McMinnville — City planning staff told a joint work session of the McMinnville City Council and Planning Commission on Oct. 14 that land-use efficiency measures can meet the city’s residential and industrial land needs through 2041 inside the current urban growth boundary, but the city still faces a shortfall of commercial land and would need a targeted UGB amendment to address it.

The staff presentation, led by Community Development Director Heather Richards, outlined a two-step sequential UGB work plan the city has with the state Department of Land Conservation and Development (DLCD) and the Land Conservation and Development Commission (LCDC), and proposed adding a third task — a focused UGB alternatives analysis for commercial land — with a requested deadline extension to Feb. 7, 2028.

Why it matters: The sequential UGB process establishes a state-recognized path the city can use to study whether and how to add land to the UGB. Richards said meeting the state’s original March 1, 2026 deadline for an amendment is not feasible for the commercial land need without substantial additional staff and consultant resources; she estimated a minimum 14 months of work and recommended budgeting about $100,000 for third‑party professional services and an in‑kind staff commitment worth roughly $129,000.

What staff presented: Richards summarized the city’s 2021–2041 land needs analysis and said residential and industrial needs can be met through efficiency measures and planned actions — including adding 30 industrial acres by adopting the airport master plan and re‑including parcels Linfield University expects to develop. For commercial needs, the analysis showed a net deficit: the city needs roughly 115–159 acres depending on counting conventions; staff said they can account for about 88 acres through efficiencies and identified a remaining deficit of roughly 71 acres.

Richards described the sequential UGB work plan steps: task 1 (land‑need analysis) is complete and submitted; task 2 (land‑use efficiencies) remains on track for the March 1, 2026 milestone; task 3 (UGB alternatives analysis for commercial land) would require negotiation with DLCD and Yamhill County and additional consultant and staff work. DLCD staff told the city the statutory framework allows a four‑year window for a sequential UGB work plan; staff said that is why Feb. 7, 2028 was proposed as the end date for a task 3 extension.

Council questions and staff replies: Councilors asked about timing, cost, whether study results would expire, and consequences of missing deadlines. Richards said the city can still use an acknowledged economic opportunity analysis later to justify an amendment, but the sequential work plan itself has the four‑year window; she and DLCD staff said the 2024 director’s decision on the earlier land‑needs submission was appealed to LCDC, which upheld the director, and a final decision document was delayed — that delay complicated the current timeline.

Staff noted practical issues: large tracts identified as commerce in the buildable lands inventory (for example, parcels used for agricultural uses or planted in vines) may not realistically develop; McMinnville Landing includes a master‑planned retail component that staff now expect to keep below 25% of the development area and therefore not count as fully commercial buildable land.

Council direction: Several councilors expressed reluctance to reallocate long‑range planning capacity from projects such as the downtown master plan and the city’s Transportation System Plan (TSP). After discussion, the council did not support placing a resolution on the Nov. 12 council agenda to formally amend the sequential UGB work plan and extend the commercial‑UGB task deadline; staff agreed to return with a legal memorandum clarifying the consequences of amending the work plan and not completing a task by its deadline, and to discuss committee and workload priorities at a Dec. work session.

What’s next: Staff said they will proceed with the land‑use efficiency work and the March 1, 2026 submittal for residential and industrial items, will continue working with DLCD and Yamhill County, and will return with a legal opinion and a formal proposed resolution if the council wishes to proceed later.

Ending: Richards urged the council to weigh timing and capacity, noting that even if a UGB amendment were approved, development built on newly added land typically takes many years before construction begins.