Keizer explores land use options for job creation and housing development

The City Council Work Session held on March 30, 2025, in Keizer, Oregon, focused on the fiscal and non-fiscal implications of growth within the city. The meeting began with a detailed discussion on the cost of growth, which was divided into two main categories: fiscal costs related to services and non-fiscal aspects concerning community character.

The council reviewed a study conducted in February 2020 that explored two options for land use on the northeast side of Keizer. The first option proposed using this land for job creation by expanding the commercial area, while the second option suggested a larger development that included both commercial and residential units. The financial implications of these options were significant, with the smaller commercial-focused development estimated to cost $17 million, and the larger mixed-use development projected at $36 million.

Key discussions highlighted the responsibilities for these costs, which would be shared among the city, county, and state. The focus was primarily on transportation impacts, with the study specifically addressing the necessary improvements to the transportation system, excluding local roads that developers would build.

Council members raised questions regarding the adequacy of the current system development charges (SDCs) to cover the expenses incurred from new developments. The average SDC for single-family homes in urban growth boundary expansion areas ranged from $43,000 to $46,000, which is significantly higher than the average for already incorporated areas. This discrepancy raised concerns about whether new developments could fully fund their infrastructure needs.

The council also discussed the need for updated data on growth costs, suggesting that a more recent study could provide valuable insights. The potential for updating the city's SDC methodology was acknowledged, as the current methodology is outdated and requires a defensible basis for any adjustments.

In addition to fiscal considerations, the council addressed the non-fiscal aspects of growth, particularly the community's desire to maintain a small-town feel amidst expansion. Concerns were raised about the impact of growth on neighborhood character, school capacities, and traffic congestion. The council recognized the importance of public engagement to gauge community sentiment regarding these changes.

Lastly, the meeting touched on opportunities presented by a recent state initiative allowing cities with populations over 25,000 to expand residential areas by up to 100 net acres. The council plans to explore this option further, considering the criteria and implications for Keizer's growth strategy.

Overall, the session underscored the complexities of managing growth in Keizer, balancing fiscal responsibilities with community values and infrastructure needs. The council will continue to evaluate these factors as they plan for the city's future development.