Molalla's Urban Growth Boundary (UGB)

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. 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

Step 7. UGB Amendment

Underway - anticipated adoption by City Council in June, 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.