Oregon Land Use Laws Under Attack: Governor Accused of Land Grab

Some of the Oregon's richest farmland and the state's nationally heralded land use laws are under attack due a measure passed by the state legislature in its 2023 session. Ostensibly SB 4 was meant to provide grants and loans that semiconductor companies could access to acquire and develop land for new facilities and carry out research. These companies could then use that money as a gateway to apply for some of the $52 billion available in the federal government's 2022 CHIPS and Science Act to bolster domestic semiconductor manufacturing.

So far, that makes sense, right? Spend a little and possibly gain a lot of new business from a burgeoning industry.

What's alarming farmers, advocates and land use watchdogs is the second part of SB 4 that gives Governor Kotek sweeping powers to unilaterally shift a city's urban growth boundaries (UGBs) without a public process and no assessment of impacts on public utilities—semiconductor facilities use vast amounts of water and electricity—area farmers, the food system, and the environment. Then there's the influence that monied developers could potentially have on susceptible city and state officials. (But that wouldn't happen here in Oregon, right? Right?)

Semiconductor facility in Europe.

The website Friends of Smart Growth, established to promote a holistic, responsible, longterm approach to the state's lands, states that "Oregon’s working lands are imperiled, nowhere more so than in Washington County. Right now the city of Hillsboro has asked the governor to use her supposed authority under SB 4 to circumvent land use laws, good planning, and the public process to add 373 acres of first class farmland that are classified 'rural reserves' for the next 35-plus years."

Furthermore, "it allows the governor to unilaterally bring our farms, ranches, forests, and watersheds into urban areas with no guarantee that it will result in high-quality jobs for Oregonians or that it would leverage federal funding to the state. There is also no requirement for the governor to look first to the lands available inside UGBs," according to 1000 Friends of Oregon.

ACTION ITEM: Friends of Smart Growth is asking farmers, eaters, residents and lovers of Oregon's working and wild spaces to sign a petition urging the public to protect the state's farmlands and respect the land use system that has built a vibrant and livable Oregon. Sign it here.


UPDATE: Friends of Smart Growth has sent out a notice about a public meeting with Gov. Kotek at 6 pm on Thursday, October 10, at the Hillsboro Civic Center. It is the one opportunity the public will have to express an opinion on this issue. Members of the public can testify in person or virtually (information here). There is also a rally starting at 5 pm outside the center. The public can submit written testimony by Oct. 30 by e-mail or by mailing a letter to 900 Court Street Suite 255 Salem, OR 97301.

Issues to mention are:

  • Hillsboro already has the land: There are 10,000 acres of industrial land inside existing UGBs, including hundreds of acres of large lots in Hillsboro.
  • Hillsboro would have had more land if it hadn't squandered hundreds of acres on wasteful data centers.
  • Residents will likely ultimately pay for a lot of the increased cost of water and infrastructure for this expansion.
  • The facility does not need this much land: a similar facility in New York takes up just 73 acres.
  • At stake is some of the best farmland in the world: it can grow anything while sequestering carbon and providing habitat.
  • Intel should not receive more giveaways: Intel got $8.5 billion in federal CHIPS Act dollars this year and $800 million in state property tax breaks over 5 years, but is laying off 15% of its workforce. Intel's success doesn't depend on 373 acres of farmland.
  • The process is undemocratic: There is only one hearing, details are posted only 1 week beforehand, and appeals are severely limited. 

Top photo from Friends of Smart Growth. Photo of semiconductor facility from Wikipedia.

North Plains Residents Resist Land Grab by City and Developers

In what was being termed one of the biggest threats to Oregon's land use system in 50 years, the City of North Plains, just outside of Hillsboro, attempted to double the size of the city by proposing the biggest-ever Urban Growth Boundary expansion by percentage basis and the largest by acres in the metro counties.

"A single increase of this magnitude to a city’s boundaries is unprecedented in Oregon, and most of the expansion would be for industrial and commercial use, with only about 167 acres set aside for housing," according to a 1000 Friends of Oregon article on the battle between residents, developers, city bureaucrats and state regulators.

The proposed North Plains expansion area (in red).

Local residents and farmers opposed to the land grab banded together under the banner Friends of North Plains Smart Growth, which quickly organized a coalition against the city's ballot measure on the expansion, explaining to voters what the city was attempting and notifying residents of upcoming public hearings.

Led in large part by farmer Aaron Nichols, whose 15-acre Stoneboat Farm was just one farm removed from the city's proposed boundary expansion, the opposition effort became what he called his "second job" for a year, learning the labyrinthine intricacies of Oregon's land use system, first notifying the 500 families served by the farm's Community Supported Agriculture (CSA) subscriptions and then contacting local media and conservation organizations.

Citing an almost complete lack of public engagement, Nichols testified that "of the 26 meetings North Plains pointed to as public evidence, only three of these were public hearings that both followed proper noticing requirements and had an opportunity for the public to engage." His testimony charged that the plan itself was "poorly supported" and that much of the basic evidence was exaggerated or was simply missing, pointing out that even Dr. Brenda Bateman, the director of the Oregon Department of Land Conservation and Development (DLCD) stated that the city's plan relied on "incorrect facts."

Jesse Nichols (left), Aaron Nichols (right) and Aaron's son Asa (on tractor).

Just-released figures from the 2022 USDA Census of Agriculture show that the number of farms in Oregon decreased by six percent since 2017, and the acreage those farms occupied was down four percent in the same period. 1000 Friends of Oregon detailed that only about 16 percent of Oregon (excluding federal lands) consists of high-value soils, with only about four percent of those rated as prime farmland, and that efforts like those of the city of North Plains endanger those remaining valuable soils.

Putting those figures into perspective, 1000 Friends said that "while cities normally need to prioritize expanding onto non-resource lands or lands with lower-quality soils when proposing a UGB expansion, North Plains is surrounded almost exclusively by high-value farmland and prime soils. This means that any expansion would almost certainly pave over some of the best soils in the state and raises the ethical bar for proving that the expansion is what’s best for the greater community."

Stoneboat Farm supplies 750 local families with vegetables through its CSA subscriptions.

Expansion advocates tried to propose a separate bill (HB 4026) that was characterized as "intentionally designed to circumvent and suppress democratic participation by blocking future ballot referendums." Nichols said the efffort was a warning to those who might face challenges to their own local urban growth boundaries: "What [HB 4026] does, in fact the only thing [it] does, is have the legislature insert itself into a local issue to put a roadblock in the way of a community group. This bill forces our group to sue the state and, though as we and the city know full well the law will be quickly overturned, the city hopes that we will either be unable to raise the money for the lawsuit or it will exhaust our resources and harm our campaign. It is obvious that…placing a hurdle in the road for one side in one election, is not the place of the Oregon Legislature nor worth the time used on this bill."

On May 22nd of this year, the voters of North Plains rejected the city's ballot measure by a margin of 70 percent.

The city's response to the vote indicated the battle is not over: "The recent dialog on Measure 34-327 has highlighted a shared commitment among North Plains residents to prioritize our community’s livability and managed growth responsibilities,” said Mayor Teri Lenahan. “We are very early in assessing next steps for a future UGB expansion area." A hearing to discuss next steps is scheduled for Monday, July 15.