2004-1177-Ordinance No. 2004-017 Recorded 9/8/2004REVIEWED LEGAL C UNSEL REVIEW l CODE REVIEW COMMITTEE TES COUNTY OFFICIAL RECO NANCY UBLANKENSHIP, COUNTY CLERKDS 4J 2004'1177 COMMISSIONERS' JOURNAL 11111111 11ININ1001 111111111 11 1 oil 09/08/2004 05:00:06 PM 2004-1177 BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Ordinance Amending Title 23, the Deschutes County Comprehensive Plan, of the Deschutes * ORDINANCE NO. 2004-017 County Code, to Change the Plan Designation for Certain Property from Agriculture to Urban Growth Boundary. WHEREAS, the City of Bend (City) is in the process of completing periodic review of the Bend Area General Plan; and WHEREAS, the City completed an Economic Lands Study (ELS) as required by Policy 1 of Chapter 6 of the Bend Area General Plan and Task 2 of the City's Periodic Review Work Program; and WHEREAS, the results of ELS shows the City did not have a 20 -year supply of industrial land within the City's urban growth boundary (UGB); and WHEREAS, the City has demonstrated a need for additional industrial land to meet its commercial and industrial lands needs now and in the future; and WHEREAS, the City has proposed amending its urban growth boundary (UGB) to include 513 acres of property for commercial and industrial purposes; and WHEREAS, the City has demonstrated that the proposed amendment meets all applicable state laws and rules; and WHEREAS, the Bend and Deschutes County Planning Commissions considered the proposed amendment through joint public hearings; and WHEREAS, the Bend City Council has voted to approve the proposed amendment and forward it to the Board of Commissioners for consideration; and WHEREAS, the Board of Commissioners concurs with the city's findings and concludes the public will benefit from the amendment to the City's UGB to add land for industrial purposes; and WHEREAS, the Board of County Commissioners considered the proposed amendment to the Comprehensive Plan map after a public hearing on August 11, 2004; now, therefore, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ORDAINS as follows: PAGE 1 OF 2 - ORDINANCE NO. 2004-17 (08/11/04) Section 1. AMENDMENT. The Deschutes County Comprehensive Plan is amended as shown to change the plan designation of property as shown on Exhibit "A" and described in Exhibit `B," from Agriculture to Urban Growth Boundary. Section 2. AMENDMENT. DCC Chapter 23.120, Exceptions Statement, of the Deschutes County Comprehensive Plan is hereby amended as shown in Exhibit "C," with new language shown in underline. Section 3. FINDINGS. The Board of County Commissioners adopts as its findings in support of the amendment set forth herein the Burden of Proof attached hereto as Exhibit "D," and the Additional Findings attached hereto as Exhibit "E", and by this reference incorporated herein. DATED this 0day of U '2004. BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON MIC EL M. ALV, ehair NNIS R. LUKE, Commissioner TOM DEWOLF, Commissioner Date of lst Reading: day of , 2004. Date of 2°d Reading: % day of , 2004. Record of Adoption Vote Commissioner Yes No Abstained Excused Michael M. Daly f/ Tom DeWolf Dennis R. Luke Effective date: U 11 day of 2004. ATTEST: Recording Secretary PAGE 2 OF 2 - ORDINANCE NO. 2004-17 (08/11/04) O� C O I'M ■■■■■■-�'i .■■■■■■� Iii Legend Canal Urban Area —#— Railroad ® Urban Growth Boundary t® Highway 97 Deschutes County Community Development r,o,�egw m.s on op :u"ca,,,N.crs. �a,w �"zr M d.acei a.mr.d, www d. Deschutes County Comprehensive Plan Exhibit "A" to /Ordinance 2004-017 V V 1,320 660 0 1,320 Feet July 23, 2004 BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON Michael M. Daly, Chair Tom De Wolf, Commissioner Dennis R. Luke, Commissioner ATTEST: Recording Secretary Dated this _ day of August, 2004 Effective Date: November 2004 —d That portion of Section 10, Township 17 South, Range 12 East of the Willamette Meridian lying westerly of Pilot Butte Canal. A portion of Assessors Map 17-12-00 (Index) Tax Lot 200 PAGE 1 OF 1 — EXHIBIT `B" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "C" 23.120.180.2004 City of Bend Urban Growth Boundary Amendment (Juniper Ridge) In conjunction with approval of PA -04-2 for the amendment of the City of Bend urban growth boundary to include 513 acres of land for industrial purposes an exception to Statewide Planning Goal 3, Agriculture, was taken to allow for the subject amendment of the city's urban growth boundary. Reasons justifying why the state policy embodied in Goal 3 should not apply in this situation are as set forth in Exhibit D to Ordinance 2004-017 which findings are incorporated herein by reference. (2004) (Ord 2004-017; Ord. 2002-005 § 1, 2002; Ord. 2000-017 § 1, 2000; Ord. 97-060, 1997) Page 1 OF 1 — EXHIBIT "C" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D„ CITY OF BEND PROPOSAL FOR URBAN GROWTH BOUNDARY EXPANSION AND GENERAL PLAN AMENDMENTS — JUNIPER RIDGE DATE: April 21, 2004 CITY FILE NO.: PZ 03-565 COUNTY FILE NO.: PA 04-02 APPLICANT: City of Bend P. O. Box 431 Bend, Oregon 97709 Attn: Brian Shetterly, AICP, Principal Planner e-mail: bshetterly@ci.bend.or.us (541) 385-6680 (telephone) (541) 388-5519 (fax) OWNER: City of Bend P. O. Box 431 Bend, Oregon 97709 APPLICANT'S Peter Schannauer, Assoc. City Attorney ATTORNEYS: Forbes & Schannauer 835 NW Bond Bend, Oregon 97701 541-382-3917 (telephone) 541-382-4215 (fax) pschannauernci.bend. or.us Jeffrey G. Condit Miller Nash, LLP 3500 U.S. Bancorp Tower 111 SW Fifth Ave. Portland, Oregon 97204 503-224-5858 (telephone) 503-224-0155 (fax) condit@millemash.com PAGE 1 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" SUBJECT PROPERTY: That portion of Section 10, Township 17S, Range 12E lying westerly of Pilot Butte Canal, operated by Central Oregon Irrigation District. Tax Assessor's Map 17-12, Tax Lot 200 (see attached map). REQUEST: Request for Approval of amendment to the Bend Area General Plan to include approximately 513 acres of the above -referenced subject property within the City of Bend Urban Growth Boundary; designating this acreage as Industrial Light on the Bend Urban Area General Plan Map; amending Chapter 6 of the Bend Area General Plan; and adopting the Economic Lands Study as an appendix to the Bend Area General Plan. ATTACHMENTS: Exhibit A — Map: Juniper Ridge UGB Expansion Area Exhibit B — Economic Lands Study (Parts 1-3) Exhibit C — Draft Revised Chapter 6, Bend Area General Plan Exhibit D — Draft Amendments to Policies, General Plan Chapter 6 The Applicant provides the following information, in the form of proposed findings of fact and conclusions of law, in support of the above land use application. I. APPLICABLE CRITERIA The following provide relevant approval criteria for this application: 1. Bend Area General Plan A. Future Plan Updates (p. P-6) B. Plan Management and Citizen Involvement, Urban Planning Coordination Policy C. The Economy and Lands for Economic Growth, General Policy 1 and Industrial Development Policy 3 2. Oregon Statewide Planning Goal 1 3. Oregon Statewide Planning Goal 3 PAGE 2 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" 4. Oregon Statewide Planning Goal 9 5. Oregon Statewide Planning Goal 12 (OAR 660-012-0060) 6. Oregon Statewide Planning Goal 14 (OAR 660-015-0000[14]) 7. ORS 197.298 8. Exceptions Under Oregon Statewide Planning Goal 2 (OAR 660-0040-0010) 9. Other Applicable Statewide Planning Goals II. PROCEDURE Legislative land use actions in and adjacent to the Bend urban area are governed by a joint management agreement adopted by the City of Bend and Deschutes County in 1998. They are also governed by the City of Bend's Land Use Procedures Ordinance and by the Deschutes County Procedures Ordinance. These documents call for public hearings on the proposal by both the City and County Planning Commissions. The Planning Commissions then make a recommendation to the two governing bodies, the Bend City Council and the Deschutes County Board of Commissioners. The governing bodies must hold public hearings to consider the Planning Commissions' recommendation and then take final action to adopt, modify, or reject the proposal. If adopted, the General Plan amendments must be transmitted to the Oregon Department of Land Conservation and Development for acknowledgment as being in compliance with applicable state land use laws. III. BACKGROUND In 2000 City of Bend staff completed an inventory and analysis of buildable commercial and industrial land within the Bend Urban Growth Boundary. At the same time, staff also forecasted the commercial and industrial land needs to determine the adequacy of the land supply for the 20 year planning period ending in 2020. This work is documented in a three- part study, the Economic Lands Study (ELS), attached as Exhibit B, that found there is not enough buildable industrial land within the urban growth boundary to meet the forecast need. Preparation of the ELS was required by Policy 1 of Chapter 6 of the Bend Area General Plan. It was also mandated as part of Task 2 of Bend's Periodic Review Work Program. That task requires the city to: Update the Inventory of Vacant Industrial and Commercial Land which meets the requirements of Statewide Planning Goal 9 and OAR 660, Division 9. Conduct additional analysis of land needed for economic development. Products: (A) Inventory of buildable land for commercial and industrial development PAGE 3 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D„ within the urban area. (B) Study that analyzes the amount of land needed for future economic growth. (C) If needed, based on products A and B above, an evaluation of land outside the UGB that may be needed and suitable for economic growth which may result in a proposal to include land within the UGB for economic development. The General Plan amendments proposed in this application are intended to carry out the recommendations of the ELS and fulfill General Plan Policy 1 (Chapter 6), and Periodic Review Task 2. The ELS considered various measures to provide for the forecast industrial lands need, including re -zonings and potential redevelopment opportunities for properties already within the UGB. For the needed industrial lands, these various planning and zoning measures would only provide for a small portion of the additional required acreage. In order to meet the forecast need, the ELS recommended expanding the UGB by 245 acres.' Since completion of the 2000 study, additional industrial acreage has been consumed by on-going development activity. The need for this additional industrial land, as discussed in the ELS, is for: 1. Land that is suitable for light industrial development to provide for choice in the normal industrial land market place; and 2. Land that will provide sites for large tracts and that meets the need for large site uses. Larger sites will allow local firms to expand and provide suitable sites for new manufacturing or high-technology firms to locate in Bend.2 After identifying a need for more industrial land, a total of 14 candidate sites were evaluated in Part 2 of the ELS for suitability as future industrial development sites.3 Nine of these 14 candidate sites were located outside the UGB. All the potential sites were evaluated using criteria appropriate to industrial development and rated using a scoring system. The two sites outside the UGB that were found to have the greatest potential and overall suitability for industrial development were the Juniper Ridge site, and a 35 -acre parcel known as the Hunnell Rd. site, located to the west of Juniper Ridge, across U.S. Hwy. 97. The Economic Lands Study recommended that both of these sites be brought into the UGB to ensure an adequate supply of land for the long-term economic viability of the community. These actions are also needed to bring the city into conformance with the requirement of Statewide Planning Goal 9 (OAR 660-009-0025) that the city designate at least a projected 20 -year supply of buildable lands for future industrial development. It is important to note, as discussed further below, that Goal 9 and its administrative rule do not prohibit the inclusion of somewhat more than the estimated 20 -year buildable lands need, especially where there is a demonstrated need for certain types of industrial sites, i.e. large -lot sites. 1 City of Bend, Economic Lands Study, Part 3, p. 3, December 2000. 2 Ibid. 3 City of Bend, Economic Lands Study, Part 2, December 2000, p. 14-20. PAGE 4 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" IV. PROPOSED GENERAL PLAN AMENDMENTS The purpose of these proposed General Plan amendments is to fulfill the requirements of Periodic Review Task 2; carry out in part the recommendation of the Economic Lands Study to achieve a greater supply of industrial land; achieve conformance with Statewide Planning Goal 9 by expanding the Urban Growth Boundary to take in approximately 513 gross acres of the Juniper Ridge site; and to designate that area on the General Plan Map for Light Industrial Use. A separate follow-up action will be needed to apply an urban ndustrial zoning designation to this site. A separate application has also been prepared to simultaneously expand the Urban Growth Boundary to include the Hunnell Rd. site (35 acres), thereby adding a total of approximately 548 acres of land to Bend's urban area. As discussed below, it is expected that topographic constraints and the need to provide for streets and other urban services will yield approximately 364 net buildable acres from this amount. It is also the purpose of this proposal to amend the General Plan by revising Chapter 6 of the Bend Area General Plan to include updated economic data, acknowledge the findings of the Economic Lands Study, and adopt policies relating to development of the Juniper Ridge site. Juniper Ridge Site Description This site is one-half mile east of Highway 97 N adjacent to the Bend UGB on two sides. It is an area that is designated as Agriculture in the Deschutes County Comprehensive Plan, and is zoned Exclusive Farm Use — Alfalfa (EFU-AL). The southwest edge of this site is adjacent to Cooley Road, a designated urban arterial. Cooley Road will provide direct access from the site to Hwy. 97. NE 181h Street, also an urban minor arterial, "Tees" into Cooley Road opposite the Juniper Ridge site. At the Juniper Ridge site the city proposes to add approximately 513 gross acres to the UGB, consisting of that portion of Section 10, T17S, R12E lying west of the C.O.I.D. irrigation canal. As discussed more fully below, up to 175 acres of this site is expected to be unbuildable due to topographic constraints and the need for open space buffers, streets, and utilities. The City and County first started the process to designate this site for industrial uses in the late 1970's after an industrial lands study identified it as a desirable location for industrial development. The 513 -acre area proposed to be included in the UGB is part of a larger, 1,500 -acre area (fourteen tax parcels) currently owned by the City of Bend. This area had previously been owned by Deschutes County. The County transferred title to the property to the City in 1990 after the County had traded lands with the U.S. Bureau of Land Management. The City and County identified this area for industrial development in the Bend Area General Plan that was acknowledged in 1981. Among the reasons this site was, and still is, considered desirable for industrial development are the following: PAGE 5 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" • It is adjacent to the Urban Growth Boundary. • The BNSF freight rail line runs through the northwest corner of the site. • It is adjacent to two urban arterial roads, and close to Highway 97. • It is a large, vacant site under public ownership. • It is buffered from agricultural uses and large lot rural residential development and by additional land under the same (city) ownership. • The site has shallow, rocky soil with many rock outcroppings that make it unsuitable for agriculture. • The site has never been farmed or used for grazing, and is not suitable for those purposes. The City has determined through the ELS that suitable industrial land is a relatively scarce resource in the Bend area. Large -lot industrial sites are even more rare. Piece -meal development of the Juniper Ridge site can be prevented through the adoption of policies that commit the City, as owner, to prepare a development plan and to reserve a substantial portion of the site for large -lot development. These draft policies are attached as Exhibit D. VII. PROPOSED FINDINGS OF FACT The City proposes that the Bend City Council and the Deschutes County Board of Commissioners adopt the following findings of fact and approve the proposed General Plan amendments, based on the following findings: Bend Area General Plan Future Plan Updates (p. P-6): The General Plan is a document that changes over time to reflect new information and new directions for the future. Amendments or additions to the General Plan text, exhibits, and policies go through a public hearing and review process before being adopted by the governing bodies. Changes and updates can be generated in at least six ways: ...Evaluation of land use topics required to be reviewed under the Oregon Land Conservation and Development Commission's "periodic review" of the General Plan. The state requires all local plans to be updated periodically to comply with applicable new state laws, administrative rules, or to incorporate new data available to the state. FINDING: In 1999 the Oregon Department of Land Conservation and Development approved the City of Bend's Periodic Review Work Program. Task 2 of this work program requires the City to update its inventory of buildable lands for commercial and industrial use, and to consider adding land to the inventory if the update analysis finds a deficiency in the 20 -year land supply requirement of Goal 9. In compliance with Periodic Review Task 2, Bend City staff prepared the three-part Economic Lands Study. This analysis, supplemented PAGE 6 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXIIIBIT "D" by additional findings below, supports expansion of the UGB on this site to achieve some 338 net acres to help meet the city's estimated 20 -year industrial land supply requirement. The City has also identified a need to have available several large, vacant industrial parcels to accommodate potential demand for large industrial users. By adding the 513 -acre Juniper Ridge site to the UGB and designating it for future industrial use, approximately 338 net acres will be available for both large -lot and smaller scale development. The net acreage of the Juniper Ridge UGB expansion area is sufficient to allow for creation of a number of large parcels (over 10 acres in size, and perhaps up to 50-75 acres) to meet the needs of large industrial users. The 35 acres of the Hunnell Rd. site, also proposed to be added to the UGB, will help to ensure that a variety of industrial parcels will be available to at least meet the projected need for industrial development to the year 2025. Because Periodic Review Task 2 found the City to be out of compliance with Goal 9's requirement for at least a 20 -year buildable lands supply for industrial development, it is necessary to amend the Bend Area General Plan to expand the UGB in order to provide for a portion of the land area needed to comply with Goal 9. For the same reason, it is also necessary to apply a designation of Light Industrial to the General Plan Map for this site, and to amend General Plan policies (see Exhibit D, attached) to ensure that this site will be zoned and developed in a manner that enables the city to meet its long-term industrial land needs. Plan Management and Citizen Involvement, Urban Planning Coordination Policy 1: 1. Growth in the Bend Area shall be managed through the cooperative efforts of the City of Bend and Deschutes County. FINDING: The 1998 Joint Management Agreement for the Bend urban area, adopted by both the City and the County, authorizes the City to initiate comprehensive plan amendments in Bend's urban area. Such amendments must by considered by both City and County Planning Commissions and by the two governing bodies. In addition, the Joint Management Agreement calls for planning staffs of the two jurisdictions to coordinate staff work connected with plan amendments. The Juniper Ridge site was transferred from County to City ownership in 1990 with the intent of eventually being made available for urbanization as industrial land. In 1998, as the Bend Area General Plan was undergoing a major update, discussions were held between the City and County concerning the need for the Juniper Ridge site to be brought into Bend's UGB as part of its industrial lands inventory. Action was delayed at that time to allow for further detailed analysis in connection with Task 2 of the City's Periodic Review Work Program. Since winter of 2003 City staff have been meeting periodically with County staff, as well as with representatives from a variety of affected state agencies (acting as the Governor's Economic Revitalization Team), to coordinate the process of amending the UGB to make the Juniper Ridge and Hunnell Rd. sites available for urbanization as industrial land. In accordance with the Joint Management Agreement, formal notice of the City's proposal to amend the Bend Urban Area General Plan PAGE 7 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" as described in this application was provided to County planning staff on January 12, 2004. The City of Bend Planning Commission and the Deschutes County Planning Commission held a joint public hearing on this proposal on January 26, 2004 and February 9, 2004. Both Commissions have recommended to their respective governing bodies that this proposal be approved, although the County Planning Commission recommended limiting the amount of land to be designated for industrial use. The Economy and Lands for Economic Growth, General Policy 1: 1. After the General Plan update in 1998 the city shall resume its study of industrial and commercial land needs, land supply, and allocation of future lands. The study will include an evaluation of the "industrial reserve" site north of Cooley Rd., and other potential industrial areas inside and adjacent to the UGB, and local/regional commercial centers. FINDING: The three-part Economic Lands Study was prepared in 2000, and completed in 2001 in direct response to this policy mandate. As discussed above, this study found that Bend has an inadequate supply of industrial lands, given the requirements of Goal 9 and OAR 660-009-0025. The study also evaluated fourteen candidate sites, both within and outside the UGB to meet this deficit.4 One of these sites was the site north of Cooley Rd., east of Hwy. 97, known as Juniper Ridge. Of the fourteen candidate sites, the two that were found most suitable for industrial use were the Hunnell Rd. site and Juniper Ridge. Industrial Development Policy 3: 1. The community shall attempt to diversify its industrial base. FINDING: These proposed General Plan amendments will facilitate a greater diversity of sites available for industrial use. At present, there are only five vacant, industrial -zoned sites within the City of Bend that are over ten acres in size; only one of those sites is larger than thirty acres. There is a need for the industrial lands inventory to include a number of larger sites, in addition to meeting the aggregate forecast need for industrial acreage. Inclusion of the Juniper Ridge site within the UGB would make creation of these larger industrial parcels possible. Draft General Plan policy amendments attached as Exhibit D would require a certain amount of Juniper Ridge to be designated specifically for parcels of at least ten acres. Oregon Statewide Planning Goal 1 4 City of Bend, Economic Lands Study, 2001, Part 2, p. 15. PAGE 8 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" Goal 1 is "To develop a citizen involvement program that insures the opportunity for citizens to be involved in all phases of the planning process." FINDINGS: Conformance with Goal 1 is achieved through Chapter 1 of the Bend Area General Plan and through implementing measures such as the Zoning Ordinance and the Land Use Permit and Review Procedures Ordinance. Chapter 1 of the General Plan identifies the Bend Planning Commission as the official Citizens' Involvement Committee for the urban area. Policy 16 of Chapter 1 of the General Plan states that "The city will use other mechanisms, such as, but not limited to, meetings with neighborhood groups, planning commission hearings, design workshops, and public forums, to provide an opportunity for all the citizens of the area to participate in the planning process." City staff met with representatives of the Boyd Acres Neighborhood Association on December 4, 2003 to announce this proposal. An open house for residents and property owners to discuss this proposal was held at Sky View Middle School on January 14, 2004. This open house was preceded by a mailed notice to approximately 600 property owners within a half -mile radius of the Juniper Ridge site. The Land Use Permit and Review Procedures Ordinance (Sec. 10-16.3) requires that the Planning Commission and the City Council both hold public hearings prior to acting on a proposed amendment to the General Plan. The Planning Commission public hearing on this proposal was held on January 26, 2004 and February 9, 2004. It was preceded by a hearing notice published in the Bend Bulletin on January 13, 2004 and by mailed notice to approximately 600 property owners within a half -mile radius of the proposal area. The City Council public hearing on these proposed amendments will be followed by a Deschutes County Board of Commissioners public hearing to consider this proposed UGB expansion, in accordance with an intergovernmental agreement for joint management of the Bend urban area adopted by the City of Bend and Deschutes County in 1998. OreEon Statewide Planninta Goal 3 Goal 3 is "To preserve and maintain agricultural lands." FINDINGS: Goal 3 identifies agricultural land in eastern Oregon (including Central Oregon) as land of predominantly Class I -VI soils. As indicated in Part 3 of the ELS, approximately 90% of the acreage proposed for inclusion in the UGB is made up of the Gosney-Rock Outcrop-Deskamp soil complex. This soil complex has a SCS Class VIIs and VIIIs capability rating without irrigation. Further documentation attached to the ELS finds that the Juniper Ridge site has no irrigation water rights, and that even if the site had water rights, the rock outcroppings and topographic constraints make irrigation infeasible. The Juniper Ridge site has never been actively farmed, and Bureau of Land Management records indicate that there is no history even of grazing on the site. Because the Juniper Ridge site PAGE 9 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D„ does not meet the Goal 3 definition of agricultural lands, the proposed inclusion of the site in Bend's UGB would not be in conflict with Goal 3. Oregon Statewide Planning Goal 9 Goal 9 is "To provide adequate opportunities throughout the state for a variety of economic activities vital to the health, welfare, and prosperity of Oregon's citizens." FINDINGS: OAR 660-009 implements Goal 9. This administrative rule requires the City to maintain its comprehensive plan and land use regulations so as to provide adequate opportunities for a variety of economic activities, and to assure that these are based on available information about state and national economic trends. In Bend's case, the purposes of Goal 9 and OAR 660-009 will be achieved through adoption of these proposed General Plan amendments, the UGB expansion, and related actions to make the Juniper Ridge site available for industrial development. The Economic Lands Study of 2001 was prepared as part of Bend's periodic review of its comprehensive plan (Task 2 of the City of Bend Approved Periodic Review Work Program) It contains extensive data and analysis relating to local, state, and national economic trends, and the availability of land to accommodate future economic development. These findings indicate that Bend does not have a long-term supply of land for the industrial lands category, as required by OAR 660-009-0025. The ELS further identifies the Juniper Ridge and Hunnell Rd. sites as the most suitable locations for meeting the city's long-term need for industrial lands. Adoption of these proposed General Plan amendments to expand the UGB and make the Juniper Ridge site available for industrial development will fulfill Periodic Review Task 2, bring the city into conformance with Goal 9, and help to ensure adequate opportunities for a wide variety of economic activities in the Bend area. Part 3 of the Economic Lands Study recommended adding some 245 acres of industrial land to the UGB, to meet an estimated 20 -year demands That recommendation was based on an estimated need for 205 additional net acres (after adjusting for a pending, 10 -acre plan map amendment) for industrial development. The study's analysis was based on a lot -by -lot inventory of commercial and industrial buildable lands to determine the adequacy of Bend's economic land supply. That inventory used land use data that was current through 1999. Since completion of the Economic Lands Study, the city's buildable lands inventory for industrial use has been reduced by an additional 38 acres as development activity has continued. No new acreage has been added to the inventory during that period. To carry out the recommendation of the ELS, the 245 acres to be added to the inventory through UGB expansion should be increased by the 38 acres absorbed since that recommendation was made, in order to stay well ahead of forecast demand. When this adjustment is made, the 5 City of Bend, Economic Lands Study, Part 3, p. 4, December 2000. PAGE 10 OF 38 —EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" estimate of the acreage recommended to be brought into the UGB increases to approximately 283 acres. This proposal calls for bringing approximately 513 acres of Juniper Ridge into the UGB for industrial use. In 1992 an analysis of the Juniper Ridge site was carried out, and alternative master plans were drafted as part of a study considering the need for more industrial land in Bend.6 That site analysis estimated that only about 338 acres of the 513 total acres of this site would be developable, taking into account a number of large rock outcroppings, significant native plant communities, and other geographical constraints, as well as the need to construct major streets and provide open space and buffers adjacent to residential neighborhoods. When combined with the proposed Hunnell Rd. UGB expansion (approximately 26 net acres), a total of some 364 net acres would be added to Bend's industrial lands inventory. Although this is larger than the 245 acres recommended in the ELS, it would not result in an unnecessary surplus of acreage. The statewide economic recession which began in 2001 has spurred increased interest both locally and statewide in making more land market -ready for industrial use as an economic development strategy.7 To be successful, this strategy must include adding greater amounts of land for new industrial development, as well as large -lot sites, to the community's industrial lands base. Of the two sites proposed for inclusion within the UGB at this time (Hunnell Rd. and Juniper Ridge), only Juniper Ridge is large enough to allow for creation of a number of very large (i.e. 25-100 acres) industrial parcels. By bringing all of Juniper Ridge west of the COI canal into the UGB, it will be possible to create several large -lot industrial parcels and still have space for an assortment of smaller parcels, while also preserving topographic features, meeting open space needs and providing for future streets and utilities. Exhibit D includes draft policy language to be included in Chapter 6 of the Bend Area General Plan, requiring that at least 30% of the Juniper Ridge site's net buildable area be allocated to creation of industrial sites at least ten acres in size. Finally, it should be noted that OAR 660-009-0025(2) requires the City's comprehensive plan to designate lands for future industrial development that "shall at least equal the projected land needs... during the 20 -year planning period," (emphasis added). The findings of the Economic Lands Study (updated with more recent data) plus the need to preserve large areas of topographic features and open space, combined with the urgent regional and statewide need for large -lot industrial sites, all support the inclusion of the proposed 513 acres of Juniper Ridge within the UGB to achieve conformance with Goal 9. 6 Industrial Land Analysis and Industrial Area Master Plan; Mitchell, Nelson Wellborn Reimann Partnership, Portland Oregon, August 1, 1992. 7 Governor's Executive Order No. 03-02 - Industrial Lands, February 18, 2003; GROW: Governor's Recovery for Oregon Workers — An Action Plan for Jobs, Office of the Governor, http: //governor. oregon.gov/grow. him; PAGE 11 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" Oreton Statewide Planning Goal 12 Goal 12 is "To provide and encourage a safe, convenient and economic transportation system." FINDINGS: OAR 660-012 implements Goal 12. This administrative rule requires the City to prepare and adopt a Transportation System Plan (TSP) as part of its comprehensive plan. The Bend Urban Area Transportation System Plan was adopted October 11, 2000. As discussed in Part 3 of the ELS, traffic load modeling conducted as input to the TSP in 2000 anticipated potential development of a portion of the Juniper Ridge site. This modeling indicated that the existing minor arterial streets serving this area (NE Cooley Rd. and NE 181' St.) could accommodate some industrial development on the site. Recent analyses have found, however, that the existing intersection of Cooley Rd./Hwy. 97 is nearing capacity at present, and will need to be upgraded in order to accommodate substantial future development in Juniper Ridge, as discussed below. OAR 660-012-0060 contains criteria that local comprehensive plans and their TSP's must address whenever a proposed amendment will significantly affect a transportation facility within the system. OAR 660-012-0060 (2) states that a plan or land use regulation amendment significantly affects a transportation facility if it: a) Changes the functional classification of an existing or planned transportation facility; b) Changes the standards implementing a functional classification system; c) Allows types or levels of land uses which would result in levels of travel or access which are inconsistent with the functional classification of a transportation facility; or d) Would reduce the performance standards of the facility below the minimum acceptable level identified in the TSP. This proposed General Plan amendment to include Juniper Ridge within the UGB and designate it for light industrial use will not in itself affect the identified function, capacity, and performance standards of any transportation facilities in the vicinity. However, there is evidence that subsequent industrial development of the Juniper Ridge site will significantly affect the intersection of Cooley Rd. with Hwy. 97, by allowing types and levels of land uses which would result in levels of traffic or access which are inconsistent with the functional classification of this intersection, and which would reduce the performance standards of this facility below the minimum acceptable level identified in the TSP. This evidence is contained in findings prepared in connection with a recently adopted amendment of the Bend Urban Area Transportation System Plan (File No. PZ -03-658). These findings indicate that the current functional capacity of this existing, at -grade intersection will be very near its maximum with construction of several proposed commercial uses which have already been PAGE 12 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D„ permitted by the City of Bend. The capacity of this facility would likely be exceeded by additional trips generated by any substantial future industrial uses on the Juniper Ridge site. Where a proposed plan amendment would significantly affect a transportation facility, such as the Cooley/Hwy. 97 intersection, OAR 660-012-0060 requires that the allowed uses be consistent with the identified function, capacity, and performance standards of the facility. Under the rule, this may be achieved by either: (a) Limiting allowed land uses to be consistent with the planned function, capacity, and performance standards of the transportation facility; (b) Amending the TSP to provide transportation facilities adequate to support the proposed land uses consistent with the requirements of this division; (c) Altering land use designations, densities, or design requirements to reduce demand for automobile travel and meet travel needs through other modes; or (d) Amending the TSP to modify the planned function, capacity and performance standards, as needed, to accept greater motor vehicle congestion to promote mixed use, pedestrian friendly development where multimodal travel choices are provided. As discussed above, amendment of the General Plan to include this site in the UGB and designate it for light industrial use will not itself affect the function, capacity, or performance standards of any transportation facility. However, it is anticipated that subsequent development on the Juniper Ridge site will result in the capacity of the Cooley /Hwy. 97 intersection being exceeded. To achieve conformance with OAR 660-012-0060 for this proposal, an amendment to the TSP was recently adopted to include design and construction of a grade -separated interchange at Cooley/Hwy. 97 to replace the existing at -grade intersection (City File No. PZ -03-658). This amendment designates this project for construction during the 2004-2009 time period. A specific funding source for this project is not identified in the TSP, however a new policy adopted as part of the TSP amendment commits the City to work with ODOT to develop funding for this and other projects on the state highway system. There may also be impacts to the function, capacity, or performance of other transportation facilities in the vicinity resulting from development of the site. In order to achieve conformance with OAR 660-012-0060 for purposes of this proposal, land uses on the Juniper Ridge site will be limited to be consistent with the function, capacity, and performance standards of existing transportation facilities in the vicinity. This limitation will be achieved through existing policies of the Bend Area General Plan and implementing ordinances that require substandard transportation and other public facilities to be improved as needed in order to accommodate proposed new development (see TSP Street System General Policies 5 and 6, and Zoning Ordinance Sec. 10.10.23[6] and [8]). When new development is proposed on the Juniper Ridge site (after it has been brought inside the UGB and zoned for light PAGE 13 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" industrial use) these measures and Sec. 10-16.2 of the Bend Land Use Permit and Review Procedures Ordinance will require that a detailed traffic impacts analysis be prepared, taking into account the type of use being proposed and its likely impacts on transportation facilities in the vicinity. If this analysis finds that improvements to any of these facilities will be needed to achieve consistency with their planned function, capacity, and performance standards, TSP Street System General Policies 5 and 6, and Zoning Ordinance Sec. 10. 10.23 (6) and (8) will require completion of these improvements at the time of development. CONCLUSION: Through existing provisions of the TSP, General Plan policies, and implementing ordinances, Goal 12 is satisfied for purposes of bringing the Juniper Ridge site into the UGB and designating it for light industrial uses. Following this action, land uses and development activity on the site will be limited to be consistent with the planned function, capacity, and performance standards of transportation facilities in this vicinity. Orep-on Statewide Planning Goal 14 (OAR 660-015-0000(141) The Bend UGB was acknowledged in 1981 according to the requirements of statewide planning Goal 14 - Urbanization. Amending the UGB requires that this goal be applied again. Goal 14 states the factors that must be considered in evaluating a UGB amendment are: Urban growth boundaries shall be established to identify and separate urbanizable land from rural land. Establishment and change of the boundaries shall be based upon consideration of the following factors: 1. Demonstrated need to accommodate long range urban population growth requirements consistent with the goals; 2. Need for housing, employment opportunities and livability; 3. Orderly and economic provision for public facilities and services; 4. Maximum efficiency of land uses within and on the fringe of the existing urban area; 5. Environmental, energy, economic and social consequences; 6. Retention of agricultural land as defined, with Class lbeing the highest priority for retention and Class VI the lowest priority; and 7. Compatibility of the proposed urban uses with nearby agricultural activities. The results of the above considerations shall be included in the comprehensive plan. In case of a change of a boundary, a governing body proposing such change in the boundary, separating urbanizable land from rural land, shall follow the procedures and requirements as set forth in the Land Use Planning Goal (Goal 2) for goal exceptions FINDINGS: Oregon's land use Goal 14 (Urbanization) and its implementing administrative rule list seven factors that must be addressed as part of an expansion of an urban growth PAGE 14 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" boundary. The seven factors are listed below with their related findings and justifications for the Juniper Ridge site. FACTOR #1— Demonstrated Need To Accommodate Long Range Urban Population Growth Requirements Consistent With The Goals. Between 1990 and 2000 the Bend urban area population increased by almost 20,000 persons. Based on the Deschutes County coordinated population forecast adopted as part of the General Plan in 1998, the UGB population was forecast to increase by another 18,000 persons by the year 2020. A more recent update of Bend's population forecast (not yet adopted as part of the General Plan), envisions some 112,000 residents of Bend by 2025, an increase of over 50,000 in the next 21 years. Most of this increase is expected to come from individuals and families moving into the urban area. The exurban population of Deschutes County near Bend is also forecast to grow during the next 25 years. Factor #I of Goal 14 more directly applies to land that is brought into a UGB for additional housing to meet population growth. However, the population growth also drives a corresponding increase in employment that in turn creates the need for more industrial and commercial land to serve the growing community. From 1990-2001, employment levels in Bend and Deschutes County increased at a faster rate than the population. This pattern is forecast to continue during the next 20 -years. By the year 2020, the Economic Lands Study forecast that more than 21,000 jobs would be added to Bend's current employment level.$ An updated employment forecast estimates a 2025 employment level of 61,374 for the Bend urban area. The expected high rate of job creation is due to a number of factors, including Bend's increasing role as a regional center for Central Oregon, expected statewide and national economic growth, the growing reputation of the Bend area as a highly livable community, the increasing exurban population that works, shops and obtains services in Bend, and increasing disposable household income to spend on goods and services. Additional background information and findings about population and employment growth are contained in Part 1 of the Economic Lands Study, titled, Tends, Inventory, and Forecast. CONCLUSION. There is a clear need for more land for industrial development as demonstrated by the forecast increase both in the city's employment base, and its population overall. FACTOR #2 — Need For Housing, Employment Opportunities And Livability. 8 City of Bend, Economic Lands Study, Part 1, p. 10-11, December 2000. PAGE 15 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" As noted above, the Economic Lands Study includes a forecast estimate of some 21,000 new jobs in Bend during the period 2000-2020. In draft revisions to Chapter 6 of the General Plan (Exhibit C), that estimate has been updated to project an increase in Bend area employment from 35,828 in 2000 to 61,374 in 2025. An adequate industrial lands base will be needed to support this increase in employment. The Juniper Ridge UGB expansion is being proposed for the purpose of making more land available for industrial development. The Juniper Ridge site is not being brought into the UGB in response to a need for additional land for housing. Future employment on this site may lead to an increased demand for housing in the community. Although the Bend Area General Plan is currently in compliance with Statewide Planning Goal 10, an update of the buildable lands inventory for housing is scheduled to be carried out in 2004. That inventory update may find that further adjustment of the General Plan is needed to ensure adequate land areas for long-term housing and overall livability. The findings of the Economic Lands Study (updated with more recent data) as discussed above under Goal 9 findings, support the inclusion of the proposed 513 acres of Juniper Ridge within the UGB to provide for future industrial employment opportunities. Including this site within the UGB will help to diversify the community's and the state's economy and provide land for future family -wage jobs typically associated with manufacturing, research and development, and the trades. CONCLUSION. There is a clear and demonstrated need for more land for industrial development within Bend's UGB to ensure long-term employment opportunities and overall community livability. Inclusion of the Juniper Ridge site within the UGB will help meet this need. FACTOR #3 — Orderly And Economic Provision For Public Facilities And Services Water Service Domestic and fire -flow water for this site will be provided by either the City of Bend municipal water system, or by the Avion Water Company. Avion is a franchise domestic water provider within the urban area. The city has extended a 12 -inch water main to the intersection of Boyd Acres Road and Cooley Road, % mile west of the Juniper Ridge site. In addition to the city water main, Avion Water Company has a 12 -inch line in NE 1811 about 300 feet from the site. These water lines are large enough to serve the area planned for industrial development and any irrigation needs of the open space areas that would be included as part of any industrial campus designs for this site. CONCLUSION. The existing large water lines adjacent to this site will allow for the orderly and economic extension of adequate water service to Juniper Ridge. The size of water mains adjacent to the site will provide adequate water needed to support industrial development. PAGE 16 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" Serving these sites with water to support urban level development will not adversely affect the ability of the City of Bend or the Avion Water Company to serve other areas within the UGB. Sewer Service A four -inch city pressure sewer line serves Sky View Middle School directly across Cooley Road from this site. In addition, Bend's Utilities System Master Plan, adopted in 1992, plans for a 24 to 27 -inch "North UGB" gravity sewer line to run through this property. The North UGB sewer line is a major trunk line that will provide service to all of the north UGB area. Routing this line through the Juniper Ridge site is necessary to maintain a gravity flow line into the city's main sewer interceptor line that goes northeast out of town to the wastewater treatment plant. This large sewer trunk line will provide service for this site. The route for the North UGB sewer line has been surveyed through the site. The City has a separate sewer system fund and constructs sewer system improvements based on the Utilities System Master Plan and its 5 -year capital improvement program. The large sewer trunk line through the Juniper Ridge site is a major facility identified in the Utilities System Master Plan and therefore can be paid for by system development charges. If this site should be developed before the North UGB gravity line is built or if there is a policy change regarding large gravity lines, the Juniper Ridge site can be served by pressure sewer facilities that pump to the Lava Ridge pressure line or to the "Yeoman" sewer interceptor to the east. CONCLUSION. The City's Utilities System Master Plan covers the Juniper Ridge site. It has identified the sewer facilities that are needed to allow this site to develop for industrial uses. The provision of service to this site will not adversely affect the City's ability to serve other areas within the existing UGB. All existing industrial areas already inside the UGB have sewer service. Storm Sewer Because there is relatively little precipitation in Central Oregon there is no system of small creeks or streams within Bend in which to discharge storm waters. The only existing storm sewer system in Bend is an old one that serves the area around downtown and drains into the Deschutes River, far from the Juniper Ridge site. There is no public or private off-site storm sewer system to serve the Juniper Ridge area. Bend's planning and engineering standards require that all storm drainage outside the existing storm sewer system be retained on site through the use of catch basins and dry wells, drainage swales, or retention ponds. These standards will apply to any development of roads and building sites in Juniper Ridge. CONCLUSION. There is no storm water system to be extended into Juniper Ridge. Development taking place within this site would be required to retain storm water run-off on- site using a city -approved system. PAGE 17 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" Transportation System The Juniper Ridge site is located one-half mile east of Highway 97, with direct access to Cooley Road, an urban minor arterial, at the south edge, and NE 18th Street, an urban minor arterial street that currently dead ends at the edge of the Juniper Ridge site. The location of this site at the north end of the urban area will provide good access to serve industrial truck traffic from the Portland metropolitan area and the Willamette Valley. The Juniper Ridge site also has the advantage of potential access to the Burlington Northern — Santa Fe rail line that runs through the corner of the property. Access to a rail line can benefit large site industrial users by providing rail service as an alternative to truck service and as a regional freight distribution center. In the near term, new industrial uses in Juniper Ridge will make primary use of Cooley Rd. to connect with Hwy. 97 and points north and south. As a minor arterial, Cooley Rd. is intended to accommodate traffic volumes that would be generated by initial phases of development in Juniper Ridge. However, as discussed above under Goal 12 findings, the existing intersection of Cooley Rd./Hwy. 97 is near capacity, and will need to be upgraded to a full access interchange in order to accommodate larger -scale or longer-term development in Juniper Ridge. A recently adopted amendment to Bend's TSP (City File No. PZ 03-658) adds this new interchange project to the TSP's list of intersection improvement priorities, designating the improvement for construction in the next five years. As discussed above, under findings relating to Goal 12, the Oregon Transportation Planning Rule (OAR 660-012-0060), requires that any comprehensive plan amendment that significantly affects a transportation facility ensure that allowed land uses will be consistent with the function, capacity, and performance standards of those transportation facilities. One way of doing this is by limiting allowed uses in the area affected by the amendment. The city will limit the allowed uses within Juniper Ridge by requiring specific development proposals on the Juniper Ridge site to determine the extent of impacts to transportation facilities in the vicinity and propose measures to preserve the function, capacity, and performance of affected facilities (see Transportation System Plan Policy 6.9.6 [6], and Zoning Ordinance Sec. 10.10.23[8]). Development proposals that cannot provide needed improvements to transportation facilities will not be permitted until the needed improvements can be made. CONCLUSION. The acts of adding 513 acres of the Juniper Ridge area into the UGB, applying an Industrial Light General Plan designation, and applying an Industrial Light zoning designation to that site will not create levels of travel that would adversely affect the operation or functional classification of the transportation facilities serving this area. New industrial development activity on the Juniper Ridge site will have impacts to transportation facilities. These impacts will be carefully analyzed, and needed improvements will be identified and constructed in connection with new development activity. (See related findings in response to Statewide Planning Goal 12.) PAGE 18 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) 1WK4:II:�Ylfiii� Fire Protection The Juniper Ridge site is currently within Rural Fire District No. 2. The District contracts with the City for fire protection, so areas outside the UGB that are within the Rural Fire District No. 2 boundaries have essentially the same fire protection as property within the city limits. The City's new North Fire Station on Highway 20 is about two miles from the Juniper Ridge site, with access via urban arterials or state highways. In addition to the new fire station, there is an existing east -side fire station on Neff Road that is about five miles from the Juniper Ridge site. Existing water lines in Cooley Road and NE 18th can be easily extended to serve this site. These water lines can provide sufficient flows for fire protection for development in this area. The extension of City of Bend or Avion water system lines and installation of the fire hydrants will provide adequate fire protection for new industrial development in this area. CONCLUSION. The large water lines adjacent to Juniper Ridge will provide adequate water for domestic use and fire protection. The close proximity of existing water lines to the site allows for an orderly and efficient extension of both water facilities and fire protection services. Police Protection The Juniper Ridge site is currently within the jurisdiction of the Deschutes County Sheriff s office. Upon annexation to the UGB police protection will be provided by Bend Police Department. The Bend Police Department currently has a staff of approximately 100 who serve and protect the urban area. The city will be able to provide professional police services to this future industrial area without jeopardizing its current level of service to the city. CONCLUSION. City police services are adequate for the Juniper Ridge site. Inclusion of this site within the UGB and subsequent industrial development will not have a significant impact on the provision of police services in this area. Schools The proposed IL zoning of this site is intended to accommodate primarily new industrial development. The IL zone does not permit new housing, except for a caretaker's residence. Therefore, there will be no direct impact to provision of public school services. In 2000 the Bend La Pine School District initiated a multi -agency Sites and Facilities 2000 committee to evaluate the need for new schools to serve the district population. The Juniper Ridge. site was not identified in that study as an area in which the school district is looking to build new schools. PAGE 19 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" There are two public schools located across Cooley Rd. from this site, Lava Ridge Elementary School and Sky View Middle School. These schools may be affected by increased traffic volumes on both Cooley Rd. and 18'' St. as development occurs. As discussed above, any future development proposal on the Juniper Ridge site will need to be accompanied by a traffic impact study which will identify potential impacts and propose measures to mitigate those impacts. In addition, the City of Bend is in the process of creating a site development plan for the Juniper Ridge industrial site. This planning project will include consideration of potential impacts to these schools in designing the site plan. CONCLUSION: Inclusion of the Juniper Ridge site within the UGB and subsequent industrial development will not have an identifiable impact on the provision of public educational services in this area. Potential impacts to Lava Ridge Elementary School and Sky View Middle School will be evaluated prior to development of the Juniper Ridge site. FACTOR #4 — Maximum Efficiency Of Land Uses Within And On The Fringe Of The Existing Urban Area. Part Two of the Economic Lands Study, titled Part 2: Meeting Forecast Needs, evaluated several planning and zoning tools to be considered for providing efficient land use within and on the fringe of the urban area. In addition to planning and zoning tools to use land more efficiently, a number of alternative sites inside and outside the UGB were considered as possible sites to meet the forecast need for more industrial land. Each site was carefully evaluated against the requirements of the Statewide Planning Goals. Based on this evaluation, the City determined that the Hunnell Road and the Juniper Ridge sites, both just north of the UGB, are needed to meet Bend's long-term economic development objectives. Both sites are adjacent to the UGB, and will provide for logical, efficient, and continuous development of the urban area. Given the characteristics of these sites, and their evaluation for urban industrial uses, as documented in Part Two of the Economic Lands study, annexation and development on either site cannot be considered "urban sprawl" or "leap -frog" development. Site Configuration and Development Potential The Juniper Ridge site proposed for inclusion in the UGB is contiguous with the current UGB for a distance of .75 miles on the west, and .25 miles on the south. Pilot Butte canal runs from south to north through this City -owned property, and forms a logical topographic boundary at the east edge of the expansion area. With the north boundary of the expansion area being formed by the north line of Section 10, the overall shape of the Juniper Ridge site is generally rectangular. This configuration, along with the total size of the site, will allow for maximum efficiency of future industrial uses. A number of significant rock outcroppings and other geographical constraints have already been identified within the site, in the 1992 planning work done by the Mitchell Nelson Group9. The size and configuration of this site will allow for future streets and 9 Industrial Land Analysis and Industrial Area Master Plan; Mitchell, Nelson Wellborn Reimann Partnership, PAGE 20 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" utilities to be installed in a manner that minimizes disturbance of these areas, while providing for maximum utilization of flatter portions of the site for industrial and supportive uses. Lack of Large Sites The inventory of buildable industrial land prepared for the ELS shows that the larger privately -owned industrial parcels already inside the Bend UGB are being subdivided at a rapid rate into smaller parcels to meet near-term market demands. 10 When the inventory was initially conducted in 1999 there were only seven industrial parcels within the UGB that were ten acres or more in area. Since the 1999 inventory was prepared, several more of these sites have been subdivided into small lots. It is now estimated that there are only five parcels inside the UGB, zoned for industrial use, that are ten acres or larger in size. The Bend Chamber of Commerce, industrial land realtors, and local economic development groups have pressed upon the city the need to have larger parcels available to meet future large site users. With few large sites in the local industrial land inventory the city is extremely limited in its ability to retain local firms that need to expand or to attract new firms that need larger sites. Within the last three years, EDCO (Economic Development for Central Oregon) estimates that its staff has been contacted by an average of 10-12 industrial firms per year expressing interest in locating in the Bend area, but requiring sites larger than 10 acres. 11 The lack of suitable, large -lot industrial parcels has caused these firms to look in other communities for sites that meet their needs. EDCO staff also reports that there is an on- going risk of losing existing Bend -area businesses that may need large -lot industrial sites to accommodate expansions. The need for larger parcels as a component of a city's industrial lands inventory has also been identified by other Oregon communities. For example, in a 2002 study Metro forecasted demand for industrial parcels of all sizes in the Portland metro area over a 20 -year period. 12 During that forecast period, Metro estimates that of the total acreage demand for industrial land, approximately 40% will be for parcels that are from 10 acres to over 100 acres in size .13 Approximately 20% of the total acreage demand will be for parcels over 25 acres in size. 14 While the scale of Bend's demand for vacant industrial land is obviously smaller than that of the Portland metro area, it is just as much in Bend's interest to have a meaningful portion of its industrial lands inventory in large parcels. Following is a summary statement from the same Metro report on the importance to the local economy of accommodating larger employers needing larger parcels: Portland Oregon, August 1, 1992. 10 See Appendix A to the city's Economic Lands Study, Part 1: Trends, Inventory, and Forecast, December 2000. 11 Telephone interview, Roger Lee, Director, Economic Development for Central Oregon, December 10, 2003. 12 2002-2022 Urban Growth Report: An Employment Land Need Analysis; Metro, Portland, Oregon; August, 2002. 13 Ibid., p. 23. 14 Ibid. PAGE 21 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" Large lot industrial need plays a unique role in this region as a catalyst or multiplier that produces second- and third- order economic growth. Large employers, obviously, hire many workers and also produce enormous direct wealth -effects. In addition, second order effects of large employers attract subsidiary growth known as indirect job creation. This effect attracts suppliers, wholesalers and other related up and downstream manufacturers. The third -order effect, known as induced income effect, are multiplier effects created from employed workers who go about their daily lives of buying and consuming everything from food, clothing, shelter and entertainment. Thus there are significant impacts derived from the multiplier effect of large manufacturers. 15 Because there are no identified sites within the UGB that meet Bend's siting criteria (as documented in Part 2 of the ELS) for additional industrial land, and due to the need for a large industrial area, UGB expansion is necessary. Efficiency of land use will be well -served by approving this UGB amendment for land that abuts the existing city limits, can connect with existing urban infrastructure, and which will be efficiently developed according to a master plan. The Juniper Ridge site is an area where large lot sizes can be assured because of its ownership by the City of Bend, and the commitment by the city to hold part of the site for large lot users by applying a large minimum lot size. Draft General Plan policies to be adopted as part of this action (Exhibit D) will require that at least 30% of the Juniper Ridge site's net buildable area be allocated to creation of industrial sites at least ten acres in size. Because of numerous rock outcroppings on the site, the area with the fewest outcroppings and the flattest ground needed for larger lots appears to be in the center and northeast part of the area proposed to be brought into the UGB. This area provides the most efficient location for new industrial development providing access to rail, not readily available elsewhere; providing close access to the Redmond Regional Airport; and providing good ties to the regional highway system. This is one of two sites that will provide the community the opportunity to assure that large industrial sites are available for the community. Because Juniper Ridge is City -owned, and as directed by the draft policy included in Exhibit D, there is assurance that large industrial parcels created on this site will remain large. CONCLUSION. The goal of "maximum efficiency of land use" will be well served through this UGB expansion. The Juniper Ridge site capitalizes on major public and private investments that have already been made in water, sewer, roads, and fire protection measures to serve the growing north end of Bend. This site also has attributes that make it well suited for creation of large -lot industrial sites. 15 Ibid. p. 25. PAGE 22 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) I0,140,1I7116ii1 FACTOR #5 - Environmental, Energy, Economic And Social Consequences. The ESEE consequences of converting rural land to urban industrial use are described in the following sections. Some of this evaluation is subjective as there are few clear, measurable standards by which to measure the positive and negative effects of development. Environmental Consequences According to information provided to the City by the Oregon Department of Fish and Wildlife 16 as part of the Goal 5 periodic review work task, the Juniper Ridge site is not in a designated deer or elk winter range area, or in a big game habitat area. No known critical habitat or nesting areas for threatened, endangered, or sensitive species has been identified on this site. The Bend Urban Area is in attainment for state and federal air quality standards. Adding the 513 gross acres of Juniper Ridge into the UGB will not cause the area to exceed existing air quality standards. With the changing national and regional economy, the older resource- based "smokestack" industrial firms that might pose a potential threat to air quality are unlikely to develop on Juniper Ridge, or elsewhere in Bend. 17 More efficient manufacturing businesses and high-technology firms are replacing these types of companies, and these are the types of firms likely to locate in Juniper Ridge. In addition, any firm that has manufacturing by-products that may be considered hazardous or to affect the quality of air would be regulated by the Oregon Department of Environmental Quality. The City is in compliance with applicable state and federal water quality standards. Use of setback buffers or other means can protect the COI irrigation canal that runs through this site. Similarly, building setbacks and buffers along the canal can be used to control any potential adverse water quality impacts to the irrigation canal during construction and operation of industrial developments. Nothing is expected to develop on the Juniper Ridge site that would adversely affect water quality in the community. The city's sewerage treatment plan complies with DEQ rules and regulations. The City maintains and enforces an ordinance that requires the pretreatment of industrial wastes before they are discharged into the sanitary sewer system. This addition of some 338 net industrial acres to the UGB will not cause the city to violate its sewage treatment standards and agreements. The Juniper Ridge site is not listed on any adopted natural resource inventory. An analysis 16 Letter and map from Steven George, ODFW Deschutes District Wildlife Biologist, September 22, 2000 17 For more information on this point see section 3.3 in Economic Lands Study Part 1 - Trends, Inventory and Forecast. PAGE 23 OF 38 - EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" of the Juniper Ridge site by Fishman Environmental Services in 199118 did not identify any threatened or endangered species within this site. The Juniper Ridge site is not within areas mapped by ODFW as deer, elk, or antelope winter range. In addition, this site is not listed as a significant resource on any adopted Goal 5 natural resource inventory. 19 The landscape at the site is varied with many lava pressure ridges, outcroppings, and the Pilot Butte Canal. The Pilot Butte Canal is a seasonal canal that has no associated riparian or wetland habitat areas. The Fishman inventory identifies several native plant communities associated with rock out-croppings on the west side of the Pilot Butte Canal. Although not significant under state or federal law, these plant communities can be more precisely located and incorporated into the master planning that will take place for the Juniper Ridge industrial site. Social Consequences: Bringing these 513 gross acres into the UGB will be the first step in converting under -used vacant land to industrial uses and related, supportive uses. By providing land for future industrial uses, the city will encourage the creation of jobs that generally pay more than most retail and service jobs. Higher household wages will have a positive social consequence by maintaining or improving living standards, and by increasing disposable income for goods and services including health care services. Conversion of these lands to industrial use may also introduce activity, noise and light impacts to an area that has minimal or no existing development. One-half mile west of Juniper Ridge, however, intensive commercial development is already within a short distance of the neighborhoods and rural residential uses to the west and south of this site. These existing commercial uses — motels, gas stations, big box retailers and golf driving range with night -lights — already have generated impacts to the nearby areas. Although the Juniper Ridge site is in an undeveloped natural condition, it is not fenced and is often used by area residents for dog walking, jogging and similar passive recreation activities. It is anticipated that a future master plan for the Juniper Ridge site will include walking trails and open space that will be open to the public. One potential social consequence of developing the Juniper Ridge site will be adding new development near existing residential areas and the loss of open space. At the Juniper Ridge site, any future master plan for development will include open space areas to assure compatibility with adjacent urban and suburban residential property. When ownership of Juniper Ridge was conveyed to the City by Deschutes County in 1990, a condition of this conveyance called for reserving undeveloped land on the site. This condition was updated by 18 See Economic Lands Study, Part 3: Alternative Site Analysis and UGB Expansion, December 2000, Exhibit D. 19 See Economic Lands Study, Part 3: Alternative Site Analysis and UGB Expansion, December 2000, Exhibit C. PAGE 24 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" action of the Deschutes County Board of Commissioners on December 17, 2003 (County Order No. 2003-119). The county's updated order specifies that at least 10% of total site area must be reserved for public park and/or open space uses. By maintaining wide natural buffer areas and placing development away from urban residential areas the city will mitigate the impacts of activity, noise and light on adjacent areas. In addition to natural buffers, various city codes regulate the placement of lights, parking and maneuvering areas, and site screening as necessary to reduce impacts between different land uses. As noted above, future development of the Juniper Ridge site will increase traffic on Cooley Road and NE 18th Street, both minor arterial streets. As discussed above, detailed analyses of the extent of impacts to these and other transportation facilities will be carried out prior to permitting industrial development on the Juniper Ridge site. It is anticipated that a variety of improvements will be necessary to ensure safe vehicle and pedestrian traffic in the vicinity as development occurs. At present, Juniper Ridge is unofficially used as a site for rifle and pistol target practice and speed shooting at the expense of innocent appliances, junipers, and small wildlife. The development of this site will terminate these activities and force people using Juniper Ridge for such uses to find new sites. Persons needing to find new sites for weapon use may face a social consequence of added stress to find a new site, and added energy and economic consequences of driving further out of the urban area. There will be less stress on residents living next to Juniper Ridge with the termination of target practice and other gunplay when Juniper Ridge is developed. Economic consequences: By adding Juniper Ridge to the inventory of vacant, urban industrial land, Bend will increase the supply of land to provide needed jobs and economic development opportunities during the planning period. Industrial sector and wholesale trade jobs generally have higher salaries than retail and many service jobs, and these jobs will help maintain income levels. The act of amending the UGB to include more land for industrial development will result in positive economic consequences for Bend as it meets the need for industrial sites in the changing industrial development market. Based on an average of 12 industrial employees per acre, this site has the potential to accommodate more than 4,000 industrial sector jobs. Equally important, the size of the Juniper Ridge UGB expansion presents the opportunity for creation of desperately needed large and very large industrial development sites (i.e. over 25 acres). The Juniper Ridge site has never been farmed nor used for grazing. It has no water rights. There is no economic loss of agricultural products or revenue from the use of this site for industrial development. PAGE 25 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D„ Energy Consequences: The Juniper Ridge site is located near two major state highways, Highway 97 and Highway 20. The proximity of these highways and the Bend Parkway will allow more direct and energy efficient access to this site. Juniper Ridge and the Hunnell Rd. site, west of Hwy. 97, offer the most direct access to regional transportation facilities of any of the alternative sites evaluated for meeting Bend's need for at least a 20 -year supply of industrial land. In addition, these sites at the north end of town provide more direct and energy efficient access for truck traffic to and from the Willamette Valley, Redmond and the Portland area. Trucks serving firms in these two areas and will not have to drive into the middle of the urban area where there is more traffic congestion that could lower truck speeds and increased idling time. Future industrial development in the Juniper Ridge site can also benefit from close proximity to supportive commercial services along Highway 97 and Highway 20. This site is well connected to the local arterial street system that provides energy efficient travel for employees and other service providers. CONCLUSION. Inclusion of the Juniper Ridge site within the Bend UGB will have insignificant environmental impacts that can be mitigated through appropriate site planning and/or compliance with DEQ regulations. Any development in the area to be annexed will have no significant adverse energy consequences. By adding land for manufacturing, research and development, and other industrial businesses the community will be able to add jobs to keep pace with expected population growth. New industrial jobs in this area will provide a positive economic impact and positive social consequences by providing better paying jobs. Impacts to adjacent areas can be mitigated through setback buffers and city development codes. FACTOR #6 — Retention Of Agricultural Land As Defined, With Class I Being The Highest Priority For Retention And Class VI The Lowest Priority. The Juniper Ridge site was transferred from BLM ownership to Deschutes County in 1983. The county transferred title to the land to the City of Bend in 1990. The Juniper Ridge site is undeveloped land without any dwellings or improvements such as fencing or irrigation ponds. The predominant vegetation types are junipers, bitterbrush, sagebrush and bunchgrass. The terrain is broken with many lava outcropping and pressure ridges of five to twenty feet in height. There are two soil types at the Juniper Ridge site. The Gosney-Rock Outcrop-Deskamp soil complex covers about 90 percent of the area to be brought into the UGB. The Deskamp- Gosney complex covers about 5 percent of the site in the southwest corner of the site. PAGE 26 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) 1:0114 soll-6,11M "S The Gosney-Rock Outcrop-Deskamp soil group (SCS #58C) is characterized by shallow, very stony loam sand soils over basalt bedrock with slopes of 0 —12 percent. Within the soil group, the Gosney component makes up about 50 percent of the land, the Rock Outcrop component covers 25 percent of the area, and the Deskamp part makes up about 20 percent. Because of the shallow well -drained soil and rock outcroppings, the major agricultural use for the Gosney-Outcrop-Deskamp soil is grazing. The Juniper Ridge site has never been actively farmed, and BLM records indicate that there has never been any grazing in the area to be added to the UGB. The Gosney-Rock Outcrop-Deskamp soil complex has a SCS Class VIIs and VIIIs capability rating without irrigation. 20 These agricultural capability ratings are the least productive agricultural soils and do not meet the definition of "Agricultural Land" in Goal 3. If irrigated, the SCS classification becomes IVs, which meets the definition of agricultural land. However, the site does not have irrigation water rights. Even if water rights were to be secured for this site, the rock outcroppings and topography do not make it feasible to set up and move irrigation pipes for pasture. The high cost of clearing the rocky terrain makes hay production infeasible. Given these topographic and geologic constraints, the site cannot be productively farmed as a unit or in conjunction with another farming operation. The fact that the site has never been farmed supports this conclusion.21 The other soil type at Juniper Ridge is the Deskamp-Gosney soil complex (SCS #38B). This soil type is similar to the Gosney-Rock Outcrop-Deskamp soil, but has fewer rock outcrops and is less steep. Major agricultural uses are livestock grazing and irrigated cropland. This soil complex has a Class VIe rating without irrigation, and a Class IIIe with irrigation. Management limitations with this soil are shallow soil depth, rapid permeability, and loss of unprotected soil due to wind erosion. The small number of acres of this slightly better but still poor soil (approximately 20 acres), and the fact that it is completely surrounded either by urbanized land or the remainder of the site with the Gosney-Rock Outcrop-Deskamp soil group makes it impracticable to farm as a unit, or in conjunction with another farming unit. Again, the lack of any farming history on the site supports this conclusion. Although Juniper Ridge has never been used for agricultural purposes, the conversion of 513 acres to urban use requires an exception to Goal 3, the agricultural lands goal. Additional material on the Goal 3 exception is provided below. CONCLUSION. The portion of Juniper Ridge to be brought into the UGB and annexed into 20 See General Soil Map with Soil Interpretations for Land Use Planning, Deschutes County, Oregon, Soil Conservation Service - US Department of Agriculture, 1973 (m7 -L-22770). Gosney-Rock Outcrop —Deskamp (58C) is the predominant soil type on the site. 21 See letter from Michael Bauer, Deschutes County extension service agent, May 11, 1992, attached as Exhibit B to Part 3 of the Economic Lands Study. PAGE 27 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" the city for future industrial development does not have prime or high priority soil types that support significant agricultural production. The soils in this area do not meet the definition of agricultural soils or are poor quality agricultural resource lands. Conversion of these lands from vacant rural land to industrial land will not affect the agricultural activities or revenues in Deschutes County. FACTOR #7 — Compatibility Of The Proposed Urban Uses With Nearby Agricultural Activities. To the west of the Juniper Ridge site is the Bend UGB with existing or planned urban residential uses. There are no agricultural activities or uses to the west of the site. On the south side of the site there are two public schools inside the city limits and rural residential development with 2 %2 acre minimum lot sizes. There are no nearby agricultural activities to the south of this site. The Pilot Butte Canal defines the eastern boundary of the Juniper Ridge annexation site. On the other side, further east of the canal, is another '/ to 'h mile of city -owned land that was transferred to the city from the county. This land is unimproved and not used for any agricultural purposes. This City -owned land has the same Gosney-Rock Outcrop-Deskamp soil type that is not suitable for grazing or farming, so it is unlikely that agricultural uses would develop in this area in the future. This additional city land east of the canal provides an effective 1,300 to 2,600 foot wide buffer between the future urban industrial uses anticipated for Juniper Ridge and the smaller properties along Deschutes Market Road. The northern boundary of the site abuts property that is also under city ownership, and composed of Class VIIs soils that are not irrigated or farmed. Since there is little prospect that future farming or grazing will occur on the site in the absence of irrigation, there would be no adverse impacts resulting from conversion of the site from rural to urban industrial use. CONCLUSION. The conversion of the Juniper Ridge site to urban use will not have an adverse impact on any actively farmed agricultural land. There are no "nearby" agricultural activities, and the combination of urban level development, rural residential uses or adjacent open space around each site will ensure compatibility with even distant agricultural activities. There is no evidence to suggest that there will be any adverse impact on agricultural operations from including this land within the UGB. The County's EFUAL zone will remain in effect on the remainder of the City -owned acreage to the north of the Juniper Ridge site. ORS 197.298 ORS 197.298 establishes a priority ranking for land that is to be brought into an urban growth boundary. Under section (1) of the law, the first priority is land that is designated as an urban PAGE 28 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" reserve area. The next priority is for areas in which the county has already taken an exception to the resource land goals, or for resource land that is completely surrounded by exception areas. The third priority is for land that has marginal resource value, and the last priority for land to be brought into the UGB is for land designated for agriculture or forestry. The law also explains how land of a lower priority (i.e. land of second, third, or fourth priority) can be considered over higher priority land. ORS 197.298(3) states: Land of lower priority under subsection (1) of this section may be included in an urban growth boundary if land of higher priority is found to be inadequate to accommodate the amount of land estimated in subsection (1) of this section for one or more of the following reasons: (a) Specific types of identified land needs cannot be reasonably accommodated in higher priority lands, (b) Future urban services could not reasonably be provided to the higher priority due to topographical or other physical constraints, or (c) Maximum efficiency of land uses within a proposed urban growth boundary requires inclusion of lower priority lands in order to include or to provide services to high priority lands. FINDINGS: The Juniper Ridge site is designated as agricultural resource land in the Deschutes County Comprehensive Plan. By simple application of the statutory priorities, this area is classified as "fourth" priority land to be considered for bringing into the urban area. However, for reasons described below, the Juniper Ridge site has many of the attributes of higher priority land. First, this site is not, by definition in Goal 3, agricultural resource land because the soils have a Class VII and VIII agricultural capability ratings. Further, as discussed above under Goal 3 and Factor #6 findings, this site has no irrigation rights, has never been farmed or even used as grazing land, and is impracticable as a farming unit or in combination with another farming operation. Second, this site is part of a larger contiguous area owned by the city, an area of more than 1,500 acres that runs north from Cooley Road almost to Deschutes Junction. In essence, the Juniper Ridge UGB expansion site is surrounded by non-agricultural uses. The Bend urban area abuts this site on the west, and the urban area or urban reserve lands abut the site on the south. To the north and east of the UGB expansion site is adjoining city -owned land with the same Class VII and VIII Gosney-Rock Outcrop-Deskamp soils. The city -owned land is unimproved and not part of a larger agricultural unit. Third, as discussed in Part Two of the Economic Lands Study, other alternative sites evaluated in the urban reserve area (first priority land) did not meet one or more of the PAGE 29 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" specific requirements for additional industrial land. Other higher priority land sites cannot provide the large lot industrial user sites that are planned for part of the Juniper Ridge site due to combinations of parcel size, access to public facilities, impacts to adjacent uses, or other deficiencies. Fourth, except for the Hunnell Rd. site, no other higher priority site in an urban reserve or exception area can meet all of the industrial land needs identified in the ELS. Except for the Hunnell Rd. site, no other site has the combination of large size, direct access to urban arterial roads, proximity to major highways, and fewer potential compatibility issues with adjacent uses. Following are findings in direct response to the priority rankings of ORS 197.298(1): a) The Juniper Ridge site is not designated as urban reserve land. b) The Juniper Ridge site is not designated in the Deschutes County comprehensive plan as an exception area or non -resource land. The site is also not completely surrounded by exception areas. However, the west and south boundaries of the site abut either the Bend urban growth boundary or lands that are designated urban reserve on the Bend Area General Plan map. To the east of the Juniper Ridge site, and north of the adjoining City -owned property are parcels designated on the Deschutes County Comprehensive Plan map as Rural Residential Exception Areas. c) Despite the documented unsuitability of the Juniper Ridge site for farming, it is not designated as marginal land pursuant to ORS 197.247. d) Despite the documented unsuitability of the Juniper Ridge site for farming, it is designated on the Deschutes County comprehensive plan map as Agriculture. As noted, ORS 197.298(3) contains provisions that allow lower -priority lands to be included in an urban growth boundary under one of three circumstances. One of these allows for inclusion within the UGB when "specific types of identified land needs cannot be reasonably accommodated on higher priority lands." The specific land need which is the basis of this proposed UGB expansion is Bend's need for future industrial acreage, including large -lot sites, in order to support a healthy local economy and meet requirements of Goal 9. Part 1 of the Economic Lands Study documents the need for additional land for future industrial development. The ELS also identifies a specific need for large -lot industrial sites; supplemental findings contained in this burden of proof further support that need. Part 2 of the ELS contains an analysis demonstrating that only two sites will meet this specific land need: the Juniper Ridge site and the Hunnell Rd. site. That analysis identified 14 sites within and around the perimeter of the UGB as potentially meeting the specific need PAGE 30 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" for additional industrial acreage and large -lot industrial sites. The industrial site evaluation criteria applied to these sites were as follows: • Direct access to a local arterial or collector street; • Proximity to state highway system; • Proximity to adequate municipal or private water; • Proximity to adequate municipal or private sewer; • Vacant or under -developed land with one or more owners, and minimum parcel sizes of 10 acres; • Proximity to Urban Growth Boundary; • Proximity to existing or planned industrial or commercial areas; • Public or private ownership; • Other mitigating factors, or qualitative conditions. Five of the 14 candidate sites were located within the UGB. Zone changes would be required to make any of them available for industrial use. One of these sites (Site E) is owned by Deschutes County and designated "Public Special District" on the General Plan map. As documented in the evaluation, it is a former landfill site, unsuitable for industrial development. The other four sites inside the UGB are currently zoned for residential use. Re -zoning any of these for industrial use would remove them from the City's buildable lands inventory for housing. Since Bend's current comprehensive plan was adopted in 1998, the city's population growth has been much faster than was forecast. (The July 1, 2003 population estimate of 62,900 is only slightly less than the 63,591 that was forecast for the year 2015.) With this rapid population growth, there has been a corresponding acceleration in the rate at which buildable lands for housing have been developed to meet that growth. Although the city's inventory of buildable lands for housing has not been updated since 1998, there is serious doubt that the 20 -year land supply for housing required under Goal 10 exists inside the UGB at present. Re -zoning any residential lands for industrial use would only exacerbate this problem and likely result in non-compliance with Goal 10. Of the nine candidate sites lying outside the UGB, only the Juniper Ridge and Hunnell Rd. sites have the combination of attributes required to meet Bend's specific need for land that is not only suitable for industrial use, but that can also be preserved in large -lot sites22. While many of the other candidate sites have one or more of these attributes, no other sites have the combination of direct access to major streets, a major state highway, access to public facilities, ownership patterns, sufficient land area, and physical characteristics to buffer new uses from potentially incompatible adjacent uses. CONCLUSION. Although the Juniper Ridge site must be technically considered as a fourth priority site under ORS 197.298, Bend's specific need for additional, suitable industrial land 22 Economic Lands Study, Part 2, Appendix A. PAGE 31 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" where larger lots can also be created and preserved can only be met by two sites. One of these is the Juniper Ridge site. Exceptions Under Oregon Statewide Planning Goal 2 (OAR 660-0040-0010) A governing body proposing to change the Urban Growth Boundary must address the requirements as set forth in the Land Use Planning Goal 2 for goal exceptions. Goal 2 is implemented by OAR 660-0040-0010 for boundary changes. OAR 660-004-0010(1)(c)(B) provides: When a local government changes an established urban growth boundary it shall follow the procedures and requirements set forth in Goal 2 `Land Use Planning' Part II, exceptions.... Revised findings and reasons in support of an amendment to an established urban growth boundary shall demonstrate compliance with the seven factors of Goal 14 and demonstrate that the following standards are met: (i) Reasons justify why the state policy embodied in the applicable goals should not apply (this factor can be satisfied by compliance with the seven factors of Goal 14); (ii) Areas which do not require a new exception cannot reasonably accommodate the use; NO The long term environmental, economic, social and energy consequences resulting from the use at the proposed site with measures designed to reduce adverse impacts are not significantly more adverse than would typically resultfrom the same proposal being located in areas requiring a goal exception other than the proposed site; and (iv) The proposed uses are compatible with other adjacent uses or will be so rendered through measures designed to reduce adverse impacts. These four criteria are repeated and expanded upon in 660-004-0020, Exception Requirements. The following findings address the four standards in Goal 2 and explain how the standards are met by the proposed UGB expansion and annexation of the Juniper Ridge site. FINDINGS: Justification why the state policy embodied in the applicable goals should not apply. The Goal 2 administrative rule at 660-04-0010(1)(c)(B)(i) states that this requirement "...can be satisfied by complying with the seven factors of Goal 14." Findings cited above demonstrate compliance with the seven factors of Goal 14. PAGE 32 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D„ CONCLUSION: The city has satisfied this part of the administrative rule by addressing the seven factors of Goal 14. Areas which do not require a new exception cannot reasonably accommodate the use OAR 660-04-0010 specifically requires examination of alternative areas that could potentially accommodate the proposed use. Although site-specific comparisons are not necessarily required, it must be demonstrated that resource lands are not unnecessarily being converted to urban uses. In other words, this section of Goal 2 requires an explanation of why: (1) the industrial need cannot be met on land that now exists inside the UGB; and (2) industrial need cannot be met in an area that is already committed to non -resource use (i.e. an "exceptions area"). Part Two of the Economic Lands Study considered several zoning techniques that could lead to more efficient industrial land use within the existing UGB and also included an "alternative lands" analysis. 23 In this study the city evaluated 14 sites inside and outside the UGB as possible alternative sites for industrial use. Five of the sites were inside the UGB and nine sites were outside the UGB. Of the nine sites that were outside the UGB, six were within Bend's urban reserve area. These sites are mapped and described in the ELS Part 2: Meeting Forecast Needs. As discussed above, under findings relating to ORS 197.298, all 14 sites were evaluated and scored using nine relevant factors or criteria pertinent to industrial development and the need to provide for large -lot industrial sites. The siting criteria included access to state highways and arterials, parcel size, ownership patterns, adjacent uses and other factors. The two sites that had the highest scores, meaning the only sites having the combination of attributes needed to meet the city's specific need for this type of land, were the Hunnell Road site and the Juniper Ridge site. Of the five candidate sites located inside the current UGB, four are zoned for residential use. Re -zoning any of these for industrial use would remove them from the City's buildable lands inventory for housing. As discussed above, under findings relating to ORS 197.298, any reduction in the city's existing housing lands inventory would almost certainly lead to conflicts with requirements of Goal 10 to maintain an adequate supply of land to meet the city's current and forecast housing needs. The fifth candidate site located inside the UGB (Site E) is designated "Public Special District" on the General Plan Map, and zoned for "Surface Mining." As discussed above, this site is a former landfill and is unsuitable for industrial use due to likely contamination and the potential for settling and below -ground fires. CONCLUSION: An analysis of alternative sites inside and outside the urban growth boundary was prepared in Part Two of the Economic Lands Study. Other sites that do not 23 See Economic Lands Study Part 2 - Meeting Forecast Needs, Section 3. PAGE 33 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" require a Goal 2 exception cannot reasonably accommodate Bend's specific need for more industrial land, based on the analysis and findings contained in that document and cited above. The long term environmental, economic, social and energy consequences The following findings demonstrate why inclusion of the Juniper Ridge site within the UGB, with General Plan and zoning designations of Light Industrial, and with measures designed to reduce adverse impacts, would not have significantly more adverse impacts than having the uses located in other exception areas. (See also the findings on ESEE consequences in response to Goal 14, Factor 5, above.) There will be minimal environmental impacts from developing industrial uses at the Juniper Ridge. This site does not have any Goal 5 significant resources. The wildlife species in this area are typical of those within and on the fringe of the urban area. At the Juniper Ridge site, open space buffer areas and basalt rock outcroppings will be integrated into a master plan for industrial development, and will allow for preservation of native plant species and small animal habitat that could not be assured at other alternative sites. The Part 2: Meeting Forecast Needs portion of the Economic Lands Study evaluated fourteen alternative sites for meeting future industrial land needs, nine of which are in areas that would require an exception. All the sites were evaluated using the same factors such as distance to highways and arterial roads (energy consumption), compatibility with adjacent uses (economic and social impacts), availability and location of public facilities (economic costs), and existing use patterns (social impacts). The Hunnell Road and Juniper Ridge sites scored the highest of the fourteen sites in this evaluation. Although these two sites did not score the highest in all categories, there were no identified measures that would create impacts that were significantly more adverse than would result from development at other exception areas. Compatibility with other adiacent uses. Under this criterion the city must describe how the proposed uses are compatible with other adjacent uses, or will be so rendered through measures designed to reduce adverse impacts. The administrative rule explains that "compatible" is not an absolute term meaning no interference or adverse impacts of any kind with adjacent uses. Potential impacts to nearby agricultural activities resulting from converting the Juniper Ridge site to urban industrial uses are minimized by the site's being at least a quarter mile from the nearest farm or agricultural operations. In addition, the land between the existing agricultural areas and the Juniper Ridge site is undeveloped land owned by the city. In any case, industrial uses and facilities are typically not incompatible with nearby agricultural activities. Abutting the Juniper Ridge site there are residential uses to the west and south. By incorporating open space buffers around these two sides of the site, future industrial PAGE 34 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" developers can reduce the impacts of development on existing residential areas. In calculating the estimated net, buildable acreage of the total 513 -acre UGB expansion, it was expected that at least 50 acres of the total site area would be un -buildable due to the need to provide for this perimeter open space buffering. As noted above, in findings relating to Factor 5 of Goal 14, a Deschutes County order relating to the Juniper Ridge site specifies that at least 10% of total site area must be reserved for public park and/or open space uses. By maintaining wide natural buffer areas and placing development away from urban residential areas the city will mitigate the impacts of activity, noise and light on adjacent areas. In addition to natural buffers, various city codes regulate the placement of lights, parking and maneuvering areas, and site screening as necessary to reduce impacts between different land uses. One of the common impacts to residential areas from adjacent commercial or industrial development is additional vehicle traffic through the residential area, especially truck traffic, resulting from new development. As discussed above, in findings relating to Goal 12, the main access route to and from the site for industrial traffic over the near term will be Cooley Road. Some traffic may also make use of NE 18th Street, which also provides access to Juniper Ridge. Both of these streets are designated in the Transportation System Plan as urban arterials. There are single family residential uses on either side of Cooley Road between the Juniper Ridge site and Highway 97N. Cooley is not currently built to full urban standards. Both compatibility and safety issues for these streets can be addressed through the modernization of Cooley Road and NE 18th St. to City of Bend urban arterial standards with separated sidewalks, planter strips, and planted median. Upgrading of the Cooley Rd./Hwy. 97 intersection will also be necessary, both to accommodate future development of the site and to enhance compatibility and safety for residents of adjacent neighborhoods. A recent amendment to the TSP includes a proposed new interchange to replace the existing Cooley/Hwy. 97 intersection as a project to be designed, funded, and built in the next five- year period. In addition, as discussed above, any future development on the Juniper Ridge site will require the preparation of detailed traffic impact studies addressing all transportation impacts, and proposing measures to ensure conformance with existing General Plan policies and development standards. These policies and standards will require improvements to substandard transportation facilities in the area as needed to accommodate anticipated increases in traffic volumes, ensure safety, and minimize potential adverse impacts to nearby uses. Other Applicable Statewide Planning Goals Goal 5 " Natural Resources" The city is not proposing an exception to compliance with Goal 5. There are no known significant Goal 5 resources on the Juniper Ridge site. Any Goal 5 resources that might be found during the development of the sites will be evaluated using the standards.in the Goal 5 administrative rule. PAGE 35 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" Goal 6 "Air, Water, and Land Resources Quality" The city is not proposing an exception to compliance with Goal 6. Maintaining or improving the quality of the community's air, water and land resources will be assured through enforcement of state and local regulations. Goal 7 "Natural Disasters and Hazards" The city is not proposing an exception to compliance with Goal 7. There are no areas within the Juniper Ridge site that are subject to flooding or landslide activity. The wildfire hazard for the site is the same as other areas with junipers and native brush to the north and east of Bend. By providing adequate water to meet the fire flow requirements of industrial development the city will reduce the potential wildfire hazard in this area. Goal 8 "Recreational Needs" The city is not proposing an exception to compliance with Goal 8. As a side benefit to the industrial development on the Juniper Ridge site the city anticipates including open space areas in the master plan for the site, both for purposes of providing a buffer against adjacent neighborhoods and to allow for potential recreational uses. Goal 9 "Economy of the State" The city is not proposing an exception to this Goal. The purpose of the UGB amendment is to comply with this Goal. The administrative rule for economic development planning requires the city to have at least a 20 -year supply of land for industrial development. As documented in the three-part Economic Lands Study, supplemented by findings in this burden of proof, the only way the city can achieve conformance with Goal 9 is to include more land within the UGB and zone it for industrial use. Goal 10 "Housing" The city is not proposing an exception to compliance with Goal 10. The expansion of the UGB to include the Juniper Ridge site is for the purpose of providing more land for jobs. The most recent housing needs analysis conducted by the city (1995) indicated that there was sufficient residential land within the UGB when the General Plan was adopted to meet the forecast housing needs. There is evidence that this may no longer be the case. However, inclusion of the Juniper Ridge site within the UGB will not result in any reduction of the city's buildable lands inventory for housing. The city will be updating its residential buildable lands inventory in 2004, and may propose additional UGB expansions to meet future housing needs as a result of that update. Goal 11 "Public Facilities and Services" The city is not proposing an exception to compliance with Goal 11. The large water lines and sewer service adjacent to both the Hunnell Road site and the Juniper Ridge site will allow for the efficient and cost effective extension of these needed services to these sites. The city has documented that there are adequate public facilities and services adjacent to the Juniper PAGE 36 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" Ridge site to meet the needs of industrial development at the time such development occurs. Goal 13 "Energy Conservation" The city is not proposing an exception to Goal 13. The location of Juniper Ridge at the north end of Bend could save energy by reducing truck travel to existing industrial areas in the middle of Bend. Any workers from the north coming to future businesses in these areas would also save energy through shorter commute lengths or more efficient carpooling or public transit. CONCLUSION: These proposed amendments of the Bend Area General Plan to expand the Urban Growth Boundary, designate the Juniper Ridge site as "Industrial Light," and make related amendments to the Bend Area General Plan conform with applicable criteria of the General Plan and satisfy applicable requirements of Oregon Statewide Planning Goals, administrative rules, and statutes. PAGE 37 OF 38 — EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "D" Exhibit A Juniper Ridge Ske City File No. PZ 03-565 and PZ 04-02 PAGE 38 OF 38 - EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) 1 i I • PAGE 38 OF 38 - EXHIBIT "D" TO ORDINANCE NO. 2004-017 (08/11/04) EXHIBIT "E" M E M O R A N D U M TO: BEND CITY COUNCIL FROM: BRIAN SHETTERLY, PLANNING MANAGER PETER SCHANNAUER, ASST. CITY ATTORNEY SUBJECT: ADDITIONAL FINDINGS: RESPONSES TO ISSUES RAISED DURING MAY 5, 2004 PUBLIC HEARING — JUNIPER RIDGE (CITY FILE NO. PZ -03-565) DATE: JUNE 16, 2004 The purpose of this memo is to provide additional findings supporting the proposed Urban Growth Boundary expansion relating to Juniper Ridge (referenced above). These findings take the form of responses to new issues raised in testimony provided during the City Council public hearing of May 5, 2004 and in written materials submitted within the 7 - day period following that date, during which the record remained open. 1. Letter from Carol E. Macbeth, 1,000 Friends of Orezon. dated May 11, 2004. This letter objects to the proposed UGB expansion into Juniper Ridge. It asserts that the needs analysis relied on to support the expansion is flawed, and that a need to expand Bend's UGB to provide an adequate supply of industrial land has not been demonstrated. Response: The Economic Lands Study (ELS) contains a detailed analysis of the amount of buildable land considered to be available as of the year 2000 for industrial uses, and an estimate of the amount of buildable acres needed to provide an adequate supply of industrial land to the year 2020. The burden of proof for this proposal and draft amendments to Chapter 6 of the General Plan provide updated estimates of land needed. The conclusion of both the ELS and the burden of proof is that expansion of the UGB is needed and justified to satisfy Statewide Planning Goal 9 and to ensure an adequate, long-term supply of buildable industrial land for Bend. Both the ELS and the burden of proof supporting this proposal also find a special need for an increased City Council Juniper Ridge Memo - June 16, 2004 PAGE 1 OF 4 - EXHIBIT "E" TO ORDINANCE 2004-017 (08/11/04) EXHIBIT "E" supply of large -lot industrial sites. Expansion of the UGB is needed to make adequate provision for these large -lot sites. Staff acknowledges that there are many different ways to carry out the kind of analysis called for by Goal 9. Ms. Macbeth suggests, for example, that the forecast absorption rate for industrial lands used in the ELS (32.2 acres per year) is too high, and should be reduced to only 10.6 acres per year. This is based on an assumed annual absorption rate for the 1997-2003 period. The ELS forecast annual absorption rate is based on rates calculated over a longer period (1985-1998). The time period used to determine historical rates of absorption is only one of many variables that go into this type of analysis. We believe the methodology and assumptions used in preparing the Economic Lands Study are valid, and that they support the Juniper Ridge UGB expansion. Ms. Macbeth's letter demonstrates that it may be possible to adjust variables and assumptions to suggest that Bend's 20 - year industrial land needs can be met entirely within the existing UGB. We do not believe this is the case. In direct contrast to the assertions in Ms. Macbeth's letter, a letter from Roger Lee of Economic Development for Central Oregon supports the findings of the ELS, and states that average industrial land prices have increased by 65% in the past four years due to a shortage of supply. That same letter notes that "Bend has a looming crisis both in terms of supply of industrial land and in terms of price."' The Economic Lands Study has been available for public review and comment since 2001. Its findings and recommendations have been presented and discussed in public meetings before both the City Council and the Planning Commission. Earlier this year, the ELS was the subject of formal public hearings before both the Bend Planning Commission and the Deschutes County Planning Commission. In none of these forums were the conclusions of the ELS regarding the need for UGB expansion called into question. During the February 9, 2004 public hearing before the County Planning Commission, DLCD field staff also acknowledged the need for more industrial land in Bend and testified in support of the Juniper Ridge UGB expansion on behalf of that agency. 2. Letters from Bruce White, dated April 30, 2004, May 5, 2004, and May 12, 2004. These letters contend that the Hunnell Rd. property is superior to Juniper Ridge as a site for future industrial development, and that state law prevents inclusion of Juniper Ridge in the UGB without also bringing the Hunnell Rd. site into the UGB. 1 Letter from Roger Lee, Director of Economic Development for Central Oregon, to Brian Shetterly, dated February 4, 2004. City Council Juniper Ridge Memo - June 16, 2004 PAGE 2 OF 4 — EXHIBIT "E" TO ORDINANCE 2004-017 (08/11/04) 2 EXHIBIT "E" Response: Staff disagrees with the contention that state law requires both Hunnell Rd. and Juniper Ridge to be brought into the UGB, or that Juniper Ridge cannot be brought into the UGB unless the Hunnell Rd. site is also brought in. It is true that the Economic Lands Study contains findings justifying inclusion of both sites in the UGB. However, the ELS concludes with a recommendation that a total of 245 acres be added to the UGB to provide for an estimated 20 -year supply of industrial land. That acreage need will be more than met with the proposed inclusion of some 513 gross acres (approximately 338 buildable acres) of Juniper Ridge in the UGB. The 35 gross acres of the Hunnell Rd. site are not needed to achieve a 20 -year supply of industrial land, as required by Goal 9. Although both sites were included in a single, unified analysis of future industrial land needs, state law does not prohibit expansion of the UGB into a lower -priority site, such as Juniper Ridge, provided the necessary findings are made to justify such an expansion (see ORS 197.298[31). These findings are made for Juniper Ridge both in the ELS and in the burden of proof supporting inclusion of Juniper Ridge in the UGB. The ELS and the City's burden of proof demonstrate that there is a special need in Bend for large industrial parcels, i.e. sites over 10 acres in size. Although it may be possible to create one or two of these large parcels on the Hunnell Rd. site, the potential for large -lot industrial sites is much greater on the larger Juniper Ridge site, in a manner which makes more efficient use of land. The Juniper Ridge site is in public ownership, assuring more control over impacts on neighboring properties. It is subject to a covenant with the prior owner (Deschutes County) that a public process be implemented involving neighbors in the planning and development of a site plan for the property. The larger size of the Juniper Ridge site permits much greater buffering from adjacent uses than can be accomplished on the Hunnell Rd. site. Finally, both sites are adjacent to residential properties, although the properties abutting Juniper Ridge to the west have a more urban character, as these residential lots are significantly smaller. 3. Letters from Paul Dewey, dated May 3, 2004, May 5, 2004, and May 12, 2004. These letters support bringing Juniper Ridge into the UGB, as a more suitable site for future industrial uses than the Hunnell Rd. site. Among other points, Mr. Dewey suggests that the scoring for the Hunnell Rd. site contained in the ELS is incorrect, and that when needed corrections are made Juniper Ridge becomes the highest-ranking site of those evaluated for meeting future industrial land needs. Response: Staff agrees that the alternative sites ranking contained in Part 2 of the ELS is in error in finding the Hunnell Rd. site to be higher City Council Juniper Ridge Memo - June 16, 2004 PAGE 3 OF 4 - EXHIBIT "E" TO ORDINANCE 2004-017 (08/11/04) 3 EXHIBIT "E" ranked than Juniper Ridge (63 pts. for Hunnell Rd., and 61 pts. for Juniper Ridge) . The Hunnell Rd. site is directly served by a major collector street (Hunnell Rd.) rather than by an arterial street (Cooley Rd.). Under the scoring system of the ELS, this correction would reduce the points total for Hunnell Rd. by 2 points to 61, the same total as for Juniper Ridge. It may also be reasonable to reduce the point total for Hunnell Rd. somewhat further as a result of strong neighborhood opposition to proposed inclusion of the Hunnell Rd. site in the UGB for industrial development. This type of known opposition was accounted for as a "mitigating factor" in the scoring for several other candidate sites evaluated in Part 2 of the ELS. Making a similar adjustment to scoring for the Hunnell Rd. site would leave Juniper Ridge as the highest ranking (most suitable) of the 14 alternative sites evaluated in the ELS for meeting the identified future industrial lands need. City Council Juniper Ridge Memo - June 16, 2004 PAGE 4 OF 4 — EXHIBIT "E" TO ORDINANCE 2004-017 (08/11/04) 21