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2005-924-Order No. 2005-051 Recorded 7/14/2005COUNTY RENANCYUBLANKENSHIP,F000NTY CLERKDS Yd ~005.9Z4 .COMMISSIONERS' JOURNAL 0711412005 03:29;14 PM LEGAL COUNSEL VB2 BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Order Approving a Waiver of Land Use Regulations to Authorize Robert E. and Carol S. * ORDER NO. 2005-051 Huckfeldt to Use 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, Robert E. and Carol S. Huckfeldt have made a timely demand for compensation under Measure 37 for a reduction in value to his property at 3997 SW Helmholtz Way, Redmond, Oregon due to regulations which took effect after they 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 15, 2005, Robert E. and Carol S. Huckfeldt ("Claimant") filed a Measure 37 claim with the Community Development Department. 2. Claimant's property, that is the subject of the claim, is located at 3997 SW Helmholtz Way, Redmond, Oregon, within Deschutes County. 3. The County Administrator has recommended that the claim is eligible for compensation, and that current EFUTRB zoning for the subject property at 3997 SW Helmholtz Way 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 Robert E. and Carol S. Huckfeldt are the current owner of the subject property described in Exhibit "B," having acquired an interest, and continually owned an interest since April 15, 1971. PAGE 1 OF 3- ORDER No. 2005-051 (07/13/05) The Board concurs with the Administrator's report that the current zoning for the subject property is EFUTRB, 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 Claimants' property subject to the current regulation, EFUTRB zoning if applied to the subject property would be denied. Therefore, such an application to determine enforcement of the current zoning to the Claimants' property would be futile. 7. There seems to have been regulations in effect at the time Claimants acquired the property providing a 5 acre minimum lot size in the area of the subject property. 8. The Board concurs with Administrator's report that Claimants have not demonstrated that domestic water, septic, and road access for the desired use of additional residential lots on the subject property are feasible. Despite the lack of a precise amount of reduction in value, the denial of additional lots on the subject property would be a substantial amount of reduction in fair market value; now therefore, 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 Huckfeldt claim is eligible under DCC 14.10.100. Section 2. The Board hereby elects to not apply current EFUTRB zoning and nonexempt land use regulations to the subject property described in Exhibit "B" in lieu of payment of just compensation under Ballot Measure 37. Claimants are hereby authorized to use the subject property as permitted at the time they acquired the property. Claimants may apply for land division of the subject property consistent with the regulations in effect at the time they acquired the property. That use shall be permitted if the subject property fully complies with the regulations in effect on April 15, 1971. 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' 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 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. PAGE 2 OF 3- ORDER N0.2005-051 (07/13/05) 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 this /3'-tay of July, 2005. ATTEST: 67MAX~-&4UA- Recording Secretary PAGE 3 of 3- ORDER No. 2005-051 (07/13/05) BOARD OF COUNTY COMMISSIONERS OF 5DESCHUTES COUNTY, REG N TOM DEWOLF, Chair n 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 DATE: July 6, 2005 From: Michael A. Maier, County Administrator RE: Measure 37 Claim - Robert E. and Carol S. Huckfeldt 3997 SW Helmholtz Way Introduction The County 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 recognizes 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. Claimant and affected parties have the opportunity to rebut this Report and provide additional relevant evidence to the Board. Also, under the County's process, Claimant 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 15, 2005 when Measure 37 was in lawful effect. Claimants paid the filing fee and submitted an official demand form. The property tax lot number 1512250000800, located at 3997 SW Helmholtz Way, Redmond, Oregon, and Page 1 of 4 - EXHIBIT A - ORDER NO. 2005-051 shown on the attached map, is estimated to be 41 acres. The current zoning is EFUTRB with an agricultural minimum lot size. The Claimant's desired use is a subdivision of the property into 8 five acre lots. The amount of the Claim is $750,000. The following is an analysis of the evidence in the record on the elements of this Measure 37 claim. Current Owners - Robert E. and Carol S. Huckfeldt Claimants presented a copy of a deed showing Robert E. Huckfeldt and Carol Huckfeldt as grantees is recorded at Vol. 194, pp 713 of the deed records. The deed is dated April 15, 1971. Subsequently, the property was conveyed to the Carol S. Huckfeldt Revocable Trust with Claimant as co-trustees. County records show Robert E. Huckfeldt conveyed his interest in the property to the Revocable Trust in 2002. The revocable trust is Claimants' form of ownership. Owner Date of Acquisition - April 15, 1971 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. Because Robert and Carol Huckfeldt retain control of the subject property as trustees of the revocable trust, the acquisition date is that of the April 15, 1971 deed to Robert E. Huckfeldt and Carol Huckfeldt. Restrictive Regulation - EFUTRB 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 they otherwise could have used the property at the time Page 2 of 4 - EXHIBIT A - ORDER NO. 2005-051 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 EFUTRB 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. Enforcement of County Regulation - futile DCC 14.10.040(G). Measure 37 requires that an ordinance that restricts the current owners' 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 - $750,000 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. • Claimants have submitted no evidence that domestic water is available, that septic approval is feasible in the area, or that access from a public road is available. • Claimants have not submitted an appraisal of the reduction in value or evidence of a precise reduction in value. • Assuming Claimants could obtain additional lots on the property under prior zoning, but not under current zoning, the value of Claimants' property for Measure 37 purposes has been reduced. Effect of County Waiver - remove zoning restriction EFUTRB Claimants have explained in their materials that a County waiver of application of the current EFUTRB zoning would allow them to seek a subdivision of the subject property consistent with the zoning in effect on April 15, 1971, Claimants' date of acquisition of this property. The regulation in effect at the time seems to be PL-2 (1970), which seems to have allowed a land division for a minimum of five acres, from Page 3 of 4 - EXHIBIT A - ORDER NO. 2005-051 a 41 acre parcel. A County waiver of the current zoning does not waive the requirement that Claimant demonstrate compliance with earlier zoning in a land division application. In that application process, the evidence about the property acreage and qualification for a land division can be resolved consistent with the applicable regulations in effect on their date of acquisition. A Claimant who receives 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 owners of the subject property have submitted a claim pursuant to Measure 37 which demonstrates Claimants' eligibility for their use of the subject property based on land use regulations in effect on April 15, 1971, the date they acquired the property. There is no evidence in the record that development of additional lots, their 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. Claimants estimate this reduction in value at $750,000. This estimate does not seem to take into consideration development costs. My recommendation is that the Board approve Claimants' waiver of the EFUTRB 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 owners to apply for use of the property in a manner permitted at the time the owners acquired the property. In essence, the County would not apply the current EFUTRB zoning to the Claimants' property, but would apply the regulations which were in effect when Claimants acquired the property. This waiver is not a development permit. Claimants must apply for land division under regulations in effect on April 15, 1971. Page 4 of 4 - EXHIBIT A - ORDER NO. 2005-051 EXHIBIT B The Northeast Quarter of the Southeast Quarter (NE1/4SE1/4) of Section 25, Township 15 South, Range 12 East of the Willamette Meridian. Order No. 2005-051; Huckfeldt