2007-538-Order No. 2007-083 Recorded 5/23/2007DESCHUTES COUNTY OFFICIAL RECORDS rJ L007~5~u
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NANCY BLANKENSHIP, COUNTY CLERK 1i~J G
COMMISSIONERS' JOURNAL 05/23/2007 02;25;40 PM
IIIIIIII IIIIIIIIIIIIIIIIIII I III
2007-538
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Deschutes County Clerk
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statement, in accordance with ORS 205.244:
Re-recorded to correct [give reason]
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g6 NANCYUBLANKENSHIP, COUNTY CLERKDS 2007-28958
LE ALCOUNSEL 11111111111111111 IIIIIIII1ll111IIIIIIIII1111IIIIII NO FEE
00549879200700289580090099
05/22/2007 02:53:23 PM
D-M37 Cnt=1 Stn=4 TM
This is a no fee document
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
An Order Approving a Waiver of Land Use
Regulations to Authorize Jimmy Leroy and
Rochelle Ann Johnson to Use the Subject
Property as Allowed When They Acquired the
Property
* ORDER NO. 2007-083
WHEREAS, On November 2, 2004, the voters of the State of Oregon approved Ballot Measure 37
which added provisions to Oregon Revised Statutes (ORS) Chapter 197 to require, under certain circumstances,
payment of just compensation to landowners if a government land use regulation reduces property value. In lieu
of just compensation, Ballot Measure 37 authorizes the governing body of a local government to modify,
remove or not apply the land use regulation, and
WHEREAS, Jimmy Leroy and Rochelle Ann Johnson made a timely demand for compensation under
Measure 37 for a reduction in value to their property at 69550 Goodrich Road, Sisters, Oregon due to
regulations which took effect after they acquired this property, and
WHEREAS, Section 8 of Measure 37 authorizes the Board, as the governing body responsible for
adoption and enforcement of County regulations, to not apply the identified land use regulation that restricts the
owners' use and reduces the value of the property in lieu of payment of compensation; and
WHEREAS, the Board has received the report and recommendation of the County Administrator as
required by DCC 14.10.090; and
WHEREAS, the Board has considered the Administrator's report and the evidence presented by the
parties at a Board meeting as required by DCC 14.10.090; and
WHEREAS, the Board makes the following findings of facts and conclusions;
1. On November 28, 2006, Jimmy Leroy and Rochelle Ann Johnson filed a Measure 37 claim with
the Community Development Department.
2. The property is located at 69550 Goodrich Road, Sisters, Oregon and is within Deschutes
County.
3. The County Administrator has recommended that the regulations for the subject property that
were not already in effect until after December 10, 1979, not be enforced in lieu of payment of
just compensation to Claimants. The Administrator's report is attached and incorporated by
reference into this Order as Exhibit "A."
4. The Board concurs with the Administrator's report that Jimmy Leroy and Rochelle Johnson are
the present owners of the subject property described in Exhibit "B," having acquired an interest
in it and continuously owned it since December 10, 1979. The County finds and concludes as
set forth below.
PAGE 1 of 3- ORDER No. 2007-083 (05/15/07)
5. The Board concurs with the Administrator's report that the current zoning regulations, if applied
to the subject property, would not permit a division of the subject property. The current
regulations are land use regulations which are not exempt from Measure 37 claims.
6. The Board concurs with the Administrator's report that an application for a division of the
subject property would be denied if the current regulations were applied. Therefore, such an
application to determine enforcement of the current zoning to the Claimants' property would be
futile.
7. The Board concurs with the Administrator's report that there is no evidence which demonstrates
that the current procedural regulations for a land use permit have reduced the value of the
subject property.
8. The Board concurs with the Administrator's report that a partition of the property may not be
feasible. However, these matters can and would be evaluated in connection with a permit
application. Despite the lack of a precise amount of reduction in value, the loss of the ability to
partition the subject property would be a substantial amount of reduction in fair market value if
the regulations at the time Claimants acquired the property allowed such a use; now, therefore,
THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, HEREBY
ORDERS as follows:
Section 1. The Board hereby determines, based on these findings, conclusions, and the Administrator's
report in Exhibit "A," that the claim is eligible under DCC 14.10.100.
Section 2. The Board hereby elects to not apply nonexempt County land use regulations, to the subject
property described in Exhibit "B" in lieu of payment of just compensation under Ballot Measure 37. Claimants
may apply for a use of the subject property consistent with the substantive land use regulations in effect at the
time they first acquired the property. That land use shall be permitted if the subject property fully complies with
all substantive land use regulations in effect on December 10, 1979. The Community Development Director is
hereby authorized to determine the effects that any exempt land use regulations, as listed in ORS 197.352(3)(A)-
(D), would have on Claimants' proposed use. As used in this section, "land use regulations" refer to those listed
in ORS 197.352(11) (B). The Board does not waive current procedural regulations. Procedural regulations are
those which set forth the system, method, or way of processing land use applications, such as the requirement to
submit a certain form. Substantive land use regulations which are waived are those which regulate the actual
use of the land, including those listed in ORS 197.352(11)(B), and including regulations such as minimum lot
sizes, density restrictions, setbacks not protecting public safety, and height limits. The Board does not waive
exempt regulations which include those described in ORS 197.352(3), but the provisions of ORS 197.352(3)(E)
is subject to this Board's order as to dates of acquisition for Jimmy Leroy and Rochelle Ann Johnson.
Section 3. To the extent that any law, order, deed, agreement or other legally enforceable public or
private requirement provides that the subject property may not be used without a permit, license, or other form
of authorization or consent, this order does not authorize the use of the subject property unless the Claimants
first obtain that permit, license, or other form of authorization or consent.
Section 4. This Order is a waiver of a non-exempt County land use regulation from a property
determined to be claim eligible as defined in DCC 14.10.020(0).
Section 5. A STATE OF OREGON WAIVER MAY BE REQUIRED FOR THE DEVELOPMENT OR
USE OF THE SUBJECT PROPERTY. ALTHOUGH THE COUNTY WILL ACCEPT AND PROCESS
SUBSEQUENT LAND USE APPLICATIONS ASSOCIATED WITH THE SUBJECT PROPERTY,
APPROVAL MAY NOT BE GRANTED WITHOUT A VALID WAIVER FROM THE STATE PERTAINING
TO STATE REGULATIONS WHICH WOULD OTHERWISE PRECLUDE THE PROPOSED LAND USE.
PAGE 2 of 3- ORDER No. 2007-083 (05/15/07)
THIS WAIVER APPLIES ONLY TO THE LOCAL REGULATIONS SPECIFIED ABOVE. DESCHUTES
COUNTY LACKS THE AUTHORITY TO WAIVE ANY STATE REGULATIONS OR LAWS. STATE
LAWS AND REGULATIONS MAY APPLY TO THE USE OF THE PROPERTY DESCRIBED HEREIN,
AND A WAIVER OF SUCH LAWS AND REGULATIONS MUST BE SEPARATELY OBTAINED BY THE
OWNERS FROM THE STATE OF OREGON.
Section 6. This Order shall be recorded in the Deschutes County Deed Records together with portions
from the deed or other instrument in Exhibits A and B sufficient to identify the subject property for recording
purposes. ~(~p~.~
DATED this ~ day ofga-I X007.
BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
ATTEST:
Recording Secretary
PAGE 3 of 3- ORDER No. 2007-083 (05/15/07)
'W.tA~ -i~ -
MICHAEL ALY, C AIR
Deschutes County Department of Administrative Services
1300 NW Wall St., Ste. 200, Bend, OR 97701-1947
(541) 388-6570 Fax (541) 385-3202 - www.deschutes.org
TO: Board of County Commissioners
From: David Kanner, County Administrator
RE: Measure 37 Claim - Jimmy Leroy and Rochelle Ann Johnson
(Claimants)
69550 Goodrich Road. Sisters. OR
Introduction
DATE: May 15, 2007
The County processed the initial Measure 37 claims using its brief claim form, evaluating the submission,
and preparing this report and recommendation under DCC 14.10, the Measure 37 ordinance. The
County's claims process recognizes that less precise evidence of value may be sufficient to evaluate
claims, since there are currently no County funds available for payment of compensation. Also, the
ordinance provides further opportunities for affected neighbors to present evidence and testimony at the
Board meeting when these claims are considered.
This report and recommendation is intended to be a summary and evaluation of evidence in the record.
The report may be attached to the Board's Order which decides Measure 37 claims, as a factual basis for
the Order. Any factual changes or additions to this report from testimony or other evidence can be made
part of the Board's Order. Claimants and affected parties have the opportunity to rebut this Report and
provide additional relevant evidence to the Board. Also, under the County's process, claimants must
provide evidence that the desired use of the property, which may be allowed by a waiver of County
regulations is feasible, i.e., not prevented by physical, utility or other development limitations of the site.
Report and Recommendation - DCC 14.10.090
This is my report and recommendation on this Measure 37 claim received on November 28, 2006, when
Measure 37 was in lawful effect. Claimants have paid the filing fee and submitted the County's official
demand form. The property consists of one lot with approximately 10 acres in one tax lot. The current
zoning is EFU-SC. The Claimants' desired use is to divide the property into two parcels, currently
Page 1 of 5 - Exhibit A - Order No. 2007-083
restricted by County land use regulations. Claimants allege a reduction in value of approximately
$280,000 due to the inability to divide as desired. The following is an analysis of the evidence in the
record on the elements of this Measure 37 claim.
Current Owner - Jimmy Leroy and Rochelle Ann Johnson are the owners of the property comprising this
claim: 14-11-32, Tax lot 201 located at 69550 Goodrich Road, Sisters. Claimants submitted a copy of a
Memorandum of Contract executed December 10, 1979, recorded at Volume 313, Page 312, Deschutes
County Deed Records, showing them as purchasers. They are listed on County records as the owners
and have owned the property continuously.
Owner Date of Acquisition - December 10, 1979
The date of acquisition by the current owners is the relevant date for Board consideration of waivers
under section (8) of Measure 37. The compensation section of Measure 37, section (6), uses the
acquisition date of a family member to determine the extent of reduction in value for compensation. Since
the County has no funds budgeted for payment of compensation, waivers that are issued by the County
are limited by section (8) of Measure 37 to County land use regulations that were adopted after the later
acquisition date of the current owners. If a waiver is granted as to County land use regulations which
were adopted after the current owners' acquisition date, no compensation is due, even if the prior family
member held the property for many years. While this may seem inconsistent, the measure was, evidently,
written to encourage waivers of local and state land use regulations. The first date for which there is
documentation showing Jimmy Leroy and Rochelle Ann Johnson obtained an interest in the property is
December 10, 1979.
Restrictive Regulation - Zoning Regulations.
Under the terms of the ordinance, the claimants must identify County land use regulations that prevent
the claimants from using the property in a way that they otherwise could have used the property at the
time the property was acquired, and thus reduce the value of the claimants' property. The Claimants have
not identified specific provisions of the county's ordinance but have alleged that current EFU zoning
regulations have reduced the value of their property by prohibiting their ability to divide the property. At
the time of acquisition the property was subject to County zoning provisions, either A-1 under PL-5 or
EFU-20 under PL-15. PL-5 and PL-7 (governing partitions) would have allowed a partition, but EFU-20
Page 2 of 5 - Exhibit A - Order No. 2007-083
zoning regulations would not have allowed the desired partition. Claimants have not identified any other
regulations that may have restricted the value of Claimants' property.
The county would need to evaluate any land use application that may be submitted pursuant to
regulations in effect at the time Claimants first acquired an interest in the property.
Enforcement of County Regulation - futile DCC 14.10.040(G).
Measure 37 requires that an ordinance which restricts the current owners' use be "enforced" against
them. Claimants have not have applied for a land division resulting in the current zoning being enforced
on the subject property. The subject property was created via a partition detailed in county file no. MP-79-
51, which became final upon signature by the Board of County Commissioners on April 9, 1980.
Claimants have demonstrated that submitting an application for the desired land division would be futile.
This Report confirms that such an application for the desired partition would violate the current
requirements and be denied. Therefore, the intent of DCC 14.10.040(G) has been met for this claim.
Reduction in Value - $280,000 alleged on Claim Form
The ordinance requires that the Claimants provide evidence of the amount of the claim in alleged
reduction in the fair market value of the property resulting from the enforcement of the County's land use
regulation.
• Claimants have asserted that a land division would be approved. This assertion may not be
supported by the zoning that was in effect at the time of acquisition.
• Claimants' property is located along Goodrich Road so access may not be an issue.
• Other public utilities may be available to the property.
• Claimants have not submitted an appraisal, or opinions from real estate professionals in an
attempt to show the diminution in value based upon limitations on land division of the property.
Claimants' alleged reduction in value appears to be based upon the assumption that lots created by
dividing the property are fully marketable and useable by others for development. Referring to a recent
Opinion of the Oregon Attorney General, rights obtained under Measure 37 are personal to the present
property owners. Assuming an owner, having obtained the necessary "waivers" from the County and the
State, could divide the property, future owners would, according to the Attorney General, be precluded
from using the property in a manner inconsistent with land use regulations in effect at the time of the
transfer. Thus, the amount of reduction in value asserted by the Claimants may be unreliable, if the
Page 3 of 5 - Exhibit A - Order No. 2007-083
resulting lots are unusable by future owners, based on their having to comply with zoning regulations in
place when such future owners acquire the property. If Claimants could have obtained approval of a
division of the property on the date they first acquired an interest in the property, but not under zoning
restrictions adopted after Claimants' acquisition date, and the resulting lots are fully marketable and
useable by future owners, then the value of Claimants' property for Measure 37 purposes would be
reduced. Consistent with the County's procedural ordinance, Chapter 14.10, this report takes no position
on whether a waiver obtained by a claimant and any resulting development approval are fully transferable
with the property.
Effect of County Waiver - Measure 37 clearly allows the County to waive its non exempt land use
regulations only back to the date the current owners, not family members, acquired the property:
"(8) Notwithstanding any other state statute or the availability of funds under
subsection (10) of this act, in lieu of payment of just compensation under this act,
the governing body responsible for enacting the land use regulation may modify,
remove, or not to apply the land use regulation or land use regulations to allow
the property owner to use the property for a use permitted at the time the owner
acquired the property. " (emphasis added)
11(c) "Owner" is the present owner of the property, or any interest therein."
In this case, Jimmy Leroy and Rochelle Ann Johnson have continuously owned an interest in the property
since 1979. A claimant who receives a waiver must use the current process to seek the needed permits
based on the zoning in place at the time the current owners acquired the property. Except in a rare case,
the current procedural requirements for handling permits are not regulations that reduce value. Therefore,
the County's procedural regulations are not waived.
Conclusion and Recommendation
The present owners of the property have submitted a claim pursuant to Measure 37 which demonstrates
eligibility for its use of the subject property based on nonexempt land use regulations in effect on
December 10, 1979, the date when Claimants first acquired an interest in the property. There is evidence
in the record that a land division of the subject property may not be feasible because of the zoning
regulations in effect at the time of acquisition.
Page 4 of 5 - Exhibit A - Order No. 2007-083
My recommendation is that the Board approve a waiver in the form of Order attached. This Order would
have the effect of waiving the nonexempt County land use regulations which were not in effect until after
December 10, 1979, to allow the Claimants to use the property in a manner permitted at the time they
acquired the property. This waiver is not a development permit. By granting a waiver, the County does not
commit itself to approving Claimants' desired permit.
Cautionary Note on Measure 37
Claimants should understand that a decision by Deschutes County may not enable them to proceed with
future development or construction unless the State of Oregon approves a waiver of applicable State land
use regulations. Claimants who wish to obtain information relative to their "State" claims under Measure
37 are advised to contact the State Department of Land Conservation and Development and the
Department of Administrative Services.
Page 5 of 5 - Exhibit A - Order No. 2007-083
A parcel of land located in the Northwest Quarter of Section 32, Township 14 South, Range 11 East of the
Willamette Meridian, Deschutes County, Oregon, more particularly described as follows:
Beginning at the North 1/16 corner of the line between Sections 31 and 32 of said Township and Range,
which is the true point of beginning; thence South 89°18'14" East a distance of 667.29 feet to a 5/8"iron
rod; thence North 00°2926" East a distance of 660.89 feet to a 5/8" iron rod; thence North89°05'12" West,
a distance of 667.64 feet to a 5/8" iron rod; thence South 00°27'15" West, a distance of 663.42 feet along
the center line of an existing county road right of way to the point of beginning.
EXHIBIT B