Planning Commission Work Session on Rezoning for Housing – October 12, 2026

The Lake Oswego Planning Commission held a work session on October 12, 2026, primarily to review the draft methodology for the Rezoning for Housing project (PP 25‑0001). The project aims to identify commercial, mixed‑use, and non‑residential areas that could be rezoned to address a shortfall of approximately 600 housing units identified in the city's 2023 Housing Capacity Analysis. Staff from Cascadia Partners presented three analytical themes – favorable development economics, land suitability, and advancement of community goals – equally weighted to score candidate parcels. Commissioners discussed the methodology, weighting, the role of landowner interest, and the appropriate focus areas for further study.

Consent Calendar

• September 14, 2026 Minutes: Approved unanimously (motion by Commissioner Guinea, second by Commissioner Sly).
• September 28, 2026 Minutes: Approved unanimously (motion by Commissioner Avishon, second by Commissioner Sly).

Public Comments & Testimony

• No oral public comment was offered.
• A written comment from Ms. Anderson was received earlier in the day and shared with the commission. The comment raised concerns about preserving employment land. Staff and consultants noted that the rezoning effort would expand allowances rather than preclude existing uses and that the city’s Economic Opportunities Analysis (EOA) shows sufficient employment land remains available.

Discussion Items

1. Rezoning for Housing (PP 25‑0001) – Draft Methodology Presentation
   • Ray Haggerty and Paul Runsch of Cascadia Partners presented the project background, timeline (through June 2027), and the three‑theme scoring methodology:
     • Favorable development economics: parcel size and utilization (underused parcels preferred).
     • Land suitability: infrastructure capacity, natural hazard risk, physical constraints.
     • Advances community goals: walkability, proximity to transit, parks, jobs, grocery stores, schools.
   • The methodology was applied to all candidate non‑residential parcels; scores were mapped. Higher‑scoring clusters emerged in: eastern Cruise Way, Boons Ferry/Lakeview Boulevard, Westlake Grove, and First Edition/Downtown. Lower‑scoring areas included Mountain Park, McVay, Foothills, and the former Marylhurst campus.
2. Commission Discussion on Methodology
   • Commissioner Guinea asked whether landowner interest is considered. Staff noted it is not part of the current methodology but will be addressed through stakeholder interviews with large property owners. Commissioner Guinea suggested a survey to gauge owner interest.
   • Commissioner Call questioned the minimum parcel size for viable redevelopment and whether very small parcels should be excluded. The consultant explained that smaller parcels are scored lower but are not excluded because they can be assembled over time.
   • Commissioner Sly raised a concern about underutilized commercial space, questioning why the city is not first trying to fill office vacancies (e.g., the 20% vacancy on Meadows Road). Staff noted a separate economic development strategy is being drafted to address that issue.
   • Commissioner Tween asked about the logic of equal weighting across the three themes. Staff responded that the equal weighting serves as a neutral baseline, and input from the commission, council, and public will inform any adjustments. Several commissioners supported keeping equal weighting until more public feedback is gathered.
   • Commissioner Avishon noted that market‑driven development is already occurring in the identified high‑scoring areas, validating the methodology. He also cautioned against re‑zoning western Cruise Way due to the presence of major office employers (e.g., Yakima headquarters) and supported preserving industrial land on lower Boons Ferry.
   • Commissioner Guinea emphasized that rezoning only enables development, it does not guarantee it, and that larger parcels attract developers more effectively, though smaller infill projects are also possible.
   • Commissioner Avishon and others reiterated that the project is not about forcing changes but about expanding long‑term options; the city wants to maintain local control over land use rather than have state mandates.
3. Public Open House Planning
   • The first public open house is planned for early November 2026. Commissioners advised that the open house should clearly communicate that the project does not force anyone to change current uses or displace businesses, and that the goal is to raise the theoretical housing capacity to meet identified needs. Emphasizing local control and the connection to the Housing Needs Analysis and Housing Production Strategy was also recommended.

Key Outcomes

• The commission expressed general support for the draft methodology and for proceeding with the four identified high‑scoring areas (eastern Cruise Way, Boons Ferry/Lakeview Boulevard, Westlake Grove, First Edition/Downtown) as focus areas for further study.
• Lower‑scoring areas (Mountain Park, McVay, Foothills, Marylhurst campus, western/central Cruise Way) were set aside for potential master planning efforts rather than near‑term rezoning.
• No formal vote was taken; the feedback will inform the project team’s revisions and presentation to city council.
• The commission did not direct a change in the equal weighting of the three themes, but agreed to gather public input before finalizing.
• Schedule update: the next commission work session is October 26, 2026 (Foothills schematic plan). The November 9 meeting is canceled; the November 23 meeting will include the code audit work session and work plan review.