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HomeMy WebLinkAbout2021-11-04 Katzaroff RE 508-SP 849-A - Exhibits 1-71 Tracy Griffin From:Katzaroff, Kenneth <KKatzaroff@SCHWABE.com> Sent:Thursday, November 4, 2021 11:27 AM To:Angie Brewer; Liz Fancher Subject:RE: 508-SP; 849-A - Exhibits 1-7 [IWOV-pdx.FID4723617] Attachments:Exhibits 1-7; 508-SP; 849-A.pdf [EXTERNAL EMAIL] -508-SP; 849-A Exhibits 1-7 Schwabe Williamson & Wyatt Kenneth Katzaroff Attorney Direct: 206-405-1985 kkatzaroff@schwabe.com Admitted in Washington and Oregon. LEARN HOW OUR CLIENTS ARE INNOVATING IN THEIR INDUSTRIES: www.schwabe.com/fueling-change From: Angie Brewer <Angie.Brewer@deschutes.org> Sent: Thursday, November 4, 2021 11:06 AM To: Katzaroff, Kenneth <KKatzaroff@SCHWABE.com>; Liz Fancher <liz@lizfancher.com> Subject: FW: FW: DISREGARD LAST EMAIL - USE THIS ONE - CORRECTIONS [IWOV-pdx.FID4723617] Hi Ken, Please see below. Did you intend to attach more support documents? Thanks, Angie From: Gregory Frank <gregportlandlaw@gmail.com> Sent: Thursday, November 4, 2021 10:41 AM To: Angie Brewer <Angie.Brewer@deschutes.org> Subject: Re: FW: DISREGARD LAST EMAIL - USE THIS ONE - CORRECTIONS [IWOV-pdx.FID4723617] [EXTERNAL EMAIL] 2 Angie Were the attachments actually attached to the Katzaroff letter? I did not see them on the above pdf's... If not, how can I access them? Greg On Thu, Nov 4, 2021 at 5:57 AM Angie Brewer <Angie.Brewer@deschutes.org> wrote: Hi Greg, The applicant has asked me to share the attached documents with you in advance of this evening’s hearing. I received the email he’s referring to as an older, now corrected version, at nearly the same time. As a result, I’m only sending you the corrected version. If you’d like to see both, please let me know. Thank you and see you by Zoom this evening! Angie From: Katzaroff, Kenneth <KKatzaroff@SCHWABE.com> Sent: Thursday, November 4, 2021 4:37 AM To: Angie Brewer <Angie.Brewer@deschutes.org> Cc: liz@lizfancher.com; Schunk, Andrea K. <ASchunk@SCHWABE.com> Subject: DISREGARD LAST EMAIL - USE THIS ONE - CORRECTIONS [IWOV-pdx.FID4723617] [EXTERNAL EMAIL] Angie – Because it’s 4:30am, I mistitled one of the document files. Please use these corrected versions. Per last email, I’ve made two quick corrections to these documents, including adding the exhibit list to the last page. If you could please swap them out in the record and send the corrected versions to the hearings officer, it would be much appreciated. 3 Ken Schwabe Williamson & Wyatt Kenneth Katzaroff Attorney Direct: 206-405-1985 kkatzaroff@schwabe.com Admitted in Washington and Oregon. LEARN HOW OUR CLIENTS ARE INNOVATING IN THEIR INDUSTRIES: https://smex- ctp.trendmicro.com:443/wis/clicktime/v1/query?url=www.schwabe.com%2ffueling%2dchange&umid=04bbd 623-9027-49bd-ac08-364c925c1291&auth=b6e5f914caa071e97c22b57421b394cc38777e44- 362fba1907cdd8ce717c3729705f2739a0476564 __________________________________________________________ NOTICE: This email may contain material that is confidential, privileged and/or attorney work product for the sole use of the intended recipient. Any review, reliance or distribution by others or forwarding without express permission is strictly prohibited. If you are not the intended recipient, please contact the sender and delete all copies. __________________________________________________________ NOTICE: This email may contain material that is confidential, privileged and/or attorney work product for the sole use of the intended recipient. Any review, reliance or distribution by others or forwarding without express permission is strictly prohibited. If you are not the intended recipient, please contact the sender and delete all copies. 247-18-000386-TP/454-SP/592-MA Hearings Officer Decision HEARINGS OFFICER DECISION FILE NUMBER: 247-18-000386-TP / 454-SP / 592-MA APPLICANT/OWNER: Central Land and Cattle Company, LLC ATTORNEY: Liz Fancher REQUEST: Tentative Plan (TP) for Phase A-1 of the Thornburgh Destination Resort subdivision, Site Plan Review (SP) for associated utility facilities including a well, well house, pump house, reservoir, and interim subsurface sewage disposal system, and a Modification of Application (MA) for the Site Plan Review. STAFF CONTACT: Jacob Ripper, Senior Planner HEARINGS OFFICER: Dan R. Olsen This decision adopts and incorporates the Staff Report with minor edits and except as noted by “Hearings Officer”. I. BASIC FINDINGS: A. LOCATION: The proposed Thornburgh Destination Resort is large and is comprised of numerous tax lots. The lots which are subject to this application are in the southern portion of the destination resort are denoted with a (*) below. Map Number & Tax Lot Address 15-12-5000 11800 Eagle Crest Blvd. 15-12-5001 11810 Eagle Crest Blvd. 15-12-5002 11820 Eagle Crest Blvd. 15-12-7700* 67205 Cline Falls Rd.* 15-12-7701 67705 Cline Falls Rd. 15-12-7800* 67555 Cline Falls Rd.* 15-12-7801* 67525 Cline Falls Rd.* 15-12-7900* 67545 Cline Falls Rd.* 15-12-8000 67400 Barr Rd. B. LOT OF RECORD: The property subject to these applications is comprised of multiple lots of record. See file numbers LR-91-56 (tax lot 7800, one lot of record), LR-98-44 (tax lot 7900, one lot of record), and 247-14-000450-LR (tax lot 7700, four lots of record). Mailing Date: Tuesday, October 30, 2018 LUBA 2018-140 Record - Page 0041 EXHIBIT 1 247-18-000386-TP / 454-SP / 592-MA Hearings Officer Decision Page 20 of 81 TITLE 18 OF THE DESCHUTES COUNTY CODE, COMPLIANCE WITH THE FINAL MASTER PLAN: 1. Approval is based upon the submitted plan. Any substantial change to the approved plan will require a new application. Hearings Officer: Two principle arguments are made for why this criterion is not met. First, it is contended that these applications either are not properly before me or must be denied because they do not seek approval or propose development of what Mr. Dewey contends is the required complete Phase ‘A’. Second, it is alleged that the applicant has not demonstrated compliance with numerous facets of the FMP or that certain aspects of the proposal constitute a substantial change to the FMP, requiring an application for a modification. DCC 18.113.080 explains that a substantial change to a destination resort CMP is one that alters “the type, scale, location, phasing or other characteristic of the proposed development such that the findings of fact on which the original approval was based would be materially affected.” I agree with staff that although this applies to changes between a CMP and FMP it provides guidance for evaluating whether a tentative plan conforms to the FMP. Finally, it is noted that the discussion below also addresses issues raised under specific relevant FMP conditions of approval. Phasing and timing/assurance of improvements: Mr. Dewey states a “fundamental problem” with the subdivision application is that it focuses on the 192 private residences rather than all the requirements for a destination resort “that are necessary in order to allow the subdivision in the first place”. He argues that the statutes, Code and CMP/FMP conditions of approval do not anticipate the applicant dividing its Phase ‘A’ into subphases. See, August 28, letter. He further contends that the first tentative plat application necessarily constitutes the “first phase” and “must include the core features which make a development a destination resort.” These “core facilities” include the OLU’s, developed recreation facilities, restaurants and meeting rooms. He also argues that since ORS 197.445 expressly authorizes financial assurances for OLU’s, but not other facilities, approval for those facilities must be sought in this application and must be constructed rather than phased in or financially assured. See, September 25, letter. He contends that the application must provide for the entire 150 OLU’s and it is not sufficient for the applicant to state that the balance will be provided on Future Development Tract ‘A’. Accordingly, the tentative plan must be denied unless an application for a modification is filed and approved. The application is for Tentative Plan approval for a part of Phase ‘A’. It is for a subdivision. The applicant argues that nothing in the statutes, Code or CMP/FMP approval requires it to submit for an entire phase. It simply is seeking approval “to do some of the work authorized and required to occur in Phase A.” The applicant acknowledges that it “remains obligated to fulfill all Phase A requirements before selling lots” and has agreed to restrictions to that effect. Sept. 11, letter. Further, the FMP does not prescribe phase boundaries and neither of the two relevant maps are to scale. FMP Exhibit G1.1b and “Phasing Plan – Exhibit #B-1.08 August 11, 2008. Rather, the phasing plan shows what type of development may, and in some cases must occur in each phase of development. The approval anticipates adjustments and refinements as approvals are sought. LUBA 2018-140 Record - Page 0060 EXHIBIT 1 247-18-000386-TP / 454-SP / 592-MA Hearings Officer Decision Page 23 of 81 specificity about the ultimate mix and location of recreational facilities if the statutorily (and presumably Code) requirements are met. Gould v Deschutes County, LUBA No. 2008-203. In this regard, the applicant supplied a chart showing specific differences between FMP Phase A and the tentative plan. ITEM Phase A Tentative Plan Residential Single Family (RSF) 300 192 Hotel Overnight 0 0 Residential Overnight 150 37 lots for about 110 overnight units; bond for about 40 Net Overnight 150 150 Ratio – RSF/Overnight 2.00 1.28 I agree with the applicant that none of these differences are modifications of the FMP as: (a) the FMP and resort code do not require that all development authorized in any one phase of the FMP occur at the same time or consolidation of the many land use reviews that are needed for Phase A development; and (b) the changes, if viewed as such, do not affect the material facts or compliance with relevant approval criteria. The law requires that each phase combined with each prior phase continue to meet minimum resort development criteria, but it does not prescribe that each and every land use approval needed to build each phase be obtained at one time. DCC 18.113.070(E). The FMP authorizes development up to the limits established for Phase A. As is clear from the resort code, the 300 units of RSF is a cap; not a minimum or precise requirement. The residential overnight requirement is reflective of a minimum code and FMP requirement (Condition 33 of FMP). 150 rentable units must be provided by construction or bonding prior to the sale of single-family home lots (50 must be constructed; not bonded). The tentative plan provides 37 lots where rentable units will be constructed. Once the 50 rentable units have been constructed lot sales will be allowed by the FMP. The tentative plan proposes to plat single-family dwelling lots in the same general areas of the property with the same general layout and approximate road locations shown on the Residential Development Plan, Exhibit G.1.1b. This is what was required by DCC 18.113.090(I), the CMP and FMP, as written when the CMP and FMP were filed. The TP and final plat establish and show the precise locations of lots and road. Thus, there is no material change as the FMP contemplates should be done at the tentative plan approval stage. I can find nothing in the destination resort statutes, the Code, the CMP or the FMP that mandates that an applicant file all development applications for a particular phase at once. The Code expressly permits financial assurances for such facilities provided they are constructed or assured prior to closure of sales, rental or leasing of any residential lots. LUBA 2018-140 Record - Page 0063 EXHIBIT 1 247-18-000386-TP / 454-SP / 592-MA Hearings Officer Decision Page 24 of 81 Breaking Phase ‘A’ into subphases does increase the risk of a “sagebrush subdivision”. If the applicant constructs the single-family dwellings and never completes the other requirements of Phase ‘A’ the existence of homes places significant pressure to allow them to be occupied. But that could occur under the statutes and Code even if all of Phase ‘A’ obtained land use approval rather than being split into subphases. The applicant states it will demonstrate compliance with all required elements of Phase ‘A’ in conjunction with future site plan applications and a second tentative plan to be submitted before any lots are sold, leased or rented as part of its next round of applications for Phase 'A'. It offered a development agreement as an additional assurance. Sept. 11, submittal. I find that the development agreement adds nothing significant, rather a condition of approval set forth at the end of this subsection is necessary. Finally, both parties allude to changes in the destination statutes or Code that the applicant states do not apply as the prior approvals were granted under a prior version. Neither party submitted or expressly cited the prior version to which they allude, so I cannot evaluate, what, if any relevance whatever change occurred may have. Overnight lodging units. Mr. Dewey and Central Oregon Land Watch also allege that the TP cannot be approved because it does not demonstrate how the OLU’s will qualify as OLU’s, citing the Caldera decisions. See, Dewey August 28, letter at 4, COLW September 25, letter. Those decisions involved conceptual master plan approval for an expansion of a destination resort. The applicant sought to rely on the use of “lock-out” units in the original development to demonstrate that it had met the requirement for 150 separate rentable units in ORS 197.445. At issue was whether the specific lock-out units met that standard. See e.g. Central Or. Landwatch v Deschutes County, LUBA No 2016-065 (2017). I agree that ensuring that the OLU’s meet the statutory and Code provisions is “integral” to a destination resort. But I find nothing in the statutes, Code, the FMP or those decisions that supports the conclusion that this issue must be resolved at the TP stage. A tentative plat approves lots. It does not address design or construction absent some indication that the lots proposed could not physically accommodate the uses for which they are created. The applicant has stated that it will demonstrate that the OLU’s comply when it submits a site plan review application for the OLU’s. Although DCC Chapter 18.124 Site Plan Review does not expressly reference OLU’s, its purpose is to evaluate the specific layout and design of proposed improvements to ensure compliance with the Code, and in this case the FMP and statutes. It prohibits issuance of building, grading and other such permits until site plan review approval is obtained. It is evident that this is the stage that the applicant must demonstrate that the design of the OLU’s is compliant. To ensure that occurs, I have addressed OLU’s in the condition below. Water Mitigation. Mr. Dewey contends that the applicant is substantially modifying the Fish and Wildlife Mitigation Plan relied on in the FMP approval (FWMP). He notes that it states that: “Mitigation must be provided in advance for the full amount of water to be pumped under each phase of development and must meet the requirements of ‘mitigation water’ (OAR 690-505-0605)” FWMP at page 9. He notes that the applicant’s Burden of Proof states that “The full amount of mitigation required by OWRD for uses allowed outright by the first phase of development is LUBA 2018-140 Record - Page 0064 EXHIBIT 1 247-18-000386-TP / 454-SP / 592-MA Hearings Officer Decision Page 25 of 81 approximately 50 acres of water.” This reference is to the 192 single family dwellings that are the subject of the TP but does not reference the OLU’s or any other uses required to be provided in Phase ‘A’. August 28, submittal. He states in his September 11, submittal that the FWMP addendum provided in part that the timing of water needs is tied to a phased development plan. The addendum states that “the mitigation obligation for Phase A is 610 AF.” The FWMP represented that under the Final Order and OWRD rules, mitigation must be provided in advance for the full amount of water to be pumped under each phase of development and that the Incremental Mitigation Plan submitted to OWRD describes the proposed timing and methods for meeting the mitigation obligation in two phases of water development. The FWMP states that the mitigation measures identified in consultation with ODFW are designed to ensure no net lost of habitat quantity or quality and net benefits to the resource. Sept. 11, submittal. On July 10, 2018 OWRD granted the applicant’s request to modify the incremental development plan for Permit G-17036. (IDP) The modification shifts the initial 3.6 AF mitigation from 2013-2016 to 2013-2019. Instead of the entire balance of 1352 AF being shown in 2017, it is staged over four five- year periods. It requires an annual update of water used and that mitigation must be provided annually regardless of whether any water was used. Mr. Dewey asserts that the new OWRD plan is not oriented to any particular phase, but rather to time periods. He cites to Ms. Fancher’s September 11, letter in which she states that the amount required for mitigation for development envisioned in the tentative plat is 50 acres, with total mitigation of 203 acres when full pumping is achieved after all cabins and facilities in Phase ‘A’ are constructed and in use. Thus, the significant changes between the FMP approved plan and the new one include the reduction of mitigation for Phase A from 610 to 203 AF and the timing of mitigation from in advance of each phase to after construction. He contends that the 2008 ODFW letter approving fish mitigation was based on the promised phasing. Finally, he contends that Condition 10 was talking about the FMP mitigation plan and the OWRD permit on which it was based. Therefore, the OWRD permit approved prior to FMP approval controls and cannot be modified without a modification to the CMP /FMP and is inconsistent with Conditions 10 and 38. Ms. Fancher argues that the provision of mitigation water (other than the 106 AF for Wychus Creek) is tied to pumping and the use of water under the water rights permit, not to phases of development. She notes that the original IDP only had two incremental steps so clearly was not tied to the seven development phases. The July 10, OWRD letter states that the “requested modifications … match the mitigation obligation of groundwater permit G-17036’ and are incorporated as part of the permit. She contends that the IDP was not relied on in the mitigation plan to achieve compliance with the approval criteria and, therefore, may be revised without revising the FMP if the mitigation obligations set out in the mitigation plan are honored. She states that the opponents have not shown that the change will have any negative impact on groundwater quality. September 25, submittal. Attached to Ms. Fancher’s response is a Sept. 25, letter from David J. Newton, a licensed Engineering Geologist and Water Rights Examiner and the author of the addendum to the Fish and Wildlife LUBA 2018-140 Record - Page 0065 EXHIBIT 1 247-18-000386-TP / 454-SP / 592-MA Hearings Officer Decision Page 26 of 81 Mitigation Plan. Mr. Dewey objects to consideration of the letter on the grounds that it is not so much a response to his arguments as an assertion as to why it is reasonable to amend the FWMP. I disagree. The letter appears to be a direct response to the arguments that the IWP is inconsistent with Condition 38 and constitutes a modification of the FWMP and FMP. Mr. Newton notes that the FWMP Addendum lists five mitigation measures to satisfy the no net loss/no degradation standard, including “compliance with OWRD mitigation requirements”. Under that heading, it states that Thornburgh “will at all times comply with the terms and conditions of the OWRD water right approval”. It notes that the terms and condition include “providing flow mitigation for each phase of development prior to beginning water use”. He argues that this provides flexibility because OWRD rules permit changes to the IDP with the only caveat being that “all water needed for each increment of development be provided upfront”, i.e. mitigation before ground water withdrawals. The permit itself provides for approval to change the IDP. He states that the amended IDP reduces ground water use in the early years thus spreading potential impacts over a longer period. The permit continues to require that neither the rate or amount of diversion be increased before increasing the corresponding mitigation and that mitigation must be provided prior to “each stage of development under the permit”. Mr. Newton notes that the 2007 IDP proposed two increments. The first would be provided all at once as the relevant development was expected to occur quickly. He states that the IDP contemplated that the second phase could be broken down into subphases. Rather than full water use occurring in five years it now will take as long as 17. But mitigation always is tied to and provided prior to water use. He references OWRD rules requiring that mitigation be provided prior to development of the permit, (which I understand to refer to water permit) and authorizing changes to an IDP provided the rate or amount of diversion is not increased prior to the corresponding required mitigation. Mr. Dewey also objects to Exhibit ‘A’ to CLCC’s September 25, submittal which is a copy of a letter submitted in the 2017 proceeding. Exhibit ‘A’ purports to show phased water usage over 7 phases with 3 subphases, including “Phase A-1”. There is no indication as to who prepared the chart or where the data came from. It was submitted during the open record period, however, so is admitted but I am not considering it as its reliability and relevance is unsubstantiated notwithstanding the reference to it in Ms. Neuman’s Oct. 8, letter. Ms. Neuman’s letter flatly states that under applicable law, the applicant must provide pro rata mitigation in advance of water use and the applicant neither can nor is proposing to reduce or postpone mitigation as claimed by Mr. Dewey. As noted, there appear be three categories of alleged noncompliance. Although they overlap, I will try to address each somewhat separately in hopes that will provide some clarity to my analysis. There are two components to the mitigation. There is the basic replacement of consumed water which appears to have been the focus of OWRD. In her discussion of the fish mitigation plan the Hearings Officer found that the applicant was to provide 1,356 acre-feet of mitigation water. She found that the OWRD mitigation requirement adequately addresses water quantity, and LUBA 2018-140 Record - Page 0066 EXHIBIT 1 247-18-000386-TP / 454-SP / 592-MA Hearings Officer Decision Page 27 of 81 presumably to some extent quality but not fully. She was concerned with the ODFW concerns about springs and water temperatures. In that regard, she relied on how the FWMP proposed to provide water, such as removal of existing wells, removing the two diversion dams and the additional requirement to provide water for Whychus Creek from the Sisters Irrigation District which I found adequate in my prior decision on the FMP with the modification that it be placed in stream no later than the date that groundwater pumping to serve the development commences. The applicant asserts, and I agree, that it is not proposing to modify any of the latter steps. Nor is it proposing to modify the overall amount of mitigation water to be provided. The issue is the timing of when the OWRD quantity of mitigation water will be provided. The prior hearings officer did not address the IDP schedule of consumption and mitigation. It seems evident that the FWMP uses the terms “phase” to mean the land development phases, i.e. the two villages, Tribute and Pinnacle. The first was anticipated to be developed essentially all at once with the latter over a few years. These appear to correspond to what the original IDP terms as an “Incremental Step”. The FWMP Addendum references “estimated” water development and rates of withdrawal. It is based on consumptive use, i.e. the amount of ground water appropriation that will not otherwise return to surface water flows. Referencing the ODRW rules, it states that the “amount of mitigation required – or ‘mitigation obligation’ – is equal to the amount of consumptive use on an annual basis.” It states that the OWRD permit is based on a submitted mitigation plan. But it then states that “the mitigation obligation for each phase of development must be provided in full before water use may begin for that phase”. Similarly, it states that “mitigation must be provided in advance for the full amount of water to be pumped under each phase of development.” It then states that the “Incremental Mitigation Plan” proposes “two phases of water development”. I assume this is a reference to the Incremental Development Plan. Finally, it states that Thornburgh will at all times comply with the terms and conditions of the OWRD water right approval, providing flow mitigation “for each phase of development prior to beginning water use”. In the summary of mitigation and enhancement measure it states that the plan requires “compliance with OWRD mitigation requirements” and that the applicant “will at all times comply with the terms and conditions of the OWRD water right approval. The FMP requires compliance with the FWMP in three ways. Condition No. 1 is the general condition that the approval is based on the submitted plan (used generically but presumably including the FWMP) and “any substantial change” will require a new application. Condition 10 requires that the applicant provide at the time of tentative plat/site plan for each individual phase of the resort development, updated documentation for the water right permit, and an accounting of the full amount of mitigation as required under the water right, for that individual phase. Condition 38 states that the applicant “shall abide by the April 2008 Wildlife Mitigation Plan, the August 2008 Supplement” and provide annual reports. I find that the 2018 modification to the IDP does not constitute a substantial change to the approved FWMP and is consistent with the FWMP. The primary focus of the FWMP, the OWRD and the IDP all are on mitigating use of water. As the applicant has stressed, if there is no water use, there is no LUBA 2018-140 Record - Page 0067 EXHIBIT 1 247-18-000386-TP / 454-SP / 592-MA Hearings Officer Decision Page 28 of 81 impact. It seems relatively clear that references to phases and specific dates provide a framework for estimating use, consumptive use and mitigation but were not intended to lock in a certain development pattern or timing. The opponents have provided no evidence that modifying the IDP to reflect the current resort development schedule in any way impacts the efficacy of mitigation and the applicant’s expert testimony is that it will not. To the contrary, there is evidence that the longer timeframe for water consumption will result in more gradual spread out impacts. As discussed above, the resort phasing plan largely was conceptual; the change or refinement represented by the applications before me is not substantial. I find no basis to conclude that the OWRD permit and IDP in existence at the time of FMP approval is locked in stone. The OWRD permit was issued under administrative rules that permit modifications to the IDP to reflect the actual timing of water use and resulting mitigation. The OWRD permit itself provides that the permittee may seek changes to the IDP provided that there can be no increase in the rate or amount of water diversion before increasing the corresponding mitigation and that mitigation be provided prior to each stage of development under the permit. Opponents do not argue that failure to meet the timelines in the original IDP in itself is a violation but the argument that the IDP is locked in, taken to its logical conclusion, would mean that the applicant must start over because it has missed those timeframes. Had the FMP approval meant to lock in the IDP schedule there would have been some discussion of the particular importance of that schedule in the FMP decision. The July 10, OWRD letter states that the “requested modifications … match the mitigation obligation of groundwater permit G-17036’ and are incorporated as part of the permit.” The opponents do not contend that the revised IDP is inconsistent with that permit. Mr. Dewey asserts that the new “OWRD mitigation plan” is not oriented to any particular phase but rather to time periods. I do not understand the IDP revision to permit the applicant to provide mitigation by time rather than when development and water use occur. The permit expressly requires the latter as discussed above. It is noted that even the original IDP had a time period for Phase ‘B’. Again, as discussed above those timelines are not controlling, they simply reflect estimates of when the use of water and resulting mitigation may occur. I see nothing in the June 13, 2008 ODFW letter stating that ODFW intended to require that the proposed phasing of land development be locked in. The focus of the letter is ensuring that mitigation timing be such that the applicant provides water instream above its average daily impact during the irrigation season, with a resulting net deficit outside of irrigation season. The opponents do not provide any argument or evidence that the revised IDP alters that timing. The balance of the letter focuses on dam and well removal which the applicant states will be done as originally approved. To clarify, as represented in Mr. Newton’s Sept 25 letter the first dam (Nolan and Reimenschneider property) must be removed prior to beginning construction under the tentative plat approval at issue. Ultimately, I disagree with the assertion that the applicant impermissibly is attempting to change when the required mitigation will happen. The key to the FMP, the OWRD permit and the ODFW LUBA 2018-140 Record - Page 0068 EXHIBIT 1 247-18-000386-TP / 454-SP / 592-MA Hearings Officer Decision Page 29 of 81 letter is that mitigation occur in advance of using water. It is to mitigate water use, not development approvals. Mr. Dewy cites to an August 28, email from Matt Singer, general counsel for COID, stating that it is COID’s position that there are no current or active agreements with Thornburgh but acknowledging that the applicant may have a different position. August 22 and 23 emails from David Arnold state that he cannot find mitigation credits on the OWRD website. In a September 25, letter Albert N. Kennedy states that Thornburgh has an approval of its irrigation plan and that the approval states that the COID Irrigation Plan Contract will be executed following final approval of the FMP. This all suggests that there may be some sort of potential dispute with COID. Mr. Dewey also cites to an excerpt of a document suggesting that Big Falls Ranch proposed and OWRD proposes to approve a transfer of surface water points of diversion to groundwater points of appropriation which Mr. Dewey asserts was to be used for mitigation by Thornburgh Sept. 25, letter. Mr. Newton responds that the 2008 Groundwater Mitigation Plan discusses the potential use of COID water, it authorizes the use of any “quantity” water within the General Zone and does not mandate COID water. Page 9 of the May 2008 Tetra Tech Evaluation of impacts of the Thornburg resort states that Thornburgh has entered into an agreement with COID to acquire 288.75 acres of water rights generating 519.8 AF of mitigation located within the General Zone of Impact. It also states that Thornburgh has entered into an agreement to purchase surface water rights generating 836.93 AF of mitigation in the General Zone of Impact. Both references cite the 2008 Newton Mitigation Plan Addendum. That report discusses the need to provide mitigation within the General Zone. It states that Thornburgh has secured 85.24 acres of water rights located “within COID” projected to result in 153.43 AF of mitigation. It also states that Thornburgh has an agreement to purchase surface water rights from Big Falls Ranch within the General Zone to generate 836.82 AF. The initial transfer is expected to result in 315 AF of mitigation. Ms. Neuman states that the Big Falls Ranch transfer from a surface water diversion on Deep Canyon Creek to an existing well does not mean that it is unavailable for quantity mitigation in the future. To the contrary, it is consistent with Thornburgh’s mitigation. She states that the applicant has the right to obtain the necessary water from the Ranch. The June 13, ODFW letter references COID water and that “flows from COID during the irrigation season provide a net benefit in instream flows for the Deschutes River”. It seems to focus primarily on the Big Falls Ranch, however, stating that that “During the irrigation season when ODFW is most concerned about impacts to springs and flows in the Deschutes River, the mitigation water from the springs in Deep Canyon Creek exceeds the flows needed to mitigate from spring and seem impacts.” The FMP also references both water sources, primarily the Big Springs Ranch and that “the remaining mitigation water is to be obtained from” COID. (Page 22 and 24). It appears to me, therefore, that both ODFW and the Hearings Officer relied on those sources in reaching their respective conclusions that mitigation was adequate. While it may be that a change LUBA 2018-140 Record - Page 0069 EXHIBIT 1 247-18-000386-TP / 454-SP / 592-MA Hearings Officer Decision Page 33 of 81 9. Satisfied. 10. Applicant shall provide, at the time of tentative plat/site plan review for each individual phase of the resort development, updated documentation for the state water right permit and an accounting of the full amount of mitigation, as required under the water right, for that individual phase. Hearings Officer: The staff report states that the applicant has provided updated documentation that shows Pinnacle Utilities, LLC owns water rights permit # G-17036, which is a permit for a quasi- municipal use of water granted by Oregon Water Resources Department for this project. These documents are Exhibits 5 (Thornburgh Utility Group Water Rights Permit) and 6 (Transfer of Permit to Pinnacle Utility) of the applicant’s submitted materials for the TP. The applicant states that due to unforeseen developmental delays, Pinnacle Utilities, LLC filed to extend the water rights permit to 2035. The applicant states that Pinnacle will phase development of its system to match the phased development of the destination resort. The applicant states that the full amount of mitigation required by OWRD for uses allowed outright by the first phase of development is approximately 58 acres of water. Prior to expiration of the deadline for using the water under its water rights permit, Pinnacle applied to extend the permit timeframe. In May 2018 OWRD issued a Proposed Final Order denying the Request, which is in the record. In June 2018 OWRD issued a Proposed Final Order withdrawing the prior Proposed Final Order and proposing to approve the extension. Ex. L to Fancher Sept. 25, submittal. Ms. Gould filed a protest, which is in the record. On August 21, counsel for Mr. DeLashmutt and Pinnacle responded and asked that the protest be denied for various reasons. On August 24, the OWRD Watermaster for the Deschutes Basin sent an email to the County stating that “Thornburgh has done everything needed to be in compliance and good standing with OWRD in regard to permit G-17036 as well as purchasing mitigation credits and providing in stream flow benefits without even using any water yet.” September 11, letter from Janet E. Neuman. In a September 25, letter Ms. Neuman stating that the permit is in full force and effect at this time, which I take to mean that the extension approval remains valid pending resolution of the appeal. She states that the permit holder may proceed with development of the water use. Further, even if denied, Pinnacle holds hundreds of water rights that it could use for water supply rather than the rights under the permit. I have addressed the issues associated with whether the extension appeal or IDP modification constitutes noncompliance with or a substantial change in the FMP or its conditions. Beyond that, Condition 10 appears primarily to be an informational requirement requiring documentation of the state water permit and an accounting of mitigation “under the water right.” The record contains what appears to be a complete documentation of the status of the permit and IDP. This criterion is met. 11. Satisfied. LUBA 2018-140 Record - Page 0073 EXHIBIT 1 REVIEWED fDnn, LEGAL COUNSEL For Recording Stamp Only DECISION OF THE DESCHUTES COUNTY BOARD OF COUNTY COMMISSIONERS File Number:247-19-000881-SP, 247-20-000279-A, and 247-20- 000282-A. Appellant:Annunziata Gould and Central Oregon Landwatch Applicant/Owner:Central Land and Cattle Company, LLC Proposal:Affirm Approval of Site Plan Subject Property:Tax Lots 7700,7800, and 7900, Map 15-12-00 Planning Staff:Cynthia Schmidt, Planner: Staff Decision Will Groves, Senior Planner, Appeal DECTSTON The Board of County Commissioners (BOCC) adopts and incorporates by reference the basic findings, code interpretations, findings of fact and conclusions of law set forth in the April 1, 2020 Administrative Decision except for the findings r:elating to the DCC Sections identified below. To the extent there are conflicts between any of the findings identified above and the flndings below, the findings and conclusions below shall control. I. BACKGROUND FINDINGS. A. Application Review Process. On December 1 1, 2019 Kameron Delashmutt and Central Land and Cattle Company, LLC (Applicant) submitted a request for a Site Plan Review (SP) for the Thornburgh Phase A golf course which included lakes that were approved by the Conceptual Master Plan (CMP, File No. CU-05-20) and Final Master Plan (FMP, File No., M- Board of County Commissioners Decision, Document No. 2020-579 File No. 247-'19-OOO881-SP Thornburgh Golf Course page 1 of 17 0c-?020-579 EXHIBIT 2 07-2, MA-08-6) for the destination resort. The Planning Division issued an administrative approval without a public hearing on April 1, 2O2O determining the Applicant met the applicable criteria. Annunziata Gould and Central Oregon Landwatch (COLW) (collectively, Appellants) appealed the approval to a hearings officer. The Applicant asked the BOCC, instead of the hearings officer, to hear the appeal, which it agreed to do. The Appellants and others in opposition presented evidence and testimony in opposition tothe application. OnJune 17,2020, the BOCC held a hearingto receive evidence and testimony from the parties. The Applicant submitted evidence and testimony in support of the application. At that time the Appellants requested that the record remain open for additional evidence, which the BOCC granted. The BOCC set a deadline of July 1,2O2Ofor the submittal of additional evidence (the Open Record Period). The BOCC further set a deadline of July 8,2002 for the rebuttal of evidence submitted during the Open Record Period, and a date of July 15, 2O2O for the submittal of the Applicant's Final Legal Argument. On July 27, 2020, after the record closed, Gould's attorney, Karl Anuta, submitted a response to a record objection contained in the Applicant's Final Legal Argument. Anuta argued that a previous submittal during the rebuttal period was limited to evidence or testimony submitted by the Applicant on July 1,2020. The BOCC opened the record (Order #2020-045) to accept both Anuta's July 27 letter and a response provide by the Applicant on July 29. B. Prior Land Use Reviews. The Thornburgh Destination Resort has a lengthy and complex history that began in 2005, and includes decisions by Hearings Officers, the BOCC, the Land Use Board of Appeals (LUBA), the Oregon Court of Appeals, and the Oregon Supreme Court. Pages 3-5 of the Administrative Decision provides details of the various actions and approvals prior to this application. C. Golf Course and Lake Site Plan. This decision approves an 18-hole golf course and irrigation lakes. This decision does not approve development of an additional 9-hole golf course or other golf facilities, nor does it approve recreational use of the lake(s) at this time. No bonding or other financial assurances were proposed. D. Lot of Record. The subject property is a part of the greater Thornburgh Resort property that was determined to be a Lot of Record pursuant to DCC 18.04.030 in the BOCC's decision approving the Thornburgh CMP. lt, therefore, is eligible for development. COLW in this appeal argued that Tax Lot770l was unlawfully created and, therefore, Tax Lot 7700 is not a lot of record. As noted, that issue was resolved in the CMP decision, wherein the County found that Tax Lot77O1 was a lot of record with a part of Tax Lot 7700. II. KEY ISSUES CONSIDERED UNDER APPEAL Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course Page2 of 17 EXHIBIT 2 A. Does the County haveJurisdiction to decide this issue? The County approved a tentative plan for Phase A-1 of the Thornburgh resort. Gould appealed that approval to LUBA. LUBA remanded the decision to Deschutes County. Gould flled an appeal of LUBAs decision to the Oregon Coun of Appeals, but that appeal was dismissed due to a lack ofjurisdiction. Gould appealed that dismissalto the oregon Supreme Court. The Oregon Supreme Court accepted review and has not yet issued a decision. ln the meantime, the Applicant initiated a review on remand and the County again approved the tentative plan. Gould also appealed that tentative plan decision to LUBA, but that second LUBA matter is currently being held in abeyance untilthe Oregon Supreme Court addresses the merits of the Court of Appeals' dismissal of Gould's aforementioned appeal. Gould and COLW argue the County does not have jurisdiction of the current application because appeals of the Phase A-1 tentative plan are pending. Without citing applicable legal authority, Gould's argued that the subject site plan application depends entirely on the outcome of the Phase A-1 tentative plan appeals, and jurisdiction remains with those appellate bodies until there are final decisions on both aforementioned appeals Gould further argued that the decision in this case is dependent on the survival of the configuration and specific details of the Phase A-1 tentative plan and site plan approved by the cases on appeal. The BoCC disagrees. The Phase A-1 tentative plan decision on appeal does not approve a site plan. lnstead, it authorizes the division of lots from the greater Thornburgh property. The relevant approval criteria for the subject golf course and irrigation lakes do not require that the property be divided. The subject site plan and the Phase A-1 tentative plan application are separate development applications for different development activities authorized to occur in phase A of the Thornburgh Resort. Each application was reviewed, as described below, as the third step in a 3 step process, and neither is dependent on the other. Each application was independently reviewed for its compliance with the FMP and relevant provisions of the County code. One application was reviewed under tentative plan criteria and the other application was reviewed under site plan criteria. The fact that each application was required to establish that it complied with the FMP did not cause the subject site plan to hinge upon the outcome of the Phase A-1 tentative plan appeals as argued by Gould. DCC Chapter 18.113 calls for a 3 Step approval process whereas the 3'd steps, that of the Phase A-1 tentative plan or subject site plan, were both dependent on Steps 1 (the CMp) and 2 (the FMP). DCC Chapter 18.113 does not call for each element of the 3'd steps to be dependent on other 3'd step elements. The Phase A-1 tentative plan under appeal was reviewed under criteria for tentative plans and the project status in 2018 whereas the subject site plan application was reviewed under the different site plan criteria and the project status Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-OOO881-SP Thornburgh Golf Course page 3 of 17 EXHIBIT 2 in 2020. Furthermore, both the CMP (Step 1) and FMP (Step 2) approved the golf course and lakes subject to site plan review. The CMP required the construction of a golf course in the initial development, which this site plan is consistent with. The BOCC does not find any legal support in the code or statutes for the Appellants' arguments that the subject site plan is dependent on the Phase A-1 Tentative plan. The BOCC finds the subject site plan is not dependent on the Phase A-1 tentative plan, and the BOCC therefore has the jurisdiction to decide this matter. B. CollateralAttacks. The BOCC finds that many issues raised by Appellants in these proceedings were either; i) raised and resolved against the opponents in previous stages of the resort's multi-stage approvals process, or; ii) could have been raised during the review of the CMP or FMP but were not. Where this is the case, the issue is settled and not grounds.for denial of a Stage 3 review application. Under the principle of collateral attack, a land use decision intended to serve as a final determination of a land use issue such as the Thornburgh CMP and FMP may not be challenged in a later proceeding that implements or relies on the earlier, final decision. LUBA has explained the rule as follows: 'As a general principle, issues that were conclusively resolved in a final discretionary land use decision, or that could have been but were not raised and resolved in that earlier proceeding, cannot be raised to challenge a subsequent application for permits necessary to carry out the earlier final decision;' Safewoy, lnc. v. City of North Bend, 47 Or LUBA 489, 500 (2004) (citatio ns o m itted). The Thornburgh FMP is the master plan that establishes the plan to be followed when site plan and partition applications are filed with the County and is based on issues decided by the cMP. According to LUBA: "All requirements of the CMP approval are now requirements of the [C]ounty's FMP approval. The FMP approval has effectively incorporated and displaced the CMP approval." Centrol Land and Cattle Compony, LLC v. Deschutes County, 74 Or LIJBA 325, 328 n I (2016) The Applicant, therefore, was not required to again demonstrate compliance with the CMP or FMP approval criteria during the review of the subject golf course site plan. The criteria set forth in DCC 18.1 13.050 and 18.1 13.070 are CMP approval criteria met by the CMP that are not applicable to the subject site plan review. The informational requirements of DCC 18.1 13.050 apply to a CMP application only. The criteria set forth in DCC 1 8.1 13.090 are FMP approval criteria met by the FMP that are not applicable to the subject site plan review (See Relevant Approval Criteria and FMP Conditions, below). The point of the DCC's three-stage review process is to require a master plan of the resort community that then guides the Board of County Commissioners Decision, Document No. 2020-579 File No. 247:19-000881-SP Thornburgh Golf Course Page 4 of 17 EXHIBIT 2 review of development actions. The DCC does not require a resort to re-litigate master plan issues every time it seeks development approvals to implement the plans. LUBA's application of the no collateral attack rule in Gould v. Deschutes County,_ Or LUBA_ (LUBA No. 201 8-140, June 21 ,2019) is instructive. ln that case, LUBA held that challenges to issues settled by the CMP and FMP are impermissible collateral attacks on the Thornburgh CMP and FMP. LUBA found that challenges to Resort plans for Overnight Lodging Units (OLU) and the wildlife mitigation plans are not permissible. Specifically, LUBA found that the removal of dams on Deep Canyon Creek and the provision of mitigation water is required by the FMP and is not relevant to the review of the tentative plan because the tentative plan did not alter the mitigation plan that is a part of the FMP. The BOCC finds that the same reasoning applies in this case concerning the subject golf course site plan. The Applicant's golf course site plan does not propose to modiff the CMP or FMP. Rather, it proposes development that is authorized and required by those plans. The Applicant is not proposing any change to the mitigation plan so it is not relevant in this site plan review. See td (slip op at 37-38). LUBA also determined and the BOCC agrees that compliance with the wildlife plan would be determined by annual reporting as set out in FMP Condition 38 - not during review of the tentative plan - where the development application does not alter any mitigation requirement of the FMP mitigation plan. The same reasoning applies to the golf course site plan review. See ld (slip op at 37). ln the record, the Applicant identified arguments that are impermissible collateral attacks and the specific issues barred by the rule. The BOCC summarizes collateral attack arguments and makes findings in Exhibit A, which is incorporated in its entirety into this decision. Exhibit A also provides reasons the barred issues do not provide a basis for denial on the merits of the claim raised by opponents. The BOCC adopts ExhibitA as findings that support approvalof the site plan application. C. Relevant Approval Criteria and FMP Conditions Misstated in Appealed Decision DCC 18.1 13.040(C) states: c.Slte Plan Review. Eoch element or development phose of the destlnotion resort must recelve odditionol approval through the required site plon review (DCC 18.124) or subdivlsion process (DCC Title 17). ln oddition to flindings sotisfyingthe slte plon or subdivision criteria, findings shall be mode thotthe specilic development proposal complies with the stondords ond criterfu of DCC 18.113 qnd the FMP. Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-OOO88'l-SP Thornburgh Golf Course Page5of17 EXHIBIT 2 The parties and the administrative approval set fonh different theories about what is required to demonstrate compliance with "standards and criteria of DCC 18.113 and the FMP." The administrative approval includes DCC 18.1 13.060 and 070 as applicable approval criteria. The Appellants also regard these sections as approval criteria for the current site plan review. The Applicant argued that DCC 18.113.060 and 070 are only applicable criteria for the CMP and FMP and DCC 18.113.090 is applicable criteria only for the FMP. The BOCC specifically interprets those aforementioned DCC provisions, and concurs with the Applicant that these sections are not written to apply during site plan review and do not apply during site plan review. The Applicant argues, and the BOCC concurs, that findings of compliance with the conditions of approval of the FMP, but not the CMP, are required as part of any site plan or tentative plan approval for the resort. Those findings are made in the administrative approval, as modified and supplemented herein. The BOCC finds that several of the CMP conditions were found to be "satisfied" in the FMP decision. These are CMP Conditions 3, 8, 9, 11,13,14A, 148, 15,24,30 and 37. Also, Condition 28 was replaced by Conditions 38 and 39 and should not have been listed as a relevant approval criterion for review of the golf course application. Although not directly argued by the parties, the BOCC interprets the applicable DCC provisions and finds that many of the Appellants' arguments related more directly to DCC 18.113.080, which governs ongoing compliance with, and substantial changes to, and approved CMP. 18.113.080. Procedure for Modificatlon of o Conceptual Moster Plon. Any substontlal change, os determined by the Plonning Dlrector, proposed to on opproved CMP sholl be revlewed ln the some monner os the originol CMP. An insubstqntial chonge moy be opproved bythe Plonning Dlrector. Substontiol chonge to on opproved CMP, os used in DCC 18.113.080, meons on olterotion in the type, scqle, locotion, phostng or other chorocteristic ol the proposed development such thot lindlngs of foct on which the originol opprovol was bosed would be moteriolly offected. To the extent the Appellants in essence argued that that the subject site plan contemplates a "substantial change" to the approved CMP, the BOCC finds that that Appellants failed to demonstrate that any such assumed "substantial changes" altered the "$tpe, scale, location, phasing, or other characteristics of the proposed developmenf' thereby materially affecting the original findings of fact. Although further not identified as such, any assumed "insubstantial changes" were in essence previously approved by the Planning Director consistent with DCC 18.1 13.080 through the approval of the administrative decision. Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course Page6of17 EXHIBIT 2 D. Compliance with FMP Condition 10? FMP Condition #10 requires: Applicant sholl provide, ot the time of tentotlve plotlsite plon opprovol revlew for eoch indlvlduol phase ol the resort development, updoted documentotion lor the state woter right permit ond on qccounting of the full omount of mitigotlon, os required under the woter right,Ior that lndlvlduol phose. As understood by the County, the Appellants claim the decision erred in finding compliance with FMP Condition #10 because; i) the Applicant has not provided the updated documentation and accounting required, ii) the Applicant has not secured mitigation water from Big Falls Ranch with an enforceable contract, iii) any rights the Applicant has to water and water rights are not secured and available for mitigation, iv) the Applicanfs water rights permit has expired and the extension is not final so there is insufficient water for this application, and v) the amount of water doesn't include amounts needed for evaporation, construction, or maintenance. The BOCC disagrees with Appellants assertions and finds that the Applicant has provided the updated documentation and accounting required by FMP Condition 10. What is now FMP Condition #10 was first included in, and carried over from the CMP approved in 2006. By including the condition as part of the CMP, the BOCC at that time overturned a finding by a County Hearings Officer stating that "until the applicant demonstrates that it has enough mitigation credits to mitigate for 942 acre-feet of water (the estimated amount of consumptive use per OWRD), it is unlikely that the application will be approved." (Hearings Officer's CMP decision, page 25). Thornburgh appealed that Hearing Officer's decision to the BOCC arguing that mitigation water only needed to be provided when the water rights permit dictated, not priorto development of the entire resort. On appeal, COID manager SteveJohnson argued that: 'The decision rendered by Heorings Officer Anne Corcoron Briggs last month implies thot the Resort must bring oll of the woter to the toble with the opplication. This decision, if lefr unmodified, will set a precedent thot will artificiolly escolote the competition for woter rights in the bosin, and consequently drive the price up, and drive some farmers out. Her onolysis of Woter Availobility on page 25 expressly conditions opproval of the applicotion on hoving the credits in hond now. Some of this woter will not be needed for mony yeors, ond this policy, if followed, will be o woste of woter, againstthe beneficiol use doctrine that is the pillor of Oregon's water low policy." The previous BOCC agreed with Thornburgh and COID, and required Thornburgh through Condition 10 to provide mitigation water when required by the OWRD water right permit. Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course PageT of 't7 EXHIBIT 2 The previous BOCC further found that prior to mitigation water being required by the OWRD water right permit, Thornburgh is only required to show it is not precluded from obtaining mitigation water as a matter of law. The previous BOCC further found that Thornburgh had met that standard and had exceeded it by showing it was feasible at that time to obtain sufficient mitigation water when required by OWRD. (See BOCC CMp Decision, pgs. 70- 72).The current Bocc agrees with and considers those previous findings as binding onthe subject application. Although on appeal, the BOCC also agrees with a separate County Hearings Office/sfindings concerning Condition 10 as it related to the Phase A-1 tentative plan application: "Condition 10 oppeors primorily to be on informational requirement requiring documentation ofthe stote woter permit ond on occounting of mitigotion under the woter right." (Hearings Officer"s 2018 Tp Decision, page 33) . That second Hearings Officer found that evidence in that record demonstrated that theresort was in good standing with OWRD, and the Applicant satisfied Condition 10 byproviding an estimate of the amount of mitigation water needed for phase A-1 . When considering the Phase A-1 tentative plan on remand in 2019, the current BOCC also interpreted the FWMP to require the Applicant to mitigate the impacts of phase A-1 before pumping groundwater to serve Phase A-1. Consistent with the BOCC's decision in phase A- 1 tentative plan matter, and consistent with what the Coun!y's understanding of what will be required by the OWRD, the BOCC finds that the subject application is contingent only on an assessment of the water needs associated with approval of the subject site plan. The BOcc finds that the information provided in the record in this matter and detailed below relevant to the golf course and lakes sufficiently satisfies condition 10. To support the subject application, the Applicant provided updated documentation that shows Pinnacle Utilities, LLC (Pinnacle) owns water rights permit #G-17036.See Applicant,s Exhibit H-2. This is a permit for a quasi-municipal use of water granted by oWRD for this project. See Applicant's Exhibit H. On June 24,2018, Pinnacle submitted an application to amend its lncremental Development plan, which was approved on July, 10, zojg. See Applicant's Exhibit H-3. on April2, 2018, Pinnacle applied to extend the time to fully develop the water uses of permit G-17036. On June 5,2018, OWRD issued a proposed Final Order (PFO) approving Pinnacle's extension. See Applicant,s Exhibit l. on July 20, 2018, Gould filed a protest of owRD's PFo approval and has requested a contested hearing. That appeal is pending. As understood by the County, permit G-1703G remains in place during the review of the extension unless and until cancelled by OWRD. See OAR 590-320-0020 (requires OWRD to send a certified letter of intent to cancel a permit, with 60 days to respond). There is no evidence in the subject record demonstrating that Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-OOO881-SP Thornburgh Golf Course page g of 17 EXHIBIT 2 OWRD has taken action against permit G-17036, nor does anything in the subject record demonstrate that OWRD intends to do so. OWRD, instead, advised the County after the Gould appeal was filed that Pinnacle's water rights permit is in good standing. See Applicant's Exhibit S. OWRD's Water Rights lnformation Query states that the status of the permit is "non-cancelled." See Applicant's Exhibit H-4. Last, again acknowledging that the matter is on appeal, the BOCC nevertheless notes that our findings in this matter are consistent LUBA s recent treatment of the issue agreeing with the County Hearings Officer,s findings concerning the Applicant's phase A-1 tentative plan application. The Applicant filed a "Mitigation Debit Table," with the County that shows the amount of mitiSation water needed for the subject site plan and the previously approved phase A-1 tentative plan. See Applicant's Exhibit AA. That table also shows the mitigation required at build-out of the Resort. Approximately 84-acre feet of water rights or 151-acre feet of mitigation water is needed for the development proposed by the subject site plan and for uses allowed outright by the phase A-1 tentative plan. E. Compliance with FMP Condition i7? FMP Condition #17 requires: All development withln the proposed resoft sholl meet ott ftre protection requirements of the Redmond Fire Deportment. Flre protectlon requirements sholl include oll mlnimum emergency roodwoy lmprovements. As understood by the County, the Appellants argue that heayy excavation, grading and construction on dry brush increases the fire danger such that the County should require the installation of fire hydrants at a condition of approval. The Appellants also argue that other requirements stated in comments filed by the Redmond Fire Marshal must be incorporated into conditions of approval for this application. Last, the Appellants argue that all the Resort property has not been annexed into the Redmond Rural Fire District (RRFD), but agree that the site plan property is annexed into RRFD. The Applicant responded by submitting documents that show the entire Thornburgh Resort property was annexed into the RRFD. The Applicant also explained that the CMp made such annexation a condition of approval, and that the condition was determined to have been satisfied by the FMP. Further, the Applicant submitted an email from Clara Butler, Redmond Fire Marshal, clariffing that RRFD doesn't require fire hydrants or access, until such time that combustible materials for structures are on site. The subject site plan includes neither. Staffs Administrative Decision determined that a safe environment under DCC 18.124.060(C) includes fire safety, and found on page 32 of that decision as follows: Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course Page9of17 EXHIBIT 2 "Moreover os required under DCC 18.124.060 the Applicont shott provide written confirmotion from the Redmond Fire Department thot ott applicabte fire sofety stondards ore met; including this developmen(s compliance with the resort's Wildfire/Notural Hazord Protection Plan shott be submitted prior to co m m e n ce m e nt of co nstru cti o n, eo rth m ov i ng, o r cl eo r i n g.', The BOCC finds for the reasons above, the application compties with FMp Condition 17 without the cited finding in the administrative decision or the related language in condition of approval H from the administrative decision to impose such a requirement of the site plan approval. The email from RRFD resolves concerns about fire safety and DCC 18.124.060(C) is met as it relates to fire safety. The language quoted above is removed from page 32 of the appealed decision from page 32 as is the last sentence of Condition of Approval H. F. Compliance with 18.124.060(8)? DCC 1 8.1 24.060(8) requires: The londscope ond existing topogrophy sholl be preserved to the treotest extent possible, consldering development constroints ond suttobility of the londscope ond topogrophy. Preserved trees and shrubs shqll be protected. The Applicant's Burden of Proof states: 'The golf course is being designed and built with a minimalist philosophy where the entire design and development process aims to create the minimal amount of impacts to the natural environment and landscape. This is a key cornerstone of the resort's minimalist development philosophy, a concept popular 100 years ago. Fairways will be laid into the natural topography to minimize the earthwork required. The golf course will adapt and adjust to unique features, like rocks, ledges, valleys, and unique old growth Juniper trees. lt is a given that significant clearing will take place to accommodate golf play and provide for the safety of the golfers and employees. Furthermore, the removal of juniper trees is authorized by the Wildlife Management Plan to reduce water consumption and thereby benefit wildlife. Clearing will, however, be done with a light touch. Furthermore, minor refinements will be made during the clearing and construction process to preserve natural features, trees, and other interesting characteristics the land presents. The lake has been sited to take advantage of natural topography to minimize the earthwork.,, Appellant COLW argued as follows: 'The Applicant in response to this requirement identifies nothing that will be preserved and merely asserts having 'a minimalist philosoph/ and a 'light touch.' More is required of a site plan or else this requirement is meaningless. There must be a showing of what is to be preserved and how. lf preserved trees are to be Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-sP Thornburgh Golf course page 1 0 ot 17 EXHIBIT 2 protected, we need to know what the preserved trees and shrubs are in the first place." ln response the Applicant stated 'The [A]pplicant provides substantial details in Ex. 46 how this issue was resolved by the far broader standards of the CMP and FMP, including the WMP/FWMP, the Natural Characteristics Report (Ex. 42), the Wildlife and Habitat Report (Ex. 43), the Open Space Management Plan (Ex. 441. Extensive planning and analysis was completed to comply with the CMP/FMP that meets this standard. Further the [A]pplicant has provided evidence that it will use a light touch to build the golf course that will preserve the landscape and topography to the greatest extent possible. The site plan itself shows the fairway lines, which represent the area that typically would be cleared, completely. The materials have stated that while we may clear everything within those corridors on some fainruays that we will use extreme efforts to leave as much vegetation within those corridors as possible. The areas outside of the golf fairway corridors is covered by FMP condition #34 which deals with the restoration of disturbed native vegetation. The WMP (Ex. 38 and Ex. P) deals with the timing of when restoration efforts take place. Additional details are found in Ex.46: CollateralAttacks, and in Ex. 48: Comments Chart, Section 13, Pg. 15-16." Exhibit 46 #13 discusses issues relating to the protection, preservation, enhancement, and maintenance of natural features, natural characteristics and natural resources that were previously resolved under CMP approval criteria DCC 18.113.050(BX1), (4) & (5) and 18.113.070(E). The Applicant claims the CMP approval criteria, which have already been approved are broader than the requirements of '18.124.060(8). The Applicant submitted numerous documents from the CMP approval, including; Ex. 42:The Natural Characteristics and Geology Report from Newton Consultants, Ex. 43: The Wildlife and Habitat report from Tetra Tech, and; Ex.44:the Open Space Management Plan that assure compliance with DCC 18.124.060(B). The BOCC finds that the Appellants' argument that every tree and shrub to be preserved needs to first be identified and catalogued is unrealistic on a site plan of this size, roughly 100 acres, as it could entail thousands of trees and shrubs. That information, in this case, is unnecessary to achieve compliance with this criterion. The Applicant has already met the related requirements of the CMP in 18.113.050 and 070 which are broader than those of 18.124.060(8). The CMP materials consistently state a concerted effort will be made to minimize the impacts to natural resources, which is carried into this current application, to protect the landscape and topography. As stated in the application, the golf course and reservoirs were sited to minimize earthwork to preserve topography to the greatest extent possible. The fairway lines are significant. The area inside the fairwa/s lines may be cleared completely and still achieve compliance with this code criterion because this is typically Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course Page1lof17 EXHIBIT 2 necessary to construct any golf course and because Condition 34 of the FMP authorizes the removal of native vegetation from the golf course. The applicant has, however, agreed to use to preserve the landscape and topography within this area, where possible. The areas outside the fairway lines (improved golf corridor) are covered under Condition #34 which reads. 34. Where construction disturbs natlve vegetotion in open spoce oreos thot ore to he retoined ln substontiolly noturol conditlon, Applicant sholl restore the nqtive vegetqtion. This requirement sholl not opply to lond thot is improved for recreotionol uses, such os golf courses, hiking or noture troils or equestrion or bicycle poths. The WMP prescribes the how, the what, and the when related to such restoration efforts of disturbed and protected areas and achieves compliance with DCC 18.124.060(8). This criterion is met. G. Compliance with DCC 18.124.060(D) DCC 1 8.1 24.060(D) requires: When oppropriote, the site plan sholl provide for the speciol needs of dtsobled persons, such os romps for wheelchqirs qnd Brqille signs. The Appellants argue this resort is open to the public and its recreational assets must meet ADA criteria for golf carts, including paving golf course paths. The Appellants further argue that showing the approximate locations of tees, greens, and other golf facilities is not adequate. Last, the Appellants also make several arguments related to the recreational use of the lakes, including that the beach areas at the large lake do not show how they will meet ADA guidelines for use or access, that lifeguards are needed, and that the lakes are to be used for water skiing. The Applicant's Exhibit 17, pg.1 5, the Guidelines for ADA compliance by the US Access Board demonstrates that while golf cart passages must be usable for golf carts, they do not need to have a prepared surface but may be part of a golf cart path. That said, the Applicant stated that the golf course will be ADA compliant and will provide barrier free access to its facilities, in accordance with the guidelines provided by the US Access Board. Once the Applicant files site plans for the golf clubhouse including parking and related facilities, the Applicant will be required to provide additional details for ADA compliance with those facilities as outlined by the US Access Board. ln relation to the lakes and beaches, the BOCC finds that this application does not propose, and its decision does not authorize recreational use of the lakes and beaches. Board of County Commissioners Decision, Document No. 2020-579 File No. 247-'19-OOO881-SP Thornburgh Golf Course Page 12 of 17 EXHIBIT 2 The BOCC understands the only recreational use proposed by this site plan is the golf course, and that the Applicant has committed to adhering to the US Access Board Guidelines detailed in its Exhibit 17 to comply with ADA requirements for the golf course. The BOCC determines this criterion is met with those assurances. H. Compliance with DCC 1t.116.030. The Applicant argued that DCC 18.1 15.030, OffStreet Parking and Loading, by its plain terms does not require the Applicant to provide parking spaces for development of its golf course because no buildings are proposed by the site plan. DCC 18.1 16.030 requires: "[Ofif-street parklng spoces shall be provided ( on the effective date of DCC Titte 18 is chonged." The Appellants argued that because the Applicant has segmented the application process and only applied for certain elements of Phase A of the resort, the site plan for the golf course and lakes is incomplete where it fails to address the site plan criteria for the required parking, walking paths, lighting and structures and facilities for the golf course and lakes. The Appellants further argue that a condition of approval deferring compliance with these elements is inappropriate as the code criteria must be satisfied before a site plan for the golf course can be assessed. The BOCC finds that no relevant approval criterion requires an applicant to apply for all development authorized to occur within the first phase of a destination resort at the same time. ln fact, the code clearly contemplates phased construction of improvements within each resort phase by prohibiting lot sales and the development of single-family homes until recreational facilities and overnight lodging units have been built or bonded. The BOCC further interprets DCC 18.1 1 6.030, contrary to the Applicant's argument, to speciff at what time parking must be provided for new or enlarged buildings ("...at the time a new building is hereafter erected or enlarged or the use of building existing..."), but not to preclude parking requirements for uses that do not involve buildings. Parking must be provided for uses subject to site plan review and accessed by vehicles, as required by DCC 18.116.030(A). The BOCC finds that provision of such parking would likely be necessary to make findings of compliance with 18.124.060(C and E). However, the BOCC does not support the Appellants' argument and finds that a motor vehicle parking lot is not required; where, as here, an applicant will not be opening the golf course for public use until it has developed a parking lot for golfers which it plans to secure when it files for approval of the golf clubhouse. This site plan approval allows construction of the golf course only; not use of the course by the general public which will not occur until after parking has been provided. The BOCC includes the following condition of approval: Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course Page 13 of17 EXHIBIT 2 Off-Street Parking: Prior to initiation of use of the golf course, the applicant shall apply for and receive Site Plan Review approval for off-street parking for the golf course. Likewise, birycle parking spaces are not required because motor vehicle parking spaces are not required. DCC 1 8.1 1 6.031 requires birycle parking only for "uses that require off-street motor vehicle parking." To the extent that the present decision defers determination of compliance with parking standards to a later review, the review will be a site plan review that will provide a full public right to participate, including the right to a hearing. l. Rebuttal Documents. The Applicant claims much of the Appellant Gould's rebuttal materials are new evidence, not rebuttal evidence as allowed by DCC 22.24.140(D): Leoving record open. lf ot the conclusion ol the initiol heoring the Heorings Body leqves the record open for oddltionql evldence or testimony, the record sholl be left open for ot leost 14 oddltional doys, allowing at leost the flrst seven days for submittol of new wrltten evldence or testlmony ond ot ieost seven odditionol doys for response to the evldence received whlle the record wos held open. Written evidence or testimony submitted during the period the record is held open sholl he limited to evldence or testlmony that rebuts submitted evidence or testlmonv. (emphasis added). ORS 1 97.763(6)(c) specifies: U the heorings authority leoves the record open for oddltionol written evidence, orguments or testimony, the record sholl be left open for ot least seven doys. Any porticlpont moy lile a wrltten request with the locol government for qn opportunityto respond to new evidence submitted during the neriod the record wos left oaen. lf such o reouest is filed. the heorinss outhority sholl reopen the record pursuant to subsection (7) of this section. (emphasis added). Pursuant to both applicable DCC and state statutory provisions, new evidence must be flled during the flrst post-hearing comment period and evidence in the second post-hearing comment period is limited to responses to new evidence filed in the first post-hearing comment period. The Applicant argues that improper rebuttal included materials from Anuta, Jeff Kleinman, Gould, Mel Stout, and Don Barber received during the second post-hearing comment period that closed on July 8,2020. The BOCC finds that specific items the Applicant cites as improper rebuttal from Kleinman, Gould, Stout and Barber were not responsive to evidence or testimony submitted by Applicant and are rejected. The Applicant's final argument provided a detailed list of Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-00A881-SP Thornburgh Golf Course Page 14 of 17 (c) EXHIBIT 2 improper rebuttal evidence. The BOCC concurs with Applicant and incorporates Exhibit B, which is incorporated in its entirety into this decision, regarding improper rebuttal, including findings that explain why these arguments, should they be deemed proper rebuttal on appeal, are not grounds for denial of the site plan. The BOCC adopts Exhibit B as findings that support approvalof the site plan application. rv. DEctstoN The BOCC finds that the application for approval of the site plan for the golf course and lakes meets the applicable criterion and hereby affirms the Administrative Decision with the modifications and clarifications contained herein. V. Conditions of Approval The BOCC adopts and restates the conditions of approval from the administrative approval, with modifications shown in underline and strj*ethreugh. A. This approval is based upon the application, site plan, speciflcations, and supporting documentation submitted by the applicant. Any substantial change in this approved use will require review through a new land use application. B. Landscaoe & Tooograohv Preservation: During construction and as an onsoing conditlon of approval, the landscape and existing topography shall be preserved to the greatest extent possible, considering development constraints and suitability of the landscape and topography. Preserved trees and shrubs shall be protected. C. Exterior Lighting: As an ongoing condition of approval, all exterior lighting shall be shielded so that direct light does not project off site. D. Road Crossings: Prior to initiation of use of the golf course, where the walkway system crosses roads, the walkways must be clearly identifiable through the use of elevation changes, speed bumps, different paving material, or other similar method. E. Off-Street Parking: Prior to initiation of use of the golf course and$, the applicant shall apply for and receive Site Plan Review approval for off-street parking for the golf course an4.lakes. F. Driveway Access: Prior to lnltlation of use of the golf course and lakes, the applicant shall obtain driveway access permits for any new or existing unpermitted road accesses to Cline Falls Road pursuant to DCC 17.48.210( ). Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course Page15of17 EXHIBIT 2 G. FMP Condition 5: Prior to initiatlon of use of the golf course and lakes, the developer will design and construct the road system in accordance with DCC Title 17. Road improvement plans shall be approved by the Road Department prior to construction. H. FMP Condition 17: All development within the proposed resort shall meet all fire protection requirements of the Redmond Fire Department (Redmond Fire & Rescue).s shall inelude all minimum emergeney readway imprcvement+ l. FMP Condition 29: As an ongolng condition, comply with the ODOT Contribution Agreement to "assure the applicanfs mitigation responsibility to ODOT is met now and through completion" of the resort. J. FMP Condition 31: As an ongoing condition, all exterior lighting must comply with the Deschutes County Covered Outdoor Lighting Ordinance per Section 15.10 of Title 15. mHst be physieally previded er finaneially assured pursuant te DCC 18,1 13,1 10 prier te elesure ef 'ales, rental er lease ef any residential dwellings erlets Dated this20day of August 2020. BOARD OF COUNry COMMISSIONERS FOR DESCHUTES U*U PattiAdair, Chair Anthony DeBone, Vice Chair ?L6 Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course Philip G. Henderson, Commissioner Page16of17 EXHIBIT 2 THIS DECISION BECOMES FINALWHEN MAILED. PARTIES MAYAPPEALTHIS DECISION TO THE LAND USE BOARD OF APPEALS WITHIN 21 DAYS OF THE DATE ON WHICH THIS DECISION IS FINAL. Board of County Commissioners Decision, Document No. 2020-579 File No. 247-'19-OOO881-SP Thornburgh Golf Course Page 17 of 17 EXHIBIT 2 EXHIBIT A: ISSUES BARRED UNDER THEORY OF COLLATEML ATTACK Following are the 17 categories of items that opponents raised in this proceeding that were resolved in the CMP (items 1 ,2,3,3A, 5, 8, g, 10, 1 1, j2, 13, 14, 15,16 & 17) and FMp (items 4,6 & 7) and are barred as lmproper Collateral Attacks, as described in the Decision, which generally says that: lssues that were raised and resolved or could have been raised about an issue during the review of the CMP/FMP may not be raised during subsequent proceedings including the review of the golf course site plan and should be rejected. Further details of these "barred" issues can be found on Ex. 48: Applicants Comments Chart, Sections 1-17. Many of Opponents claims in this and past proceedings, including all of the claims listed in #1-5 below relate to water, that it is not available, that Applicant does not have it, cannot use it, or that it is not adequate in some way. The 2008 Hearing Officer found the OWRD water rights process is the only way to determine whether mitigation water is returned to the streams. The Board concurs, finding, save for the limited role afforded the County by Condition 10 and the FWMP, that the oWRD is the authority which governs the Resorts water use and mitigation. And, that it is OWRD, and not the County that will administer and monitor whether the Resort has adequate water, including mitigation water for the Resorts development going forward. ln spite of the limited role the County has, the following issues are the "wate/'issues Opponents raise here: 1. Availability of Water - CMP: 18.113.070(K) reads, in part: Adequote wqter will be ovqllqble for oll proposed uses ot the resort, bosed upon the water study ond o proposed woter conseruqtion plan. Woter use will not reduce the avotlobiltty olwoter ln the woter lmpoct oreos tdentifted tn the woter study considering existing uses ond potentlol development prevlously opproved ln the oreo. The Board finds issues related to water availability for all the Resorts proposed uses are CMp criterion resolved by approval of the CMP. Any further attack is an impermissible collateral attack. Because the Applicant is using water for an approved use and is not proposing changes to the prior approvals, no further actions are required by the County to comply with this settled issue. The Board finds the Opponents claims are not applicable to any relevant site plan approval criteria. As it is conceivable these findings will be challenged on appeal, the Board has also addressed and resolved the arguments raised on their merits below. Opponent claims regarding water availability include: a. Water availability has not been proven. b. The applicanfs assets, including water rights, are secured for loans. c. A lake by deflnition is filled with water. d. The Resort does not have the water to fill the lakes, water the ground, or provide the needed fire flow. e. The amount of water needed for the lakes may not be correct. Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course - EXHtBtT A Page 1 of 22 EXHIBIT 2 f. CMP Studies finding no impact on neighboring wells are false, the water table is dropping, our wells will be impacted, occupancy rates will increase usage. g. Watering a golf course is a waste of the resource, and the area does not have enough water for this use. h. The golf course, the lakes, and the water for them as well as their construction and maintenance, was not approved in earlier proceedings. i. Any issue related to water is not a collateral attack.j. The decision was flawed to find compliance with 18.1 13.070(K). lssues raised by: N. Gould, N. Engebretson, Ambers, P. Geiser, D. Stout, P. Lipscomb, COLW, G. Burton, H. Lonsdale, M. Saslow, andJ. Kleinman. The Applicant responded: 18.1 13.070(K) required the water study to obtain approval of the CMP which needed to include water for all proposed uses at the resort. The CMP application (and water study) and the resulting approval included 3 golf courses plus ancillary golf facilities, up to 77 acres of lakes, along with the maintenance, evaporation, and construction needs of the resort (See Ex. 30, Board CMP Dec., Pgs. 5-9). ln the 2006 CMP proceedings the Board found the resort's source of water is ground water from the regional aquifer and that the applicant submitted the required water study which demonstrated that adequate water is available for the entire Thornburgh Resort project. Applicant also submitted a copy of its application to OWRD and a letter from Dwight French, OWRD to the record of the CMP, confirming that ground water was available for the project. and that, the proposed use of ground water from new wells was not expected to interfere with other existing ground water uses. The Board noted the OWRD conclusions were "supported by conclusions reached in the Water Study submitted by Applicant, and in the report prepared by Eco: Logic on behalf of the proJect opponents." The Board added that "[b]ased on this information, Applicant demonstrated that ground water is available...." and "the water availabillty standard has been satisfled by the Applicant." See Ex. 30, CMP Board Pg.23. Also, Opponents has not cited to relevant approval criterion and that the claims are not relevant to the approval of this site plan. While no further evidence or argument is needed for this site plan approval for these issues, the Board finds that Applicant has met the standard. The evidence shows the uses proposed by this site plan were previously approved, that Applicant has provided an accounting of the water required for the proposed and approved uses including the water needed for the maintenance and evaporation of the lakes which is based on amounts from the water study, the total water demand is less than the 2,129 acre-feet the Applicant is permitted to pump. See Ex. AA. Further, Jan Neuman, Applicant's water rights counsel states Applicant has hundreds of acres of water rights the resort could use for the project. See Applicants Ex. O, & Ex. 18, Neuman Letters. 2. Availability of Mitigation Water - CMP. 18.113.070(K). Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course - EXHIBIT A Page2of 22 EXHIBIT 2 The Board finds the issues related to availability of mitigation water for all the Resort's proposed uses are CMP criteria that were resolved by approval of the CMP. Any further attack on them is an impermissible collateral attack on the CMP. Because the Applicant is using water for an approved use that is not proposing any change to the prior approvals, no further actions are required by the Applicant to comply with this settled issue. Further, the Board finds that the Opponent claims are not applicable to any relevant site plan approval criteria. As it is conceivable these findings will be challenged on appeal, the Board has also addressed and resolved the arguments raised on their merits below. Opponent claims regarding the availability of mitigation water include: a) The 2OO7 Big Falls Ranch (BFR) agreement was revoked, and Applicant refuses to show the new agreement with BFR. b) The applicant's assets, including any alleged mitigation water is secured for loans. c) The applicant does not have mitigation water now, it has not registered mitigation water with OWRD. d) Applicant only has temporary mitigation credits. lssues raised by: N. Gould, COLW D. Arnold The Applicant responded: The claims that "applicant needs to have mitigation water to obtain land use approvals, or that it has not shown mitigation water is available" were made and resolved numerous times, beginning 15 years ago with the approval of the CMP in front of the Hearing Officer. Then applicant provided information mitigation water was available for purchase from numerous sources including Big Falls Ranch, Deschutes Resource Conservancy, COID and the McCabe Trust. Applicant provided a Memorandum of Agreement evidencing its Option to purchase water from Big Falls Ranch but did not provide the agreement itself. Gould argued applicant was required to provide copies of the actual agreements it had for mitigation water. The Board, in its 2006 decision denied Gould's claim, noting this was a bigger policy question; "The question before the Board lBoard] is whether, in order to demonstrate that water is "available" under the county standard, an Applicant must provlde evidence of actual mitigation credits at the time of county revieq or whether it is sufflcient to demonstrate that lt is feasible for Applicant to obtain sufficient credits by the time the credits are ultimately required under the OWRD water right process." See Ex.30, Board CMP Dec. Excerpts, Pg.24 ln determining the county's standard the Board looked to LUBA's Boumon v. Jackson County,23Qr LUBA 628,647, decision and interpreted the Countystandard to require no more than what Boumon required, namely that a decision approving the application simply requires that there be substantial evidence in the record that Applicant is not precluded from obtaining the required mitigation [water rights permitsl. The Board went on to say that: "even if the standard were interpreted to require more it certainly would require no more than a showing that the Board of County Commissioners Decision, Document No. 2020-579 File No. 247-'19-000881-SP Thornburgh Golf Course - EXHIBIT A Page 3 of 22 EXHIBIT 2 acquisition of the necessary mitigation credits is feasible. Such a showing can include evidence that mitlgation water is generally available in the basin and that the Applicant has a reasonable plan for acquiring mitigation from available sources." See Ex. 30, Board CMP Dec. Excerpts, Pg.24. The Board approved the CMP because Thornburgh had made both showings; settling the issue of whether mitigation water is available for the Resort's use and that it had a reasonable plan. The issue of whether a mitigation purchase agreement must be provided to the County was specifically addressed and resolved against Gould. Gould argued "that Applicant is required to provide copies of the option or purchase agreements described by Applicant in materials filed with owRD and the county.,, ln response, the Board said "the Board disagrees such documentation is required..... the evidence that mitigatlon water will be available is overwhelming without the need to have copies of the actual option or purchase agreements in the record." The Board concluded Applicant easily met the required standard noting Applicant's evidence of the option agreement with Big Falls, which was confirmed by Rex Barber, President of BFR See Ex. 30, Board 2006 CMP Dec. Excerpts, pg.27 . The Board finds the evidence shows the Applicant has met the standard to show it has the mitigation water available that it will need to mitigate for the amount of water required when needed for this site plan. The Applicant provided a current recorded Memorandum of Agreement evidencing its purchase contract (not Option agreement) with Big Falls Ranch (See App. Ex. T, Memorandum of Agreement with BFR). Applicant's water counsel Jan Neuman verified the MOA s existence, and that it was for f ar more water than is needed for all of the resorts Phase A water mitigation needs, which was also conflrmed by Rex Barber, President of BFR, and Liz Fancher, Applicant's land use counsel. See App. Ex. U-2, Neuman Letter 9124118, App. Ex. 19, Liz Fancher memo. 3. CMP Condition 10: This condition states: 10. Applicont shall provide, ot the time of tentotive plotlsite plon review lor eoch individuol phose of the resort development, updoted documentotion for the state woter right permit ond qn occountlng oI the full omount of mittgation, os required under the woter right, for thot individuol phose. The Board finds the issues related to the interpretation of Condition 10 was resolved by approval of the CMP and any attack on Condition 10 is an impermissible collateral attack on the CMP. Because the Applicant is using water for an approved use that is not proposing any change to the prior approvals no further actions are required by the County to comply with this settled issue. Further the Board finds that the Opponents claims b-d below are not applicable to any relevant site plan approval criteria. As it is conceivable these findings will be challenged on appeal, the Board has also addressed and resolved the arguments raised on their merits below. Opponent claims include: Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-00A881-SP Thornburgh Golf Course - EXHIBIT A Page 4 of 22 EXHIBIT 2 a) The application has not provided the required documentation. b) The decision erred in finding compliance with Condition 10 because the applicant has not shown it has an enforceable contract with BFR. c) The applicants permit is expired, Gould protested extension, Applicant had no beneficial use, filed extension late, can not pump any water, the record changed, and has no water for fire safety. d) Applicant is seeking to delay compliance with the condition. lssued raised by N. Gould and COLW. The Applicant responded: Condition #1 0 was made a condition of approval by the Board of County Commissioners when it approved the CMP in 2005. lt overturned a finding by Hearings Officer Briggs that said "until the applicant demonstrates that it has enough mitigation credits to mitigate for 942 acre-feet of water (the estimated amount of consumptive use per owRD), it is unlikely that the application will be approved." See ExhibitJ, page 25 of the CMP decision. Thornburgh appealed Hearing Officer Briggs' decision to the Board arguing that mitigation water only needed to be provided when the water rights permit dictated; not prior to development of the entire resort. As explained by Steve Johnson, COID Manager: 'The decision rendered by Hearings Officer Anne Corcoran Briggs last month implies that the Resort must bring all of the water to the table with the application. This decision, if left unmodified, will set a precedent that will artificially escalate the competition for water rights in the basin, and consequently drive the price up, and drive some farmers out. Her analysis of Water Availability on page 25 expressly conditions approval of the application on having the credits in hand now. Some of this water will not be needed for many years, and this policy, if followed, will be a waste of water, against the beneficial use doctrine that is the pillar of Oregon's water law policy." See Exhibit K. The Board agreed with the Resort. In reaching this decision, the Board found that Thornburgh needed to provide mitigation water when required by the OWRD water right permit and prior to that time it is only necessary for the Resort to show it is not precluded from obtaining mitigation water as a matter of law. The Bodrd found Thornburgh exceeded this standard by showing it is feasible for it to obtain sufficient mitigation water when required by OWRD. See Board CMP Decision Pgs. 70-72, Exhibit L. The Board imposed Condition 10 as a condition of approval of the CMP to insure it provided an accounting of the mitigation water needed for each phase of development. Hearing Officer Olsen, in the Phase A-1 tentative plan decision, explained Condition 10's requirements as follows: "Condition 10 appears primarily to be an informational requirement requiringdocumentation of the state water permit and an accounting Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-OOO881-SP Thornburgh Golf Course - EXHIBIT A page S of 22 EXHIBIT 2 of mitigation under the water right." Hearing Officer Olsen was correct in what Condition 10 requires. lt is an informational condition requiring updating the documentation of the water permit and providing an accounting of the amount of mitigation needed under the water permit for each phase of development. Opponents are attempting to expand the scope of what Condition 10 requires. The time to have done so was during the CMP proceedings. They cannot come back and make a belated claim to amend an approval made 14 years ago. To do so is a collateral attack on the CMP and any change to the intent of Condition 10 should be rejected. The Board agrees this was resolved in the CMP with an intent consistent with Hearing Officer Olsen's interpretation, that it is an "informational requirement". The language of Condition 10 requires "updated documentation of the state water right permif'. lt does not require that the documentation show any particular status, for example; that the permit is free of protest, or the extension is pending. lt just requires updated documentation which the Applicant provided. lt shows the Applicant has a water rights permit, that the permit has not been cancelled, and that it is in good standing. Condition 10 does not require the Applicant to provide an agreement, or anyform of proof of an agreement or contract for mitigation water. It just requires Applicant to provide an accounting of the mitigation water for the uses in this site plan. Opponent attempts to expand the scope beyond that is a collateral attack on the CMP. 3A. Need Reservoir Permit. The Board finds that opponents raising the issue at this stage is an impermissible collateral attack on the CMP and the Water Rights permit process. lt is also improper rebuttal, (See Liz FancherJuly 15,2O2Q response to Anuta letter and Ex. 47l.lt is also not relevant to any site plan approval criterion. Opponent Gould claims Applicant needs a reservoir permit to hold water in its lake. The appl icant responded: The reservoir permit issue is one that should have been raised during the review of the CMP; not during review of the golf course/lake site plan when it is an impermissible collateral attack on the CMP. CMP criterion DCC 18.1 13.070(K) required the Resort to demonstrate "adequate water will be available for al! proposed uses at the destination resort." The Board finds that, at no submission from OWRD has ever suggested such a reservoir permit was needed. To the contrary, the Resorts water rights permit explicitly authorizes year-round use for: "QUASI-MUNICIPAL USES, INCLUD|NG tRRtGATtON OF GOLF COURSES AND COMMERCIAL AREAS, AND MAINTENANCE OF RESERVOIRS.'' Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course - EXHIBIT A Page 6 of 22 EXHIBIT 2 ln this site plan and the prior Phase A-1 proceedings OWRD stated multiple times that Applicant has a water rights permit G-17036 for the proposed Project that is in good standing. ln this for the golf course and lakes OWRD confirmed that Applicant only needed to provide mitiSation water in order to pump water for these uses. Further details on the merits are included in the Decision. 4. Availability of Mitigatlon Water & Adequacy of BFR Water - FMP. 18.113.070(D). As noted above the Board found the issues related to availability of mitigation water for all the Resorts proposed uses are CMP criterion that were resolved by approval of the CMP. lssues related to the Availability and Adequary of the Big Falls Ranch water was resolved with the approval of the Fish and Wildlife Mitigation Plan (FWMP) during the FMP proceedings. Any attack on them is an impermissible collateral attack on the prior approvals. The Board also finds that the Opponent claimi are not applicable to any relevant site plan approval criteria. As it is conceivable these findings will be challenged on appeal, the Board has also addressed and resolved the arguments raised on their merits below. Opponent claims include: a. The BFR water is pledged as security for other uses. b. The flow of Deep Canyon Creek needs to be measured, c. lt's unclear whether the BFR water is "paper" water or "wet" water, d. The COID water is not included as mitigation water, and; e. BFR transferred the point of appropriation of its water rights. lssues raised by Y. Lind, COLW, J. Kleinman, N. Gould The Applicant responded The issue of the availability of mitigation water was conclusively resolved in the CMP. Nothing further was required for the FMP. The FMP did not require the applicant to veriff or re-certif, the finding of the CMP that mitigation water was available for use in the FWMP. During the review of the FWMP, the applicant provided additional information to show that water from Big Falls Ranch would be used to provide thermal mitigation and that it was feasible for the Resort's water supplier to obtain this particular cold mitigation water to meet the no net loss standard of DCC 18.113.070.D. During the FMP proceedings, Gould raised issues related to availability and the adequary of BFR water including: A. BFR Water is already pledged for other purposes and is not available for mitigation. Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course - EXHIBIT A PageT of22 EXHIBIT 2 B. BFR transferred some of their water rights within their property it's hard to substantiate them. lt appears the BFR water right are not what Thornburgh says. C. The acquisition of water rights is not evidence that water will actually be returned to the rivers and streams as alleged as water rights are merely paper representations of water quantities. The hearings officer disagreed, denying Gould's arguments, and approving the FMP without any condition requiring any proof then, or in the future, that i) the BFR water rights were not pledged or secured elsewhere; and ii) there is no requirement that Deep Canyon Creek flow be subsequently measured or confirmed. She also determined the OWRD water rights process is the only way to ensure actual mitigation water is returned to the streams. See Ex. 21,2OOB Hearing Officer Dec. Pg. 23-24, Ex.25: Gould 3'd Memo, Pg.4, with Crocker attachment. Gould appealed to LUBA arguing while the hearing officer noted there was substantial evidence that Thornburgh had the right to use BFR water, "the Hearlng Officer provided no condition of approval actually requiring that the necessary water be returned to Deep Canyon Creek or findlng that it was feasible to do so." LUBA denied the claim, noting that'Thornburgh responds that the Fish WMP and the August 11, 2008 letter to the hearings offlcer make it clear that Thornburgh is obligated to mitigate by acquiring the Big Falls Ranch water rights and returning that water to Deep Canyon Creek." LUBA concluded:'We agree with Thornburgh." Gould questioned: "whether the COID water would be available" arguing "the Hearings Officer made no finding of feasibility and did not include a condition of approval requiring that proposed mitigation water actually be available and used." On this issue LUBA stated: "Thornburgh responds, and we agree, that the issue of the feasibility of acquiring water rights from COID if necessary was resolved in our decision in Gould I (the appeal of the CMP)." See Ex. 31 FMP Appeal, Pgs.3-7. Gould appealed LUBAs decision to the Court of Appeals. Specifically, in her 2nd assignment of error, Gould argued: 1. "Actual mitigation from Big Falls Ranch is not required," 2. "No condition requires actual mitigation by Central Oregon lrrlgation District water," 3. LUBA erred when it found the COID mitigation water "does not necessarily offset thermal impacts on fish associated with the requirements of DCC 18.113.070(D), and; 4. A general condition only requiring compliance with OWRD rules is not sufficient." Gould argued that condition 10 only requires the applicant comply with water laws administered by OWRD. And that a "condition of approval on water quantity does Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course - EXHIBIT A Page 8 of 22 EXHIBIT 2 not obviate the need for a condition on water quality." Gould asked the Court to add further conditions of approval. See Ex. 31. FMP Appeals Excerpts, pg.14.The CoA denied Gould's claims, did not require any further conditions, and found that LUBA did not err in simply requiring compliance with the FWMP. Goutd v. Deschutes County, 233 Or App 623, 635,227 P3d 758, 765 (2010). Compliance with the FWMP is assured by Condition 38 of the FMP and its program of annual monitoring. As long as a proposed development application does not alter the FWMP, the FWMp is not relevant in the review of a site plan or tentative plan application. LUBA affirmed this in 2019 during the Tentative Plan appeal stating: "FMP Condition 38 requires interuenor to "obide by the April 2008 Wildlife Mitigotion Plon, the August 2008 Supplement, and ogreements with the BLM ond ODFW for monagement of off-site mitigation elfortsfi ond ,,submit on annual report to the county detailing mitigotion octivities that have occurred over the previous yedr. * * * As estoblished in prior oppeols, the mitigotion plon satisfies the substontive no net loss/degrodqtion stondord for destination resort development. We agree with interuenor [Centrol Land] that the detoils of the mitigation plon ore estoblished by the FMP, and compliance br noncompliance) with the mitigotion meosures will be established by onnual reporting required by FMP Condition 38. We rejed petitionerb argument thot the FMp required interuenor to flll inlhc_dStgilgto obtoin opproval of a tentotive plon during phased development." Gould v. Deschutes County, _ Or LUBA _ (LUBA No. 2018-140, June 21 ,2}lg, Slip Opinion p. 37). Also Ex. G. LUBA TP Dec. As noted above, the applicant is required to comply with the terms of the FWMP. Compliance with the FWMP is assured by the annual reporting of mitigation that OWRD and the WMP requires applicant to complete. LUBA makes clear the Applicant is not required to do anything further to comply with the FWMP in order to obtain further development approvals. The constant barrage of frivolous claims regarding this issue are barred bythe CMP, the FMP, and the FWMP. They should be disregarded and denied outright. Opponents have again raised the issue of BFR's transfer of its water rights internally, claiming now, and in the TP that the transfer of the point of appropriation from Deep Canyon Creek to groundwater wells on their property made the water unavailable for mitigation. As overwhelming evidence shows, this is false and should be disregarded. The BFR rights are still surface water rights, BFR still owns them, and they are still available for mitigation. See Kyle Gorman, OWRD District Manager emailJuly 1, 2020, Ex.23: emailfrom Sarah Henderson, OWRD, Ex. U-2:Jan Neuman Letter. 9/24/19,Ex. 19: Liz Fancher memo, Ex. 20 K. Delashmutt arguments. Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course - EXHIBITA Page 9 of 22 EXHIBIT 2 The Board finds that the evidence and testimony Applicant has submitted shows BFR water is available, which is adequate. Further, issues related to the Big Falls water were resolved by the approval of the FWMP/FMP. Compliance with the FWMP is accomplished via the annual reporting required in the FWMP/WMP. The Board finds the applicant is not proposing any change to the FWMP/FMP and that no further actions are required to comply at this time. 5. Applicant lmpaired lts Ability to Use lts Water with Liens on lts Assets. The Board finds this is a claim on the Availability of Water, which as noted in #1 above is a CMP criterion 18.113.070(K) that was resolved in the CMP. Gould's failure to raise it then does not allow the argument to be made nory as it is a collateral attack on the CMP. The Board also finds that the Opponent claims are not applicable to any relevant site plan approval criteria. As it is conceivable these findings will be challenged on appeal, the Board has also addressed and resolved the arguments raised on their merits below. Opponent Gould claims because applicant has pledged its assets as security for loans it cannot use it water rights and other assets to provide mitigation as required. The Applicant responded: This is a sideways, and belated attack on the issue of water availability resolved by the CMP years after the approval was granted. The time to have addressed those issues was during the review of those plans. Gould's failure to raise the issue at the appropriate time does not allow it to be visited now. Also, as noted in letter from Jan Neuman, Applicant's water attorney, it is routine for development projects of this scale to have loans secured by project assets which is supported by evidence Mr. Delashmutt provide in rebuttal that at the time of the FMP approval Applicant had roughly $23 Million in debt that was secured by the project assets. Certainly, if that was an issue, it should have been raised then. The failure to do so is a collateral attack on those prior approvals and should be denied outright. The Board finds that it is routine for developers and certainly large development projects to have loans secured by the project assets, and that those loans do not preclude the use of the project assets for the benefit of the project. Further, at the time of previous approvals the evidence shows the project had far larger debt, that logically should have been of greater concern, but it was not raised. This claim is not grounds for denial of this site plan. 6. Removal of Deep Canyon Creek Dams - FWMP IFMP - 18.113.070(D). Condition #38. The Board finds this criterion was resolved with the approval of the FWMP in the FMP proceedings. The Applicant is not proposing any change to the FWMP and as such this is a collateral attack on the FMP. As it is conceivable these findings will be challenged on appeal, the Board has also addressed and resolved the arguments raised on their merits below. Opponent claims include Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course - EXHIBIT A Page10of22 EXHIBIT 2 a. The impoundments are stillthere. b. The head gate is out but the concrete weir is still there. c. Pictures shows water being impounded. d. The impoundments are not adequately addressed. e. Applicant will destroy Beaver Habitat when it removes the dams. lssues raised by COLW, D. Arnold, S. Dorsey. The Applicant responded: Discussion about the removal of two dams on Deep Canyon Creek began in 2008 when the Resort agreed to that it would remove them. As above, compliance with the FWMP is assured by the annual reporting of mitigation. LUBA's 2019 decision in Gould vs. Deschutes Countyfound the removal of the dams on Deep Canyon Creek is required by the FMP and is not relevant to the review of the tentative plan because the TP did not alter the FWMP. The same is true of this site plan. See Ex. 8, Liz Fancher letter. The applicant is not required to fill in the details or provide anything further at this point to comply with this element of the FWMP. Opponents' claims relating to the removal of either dam orthe impounding of water are collateralattacks on the FWMP and should be disregarded and denied outright, including Gould's most recent claim related to the beaver habitat. Concerns regarding compliance with the FWMP are properly resolved by the annual review called for by FMP Condition 38. Furthermore, David Newton, Newton Consultants lnc., the author of the FWMP, has explained the required timing of the dam removal required by the FWMP (see Ex. e, Pgs. 10-11). lt requires the flrst dam (the upper beaver dam) to be removed prior to the start of construction, and the second dam (the head gate along with the BFR concrete impoundment) is to be removed once the Applicant's pumping exceeds 1,201 acre-feet. At this time, removal of neither dam is required. That being said, the evidence clearly shows BFR has removed the head gate on its impoundment, allowing water to flow through their property to the Deschutes River, years before required by the FWMP and even before Applicant has pumped any water whatsoever. Aside from providing mitigation far in advance of when needed under the FWMP, the Applicant is not changing any terms of the FWMP and will assure compliance with its annual reporting as required. The Board finds the Applicant is not proposing any change to the FWMP, which calls for the dams to be removed at points in the future. Further, that while not required at this point, before it begins any pumping that the Applicant has caused the cessation of pumping of the Deep Canyon Creek water and the removal of the head gate which impounded the water in the Big Falls pond, allowing the Deep Canyon Creek water to flow to the river, subject to the constraints the Beavers reinstall. At this point the Applicant has done more than is required by the FWMP. Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-00088'l-SP Thornburgh Golf Course - EXHIBIT A Page 11 of22 EXHIBIT 2 7. Mitigation of lmpacts to Wildlife & the Old Tumalo Canal area (ACEC) (18.113.070(D). The Board finds these issues are CMP/FMP approval criterion resolved with approval of the Wildlife Mitigation Plan (WMP) and the FMP. Further attacks are impermissible collateral attacks on the CMP/FMP. Also, that issues a-f are not relevant site plan approval criterion. As it is conceivable these findings will be challenged on appeal, the Board has also addressed and resolved the arguments raised on their merits below. Opponent claims include: a. How is the resort planning to mitigate damage to the eco-system? b. The decision erred in finding compliance with Condition 38, c. Opponents disagree the impact is net zero, d. A new 2020 study needs to be done, e. Proximity to Golden Eagle nest, must take extra measures in addition to WMP,f. The applicant has not dealt with the Tumalo Canal area of concern, and; g. The site plan needs to address rock outcrops affected by the golf course. lssues raised by M.Saslow, N. Gould, The Applicant responded: Mitigation of impacts to Wildlife were approved in the FMP by the WMP. lncluded in that is mitigation to wildlife both on and offsite. The WMP deals with the Tumalo canal irrigation ACEC, as well as the locations of the rock outcrops. Condition 38 requires compliance with the FMP and WMP, which included care for the Tumalo Canal and rock outcrops. Applicant is not proposing any change any change to the terms of the WMP. ln accordance with the WMP the site plan address rock outcrops and the impacts to them. Further compliance with the WMP is determined by the annual monitoring the plan requires. Applicant is not required to fill in the details or provide anything further to meet this criterion. See LUBA pg. 9 above, and Ex. G, LUBA Decision. Any further claim is a collateral attack on the CMP/FMP. Also Claims a-f are not relevant approval criterion. The Board finds that LUBA has held that the WMP/FWMP, when followed, fully mitigates for the impacts to fish and wildlife. The Applicant is not proposing any change to the WMP, and that compliance with the WMP is accomplished via the annual reporting in the WMP. Also, Applicant's SP 3.1 shows the rock outcrops that may be impacted. This standard is met. 8. Economics - CMP - 18.113.070(C) (14) & 18.113.050(8X19). The Board finds these issues are CMP criterion that were resolved in the CMP and are collateral attacks on the CMP. Further they are not relevant site plan criterion. As it is conceivable these findings will be challenged on appeal, the Board has also addressed and resolved the arguments raised on their merits below. Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course - EXHIBIT A Page 12 of 22 EXHIBIT 2 Opponents Claims include: a. 2005 economic data is not viable. b. Golf course and lakes are not viable. We do not need more golf. c. Thornburgh should be required to enter into an agreement to use Eagle Crest golf courses. d. We do not need another resort. There is too much competition for same customer base. e. Job's and taxes should not be determining factors. f . Where is the affordable housing for workers who maintain the project? lssues raised by P. Lipscomb, N. Engebretson, saslow, Deborah, c. Larsen, L. Bakewell, M. Saslow. The Applicant responded Any issue related to viability of the golf course, the need for golf or other amenities, or the resort as a whole has been resolved in the CMP. The issue of siting golf in the Thornburgh Resort was resolved in the CMP. All issues related to the economic viability, the economic benefits the resort produces, and availability of affordable housing were resolved in the CMP. Further they are not criterion for approval of this site plan. There is no requirement for the applicant to provide any information on any element regarding the same. Similarly, there is certainly no code requirement that we enter into an agreement with any competitor. All of these issues are barred as impermissible collateral attacks on the CMP and should be rejected outright. While applicant is not required to do so, it will respond to the allegations as follows. The evidence shows Thornburgh is hugely viable, that it will provide tremendous economic benefits to the local economy. Economic benefits, including the creation of jobs and tax revenue was a criterion for approval of the CMP. ln compliance with the CMP requirements stated in 18.1 13.070(CX3) applicant retained Peterson Associates to undertake a complete economic study. The results showed the project would; 1) create an average of 1,355 direct and indirect jobs annually for the first 1 2 years, 2) produce nearly $19M in annual tax revenue at stabilization, making Thornburgh the 2nd highest paying taxpayer in the county and: 3) create little demand for public services resulting in massive benefit to public agencies. For example, annual tax payments directed to public schools would be about $7.4M while the cost of educating the few resort kids would only be about $340,000, an annual surplus of about $7M. ln the 2006 CMP decision (Ex. 30) the Board found that "even with the loss of re lands the economic benefit the resort pfoduces will provide an overuvhelming benefit to the county." As to affordable housing Peterson prepared a comprehensive housing analysis in 2005 as part of the CMP approval 18.113.070(CX3), which the Board found acceptable, stating that it was a'substantial report'. Ex.30, Pg. 16-17, Board CMP Dec. Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course - EXHIBIT A page 13 of 22 EXHIBIT 2 ln the 2018 Tentative Plan proceedings opponents raised similar concerns to those being raised here, i.e.: golf, economics, viability, etc. To address those concerns Applicant asked Peterson Economics to respond. Peterson noted; "Thornburgh will have an exceptionalgolf course designed by Coore-Crenshaw - clearly one of the very best "big name" designers, known for designing some of the very finest golf courses on the planet." In response to a comment that Thornburgh lands are not very good for a resort, Peterson opined, that "this could be the very best development parcel remaining in the Northwest". ln response to the proximity to Eagle Crest Peterson stated, that "although situated near Eagle Crest, Thornburgh would be positioned to serve a very different segment of the market. As such it would have little to no overlap....." Lastly referring to comments that things have changed since 2005 Peterson referred to a detailed financial analysis his firm did in June 20'18. At that time Peterson concluded "Thornburgh offers potential to generate very attractive net cash flow going forward exceeding $410 million in cumulative cash flow...." ln their june 2018 analysis Peterson points to a huge and expanding customer base, dispelling Lipscomb's implications of a static or stagnate customer base. See, Attachments 2, 3 and Exhibit 30, Pgs. 15-17. The Board finds that based on the 2005 evidence and the evidence and expert testimony Applicant submitted for this site plan, that the Resort is viable, and will provide substantial economic benefits for Deschutes County. 9. Drainage - CMP 18.113.070(l): CMP Condition 25. The Board flnds these issues are CMP criterion that were resolved in the CMP and are collateral attacks on the CMP. As it is conceivable these findings will be challenged on appeal, the Board has also addressed and resolved the arguments raised on their merits below. Opponent claims include: a. lt's not clear no natural drainages have been identified on the CMp/FMp b. The decision erred in finding compliance with 18.1 13.070(J). lssue raised byJ. Kleinman, N. Gould. The Applicant responded: The CMP established the drainage plans for the Resort which satisfied 18.113.070(J), and which are being adhered to in this site plan. Condition 25 required the filing of a detailed erosion plan with the first tentative plan, which was done. That same erosion plan was filed again with this site plan. Condition 25 is a filing requirement. lt imposes no performance standard for the plan, other than it be detailed. lt is detailed and has been filed. The Applicant is complying with the CMP conditions and any claim is a collateral attack on the CMP. See Ex. 8, TP Erosion Control Plan. Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course - EXHtBtT A Page 14 of 22 EXHIBIT 2 The Board finds that Applicant complied with this criterion by complying with Condition 25 which required that it file the Erosion Control plan with the initial tentative plan (or site plan, whichever is first). The Erosion Control Plan was accepted by Hearing Officer Olsen. ln this site plan, the entrance road is the only element surface drainage occur, so the Applicant filed the Erosion Control Plan with this application. This standard is met. 10. Waste-Water Disposal - 18.113.070(L): CMP Condition 15. The Board finds this issue is a CMP criterion that was resolved in the CMP and is a collateral attack on the CMP. Further it is not a relevant site plan criterion. As it is conceivable these findings will be challenged on appeal, the Board has also addressed and resolved the arguments raised on their merits below. Opponent claims the plan does not comply with 18.1 13.070(L) that its wastewater disposal plan includes the maximum beneficial use. The Applicant responded: The site plan does not require waste-water disposal. Further 18.1 13.070(L) was met by approval of the CMP (See Ex. 30, Board CMP Dec. Pg. 28.) and is no longer an issue unless the applicant is proposing a change to the waste-water system - which it is not. The applicant has a Water Pollution Control Facility permit as required by Condition #15 which was met prior to the submittal of the FMP. Any further attack is a collateral attack on the CMP/FMP. The Board finds the Applicant has satisfied Condition 15 by obtaining a Water Pollution Control Facility permit. This site plan is not proposing any facilities requiring waste-water disposal so maximum beneficial use is an irrelevant issue. Nothing further is required now. 11. Traffic and Access - DCC 18.113.050(BX2) & DCC 18.113.070(G): CMP Conditions 4 & 29. The Board finds these issues are CMP criterion that were resolved in the CMP and are collateral attacks on the CMP. As it is conceivable these findings will be challenged on appeal, the Board has also addressed and resolved the arguments raised on their merits below. Opponent claims include: a. Traffic counts are woefully low. b. Taxpayers are being asked to pay for a roundabout at Cook Avenue. c. How does a 2007 Traffic approval work now? d. The Board should require the Cooperative lmprovement Agreement with ODOT to be recorded. e. Although Northern access is not included the Tentative Plan drawings show grades over 10% that are maximum allowed by Redmond Fire. Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course - EXHIBIT A Page 15of22 EXHIBIT 2 f . Redmond Fire requires southern road to be built now but applicant has no access permit. g. The BLM requires extra things over county. No condition of approval requires compliance with BLM. lssues raised by N. Gould, C. Larson, L. Bakewell. The Applicant responded: DCC 1 8.1 13.050 & 070 are CMP criterion that were met with approval of the CMP and are collateral attacks. Applicant has done all that was required in the CMP. The applicant provided a tralfic report compiled by a professional traffic engineer which was accepted as valid by Deschutes County Road Department, ODOT and the Board. The report became the basis for negotiations with ODOT for the execution of the MOU (See Ex.34, ODOT MOU), compliance with which, the Board made a condition of approval (#29) of the CMP. See. Ex. 30, Board CMP Dec, Pgs. 1 2, 18-22,32. Further the applicant entered into a Right of way (ROW) agreement with the BLM pursuant to condition #4. In compliance with the terms of the MOU, Thornburgh subsequently entered into a Cooperative lmprovement Agreement (ClA) with ODOT. The CIA spells out the terms of Thornburgh's $1,125,000 contribution to the construction of the Cook Avenue roundabout. The CIA has no provision requiring it to be recorded. See Ex. O, CIA w/ODOT. Further, this claim is not a criterion for approval of this site plan. Lastly, according to Chris Clemow, Professional Engineer, the background traffic at relevant intersections was lower than was estimated to have occurred at similar times in the 2007 traffic study. See Ex.35, Clemow Letter, Pg. 6. Comments regarding the north and south roads were governed by the imposition of condition #4, requiring secondary access roads to be built prior to final plat approval or building permits, whichever comes first. This is further clarified and conditioned by CMP Condition #17 which requires that all development meet the requirements of Redmond Fire Depanment, including ingress and egress to the site. Redmond Fire provided an email, Ex. 16 that stated no water or access is required until combustible materials are arriving on site for a structure. This site plan is not a final plat approval, or require issuance of a building permit, and will not result in the delivery of combustible materials for a structure. As such no road or water is required. Further Ex. 28 is a letter from Redmond Fire confirming 12% grade is acceptable on the northern access road. The Administrative Decision required Redmond Fire to certifiT the applicant is in compliance with them prior to construction, earthmoving or clearing. While this site plan is not proposing any construction Ex. 16 makes clear there are no requirements for earthmoving or clearing. The language on page 32 of the staff decision reading: "Moreover, as required under DCC 18.124.060, the applicant shall provide written confirmation from the Redmond Fire Department that all applicable fire safety standards are met; including this development's compliance with the resort's Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course - EXHIBIT A Page 1 6 of 22 EXHIBIT 2 Wildfire/Natural Hazard Protection Plan shall be submitted prior to commencement of construction, earthmoving, or clearing,' should be stricken. Lastly, condition #4 required that we enter into the ROW. There was no ongoing condition that Applicant comply with the BLW Row as the Row has its own enforcement and compliance measures, similar to Condition 38 and the WMp. Applicant will comply with the BLM ROW. The Board agrees the language on page 32 should be removed as Exhibit l6: the email from Clara Butler, Redmond Fire resolves any concerns the county concerns may have and makes it a moot point, as noted in the Board decision. The Applicant shows it is complying with the MOU, has entered into a Cooperative lmprovement Agreement with ODOT and is complying with the related conditions of 4 and29. 12. Fire and Safety lssues are Not Being Addressed - 18.113.070(t): CMp Conditions 4, 19 &24. The Board finds these issues are CMP criterion that were resolved in the CMp and are collateral attacks on the CMP. As it is conceivable these findings will be challenged on appeal, the Board has also addressed and resolved the arguments raised on their merits below. Opponent claims include; a. Property has not been annexed into Redmond Fire. b. Redmond Fire Department requires the southern access road to be built now,c. The project needs to have back up power to insure fire flow. lssues raised by T. Bishop and N. Gould. The Applicant responded: This is a CMP criterion that has been resolved and these attacks are collateral attacks on the CMP. The entire property has been annexed into the Redmond Fire district. The Board made this Condition 24 of the CMP, which was approved in 2008 as is shown in Ex. 29: Annexation Documentation. The FMP decision determined that Condition 24 was satisfied. The timing of construction of the access roads was covered by Condition 4, which stated construction of a secondary/emergency access roads shall be prior to final plat approval or issuance of a building permit, whichever comes first. Further, the email from Clara Butler, Redmond Fire, makes clear that no access or water is required until combustible materials for structures arrive onsite. see Ex. 15. Applicant has met the standards and was approved in the cMp. There is no requirement in the CMP/FMP or County code requiring the resort to have backup power. lf Bishop had a concern about that he should have raised it in the CMp proceeding. The applicant is going to great lengths to ensure the safety of its residents and guests (Ex. 30-a, Board CMP Dec. Pgs. 8-10). lt completed a wildfire and natural Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course - EXHtBIT A Page 17 of22 EXHIBIT 2 hazards plan (Ex. M & Condition 19) and is planning redundancies in its power and fire suppression systems as described on the Comment Chart, submittedJuly 1,2Q2Q. The Board flnds the Applicant has addressed all fire and safety issues, that the southern road is not required now per Condition 4, that Condition 24 was satisfied with the complete annexation into Redmond Fire District. Also, the Applicant satisfied, and is complying with Condition 19:Wildfire and Natural Hazards plan. Nothingfurther is required atthis point. 13. Protection, preseryation, enhancement, and maintenance of natural features, naturalcharacteristics, and natural resources: CMP Condition #34. The Board finds these issues were raised and debated in the CMP, including under criterion 18.1 13.050(BX1), (BX4), (BX5) and 18.1 13.070(E), all discussed below. These were resolved in the CMP and are collateral attacks on the CMP. While the issues are related to 18.124.060(8), which is a relevant site plan criterion the CMP criterion are broader and more extensive than those of the site plan. As it is conceivable these flndings will be challenged on appeal, the Board has also addressed and resolved the arguments raised on their merits below. Opponent Claims include: a. The applicant "failed to identify the natural features to be preserved", b. Views and natural features must be identified and located on the site plan with commitments to how they will be preserved. lssues raised by COLW relate to 18.124.060(AXB) which is discussed in detail in the Decision. The Applicant responded: These issues were dealt with extensively in the CMP, to satisfl/ numerous code elements, including: 18.113.050(8)(1). A description of the noturol chqrocteristics of the site ond surrounding oreos, including o description of resources ond the effect oI the destinotion resort on the resources; methods employed to mitigate odverce lmpocts on resources; onolysis of how the overoll volues of the noturol feotures of the site will be preserved, enhonced or utlllzed in the design concept for the destinotion resort; and o proposed resource protection plon to ensure thot importont noturol feotures will be protected ond mointained. Foctors to be oddressed lnclude: c. Slope ond generol topogrophy; I. Vegetotion; h. Importont noturol feotures: 18.113.050(8)(4). Destgn guldelines ond development standards defining visual and oesthetic poro meters for:c. Preservotion of existlng topogrophy and vegetotion, snd; Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course - EXHIBIT A Page 18 of22 EXHIBIT 2 18.113.050(8)(5). An open spoce monqgement plan whlch includes:b. An inventory of the importont noturol feotures ldentlfied in the open spoce oreos ond ony other open spoce ond noturol volues present in the open spoce; c. A set of monogement prescriptlons thot will operote to maintoin ond consen e in perpetuity ony identified lmportont notural feotures ond other noturol or open spoce volues present in the open space; 18.113.070(E). ,mportqnt noturol feotures, including but not limited to significant wetlonds, riporlon hobitot, ond londscope monagement corridors will be mointoined. Riporlon vetetotion wlthln 100 feet of streoms, rivers and signilicont wetlonds wlll he mointolned. Alterotions to importqnt notural feotures, lncluding plocement of structures, is ollowed so long os the overoll volues oI the leoture ore molntolned. During the CMP the applicant provided numerous reports and documents relevant to the above criteria, including: Ex.42: the Natural Characteristics and Geology Report from Newton Consultants, Ex. 43: the Wildlife and Habitat report from Tetra Tech, Ex. 44: the Open Space Management Plan. The FMP WMP (Ex. 38) is also relevant as it reinforces details from the CMP. The applicant also provided extensive details how it would use a concerted effort to preserve and maintain the features and feel of the property, i.e.: use a light touch in its development activities. That efforts would be taken to preserve and encourage old growth juniper woodlands, and that rock outcrops would be preserved wherever possible. The CMP showed the topography of the site, that the buttes themselves provide the Thornburgh property 700 feet of elevation change, that the upper elements have homesites fed by single loaded roads to protect the views of all, and that the golf and lakes are located on the lower lands. ln the CMP siting golf on the lower reaches enhanced the site natural views adds as it would provide broad expanses of clearings. ln the CMP, the Board found that while there are resources worth preserving the site did not have any important natural features, that tree and rock outcrops did not qualifiT under the definition. Condition 34 was added to protect open space areas that had been disturbed. The Board found that Applicant had met all the criterion of the CMP related to this, which is broader than the criterion of 18.124.060A and B. Any further attack in this proceeding is a collateral attack on the CMP. See Ex. 30 and 30- A, Board CMP Dec. The Board finds Applicant reducing impacts to the greatest extent possible. While there may not be important natural features, the Applicant has described the extensive efforts to protect and preserve trees, rock outcrops and topography. Condition 34 deals with areas outside of the Golf course or lakes that are disturbed and the WMP prescribes actions to be taken and the timing when those will be completed to restore disturbed areas. The Applicant is meeting the criterion. 14. Lighting. CMP Condition #31. Board of County Commissioners Decision, Document No. 2020-579 File No. 247:19-000881-SP Thornburgh Golf Course - EXHIBIT A Page 19 of 22 EXHIBIT 2 The Board finds the issues were raised and resolved in the CMP and are collateral attacks on the CMP. Also claim "b" below is not relevant to this site plan application. As it is conceivable these findings will be challenged on appeal, the Board has also addressed and resolved the arguments raised on their merits below. Opponent claims include: a. All exterior lighting shall be shielded so that direct light does not project off site, b. The present lighting code does not meet the Dark Sky guideline. lssue raised by N. Goud, COLW. The Applicant responded: It is not proposing lighting here, so the claims are irrelevant. Also, Gould raised the issue in the CMP that resulted in the Board adding condition (#31) requiring Applicant comply with Deschutes County code on lighting. See Ex. 30, CMP Board Dec. pgs. 30, 32. This condition was carried forward as a condition of the FMP assuring compliance with County lighting codes. Further attacks are a collateral attack on the prior approvals, including Gould's arguments that the Code is not sufficient. The Board finds this application does not propose any lighting, nor any change to Condition #31, which requires adherence to the County Code. The Applicant is in compliance with Condition 31. 15. Population of Bend exceeds 100,000: The Board finds this issue was resolved at the time of the CMP, and that it is a collateral attack on the CMP. Further it is not a relevant site plan criterion. As it is conceivable these flndings will be challenged on appeal, the Board has also addressed and resolved the arguments raised on their merits below. Opponents claim resorts are not allowed to be sited within 24 miles of cities over 100,000. lssue raised by P. Lipscomb, K. Cody. The Applicant responded: The issue was resolved when Thornburgh applied for its CMP approval on February 18, 2005, or what the CMP was approved by the County on December 9, 2009. At no time during the CMP was the issue raised. The population was far less than 100,000 then as it was when the resorts FMP was approved. The argument is a collateral attack on the CMP, which is discussed in more detail in Exhibit 8, Liz Fancher letter submitted at the hearing. lt is not a relevant approval criterion. Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course - EXHIBIT A Page2O of 22 EXHIBIT 2 The Board notes that as of the date of this decision the official population of Bend is less than i 00,000 although it is expected that it may exceed this number when the current census is completed. The intent was to be determined at the time of siting of a resort, which could have occurred when it was mapped for use as a destination resort, not 15 years after it was applied for, or more than a decade after the CMP was approved. 15. Tax Lot 7700 is not a legal lot of record. lssue raised by Central Oregon Land Watch The Board finds this issue was resolved at the time of the CMP, and further with the legal lot of record approval (File 247-14-00045-LR) that COLW participated in, which was found against them. The claim is a collateral attack on the CMP and the legal lot of record approval. Further it is not a relevant site plan criterion. As it is conceivable these findings will be challenged on appeal, the Board has also addressed and resolved the arguments raised on their merits below. The Appl icant responded: This is false, as TL77O0 is actually comprised of 6 legal lots of record. This is discussed in greater detail in letter from Liz Fancher. Furthermore, the issue was resolved in the CMP and the FMP which ruled all the Thornburgh property were legal lots of record. As such this is an impermissible collateral attack on those approvals. lt is also a collateral attack on the lot of record decision which recognized TL77OO as 6 legal lots of record, that Land Watch participated in. See Ex.15, Liz Fancher letter. The Board finds Tax Lot 7700 is a legal lot of record, as described in File 247-14-OOO45-LR. 17. Well lndemnification fgreement CMP Condition 11. The Board finds this issue was resolved in the CMP with the imposition of Condition 11 and is barred from further claim as a collateral attack on the CMP. Also, it is not a relevant approval criterion for the site plan. As this finding could be appealed the merits are discussed below. Opponents' issues include: a. how does the well agreements work, and; b. how was the two-mile radius determined? Questions raised byJim Guild, and N. Engebretson. The Applicant responded: The issues pertaining to the well indemnification agreements were resolved in the CMP and are barred from being raised in this proceeding. Further this issue is not a criterion for approval of this site plan. The well agreement on file with the County was approved during the review of the CMP. Eco: Logic suggested the same distance in Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course - EXHIBIT A Page 21 of 22 EXHIBIT 2 the well monitoring agreement, which was approved by the Board. See Ex. 30 Board CMP Dec., Pg.27. Nothing is required of the Applicant at this point. The Board finds that the Well lndemnification Agreement speaks for itself. The Applicant is not proposing any change to the agreement, which requires nothing of the Applicant now. Applicant is in compliance with Condition 11. Board of County Commissioners Decision, Document No. 2020-579 File No. 247-19-000881-SP Thornburgh Golf Course - EXHIBITA Page22 of 22 EXHIBIT 2 For Recording Stamp Only DECISION OF THE DESCHUTES COUNTY BOARD OF COMMISSIONERS FILE NUMBER: CU -05-20 HEARING DATE: December 20, 2005 APPLICANT: Thornburgh Resort Company, LLC Kameron DeLashmutt c/o Schwabe, Williamson & Wyatt, P.C. 354 SW Upper Terrace Dr., Suite 101 Bend, OR 97702 541) 318-9950 OWNER'S Schwabe, Williamson & Wyatt, P.C. REPRESENTATIVE: Peter Livingston, Attorney at Law 1211 SW Fifth Ave., Suite 1600 Portland, OR 97204 503) 796-2892 Myles Conway, Attorney at Law 354 SW Upper Terrace Dr., Suite 101 Bend, OR 97702 541) 749-4019 Martha Pagel, Attorney at Law 1011 Liberty St., SE Salem, OR 97302 503) 796-2872 STAFF REVIEWER: Devin Hearing I. APPLICABLE STANDARDS AND CRITERIA: Title 18 of the Deschutes County Code, Zoning Ordinance: Chapter 18.16. EXCLUSIVE FARM USE Tumalo/Redmond/ Bed Subzone (EFU- TRB): Page 1 of 99 — BOCC THORNBURGH FINDINGS AND DECISION — CASE NO. CU -05-20, DC NO. 2006-1D C s 2 0 0as 151 EXHIBIT 3 A. Chapter 18.113. DESTINATION RESORTS ZONE - DR 1. 18.113.010. Purpose. 2. 18.113.020. Applicability. 3. 18.113.025. Application to existing resorts. 4. 18.113.030. Uses in destination resorts. 5. 18.113.040. Application submission. 6. 18.113.050. Requirements for conditional use permit and conceptual master plan applications. 7. 18.113.060. Standards for destination resorts. 8. 18.113.070. Approval criteria. 9. 18.113.075. Imposition of conditions. 10. 18.113.080. Procedure for modification of a conceptual master plan. 18.113.090. Requirements for final master plan. 11. 18.113.100. Procedure for approval of final master plan. 12. 18.113.110. Provision of streets, utilities, developed recreational facilities and visitor -oriented accommodations. B. Chapter 18.128. CONDITIONAL USE 1. 18.128.015. General standards governing conditional uses. 18.128.020. Conditions. 2. 18.128.030. Performance bond. C. Title 22, the Deschutes County Land Use Procedures Ordinance. D. Title 23, The Deschutes County Comprehensive Plan. E. Statewide Planning Goals (OAR 660-015-0000) II. BASIC FINDINGS: A. LOCATION: The subject property includes roughly 1,970 acres of land located west of Redmond, Oregon, on the south and west portions of a geologic feature known as Cline Buttes. The property is bordered on three sides by BLM land, and is also in close proximity to Eagle Crest, another destination resort development. The subject property is identified on County Assessor's Index map as 15-12 (index) as tax lots 5000, 5001, 5002, 7700, 7701, 7800, 7801, 7900 and 8000. B. ZONING: The subject property is zoned Exclusive Farm Use - Tumalo/Redmond/Bend Subzone (EFU-TRB). The subject property is also mapped as part of the Destination Resort (DR) overlay zone for Deschutes County. Page 1 of 99 — BOCC THORNBURGH FINDINGS AND DECISION — CASE NO. CU -05-20, DC NO. 2006451 EXHIBIT 3 IV. CHAPTER 18.128. CONDITIONAL USE: 18.128.015. General standards governing conditional uses. A. Except for those conditional uses permitting individual single-family dwellings, conditional uses shall comply with the following standards in addition to the standards of the zone in which the conditional use is located and any other applicable standards of the chapter: 1. The site under consideration shall be determined to be suitable for the proposed use based on the following factors: a. Site, design and operating characteristics of the use; b. Adequacy of transportation access to the site; and c. The natural and physical features of the site, including, but not limited to, general topography, natural hazards and natural resource values. For the reasons stated in its discussion of the destination resort criteria, the Board concludes that this criterion is met. B. The proposed use shall be compatible with existing and projected uses on surrounding properties based on the factors listed in DCC 18.128.015(A). The Board concludes that Applicant adequately demonstrated that it is feasible for the destination resort to be compatible with existing and projected uses on surrounding properties, provided Applicant complies with conditions of approval imposed to assure such compatibility. This criterion is met. C. These standards and any other standards of DCC 18.128 may be met by the imposition of conditions calculated to insure that the standard will be met. 18.128.020. Conditions. In addition to the standards and conditions set forth in a specific zone or in DCC 18.124, the Planning Director or the Hearings Body may impose the following conditions upon a finding that additional restrictions are warranted. A. Require a limitation on manner in which the use is conducted, including restriction of hours of operation and restraints to minimize environmental effects such as noise, vibrations, air pollution, glare or odor. B. Require a special yard or other open space or a change in lot area or lot dimension. C. Require a limitation on the height, size or location of a structure. Page 87 of99 — BOCC THORNBURGH FINDINGS AND DECISION — CASE NO. CU -05-20, DC NO. 2006-151 EXHIBIT 3 D. Specify the size, number, location and nature of vehicle access points. E. Increase the required street dedication, roadway width or require additional improvements within the street right-of-way. F. Designate the size, location, screening, drainage, surfacing or other improvement of a parking or loading area. G. Limit or specify the number, size, location, height and lighting of signs. H. Limit the location and intensity of outdoor lighting and require shielding. I. Specify requirements for diking, screening, landscaping or other methods to protect adjacent or nearby property and specify standards for installation and maintenance. J. Specify the size, height and location of any materials to be used for fencing. K. Require protection and preservation of existing trees, vegetation, water resources, wildlife habitat or other significant natural resources. L. Require that a site plan be prepared in conformance with DCC 18.124. 18.128.030. Performance bond. The Planning Director or Hearings Body may require Applicant to furnish the County with a performance bond or other adequate form of assurance to guarantee development in accordance with the standards and conditions attached in granting a conditional use permit. DCC 18.128.030 authorizes the imposition of a bond, ifneeded, to guarantee development in accordance with any conditional use standards or conditions. It does not impose new standards of approval. V. DESCHUTES COUNTY COMPREHENSIVE PLAN DCC 23.84.030 states the County's goal: To provide for development of destination resorts in the County consistent with Statewide Planning Goal 8 in a manner that will be compatible with farm and forest uses, existing rural development, and in a manner that will maintain important natural features, such as habitat ofthreatened or endangered species, streams, rivers and significant wetlands." The County mapped several areas, including the subject property, as eligible under Goal 8 for destination resort development. That map has been acknowledged by the Department of Land Conservation and Development. This application is consistent with the County comprehensive plan. See BOP, Land Use Map, Ex. 1, A-2 (DR Overlay). Page 88 of 99 — BOCC THORNBURGH FINDINGS AND DECISION — CASE NO. CU -05- 20, DC NO. 2006-151 EXHIBIT 3 EXHIBIT 4 EXHIBIT 4 EXHIBIT 4 EXHIBIT 4 EXHIBIT 4 Exhibit 5 Exhibit 5 Exhibit 5 7801 7900 7800 1 SHEET DATE: 9/13/21SCALE: 1" = 600' CENTRAL LAND AND CATTLE COMPANY LLC EXISTING TAX LOTS DRAWN BY: MPD LOCATED IN THE NORTH HALF OF THE SOUTHEAST QUARTER (N1/2 SE1/4) OF SECTION 29, TOWNSHIP 15 SOUTH, RANGE 12 EAST, W.M., DESCHUTES COUNTY, OREGON NORTH EXHIBIT B-1 Exhibit 6 7801 7800 2 SHEET DATE: 9/13/21SCALE: 1" = 600' CENTRAL LAND AND CATTLE COMPANY LLC LOT LINE ADJUSTMENT 1 DRAWN BY: MPD LOCATED IN THE NORTH HALF OF THE SOUTHEAST QUARTER (N1/2 SE1/4) OF SECTION 29, TOWNSHIP 15 SOUTH, RANGE 12 EAST, W.M., DESCHUTES COUNTY, OREGON NORTH EXHIBIT B-1 AREA BEFORE ADJUSTMENT = 436.5± Ac AREA AFTER ADJUSTMENT = 474.76± Ac ADJUSTED TAX LOT 7900 AREA BEFORE ADJUSTMENT = 38.76± AcAREA AFTER ADJUSTMENT = 0.50 Ac Exhibit 6 247-17-000775-ZC, 247-17-000776-PA, 247-18 000241-A, 247-18-000247-A EXHIBIT “G” TO ORDINANCE 2019-002 Page 1 DECISION OF THE BOARD OF COUNTY COMMISSIONERS FOR DESCHUTES COUNTY FILE NUMBERS: 247-17-000775-ZC, 247-17-000776-PA (247-18-000241-A, 247-18- 000247-A) APPLICANT/ Tumalo Irrigation District (“TID”) OWNER: c/o Bryant, Lovlien & Jarvis, P.C. 591 SW Mill View Way Bend, Oregon 97702 APPLICANT’S Garrett Chrostek ATTORNEY: Bryant, Lovlien & Jarvis, P.C. 591 SW Mill View Way Bend, Oregon 97702 APPELLANTS: Tumalo Irrigation District c/o Bryant, Lovlien & Jarvis, P.C. 591 SW Mill View Way Bend, Oregon 97702 Central Oregon LandWatch (“LandWatch”) 50 SW Bond Street, Suite 4 Bend, Oregon 97702 PROPOSAL: The applicant requests a Comprehensive Plan Amendment to change the designation of the subject property from Surface Mine to Rural Residential Exception Area, and a Zone Change from Surface Mining to Multiple Use Agricultural. The request includes removing Surface Mining Site No. 357 from the County’s Surface Mining Mineral and Aggregate Inventory, adding Site No. 357 to the Non-Significant Mining and Aggregate Inventory, and removing the associated Surface Mining Impact Area Combining Zone. STAFF REVIEWER: Cynthia Smidt, Associate Planner HEARINGS OFFICER: Dan R. Olsen HEARINGS OFFICER DECISION ISSUED: February 22, 2018, Mailed February 23, 2018 EXHIBIT 7 247-17-000775-ZC, 247-17-000776-PA, 247-18 000241-A, 247-18-000247-A EXHIBIT “G” TO ORDINANCE 2019-002 Page 5 made to address drainage issues. The property owner/applicant contributed financially to these efforts. There is no evidence in the record suggesting that repairs were insufficient or otherwise not to County standards.2 Staff indicated that (a) there are no known safety issues associated with Bill Martin Road, (b) Bill Martin Road experiences extremely low traffic volumes as it serves only a few properties, and (c) Bill Martin Road has sufficient capacity to handle the theoretical worst- case scenario under the Multiple Use Agricultural (“MUA-10”) Zone. Even though no specific development is proposed, the record indicates that transportation facilities are presently provided. Accordingly, neither staff nor TID’s transportation engineer identified any impacts in need of mitigation nor any undue impact on other users of Bill Martin Road. The opponents did not supply any counter evidence from professionals in transportation planning or road design. To the extent the opponents presented conflicting evidence that constitutes substantial evidence, not mere speculation, the Board finds that testimony of staff and TID’s transportation engineer is more persuasive. The Board further notes that Bill Martin Road is not the only road serving the subject property. The property also fronts both Mock Road and Tumalo Reservoir Road. There are no identified issues with the ability of these roads to serve the subject property. The subject property is presently served with facilities sufficient to serve reasonably anticipated development and there are no apparent obstacles to providing additional facilities should they be warranted to serve specific development. Consequently, there are no undue impacts on adjacent properties/other road users or disharmony with any Comprehensive Plan policies. This criterion is satisfied. Title 22, Deschutes County Development Procedures Ordinance Chapter 22.20 Review of Land Use Action Applications 1. Section 22.20.015 Code Enforcement and Land Use A. Except as described in (D) below, if any property is in violation of applicable land use regulations and/or conditions of approval of any previous land use decisions or building permits previously issued by the County, the County shall not: 1. Approve any application for land use development; 2 Opponents only point to issues prior to the repairs. While there is suggestion the underlying issues still exist, there is no evidence to contradict County staff testimony that the repairs were sufficient. EXHIBIT 7 247-17-000775-ZC, 247-17-000776-PA, 247-18 000241-A, 247-18-000247-A EXHIBIT “G” TO ORDINANCE 2019-002 Page 6 2. Make any other land use decision, including land divisions and/or property line adjustments; 3. Issue a building permit. B. As part of the application process, the applicant shall certify: 1. That to the best of the applicant’s knowledge, the property in question, including any prior development phases of the property, is currently in compliance with both the Deschutes County Code and any prior land use approvals for the development of the property; or 2. That the application is for the purposes of brining the property into compliance with the Deschutes County land use regulations and/or prior land use approvals. C. A violation means the property has been determined to not be in compliance either through a prior decision by the County or other tribunal, or through the review process of the current application, or through an acknowledgement by the alleged violator in a signed voluntary compliance agreement (“VCA”). D. A permit or other approval, including building permit applications, may be authorized if: 1. It results in the property coming into full compliance with all applicable provisions of the federal, state, or local laws, and Deschutes County Code, including sequencing of permits or other approvals as part of a voluntary compliance agreement; 2. It is necessary to protect the public health or safety; 3. It is for work related to and within a valid easement over, on, or under the affected property; or 4. It is for emergency repairs to make a structure habitable or a road or bridge to bear traffic. E. Public Health and Safety. 1. For the purposes of this section, public health and safety means the actions authorized by the permit would cause abatement of conditions found to exist on the property that endanger life, health, personal property, or safety of the residents of the property or the public. 2. Examples of that situation include, but are not limited to issuance of permits to replace faulty electrical wiring, repair or install furnace equipment; roof repairs; replace or repair compromised utility infrastructure for water, sewer, fuel or power; and actions necessary to stop earth slope failure. FINDING: The Board adopts the findings of the Hearings Officer with respect to this finding, but provides supplemental interpretation and findings as follows. EXHIBIT 7 247-17-000775-ZC, 247-17-000776-PA, 247-18 000241-A, 247-18-000247-A EXHIBIT “G” TO ORDINANCE 2019-002 Page 7 Implementation of the provision: As DCC 22.20.015 is a relatively new provision first adopted in 2015 and frequently arises in contested land use hearings, the Board takes this opportunity to provide interpretation and guidance on the implementation of this provision. As discussed more fully below, the Board interprets DCC 22.20.015 to require a sequential three-step analysis. 1. Is there a previously “adjudicated violation” on the property? 2. Does the subject land use application present the best forum for adjudicating a new allegation, i.e. is there time to investigate something more than a vague allegation? 3. When there is an “adjudicated violation” or the property is found to be in violation as part of the land use application process, can the land use permit nevertheless be issued pursuant to DCC 22.20.015(D) and (E)? First, the Board starts by noting that the primary purpose (and benefit) of DCC 22.20.015 is to address “adjudicated violations,” i.e. violations that were already conclusively determined through the normal applicable code enforcement process prior to an applicant submitting a land use application. This interpretation is supported by the use of the past tense in the codified definition of “violation” in DCC 22.20.015(C): “[a] violation means the property has been determined to not be in compliance either through a prior decision by the County or other tribunal, … or through an acknowledgment by the alleged violator in a signed voluntary compliance agreement (‘VCA’)” (emphasis added). Second, differing from the “adjudicated violations” scenario described above, there are cases where the Board anticipates that a County hearings body will need to determine if a property is in violation during the land use application process. DCC 22.20.015(C) addresses this possibility by including in the definition of “violation” the phrase “or through the review process of the current application.” However, the Board cautions that County hearings bodies should take up this inquiry in rare cases because of the obvious practical difficulties born from comingling the County’s land use application process with the separate and distinct code enforcement process. For example, when a vague allegation is alleged by an opponent late in the land use application process, there rarely will be time to comprehensively investigate and appropriately adjudicate that violation due to the 150-day time limit for issuing final decisions per ORS 215.427. Nothing within DCC 22.20.015 requires a County hearings body to process a code complaint pursuant to the County’s adopted Code Enforcement Policy and Procedures Manual and conclusively determine the status of a previously un-adjudicated violation solely on the basis that an opponent submits a vague and unsubstantiated allegation during the land use application process. EXHIBIT 7 247-17-000775-ZC, 247-17-000776-PA, 247-18 000241-A, 247-18-000247-A EXHIBIT “G” TO ORDINANCE 2019-002 Page 8 As such, the Board interprets DCC 22.20.015 to require something more than a vague allegation (i.e., clear evidence of a violation) to compel the County hearings body to determine if a property is in violation and the pending land use application process is the appropriate forum in which to determine whether a violation exists. As discussed below, this case does not provide a sufficient basis for determining what more is needed and the Board thereby will wait for a subsequent case to establish a bright-line rule. Further, prior to electing to adjudicate an allegation as part of the land use application process, the Board interprets DCC 22.20.015 as necessitating the County hearings body to likewise consider procedural, equitable, and legal issues, including but not limited to the time it will take to conduct an investigation pursuant to the Code Enforcement Policy and Procedures Manual, the severity of the alleged violation (i.e., clear cutting vegetation in a wetland is severe while minimal solid waste that is not creating a public health hazard is not), and the 150-day land use decision making clock. Third, the Board takes this opportunity to reiterate what is self-evident in DCC 22.20.015. A County hearings body’s inquiry is not completed by simply noting a past “adjudicated violation” or finding that a property is in violation. DCC 22.20.015(D) and (E) compel a subsequent analysis to determine, for example, if the permit “protect[s] the public health and safety” or “results in the property coming into full compliance.” Further, the final phrase of DCC 22.20.015(D)(1) notes that “coming into fully compliance” also “include[s] sequencing of permits or other approvals as part of a voluntary compliance agreement.” The Board thereby interprets that aforementioned language to specifically allow a County hearings body to approve a land use permit conditioned on the applicant subsequently executing and complying with a voluntary compliance agreement even for an unrelated violation on the same property. Scope of the provision: A related issue is the appropriate scope of DCC 22.20.015. Subsection (A) provides that “violation[s] of applicable land use regulations and/or the conditions of approval of any previous land use decisions or building permits previously issued by the county” preclude further approvals for “land use development”, “land use decisions” or building permits (emphasis added). Opponents to land use applications have asserted all manner of alleged violations in contested land use decisions. For example, opponents have alleged that violations under various state and federal statutes and regulations concerning public health or regulated industries implicate DCC 22.20.015. “Land use regulations” is not defined in the Deschutes County Code, but is defined under ORS 197.015(11) as follows: EXHIBIT 7 247-17-000775-ZC, 247-17-000776-PA, 247-18 000241-A, 247-18-000247-A EXHIBIT “G” TO ORDINANCE 2019-002 Page 9 “Land use regulation” means any local government zoning ordinance, land division ordinance adopted under ORS 92.044 or 92.046 or similar general ordinance establishing standards for implementing a comprehensive plan. The Board adopts the statutory definition of “land use regulation.” This definition is appropriate because the County only has jurisdiction, competency, and resources to evaluate its local enactments governing land use. If the County desires to enforce a provision of state or federal law under DCC 22.20.015, then it is incumbent on the County to incorporate such provision of law into its land use regulations, or into a prior land use permit condition of approval applicable to a specific development. The Board notes that there is a reference to state and federal laws in DCC 22.20.015(D)(1). However, that reference to state and federal laws is for a different purpose and does not alter the aforementioned interpretation of DCC 22.20.015(A) incorporating the statutory definition of “land use regulation.” The reference in DCC 22.20.015(D) ensures that the County may authorize land use or building permits even when violations exist on a property to address issues that may arise now or in the future from state or federal laws such as the Americans with Disabilities Act, Endangered Species Act, etc. The same reference to state and federal laws is purposely omitted from DCC 22.20.015(A) because the County does not intend to be the adjudicator of alleged violations of state and federal law through our local land use application process. Application of the provision in this case: With the foregoing as background, the Board finds that none of the claims made by opponents as to violations of various state laws regarding roads and drainage are subject to review in the present proceedings. With regard to the three-step analysis set forth above, nothing in the record suggests that there are “adjudicated violations” on the property (step 1). Nor have the opponents raised anything other than “vague allegations” (step 2). In addition to the alleged violations concerning the Bill Martin Road lawsuit discussed above, a code complaint was filed on April 24, 2018 alleging various additional violations. In this particular case, however, it appears that there was sufficient time to investigate those additional allegations. The complaint itself does not appear in the record but is alluded to by opponents of the application. To the extent the complaint is properly before the Board, after conducting an investigation, County staff informed the Board that the case was closed on August 8, 2018. With regard to Bill Martin Road, the record shows that repairs were made such that drainage issues have been resolved. As stated above, there is no evidence in the record disputing testimony from County staff that the repairs were sufficient and in accordance with County standards. When the County accepted dedication of Bill Martin Road for public use, it determined that the road had been constructed to County standards. County Code Section 17.52.100 only requires Local Access Roads such as Bill Martin Road EXHIBIT 7 247-17-000775-ZC, 247-17-000776-PA, 247-18 000241-A, 247-18-000247-A EXHIBIT “G” TO ORDINANCE 2019-002 Page 10 to be constructed to County Standards and specifies that the County is not responsible for maintenance. It does not assign maintenance responsibility to any particular party and does not specify any type of violation for alleged maintenance failures. Even if it did, the record shows that repairs were made to Bill Martin Road. The record does not show that Bill Martin Road is presently known to not comply with any County standards. The Hearings Officer correctly determined that DCC 17.16.105 is only applicable to a proposal for a subdivision. This provision was found not applicable in prior land use decisions that have long become final. The Board rejects the theories on subdivision versus partition raised by the opponents on the merits and further notes that raising this issue now constitutes a collateral attack on those prior land use decisions. Thereby, the Board finds that both the additional allegations levied in April as well as the Bill Martin Road allegations are unsubstantiated “vague allegations” that require no further review or action from this Board. The Board thereby ends its inquiry pursuant to DCC 22.20.015 at step 2 as described above. Deschutes County Comprehensive Plan 2. Section 3.3 Rural Housing LandWatch argues that lands can only be designated as Rural Residential Exception Areas if an exception is taken. The Board has addressed this issue before, but desires to provide further clarification. LandWatch’s argument is essentially two-fold. First, LandWatch cites the following language from Section 3.3: As of 2010 any new Rural Residential Exception Areas need to be justified through initiating a nonresource plan amendment and zone change by demonstrating the property does not meet the definition of agricultural or forest land, or taking exceptions to farm, forest, public facilities and services and urbanization regulations, and follow guidelines set out in the OAR. According to LandWatch, the applicant must either submit evidence contradicting the Natural Resource and Conservation Service (NRCS) data that indicates the subject property constitutes “agricultural land,” or take an exception. The applicant in this case is pursuing the first option identified in the quoted language of initiating a non-resource plan amendment and zone change. As explained in detail below, the County already reviewed whether the property meets the definition of agricultural or forest lands. The subject property was excluded from agricultural land inventories performed by the County, which were incorporated into the Comprehensive Plan and EXHIBIT 7