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Oregon City adopts first reading of floodplain code changes tied to FEMA/NMFS guidance

2662337 · February 19, 2025
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Summary

Commission approved first reading of ordinance 25-1003 to add permit‑by‑permit mitigation assessment requirements for development in the flood management overlay district to meet FEMA short‑term directives tied to endangered species protections.

The Oregon City Commission held a public hearing and approved on first reading an ordinance amending the city’s flood management overlay code to require a permit‑by‑permit mitigation assessment for development in regulated floodplains.

Planning Manager Pete Walter presented the proposed changes (legislative file 2404), which staff described as the city’s interim response to FEMA’s July 2024 directive tied to the National Marine Fisheries Service (NMFS) 2016 biological opinion. Under the amendment, applicants for development in the flood management overlay (Chapter 17.42 of the municipal code) must submit a flood habitat or mitigation assessment prepared by a qualified professional to demonstrate "no net loss" of floodplain functions.

Why it matters: FEMA notified local governments of short‑term pre‑implementation compliance measures after federal litigation and NMFS review concerned potential effects of the National Flood Insurance Program on threatened and endangered species. The city must update local rules to remain eligible for the National Flood Insurance Program and to follow FEMA’s interim guidance, staff said.

What the ordinance does: Walter said the amendments add language recognizing floodplain "natural and beneficial values," add a liability disclaimer noting that a local permit does not guarantee federal compliance, and revise the administration section to require an applicant‑paid mitigation assessment. The code text presented to commissioners states in part that a permit application must include "a flood habitat assessment report from a qualified expert evaluating any negative impact to floodplain function and identifying appropriate mitigation measures to ensure that any development will be in compliance with the 2016 National Marine Fisheries Services Biological Opinion No Net Loss Standards." The report’s mitigation recommendations, if any, will be added as permit conditions.

Staff context: Planning staff said GIS analysis shows relatively few residential parcels in the special flood hazard area (38 parcels and 12 residential structures) and that staff expect few development applications in the near term. The mitigation assessment approach is the city’s chosen interim pathway; planning staff noted the city may adopt a model ordinance later if FEMA finalizes an environmental impact statement.

Commission action: Commissioner Adam Morrow moved to approve the first reading of ordinance 25‑1003. The motion passed unanimously with Commissioners Scott Wilson, Adam Morrow, Mike Mitchell and Commission President Rocky Smith voting aye.

Ending: Staff will implement the permit‑by‑permit review through the city’s development review process and return to the commission if additional code work is recommended in light of future FEMA guidance.