Lake Oswego Planning Commission Work Session: Foothills District Plan Update (October 26, 2026)

The Lake Oswego Planning Commission convened on Monday, October 26, 2026, for a work session primarily focused on the Foothills District Plan Update (PP 25-0005), Work Session #7. The meeting included updates on city council activities, project engagement, and a detailed presentation on the evolving schematic plan for the district's redevelopment.

Consent Calendar

• The Commission unanimously approved the meeting minutes from October 12, 2026, as written.

Public Comments & Testimony

• No members of the public provided oral comment during the open comment period or signed up to speak on the work session agenda item.

Discussion Items

City Council Update Councilor Burdick provided an update on recent council activities, including the start of new City Manager Denzel Maxwell, a tight but stable city budget, and a planned 28% one-time rate increase for the new wastewater treatment plant (Jacobs design-build-operate), which was chosen over smaller incremental increases as a better long-term financial decision. Council also received updates on the South Shore Fire Station, Republic Services (no rate increase), the communication strategy, economic development, and the rezoning housing project.

Foothills District Plan Update (Work Session #7) Jason Graff (First 40 Feet) and Eric Olson (Long Range Planning Manager) led the presentation.

Vision and Process: The project vision was condensed to: "the district will complete downtown's connection to the Willamette River, and it's going to create a vibrant waterfront district that extends the civic heart of Lake Oswego." The framework plan process is at the schematic stage, with technical analysis ongoing.

Engagement and Technical Coordination: Olson reported extensive community engagement, including three Community Advisory Committee (CAC) meetings, an open house in the Foothills district (50 attendees), a farmers market booth, and ongoing technical meetings with ODOT (State Street Special Transportation Area), the Tryon Creek Watershed Council (fish passage/culvert project), the Willamette Shoreline Trolley Consortium, PGE (substation consolidation), and City Parks.

Key Development Moves: Graff introduced eight key elements of the schematic plan:

1. State Street Gateway: Proposals for improved crossings at B Avenue (walk/bike bridge), A Avenue (potential elevator/landing), and the lower Millennium Plaza. Commissioner Sly noted the "fantasy" of the A Avenue landing, highlighting land acquisition and rising property values as significant hurdles.
2. The Grand Connection: A central multimodal street with a 74-foot right-of-way, featuring two travel lanes, parallel parking, separated bike facilities, and generous pedestrian zones. The potential for future pedestrianization was discussed.
3. Park Plaza & Active Waterfront: A new urban plaza additive to Foothills Park, designed to host festivals and events. Commissioner Avison questioned how this space would differentiate itself from Millennium Plaza. Staff noted it would be a more waterfront-oriented space.
4. Development Capacity & Character: The schematic currently envisions approximately 1,300 residential units and 30,000 square feet of retail. Building types include townhomes, podium buildings, and a small tower. Design priorities include the Foothills Mixed-Use Zone, building stepbacks, and usable "fifth facade" rooftops.
5. Housing Affordability: Eric Olson reviewed the Housing Action Plan, noting a city need for approximately 2,000 units over 20 years. Chair Najok clarified that affordable housing is defined by HUD percentages of Area Median Income (AMI), citing low-income (60% or below), workforce (80-120%), and market rate (above 120%). Tax Increment Financing (TIF) is a potential tool but staff stressed funds would be tight. The city-owned former wastewater treatment plant site was noted as a potential asset for future development.
6. Parking: The plan models roughly 1.14 structured parking spaces per unit, driven by the floodplain fill strategy. Commissioners Sly and Call raised major concerns about a lack of dedicated public parking for the waterfront and retail. Graff cited shared parking with The Foundry and on-street parking as potential partial solutions but acknowledged the challenge.
7. Trails & Lake-to-River Connection: A comprehensive trail network is planned linking Lakewood Bay to the Willamette River via the Grand Connection, Curly Q trail, and a future Tryon Creek crossing linked to the fish passage project. A State Street corridor study for bikes was identified as a future need.
8. Access & Infrastructure (North & South Portals):
   • The South Portal realigns roads to push traffic away from Oswego Point condominiums and adds parking.
   • The North Portal is deemed critical for development beyond a threshold of 700 to 900 units. Two options remain under study: a route through the public storage yard (requiring property acquisition) and a route connecting to Terwilliger Boulevard (more expensive but offering partnership potential around the Tryon Creek fish passage project). Commissioner Sly strongly urged selecting a preferred route, expressing concern about project feasibility. Staff indicated council direction is to keep both options open to leverage strategic partnerships and funding opportunities.

Key Outcomes

• The Commission generally supported the vision and design character of the schematic plan, seeing it as a natural extension of downtown.
• Significant concerns were registered regarding the feasibility of land assembly for the road network and the lack of a comprehensive public parking plan for the waterfront district.
• Staff was directed to document lessons from similar developments (e.g., Vancouver, WA waterfront) and to develop a detailed pros and cons analysis of the North Portal options.
• The project schedule was confirmed: Draft Framework Plan for Planning Commission review on February 22, 2027, City Council adoption in April 2027, and implementation code amendments beginning in June 2027, concluding by the end of 2027.
• The regular Planning Commission meeting scheduled for November 9, 2026 was canceled. The next meeting is November 23, 2026.