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HomeMy WebLinkAboutAgenda Item - 2026-07-29 PM to E °�'�o e*.N-1 marwetew oRE Goa City of Lake Oswego Economic Development Strategy 2026-2029 December 2025 Introduction and Purpose The 2026-2029 Lake Oswego Economic Development Strategy builds on the successful implementation of the 2022 Economic Development Plan. Three years later, the City of Lake Oswego is working to take the local economy to a higher level of success in the context of current economic conditions and leveraging existing community and business assets, partnerships and resources. The City contracted with Marketek to prepare this Economic Vitality Plan that focuses activities and actions over the next three years on economic prosperity and jobs and generates/increases tax revenues to maintain and support the quality of life Lake Oswego's residents enjoy. To help inform this strategy, in fall 2025 Marketek completed an update of both Retail and Office Market Analyses. Extensive field work, business and broker interviews, observations from economic development (ED) partners and data analysis all contributed to the recommended strategy outlined in this document. In addition, Marketek brings to this assignment best practices and lessons learned from 35 years of hands-on community economic development experience. Background and Goals For many years, the City of Lake Oswego has identified and prioritized business and economic vitality as key building blocks for a healthy and sustainable community. The City's Comprehensive Plan states the Economic Vitality Vision as follows: We are a community where people can live, work, play and meet their daily needs for goods and services. We build upon the intellectual capital of the community to attract new ventures, retain local businesses, and connect to the global economy. We are business friendly and a regional model for employment and mixed-use centers that attract quality jobs. City Council Goals The following 2025 City Council goals provide direction for this updated plan. Selected strategies in italics from the 2022 plan appear below that will continue to contribute to the City's economic development efforts. 1. Support business investment and job creation *Collaborate with Chamber to promote Lake Oswego as a destination for visiting and shopping *Coordinate and cross-promote business and community events 2. Plan for change and growth *Conduct code review to identify and address barriers to housing production and economic development City of Lake Oswego Economic Development Strategy 2026-2029 1 EOf � (4 , mariiueteiiu oRE Goa 3. Combat climate change. Expanding the local job base will help balance the jobs:housing gap, increase opportunities for residents to work locally and reduce long commutes and pollution. Community Input • In the City's 2025 Community Survey 'economic development'was identified as the top priority for the future. • In a 2024 Chamber of Commerce survey of businesses,the top business issues were: Workforce, the Economy and the Sign Code. Economic Development Staffing and Partners In early 2026,the City will hire an Economic Development/Redevelopment Manager who will lead implementation of the strategy. The City will also continue its contracted partnership with the Lake Oswego Chamber of Commerce for specific responsibilities within the plan. While almost every city in Clackamas County has an economic development manager and program, none of them operates without strong support from and collaboration with many economic development partners,the key ones listed below. See Appendix A for a brief overview of their functions. Economic Development Partners/Resources Business Oregon Clackamas County Greater Portland Inc. (GPI) Clackamas Small Business Clackamas Workforce Partnership Oregon Manufacturing Extension Development Center(SBDC) Partnership (OMEP) Oregon Economic Development Mt. Hood Territory Oregon Entrepreneurs Network Association (OEDA) (OEN) Oregon Main Street(OMS) Mt Hood Economic Alliance Oregon Employment Department (OED) City of Lake Oswego Economic Development Strategy 2026-2029 2 0 '�'o marwetew oRE Goa Lake Oswego Economic Overview Local Economies Economic generators in local economies have three broad drivers: 1. Traded sector-export-driven 2. Population driven-commercial centers —_ 3. Visitor driven-downtown, arts, waterfront, history Economic Prosperity Traded sector businesses provide goods and services to customers Population Visitor outside of the region. They export goods and import dollars and are Driven Potential typically part of an industry supply chain, a producer or supplier. Businesses in the traded sector provide the highest economic impact to a community. In Lake Oswego,traded sector companies are concentrated within the SW Employment Area and the Kruse Way corridor. Population-serving commercial businesses provide basic goods and services to residents, e.g., medical care, services, groceries.The economic impact of these businesses is much smaller than those in the traded sector but very important to the local economy and quality of life. Visitor-serving venues and businesses attract or serve visitors to the community, e.g., hotels, restaurants and destination attractions. For Lake Oswego, visitor spending could be substantial in boosting the local small business economy.The economic impact is increased 3-fold when visitors stay overnight and spend more.The City's planned North Anchor project including an 85-room hotel will have a direct effect on retail/restaurant spending particularly downtown. The City's top private employers appear in the table that follows by industry and employment with traded sector employers appearing in the top half. Most employment figures reflect 2024 or 2025 updates.All but one company is headquartered in Lake Oswego. City of Lake Oswego Economic Development Strategy 2026-2029 3 to E ° t714 mari etew oRE Goa Largest Private Employers in Lake Oswego: 2025 Traded Sector Employer Industry Employment Biotronik-Micro Systems Medical Bioscience 550 NAVEX Global Software/ IT 400 The Greenbrier Companies Manufacturing/Transportation 260 Logical Position Design & Media 229 Yakima Products Athletic& Outdoor Manufacturing 110 Precision Castparts Corp. Manufacturing 60 Unosquare Software/ IT 51 Lightspeed Aviation Manufacturing 50 Other Large Employers Employer Industry Employment KinderCare Education 500 Aldrich Financial Services/Accounting 169 Pence Contractors Construction 154 Point Monitor Corp Security& Safety Technology 150 Columbia Bank Banking/ Financial Services 140 Delap Financial Services/Accounting 101 Hoffman Construction Construction 100 UBS Financial Financial Services 95 Sources: Portland Business Journal, GPI, InfoUSA, Marketek Note:All companies are headquarters locations except USB Financial City of Lake Oswego Economic Development Strategy 2026-2029 4 1teto E r KmJ marwetew oRE Goa Economic Overview The table below provides a snapshot of Lake Oswego's current economic conditions. This is followed by an overview of the City's major economic sectors (private) including the distribution of total number of establishments, average annual employment and annual payroll. See the 2025 retail and office market reports for additional details on those sectors. See Appendix B for a summary of Lake Oswego's industrial market and space available. Lake Oswego Economic Snapshot(2025) Population 41,141 Income (median HH) $142,363 Employment (2024)* 24,506 Self-employed (not incorporated) 9.0% Unemployment (8/25) 5.2% Top sector: professional services 35.0% Workforce Commute Commute to LO 91.2% Live & work in LO 8.8% #of LO residents commuting out 15,470 Space Available Inventory: (2025) Office vacancy Kruse Way corridor 20.7% LO/West Linn 8.5% Retail vacancy 1.9% Leakage $781M, 2.1M sq ft Industrial (171 acres total) <4 ac available Commercial 24 ac; many not viable Assessed Property Values** (%of total) Residential 85% Commercial 11% Other 3% Industrial (171 acres total) 1% *Total-public,private **within Clackamas County Sources:OED,Census,City of Lake Oswego,Marketek City of Lake Oswego Economic Development Strategy 2026-2029 5 to E 1'ro �m marwetew ORE GOr' Lake Oswego Private Sector Snapshot 2024 Av. Annual Total Payroll Industry Establishments Employment* ($Millions) Construction 135 1,628 $164.7 Manufacturing 67 775 $77.1 Wholesale Trade 218 995 $146.2 Retail Trade 111 1,186 $48.5 Transportation and Warehousing 17 142 $9.9 Information Services-Technology 153 1,187 $174.2 Finance, Insurance&Real Estate 562 3,173 $437.9 Professional Services&Health Care " 1,061 9,651 $816.7 Other Services (except Public Admin) 416 1,515 $85.3 Accommodation&Food Services 135 2,088 $67.9 Total Private Sector 2,875 22,340 $2,028.4 Source:Oregon Employment Department,Marketek *Employment covered by Unemployment Insurance law Excludes self-employed,unpaid family workers,some domestic workers,some real estate,insurance agents LAKE OSWEGO: AVERAGE ANNUAL PRIVATE EMPLOYMENT Accommodation and Food Services Construction 9% 7% Manufacturing Other Services(except 4% Public Admin) Wholesale Trade 7% 5% Retail Trade 5% Transportation and Warehousing 1% Information Services- Technology 5% Finance,Insurance&Real Estate 14% Professional Services& Health Care 43% Note:Total private employment:22,342; Public sector employment:2,164. Total job base:24,506 Source:Oregon Employment Department, Marketek City of Lake Oswego Economic Development Strategy 2026-2029 6 to E E iJ (m1 marwetew oRE Goa Strategic Initiatives The strategy is organized by five core economic development services performed throughout the year and throughout the community to create a sustainable, business-friendly environment. While the priority actions may change from year to year, this organizing framework will remain largely the same. 1. Business Vitality 2. Economic Vitality Marketing 3. Business Attraction- Diversify Business Mix/Fill Vacancies 4. Customer Attraction 5. Expand the Real Estate Inventory 6. Organizing for Success Each initiative includes a statement of its importance, specific projects/action items with initial steps, lead responsibility and partners for implementation, timeline for initiating implementation and measures of outcomes rather than activities to track progress. In most instances the principal resource required for implementation is staff time. However some financial resources will be important for a limited number of projects and actions. Initiative 1: Business Vitality (Business Retention & Expansion-BRE) Why Important? A business retention and expansion (BRE) initiative is an important way for the City to demonstrate it wants and appreciates existing businesses. It should be the top priority of ED staff. Economic developers attest to the fact that 70-80% of all new jobs and private investment occurs with expansions than through attraction or start-ups. Worth noting too is that retaining existing businesses in a community is less costly than bringing in and establishing new. An added bonus is that positive outcomes can help establish and spur a business-friendly reputation for Lake Oswego. Existing businesses satisfied with the current climate often make the best recruiters or source of leads for new business. In the case of retail, several Lake Oswego entrepreneurs have opened successive businesses filling consumer niches in the community. A proactive connection with existing businesses will help the City understand and respond to local needs so that major employers and small businesses alike stay, grow and become even more committed to the community. Further; BRE will help minimize surprises both good (e.g., Hoffman Construction moving to Kruse Way) and bad (e.g., Autodesk relocating to Portland). This includes assistance to new and existing businesses to find new spaces, expand and relocate within the City and to navigate planning, building and permitting processes. For many business issues from workforce development to capital access,the role of City ED staff will be making connections to the technical assistance and service providers and ensuring follow through. City of Lake Oswego Economic Development Strategy 2026-2029 7 O��A EOf � o (4 , mariiueteiiu ORE GOc, Action Items: BRE workplan • Map out the phases of Lake Oswego's BRE game plan.Start with a visit to the County economic development team. Clackamas County has conducted extensive BRE research on best practices and keys to success and had its own program in place for 15 years.They are ever ready to assist Lake Oswego. Be sure to address key issues like business confidentiality guidelines. Research/package • Identify and integrat local/regional/state business support an business technical resources starting with Partners/Collaborators list. Clackamas County has a resources&assistance robust list.While the City has few incentives,Clackamas County,Workforce boards and Business Oregon have a range of Business Development& Workforce grants—though most are not focused on retail. Drnrtrnm liAnr4c+inrt I • Introduce the BRE program to the business community through City/Chamber newsletters, letter of introduction and one-on-one promotion. A sample promotional flyer appears in Appendix C. Major Employer/ • Initiate personal outreach to the following target audiences and aim for three Stakeholder business visits per month. outreach &Follow up ✓ Lake Oswego's largest 25 private employers. ✓ Key developers, property managers and owners • At least 2/3rds of business outreach calls lead to follow-up assistance, information and referral. Being available for this work is critical to creating a trustworthy relationship and conveying the City truly cares about business success. Retail/Service targeted • Keep and grow critical business anchors that generate significant foot traffic. outreach Take the pulse of 6-8 key businesses in Downtown, Lake Grove and other large commercial centers-2x/year to uncover and address important issues.The Lake Oswego Chamber is well-suited for this task. Kruse Way targeted • Get in front of the major property owners, brokers,tenants in Kruse/Meadows outreach campaign corridor to understand short and long term interests/plans/redevelopment challenges and opportunities. Help frame future-oriented discussions about the continuing evolution of this economic center. Identify ways the City and economic development partners may be helpful. • Facilitate small group meetings on special topics/shared interests. Partner with Greater Portland Inc.who regularly meets with stakeholders focused on the office market. • Actively participate in the West End Business Committee to stay abreast of business issues and opportunities • Longer term,facilitate Corridor Visioning.See Initiative 5. Business • Identify key topics through business and partner outreach,such as Workforce Roundtables/Special Availability, Future of the Office market,City/County issues, business strategies Events for an uncertain economy City of Lake Oswego Economic Development Strategy 2026-2029 8 21 o Er* marwetew NE Go,' --M11! • Special topic programs addressing cross-cutting business issues are important to stay relevant and useful to the business community.The West End Business Committee is effective at making this happen. • Partner with the Chamber, Oregon Employment Department and subject matter experts to deliver timely presentations. Lead Responsibility: • City of Lake Oswego for office, industrial, commercial property owners and developers • Lake Oswego Chamber of Commerce for retail and service sectors Partners and Collaborators: Clackamas County Economic Development, Greater Portland Inc., specialized technical assistance providers Timeline: Year 1 and ongoing Outcomes/Measures of Success: • Response time • Success stories of business troubleshooting and problems-solved • Business/jobs retained • Business expansion (employment, investment$,footprint) • Vacancy rates, space leased—if BRE efforts contributed to these results • Intangible results may include improved/positive perceptions of City/community, positive business climate conveyed through conversation, surveys, business testimonials Initiative 2: Economic Vitality Marketing Why Important? In a competitive business environment it is important to convey Lake Oswego as a pro-business, investor friendly city.Conversations with economic development professionals reveal the City is known more as a top quality bedroom community rather than as an economic center within the region with the exception of the Kruse office corridor.To convey the City's interest in business and job growth it will be important to develop compelling messages.A few preliminary themes are: 'Lake Oswego excels at continual community improvement as a first-rate living and working environment'and 'LO is a destination suburban location with a highly educated workforce and superior quality of life.'The community assets, successful projects and redevelopment investments readily validate this theme.Another key message is that when it comes to retail, restaurant and services, opportunity abounds in Lake Oswego,as demonstrated by the retail market City of Lake Oswego Economic Development Strategy 2026-2029 9 ,1/4 Lt. f *� o marwetew NE Go,' update. Further,to increase awareness of Lake Oswego as a top quality business location with an excellent business climate1,consistent information,contact, messaging and visibility to target audiences are essential. Action Items: Business One-stop • With the pending hire of a City economic development manager,the opportunity exists to develop a one-stop(central point of contact)concierge/information source for businesses seeking to expand or relocate—a customer-driven approach to business development. • Develop roles and responsibilities details to continue collaboration with the LO Chamber of Commerce,which will remain the lead organization for business community advocacy and partnership. Elevate LO image, • Translate LO's key assets into messages and marketing platforms to attract and assets and identity as retain businesses to build the local economy. leading suburban • Develop a core set of messages(3)to promote both online and in print materials business location • Promote LO's strong sense of place and business climate for economic growth Economic A simple webpage is important for communicating business support.Contents may Development include the following: webpage • Up to date market data-community snapshot—demographics,economic, real estate trends • Open your business in Lake Oswego—5 compelling reasons • Who to contact for what at the City • 'Available properties' link(key commercial/industrial);team with local commercial brokers • Business resources/incentives(basic info with links) • Costs- Demonstrate competitiveness—show comparative info on SDC rates. Note: League of Cities just released results of a 2025 SDC survey. Build ED network, • Actively build and leverage relationships within the ED community: Clackamas partnerships and County,Greater Portland, Inc.(GPI),WorkSource Clackamas, Mt. Hood Economic synergies Alliance, Business Oregon, Oregon Economic Development Association,etc. • Build a key contacts network for business marketing, business assistance/attraction and to keep Lake Oswego'top of mind'for business development. This will include leadership from organizations above,the real estate community, public agencies, bankers, businesses and civic leaders. Maintain/Enhance • City staff are key'ambassadors'for conveying an efficient, predictable, business- LO's positive business friendly tone and regulatory process. Internally,define what a positive LO climate business climate looks like and what the City can influence. Determine/refine 1 Business climate is defined by a mix of economic,political,and social factors like tax policies,regulations,labor costs, infrastructure,and government attitudes,all influencing an area's attractiveness for investment and growth.It includes the ease, cost,and support for starting,running,and expanding a business City of Lake Oswego Economic Development Strategy 2026-2029 10 ' r, Er* marwetew NE Go,' simple standards for success, identify potential service level improvements, establish specific goals and metrics to monitor progress. Build on the existing goals,e.g.,target turnaround times for development review,the permit process, etc.and identify what is working and what needs improvement. • Develop a brief(3 question)online survey for businesses to complete after permitting or concluding other interactions with the City to gain insights to local business climate and customer permitting and approvals process—the most significant interaction residential and commercial investors have with the City. • Capture business testimonials as well as concerns to address. Make continual improvements as possible. Code Audit • Complete Development Code Audit to identify and address barriers to housing production and economic development. • Promote business-friendly changes and outcomes from this project. Business Opinion • Business participation in surveys is challenging in an era of short attention spans Research and top of mind messaging/sound bites. Instead, look for ways to generate useful information with very few(1-3)questions at a time. E.g., Will your business expand, contract or stay the same in 2026? What is the top challenge your business is facing this quarter?Organize through Chamber network/business gatherings,via eblasts or other occasions where the City has the attention of businesses. • Brainstorm alternative ways/formats to gather insights and helpful information and test out different approaches for a short Q&A. Lead Responsibility: • City of Lake Oswego Partners and Collaborators: LO Chamber of Commerce, Greater Portland Inc. Timeline: Year 1: Emphasize building the economic development infrastructure: webpage, partnership- key influencers network, core messages and any internal improvements to convey a pro- business attitude. In addition, complete code audit and identify steps to address business development barriers. Years 2-3: Focus on Lake Oswego's key messages (and activities)to portray a positive, competitive business environment, i.e., a business brand; identify tactics for integrating the messages into City/Chamber communications and programs; conduct business opinion research. City of Lake Oswego Economic Development Strategy 2026-2029 11 rEr* mari etew ORE GOV' Outcomes/Measures of Success: • Code or other changes implemented resulting from code audit, customer service surveys, etc • Webpage views • Increased business inquiries • Improved/positive perceptions of LO as a business location and the City as a partner: business/partner testimonials, media coverage, customer survey results,trusting open 2-way communication with existing and prospective businesses Initiative 3: Business Attraction--Diversify Business Mix, Fill Vacancies, Promote Sites Why Important? Although Lake Oswego's small commercial and industrial land base limits new development, the retail and office centers have room for improvement. While attention to business attraction may not generate immediate results, efforts will have favorable effects over time. Regarding shopping districts and retail, the retail market study identified that one-third of all retail demand (>$1B)from the local market is leaking out.Viewed another way it is being captured by out of town businesses or in some cases online. IE, there is tremendous opportunity for expansion. Encouraging a dynamic and unique business mix is key to the continuing evolution of downtown and Lake Grove as destination districts. As one market to probe going forward,thought should be given to ways to capture spending from Lake Oswego's large and increasingly dominant young family demographic. In 2025, 35%of the City's population is 34 years or younger; 25.4%are 35-54 years; and 26.2%are 65 years or older. As successful shopping centers actively manage their tenant mix to optimize foot traffic and sales to businesses, so too can downtowns, small centers and business corridors encourage retail in a core retail area to increase foot traffic, spending and shopping attraction. The Urban Land Institute has long demonstrated that increasing the size and concentration the retail base will result in more consumption and business sales. Regarding Kruse Way's high vacancy rate, shifts in office market usage and preferences are challenging the viability of large traditional office formats—no matter the location and how well maintained. It is important for the City to collaborate in business development activities with partners like GPI (the Portland region's lead economic development organization) and involve multiple partners to stay on top of office market transformations and assist with potential visioning about the future of the City's largest employment center. Action Items: North Anchor Project • Continue to prioritize this investment providing timely and steady support to Urban Development Partners and other stakeholders toward the successful construction and tenanting of this visionary mixed-use project. City of Lake Oswego Economic Development Strategy 2026-2029 12 ,1/4 L). f r marwetew ORE GOa Monitor occupancies, • Both GPI and Clackamas County will provide Lake Oswego the most current issues and opportunities local and regional CoStar data on all development sectors. Gathering this by business hub information twice annually allows easy reporting on the big economic picture. • Every 6-8 weeks,conduct a windshield survey of all retail centers for vacancies/changes that present opportunities to influence the business mix. Partner and Collaborate • Maintain regular contact with key influencers in tenanting business districts with ED Network (office/retail brokers, property/management companies). Help influence the commercial business mix and business locations to optimize retail clustering in shopping districts/centers by connecting regularly with brokers about prime existing or anticipated vacancies. • Build relationships with key shopping or office center managers including those out of town to augment the business attraction process and promote City services. • Be ready to be act on any office tenant and significant retail recruitment teams no matter where the leads come from. Maintain a list of • Actively anticipate/track key retail-ready vacancies to match space and available properties and location available with the best business fit(see Retail report-draft target land on City website business list)—continuing to build out the Downtown, Lake Grove and shopping center retail hubs. • See Initiative 1 re:creating an Economic Development webpage Business Leads • Cultivate a third-party referral network to identify business prospects and site opportunities in Downtown, Lake Grove and other locations. • Track leads from new,start-up,existing businesses seeking retail or office space in Lake Oswego. • Focus business development and lead-tracking at the City in collaboration with the Chamber. Meet regularly to focus priorities. Marketplace Innovation • Stay open to market changes and explore what might be a fit for Lake Oswego. and Education The consumer and business markets are ever evolving and innovating.Today's customers are driven by experiences,connections,entertainment and all things new and different.As one LO retailer commented, "We need to stay relevant to survive." • Get out of town—if not in person then via visual presentations—to stay on top of the many unique and successful retail/dining/shared space concepts emerging in suburban centers and elsewhere around Portland.Venues like food cart pods/food halls,shared kitchens, permanent artisan markets and new approaches to'cooperative'entrepreneur spaces are helping commercial districts broaden and attract new(younger)customers. • Share insights and learning with staff, Council, LO Chamber's 3 business committees and connect to any development opportunities. Entrepreneur and home- • Connect with ED professional network to identify economic development best based business support practices for supporting and encouraging both start-up entrepreneurs and home-based businesses. City of Lake Oswego Economic Development Strategy 2026-2029 13 to E ° J (m1 marwetew oRE Goa • Survey Lake Oswego's 800 home-based businesses to identify needs and interests in brick and mortar space. Lead Responsibility: City Partners and Collaborators: LO Chamber of Commerce, realtors, property owners Timeline: Year 1: North Anchor project assistance, monitor occupancies and business district issues, available property list Years 2-3: North Anchor project, business lead development and system, key influencer network, marketplace education, entrepreneur support. All of these actions may be jump-started in Year 1 but likely not be fully implemented until following years. Outcomes/Measures of Success • Increased business inquiries • New business attraction,job growth • Up to date properties/land available database; web traffic to this information Initiative 4: Customer Attraction Why Important? The most inviting, well-maintained and smartly tenanted shopping districts need ongoing promotion to shoppers to remind them of the innovative entrepreneurs and diversity of goods and services offered in their own community. Lake Oswego's retail/service sector will benefit from increased marketing to local shoppers, visitors and businesses through a unified promotion strategy. Businesses interviewed for the retail analysis repeatedly expressed high interest in marketing and promotion to increase foot traffic to their stores/locations. Increasing the number of visitors and their length of stay in Lake Oswego directly supports retail, service and hotel businesses. Business and meeting travelers make up a significant portion of lodging demand for Lake Oswego's seven hotels. The future boutique hotel slated for downtown at the North Anchor site will attract a discerning, experience-seeking traveler who values unique local culture, authenticity, and personalized service over standardized chain experiences—another motivation for coordinated business promotions. Fundamentally, promotional efforts are economic development in the sense of creating an environment conducive to generating business within the district, but they also fulfill an important function in building a sense of community and are a benefit for business attraction.Typically, business district promotions fall into one of three categories: City of Lake Oswego Economic Development Strategy 2026-2029 14 O�L� f *� o marwete• w NE Go,' 1. Special events give people a reason to come to the business district and create positive energy and activity. 2. Image building activities enhance the positive aspects of the district and minimize the negatives. 3. Retail or business-generating activities should generate business as a direct result of activities. The City and Chamber have a deep list of events and activities in the first two buckets and in the near term should focus promotion events on the 3rd category. Action Items: Promotion Calendar • Build out a business-generating promotion calendar of at least 6 events/annually; cross promote with City events whenever possible. Examples include:a Taste of Lake Oswego/Restaurant Week campaign for the slow winter season;Small Business Saturday shopping passports-prizes; 1st Friday lunchtime and/or Happy Hour promotions targeting Kruse office employees; Customer Appreciation 'end of season'sales;special joint cross-promotions affiliated with special events(e.g., dining guide for Antique Car Show)and holiday activities. • The Chamber is best suited to lead promotions,create a workplan and coordinate implementation with business co-chairs from each business committee. • Evaluate the results of each promotion with a 3 question business follow-up survey to continue to modify from year-to-year. Visitor Marketing • Identify the most effective strategies for increasing customer visitor traffic to business districts.Think: regional visitors, local/regional businesses,area residents • Based on the above, build an annual visitor marketing workplan, leveraging all possible 3rd party marketing assistance/resources like Mt Hood Territory,Travel Oregon, meeting planners. Rely on low cost resources like social media as much as possible. • Cross-market visitor events with the City, hotel, meeting locations and retail businesses. Explore packages for special promotions. • Package and promote Lake Oswego to regional/Oregon business community as a meeting destination.The Foundry, Iron Light, Lakewood Art Center and area hotels are all excellent locations with parking,capacity and ample dining choices nearby. 111 Main Street • Join the Oregon Main Street(OMS) program at the Connected Communities level where organizing around a specific project or activity like promotions is encouraged.This level is for communities who care about their historic downtown and traditional neighborhood commercial districts and want to learn and benefit from a wealth of tried and true best practices to help them make a difference.OMS is a key resource and partner for downtown and commercial business district success. More than 100 communities across Oregon participate in this program and peer support is very active and effective. City of Lake Oswego Economic Development Strategy 2026-2029 15 o 0 '�' (4 , mariiueteiiu oRE Goa Parking • As businesses continue to share parking concerns, review and promote the City's 2019 downtown parking study findings. Include steps for effective parking management strategies. • Post the parking map(created through the parking study) in numerous online locations and possibly in a mobile sign board for special events. • Explore improved signage for public parking in both district. Business Testimonials I • To support local small businesses and customer connections,organize a 1 campaign of local small business testimonials/stories: "I am Lake Oswego"or"I believe in Lake Oswego"sharing personal commitment to the community's success. Rely on print and social media—1 business a month.Samples available. Shopper Survey • Electronic survey to identify top shopper needs and interests re: merchandise, restaurants,services. Use info to revise target business list and promote specific business opportunities Business Visitation • Visit one-on-one with every hotel operator to understand customer base, needs (see Initiative 2) and best marketing tactics.and a representative sample of anchors of shopping districts 2x a year to gain insights to issues, opportunities and identify creative ways to increase customer traffic. Lead Responsibility: Chamber of Commerce Partners and Collaborators: City, Oregon Main Street, Mt. Hood Territory Timeline: Year 1: Promotion calendar implementation,visitor marketing, Main Street, business visits (initiate) Years 2-3: Parking promotion, shopper survey, business testimonials Outcomes/Success Indicators: • Event/destination attraction attendance • Event-related business sales (measured through post-event business surveys) • Website/social media traffic • Media coverage • Customer satisfaction and interests (measured through surveys) • Room nights/occupancy • Meeting inquiries and bookings City of Lake Oswego Economic Development Strategy 2026-2029 16 ' E016 r* mari etew ORE GOV' Initiative 5: Expand/Revise the Real Estate Inventory (longer term) Why Important? Marketing business opportunities and Lake Oswego as a premier business location goes hand in hand with marketing business-ready properties. For significant economic expansion to occur in Lake Oswego the supply of employment lands must be expanded over the long term.Vacant retail/service space in the LO/WL submarket is extremely tight at 1.9%; LO retail is undersupplied relative to local demand with over 1/3 of retail spending leaking out of Lake Oswego.The ability of Lake Oswego to capture unmet demand depends on numerous factors but especially the availability of quality retail-ready space. Office vacancy in this submarket is 8%and is especially tight in properties meeting current market needs—Small,flexible office space. Since 2020 average sizes have declined by 15-20%to 5,000 SF or less. Within Lake Oswego no new commercial construction is in the pipeline except for the North Anchor project, which is still 2+years out. Less than one acre of industrial land is available for development, which while small might be suitable for small bay or flexible industrial purposes. See Appendix B for complete details. While Lake Oswego's small land supply limits opportunity to expand the local economy with new development, other options may be building conversions/repurposing, infill, vertical development, rezoning, or in the long term adding to the land base. Action Items: Available Properties • Review and assess vacant commercial/industrial parcels and identify the most viable, 'development-ready'sites. Reach out to property owners to understand intent and potential marketability. • Promote developable properties on City economic development webpage. Broker-Developer Meetings • Identify Opportunity sites--underutilized sites or buildings for repurposing/redevelopment. • Discuss interest, needs and potential for targeted new or redevelopment. Southwest Employment Area • Update the 2015 Plan including project list and SW Overlay District. (SWEA) Plan Identify opportunities to capture more jobs and business within this small employment lands area. • Revisit transportation and other projects from 2015 plan and explore viable projects for the next 5 years. • Engage with Biotronik/Microsystems, Lake Oswego's largest private employer and the lead SWEA property owner to understand their critical needs to stay and grow in place. Foothills Planning The 107-acre Foothills district provides a unique oprtunity to expand Lake Oswego's developable land base for residential, commercial and mixed-use. Planning is underway for this ■ community economic development project and should remain a — City priority for future population and economic growth. City of Lake Oswego Economic Development Strategy 2026-2029 17 0 '�' (4 , mariiueteiiu oRE Goa Employment Lands • Longer term,expand employment lands increase supply of land and properties)to capture additional economic opportunities and add to job base. Evaluate potential opportunity sites for development and redevelopment starting with SW Employment Area and Kruse/Meadows. Kruse Way Visioning • As some property owners evaluate the long term viability of traditional suburban office properties,facilitate and serve as a resource for new and redevelopment opportunities. • Facilitate a Kruse Way visioning process to identify opportunities for increasing density and expanding uses and development in the corridor B Avenue Visioning • Anticipated success of the North Anchor project will catalyze new economic energy on B Avenue and the nearby area.To capitalize on this vitality and placemaking opportunity, consider a B Avenue visioning process to encourage an improved streetscape as well as compatible, pedestrian-oriented infill or redevelopment(from 1st to 5th)and to expand the economic vitality. Lead Responsibility: City Partners and Collaborators: Property owners and developers Timeline: Year 1: Evaluate and market available land/properties, meet with developers/brokers, support Foothills concept planning Years 2-3: Foothills game plan, employment land expansion, Kruse Way visioning, B Avenue visioning Outcomes: • Identification of specific land development opportunities • Development projects underway • Clear understanding of'best bets'for expanding Lake Oswego's employment base City of Lake Oswego Economic Development Strategy 2026-2029 18 ' E016 r* marwetew 0lEQOo Initiative 6: Organizing for Success Why Important? The City of Lake Oswego recognizes the importance of an economically thriving community. With an uncertain economic outlook both regionally and nationally, the timing of this refreshed strategy could not be better for moving the economic development initiatives forward. Successful business development programs for small and large cities alike have the following key organizational elements in common: • Clear goals, responsibilities, commitment and funding communicated through a common vision and game plan. • A clear system for ongoing market education,target marketing and business development activities. Among the stakeholders involved are the City, Chamber, established businesses, residents, lenders, entrepreneurs/businesses and key employers. • The capacity to follow-through on work plans.The most creative business development efforts will not succeed without continuous follow-through and systematic adjustment to the marketplace which is never stagnant. Action Items: Roles& • Define functional roles and responsibilities and clear reporting structure for ED Responsibilities Strategy implementation starting with City staff(Community Development/Planning, Economic/Capital Improvements, Public Affairs, City Manager's office)as well as the Lake Oswego Chamber of Commerce • Meet monthly(City and Chamber)to discuss work plan progress and adjust as needed Workplan • Prepare a quarterly Economic Development workplan to bring timely focus on priorities, monitor the workload and manage expectations. Resource Plan • Create a budget for strategy implementation Reporting • Produce quarterly dashboard of activity and results • Prepare a simple annual report of Economic Development accomplishments with BRE prominently featured • Establish aims, priority projects/programs and desired results for the following year Lead Responsibility: City Partners and Collaborators: LO Chamber City of Lake Oswego Economic Development Strategy 2026-2029 19 1r4_° �mJ marwetew orccoa Appendix A- Economic Development Partners and Resources Clackamas County Office of Economic Development works to attract new businesses and support existing businesses in the county. Staff facilitate regular meetings of all economic development professionals throughout the county, actively partners with local, regional and state organizations and offers incentives particularly focused on traded-sector businesses. Incentives include Business Development Grant Program for capital, capacity, or workforce expansion with grants up to $100,000.They also support building/infrastructure projects, promote export initiatives, and have resources for various business needs like recovery. Greater Portland Inc. (GPI) is the region's only public-private partnership dedicated to destination business marketing and economic development. GPI's focus is to attract, grow, and retain traded-sector businesses for all skill levels, and provide advocacy for greater Portland's competitiveness in coordination with public partners. Specific assistance to local governments includes research/data analysis, site selection consultations, real estate/business location services, comparative analysis of location competitiveness, connections to over 90 private sector partners representing the region's wide ranging economic base. Oregon Economic Development Association (OEDA) supports nearly 200 economic development professionals across the state through educational programs, advocacy and networking which give insight into best practices to ensure healthy economic growth. OEDA serves local governments, development organizations and business by focusing on professional training in order to provide the tools and resources which enable forward thinking and successful outcomes. Oregon Main Street(OMS) Network specializes in optimizing the assets of downtowns--the social, economic and civic heart of a community. With over 100 member communities in Oregon, OMS provides training and technical assistance to help with all phases of downtown revitalization efforts by focusing on the specific vision of each community and addressing how to attract the people and financial resources to achieve the outcomes desired. Members of the OMS Network have access to the Oregon Main Street Revitalization Grant and connect to the resources of the National Main Street Center and the brain trust of over 2,000 Main Street communities across the country. Oregon Employment Department(OED) is a valuable resource for identifying potential employees who are best qualified to fit employers' needs. OED also is the leading source of state and local employment data by sector and more in-depth research on industry and employment trends. Regional staff conduct trend analysis and are available for customized presentations. Business Oregon is the state's economic development agency that manages over 80 different programs, including grants, loans, and tax incentives, to support Oregon businesses and communities of any size. Community support is organized by 12 regions and teams statewide. The Business Oregon Commission oversees the agency's activities to ensure a coherent, integrated approach to economic development and a continuous policy direction. City of Lake Oswego Economic Development Strategy 2026-2029 20 vt, E e O � �'�'f o (4 , mariiueteiiu oRE Goa Clackamas Worksource Partnership (CWP) is a "one-stop shop"for free training, education, and employment services for Clackamas County businesses and residents on wide ranging workforce issues and opportunities. The CWP actively uses various state and federal grants to fund job training, career coaching, and support services. Clackamas Small Business Development Center(SBDC) at Clackamas Community College is one of 19 regional centers affiliated with community colleges in Oregon.The business training and advising program offers a range of educational opportunities to help small businesses succeed.These include specialized training classes as well as free one-on-one businesses consultancies.The Clackamas SBDC will be an excellent resource for business assistance needs that surface from a business retention program. Mt. Hood Territory is the primary marketing and promotion organization for generating tourist activity in Clackamas County. The organization focuses on increasing the number of new and repeat visitors to the County and the amount of money visitors spend in the area, thus contributing to economic development and local vitality. Staff members are excellent resources for developing a visitor industry strategy, consulting on best ways to use and leverage visitor marketing resources and cross promotional activities with tourism assets across the county. Marketing grants are available to Clackamas communities as well. Mt Hood Economic Alliance(MHEA) serves Clackamas, Hood River and Wasco Counties with gap financing/loans for those businesses unable to secure (enough)financing through conventional banking needs. The Alliance seeks out and invests in projects that create jobs and leverage additional investment, with priority given to those business development projects that create or retain better than average wage jobs in the light manufacturing, recreation equipment,technology,tourism and agriculture industries Oregon Manufacturing Extension Partnership (OMEP) helps Oregon manufacturing businesses (large and small) improve operations, strengthen teams, and achieve sustainable growth. Expert industry advisors offer assistance with workforce development, adopting new technology, and business strategies grounded in practical, hands-on implementation. City of Lake Oswego Economic Development Strategy 2026-2029 21 to E �°iJ (m1 4_r marwetew °rccoa Appendix B- Lake Oswego / West Linn Industrial Snapshot Marketek prepared an overview of the industrial market in Lake Oswego and the Lake Oswego/West Linn submarket in November 2025 based upon CoStar reports, Metro vacant lands database and field work. Key Findings - Lake Oswego contains a small, built-out industrial base totaling approximately 1.35 million SF, with no new deliveries and no projects under construction. -Vacancy is extremely tight (-2.4 percent), with only about 30,000 SF currently being marketed for lease. -The market is predominantly small-bay logistics and service-oriented space, with a modest flex component. -Within the LO/West Linn industrial submarket, Lake Oswego contains most industrial buildings and square footage, with West Linn representing a significantly smaller share. -Only 3.86 acres of industrial land remain vacant across four parcels, representing approximately 2.6 percent of the city's industrial land base. - Limited developable land indicates that future industrial growth will rely on redevelopment, not new greenfield sites. -Available spaces are few and relatively small, generally under 10,000 SF. -The absence of new construction suggests continued long-term supply constraints. Lake Oswego Industrial Overview Lake Oswego's industrial market is defined by constrained supply, minimal turnover, and stable long-term occupancy. The city's industrial inventory totals approximately 1.35 million SF, consisting primarily of small-bay warehouses, service-oriented industrial buildings, and flex space. No new industrial development has occurred in more than a decade, and the city's limited industrial land base restricts future expansion. Vacancy remains exceptionally low, at around 2.4 percent, and only a small amount of rentable area is being marketed. Industrial users within this submarket typically include construction trades, logistics groups requiring close-in accessibility, and professional service firms that value proximity to Lake Oswego's residential and commercial areas. LO / West Linn Submarket Summary The LO/West Linn industrial submarket demonstrates consistent stability, supported by low vacancy and minimal new supply. Industrial rents have shown modest appreciation, reflecting solid tenant demand and the scarcity of available space. Based on mapped inventory, Lake Oswego accounts for most industrial buildings and square footage within the submarket. Industrial properties are primarily concentrated along Pilkington Road, Jean Road, City of Lake Oswego Economic Development Strategy 2026-2029 22 o (4 , mariiueteiiu oRE Goa Willow Lane, McEwan Road, and Foothills Road. West Linn contains only a small number of industrial buildings, contributing a minor share of total inventory. Current Industrial Availabilities Address City Building SF Asking Lease Notes SF Available Rent Type 17425-17505 Lake 11,578 4,800 SF 18.002 Direct Small-bay warehouse SW Pilkington Oswego SF with drive-ins Rd 5755 Willow Ln Lake 13,909 4,882 SF 23.35 MG Sublease Flex or office space —Suite F Oswego SF with warehouse component 220 Foothills Lake ,500 SF 1,200 SF Rent Sublease Service or industrial Rd I Oswego IS. withheld space _ 6710 SW Lake 64,493 8,750 SF 12.00 MG Sublease Warehouse with 22- McEwan Rd— Oswego SF foot clear height and Building 1 short-term availability Construction Pipeline There are no industrial projects under construction in Lake Oswego or West Linn. With less than one acre of vacant industrial land remaining in LO, near term opportunities for new development are extremely limited. Vacant, Buildable Industrial Land in Lake Oswego Recent GIS analysis using the updated 2024 Metro Vacant Lands model identifies only one industrial- zoned parcel in Lake Oswego shown in yellow in the map on the following page. The site on Jean Road is 31,729 SF or 0.73 acres. Out of 147.04 acres of industrially zoned land citywide, only 0.5 percent remains undeveloped. 2 MG=Modified Gross Lease City of Lake Oswego Economic Development Strategy 2026-2029 23 to E ° J f r ET marwetew °RE GGa ;_ le illIl i I k r . � 111 61111 NM * 4, le i a - - r R r• Si -. .. • I .M A r CIS 1 aus ' : .. --• $ •' i ' i" ' 4100 Pp i .,, .a : it Nip .. a 1 ' f' . '''''''.1.. ,.... .... . In '411111.." -`-; - I'~' ..i►„ `: dot-Y A*I4MFll -1 .71 Key Takeaways - Lake Oswego's industrial submarket is tight, stable, and built-out. -The LO/West Linn submarket is dominated by LO in terms of inventory and available space. -Vacant industrial land is miniscule limiting future development capacity. - No construction pipeline and constrained availability point to continued long-term supply limitations. City of Lake Oswego Economic Development Strategy 2026-2029 24 0��.� EOs *� �'!�'o ( marwetew ..,GOA Appendix C — Sample Business Retention Expansion Flyer CANBY IS , .. . OPEN FOR BUSINESS Canby's 800 businesses and nearly 8,000 employees are the economic 'Where Business Grows' engine of our community! We have dedicated staff ready to help and advocate for existing companies as they grow and expand.We're here to help you succeed. LOCAL ROOM TO WORKFORCE INCENTIVES GROW SUPPORT Strategic Investment Zone Industrial Park Customized training& program offers 15-yr property with 360 acres of affordable,shovel- staffing programs tax abatement for ready land&buildings ready to at Clackamas Community manufacturers investing>$25M occupy College;Clackamas Workforce Rural Loan Programs Hwy 99 Commercial Partnership (land,lease,build to suit) Revitalized historic downtown with retail&office space available WE CAN HELP... Cut the Red Tape!City staff works with businesses and developers to expedite the permitting process and access incentives-we value your time and money. Keep Costs Down!Canby's locally-owned and managed utilities offer competitive rates(30%below surrounding areas!),responsive service and ample capacity. Access every Business Resource available through our local,regional,statewide partners! YOU'RE IN GOOD COMPANY These companies are growing their business in Canby: s CO Pk j fir" s..t 4114 - fr T if � : _ , . .._:, _ ,iii,„. ,:_..,:,0 _ r..•.f,1 ''''''- Columbia Distributing Dragonberry Produce Canby Pioneer Industrial Park "The benefits of a Canby location are many: "We've chosen Canby to grow our business.Since High-quality industrial campus with shovel- Access to labor,access to land,Portland metro locating in 2013 with the completion of the first ready land&buildings in a desirable population moving south,of fordable housing, LEED building for fresh produce distribution in location with easy access to Hwy 99 and 1-5. welcoming community,easy to work with Oregon,our number of employees has more than government."--Paul Meade,CFO doubled!" --Amy Nguyen,President . Do you have an opportunity to take your business to the next level of growth? Are you facing a business challenge?Let us connect you to resources! CONTACT JAMIE STICKEL, CANBY ECONOMIC DEVELOPMENT DIRECTOR ..fir STICKELJ@CANBYOREGON.GOV 503.266.0701 WWW.CANBYBUSINESS.COM City of Lake Oswego Economic Development Strategy 2026-2029 25 OE E � � 11. o (4 , mariiueteiiu GfE GO'' Appendix D — Interviews Liz Hartman and Matt Evans, Lake Oswego Chamber Amy Vandervliet, Oregon Employment Department Nick Triska, Brett Marchant, Greater Portland Inc. Chad Marting, Bank of Pacific Steve Perkins, Laura Edmonds, Cindy Moore, Clackamas County Office of Economic Development Leigh Mcilvane, DLCD Michelle DeBuhr, Colette Young, OnPoint Community Credit Union Scott Stoddard, Biotronik/Micro Systems Engineering Raul Bonifacio,Yakima Products Jim Austin, Casey Knopik, Mt Hood Territory Eric Cress, Urban Development Partners (UDP) Charlie DiGregorio, Norris-Stevens Matt Lorenzen, City of Wilsonville Erika Fitzgerald, City of Gresham See the 2025 Retail and Office Market Updates for additional stakeholders who contributed to the findings and strategy. City of Lake Oswego Economic Development Strategy 2026-2029 26