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2007-1608-Order No. 2007-080 Recorded 10/29/2007COUNTY NANCYUBLANKENSHIP,F000NTY CLERKDS 1~J 2007'~~08 COMMISSIONERS' JOURNAL 111111111101111111101111111 111 10/29/2007 08:51:12 AM 2007-1608 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 COUNTY NANCYUBLANKENSHIP,F000NTY CLERKDS 2007.66859 EVIEWE r NO FEE EGA CO SEL 11111111111111111111111111111111111111111111111111111 005805182007003685900,0008 10/26/2007 10:46;52 AM D-H37 Cnt,:1 Stnol BN 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 Jeff and Pat Dowell to * ORDER NO. 2007-080 Use the Subject Property as Allowed When They Acquired the Property WHEREAS, On November 2, 2004, the voters of the State of Oregon approved Ballot Measure 37 which added provisions to Oregon Revised Statutes (ORS) Chapter 197 to require, under certain circumstances, payment of just compensation to landowners if a government land use regulation reduces property value. In lieu of just compensation, Ballot Measure 37 authorizes the governing body of a local government to modify, remove or not apply the land use regulation, and WHEREAS, Jeff and Pat Dowell made a timely demand for compensation under Measure 37 for a reduction in value to their property at 65595 Sisemore Road, Bend, Oregon due to regulations which took effect after they acquired this property, and WHEREAS, Section 8 of Measure 37 authorizes the Board, as the governing body responsible for adoption and enforcement of County regulations, to not apply the identified land use regulation that restricts the owner's use and reduces the value of the property in lieu of payment of compensation; and WHEREAS, the Board has received the report and recommendation of the County Administrator as required by DCC 14.10.090; and WHEREAS, the Board has considered the Administrator's report and the evidence presented by the parties at a Board meeting as required by DCC 14.10.090; and WHEREAS, the Board makes the following findings of facts and conclusions; On November 27, 2006, Jeff and Pat Dowell filed a Measure 37 claim with the Community Development Department. The property is located at 65595 Sisemore Road, Bend, Oregon and is within Deschutes County. The County Administrator has recommended that the regulations for the subject property that were not already in effect until after September 20, 1989, 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." The Board concurs with the Administrator's report that Jeff and Pat Dowell are the present owners of the subject property described in Exhibit "B," having acquired an interest in it and continuously owned it since September 20, 1989. The County finds and concludes as set forth below. PACE 1 OF 3- ORDER No. 2007-080 (10/22/07) 5. The Board concurs with the Administrator's report that the current zoning regulations, if applied to the subject property, would not permit a siting of a dwelling on the subject property in the desired location. 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 siting a dwelling on 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. The Board concurs with the Administrator's report that constructing a house on the property may 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 construct a house in the desired location on 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 DESC1 UTES 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 September 20, 1989. 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 Jeff and Pat Dowell. 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, PACE 2 OF 3- ORDER No. 2007-080 (10/22/07) APPROVAL MAY NOT BE GRANTED WITHOUT A VALID WAIVER FROM THE STATE PERTAINING TO STATE REGULATIONS WHICH WOULD OTHERWISE PRECLUDE THE PROPOSED LAND USE. 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. DATED this,)-?- -day of October, 2007. ATTEST: -&IVIIL~- Recording Secretary BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUN~,Y, OREGON DEI~NIS R. LUKE, VICIE CHAIR 1TAMMY EY, CO ISSIONER PAGE 3 of 3- ORDER No. 2007-080 (10/22/07) Deschutes County Department of Administrative Services 1300 NW Wall St., Ste. 200, Bend, OR 97701-1947 (541) 388-6570 Fax (541) 385-3202 -vwwv.deschutes.org TO: Board of County Commissioners From: David Kanner, County Administrator RE: Measure 37 Claim - Jeff and Pat Dowell (Claimants) 65595 Sisemore Road, Bend, OR Introduction DATE: October 22, 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 27, 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 4.3 acres in one tax lot. The current zoning is F-2/WA, LM. The Claimants' desired use is to construct a house on the property in the desired location, currently restricted by County land use regulations. Claimants allege a reduction in value of Page 1 of 4 - Exhibit A - Order No. 2007-080 approximately $100,000 due to the inability to site a dwelling as desired. The following is an analysis of the evidence in the record on the elements of this Measure 37 claim. Current Owner- Jeff and Pat Dowell are the owners of the property comprising this claim: 16-11-19, Tax lot 100 located at 65595 Sisemore Road, Bend. Claimants submitted a copy of a Contract of Sale, dated September 20, 1989, showing them as purchasers. They are listed on County records as the owners and have owned the property continuously. There appears to have been a separate later transaction involving the subject property in 1990. At that time a separate contract of sale was executed showing Martha Leigh and William Kuhn as sellers and the claimants as buyers. The subject property is listed on both contracts, as well as other property not part of the subject claim. The effect of this second transaction is uncertain, but does not appear to alter the conclusion that the claimants first acquired an interest in the subject property on September 20, 1989. Owner Date of Acquisition - September 20, 1989 The date of acquisition by the current owner is the relevant date for Board consideration of waivers under section (8) of Measure 37. The compensation section of Measure 37, section (6), uses the acquisition date of a family member to determine the extent of reduction in value for compensation. Since the County has no funds budgeted for payment of compensation, waivers that are issued by the County are limited by section (8) of Measure 37 to County land use regulations that were adopted after the later acquisition date of the current 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 Jeff and Pat Dowell obtained an interest in the property is September 20, 1989. 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 regulations have reduced the value of their property by prohibiting their ability to site a dwelling on the property. At the time of acquisition, the property was zoned F-3/WA/LM under PL-15. Page 2 of 4 - Exhibit A - Order No. 2007-080 Claimants allege that setback requirements adopted after the acquisition date of 1989 would have the effect of restricting the siting of a dwelling on the property. While 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, it appears that in theory, based upon regulations in effect in 1989, that a dwelling in the desired location may have been permitted at that time. 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 applied for siting a dwelling resulting in the current zoning being enforced on the subject property. (See: County file no. LM-92-9.) Claimants have demonstrated that submitting an additional such application would be futile. This Report confirms that such an application for the desired house location 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 - $100,000 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 siting a dwelling would be approved. • Claimants' property is located along Sisemore 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 siting a dwelling on 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 orooerty owner to use the nroperty for a use permitted at the time the owner acquired the Property. "(emphasis added) Page 3 of 4 - Exhibit A - Order No. 2007-080 I 1(c) "Owner" is the present owner of the property, or any interest therein. " In this case, Jeff and Pat Dowell have continuously owned an interest in the property since 1989. 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 their use of the subject property based on nonexempt land use regulations in effect on September 20, 1989, the date when Claimants first acquired an interest in the property. There is evidence in the record that siting a dwelling on the subject property would be feasible. 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 September 20, 1989, 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 4 of 4 - Exhibit A - Order No. 2007-080 EXHIBIT B s (2) A parcel of land located in Section 19, T.16 S., R.11 E., W.M.,Deschutes County, Oregon and described as follows: Beginning at the Northeast corner of said Section 19; thence N 89°11'47" W 306.60 feet to the Westerly right- of-way line of Sisemore County Road and the true point of beginning; thence along said right-of-way line S 23°56'02" E, 66.67 feet; thence along said right-of- way line on a 233. 88 foot radius curve r ight 1,14.47 feet, the long chord of which bears S 09°54'46" E, 113. 33 feet; thence along said r ight-of -way line on a 153.80 foot radius curve right 28.46 feet; the long chord of which bears S 09°24'32" W 28.42 feet; thence N 89011147" W, 946. 35 feet; thence N 00°48'13" E, 200. 00 feet; thence S 89°11'47" E, 901.63 feet to the TRUE POINT OF BEGINNING, containing 4.3 acres more or less net. - it 1OTES O G wg Is { 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 October 22, 2007 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: 10/12/07 TO: Deschutes County Board of Commissioners FROM: Kevin Harrison; CDD; 385-1401 TITLE OF AGENDA ITEM: Consideration of claims for compensation under Measure 37 (DCC Chapter 14.10) and signature of Order. HEARING: Yes. BACKGROUND AND POLICY IMPLICATIONS: Claims to be considered are: (1) M37-06-145 (Dowell); Order No. 2007-080. (Note: This Claim was previously scheduled to be reviewed on September 10, 2007.); (2) M37-05-7 (Pine Ridge Ranch Co.); Order No. 2005-042. (Note: This claim is being reconsidered under remand.) FISCAL IMPLICATIONS: None. RECOMMENDATION & ACTION REQUESTED: As decided by the Board. ATTENDANCE: Tom Anderson/Mark Pilliod DISTRIBUTION OF DOCUMENTS: Orders and staff reports to be recorded with County Clerk. Copies to be sent to Legal Counsel, CDD, DLCD (Cora Parker, Deputy Director; DLCD; 635 Capitol Street, NE, Suite 150; Salem, OR 97301- 2524); Claimants.