Molalla's Urban Growth Boundary (UGB)

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This project determines where the City's UGB will expand and by how much

Follow this page to receive information on project status and opportunities to provide public input. Tabs to the right will guide you to completed documents and upcoming meeting dates.


Step 1. Sequential UGB Process Approval

Adopted By Molalla City Council and Clackamas County Commission March 2023; DLCD Approval May 2023

The City of Molalla is the first city in Oregon to use this new process for UGB amendments. It requires cities to develop a workplan adopted by Molalla's City Council, County Board, and Department of Land Conservation and Development (DLCD). Further steps in Molalla's adopted workplan are outlined below.


Step 2. Housing Needs Analysis/Buildable Lands Inventory

Adopted By Molalla City Council July 2023; DLCD Approval December 2023

This first study looks at the 20-year growth projection and available residential buildable land currently inside the UGB to determine whether additional lands will be required to accommodate that projected growth. Once complete, this study is adopted into the City’s Comprehensive Plan.


Step 3. Housing Production Strategies

Adopted By Molalla City Council March 2025; DLCD Remand August 2025; Readoption Planned for February 2026

The housing production strategies document devises strategies with input from public bodies, advisory committees, and the public to address housing needs identified in the Housing Needs Analysis.


Step 4. Economic Opportunities Analysis/Buildable Lands Inventory

Adopted By Molalla City Council March 2025; DLCD Approval August 2025

Like Step 2 above, this study focuses on 20-year land needs and evaluates available land within the existing UGB but focuses on Industrial and Commercial employment lands to ensure the City has land to provide enough employment opportunities to support it’s population. This study also looks at current industry trends to provide target industries and project needed site types and size for projected employment land needs.


Step 5. Efficiency Measures

Adopted By Molalla City Council June 2025; DLCD Approval October 2025*

This portion of the process includes the implementation phase of the Housing Production Strategies work done to satisfy HB 2003 and evaluates land within the current UGB to determine if processes such as rezoning could cause them to be used more efficiently. Before the City can determine it’s final 20-year land need, some efficiency measures must be adopted to ensure the City is getting the most opportunity out of the lands currently inside the UGB. This may reduce the 20-year land need.

*DLCD approval


Step 6. Goal 14 Land Studies

Adopted By Molalla City Council June 2025; Study amendment grant to be completed with UGB analysis and adopted by Molalla City Council in February 2026. This amendment will consider a cost analysis of northern and western expansion vs. a southern expansion into the exception lands.

This step requires identification of a “study area” that is typically a consistent area outside the city boundaries in every direction (e.g. one mile). Once the study area is identified, the lands in that area are assessed under state guidelines to determine what the most appropriate areas are to include in a potential UGB amendment.

The state guidelines for assessment include things like: soil qualities, parcel sizes, utility serviceability and more. You can find a full recording of the April 22nd Public Meeting here: https://www.youtube.com/watch?v=pN02OhD97Ps

NOTE: As of July 2026, the enhanced Goal 14 analysis has been completed. Please see the documents section of this page to review the July 2026 Goal 14 Analysis.


Step 7. UGB Amendment

Underway - anticipated adoption by City Council in September, 2026

Upon adoption and/or approval (as applicable) of the items in Steps 1-6 above, the City will file with Clackamas County’s Board of Commissioners to modify the City’s UGB as determined by the results of this process.


This project determines where the City's UGB will expand and by how much

Follow this page to receive information on project status and opportunities to provide public input. Tabs to the right will guide you to completed documents and upcoming meeting dates.


Step 1. Sequential UGB Process Approval

Adopted By Molalla City Council and Clackamas County Commission March 2023; DLCD Approval May 2023

The City of Molalla is the first city in Oregon to use this new process for UGB amendments. It requires cities to develop a workplan adopted by Molalla's City Council, County Board, and Department of Land Conservation and Development (DLCD). Further steps in Molalla's adopted workplan are outlined below.


Step 2. Housing Needs Analysis/Buildable Lands Inventory

Adopted By Molalla City Council July 2023; DLCD Approval December 2023

This first study looks at the 20-year growth projection and available residential buildable land currently inside the UGB to determine whether additional lands will be required to accommodate that projected growth. Once complete, this study is adopted into the City’s Comprehensive Plan.


Step 3. Housing Production Strategies

Adopted By Molalla City Council March 2025; DLCD Remand August 2025; Readoption Planned for February 2026

The housing production strategies document devises strategies with input from public bodies, advisory committees, and the public to address housing needs identified in the Housing Needs Analysis.


Step 4. Economic Opportunities Analysis/Buildable Lands Inventory

Adopted By Molalla City Council March 2025; DLCD Approval August 2025

Like Step 2 above, this study focuses on 20-year land needs and evaluates available land within the existing UGB but focuses on Industrial and Commercial employment lands to ensure the City has land to provide enough employment opportunities to support it’s population. This study also looks at current industry trends to provide target industries and project needed site types and size for projected employment land needs.


Step 5. Efficiency Measures

Adopted By Molalla City Council June 2025; DLCD Approval October 2025*

This portion of the process includes the implementation phase of the Housing Production Strategies work done to satisfy HB 2003 and evaluates land within the current UGB to determine if processes such as rezoning could cause them to be used more efficiently. Before the City can determine it’s final 20-year land need, some efficiency measures must be adopted to ensure the City is getting the most opportunity out of the lands currently inside the UGB. This may reduce the 20-year land need.

*DLCD approval


Step 6. Goal 14 Land Studies

Adopted By Molalla City Council June 2025; Study amendment grant to be completed with UGB analysis and adopted by Molalla City Council in February 2026. This amendment will consider a cost analysis of northern and western expansion vs. a southern expansion into the exception lands.

This step requires identification of a “study area” that is typically a consistent area outside the city boundaries in every direction (e.g. one mile). Once the study area is identified, the lands in that area are assessed under state guidelines to determine what the most appropriate areas are to include in a potential UGB amendment.

The state guidelines for assessment include things like: soil qualities, parcel sizes, utility serviceability and more. You can find a full recording of the April 22nd Public Meeting here: https://www.youtube.com/watch?v=pN02OhD97Ps

NOTE: As of July 2026, the enhanced Goal 14 analysis has been completed. Please see the documents section of this page to review the July 2026 Goal 14 Analysis.


Step 7. UGB Amendment

Underway - anticipated adoption by City Council in September, 2026

Upon adoption and/or approval (as applicable) of the items in Steps 1-6 above, the City will file with Clackamas County’s Board of Commissioners to modify the City’s UGB as determined by the results of this process.

  • Data Center in Molalla

    Share Data Center in Molalla on Facebook Share Data Center in Molalla on X (formerly Twitter) Share Data Center in Molalla on Linkedin Email Data Center in Molalla link

    Update: City Staff has researched the Data Center developer inquiry and provided a fact sheet and timeline in the Documents Section of this project page. You may view it there or use the link provided below.

    https://current.cityofmolalla.com/12642/widgets/43393/documents/85034


    Recently individuals opposed to Molalla’s state mandated Urban Growth Boundary (UGB) process have exploited the popular outrage of the day to spread false information and rumors regarding “the City of Molalla brining in a data center.” Regardless of the fact that this is just not true, social media has perpetuated this false information to the point where it has become necessary to address.

    Is the city attempting to bring in a data center?

    No, cities generally do not develop land. Development of any sort is between property owners and developers, the city is merely the regulatory body that ensures development meets with city, state, and federal standards. The city does not own land except current and future parkland, public buildings, and streets.

    At this time there is no property owner or data center developer engaged with the City of Molalla to obtain land or otherwise develop a data center. This includes current and future city limits.

    Has the city ever attempted to bring in a data center?

    Put simply, no. However, cities receive many inquiries from prospecting developers. After a public records search it appears the city did receive one prospecting inquiry approximately 18-months ago regarding utility capacity and available land for a data center. The City did not have adequate capacity in water, sewer, power, or land to sustain such a development and the inquiry ended without further action.

    The City also received several inquiries about large format industrial lots for mass timber, and other manufacturing uses. The analyses performed during all of these inquiries highlighted the lack of large format industrial lots for any industry that would provide significant living wage employment for the Molalla community. Given the lack of major industry providing such employment in Molalla the City sought to add at least one large format industrial lot during the UGB process.

    Can a data center ever come into the City of Molalla?

    Yes, it would take a willing seller of an industrial zone lot and enough water, sewer, and power capacity to serve the development. There have been no such inquiries from landowners or developers beyond that mentioned above.

    If you wish to follow along with the UGB process or ask questions about it, please visit the UGB process page at: current.cityofmolalla.com.

    Update: City Staff has researched the Data Center developer inquiry and provided a fact sheet and timeline in the Documents Section of this project page. You may view it there or use the link provided below.

    https://current.cityofmolalla.com/12642/widgets/43393/documents/85034


    Recently individuals opposed to Molalla’s state mandated Urban Growth Boundary (UGB) process have exploited the popular outrage of the day to spread false information and rumors regarding “the City of Molalla brining in a data center.” Regardless of the fact that this is just not true, social media has perpetuated this false information to the point where it has become necessary to address.

    Is the city attempting to bring in a data center?

    No, cities generally do not develop land. Development of any sort is between property owners and developers, the city is merely the regulatory body that ensures development meets with city, state, and federal standards. The city does not own land except current and future parkland, public buildings, and streets.

    At this time there is no property owner or data center developer engaged with the City of Molalla to obtain land or otherwise develop a data center. This includes current and future city limits.

    Has the city ever attempted to bring in a data center?

    Put simply, no. However, cities receive many inquiries from prospecting developers. After a public records search it appears the city did receive one prospecting inquiry approximately 18-months ago regarding utility capacity and available land for a data center. The City did not have adequate capacity in water, sewer, power, or land to sustain such a development and the inquiry ended without further action.

    The City also received several inquiries about large format industrial lots for mass timber, and other manufacturing uses. The analyses performed during all of these inquiries highlighted the lack of large format industrial lots for any industry that would provide significant living wage employment for the Molalla community. Given the lack of major industry providing such employment in Molalla the City sought to add at least one large format industrial lot during the UGB process.

    Can a data center ever come into the City of Molalla?

    Yes, it would take a willing seller of an industrial zone lot and enough water, sewer, and power capacity to serve the development. There have been no such inquiries from landowners or developers beyond that mentioned above.

    If you wish to follow along with the UGB process or ask questions about it, please visit the UGB process page at: current.cityofmolalla.com.

  • Notice of Public Hearing ORD2025-07

    Share Notice of Public Hearing ORD2025-07 on Facebook Share Notice of Public Hearing ORD2025-07 on X (formerly Twitter) Share Notice of Public Hearing ORD2025-07 on Linkedin Email Notice of Public Hearing ORD2025-07 link

    On Wednesday, July 23rd at 7PM City Council will continue the hearing from June 25th, 2025 to consider an ordinance to change zoning and comprehensive plan designations for multiple properties in the City and change the review process for Accessory Dwelling Units from a Type II process to a Type I process. The ordinance repeals ORD2025-05 and replaces it with a new ordinance. This effort is in accordance with ORS 197.296, which requires jurisdictions to more efficiently utilize lands within their urban growth boundary before expanding.

    The hearing will be held starting at 7:00 PM at the Molalla Civic Center; 315 Kennel Ave, Molalla OR, 97038. You may attend, offer testimony, or seek information at the hearing. Written testimony will be received by the City of Molalla until the day of the hearing and should be addressed or emailed to: City Recorder, Christie Teets, PO Box 248, Molalla OR, 97038, recorder@cityofmolalla.com; note that email is preferred. Please ensure your name and address are included in the written testimony.

    A copy of the draft ordinances, resolution, and staff report will be available for inspection at no cost at least seven (7) days prior to the hearing. The documents will also be available at the Molalla Current Urban Growth Boundary page (https://current.cityofmolalla.com/). Copies shall be provided at a reasonable cost upon request.

    On Wednesday, July 23rd at 7PM City Council will continue the hearing from June 25th, 2025 to consider an ordinance to change zoning and comprehensive plan designations for multiple properties in the City and change the review process for Accessory Dwelling Units from a Type II process to a Type I process. The ordinance repeals ORD2025-05 and replaces it with a new ordinance. This effort is in accordance with ORS 197.296, which requires jurisdictions to more efficiently utilize lands within their urban growth boundary before expanding.

    The hearing will be held starting at 7:00 PM at the Molalla Civic Center; 315 Kennel Ave, Molalla OR, 97038. You may attend, offer testimony, or seek information at the hearing. Written testimony will be received by the City of Molalla until the day of the hearing and should be addressed or emailed to: City Recorder, Christie Teets, PO Box 248, Molalla OR, 97038, recorder@cityofmolalla.com; note that email is preferred. Please ensure your name and address are included in the written testimony.

    A copy of the draft ordinances, resolution, and staff report will be available for inspection at no cost at least seven (7) days prior to the hearing. The documents will also be available at the Molalla Current Urban Growth Boundary page (https://current.cityofmolalla.com/). Copies shall be provided at a reasonable cost upon request.

  • Updated HPS & UGB Schedule!

    Share Updated HPS & UGB Schedule! on Facebook Share Updated HPS & UGB Schedule! on X (formerly Twitter) Share Updated HPS & UGB Schedule! on Linkedin Email Updated HPS & UGB Schedule! link







Page last updated: 24 Aug 2026, 09:43 AM