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Agenda Item - 2021-10-05 - Number 8.2 - Adopting Findings and Ordinance Enactment for LU 21-00019 / Ordinance 2872 8.2 ��c E 4... COUNCIL REPORT NC ___ o QREGoNI' Subject: Adoption of Findings and Ordinance enactment for Comprehensive Plan Map, Zoning Map and Text Amendments - Boones Ferry Road Construction Staging Site (LU 21- 0019/Ordinance 2872) Meeting Date: October 5, 2021 Staff Member: Scot Siegel, Director Report Date: September 27, 2021 Department: Planning and Building Services Action Required Advisory Board/Commission Recommendation ❑X Motion ❑X Approval (Planning Commission) ❑ Public Hearing ❑ Denial ❑X Ordinance ❑ None Forwarded ❑ Resolution ❑ Not Applicable ❑ Information Only Comments: ❑ Council Direction ❑ Consent Agenda Staff Recommendation: Final approval of LU 21-0019 and enactment of Ordinance 2872. Recommended Language for Motion: Move to adopt the Findings for LU 21-0019 and enact Ordinance 2872. Project/ Issue Relates To: Reuse of the Boones Ferry Road construction staging property and meeting an identified need for low-income housing. Issue before Council: ❑X Council 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.city Page 2 BACKGROUND This application is for quasi-judicial amendments to the Comprehensive Plan Map, Zoning Map, and Community Development Code to allow multifamily housing in a subarea of the West Lake Grove Office Commercial Zone, subject to specific development standards, to meet an identified need for low-income housing in Lake Oswego. The Planning Commission held public hearings on June 14, 2021, July 12, 2021, July 26, 2021, and August 9, 2021, and recommended City Council approve the application. The Commission adopted their Findings, Conclusion and Order on August 23, 2021. The City Council held a public hearing and tentatively approved the request on September 14, 2021, directing staff to return with a final ordinance and findings on October 5, 2021. DISCUSSION The attached Findings and Conclusion, and the final Ordinance, should reflect the City Council's decision on September 14, 2021. ATTACHMENTS A. Ordinance 2872 with Exhibits: 1. City Council Findings and Conclusions 2. Comprehensive Plan Map 3. Zoning Map 4. Amendments to Chapter 50 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city ATTACHMENT A ORDINANCE 2872 AN ORDINANCE OF THE CITY OF LAKE OSWEGO AMENDING THE COMPREHENSIVE PLAN MAP AND ZONING MAP IN THE SOUTHWEST CORNER OF BOONES FERRY ROAD AND WEST SUNSET DRIVE TO REZONE APPROXIMATELY 0.10 ACRES FROM WLG-RMU TO WLG-OC, AND APPROXIMATELY 0.15 ACRES FROM WLG-R-2.5 TO WLG-OC; AND AMENDING THE COMMUNITY DEVELOPMENT CODE (LOC CHAPTER 50) TO ADD AFFORDABLE MULTI-FAMILY HOUSING AS A PERMITTED USE IN THAT PORTION OF THE WLG-OC ZONE; AND ADOPTING FINDINGS (LU 21- 0019). WHEREAS, notice of the public hearing for consideration of this Ordinance was duly given in the manner required by law; and WHEREAS, a public hearing was held before the Planning Commission on June 14, 2021, at which the staff report, testimony, and evidence were received and considered; and WHEREAS, the Planning Commission has recommended that LU 21-0019 be approved by the City Council; and WHEREAS, a public hearing on LU 21-0019 was held before the City Council of the City of Lake Oswego on September 14, 2021, at which the staff report, testimony, and evidence were received and considered; and WHEREAS, the Council finds that the proposed amendments to the Comprehensive Plan Map, Zoning Map, and Community Development Code are consistent with all applicable Comprehensive Plan policies, Metro Code requirements, and Statewide Planning Goals and Statutes; and WHEREAS, the Council finds that the amendments provide an opportunity towards meeting the City's housing needs for multi-family housing consistent with the Comprehensive Plan Complete Neighborhoods and Housing Chapter. The City of Lake Oswego ordains as follows: Section 1. The City Council hereby adopts the Findings and Conclusions (LU 21-0019), attached as Exhibit 1. Section 2. The Lake Oswego Comprehensive Plan Map and Lake Oswego Zoning Map are hereby respectively amended to change the plan designations and zoning of the following referenced properties as follows, and as shown on Exhibit 2 (Comprehensive Plan Map) and Exhibit 3 (Zoning Map): Ordinance 2872 ATTACHMENT A/PAGE 1 OF 3 LU 21-0019 Location of Property: Current Proposed Comprehensive Address Tax Map/Lot Acres Comprehensive Plan Map/ Plan Map/ Zone Map Zone Map 21E07DC07400 0.16 WLG-OC No Change 5126 West Sunset Dr 0.05 WLG-R-2.5 WLG-OC 21E07DC07300 0.11 WLG-OC No Change 5110 West Sunset Dr 0.10 WLG-R-2.5 WLG-OC 16719 Boones Ferry Rd 21E07DC07200 0.34 WLG-OC No Change 16731 Boones Ferry Rd 21E07DC09200 0.18 WLG-OC No Change 16745 Boones Ferry Rd 21E07DC09100 0.17 WLG-OC No Change 21E07DC09000 0.17 WLG-OC No Change 16759 Boones Ferry Rd 0.10 WLG-RMU WLG-OC Section 3. Chapter 50 of the Lake Oswego Code is hereby amended by adding the new text shown in double underlined type and deleting text shown in strikcthrough type in Exhibit 4. Section 4. Severability. The provisions of this ordinance are severable. If any portion of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. Section 5. Effective Date. As provided in Section 35.C. of the Lake Oswego Charter, this ordinance shall take effect on the 30th day following enactment. Enacted at the meeting of the Lake Oswego City Council of the City of Lake Oswego held on the 5th day of October, 2021. AYES: NOES: ABSENT: ABSTAIN: EXCUSED: Joseph M. Buck, Mayor Ordinance 2872 ATTACHMENT A/PAGE 2 OF 3 LU 21-0019 Dated: ATTEST: Kari Linder, City Recorder APPROVED AS TO FORM: Jason Loos, City Attorney Ordinance 2872 ATTACHMENT A/PAGE 3 OF 3 LU 21-0019 EXHIBIT 1 1 BEFORE THE CITY COUNCIL 2 OF THE CITY OF LAKE OSWEGO 3 COMPREHENSIVE PLAN MAP AND ZONING MAP LU 21-0019 AMENDMENTS TO REDESIGNATE 0.15 ACRE OF 4 WLG R-2.5 AND 0.10 ACRE WLG RMU TO WLG FINDINGS & CONCLUSIONS OC, AND CDC AMENDMENTS TO ALLOW 5 MULTI-FAMILY RESIDENTIAL USE IN THE WLG OC ZONE LIMITED TO THE SUNSET DR-BOONES 6 FERRY RD SUBAREA AND SUBJECT TO SPECIFIC DEVELOPMENT STANDARDS; ORDINANCE 2872 7 8 9 NATURE OF PROCEEDINGS 10 This matter came before the Lake Oswego City Council on the recommendation of the 11 Planning Commission for quasi-judicial amendments to the Community Development Code 12 amending: 13 • Comprehensive Plan Map for portions of three lots, from WLG-R 2.5 (0.15 acre) and 14 WLG-RMU (0.10 acre) to WLG-OC; 15 • Zoning Map for the same portions of the three lots, from WLG-R 2.5 (0.15 acre) and 16 WLG-RMU (0.10 acre) to WLG-OC; 17 • Community Development Code (LOC Chapter 50) to establish an "Area of Residential 18 Use Allowance in WLG OC Zone" and adopt the following use allowance and 19 development standards for the Area: 20 o Amend LOC 50.03.002 - Use Table to permit Multifamily Residential 21 development subject to a use-specific standard requiring inclusion of affordable 22 housing on properties in the Area of Residential Use Allowance in WLG OC Zone; 23 o Amend LOC 50.04.001.4.b.iii - Dimensional Table for Commercial, Mixed Use, 24 and Industrial Zones: West Lake Grove Zones to allow 5 feet additional height for 25 multifamily development in the WLG-OC Zone when located at least 80 feet from 26 all R-7.5 zoned properties; and Page 1— FINDINGS & CONCLUSIONS (LU 21-0019 / ORDINANCE 2872 ) JASON LOOS LAKE OSWEGO CITY ATTORNEYS OFFICE PO BOX 369/380 A AVENUE LAKE OSWEGO,OREGON 97034 503.635.0225/503.699.7453(F) 1 o Amend the purpose statement in LOC 50.05.005.6.a - Design Standards for the 2 Office Commercial (WLG-OC) Zone to include limited residential uses. 3 HEARINGS 4 The Planning Commission held public hearings and considered this application at its 5 meetings held on June 14, 2021,July 12, 2021, July 26, 2021, and August 9, 2021. The City 6 Council held a public hearing to consider the Planning Commission's recommendation on 7 September 14, 2021. 8 CRITERIA AND STANDARDS 9 A. City of Lake Oswego Community Development Code [Chapter 501: LOC 50.07.003.1.b Burden of Proof 10 LOC 50.07.003.7 Appeals LOC 50.07.003.15 Major Development (excluding subsection d.ii) 11 LOC 50.07.003.5 Conditions of Approval LOC 50.07.003.3 Notice of Public Hearing 12 LOC 50.07.003.4 Hearings before a Hearings Body LOC 50.07.003.16.a Legislative Decision Defined (Quasi-judicial Comp. Plan Map, Zone 13 Map, and CDC Amendments to be processed via Major Developments Procedures) 14 LOC 50.07.003.16.c Required Notice to DLCD LOC 50.07.003.16.d Planning Commission Recommendation Required 15 LOC 50.07.003.16.e City Council Review and Decision 16 B. City of Lake Oswego Comprehensive Plan Policies: 17 Land Use Planning Policies A-1.b, A-1.c, A-1.d, A-1.e, A-1.f, A-1.g, A-1.h, A-2, A-3, A-5, A-6, B-10, B-11, 18 C-1, C-3, C-5, D-1, D-2, E-1, E-2, E-3.a-c 19 Community Culture (Civic Engagement) Policies 1, 2, 4, 5, and 9 20 Inspiring Places and Spaces 21 Goal 1: Policies 1.b, 2, 3, 7 Goal 2: Policies 3, 4 22 Complete Neighborhoods and Housing [Buildable Lands and Housing Needs Analysis] 23 Policies A-1.d, A-3, A-4, A-5, B-1, and C-1 24 Connected Community Policies B-1, B-2, B-3, C-1 (maintain LOS for arterial street intersections during peak 25 hours), C-6, C-8, F-2, and G-3 26 Page 2- FINDINGS & CONCLUSIONS (LU 21-0019/ORDINANCE 2872 ) JASON LOOS LAKE OSWEGO CITY ATTORNEYS OFFICE PO BOX 369/380 A AVENUE LAKE OSWEGO,OREGON 97034 503.635.0225/503.699.7453(F) 1 Economic Vitality Policies A-2, A-8.c, B-1 2 Lake Forest Neighborhood Plan 3 Goal 1 Land Use Planning: Policy 2; Policies 4.a, 4.b, 4c, 4d Goal 6 Policy 1 Sound Quality 4 Goal 9 Economic Development and Commercial Lands, Policy 3 Goal 10 Housing/Residential Land Use, Policy 4 5 C. Oregon Statewide Planning Goals 6 Goa 1: Citizen Involvement Goa 2: Land Use Planning 7 Goa 5: Open Space, Scenic and Historic Areas Goa 7: Areas Subject to Natural Hazards 8 Goa 9: Economic Development Goa 10: Housing 9 Goa 12: Transportation Goa 14: Urbanization 10 D. METRO Urban Growth Management Functional Plan 11 Chapter 3.07 12 Title 7: Housing Choice (Title 7, Sections 3.07.710 through 3.07.750) 13 E. Transportation Planning Rule (Chapter 660, Division 12) 14 OAR 660-12-060(1) and (2), Plan and Land Use Regulation Amendment 15 FINDINGS AND REASONS 16 As findings supporting its decision, the City Council incorporates the Planning 17 Commission Staff Report dated June 3, 2021 (with all exhibits attached thereto), the 18 Supplemental Staff Memos (with all exhibits attached thereto) dated June 10, 2021 and July 20, 19 2021, Applicant's Rebuttal Evidence (with all exhibits attached thereto) dated June 14, 2021, 20 and Applicant's Final Written Argument (with all exhibits attached thereto) dated July 21, 2021. 21 The issues and arguments raised by opponents (Exhibits G-268 through G-271 and G-272 22 through G-281) during the City Council hearing on September 14, 2021, were previously raised 23 before the Planning Commission and addressed in the Commission's Findings, Conclusion and 24 Order dated August 23, 2021. 25 ///// 26 ///// Page 3— FINDINGS & CONCLUSIONS (LU 21-0019 / ORDINANCE 2872 ) JASON LOOS LAKE OSWEGO CITY ATTORNEYS OFFICE PO BOX 369/380 A AVENUE LAKE OSWEGO,OREGON 97034 503.635.0225/503.699.7453(F) 1 CONCLUSION 2 The City Council concludes that LU 21-0019 complies with all applicable criteria and 3 should be approved. The Council also concludes that proposed Ordinance 2872, which 4 implements LU 21-0019, should be enacted. 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Page 4— FINDINGS & CONCLUSIONS (LU 21-0019/ORDINANCE 2872 ) JASON LOOS LAKE OSWEGO CITY ATTORNEYS OFFICE PO BOX 369/380 A AVENUE LAKE OSWEGO,OREGON 97034 503.635.0225/503.699.7453(F) 06) '+‘ J —‘ ..‘ 01 0 R -1. 5 W zai@ R-2.5 �� West Sunset Dr �� �cs ������01 ����9 WLGOC , N.) --1 cn c) ....1. 0-) cp ...4 ..4 01 W � 0) ___‘ 0) z (5) cn cn /67nN *AWLGRMU c� ���a � 6 N e c5) 01 -: co ...4 6,1 0 , - (y,-) \\ • N o (5) t,3 tow Rom\ 40 Boones Ferry Road Rezoning \\ \ ^O� Proposed Comp Plan i �t o so ,00 ,so zoo et N. �� ,\ - ' • N- (TOORDINANCE2872)/PAGE Fe n N kJI °c5' R-7.5 w u.„ � WA@ ;N. �6' R-2.5 West Sunset Dr � � \� 7 WLGOC/ co ,�� 01 cn 6�7 9 c) - N.) --1 , . 0) CD CD C5) C31 W 0) , ___‘ 0) / '‘ 'N ' '' ‘roan 01 6 16726 x ) p- WIIGAIMIld ,„ •:: ...4 6`z, ` \ e(e) '4 Boones FerryRoad Rezoning \� \\� co,, �� Existing Comprehensive Plan " o so 1oo 1so zooFe\\\\ et 613/2021 .-.‘ (.31 oi_L N 9'*tk. 1 n � GO WLG R-25 °•:1. -R--7-.-5 ,N ot:_k., --,,..k - N-V \\ 4NL VitLGAX o \\ R � 9 a � N,TitGtRM U a 16726\ coo \-it-,4, N cr 6‘09f) ;` Boones Ferry Road Rezoning Proposed Zoning Ni E�WLG R-2 . 5 ,� 3 3 Raoao�NAo. � s.e n � CO � JG \ ' -.•0::\\_ Sks R-7. 5 �s .\ .R-2.5— . - •, ,:,, ..,, =t4- oi _, , oi 4-o, A al ...k _‘ -** Wi& e C , -%.,- ,. V11711GARMIU � . • /6726 � 6>) \\ Boones Ferry Road Rezoning 44 Existing Zoning Ex WLG R-25 F Ni DRAFT 05/10/2021 Exhibit 4. Proposed Development Code Amendments The following Lake Oswego Development Code modifications are listed below. Recommended changes are in an adoption-ready format; text that is recommended to be added is shown as italicized underlined, and text recommended to be removed is shown in italicized str�„«. o 50.03.002 - Use Table • Permit multifamily residential within the WLG-OC Zone, limited to the Boones Ferry Road-West Sunset Drive Site (identified in 50.02.003.2). o 50.02.003.2 - Standards Applicable to Specific Locations • Add Boones Ferry Site as a specific location where multifamily residential is allowed. o 50.04.001.4.b.iii - Dimensional Table for Commercial, Mixed Use, and Industrial Zones: West Lake Grove Zones • Allow 5 feet additional height for multifamily development in the WLG- OC Zone when located in the area of residential use allowance and located at least 80 feet from all R-7.5 zoned properties. o 50.05.005.6.a - Design Standards for the Office Commercial (WLG-OC) Zone • Change the purpose statement of the Design Standards to include limited residential uses. LU 21-0019 Page 1 of 5 DRAFT 05/10/2021 Proposed Change 1: 50.03.002 USE TABLE 3. COMMERCIAL, MIXED USE, INDUSTRIAL, AND SPECIAL PURPOSE DISTRICTS USE TABLE TABLE 50.03.002-2: COMMERCIAL, MIXED USE, INDUSTRIAL AND SPECIAL PURPOSE DISTRICTS USE TABLE Commercial, Mixed Use, Industrial Special Use Specific Purpose Standards Use Use Type WLG [4] Category NC [8], [9] GC HC [9] OC [8] EC [8] CR&D MC R- FMU [4], [7] I 15][ Cl �3] PNA OC RMU 2.5 RESIDENTIAL USES Residential P P [1 P P PP Pf111 P [1] P [2] P P WLG use at R-5 0] zones: 50.03.003.1. density or a and Household greater 50.03.003.2.d; NC, Living GC, EC and CI zones: 50.03.003.2 Dwelling, P P [1 P PPP P live-work 0] Notes: f111 Limited to multifamily residences in the vicinity of Boones Ferry Road and West Sunset Drive, as deaicted on Fiaure 50.03.003-A.1. LU 21-0019 Page 2 of 5 DRAFT 05/10/2021 Proposed Change 2: 50.03.003 USE-SPECIFIC STANDARDS 2. RESIDENTIAL USES IN COMMERCIAL AND SPECIAL PURPOSE ZONES d. WLG OC Zone Residential uses are limited to multifamily residences in the vicinity of Boones Ferry Road and West Sunset Drive, as depicted on Figure 50.03.003-A.1, and shall consist of 20 or more 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. Figure 50.03.003-A.1:Area of Residential Use Allowance in WLG OC Zone ti e est Sunset Dr - set I od O I G b�PrOr �7pper 1114111111111i pr uppeC LU 21-0019 Page 3 of 5 DRAFT 05/10/2021 Proposed Change 3: 50.04.001 Dimensional Table 4. Commercial, Mixed Use, and Industrial Zones d. West Lake Grove Zones iii. WLG Office Commercial (WLG OC) (1) Site Development Limitations (a) Setbacks Buildings shall be set back at least six ft. from the sidewalk along Boones Ferry Road (see Figure 50.05.005-D, WLG Street Pedestrian Facilities and Pathways). The provisions of LOC 50.04.003.1, Additional Dimensional Exceptions, shall not be applied in this zone. (b) Height of Structures (i) Primary Structures.The maximum height of any primary structure shall not exceed 35 ft., except an additional5 ft. of height is permitted for multifamily development when located in the Area of Residential Use Allowance, as depicted in Figure 50.03.003-A.1, and at least 80 feet from all R-7.5 zoned properties. The maximum height of the wall plane shall be no greater than 30 ft. measured from grade at the exterior wall of the building to the gutter line. (ii) Accessory Structures. The height of the roof form of the primary structure or 24 ft., whichever is less. LU 21-0019 Page 4 of 5 DRAFT 05/10/2021 Proposed Change 4: 50.05.005 West Lake Grove Design District 6. DESIGN STANDARDS FOR THE OFFICE COMMERCIAL (WLG OC) ZONE a. Purpose This zone is intended to provide for a mix of professional office,an-el neighborhood commercial uses, and limited multifamily residential uses, to serve the frequently reoccurring needs of the Lake Grove and Rural Lake Grove Neighborhoods and serve as an activity focus for the West Lake Grove Design District. LU 21-0019 Page 5 of 5