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Council amends ERU moratorium to include properties inside urban growth boundary; resolution passes
Summary
Council voted to amend and pass Resolution 2026-04, adopting a development allocation program for ERU distribution and changing references from 'city limits' to the urban growth boundary (UGB). The measure aligns ERU expirations and sets the framework for a lottery and first-come pools when EPA/DEQ release additional capacity.
After a staff presentation introducing Resolution 2026-04, council opened a public hearing and heard multiple comments about how to allocate limited new ERUs. The staff explanation described the resolution as the fifth iteration of the moratorium, with a major change to create a development allocation program to distribute newly available ERUs when EPA/DEQ releases the city’s additional capacity. The program would allocate residential and employment ERUs using a mix of first-come and lottery procedures and would align expiration dates for existing ERU allocations to 12/31/2027.
Staff told the council: “This resolution would adopt the 5th major iteration of the city's development moratorium… the major change in this version of the moratorium is to put in place what's been called a development allocation program, which sets out the framework for distributing those ERUs of additional capacity.”
Multiple speakers urged either prioritizing existing city-limits properties or expanding eligibility to properties inside the Urban Growth Boundary (UGB) that are not yet annexed. Councilors debated preference points, annexation timing and whether winners would have enforceable timelines to move projects forward. After discussion, Councilor Smallwood moved (seconded by Councilor Mayton) to change terminology in Sections 9, 10 and 11 from “city limits” to “urban growth boundary.” The council approved the amendment and then passed the resolution as amended on a voice vote.
What the resolution does: it puts an initial allocation of 42 ERUs (plus any returned allocations) into a residential lottery, creates pools for employment and ADUs, aligns ERU expirations, and sets timelines tied to state releases of ERU capacity. Staff and council agreed the moratorium language will be revisited as more information becomes available and if the initial lottery does not meet anticipated demand.
Votes and formal actions: council adopted the consent agenda earlier on a separate motion; Resolution 2026-04 was amended and adopted on a voice vote after the amendment replacing 'city limits' with 'urban growth boundary' passed.
