Lake Oswego Planning Commission Considers Major Rezoning on October 27, 2025

The Lake Oswego Planning Commission held a public hearing on a major rezoning application (LU 25-0029) for 4000 Cruiseway Place and received a work session update on Senate Bill 1537 mandatory adjustments during its October 27, 2025 meeting. The meeting covered routine approvals, thorough testimony on the rezoning, and scheduling updates.

Consent Calendar

• The Commission unanimously approved the minutes from the September 8, 2025 meeting.
• The minutes from the September 22, 2025 meeting were approved with one commissioner abstaining.

Public Comments & Testimony

Commission for Citizen Involvement Update: Chair Mitchell announced the Forest Highlands Neighborhood Association annual membership meeting, scheduled for Sunday, November 16, 2025, from 3:00 PM to 5:00 PM at the Red Fox Hills Community Clubhouse.

Public Hearing (LU 25-0029) - Testimony in Opposition: Three community representatives provided oral testimony in opposition to the applicant's rezoning request. No testimony in support or neutral was offered.

• Carolyn Krebs (Lake Forest Neighborhood Association): Argued the applicant failed to demonstrate public need. She stated that the city's Housing Production Strategy (HPS) emphasizes that over one-third of new housing is needed for low-income households, which market-rate development will not fulfill. She advocated for the citywide rezoning study scheduled to commence in January 2026 as a superior alternative.
• Cheryl Uchida (Waluga Neighborhood Association): Testified that the Waluga neighborhood already contains a large proportion of multifamily and senior housing. She urged the Commission to reject a developer-driven process, emphasizing that large zone changes require thorough community-wide planning.
• Christina Cruz (Westlake Neighborhood Association / Pfeiffer Farms): Raised concerns about school capacity (citing a kindergarten lottery, overcrowding, and a classroom shortage at Lake Oswego Junior High), traffic safety on Daniel Way, parking overflow into business lots, and increased crime. She requested single-family homes or a comprehensive master plan rather than a single large development.

Discussion Items

LU 25-0029: 4000 Cruiseway Place Rezoning (Public Hearing)

Request: The applicant (Shorenstein Properties) seeks to rezone 12.6 acres from Office Campus (OC) and OCR-3 to High Density Residential (R-0 and OCR-0). Staff and the applicant emphasized that this is a map amendment only and does not include a development application.

Staff Report (Ellen Davis, Senior Planner): Staff recommended approval. Key findings included:

• Compatibility with neighborhood uses (similar standards to R-3 zones).
• Adequate public infrastructure (water, sewer, traffic) even under a maximum build-out scenario. City Engineering and ODOT reviewed and concurred.
• Alignment with the Housing Production Strategy (HPS) locational criteria (near high density, services, transit). The city's HPS identifies a need for 2,000 new housing units by 2043.
• Conceptual feasibility for protecting trees (Oregon white oaks, Three Sisters Creek).
• Schools: Not a formal criteria. Staff contacted the school district, which confirmed no system-wide capacity issues.

Applicant Testimony: The applicant argued the office park is underperforming post-pandemic and the rezoning aligns with the city's HPS. They stated a concept plan shows viability for approximately 450 units. They emphasized the site's single ownership, adequate infrastructure, and potential to contribute to the city's housing pipeline.

Commission Questions: Commissioners asked about the lack of a formal tree inventory (none conducted), the practical density difference between R-3 and R-0, and the school district's position.

Record Holding and Schedule: The Commission held the record open for written testimony:

• New written testimony due: November 3, 2025.
• Rebuttal testimony due: November 10, 2025.
• Applicant's final written argument due: November 17, 2025.
• Commission deliberation and decision: December 8, 2025, at 6:30 PM.

Work Session: Senate Bill 1537 Mandatory Adjustments (Work Session #3)

Presentation: Planning Manager Joanna Hasty provided an update on the city's exemption from SB 1537, granted in July 2025, which allows the city to use local variances instead of state adjustments for most standards.

Exemption Conditions:

1. Broad notification to applicants about local adjustment pathways.
2. Future code amendments must not create new regulatory barriers to housing.
3. Maintain a 90% rolling approval rate on local adjustments (currently 100%).

Three Areas Subject to Mandatory State Adjustments:

1. Special Street Setbacks: The city prohibits variances. A 10% reduction must be allowed for eligible housing projects.
2. Charter Height Limit (50 feet): The city charter caps residential height at 50 feet. The state mandates a 20% or one-story adjustment above this, which will override the charter on a case-by-case basis.
3. Maximum Density: Variances to unit density caps (e.g., R-3's 12 units/acre max) are prohibited locally. If massing adjustments are granted, the density cap must be waived to allow additional units.

Commission Discussion: No action was taken. Commissioners discussed the potential implications of the mandatory height and density overrides on local zoning control.

Key Outcomes

• LU 25-0029: The record was formally held open. Final deliberation will occur on December 8, 2025.
• SB 1537: The Commission received the update. No formal action or recommendation was made.
• Upcoming Schedule: The November 10 meeting is cancelled. The November 24 meeting (week of Thanksgiving) will proceed for a home occupation code hearing, pending quorum. A study session on tree code amendments is planned. The Commission's recommendation on a Fair Housing Policy will go to the City Council on November 4, 2025.