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2006-1051-Minutes for Meeting November 27,2006 Recorded 12/11/2006COUNTY NANCYUBLANKENSHIP,P000NTY CLERKDS VV 2006'1051 COMMISSIONERS' JOURNAL 1211112006 04:30:30 PM 11111111111111111111111111111111111 2005-1052 I Do not remove this page from original document. Deschutes County Clerk Certificate Page If this instrument is being re-recorded, please complete the following statement, in accordance with ORS 205.244: Re-recorded to correct [give reason] previously recorded in Book or as Fee Number and Page 01f E s w6? Deschutes County Board of Commissioners 1300 NW Wall St., Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.orc BUSINESS MEETING - LAND USE ISSUES DESCHUTES COUNTY BOARD OF COMMISSIONERS MONDAY, NOVEMBER 27, 2006 Commissioners' Hearing Room - Administration Building - 1300 NW Wall St., Bend Present were Commissioners Dennis R. Luke, Michael M. Daly and Bev Clarno. Also present were County Administrator Dave Kanner; Tom Anderson, Catherine Morrow, George Read and Terri Payne of Community Development Department; Laurie Craghead, Legal Counsel; media representatives Barney Lerten of News Channel 21 and Keith Chu of The Bulletin; and two other citizens. Chair Luke opened the meeting at 10: 00 a. m. 1. Before the Board was Citizen Input. None was offered. 2. Before the Board was Consideration of Signature of Order No. 2006-161, Initiating the Dissolution of Special Road District No. 4 and Oregon Water Wonderland No. 1 Special Road District. Laurie Craghead indicated that there has been no activity in these Districts for many years. Taxes have not been levied for twenty years, no appointments have been made and the Districts should be formally dissolved. The boundaries of the Districts are not known, and no documentation can be found either at the County or the State. Commissioner Daly expressed concern because there are funds being held by the County, and he wants to be sure this action is warranted and that the funds can be released to the County. Commissioner Luke agreed that further research is warranted. Minutes of Board Business Meeting - Land Use Issues Monday, November 27, 2006 Page 1 of 5 Pages The hearing date was changed to January 30, 2007. CLARNO: Move approval of Order 2006-161, including a change in the hearing date. DALY: Second. VOTE: DALY: Yes. CLARNO: Aye. LUKE: Chair votes yes. 3. Before the Board was Discussion of the Adoption of Ordinance No. 2006- 036, a Proposed Text Amendment to Update Title 18 Destination Resort Zoning Code. Catherine Morrow and Terri Payne came before the Board. Ms. Payne stated this is an applicant-driven requested, initiated in 2004 on behalf of Eagle Crest, Pronghorn and Thornburgh resorts. The Planning Commission recommended approval with one condition regarding overnight lodging bonding process. The applicants asked for a postponement, and it was opened again in April 2006. A hearing is scheduled for December 4 at 5:30 p.m. (Backup information is attached.) Ms. Payne referred to her staff report at this time. She explained the criteria of the two basic changes: accommodations and bonding. Commissioner Luke observed that it appears that the County Code has not been updated to match that of State law. Ms. Payne noted that the ratios for eastern Oregon are different from what is used in the west side of Oregon. She added that more clarification would be included regarding the number of rental units and owner occupied units. The suggestions are in line with statute. Commissioner Luke asked if any decisions had been made at the State level that could affect this situation. Ms. Payne was not aware of any, and the State has indicated there have not been any and at this point none in process. Minutes of Board Business Meeting - Land Use Issues Monday, November 27, 2006 Page 2 of 5 Pages There would be four specific changes that the applicant is willing to make. The language regarding ratios of 2.1 and 2.5 to 1 would not be specifically included as the State is not sure how this issue will be resolved; the statute is unclear at this time. Catherine Morrow stated the burden of proof is on the applicant, and at this time this is a legislative decision of the Board. Laurie Craghead said there are no challenges at this point. The ratio per the State is 2.1 to 1; if the County decides to require a ratio of 2.5 to 1 it could be challenged. Bonding for the first fifty units is not allowed by State law; the units have to be built first. Commissioner Luke noted that Pronghorn was able to build because they sold lots to finance construction. Ms. Craghead replied that the bond was already recorded before any lots were sold, as this was required before the plat was signed. Terri Payne added that the State had allowed phasing after the 2003 legislative session, but Pronghorn was approved prior to then. Bev Clarno asked about language regarding the overnight units, and asked if a copy of the legislative language could be provided for the hearing. Terri Payne indicated she would provide to the Board in advance of the hearing. Dave Kanner asked if the Board is allowed to speak to individuals at this time about the issue, since it is a legislative decision of the Board. Laurie Craghead stated that the Board can seek out any information they wish to receive. Commissioner Luke then asked if anyone wished to speak at this time. Linda Swearingen, representative of Eagle Crest, Pronghorn and Sunriver spoke in regard to the creation of this Ordinance. She explained that this was a compromise bill originally put together in 2003 through the efforts of DLCD, LCDC and Thousand Friends of Oregon. Legislative counsel and the Governor's staff also worked on this issue. The intent of the bill was to have the 2.5 to 1 ratio. She added that at no time was the 2.5 to 1 to be applied specifically to the first fifty units; the goal was to have it at 2.5 to 1 for the entire resort. This was created for existing resorts, not necessarily for new resorts. Because it was set up for existing resorts, there would already be financial integrity in place. The various entities involved in these developments agree that this was not the intent. Minutes of Board Business Meeting - Land Use Issues Monday, November 27, 2006 Page 3 of 5 Pages Commissioner Luke asked if the 2.5 to 1 for the first fifty units would be appropriate. Ms. Swearingen said that her clients would not support this aspect, as the intent was for 2.5 to 1 for the entire resort. This will need to be addressed legislatively eventually. She feels the legislature would be open to making this change in the future, as it was the intent in 2003. She added that Eagle Crest has exceeded the 2.1 ratio at this point Commissioner Luke asked if a large turnout is expected at the upcoming hearing. Ms. Payne stated that she has only heard from one person who represents Thousand Friends of Oregon. This Ordinance would simply bring the County into line with the 2003 legislative changes. There will be a public hearing between the Board and the Planning Commission on Monday, December 5 at 5:30 p.m. to discuss this issue further and to take public testimony. 4. Before the Board were Additions to the Agenda. None were offered. Being no further items to come before the Board, Chair Luke adjourned the meeting at 10:55 a. m. DATED this 27th Day of November 2006 for the Deschutes County Board of Commissioners. ATTEST: Recording Secretary Bev Clarno, Vice Chair Michael M. Daly71nmissioner Minutes of Board Business Meeting - Land Use Issues Monday, November 27, 2006 Page 4 of 5 Pages Attachments Exhibit A: Agenda Exhibit B: Staff Report and Backup Information Exhibit C: ORS regarding Destination Resort Siting Exhibit D: Copy of Goal 8: Recreational Needs Exhibit E: Letter from Ball Janik LLP dated November 21, 2006 (2 pages) Exhibit F: Letter from Ball Janik LLP dated November 21, 2006 (7 pages) Minutes of Board Business Meeting - Land Use Issues Monday, November 27, 2006 Page 5 of 5 Pages 01 E ac" w0 Deschutes County Board of Commissioners 1300 NW Wall St., Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.ora BUSINESS MEETING AGENDA - LAND USE ISSUES DESCHUTES COUNTY BOARD OF COMMISSIONERS 10:00 A.M., MONDAY, NOVEMBER 27, 2006 Commissioners' Hearing Room - Administration Building 1300 NW Wall St., Bend 1. CITIZEN INPUT This is the time provided for individuals wishing to address the Board regarding issues that are not already on the agenda. Visitors who wish to speak should sign up prior to the beginning of the meeting on the sign-up sheet provided. Please use the microphone and also state your name and address at the time the Board calls on you to speak. 2. CONSIDERATION of Signature of Order No. 2006-161, Initiating the Dissolution of Special Road District No. 4 and Oregon Water Wonderland No. 1 Special Road District - Laurie Craghead, Legal Counsel 3. DISCUSSION of the Adoption of Ordinance No. 2006-036, a Proposed Text Amendment to Update Title 18 Destination Resort Zoning Code - Terri Payne, Community Development Department 4. ADDITIONS TO THE AGENDA Deschutes County meeting locations are wheelchair accessible. Deschutes County provides reasonable accommodations for persons with disabilities. For deaf, hearing impaired or speech disabled, dial 7-1-1 to access the state transfer relay service for TTY. Please call (541) 388-6571 regarding alternative formats or for further information. Board of Commissioners' Business Meeting Agenda Page 1 of 5 Pages Monday, November 27, 2006 e~Lb j /A FUTURE MEETINGS: (Please note: Meeting dates and times are subject to change. All meetings take place in the Board of Commissioners' meeting rooms at 1300 NW Wall St., Bend, unless otherwise indicated. If you have questions regarding a meeting, please call 388-6572) Thursday, November 23, 2006 Most County offices will be closed to observe Thanksgiving. Friday, November 24, 2006 Most County offices will be closed (unpaid holiday). Monday, November 27, 2006 10:00 a.m. Board Land Use Meeting 1:30 p.m. Administrative Work Session Tuesday, November 28, 2006 8:00 a.m. Oregon Youth Challenge Program Advisory Committee Meeting 12:00 noon Regular meeting of the Audit Committee Wednesday, November 29, 2006 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) Monday, December 4, 2006 10:00 a.m. Board Land Use Meeting - Central Electric Cooperative Hearing 1:30 p.m. Administrative Work Session 3:30 p.m. Local Public Safety Coordinating Council (LPSCC) Meeting 5:30 p.m. Joint Meeting of Planning Commission and Board of Commissioners regarding Destination Resorts Wednesday, December 6, 2006 10:00 a.m. Board of Commissioners' Business Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) Board of Commissioners' Business Meeting Agenda Monday, November 27, 2006 Page 2 of 5 Pages Monday, December 11, 2006 10:00 a.m. Board Meeting for the Week 1:30 p.m. Administrative Work Session Tuesday, December 12, 2006 5:00 p.m. Regularly Scheduled Update with the Judges - Ernesto's Restaurant Wednesday, December 13, 2006 10:30 a.m. Oregon Youth Challenge Graduation 1:30 p.m. Administrative Work Session - could include executive session(s) Thursday, December 14, 2006 3:00 p.m. Regular meeting of the Fair Board, at the Fair/Expo Center Monday, December 18, 2006 12:00 noon Regular Meeting of Department Heads and Commissioners 1:30 p.m. Administrative Work Session Tuesday, December 19, 2006 10:00 a.m. Regular Meeting of the Employee Benefits Advisory Committee Wednesday, December 20, 2006 1:30 p.m. Administrative Work Session Monday, December 25, 2006 Most County offices will be closed to observe Christmas. Monday, January 1, 2007 Most County offices will be closed to observe New Years Day. Tuesday, January 2, 2007 8:00 a.m. Swearing-in of New County Commissioner and Other Elected Officials Board of Commissioners' Business Meeting Agenda Monday, November 27, 2006 Page 3 of 5 Pages Wednesday, January 3, 2007 10:00 a.m. Board of Commissioners' Business Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) Monday, January 8, 2007 10:00 a.m. Board Land Use Meeting 1:30 p.m. Administrative Work Session 3:30 p.m. Local Public Safety Coordinating Council (LPSCC) Meeting Wednesday, January 10, 2007 10:00 a.m. Board of Commissioners' Meeting 11:15 a.m. Legislative Update Conference Call 1:30 p.m. Administrative Work Session - could include executive session(s) Tuesday, January 11, 2007 7:00 a.m. Regularly Scheduled Meeting with the Redmond City Council, Council Chambers Monday, January 15, 2007 Most County offices will be closed to observe Martin Luther King, Jr. Day Tuesday, January 16, 2007 10:00 a.m. Regular Meeting of the Employee Benefits Advisory Committee Wednesday, January 17, 2007 1:30 p.m. Administrative Work Session - could include executive session(s) Monday, January 22, 2007 10:00 a.m. Board Land Use Meeting 1:30 p.m. Administrative Work Session Board of Commissioners' Business Meeting Agenda Monday, November 27, 2006 Page 4 of 5 Pages Wednesday, January 24, 2007 10:00 a.m. Board of Commissioners' Meeting 11:15 a.m. Legislative Update Conference Call 1:30 p.m. Administrative Work Session - could include executive session(s) Thursday, January 25, 2007 8:00 a.m. Board Goal Setting Retreat - McMenamin's Monday, January 29, 2007 10:00 a.m. Board Land Use Meeting 1:30 p.m. Administrative Work Session Wednesday, January 31, 2007 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) Monday, February 5, 2007 10:00 a.m. Board Land Use Meeting 1:30 p.m. Administrative Work Session 3:30 p.m. Regular Meeting of LPSCC (Local Public Safety Coordinating Council) Deschutes County meeting locations are wheelchair accessible. Deschutes County provides reasonable accommodations for persons with disabilities. For deaf, hearing impaired or speech disabled, dial 7-1-1 to access the state transfer relay service for TTY. Please call (541) 388-6571 regarding alternative formats or for further information. Board of Commissioners' Business Meeting Agenda Monday, November 27, 2006 Page 5 of 5 Pages Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org AGENDA REQUEST & STAFF REPORT For Board Business Meeting of November 27, 2006 Use "tab" to move between fields, and use as much space as necessary within each field. Do not leave any fields incomplete. Agenda requests & backup must be submitted to the Board Secretary no later than noon of the Wednesday prior to the meeting to be included on the agenda. DATE: November 20, 2006 TO: Deschutes County Board of Commissioners FROM: Terri Hansen Payne, CDD 385-1404 TITLE OF AGENDA ITEM: TA-04-4 - Text Amendement to update Title 18 destination resort zoning code. This is a work session for a Public Hearing that is scheduled for 12-4-06 BACKGROUND AND POLICY IMPLICATIONS: This proposal is a request on behalf of Sunriver, Pronghorn and Eagle Crest resorts to update County Code to be consistent with revised State destination resort statute. The changes summarized below would increase the required resort investment and would modify various requirements for destination resort accommodations. This proposal would increase the required investment from $4 million in adjusted 1984 dollars to $7 million in adjusted 1993 dollars. This proposal would allow the required 150 units of overnight lodging to be phased in over 14 years. This proposal would change the ratio between individually-owned residential units and overnight lodging. Currently resorts can have no more than 2 individually-owned units for every unit of overnight lodging. This proposal would change that 2:1 ratio to 2.5:1. This proposal would change the requirements for individually-owned units that are counted as overnight units. Currently they need to be available for rent 45 weeks/year through the resort reservation system. The new language would require them to be available for rent 38 weeks/year through the resort or through a property manager. This request went to a public hearing before the Planning Commision in 2004, and they recommended approval, with one change. The proposed language allowed the first 50 required overnight lodging units to be bonded, which is not permitted by Statute. The Planning Commission voted to remove the bonding language for those first 50 units, and the applicant agreed. Before this proposal was taken to the Board of County Commissioners for a final decision, the applicant requested that the proposal be put on hold. It has recently been reopened and will go to a public hearing in front of the Board of County Commissioners on December 4, 2006. The Planning Commission has been invited to participate in the hearing due to the length of time since that body made their recommendation. 6~ This is a legislative public policy decision. The only criteria that apply to this application are State Statute, State Planning Goals and the County Comprehensive Plan. The attached memo provides a brief summary of this proposal. A more detailed staff report and analysis will be presented at the work session. FISCAL IMPLICATIONS: None RECOMMENDATION & ACTION REQUESTED: No action requested at this time ATTENDANCE: Terri Hansen Payne DISTRIBUTION OF DOCUMENTS: Staff memo distributed to the Board of County Commissioners 0 1{ Community Development Department Planning Division Building Safety Division Environmental Health Division 117 NW Lafayette Avenue Bend Oregon 97701-1925 (541)388-6575 FAX (541)385-1764 http://www.co.deschutes.or.us/cdd/ MEMORANDUM To: Deschutes County Board of County Commissioners From: Terri Hansen Payne, Associate Planner Date: November 27, 2006 Subject: Text Amendment TA-04-4 1. PURPOSE The purpose of text amendment TA-04-4 is to revise Deschutes County Zoning Code sections 18.04 and 18.113 to incorporate1993 and 2003 changes to State destination resort statute. II. TA 04-4 PROPOSAL 2004 In July 2004 Nancy Craven, representing Sunriver, Eagle Crest and Pronghorn, applied for a text amendment to update the language in Deschutes County Code (DCC) 18.04 and 18.113 regarding destination resorts. III. PLANNING COMMISSION DECISION 2004 The Deschutes County Planning Commission held a public hearing on this request on November 4, 2004. In the discussion it was noted that one section of the applicant's proposal was more lenient than state statute. The submitted proposal allowed the first 50 units of the required 150 units of overnight lodging to be built or bonded before the sale of any residential lots or units. State statute requires the first 50 units to be built and does not allow bonding. The minutes of the November 4, 2004 Public Hearing show all parties agreeing to remove the bonding option for the first 50 units. With that change, the Planning Commission recommended approval of TA-04-4. Soon after the Planning Commission recommendation, the applicant requested that staff put this amendment on hold. IV. TA-04-4 PROPOSAL 2006 On May 23, 2006 the applicant sent a letter requesting that the application be restarted. The current proposal is nearly identical to that considered by the Planning Commission Quality Services Performed zvitit Pride BOCC Work Session Memo TA-04-4 in 2004, including retaining the language allowing the first 50 overnight units to be bonded. One change that has been made from the 2004 proposal is in regard to the dollar investment required. The 2004 proposal was worded to require an initial investment of $7 million on visitor accommodations rather than on visitor accommodations and developed recreational facilities. The current proposal added the words 'developed recreational facilities' as part of the $7 million investment, which complies with the language in statute. V. PROPOSAL SUMMARY Required Investment: The required investment for resorts in Deschutes County would go from $2 million in adjusted 1984 dollars for overnight accommodations and $2 million in adjusted 1984 dollars for developed recreational facilitates to a total of $7 million in adjusted 1993 dollars for both the overnight accommodations and developed recreational facilities. This would reflect State Statute and increase the required resort investment. Required Overnight Accommodations: Destination resort statute and Deschutes County Code require that each resort provide a minimum of 150 units of overnight accommodations. These units are separate, rentable units not available for residential use. However, individually-owned residential units can be counted as overnight units if they are available for rent a specified number of weeks per year. Currently Deschutes County requires the 150 overnight units to be built or bonded in the first phase of resort development. This proposal would allow these overnight lodging units to be phased in over 14 years. The first 50 units would need to be built or bonded before the sale of any individually-owned lots or units. The second 50 units would need to be built or bonded within 5 years of the initial lot or unit sales. The last 50 units would need to be built or bonded within 10 years of the initial lot or unit sales. If any of the units are bonded, they must be constructed within 4 years of the bonding. Note this proposal still allows bonding the first 50 units. Additionally, this proposal would lower the number of weeks any individually-owned units counted as overnight units need to be available for rent from the current 45 weeks/year to 38 weeks/year. Finally it would allow those individually-owned units counted as overnight units to be rented through a property manager as well as the resort. Resort Accommodation Ratio: County destination resort code requires a resort to allow no more than 2 individually-owned residential units for each overnight lodging unit. This proposal would change that ratio from 2:1 to 2.5:1, thus allowing more residential units. VI. SCHEDULE There is a public hearing for this application scheduled before the Board of County Commissioners at 5:30 p.m. on December 4, 2006. Due to the length of time since the Planning Commission recommendation, that body will be participating in the hearing in an advisory capacity. Page 2 A Community Development Department Planning Division Building Safety Division Environmental Health Division 117 NW Lafayette Avenue Bend Oregon 97701-1925 (541)388-6575 FAX(541)385-1764 http://www.co.deschutes.or.us/cdd/ STAFF REPORT To: Deschutes County Board of County Commissioners cc: Deschutes County Planning Commission From: Terri Hansen Payne, Associate Planner Date: December 4, 2006 f Ircse-~- I'/~-7 ! O (o Subject: Text Amendment TA-04-4 1. PURPOSE The purpose of text amendment TA-04-4 (Attachment 1) is to revise Deschutes County Zoning Code sections 18.04 and 18.113 to incorporate1993 and 2003 changes to state destination resort statute. II DESTINATION RESORT BACKGROUND In 1984 regulations were added to State Planning Goal 8: Recreation, to allow the siting of destination resorts on rural lands without having to go through the state goal exception process. These rules made it easier to build destination resorts and at the same time set specific standards for their development. The intent was to promote tourism, create jobs and contribute to rural economic development. Over the next four years destination resort regulations were added to State Statute (ORS 197.435-197.467) and the goal was amended to ensure consistency between statute and goal. In 1992 Deschutes County mapped lands available for destination resorts and created Deschutes County Code (DCC) sections regulating destination resorts, including Title 23 comprehensive plan policies (DCC 23.12 and 23.84) and Title 18 destination resort zoning definitions and overlay code (DCC 18.04 and 18.113). The statute and goal were again amended in1993/1994 to allow phasing of the required 150 overnight lodging units, to raise the required investment and how it is calculated and to require conservation easements for specified resources. Title 18 and Title 23 were not updated to incorporate the new regulations. In 1999 the County added a destination resort chapter to Title 19 Bend Urban Growth Area Zoning. Title 19 Bend zoning Code was written to conform to the 1993 statute changes. Quality Services Performed with Pride Staff Report TA-04-4 In 2003 destination resort statute was again amended, with separate criteria established for eastern Oregon. The amendments permitted counties in eastern Oregon to remap lands eligible for destination resorts every 30 months. Additionally, various requirements for resort accommodations were revised. Deschutes County Code has not been updated to incorporate the new regulations. In 2005 statute was again amended to expand the regulations on remapping to all of Oregon. In response to the 2003 and 2005 legislative changes, State Planning Goal 8, Recreation, was updated in 2006. III. TA 04-4 PROPOSAL 2004 In July 2004 Nancy Craven, representing Sunriver, Eagle Crest and Pronghorn, applied for a text amendment to update the language in DCC 18.04 and 18.113 regarding destination resorts. These amendments were intended to incorporate the statute changes from 1993 and 2003 into County Code. Ms. Craven also submitted an application for Cascade Highlands to update DCC Title 19, Bend Urban Growth Boundary Zoning to incorporate the 2003 statute changes. In addition to the changes proposed by the applicant, staff at that time identified three additional changes, two to Title 19 and one to Title 23. Because the current request does not propose amendments to these titles, these changes are not included in this staff report. IV. PLANNING COMMISSION DECISION 2004 The Deschutes County Planning Commission held a work session on these code changes on October 14, 2004 followed by a public hearing on November 4, 2004. Staff recommended approval of the proposed code changes, but noted that one section of the applicant's proposal was more lenient than state statute. The submitted proposal allowed the first 50 units of the required 150 units of overnight lodging to be built or bonded before the sale of any residential lots or units. State statute requires the first 50 units to be built and does not allow bonding. The minutes of the November 4, 2004 Public Hearing (Attachment 2) show all parties agreeing to remove the bonding option for the first 50 units. Public comment in support of the proposed changes was provided by the applicant and two other resort representatives. No comments were made in opposition to this update. With the removal of the ability to bond the first 50 units, the Planning Commission recommended approval of the applicant and staff proposed code changes. Soon after the Planning Commission recommendation the applicant requested that staff put this amendment on hold. V. TA-04-4 PROPOSAL 2006 On May 23, 2006 the applicant sent a letter (Attachment 3) requesting the application be restarted for Title 18 only. The current proposal is nearly identical to that considered by the Planning Commission in 2004, including retaining the language allowing the first 50 overnight units to be bonded. One change that has been made from the 2004 proposal Page 2 Staff Report TA-04-4 is in regard to the dollar investment required. The 2004 proposal was worded to require an initial investment of $7 million on visitor accommodations rather than on visitor accommodations and developed recreational facilities. The current proposal added the words `developed recreational facilities' as part of the $7 million investment, which complies with the language in statute. VI. PROPOSAL DETAILS AND ANALYSIS The proposed changes are intended to bring County Code into conformance with changes to State Statute. The changes primarily address the regulations for visitor accommodations and the required resort investment. There are two types of visitor accommodations discussed in destination resort statute, individually-owned housing units and overnight lodging units. Individually-owned units are residential units that can be used as primary residences or second homes or rental units. Overnight lodging is defined as separately rentable units not available for residential use, such as hotel rooms. Resorts are required to provide 150 units of overnight lodging and maintain a defined ratio between the number of individually-owned units and the number of overnight lodging units. There is some flexibility provided in that ilndividually-owned units can be counted as overnight units if they are available for rent a specified number of weeks per year. Resort Accommodation Changes Phasing: Deschutes County Code currently calls for all of the required 150 overnight lodging units to be built or bonded before initial lot sales. The proposed language would change that to require just the first 50 units to be built or bonded before initial lot sales. The next 50 would need to be built or bonded within 5 years of initial lot sales and the final 50 would need to be built or bonded within 10 years of initial lot sales. If the last 100 units are bonded, they would be required to be built within four years of bonding. State Statute requires the first 50 units to be built, without the option to bond. Therefore both our current code and the proposed code are more lenient than state statute. The Planning Commission recommendation in 2004 required building those first 50 units to comply with statute. Staff has provided language to conform to statute and Planning Commission recommendation (Attachment 1, Exhibit D). Aside from that issue, allowing the overnight lodging to be phased in has the potential to change the composition of resort accommodations. The new language would ensure that 50 overnight units are provided, but would allow the remaining required 100 units to be phased in over the next ten years, with the final units not being built for14 years after initial lot sales. Individually-owned units counted as overnight iodWnw Currently individually-owned units can be counted as overnight lodging if they are available 45 weeks per year through a central reservation system operated by the resort. This proposal would reduce the number of weeks these units are required to be available to 38 weeks per year. Additionally, the units could be rented through a real estate property manager as well as the resort. Both of these changes provide the resorts with additional flexibility with little substantive impact. Page 3 Staff Report TA-04-4 Ratio between individually-owned residential units and overnight lodging units: The new language would change the ratio of individually-owned units compared to overnight units, allowing for a larger number of residential units. Currently the required ratio is no more than 2 residential units for each overnight unit. The new language allows resorts to provide no more than 2.5 residential units for each overnight unit. Unfortunately, the wording in statute regarding the 2.5:1 residential/overnight ratio specifically refers to the first 50 required overnight units, and not to the overall resort accommodations. Additionally, when Goal 8, Recreation, was updated in 2006 to incorporate recent statute changes, the language defining a resort-wide ratio of 2:1 was retained with the 2.5:1 again referring only to the first 50 units in eastern Oregon. Therefore there is a question of whether changing our code to an overall 2.5:1 ratio could put the County at risk of being more lenient than Goal 8. It is likely that this language does not reflect the intent of the legislation, which was to allow an overall ratio of 2.5:1 in eastern Oregon. In fact, resort representatives at one point were attempting to change the ratio to 5:1, based on their analysis of market conditions. That does not however, address the concern that the County needs to comply with both State Statute and Goal 8. Staff recommends not changing the ratio in County Code until these issues are resolved (Attachment 1, Exhibits C and D). This issue has been discussed with the applicant. The applicant disagrees with staff interpretation of the statute and goal language and will be submitting evidence into the record to support their reading. Criteria for meeting the accommodation requirements: The language ensuring that the various accommodation requirements are met would be changed in a number of places. However, 2003 statute changes included a requirement that eastern Oregon resorts provide an annual report on the status of the 150 overnight units, the ratio between residential and overnight units, and for individually-owned units counted as overnight units, the number of weeks they were available for rent. That language is not clearly included in this proposal. To bring the County into full compliance with current statute, staff recommends adding that requirement. (Attachment 1, Exhibit D). Overall intent of destination resorts: DCC 18.113.010(E) destination resort code states: `7t is not the intent of DCC 18.113 to site developments that are in effect rural subdivisions, whose primary purpose is to serve full-time residents of the area." As proposed by the applicant these changes would increase the amount of residential housing permitted in destination resorts. There is no data available on whether the existing residential units in destination resorts are being used a primary homes or second homes or rentals. Without that information it is not possible to analyze the land use impacts that would result from an increase in destination resort residential units. Additional Changes Investment: State Statute before 1993 required a total initial investment of $2 million in adjusted 1984 dollars, with one third of that total going to developed recreational facilities. DCC 18.04 defining destination resorts mirrors that language. DCC 18.113 Page 4 Staff Report TA-04-4 however, currently requires an initial first phase minimum investment of $2 million in adjusted 1984 dollars for lodging, restaurants and meeting rooms as well as an additional $2 million in adjusted 1984 dollars for developed recreational facilities. This proposal would update county code to require an initial investment of $7 million in adjusted 1993 dollars, with one third going to developed recreational facilities. This would bring us into compliance with current statute requirements. To provide an idea of how the dollar investment would change, the 2006 required investment has been calculated using the federal consumer price index calculator. $2 million in 1984 dollars would require an investment in 2006 of $3,905,679. $7 million in 1993 dollars would require an investment in 2006 of $9,829,066. So, the required investment would rise, even considering the total investment required by County Code is double state requirements. Conservation Easements: In 1993 language was added to destination resort statute requiring a conservation easement for specified comprehensive plan resources. This language has been included in Title 19 (19.106.120) and could be added to Title 18 as well. Again, this would ensure the updated County Code is in compliance with statute. This is included in Attachment 1, Exhibit D. VII. COMPLIANCE WITH STATE PLANNING GOALS State Statute (ORS 197.250) requires all local land use regulations to comply with State Planning Goals. The following goals apply to this application. Goal 1 Citizen Involvement: Goal 1 requires local jurisdictions to provide notice of proposed land use matters. This proposal has been noticed in the following manner. 1. Planning Commission noticed public hearing 11-04-04 2. Notice mailed to applicants and list of interested parties from 2004 on 11-16-06 3. Publication in the Bend Bulletin on 11-19-06 4. Press release 11-21-06 Goal 2 Land Use Planning: Goal 2 requires consistency in land use planning. As proposed, this would change only Title 18, leaving Title 19 and Title 23 unchanged. That would retain and worsen the existing inconsistencies between titles. For example, the definition of destination resorts would be different in Title 18, Title 19 and Title 23. Goal 8 Recreation: Due to the discrepancies noted above regarding the bonding of the first 50 overnight units and the ratio of individually owned units and overnight lodging, this proposal could put us out of compliance with Planning Goal 8. VIII. FINDINGS This request is a legislative action and a public policy decision. Deschutes County lacks specific criteria for reviewing a legislative text amendment. The applicant bears the burden for justifying that the text amendment is consistent with State Statute, the Statewide Planning Goals and the overall policy goals in the County Comprehensive Plan. Page 5 Staff Report TA-04-4 With the following exceptions, the language proposed in TA-04-4 reflects current State Statute and therefore would bring Title 18 into line with the 1993 and 2003 changes to state law and the 2006 changes to Goal 8. Substituting the language in Attachment 1, Exhibits C and D on the issues listed below would bring the County Code fully into compliance with State Statute. 1. Change 18.113.060(A)(1)(a) to remove the bonding option for the first 50 overnight units. 2. Change 18.04 definition of Destination Resorts (D2) to retain the current 2:1 ratio of individually-owned units and overnight lodging. DCC 18.113.050(B)(24) and 18.113.060(D)(2) and 18.113.070(U) also address the ratio and should retain the 2:1 ratio. 3. Add language to 18.113.070(U) requiring an annual resort accommodation report as defined in statute. 4. Add a new section 18.113.120 requiring conservation easements as defined in statute. IX. SCHEDULE Due to the two year length of time since the Planning Commission voted on this proposal, the Board of County Commissioners has invited the Planning Commission to attend the public hearing in an advisory capacity. The public hearing is scheduled for December 4, 2006 at 5:30 p.m. Please feel free to contact me at (541) 385-1404 with any questions or concerns. X. OPTIONS Attachment 1 contains the draft ordinance with Exhibits A and B showing the applicant's proposed language with the new language underlined and the language to be removed identified by strikethreugh. Exhibits C and D, submitted in the same format, show applicant's changes, with staff recommended changes highlighted. Option 1: Approve the proposal as submitted by the applicant. Option 2: Approve the proposal with the staff recommended changes to the application. Option 3: Modify the proposal. Attachments 1. Ordinance 2006-036 a. Exhibit A, Applicant proposed changes to DCC 18.04 b. Exhibit B, Applicant proposed changes to DCC 18.113 c. Exhibit C, Staff proposed changes to applicant's proposal for DCC 18.04 d. Exhibit D, Staff proposed changes to applicant's proposal for DCC 18.113 2. November 4, 2004 Planning Commission minutes 3. Application letter dated May 23, 2006 Paige 6 REVIEWED LEGAL COUNSEL REVIEWED CODE REVIEW COMMITTEE BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Ordinance Amending Title 18, of the Deschutes County Code Regarding Destination Resorts. ORDINANCE NO. 2006-036 WHEREAS, Sunriver Resort, Eagle Crest Resort and Pronghorn Resort have filed an application with the Deschutes County Planning Division that proposed text amendments to Title 18, the Deschutes County Zoning Ordinance, to the definitions of destination resorts and overnight lodging as well as amendments to the destination resort chapter, and WHEREAS, the text amendments are intended to align the Deschutes County Code ("DCC") with amended State Statute and the amended Statewide Planning Goal 8, and WHEREAS, the Deschutes County Planning Commission held a duly noticed pubic hearing on November 4, 2004, and recommended to the Board of County Commissioner ("Board") the proposed changes to Title 18 as described in Exhibits "A" and "B" with one amendment, and WHEREAS, the applicant then requested the proposal be put on hold, reopening TA-04-4 in May 2006, and WHEREAS, some areas were discovered that would argue for changes to the proposal as described in Exhibits "C" and "D", in order to ensure compliance with State Statute and Statewide Planning Goal 8, and WHEREAS, the Planning Commission and the Board held a duly noticed public hearing on December 4, 2006; now, therefore, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ORDAINS as follows: Section 1. AMENDMENT. DCC 18.04, Defmitions of Destination Resorts and Overnight Lodging area amended to read as described in Exhibit "C," attached hereto and by this reference incorporated herein, with new language underlined and language to be deleted in stfikethfou . Section 2. AMENDMENT. DCC 18.113, Destination Resorts, is amended to read as described in Exhibit "D," attached hereto and by this reference incorporated herein, with new language underlined and language to be deleted in striket4eugk. PAGE 1 OF 2 - DRAFT ORDINANCE NO. 2006-036 (12/04/06) Section 3. FINDINGS. The Board adopts the staff report adopted as Exhibit "E" to Ordinance 2006- 035, and incorporated herein by this reference, as its findings to support this Ordinance. Dated this of , 2006 BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON DENNIS R. LUKE, CHAIR BEV CLARNO, VICE CHAIR ATTEST: Recording Secretary MICHAEL M. DALY, COMMISSIONER Date of I" Reading: day of 12006. Date of 2nd Reading: day of , 2006. Record of Adoption Vote Commissioner Yes No Abstained Excused Dennis R. Luke Bev Clarno Michael M. Daly Effective date: day of , 2006. ATTEST: Recording Secretary PAGE 2 OF 2 - DRAFT ORDINANCE NO. 2006-036 (12/04/06) EXHIBIT "A" NOTE: denotes code provisions not amended by this ordinance. Chapter 18.04. TITLE, PURPOSE AND DEFINITIONS restaurants with seating for 100 persons, and 150 separate rentable units for overnight lodgings. 1. The 150 overnight lodging units may be phased in according to the timeline set forth in DCC 18.113.060(A) 1)(a through 18.04.030. Definitions. As used in DCC Title 18, the following words and phrases shall mean as set forth in DCC 18.04.030. "Destination resort" means a self-contained development providing visitor-oriented accommodations and developed recreational facilities in a setting with high natural amenities. To qualify as a "major destination resort" under Goal 8, a proposed development must meet the following standards: A. The resort is located on a site of 160 or more acres. B. At least 50 percent of the site is dedicated to permanent open space, excluding yards, street and parking areas. C. At least $2,000, 897 million (in 49S41993 dollars) is spent in the first phase on improvements for on-site-developed recreational facilities and visitor-oriented accommodations, exclusive of costs for land, sewer and water facilities and roads. Not less than one-third of this amount shall be spent on developed recreational facilities. faeilities intended te- serve-the-entire deav elopment and visiter oriepAed of be guafanteed thi-ettgh stifety bending E) JuvJtuuAiuuy Yi vi to a.cV do-ve Af sale of individual lats E) units. In phased developtnepAs, develope re eati al f: eilities and other t f^ t•.•° .........d..d to serve u Yui tivuiui phase shall b vViiJi tfNV etv°u p11V1 V sales in that phase LSSAI D. Visitor-oriented accommodations are provided, including meeting rooms, 2. The number of individually-owned residential units that do not meet the definition of overni t lodging in DCC 18.04.030 shall not exceed 21/2 will net exeeed two such units for each unit of overnight lodging. 3. The developed recreational facilities key facilities intended to serve the entire development, and visitor oriented accommodation must be physically provided or be guaranteed through surety bonding or substantially equivalent financial assurances prior to closure of sale of individual lots or units, or as allowed by DCC 18.113.060(A)(1)(a) through (c). In phased developments, developed recreational facilities and other key facilities intended to serve a particular phase shall be construced prior to sales in that phase or guaranteed through surety bonding. E. Commercial uses limited to those types and levels necessary to meet the needs of visitors to the development. Industrial uses are not permitted. "Overnight lodgings" with respect to destination resorts, means permanent, separately rentable accommodations that are not available for residential use. Overnight lodgings include hotel or motel rooms, cabins and time-share units. Individually-owned units may be considered overnight lodgings if they are available for overnight rental use by the general public for at least 4-538 weeks per calendar year through a central reservation and check-in service operated by the destination resort or through a real estate property manager, as defined in ORS 696.010. Tent sites, recreational vehicle parks, mobile PAGE 1 OF 2 - DRAFT EXHIBIT "A" TO ORDINANCE 2006-036 (12/04/2006) EXHIBIT "A" homes, dormitory rooms and similar accommodations do not qualify as overnight lodging for the purpose of this definition. PAGE 2 OF 2 - DRAFT EXHIBIT "A" TO ORDINANCE 2006-036 (12/04/2006) EXHIBIT "B" Chapter 18.113. DESTINATION RESORTS ZONE - DR 18.113.010. Purpose. 18.113.020. Applicability. 18.113.025. Application to existing resorts. 18.113.030. Uses in destination resorts. 18.113.040. Application submission. 18.113.050. Requirements for conditional use permit and conceptual master plan applications. 18.113.060. Standards for destination resorts. 18.113.070. Approval criteria. 18.113.075. Imposition of conditions. 18.113.080. Procedure for modification of a conceptual master plan. 18.113.090. Requirements for final master plan. 18.113.100. Procedure for approval of final master plan. 18.113.110. Provision of streets, utilities, developed recreational facilities and visitor-oriented accommodations. 18.113.010. Purpose. A. The purpose of the DR Zone is to establish a mechanism for siting destination resorts to ensure compliance with LCDC Goal 8 and the County Comprehensive Plan. The destination resort designation is intended to identify land areas which are available for the siting of destination resorts, but which will only be developed if consistent with the purpose and intent of DCC 18.113 and Goal 8. B. The DR Zone is an overlay zone. The DR Zone is intended to provide for properly designed and sited destination resort facilities which enhance and diversify the recreational opportunities and the economy of Deschutes County. The DR Zone will ensure resort development that compliments the natural and cultural attractiveness of the area without significant adverse effect on commercial farming and forestry, environmental and natural features, cultural and historic resources and their settings and other significant resources. C. It is the intent of DCC 18.113 to establish procedures and standards for developing destination resorts while ensuring that all applicable County Comprehensive Plan policies are achieved. D. It is the intent of DCC 18.113 to ensure that all elements of a destination resort which are proposed are financially secured in a manner which will protect the public's interest should the development not be completed as proposed. E. It is not the intent of DCC 18.113 to site developments that are in effect rural subdivisions, whose primary purpose is to serve full-time residents of the area. (Ord. 92-004 § 13, 1992) 18.113.020. Applicability. A. The provisions of DCC 18.113 shall apply to proposals for the development of destination resorts, as defined in DCC Title 18, in areas designated DR by the County zoning maps. The provisions of DCC 18.113 shall not apply to any development proposal in an area designated DR other than a destination resort. B. When these provisions are applicable, they shall supersede all other provisions of the underlying zone. Other provisions of the zoning ordinance, made applicable by specific map designations, such as the SMIA, AH, CH, FP or LM, or otherwise applicable under the terms of the zoning ordinance text shall remain in full force and effect, unless otherwise specified herein. C. The provisions of DCC 18.113 apply to destination resorts sited through the Goal 2 exception process. (Ord. 92-004 § 13, 1992) 18.113.025. Application to existing resorts. Expansion proposals of existing developments approved as destination resorts shall meet the following criteria: PAGE 1 OF 13 - DRAFT EXHIBIT "B" TO ORDINANCE 2006-036 (12/04/2006) EXHIBIT "B" A. Meet all criteria of DCC 18.113 without consideration of any existing development; or B. Meet all criteria of DCC 18.113 for the entire development (including the existing approved destination resort development and the proposed expansion area), except that as to the area covered by the existing destination resort, compliance with setbacks and lot sizes shall not be required. If the applicant chooses to support its proposal with any part of the existing development, applicant shall demonstrate that the proposed expansion will be situated and managed in a manner that it will be integral to the remainder of the resort. (Ord. 92-004 § 13, 1992) 18.113.030. Uses in destination resorts. The following uses are allowed, provided they are part of, and are intended to serve persons at, the destination resort pursuant to DCC 18.113.030 and are approved in a final master plan: A. Visitor-oriented accommodations designed to provide for the needs of visitors to the resort: 1. Overnight lodging, including lodges, hotels, motels, bed and breakfast facilities, time-share units and similar transient lodging facilities; 2. Convention and conference facilities and meeting rooms; 3. Retreat centers; 4. Restaurants, lounges and similar eating and drinking establishments; and 5. Other similar visitor-oriented accommodations consistent with the purposes of DCC 18.113 and Goal 8. B. Developed recreational facilities designed to provide for the needs of visitors and residents of the resort; 1. Golf courses and clubhouses; 2. Indoor and outdoor swimming pools; 3. Indoor and outdoor tennis courts; 4. Physical fitness facilities; 5. Equestrian facilities; 6. Wildlife observation shelters; 7. Walkways, bike paths, jogging paths, equestrian trails; 8. Other similar recreational facilities consistent with the purposes of DCC 18.113 and Goal 8. C. Residential accommodations: 1. Single-family dwellings; 2. Duplexes, triplexes, fourplexes and multi-family dwellings; 3. Condominiums; 4. Townhouses; 5. Living quarters for employees; 6. Time-share projects. D. Commercial services and specialty shops designed to provide for the visitors to the resort: 1. Specialty shops, including but not limited to delis, clothing stores, bookstores, gift shops and specialty food shops; 2. Barber shops/beauty salons; 3. Automobile service stations limited to fuel sales, incidental parts sales and minor repairs; 4. Craft and art studios and galleries; 5. Real estate offices; 6. Convenience stores; 7. Other similar commercial services which provide for the needs of resort visitors and are consistent with the purposes of DCC 18.113 and Goal 8. E. Uses permitted in open space areas generally include only those uses that, except as specified herein, do not alter the existing or natural landscape of the proposed open space areas. No improvements, development or other alteration of the natural or existing landscape shall be allowed in open space areas, except as necessary for development of golf course fairways and greens, hiking and bike trails, lakes and ponds and primitive picnic facilities including park benches and picnic tables. Where farming activities would be consistent with identified preexisting open space uses, irrigation equipment and associated pumping facilities shall be allowed. F. Facilities necessary for public safety and utility service within the destination resort. PAGE 2 OF 13 - DRAFT EXHIBIT "B" TO ORDINANCE 2006-036 (12/04/2006) EXHIBIT "B" G. Other similar uses permitted in the underlying zone consistent with the purposes of DCC 18.113.030. H. Accessory Uses in Destination Resorts: 1. The following accessory uses shall be permitted provided they are ancillary to the destination resort and consistent with the purposes of DCC 18.113 and Goal 8: a. Transportation-related facilities excluding airports; b. Emergency medical facilities; c. Storage structures and areas; d. Kennels as a service for resort visitors only; e. Recycling and garbage collection facilities; f. Other similar accessory uses consistent with the purposes of DCC 18.113 and Goal 8. (Ord. 92-004 § 13, 1992) 18.113.040. Application submission. The authorization of a permit for a destination resort shall consist of three steps. A. Conceptual Master Plan and Conditional Use Permit for Destination Resort. A conceptual master plan (CMP) shall be submitted which addresses all requirements established in DCC 18.113.040. The CMP application shall be processed as if it were a conditional use permit under DCC Title 22, shall be subject to DCC 18.128.010, 18.128.020 and 18.128.030 and shall be reviewed for compliance with the standards and criteria set forth in DCC 18.113. B. Final Master Plan. The applicant shall prepare a final master plan (IMP) which incorporates all requirements of the County approval for the CMP. The Planning Director shall review the IMP to determine if it complies with the approved CMP and all conditions of approval of the conditional use permit. The Planning Director shall have the authority to approve, deny or return the IMP to the applicant for additional information. When interpretations of the Planning Director involve issues which are discretionary, the IMP approval shall be treated as a land use permit in accordance with DCC Title 22. C. Site Plan Review. Each element or development phase of the destination resort must receive additional approval through the required site plan review (DCC 18.124) or subdivision process (DCC Title 17). In addition to findings satisfying the site plan or subdivision criteria, findings shall be made that the specific development proposal complies with the standards and criteria of DCC 18.113 and the IMP. (Ord. 92-004 § 13, 1992) 18.113.050. Requirements for conditional use permit and conceptual master plan applications. The CMP provides the framework for development of the destination resort and is intended to ensure that the destination resort meets the requirements of DCC 18.113. The CMP application shall include the following information: A. Illustrations and graphics to scale, identifying: 1. The location and total number of acres to be developed as a planned destination resort; 2. The subject area and all land uses adjacent to the subject area; 3. The topographic character of the site; 4. Types and general location of proposed development uses, including residential and commercial uses; 5. Major geographic features; 6. Proposed methods of access to the development, identifying the main vehicular circulation system within the resort and an indication of whether streets will be public or private; 7. Major pedestrian, equestrian and bicycle trail systems; 8. Important natural features of the site, including habitat of threatened or endangered species, streams, rivers, wetlands and riparian vegetation within 200 feet of streams, rivers and wetlands. PAGE 3 OF 13 - DRAFT EXHIBIT "B" TO ORDINANCE 2006-036 (12/04/2006) EXHIBIT "B" 9. All uses proposed within landscape Works or the Oregon Department of management corridors identified by the Transportation, or both) at the same time comprehensive plan or zoning ordinance. as the conceptual master plan and shall 10. The location and number of acres be prepared by a licensed traffic engineer reserved as open space, buffer area, or to the minimum standards of the road common area. Areas designated as "open authorities. space," "buffer area," or "common area" 3. A description of how the proposed should be clearly illustrated and labeled destination resort will satisfy the as such; standards and criteria of DCC 18.113.060 11. All proposed recreational amenities; and 18.113.070; 12. Proposed overall density. 4. Design guidelines and development standards defining visual and aesthetic B. Further information as follows: parameters for: 1. A description of the natural a. Building character; characteristics of the site and surrounding b. Landscape character; areas, including a description of c. Preservation of existing topography resources and the effect of the destination and vegetation; resort on the resources; methods d. Siting of buildings; and employed to mitigate adverse impacts on e. Proposed standards for minimum lot resources; analysis of how the overall area, width, frontage, lot coverage, values of the natural features of the site setbacks and building heights. will be preserved, enhanced or utilized in 5. An open space management plan which the design concept for the destination includes: resort; and a proposed resource a. An explanation of how the open protection plan to ensure that important space management plan meets the natural features will be protected and minimum standards of DCC 18.113 maintained. Factors to be addressed for each phase of the development; inc include: . An inventory of the important natural b a. Compatibility of soil composition for features identified in the open space proposed development(s) and areas and any other open space and erosion hazard; potential values present in the open natural b. Geology, including areas of potential instability; space; c. A set of management prescriptions C. Slope and general topography; that will operate to maintain and d. Areas subject to flooding; conserve in perpetuity any identified e. Other hazards or development important natural features and other constraints; natural or open space values present f. Vegetation; in the open space, g. Water areas, including streams, d. Deed restrictions that will assure that lakes, ponds and wetlands; the open space areas are maintained h. Important natural features; perpetuity. as open space in i. Landscape management corridors; 6. An explanation of public use of facilities j . Wildlife. and amenities on the site. 2. A traffic study which addresses (1) 7. A description of the proposed method of impacts on affected County, city and utility systems, including providing all state road systems and (2) transportation the location and sizing of the utility improvements necessary to mitigate any systems; such impacts. The study shall be 8. A description of the proposed order and submitted to the affected road authority schedule for phasing, if any, of all (either the County Department of Public development including an explanation of PAGE 4 OF 13 - DRAFT EXHIBIT "B" TO ORDINANCE 2006-036 (12/04/2006) EXHIBIT "B" 9 10 II when facilities will be provided and how they will be secured if not completed prior to closure of sale of individual lots or units; An explanation of how the destination resort has been sited or designed to avoid or minimize adverse effects or conflicts on adjacent lands. The application shall identify the surrounding uses and potential conflicts between the destination resort and adjacent uses within 660 feet of the boundaries of the parcel or parcels upon which the resort is to be developed. The application shall explain how any proposed buffer area will avoid or minimize adverse effects or conflicts; A description of the proposed method for providing emergency medical facilities and services and public safety facilities and services including fire and police protection; A study prepared by a hydrologist, engineering geologist or similar professional certified in the State of Oregon describing: a. An estimate of water demands for the destination resort at maximum buildout, including a breakdown of estimated demand by category of consumption, including but not limited to residential, convnercial, golf courses and irrigated common areas; b. Availability of water for estimated demands at the destination resort, including (1) identification of the proposed source; (2) identification of all available information on ground and surface waters relevant to the determination of adequacy of water supply for the destination resort; (3) identification of the area that may be measurably impacted by the water used by the destination resort (water impact area) and an analysis supporting the delineation of the impact area; and (4) a statistically valid sampling of domestic and other wells within the impact area; c. A water conservation plan including an analysis of available measures which are commonly used to reduce water consumption. This shall include a justification of the chosen water conservation plan. The water conservation plan shall include a wastewater disposal plan utilizing beneficial use of reclaimed water to the maximum extent practicable. For the purposes of DCC 18.113.050, beneficial uses shall include, but are not limited to: i. Irrigation of golf courses and greenways; ii. Establishment of artificial wetlands for wildlife habitation. 12. An erosion control plan for all disturbed land, as required by ORS 468. This plan shall include storm and melt water erosion control to be implemented during all phases of construction and permanent facilities or practices for the continuing treatment of these waters. This plan shall also explain how the water shall be used for beneficial use or why it cannot be used as such; 13. A description of proposed sewage disposal methods; 14. Wildfire prevention, control and evacuation plans; 15. A description of interim development including temporary structures related to sales and development; 16. Plans for owners' associations and related transition of responsibilities and transfer of property; 17. A description of the methods of ensuring that all facilities and cominon areas within each phase will be established and will be maintained in perpetuity; 18. A survey of housing availability for employees based upon income level and commuting distance; 19. An economic impact and feasibility analysis of the proposed development prepared by a qualified professional economist(s) or financial analyst(s) shall be provided which includes: PAGE 5 OF 13 - DRAFT EXHIBIT "B" TO ORDINANCE 2006-036 (12/04/2006) EXHIBIT "B" a. An analysis which addresses the economic viability of the proposed development; b. Fiscal impacts of the project including changes in employment, increased tax revenue, demands for new or increased levels of public services, housing for employees and the effects of loss of resource lands during the life of the project. 20. A solid waste management plan; 21. ^ d tion of the system to be used f?r the management of any individually owned nm'tthat will be used - €er evemight !edging and how it will be implemented, ineluding proposed rental centfaet previsions to assn e that any individually owned !edging facilities w i]4 be available for ovemight fepAal use by t i blie for- at least 45 wee! 0 0 tion and ehee ' : e A description of the mechanism to be used to ensure that the destination resort provides an adequate supply of overnight lodging units to maintain compliance with the 150-unit minimum and 21/2 to 1 ratio set forth in DCC 18.113.060(D)(2). The mechaniim shall meet the requirements of DCC 18.113.070(U); 22. If the proposed destination resort is in a SMIA combining zone, DCC 18.56 shall be addressed; 23. If the proposed destination resort is in an LM combining zone, DCC 18.84 shall be addressed; 24. A survey of historic and cultural resources inventoried on an acknowledged Goal 5 inventory; 25. Other information as may reasonably be required by the Planning Director to address the effect of the proposed development as related to the requirements of DCC Title 18. (Ord. 92-004 § 13, 1992) 18.113.060. Standards for destination resorts. The following standards shall govern consideration of destination resorts: A. The destination resort shall, in the first phase, provide for and include as part of the CMP the following minimum requirements: 1. At least 150 separate rentable units for visitor-oriented lodging. The resort may elect to phase in the 150 overnight lodging units as follows: a. At least 50 units of overnight lodging shall be constructed or guaranteed through surety bonding or equivalent financial assurance prior to the closure of sale of individual lots or units, and; b. At least 50 of the remaining 100 required overnight lodging units shall be constructed or guaranteed through surety bonding or equivalent financial assurance within 5 years of the closure of sale of individual lots or units, and; c. The remaining required overnight lodging units shall be constructed or guaranteed through surety bonding or equivalent financial assurance within 10 years of the closure of sale of individual lots or units. d. If the developer of a resort guarantees all or a portion of the overnight lodging, units required under subsection 18.113.060(A)(1 through surety bonding or other equivalent financial assurance, the developer shall begin construction of the subject overnight lodging units within 4 years of the date of execution of the surety bond or other equivalent financial assurance. 2. Visitor-oriented eating establishments for at least 100 persons and meeting rooms which provide eating for at least 100 persons. 3. The aggregate cost of developing the overnight lodging facilities, developed recreational facilities, and the eating establishments and meeting rooms required in DCC 18.113.060(A)(1) and (2) shall be at least $2,000,000 7,000,000 (in 44841993 dollars). 4. At least $2,000,000 2,333,333 of the $7,000,000 (in 19-841993 dollars) total minimum investment required by DCC 18.113.060(A)(3) shall be spent on developed recreational facilities. PAGE 6 OF 13 - DRAFT EXHIBIT "B" TO ORDINANCE 2006-036 (12/04/2006) EXHIBIT "B" 5. The facilities and accommodations resort or by a real estate property required by DCC 18.113.060 must be manager, as defined in ORS 696.010. physically provided or financially assured pursuant to DCC 18.113.110 E. Phasing. A destination resort authorized prior to closure of sales, rental or lease of pursuant to DCC 18.113.060 may be any residential dwellings or lots, or as developed in phases. If a proposed resort is allowed by DCC 18.113.060(A (1)(a) to be developed in phases, each phase shall through (c). be as described in the CMP. Each individual phase shall meet the following requirements: B. All destination resorts shall have a minimum 1. Each phase, together with previously of 160 contiguous acres of land. Acreage completed phases, if any, shall be split by public roads or rivers or streams shall capable of operating in a manner count toward the acreage limit, provided that consistent with the intent and purpose of the CMP demonstrates that the isolated DCC 18.113 and Goal 8. acreage will be operated or managed in a 2. The first phase and each subsequent manner that will be integral to the remainder phase of the destination resort shall of the resort. cumulatively meet the minimum C. All destination resorts shall have direct requirements of DCC 18.113.060 and access onto a state or County arterial or DCC 18.113.070. collector roadway, as designated by the 3. Each phase may include two or more Comprehensive Plan. distinct noncontiguous areas within the destination resort. D. A destination resort shall, cumulatively and for each phase, meet the following minimum F. Destination resorts shall not exceed a density requirements: of one and one-half dwelling units per acre 1. The resort shall have a minimum of 50 including residential dwelling units and percent of the total acreage of the excluding visitor-oriented overnight lodging. development dedicated to permanent G. Dimensional Standards: open space, excluding yards, streets and 1. The minimum lot area, width, lot parking areas. Portions of individual coverage, frontage and yard requirements residential lots and landscape area and building heights otherwise applying requirements for developed recreational to structures in underlying zones and the facilities, visitor-oriented provisions of DCC 18.116 relating to accommodations or multi-family or solar access shall not apply within a commercial uses established by DCC destination resort. These standards shall 18.124.070 shall not be considered open be determined by the Planning Director space; or Hearings Body at the time of the 2. Individually-owned residential units that CMP. In determining these standards, do not meet the definition of overnight the Planning Director or Hearings Body lodging in DCC 18.04.030 shall not shall find that the minimum specified in exceed two-21/2 such units for each unit the CMP are adequate to satisfy the of visitor-oriented overnight lodging. intent of the comprehensive plan relating Individually-owned units shall be to solar access, fire protection, vehicle considered visitor-oriented lodging if access, visual management within they are available for overnight rental use landscape management corridors and to by the general public for at least 438 protect resources identified by LCDC weeks per calendar year through one or Goal 5 which are identified in the more central reservation and check-in Comprehensive Plan. At a minimum, a service(s).- operated by the destination 100-foot setback shall be maintained from all streams and rivers. Rimrock PAGE 7 OF 13 - DRAFT EXHIBIT "B" TO ORDINANCE 2006-036 (12/04/2006) EXHIBIT "B" setbacks shall be as provided in DCC Title 18. No lot for a single-family residence shall exceed an overall project average of 22,000 square feet in size. 2. Exterior setbacks. a. Except as otherwise specified herein, all development (including structures, site-obscuring fences of over three feet in height and changes to the natural topography of the land) shall be setback from exterior property lines as follows: i. Three hundred fifty feet for commercial development including all associated parking areas; ii. Two hundred fifty feet for multi-family development and visitor-oriented accommodations (except for single-family residences) including all associated parking areas; iii. One hundred fifty feet for above-grade development other than that listed in DCC 18.113.060(G)(2)(a)(1) and (ii); iv. One hundred feet for roads; v. Fifty feet for golf courses; and vi. Fifty feet for jogging trails and bike paths where they abut private developed lots and no setback for where they abut public roads and public lands. b. Notwithstanding DCC 18.113.060(G)(2)(a)(iii), above-grade development other than that listed in DCC 18.113.060(G)(2)(a)(i) and (ii) shall be set back 250 feet in circumstances where state highways coincide with exterior property lines. c. The setbacks of DCC 18.113.060 shall not apply to entry roadways and signs. H. Floodplain requirements. The floodplain zone (FP) requirements of DCC 18.96 shall apply to all developed portions of a destination resort in an FP Zone in addition to any applicable criteria of DCC 18.113. Except for floodplain areas which have been granted an exception to LCDC goals 3 and 4, floodplain zones shall not be considered part of a destination resort when determining compliance with the following standards; 1. One hundred sixty acre minimum site; 2. Density of development; 3. Open space requirements. A conservation easement as described in DCC Title 18 shall be conveyed to the County for all areas within a floodplain which are part of a destination resort. 1. The Landscape Management Combining Zone (LM) requirements of DCC 18.84 shall apply to destination resorts where applicable. J. Excavation, grading and fill and removal within the bed and banks of a stream or river or in a wetland shall be a separate conditional use subject to all pertinent requirements of DCC Title 18. K. Time-share units not included in the overnight lodging calculations shall be subject to approval under the conditional use criteria set forth in DCC 18.128. Time-share units identified as part of the destination resort's overnight lodging units shall not be subject to the time-share conditional use criteria of DCC 18.128. (Ord. 92-004 § 13, 1992) 18.113.070. Approval criteria. In order to approve a destination resort, the Planning Director or Hearings Body shall find from substantial evidence in the record that: A. The subject proposal is a destination resort as defined in DCC 18.040.030. B. All standards established by DCC 18.113.060 are or will be met. C. The economic analysis demonstrates that: 1. The necessary financial resources are available for the applicant to undertake the development consistent with the minimum investment requirements established by DCC 18.113. 2. Appropriate assurance has been submitted by lending institutions or other PAGE 8 OF 13 - DRAFT EXHIBIT "B" TO ORDINANCE 2006-036 (12/04/2006) EXHIBIT "B" financial entities that the developer has 2. Providing transportation facilities or can reasonably obtain adequate adequate to support the proposed financial support for the proposal once development consistent with Oregon approved. Administrative Rules chapter 660, 3. The destination resort will provide a Division 12; or substantial financial contribution which 3. Altering land use densities, design positively benefits the local economy requirements or using other methods to throughout the life of the entire project, reduce demand for automobile travel and considering changes in employment, to meet travel needs through other demands for new or increased levels of modes. public service, housing for employees A destination resort significantly affects and the effects of loss of resource land. 4. The natural amenities of the site a transportation facility if it would result considered together with the identified in levels of travel or access that are developed recreation facilities to be inconsistent with the functional provided with the resort, will constitute a classification of a facility or would primary attraction to visitors, based on reduce the level of service of the facility the economic feasibility analysis. below the minimum acceptable level identified in the relevant transportation D. Any negative impact on fish and wildlife system plan. resources will be completely mitigated so that a. Where the option of providing there is no net loss or net degradation of the transportation facilities is chosen, the resource. applicant shall be required to E. Important natural features, including but not improve impacted roads to the full limited to significant wetlands, riparian standards of the affected authority as habitat, and landscape management corridors a condition of approval. Timing of will be maintained. Riparian vegetation such improvements shall be based within 100 feet of streams, rivers and upon the timing of the impacts significant wetlands will be maintained. created by the development as Alterations to important natural features, determined by the traffic study or the including placement of structures, is allowed recommendations of the affected so long as the overall values of the feature are road authority. maintained. b. Access within the project shall be adequate to serve the project in a safe F. The development will not force a significant and efficient manner for each phase change in accepted farm or forest practices or of the project. significantly increase the cost of accepted farm or forest practices on surrounding lands H. The development will not create the potential devoted to farm or forest use. for natural hazards identified in the County Comprehensive Plan. No structure will be G. Destination resort developments that located on slopes exceeding 25 percent. A significantly affect a transportation facility wildfire management plan will be shall assure that the development is implemented to ensure that wildfire hazards consistent with the identified function, are minimized to the greatest extent practical capacity and level of service of the facility. and allow for safe evacuation. With the This shall be accomplished by either: exception of the slope restriction of DCC 1. Limiting the development to be 18.113.070, which shall apply to destination consistent with the planned function, resorts in forest zones, wildfire management capacity and level of service of the of destination resorts in forest zones shall be transportation facility; subject to the requirements of DCC PAGE 9 OF 13 - DRAFT EXHIBIT "B" TO ORDINANCE 2006-036 (12/04/2006) EXHIBIT "B" 18.40.070, where applicable, as to each individual structure and dwelling. 1. Adequate public safety protection will be available through existing fire districts or will be provided onsite according to the specification of the state fire marshal. If the resort is located outside of an existing fire district the developer will provide for staffed structural fire protection services. Adequate public facilities to provide for necessary safety services such as police and fire will be provided on the site to serve the proposed development. J. Streams and drainage. Unless otherwise agreed to in writing by the adjoining property owner(s), existing natural drainages on the site will not be changed in any manner which interferes with drainage patterns on adjoining property. All surface water drainage changes created by the development will be contained on site in a manner which meets all standards of the Oregon State Department of Environmental Quality (DEQ). The erosion control plan for the subject development will meet all standards of ORS 468. K. Adequate water will be available for all proposed uses at the destination resort, based upon the water study and a proposed water conservation plan. Water use will not reduce the availability of water in the water impact areas identified in the water study considering existing uses and potential development previously approved in the affected area. Water sources shall not include any perched water table. Water shall only be taken from the regional aquifer. Where a perched water table is pierced to access the regional aquifer, the well must be sealed off from the perched water table. L. The wastewater disposal plan includes beneficial use to the maximum extent practicable. Approval of the CMP shall be conditioned on applicant's making application to DEQ for a Water Pollution Control Facility (WPCF) permit consistent with such an approved wastewater disposal plan. Approval shall also be conditioned upon applicant's compliance with applicable Oregon Administrative Rules regarding beneficial use of waste water, as determined by DEQ. Applicant shall receive approval of a WPCF permit consistent with this provision prior to applying for approval for its Final Master Plan under DCC 18.113. M. The resort will mitigate any demands it creates on publicly-owned recreational facilities on public lands in the surrounding area. N. Site improvements will be located and designed to avoid or minimize adverse effects of the resort on the surrounding land uses. Measures to accomplish this may include establishment and maintenance of buffers between the resort and adjacent land uses, including natural vegetation and appropriate fences, berms, landscaped areas and similar types of buffers; and setback of structures and other developments from adjacent land uses. 0. The resort will be served by an on-site sewage system approved by DEQ and a water system approved by the Oregon State Health Division except where connection to an existing public sewer or water system is allowed by the County Comprehensive Plan, such service will be provided to the resort. P. The destination resort will not alter the character of the surrounding area in a manner that substantially limits, impairs or prevents permtted or conditional uses of surrounding properties. Q. Commercial, cultural, entertainment or accessory uses provided as part of the destination resort will be contained within the development and will not be oriented to public highways adjacent to the property. Commercial, cultural and entertainment uses allowed within the destination resort will be incidental to the resort itself. As such, these ancillary uses will be permitted only at a scale suited to serve visitors to the resort. The commercial uses permitted in the destination resort will be limited in type, location, number, dimensions and scale (both individually and cumulatively) to that PAGE 10 OF 13 - DRAFT EXHIBIT "B" TO ORDINANCE 2006-036 (12/04/2006) EXHIBIT "B" necessary to serve the needs of resort visitors. 1. Designation on the plat of whie A commercial use is necessary to serve the indi idt ally owfted-- -tt~re -ta-be needs of visitors if: considered to be lodging-as 1. Its primary purpose is to provide goods used in DGG --1$.113 showing the or services that are typically provided to location of all of the required overnight overnight or other short-term visitors to lodging units, with a particular notation the resort, or the use is necessary for showing which individually owned operation, maintenance or promotion of residential units qualify as overnight the destination resort; and lodging units. The plat shall demonstrate 2. The use is oriented to the resort and is compliance with the 21/2 to 1 ratio set located away from or screened from forth in DCC 18.113.060(D)(2); highways or other major through 2. Deed restrictions lifndting use of s h roadways. ide ed-premises--te requiring the R. A plan exists to ensure a transfer of common individually-owned residential units areas, facilities such as sewer, water, streets designated as overnight lodging purposes and responsibility for police and fire `mder- DCG 18.113 fef units to be protection to owners associations or similar available for rental at least 4538 weeks groups if contemplated. If such transfer is each year through a cental reservation not contemplated, the owner or responsible and check-in service operated by th party shall be clearly designated. Adequate resort or by a real estate propert y open space, facility maintenance and police manager, as defined in ORS 696.010; and fire protection shall be ensured in 3. ?nelusien in the ter&P's- ef-ern-`M perpetuity in a manner acceptable to the irrevocable provision in the resort Count CC&R's, enforceable by the County S. Temporary structures will not be allowed re uiring the individually-owned unless approved as part of the CMP. residential units designated as overnight Temporary structures will not be allowed for lodging pur-poses wider-DCG 18. 12 more than 18 months and will be subject to units to be available for rental far-at least all use and site plan standards of DCC Title 4538 weeks each year through a central 18. reservation and check-in service operated T. The open space management plan is by the resort or by_a real estate property sufficient to protect in perpetuity identified manager, as defined in ORS 696.010; open space values. 4. Inclusion of language in any rental contract between the owner of the-an U. A mechanism to ensure that the destination individually-owned residential unit resort provides an adequate supply of designated as an ovemi hg t lodging unit overnight lodging units to maintain _ and any central reservation and check-in compliance with the 150-unit minimum and service or real estate property manager the 21/2 to 1 ratio set forth in DCC requiring that such tu}its-unit be rnade 18.113.060(D)(2). The mechanism shall also available as e v efnisht ledgin - f eilit es document that individually-owned residential undef DGC 18.1-113 for rental at least 45 units eew4ing-tev~'ar-d-thhe-designated as 38 weeks each year; and overnight lodging total-remain. units are 5. A requirement that each such available for rental for at least 4538 weeks individually-owned residential unit per calendar year through a central designated as an overnight lodging unit reservation and check-in service-.- -operated by be registered and a report be filed on the resort or by a real estate propert y each such unit yearly by the owner or manager, as defined in ORS 696.010. Such a central booking agent on January 1 with mechanism shall include all of the following: PAGE 11 OF 13 - DRAFT EXHIBIT "B" TO ORDINANCE 2006-036 (12/04/2006) EXHIBIT "B" the Planning Division as to the following information: a. Who the owner or owners have been over the last year; b. How many nights out of the year the unit was available for rent through the central reservation and check-in service; and c. How many nights out of the year the unit was rented out as an overnight lodging facility under DCC 18.113. (Ord. 92-032 § 1, 1992; Ord. 92-004 § 13, 1992) 18.113.075. Imposition of conditions. The standards made applicable by DCC 18.113 may be met by the imposition of conditions calculated to insure that the standard will be met. (Ord. 92-004 § 13, 1992) 18.113.080. Procedure for modification of a conceptual master plan. Any substantial change, as determined by the Planning Director, proposed to an approved CMP shall be reviewed in the same manner as the original CMP. An insubstantial change may be approved by the Planning Director. Substantial change to an approved CMP, as used in DCC 18.113.080, means an alteration in the type, scale, location, phasing or other characteristic of the proposed development such that findings of fact on which the original approval was based would be materially affected. (Ord. 92-004 § 13, 1992) 18.113.090. Requirements for final master plan. It shall be the responsibility of the applicant to provide a Final Master Plan (FMP) which includes text and graphics explaining and illustrating: A. The use, location, size and design of all important natural features, open space, buffer areas and common areas; B. The use and general location of all buildings, other than residential dwellings and the proposed density of residential development by location; C. Preliminary location of all sewer, water, storm drainage and other utility facilities and materials, and specifications and installation methods for water and waste water systems; D. Location and widths of all roads, streets, parking, pedestrian ways, equestrian trails and bike paths; E. Methods to be employed to buffer and mitigate potential adverse impacts on adjacent resource uses and property; F. Building elevations of visitor-oriented accommodations, recreational facilities and commercial services sufficient to demonstrate the architectural character of the proposed development; G. A description of all commercial uses including approximate size and floor area; H. The location of or distance to any emergency medical facilities and public safety facilities; 1. When a phase includes a residential subdivision, a general layout of the subdivision shall include the number of lots, minimum and maximum lot sizes, and approximate location of roadways shall be included: J. A description of measures taken, with copies of deed restrictions, CC&R's and rental contracts, to implement the requirements of DCC 18.113.070(U). identified ffleasur-es pef ealendaf year thfough --a--eentfal ,atier and epee, ; ° ° K. A description of measures taken, with copies of deed restrictions and a final management plan, to implement the open space management plan required by DCC 18.113. L. The status of all required off-site roadway improvements. M. Methods to be employed for managing automobile traffic demand. PAGE 12 OF 13 - DRAFT EXHIBIT "B" TO ORDINANCE 2006-036 (12/04/2006) EXHIBIT "B" N. A copy of a WPCF permit issued by DEQ consistent with the requirements of DCC (Zoning maps adopted by Ord. 92-031 § 1, 1992) 18.113.070(L). (Ord. 92-004 § 13, 1992) 18.113.100. Procedure for approval of final master plan. A. The FMP shall be submitted in a form approved by the County Planning Director consistent with DCC Title 22 for a development permit. The Planning Director shall review the FMP and if the Planning Director fmds that all standards of the CMP have been met, the FMP shall be approved in writing without notice. If approval the FMP involves the exercise of discretion, the FMP shall be treated as a land use action and notice shall be provided in accordance with DCC Title 22; B. If the Planning Director fmds evidence in the FMP of a substantial change from the CMP, the Planning Director shall advise the applicant to submit an application for modification or amendment of the CMP. (Ord. 92-004 § 13, 1992) 18.113.110. Provision of streets, utilities, developed recreational facilities and visitor-oriented accommodations. A. The Planning Director or Hearings Body shall find that all streets, utilities, developed recreational facilities and visitor-oriented accommodations required by the FMP are physically provided or are guaranteed through surety bonding or substantial financial assurances approved by the County prior to closure of sale of individual lots or units. B. Financial assurance or bonding to assure completion of streets and utilities, developed recreational facilities and visitor-oriented accommodations in the FMP shall be required pursuant to the security requirements for site plan review and subdivision review established by the Deschutes County Code. (Ord. 92-004 § 13, 1992; Ord. 92-003 § 1, 1992) PAGE 13 OF 13 - DRAFT EXHIBIT "B" TO ORDINANCE 2006-036 (12/04/2006) EXHIBIT "C" NOTE: denotes code provisions not amended by this ordinance. restaurants with seating for 100 persons, and 150 separate rentable units for overnight lodgings. Chapter 18.04. TITLE, PURPOSE AND DEFINITIONS 18.04.030. Definitions. As used in DCC Title 18, the following words and phrases shall mean as set forth in DCC 18.04.030. "Destination resort" means a self-contained development providing visitor-oriented accommodations and developed recreational facilities in a setting with high natural amenities. To qualify as a "major destination resort" under Goal 8, a proposed development must meet the following standards: A. The resort is located on a site of 160 or more acres. B. At least 50 percent of the site is dedicated to permanent open space, excluding yards, street and parking areas. C. At least $2-000;9997 million (in 141993 dollars) is spent in the first phase on improvements for on-site-developed recreational facilities and visitor-oriented accommodations, exclusive of costs for land, sewer and water facilities and roads. Not less than one-third of this amount shall be spent on developed recreational facilities. D. Visitor-oriented accommodations are provided, including meeting rooms, 1. The 150 overnight lodging units may be phased in according to the timeline set forth in DCC 18.113.060(A) 1)(a) through (c). 2. The number of individually-owned residential units that do not meet the definition of overnight lodging in DCC 18.04.030 shall not exceed 2h_) not exeeed ` such units for each unit of overnight lodging. 3. The developed recreational facilities key facilities intended to serve the entire development, and visitor oriented accommodation must be physically provided or be guaranteed through surety bonding or substantially equivalent financial assurances prior to closure of sale of individual lots or units, or as allowed by DCC 18.113.060(A)(1)(a) through (c) In phased developments, developed recreational facilities and other key facilities intended to serve a particular phase shall be construced prior to sales in that phase or guaranteed through surety bonding. E. Commercial uses limited to those types and levels necessary to meet the needs of visitors to the development. Industrial uses are not permitted. "Overnight lodgings" with respect to destination resorts, means permanent, separately rentable accommodations that are not available for residential use. Overnight lodgings include hotel or motel rooms, cabins and time-share units. Individually-owned units may be considered overnight lodgings if they are available for overnight rental use by the general public for at least 4§38 weeks per calendar year through a central reservation and check-in service operated by the destination resort or through a real estate property manager, as defined in ORS 696.010. Tent sites, recreational vehicle parks, mobile PAGE 1 OF 2 - DRAFT EXHIBIT "C" TO ORDINANCE 2006-036 (12/04/2006) EXHIBIT "C" homes, dormitory rooms and similar accommodations do not qualify as overnight lodging for the purpose of this definition. PAGE 2 OF 2 - DRAFT EXHIBIT "C" TO ORDWANCE 2006-036 (12/04/2006) EXHIBIT "D" Chapter 18.113. DESTINATION RESORTS ZONE - DR 18.113.010. Purpose. 18.113.020. Applicability. 18.113.025. Application to existing resorts. 18.113.030. Uses in destination resorts. 18.113.040. Application submission. 18.113.050. Requirements for conditional use permit and conceptual master plan applications. 18.113.060. Standards for destination resorts. 18.113.070. Approval criteria. 18.113.075. Imposition of conditions. 18.113.080. Procedure for modification of a conceptual master plan. 18.113.090. Requirements for final master plan. 18.113.100. Procedure for approval of final master plan. 18.113.110. Provision of streets, utilities, developed recreational facilities and visitor-oriented accommodations. 18.113.010. Purpose. A. The purpose of the DR Zone is to establish a mechanism for siting destination resorts to ensure compliance with LCDC Goal 8 and the County Comprehensive Plan. The destination resort designation is intended to identify land areas which are available for the siting of destination resorts, but which will only be developed if consistent with the purpose and intent of DCC 18.113 and Goal 8. B. The DR Zone is an overlay zone. The DR Zone is intended to provide for properly designed and sited destination resort facilities which enhance and diversify the recreational opportunities and the economy of Deschutes County. The DR Zone will ensure resort development that compliments the natural and cultural attractiveness of the area without significant adverse effect on commercial farming and forestry, environmental and natural features, cultural and historic resources and their settings and other significant resources. C. It is the intent of DCC 18.113 to establish procedures and standards for developing destination resorts while ensuring that all applicable County Comprehensive Plan policies are achieved. D. It is the intent of DCC 18.113 to ensure that all elements of a destination resort which are proposed are financially secured in a manner which will protect the public's interest should the development not be completed as proposed. E. It is not the intent of DCC 18.113 to site developments that are in effect rural subdivisions, whose primary purpose is to serve full-time residents of the area. (Ord. 92-004 § 13, 1992) 18.113.020. Applicability. A. The provisions of DCC 18.113 shall apply to proposals for the development of destination resorts, as defined in DCC Title 18, in areas designated DR by the County zoning maps. The provisions of DCC 18.113 shall not apply to any development proposal in an area designated DR other than a destination resort. B. When these provisions are applicable, they shall supersede all other provisions of the underlying zone. Other provisions of the zoning ordinance, made applicable by specific map designations, such as the SMIA, AH, CH, FP or LM, or otherwise applicable under the terms of the zoning ordinance text shall remain in full force and effect, unless otherwise specified herein. C. The provisions of DCC 18.113 apply to destination resorts sited through the Goal 2 exception process. (Ord. 92-004 § 13, 1992) 18.113.025. Application to existing resorts. Expansion proposals of existing developments approved as destination resorts shall meet the following criteria: PAGE 1 OF 13 - DRAFT EXHIBIT "D" TO ORDINANCE NO. 2006-036 (12/04/2006) EXHIBIT "D" A. Meet all criteria of DCC 18.113 without consideration of any existing development; or B. Meet all criteria of DCC 18.113 for the entire development (including the existing approved destination resort development and the proposed expansion area), except that as to the area covered by the existing destination resort, compliance with setbacks and lot sizes shall not be required. If the applicant chooses to support its proposal with any part of the existing development, applicant shall demonstrate that the proposed expansion will be situated and managed in a manner that it will be integral to the remainder of the resort. (Ord. 92-004 § 13, 1992) 18.113.030. Uses in destination resorts. The following uses are allowed, provided they are part of, and are intended to serve persons at, the destination resort pursuant to DCC 18.113.030 and are approved in a final master plan: A. Visitor-oriented accommodations designed to provide for the needs of visitors to the resort: 1. Overnight lodging, including lodges, hotels, motels, bed and breakfast facilities, time-share units and similar transient lodging facilities; 2. Convention and conference facilities and meeting rooms; 3. Retreat centers; 4. Restaurants, lounges and similar eating and drinking establishments; and 5. Other similar visitor-oriented accommodations consistent with the purposes of DCC 18.113 and Goal 8. B. Developed recreational facilities designed to provide for the needs of visitors and residents of the resort; 1. Golf courses and clubhouses; 2. Indoor and outdoor swimming pools; 3. Indoor and outdoor tennis courts; 4. Physical fitness facilities; 5. Equestrian facilities; 6. Wildlife observation shelters; 7. Walkways, bike paths, jogging paths, equestrian trails; 8. Other similar recreational facilities consistent with the purposes of DCC 18.113 and Goal S. C. Residential accommodations: 1. Single-family dwellings; 2. Duplexes, triplexes, fourplexes and multi-family dwellings; 3. Condominiums; 4. Townhouses; 5. Living quarters for employees; 6. Time-share projects. D. Commercial services and specialty shops designed to provide for the visitors to the resort: 1. Specialty shops, including but not limited to delis, clothing stores, bookstores, gift shops and specialty food shops; 2. Barber shops/beauty salons; 3. Automobile service stations limited to fuel sales, incidental parts sales and minor repairs; 4. Craft and art studios and galleries; 5. Real estate offices; 6. Convenience stores; 7. Other similar commercial services which provide for the needs of resort visitors and are consistent with the purposes of DCC 18.113 and Goal S. E. Uses permitted in open space areas generally include only those uses that, except as specified herein, do not alter the existing or natural landscape of the proposed open space areas. No improvements, development or other alteration of the natural or existing landscape shall be allowed in open space areas, except as necessary for development of golf course fairways and greens, hiking and bike trails, lakes and ponds and primitive picnic facilities including park benches and picnic tables. Where farming activities would be consistent with identified preexisting open space uses, irrigation equipment and associated pumping facilities shall be allowed. F. Facilities necessary for public safety and utility service within the destination resort. PAGE 2 OF 13 - DRAFT EXHIBIT "D" TO ORDINANCE NO. 2006-036 (12/04/2006) EXHIBIT "D" G Other similar uses permitted in the underlying zone consistent with the purposes of DCC 18.113.030. FMP approval shall be treated as a land use permit in accordance with DCC Title 22. H consistent with the purposes of DCC 18.113 and Goal 8. (Ord. 92-004 § 13, 1992) Accessory Uses in Destination Resorts: 1. The following accessory uses shall be permitted provided they are ancillary to the destination resort and consistent with the purposes of DCC 18.113 and Goal 8: a. Transportation-related facilities excluding airports; b. Emergency medical facilities; c. Storage structures and areas; d. Kennels as a service for resort visitors only; e. Recycling and garbage collection facilities; f. Other similar accessory uses 18.113.040. Application submission. The authorization of a permit for a destination resort shall consist of three steps. A. Conceptual Master Plan and Conditional Use Permit for Destination Resort. A conceptual master plan (CMP) shall be submitted which addresses all requirements established in DCC 18.113.040. The CMP application shall be processed as if it were a conditional use permit under DCC Title 22, shall be subject to DCC 18.128.010, 18.128.020 and 18.128.030 and shall be reviewed for compliance with the standards and criteria set forth in .DCC 18.113. B. Final Master Plan. The applicant shall prepare a final master plan (IMP) which incorporates all requirements of the County approval for the CMP. The Planning Director shall review the FMP to determine if it complies with the approved CMP and all conditions of approval of the conditional use permit. The Planning Director shall have the authority to approve, deny or return the IMP to the applicant for additional information. When interpretations of the Planning Director involve issues which are discretionary, the C. Site Plan Review. Each element or development phase of the destination resort must receive additional approval through the required site plan review (DCC 18.124) or subdivision process (DCC Title 17). In addition to findings satisfying the site plan or subdivision criteria, findings shall be made that the specific development proposal complies with the standards and criteria of DCC 18.113 and the IMP. (Ord. 92-004 § 13, 1992) 18.113.050. Requirements for conditional use permit and conceptual master plan applications. The CMP provides the framework for development of the destination resort and is intended to ensure that the destination resort meets the requirements of DCC 18.113. The CMP application shall include the following information: A. Illustrations and graphics to scale, identifying: 1. The location and total number of acres to be developed as a planned destination resort; 2. The subject area and all land uses adjacent to the subject area; 3. The topographic character of the site; 4. Types and general location of proposed development uses, including residential and commercial uses; 5. Major geographic features; 6. Proposed methods of access to the development, identifying the main vehicular circulation system within the resort and an indication of whether streets will be public or private; 7. Major pedestrian, equestrian and bicycle trail systems; 8. Important natural features of the site, including habitat of threatened or endangered species, streams, rivers, wetlands and riparian vegetation within 200 feet of streams, rivers and wetlands. PAGE 3 OF 13 - DRAFT EXHIBIT "D" TO ORDINANCE NO. 2006-036 (12/04/2006) EXHIBIT "D" 9. All uses proposed within landscape Works or the Oregon Department of management corridors identified by the Transportation, or both) at the same time comprehensive plan or zoning ordinance. as the conceptual master plan and shall 10. The location and number of acres be prepared by a licensed traffic engineer reserved as open space, buffer area, or to the minimum standards of the road common area. Areas designated as "open authorities. space," "buffer area," or "common area" 3. A description of how the proposed should be clearly illustrated and labeled destination resort will satisfy the as such; standards and criteria of DCC 18.113.060 11. All proposed recreational amenities; and 18.113.070; 12. Proposed overall density. 4. Design guidelines and development standards defining visual and aesthetic B. Further information as follows: parameters for: 1. A description of the natural a. Building character; characteristics of the site and surrounding b. Landscape character; areas, including a description of c. Preservation of existing topography resources and the effect of the destination and vegetation; resort on the resources; methods d. Siting of buildings; and employed to mitigate adverse impacts on e. Proposed standards for minimum lot resources; analysis of how the overall area, width, frontage, lot coverage, values of the natural features of the site setbacks and building heights. will be preserved, enhanced or utilized in 5. An open space management plan which the design concept for the destination includes: resort; and a proposed resource a. An explanation of how the open protection plan to ensure that important space management plan meets the natural features will be protected and minimum standards of DCC 18.113 maintained. Factors to be addressed for each phase of the development; include: b. An inventory of the important natural a. Compatibility of soil composition for features identified in the open space proposed development(s) and areas and any other open space and erosion hazard; potential values present in the open natural b. Geology, including areas of potential instability; space; c. A set of management prescriptions C. Slope and general topography; that will operate to maintain and d. Areas subject to flooding; conserve in perpetuity any identified e. Other hazards or development important natural features and other constraints; natural or open space values present £ Vegetation; the open space; in g. Water areas, including streams, d. Deed restrictions that will assure that lakes, ponds and wetlands; the open space areas are maintained features; h. Important natural f space in perpetuity. as open i. Landscape management corridors; 6. An explanation of public use of facilities j. Wildlife. amenities on the site. and 2. A traffic study which addresses (1) 7. A description of the proposed method of affected County, city and impacts on providing all utility systems, including state road systems and (2) transportation the location and sizing of the utility improvements necessary to mitigate any such impacts. The study shall be systems; S. A description of the proposed order and submitted to the affected road authority schedule for phasing, if any, of all (either the County Department of Public development including an explanation of PAGE 4 OF 13 - DRAFT EXHIBIT "D" TO ORDINANCE NO. 2006-036 (12/04/2006) EXHIBIT "D" 9 10 when facilities will be provided and how they will be secured if not completed prior to closure of sale of individual lots or units; An explanation of how the destination resort has been sited or designed to avoid or minimize adverse effects or conflicts on adjacent lands. The application shall identify the surrounding uses and potential conflicts between the destination resort and adjacent uses within 660 feet of the boundaries of the parcel or parcels upon which the resort is to be developed. The application shall explain how any proposed buffer area will avoid or minimize adverse effects or conflicts; A description of the proposed method for providing emergency medical facilities and services and public safety facilities and services including fire and police protection; A study prepared by a hydrologist, engineering geologist or similar professional certified in the State of Oregon describing: a. An estimate of water demands for the destination resort at maximum buildout, including a breakdown of estimated demand by category of consumption, including but not limited to residential, commercial, golf courses and irrigated common areas; b. Availability of water for estimated demands at the destination resort, including (1) identification of the proposed source; (2) identification of all available information on ground and surface waters relevant to the determination of adequacy of water supply for the destination resort; (3) identification of the area that may be measurably impacted by the water used by the destination resort (water impact area) and an analysis supporting the delineation of the impact area; and (4) a statistically valid sampling of domestic and other wells within the impact area; c. A water conservation plan including an analysis of available measures which are commonly used to reduce water consumption. This shall include a justification of the chosen water conservation plan. The water conservation plan shall include a wastewater disposal plan utilizing beneficial use of reclaimed water to the maximum extent practicable. For the purposes of DCC 18.113.050, beneficial uses shall include, but are not limited to: i. Irrigation of golf courses and greenways; ii. Establishment of artificial wetlands for wildlife habitation. 12. An erosion control plan for all disturbed land, as required by ORS 468. This plan shall include storm and melt water erosion control to be implemented during all phases of construction and permanent facilities or practices for the continuing treatment of these waters. This plan shall also explain how the water shall be used for beneficial use or why it cannot be used as such; 13. A description of proposed sewage disposal methods; 14. Wildfire prevention, control and evacuation plans; 15. A description of interim development including temporary structures related to sales and development; 16. Plans for owners' associations and related transition of responsibilities and transfer of property; 17. A description of the methods of ensuring that all facilities and common areas within each phase will be established and will be maintained in perpetuity; 18. A survey of housing availability for employees based upon income level and commuting distance; 19. An economic impact and feasibility analysis of the proposed development prepared by a qualified professional economist(s) or financial analyst(s) shall be provided which includes: PAGE 5 OF 13 - DRAFT EXHIBIT "D" TO ORDINANCE NO. 2006-036 (12/04/2006) EXHIBIT "D" a. An analysis which addresses the economic viability of the proposed development; b. Fiscal impacts of the project including changes in employment, increased tax revenue, demands for new or increased levels of public services, housing for employees and the effects of loss of resource lands during the life of the project. 20. A solid waste management plan; 21. ^ acacnFcrodorr vr rthe em to be used ~ f z-i-n-crr~sy'stccrrr co-o~.. the management efan raMdua4ly owned units hat-will-be used fe - evefflight ledgiiig and how it will be eentfaet- pfe'visions to asstffe that any b available f ` ( o l,t fent al use by the genefal publie for- at least 45 wee! pef ea}cr daf--yeaf t lfoug en l t and L 1 • A description of the mechanism to be used to ensure that the destination resort provides an adequate supply of overnight lodging units to maintain compliance with the 150-unit minimum and 24-02-2 to 1 ratio set forth in DCC 18.113.060(D)(2). The mechaniim shall meet the requirements of DCC 18.113.070(0), 22. If the proposed destination resort is in a SMIA combining zone, DCC 18.56 shall be addressed; 23. If the proposed destination resort is in an LM combining zone, DCC 18.84 shall be addressed; 24. A survey of historic and cultural resources inventoried on an acknowledged Goal 5 inventory; 25. Other information as may reasonably be required by the Planning Director to address the effect of the proposed development as related to the requirements of DCC Title 18. (Ord. 92-004 § 13, 1992) 18.113.060. Standards for destination resorts. The following standards shall govern consideration of destination resorts: A. The destination resort shall, in the first phase, provide for and include as part of the CMP the following minimum requirements: 1. At least 150 separate rentable units for visitor-oriented lodging. The resort may elect to phase in the 150 overnight lodging units as follows: a. At least 50 its of overnight lodging shall be constructed euzlrarx~~~l t ..1, of , l" i mii T o cE rczr c°13t +.•n neia . ° prior to the closure of sale of individual lots or units, and; b. At least 50 of the remaining 100 required overni t lodging units shall be constructed or guaranteed through surety bonding or equivalent financial assurance within 5 years of the closure of sale of individual lots or units, and; c. The remaining required overnight lodging units shall be constructed or guaranteed through surety bonding or equivalent financial assurance within 10 years of the closure of sale of individual lots or units. d. If the developer of a resort guarantees all or a portion of the overnight lodging units required under subsection 18.113.060(A)(1) through surety bonding or other equivalent financial assurance, the developer shall begins construction of the subject overnight lodging units within 4 years of the date of execution of the surety bond or other equivalent financial assurance. 2. Visitor-oriented eating establishments for at least 100 persons and meeting rooms which provide eating for at least 100 persons. 3. The aggregate cost of developing the overnight lodging facilities, developed recreational facilities, and the eating establishments and meeting rooms fequire a D('(7 1 8. X 13,060(A)(111 It ~ (4shall be at least $2,000,000 7,000,000 (in 4441993 dollars). 4. At least $2,000,000 2,333,333 of the $7,000,000 (in 19841993 dollars) total minimum investment required by DCC 18.113.060(A)(3) shall be spent on developed recreational facilities. PAGE 6 OF 13 - DRAFT EXHIBIT "D" TO ORDINANCE NO. 2006-036 (12/04/2006) EXHIBIT "D" 5. The facilities and accommodations resort or by a real estate property required by DCC 18.113.060 must be manager, as defined in ORS 696.010. physically provided or financially assured pursuant to DCC 18.113.110 E. Phasing. A destination resort authorized prior to closure of sales, rental or lease of pursuant to DCC 18.113.060 may be any residential dwellings or lots, or as developed in phases. If a proposed resort is allowed by DCC 18.113.060(A)(1)(a) to be developed in phases, each phase shall through (c). be as described in the CMP. Each individual phase shall meet the following requirements: B. All destination resorts shall have a minimum 1. Each phase, together with previously of 160 contiguous acres of land. Acreage completed phases, if any, shall be split by public roads or rivers or streams shall capable of operating in a manner count toward the acreage limit, provided that consistent with the intent and purpose of the CMP demonstrates that the isolated DCC 18.113 and Goal 8. acreage will be operated or managed in a 2. The first phase and each subsequent manner that will be integral to the remainder phase of the destination resort shall of the resort. cumulatively meet the minimum C. All destination resorts shall have direct requirements of DCC 18.113.060 and access onto a state or County arterial or DCC 18.113.070. collector roadway, as designated by the 3. Each phase may include two or more Comprehensive Plan. distinct noncontiguous areas within the destination resort. D. A destination resort shall, cumulatively and for each phase, meet the following minimum F. Destination resorts shall not exceed a density requirements: of one and one-half dwelling units per acre 1. The resort shall have a minimum of 50 including residential dwelling units and percent of the total acreage of the excluding visitor-oriented overnight lodging. development dedicated to permanent G. Dimensional Standards: open space, excluding yards, streets and 1. The minimum lot area, width, lot parking areas. Portions of individual coverage, frontage and yard requirements residential lots and landscape area and building heights otherwise applying requirements for developed recreational to structures in underlying zones and the facilities, visitor-oriented provisions of DCC 18.116 relating to accommodations or multi-family or solar access shall not apply within a corrunercial uses established by DCC destination resort. These standards shall 18.124.070 shall not be considered open be determined by the Planning Director space; or Hearings Body at the time of the 2. Individually-owned residential units that CMP. In determining these standards, do not meet the definition of overnight the Planning Director or Hearings Body lodging in DCC 18.04.030 shall not shall find that the minimum specified in exceed two 21 /2 2 such units for each the CMP are adequate to satisfy the unit of visitor-oriented overnight lodging. intent of the comprehensive plan relating Individually-owned units shall be to solar access, fire protection, vehicle considered visitor-oriented lodging if access, visual management within they are available for overnight rental use landscape management corridors and to by the general public for at least 438 protect resources identified by LCDC weeks per calendar year through one or Goal 5 which are identified in the more central reservation and check-in Comprehensive Plan. At a minimum, a service(s): operated by the destination 100-foot setback shall be maintained from all streams and rivers. Rimrock PAGE 7 OF 13 - DRAFT EXHIBIT "D" TO ORDINANCE NO. 2006-036 (12/04/2006) EXHI131T "D" setbacks shall be as provided in DCC Title 18. No lot for a single-family residence shall exceed an overall project average of 22,000 square feet in size. 2. Exterior setbacks. a. Except as otherwise specified herein, all development (including structures, site-obscuring fences of over three feet in height and changes to the natural topography of the land) shall be setback from exterior property lines as follows: i. Three hundred fifty feet for commercial development including all associated parking areas; ii. Two hundred fifty feet for multi-family development and visitor-oriented accommodations (except for single-family residences) including all associated parking areas; iii. One hundred fifty feet for above-grade development other than that listed in DCC 18.113.060(G)(2)(a)(i) and (ii); iv. One hundred feet for roads; v. Fifty feet for golf courses; and vi. Fifty feet for jogging trails and bike paths where they abut private developed lots and no setback for where they abut public roads and public lands. b. Notwithstanding DCC 18.113.060(G)(2)(a)(iii), above-grade development other than that listed in DCC 18.113.060(G)(2)(a)(1) and (ii) shall be set back 250 feet in circumstances where state highways coincide with exterior property lines. c. The setbacks of DCC 18.113.060 shall not apply to entry roadways and signs. H. Floodplain requirements. The floodplain zone (FP) requirements of DCC 18.96 shall apply to all developed portions of a destination resort in an FP Zone in addition to any applicable criteria of DCC 18.113. Except for floodplain areas which have been granted an exception to LCDC goals 3 and 4, floodplain zones shall not be considered part of a destination resort when determining compliance with the following standards; 1. One hundred sixty acre minimum site; 2. Density of development; 3. Open space requirements. A conservation easement as described in DCC Title 18 shall be conveyed to the County for all areas within a floodplain which are part of a destination resort. 1. The Landscape Management Combining Zone (LM) requirements of DCC 18.84 shall apply to destination resorts where applicable. J. Excavation, grading and fill and removal within the bed and banks of a stream or river or in a wetland shall be a separate conditional use subject to all pertinent requirements of DCC Title 18. K. Time-share units not included in the overnight lodging calculations shall be subject to approval under the conditional use criteria set forth in DCC 18.128. Time-share units identified as part of the destination resort's overnight lodging units shall not be subject to the time-share conditional use criteria of DCC 18.128. (Ord. 92-004 § 13, 1992) 18.113.070. Approval criteria. In order to approve a destination resort, the Planning Director or Hearings Body shall find from substantial evidence in the record that: A. The subject proposal is a destination resort as defined in DCC 18.040.030. B. All standards established by DCC 18.113.060 are or will be met. C. The economic analysis demonstrates that: 1. The necessary financial resources are available for the applicant to undertake the development consistent with the minimum investment requirements established by DCC 18.113. 2. Appropriate assurance has been submitted by lending institutions or other PAGE 8 OF 13 - DRAFT EXHIBIT "D" TO ORDNANCE NO. 2006-036 (12/04/2006) EXHIBIT "D" financial entities that the developer has 2. Providing transportation facilities or can reasonably obtain adequate adequate to support the proposed financial support for the proposal once development consistent with Oregon approved. Administrative Rules chapter 660, 3. The destination resort will provide a Division 12; or substantial financial contribution which 3. Altering land use densities, design positively benefits the local economy requirements or using other methods to throughout the life of the entire project, reduce demand for automobile travel and considering changes in employment, to meet travel needs through other demands for new or increased levels of modes. public service, housing for employees and the effects of loss of resource land. A destination resort significantly affects 4. The natural amenities of the site a transportation facility if it would result considered together with the identified in levels of travel or access that are developed recreation facilities to be inconsistent with the functional provided with the resort, will constitute a classification of a facility or would primary attraction to visitors, based on reduce the level of service of the facility the economic feasibility analysis. below the minimum acceptable level identified in the relevant transportation D. Any negative impact on fish and wildlife system plan. resources will be completely mitigated so that a. Where the option of providing there is no net loss or net degradation of the transportation facilities is chosen, the resource. applicant shall be required to E. Important natural features, including but not improve impacted roads to the full limited to significant wetlands, riparian standards of the affected authority as habitat, and landscape management corridors a condition of approval. Timing of will be maintained. Riparian vegetation such improvements shall be based within 100 feet of streams, rivers and upon the timing of the impacts significant wetlands will be maintained. created by the development as Alterations to important natural features, determined by the traffic study or the including placement of structures, is allowed recommendations of the affected so long as the overall values of the feature are road authority. maintained. b. Access within the project shall be adequate to serve the project in a safe F. The development will not force a significant and efficient manner for each phase change in accepted farm or forest practices or of the project. significantly increase the cost of accepted farm or forest practices on surrounding lands H. The development will not create the potential devoted to farm or forest use. for natural hazards identified in the County Comprehensive Plan. No structure will be G. Destination resort developments that located on slopes exceeding 25 percent. A significantly affect a transportation facility wildfire management plan will be shall assure that the development is implemented to ensure that wildfire hazards consistent with the identified function, are minimized to the greatest extent practical capacity and level of service of the facility. and allow for safe evacuation. With the This shall be accomplished by either: exception of the slope restriction of DCC 1. Limiting the development to be 18.113.070, which shall apply to destination consistent with the planned function, resorts in forest zones, wildfire management capacity and level of service of the of destination resorts in forest zones shall be transportation facility; subject to the requirements of DCC PAGE 9 OF 13 - DRAFT EXHIBIT "D" TO ORDINANCE NO. 2006-036 (12/04/2006) EXH113IT "D" 18.40.070, where applicable, as to each individual structure and dwelling. 1. Adequate public safety protection will be available through existing fire districts or will be provided onsite according to the specification of the state fire marshal. If the resort is located outside of an existing fire district the developer will provide for staffed structural fire protection services. Adequate public facilities to provide for necessary safety services such as police and fire will be provided on the site to serve the proposed development. J. Streams and drainage. Unless otherwise agreed to in writing by the adjoining property owner(s), existing natural drainages on the site will not be changed in any manner which interferes with drainage patterns on adjoining property. All surface water drainage changes created by the development will be contained on site in a manner which meets all standards of the Oregon State Department of Environmental Quality (DEQ). The erosion control plan for the subject development will meet all standards of ORS 468. K. Adequate water will be available for all proposed uses at the destination resort, based upon the water study and a proposed water conservation plan. Water use will not reduce the availability of water in the water impact areas identified in the water study considering existing uses and potential development previously approved in the affected area. Water sources shall not include any perched water table. Water shall only be taken from the regional aquifer. Where a perched water table is pierced to access the regional aquifer, the well must be sealed off from the perched water table. L. The wastewater disposal plan includes beneficial use to the maximum extent practicable. Approval of the CMP shall be conditioned on applicant's making application to DEQ for a Water Pollution Control Facility (WPCF) permit consistent with such an approved wastewater disposal plan. Approval shall also be conditioned upon applicant's compliance with applicable Oregon Administrative Rules regarding beneficial use of waste water, as determined by DEQ. Applicant shall receive approval of a WPCF permit consistent with this provision prior to applying for approval for its Final Master Plan under DCC 18.113. M. The resort will mitigate any demands it creates on publicly-owned recreational facilities on public lands in the surrounding area. N. Site improvements will be located and designed to avoid or minimize adverse effects of the resort on the surrounding land uses. Measures to accomplish this may include establishment and maintenance of buffers between the resort and adjacent land uses, including natural vegetation and appropriate fences, berms, landscaped areas and similar types of buffers; and setback of structures and other developments from adjacent land uses. 0. The resort will be served by an on-site sewage system approved by DEQ and a water system approved by the Oregon State Health Division except where connection to an existing public sewer or water system is allowed by the County Comprehensive Plan, such service will be provided to the resort. P. The destination resort will not alter the character of the surrounding area in a manner that substantially limits, impairs or prevents permitted or conditional uses of surrounding properties. Q. Commercial, cultural, entertainment or accessory uses provided as part of the destination resort will be contained within the development and will not be oriented to public highways adjacent to the property. Commercial, cultural and entertainment uses allowed within the destination resort will be incidental to the resort itself. As such, these ancillary uses will be permitted only at a scale suited to serve visitors to the resort. The commercial uses permitted in the destination resort will be limited in type, location, number, dimensions and scale (both individually and cumulatively) to that PAGE 10 OF 13 - DRAFT EXHIBIT "D" TO ORDINANCE NO. 2006-036 (12/04/2006) EXHIBIT "D" necessary to serve the needs of resort visitors. A commercial use is necessary to serve the needs of visitors if: 1. Its primary purpose is to provide goods or services that are typically provided to overnight or other short-term visitors to the resort, or the use is necessary for operation, maintenance or promotion of the destination resort; and 2. The use is oriented to the resort and is located away from or screened from highways or other major through roadways. R. A plan exists to ensure a transfer of common areas, facilities such as sewer, water, streets and responsibility for police and fire protection to owners' associations or similar groups if contemplated. If such transfer is not contemplated, the owner or responsible party shall be clearly designated. Adequate open space, facility maintenance and police and fire protection shall be ensured in perpetuity in a manner acceptable to the County. S. Temporary structures will not be allowed unless approved as part of the CMP. Temporary structures will not be allowed for more than 18 months and will be subject to all use and site plan standards of DCC Title 18. T. The open space management plan is sufficient to protect in perpetuity identified open space values. U. A mechanism to ensure that the destination resort provides an adequate supply of overnight lodging units to maintain compliance with the 150-unit minimum and the 21/2 2 to 1 ratio set forth in DCC 18.113.060(D)(2). The mechanism shell include the following: r' ~~''•,rnrvl a~~ie rloetu efft tliat individually c~eL~-ic~}(se=r"rn~l-~m~iti cour,*:., a ,i desis dated- i1S ..n, W--,Hig total -r, irr- T,Tts ale availa~, r-ental- 4:)!- at least 4028 ~vee"ef caleiida year =tlirH ugh a eentral 1 esei: vatioii and dick in service-~per~tte`' he re fjr of l areal -Viii=tE-prE>rtill?crd rncd 1H 1R-S-- 606.0010. Stieh Et meehaiiisiii shall flielude ttii v eLe7iCTVPli'Lb: I An annual report to be submitted to the Planning _Division each February 1 doc.umeitiru_-the following as of December 31 of the prey iousyear: a. The status of the recui.red 150 nv_ erniaht lodging units; and _ b__The number of individually= eMlaed residential units and the nir_n_iber= ol'overiii~T it-lode ingy units, and _ k,. I I Ibetween the individually-owned' residential` units and the overnialit lodging units and d_ A report on..the individually owned residentud units . counted as overni!llt units .i, required in 18.113.060(ti)(2)( ' boctunentatign that individually-owned residential units designated its overnight lodging units are availahle for rental f~~ at least 38 weeks per calendar year through _a central reservation ri u! check-in service otjcrated-b~jlc resort or h a real estate property many =er, 'as defined in _ ORS 696,010-.. ~ Such documentation shill include III of the following: +a. Designation on the plat of leis h yes=i==-DUC -18:113 showing the location of all of the required overnight lodging units, with a particular notation showing which individually owned residential units qualify as overnight lodging units. The plat shall demonstrate compliance with the 2 PQ 2 to 1 ratio set forth in DCC 18.113.060(D)(2); 215Deed restrictions lip iting Hof sueh identified pfze ises requiring the to- -individuallv-owned residential units designated as overnight lodging purpeses underDCG 18,113 =6- units to be available for rental at least 4538 weeks each year through a cental reservation and check-in service operated by the PAGE 11 OF 13 - DRAFT EXHIBIT "D" TO ORDINANCE NO. 2006-036 (12/04/2006) EXHIBIT "D" y resort or by a real estate propert manager, as defined in ORS 696.010; 3c. Inelusien in t rr'an of An irrevocable provision in the resort CC&R's, enforceable by the County lifniting use of stieh identified units te requiring the individually-owned residential units designated as overnight lodging units to be available for rental feat least 4538 weeks each year through a central reservation and check-in service operated by the resort or by a real estate property manager, as defined in ORS 696.010; -id,. Inclusion of language in any rental contract between the owner of the an individually-owned residential unit designated as an overnight lodging unit and any central reservation and check-in service or real estate property manager requiring that such units-unit be made available ref DGG 18.113 for rental at least 45 38 weeks each year; and Vic. A requirement that each such individually-owned residential unit designated as an overni h~ t lodging unit be registered and a report be filed on each such unit yearly by the owner or central booking agent on janaf-, l as required by 18. l 13.070 U.)(1~ witk-4he 3rr as to the following information: ai' Who the owner or owners have been over the last year; bi"', How many nights out of the year the unit was available for rent through the central reservation and check-in service; and eiii. How many nights out of the year the unit was rented out as an overnight lodging facility under DCC 18.113. (Ord. 92-032 § 1, 1992; Ord. 92-004 § 13, 1992) 18.113.075. Imposition of conditions. The standards made applicable by DCC 18.113 may be met by the imposition of conditions calculated to insure that the standard will be met. (Ord. 92-004 § 13, 1992) 18.113.080. Procedure for modification of a conceptual master plan. Any substantial change, as determined by the Planning Director, proposed to an approved CMP shall be reviewed in the same manner as the original CMP. An insubstantial change may be approved by the Planning Director. Substantial change to an approved CMP, as used in DCC 18.113.080, means an alteration in the type, scale, location, phasing or other characteristic of the proposed development such that findings of fact on which the original approval was based would be materially affected. (Ord. 92-004 § 13, 1992) 18.113.090. Requirements for final master plan. It shall be the responsibility of the applicant to provide a Final Master Plan (FMP) which includes text and graphics explaining and illustrating: A. The use, location, size and design of all important natural features, open space, buffer areas and common areas; B. The use and general location of all buildings, other than residential dwellings and the proposed density of residential development by location; C. Preliminary location of all sewer, water, storm drainage and other utility facilities and materials, and specifications and installation methods for water and waste water systems; D. Location and widths of all roads, streets, parking, pedestrian ways, equestrian trails and bike paths; E. Methods to be employed to buffer and mitigate potential adverse impacts on adjacent resource uses and property; F. Building elevations of visitor-oriented accommodations, recreational facilities and commercial services sufficient to demonstrate the architectural character of the proposed development; G. A description of all commercial uses including approximate size and floor area; PAGE 12 OF 13 - DRAFT EXHIBIT "D" TO ORDINANCE NO. 2006-036 (12/04/2006) EXHIBIT "D" H. The location of or distance to any emergency medical facilities and public safety facilities; 1. When a phase includes a residential subdivision, a general layout of the subdivision shall include the number of lots, minimum and maximum lot sizes, and approximate location of roadways shall be included: J. A description of measures taken, with copies of deed restrictions, CC&R's and rental contracts, to implement the requirements of DCC 18.113.070(0). identified i DGG 18.11 assth9ng t diyi 7iuuu ....ll owned !edb..,b uIUta a.vrru cc~.rccl a tebeo e"'...:6.. htlvag for- at least weeks .xulg pier-calendar- year hfough--a-eentru1 °se v atien and eheek ' ei ate the Planning Director shall advise the applicant to submit an application for modification or amendment of the CMP. (Ord. 92-004 § 13, 1992) 18.113.110. Provision of streets, utilities, developed recreational facilities and visitor-oriented accommodations. A. The Planning Director or Hearings Body shall find that all streets, utilities, developed recreational facilities and visitor-oriented accommodations required by the FMP are physically provided or are guaranteed through surety bonding or substantial financial assurances approved by the County prior to closure of sale of individual lots or units. K. A description of measures taken, with copies of deed restrictions and a final management plan, to implement the open space management plan required by DCC 18.113. L. The status of all required off-site roadway improvements. M. Methods to be employed for managing automobile traffic demand. N. A copy of a WPCF permit issued by DEQ consistent with the requirements of DCC 18.113.070(L). (Ord. 92-004 § 13, 1992) 18.113.100. Procedure for approval of final master plan. A. The FMP shall be submitted in a form approved by the County Planning Director consistent with DCC Title 22 for a development permit. The Planning Director shall review the FMP and if the Planning Director finds that all standards of the CMP have been met, the FMP shall be approved in writing without notice. If approval the FMP involves the exercise of discretion, the FMP shall be treated as a land use action and notice shall be provided in accordance with DCC Title 22; B. If the Planning Director finds evidence in the FMP of a substantial change from the CMP, B. Financial assurance or bonding to assure completion of streets and utilities, developed recreational facilities and visitor-oriented accommodations in the FMP shall be required pursuant to the security requirements for site plan review and subdivision review established by the Deschutes County Code. (Ord. 92-004 § 13, 1992; Ord. 92-003 § 1, 1992) 18.113.120, Conservation easement to protect resource site. A. If a tract to_he used as a destination resort ccintains a tC,0LI1C0 site designated for protection in an acknowledged cot prehensi % c ~n_pursuant to open Is xlc_ s, scenic and °historic ' areas and natural resource goals;, that tract of land shall preserve the resource site b~ conservation easement sufficient to protect (lie resource values of the resource site in accordance with ORS 271.715 to 271.795 B. `A conser\. l '10x1 easement under DCC 18.113.120 shall be recorded with the property records of the tract on which. the destination resort is sited. (Zoning maps adopted by Ord. 92-031 § 1, 1992) PAGE 13 OF 13 - DRAFT EXHIBIT "D" TO ORDINANCE NO. 2006-036 (12/04/2006) Community Development Department Planning Division Building Safety Division Environmental Health Division i 117 NW Lafayette Avenue Bend Oregon 97701-1925 (541)388-6575 FAX(541)385-1764 MEETING MINUTES http://www.co.deschutes.or.us/cdd/ DESCHUTES COUNTY PLANNING COMMISSION BARNES AND SAWYER ROOMS OF THE DESCHUTES SERVICES BUILDING 1300 NW WALL STREET, BEND, OR 97701 NOVEMBER 4, 2004 - 5:30 P.M. I. CALL TO ORDER Chair Sailors called the meeting to order. Members present were Tammy Sailors, Keith Cyrus, Brenda Pace, Dennis Erisman, Mike Shirtcliff and Allan Jones. Staff present were Matthew Martin, Planner, and Linda Larson, Planning Secretary. II. APPROVAL OF MINUTES 10/14/04 and 5/13/04) 10/14/04 - Commissioner Shirtcliff made a motion to approve the minutes as written. Commissioner Erisman seconded the motion. The vote was unanimous in favor of approving the minutes. 5/13/04 - There was not a quorum present to approve these minutes. They will be brought up for approval at the next meeting. III. PUBLIC COMMENTS AND CONCERNS There were none. IV. PUBLIC HEARING - FILE NO'S. TA-04-4 AND TA-04-5 - TEXT AMENDMENTS TO DESCHUTES COUNTY CODE, TITLES 18 AND 19, REGARDING DESTINATION RESORTS - MATT MARTIN, ASSOCIATE PLANNER Chair Sailors read the legal disclaimer. Chair Sailors asked if anyone on the Commission wished to declare a bias on this issue. Chair Sailors had done work on behalf of the applicant on water issues. No one challenged Commissioner Sailors. There were no challenges from the public DCPC Meeting Minutes November 4, 2004 Page 1 Quality Services Performed with Pride Matt Martin, Associate Planner gave a summary of his staff report. These amendments are being brought before the Planning Commission to bring the Destination Resort criteria into compliance with the language that was recently adopted at the State level. In 1993 changes were made but never incorporated into Title 18. Commissioner Shirtcliff asked if the bonding fees would be eliminated. Matt answered for the first 50 units. Commissioner Shirtcliff asked if they were proposing something less restrictive than the state law. Matt said in that one category only. Commissioner Cyrus asked about the first 50 units and the ratio. Matt said it would be established on the original proposal. Commissioner Cyrus asked if you could exceed the two and one half units times fifty. Matt said the selling of the lots has to be coordinated with when the units are being established. We would go back to the master plan to calculate the number of units that could be sold. Commissioner Cyrus says you would need to plan for 150 units and that would be driven by the property available. Commissioner Pace asked if the units could be single family homes as opposed to more conventional rental structures. 75 units of overnight lodging, not including individual units, the remaining must be provided as individual overnight lodging, can you explain this? Matt answered that it was subject to different characteristics of the property, we are focusing on 4B which does not include that number. Pace asked what it was in Eastern Oregon. Matt answered it is limited to 38 weeks out of the year that it must be a rental. Commissioner Pace asked about deed restriction and Matt answered that it must be marketed under a real estate or property manager. Commissioner Pace asked if each year it could be a different unit that would be rented and Matt answered yes. Commissioner Pace said they could all be single family homes, 3 bedroom, 2 bath. Matt answered that he would check on this. Commissioner Cyrus asked for clarification on standards, do you want to take out bonding for the first 50 units? Matt said that is correct. The language specifies that at least 50 units must be constructed prior to closure of sale. Commissioner Pace asked on page 7C "direct access on arterial, does Pronghorn meet that requirement? Matt says it does but that is beyond the scope of what we are discussing tonight. Commission Jones asked what was behind the 7 million dollars and why was it not adopted in 1993. Matt said it was an oversight. Chair Sailors asked for anymore questions of the commissioners. There were none. Nancy Craven: She will address any questions of the commission. Nancy gave background on Senate Bill 9-11. Nancy represented Eagle Crest, Sunriver and Pronghorn. The statute was adopted after Goal 8 has been regulating Destination Resorts. Since the 1980's many have developed. The point that Matt made about the first 50 units and the bonding is correct. The issue that legislation tried to address was the high vacancy rate and high demand of single family units to rent. Transient use of a resort is through the rental of second homers. Unless they are in a mandatory rental pool DCPC Meeting Minutes November 4, 2004 Page 2 they are not counted. The second home users were really transient users. There is hesitancy of some purchasers to invest in a second home when there is such a high restriction on their private usage. The 45 weeks is a tough standard, when you buy a home and are limited to 7 weeks. The initial capitol investment is huge for 150 units. In 1993 they amended it to go 75-75 but it was never implemented by Deschutes County. We went to the legislature to get more flexibility in regard to that. We agreed to a 50-50- 50. The last issue was the central reservation system. Some of the resorts have property mangers or are managed by other people. We negotiated with LCDC, 1000 Friends then the governor's office. The consensus by all was compelling. The State wanted to insure that there was a transient use of the property. That is how we came to an Eastern and Western Oregon that is dealt with by the market. There is no major change to the definition of overnight or operation of overnight. The bill did not include the opportunity to include these second homes as rentals unless they stayed in a rental pool. The weeks changed from 45 to 38 of availability. The ration was changed from 2 to 1 to 2.5 to 1. The phasing was changed slightly so that the first 50 have to be constructed before you can sell individual lots and the next 50 can be bonded within 5 years of the initial lot sales. The remaining constructed or bonded within 10 years of the initial lot sales. And the bonding term of any of those segments is four years. The mapping, how can the county modify the mapping? The reason for filing this was to meet state law. Deed restriction, CCR'S, annual reporting, there is a requirement if home is used for overnight units. Maintain in the pool. Must show the ratio. I worked on the Pronghorn access and it is a direct access onto Powell Butte Highway. Commissioner Pace said a majority of houses can be single family or primary housing and over the years many resort projects that are far out of the way turn into more like a subdivision. What is the proportion of primary residences at Sunriver, Eagle Crest and Black Butte? Do you know what that is? Nancy Craven said no one can avoid the overnight accommodation ratio requirement. Neither Black Butte nor Sunriver were goal 8 issues. Tom Walker of W&H Pacific: Eagle Crest has to apply to the 2 to 1 ratio. One third of all dwellings at Eagle Crest have to be overnight rentals. Commissioner Pace asked of the remainder, how many are now primary housing. Tom says 10-20% are full time residents. A good indication is the number of children that go to school. Commissioner Pace says many are seniors. Tom says secondary homes are a big part of the picture. Commissioner Pace says the census shows 50%. Tom says it is greater in the summer and on weekends. John Fettig, realtor and property owner in Sunriver. 1998 home owner's survey shows that since 1968 the full time ownership has not changed, it is about 20%. The full time ownership after 1992 was 16%. Commissioner Pace says the census shows this also. Nancy would like the commissioners to implement the new law. Chair Sailors asked for discussion. Commissioner Shirtcliff moved to close the public hearing. Commissioner Cyrus seconded. All voted yes. DCPC Meeting Minutes November 4, 2004 Page 3 Commissioner Shirtcliff asked for clarification of the motion if it was moved forward. Chair Sailors said we would move the recommendation onto the Board of County with the changes that Matt has made. Commissioner Shirtcliff made a motion to move the proposal forward with the changes proposed by Matt Martin. Commissioner Cyrus seconded. All voted yes. V. REVIEW OF ROBERTS RULES OF ORDER DISTRIBUTED AT PREVIOUS MEETING Chair Sailors wanted to be sure each Commissioner had a copy of the rules. VI. OTHER ITEMS OF CONCERN/DISCUSSION Chair Sailors asked if there was an explanation of measure 37. The chair asked that an explanation of the measure be mailed to each commissioner. Matt answered that the legal department is looking at this issue and has 30 days to respond. Catherine Morrow will be at the next meeting to explain the issue. Commissioner Shirtcliff asked about the meeting schedule for 2005. Chair Sailors says it is usually the second and fourth Thursdays. November and December can be a little different because of the holidays. Chair Sailors said we are on for November 18 th. VII. ADJOURN There being no further business, the meeting was adjourned to meet again on November 18, 2004 in the Community Development Department General Conference Room, located at 117 NW Lafayette Avenue, Bend, OR 97701. Respectively Submitted, Linda Larson, Planning Secretary /LRL DCPC Meeting Minutes November 4, 2004 Page 4 BALL JANIK LLP A T T O R N E Y S 101 SOUTHWEST MAIN STREET, SUITE 1100 PORTUND, OREGON 97204-3219 www.balljanik.com NANCY CRAVEN TELEPHONE 503-228-2525 ncraven®bjllp.com FAcsvmR 503-295-1058 May 23, 2006 W` AMY 2 - 2006 0 cm Ms. Catherine Morrow IE ! C Planning Director Deschutes County Community Development Department 117 NW Lafayette Drive Bend, Oregon 97701 Re: Implementation of SB 911; Update to the Text of Deschutes County Destination Resort Ordinances Dear Catherine: On behalf of Sunriver Resort, Eagle Crest and Pronghorn, this letter requests that the County finalize the update to the County's destination resort ordinances as recommended by the Deschutes County Planning Commission. This request will ensure that the County's ordinances are up-to-date and consistent with the ORS provisions and the new DLCD rules which were recently amended to reflect the updates to the statutes. The Deschutes County Planning Commission has previously recommended that the County update its destination resort ordinances to incorporate changes made in 1993 and 2003 by the state legislature regulating destination resort development and operational management. The 2003 revisions to the destination resort statutes were initiated at the request of Sunriver Resort, Eagle Crest and Pronghorn. The legislative process involved extensive discussions and negotiations with DLCD staff, 1000 Friends and the Governor's office and those negotiations resulted in statutory revisions that were a compromise to all of those involved in the process. This letter summarizes the changes that were adopted by the legislature in 2003 and ultimately signed into law by the Governor. We request that the Board adopt the new statutory provisions so that the County's regulatory ordinances are consistent with state law. These 2003 amendments result in some, but limited, increased flexibility regarding the ratio of permanent residential housing to overnight lodging units, and the management options for the overnight lodging units. The 2003 law does not otherwise result in significant changes to the nature and operation of destination resorts. As noted, the new provisions of state law (ORS 197.435 et seq) have already been adopted by LCDC and made a part of the Goal 8 rule. A copy of the revised Goal 8 rule is attached for your convenience. A proposed red-line version of the county's Title 18 ordinance is attached. (It should also be noted that Title 19, that portion of the code that regulates resorts in the Bend Urban Area is also out-of-date). ::ODMA\PCDOCSIPORTLANDl52227813 PORTLAND, OREGON WASHINGTON, D.C. BEND, OREGON BALL JANI;K LLP Ms. Catherine Morrow Deschutes County Community Development Dept. May 23, 2006 Page 2 1. History of DR Zoning and SB 911 Amendments In 1984 the Land Conservation and Development Commission ("LCDC"), assisted by the Department of Land Conservation and Develo=pment, created the original destination resort siting standards as amendments to Goal 8, Recreational Needs. In 1987, with some modifications, the legislature incorporated LCDC's resort siting standards into state law by enacting House Bill 3097. This bill has been codified as the "destination resort statute," specifically, Oregon Revised Statutes ("ORS") 197.435, et seq. Early versions of destination resort bills were more restrictive than LCDC's recommendations with respect to overnight lodging standards. The various parties debated the appropriate restrictions on overnight lodging units„ particularly single family dwellings used as vacation rentals. LCDC and the legislative committees ultimately chose to require individually- owned dwellings to be available for rental 45 weeks per year to qualify as overnight lodging units. However, the choice was not scientific, and has been subject to discussion and reexamination over the years. The bill also required a total of 150 overnight lodging units, and the permanent residential unit/overnight lodging unit ratio was 2:1. Again, these parameters were chosen somewhat randomly in an attempt to maintain adequate tourist accommodations within resorts. However, they did not necessarily reflect market conditions, the economics of second home ownership, renter preferences, or other key factors in resort development and operations. As destination resorts evolved, the market indicated that tourists prefer to rent vacation homes rather than resort-owned hotel-like units. Therefore, in 1993 Representative Clarno introduced HB 2932. This bill proposed to amend the destination resort statute to reduce the overnight lodging requirement from 150 to 75 units and to change the permanent residential unit/overnight lodging unit ratio from 2:1 to 5:1. Also debated was the 45-week rental standard for individually owned units, although ultimately this standard was retained. House amendments to the original bill provided a phasing option to reduce the number of overnight lodging units required in the first phase of construction to 75, but retained the total 150-unit requirement. The House also retained the 2:1 permanent residential unit/overnight lodging unit ratio. In addition, the bill increased the minimum investment requirements for visitor-oriented and recreational facilities from $4 million in 1984 dollars to $7 million in 1993 dollars. While these 1993 changes became a part of the state law, Deschutes County has not adopted these 1993 changes as a part of its Title 18 ordinances. The 1993 changes were adopted in Title 19 in 1996. In 2003, new amendments to the destination resort statute were initiated by our clients to incorporate flexibility into the ratio and the management of overnight accommodations. The 2003 amendments accomplished the following with respect to resorts in Eastern Oregon: 1) Raised the ratio of permanent residential dwellings to overnight lodging units from 2:1 to 2.5:1; ::ODMA\PCDOCS\PORTLAND\522278\3 BALL ,JANIK LLP Ms. Catherine Morrow Deschutes County Community Development Dept. May 23, 2006 Page 3 2) Reduced the number of weeks a single-family dwelling must be placed in a rental pool from 45 to 38; 3) Clarified that homeowners may rent overnight lodging units through either the resort's central service or an outside property management company; 4) Altered the phasing option to reduce a resort's initial overnight lodging investment from 75 units to 50 units and enabled the resort to phase in the remaining 100 units over a 10-year time period; and 5) Allowed counties to amend destination resort overlay maps outside of periodic review. Under the new law, a county may amend its overlay map once every 30 months. II. Deschutes County Action to Implement DR Amendments The 2003 amendments serve to slightly increase the flexibility related to the provision of overnight accommodations and how they are managed/operated within a resort. It was the intention of the resort industry that requested the legislation to allow second homes as overnight lodging units because historical data shows that the majority of dwellings within resorts are held as second homes. To cover the costs of second home ownership, the majority of owners rent their dwellings to transient/vacation users for a large portion of each year. However, although they fulfill the goals of the resort statutes by making vacation units available for rent, most of these dwellings do not technically qualify as "overnight lodging units." Thus resorts are forced to provide additional overnight lodging units in the form of hotel-type units in order to meet the 150-unit minimum and maintain compliance with the ratio. Further, the historical data also showed that the mandatory "hotel-like" units constructed to meet the overnight lodging requirements have a very high annual vacancy rate. Due to significant amendments made during committee hearings, the approved legislation did not remedy these issues. Rather, only modest changes were made to the destination resort statute, which provide some flexibility on the ratio and management of overnight lodging units. Presently, most destination resorts in Deschutes County are governed by Chapter 18.113 of the Deschutes County Code (DCC). (Title 19 governs lands in the Bend urban area.) DCC 18.113.060 sets forth the standards for resorts and specifically for required overnight lodging units. As presently drafted, the code requires a total of 150 separate overnight lodging units and a ratio of two individually owned residential units to one unit of visitor oriented overnight lodging. (DCC 18.113.060(D)(2).) Title 18 does not allow the overnight units to be phased in over time. Further, under DCC 18.113.060(D)(2), individually owned units presently are considered to be visitor oriented overnight lodging units if they are available for overnight rental use by the general public for at least 45 weeks per year through a central reservation and check-in service. Furthermore, because the County has not implemented the 1993 resort bill in Title 18 (Title 19 includes the 1993 amendments), the minimum investment requirements in DCC 18.113.060(A)(3) and (4) require ::ODMA\PCDOCS\PORTLAND\522278\3 BALL JANIN, LLP Ms. Catherine Morrow Deschutes County Community Development Dept. May 23, 2005 Page 4 developers to invest only $2,000,000 (in 1984 dollars) in visitor-oriented accommodations (including meeting and eating facilities), and $2,000,000 in recreational facilities. Because Title 18 does not include any of the amendments from 1993 or 2003, County Planning Staff, Hearings Officers, and applicants have struggled with resort applications under the existing code. The differences in state versus local law have created confusion and a lack of consistency in resort applications. The situation has required the County to determine on a case by case basis whether certain elements of the code are less restrictive than state law (which may require direct application of state law for certain resort criteria, application of the local code for others, etc.). To resolve these issues, the county should update 'Title 18 to reflect the 1993 and 2003 changes in state law. The updates to Title 18 will be consistent with the Deschutes County Comprehensive Plan. The comprehensive plan recognizes the increased importance of destination resorts to the economy of the County. (See DCC 23.84.101.) At the same time, the plan recognizes the importance of balancing protection mechanisms for resource lands and rural land uses with the economic benefits destination resorts provide. (Id.) The state legislature continues to guide resort development by creating standards that promote the economic viability of resort lodging while respecting the natural resources and rural communities surrounding resort properties. Thus, updating the County zoning code to implement the 2003 amendments is consistent with the County Comprehensive Plan. Conclusion In order to be consistent with state law and to continue to foster the economic success of destination resorts in Central Oregon, Deschutes County should amend its existing destination resort zone in DCC 18.113 to implement the statutory amendments. Doing so is consistent with state law and DLCD rule, and ensures that resort applications are reviewed in a consistent and uniform manner. m ely, ancy Craven NC:ld Enclosures: Redlined version of Title 18 changes Revised DLCD Goal 8 cc (all w/enclosures): Board of Commissioners (3 copies) Tom Hix, Pronghorn Tom Luersen, Sunriver Resort Jerry Andres, Eagle Crest ::ODM A\PCDOCS\PORTLAND152227813 'tl Chapter 197 - Comprehensive Land Use Planning Coordination SITING OF DESTINATION RESORTS Pagel of 4 197.435 Definitions for ORS 197.435 to 197.467. As used in ORS 197.435 to 197.467: (1) "Developed recreational facilities" means improvements constructed for the purpose of recreation and may include but are not limited to golf courses, tennis courts, swimming pools, marinas, ski runs and bicycle paths. (2) "High value crop area" means an area in which there is a concentration of commercial fain-is capable of producing crops or products with a minimum gross value of $1,000 per acre per year. These crops and products include field crops, small fruits, berries, tree fruits, nuts or vegetables, dairying, livestock feedlots or Christmas trees as these terms are used in the 1983 County and State Agricultural Estimates prepared by the Oregon State University Extension Service. The "high value crop area" designation is used for the purpose of minimizing conflicting uses in resort siting and does not revise the requirements of an agricultural land goal or administrative rules interpreting the goal. (3) "Map of eligible lands" means a map of the county adopted pursuant to ORS 197.455. (4) "Open space" means any land that is retained in a substantially natural condition or is improved for recreational uses such as golf courses, hiking or nature trails or equestrian or bicycle paths or is specifically required to be protected by a conservation easement. Open spaces may include ponds, lands protected as important natural features, lands preserved for farm or forest use and lands used as buffers. Open space does not include residential lots or yards, streets or parking areas. (5) "Overnight lodgings" means: (a) With respect to lands not identified in paragraph (b) of this subsection, permanent, separately rentable accommodations that are not available for residential use, including hotel or motel rooms, cabins and time-share units. Individually owned units may be considered overnight lodgings if they are available for overnight rental use by the general public for at least 45 weeks per calendar year through a central reservation and check-in service. Tent sites, recreational vehicle parks, manufactured dwellings, dormitory rooms and similar accommodations do not qualify as overnight lodgings for the purpose of this definition. (b) With respect to lands in eastern Oregon, as defined in ORS 321.805, permanent, separately rentable accommodations that are not available for residential use, including hotel or motel rooms, cabins and time-share units. Individually owned units may be considered overnight lodgings if they are available for overnight rental use by the general public for at least 38 weeks per calendar year through a central reservation system operated by the destination resort or by a real estate property manager, as defined in ORS 696.010. Tent sites, recreational vehicle parks, manufactured dwellings, dormitory rooms and similar accommodations do not qualify as overnight lodgings for the purpose of this definition. (6) "Self-contained development" means a development for which community sewer and water facilities are provided on-site and are limited to meet the needs of the development or are provided by existing public sewer or water service as long as all costs related to service extension and any capacity increases are borne by the development. A "self-contained development" must have developed recreational facilities provided on-site. (7) "Tract" means a lot or parcel or more than one contiguous lot or parcel in a single ownership. A tract may include property that is not included in the proposed site for a destination resort if the property to be excluded is on the boundary of the tract and constitutes less than 30 percent of the total tract. (8) "Visitor-oriented accommodations" means overnight lodging, restaurants and meeting facilities that are designed to and provide for the needs of visitors rather than year-round residents. [1987 c.886 §3; 1989 c.648 §52; 1993 c.590 §1; 2003 c.812 §1; 2005 c.22 §140] 197.440 Legislative findings. The Legislative Assembly finds that: (1) It is the policy of this state to promote Oregon as a vacation destination and to encourage tourism as a valuable segment of our state's economy; (2) There is a growing need to provide year-round destination resort accommodations to attract visitors and encourage them to stay longer. The establishment of destination resorts will provide jobs for Oregonians and contribute to the state's economic development; (3) It is a difficult and costly process to site and establish destination resorts in rural areas of this state; and (4) The siting of destination resort facilities is an issue of statewide concern. [1987 c.886 §2] 197.445 Destination resort criteria; phase-in requirements; annual accounting. A destination resort is a self- contained development that provides for visitor-oriented accommodations and developed recreational facilities in a setting with high natural amenities. To qualify as a destination resort under ORS 30.947, 197.435 to 197.467, 215.213, http://www.leg.state.or.us/ors/I 97.html C?-" " (i7 (~41 /27/2006 Chapter 197 - Comprehensive Land Use Planning Coordination Page 2 of 4 215.283 and 215.284, a proposed development must meet the following standards: (1) The resort must be located on a site of 160 acres or more except within two miles of the ocean shoreline where the site shall be 40 acres or more. (2) At least 50 percent of the site must be dedicated to permanent open space, excluding streets and parking areas. (3) At least $7 million must be spent on improvements for on-site developed recreational facilities and visitor- oriented accommodations exclusive of costs for land, sewer and water facilities and roads. Not less than one-third of this amount must be spent on developed recreational facilities. (4) Visitor-oriented accommodations including meeting; rooms, restaurants with seating for 100 persons and 150 separate rentable units for overnight lodging shall be provided. However, the rentable overnight lodging units may be phased in as follows: (a) On lands not described in paragraph (b) of this subsection: (A) A total of 150 units of overnight lodging must be provided. (B) At least 75 units of overnight lodging, not including; any individually owned homes, lots or units, must be constructed or guaranteed through surety bonding or equivalent financial assurance prior to the closure of sale of individual lots or units. (C) The remaining overnight lodging units must be provided as individually owned lots or units subject to deed restrictions that limit their use to use as overnight lodging units. The deed restrictions may be rescinded when the resort has constructed 150 units of permanent overnight lodging as required by this subsection. (D) The number of units approved for residential sale may not be more than two units for each unit of permanent overnight lodging provided under subparagraph (B) of this paragraph. (E) The development approval must provide for the construction of other required overnight lodging units within five years of the initial lot sales. (b) On lands in eastern Oregon, as defined in ORS 321.805: (A) A total of 150 units of overnight lodging must be provided. (B) At least 50 units of overnight lodging must be constructed prior to the closure of sale of individual lots or units. (C) At least 50 of the remaining 100 required overnight: lodging units must be constructed or guaranteed through surety bonding or equivalent financial assurance within five years of the initial lot sales. (D) The remaining required overnight lodging units must be constructed or guaranteed through surety bonding or equivalent financial assurances within 10 years of the initial lot sales. (E) The number of units approved for residential sale may not be more than 2-1/2 units for each unit of permanent overnight lodging provided under subparagraph (B) of this paragraph. (F) If the developer of a resort guarantees the overnight: lodging units required under subparagraphs (C) and (D) of this paragraph through surety bonding or other equivalent financial assurance, the overnight lodging units must be constructed within four years of the date of execution of the surety bond or other equivalent financial assurance. (5) Commercial uses allowed are limited to types and levels of use necessary to meet the needs of visitors to the development. Industrial uses of any kind are not permitted. (6) In lieu of the standards in subsections (1), (3) and (4) of this section, the standards set forth in subsection (7) of this section apply to a destination resort: (a) On land that is not defined as agricultural or forest land under any statewide planning goal; (b) On land where there has been an exception to any statewide planning goal on agricultural lands, forestlands, public facilities and services and urbanization; or (c) On such secondary lands as the Land Conservation and Development Commission deems appropriate. (7) The following standards apply to the provisions of subsection (6) of this section: (a) The resort must be located on a site of 20 acres or more. (b) At least $2 million must be spent on improvements for on-site developed recreational facilities and visitor- oriented accommodations exclusive of costs for land, sewer and water facilities and roads. Not less than one-third of this amount must be spent on developed recreational facilities. (c) At least 25 units, but not more than 75 units, of overnight lodging must be provided. (d) Restaurant and meeting room with at least one seat for each unit of overnight lodging must be provided. (e) Residential uses must be limited to those necessary for the staff and management of the resort. (i) The governing body of the county or its designee has reviewed the resort proposed under this subsection and has determined that the primary purpose of the resort is to provide lodging and other services oriented to a recreational resource which can only reasonably be enjoyed in a rural area. Such recreational resources include, but are not limited to, a hot spring, a ski slope or a fishing stream. state.or.us/ors/1 97.html 11/27/2006 r Chapter 197 - Comprehensive Land Use Planning Coordination Page 3 of 4 (g) The resort must be constructed and located so that it is not designed to attract highway traffic. Resorts may not use any manner of outdoor advertising signing except: (A) Tourist oriented directional signs as provided in ORS 377.715 to 377.830; and (B) On-site identification and directional signs. (8) Spending required under subsections (3) and (7) of this section is stated in 1993 dollars. The spending required shall be adjusted to the year in which calculations are made in accordance with the United States Consumer Price Index. (9) When making a land use decision authorizing construction of a destination resort in eastern Oregon, as defined in ORS 321.805, the governing body of the county or its designee shall require the resort developer to provide an annual accounting to document compliance with the overnight lodging standards of this section. The annual accounting requirement commences one year after the initial lot or unit sales. The annual accounting must contain: (a) Documentation showing that the resort contains a minimum of 150 permanent units of overnight lodging or, during the phase-in period, documentation showing the resort is not yet required to have constructed 150 units of overnight lodging. (b) Documentation showing that the resort meets the lodging ratio described in subsection (4) of this section. (c) For a resort counting individually owned units as qualified overnight lodging units, the number of weeks that each overnight lodging unit is available for rental to the general public as described in ORS 197.435. [1987 c.886 §4; 1993 c.590 §2; 2003 c.812 §2; 2005 c.22 §141] 197.450 Siting without taking goal exception. In accordance with the provisions of ORS 30.947, 197.435 to 197.467, 215.213, 215.283 and 215.284, a comprehensive plan may provide for the siting of a destination resort on rural lands without taking an exception to statewide planning goals relating to agricultural lands, forestlands, public facilities and services or urbanization. [1987 c.886 §5] 197.455 Siting of destination resorts; sites from which destination resort excluded. (1) A destination resort must be sited on lands mapped as eligible for destination resort siting by the affected county. The county may not allow destination resorts approved pursuant to ORS 197.435 to 197.467 to be sited in any of the following areas: (a) Within 24 air miles of an urban growth boundary with an existing population of 100,000 or more unless residential uses are limited to those necessary for the staff and management of the resort. (b)(A) On a site with 50 or more contiguous acres of unique or prime farmland identified and mapped by the United States Natural Resources Conservation Service, or its predecessor agency. (B) On a site within three miles of a high value crop area unless the resort complies with the requirements of ORS 197.445 (6) in which case the resort may not be closer to a high value crop area than one-half mile for each 25 units of overnight lodging or fraction thereof. (c) On predominantly Cubic Foot Site Class 1 or 2 forestlands as determined by the State Forestry Department, which are not subject to an approved goal exception. (d) In the Columbia River Gorge National Scenic Area as defined by the Columbia River Gorge National Scenic Act, P.L. 99-663. (e) In an especially sensitive big game habitat area as determined by the State Department of Fish and Wildlife in July 1984 or as designated in an acknowledged comprehensive plan. (2) In carrying out subsection (1) of this section, a county shall adopt, as part of its comprehensive plan, a map consisting of eligible lands within the county. The map must be based on reasonably available information and may be amended pursuant to ORS 197.610 to 197.625, but not more frequently than once every 30 months. The county shall develop a process for collecting and processing concurrently all map amendments made within a 30-month planning period. A map adopted pursuant to this section shall be the sole basis for determining whether tracts of land are eligible for destination resort siting pursuant to ORS 197.435 to 197.467. [1987 c.886 §6; 1993 c.590 §3; 1997 c.249 §57; 2003 c.812 §3; 2005 c.22 §142; 2005 c.205 §1] 197.460 Compatibility with adjacent land uses; county measures. A county shall insure that a destination resort is compatible with the site and adjacent land uses through the following measures: (1) Important natural features, including habitat of threatened or endangered species, streams, rivers and significant wetlands shall be retained. Riparian vegetation within 100 feet of streams, rivers and significant wetlands shall be retained. Alteration of important natural features, including placement of structures which maintain the overall values of the feature may be allowed. http://www.leg.state.or.us/ors/I 97.html Chapter 197 - Comprehensive Land Use Planning Coordination Page 4 of 4 (2) Improvements and activities shall be located and designed to avoid or minimize adverse effects of the resort on uses on surrounding lands, particularly effects on intensive farming operations in the area. At a minimum, measures to accomplish this shall include: (a) Establishment and maintenance of buffers between the resort and adjacent land uses, including natural vegetation and where appropriate, fences, berms, landscaped areas and other similar types of buffers. (b) Setbacks of structures and other improvements from adjacent land uses. [1987 c.886 §7] 197.462 Use of land excluded from destination resort. A portion of a tract that is excluded from the site of a destination resort pursuant to ORS 197.435 (7) shall not be used or operated in conjunction with the resort. Subject to this limitation, the use of the excluded property shall be governed by otherwise applicable law. [1993 c.590 §7] 197.465 Comprehensive plan implementing measures. An acknowledged comprehensive plan that allows for siting of a destination resort shall include implementing measures which: (1) Map areas where a destination resort described in ORS 197.445 (1) to (5) is permitted pursuant to ORS 197.455; (2) Limit uses and activities to those defined by ORS 197.435 and allowed by ORS 197.445; and (3) Assure that developed recreational facilities and key facilities intended to serve the entire development and visitor-oriented accommodations are physically provided or are guaranteed through surety bonding or substantially equivalent financial assurances prior to closure of sale of individual lots or units. In phased developments, developed recreational facilities and other key facilities intended to serve a particular phase shall be constructed prior to sales in that phase or guaranteed through surety bonding. [ 1987 c.8 86 § 8] 197.467 Conservation easement to protect resource site. (1) If a tract to be used as a destination resort contains a resource site designated for protection in an acknowledged comprehensive plan pursuant to open spaces, scenic and historic areas and natural resource goals in an acknowledged comprehensive plan, that tract of land shall preserve that site by conservation easement sufficient to protect the resource values of the resource site as set forth in ORS 271.715 to 271.795. (2) A conservation easement under this section shall be recorded with the property records of the tract on which the destination resort is sited. [1993 c.590 §5] 11/27/2006 Oregon's Statewide Planning Goals & Guidelines GOAL 8: RECREATIONAL NEEDS OAR 660-015-0000(8) To satisfy the recreational needs of the citizens of the state and visitors and, where appropriate, to provide for the siting of necessary recreational facilities including destination resorts. RECREATION PLANNING The requirements for meeting such needs, now and in the future, shall be planned for by governmental agencies having responsibility for recreation areas, facilities and opportunities: (1) in coordination with private enterprise; (2) in appropriate proportions; and (3) in such quantity, quality and locations as is consistent with the availability of the resources to meet such requirements. State and federal agency recreation plans shall be coordinated with local and regional recreational needs and plans. DESTINATION RESORT SITING Comprehensive plans may provide for the siting of destination resorts on rural lands subject to the provisions of state law, including ORS 197.435 through 197.467, this and other Statewide Planning Goals, and without an exception to Goals 3, 4, 11, or 14. Eligible Areas (1) Destination resorts allowed under the provisions of this goal must be sited on lands mapped as eligible by the affected county. A map adopted by a county may not allow destination resorts approved under the provisions of this goal to be sited in any of the following areas: (a) Within 24 air miles of an urban growth boundary with an existing population of 100,000 or more unless residential uses are limited to those necessary for the staff and management of the resort; (b) On a site with 50 or more contiguous acres of unique or prime farm land identified and mapped by the United States Natural Resources Conservation Service or its predecessor agency; or within three miles of a High Value Crop Area except that "small destination resorts" may not be closer to a high value crop area than one-half mile for each 25 units of overnight lodging or fraction thereof; (c) On predominantly Cubic Foot Site Class 1 or 2 forest lands, as determined by the State Forestry Department, that are not subject to an approved goal exception; (d) In the Columbia River Gorge National Scenic Area as defined by the Columbia River Gorge National Scenic Act, P.L. 99-663; (e) In an especially sensitive big game habitat as generally mapped by the Oregon Department of Fish and Wildlife in July 1984 and as further refined through development of comprehensive plans implementing this requirement. Eke ~ (1) "Small destination resorts" may be allowed consistent with the siting requirements of section (1), above, in the following areas: (a) On land that is not defined as agricultural or forest land under Goal 3 or 4; or (b) On land where there has been an exception to Statewide Planning Goals 3, 4, 11, or 14. Siting Standards (1) Counties shall ensure that destination resorts are compatible with the site and adjacent land uses through the following measures: (a) Important natural features, including habitat of threatened or endangered species, streams, rivers, and significant wetlands shall be maintained. Riparian vegetation within 100 feet of streams, rivers and significant wetlands shall be maintained. Alterations to important natural features, including placement of structures that maintain the overall values of the feature, may be allowed. (b) Sites designated for protection in an acknowledged comprehensive plan designated pursuant to Goal 5 that are located on the tract used for the destination resort shall be preserved through conservation easements as set forth in ORS 271.715 to 271.795. Conservation easements adopted to implement this requirement shall be sufficient to protect the resource values of the site and shall be recorded with the property records of the tract on which the destination resort is sited. (c) Improvements and activities shall be located and designed to avoid or minimize adverse effects of the resort on uses on surrounding lands, particularly effects on intensive farming operations in the area. At a minimum, measures to accomplish this shall include: (i) Establishment and maintenance of buffers between the resort and adjacent land uses, including natural vegetation and where appropriate, fences, berms, landscaped areas, and other similar types of buffers. (ii) Setbacks of structures and other improvements from adjacent land uses. (iii) Measures that prohibit the use or operation in conjunction with the resort of a portion of a tract that is excluded from the site of a destination resort pursuant to ORS 197.435(7). Subject to this limitation, the use of the excluded property shall be governed by otherwise applicable law. Implementing Measures (1) Comprehensive plans allowing for destination resorts shall include implementing measures that: (a) Adopt a map consisting of eligible lands for large destination resorts within the county. The map shall be based on reasonably available information, and shall not be subject to revision or refinement after adoption except in conformance with ORS 197.455, and 197.610 to 197.625, but not more frequently than once every 30 months. The county shall develop a process for collecting and processing concurrently all map amendments made within a 30-month planning period. A map adopted pursuant to this section shall be the sole basis 2 for determining whether tracts of land are eligible for siting of large destination resorts under the provisions of this goal and ORS 197.435 to 197.467. (b) Limit uses and activities to those permitted by this goal. (c) Assure developed recreational facilities and key facilities intended to serve the entire development and visitor oriented accommodations are physically provided or are guaranteed through surety bonding or substantially equivalent financial assurances prior to closure of sale of individual lots or units. In phased developments, developed recreational facilities and other key facilities intended to serve a particular phase shall be constructed prior to sales in that phase or guaranteed through surety bonding. DEFINITIONS Destination Resort A self- contained development providing visitor-oriented accommodations and developed recreational facilities in a setting with high natural amenities, and that qualifies under the definition of either a "large destination resort" or a "small destination resort" in this goal. Spending required under these definitions is stated in 1993 dollars. The spending required shall be adjusted to the year in which calculations are made in accordance with the United States Consumer Price Index. Large Destination Resort To qualify as a "large destination resort" under this Goal, a proposed development must meet the following standards: (1) The resort must be located on a site of 160 acres or more except within two miles of the ocean shoreline where the site shall be 40 acres or more. (2) At least 50 percent of the site must be dedicated as permanent open space excluding yards, streets and parking areas. (3) At least $7 million must be spent on improvements for onsite developed recreational facilities and visitor-oriented accommodations exclusive of costs for land, sewer, and water facilities and roads. Not less than one-third of this amount shall be spent on developed recreational facilities. (4) Commercial uses allowed are limited to types and levels necessary to meet the needs of visitors to the development. Industrial uses of any kind are not permitted. (5) Visitor-oriented accommodations including meeting rooms, restaurants with seating for 100 persons, and 150 separate rentable units for overnight lodging must be provided. Accommodations available for residential use shall not exceed two such units for each unit of overnight lodging. However, the rentable overnight lodging units may be phased in as follows: (a) On land that is not in Eastern Oregon, as defined in ORS 321.805: (A) A total of 150 units of overnight lodging must be provided. (B) At least 75 units of overnight lodging, not including any individually owned homes, lots or units must be constructed or guaranteed through surety bonding or equivalent financial assurance prior to the closure of sale of individual lots or units. (C) The remaining overnight lodging units must be provided as individually owned lots or units subject to deed restrictions that limit their use to overnight lodging units. The deed restrictions may be rescinded when the resort has constructed 150 units of permanent overnight lodging as required by this section. (D) The number of units approved for residential sale may not be more than two units for each unit of permanent overnight lodging provided under paragraph B of this subsection. (E) The development approval shall provide for the construction of other required overnight lodging units within five years of the initial lot sales. (b) On lands in Eastern Oregon, as defined in ORS 321.805: (A) A total of 150 units of overnight lodging must be provided. (B) At least 50 units of overnight lodging must be constructed prior to the closure of sale of individual lots or units. (C) At least 50 of the remaining 100 required overnight lodging units must be constructed or guaranteed through surety bonding or equivalent financial assurance within five years of the initial lot sales. (D) The remaining required overnight lodging units must be constructed or guaranteed through surety bonding or equivalent financial assurances within 10 years of the initial lot sales. (E) The number of units approved for residential sale may not be more than 2-1/2 units for each unit of permanent overnight lodging provided under paragraph (B) of this subsection. (F) If the developer of a resort guarantees the overnight lodging units required under paragraphs (C) and (D) of this subsection through surety bonding or other equivalent financial assurance, the overnight lodging units must be constructed within four years of the date of execution of the surety bond or other equivalent financial assurance. (6) When making a land use decision authorizing construction of a "large destination resort" in Eastern Oregon, as defined in ORS 321.805, the governing body of the county or its designee shall require the resort developer to provide an annual accounting to document compliance with the overnight lodging standards of this definition. The annual accounting requirement commences one year after the initial lot or unit sales. The annual accounting must contain: (a) Documentation showing that the resort contains a minimum of 150 permanent units of overnight lodging or, during the phase-in period, documentation showing the resort is not yet required to have constructed 150 units of overnight lodging. (b) Documentation showing that the resort meets the lodging ratio described in section (5)(b) of this definition. (c) For a resort counting individually owned units as qualified overnight lodging units, the number of weeks that each overnight lodging unit is available for rental to the general public as described in 4 section (2) of the definition for "overnight lodgings" in this goal Small Destination Resort To qualify as a "small destination resort" under Goal 8, a proposed development must meet standards (2) and (4) under the definition of "large destination resort" and the following standards: (1) The resort must be located on a site of 20 acres or more. (2) At least $2 million must be spent on improvements for onsite developed recreational facilities and visitor-oriented accommodations exclusive of costs for land, sewer, and water facilities and roads. Not less than one-third of this amount must be spent on developed recreation facilities. (3) At least 25 but not more than 75 units of overnight lodging shall be provided. (4) Restaurant and meeting rooms with at least one seat for each unit of overnight lodging must be provided. (5) Residential uses must be limited to those necessary for the staff and management of the resort. (6) The county governing body or its designee must review the proposed resort and determine that the primary purpose of the resort is to provide lodging and other services oriented to a recreational resource that can only reasonably be enjoyed in a rural area. Such recreational resources include, but are not limited to, a hot spring, a ski slope or a fishing stream. (7) The resort shall be constructed and located so that it is not designed to attract highway traffic. Resorts shall not use any manner of outdoor advertising signing except: (a) Tourist oriented directional signs as provided in ORS 377.715 to 377.830; and (b) Onsite identification and directional signs. Developed Recreation Facilities are improvements constructed for the purpose of recreation and may include but are not limited to golf courses, tennis courts, swimming pools, marinas, ski runs and bicycle paths. High-Value Crop Area an area in which there is a concentration of commercial farms capable of producing crops or products with a minimum gross value of $1,000 per acre per year. These crops and products include field crops, small fruits, berries, tree fruits, nuts, or vegetables, dairying, livestock feedlots, or Christmas trees as these terms are used in the 1983 County and State Agricultural Estimates prepared by the Oregon State University Extension Service. The High-Value Crop Area Designation is used for the purpose of minimizing conflicting uses in resort siting and is not meant to revise the requirements of Goal 3 or administrative rules interpreting the goal. Map of Eligible Lands a map of the county adopted pursuant to ORS 197.455. Open Space means any land that is retained in a substantially natural condition or is improved for recreational uses such as golf courses, hiking or nature trails or 5 equestrian or bicycle paths or is specifically required to be protected by a conservation easement. Open spaces may include ponds, lands protected as important natural features, land preserved for farm or forest use and lands used as buffers Open space does not include residential lots or yards, streets or parking areas. Overnight Lodgings are permanent, separately rentable accommodations that are not available for residential use. Overnight lodgings include hotel or motel rooms, cabins, and time-share units. Tent sites, recreational vehicle parks, manufactured dwellings, dormitory rooms, and similar accommodations do not qualify as overnight lodgings for the purpose of this definition. Individually owned units may be considered overnight lodgings if: (1) With respect to lands not in Eastern Oregon, as defined in ORS 321.805, they are available for overnight rental use by the general public for at least 45 weeks per calendar year through a central reservation and check-in service, or (2) With respect to lands in Eastern Oregon, as defined in ORS 321.805, they are available for overnight rental use by the general public for at least 38 weeks per calendar year through a central reservation system operated by the destination resort or by a real estate property manager, as defined in ORS 696.010. Recreation Areas, Facilities and Opportunities provide for human development and enrichment, and include but are not limited to: open space and scenic landscapes; recreational lands; history, archaeology and natural science resources; scenic roads and travelers; sports and cultural events; camping, picnicking and recreational lodging; tourist facilities and accommodations; trails; waterway use facilities; hunting; angling; winter sports; mineral resources; active and passive games and activities. Recreation Needs refers to existing and future demand by citizens and visitors for recreations areas, facilities and opportunities. Self-contained Development means a development for which community sewer and water facilities are provided onsite and are limited to meet the needs of the development or are provided by existing public sewer or water service as long as all costs related to service extension and any capacity increases are borne by the development. A "self- contained development" must have developed recreational facilities provided on-site. Tract means a lot or parcel or more than one contiguous lot or parcel in a single ownership. A tract may include property that is not included in the proposed site for a destination resort if the property to be excluded is on the boundary of the tract and constitutes less than 30 percent of the total tract. Visitor-Oriented Accommodations are overnight lodging, restaurants, meeting facilities which are designed to and provide for the needs of visitors rather than year-round residents. GUIDELINES A. PLANNING 1. An inventory of recreation needs in the planning area should be made based upon adequate research and analysis of public wants and desires. 2. An inventory of recreation opportunities should be made based upon adequate research and analysis of the resources in the planning area that are available to meet recreation needs. 3. Recreation land use to meet recreational needs and development standards, roles and responsibilities should be developed by all agencies in coordination with each other and with the private interests. Long range plans and action programs to meet recreational needs should be developed by each agency responsible for developing comprehensive plans. 4. The planning for lands and resources capable of accommodating multiple uses should include provision for appropriate recreation opportunities. 5. The State Comprehensive Outdoor Recreation Plan could be used as a guide when planning, acquiring and developing recreation resources, areas and facilities. 6. When developing recreation plans, energy consequences should be considered, and to the greatest extent possible non-motorized types of recreational activities should be preferred over motorized activities. 7. Planning and provision for recreation facilities and opportunities should give priority to areas, facilities and uses that (a) Meet recreational needs requirements for high density population centers, (b) Meet recreational needs of persons of limited mobility and finances, (c) Meet recreational needs requirements while providing the maximum conservation of energy both in the transportation of persons to the facility or area and in the recreational use itself, (d) Minimize environmental deterioration, (e) Are available to the public at nominal cost, and (f) Meet needs of visitors to the state. 8. Unique areas or resources capable of meeting one or more specific recreational needs requirements should be inventoried and protected or acquired. 9. All state and federal agencies developing recreation plans should allow for review of recreation plans by affected local agencies. 10. Comprehensive plans should be designed to give a high priority to enhancing recreation opportunities on the public waters and shorelands of the state especially on existing and potential state and federal wild and scenic waterways, and Oregon Recreation Trails. 11. Plans that provide for satisfying the recreation needs of persons in the planning area should consider as a major determinant, the carrying capacity of the air, land and 7 water resources of the planning area. The land conservation and development actions provided for by such plans should not exceed the carrying capacity of such resources. B. IMPLEMENTATION Plans should take into account various techniques in addition to fee acquisition such as easements, cluster developments, preferential assessments, development rights acquisition, subdivision park land dedication that benefits the subdivision, and similar techniques to meet recreation requirements through tax policies, land leases, and similar programs. C. RESORT SITING Measures should be adopted to minimize the adverse environmental effects of resort development on the site, particularly in areas subject to natural hazards. Plans and ordinances should prohibit or discourage alterations and structures in the 100 year floodplain and on slopes exceeding 25 percent. Uses and alterations that are appropriate for these areas include: 1. Minor drainage improvements that do not significantly impact important natural features of the site; . 2. Roads, bridges and utilities where there are no feasible alternative locations on the site; and 3. Outdoor recreation facilities including golf courses, bike paths, trails, boardwalks, picnic tables, temporary open sided shelters, boating facilities, ski lifts and runs. Alterations and structures permitted in these areas should be adequately protected from geologic hazards or of minimal value and designed to minimize adverse environmental effects. BALL JA.NIK LLP A T T O R N E Y S ONE MAIN PLACE 101 SOUTHWEST MAIN STREET, SUITE 1100 PORTLAND, OREGON 97204-3219 www.bAanik.com TELEPHONE 503-228-2525 FACSIMILE 503-295-1058 MEMORANDUM TO: Deschutes County Board of Commissioners FROM: Nancy Craven DATE: November 21, 2006 RE: Destination Resort Statute, Goal 8, and TA-04-4 On behalf of Eagle Crest, Pronghorn, and Sunriver, we have submitted an application for a legislative text amendment to revise DCC Title 18 to implement Senate Bill 911 ("SB 911"). Per our materials, we respectfully request that the Board of Commissioners update the Code to implement the 2003 law in its entirety. We understand that County Staff has suggested that the Board may wish to retain the old 2:1 ratio single family dwellings to overnight lodging units, rather than updating the Code to reflect the new 2.5:1 ratio adopted by the Legislature. The adoption of the new ratio was the central element of SB 911. The resort community advocated strongly for a change in the ratio to allow slightly more single family dwellings to be platted in relation to overnight lodging units. The intent was to amend the law to allow it to more accurately parallel the types of units that buyers wish to build and purchase within resorts. It would be contrary to the requests of the resort community and the intent of the Legislature to disregard the 2.5:1 ratio and maintain the 2:1 ratio. Therefore, we respectfully request that the Board revise Title 18 to change the ratio from 2:1 to 2.5:1 for all dwellings and overnight lodging units. We understand that Planning Staff's concerns stem from some questions regarding the impact of a confusing cross-reference in the state statute. We have addressed that technical issue in detail in the attached memorandum to Terri Payne. In brief, the statute allows a resort to phase in the 150 required overnight lodging units in sets of 50. The confusing cross- reference links the ratio only to the first 50 units of a phased resort. Thus, it creates a situation in which there is now a 2.5:1 ratio only for resorts that choose to phase their overnight lodging units, and only for the first 50 units of overnight lodging. Because a technical reading of the statute would result in no ratio for resorts that choose not to phase, and no ratio after the first 50 overnight lodging units in phased resorts, Staff has suggested that the Board avoid this unintended situation by simply maintaining the old 2:1 ratio for all units. We respectfully disagree with Staff, and believe that the more appropriate action is to update the ratio from 2:1 to SACDD\planning\Long Range\Destination Resorts\TA-04-4 and TA-04-5\2006\memotoboardI 1-27.DOC 2.5:1 to reflect the Legislature's intent, but to apply the ratio to all units, not just to phased resorts and not just to the first 50 units of a resort. As explained in the memo to Ms. Payne, we have discussed this matter with Mr. Bob Rindy of DLCD, and DLCD concurs that it would be lawful and consistent with the intent of SB 911 if the Board adopted a new 2.5:1 ratio to govern all units within a resort. We look forward to discussing this matter further during the upcoming public hearings. Eagle Crest, Pronghorn, and Sunriver thank you for your careful consideration of this important matter. cc: Laurie Craghead, Deschutes County Catherine Morrow, Deschutes County Bob Rindy, DLCD 2SACDD\planningTong Range\Destination Resorts\TA-04-4 and TA-04-5\2006\memotob. BALL JANIK LLP A T T O R N E Y S ONE MAIN PLACE 101 SOUTHWEST MAIN STREET, SUITE 1100 PORTLAND, OREGON 97204-3219 www.balljanik.com TELEPHONE 503-228-2525 FACSIMILE 503-295-1058 MEMORANDUM TO: Terri Hansen Payne, Associate Planner Deschutes County Community Development Department FROM: Nancy Craven DATE: November 21, 2006 RE: Destination Resort Statute, Goal 8, and TA-04-4 Introduction On behalf of Eagle Crest, Pronghorn, and Sunriver, we have submitted an application for a legislative text amendment to revise DCC Title 18 to implement Senate Bill 911 ("SB 911"). Per our materials, we respectfully request that the Board of Commissioners update the Code to implement the 2003 law in its entirety. We understand that you are generally supportive of this request, but that you have some questions regarding the scope of the new 2.5:1 ratio of single family dwellings to overnight lodging units. The purpose of this memorandum is to confirm that the Board should revise Title 18 to change the ratio from 2:1 to 2.5:1 for all dwellings and overnight lodging units. 2. The 2.5:1 Ratio As we have discussed, SB 911 changed the ratio of single family dwellings to overnight lodging units from 2:1 to 2.5:1. After reviewing the statute, you questioned whether the new 2.5:1 ratio adopted by the Legislature in 2003 applies only to the first 50 overnight lodging units of a destination resort. You suggested that County Staff and DLCD think that the 2.5:1 ratio applies to the first 50 overnight lodging units of a resort, and a 2:1 ratio applies to the remainder of the units. As detailed below, that is not the case. Rather, the intent of SB 911 was to apply the 2.5:1 ratio throughout a resort, to regulate all overnight lodging units and dwellings platted and sold throughout the life of a resort. However, due to the carry-through a Gros s- reference from 1993, the statute appears to apply the 2.5:1 ratio only to the first 50 overnight lodging units of a resort, and to provide no ratio to correspond to any additional overnight lodging units. We have discussed this matter with Mr. Bob Rindy of DLCD, and he has confirmed that DLCD concurs that this is the correct technical reading of the statute. However, SACDD\planning\Long Range\Destination Resorts\TA-04-4 and TA-04-5\2006\memotomeI 1-27.DOC Ex~,h, e F DLCD also agrees that the Legislature's intent was to apply the 2.5:1 ratio to all units within a resort. Because a County may be more restrictive than state law with respect to destination resorts, DLCD agrees that Deschutes County may implement the intent of SB 911 by applying a 2.5:1 ratio to all units in a resort. This approach would be more restrictive than state law because state law currently only applies the 2.5:1 ratio to the first 50 units, and no ratio to all other units. Thus, by applying the ratio to all units in a resort, the County would be broadening the scope of the ratio beyond the minimum required by the law. If the County did not apply the 2.5:1 ratio at all, and instead kept the 2:1 ratio for all units, it would be more restrictive than is necessary to carry forth the Legislature's intent, and it would be a direct repudiation of the Legislature's central goal in adopting SB 911 (i.e. increasing the number of single family dwellings that could be platted within a resort). A technical reading of the statute reveals that there are two ratios: a 2:1 ratio for Western Oregon, and a 2.5:1 ratio for Eastern Oregon. However, as currently written, the statute applies those ratios to the respective counties only if a resort chooses to phase its overnight lodging units, and then only to the first phase of overnight lodging. If a resort does not choose to phase, the statute does not apply the ratio. If a resort chooses to phase, the 2:1 ratio applies to the first 75 units in western Oregon, and the 2.5:1 ratio applies to the first 50 units in eastern Oregon, but neither ratio applies to the remaining units on either side of the mountains. Thus, the number of residential dwellings that can be platted and sold is limited only during the first phase of a resort, and only if the resort phases. If a resort chooses to construct or financially assure 150 lodging units up front, the statute technically does not place a limitation on the number of residential lots that may be platted and sold. As discussed below, the text that gives rise to this interpretation was adopted in 1993. Deschutes County never amended Title 18 to implement the 1993 or the 2003 statutory amendments, and therefore, the 2:1 ratio in Deschutes County continued to apply to all units in a resort. The cross-references that give rise to this situation are quoted and discussed in more detail below. However, while our resort clients have and would certainly continue to advocate for a removal of the ratio entirely, we also understand that the Legislature discussed the option of deleting the ratio and specifically chose not to do so during the 1993 and the 2003 statutory amendments. Our clients were involved during the 2003 amendments, and are aware that the intent was to apply the 2.5:1 ratio to all units throughout the life of Eastern Oregon resorts. DCLD has confirmed that this was its intent as well. Therefore, we understand that rather than applying the ratio to only the first 50 overnight lodging units within a resort, and only when a resort chooses to phase its overnight lodging units, DLCD and Deschutes County would prefer to maintain a ratio for all units. Consequently, it is appropriate to use the ratio that is now set forth in state law for Eastern Oregon: 2.5:1. The law does not set forth a 2:1 ratio for any units in Eastern Oregon. Thus, it is inappropriate to continue to apply the 2:1 ratio. Again, in the absence of a specific ratio for any overnight lodging units beyond the first 50, the appropriate response is to extend the 2.5:1 ratio that is set forth by the current version of the law. DLCD, Eagle Crest, Pronghorn, and Sunriver support this approach, and believe it is consistent with our intent during the SB 911 process. 2sACDD\p1anning\1.ong Range\Destination Resorts\TA-04-4 and TA-04-5\2006\memotorr. History of the Reference to "Subparagraph (B)" in ORS 197.445 As you note in your memoranda, ORS 197.445 reads as follows, in relevant part: 197.445 Destination resort criteria; phase-in requirements; annual accounting. A destination resort is a self-contained development that provides for visitor-oriented accommodations and developed recreational facilities in a setting with high natural amenities. To qualify as a destination resort under ORS 30.947, 197.435 to 197.467, 215.213, 215.283 and 215.284, a proposed development must meet the following standards: (4) Visitor-oriented accommodations including meeting rooms, restaurants with seating for 100 persons and 150 separate rentable units for overnight lodging shall be provided. However, the rentable overnight lodging units may be phased in as follows: (a) On lands not described in paragraph (b) of this subsection [i.e. western Orezonl: (A) A total of 150 units of overnight lodging must be provided. At least 75 units of overnight lodging, not including any individually owned homes, lots or units, must be constructed or guaranteed through surety bonding or equivalent financial assurance prior to the closure of sale of individual lots or units. (C) The remaining overnight lodging units must be provided as individually owned lots or units subject to deed restrictions that limit their use to use as overnight lodging units. The deed restrictions may be rescinded when the resort has constructed 150 units of permanent overnight lodging as required by this subsection. (D) The number of units approved for residential sale may not be more than two units for each unit of permanent overnight lodkin provided under subpara-raph (B) of this paragraph. (b) On lands in eastern Oregon, as defined in ORS 321.805: (A) A total of 150 units of overnight lodging must be provided. At least 50 units of overnight lodging must be constructed prior to the closure of sale of individual lots or units. 3SACDD\planning\Long Range\Destination Resorts\TA-04-4 and TA-04-5\2006\memotonr. (C) At least 50 of the remaining 100 required overnight lodging units must be constructed or guaranteed through surety bonding or equivalent financial assurance within five years of the initial lot sales. (D) The remaining required overnight lodging units must be constructed or guaranteed through surety bonding or equivalent financial assurances within 10 years of the initial lot sales. (E) The number of units approved for residential sale may not be more than 2-112 units for each unit ofpermanent overnight lodging provided under subparagraph M of this paragraph. (Emphasis added). As you have correctly noted in your memoranda, the ratios referenced in subparagraphs (a)(E) and (b)(E) specifically refer back to subparagraphs (a)(B) and (b)(B). In other words, rather than just stating that the "the number of units approved for residential sale may not be more than 2 [or 2-1/2] units for each unit of permanent overnight lodging provided throughout the resort," the statute ties the ratio only to the first 75 overnight lodging units of a phased resort in western Oregon, and the first 50 units of a phased resort in eastern Oregon. Further, the statute does not tie the ratio to a resort if it is not phased, nor does it tie the ratio any additional overnight lodging units beyond the first 75 units of a phased resort in Western Oregon, and the first 50 units of a phased resort in Eastern Oregon. In your memoranda, you suggest that this reference to "subparagraph (B)" was added by SB 911. You surmise that the cross-reference must have been added in order to limit the applicability of the 2.5:1 ratio to the first 50 overnight lodging units of a resort in eastern Oregon, and to subject all other overnight lodging units within an eastern Oregon resort to the old 2:1 ratio. However, the statute does not link the 2:1 ratio to any overnight lodging units in eastern Oregon, and SB 911 did not add the cross-reference with an intention to apply the 2.5:1 ratio only to the first 50 units of a resort. First, the statute references the 2:1 ratio only with respect to western Oregon (i.e. only in ORS 197.445(4)(a)(D)). There is simply no language in the statute to tie the 2:1 ratio to any units within a resort in eastern Oregon.' Thus, if we read the statute to apply the 2.5:1 ratio 1 As you note in your memo, the definitions in Goal 8 (which is the administrative rule that implements the statute) contain an extra phrase that attempts to link the 2:1 ratio to eastern Oregon. Specifically, under the definition of "Large Destination Resort" in OAR 660-015-0000(8), item (5) includes the same language as ORS 197.445(4) quoted above. However, in ORS 197.445(4), the first paragraph reads as follows: "Visitor-oriented accommodations including meeting rooms, restaurants with seating for 100 persons and 150 separate rentable units for overnight lodging shall be provided. However, the rentable overnight lodging units may be phased in as follows:..." In the implementing language in Goal 8, the paragraph contains an extra clause, as underlined below: "Visitor-oriented accommodations including meeting rooms, restaurants with seating for 100 persons and 150 separate rentable units for overnight lodging shall be provided. Accommodations 4s:\CDD\p1anning\Long Rangc\Destination Resorts\TA-04-4 and TA-04-5\2006\memotorr. only to the first 50 units of a phased resort in eastern Oregon, then all remaining overnight lodging units are not subject to any ratio. In other words, if a resort phases its overnight lodging units under the statute, then the number of lots that the resort may plat and sell is initially limited to no more than 125 lots (50 x 2.5). However, once a resort provides more overnight lodging units, the ratio does not regulate the platting and sale of any additional lots beyond the first 125. Again, while we do not believe this was the intention of the Legislature, it is the effect of a literal reading of the statute. Second, the cross-reference to "subparagraph (B)" in ORS 197.445(4) pre-dated SB 911, and the 2003 Legislature did not add the cross-reference in an attempt to apply the 2.5:1 ratio only to the first 50 overnight lodging units of a resort and keep the 2:1 ratio for all other units. If we look back to the statute as it existed following the 1993 amendments, it shows that it read as follows (see attached copy for your reference): 197.445 Destination resort criteria; phase-in requirements; annual accounting. A destination resort is a self-contained development that provides for visitor-oriented accommodations and developed recreational facilities in a setting with high natural amenities. To qualify as a destination resort under ORS 30.947, 197.435 to 197.467, 215.213, 215.283 and 215.284, a proposed development must meet the following standards: (4) Visitor-oriented accommodations including meeting rooms, restaurants with seating for 100 persons and 150 separate rentable units for overnight lodging shall be provided. However, the rentable units may be phased in as follows: (a) A total of 150 units of overnight lodging shall be provided as follows: At least 75 units of overnight lodging, not including any individually owned homes, lots or units, shall be constructed or available for residential use shall not exceed two such units for each unit of overnight lodging. However, the rentable overnight lodging units may be phased in as follows:..." (Emphasis added). The Goal then goes on to include the exact same language as ORS 197.445(4), including the references to the different ratios in eastern and western Oregon, and the cross-references tying the ratios to the first phases of a phased resort. Thus, the additional clause in the above quoted paragraph from the Goal is inconsistent with the associated portion of the statute. As confirmed by DLCD, the language of the statute of course supersedes the language of the administrative rule. Therefore, the Board is not bound to implement the text of the inconsistent rule, and DLCD should amend the Goal to comply with its statutory counterpart. Per Footnote 2 of this memo, it appears that the underlined clause was from a prior version of the Goal and statute, when ORS 197.445 consisted of one paragraph only, and the reference to the ratio was in that paragraph. However, when the Legislature amended ORS 197.445 in 1993 and 2003, they specifically removed the subject clause from the body of paragraph (4) of ORS 197.445, and it should also no longer be in the implementing paragraph in the Goal. 5S:\CDD\p1anning\L.ong Range\Destination Resorts\TA-04-4 and TA-04-5\2006\memotorr. guaranteed through surety bonding or equivalent financial assurance prior to the closure of sale of individual lots or units. (B) The remaining shall be provided as individually owned lots or units subject to deed restrictions that limit their use to use as overnight lodging units. The deed restrictions may be rescinded when the resort has constructed 150 units of permanent overnight lodging as required by this subsection. (b) The number of units approved for residential sale shall not be more than two units for each unit ofpermanent overnight lodging provided under Paragraph (a)(A) of this subsection. As shown above, the 1993 statute referenced "paragraph (a)(A)," which is the paragraph regarding the first 75 overnight lodging units of a phased resort. At that time, resorts in western and eastern Oregon were not subject to different regulations. Therefore, the 75-unit phasing option applied to all resorts. Although neither DLCD nor any County appears to have interpreted it as such, the 1993 statute clearly linked the 2:1 ratio only to the first 75 units of a phased resort.2 In 2003, SB 911 divided resorts into eastern and western Oregon, mainly for the purpose of increasing the lodging ratio to 2.5:1 in eastern Oregon only. In addition, the bill also changed the phasing option for overnight lodging units, reducing the first phase from 75 to 50 units. Opponents of the bill were concerned about the potential impact of an increased ratio in western Oregon, and therefore the dual system was created. This resulted in the renumbering of ORS 197.445(4) such that the cross-reference to "paragraph (a)(A)" became "subparagraph (B)." Regardless of the renumbering, the ratio previously cross-referenced only the first 75 overnight lodging units of a phased resort, and it still references only the first 50 or 75 overnight lodging units of a phased resort (depending upon the which side of the mountains the resort is located). In summary, the cross-reference was not a deliberate reference created by SB 911, it is a carryover provision from 1993, updated only to reflect the new numbering of the statute. While DLCD chose to use the eastern/western separation to maintain the 2:1 ratio for western Oregon resorts, neither the legislators, nor opponents, nor DLCD ever discussed the idea of using a two-ratio approach in Eastern Oregon. In other words, at no time were the legislators asked to adopt a statute to apply the 2.5:1 ratio to the first 50 units of a resort, and the 2:1 ratio to the remainder. Rather, the legislators were asked to apply the 2:1 ratio to western Oregon and the 2.5:1 ratio to eastern Oregon, and the statute does just that. Unfortunately because it maintains the original cross-reference to "paragraph (a)(a)" (now "subparagraph (B)"), the confusion from the 1993 amendments is perpetuated. However, the Legislature never discussed the option of applying a 2:1 ratio after the first 50 units of overnight lodging were constructed. The intention was to apply the 2.5:1 ratio throughout the life of Eastern Oregon resorts. 2 As shown on the attached copy of the resort statute as it existed in 1991, prior to the 1993 amendments, ORS 197.445(4) then read: "Visitor-oriented accommodations including meeting rooms, restaurants with seating for 100 persons and 150 separate rentable units for overnight lodging shall be provided. Accommodations available for residential use shall not exceed two such units for each unit of overnight lodging." 6sACDD\p1anning\Long Range\Destination Resorts\TA-044 and TA-04-5\2006\memotonr. 4. Summary In summary, SB 911 did not create a dual-ratio approach within Eastern Oregon. However, it did carry forth an old cross-reference to "paragraph (a)(A)" of ORS 197.445 (now "subparagraph (B)"). On its face, the cross-reference limits the application of the 2.5:1 ratio to the first 50 units of a phased resort in eastern Oregon. The statute does not contain any additional text or cross-reference to apply the 2:1 ratio to the remainder of the units. Rather, the only reference to the 2:1 ratio is in ORS 197.445 4 a (D), and, as you know, all of 197.445 4 a applies to western Oregon only. Thus, if the County were to follow the current statute exactly, you would revise Title 18 to apply the new 2.5:1 ratio only to the first 50 units of a phased resort. If a resort chose to construct or financially assure all 150 units up front, the phasing option of ORS 197.445(b) would never arise, and, accordingly, the ratio of ORS 197.445(b)(E) would also never arise because it is within the phasing subsection only, and it refers only to units "provided under subparagraph (B)." Therefore, contrary to what you suggested in your memo, the County is not bound to amend its code to apply the 2.5:1 ratio to the first 50 units of a resort and the 2:1 ratio the remainder. The statute does not apply the 2:1 ratio to eastern Oregon resorts at all, and it does not apply any ratio to a resort if the resort does not phase its minimum requirement of 150 lodging units. As noted in footnote 1 of this memorandum, Goal 8 continues to contain old text that appears to make the 2:1 ratio applicable to Eastern Oregon. However, this text is from a pre- 1993 version of the rule, and it is inconsistent with the current state statute. Therefore, because a state statute supersedes an inconsistent administrative rule, the statute must govern in this instance. Accordingly, the Goal 8 administrative rule does not require the Board to apply a 2:1 ratio to any units in Eastern Oregon. Finally, as you know, a County may be more restrictive than state law with respect to most land use regulations. Therefore, the Board may continue to apply a ratio throughout the life of a resort, as was the original intention of the law and the current requirement under Title 18. As noted above, the appropriate ratio for Eastern Oregon is 2.5:1. As a result, we would expect the changes to Title 18 to be as proposed in the redline that we provided to you. As such, they will maintain a ratio for the life of a resort (not just the first 50 overnight lodging units), but will increase it from 2:1 to 2.5:1 to carry forth the intent of the 2003 Legislature. Please contact me with any further questions on this matter. We look forward to answering any questions you may have about the statutory language. cc: Laurie Craghead, Deschutes County Catherine Morrow, Deschutes County Bob Rindy, DLCD 7s:\CDD\p1anning\Long Range\Destination Resorts\TA-044 and TA-04-5\2006\memotorr