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2005-972-Order No. 2005-063 Recorded 8/3/2005VIEW DESCHUTES COUNTY OFFICIAL RECORDS yJ 20050972 AEA NANCY BLANKENSHIP, COUNTY CLERK vd L COUNSEL / COMMISSIONERS' JOURNAL 0810312005 04:09:24 PM 111111111 IIIIIIIIIIIIII11111111 200 5-972 BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Order Approving a Waiver of Land Use Regulations to Authorize William Miles to Use * ORDER NO. 2005-063 the Subject Property as Allowed When he Acquired the Property 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 Measure 37 authorizes the governing body of a local government to modify, remove or not apply the land use regulation, and WHEREAS, William Miles has made a timely demand for compensation under Measure 37 for a reduction in value to his property at 3255 SW 58 h Street, Redmond, Oregon due to regulations which took effect after he 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 in lieu of payment of compensation; 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; On February 23, 2005, William Miles filed a Measure 37 claim with the Community Development Department. 2. Claimant's property at 3255 SW 58th Street, Redmond, Oregon is within Deschutes County. 3. The County Administrator has recommended that the zoning regulations for the subject property at 3255 SW 58th Street, Redmond, Oregon that were not already in effect until after July 16, 1976, 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 William Miles is the current owner of the subject property described in Exhibit "B," having acquired it and continuously owned it since July 16, 1976. 5. The Board concurs with the Administrator's report that the current regulation, EFUTRB zoning, if applied to the subject property, would not permit a subdivision on this subject property. The current regulation is a land use regulation which is not exempt from Measure 37 claims. PAGE 1 of 3- ORDER No. 2005-063 (08/03/05) 6. The Board concurs with the Administrator's report that an application for a subdivision on the subject property would be denied if the current zoning were applied. Therefore, such an application to determine enforcement of the current zoning to the Claimant's property would be futile. 7. The regulation, EFUTRB zoning, was not in effect at the time Claimant acquired the property The Board concurs with the Administrator's report that claimant has demonstrated that domestic water, septic, and road access for the desired use on the subject property may be feasible. Despite the lack of a precise amount of reduction in value, the loss of the ability to add eight additional buildable lots from the subject property would be a substantial amount of reduction in fair market value if the regulations at the time Claimant acquired the property allowed that development; now, therefore, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES 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 Miles claim is eligible under DCC 14.10.100. Section 2. The Board hereby elects to not apply 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. Claimant is hereby authorized to use the subject property as permitted at the time he acquired the property. Claimant may apply for a use of the subject property consistent with the zoning and regulations in effect at the time he acquired the property. That use shall be permitted if the subject property fully complies with all regulations in effect on July 16, 1976. 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 MAY BE 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 No. 2005-063 (08/03/05) 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 day of August, 2005. BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON ak- TOM DEWOLF, Chair _ ATTEST: 2== (F6"AA ~A~ Recording Secretary DENNIS R. LUKE, Commissioner PAGE 3 of 3- ORDER No. 2005-063 (08/03/05) 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.ora TO: Board of County Commissioners From: Michael A. Maier, County Administrator RE: Measure 37 Claim - William Miles 3255 SW 58th Street, Redmond Introduction DATE: August 3, 2005 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 that 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 on February 23, 2005 when Measure 37 was in lawful effect. Claimant has paid the filing fee and the County's official demand form has been submitted. The property, at Assessor's Map No. 1512250000201 shown on the attached map, is about 41.5 acres. The current zoning is Exclusive Farm Use, Tumalo/Redmond/Bend (EFUTRB) with a Page 1 of 4 - Exhibit A - Order No. 2005-063 farm use minimum lot size. The Claimant's desired use is an 8-lot subdivision with lots of 5 acres each. The following is an analysis of the evidence in the record on the elements of this Measure 37 claim. Current Owner - William Miles, sole owner Claimant presented a July 16, 1976 Memorandum.of a copy of Contract of Sale to William Miles recorded at Vol. 285, p. 246 of the Deschutes County records. A Warranty Deed was executed to William Miles on April 9, 1984. Owner Date of Acquisition - July 16, 1976 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. In this case, Claimant's Aunts acquired the property in 1956. 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 that 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. The first date of the current owner's acquiring an interest is the date of the Contract of Sale on July 16, 1976. Restrictive Regulation - EFUTRB 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 Claimant has identified only the EFU 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 4 - Exhibit A - Order No. 2005-063 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 a subdivision would be futile. However, 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 - $600,000 alleged on Claim Form The ordinance requires that the Claimant provide evidence of the amount of the claim in alleged reduction in the fair market value of the property resulting from the enforcement of the County's land use regulation. • Claimant has submitted no evidence that domestic water is available. • Claimant has submitted no evidence that septic approval is feasible in the area. • Claimant has not submitted a map that demonstrates access from a public road for the eight proposed lots. • Claimant has submitted an "opinion letter" from a real estate broker concluding that each of the eight proposed lots has a market value of $210,000 - $220,000. Estimates of development costs were $12,000 per well, and $6,000 to $7,000 per septic system for each lot. • Claimant has not submitted an appraisal of the reduction in value or evidence of the reduction in value that complies with DCC 14. 10.040(1). Assuming Claimant could obtain approval of a subdivision of the property, but not under current EFU zoning restrictions, the value of Claimant's property for Measure 37 purposes would be substantially reduced by that current zoning. Effect of County Waiver - Measure 37 clearly allows the County to waive its non-exempt land use regulations only back to the date the current owners, not family members, acquired the property: "(8) Notwithstanding any other state statute or the availability of funds under Subsection (10) of this act, in lieu of payment of just compensation under this act, the governing body responsible for enacting the land use regulation may modify, Page 3 of 4 - Exhibit A - Order No. 2005-063 remove, or not to apply the land use regulation or land use regulations to allow the Property to use the property a use permitted at the time the owner acquired the property. ,(emphasis added) 11(c) "Owner" is the present owner of the property, or any interest therein." In this case, the present owner has continuously owned an interest in the property since 1976. This follows the November 15, 1972 effective date of 5 acre minimum lot size of PL-5, the County zoning ordinance. 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 present owner of the property submitted a claim pursuant to Measure 37 that demonstrates eligibility for his use of the subject property based on non exempt land use regulations in effect on July 16, 1976, the date he acquired an interest in the property, including the zoning of the subject property at that time. There is opinion evidence in the record that some additional development on the subject property would be feasible for available domestic water, sanitary waste disposal, and road access. Therefore, the desired use of an 8-lot subdivision may be feasible for water, septic and access. The zoning that was in effect at the time the current owners acquired the property would be applied to a subdivision application for that use. My recommendation is that the Board approve a waiver in the form of Order attached. This Order would have the effect of waiving the non-exempt County land use regulations that were not in effect until after July 16, 1976, to allow the owner to use the property in a manner permitted at the time the owner acquired the property. The regulations at the time seem to require a 5 acre minimum lot size for a rural subdivision where public water and sewer are not available. In essence, the County would not apply any land use regulations to the Claimant's property that were not in effect when the Claimant acquired the property. This waiver is not a development permit. Claimant must apply for development of any use which the regulations in effect on July 16, 1976 would allow. Page 4 of 4 - Exhibit A - Order No. 2005-063 EXHIBIT B A parcel of land described as the NANA and also that portion of the NANA lying West of the right of way of Vosberg Road, Section 25, Township 15 South, Range 12 East of the Willamette Meridian excepting: Connencing at a 1" pin at the 1/4 corner common to said Sections 24 and 25. Township 15 South, Range 12 East of the Willamette Meridian, the initial point; thence S890 54' 40" W along the Northerly line of said NW% 1391.19 feet to a 4" pin at the West 1/16th corner and the true point of beginning; thence N890 54' 50"E along the Northerly line of said NW4, 160.00 feet; thence S019 17' 34" West along an existing fence line, 1318.86 feet; thence 5890 53' 32" W along the Southerly line of said NEkNWh, 135.50 feet to a 5/8" pin at the NW 1/16th corner= thence N00° 13' 42" E along the Westerly line of said NEWWh, 1318.54 feet to the point.of beginning, containing 4.4722 acres. Order No. 2005-063; Miles