(a) First priority is land that is designated urban reserve land under ORS 195.145, rule or metropolitan service district action plan.
(b) If land under paragraph (a) of this subsection is inadequate to accommodate the amount of land needed, second priority is land adjacent to an urban growth boundary that is identified in an acknowledged comprehensive plan as an exception area or nonresource land. Second priority may include resource land that is completely surrounded by exception areas unless such resource land is high-value farmland as described in ORS 215.710.
(c) If land under paragraphs (a) and (b) of this subsection is inadequate to accommodate the amount of land needed, third priority is land designated as marginal land pursuant to ORS 197.247 (1991 Edition).
(d) If land under paragraphs (a) to (c) of this subsection is inadequate to accommodate the amount of land needed, fourth priority is land designated in an acknowledged comprehensive plan for agriculture or forestry, or both.
(2) Higher priority shall be given to land of lower capability as measured by the capability classification system or by cubic foot site class, whichever is appropriate for the current use.
(3) Land of lower priority under subsection (1) of this section may be included in an urban growth boundary if land of higher priority is found to be inadequate to accommodate the amount of land estimated in subsection (1) of this section for one or more of the following reasons:
(a) Specific types of identified land needs cannot be reasonably accommodated on higher priority lands;
(b) Future urban services could not reasonably be provided to the higher priority lands due to topographical or other physical constraints; or
(c) Maximum efficiency of land uses within a proposed urban growth boundary requires inclusion of lower priority lands in order to include or to provide services to higher priority lands.
(4) When a city includes land within the urban growth boundary of the city pursuant to ORS 197.286 to 197.314, the city shall prioritize lands for inclusion as provided in ORS 197A.320. [1995 c.547 §5; 1999 c.59 §56; 2013 c.575 §12]