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2005-1103-Order No. 2005-090 Recorded 10/3/2005L D NANCYUBLANKENSHIP, COUNTY CLERKDS ICJ ~YOJ'~~YJ COUNTY OFFICIAL COMMISSIONERS' JOURNAL 10/03/2005 04;41;05 PM 7L GAL C UNSEL II II I[IJ1111111IIIIIIIIIII) ZBEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Order Approving a Waiver of Land Use Regulations to Authorize Jerald and Linda * ORDER NO. 2005-090 Gardner to Use 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, Jerald and Linda Gardner made a timely demand for compensation under Measure 37 for a reduction in value to her property at Ten Bar Ranch Road, Bend, 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 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 April 5, 2005, Jerald and Linda Gardner filed a Measure 37 claim with the Community Development Department. 2. Claimant's property at Ten Bar Ranch Road, Bend, Oregon is within Deschutes County. 3. The County Administrator has recommended that the zoning regulations for the subject property at Ten Bar Ranch Road, Bend, Oregon that were not already in effect until after November 21, 1970, 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 Jerald and Linda Gardner are the present owners of the subject property described in Exhibit "B," having acquired an interest in it and continuously owned it since November 21, 1970. 5. The Board concurs with the Administrator's report that the current regulation, 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. PAGE 1 of 3- ORDER No. 2005-090 (09/21/05) 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 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 Claimant has 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 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 Gardner 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 November 21, 1970. 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. 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) 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 PAGE 2 of 3- ORDER No. 2005-090 (09/21/05) 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 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 COMMISSIONERS OF DESCHUTF,$ COUNTY, OVEGON TOM DEWOLF, ATTEST: zaw~ a J41 r,~-Xa~ Recording Seer ary ssioner 2 s~ R. LUKE, Commissioner PAGE 3 of 3- ORDER No. 2005-090 (09/21/05) 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 - Jerald and Linda Gardner (Claimant) Ten Bar Ranch Road, Bend, Oreqon Introduction DATE: September 21, 2005 The County processed the initial Measure 37 claims using its brief claim form, evaluating the initial submission, asking 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. 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 on April 5, 2005 when Measure 37 was in lawful effect. Claimant has paid the filing fee and has submitted the County's official demand form. The property, shown on the attached map, is estimated to be 27.9 acres. The current zoning is Page 1 of 4 - Exhibit A - Order No. 2005-090 EFU-TRB with a 23 irrigated-acre minimum lot size. The Claimant's desired use is to develop the property into a 35-lot subdivision with lots of 1/2 acres. The following is an analysis of the evidence in the record on the elements of this Measure 37 claim. Current Owner - Jerald and Linda Gardner Claimant presented a copy of a Contract of Sale, showing he purchased the property on November 21, 1970. Subsequently, a warranty deed was recorded at Vol. 326, p. 938 of the Deschutes County deed records in 1980. Owner Date of Acquisition - November 21, 1970 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 - EFU-TRB 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 Claimant has identified the EFU-TRB zoning as the land use regulation restricting the desired use of a 35-lot subdivision. This regulation is a County land use regulation, which is subject to Measure 37 claims. The applicability of additional development standards listed in the Claim will be determined consistent with the Board's Order when a specific land use application has been received. Non-exempt Page 2 of 4 - Exhibit A - Order No. 2005-090 land use 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 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 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 - $1.85 million alleged in claim 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 not submitted evidence that domestic water is available. • Claimant has not submitted evidence that septic approval is feasible in the area. • Claimant has submitted a map showing access from Ten Bar Ranch Road as evidence of available road access for the desired additional lots. • 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). The opinion evidence which calculates a reduced market value of $1.85 million includes estimated costs of development for the calculated value. • Assuming Claimant could obtain approval of a subdivision of the property, absent current EFU- TRB zoning restrictions, the value of Claimant's 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, Page 3 of 4 - Exhibit A - Order No. 2005-090 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 owner has continuously owned an interest in the property since 1970. This follows the effective date of the 1970 subdivision ordinance which contain zoning regulations which may not allow the full extent of the desired use. 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 The present owner of the property submitted a claim pursuant to Measure 37 that demonstrates eligibility for their use of the subject property based on non-exempt land use regulations in effect on November 21, 1970, the date they acquired an interest in the property. There seems to have been zoning of the subject property at the time. There is some evidence in the record that some additional development on the subject property would be feasible for available domestic water, and sanitary waste disposal. The non- exempt County land use regulations that were in effect at the time 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 November 21, 1970, to allow the owner to use the subject property in a manner permitted at the time he acquired an interest in the property. In essence, the County would not apply the current EFU-TRB zoning to the Claimants' property which were not in effect when the Claimant 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. Claimant must apply for a subdivision under November 21, 1970 regulations. Page 4 of 4 - Exhibit A - Order No. 2005-090 EXHIBIT B Township Eighteen (18) South, Range Thirteen (13), East of the Willamette Meridian, Deschutes County, Oregon: Section Three (3): A tract of land located in the West Half of the Northeast Quarter (W1/2NE1/4) more particularly described as follows: Beginning at a point whence the N1/4 corner of said Section 3 bears North 00013'59" East, 660.58 feet; thence North 89058131" East, 444.99 feet; thence South 75046'37" East, 228.14 feet; thence North 82049131" East, 215.44 feet; thence North 48026'31" East, 43.68 feet; thence North 89058131" East, 407.42 feet; thence South 00017'15" West, 934.32 feet; thence North 89058147" West, 1318.87 feet; thence North 00013'59" East, 933.26 feet to the point of beginning. EXCEPT that portion lying within the right of way of Ten Bar Ranch Road. Order No. 2005-090; Gardner