Goal 9 rules at OAR 660-009 also apply. Terms of the statute and rules are referenced throughout this <br />overview of the legal standards and procedure. <br />The primary directives for UGB expansions are set out in ORS 197.298: <br />(1) In addition to any requirements established by rule addressing urbanization, land may not be <br />included within an urban growth boundary except under the following priorities: <br />(a) First priority is land that is designated urban reserve land under ORS 195.145, rule or <br />metropolitan service district action plan. <br />(b) If land under paragraph (a) of this subsection is inadequate to accommodate the amount of <br />land needed, second priority is land adjacent to an urban growth boundary that is identified <br />in an acknowledged comprehensive plan as an exception area or non-resource land. Second <br />priority may include resource land that is completely surrounded by exception areas unless <br />such resource land is high-value farmland as described in ORS 215.710. <br />(c) If land under paragraphs (a) and (b) of this subsection is inadequate to accommodate the <br />amount of land needed, third priority is land designated as marginal land pursuant to ORS <br />197.247 (1991 Edition). <br />(d) If land under paragraphs (a) to (c) of this subsection is inadequate to accommodate the <br />amount of land needed, fourth priority is land designated in an acknowledged <br />comprehensive plan for agriculture or forestry, or both. <br />(2) Higher priority shall be given to land of lower capability as measured by the capability <br />classification system or by cubic foot site class, whichever is appropriate for the current use. <br />(3) Land of lower priority under subsection (1) of this section may be included in an urban growth <br />boundary if land of higher priority is found to be inadequate to accommodate the amount of land <br />estimated in subsection (1) of this section for one or more of the following reasons: <br />(a) Specific types of identified land needs cannot be reasonably accommodated on higher <br />priority lands; <br />(b) Future urban services could not reasonably be provided to the higher priority lands due to <br />topographical or other physical constraints; or <br />(c) Maximum efficiency of land uses within a proposed urban growth boundary requires <br />inclusion of lower priority lands in order to include or to provide services to higher priority <br />lands. <br />a. Establish the Industrial Land Study Area / Candidate Land for <br />Evaluation (ORS 197.298(1)(b) / OAR 660-024-0060(4)) <br />The initial step in determining where a City will expand its UGB is to establish an extraterritorial study <br />area. The only legal standards for doing so are derived from ORS 197.298(1)(b), which refers to the City's <br />consideration of "land adjacent to the UGB," and OAR 660-024-0060(4), which states: <br />Appendix B to Findings May 2017 Page 2 <br />