07/17/2026
There has been a great deal of information circulating recently from a group calling itself the Molalla CPO regarding the proposed Urban Growth Boundary (UGB) expansion. Unfortunately, much of that information has been inaccurate, misleading, or missing important context.
First, it's important to understand that the Molalla CPO is not a City of Molalla committee, board, or sanctioned organization. It is not affiliated with or authorized by the City. In fact, it is led by an individual who lives outside the Molalla city limits and does not pay City of Molalla property taxes. While everyone is entitled to their opinion, residents should understand that this group does not speak on behalf of the City or its elected officials.
Before sharing information or forming an opinion, I encourage everyone to verify the facts through official City sources rather than relying on social media posts or claims that may not be accurate.
If you want factual information and the opportunity to ask questions directly, please attend the UGB Town Hall on Monday at 6:00 p.m. at the Molalla Civic Center. This is your chance to hear from City staff, review the data, and ask questions yourself.
Here are the facts provided by the City:
- Every Oregon city with a population over 10,000 is required by state law to complete a Housing Need Analysis (HNA) using population forecasts provided by the PSU Population Research Center.
- Molalla completed its HNA in 2023 using the forecasts available at that time, as required by law.
- The HNA was funded through a $60,000 grant from the Oregon Department of Land Conservation and Development (DLCD). However, the grant did not cover approximately $30,000 to $40,000 in City staff time dedicated to completing the project.
- PSU updates its population forecasts every year, and those numbers can fluctuate significantly, particularly following unusual events such as the 2020 pandemic.
- Updating the HNA now would require replacing it with a new Housing Capacity Analysis (HCA) under rules that took effect on January 1, 2026. Those rules and guidance from DLCD are still being finalized.
- Housing Need Analyses are typically updated on an eight-year cycle. It is very uncommon for cities to redo them annually because projections fluctuate.
- A new HCA would require applying for another DLCD grant during a future grant cycle. Funding is not guaranteed and the project would likely cost at least $115,000 in taxpayer dollars, plus additional City staff time.
- Earlier this year, the Molalla City Council spent time during two separate meetings discussing whether to commission a new study. After weighing the costs, uncertainties, and the possibility that future forecasts could increase again, the Council voted not to pursue a new analysis.
- The City also completed a required Economic Opportunities Analysis (EOA) in 2025. That study found Molalla has enough smaller industrial parcels but lacks larger industrial sites needed to attract family-wage employers. The City is proposing two larger industrial parcels near the wastewater treatment plant.
- As part of the planning process, the City identified 44 acres of industrial land within the existing UGB that is better suited for residential development. Those acres reduce the amount of additional residential land needed through expansion.
- All of Molalla's high-density (R3) housing needs have already been accommodated through rezoning. The remaining need is primarily low-density (R1) housing. The City is using a conservative planning assumption of seven units per acre outside the UGB, which further reduces the amount of land needed for expansion.
- The City has also applied for grant funding to complete a Local Wetlands Inventory (LWI) after the UGB expansion and to prepare a concept plan for the expansion area. The wetlands inventory may identify additional protected areas, resulting in less land available for development and more land preserved as open space.
- Expanding the Urban Growth Boundary does not automatically annex property into the City. Annexation is entirely property-owner driven. If landowners do not want to annex into the City, they are under no obligation to do so. Growth will occur only if property owners choose to annex and there is market demand.
- If population projections ultimately prove too high, annexations may never occur. UGB planning is about preparing for potential future growth—not forcing growth.
- Conversely, failing to plan for enough housing increases pressure on the existing housing supply, making homes less affordable for current and future Molalla residents.
Please take the time to attend the Town Hall, ask questions, and make your decision based on facts rather than fear or misinformation. An informed community is always stronger than one driven by rumors.
