The Oregon City Planning Commission voted 4‑0 to recommend that the City Commission approve a development agreement and associated land‑use requests for the redevelopment of an existing service station at 1002 McLaughlin Boulevard (SP0605; variances VR0608; water resource exemption WR0608). The applicant proposes to demolish the existing structure and construct a new approximately 2,670‑square‑foot building, a canopy and two fuel islands on a roughly 13,500‑square‑foot parcel.

Staff presented the application as a development agreement because the property holds a Measure 37 claim permitting the gas‑station use under the prior zoning. Staff said the site has substantial constraints—existing underground double‑wall fiberglass fuel tanks remain in place and limit where the building and pumps can be located, and the parcel is small, which drives parking and landscaping tradeoffs. The applicant proposed to dedicate about 5 feet of right‑of‑way along 99E, provide basalt perimeter walls and curbing to match downtown character, install a pedestrian‑scale monument sign (about 7.5 feet tall), and separate and treat stormwater currently combined with sanitary sewer.

Requested variances: the mixed‑use downtown zone requires a minimum floor‑area ratio (FAR) of 0.5 and a minimum building height of 25 feet, and standard interior parking‑lot landscaping. The applicant proposes a smaller building (≈2,670 sq ft) and a building height well under 25 feet; staff said the applicant met many site‑design objectives in other ways and presented a narrative explaining why the FAR, height and interior‑landscaping standards are not practicable on this constrained site. Staff recommended conditions that require stormwater separation and treatment, a lighting plan (minimum average 0.5 foot‑candles where required), bicycle parking detail, and adherence to public‑improvement standards.

Tanks and environmental safeguards: counsel/property representative Bob Arsanjani said the existing underground tanks are double‑wall fiberglass and will remain in place; the tanks will be relined and tested, and DEQ will oversee required sampling. Arsanjani said demolition work will remove only the above‑ground structure and canopy; the applicant will not relocate tanks because doing so would be costly and require additional excavation.

Access and traffic: Commissioners questioned site access and queued vehicles at pumps. Staff and the applicant said ODOT reviewed the access configuration and did not object given planned McLaughlin Boulevard improvements, including a future median; applicant indicated access would use alley geometry in part and that consolidating existing driveway openings should improve operations compared with current conditions.

Measure 37 context and design tradeoffs: several commissioners noted tension between downtown design goals (closer building placement, taller facades and higher FARs) and the policy objective of honoring Measure 37 waivers for preexisting uses. Commissioners praised design elements proposed to reduce visual impacts (basalt walls, pedestrian sign, enhanced streetscape materials) while expressing that granting variances for height and FAR is an undesirable outcome in the long term; nevertheless they concluded the development agreement and conditions represent a reasonable compromise for an existing use on a constrained lot.

Outcome and next steps: Planning Commission recommended approval of the development agreement and associated variances and water‑resource exemption by a 4‑0 vote. The item will go to the City Commission on Wednesday, Sept. 20, at 7 p.m. (venue changed to McConaughey Chambers on Caine Road).