Redevelopment Agency

Project Update – May 19, 2026

In May 2026, the City Council, acting in capacity as the Lake Oswego Redevelopment Agency (LORA) Board, unanimously approved the sixth amendment to the Disposition and Development Agreement (DDA) with Urban Development + Partners (UDP).  The DDA states that LORA will sell three parcels on the north side of B Avenue, starting at N State Street and heading west, to UDP to develop:

• Two 4-story mixed-use residential buildings with 66 apartments, including at least eight affordable units, as well as ~5,700 square feet of ground floor commercial
• 4-story boutique hotel with 88 rooms and a thermal spa and restaurant
• Both on-street and off-street parking for all

Given the updated schedule, along with the sale of the two parcels slated for housing to UDP in October 2026, it is expected that demolition will begin Fall 2026 for the housing component, with construction finished by summer 2029.

Within the same amendment, the timing for the hotel project was separated.  It has been agreed that UDP will meet with the LORA Board by the end of 2026 to either share that funding has been fully identified for the hotel and they are ready to move forward with permitting and construction, or UDP will present alternative options for what can be built on that site in today’s market. 

The community as a whole will benefit from the redevelopment of these under-utilized properties in the downtown core by the addition of major streetscape improvements; additional housing options; direct and indirect jobs created; and the economic benefits related to the commercial development, new housing and boutique hotel.  The development will enhance the pedestrian-friendly downtown and complement the “South Anchors” of Lake View Village, the Windward and Millennium Plaza Park.