Council directs study of East Sound UGA expansion, spot upzones to close affordable-housing gap

San Juan County Council on Tuesday directed county planning staff to further examine a hybrid approach — adding acreage to the East Sound urban growth area and targeted upzoning inside the UGA — after consultants said the county lacks sufficient land capacity for some lower-income housing targets.

The council voted to ask the Department of Community Development to explore expanding the East Sound UGA to include a parcel already owned by a local land trust (identified in the briefing as “expansion area A”), to consider upzoning a separate area identified as “upzone area B,” and to evaluate modest boundary changes adjacent to the village commercial zone to gain additional capacity. Council member Paulson moved the direction and the motion passed.

The action followed a presentation by Leland Consulting Group and county staff explaining the land-capacity analysis methodology and results. Andrew Oliver of Leland Consulting Group said the county’s housing target for the planning period totals 2,264 new units, of which 790 are already built or in the pipeline, leaving a remaining target of about 1,470 units. Oliver said the county’s overall capacity is about 2,849 units but there is a shortfall of roughly 200 units in the kinds of denser, lower-income housing that must be sited inside UGAs under state policy.

Oliver said the analysis accounted for critical-area constraints, market factors, seasonal/vacation-rental effects and locally relevant housing types such as community land-trust projects. "We found sufficient overall capacity but a deficit for housing that can serve lower-income groups of about 200 units," he told the council.

County planner Sophia Castle said the land-capacity work is part of the comprehensive-plan update and reflects consultations with the Department of Commerce, town planning review committees and local review commissions. Consultants said the Growth Management Act requires capacity planning for projected population and that allocations for housing serving households under certain income levels must be placed in the UGAs rather than rural areas.

Council discussion emphasized tradeoffs. Council member Paulson said she favored a constrained expansion (area A) combined with selective upzoning (area B) and limited spot changes adjacent to the village commercial zone, but cautioned against large height increases or imposing densities “we have never seen built” in East Sound, citing local resistance to taller buildings. Council member Fuller urged staff to confirm utility (water/sewer) capacity and stormwater constraints before finalizing recommendations.

County staff said next steps are to pursue the council’s direction, vet utility capacity and bring refined options — including parcel-specific analyses and discussions with owners and utility providers — back to planning review bodies and the planning commission before returning to council for code-change action.

The council motion directed staff to return with further analysis of the specified expansion and upzoning options and to coordinate with affected parties; staff said they would follow the planning commission review process before any regulatory changes.

Ending: Staff and consultants said they will refine assumptions, consult utility providers and return with parcel-level analysis so the council can consider formal amendments to comprehensive-plan maps and development regulations.