Philomath voters will weigh in on eight city-referred ballot measures in the May 19 primary election, deciding whether to permanently ban psilocybin-related businesses within city limits and whether to bring 10 properties totaling 15.5 acres into the city through seven separate annexation proposals.
Measure 2-147 asks voters whether Philomath should prohibit psilocybin-related businesses and product manufacturing within city limits. The question traces back to Oregon’s 2020 passage of a ballot measure that legalized state-regulated psilocybin manufacturing and service centers but allowed cities and counties to opt out through a vote of the people.
Philomath voters approved a temporary ban in 2022 while the City Council studied the issue. Two years later, councilors extended the moratorium, which is set to expire this year.
If the May measure passes, it would block the establishment of psilocybin service centers and manufacturers in Philomath. If it fails, those establishments could move forward subject to time, place and manner restrictions the council has already adopted by ordinance — including operating hours, signage limits, odor controls and proximity restrictions near schools.
City Manager Chris Workman said a yes vote would essentially preserve the status quo.
“If voters approve a ban on psilocybin service centers, I don’t foresee any changes from the current situation, being that there are no psilocybin service centers in the city today,” Workman said. “The temporary ban the City Council put in place would simply continue.”
Mayor Christopher McMorran said the council was split on the underlying question and chose to put it back to voters rather than decide internally.
“Quite frankly, the Council was divided on this issue, and we felt it would be better to let the community make the final decision rather than have a divided council try to determine the best outcome,” he said.
McMorran described his own position as neutral and said councilors hold a range of views that reflect broader community sentiment. He emphasized that the vote is a regulatory question, not a guarantee of new facilities.
“Even if the ban ends, it does not mean Philomath will have any psilocybin facilities,” McMorran said. “That business sector as a whole has been facing some difficulties, and I don’t anticipate a huge demand from the private sector to open those facilities in Philomath even if the ban ends.”
Annexation measures
The seven annexation measures — 2-148 through 2-154 — cover six island territories and one public right-of-way along North Seventh Street. The properties are surrounded by city limits but are not currently part of the city, meaning they do not pay city property taxes and are not subject to city code.
State law requires each annexation proposal to appear separately on the ballot to prevent voters from having to approve or reject a combination of properties in a single vote. The properties carry a mix of zoning designations, including low-density residential, medium-density residential, industrial and public right-of-way.
The proposals:
- Measure 2-148 — 500 Pioneer Street
- Measure 2-149 — 392 N. Seventh Street
- Measure 2-150 — North Seventh Street right-of-way
- Measure 2-151 — 498 N. Ninth Street
- Measure 2-152 — 365 and 401 N. 17th Street
- Measure 2-153 — 610 S. 19th Street
- Measure 2-154 — 640, 700 and 714 19th Street
Reviews by the Planning Commission and City Council last fall found the proposals to meet applicable land-use laws and island annexation criteria.
McMorran said the council referred the measures out of an interest in fairness, noting that the affected properties already receive city services such as police protection, parks access and maintained roads but do not contribute to those services through city property taxes or fall under city ordinances.
“These measures are an opportunity for the community to decide whether these areas should be treated the same as the rest of town, or should continue to be exempt from local ordinances and local taxes while receiving the same benefits,” McMorran said.
He stressed that no development applications are tied to any of the properties.
“These annexations are not about development,” McMorran said. “This is a routine process that the city goes through every decade or so to standardize the legal city limits and ensure that all properties in the community are treated equally.”
If voters approve any of the annexation measures, the council would adopt an ordinance declaring the election results and setting an effective date for each property. Workman said commercial and industrial properties typically annex within 30 days of the ordinance, while residential properties carry a three-year delay to help homeowners prepare for the transition.
City water and sewer services become available to annexed properties but are not required, Workman said. Extensions are typically triggered by property owner requests rather than pushed by the city.
Workman said annexations also produce a financial benefit by broadening the tax base. Once a property is annexed, the county assessor adds it to the city tax roll for the following year. He noted that 80% to 90% of property taxes collected in small- to medium-sized Oregon cities go toward police services.
“Adding more taxpayers to the tax role, especially those surrounded by and already benefiting from the city, reduces the burden on everyone else,” Workman said. “As my economics professor always said, ‘The wider the base the lower the rate.'”
McMorran said the council heard from property owners on both sides during the review process and weighed those perspectives in deciding to refer the measures.
“I’ve heard some concerns that these measures are ‘singling out’ specific properties, and I would counter the opposite — right now, those specific properties are treated differently than all their neighbors,” he said. “These measures are attempting to change that by having all properties in town be treated the same.”
According to the county elections office, ballots were scheduled to begin arriving in mailboxes this past week.
