Plan to explicitly make Affirmatively Furthering Fair Housing a Housing Policy by December 31, 2025; Commence work to provide additional education related to fair housing laws on an ongoing basis through 2028. Status: Complete. In 2025, the Commission shepherded the adoption of Comprehensive Plan amendments to explicitly adopt Affirmatively Further Fair Housing as a City policy. Though the policy-related recommendations in the HPS are now complete, staff notes that the HPS also tasks the City with pursuing an ongoing educational campaign related to fair housing through 2028. 7. Annual CDC Amendments: Address any other changes in state law, code maintenance, and minor policy amendments through the adoption of annual amendments to the CDC. Status: In progress. Though this work was initially scheduled to commence in 2025, it is now tentatively expected to be initiated in 2026. 8. Home Occupation Standards (LU 25-0002): Amend the use-specific standards within the CDC that apply to home occupations to make them clearer and more objective and ensure that they can be effectively enforced by Code Enforcement staff. Status: Complete. Pursuant to direction from City Council, the Commission engaged in a project to replace the existing subjective Home Occupation standards with clear, measurable language that is easier for applicants, neighbors, and staff to understand. The Commission held a public hearing on November 24, 2025 and recommended tentative approval of the proposed amendments, with modifications. City Council conducted a public hearing on the proposal on January 20, 2026, which was continued on February 3, where they recommended approval of the proposed amendments, with additional modifications. The Council adopted Findings, Conclusions, and Order on February 17. OTHER WORK IN 2025 In addition to the above projects/initiatives, in 2025 the Planning Commission completed the following work: • 4000 Kruse Way Place Rezoning (LU 25-0029): The Commission considered a request to amend the Zoning Map designation at 4000 Kruse Way Place from OC (Office Campus) to Page 4 of 6 R-0 (high-density residential) and amend the Comprehensive Plan Map designation from OC/R-3 to OC/R-0 to better facilitate multifamily residential development at the site. The Commission held a public hearing on October 27, 2025, which was continued on December 8, where they voted unanimously to tentatively recommend approval. The Commission adopted findings on January 12, 2026. City Council then conducted a public hearing on the proposed amendments on February 3, where they also recommended approval. Council findings were adopted on February 17. • 2024 Annual Community Development Code (CDC) Amendments (LU 24-0029): In spring of 2025, the Commission completed their annual work to support the City’s continuous process improvement efforts in reviewing amendments to the Community Development Code (CDC) and recommending code changes to City Council consistent with the Comprehensive Plan. The Commission held a public hearing on March 10 and recommended tentative approval of the proposed amendments. City Council conducted a public hearing on April 15 and the amendments were formally adopted on May 6. • Mandatory Adjustments (Senate Bill 1537) (PP 24-0004): In 2025, the Commission received an update from staff that the City’s application for an exemption to the mandatory adjustment provisions of Senate Bill 1537 was approved by the state Housing Accountability and Production Office, with conditions. The Commission also received an update from staff on the 2025 Oregon Legislative Session at their meeting on April 28, 2025. The 2025 Oregon Legislative Session included the passing of several bills that will require City action for compliance in the coming years. FUTURE WORKLOAD CONSIDERATIONS Commission work plans have workload implications for staff, Commissioners, and community volunteers. When setting work plans, the Commission should consider existing workload along with the City Council’s goals, including Council initiatives that may be assigned to the Commission and staff in the future, while ensuring sufficient time and opportunity for public participation. The Commission should also take into consideration any standing work program tasks, such as the Annual Community Development Code Amendments, as well as tasks that the City has previously committed to completing – such as the various state-mandated actions required pursuant to the recently-adopted HPS. Planning Department Capacity A key staff workload indicator is the staff labor required to prepare and process the proposals that come before the Commission. New policy initiatives can require as little as 80 hours of combined Planning staff time for relatively minor policy/code amendments, to a sustained commitment of 500 hours or more annually (over multiple years) for major initiatives such as the City’s current efforts to update the Foothills District Plan. These figures do not include staff time from other City departments. As of February 2026, the Community Development Department’s Long Range Planning Division consists of 1 Planning Manager, 2 Associate Planners, and Administrative Staff. The Planning Page 5 of 6 Commission is also supported by staff from the Development Review Division, the Engineering Department, the City Manager’s Office, the City Attorney’s Office, and the Community Development Director. All of these staff have other responsibilities with the City. The above-mentioned Planning staff are also responsible for long range planning projects and programs that do not come before the Planning Commission. These include annexations, the historic preservation program, neighborhood association funding and support, natural resource planning, capital improvement program support, and maintenance of non-land use codes such as the Tree Code, Sign Code, and Building Code (including Demolitions), among others. PROPOSED WORK PLAN The 2026 Boards and Commissions Summit was held on January 15, 2026. The event was facilitated as a community "Think Tank," or interactive workshop, designed to generate creative, outside-the-box ideas to enhance Lake Oswego ahead of the Council's 2026 Goal Setting On February 21, 2026, the City Council met to discuss the major goals and projects that the City will undertake in the coming year based on the results of the Summit. In all, Council agreed on 21 major initiatives under 8 different major goals. Council is scheduled to adopt the 2026 Council Goals and Initiatives on March 3, with draft materials indicating that the following goals and initiatives will be included in the City’s 2026 program: • Council Goal: Plan for change and growth, with a focus on enhancing the community’s quality of life and sense of place. o Associated Council Initiative: Begin a comprehensive review of the Development Code to identify barriers to housing production and economic development , and implement code amendments to address these barriers. o Associated Council Initiative: Begin implementation of the near-term strategies in the Housing Production Strategy Report, including rezoning commercial and mixed-use properties and evaluating a low-income rental tax exemption program. o Council Goal: Support business investment and job creation in Lake Oswego. o Associated Council Initiative: Continue the update of the Foothills District Plan. o Council Goal: Combat climate change and strengthen the community’s resilience to climate impacts. o Associated Council Initiative: Adopt an update to City tree regulations. The work plan outlined below has been proposed to support the above-cited Council goals and initiatives relevant to the Commission, as well as to respond to state mandates that the City is required to comply with by law. The following work has been prioritized pursuant to 2026 City Council goals: 1. Foothills District Plan Update o Continue work on a multi-year community engagement process to adopt an updated Foothills District Framework Plan, along with associated amendments to the Comprehensive Plan, CDC, or other City codes as required to implement the Plan, by Page 6 of 6 December 31, 2027. 2. Tree Code Update (PP 24-0006) o Adopt CDC amendments pursuant to the recommendations in the UCFP and for consistency with the City’s efforts to update the Tree Code by Fall 2026. 3. Code Audit and Amendments (PP 25-0002) o Undertake a comprehensive audit of the CDC to identify barriers to housing production and economic development, and implement code amendments to address those barriers, by December 31, 2027. 4. Rezoning for Housing (PP 25-0001) o Rezone commercial, mixed-use, or other areas not exclusively zoned for residential use to better accommodate residential uses, especially multi-family housing, by Fall 2027. 5. Low-Income Rental Housing Tax Exemption (PP 25-0003) o Consider the adoption of a program to administer this tax exemption for any entity that provides income-restricted rental housing, including both nonprofits and for- profit developers, by December 31, 2026. The following project is proposed as discretionary and is subject to direction from City Council and the Commission: 6. Ongoing CDC Amendments o Address any other changes in state law, code maintenance, and minor policy amendments through the adoption of ongoing amendments to the CDC. RECOMMENDATION Accept public comment and finalize the Commission’s proposed 2026 work plan to support relevant 2026 City Council Goals and Initiatives. ATTACHMENTS 1. 2026 Planning Commission Forecast, 02/26/2026 February 26, 2026 Page 1 of 1 TENTATIVE – SUBJECT TO CHANGE Planning Commission Meeting Forecast 2026 Key: W = Work Session; SS = Study Session; H/PH = Public Hearing; F = Findings; FCO = Findings, Conclusions and Order; CC = City Council; DRC = Development Review Commission; WP= Work Plan Review per City Council Goals; S = Boards and Commissions Summit; CCI = Commission for Citizen Involvement Agenda Item; T= Tour; U = Project Update; L = Update on 2025 State Legislative Session; 9 = Cancelled. Lower-case ‘w’ and ‘h’ are tentative. Green indicates PC work in progress. Blue indicates City Council milestones. Yellow indicates either “on-hold” or “to-be-determined”. PLANNING COMMISSION PROJECTS TO BE SCHEDULED • Citizen Involvement Guidelines Update (Resume work on PP 19-0006) • Mitigation for Single-Family Dwellings / Duplexes (PP 24-0001) • Flood Hazard Management Code Amendments (LU 24-0037) Projects: Rem=Remote (Virtual/Online Meeting) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12* Rem 26 9 23* Rem 9 23 13 27 11 28* Thurs 8 22 13 27 10 24 14 28 12 26 9 23 14 Code Audit and Amendments for Housing and Business (Evan F. / PP 25-0002) CC-IGA 2/3 cc 3/17 Rezoning for Housing (Michael / PP 25-0001) cc 3/17 Low-Income Rental Housing Tax Exemption (Jessica / PP 25-0003) Home Occupation Standards (Michael / LU 25-0002) CCPH 1/20 CCPH (cont.) 2/3 CC-FCO 2/17 Tree Reg. Amendments (Jessica / PP 24-0006) PC / DRC Notice 5/4 h f ccph 7/21 cc-fco 9/1 ccss 5/5 4000 Kruse Way Place Rezoning (Ellen / LU 25-0029) F CCPH 2/3 CC-FCO 2/17 Foothills District Plan Update (Erik / PP 25-0005) CCSS 1/6 W-4 ccss 3/17 ccss 4/21 w-6 W-5 Housing Needs & Production (Erik / PP 22-0005 / ongoing) CC 2/17 U Other CCI/PC Items WP-1 WP-2 S 1/15 TOTAL (Includes Findings) 2 1 0 1 1 1 1 0 1 0 1 1