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Commissioners ask how 'neighborhood-serving commercial' would work in Canby UGB expansion

Canby Planning Commission · August 11, 2026
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Summary

Staff told commissioners state rules allow up to 5% of residential acreage for pedestrian-oriented neighborhood-serving commercial (about 3.7 acres for Canby), but inclusion is optional and subject to community input and subsequent review.

Commissioners pressed staff for clarity on what the new state provision for "neighborhood-serving commercial" would allow and where it might go in Canby's proposed UGB expansion.

Steve Faust said the state rule gives cities the option to include up to 5% of residential acreage for neighborhood-serving commercial uses; he quantified the example for Canby as roughly 3.7 acres. Faust said the provision is a "safe harbor" for small-scale services but is not automatically guaranteed under the city’s current procedural status.

When asked for a definition, Faust and Don Hardy described the concept as pedestrian-oriented, small-scale retail and services intended to serve nearby residents. Faust summarized the statutory intent: "pedestrian oriented small scale commercial development intended to serve surrounding residential areas." Commissioners and staff discussed avoiding auto-oriented destinations such as fueling stations and emphasized design and review would occur later in the concept-planning and development-review stages.

Staff told the commission that whether to include neighborhood commercial in Subarea 1A will depend on public input and further refinement during the concept-planning phase; it is optional and will still be subject to the city’s land-use review process.