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2005-742-Order No. 2005-027 Recorded 5/26/2005DESCHUTES COUNTY OFFICIAL RECORDS REVI D NANCY BLANKENSHIP, COUNTY CLERK C} Ydd 2005-N2 COMMISSIONERS' JOURNAL 05/26/2005 03:57;02 PM -1 LEGAL COUNSEL I I I I I I II IIII I II I III I (III BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Order Approving a Waiver of Land Use Regulations to Authorize Bruce Meland to Use * ORDER NO. 2005-027 the Subject Property as Allowed When the Property was Acquired WHEREAS, On November 2, 2004, the voters of the State of Oregon approved Ballot Measure 37 which added provisions to Oregon Revised Statutes (ORS) Chapter 197 to require, under certain circumstances, payment of just compensation to landowners if a government land use regulation reduces property value. In lieu of just compensation, Ballot Measure37 authorizes the governing body of a local government to modify, remove or not apply the land use regulation, and WHEREAS, Bruce R. Meland has made a timely demand for compensation under Measure 37 for a reduction in value to his property at 63690 Pioneer Loop, Deschutes County, Oregon due to regulations which took effect after Bruce Meland acquired this property, and WHEREAS, Section 8 of Measure 37 authorizes the Board, as the governing body responsible for adoption and enforcement of County regulations, to not apply the identified land use regulation that restricts the owner's use and reduces the value of the property; and WHEREAS, the Board has received the report and recommendation of the County Administrator as required by DCC 14.10.090; and WHEREAS, the Board has considered the Administrator's report and the evidence presented by the parties at a Board meeting as required by DCC 14.10.090; and WHEREAS, the Board makes the following findings of facts and conclusions; 1. On February 1, 2005, Bruce R. Meland ("Claimant") filed a Measure 37 claim' with the Community Development Department. 2. Claimant's property at 63690 Pioneer Loop is within Deschutes County. 3. The County Administrator has recommended that the claim is claim eligible, and that current, MUA-I0 zoning for the subject property at 63690 Pioneer Loop not be enforced in lieu of payment of just compensation to Claimant. The Administrator's report is attached and incorporated by reference into this Order as Exhibit "A." 4. The Board concurs with the Administrator's report that Bruce R. Meland is the current owner of the subject property described in Exhibit "B," having acquired an interest and continually owned an interest since August 30, 1966. PAGE 1 OF 3- ORDER NO. 2005-027 (05/25/05) 5. The Board concurs with the Administrator's report that the current zoning for the subject property is MUA-I0, which would not permit a land division of this subject property. This land use regulation is not exempt from Measure 37 claims. 6. The Board concurs with the Administrator's report that an application for a land division of the Claimant's property subject to MUA-10 zoning would be denied. Therefore, such an application to determine enforcement of the current zoning to the Claimant's property would be futile. 7. There was not zoning at the time Claimant acquired the property. 8. The Board concurs with the Administrator's report that there is a conflict in the evidence about the size of the subject property. The evidence most favorable to the Claimant is that the subject property is 10 acres. 9. The Board concurs with Administrator's report that claimant has demonstrated that domestic water, septic, and road access for the desired use of an additional residential lot on the subject property are feasible. Therefore, there is substantial evidence that the desired use that is the basis for the alleged reduction in value is feasible for water, septic and road access. Despite the lack of a precise amount of reduction in value, the denial of an additional lot on the subject property would be a substantial amount of reduction in fair market value. THE BOARD OF COUNTY COMMISSIONERS OF DESTCHUTES COUNTY, OREGON, HEREBY ORDERS as follows: Section 1. The Board hereby determines, based on these findings and conclusions and the Administrator's report in Exhibit "A," that the Meland claim is eligible under DCC 14.10.100. Section 2. The Board hereby elects to not apply current MUA-10 zoning to the subject property described in Exhibit "B" in lieu of payment of just compensation under Ballot Measure 37. Claimant is hereby authorized to use the subject property as permitted at the time the owner acquired the property. Claimant may apply for land division of the subject property consistent with the regulations in effect at the time he acquired the property. That use shall be permitted if the subject property fully complies with the regulations in effect on August 30, 1966. The Community Development Director is hereby authorized to determine the effects that any other non-exempt regulations in effect on this date would have on Claimant's proposed development differently than current non-exempt regulations. Section 3. This Order is a waiver of a non-exempt County land use regulation from a property determined to be claim eligible as defined in DCC 14.10.020(0). Section 4. A STATE OF OREGON WAIVER MAYBE REQUIRED FOR THE DEVELOPMENT OR USE OF THE SUBJECT PROPERTY. THIS WAIVER APPLIES ONLY TO THE LOCAL REGULATIONS SPECIFIED ABOVE. DESCHUTES COUNTY LACKS THE AUTHORITY TO WAIVE ANY STATE REGULATIONS OR LAWS. STATE LAWS AND REGULATIONS MAY APPLY TO THE USE OF THE PROPERTY DESCRIBED HEREIN, AND A WAIVER OF SUCH LAWS AND REGULATIONS MUST BE SEPARATELY OBTAINED BY THE OWNERS FROM THE STATE OF OREGON. Section 5. This order does not affect any land use regulations of the State of Oregon. If the use allowed by Section 2, above, remains prohibited by a State of Oregon land use regulation, the Planning Director shall send notice of the Board's decision to the Director of the Department of Land Conservation and Development. The notice shall include a statement that the County will not accept an application for a building permit related to the newly allowed use on the property until the earlier of the following events: (i) notice by the Department of PAGE 2 of 3- ORDER No. 2005-027 (05/25/05) Land Conservation and Development that it concurs with the Board's decision, or (ii) a date 180 days from issuance of the Board's decision where no response is made to the notice by the Department of Land Conservation and Development. Section 6. This Order shall be recorded in the Deschutes County Deed Records together with portions from the deed or other instrument in Exhibits A and B sufficient to identify the subject property for recording purposes. DATED thin: day of May, 2005. BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNT', OREGON TOM DEWOLF, Chair ATTEST: Recording Secretary D IS R. LUKE, Y, Cojhmissi PAGE 3 OF 3- ORDER No. 2005-027 (05/25/05) Deschutes County Department of Administrative Services 1300 NW Wall St., Ste. 200, Bend, OR 97701-1947 (541) 388-6570 Fax (541) 385-3202 - www.deschutes.org TO: Board of County Commissioners From: Michael A. Maier, County Administrator RE: Measure 37 Claim - Bruce Meland 63600 Deschutes Market Road DATE: May 18, 2005 Introduction The County has processed the initial Measure 37 claims using its brief claim form, evaluating the initial submission, asking at least two times that the Claimant furnish more evidence to complete or clarify the claim, and preparing this report and recommendation under DCC 14.10, the Measure 37 ordinance. The County's claims process has been amended to recognize that less precise evidence of value may be sufficient to evaluate claims, since there are currently no county funds available for payment of compensation. Also, the ordinance provides further opportunities for affected neighbors to present evidence and testimony at the Board meeting when these claims are considered. This report and recommendation is intended to be a summary and evaluation of evidence in the record. The report may be attached to the Board's Order which decides Measure 37 claims as a factual basis for the Order. Any factual changes or additions to this report from testimony or other evidence can be made part of the Board's Order. Claimants and affected parties have the opportunity to rebut this Report and provide additional relevant evidence to the Board. Also, under the County's process, claimants must provide evidence that the desired use of the property, which may be allowed by a waiver of County regulations is feasible, i.e., not prevented by physical, utility or other development limitations of the site. Report and Recommendation - DCC 14.10.090 This is my report and recommendation on this Measure 37 claim received February 2, 2005 when Measure 37 was in lawful effect. Claimant paid the filing fee and submitted an official demand form. The property, shown on the attached map, is estimated to be 10 acres. GIS computed 9.12 acres (see Page 1 of 5 - Meland (05/18/05) attached) and the tax assessment is based on 8.5 acres. The current zoning is MUA-10 (Multiple Use Agricultural) with a 10-acre minimum lot size. The claimant's desired use is a partition of the property into two 5 acre lots. The following is an analysis of the evidence in the record on the elements of this Measure 37 claim. Current Owner - Bruce Meland, sole owner Claimant presented a copy of a warranty deed showing that title is vested in his name and recorded at Vol. 150, p. 469 of the deed records dated August 30, 1966. Staff has confirmed that the deed is so recorded with no other owner's interest recorded. The deed states that the property is 10 acres, more or less... excepting the Easterly 30 feet for roadway purposes." Owner Date of Acquisition - August 30, 1966 The date of acquisition by the current owner is the relevant date for Board consideration of waivers under section (8) of Measure 37. The compensation section of Measure 37, section (6), uses the acquisition date of a family member to determine the extent of reduction in value for compensation. Since the County has no funds budgeted for payment of compensation, waivers that are issued by the County are limited by section (8) of Measure 37 to county land use regulations that were adopted after the later acquisition date of the current owner. If a waiver is granted as to county land use regulations which were adopted after the current owner's acquisition date, no compensation is due, even if the prior family member held the property for many years. While this may seem inconsistent, the measure was, evidently, written to encourage waivers of local and state land use regulations. Restrictive Regulation - MUA- 10 zoning Under the terms of the ordinance, the claimant must identify county land use regulations that prevent the claimant from using the property in a way that he or she otherwise could have used the property at the time the property was acquired. The claimant must also show that these identified regulations cause a loss of property value. The claim form identifies only the MUA-10 zoning as the land use regulation restricting the desired use. This regulation is a county land use regulation, which is subject to Measure 37 claims. Page 2 of 5 - Meland (05/18/05) Enforcement of County Regulation - futile DCC 14.10.040(G). Measure 37 requires that an ordinance that restricts the current owner's use be "enforced" against them. There is no evidence that claimant has applied for a land division of the property resulting in the current zoning being enforced on the subject property. Claimant has not demonstrated that submitting an application for such a land division under current zoning would be futile. This report confirms that such an application for the desired use would violate the current zoning and be denied. Therefore, the intent of DCC 14.10.040(G) has been met for this claim. Reduction in Value - $175,000 alleged on Claim Form The ordinance requires that the Claimant provide evidence of the amount of the claim in dollars based on the alleged reduction in the fair market value of the property resulting from the enforcement of the County's land use regulation. • Claimant has submitted a letter from Avion Water Company stating its ability to serve the two lots proposed and identifying the location of a new water line. • Claimant has submitted a water well report from his adjacent property as additional evidence that domestic water is available. • Claimant has submitted a site evaluation for septic permit approval on his adjacent property as evidence that septic approval is feasible in the area. • Claimant has submitted a map (attachment 3), showing access from Deschutes Market Road and evidence of a proposed LID as evidence of available road access for the desired additional lot. • Resolving the conflict in the evidence on acreage in a manner most favorable to the claimant for the purpose of this Measure 37 claim only, means that an additional buildable lot probably can be created if the current zoning is not applied. Therefore, assuming a 10-acre lot, current zoning reduces the property value by some amount. • Claimant has not submitted an appraisal of the reduction in value or evidence of a precise reduction in value. • Assuming Claimant could obtain a partition of the property under prior zoning, but not under current zoning, the value of Claimant's property for Measure 37 purposes has been reduced. Page 3 of 5 - Meland (05/18/05) Effect of County Waiver - remove zoning restriction MUA-10 Claimant has explained in his materials that a County waiver of application of the current MUA-10 zoning would allow him to seek a partition of the subject property consistent with the zoning in effect on August 30, 1966, claimant's date of acquisition of this property. A County waiver of the current zoning does not waive the requirement that Claimant demonstrate compliance with earlier zoning in a partition application. In that partition application process the conflicting evidence about the property acreage and qualification for a partition can be resolved consistent with the applicable 1966 regulations. Claimants who receive a waiver must use the current process to seek the needed development permits based on the zoning in place at the time the current owners acquired the property. Except in a rare case, the current procedural requirements for handling permits are not regulations that reduce value. Therefore, the County's procedural regulations are not waived. Conclusion and Recommendation The current owner of the subject property has submitted a claim pursuant to Measure 37 which demonstrates Claimant's eligibility for his use of the subject property based on land use regulations in effect on August 30, 1966, the date he acquired the property. There is evidence in the record that development of additional lots, his desired use, would be feasible based upon available domestic water, septic and road access. There is evidence in the record that there is some amount of reduction of value because additional lots could be created. Claimant estimates this reduction in value at $175,000, his market value estimate of a market-ready lot. This does not seem to take into consideration development costs. There is conflicting evidence of whether the subject property parcel is 8.5, 9.2 or 10 acres in size. This decision does not resolve this conflict. My recommendation is that the Board approve Claimant's waiver of the MUA-10 zoning in the form of the Order attached. This Order would have the effect of waiving the current County land use regulations to allow the owner to apply for use of the property in a manner permitted at the time the owner acquired the property. In essence the County would not apply the current MUA-10 zoning to the Claimant's property, but would apply the regulations which were in effect when Claimant acquired the property. This waiver is not a development permit. Claimant must apply for a partition under August 30, 1966 regulations. Page 4 of 4 - Meland (05/18/05) but would apply the regulations which were in effect when Claimant acquired the property. This waiver is not a development permit. Claimant must apply for a partition under August 30, 1966 regulations. Page 5 of 5 - Meland (05/18/05) EXHIBIT B ' ` '?•'1:`lsA t.:oi<lfind 3agated lathe most Aw of .;he rest WT of the . rtsr .of Seet3oa 1L~ 'lblraabip 17s Soath~ XMV 12 'Seat ~ . !fir :`•~Oor porticslu` 7..`diporibed as 'toX]oxs: .t ' r: 'i`Bi0ao ?st. -a poi:nt,:on-:tbo 'S'outh uas-of aiid Section 11 vhemi t.b6* .Sonth~~it cornai oL Scctlan 11 bears Soatb :w so, 10" 'liart. T..; ; : 6dj►6 ::Yeat¢ thence. North r? W. Weatit''665.63. feet j .theme NerEh AO!s'. 2C!"last 654:42.44q thence SL 89'.57' 30*•iast #3. fetq theace.'Sbltth 00. 2d' :1Se' West..65ks42 Test,, to *.thq point 69. Od .9 •'Coate.9.aiip~ 10 aCrse. sore aar •)esy. r' 'kosptitig .the::Eaterl,~:30 feet for-road a: kv .purposea. . . Order into. 2003-027; Meland DOCUMENT POOR QUALITY AT TIME OF RECORDING