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Oregon City approves phase‑two environmental testing for Center Street parcels, debates R3.5 rezoning and mixed‑use options
Summary
The commission approved a contract amendment for phase‑two environmental site assessment of four Center Street properties and discussed rezoning them to R3.5 for housing or limited mixed‑use; staff reported residual contamination under building foundations and DEQ letters requiring further borings and testing.
The commission approved amendment number one to a personal services agreement with Maul, Foster & Alongi Inc. to conduct a phase‑two environmental site assessment of four city‑owned Center Street properties on July 1.
Public Works Director Dana Wethe told the commission the Phase I work showed no red flags for one gravel lot, a DEQ "no further action" letter for a paved lot tied to a 1997 removal of a 5,000‑gallon gasoline underground storage tank, and recognized environmental conditions under foundations on two developed parcels that require further borings and testing. "The contamination from those underground storage tanks was partially under the footings and the foundation of the building, so it was not fully remediated," Wethe said.
Why it matters: the four parcels (two parking lots and two developed sites) are the subject of a commission goal to return property to productive use. The City’s Phase II work will include borings to confirm the presence or absence of remaining contamination and narrow the scope of remediation needed before sale or redevelopment.
Rezoning and development considerations: commissioners discussed rezoning the parcels to R3.5 with neighborhood engagement and a traffic impact letter. Some members proposed exploring limited neighborhood‑scale mixed use on the bluff side to support walkable amenities; others urged prudence because geologic hazard overlays, easements and utility poles constrain developable area. Commissioners also debated whether to process rezoning for all four lots together or in phases; staff noted rezoning is a separate land‑use process that would include neighborhood outreach and pre‑application work.
Vote and next steps: the commission voted unanimously to approve the contract amendment to proceed with Phase II testing. Staff will undertake borings and the environmental work, scope a traffic impact letter, and initiate pre‑application steps for a rezoning and plan amendment, with outreach planned to the McLoughlin Neighborhood Association.
Ending: The testing is intended to clarify contamination, easements and buildable footprints so the city can decide whether to market the properties for housing, mixed use or other redevelopment once environmental constraints are understood.
