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Home My WebLink About2025-06-03 Council Mtg MIN ASHLAND CITY COUNCIL BUSINESS MEETING MINUTES Tuesday,June 3,2025 6:00 PM Business Meeting Council Present: Mayor Graham, Dahle, Bloom, Kaplan, DuQuenne, and Hansen. Council Absent: None Staff Present: Jordan Rooklyn Deputy City Manager Johan Pietila City Attorney Alissa Kolodzinski City Recorder Marianne Berry Finance Director Bryn Morrison Deputy Finance Director Brandon Goldman Community Development Director Scott Fleury Public Works Director Marshall Rasor Fire Chief I. CALL TO ORDER Mayor Graham called the meeting to order at 6:01 p.m. a. Land Acknowledgement" Bloom read the land acknowledgement. II. PLEDGE OF ALLEGIANCE Kaplan led the pledge of allegiance. III. ROLL CALL IV. MAYOR'S CHAIR OF THE COUNCIL ANNOUNCEMENT a. National Flag Week Proclamation - Graham read the proclamation for the record. Mayor Graham announced a Coffee and Conversations event on June 17 from 1:00 to 2:30 PM at Railroad Park, inviting residents to discuss city matters. She also remembered former Mayor John Stromberg, highlighting his kindness,dedication to Ashland,and legacy in watershed protection.The council observed a moment of silence in his honor. V. APPROVAL OF MINUTES a. Minutes of the May 19,2025 - Study Session Meeting b. Minutes of the May 20,2025 - Business Meeting Bloom moved to approve the May 19,2025,Study Session Meeting minutes and the May 20, 2025,Business Meeting minutes. Hansen seconded the motion. Roll Call Vote:Hansen, DuQuenne,Kaplan,Bloom,and Dahle voted yes.The motion passed. VI. CONSENT AGENDA Dahle requested to pull item D and DuQuenne requested to pull item C for clarification. a. Approval of Liquor License for Little Tokyo, Live at the Armory,and Tacos Libertad b. Resolution No.2025-14- A Resolution Relating to Solid Waste Management Service Rate and Repealing Resolution 2024-11. June 3,2025 Page I of 6 c. Contingency Draw for Fire Department d. Water Rate Resolution-Approval of 2025-2027 Biennium Water Rates e. Approval of Goods&Services Contract -Water Quality Temperature Trading Program Partnership (2025-2031); Phase 3A Stewardship& Monitoring f. A Resolution Allocating BN23-25 Transient Lodging Tax Funds to the Oregon Shakespeare Festival g. Approval of Personal Services Contract - Ashland Chamber of Commerce (DBA Travel Ashland) Destination Marketing Activities Bloom moved to approve consent agenda items A,B,E,F,and G. Dahle seconded the motion.Roll Call Vote:Hansen,DuQuenne,Kaplan,Bloom,and Dahle voted yes.The motion passed. VII. SPECIAL PRESENTATIONS a. ODFW Special Presentation Dan Van Dyke, District Fish Biologist for ODFW (Oregon Department of Fish and Wildlife), detailed Ashland's vital role in stewarding Bear Creek's salmon and steelhead populations (see attached presentation).The City's need to enhance ordinances, maintain riparian vegetation, and adapt to climate change was emphasized.Van Dyke advised supporting a multi-story canopy of native trees, boosting enforcement, and coexisting with beavers. Challenges such as climate change, non-native species, and urbanization's impact were also discussed. Council questions were addressed on water quality and treatment, noting that improvements like the updated water treatment plant have positive impacts on fish habitats and water conditions over time. The collaborative work with DEQ to manage impact on water quality in the watershed was acknowledged. Three community members spoke in support of Van Dyke's recommendations to enhance riparian and salmon habitat protection. Vill. PUBLIC FORUM - Citizen Eric Navickas apologized to the council for a prior response to the police chief and shared how personal experiences influenced his views on social justice. He expressed concern over city exclusion laws and spoke against injustices towards the impoverished and marginalized. IX. PUBLIC HEARING a. Biennium Budget Adoption and Approval of Other Related Budget Resolutions Rooklyn presented the biennium 2025-2027 budget and accompanying resolutions for adoption. Changes from the Citizens Budget Committee recommendations were highlighted, including the source of childcare grant funds supported by council motion. Berry spoke of the discrepancy in budget numbers between the resolution and what the Citizens Budget Committee had approved.The total budget amount is $374,021,893 for the biennium 2025-2027, reflecting a decrease of$135,000 from the previously approved balance due to adjustments in funding sources for childcare grants. Berry also explained the purpose of the additional resolutions accompanying the budget, including qualifying state revenues, marijuana and liquor state taxes, and setting the property tax levy. June 3,2025 Page 2 of 6 Public Hearing Open Citizen Paul Mozina expressed concerns about the public safety fee increase and questioned the financial performance of the single-roll ambulance program. Public Hearing Closed Decision: Dahle moved to approve Resolution 2025-17 adopting the biennium 2025-2027 budget and appropriations.Bloom seconded the motion. Roll Call Vote:DuQuenne- No; Dahle,Bloom,Hansen, and Kaplan-Yes.The motion passed. Hansen moved to approve Resolution 2025-18,certifying City of Ashland services. Roll Call Vote: Hansen,DuQuenne,Kaplan,Bloom,and Dahle voted yes.The motion passed. Bloom moved to approve Resolution 2025-19,declaring the city's election to receive state revenues. DuQuenne seconded the motion.Roll Call Vote:Hansen, DuQuenne,Kaplan,Bloom,and Dahle voted yes.The motion passed. Kaplan moved to approve Resolution 2025-20 to levy taxes for fiscal year 2026.Bloom seconded the motion. Roll Call Vote:Hansen,DuQuenne,Kaplan,Bloom,and Dahle voted yes.The motion passed. Kaplan moved to direct staff to report next spring the third quarter financial report,seeking council direction on whether a supplemental appropriation is warranted for homelessness services for the second year of the biennium.Bloom seconded the motion.Roll Call Vote:Hansen, DuQuenne, Kaplan,Bloom,and Dahle voted yes.The motion passed. b. Public Hearing and First Reading of Ordinance 3264 Creating Section 13.40 of the Ashland Municipal Code Establishing Recreational Immunity Protections Pietila presented the first reading of Ordinance 3264,which would create a new section in the Ashland Municipal Code to establish recreational immunity protections. This ordinance would allow the city to opt into certain protections specified in Senate Bills 1576 and 179,which extended recreational immunity to public entities for activities such as walking,running,and bicycling on trails or unimproved rights of way. Most public entities in Oregon have already opted into these protections.There is no direct cost or budget impact to the city,and it could potentially reduce future expenditure based on risk. Public Hearing open No comments Public Hearing closed Decision: Hansen moved to approve Ordinance 3264 as presented.DuQuenne seconded the motion.Roll Call Vote:Hansen,DuQuenne,Kaplan,Bloom,and Dahle voted yes.The motion passed. June 3,2025 Page 3 of 6 c. Public Hearing and First Reading of Ordinance 3265,adopting the 2025 Economic Opportunities Analysis as a technical support document to the Economic Element of the City of Ashland Comprehensive Plan Goldman and Elliot Weiss from Community Attributes Inc. (CAI) presented the 2025 Economic Opportunities Analysis (EOA) (see attached presentation).They explained that the EOA provides a data-informed picture of Ashland's local economy and land availability to support economic development and employment growth over the next 20 years.Weiss reported on critical outcomes from the analysis, highlighting trends in population and demographics,forecasts for employment,and data on the real estate market. Importantly, it was observed that, per the buildable lands inventory, Ashland possesses a surplus of land designated for employment purposes. Discussion focused on how remote work factors into the EOA affecting Ashland's jobs-to-housing balance.Weiss detailed the various data sources used to measure employment by residence and workplace, highlighting the necessity of accounting for remote work trends in economic planning. It was clarified that the EOA's regional forecast does not anticipate ongoing growth in construction. Additionally,there was a discussion on integrating the EOA with strategic planning to enhance Ashland's economic development. Public Hearing open No comments Public Hearing Closed Decision: Kaplan moved to approve the first reading of Ordinance 3265 adopting the 2025 Economic Opportunities Analysis as a technical support document to the Comprehensive Plan Economy Element and scheduled second reading for June 17,2025.Dahle seconded the motion. Roll Call Vote: Hansen,DuQuenne,Kaplan,Bloom,and Dahle voted yes.The motion passed. Recess taken 7:46-752 X. ORDINANCES,RESOLUTIONS AND CONTRACTS a. Second Reading of Ordinances 3249, 3250,3251,and 3263 to implement the Climate Friendly Area Overlay&Written Findings Adoption Goldman presented the second reading of four ordinances related to implementing the Climate Friendly Area (CFA) overlay (see attached).Amendments made between the first and second readings allowed for additional building height up to 60 feet for multifamily and mixed-use developments within the CFA overlays and downtown zone when at least 25% of dwelling units qualify as affordable housing. These ordinances align with several of Ashland's adopted council goals, including fostering environmental resilience, promoting housing and livability,and supporting a diverse and resilient economy. Decision: Kaplan moved to approve Second Reading of the following ordinances: Ordinance#3249 as amended,an ordinance amending the Ashland Land Use Ordinance to repeal Chapter 18.3.14 Transit Triangle Overlay and replacing it with a new Chapter 18.3.14 Climate Friendly June 3,2025 Page 4 of 6 Overlay; Ordinance#3250,an ordinance amending the adopted Zoning Map to add the Climate Friendly (CF)Overlay; Ordinance#3251,an ordinance amending the adopted Site Design Zones Map to align the extent of the Detailed Site Design Review Overlay Zone to include the full extent of the Climate Friendly Area Overlay Zones; Ordinance#3263 as amended,an ordinance amending chapters 18.2.1,18.2.2,18.2.3.130,18.2.6, 18.3.12,18.3.13&18.4.2.040.c of the Ashland Land Use Ordinance to align with the new climate friendly area regulations and ensure implementation of applicable development standards; And adopt the written findings as presented. Bloom seconded the motion. Roll Call Vote:Hansen, DuQuenne,Kaplan,Bloom,and Dahle voted yes.The motion passed. XI. UNFINISHED BUSINESS a. Assistance Program - Adoption Berry introduced changes to the utility assistance program targeting higher eligibility,year-round availability, and lower administrative tasks. The updated program replaces the current setup and eliminates the senior citizen and disabled discount resolution. Essential updates include using SNAP or OHP as qualifiers and offering a 30% discount on water, electric, and sewer with a $400 cap annually. Mid-year budget reconciliation will be conducted to consider necessary adjustments during the biennium. Kaplan moved to adopt Resolution 2025-21 that establishes the utility discount based on income threshold qualifiers and cap in the staff report for the utility assistance program effective July 1, 2025,and repeal Resolution 1992-22 on the senior citizens utility discount.Bloom seconded the motion.Roll Call Vote:Hansen,DuQuenne,Kaplan,Bloom,and Dahle voted yes.The motion passed. Consent Agenda items c. Contingency Draw for Fire Department Berry clarified the request for a contingency draw of $550,000, mainly for overtime costs due to Oregon paid leave and mandatory staffing.An additional $150,000 was needed for the replacement of the fire station alerting system. Rasor noted that maintaining current staffing levels helps prevent vacancies, which would otherwise lead to overtime costs.Questions arose regarding the impact of the single-roll ambulance service on expenses and whether new hires contributed to the situation. Rasor confirmed that filling positions is crucial to mitigate overtime.The importance of mandatory staffing levels for safety was also emphasized during the discussion. Bloom moved to approve Resolution 2025-16 that will transfer$700,000 from the general fund's contingency line to the fire department's budget.Hansen seconded the motion. Roll Call Vote: Hansen,DuQuenne,Kaplan,Bloom,and Dahle voted yes.The motion passed. d. Water Rate Resolution-Approval of 2025-2027 Biennium Water Rates Fleury presented the proposed water rate changes for the 2025-2027 biennium,which aimed to keep lower commodity charge tiers as low as possible while raising upper tiers,especially in the summer season,to capture more revenue. Key changes included raising the first tier from 300 cubic feet to 500 June 3,2025 Page 5 of 6 cubic feet,with a 1.8% increase for fiscal year 2026.The customer charge was increased to reflect rising administrative costs since 2019. Councilors discussed equitable water pricing,where tier adjustments aim to reduce costs for minimal consumption and increase rates for high usage to curb excess.They appreciated the balance in service costs, maintaining quality standards, and minimal first-year meter charge increases to ease resident financial burdens.While staff efforts were acknowledged, some opposed raised consumption caps,asserting they don't align with conservation and equity goals, resulting in differing views on the rate changes. Dahle moved to approve Resolution 2025-12,a resolution revising rates for water service pursuant to Ashland Municipal Code section 14.04.030 and repeal Resolution 2019-10.Bloom seconded the motion.Roll Call Vote:Dahle,Bloom,and Hansen voted yes.Kaplan and DuQuenne voted no.The motion passed. XII. NEW BUSINESS a. Voting and Appointment of Council Member The council conducted a vote to fill the vacant council seat using the Exhaustive Ballot Method. In the first round of voting, Derek Sherrell received three votes from Councilors Hansen, Dahle,and Bloom, securing the appointment. Councilor Kaplan voted for Meg Wade,and Councilor DuQuenne voted for George Kramer. Kaplan moved to appoint Derek Sherrell to the Ashland City Council.DuQuenne seconded the motion.Roll Call Vote:Hansen,DuQuenne,Kaplan,Bloom,and Dale voted yes.The motion passed. XIII. CITY MANAGER REPORT XIV. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS DuQuenne announced the upcoming Juneteenth celebrations in Jackson County and Ashland, including events at SOU on June 10, Pear Blossom Park on June 21, and Railroad Park on June 22. Dahle reminded everyone about the upcoming airport event featuring kids' science activities and emergency services demonstrations, scheduled for this Saturday. Graham reported on her recent tour of the Jackson County jail with Senator Wyden, noting ongoing discussions about social services and community issues related to the facility. XV. ADJOURNMENT The meeting was adjourned at 8:50 p.m. AIL LA Ai ( /� 14 A City Recorder Alissa Kolodzinski Mayor onya Graham June 3,2025 Page 6 of 6 C IT Y OF ASHLAND 6da J*.rha A Proclamation in Honor of Flag Day 2025 Whereas, the first official flag of the United States was adopted on June 14, 1777, by an act of Congress; and Whereas, on Aug. 3, 1949, Congress designated National Flag Day, which was to be celebrated on June 141h of each year; and Whereas, the annual event is an opportunity to learn more about the history of the American flag and to honor and show respect for our veterans who have served our country with courage under this flag; and Whereas, the American flag has always stood for the aspirational goal that our nation will be a place where people of all backgrounds, creeds, and philosophies support and defend the Constitution as the bedrock of our Democracy, and all people are guaranteed due process in a system dedicated to the rule of law; and Whereas, our nation is currently engaged in a vigorous society-wide debate about whether those values remain the values of our nation. Now therefore, I, Tonya Graham, Mayor of the City of Ashland, Oregon, do hereby proclaim June 14, 2025, as Flag Day in the City of Ashland and urge all residents to contemplate what they can do to ensure that our flag symbolizes our devotion to freedom, equal rights for all, and the rule of law here and abroad - and then to act peacefully on those contemplations. Dated this 3.d day of June 2025 Tonya Graham, Mayor Alissa Kolodzinski, City Recorder .6 i Ashland Headwaters of Bear Creek Bear Creek snapshot Impacted watershed • Native fish still present • Salmon, steelhead in Ashland • Fall Chinook up since 1970s • Coho persisting • Steelhead broadly distributed Steethead and stewardship • Most abundant fish in Ashland • Live in streams up to 3 years • Coldwater species 55F-64F d • Stressor spiral • Warm water • Climate projections • Exotic fish Riparian vegetation • Native trees, native shrubs along streams • Multiple benefits/climate resilience • Shade • Reduces erosion • Riparian process—snags, LWD • Wildlife • Food for beavers • Multistory canopy • Protected by land use law Riparian protection Oregon's land use law 50 feet • Development setback • Some impact allowed if planting to improve habitat • Vegetation protected Problems ! �` • Lower Kitchen Creek IFS0 + Rogue Valley Audubon,Southern Oregon Land Conservancy, Riverkeeper Ordinance review I Met with Community Development Recommendations 1 . Foster a multistory canopy of native trees and native shrubs • Requires enforcement of city riparian ordinance. 2. Strengthen the ordinance • Add language from county—no permits until code violation resolved • Simple mitigation/landscape plans 3. As a city, learn to live with beavers 4. Lead the valley in stewardship • Pass along Bear Creek salmon and steelhead to future genera CITY OF ASH LAND ECON OM IC OPPORTU N ITY ANALYSIS CITY COUNCIL C:A I June 3,2025 CONTENTS 11*3 Introduction National, Regional, Employment And Purpose and Local Trends Land Sufficiency ''' — 000 — Community Economic Strategic Development Priorities Considerations 2 INTRODUCTION AND PURPOSE PROJECT INTRODUCTION What is an Economic Opportunity Analysis ( EOA)? • A State-required analysis under OAR 660-009- 0015 that evaluates future land availability for employment uses. • Compares projected demand for employment land (industrial, commercial, etc.) with the - existing land supply. • Typically adopted as a technical appendix to the comprehensive plan, to provide the ' `^ foundation for updated economic policies. June 2025 City of Ashland EOA PROJECT Elements of an EOA : 1. Review of national, state, regional, county and local economic and market trends 2. Identification of required site types (sites to accommodate employment growth) 3. Inventory of industrial and other employment lands 4. Assessment of community economic development potential Y 5 June 2025 City of Ashland EOA NATIONAL , REGIONAL , AND LOCAL TRENDS RECAP OF LOCAL TRENDS Growth Rate a Tenure (2023) Ashland's population grew at a ® 45% of households are CAGR of 0.5%from 2010 to 2024 homeowners (61% county) • Jackson County grew at a CAGR of • 44% are renters (33% county) 0.6%, and Medford grew at 1.2% in 11% of units are vacant or the same period. partially vacant (6% county) . . . (includes short-term rentals and second �►�� Demographics homes) Compared to the region, Ashland's population is Housing Inventory • Older • Ashland had 11,500 housing • More educated units in 2023 • Whiter 0 59% are single-family homes AHousehold Size • 78% of households in Ashland have one or two people (2023). 7 June 2025 City of Ashland EOA RECAP OF FINDINGS PRESENTED 4 / 22 LOCAL TRENDS ON Land Use AJobs-to-Housing Balance About 17% of Ashland's land is • Declined from 0.78 (2013) to 0.74 (2023) zoned for employment-uses • Lower than the regional average (0.85 - Employment-zoned land for the Rogue Valley and 1.08 for makes up 8% Oregon); likely defined by a higher share - Commercial land is an of retirees additional4% 6iih% Regional Labor Flows - Industrial land is 1% • 37% of Ashland's working residents work - The remaining 4% is made up in Ashland; others commute to Medford of special districts like the and other areas Croman Mill District and the • 311/oof jobs in Ashland are filled by local Health Care Services District. residents; the remainder come in from elsewhere in the region Climate Hazards rated as high-probability, Top Inflow Industries (2022) high-vulnerability in Ashland per • Accommodation & Food Services (+638) the 2024 hazard mitigation plan • Educational Services (+596) include • Retail Trade (+354) Wildfire, Drought, Air quality, June2025 City of Ashland EOA Extreme heat, Earthquakes 8 NATIONA Exhibit 1.U.S.Unemployment Rate and Labor Force Unemployment Participation,2000-2024 National unemployment to ment fell to 4.1% in UnempioymentRate Labor Force Participation Rate 2024, returning to pre-pandemic lows. 16.E 67.3% 148r 68.0 Labor force participation rebounded to 62.6%, though still below early 2000s 14'0% 66.C"/, levels. 12.0% 10.0% 9.9« 64.0-/ Inflation 62.6% 8.0% 62.M • Consumer Price Index (CPI) inflation is at 2.4%, up from 1.6% in 2019. 6.0% 447 0. % 4.1-/,Oa0% • Inflation has been generally steady for 9 4.0% months. 2.0% sa.0%% Interest Rates 0.0% N fh Ran 56.0% • Federal fund borrowing rate is at 4.3% g �O tti O-Nth Y�br\ mP CV ch R R HURRRRfZR�RRR Rf�V Interest rates have been fairly steady Sources:U.S.Bureau o/Labor Statistics,2024;CAI,2024. since Dec 2024 9 June 2025 City of Ashland EOA Population Growth • From 2010 to 2023, Oregon's population grew by 0.9%per year (12%total),with Jackson County Exhibit 2.Proportion of Workers 16+Who Work from Home, growing by 0.7% (10%total) and Josephine County Oregon,Jackson County,Ashland &Medford,2010&2023 by 0.5% (7%total). • Both counties ranked mid-range among Oregon 25.0% counties. 2010 21.1- 2023 Economic Composition 20.0% • The regional economy is largely service-oriented, 17.0% with Services, Retail Trade, and Education & Health 150% each composing 21-24%of private sector jobs in the 1227. 13.3 Jackson and Josephine 2-County Region as of 2022. t o.o-� (Note.Private employment excludes public sector, including 10.0% some government and public school jobs.) 6.1% 6.7% Remote Work 5.0% • Regional trends toward more workers reporting working from home are more pronounced in 0.0% Ashland. Oregon Jackson county Ashland Medford • In 2023, 17%of Oregon's workers report working Sources.ACS5-year Estimates,2023;CAI,2025. from home, compared to 12%in Jackson County and 21%in Ashland. 10 June 2025 City of Ashland EOA Exhibit 3.Top 10 Industries(at 3-digit NAICS) by Employment,Location Quotient,and Growth,Jackson Jackson County added 14,0 0 0+ County private jobs from 2010 to 2022 (CAGR CAGR(2010.2022) Bubble Size Reflects 2022 of 1.5%). Employment 4-"Spcxting - These sectors show both strong local Hobby,Book,a 624 Social Stores.3,B3 employment and growth in Jackson 541 Professional. Y Assistance, Count from 2010 —2022. 38 scToc Conpct° Sporting Goods Manufacturing 1ecMi Contractors, 621 Ambulatory Servic Health Care and Dri 722 Food S—ices.6,890 (NAICS 4 51) 561 Adminiskoti .�., Healthcare Services (NAICS 621 1.0% SupprA Services, 623 Nosing and 622H Residential Care 622r 623 & 624) 4.155 Faclfitkm 2,766 65etrvldcesa4-1521 • Food & Beverage Establishments (NAICS 722) 0.1% 1.00 location Quotient(2022) 10.00 Sources Oregon Employment Department 2010&2022;U.S.Bureau o(Labor Statistics,2022;CAI2024. June 2025 City of Ashland EOA ASHLAND 'S ECONOMY Total Employment (2022) Exhibit 4.Total Employment by Industry,Ashland,2010&2022 9,104 total jobs, with strengths in Share of CAGR ' Leisure& Hospitality Industry Ashland Jobs Ashland Jobs Jobs (2010- • Retail (2010) (2022) (2022) 2021) • Education Accommodation and Food Services 1,387 1,620 18% 1% Retail Trade 1,163 1,379 15% 1% Health Care Educational Services 115 1,362 15% 23% Health Care and Social Assistance 1,187 1,129 12% 0% Arts,Entertainment,and Recreation 691 674 7% 0% Private Sector Growth Trends (2013— Manufacturing 410 589 6% 3% Professional,Scientific,and Technical Services 287 480 5% 4% 2023) Other Services(excluding Public Administration 233 377 4% 4% Private employment growth of 516 jobs Administration&Support,Waste Management 152 320 4% 6% Information 179 244 3% 3% over this time (CAGR of 0.6%) Public Administration 1 2% 55% . Fastest growth in Construction +9.9% Construction 104 179 79 2% 5% es ( ) Wholesale Trade 128 143 27. 1% (Private employment excludes public sector jobs) Finance and Insurance 207 140 2% -3% Real Estate and Rental and Leasing 98 118 1% 21Y Transportation and Warehousing 28 64 1% 7% Forecast(2025-2045) Management of Companies and Enterprises 68 51 1% -291 Agriculture,Forestry,Fishing and Hunting 11 40 0% 11% Private employment is projected to grow Mining,Quarrying,and Oil and Gas Extraction 7 017 18% from 8,644 to 10,045. Utilities 0% 0% 6,448 9,104 2.9% +654 in Leisure& Hospitality Sources U.S.Census Bureau Longitudinal Employer-Household Dynamics(LEHD),2022; +422 in Health Care CAI,2025. • +165 in FIRE 12 June 2025 City of Ashland EOA -ASHLAND REAL ESTATE Exhibit 5.Downtown Retail Lease and Vacancy Retail Rate,Ashland, 2012-2024 • Citywide: lease rates dropped from Lease Raie($/Sgft) $29.73/sf(2018)to $20.99 (2024); $40.00 1 2.0y 536.81 Vacancy as of 2024 is 2.0% moo • Downtown: Lease rates at$17.00/sf(2024) 10.0% &vacancy down to 1.6%from 11.3% $W.00 (2021) $2s.00 s25.30 , - � 8.0% $20.32 ', ,' $20.00 6.0% Office t 17•00 • Most recent delivery was 8,000 sf in 2021. $15.00 4.0% r • Lease rates declined from $22.68 in 2021 $10.00 $12.20 to $18.96 $5.00 70M • Vacancy rates at 2.5% as of 2024. 1 1 t f 01Mv�amv •PW' N !2 V '.A :2 h G� O• �i. O O s O CCN N C4 (CV C11 N 04 (CV N N N N N Sources:Costar,2024;CAI,2025. 13 June 2025 City of Ashland EOA ASHLAND REAL ESTATE Exhibit 6.Industrial Lease and Vacancy,Ashland, 2007-2024 Industrial Trends Lease Rate($/Sgft) • Vacancy reached 26.7% in 2024; likely $16.00 35.0% affected by new supply (delivery of $14.00 $13.59 30 0% 28,000 sf in 2023), business disruption, $12 00 and/or regional competition 2s.o� Lease rates fell to $10.47/sf, down from $l o.00 $9.7a $10.47 20.0% $13.59 (2023) $8.00 $6.72 rj $6.00 15.0% Hospitality Sector $400 10.0% Lost some inventory post-covid (-123 $2 00 5.0% rooms) • Occupancy rates have since recovered to $0.00 0 o N `2 h °o o N N N 0.0% pre-pandemic levels (62.0% in 2024) O O 04 O O N O O N O O O O O O O O O O Sources Costar,2024;CAI,2025. 14 June 2025 City of Ashland EOA Housing Exhibit 7. Median Home Sale Price,Ashland, Medford, • Median home sale price peaked at Jackson County and Oregon,Jan 2012—March 2025 $690,000 (Sept 2024) $nnoK • 43% of listings in Ashland sell within ;,WK 5690K two weeks (March 2025). WOK Oregon Income & Cost Burden s510K • Household income in Ashland grew at 4% $500K S4ioand • CAGR (2010-2022) $4)'r$22OK S445K Cost-burdened households declined at Jackson County $3f K1K ��'^' S435 K -2% CAGR (2010-2023) $?tXIK • 26% of households in 2021 earned less than 50% AMI (which was $73,100),- only $icx'K $1'K8K 12% of housing units were affordable at '$0K$142K that income level o c o 0 0 o N (N � IN b r Sources.:Redfin,2025;CAI,2025. 15 June 2025 City of Ashland EOA M E T H O D O L O G Y 1. SUPPLY 2 . DEMAND CAI isolates and extract Using a detailed the supply of buildable employment forecast, employment(commercial L demand in total and by category is modeled for 2024 BLI.industrial) land from the employment land. 3 . RECONCILE 4 . SITE TYPES Supply of employment -_ Site types that may be land is reconciled with needed by Ashland's target demand in aggregate industries is characterized. and by category. 17 EM PLOYM ENT LAND SUMMARY FINDINGS Ashland's Employment Land V�/EE—WO"Wf p— Supply p BLI Segment&comp Plan • According to Ashland's Designation � te.IYx>nt Buildable Lands Inventory (2024), Ashland has 181 acres of net buildable � / _ • �fmpPrreM PMMIiy"°C°I1: employment land-'-Gan IE pI P°rt YxaM 1 compared to 76 acres of forecasted demand This is an estimated ,am '� l w surplus of more than 100 acres within the city and LIGB. AA ✓ June 2025 City of Ashland EOA �8 EMPLOYMENT LAND SUMMARY FINDINGS Accommodating Future Growth & Sector Opportunities • CAI forecast suggest growth of 1,400 jobs by 2045 (0.7% cagr) that will require commercially or industrially zoned lands. • Ashland has capacity to accommodate stronger-than-forecast employment growth over the next 20 years. • Despite the overall surplus, there may be a shortage of small, centrally located commercial sites—particularly in or near Downtown. • Some demand could be met through underutilized Employment-zoned (E-1) lands, but businesses tied to foot traffic (e.g., OSF-oriented retail) may continue to prefer downtown locations. Number of Vacant Tax Lots Less than .5 to 1 More than Comp Plan Category .5 ac ac 1-5 ac 5-20 ac 20 ac Total Commercial 13 5 5 1 0 24 Downtown (Commercial) 5 3 0 0 0 8 Employment 37 13 35 3 1 89 Croman Mill (Employment, Ind. &MU) 1 2 5 4 1 13 Industrial 0 0 6 0 0 6 Total 56 23 51 8 2 140 June 2025 City of Ashland EOA 19 EMPLOYMENT LAND SUMMARY FINDINGS ` Key Development Considerations _ r % Croman Mill and the Railroad District offer the largest contiguous ' development opportunities—this land is largely controlled by two `= landowners Publicly Owned Land Offers Additional Development Potential — �� While not included in the formal buildable lands inventory, city- ' 04i► and SOU-owned properties present valuable opportunities for -,t strategic development, partnerships, and community-serving _ projects. Opportunity: Enhance visibility and access between E-1 areas and Downtown through pedestrian connections, wayfinding signage, and brand alignment. • Opportunity to target development on value-aligned industries, such as outdoor recreation equipment manufacturing, craft food and beverage production City of Ash land EOA 20 RECENT ADJUSTM ENTS DLCD Guidance • Reference OAR chapter 660-009-0015. • Clarify that our analysis is based on the 2024 Buildable Lands Inventory published by the city. • Detail the constraints the City deducted as part of the 2024 BLI (in accordance with DLCD guidance) including; • Publicly owned land was generally not considered available for commercial or industrial use; • Land with slopes of 35-percent or greater and land within the 100-year flood plain was not considered buildable; • Portions of otherwise buildable parcels intersecting with such constraints have had acreage deducted from the gross total, resulting in a net buildable acreage figure 21 COMMUNITY ECONOMIC DEVELOPMENT PRIORITIES EN GAGEM ENT ACTIVITIES E9 Interviews and Focus Groups (9) Regional Survey Businesses, Stakeholders, and Of Residents and Businesses Technical Experts 472 survey responses across Jackson County • 174 live in Ashland • 125 work in Ashland • 79 own/manage a business in Ashland Student Forum Southern Oregon University May 2025 City of Ashland EOA 23 COMMUNITY ECONOMIC DEVELOPMENT PRIORITIES • Tourism anchors exist and residents wish to diversify Ashland's tourism economy. Leverage assets like recreation and plan proactively for challenges like wildfire 111 smoke and rising cost of living . t Businesses are challenged by inflation, finding qualified employees, labor costs, and high cost of living locally for workers. Barriers to accessing Ashland's many amenities exist, especially for younger and economically disadvantaged families and individuals- cost of living is the primary barrier. June 2025 City of Ashland EOA 24 COMMUNITY ECONOMIC DEVELOPMENT nRIORITIES • Student retention. Students seek more integration into the community and want `7 more inclusive, affordable entertainment— especially for those under 21 or without a car. Lack of high-wage jobs and limited career ' I ' t opportunities deter long-term retention. • Development hurdles. While there is support for growth which honors Ashland's identity `'� � - ="" rrr perceived difficulty developing may act as a barrier. • Downtown. There is support for further investment in downtown and Bend, OR, was most often described as a city Ashland can emulate. June 2025 City of Ashland EOA 25 TH EM E 1. Strengthen Economic Resilience through Diversification TH EM E 2 . Foster an Inclusive , Forward -looking Community THEME 3 . Unlock the Potential of Local Talent and Institutions ��ii■ TH EM E 4 . Make Space for Business Growth TH EM E 5 . Build Regional Partnerships to Scale Impact TH EM E 6 . Activate Ashland 's Lifestyle Advantage 27 NEXT STEPS • Present to City Council on Upcoming Milestones June 3 • Equity and Inclusion Self- Presentation to Assessment City Council(6/3) Pecommendatons • Recommendations for the updated Economic Element • All materials must be complete, via DLCD grant, by June 30 Presentation to Fquityand inclusion Planning Self-Assessment Commission(5/27) Questions and Matrix June 2025 City of Ashland EOA 28 T H A N K ■ COY 0 U M MUM ITT ATTNI■YTCS INC P{WL �OdP-I/fP__ THEME 1. STREN GTH EN ECO N O M IC RESILIEN CE TH RO UGH DIVERSIFICATION Ashland's economy is heavily reliant on tourism and service sectors, leaving it vulnerable to seasonal fluctuations, wildfires, cost of living challenges, and broader economic disruptions. There is interest expanding Ashland's tourism economy to attract more visitors at different times of the year. There is also interest to expand other sectors; This could include light manufacturing, tech, food production, wellness, and specialty industries— particularly those aligned with Ashland's lifestyle values and small-town character. May 2025 City of Ashland EOA 30 THEM E 2 . FOSTER AN INCLUSIVE , FORWARD - LOOKING COMMUNITY Ashland's strong sense of place and cultural identity are major assets, but there is a tension between preserving what exists and adapting to future needs. Residents recognize the need to welcome new residents, businesses, and ideas to avoid economic and social stagnation. Embracing thoughtful growth—especially that which supports families, younger residents, and diverse voices—mis seen as essential to keeping Ashland vibrant and relevant for future generations May 2025 City of Ashland EOA 31 THEME 3 . UNLOCK THE POTENTIAL OF LOCAL TALENT AND INSTITUTIONS There is untapped opportunity to better connect local educational institutions- particularly SOU and Ashland High School-o economic development goals. Strategies could include efforts to build career pipelines, host internships, develop networking programs, and support entrepreneurship, especially in partnership with regional organizations. May 2025 City of Ashland EOA 32 TH EM E 4 . r MAKE SPACE FOR BUSINESS GROWTH Ashland's built environment and development patterns could act as barriers to expansion. It is important to have flexible, ready-to-develop commercial and industrial space, as well as reasonable permitting costs and consistent regulations, to support economic growth. Sites such as the Croman Mill and the railroad properties are of strategic priority. May 2025 City of Ashland EOA 33 THEME 5 . ^� BUILD REGIONAL PARTNERSHIPS TO SCALE IM PACT Ashland's economic future is closely tied to the broader Southern Oregon region, and stakeholders highlighted the need for deeper collaboration with neighboring cities, SOREDI, the SBDC, and workforce partners. Stronger alignment is needed on land use planning, workforce development, business support, and infrastructure investment—particularly to access larger labor pools, grow entrepreneurship, and compete for state and federal funding. May 2025 City of Ashland EOA 34 ♦�I THEME 6 . ACTIVATE ASH LAN D 'S LIFESTYLE ADVANTAGE Ashland's greatest strengths--its natural beauty, safety, walkability, cultural amenities, and robust fiber infrastructure—are clear economic assets that position the city to attract remote workers, lifestyle-driven entrepreneurs, and talent seeking high quality of life. By strategically leveraging these assets, Ashland can better align its economic development efforts to attract the types of businesses, visitors, residents, and workers that reflect its long-term vision and values. May 2025 City of Ashland EOA 35 s -ASHLAND - b 'Ja w A� • City Council Ec nomic Opportunity Analysis June 3, 2025 Before the Council tonight Public Hearing and First Reading of Ordinance 3265, adopting the 2025 Economic Opportunity Analysis Mil nji - Economic Opportunity Analysis •State Mandate: Oregon cities must comply with Statewide Planning Goal 9 and OAR 660-009-0015 by planning for enough employment land to meet 20-year job growth projections. •Purpose of the EOA: The Economic Opportunities Analysis (EOA) identifies economic trends, evaluates employment land supply and demand, and informs future land use and economic development policy. • •The EOA provides a factual, technical foundation but does not itself enact new policies or regulations. r Economic Opportunity Analysis •Meets State Requirements: Replaces Ashland's outdated 2007 EOA and ensures compliance with Goal 9 and OAR 660-009- 0015. •Land Supply Assessment: Analyzes current employment land inventory and identifies gaps by size, location, and readiness. •Foundation for Strategic Planning: By providing up-to-date data and projections on regional and local economic trends, • the EOA establishes a strong foundation for future decision- making and development of economic development strategies aligned with Ashland's long-term goals. Recommendations: The Planning Commission, at their 5/27 public hearing, recommend Council adopt the 2025 EOA and implementing Ordinance. Staff concurs with this recommendation. i I i Suggested Council Motion: sI move to approve First Reading of Ordinance 3265, adopting the 2025 Economic Opportunities Analysis as a technical support document to the Comprehensive Plan Economy Element, and schedule Second Reading for June 17, 2025. i I-AN OF ASHLAND F: A CITY OF -AS H L A N D► , t* , 77, Awn City _ x r � councill Climate Friendly Areas June 3, 20251 Second Reading Ords. 3249, 3250, Before the Council 3 tonight ' Second Reading of Ordinances 3249, 3250, 3251 and 3263, adopting amendments to the Land Use Ordinance, Zoning Map, and Site Design Zones map to align with the new Climate e Friendly Area regulations, and adoption of Written Findings.arm -- ll IF +, L Climate Friendly Area: Amendments at First Reading Ordinance 3249 AN ORDINANCE AMENDING THE ASHLAND LAND USE ORDINANCE TO REPEAL CHAPTER 18.3.14 TRANSIT TRIANGLE OVERLAY AND REPLACING IT WITH A NEW CHAPTER 18.3.14 CLIMATE FRIENDLY F OVERLAY. Exhibit A. Section 18.3.14.050 Dimensional Standards, Table 18.3.14.050 Climate Friendly Overlay Dimensional Standards, Maximum Height With Bonus [footnote #6 ] is amended to read: Multifamily and mixed use dwellings meeting the standards for 25%affordable housing in section 78.2.5.050 are eligible for bonus height. Applicants may alternatively pursue height bonuses per ORS 197A.445. Climate Friendly Area: Amendments at First Reading Ordinance 3263 AN ORDINANCE AMENDING CHAPTERS 18.2.1, 18.2.2, 18.2.3.130, 18.2.6, 18.3.12, 18.3.13 & 18.4.2.040.0 OF THE ASHLAND LAND USE ORDIANCE TO ALIGN WITH THE NEW CLIMATE FRIENDLY AREA REGULATIONS AND ENSURE IMPLEMENTATION OF APPLICABLE DEVELOPMENT STANDARDS. Section 18.2.6.030 Unified Standards for Non-Residential Zones, Table 18.2.6.030 Standards for Non-Residential Zones , Building Height Maximum (feet) is amended to read: Buildings greater than 50 ft and less than 60 ft are permitted if they contain at least 25%of the dwelling units as affordable housing meeting the affordability standards in 18.2.5.050 or with napproval of a Conditional Use Permit. /air i Suggested Council Motions to adopt the ordinances and Written Findings and Conclusions of Law: iI move to approve Second Reading of the following ordinances: i • Ordinance#3249 as amended, an ordinance amending the Ashland Land Use Ordinance to repeal Chapter 18.3.14 Transit Triangle Overlay and replacing it with a new Chapter 18.3.14 Climate Friendly Overlay, • Ordinance#3250, an ordinance amending the adopted Zoning Map to add the Climate Friendly (CF) Overlay. • Ordinance#3251, an ordinance amending the adopted Site Design Zones Map to align the extent of the Detailed Site Design Review Overlay Zone to include the full extent of the Climate Friendly Area Overlay Zones. Ordinance#3263 as amended, an ordinance amending chapters 18.2.1, 18.2.2, 18.2.3.130, 18.2.6, 18.3.12, 18.3.13 & 18.4.2.040.c of the Ashland Land Use Ordinance to align with the new climate friendly area regulations and ensure implementation of applicable development standards. I move to approve the written findings as presented. I� Councilor Appointment ,` 6/3/25 Councilor DuQuenne Vote for one: Candidate Mark Brouillard Stephen Gagne George Kramer Mark Morrison Linda Peterson Adams Russell Phillips Derek Sherrell Meg Wade Councilor Appointment 6/3/25 Councilor Hansen Vote for one: Candidate Mark Brouillard Stephen Gagne George Kramer Mark Morrison Linda Peterson Adams Russell Phillips Derek Sherrell Meg Wade Councilor Appointment 6/3/25 Councilor Dahle Vote for one: Candidate Round 1 Round 2 Round 3 Round 4 Round 5 Round 6 Mark Brouillard Stephen Gagne George Kramer Mark Morrison L Linda Peterson Adams Russell Phillips Derek Sherrell Meg Wade Councilor Appointment arm 6/3/25 g . 1 Councilor Kaplan Vote for one: Candidate Mark Brouillard Stephen Gagne George Kramer Mark Morrison Linda Peterson Adams Russell Phillips Derek Sherrell Meg Wade councilor Appointment 6/3/25 Councilor Bloom Vote for one: Candidate Round . Mark Brouillard Stephen Gagne George Kramer Mark Morrison Linda Peterson Adams Russell Phillips Derek Sherrell Meg Wade Council Tally sheet Round 1 016\� a 0 Bloom x Dahle x DuQuenne x Hansen x Kaplan x 0 0 1 0 0 0' 3 1 Round 2 a° lk�S 10, Ile Bloom Dahle DuQuenne Hansen Kaplan 0 0 0 0 0 0 0 0 Round 3 June 3,2025