Newberg’s Craft Industrial District Zoning Approved

By John Laney, Newberg Resident and Realtor

NEWBERG, Ore. — On Jan. 6, 2025, Newberg’s City Council adopted Ordinance 2025-2930, designating Newberg’s Craft Industrial District.

“This will be a great addition to Newberg, as it will give businesses another incentive to invest and live in the city. It will benefit both businesses in the Craft Industrial District and adjacent businesses,” said City of Newberg associate planner Jeremiah Cromie.

The district proposal emerged nearly 10 years ago with the 2016 development of Newberg’s downtown improvement plan. The plan specifically identified Newberg’s “Craft Industrial District” as an opportunity to build upon and expand the industrial heritage of the area.

The development in this area is intended to be less restrictive in order to allow for more creativity, both in newly allowed businesses and zoning that accommodates live/work spaces—such as businesses on the first floor with living spaces on the second—while still retaining the area’s gritty feel and ambiance.

The district is anchored by one of the original buildings built in 1901. This building is listed on Newberg’s Inventory of Historical Properties and was originally built as a flour mill, later converted into a grain mill.

The mill is significant as one of the oldest buildings in Yamhill County, with its grain elevator built 10 years earlier in 1891 and called Christensen’s Grain Elevator. In 1939, the mill employed 13 to 16 men and had a capacity of 145,000 bushels of wheat per year. During pre-war production, it produced flour under the “Family Brand” and “Baker Brand” labels.

Fifty years later, a new private owner purchased the mill. With the help of McMinnville-based architect Marcia Mikesh, the building was renovated and stabilized. Mikesh reminisced about walking into a building untouched for decades, still containing original machinery, piles of grain, and cobwebs throughout.

Mikesh said she was happy to contribute to the stabilization of the foundation and structure and is looking forward to the next person to convert it into the next use. 

Planning a zoning change of this magnitude was no small feat. For 10 years, the city of Newberg worked closely with neighbors, landowners, the Newberg Downtown Coalition, and the Chehalem Valley Chamber of Commerce to develop a strategy for the industrial area that could spark revitalization.

“This change opens up far more uses than were previously allowed and completes an item recommended nearly 10 years ago as part of the downtown improvement plan,” Cromie said. “By opening up the boundaries of Newberg’s enterprise zone, businesses that move to the new craft district will have an additional tax incentive to invest in the city of Newberg.”

The new M-5 zoning is designed “to create, preserve, and embrace areas that provide a mix of commercial and light industrial uses, particularly small-scale craft industrial uses with an integrated commercial component,” according to Newberg City Ordinance 2025-2930.

“The district is intended to complement nearby commercial areas by providing opportunities for production spaces while minimizing off-site impacts.”

The M-5 Craft Industrial District is crafted to provide more entrepreneurial and business opportunities for those in the artistic industries. For example, businesses operating in the M-5 Craft Industrial District are allowed to have a “zero setback,” meaning the area of operation can extend directly up to the property line.

The new zoning also allows business owners to operate a business from their residence, also known as live/work.

“The craft district will enable investment in the art community as part of our local business and tourism economy and enhance culture and livability in the downtown corridor,” said Newberg City Councilor Elise Yarnell Hollamon via text message. “I’m very proud that our city planning department has taken the initiative to be creative in their approach to planning and zoning. The new craft district has the potential to let the market be the guiding force in bringing businesses to our city.”

The Craft Industrial District also eliminates parking requirements throughout 95% of the zone. Traditional parking requirements in Newberg mandate that businesses have enough on-site parking for their customers during peak times. This requirement often leads to “strip mall” business layouts, with parking typically located between the street and the business. Removing the parking requirement will allow for a more walkable feel for the zone and will enable coffee shops and outdoor dining where parking was traditionally required.

Newberg residents likely won’t see the impact of this zoning change for years—if not decades—as property changes hands and new businesses take advantage of the altered zoning laws.

This story was reported and written by John Laney, a local realtor who has been following local zoning, housing, and planning conversations at the city level. Newsberg’s editor, Branden Andersen, edited the story for spelling, grammar, bias, and clarity prior to publishing. 

After John Laney served in the Navy Bomb Squad, he and his family embarked on a four-year adventure in Mexico, exploring homeschooling, guitar playing, tarantula hunting, and volunteering at a local orphanage. Returning to Oregon, he felt called to connect with his community in Newberg, build relationships, and contribute to his neighbors. 

Right now you can find him working as a realtor in Newberg, volunteering with his church, writing for Newsberg, or visiting Mexico to volunteer at the orphanage. 

You can find him online at Instagram or LinkedIn, or ring him at 503-217-4229