2005-1049-Order No. 2005-077 Recorded 9/12/2005VIE D
LEGAL C UNSEL
DESCHUTES COUNTY OFFICIAL RECORDS yJ ~00~.i049
NANCYSLANKENSHIP, COUNTY CLERK
COMMISSIONERS' JOURNAL 09~1Z~Z~05 ~3;Z9:5Z PM
II 1[11[1111)1111111111111111111
2 3BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
An Order Approving a Waiver of Land Use
Regulations to Authorize Frank Rencher,
individually, and Frank Rencher, Trustee of the
Frank L. Rencher Trust, to Use the Subject
Property as Allowed When each Acquired their
interest in the Property
* ORDER NO. 2005-077
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, Frank Rencher, individually and Frank Rencher, Trustee of the Frank L. Rencher Trust
made a timely demand for compensation under Measure 37 for a reduction in value to her property at 5245 N.E.
5t11, 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;
1. On March 21, 2005, Frank Rencher, Trustee of the Frank L. Rencher Trust filed a Measure 37
claim with the Community Development Department. This claim was later amended to include
Frank Rencher in his individual capacity.
2. Claimants' property at 5245 N.E. 5th Redmond, Oregon is within Deschutes County.
3. The County Administrator has recommended that for the Frank L. Rencher Trust the zoning
regulations for the subject property at 5245 N.E. 5U', Redmond, Oregon that were not already in
effect until after July 9th 1997, not be enforced in lieu of payment of just compensation to
Claimant. The County Administrator has recommended that for Frank Rencher, individually,
the zoning regulations for the subject property at 5245 N.E. 5`h, Redmond, Oregon that were not
already in effect until after June 22, 1964, 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."
PAGE 1 of 3- ORDER No. 2005-077 (09/07/05)
4. The Board concurs with the Administrator's report that Frank Rencher, individually, and the
Frank L. Rencher Trust are the present owners of the subject property described in Exhibit "B,"
having acquired their interests in it and continuously owned it since July 9, 1997 for the Frank
L. Rencher Trust and since June 22, 1964 for Frank Rencher.
5. The Board concurs with the Administrator's report that the current regulations, especially EFU
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.
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 Claimants' property would be
futile.
7. The Board concurs with the Administrator's report that there is no evidence which demonstrates
that the current procedural regulations for land divisions and development applications and
approvals have reduced the value of the subject property.
The Board concurs with the Administrator's report that Claimants have not demonstrated that
domestic water, and septic for the desired use on the subject property are feasible. Despite the
lack of a precise amount of reduction in value, the loss of the ability to add 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, Frank Rencher, 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, conclusions, and the Administrator's
report in Exhibit "A," that the 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 of the property by the Frank L. Rencher Trust shall be permitted if the
subject property fully complies with all regulations in effect on July 9, 1997. That use of the property by Frank
L. Rencher, individually, shall be permitted if the subject property fully complies with all regulations in effect
on June 22, 1964. 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 Claimants' proposed development differently
than current non-exempt regulations. However, the current procedural regulations for land division and
development applications and approval, including, but not limited to setbacks, access, height, and landscaping
requirements shall be applied.
Section 3. To the extent that any law, order, deed, agreement or other legally enforceable public or
private requirement provides that the subject property may not be used without a permit, license, or other form
of authorization or consent, this order does not authorize the use of the subject property unless the Claimant first
obtain that permit, license, or other form of authorization or consent.
Section 4. 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)
PAGE 2 OF 3- ORDER No. 2005-077 (09/07/05)
Section 5. 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 6. 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.
Section 7. 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 September, 2005.
BOARD OF COUNTY
OF DESCHUKES COU
DEWOLF, Chair
ATTEST: Nl'~CH DALY, ommissioner
Z
Recording Secretary 15ENNIS R. LUKE, Co issioner
PAGE 3 OF 3- ORDER No. 2005-077 (09/07/05)
L
C
TO: Board of County Commissioners
From: Michael A. Maier, County Administrator
RE: Measure 37 Claim - Frank Rencher and the Frank L. Rencher Trust
5245 NE 5th Redmond
Introduction
DATE: September 7, 2005
The County processed the initial Measure 37 claims using its brief claim form, evaluating the initial
submission, asking that the Claimants 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 March 21, 2005 when
Measure 37 was in lawful effect. Claimants have paid the filing fee and the County's official demand form
has been submitted. The property, described as tax lot 14-13-27-801, is about 38 acres. The current
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
Page 1 of 6 - Exhibit A - Order No. 2005-077
zoning is Exclusive Farm Use (EFU) with a farm use minimum lot size. The Claimants' desired use is to
develop the property into a 15-lot subdivision with lots of 2.5 acres. The following is an analysis of the
evidence in the record on the elements of this Measure 37 claim. Claimant is represented in this
proceeding by Edward P. Fitch, attorney.
Current Owner - Frank L. Rencher, individually and as Trustee of the Frank L. Rencher Trust
Claimants presented a deed dated June 22, 1964, and recorded at Vol. 139, p. 518 of the Deschutes
County deed records which conveyed the property to Frank L. Rencher and his wife, Marilyn. Title to the
property was conveyed to the Frank L. Rencher Trust by warranty deed on July 9, 1997.
Owner Date of Acquisition - Frank L. Rencher, individually - June 22, 1964; Frank L. Rencher, as
Trustee of the Frank L. Rencher Trust - July 9, 1997
The date of acquisition by the current owner is the relevant date for Board consideration of waivers under
section (8) of Measure 37. Since the Frank L. Rencher Trust is revocable, even though in title, it qualifies
as an Owner for Measure 37 purposes. Frank L. Rencher, as an individual also qualifies as an owner for
Measure 37 purposes.
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 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 Claimant, Frank L. Rencher Trust acquired an interest is July 9, 1997, the date the Trust
was created and title was transferred. Claimant Trust has Frank L. Rencher acquired an interest is June
22, 1964, and he has been an Owner for Measure 37 purposes continuously since that time.
Page 2 of 6 - Exhibit A - Order No. 2005-077
Restrictive Regulation - EFU 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
reduction of property value.
The Claimants have identified the EFU zoning as the only county land use regulations restricting the
desired use of a 15-lot residential subdivision. This regulation is a County land use regulation, which is
subject to Measure 37 claims. EFU zoning was first adopted by the County after the Frank L. Rencher as
an individual, acquired ownership of the property, but before the Frank L. Rencher Trust acquired
ownership of the property. At the time Frank L. Rencher acquired the property, the County's ordinances
contained no minimum lot size for property and allowed dwellings as of right. This property was later
classified as EFU and under restrictions adopted by the State in 1993 was required to have an 80-acre
minimum lot size. As to the Frank L. Rencher Trust, the county regulation imposing an 80-acre minimum
lot size would apply, but as to Frank L. Rencher, no minimum lot size would apply.
The applicability of additional development standards will be determined consistent with the Board's
Order when a specific land use application has been received. Non-exempt regulations will not be
applied. Public safety regulations or others exempt under Subsection (3)E of the Measure cannot be
waived.
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 Claimants have applied for a land division of the property resulting in the
current zoning being enforced on the subject property. Claimants have not demonstrated that submitting
an application for such a land division 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.
Page 3 of 6 - Exhibit A - Order No. 2005-077
Reduction in Value - $1,200,000 alleged on Claim Form
The ordinance requires that Claimants 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.
• Claimants have submitted no evidence that domestic water is available.
• Claimants have submitted no evidence that electricity is available.
• Claimants have submitted no evidence that the property would qualify for septic permit approval
as evidence that septic approval is feasible in the area.
• Claimants have submitted no evidence that demonstrates access for 16 proposed lots.
• Claimants have not submitted an appraisal of the reduction in value. Evidence of the reduction in
value that calculates $2,400,000 in revenue does not include a calculation of the costs of
development has been presented by way of an opinion from a realtor.
Assuming Claimant Frank L. Rencher could obtain approval of a 15-unit subdivision of the property,
absent current EFU zoning restrictions, the value of his property for Measure 37 purposes would be
substantially reduced.
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 owner, 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,
remove, or not to apply the land use regulation or land use regulations to allow
the property owner to use the property for 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 owners have continuously owned an interest in the property since 1964, as to
Frank Rencher and since 1997 as to the Frank L. Rencher Trust. The latter follows the effective date of
Title 18, the County zoning ordinance. Therefore, the full extent of the desired use by Frank Rencher,
Trustee of the Frank L. Rencher Trust, may not be permitted by the regulations in effect in 1997.
Page 4 of 6 - Exhibit A - Order No. 2005-077
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 owner 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
Frank L. Rencher, individually, as an 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 June 22, 1964, the date he acquired an interest in the property. There seems to have been no
zoning of the subject property at the time. There is no evidence in the record that some additional
development on the subject property would be feasible for available domestic water, sanitary waste
disposal and public road access. The non-exempt County land use regulations that were in effect at the
time this Claimant 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
June 22, 1964, to allow the Frank Rencher to use the subject property in a manner permitted at the time
he acquired the property. In essence, the County would not apply any land use regulations to Frank
Rencher's property which were not in effect when he acquired the property unless they are exempt from a
Measure 37 waiver under Subsection (3)E of the Measure.
Frank L. Rencher, Trustee of the Frank L. Rencher Trust, and as an 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 9, 1997, the date he acquired an interest in the
property. There seems to have been zoning of the subject property at the time. There is no evidence in
the record that some additional development on the subject property would be feasible for available
domestic water, sanitary waste disposal and public road access. The non-exempt County land use
regulations that were in effect at the time this Claimant 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
Page 5 of 6 - Exhibit A - Order No. 2005-077
July 9, 1997, to allow the Frank the Rencher Trust to use the subject property in a manner permitted at
the time it acquired the property. In essence, the County would not apply any land use regulations to the
Frank L. Rencher property which were not in effect when it acquired the property unless they are exempt
from a Measure 37 waiver under Subsection (3)E of the Measure.
This waiver is not a development permit. Claimants must apply for development of any use that the
regulations in effect on each of their respective acquisition dates would allow.
Page 6 of 6 - Exhibit A - Order No. 2005-077
EXHIBIT B
Parcel 2 as shown on the Deschutes County Partition Plat i~3994.09, M]? 93• i and LL 9?-140 combined on file in
the Msckajcs County Cierl's Oiifice, said proptrry situated in the W1,2 5W 114 and the SW 14 s+IW 114 of Section
27. Township 1$ -1-outh6 Range [3 East, Willamette Meridian. Deschutes County, Cimpn_
Order No. 2005-077; Rencher
