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1996-40496-Ordinance No. 96-070 Recorded 10/17/1996_ REVIE,WEED 9C-10496 A,0 `BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUIMT N _. An Ordinance Amending the Text of the Sunriver * 960"T 17 AN 9:49 Master Plan in Order to More Clearly Define the * Uses Permitted in an Area Identified as RM -12 fef 1 r , Within the Sunriver Planned Community, and Declaring an Emergency. ORDINANCE NO. 96-070 WHEREAS, the Planned Community Zone was created by Ordinance No. 82-043 and applies to the area generally known as the Sunriver Planned Community; and, WHEREAS, the Sunriver Master Plan, adopted by Ordinance No. 82-043, further restricts land uses within the boundaries of the Sunriver Planned Community; and, WHEREAS, the text of the Sunriver Master Plan specific to the uses permitted in the area identified as RM -12 is not clear; and, WHEREAS, the amendment set forth herein is intended to more clearly define the uses permitted in the area identified as RM -12 in the Sunriver Master Plan; and, WHEREAS, Section 18.108.060 of the County Code, Planned Community Zone, Amendment of a Development Plan, sets forth the procedure for amending an approved development plan within a PC Zone and states that the criteria shall be the same as for a change of zone; and, WHEREAS, the proposed amendment is a quasi-judicial zone change as it affects a single property owner and involves the application of existing policy to a factual setting; and, WHEREAS, Section 22.20.010(C) of the County Code, Action on Land Use Applications, states that zone change applications shall be referred to a hearing before the Hearings Body and the Hearings Body for a quasi-judicial zone change is the County Hearings Officer; and, WHEREAS, the Board of County Commissioners has considered the Hearings Officer's approval of the proposed amendment in accordance with applicable law; now, therefore THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ORDAINS as follows: Section 1. Amendment. The text of the Sunriver Master Plan is amended as set forth in Exhibit A attached hereto and incorporated herein, with new language set out in red -line and language to be deleted in strike -out. Section 2. Findings. The Deschutes County Hearings Officer after review in a public hearing on July 23, 1996, has issued a written findings and decision as set forth in Exhibit B which supports the approval of the Text Amendment to the Sunriver Master Plan. IL,'CR0F; ;,QED PAGE 1 - ORDINANCE NO. 96-070 (October 16, 1996) NOV 2 V IH6 '4 Section 3. Severability. The provisions of this ordinan(QJ6§-eve f any section, sentence, clause or phrase of this ordinance is adjudged to be invalid by a court'of compent jurisdiction, that decision shall not affect the validity of the remaining portions of this ordinance. Section 4. Codification. County Legal Counsel shall have the authority to format the provisions contained herein in a manner that will integrate them into the County Code consistent with the Deschutes County Form and Style Manual for Board Documents. Such codification shall include the authority to make such changes, to make changes in numbering systems and to make such numbering changes consistent with interrelated code sections. In addition, as part of codification of these ordinances, County Legal Counsel may insert appropriate legislative history reference. Any legislative history references included herein are not adopted as part of the substance of this ordinance, but are included for administrative convenience and as a reference. They may be changed to correct errors and to conform to proper style without action of the Board of County Commissioners. Section 5. Repeal of Ordinances as Affecting Existing Liabilities. The repeal, express or implied, of any ordinance, ordinance provision, code section, or any map or any line on a map incorporated therein by reference, by this amending ordinance shall not release or extinguish any duty, condition, penalty, forfeiture, or liability previously incurred or that may hereafter be incurred under such ordinance, unless a provision of this amending ordinance shall so expressly provide, and such ordinance repealed shall be treated as still remaining in force for the purpose of sustaining any proper action or prosecution for the enforcement of such duty, condition, penalty, forfeiture, or liability, and for the purpose of authorizing the prosecution, conviction and punishment of the person or persons who previously violated the repealed ordinance. Section 6. Emergency. This ordinance being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this ordinance takes effect on its passage. DATED this 16th day of October, 1996. ATTEST: Recording Secretary BOARD OF COUNTY COMMISSIONERS Off' DESCHUTZ� COUNW, OREGON , Chair U ARR H. SLAUGHTER, Commissioner RO ERT L. NIPPER, MmInissioner PAGE 2 - ORDINANCE NO. 96-070 (October 16, 1996) EXHIBIT A 0155-2906 ORDINANCE 96-070 PAGE 3 - ORDINANCE NO. 96-070 (October 16, 1996) �xHJ.B/T �v y 0155-29Oi BEFORE THE DESCHUTES COUNTY HEARINGS OFFICER 10g 10111? �� FILE NUMBER: TA -96-7 APPLICANT/ ry SEP6 PROPERTY OWNER: Aspen Powder L.L.C. j MAXW 869 N.W. Wall Street, Suite 9204 DESCHUM Bend, OR 97701 g,� COUNTY ATTORNEY: Liz Fancher�gZvto The Law Offices of James T. Massey P.O. Box 1689 Sisters, Or 97759 REQUEST: The applicant seeks a text amendment to the Sunriver Master Plan to allow the development of condominiums units in the RM -12 District not limited to rental by Sunriver employees. STAFF REVIEWER: James J. Lewis, Assistant Planner HEARING DATE: July 23, 1996 RECORD CLOSED: August 6, 1996 L APPLICABLE CRITERIA: A. Title 18 of the Deschutes County Code, the Deschutes County Zoning Ordinance • Chapter 18.108, Planned Community - PC Zone • Chapter 18.1369 Amendments *Section 18.136.030, Rezoning Standards C. The Deschutes County Year 2000 Comprehensive Plan D. The Sunriver Master Plan E. Title 22 of the Deschutes County Code, the Deschutes County Development Procedures Ordinance 1. FINDINGS OF FACT: A. LOCATION: The subject property is located at 56856 Enterprise Drive, Sunriver, and is further identified as Tax Lot 490000 on Deschutes County Tax Assessors Map 420-11-05D. (The previous Tax Lot number was 1900.) TA -96-7 Page 1 0155-2908 B. ZONING: The subject property -is within the Multiple Family Residential District of the Sunriver Planned Community Zone (PC -RM), and is designated Planned Community on the Deschutes County Comprehensive Plan. The property is further identified in the Sunriver Master Plan as the "RM(12)" area. C. SITE DESCRIPTION: The subject property consists of approximately four acres and is relatively level. It is partially developed with 56 condominium units, parking areas, landscaped areas and other amenities. The undeveloped southern portion of the subject property contains mainly native vegetation. The property is bounded by Enterprise Drive on the north, vacant forest land on the south and industrially - designated properties on the east and west. The subject property is located within the Sunriver Business Park. D. SURROUNDING LAND USE: Within the Sunriver Business Park are RM - designated lands, a parcel to the north designated Community Property (CP) and developed with a school, and a number of parcels designated Industrial (1). The Business Park has few typically industrial uses. The majority of the park has developed in a more commercial manner. Businesses include restaurants, real estate offices, convenience stores, a gas station and a recreational equipment store. To the north and west of the Business Park is the Sunriver Resort developed with a mixture of single-family and multi -family residential uses, commercial uses and resort amenities (e.g., golf course, tennis courts, bike trails). Sunriver Resort is zoned Planned Community (PC). Specific areas (districts) within the PC are designated for various types of uses. The Crosswater residential/golf community lies to the west and south of the subject property across the Deschutes River. Beyond the residential and resort developments are larger parcels which are zoned for forest uses. Much of the outlying area is within the Deschutes National Forest. The primary roads providing access to the surrounding area are Highway 97, Spring River Road and South Century Drive. E. PROPOSAL: The Sunriver Master Plan describes the subject property as follows: 'RM -(12): Contains 4 acres and is located along the south boundary if the business park. This area is to be for apartment houses and is to take the place of the Abbot House apartments which had been adjacent to the Country Mall. The density of this area shall not exceed that of the density allowed in the `RM' District of the `PC' zone. This area is designated for apartment dwellings for employees of Sunriver." The applicant is requesting two amendments to this paragraph to allow the development of condominiums which may be sold and/or rented to persons other than Sunriver employees. Specifically, the applicant seeks to remove the language that restricts the area to "apartment houses," and to substitute language providing that the area may include "multi -family dwellings, including condominiums developed as multi -family dwellings." In addition, the applicant seeks to remove the language that "designates" the RM(12) area for apartment dwellings for employees TA -96-7 Page 2 0155-2909 of Sunriver, and to substitute language stating this area "will assist in meeting the need" for apartment dwellings for employees of Sunriver.' F. PUBLICIPRIVATE AGENCY NOTICE: The Planning Division sent notice of the proposed text amendment to a number of public and private agencies and received responses from the Deschutes County Public Works Department and Property Address Coordinator and from the Sunriver Owners Association (SROA). These comments are set forth verbatim at pages 3-4 of the Staff Report and are incorporated by reference herein. G. PUBLIC NOTICE AND COMMENTS: The Planning Division mailed written notice of the proposed text amendment to the owners of property located within 250 feet of the subject property. Additionally, notice of this proposal was published in the newspaper (The Bulletin) on Sunday, June 23, 1996. H. PROCEDURAL HISTORY: The subject property has had several previous land use actions: 1. File #SP -89-35, an approval of a site plan to construct 56 apartment units and associated parking areas. These units are the 56 existing units on the subject property. 2. File #SP -91-38, an approval to construct 32 additional apartment units. This permit approval was extended and ultimately the permits expired. The units were never constructed. Completion of these units would have resulted in 88 units which is the maximum density that would be permitted on the subject property. 3. File #SP -93-1, a second approval to construct 32 additional units on the subject property. This permit also expired and the units were not constructed. 4. File #SP -95-16 and #FPA -95-34, an approval to convert the 56 apartment units to condominium ownership. 5. File #SP -95-52, an approval of a site plan to construct a pool, spa, laundry facility and associated amenities on the subject property. 1 Ordinance No. 82-043, which originally adopted the PC Zone and the Sunriver Master Plan, includes the following finding: "15. Amendment of a Development Plan:... The comprehensive plan designation for Sunriver is `planned community.' It would not be appropriate to require an amendment to a development plan for Sunriver to be a comprehensive plan change. Rather, it should be in the nature of a zone change. Therefore, the Board finds that the appropriate criteria for considering an amendment of development plan would be criteria for a zone change rather than criteria for a comprehensive plan change.' Consequently, the applicant has proposed a zone change/text amendment. TA -96-7 Page 3 0155-2910 L LEGAL LOT: The subject property is a legal Lot of Record created through a partition (File 4MP-83-2). III. CONCLUSIONS OF LAW: A. Preliminary Issues: Effect of Previous Condominium Conversion Approval. FINDINGS: The applicant questions whether the proposed zone change/text amendment to the Sunriver Master Plan is necessary in light of the county's previous approval in SP -95- 16 of a condominium conversion for the entire subject property, including the portion of the property on which the applicant proposes to construct 32 additional condominium units. The applicant argues this approval had the effect of authorizing the development of these additional condominium units. However, the applicant's Burden of Proof states the subject zone change/text amendment application was submitted because: "[wJhen the Applicant conferred with the Deschutes County Planning Division about its plans, the applicant was advised by the county that `the 1995 approval of the condominium conversion was in error and that it was the County's position that the Sunriver Master Plan would prevent the Applicant from building 32 additional condominium apartment units on the subject property. In response, staff argues the condominium conversion approval, although it covered the entire subject property, was limited to approving the conversion to condominium ownership of the 56 existing units, and that no additional development on the vacant portions of the property was approved. The decision approving the condominium conversion specifically states "[n]o additional construction or physical changes to the site are proposed as part of this application." 2 Condominium conversions are governed by ORS Chapter 100: as well as Chapter 17.32 of the county's subdivision ordinance. However, a condominium is a form of ownership -- not a land use. Probably for this reason the subdivision ordinance establishes no substantive standards for the county's approval of a proposed condominium conversion. Rather, it merely sets forth the circumstances under which the chapter is applicable and the procedures for submitting an application. The condominium conversion application in SP -95-16 included a condominium plat showing the entire subject property and a condominium declaration identifying the portions of the subject property ("Nonwithdrawable Variable Property Y and Z") as areas intended for future development of additional condominiums. It is on these areas that the applicant proposes to develop 32 new condominium units. However, the Hearings Officer concurs with staff that the county's approval of the condominium conversion with these "reserve" areas did not approve any proposed future development of them. Rather, it simply approved a change of ownership of the entire subject property, signifying that: 1) the existing 56 units were converted to condominium ownership; and 2) that any future development of the "reserve" portions would be subject to the condominium form of ownership.3 2 The county's file for SP -95-16 is included as a part of this record. 3 No appeal was filed from the county's decision approving the condominium conversion of the subject property in SP -95-16. Neither the Sunriver Owners Association or any other interested party challenged the conversion of the existing rental units to condominium ownership on the basis of the Sunriver Master Plan provisions at issue here. TA -96-7 Page 4 0155=2911 For the foregoing reasons, the Hearings Officer agrees with staff that there is nothing in the county's approval of the condominium conversion for the subject property that approved the applicant's proposed development of 32 additional condominium units on the "reserve" areas. 2. Timingof f Proposed Zone C;hangel ext An FINDINGS: Sunriver Resort Limited Partnership (hereafter "Sunriver Resort') objects to the applicant's proposal on the grounds that any amendment to the Sunriver Master Plan should be addressed when the entire master plan is reviewed and revised in accordance with the Unincorporated Communities Rule recently adopted by the Land Conservation and Development Commission (LCDC). In a letter dated July 23, 1996, from James E. Pavisha, Director of Development, and submitted into the record, Sunriver Resort asserts the county has agreed to require implementation of this new rule before "any project is proposed that is inconsistent with the current Sunriver Master Plan." (Emphasis added.) The Hearings Officer finds Sunriver Resort's objection is without merit. In the first place, whether the applicant's proposal is inconsistent with the Sunriver Master Plan has not been established and is the question before me in this matter. Second, the record indicates the Unincorporated Communities Rule does not require the county to submit a new plan for Sunriver until January 1, 1998. Finally, there is nothing in Title 18 or in Title 22, the procedures ordinance, which permits me to deny the applicant's request simply because the Sunriver Master Plan may be revised at a future date. 3. Nature of Sunriver Master Plan Language Concerning RK12) Provertv. The principal issue presented in this matter is whether the applicant's proposal to construct 32 additional condominium units that may be sold or rented to persons other than Sunriver employees is prohibited by the Sunriver Master Plan "RM(12)" designation of the property. Ordinance No. 82-043, by which the Deschutes County Board of Commissioners adopted the Sunriver Master Plan and the PC Zone, contains the following findings concerning the RM(12) property: "RM 12 : RM(12) is located adjacent to the Business park I and contains four acres. The Board finds that this area is suitable for apartment houses to take the place of the Abbott House Apartments which are adjacent to the Country Mall. This area would be appropriate for those persons who work in Sunriver and especially those persons that are employed as part of the resort operation. The Board finds that the density of development should not exceed that allowed in the RM District of the PC zone which is one unit per 2,000 square feet." (Emphasis added.) The emphasized language states the Board's finding that the RM(12) area is "suitable" and "appropriate" for apartments for persons who work in Sunriver, but does not find it necessary to restrict the use of this property for such apartments. In contrast, the Sunriver Master Plan language adopted simultaneously with the Board's findings provides: "RM -(12): Contains 4 acres and is located along the south boundary of the business park. This area is to be for apartment houses and is to take the place of the Abbot [sic] House apartments which had been adjacent to the Country Mall. The density TA -96-7 Page 5 0155-4912 of this area shall not exceed that of the density allowed in the `RM' District of the `PC' zone. This area is designated for apartment dwellings for employees of Sunriver." (Emphasis added.) The above -emphasized language apparently has been read by staff, the applicant and the SROA to actually restrict use of the RM(12) area for apartment dwellings for Sunriver employees. However, neither staff nor the applicant has presented any legislative history explaining the difference between the Board's findings concerning this area and the language adopted in the Sunriver Master Plan. In its objection to the applicant's proposal, the SROA submitted the following comments: "SROA knows that the zoning ordinance allows condominiums within the RM District. However, the purpose of the Master Plan is to further restrict the use of particular parcels and this is one of those parcels. Since there are no apartments anthin Sunriver, this site was so designated to provide housing needs for employees within the Sunriver area. It was never intended to allow housing other than apartments within the RM -12 parcel." (Emphasis added.) The Hearings Officer fins these comments indicate the intent of the master plan language concerning the RM(12) area was: 1) to provide for the housing needs of Sunriver employees; and 2) to restrict the type of housing to apartments. Therefore, I find the applicant's proposal to construct 32 additional condominium units on the subject property is entirely consistent with the Sunriver Master Plan language concerning the RM(12) area and its apparent intent. As discussed in detail in the findings below, the Hearings Officer finds there is nothing in the comprehensive plan, the Sunriver Master Plan or the zoning ordinance that prohibits apartments from being held in condominium ownership. In addition, I find the applicant has demonstrated its proposal will provide for the housing needs of persons employed in Sunriver by creating affordable housing that may be purchased or rented by persons with incomes in the range of those earned by Sunriver employees. For the foregoing reasons, and based upon the findings below, the Hearings Officer finds the applicant's proposed zone change/text amendment to the Sunriver Master Plan is not required for the applicant to construct 32 additional condominiums on the subject property. However, I find the proposed amendment will serve to clarify what was intended by the master plan language concerning the RM(12) area and to demonstrate its consistency with the comprehensive plan and the zoning ordinance. B. Title 18 of the Deschutes County Code, the Deschutes County Zoning Ordinance 1. Chapter 18.108, Planned Community - PC Zone a. Section 18.108.020, Districts Permitted in a PC Zone. In a PC Zone, the following districts shall be established subject to the terms of the Master Plan. B. Multiple Family Residential - RM District. a. Permitted Uses. The following uses and their accessory uses are permitted outright: 2. Multiple -family dwellings, apartment houses TA -96-7 Page 6 0155-2913 and dwelling groups including townhouses and condominiums. 2. Chapter 18.04, Title, Purpose and Definitions a. Section 18.04, Definitions. As used in this title, the following words and phrases shall mean: Apartment. See Dwelling, multiple -family. Condominium. A type of ownership defined by state statute as the land, if any, whether leasehold or in fee simple, and whether contiguous or not contiguous; and buildings, im- provements and structures on the property; and any ease- ments, rights and appurtenances belonging to the property which are submitted to the provisions of ORS 100.050 to 100.625. Dwelling, Multi -Family. A building or portion thereof designed for occupancy by three or more families living independently of each other. FINDINGS: As discussed above, the applicant has requested a zone changeltext amendment to revise the Sunriver Master Plan text governing development within the RM(12) area to remove the term "apartment houses" and to substitute the phrase "multi- family dwellings, including condominiums developed as multi -family dwellings." The applicant argues that under the above -quoted zoning ordinance definitions this amendment is actually unnecessary because the additional proposed condominiums meet the definition "apartment" underllnecessarily the definition of ementa ouses" in the Sunnier MasteryTherefore, he applicantargues, hee s structures are permitted use on the subject property. The Hearings Officer agrees. In Kaady v City of Cannon Beach, 28 Or LUBA 509 (1995), the petitioner challenged the city's determination that the Tolovana Inn condominiums are a "motel" exempt from the city's short-term rental regulations. LUBA upheld the city's determination that there was nothing in the city's zoning code preventing a structure held in condominium ownership from being a motel if it otherwise meets the definition of a motel. Similarly, the Hearings Officer finds there is nothing in Title 18 or in he Sunriver Master Plan that prohibits structures in condominium ownership from meeting the definition of a multi -family dwelling. Consequently, I find the applicant's proposal to substitute the phrase "multi -family dwellings, including condominiums developed as multi -family dwellings" for the term "apartment houses" will clarify what is already permitted in the RlA(12) area. However, I agree with the applicant that this change is unnecessary inasmuch as multi -family dwellings are a permitted use in the RM Distriv ind there is nothing in the text of the Sunnier Master Plan that indicates "apartment houses cannot be held in condominium ownership. The issue of whether the applicant's proposal to develop apartments in condominium ownership that may be sold or rented to persons other than Sunnier employees is consistent with the Sunriver Master Plan is discussed in the findings below. 3. Chapter 18.108, Planned Community - PC Zone a. Section 18.108.060, Amendment of a Development Plan. TA -96-7 Page 7 0155-2914 C. Standards for Approval. Any amended development plan shall be in conformance with this section, the existing sub- division ordinances of the county and the concept of the planned community for which change is being requested. FINDINGS: The Hearings Officer finds that review of the proposed zone change/text amendment has been based upon the applicable criteria set forth in this section and discussed in detail in the findings below. 4. Chapter 18.136, Amendments. a. Section 18.136.030, Rezoning Standards. The applicant for a quasi-judicial rezoning must establish that the public interest is best served by rezoning the property. Factors to be demonstrated by the applicant are: A. That the change conforms with the Comprehensive Plan and the change is consistent with the Plan's introductory statement and goals. FINDINGS: The applicant correctly notes that not all plan policies constitute approval criteria for a plan amendment or zone change. Even those plan policies written in terms of directives to local governments do not necessarily apply to quasi-judicial land use decisions such as the applicant's proposal unless the plan language indicates an intent to apply the policies to a particular type of land use decision. Friend of Indian Ford v. Deschutes Coun LUBA No. 95-247 (May 30, 1996). In fact, most plan policies are simply aspirational statements intended to be guidelines for development rather than criteria applicable to individual land use applications. Nevertheless, this zone change approval criterion requires the Hearings Officer to determine that the applicant's proposal is "consistent with" the plans' goals. Therefore, I make the following findings concerning the proposal's consistency with plan provisions that appear to be applicable to the proposed text amendment: GOALS AND POLICIES Rural Development Goals: 1. To preserve and enhance the open spaces, rural character, scenic values and natural resources of the County. FINDINGS: Although the Sunriver Planned Community is in many ways an urban development, nevertheless it is located outside the urban growth boundary of any incorporated city in Deschutes County, and therefore for purposes of the comprehensive plan is considered "rural development." The RM district within the Sunriver PC zone provides for a variety of housing types permitted outright. As discussed in the findings above, the applicant's proposal would clarify that multi -family dwellings such as "apartment houses' in condominium ownership are a type of housing permitted under the master pian. Approval of the applicant's proposal will not result in development of property that is presently serving as or is intended to remain as open space. Therefore, the Hearings Officer TA -96-7 Page 8 9155-2915 finds the rural character, scenic values and natural resources of the county will be preserved by the applicant's proposal. 2. To guide the location and design of rural development so as to minimize the public costs of facilities and services, to avoid unnecessary expansion of service boundaries, and to preserve and enhance the safety and viability of rural land uses. FINDINGS: As discussed above, the subject property is located within the Sunriver Planned Community. As such, the applicant's proposed text amendment will not result in additional development over and above that which was anticipated for the affected area. That is because the master plan provides that the maximum density for the subject property is 88 units whether developed as apartment units or condominium units. A portion of the subject property is already developed. The record indicates that facilities and services to support the applicant's proposed development are already in place. The record also indicates the Sunriver Business Park is served by the Sunriver community water and sewer systems, therefore requiring no expansion of those service boundaries. For these reasons, the Hearings Officer finds the applicant's proposal is consistent with this plan policy. 3. To provide for the possible long term expansion of urban areas while protecting the distinction between urban (urbanizing) lands and rural lands. FINDINGS: The applicant's proposed text amendment would simply clarify that multi- family dwellings, including apartment houses, in condominium ownership are permitted in the RM District and in the RM(12) area. In addition, it would clarify that condominiums existing and developed on the subject property may be sold or rented to persons other than Sunriver employees. As such, the applicant's proposal does not include any plans for expanding urban areas within Deschutes County and is consistent with the Sunriver PC Zone designation of the subject property for residential development. Consequently, the Hearings Officer finds the applicant's proposal, by clarifying that multi -family dwelling units in condominium ownership are allowed in the RM District and in the RM(12) area, will contribute to meeting the need for rural residential development, thus maintaining the distinction between urban levels of development and rural lands. Policies: Rural development policies are meant to pertain to all non -urban areas (areas outside urban growth boundaries) and are the basic policies to be followed in guiding rural growth. FINDINGS: The Hearings Officer finds the applicant's proposal to allow condominium development will allow a housing type which is permitted outright under the zoning ordinance. The proposal will not create new parcels, increase densities in rural areas or allow any other type of development that is contrary to the policies of this section. Economy FINDINGS: The Hearings Officer concurs with staffs finding that most of the specific goals in the "Economy" section of the plan are not directly applicable to the applicant's request. I also agree that the following policy does apply: Policy: TA -96-7 Page 9 0155-2916 2. Private commercial activities consistent with other County policies which enhance tourism shall be encouraged by the County. FINDINGS: The applicant's proposed text amendment would permit the development of condominium units that could be sold or rented to persons including, but not limited to, Sunriver employees. I concur with staffs conclusion that the proposal therefore is a commercial endeavor that is linked to the housing component of the plan. That is because, as is the case in many resort communities, condominiums are often owned by persons from out of the area who use the residence as a "vacation home." Thus, by offering housing options such as this, the portion of the housing economy that relies on tourism is further fueled. Notwithstanding this fact, the record indicates that many condominium units are rented on a long term basis by their owners and function more in the manner of what is considered a typical apartment. Many renters of these "condominium apartments" are the seasonal employees who also contribute to the tourist economy of the county. Therefore, the Hearings Officer finds approval of the applicant's proposal will result in continued sales of individual condominium units, thus fulfilling the intent of this policy while not limiting the available housing options to seasonal employees. Housing Goals: 1. To provide adequate number of housing units at price ranges and rent levels commensurate with the financial capabilities of local households. 2. To allow flexibility in housing location, type and density in Deschutes County. FINDINGS: The applicant argues this goal is not relevant to review of its proposed zone change/text amendment under Stewart v City of Brookings, LUBA No. 96-001 (June 27, 1996). In that case, LUBA determined that a city comprehensive plan policy worded similarly to the above -quoted Deschutes County comprehensive plan goal was merely an "aspirational declaration" and not an approval criterion applicable to review of an application to convert a single-family residence into a public kindergarten. The Hearings Officer concurs with the applicant's analysis that Deschutes County's housing goal language is the functional equivalent of the Brookings provisions at issue in Stewart. Therefore, I find this goal cannot be read to prohibit the applicant's zone change/text amendment proposal. In any event, the Hearings Officer finds the applicant's proposal is consistent with this comprehensive plan goal. The applicant's supplemental Burden of Proof materials provide extensive information concerning the need for and availability of affordable housing in the Sunriver area. The applicant's evidence indicates the existing condominium units on the subject property are selling at prices ranging from $34,500 to $52,500 per unit, that the proposed additional 32 units would be sold for prices in a slightly higher but similar range, and that the lower-priced units likely would rent for approximately $400 per month. The applicant's evidence also indicates the average annual wage for Sunriver employees is approximately $17,000 and that this wage is comparable to the average tourist -industry wage in Deschutes County. The applicant's evidence indicates there is a shortage of housing units in the Sunriver area (including the Sunriver, Spring River, and La Pine areas) priced under $80,000, as well as a shortage of rental units priced at below $400 per month. TA -96-7 Page 10 0155`2917 Based upon the applicant's evidence, the Hearings Officer finds approval of the applicant's proposal will allow the provision of additional dwelling units at price ranges that are within the financial capabilities of local households -- and in particular tourist -industry employees of Sunriver. Public Facilities Goal: 1. To pian and develop a timely, orderly and efficient arrangement of public facilities and services to serve as a framework for urban and rural development, and thereby a system or plan that coordinates the type, location and delivery of public facilities and services in a manner that best supports the existing and proposed land uses. FINDINGS: As discussed in the findings above, the Hearings Officer has found the applicant's proposal will not result in the need to expand existing public facilities or services or any new public facilities or services. Additionally, the applicant's proposal will not cause a reduction in the level of service of such facilities to surrounding properties. The record indicates all existing services and methods of providing such services are available and adequate to serve the proposed use. B. That the change in classification for the subject property is consistent with the purpose and intent of the proposed zone classification. FINDINGS: The purpose of the Planned Community Zone is set forth in Section 18.108.010 as follows: "Purpose of the Planned Community Zone is to provide standards and review procedures for the development of Planned Communities in Deschutes County. The Hearings Officer finds the applicant's proposed change in the Sunriver Master Plan language is consistent with the purpose and intent of the Planned Community Zone because the proposal will allow multi -family dwellings in condominium ownership in the RM -12 area in which the subject property is located. And, as discussed in the findings above, I find the applicant's proposal also is consistent with the master plan designation of the subject property by providing condominium apartments at price/rent ranges that will provide for the housing needs of persons employed in Sunriver. C. That changing the zoning will presently serve the public health, safety and welfare considering the following factors: a. The availability and efficiency of providing necessary public services and facilities. FINDINGS: As discussed in the findings above, the subject property is in an area planned for multi -family development and with a maximum density on the subject property of 88 units. All necessary public facilities and services are available and provided to the site. TA -96-7 Page 11 0155-2918 b. The impacts on surrounding land use will be consistent with the specific goals and policies contained within the Comprehensive Plan. FINDINGS: The Hearings Officer has previously found the applicant's proposal is consistent with the applicable goals and policies of the comprehensive plan. In addition, as discussed in the findings above, the subject property is planned for a maximum density of 88 units. Therefore, the applicant's proposal is consistent with the density and impact planned for the subject property. Moreover, n development additional sdcondominium the property will be subject to lareview to assure hepropocondominiums are compatible with the surrounding area. D. That there has been a change in circumstances since the property was last zoned or a mistake was made in the zoning of the property in question. FINDINGS: 1. Mistake. The applicant argues the inclusion of language in the Sunriver Master Plan apparently limiting development of the RM(12) area to apartments for Sunriver employees was a mistake because -- in hindsight -- it could result in discrimination against persons protected by the Fair Housing Act. The Hearings Officer is not persuaded that a mistake in current zoning can be established by the subsequent adoption of a law that may prohibit zoning restrictions. However, as discussed below, I find the original master plan language may have been a mistake for other reasons. The Board of County Commissioners' findings in Ordinance No. 82-043 adopting the Sunriver Master Plan and the PC Zone do not elaborate on the perceived need for employee housing in the Business Park. However, the Hearings Officer believes the Board and other interested parties were concerned that without the RM(12) designation for employee housing the Sunriver Resort -- which in 1982 already had been substantially developed as a destination resort with many "high-end" houses -- Sunriver would not have any affordable housing for its employees at a reasonable distance from their workplaces. Notwithstanding the Board's and Sunriver Resort's legitimate concerns about the adequacy of affordable employee housing, the Hearings Officer finds it was a mistake to adopt the restrictive language contained in the RM(12) provisions. I concur with staff's analysis that as a matter of public policy it is not appropriate for a local government to use comprehensive plans and zoning ordinances to restrict housing in a particular area to a particular class of people. Rather, it is appropriate to require, as Statewide Land Use planning Goal 10 mandates, that local government plans and zoning ordinances assure the provision of a variety of housing types and costs within in the community. 2. Chane of Circumstances. The applicant argues there have been several changes in circumstances justifying the proposed zone change/text amendment. Each of these circumstances is discussed in the findings below. a The county's previous approval of the condominium conversion for the subject property in S_ The applicant argues the county's condominium conversion approval, which commits the entire subject property to condominium ownership, justifies the proposed zone change/text amendment for the following reasons: TA -96-7 Page 12 0155-02,919 .[T]he change of the apartment dwellings to condominiums will affect the function of the apartments... As a result of that approval and State Real Estate Commissioner approval, the Applicant irrevocably committed the apartments and the lot upon which the apartments sit to condominium use. At this time, the only development that may occur on the subject property is the construction of up to 32 condominium apartment units. In such a setting, it is irrelevant what the affor- dability or function of a condominium is as compared to an apartment dwelling because no apartment dwellings can or will be built under any circumstances ... Without approval to build new units in the reserve area, the area will become common property owned by all of the condominium owners, and no new units will be available for use as rentals." (Emphasis in original.) The Hearings Officer agrees with the applicant's analysis. In particular, I find the legal effect of the condominium conversion is to preclude the development of anything but condominium units, which under Oregon law may be sold individually and which sale cannot legally be limited to any particular class of persons. This change in ownership type clearly was not contemplated when the Sunriver Master Plan was adopted, and likely makes the challenged master plan language designating the subject property for employee apartments unenforceable. As discussed above, the applicant submitted evidence analyzing the supply of affordable housing in Sunriver and surrounding areas. That evidence indicates there is a considerable inventory of affordable housing in the communities surrounding Sunriver. The applicant's evidence also indicates that even marketing the apartments to Sunriver employees, both the present and former owners of the subject property have been unable to maintain sufficient occupancy of the 56 existing apartment units throughout the year to break even financially. The Hearings Officer concurs with the applicant that the high vacancy rate -- 13 to 34 percent -- for the existing 56 units is evidence of lack of demand for rental housing within the Sunriver Business Park. 3. The ridening and im rovement of Hi hwa 97 between Bend and Sunriver. The Hearings Officer concurs that the improvements to the section of Highway 97 between Bend and Sunriver constitute a change in circumstances having an impact on the need for employee housing in Sunriver. These improvements have made travel between Bend and Sunriver considerably faster and safer during the winter months. The record indicates that most permanent Sunriver employees live in housing in the area outside of Sunriver due to the high cost of homes in Sunriver, but that most seasonal Sunriver employees live in Bend and commute to Sunriver. I fine a fromBend improvements thus reducing �hehave demandl for encouraged seasonal employees to comm designated. employee housing for which the RM(I2) area was g 4. The develoment of the Sunriver Business Park with few industrial uses The applicant argues that since the Business Park has not developed as an industrial park as planned -- with industrial uses requiring large numbers of employees needing housing -- but rather as a commercial center. the need for Sunriver employee housing has diminished. The Hearings Officer believes there may be some validity to this argument, but that the record does not contain sufficient information for me to conclude that industrial uses would have more employees needing local housing than commercial uses. TA -96-7 Page 13 01.5 5. The 1988 a)using Act to include protection from discrimination against ersons with handicaps. The applicant argues at length that if the Sunriver Master Plan provisions governing development of the RM(12) area are read to limit development to apartments for Sunriver employees, they may violate the Fair Housing Act to the extent such a limitation has the effect of discriminating against persons with handicaps or who are in other protected classes. The applicant argues the 1988 amendment to the Fair Housing Act to extend its protection to persons with handicaps constitutes a change in circumstances since the Sunriver Master Plan was adopted. The Hearings Officer concurs. However, as discussed in the findings above, the Hearings Officer agrees with staff that changes in the Fair Housing Act are of less significance in this case than the larger policy issue presented by the master plan provisions governing development of the RM(12) area. That issue is whether a local government's comprehensive plan and zoning ordinance should ever be used to designate areas for housing particular classes of people -- as opposed to requiring that housing of a variety of types and costs be provided. I find that the Sunnver Master Plan's provisions apparently restricting development of the RM(12) area to Sunriver employee rental housing was not appropriate and should be modified. For the foregoing reasons, the Hearings Officer finds the applicant has met the burden of proving one or more changes in circumstances justifying the proposed zone change/text amendment. IV. DECISION: Based upon the foregoing Findings of Fact and Conclusions of Law, the Hearings Officer hereby APPROVES the requested zone change/text amendment to the Sunriver Master Plan, to read as follows: "RM(12): Contains 4 acres and is located along the south boundary of the business park. This area is to be for multi -family dwellings, including condominiums developed as multi -family dwellings, and is to take the place of the Abbott House apartments which had been adjacent to the Country Mall. The density of this area shall not exceed that of the density allowed in the `RM' District of the `PC' Zone. This area will assist in meeting the need for apartment dwellings for employees of Sunriver." Mailed this _f ri day of September, 1996. 1;�� 1741. 21_ + Karen H. Green, Hearings Officer THIS DECISION BECOMES FINAL 10 DAYS AFTER MAILING, UNLESS APPEALED. TA -96-7 Page 14