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Agenda Item - 2021-09-14 - Number 4.1 - Boones Ferry Road Staging Area 4.1 0), '4cr COUNCIL REPORT o OREGOt.4 Subject: Comprehensive Plan Map, Zoning Map and Text Amendments for the Boones Ferry Road Construction Staging Site (LU 21-0019/Ordinance 2872) Meeting Date: September 14, 2021 Staff Member:Scot Siegel, Director Report Date: September 3, 2021 Department: Planning and Building Services Action Required Advisory Board/Commission Recommendation ❑ Motion ❑X Approval (Planning Commission 08/23/2021) ❑X Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑ Resolution ❑ Not Applicable ❑ Information Only Comments: ❑ Council Direction The Planning Commission (6:0 vote) is recommending City ❑ Consent Agenda Council approval of LU 21-0019. Staff Recommendation: Conduct a public hearing and tentatively approve LU 21-0019, directing staff to prepare a final ordinance and findings for adoption. Recommended Language for Motion: Move to tentatively approve LU 21-0019, directing staff to prepare a final ordinance and findings for adoption. Project/Issue Relates To:City Council goals and work plan Issue before Council: OCouncil Goal: Conserve the community's quality of life by planning for change and growth. Work Plan: Investigate the feasibility of an affordable housing project on the Boones Ferry Road Staging Area property. See also City Council Resolution 21-05, approving a Memorandum of Understanding between the City, Metro and the Housing Authority of Clackamas County to explore affordable housing on the subject property. 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeosweao.citv Page 2 ISSUES BEFORE COUNCIL Whether to approve LU 21-0019/Ordinance 2872, amending the Comprehensive Plan Map, Zoning Map, and Community Development Code (LOC Chapter 50)text to allow affordable (income-targeted) housing in a subarea of the West Lake Grove Office Commercial Zone (WLG OC)—the Boones Ferry Road Construction Staging property. No development is proposed with the application. EXECUTIVE SUMMARY The application consists of three actions: 1. Change the Comprehensive Plan Map for portions of three lots from WLG R-2.5 (0.15 acre) and WLG RMU (0.10 acre) to WLG OC. 2. Change the Zoning Map for the same portions of the three lots from WLG R-2.5 (0.15 acre) and WLG RMU (0.10)to WLG OC. 3. Amend the Community Development Code (LOC Chapter 50)to establish an "Area of Residential Use Allowance in WLG OC Zone" in the vicinity of Boones Ferry Road and West Sunset Drive, and adopt the following use allowance and development standards for the subject area: • Amend LOC 50.03.002—Use Table to permit Multi-family Residential development on properties in the Area of Residential Use Allowance in the WLG OC Zone; • Amend LOC 50.03.003.2—Standards Applicable to Specific Locations, to require multi- family development in the WLG OC Zone to meet certain housing affordability criteria; • Amend LOC 50.04.001.4.b.iii—Dimensional Table for Commercial, Mixed Use and Industrial Zones: West Lake Grove Zones, to allow 5 feet additional height for multi- family development in the WLG OC Zone when located at least 80 feet from all R-7.5 zoned properties; and • Amend the purpose statement in LOC 50.05.005.6.a—Design Standards for the Office Commercial (WLG OC)Zone to include limited residential uses. The Council must conduct a public hearing before deciding on the application. For an analysis of the proposal and the applicable approval criteria, please refer to the Planning Commission Staff Report dated June 3, 2021 (Exhibit D-001).The Commission recommended approval of LU 21-0019 on August 23, 2021. For the Commission's Findings, Conclusion and Order, please refer to Exhibit B-1. Key issues considered by the Commission are summarized for Council under Discussion, below. BACKGROUND On March 16, 2021, consistent with City Council Goals and Work Plan,the Council adopted Resolution 21-05, authorizing a Memorandum of Understanding(MOU) with Metro and the Housing Authority of Clackamas County(HACC)to explore options for developing affordable housing on the subject property using funds from the Metro's Regional Housing Bond and other sources. The Resolution identifies an aspirational target of approximately 50 dwelling units on the site to serve low-income families in our community; this was the basis for evaluating the zoning amendments presented here. Subsequently, staff met with representatives of the three neighborhood associations most directly affected by the proposal (Lake Forest, Lake Grove, and Waluga) and held a focus group with housing advocates. Staff then initiated the proposed amendments,which have been reviewed and recommended for approval by the Planning Commission following public hearings this summer. 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 3 No development is proposed at this time. Once the Boones Ferry Road Phase 1 Improvement Project is complete, assuming the proposed amendments are adopted, staff would work with Metro and HACC to prepare a public engagement plan for City Council's approval.The purpose of this engagement would be to help inform a solicitation for development proposals.Any discussions regarding future disposition/sale of the property would occur separately, in due course, subject to Council's direction. DISCUSSION The Planning Commission received written testimony on LU 21-0019 from 115 people, including 44 persons supporting the proposed amendments (Exhibits G-100 to G-142), 69 against (G-200 to G-267), and two neither for nor against (G-001 and G-002). Key issues included: • Whether to amend the West Lake Grove Design District(WLG)to allow multifamily use in the WLG OC zone,which is currently limited to office, retail, and other commercial uses. o The Planning Commission found the proposal to be consistent with the applicable criteria, including the Comprehensive Plan, which was updated in 2013.The Plan envisions mixed-use development in designated Neighborhood Villages, of which WLG is one of five Neighborhood Villages.This mixed-use designation includes high-density residential uses.The Commission also found the proposal to be consistent with the Lake Forest Neighborhood Plan, including policies that direct high-density zoning to properties abutting arterial streets, in this case Boones Ferry Road. • Whether to permit 5 feet of additional building height to allow three stories of housing, retaining all other WLG development and design standards. o The Commission found the additional height was necessary to meet the WLG requirement that buildings have steeply pitched roofs, and concurred with the proposal that any additional height (above the current 35 ft limit) be setback at least 80 feet from properties zoned R-7.5 (Low Density Residential),to maintain neighborhood character. The Commission found the amendment met the applicable criteria. • Whether to require multifamily uses in the WLG OC zone to meet the City's affordable housing criteria.' o The Commission concurred with the proposal that new housing in the WLG OC zone meet affordability criteria,to ensure that new housing meets an identified need consistent with the Comprehensive Plan. 'LOC 39.06.105.5, defines affordable housing for purposes of providing an exemption from payment of system development charges. Under that code,the housing development must consist of 20 or more dwelling units where at least 10%of the units are continuously rented, leased or made available for an amount of rent plus expenses associated with occupancy, such as utilities and fees,totaling not more than 30%of the income level that is 80%of area median income according to the Clackamas County Housing Authority's income limits for affordable housing, adjusted for household size. (Ordinance 2855, 12/15/2020) 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 4 • Whether the amendments will have a negative impact on neighborhood traffic or parking. o The Commission found based on the traffic analysis submitted with the application and comments by the City's traffic engineer,that the proposed amendments (adding multifamily as an permitted use in the WLG OC zone) will not have a negative impact on traffic or parking as compared to other uses already allowed in the WLG OC zone.The Commission found the criteria were met. o The Commission noted a full traffic impact study and compliance City parking standards will be required at the time of development review for any future development of the subject property. The above summarizes some of the key issues considered by the Commission. For the Commission's adopted Findings, Conclusion and Order, please refer to Exhibit B-1. Other Considerations During the neighborhood meeting held for this application and through the Planning Commission hearing process it was evident that residents along Sunset Drive are concerned about the condition of their street and whether future development will create traffic safety issues. Although no development is proposed at this time,the Council may wish to provide staff direction at a future meeting with regard to any public engagement the Council would like the City to undertake prior to issuing a request for development proposals or agreeing to dispose of the Boones Ferry Road Staging property—provided the proposed amendments are adopted. FISCAL IMPACT The proposal is not expected to have a fiscal impact.The value of the subject property should not be diminished, as office, retail, and other commercial uses will continue to be allowed; and the allowance of multifamily affordable housing is not expected to increase the value of the land. RECOMMENDATION Conduct a public hearing and tentatively approve LU 21-0019, directing staff to prepare a final ordinance and findings for adoption. EXHIBITS This staff report and all exhibits referenced below are part of the record and can be found by visiting the land use webpage for the case file.A link is provided at the end of this report. A. Draft Ordinance A-1 Draft Ordinance 2872, 06/03/21 Attachment A: City Council Findings and Conclusions [Not yet available] Attachment B: Proposed CDC Amendments, 05/10/21 Attachment C: Proposed Comprehensive Plan Map and Zoning Map Amendments, 06/03/21 B. Findings, Conclusions and Order B-1 Planning Commission Findings, 08/23/21 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 5 C. Minutes C-1 Planning Commission Minutes, 06/14/21 C-2 Planning Commission Minutes, 07/12/21 C-3 Planning Commission Minutes, draft 07/26/21 C-4 Planning Commission Minutes, draft 08/09/21 D. Staff Reports D-1 Planning Commission Staff Report, 06/03/21 D-2 Supplemental Staff Memo, 06/10/21 E. Graphics/Plans E-001 Public Works Engineering Comments/Maps F. Written Materials F-001 Applicant's Narrative, 05/2021 F-002 Traffic Memo by Kittelson &Associates, 04/27/21 F-003 Neighborhood Meeting-Summary Notes, 05/04/21 F-004 Housing Advocates Meeting-Summary Notes, 05/05/21 F-005 Boones Ferry Road Development Capacity Study F-006 Email to Neighborhood Associations—Zoning Follow-up, 05/10/21 F-007 Supplemental Staff Memo from Engineering,07/20/21 F-008 Supplemental Staff Memo from City Attorney's Office,07/23/21 G. Letters—Public Testimony Neither for nor Against G-001 Email from R. Reeve, 05/20/21 G-002 Email from T. Lee, 06/14/21 Support G-100 Email from T. Kraemer, 06/13/21 G-101 Email from R. Launchbury, 06/13/21 G-102 Email from A. Erickson, 06/13/21 G-103 Email from J. Cockrell,06/13/21 G-104 Email from K. Griffin, 06/13/21 G-105 Email from B.Yazhari, 06/13/21 G-106 Email from A.Tompkins,06/14/21 G-107 Email from K.To, 06/14/21 G-108 Email from A. Zukas, 06/14/21 G-109 Email from K. Bloom, 06/14/21 G-110 Email from T.Atwood, 06/14/21 G-111 Email from S. Sprecher, 06/14/21 G-112 Email from S. Davis, 06/14/21 G-113 Email from M. Nielsen, 06/14/21 G-114 Email from L. Adatto, 06/14/21 G-115 Email from LOSN, 06/14/21 G-116 Email from K. Frost, 06/14/21 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 6 G-117 Email from K.Wehn, 06/14/21 G-118 Email from K. Snook, 06/14/21 G-119 Email from K. Boyle,06/14/21 G-120 Email from J. Korwin,06/14/21 G-121 Email from J. Gustafson,06/14/21 G-122 Email from J. Watson, 06/14/21 G-123 Email from H. Schrimsher,06/14/21 G-124 Email from D. Atwood, 06/14/21 G-125 Email from D. Gardner, 06/14/21 G-126 Email from C. Borduin, 06/14/21 G-127 Email from A. Sawin, 06/14/21 G-128 Email from A.Waterbury, 06/14/21 G-129 Email from B.Jenkins-Pleas, 06/14/21 G-130 Email from D. Doby, 06/14/21 G-131 Letter from R. Maese, 06/30/21 G-132 Email from T. Kohlhoff, 07/02/21 G-133 Email from M. Puhlman, 07/02/21 G-134 Email from M. Kohlhoff, 07/02/21 G-135 Email from H. Schrimsher,07/03/21 G-136 Email from M. Buck, 07/11/21 G-140 Letter from Applicant, 07/14/21 G-141 Email from W. Poinsette, 06/13/21 (previously shown in error as "Opposed"G-239) G-142 Final Written Argument from Applicant, 07/21/21 Opposition G-200 Letter from Bruni Family, 06/06/21 G-201 Email from D. Wilkinson, 06/08/21 G-202 Letter from F. Newton, 06/07/21 G-203 Email from J. Norris, 06/09/21 G-204 Email from K. Heard,06/10/21 G-205 Email from Williams-Cotten, 06/10/21 G-206 Email from C. Durkee,06/09/21 G-207 Letter from L. Andrews, 06/11/21 G-208 Email from S. Kessler, 06/11/21 G-209 Email from G. Bradley, 06/11/21 G-210 Email from B. Wilkinson, 06/11/21 G-211 Email from D. Linkfield, 06/11/21 G-212 Email from K. Gadinas, 06/13/21 G-213 Letter from E. Mawe,06/13/21 G-214 Email from K. Olson, 06/11/21 G-215 Email from A. Wong, 06/13/21 G-216 Email from S. Kessler, 06/13/21 G-217 Email from J. Wychules, 06/13/21 G-218 Email from H.Trickey, 06/13/21 G-219 Email from J. Balcom, 06/13/21 G-220 Email from S. Croft, 06/13/21 G-221 Email from M. Smith, 06/13/21 G-222 Email from L. Mraz, 06/13/21 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 7 G-223 Email from C. Bell, 06/14/21 G-224 Email from E-Spenlinhauer, 06/14/21 G-225 Email from P. Kelly,06/13/21 G-226 Email from C. Vanleeuwen,06/13/21 G-227 Email from S. Glazer, 06/14/21 G-228 Email from T.Villalobos, 06/14/21 G-229 Email from K. Wynne,06/14/21 G-230 Email from A. Ogale, 06/14/21 G-231 Email from G. Bradley, 06/14/21 G-232 Email from G. Kempton, 06/14/21 G-233 Email from A. Lightcap, 06/14/21 G-234 Letter from T. Cutler, 06/14/21 G-235 Email from S. Kelly, 06/13/21 G-236 Email from P. Kiessling, 06/13/21 G-237 Email from B. Linkfield, 06/13/21 G-238 Letter from D. Bice,06/13/21 G-239 Email from W. Poinscttc,06/13/21 (Moved to "Support"and Relabeled G-141) G-240 Email from T. Heath, 06/14/21 G-241 Letter from T. McFadden, 06/14/21 G-242 Email from S. Meckel, 06/14/21 G-243 Email from S.Webb, 06/14/21 G-244 Email from N. Heath, 06/14/21 G-245 Email from M. Beirwagen, 06/14/21 G-246 Email from L. Heath,06/14/21 G-247 Email from G. Heath, 06/14/21 G-248 Letter from K. McFadden,06/12/21 G-249 Letter from J. Howsley w-Jordan Ramis f-Renaissance, 06/14/21 G-250 Email from B. Hoyt, 06/14/21 G-251 Email from B. Sirianni,06/14/21 G-252 Letter from C. Wheeler and A. Ogale, 06/14/21 G-253 Email from A.Wong, 06/14/21 G-254 Bus Schedule from Jordan Ramis f-Renaissance, 06/22/21 G-255 Letter from C-Krebs w-Lake Forest NA, 07/12/21 G-256 Letter from C. Krebs,07/12/21 G-258 Letter from G. McDowell w-LFNA, 07/14/21 G-259 Email from J. Steinbock, 07/14/21 G-261 Email from H. Bradley, 07/14/21 G-262 Letter from C. Krebs,07/14/21 G-263 Email from G. Bradley, 07/14/21 G-264 Email from G. Bradley, 07/14/21 G-265 Email from J. Wychules, 07/14/21 G-266 Email from M. Beirwagen, 07/14/21 G-267 Email from S. Croft,07/14/21 G-268 Letter from T. Cutler 08/09/21 Copies of these exhibits were distributed to the Commission and are available online at the following link: https://www.ci.oswego.or.us/boc pc/lu-21-0019-community-development- code-amendments-and-map-amendments-boones-ferrv-road-staging 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city