North Anchor Project

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. 

Project Background / History Summary: 

2004

• The East End Redevelopment Plan identified the North Anchor site as a priority redevelopment area.

2010–2011

• LORA explored a mixed-use project anchored by a new public library.
• Staff were authorized to begin detailed planning.
• LORA began acquisition of the four parcels comprising approximately 46,800 square feet.

2012–2013

• Voters rejected a $14 million library bond.
• LORA shifted to pursuing a mixed-use project without a library.

2015

• Community forums gathered public input on future uses.
• A Request for Proposals (RFP) was released seeking a development partner, emphasizing mixed-use development.

2016

• The initial proposal, featuring mixed-use development including a boutique hotel, above ground parking and ground floor retail was later withdrawn.

2019

• LORA issued a new RFP requiring mixed use development that included a boutique hotel

2020

• Four proposals were evaluated.
• UDP was unanimously selected as the preferred developer.

2021

• LORA and UDP executed the original Disposition and Development Agreement (DDA) with construction initially expected to begin in 2023.

2022–2025

• Multiple amendments extended deadlines due to project delays.
• In late 2025, two parcels designated for mixed-use housing were sold to UDP.

2026

• The sixth amendment revised the schedule, separated the hotel timeline from the housing project, and established new milestones.

Applicable projects as described in the East End Redevelopment Plan.

Project H - First Street North Anchor

The block comprising the northeast and northwest corner of 1st Street and B Avenue, should be considered a key site for redevelopment as an anchor for the 1st Street compact retail core. A mixed-use project could include a public library and public parking. A library-based project with public parking would serve as both a civic anchor and economic catalyst for downtown retail and contribute to foot traffic and vitality. A new public library and public parking would be an amenity, adding to the attractiveness of the Redevelopment Area as a residential or business location and stimulating redevelopment of underdeveloped properties. Redevelopment could also include the 1st Street right-of-way. Potential acquisition of tax lots 400, 500, 600, 1100 and 1200 of Tax Map T2S R1E 03DD and possible resale to a developer.

Project T - Hotel

The project will encourage development of a new, high quality boutique style hotel within the District. The hotel is expected to be within a range of 30 to 70-units. Properties which provide lake, river, or mountain views and which are located within 400' of restaurants, transit, and retail shopping or other significant amenities will have substantial preference for siting. The project may include land assembly, relocation and infrastructure improvements.