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Panel advances Eugene pilot to allow voluntary annexation of noncontiguous parcels
Summary
The committee adopted an -A4 amendment and forwarded House Bill 41 08 A, a targeted pilot allowing the City of Eugene to annex certain noncontiguous parcels within its urban growth boundary (with owner petition and connection to city utilities), after testimony highlighting both infill opportunities and special-district service concerns.
Chair Pham opened a public hearing on House Bill 41 08 A and asked staff to summarize the measure.
Kya explained that the bill would permit the City of Eugene to annex noncontiguous parcels inside its acknowledged urban growth boundary without a public hearing or election if all property owners petition to join and the land meets criteria (residential or mixed-use plan designation, connected to water and accessible by public roads). The -A4 amendment clarifies how the property must be connected to water utilities and expands allowed utility contracting entities per Oregon statute.
Representative Fragola and Eugene advocates framed the measure as a narrowly scoped pilot to unlock infill on parcels already served by city infrastructure and to maximize existing investments without expanding the UGB. Tiffany Edwards (Eugene Area Chamber of Commerce and Better Housing Together) and Lindsay Leach (City of Eugene council president, speaking as a resident of Ward 7) described neighborhoods where many parcels inside the UGB remain unincorporated and urged the pilot to allow property owners an owner-initiated annexation pathway.
Opposition surfaced from Mark Landauer (Special Districts Association of Oregon), who warned the change could allow cities to withdraw urban services from districts under current statute (ORS 195.065), thereby reducing district revenues and imposing burdens on remaining ratepayers; he noted the legislature previously outlawed island annexations for similar reasons. Committee members supported a scoped pilot while acknowledging the need to monitor and mitigate special-district impacts.
The committee adopted the -A4 amendment by voice and moved HB 4108 A, as amended, to the floor with a do-pass recommendation. Senator Manning was announced as the bill carrier on the floor.
The pilot limits statewide exposure but committee members asked for lessons learned and cautioned about broader application without additional statutory fixes.
