Sherwood Looks to the Future

BY: PRESTON KORST AND SAMANTHA THOMAS, HBA Staff

Relatively speaking, you’d think there wouldn’t be much that makes Sherwood, Oregon stand out. Geographically, it mirrors dozens of other cities in our area—30 minutes to downtown, an hour and a half to the coast, and a few hours to Central Oregon. At just under 4 square miles, it clocks in as the state’s 52nd largest city by land mass. And at 20,000 residents, it resembles the population and make-up of many other towns that dot Portland’s suburban landscape, including Wilsonville, Troutdale, Forest Grove, Happy Valley, and Milwaukie.

At first glance, you may not suspect that much of Oregon’s economic growth will depend on or be benefitted from the transformational and well-planned growth projected in Sherwood.

However, what makes Sherwood exceptional isn’t necessarily its past, but its future. Capitalizing on smart planning, public investments in schools and public safety, sizable economic development ambitions, and a highlyskilled workforce with a median household income that tops $105,000—the city has perhaps the brightest future of any in the region. It is why new businesses are looking to Sherwood for growth, and why many builders are eyeing new expansion plans as the next opportunity for large-scale residential development.

Economic Development: Semiconductor + Advanced Manufacturing Goals

Perhaps Sherwood’s most valuable asset is its proximity to hub sites for some of the world’s largest and most profitable companies. In any direction, Sherwood is fewer than 15 miles from nearly a dozen globally recognized companies in the tech, manufacturing, and apparel sectors. These include Nike, Intel, Tektronix, FLIR, Columbia Sportswear, Precision Castparts, LAM Research, and OHSU. Although benefitted from its closeness to major employers, it may explain why the city never needed to stimulate its own economic ambitions. But like other local governments, tax receipts are not as plentiful or reliable as in years past.

While many reading this magazine may have greater interests in the residential sector of the economy, there is no denying that newly minted state and federal incentives designed to support advanced manufacturing and semiconductor development will eventually trickle their way to new housing demands for a growing workforce. Legislators on both sides of the aisle and at every level of government have, in a rare moment of bipartisanship, recognized the need to invest in our ability to compete in a growing global economy. Two pieces of legislation, in particular, are likely to increase the number of new jobs and economic output in and around Sherwood:

1. Oregon’s Senate Bill 4 (2023) . Invests $200 million in state funding and authorizes greater flexibility for the governor to expand the urban growth boundary to accommodate advanced manufacturing and semiconductor development.

2. CHIPS and Science Act (2022). Directs the federal government to spend up to $280 billion in new funding and incentives to revitalize the U.S. technology industries, including $52 billion in new grants for research and development, workforce training, and sector capacity for semiconductor fabrication.

MIDDLE HOUSING IN SHERWOOD’S FUTURE

Eric Rutledge, Sherwood Community Development Director, and Bruce Coleman, Sherwood Economic Development Manager, shared with us that “Sherwood has seen limited interest from developers and the public for middle housing. New developments in the Brookman Addition feature low-density single-family homes despite allowances for duplexes, triplexes, and other housing types. The continued growth of single-family homes in Sherwood speaks to the continued demand for low-density development relative to the development encouraged under HB 2001.” While middle housing products are relatively new to the market, additions of this housing type in populated areas are becoming more common and there is the potential to see middle housing communities growing in the area.

Given its unique position to benefit from these new opportunities, Sherwood’s Mayor and city councilors share a vision of turning their community into a center for hightech innovation in its own right. Speaking of that vision, Eric Rutledge, Sherwood Community Development Director, and Bruce Coleman, Sherwood Economic Development Manager, said that growth in technology industries in Oregon will continue to make Sherwood a more highly valued place not only for living but also for startups and other tech companies to base their operations.

“Sherwood has been working to encourage the growth in semiconductors and other high technology companies including research and development, cleantech, [and] advanced manufacturing… With its location at a midway point between growing technology clusters in Hillsboro, Beaverton, Lake Oswego, and Wilsonville, the City has become recognized as a go-to location for such companies.”

Several companies, including Lam Research, NSI Manufacturing, and DWFritz Automation have all chosen to base operations in Sherwood’s newly developed TualatinSherwood Corporate Park. Schnitzer Properties is currently developing another 30 acres nearby at the Sherwood Commerce Center which will provide space for another 30 new and expanding companies to locate in Sherwood.

Regarding this, Rutledge and Coleman say that “the city is focused on becoming a balanced community” by bringing jobs closer to where people live, offering a greater level of work-life balance, and sustainability that companies find attractive. Collectively, an increased employment base will provide Sherwood with more reliable and diversified sources of income. They say that developing lands for more jobs and employment also “reduces future tax burden on residential property owners while providing high-quality schools, police, library, and other public services.”

Sherwood West Expansion Opportunity

To accommodate such prolific growth, Sherwood has undergone a near-decade-long planning project to expand its Urban Growth Boundary to the city’s west. The project and related tracts of land are collectively called Sherwood West, roughly 1,300 acres of undeveloped land that has the potential to accommodate 4,000 new homes, hundreds of new businesses, nearly a half dozen community parks, and a variety of hospitality and winery-related venue opportunities. Over the next 10 years, the City hopes to continue building high-quality neighborhoods with ample trails, including direct trail access to the Tualatin River National Wildlife Refuge, and open space for public enjoyment.

The planning commission and city council are expected to take up the issue this summer, followed by city officials going through a 6-month UGB expansion process beginning in December 2023. Formal approval of the plan could be decided as early as July 2024. If approved, the city can start the process of annexing lands and preparing to install the infrastructure needed to make these plans a reality.

However, there are two ways this long-awaited planning effort and the potential for economic growth could fail. One major hurdle could come from inaccurate calculations used to determine whether the region needs new housing lands weighed against growth projections. Metro could, through its own modeling forecasts, show that no new land expansions are necessary to accommodate new housing or employment growth. Another could be that the Metro Council does not feel that the plan is sufficient or that the city is prepared to execute its intended goals. In either case, Metro and the state’s Land Conservation and Development Commission will have the ultimate say in determining Sherwood’s land use planning ambitions.

Overcoming these potential obstacles will require vigorous advocacy from the home-building and business communities. Builders, businesses, and community groups will need to work together to ensure that involved decision-makers can clearly see the benefits that will emerge from the city’s well-planned vision for growth.

Residential Growth: Builders Sense Opportunity

Spotting these burgeoning growth opportunities, several builders in our region have already decided to begin new communities in and around Sherwood, with even more eyeing locations within and around the proposed expansion areas.

One such builder, Ichijo USA, is excited to work in Sherwood as part of a larger expansion in the Portland area. The schools, amenities, and proximity to Portland were all considerations. The new high school, the lower permit fees, the natural environment, and the nearby wineries were the advantages of building in the Sherwood market. Throw in the bustling old town area and you have an attractive market.

In the short term, Ichijo will be constructing twenty-nine homes in Sherwood with the potential to purchase more lots in the future. Masaki Narita, Vice President of Ichijo USA, shared that they are planning to build single-family detached homes that are net-zero energy-ready using all-electric heat pumps. The unique in-house contemporary designs and innovative proprietary products such as their cabinetry and interior doors set Ichijo apart. “There is a great need for housing in the area and Ichijo believes that our uniqueness is welcome in the market,” said Narita.

Narita expressed concern that there are not enough incentives available for builders to construct greener homes, which is what Ichijo is largely known for. “Ichijo puts extra money and time into our homes without significant credits. Another thing that jurisdictions can do is make it easier to build. The time it takes to get permits and land entitlement approvals adds time which increases the price of the home.” Permit wait times, land entitlement approval delays, and constantly-changing codes all affect construction costs and overall affordability. These are issues that many of our builder members are facing and are at the forefront of HBA’s advocacy efforts.