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2005-1281-Order No. 2005-099 Recorded 11/10/2005COUNTY OFFICIAL NANCYUBLANKENSHIP, COUNTY CLERKDS 406.15155 11111jitiiiitI1111111111111111 NO FEE 11 I IIIIIIIIIII 0 60016363000 a D-M37 Cnt=1 Stn:33 PAM 03/06/2006 02:31:48 PM This is a no fee document DESCHUTES COUNTY CLERK CERTIFICATE PAGE This page must be included if document is re-recorded. Do Not remove from original document. DESCHUTES COUNTY OFFICIAL RECORDS CJ 1~~5~~ZSl IE D NANCY BLANKENSHIP, COUNTY CLERK 1~ COMMISSIONERS' JOURNAL 11~i~~Za05 Q3~Z1;Z9 PM 4EA~L COUNSEL 111111111)1111111111111111 Z BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Order Approving a Waiver of Land Use Regulations to Authorize Charles Clement to Use * ORDER NO. 2005-099 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, Charles Clement made a timely demand for compensation under Measure 37 for a reduction in value to her property at 6503 SW Catlow Way, 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 June 9, 2005, Charles Clement filed a Measure 37 claim with the Community Development Department. 2. Claimant's property at Assessor's Map 15-12-13-0600, 1700, 1900, Redmond, Oregon is within Deschutes County. 3. The County Administrator has recommended that the zoning regulations for the subject property at, Assessor's Map 15-12-13-0600, 1700, 1900, Redmond, Oregon that were not already in effect until after March 8, 1965 for tax lots 1700 and 1900 and December 24, 1973 for tax lot 600, 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 Charles Clement is the present owner of an interest in the subject property described in Exhibit "B," having acquired an interest in it and continuously owned it since March 8, 1965 for tax lots 1700 and 1900, and December 24, 1973 for tax lot 600. PAGE 1 OF 3- ORDER No. 2005-099 (11/9/05) 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. 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 Clement 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 March 8, 1965 for tax lots 1700 and 1900, and December 24, 1973 for tax lot 600. 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. AS A RESULT OF A PAGE 2 of 3- ORDER No. 2005-099 (11/9/05) DECISION BY THE MARION COUNTY CIRCUIT COURT, THE STATE MAY BE UNABLE TO PROCESS CLAIMS MADE UNDER MEASURE 37 CHALLENGING STATE LAND USE REGULATIONS. 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 2005. BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON --4 A r. , TOM DEWOL,F, Chair A TEST: MI EL LY, o m ffA Recording Secretary D WS R. LUKE, om issioner PAGE 3 OF 3- ORDER No. 2005-099 (11/9/05) 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.orq TO: Board of County Commissioners From: Michael A. Maier, County Administrator RE: Measure 37 Claim - Charles Clement 6503 SW Catlow Way, Redmond Assessor's Map 15-12-13-0600. 1700. 1900 Introduction DATE: November 9, 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 June 9, 2005 when Measure 37 was in lawful effect. Claimant has paid the filing fee and has submitted the County's official Page 1 of 5 - Exhibit A - Order No. 2005-099 demand form. The property, shown on the attached map, is estimated to be 127 acres. The current zoning is EFU/TRB with an agricultural minimum lot size. The Claimant's desired use is to develop the property into a 19-lot subdivision with lots of 5 acres. The following is an analysis of the evidence in the record on the elements of this Measure 37 claim. Current Owner - Charles Clement Claimant presented a copy of a Deed of Record dated March 8, 1965 at Vol. 142, Page 507 for tax lots 1700 and 1900, and December 24, 1973 at Vol. 201, Page 892 for tax lot 600. Subsequently, on April 3, 1987 a quitclaim deed conveying title to all three parcels to the Clement Family Trust was recorded at Vol. 147, Page 1407 of the Deschutes County deed records. This Trust is a revocable trust in which Clement may reclaim this property. Therefore, for Measure 37 purposes, Claimant is the owner in the form of a revocable trust. Owner Date of Acquisition - March 8, 1965; December 24, 1973 The dates of acquisition by the current owner are 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 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. Page 2 of 5 - Exhibit A - Order No. 2005-099 The Claimant has identified the EFU zoning as the land use regulation restricting the desired use of a 19- 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 and the requested method of providing access will be determined consistent with the Board's Order when a specific land use application has been received. Non-exempt 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 - $1.9M 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 submitted a water well report from the area properties as evidence that domestic water is available. • Claimant has submitted a septic permit approval on the subject property as evidence that septic approval is feasible in the area. • Claimant has submitted a map showing access from Catlow Way and Redmond-Sisters Highway as evidence of available public 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). However, a local real estate broker's opinion calculates a reduced market value of $1.9M. Assuming Claimant could obtain approval of a subdivision of the property, absent current EFU zoning restrictions, the value of Claimant's property for Measure 37 purposes would be substantially reduced. Page 3 of 5 - Exhibit A - Order No. 2005-099 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 owner has continuously owned an interest in the properties since 1965 and 1973. The latter follows the effective date of PL-5, the County zoning ordinance and the 1970 subdivision ordinance (PL-2) which contain zoning regulations which may or 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 his use of the subject property based on non-exempt land use regulations in effect on March 8, 1965 for tax lots 1700 and 1900, and December 24, 1973 for tax lot 600, the dates he acquired an interest in the property. There seems to have been zoning of the subject property at the time of the acquisition of lot 600. There is some evidence in the record that some additional development on the subject property would be feasible based upon evidence of 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 Page 4 of 5 - Exhibit A - Order No. 2005-099 March 8, 1965 for tax lots 1700 and 1900, and December 24, 1973 for tax lot 600, 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 zoning or other regulations to the Claimant's 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 March 8, 1965 regulations for tax lots 1700 and 1900, and December 24, 1973 regulations for tax lot 600. Cautionary Note on Measure 37 On October 14, 2005, Marion County Circuit Court announced its decision in MacPherson v. Dept of Administrative Services, (Marion Co. Circ. Ct. Case No. 0OC15769), which involved a challenge to Measure 37. The Court ruled that Measure 37 violates the constitution in the following particulars: impermissibly limits the Legislative Branch of Oregon government from exercising its plenary power to regulate land use in Oregon; violates the Oregon Constitution, Article I, Section 20, the Privileges and Immunities clause; violates the Oregon Constitution, Article I, Section 22, the Suspension of Laws; and violates the United States Constitution, Fourteenth Amendment Procedural and Substantive Due Process. This decision is expected to be appealed to the Oregon Supreme Court. However, until ruled on by the Supreme Court (and unless a stay is granted), this decision will prevent the State of Oregon from processing or deciding Measure 37 claims and from administering State laws as if Measure 37 were valid. Deschutes County will, for the time being, process Measure 37 claims unless a claimant requests that such process be placed on hold. Claimants should understand that a decision by Deschutes County may not enable them to proceed with future development or construction in light of the fact that the State may be prevented from processing "State" claims. Claimants who wish to obtain information relative to their "State" claims under Measure 37 are advised to contact the State Department of Land Conservation and Development. Page 5 of 5 - Exhibit A - Order No. 2005-099