Molalla Urban Growth Boundary (UGB) Expansion Survey

The City of Molalla is known for its charming blend of rural tranquility and modern amenities. Growth expections predict 6,000 new residents by 2045. To ensure a variety of housing and land is available for its growing population, we are preparing for an expansion of the Urban Growth Boundary (UGB). Expansions are based on the land needs listed in the 2022 Housing Needs Analysis (HNA) and 2023 Employment Opportunities Analysis (EOA) and measures the city is already taking to use land within the current UGB efficiently. Expanding the UGB is a collaborative process with the county and requires joint approval by both jurisdictions.

What is a UGB?
An urban growth boundary (UGB) shows where growth is expected and what areas are to be preserved. Urban development outside the UGB is restricted, helping to protect farm and forest resource land. The UGB is meant to motivate the region to think about growth, not to stop it completely. By encouraging developers to think about available areas already in the UGB, it slows the rate that farms are converted to housing and prevents urban sprawl.

Why do we need a UGB?
UGBs are a key component of Oregon’s Land Use Planning Program. Their purpose is to help preserve agricultural lands, forests, open spaces, protect urban investments, and to control urban sprawl. The UGB is a vital method in planning for the future needs of cities.

Is expansion the same as annexation?
The city’s workplan extends to March 2026. When the planning work is complete, the expansion area becomes eligible for annexation. Property owners in the UGB expansion area are not required to annex into the city. Properties brought into the UGB will not see a change in property taxes. A change in property taxes will occur if and when the property is annexed into the city.

When is a UGB changed?
Cities are required to periodically compare their 20-year land supply for housing and jobs to the 20-year land demand. In order to expand a UGB, cities must show state regulators that they need more developable land. State regulators monitor cities followed the state’s goals, rules, and statutes in managing their growth. This includes addressing current housing needs, determining if the city is using existing land efficiently, making sure that there is adequate public engagement, and choosing land with minimal impacts to farm and forest lands.

How does a city expand its UGB?
Oregon Statewide Planning Goal 14 supporting rules and statutes regulate the process for amending a UGB. Once the land demand is determined, cities must first create a study area and then analyze the area to determine the best locations for expansion.

Please review the subareas on the following page and let us know about the benefits and drawbacks of each. The survey will close on 7/27.