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Canby planners outline urban growth boundary expansion, discuss permit tracking and a new construction excise tax
Summary
Planning director Don Hardy told the budget committee that an urban growth boundary adoption is expected in December 2026 (adding roughly 73 residential acres and 350 employment acres), and committee members discussed permit tracking, code updates and implementing a $1 per-square-foot construction excise tax.
Don Hardy, Canby—s planning director, told the budget committee the city is updating more than two dozen long-range plans and is moving forward on an urban growth boundary (UGB) expansion.
"As part of the urban growth boundary expansion... that'll be 73 new acres for residential, and they're doing concept planning for that right now," Hardy said, adding the expansion would also add roughly 350 acres for employment uses.
Hardy and staff said the code audit is underway (with state grant support) and that a full code update will follow. Committee members pressed staff on permit timing and potential ways to speed delivery without compromising safety. Hardy noted that building permits are currently administered by Clackamas County and that some jurisdictions retain local building departments; he said a modern permit-tracking system and improved online mapping would help applicants and city staff alike.
The committee also discussed a construction excise tax to be captured in the building fund; staff showed a projection for building-permit revenue and noted an 88/12 split with the county for building-permit administration in Canby—s current arrangement, meaning the county keeps a share of permit revenue under the contract. If the county adjusts its fees, that could change Canby—s net receipts.
Why it matters: The UGB expansion and code updates are key tools to shape future housing and employment growth. A permit-tracking system and clearer fee schedules could shorten developer timelines and improve transparency for applicants.
Next steps: Staff will continue the code audit, cost permit-tracking options and return cost estimates for potential system upgrades or services to be added to the committee—s bubble list for later fiscal consideration.
