Executive Summary

Development Pipeline

Industrial Projects

> Additional projects are included in the Appendix below.

Entitlement Risk

Approval Patterns

• Economic Prioritization: The Council demonstrates a pattern of approving extensions and rezonings that facilitate business retention, such as the 5-year extension for Eagle Park .
• Conditional Flexibility: There is a high willingness to grant variances for design standards if the project provides clear community benefits, provided the applicant adheres to "Sandy Style" color palettes .
• Utility Mitigation: Approvals are increasingly tied to "breakpoint chlorination" and other water treatment infrastructure commitments to ensure system redundancy .

Denial Patterns

• Sewer Capacity Conflicts: Projects requiring standard sewer hookups without pre-allocated Equivalent Residential Units (ERUs) face indefinite delays due to the moratorium .
• Aesthetic Non-Compliance: While some variances are granted, the Planning Commission remains skeptical of omitting secondary roof forms or faux-wood finishes on prominent structures, even for public projects .

Zoning Risk

• Alternative System Permits: A new Type IV review process now exists for alternative wastewater systems (porta-potties, graywater, septic), providing a regulatory path for industrial development on C2 and I-zoned land .
• I2 to I1 Transitions: There is momentum toward transitioning traditional Light Industrial to Industrial Park classifications to allow higher-value commercial and retail blending .
• Employment Land Prioritization: The newly adopted Economic Development Strategic Plan will be used to prioritize the distribution of limited conditional ERUs to employment-generating projects .

Political Risk

• Revenue vs. Safety Ideology: Council is divided on whether new safety technologies (e.g., speed/red light cameras) should be used for revenue generation or strictly safety, which may affect future infrastructure funding models .
• Tax Sentiment: Recent discussions indicate a lack of public appetite for new taxes or bonds, causing the Council to rely heavily on SDC increases to fund massive infrastructure gaps .

Community Risk

• Truck Traffic Concerns: Residents have expressed significant opposition to heavy truck traffic on Bluff Road, leading to calls for diverted truck routes and restricted hours .
• Safety and Livability: Encampments in industrial areas like Industrial Way have triggered increased demands for code enforcement and "community livability" task forces .

Procedural Risk

• Moratorium Extensions: The development moratorium was recently extended to June 2026, with future six-month renewals likely until the Gresham pipeline is secured .
• SDC Litigation: An ongoing lawsuit with the Homebuilders of Sandy regarding a 314% SDC increase has created significant uncertainty for new building permits .

Key Stakeholders

Council Voting Patterns

• Pro-Growth/Strategic: Councilor Sheldon and Councilor Ramire consistently support infrastructure investments and economic development programs .
• Fiscal Conservatives/Skeptics: Councilor Smallwood and Councilor Hanley frequently vote against fee increases and express concern over the "sticker shock" of development costs .
• Swing/Policy Focus: Councilor Hokinson focuses heavily on legal mandates and the transfer of power to administration .

Key Officials & Positions

• Mayor Walker: Focuses on regional water solutions and preventing "loopholes" in wastewater code that could shift costs to residents .
• Tyler (City Manager): Driving the "Energize Growth Program" and navigating the EPA consent decree .
• Kelly (Development Services Director): Manages the Housing Production Strategy and ensures state-mandated code compliance .
• AJ Thorne (Public Works Director): Oversees the critical engineering routing studies for the wastewater conveyance to Gresham .

Active Developers & Consultants

• Michael Maiden: Active in industrial park renovations and industrial-to-commercial rezoning .
• Jon Legarza (Consultant): Shapes the city’s economic development priorities, wayfinding, and facade programs .
• Stantec (Engineering): Primary consultant for the $200M+ wastewater transition and Gresham capacity evaluations .

Analysis & Strategic Insights

Forward-Looking Assessment

• Pipeline Momentum: Momentum is currently restricted to small-scale industrial users who can utilize the "Alternative Wastewater" ordinance . Large-scale logistics or distribution centers will likely remain frozen until the IGA with Gresham is finalized, expected late 2025 .
• Regulatory Environment: Regulatory tightening is occurring around "Sandy Style" aesthetics and flood plain habitat assessments . However, the city is loosening rules for industrial developers willing to manage their own wastewater systems .
• Strategic Recommendations: Industrial developers should explore the Energize Growth Program for gap financing and prepare "Alternative Wastewater" plans if they wish to break ground before 2030. Engagement with the Clackamas County Transportation Update is critical for projects near the 362nd extension .
• Near-Term Watch Items:
• The final connection point decision for the Gresham wastewater pipeline (mid-2025) .
• Resolution of the SDC litigation with the Homebuilders of Sandy .
• The launch of the Energize Growth Program application cycles in January/July .