Lake Oswego Planning Commission Meeting – November 24, 2025

The Lake Oswego Planning Commission met on November 24, 2025, to conduct a public hearing and deliberation on a proposed text amendment to the Community Development Code regarding home occupation standards (LU 25-0002). The meeting included public comment on two topics, a detailed staff presentation, and a commission vote that resulted in a modified recommendation to the City Council.

Public Comments & Testimony

• Diane Cassidy (Blue Heron neighborhood resident, 50-year resident, commercial property owner) spoke during the public comment section about the proposed zone change at 4000 Cruiseway Place. She expressed concern that the zone change was treated as a mere map amendment, minimizing citizen involvement. She stated that the Blue Heron neighborhood was not notified despite the project's citywide implications, and she argued that the applicant had not been truthful about why the property is being emptied. She made a formal complaint to the Commission for Citizen Involvement regarding inadequate public process. She urged denial or postponement of the zone change until a citywide zoning evaluation is completed.
• Sam Hall (address: 2 Grouse) testified during the home occupation hearing. He stated he runs two businesses and a nonprofit from his home and voiced concerns that the proposed regulations are too restrictive without offering benefits to local businesses (e.g., market access, pop-up spaces, grants). He noted that his business requires an agricultural license for purchasing materials and worried about unintended consequences. He suggested the city should consider creating support pathways for home-based businesses.
• Diane Cassidy also testified on the home occupation standards, specifically regarding the proposed urban agriculture use. She expressed concern that limiting customers and frequency would harm existing businesses like a winery that operates without complaints. She advocated for grandfathered uses and neighbor-approval mechanisms rather than blanket restrictions.

Discussion Items

Home Occupation Code Amendments (LU 25-0002)

• Staff (Michael McNamy) presented the proposed changes, which aimed to replace a vague subjective standard ("alter residential character") with clear, objective regulations. Key proposals included:
  • Remove the subjective criterion and create three home occupation types: A (no customers), B (customers visit), C (short-term rentals).
  • Add a limit on hazardous substances above typical household quantities.
  • Add a reference to existing nuisance codes.
  • Limit commercial vehicle parking with visible markings to one vehicle within 300 feet of the property.
  • For Type B businesses, limit clients/customers to eight at a time (later reduced to six based on council feedback).
  • Two options for outdoor activity: Option 1 (allow small instructional classes of ≤6 people, ≤2 sessions/day, ≤6/week, 9am-7pm, no Sundays/holidays) or Option 2 (outright ban, consistent with current staff policy).
  • Create a new urban agriculture use (conditional) in R-10/R-15 zones on lots >1 acre, limited to 20,000 sq ft or 35% of lot, with client limit of 10 (originally 30, then reduced after council concerns). Tastings allowed 7am-8pm on ≤45 days/year. Farm stands were removed.
• The commission received one written testimony from an urban agriculture business owner requesting a client limit of 30 instead of 10.
• Commissioners raised concerns about the need for such detailed restrictions without evidence of widespread neighbor complaints. They debated the arbitrariness of specific numbers and unintended consequences for small businesses. Code enforcement staff explained that the current subjective standard is difficult to enforce, and the proposed numbers come from a history of complaints (e.g., pool rentals).
• After deliberation, the commission agreed to strike three elements: the hazardous substances limit (item 3), the commercial vehicle parking limit (item 5), and the client limit for Type B businesses (item 6). They also chose Option 1 for outdoor activity (allow with limits) instead of an outright ban. For the urban agriculture use, they decided that client/customer limits should be established through the conditional use permit process rather than a fixed number.

Key Outcomes

• Motion and Vote: Commissioner Modeno motioned to recommend approval of the home occupation code amendments as modified (strike items 3, 5, 6; adopt Option 1 for outdoor activity; and use conditional use process for urban agriculture client limits). Commissioner Guinea seconded. The vote was 4-1 (Chair Mitchell, Vice Chair Don Shark absent; Commissioner Bruce absent; Commissioners Modeno, Guinea, Schlei, Tween in favor; Commissioner [not specified] voted no).
• Next Steps: The commission will adopt a written order on December 8, 2025, at 6:30 PM, forwarding its recommendation to the City Council. The council is tentatively scheduled to hold a public hearing on January 20, 2026.
• Upcoming Meetings: December 8 includes consideration of findings for the home occupation amendment, a work session on tree regulations, and a continued hearing for 4000 Cruiseway Place (zone change). January 12 and 26, 2026, will include a Foothills Plan update and work plan review.

Note: The public comment regarding the Cruiseway zone change was noted but not formally considered in the home occupation decision, as that record was closed.