Will Lake Oswego utilize growth boundary expansion opportunity? Officials say no

Though currently formulating a strategy for addressing housing needs in the next 20 years, the city of Lake Oswego does not plan to utilize a tool made easier this week by the Oregon Legislature — urban growth boundary expansion.

The Legislature passed a housing package that would in part provide a more streamlined opportunity for cities within the Metro regional government to apply to extend their boundaries to make way for development. The bill, SB 1537, could result in as many as 300 more acres for urban development within the Portland metro area (it also provided a more unilateral path for boundary expansion for cities outside of Metro).

Though a large portion of the region’s urban reserves lie near Lake Oswego in the Stafford area, the city government plans to account for housing needs within its existing boundary rather than push for growth outside of city limits. City officials mentioned the high cost for building up infrastructure in areas outside of city limits as a central reason for not wanting to expand. They added that focusing on adding density within the current boundary keeps residents close to existing services like transit.

“Providing housing within existing infrastructure is much more affordable and keeps residents close to existing services and town centers and helps build transit capacity. Even within our city limits we see the massive infrastructure cost development entails and that is exacerbated many times over when you’re talking about building on farmland,” Mayor Joe Buck said.

Lake Oswego has an agreement in place with the cities of West Linn and Tualatin, Metro and Clackamas County not to add Stafford to Metro’s urban growth boundary until a concept plan for development has been adopted. The three cities also agreed not to adopt a concept plan or apply for growth boundary expansion there until a project to design and widen I-205 was fully funded and designed.

SB 1537 states that expansion plans must “include a transportation network for the site that provides diverse transportation options, including walking, bicycling and transit use if public transit services are available, as well as sufficient connectivity to existing planned transportation network facilities.”

Lake Oswego Long Range Planning Manager Erik Olson also said the bill’s density requirement, 10 units per acre for cities with at least 30,000 residents, would be a challenge to comply with.

“It would be really inefficient for the city to develop outside of the UGB,” Olson said.

The Legislature’s housing package also allocated money for housing developments. In Lake Oswego, Buck expressed gratitude that $1.7 million was doled out for water, sewer and stormwater improvements related to Habitat for Humanity’s affordable housing project that will add 23 new affordable homes at 16858 Boones Ferry Road.

A recent analysis showed that the city has a deficit of over 600 units that it must make up in the next 20 years. The local government is initiating a Housing Production Strategy to identify ways to do so.

Some strategies under consideration include providing tax exemptions for low-income housing, rezoning commercial land, utilizing urban renewal, adjusting system development charges and streamlining the review process for accessory dwelling units.

Community members can weigh in on the city’s Housing Production Strategy at a forum 5 p.m. Thursday, March 14 via Zoom.

Stafford Hamlet Vice Chair Richard Fiala said he was comfortable with various cities positions on redevelopment and particularly Buck's statement to the Review.

"The hamlet feels the statement made by Mayor Joe Buck from Lake Oswego confirms what we have said for decades — that the overall infrastructure costs and the fact that there is no transportation (like bus lines or light rail) make it exceedingly difficult to be able to service a community," he said.

Fiala added: "We will continue to work with the surrounding cities, West Linn, Lake Oswego and Tualatin, on the future of the Stafford Hamlet and how this senate bill will affect any urbanization going forward."