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Res. 2265 - Establishing Council Objectives & Benchmarks for any Future Amendment of the Urban Growth Boundary Pursuant to HB4035 (2026) COUNCIL BILL NO. 3306 RESOLUTION NO. 2265 A RESOLUTION ESTABLISHING COUNCIL OBJECTIVES & BENCHMARKS FOR ANY FUTURE AMENDMENT OF THE WOODBURN URBAN GROWTH BOUNDARY PURSUANT TO HOUSE BILL 4035 (2026) WHEREAS, in 2023, Oregon's Governor signed Executive Order 23-04, declaring a severe housing shortage and setting a housing production goal of 36,000 housing units per year for the State of Oregon over the next ten years; and WHEREAS, helping to address the housing shortage and building enough housing to meet demand will improve housing affordability for all Oregonians, including existing Woodburn residents; and WHEREAS, the City Council recognizes that housing production is often reliant upon the availability of developable land; and WHEREAS, Oregon HB 4035 (2026) was recently enacted into law and expands and expedites the process for qualifying cities to make a one-time expansion of their Urban Growth Boundary ("UGB"); and WHEREAS, The City of Woodburn is a "qualifying city" that is eligible to add a site to its UGB under the processes established by SB 1537 (2024) and HB 4035; and WHEREAS, at its meeting on March 23, 2026, the City Council adopted Resolution 2260, which directed staff to initiate the procedural steps outlined in House Bill 4035 to complete a one-time site-specific urban growth boundary (UGB) expansion; and WHEREAS, City staff have initiated discussions with an identified developer (Mountainview Land Company, LLC) concerning a possible UGB expansion under the HB 4035 process, which would include an approximately 120-acre site commonly known as the "Mountainview Site" (tax lot nos. 051 W06C000100, 051 W06C000200, and 051 W06C000300, and 051 W06D000400)("Site"); and WHEREAS, while the City acknowledges the unique opportunity it has for this expedited one-time UGB amendment that would include an affordable housing component, the City also affirms its budgetary policy position that it will not subsidize the development costs of new housing construction; and WHEREAS, the City Council recognizes that to ensure a future UGB expansion meets Woodburn's housing needs, the developer of said site must provide meaningful and adequate assurances that they are willing and able to commence development and meet the standards set by the Oregon Legislature (HB 4035 and SB 1537), the Woodburn Comprehensive Plan and Development Ordinance, and Woodburn engineering standards, without undue delay; and WHEREAS, adoption of this Resolution is not a land use decision, but rather is a policy directive intended to capture the intent of the City Council; and WHEREAS, in considering an application submitted under the HB 4035 process, the City Council hereby establishes and adopts the below stated objectives and benchmarks for future UGB expansion; NOW, THEREFORE, THE CITY OF WOODBURN RESOLVES AS FOLLOWS: Section 1. Preliminary Site & Development Plan. Unless otherwise provided for through the negotiation and approval of a Development Agreement as provided for under Section 4, prior to the City Council processing an application for- and completing a one-time expansion of its UGB under the HB 4035 process, the proposing developer ("Developer Applicant") for the subject Site must demonstrate or provide the City with the following: (A) Preliminary Engineering Plans for UGB-Expansion Area. The Developer Applicant shall provide the City with preliminary engineering plans for infrastructure, including for water, wastewater, storm water, and transportation networks, which address how the Site will be served, assuming the minimum density standards required under SB 1537. Such plans should include a feasibility study and be "adoption ready," meaning they include a specific list of capital improvement projects and needed infrastructure upgrades for serving the Site, along with preliminary cost estimates for the subject improvements (e.g. Boones Ferry/Crosby Road Intersection, Vanderbeck Pump Station upgrades, etc.). The Developer Applicant should coordinate the formation of such plans with City staff to ensure the plans would otherwise conform with the City's Comprehensive Planning standards. (B) Preliminary Development Phasing Plan. The Developer Applicant shall provide the City with a preliminary development phasing plan that specifies: (i) the planned housing/unit densities per phase of the project; (ii) the distribution or location of affordable housing throughout the site; (iii) the distribution of open space; (iv) the location of any commercial development (if applicable); and (v) key roadways and trail plans that include build-out details per phase of the project. Page 2- Council Bill No. 3306 Resolution No. 2265 (C) Preliminary Open Space, Recreation, and Transportation Plan. The Council acknowledges that open space, recreation, and transportation network plans are essential components for a future UGB expansion, as required under SB 1537. Therefore, the Developer Applicant shall provide, in addition to the phasing details described above, planning-level details related to both public and private open space that will be available throughout the site, a recreation plan that includes/lists amenities that will be available to residents throughout the development, and details regarding the transportation network that will provide diverse transportation options throughout the site, including walking/bike paths. Any transportation and trail plans proposed should also include proposed cross-sections that align with current City planning requirements/codes. (D) Preliminary Commercial Plan. If applicable, the Developer Applicant shall provide information about possible commercial components for the site, including details about possible mixed-use development, the location of commercial component(s), and scale/size of any commercial component(s), which are intended to meet the "smaller scale" standards of SB 1537. Section 2. Essential Housing Elements of Future Expansion. SB 1537 and HB 4035 require certain essential master plan elements for sites eligible for the expedited UGB process. The City desires to further define those elements or expectations around those elements as follows: (A) Diversity of Housing Types & Zoning. As a means to ensure the density standards for the Site adequately meet SB 1537 requirements and the City's Comprehensive Plan and Development Ordinance goals related to needed housing, the City expects the Developer Applicant to coordinate with staff on selecting the appropriate zoning for the property, which may include Nodal Multi-Family Residential ("RMN") and Neighborhood Nodal Commercial ("NNC")(as applicable). With the provided zoning designation, the City anticipates the Developer Applicant to plan- or provide for a variety of housing types, including middle housing, which may be served in part through alley-provided access. (B) Affordable Housing Dispersal. Per SB 1537's requirement that affordable housing be "dispersed throughout the Site," the City expects the Developer Applicant to coordinate with staff as part of the phasing plan preparation to ensure that a proportional number of planned affordable housing units are included in at least half of the planned residential phases spread across the development. Meaning that at least half of the total phases for the Site include at least some affordable housing and that at Page 3- Council Bill No. 3306 Resolution No. 2265 least three (3) of the general quadrants of the site (e.g. SW, NW, NE, and SE) include some phase(s) with affordable housing. Section 3. Affordable Housing Partnership(s). The affordable housing standards outlined under Section 55 of SB 1537 align with essential goals of the City Council in approving any future UGB expansion. To ensure that component of a future expansion is fulfilled, the Developer Applicant for the Site must demonstrate or provide the City with the following: (A) Identification and Agreement(s) with Affordable Housing Partner(s). The Developer Applicant shall identify for the City any/all affordable housing partners and organizations the developer intends to coordinate and work with to meet the requirements of SB 1537. The City may further request that partnership, right-to-purchase, disposition, and/or development-plan agreements between these parties are in place to adequately protect the interests of such parties and their future ability to provide the necessary affordable units for the Site. (B) FHDC Partnership. As part of fulfilling the affordable housing requirement, the Developer Applicant shall maintain its partnership with FHDC through the build-out of FHDC's planned subarea(s) of the Site. The City will expect to work with FHDC and the Developer Applicant to coordinate any/all infrastructure and improvements necessary to serve FHDC's affordable housing site(s) and/or unit(s). Section 4. Development Agreement.The City anticipates that some aspects related to the future development of an expanded UGB Site may need to be addressed through negotiation and coordination with the Developer Applicant under a Development Agreement. At or prior to the City approving any UGB expansion, a Development Agreement may be prepared to address the following: (A) Utility & Phasing Plan. The City expects that through the completion of the preliminary phasing and utility plans prepared by the Developer Applicant, those plans will clarify what infrastructure will be constructed through each phase of the development. The Development Agreement may also include further details related to timing and cost sharing across phases of the Site development, as well as conditions that each phase within the Site be able to "stand alone" with the infrastructure provided during that phase's build-out. (B) Transportation Specifications. The Development Agreement may specify standard cross-sections that will be used for future transportation rights-of-way and other pathways running through the Site. The Developer Page 4- Council Bill No. 3306 Resolution No. 2265 Applicant and the City may also set expectations related to the boundary street improvements and Site access points along Boones Ferry and Crosby Roads. The City expects that the Developer Applicant will be responsible for acquiring any/all additional right-of-way needed for transportation improvements in/around the Site. (C) Water/Sewer/Storm Infrastructure. The Development Agreement may include specifications around both on-site and off-site water, sewer, and stormwater infrastructure improvements needed to adequately serve the Site, as well as expectations around the transfer of water rights and real property needed to accommodate a potential future well on the Site. (D) Open Space. The Development Agreement may stipulate requirements or expectations around future open space within the Site and the public versus private designations for those areas. This may also include details about the farming/garden site planned to be set-aside and managed by CAPACES Leadership Institute. (E) SDCs & SDC Credits. The City will require that the full amount of System Development Charges ("SDCs") be paid for each unit of housing, including affordable units, and any commercial development on the Site; however, per the City's ordinances governing SDCs, credits may be granted to the Developer for the construction of qualifying improvements. The Development Agreement may stipulate what improvements meet the qualifying standards and will be added to the City's CIP list for future creditability. Section 5. Timeline for Consideration. Acknowledging that the City pursued legislative priorities under HB 4035 in order to make available to the City of Woodburn the SB 1537 processes for an expedited UGB expansion, the Developer Applicant is now expected to pursue needed planning obligations with diligence and meet certain timelines for UGB expansion (including preliminary plan/engineering work), annexation, and initial development. Overall, the City expects the following benchmarks to be met: • Preliminary Utility & Phasing Plan (Feasibility) Fall 2026 • Development Agreement Fall 2026 • UGB Expansion Ordinance Passage End of 2026 • Annexation, Zone Change, Preliminary Plat Summer 2027 Section 6. City Solicitation Option. Nothing herein prevents the City from initiating or undertaking the public site solicitation process under the relevant provisions of HB 4035 and SB 1537. Should the Developer Applicant abandon or fail to move its current Site plan application forward for UGB expansion under the Page 5- Council Bill No. 3306 Resolution No. 2265 conditions and timeline outlined above, including providing the City with the preliminary site and development plan information outlined under Sections 1-3 of this Resolution by October 31 , 2026, City staff will be directed to commence or explore alternatives for achieving a UGB expansion. Approved as to form: _ City Att ey Date Approved: L Frank Loner n, Mayor Passed by the Council . `.av 2` Submitted to the Mayor 2_3 7eJ-p Approved by the Mayor Filed in the Office of the Recorder r L,e 2_3 , "Z...l.r) ATTEST: Heather Pierson, City Recorder City of Woodburn, Oregon Page 6 - Council Bill No. 3306 Resolution No. 2265