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2011-3085-Minutes for Meeting October 31,2011 Recorded 11/15/2011COUNTY OFFICIAL NANCYUBLANKENSHIP, COUNTY CLERKOS CJ X011'3085 COMMISSIONERS' JOURNAL 11/15/2011 08:09:51 AM 11111111111111111111111111111111 2013-3085 Do not remove this page from original document. Deschutes County Clerk Certificate Page Deschutes County Board of Commissioners 1300 NW Wall St., Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org MINUTES OF BUSINESS MEETING DESCHUTES COUNTY BOARD OF COMMISSIONERS MONDAY, OCTOBER 31, 2011 Commissioners' Hearing Room - Administration Building - 1300 NW Wall St., Bend Present were Commissioners Tammy Baney, Alan Unger and Anthony DeBone. Also present were Laurie Craghead, County Counsel; George Kolb, Road Department; Nick Lelack, Peter Gutowsky and Terri Payne, Community Development; and about a dozen other citizen including media representative. Hillary Borrud of the Bulletin. Chair Baney opened the meeting at 10:00 a.m. 1. PLEDGE OF ALLEGIANCE 2. CITIZEN INPUT None was offered. 3. Before the Board was Consideration of Second Reading by Title Only, and Adoption of Ordinance No. 2011-018, Making Minor Technical Changes to Title 17 of Code (Minimum Design Standards - Roads). George Kolb gave a brief overview of the item. Laurie Craghead said there were a few minor changes, nothing substantive, but primarily for clarification. Ms. Craghead read the changes into the record. DEBONE: Move second reading, by title only. UNGER: Second. VOTE: DEBONE: Yes. UNGER: Yes. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 1 of 15 Pages BANEY: Chair votes yes. Chair Baney did the second reading, by title only. LINGER: Move approval with the changes as read into the record by Counsel. DEBONE: Second. VOTE: DEBONE: Yes. UNGER: Yes. BANEY: Chair votes yes. 4. Before the Board was Consideration of Second Reading by Title Only, and Adoption of Ordinance No. 2011-026, Making Minor Technical Changes to Title 12 of Code (Utility Permits - Roads). UNGER: Move second reading, by title only. DEBONE: Second. VOTE: DEBONE: Yes. UNGER: Yes. BANEY: Chair votes yes. Chair Baney conducted the second reading, by title only. UNGER: DEBONE: VOTE: DEBONE: Yes. UNGER: Yes. BANEY: Chair votes yes. 5. Before the Board was a Public Blearing and Consideration of First and Second Readings and Adoption, by Emergency, of Ordinance No. 2011- 027, Adopting Amendments to the Comprehensive Plan. Chair Baney read the opening statement. No conflicts of interest were declared by the Commissioners, and there were no challenges from the public. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 2 of 15 Pages Terri Payne provided a brief explanation of the item. The Ordinance will coordinate changes into the new Comprehensive Plan document. The Planning Commission unanimously approved the changes. The Comprehensive Plan is going through the adoption process at this time, and this document helps to adopt changes that need to be a part of the Plan. Ms. Craghead added that the Comprehensive Plan is part of Title 23, and this will help to make a smooth transition in a timely manner. No public testimony was offered, so the hearing was closed. UNGER: Move first and second readings of the Ordinance, by title only, declaring an emergency, effective the same date as the Comprehensive Plan document. DEBONE: Second. VOTE: DEBONE: Yes. UNGER: Yes. BANEY: Chair votes yes. Chair Baney conducted the first and second readings of the Ordinance, by title only, declaring an emergency. UNGER: Move adoption of Ordinance No. 2011-027. DEBONE: Second. VOTE: DEBONE: Yes. UNGER: Yes. BANEY: Chair votes yes. 6. Before the Board was a Public Hearing and Consideration of First Reading, by Title Only, of Ordinance No. 2011-017, to Adopt a Regional Economic Opportunity Analysis and Regional Large-Lot Industrial Land Policy for Central Oregon. Mr. Gutowsky entered the entire file into the record, and submitted an e-mail document received regarding the Ordinance. 1,000 Friends of Oregon also provided testimony, as did several other persons. This will be part of the record. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 3 of 15 Pages Mr. Gutowsky said that the Board has had a work session on this and input is going to be provided by individuals who are involved with the process. Pam Hardy, representing 1,000 Friends of Oregon, came before the Board. She said major improvements were made to the document, but she feels there are still deficiencies. She asked for additional time to review the evidence that will be submitted today, and feels 14 days will be adequate. She referred to written testimony she submitted and explained how she commented on the various parts of the Ordinance. She had provided this information in the past, but said that she had been asked to be very specific about desired changes, so she drafted the document to make this clear. There are certain sections where her recommended changes are relevant. Red print means a major appeal point, yellow is a possible appeal point, and green means she finds the language agreeable. There were three essential questions: Legal? Good policy? Does this document meet the necessary standards? She said yes, it is legal; OAR encourages this type of policy. It is good policy since regional activities provide opportunities of scale that individual entities could not do by themselves, and DLCD has stepped in to help with the process. However, it is very complicated and more information is needed. In particular, significant issues include the fact that there is no trend analysis showing this is an egnognist need. The Oregon Employment Department prediction figures do not support some of the findings. It is hard to find a case showing the need is there. A way to get to a need that is over and above standard employment information is to look at industry trends, such as data center moving into more remote sites. There have to be local assets to attract those kinds of trends, but this information is not in the findings. What is in the record now are just statements from experts largely unsupported by data. Missing is an objective trends analysis. There will be a substantial evidence question to support why it is felt a certain number of new lots are needed. Inventory is required per statute, and the findings admit that there has to be a regional inventory. Cities are not to undertake an inventory because the counties will be doing this. It has to be complete. Instead of adopting the document, the County should set up the group to do a review. There is no data included as to what is going on industry-wide, specifically relating to data centers. Distinctions need to be made. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 4 of 15 Pages Nothing can change until the inventory is done. She suggested that the inventory be done first so more information can be gathered and a rock-solid solution can be developed. It will cost less (avoiding an appeal); it takes less time (appeals take a long time); and it may help to make the area more competitive. The changes need to happen on the ground and soon. She would like more time to come to a compromise that will be mutually beneficial. Chair Baney stated that this is analyzing assumptions, with a lot of moving parts. There has to be a lot of guesswork as this work continues. There are no absolute certainties. She asked at what point they do move forward, since the assumptions will always be changing. They will never get to the end result this way, so have to move forward. At some point they have to put a stake in the ground and go from there. Ms. Hardy said it is hard to predict the future, but as you look into the future, experts that are certain they are right are more likely to be wrong than those who give smaller odds on being correct. People who are not as certain have a more realistic viewpoint and come up with the best analyses. Those who feel they are 100% right are probably missing something. The question is where you stop, and that would be with experts who have a 60% likelihood of what will be happening. Data centers are a trend but it is not known how long that will last. There needs to be adequate power and other infrastructure in place for them. You start with what is most likely, but acknowledge that in two years things could be very different. Commissioner Unger stated that a lot of the requirements and needs for industry are similar, so common elements are needed. As it goes to city by city, other details will be addressed and developed by the cities. Ms. Hardy said that she feels the industries targeted are not similar. Data centers don't need the parking and personnel that warehouses do, nor the energy consumption. She argued that the kinds of targeted industries sought may need the same size lot, but other needs might not be similar. Commissioner Unger said the County wants to create the opportunity and keep things at a broad brush level. Ms. Hardy feels the law indicates that the larger question needs to be addressed at the County level to start. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 5 of 15 Pages John Skidmore, business advocate for City of Bend, said he was with Madras previously. This is a huge opportunity to make changes to a stagnant land use system and start to calculate Goal 9 land use needs. Economic development experts in the area indicate that large lot industrial lands are needed. This will help the area be competitive. Sitting back and tinkering at the system will probably still not get the full support of 1,000 Friends. There are a lot of local experts who have provided input, and he feels this is fully vetted. At a certain point, you've reviewed the trends and have to make an informed decision. He feels the findings are strong and can be supported. If this is appealed, it will be worked at from the legislative angle. He feels the information is thorough and defendable. He appreciates what 1,000 Friends does, but taking on a regional cooperative process is important. Florida just lost its land use planning system due to problems tied to inflexibility and frustration. Commissioner Unger asked that since there is legislative action possible, is it better to wait for this to happen. Mr. Skidmore stated that if it can be handled at the local level and tri-county support obtained, that would be best. There are fewer sideboards if it then goes to Salem. This is not overreaching, and a lot of the future inventory and forecasting will be done on at a more specific, precise level. Commissioner DeBone asked if the City has large lot industrial lands available. Mr. Skidmore said they have a deficiency at this time. Some lots were just platted in Juniper Ridge, but they are smaller. This activity does not assure success, but without change there will be no success. Michael Williams, an industrial lands specialist for Business Oregon, said he is involved in a program that certifies industrial sites across Oregon for new businesses. He supported the REOA in May and supports the current findings now. The methodology is targeted and accurate. They did review current industries. Many industries that will be around in ten years are unknown at this time, but they have to be ready for these today. You have to be ready to move quickly, and be patient in the meantime. Over the last twenty years, the demand in the Metro area came mostly over a two-year cycle. The land use system as structured cannot react that quickly. These are also good proxies for tomorrow. Clean industries are doing well even during the downturn, and some need large lots. Warehousing and distribution is Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 6 of 15 Pages also a growing industry. Also, supply and logistics trends are always changing. Product lines change all the time. There are exterior forces making these changes, so that is why you have to be ready for a broad range of industries. He feels the context of the REOA is to be encouraged at a local level. Companies look at regions and usually do not just look at a specific city. They analyze educational institutions, the employee base, transportation and other aspects. Having six sites is very conservative, and the demand may be for more. At first they looked at firms with 500 or more employees, but then looked at specific industries and recruitments, and examined other areas that have grown due to large lot industrial development. Some has been said that perhaps large employers are not beneficial. He feels they are as a basis for the community. These opportunities are based on site selection, tracked by nine industries. Over the past year, requirements of 25 acres or more have had strong demand. Five of the nine categories want more than 50 acres. In four categories, they want more than 100 acres. These are bad economic times, and if he sees that demand now, it will only increase in the future. Commissioner DeBone asked how much Central Oregon will be the place to locate, when compared to the bigger cities. Mr. Williams said that Facebook put a marker down here and put the area on the map. This was great exposure, and gives other large companies comfort that this area is desirable. There is a lot of large lot development at the Port of Morrow. However, you need good transportation and space, and also a good labor force. The other thing is that some employers will start small but grow over time. They may only need ten acres today but their business plan may look to more space in the coming years. Oregon tries to match a user to a particular site, but he would like to see more focus on business park development. There are a lot of business parks with developers behind them, getting it done. They try to place a user in the right place. They will not come if the sites available are small and segmented. You need large building blocks to work with. There is a lot of evidence that these are quality employers. Commissioner Unger said he toured the Port of Morrow and saw how successful their plan is. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 7 of 15 Pages Chair Baney asked about the importance of having a regional approach such as this one. They are getting some pushback as to when the area is ready for this kind of thing. Mr. Williams replied that this helps to diversify the economic base, for large and small businesses alike. They have analyzed both and they've done well even with the poor economy. It needs to be an ecosystem to work efficiently. The regional approach will be a great signal to the market that this is important to the region and gives reassurance to companies that the area wants them there. By showing there is a regional approach and planning, it is an advantage over time. This will help elevate this area. There is a good regional economic development group here as well, who can highlight all the community assets. Scott Edelman of the City of Prineville said he wanted to indicate that Prineville is in support. They do have the industrial lands that they need right now in his area, but appreciates the approach and he is glad Crook County is involved. He also feels that Pam Hardy should be lauded for her input and the input of her group to help keep the work focused and open. Peter Gutowsky has done an admirable job of moving this forward. He does not disagree with some of 1,000 Friends' comments, but likes the common sense approach, and feels that six sites is reasonable. Overall the report backs this up. He said there are too many variables to be exact on what might happen. This project is meant to make it possible for companies that could be here to do so. It is not so much about the number of sites or size, but variety. There are great differences in companies. There need to be enough sites available to be able to address this. It makes sense to have a few sites in each area because of the differences in each area. There are things in this process that do protect land use in the State, such as the types of uses or how the land is utilized. The standards will be strict, which might mean some land is not used or becomes general industrial land. However, the risks are limited when compared to the benefits. There has to be a decision as to the use of each site, and they have to recognize that each area can't have everything that might be needed in their particular area. People still want to live in Central Oregon and want to have businesses here. The process will help them do that when they are ready and when they have learned about the area. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 8 of 15 Pages Roger Lee of EDCO said they are seeing the demand first-hand. They work with a broad spectrum of businesses, many of which do not need this size lot. Prineville has an adequate supply, while other regional cities do not. There is a huge deficiency in inventory, and the infrastructure also has to be addressed. Historically there has been demand, and they are seeing it even today with the soft economy. All of this is documented. They have had inquires as recent as last week. There is not enough here for someone to visit, so they will offer virtual tours. Failing to go forward with this process ensures failure. This does not take away from small to medium sized businesses. There is not enough flexibility at the State level, and there can never be enough information. This is the best attempt to look at all the factors. The current land use process, Goal 9, has served some communities well and some not well at all. The City of Bend has a lack of industrial land and it shows. Redmond has the same issue. This process won't circumvent land use laws, but is an opportunity to get some necessary land available. There are some with smaller employment numbers but the facilities are large and a huge investment for them. It is not theoretical; it is real. Jon Stark, Redmond Economic Development Manager, said he works for EDCO but also deals with 24 other managers. A year ago a site selection firm contacted him regarding obtaining 80 acres. He sent information to them regarding one available site in Redmond. They visited the area and walked the grounds. The incentive package was also of interest to them. They wanted a specific timeline and actually would have wanted more acreage in the future. The additional land was not in the UGB. There is another site that might have been rezoned, but the timeline with the State land use planning process was outside of their project plans by about a year. The area was eliminated for that reason. They support the REOA as a way to give the area a competitive advantage over other areas. The OSPR could be a viable property as well as adjacent properties in Redmond, but at this point the needs cannot be addressed. This must be adopted so a way can be found to give the area a competitive advantage. By not doing this now, it tells the marketplace that we are not open for business or the demands of industry in the future. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 9 of 15 Pages There has been other interest from manufacturers, not just computing firms. This is the real world problems they face. Commissioner Unger disclosed that he is the County representative for the REDDI Board. Chair Baney said it is important to know that the area was considered and lost out because of the lack of the right kind of land. This sends an important message. Rob Hallyburton of the DLCD stated that the DLCD supports the REOA and this effort, as the first local jurisdiction to consider this. Regional planning is a hot topic right now and studies are being done to figure out how to plan better in Oregon. No one thinks that working regionally is a problem. There are other regional efforts being made, such as in Jackson County, looking at the greater Medford area and six cities. That effort has just been adopted, so they are still uncertain about details as well. Everyone thinks regional planning is a good idea but the pushback was the justification to wait. He spoke about Goals and Rules. The County is required to coordinate comprehensive land use plans in that County. It does not go beyond the County but the regional efforts are encouraged in Goal 9. They leave it up the area to figure out how to do this. They do realize there are a lot of details to address. The action does not take the designation of any comprehensive plan map in the County, so this does not directly support new employers. It sets the groundwork for the cities to do the real, specific work at their level. The Goal 9 rule does not have any requirements except a framework. The findings do not have to follow the minutiae that the cities will have to deal with, but will help set the stage and streamline the work. At the Senate committee, he was grilled as to whether the land use program gets in the way of economic development. He had to admit when there are unanticipated opportunities, they are not very good at dealing with those quickly. Anything the county or region can do to help with those is a good thing. Commissioner Unger thanked him for testifying and for the support of DLCD. Chair Baney added that this is unique and they are trying to be nimble. They Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 10 of 15 Pages want to be prepared for the unknown, perhaps trends that are not yet trends. This will help to get to the end result. Doug Parker, an asset planner with the Oregon Department. of State Lands, stated that he thought John Skidmore explained some noteworthy things. They are an active partner and support the County's efforts to adopt the REOA. The County has emerged as a leader Statewide for doing this. County staff is confident and knowledgeable. Oregon's land use was modified in order to assess land use needs at a regional level, on the hope this would help resolve the lack of large lot industrial throughout the State. It is tied to the land use process. It hopes to break free from the historic process and create a more economically welcoming environment. In response to the question, why should we do this? The answer is because large lot traded sector manufacturers have a multiplier affect. They spin off to the community and the region. Also, when all employment sectors are focused in a certain area and the sector takes a downturn, it affects all. It helps to diversify the economy, making it less vulnerable to trends. He suggested the most important reason is that it will allow your children and grandchildren to have meaningful work at home. This is being done for people who will eventually move into the job market. The DLCD did empower this project with a grant, a top notch consultant and involvement of all planners in the region. He suggested that the folks engaged in the process made this the most dynamic process he has seen. It took leadership and answers to hard questions to move forward. There is another benefit to an REOA. It provides a regionally consistent template for all jurisdictions to use when they want to adjust their boundaries. It may be the County setting the stage for a consistent process that is under control, confidently and professionally standing behind it. There has been a request for certainty in numbers and need. If they do nothing now, there will be none coming. The genuine critical issue at this juncture is to have this land available, protected from land division and other compromises that erode their use. The next process will include key factors on these sites. These communities need to say they are a player, but the stage needs to be set regionally first. The REOA is critical for these reasons. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 11 of 15 Pages This is not the exclusive economic development tool, but supplements the other initiatives going on. If they do nothing, they will remain where they are today. Peter Gutowsky expressed his appreciation to those who testified. He indicated that it is important to note that the DLCD has been cooperative, and they were able to provide leadership, funding and technical expertise that was imperative. It comes back to whether the Board feels the regional approach to large lot industrial is a good idea. In regard to trends, Quincy, a city located in central Washington, did a similar exercise. They realized they had an excess of cheap power. They made an effort to attract data centers, and since then they have attracted five of them. Central Oregon has the capability to be a top attraction. Jerry Johnson, the consultant, cites Business Oregon where it was said that traded sector employers have done four active recruitments. There is a lot of interest in this region by large employers. If these are not trends or specific instances of interest, he does not know what they are. Other experts have said this is true, but it is also said to be so by active economic development experts. The question is whether there is a factual basis. The Board needs to consider whether this a wise decision, and there has to be evidence in the record along with findings that are consistent with Oregon land use. There is a question as to whether Central Oregon needs to identify this type of land. The County can encourage cities to plan for this unmet need in Deschutes County. The County can set a cap on the number of sites that can be planned for and developable, at six sites in three different jurisdictions. There has been extensive testimony that inventory is needed. If there is a cap, this leaves the individual jurisdictions to go through their inventory. The Board can choose to make this decision based on the findings. It is a tall task and a burden. The evidence does not have to be perfect but needs to be made on the best available information. With the testimony today distributed via a video feed and the testimony of economic development experts, this is a lot to offer. There was testimony today asking for fourteen days to respond to comments and documentation. There was not a lot of substantive written testimony offered. The Board could close the record today and deliberations could start in a week. A second approach would to be to leave the written record open until the end of the week. It is meaningful to be able to be in a position to adopt this by the end of November. The legislature will be convening soon and this helps put the region in a good position at that point. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 12 of 15 Pages Since it was nearing noon, Chair Baney asked for a quick break to adjust afternoon meeting plans. Chair Baney feels that nothing has been submitted today that would require her to wait on a decision. Commissioner Unger asked if there is concern about allowing the rest of the week for responses, although this has taken 18 months already and there has been a lot of discussion on the issue. Commissioner DeBone wants to keep it simple. Jobs are needed and this can help with that. Chair Baney stated that there are two major points. The letter from 1,000 Friends is just three new pages. There has been a good job of condensing down a lot of questions to just a few that may never come to a meeting of the minds. She feels testimony today shores up the findings. She would like to close the hearing today and rather than trying to solve the underlying questions, let this be handled in the inventory process. Commissioner DeBone supports closing the record at this time. Ms. Craghead said there are a few typographical errors and that the wording `compelled' should instead be `encouraged' in regard to the cities' working on this. She suggested time be allowed to make these adjustments, and the findings document could be ready by Monday. The written record was closed, and deliberations began. Commissioner Unger sees this process as a model for the State. He envisions this moving forward to recognize the deficiencies in the region and encouraging regional support and cooperation. He supports the Ordinance and wants to move forward. Perhaps a legislative concept will come to bear eventually. They have tried to stay away from appeals, but this may not be possible. Commissioner DeBone stated that it does not seem to be that contentious to him since it encourages economic development and jobs. This will ultimately be addressed at the city level. Chair Baney thanked staff, DLCD and 1,000 Friends. She said this has been a lot of good work and the process has been very thorough. The findings are Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 13 of 15 Pages exhaustive, and the collective approach is important to note. The regional support lays the groundwork for the cities to do the detailed work. It is the right approach and makes sense. Ms. Craghead said that the first reading should not take place until the adjustments are made so they won't have to be read into the record. This document can be ready for the Monday, November 7 Board business meeting. 7. ADDITIONS TO THE AGENDA Before the Board were Deliberations (continued from October 24) and Consideration of First Reading of Ordinances Nos. 2011-001 and 2011-002, Amending Titles 18 and 23 to Modify Deschutes County Zoning Map and Comprehensive Plan Map for the Areas Eligible for the Destination Resort Overlay. Peter Gutowsky provided an overview of the item, which includes a few changes in regard to testimony. There is now an updated set of findings and the revised Ordinance. He explained that the changes relate to specifically to noticeable findings. Ms. Craghead said that the changes should be listed for the Commissioners. Ms. Gutowsky stated that he did not have a specific list but there were various small and a few large changes since the last deliberation date. Ms. Craghead said that the backup documentation and maps are complete and contain this information. DEBONE: Move first reading of Ordinance No. 2011-001, by title only. UNGER: Second. VOTE: DEBONE: Yes. UNGER: Yes. BANEY: Chair votes yes. Chair Baney conducted the first reading by title only. DEBONE: Move first reading of Ordinance No. 2011-002, by title only. UNGER: Second. VOTE: DEBONE: Yes. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 14 of 15 Pages UNGER: Yes. BANEY: Chair votes yes. Chair Baney conducted the first reading by title only. The second readings can be considered on or after November 21, 2011. Being no further items to come before the Board, the meeting adjourned at 12:10 p.m. DATED this Day of UuX/~V/ Deschutes County Board of Commissioners. Tammy ATTEST: Recording Secretary 2011 for the Anthony DeBone, Vice Chair aA41t (Alan Unger, Commissioner Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 15 of 15 Pages Deschutes County Board of Commissioners 1300 NW Wall St., Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org BUSINESS MEETING AGENDA DESCHUTES COUNTY BOARD OF COMMISSIONERS 10:00 A.M., MONDAY, OCTOBER 31, 2011 Commissioners' Hearing Room - Administration Building - 1300 NW Wall St., Bend PLEDGE OF ALLEGIANCE 2. CITIZEN INPUT This is the time provided for individuals wishing to address the Board, at the Board's discretion, regarding issues that are not already on the agenda. Citizens who wish to speak should sign up prior to the beginning of the meeting on the sign-up cards provided. Please use the microphone and also state your name and address at the time the Board calls on you to speak. PLEASE NOTE: Citizen input regarding matters that are or have been the subject of a public hearing will NOT be included in the record of that hearing. 3. CONSIDERATION of Second Reading by Title Only, and Adoption of Ordinance No. 2011-018, Making Minor Technical Changes to Title 17 of Code (Minimum Design Standards - Roads) - George Kolb, Road Department. Suggested Motions: Move second reading by title only of Ordinance No. 2011- 018, by title only. Move adoption of Ordinance No. 2011-018. 4. CONSIDERATION of Second Reading by Title Only, and Adoption of Ordinance No. 2011-026, Making Minor Technical Changes to Title 12 of Code (Utility Permits - Roads) - George Kolb, Road Department Suggested Motions: Move second reading by title only of Ordinance No. 2011- 026, by title only. Move adoption of Ordinance No. 2011-026. Board of Commissioners' Business Meeting Agenda Monday, October 31, 2011 Page 1 of 4 Pages 5. CONSIDERATION of First and Second Readings and Adoption, by Emergency, of Ordinance No. 2011-027, Adopting Amendments to the Comprehensive Plan - Terri Payne, Community Development Suggested Motions: Move first and second readings by title only, declaring an emergency; conduct readings. Move adoption of Ordinance No. 2011-027. 6. A PUBLIC HEARING (continued) and Consideration of First Reading, by Title Only, of Ordinance No. 2011-017, to Adopt a Regional Economic Opportunity Analysis and Regional Large-Lot Industrial Land Policy for Central Oregon - Peter Gutowsky, Community Development; and Representatives of the Department of State Lands Suggested Motions: Open hearing and take testimony. Consider first reading of Ordinance No. 2011-017, by title only. 7. ADDITIONS TO THE AGENDA PLEASE NOTE: At any time during this meeting, an executive session could be called to address issues relating to ORS 192.660(2) (e), real property negotiations; ORS 192.660(2) (h), litigation; ORS 192.660(2)(d), labor negotiations; or ORS 192.660(2) (b), personnel issues. 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. 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.) Monday, October 31 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) Board of Commissioners' Business Meeting Agenda Monday, October 31, 2011 Page 2 of 4 Pages Wednesday, November 2 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) Monday, November 7 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) 3:30 p.m. Public Safety Coordinating Council Meeting Wednesday, November 9 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) 4:00 p.m. Road Study Group Meeting Friday, November 11 Most County Offices will be closed to observe Veterans Day Monday, November 14 through Friday, November 18 All Day Association of Oregon Counties Annual Conference - Eugene Hilton & Conference Center Monday, November 21 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) 4:00 p.m. Regular Department Heads Meeting Thursday, November 24 and Friday, November 25 Most County Offices will be closed to observe Thanksgiving (Friday unpaid) Monday, November 28 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) Board of Commissioners' Business Meeting Agenda Monday, October 31, 2011 Page 3 of 4 Pages Wednesday, November 30 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) Monday, December 5 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) Wednesday, December 7 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) Thursday, December 8 8:00 a.m. Annual Meeting with Sunriver Service District representatives, at Sunriver Lodge Monday, December 12 All Day AOC Legislative Committee Meetings, Salem Wednesday, December 14 10:30 a.m. Oregon Youth Challenge Graduation - Deschutes County Fairgrounds 2:00 p.m. Administrative Work Session - could include executive session(s) Monday, December 19 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) Monday, December 26 Most County Offices will be closed to observe Christmas 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, October 31, 2011 Page 4 of 4 Pages Deschutes County Board of Commissioners 1300 NW Wall St., Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org ADDITION TO BUSINESS MEETING AGENDA DESCHUTES COUNTY BOARD OF COMMISSIONERS 10:00 A.M., MONDAY, OCTOBER 31, 2011 Commissioners' Hearing Room - Administration Building - 1300 NW Wall St., Bend DELIBERATIONS (continued from October 24) and Consideration of First Reading of Ordinances Nos. 2011-001 and 2011-002, Amending Titles 18 and 23 to Modify Deschutes County Zoning Map and Comprehensive Plan Map for the Areas Eligible for the Destination Resort Overlay - Peter Gutowsky, community Development Suggested motions: Deliberate; move first reading of Ordinance No. 2011-001 by title only; conduct first reading. Move first reading of Ordinance No. 2011-002 by title only; conduct first reading. The second reading will take place no sooner than two weeks from the first reading. REQUEST 0 2{ BOARD OF COMMISSIONERSMEETING TO SPEAK 4 1~ 31 l 11 Agenda of Interest: Date: , J7r,4 A j A Name o -D ` d S Address Q It.. Phone #s E-mail address Z In Favor ~Neutral[Undecided Opposed Submitting written documents as part of testimony? '"Yes F]No If so, please give a copy to the Recording Secretary for the record. o\JZ{ BOARD OF COMMISSIONERS' MEETING REQUEST TO SPEAK Agenda Item of Interest: Flft,Wq N 5. A . 4- ~ 1146 Date: / d 3/ Name Address Is 2 Phone #s 0 1 is- E-mail address 1,5 Ck ~In Favor Neutral/Undecided Opposed Submitting written documents as part of testimony? Yes No If so, please give a copy to the Recording Secretary for the record. `RTES ~ 0 BOARD OF COMMISSIONERS' MEETING i REQUEST TO SPEAK Agenda Item of Interest: &:~17 Name 01 V Lek., e ( tv / AoG f 16 Address 7`'/ , /'1--1,,, Phone #s Date: E-mail address AR aG4,,,P ( _ ~ 1 1=a,,4 S ai 6J tol 1 ❑ In Favor ❑ Neutral/Undecided ❑ Opposed Submitting written documents as part of testimony? ❑ Yes No If so, please give a copy to the Recording Secretary for the recor . o { BOARD OF COMMISSIONERS' MEETING REQUEST TO SPEAK Agenda Item of Interest: REO A Date: 101J/l " Name S(o-ff Address C;4-, 94 W /I/L' 3,1' JV PK 9-7"7_)`N Phone #s T Y I - yy'7 - J31d' E-mail address 5scdc% el, 0 C,*% ,,f p..w , c, In Favor ❑ Neutral/Undecided ❑ Opposed Submitting written documents as part of testimony? ❑ Yes dNo If so, please give a copy to the Recording Secretary for the record. o BOARD OF COMMISSIONERS' MEETING REQUEST TO SPEAK Agenda Item of Interest: Date: /o - 3' -f/ Name Pow- (.e. Address # 109 aw C t Gvo90 , SAO V..- t o z Phone #s Sz//- 369 - 3x36 E-mail address I-bq ay-(4- GXJCo (_n4- Cet" ® In Favor Neutral/Undecided F Opposed Submitting written documents as part of testimony? F1 Yes F-] No If so, please give a copy to the Recording Secretary for the record. o BOARD OF COMMISSIONERS' MEETING REOUEST TO SPEAK Agenda Item of Interest: ~G A - L,,. ~ Get Date: /0/ Name a S'A""A- Address 14 3` se"i 3 krj Phone #s' E-mail address ~a/6 "Ax , r- dA&, FZ,-'In Favor Neutral/Undecided F] Opposed Submitting written documents as part of testimony? ❑ Yes R'No If so, please give a copy to the Recording Secretary for the record. U~J-res e0<, o BOARD OF COMMISSIONERS' MEETING REQUEST TO SPEAK Agenda Item of Interest: ~Lo J~- Date: v 3 Name Address Phone #s E-mail address ❑ In Favor ❑ Neutral/Undecided ❑ Opposed Submitting written documents as part of testimony? ❑ Yes F-] No If so, please give a copy to the Recording Secretary for the record. o -A BOARD OF COMMISSIONERS' MEETING REQUEST TO SPEAK Agenda Item of Interest: b ~ 9c to" Date: 10131/1 Name P D 0 L-_ K E)- Address p -5 L, Phone #s E-mail address AoAkj, Qv,_ fK-e- r YS PA In Favor F] Neutral/Undecided F-1 Opposed Submitting written documents as part of testimony? n Yes F-] No If so, please give a copy to the Recording Secretary fort the record. 534 SW Third Avenue, Suite 300 • Portland, OR 97204 • (503) 497-1000 • fax (503) 223-0073 • www.friends.org 10100 Southern Oregon Office • PO Box 2442 • Grants Pass, OR 97528 • (541) 474-1 155 • fax (541) 474-9389 friends Willamette Valley Office • 220 East 11 to Avenue, Suite 5 • Eugene, OR 97401 • (541) 520-3763 • fax (503) 575-2416 of Oregon Central Oregon Office • 115 NW Oregon Ave #21 • Bend, OR 97701 • (541) 719-8221 • fax (866) 394-3089 October 31, 2011 Deschutes County Board of Commissioners 1300 NW Wall Street Bend, OR 97701 Re: Central Oregon Regional Economic Opportunity Analysis Dear Commissioners, I am writing today to provide comments on behalf of 1000 Friends of Oregon on the proposed adoption of the Regional Economic Opportunity Analysis. There are many points on which we agree, but a few on which we continue to disagree. Most importantly we agree that the regional cooperation on economic opportunity analysis is legal' and good policy. Careful review of the law in this area has convinced us that there is nothing legally standing in the way of accomplishing the larger goal of this effort: cooperative planning for better economic growth for the region. The deficiencies we point out do not come from an innate inability of such a project to be approved under existing law. This project has shown us that existing law is perfectly adequate to accommodate this type of project. In fact, it encourages it. The deficiencies come only from a failure to provide the actual data required to do the analysis required by Goal 9. Two critical data sets are needed. The first is a series of industry trend analyses looking specifically at the growth and location needs of our targeted industries. The second is an inventory of the existing local assets including existing lots served with appropriately scaled utilities, transportation, workforce, and effective outreach etc. Finally, an analysis is needed comparing the two data sets, and providing the best prediction about what we can do to be an attractive place for traded sector industries to locate. In other words, the deficiencies we point out can be easily remedied with some additional research into actual industry trends, and an inventory of local assets. Nothing in the law prevents this. ' OAR 660-009-0030: (1) Cities and counties are strongly encouraged to coordinate when implementing OAR 660-009-0015 to 660-009-0025. (2) Jurisdictions that coordinate under this rule may: (a) Conduct a single coordinated economic opportunities analysis; and (b) Designate lands among the coordinating jurisdictions in a mutually agreed proportion. } r However, if the document produced by Johnson Reid is adopted as an REOA, 1000 Friends will feel compelled to appeal. The document lacks substantial evidence, and the findings do not remedy that situation.2 We recommend that the County avoid this appeal by doing five things: 1. Adopt policies to establish the regional coordinating authority with the responsibility of doing an inventory of existing land and utilities. 2. Work with that authority to complete the inventory required by OAR 660-009-0015. 3. Complete the REOA by doing the market research on the targeted industries, their predicted growth patterns, and their locational needs. 4. Direct staff to draft a new document incorporating the new information to adopt as an REOA. This is a better route than an appeal because it costs less, and takes less time. The findings admit that no new land can be brought into UGBs until the regional inventory is done. Therefore, this proposal of doing the inventory first is not a delay. Choosing the appeal route is the delay. The taxpayer dollars and staff effort that will be spent on appeal should be spent on the inventory instead. Additionally, an appeal is risky for the county. LUBA may find that there are additional problems with the REOA that will be difficult to remedy, or the matter may go to the Court of Appeals or higher resulting in a lengthy legal dispute. Instead of risking this delay, we recommend that the County simply spend the money to do the inventory, and gather the data to draft a legally defensible REOA. In addition to costing less and taking less time, having additional information on our targeted industries may prove to be a valuable asset in preparing our region to attract them even more effectively than we do today. Further, we continue to believe that the County would be better served by a policy of bringing traded sector industries with stable living wage jobs than a policy of bringing industries that require large amounts of land. We have seen no evidence in the record that one equals the other. What we believe that this exercise has revealed is not that regional EOAs are not allowed under existing law. Clearly they are. What this exercise has revealed is that they are more complex than the 2 Please see commentary on the findings for the specific ways in which they do not meet legal standards. 1000 Central Oregon Office • 115 NW Oregon Ave #21 • Bend, OR 97701 friends (541) 719-8221 • fax (866) 394-3089 of Oregon 46h.~lllw Page 2 EOAs for cities. The effort required to do the inventory is not minor. Still, the work must be completed. Our comments on the specific provisions of the proposed findings and proposed policies are included as comments directly on the those draft documents attached. These are most easily viewed on a large computer screen. An electronic copy of this document has been submitted to staff to facilitate reading those comments. Please include these comments in the record, and let me know of any decision in this matter. Also, please let me know if there is any way we can be of any further assistance in helping the Commission understand the issues involved in this matter. Best Re P y Staff Attorney & Central Oregon Advocate iQQQ Central Oregon Office • 115 NW Oregon Ave #21 • Bend, OR 97701 friends (541) 719-8221 • fax (866) 394-3089 of O"g,. 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J N 3 O m o m W N tt mL~ V N'"E mmaci0 c N O ° a N c E ~T.) a t~ cc -ID :E: c-2 O CO N U N L Mmow p yO o _ yr ° c 3 a) 3 N oFr ~ 3 m m :ta a,cn 3 M Z) U ma c co a) a) 'O O h Q) M c a- '0 am; 10 Z'y a) as M N `oa ti c a 3 E'm o 2 0 ~toa oc U ~ cma 0 W ~ 0 N c -0 y 'ooh co ° L fZ a) a = °c) a= a)EN cam-)mm `pO0 Q~Q co c C a7 J o U U to a w t~ - u a o « G S ti A b O ti M a s o ~ E a a a a o ~'•Oa z a ~ o a v o e E Y ww o~i ~ a .t a o4, °J a n w a el a E e v el C, V w b C C ~ O 1.- O O °o' n ~ m N v c ~ e N a C E o e c w w c ° ? ti ° E .1 tr, L d o v a « a ° e e ~ u E i a c 3 a m a z -S 12 E ° e o -ij 13 O ° O O N a 'd ~ ~ o a c y d v e y N b«~ O h O~ u ti N W N c H kn d-J C N E E O U O C C C O U N c1 m a .Ul ° e°i 4 W O 0 0 O P~ c d G N 3 G a U\ O ¢~m~: o' q aao o `wn cc 11 O G Q C C S a O X w w w E a M y Z „ ~ •a ~ 0 i 0 d C a C i C• O ,OGi \ V C ~ ° C G~~ Y 1 d O E O w :C d O N< C V C 0 e u u a o` S cG, u ~ V M ti~ O B E q O G> O a N C G m a 'c °f o g a o° o a t3 w z 4! s~ ~ o W E~ o = o t m c °i v c o b N ti G C`o y. G ~,es~o e'v' E o0 0 o o E a u$ e `o a a n E a a 13 Q N l0 N N 'O 'N N d T 0 O Q Y ~ a° T O C r o m a co n n a Oro E d o O N O U y U C w W a a a m C m C c0 U O J O a) O O K U T U O j L L x J C C W co 06 O C ' Q C6 N J O L 'E U rnN C 3 a O < ~ o >.`n on d a- O D) N N U B g :E x 0 - a~ ia ~ °c W N (6 C 'O O N " V W :z -0 Q) C 0 'a E- 'F 0 0 r- = ~W M o CD E r- 7 N 0 H O m U a) Y it fn O C'i Q ATTACHMENT 7 OREGON Quality Information, Informed Choices EMPLOYMENT DEPARTMENT Labor Market Information State of Oregon • Employment Department • 875 Union NE, Salem, OR 97311 • www.Qualityinfo.org June 2011 Contact Information: Charlie Johnson (503) 947-1268 Charlie.B.Johnsongstate.or.us Forecasting a Long-Term Trend Historical Analysis of the Oregon Employment Department's 10-year Industry Employment Projections Every other year, the Oregon Employment Department undertakes the task of projecting industry and occupational employment 10 years into the future. These employment projections are developed with several goals in mind. They are not calculated to pinpoint precise employment levels 10 years down the road, but rather to point students, job seekers, career changers, counselors, planners, policy makers, business leaders, and others in the right direction when making career planning decisions. The Department is continuously working to improve its method; but, no matter how much technology is used or how many experts pool their skills in analyzing and finalizing the data, no one can predict the future with precision. While we develop projections for a precise time period, we are really looking at the long-term trend. In other words, we are attempting to predict where the economy will be in the long run - we are not trying to predict fluctuations in the business cycle. We do not know, for instance, if we will be at a high point or a low point of the business cycle at the end of the projections period. Again, we don't expect to hit the exact level of employment 10 years in the future, but to determine overall trends that can be used for career planning. In developing our 10-year employment projections, we use three primary sources of information: 1. Historical employment trends 2. The Oregon Economic and Revenue Forecast, produced by the Office of Economic Analysis 3. A network of economists and regional experts from across the state These sources incorporate both the historical and current context of Oregon's economic health and growth, and our network of economists consider recent announcements from industry officials regarding future growth trends. Our analysis attempts to identify any specific instances of business openings, closures, expansions, or contractions which are known or predicted; and we develop a general employment growth rate for each industry to capture employment change that occurs due to general economic activity such as increases or decreases in demand and relocation of firms and workers. Analysis of Past Projections Historical records show that in 1996 the Oregon Employment Department's published 10-year employment projection estimated that total nonfarm jobs in Oregon would equal 1,778,200 by the year 2006. In actuality there were 1,703,500 jobs in Oregon in 2006, a difference of 74,700 fewer jobs, or 4.4 percent less than predicted. The Department's published industry employment projections from the years 1998 and 2000 were 7.3 and 12.7 percent too high, respectively, compared to what actually occurred throughout the remainder of each 10-year period. However, the difference between the 2010 employment level that was predicted in 2000 and the current linear employment trend is much smaller primarily because Oregon's current employment level is significantly lower than the linear trend of the past 20 years. Graph 1 shows the linear employment growth trend forecasted by the Oregon Employment Department every other year since 1996, along with the actual employment level, and the actual linear employment trend. Every year that the actual employment level is below the linear employment trend, the linear trend comes down. Oregon's most recent employment forecast from the Office of Economic Analysis indicates that Oregon's employment level will take many years to recover from the most recent recession, implying that the linear employment level shown here by the dashed line will move lower over the next decade. It appears likely that most of the employment projections published since 1996 will have overestimated the actual employment growth of each 10-year period. History of the Oregon Employment Department's 10-Year Employment Projections 2,000,000 1,900,000 1,800,000 1,700,000 N 121,600,000 E 1,500,000 O z c01,400,000 -1996 - 2006 (2 H 1,300,000 1,200,000 1,100,000 1,000,000 1990 1994 1998 2002 2006 2010 2014 2018 Source: Oregon Employment Department Graph 1 Actual Employment 1%) 1998 - - 2008 (18%) - 2000 - 2010 (12%) - 2002 - 2o1z (1a%) - 2ooa - 2o1a (1151/6) zoos - 2o1s (1141/6) -Zoos - 2o1s (s%> - - -Linear (Actual Employment) 2 _ Ii Oregon Live. elan Evon,,utong CrGga o Data centers storm into Hillsboro, bringing big investment (but not many jobs) Published: Saturday, October 22, 2011, 6:31 AM Mike Rogoway, The Oregonian By Data centers, already proliferating across central and eastern Oregon, have suddenly charged across the Cascades and into the Portland metro area. Three separate companies announced projects in Hillsboro this past week. They're coming for "enterprise zone" tax exemptions on their pricey equipment, for relatively cheap electricity, for Oregon's mild climate and for a reliable local power and communications grid that's a legacy of the Washington County chip industry. The new facilities' backers will spend hundreds of millions of dollars in the coming months to build and outfit the centers. They won't hire a lot of workers, though. Computers do the heavy lifting inside data centers, which generally require no more than a few dozen people to monitor the systems. State and city economic development officials say they haven't actively courted data centers for Hillsboro. Hillsbore's ae data centers And city leaders acknowledge data centers weren't what they had in mind when they Adobe Systems broadened enterprise zones in the city last year to offer property tax exemptions on more Project size: idle property. (All three of the projects are in enterprise zones; two are in areas included 75,000 square feet in last year's expansion.) on 11 acres Energy use: Yet they're encouraged by any development on properties that have sat idle despite years, Undisclosed " ' Jobs: don t at a time when very few other industries are growing. expect there will be a high number of Adobe jobs created Image courtesy Fortune Data Centers Fortune Data Centers plans to open a 250,000-square-foot data center in Etec Systems' former Hillsboro manufacturing center. "We're certainly not going to turn them down," said Hillsboro economic development locally." director John Southgate. "It's great to have their investment." Timeline: Construction starts next year. Data centers are the brains behind the Internet, storing huge volumes of corporate and Digital Realty personal information and increasingly doing sophisticated data processing, too. Trust (NetApp) Project size: It's a rapidly growing industry, driven by easy network access and by mobile computing. 55,000 square feet Smartphones are in constant communication with data centers for access to information on 5.1 acres and to tap computing power that pocket-sized devices can't handle. Energy use: 4.5 megawatts Jobs: Undisclosed On Tuesday, Intel said its sales to data centers have climbed 15 percent in the past year, Timeline: First contributing to the chipmaker's unexpectedly strong quarterly results. phase scheduled for completion in August 2012 Oregon's relatively low power costs, its cool air (data center computers run hot, and the Fortune Data facilities must be chilled to keep from overheating) and Oregon's tax breaks make the Centers state an attractive home for data centers. Project size: 240,000 square Google led the march into Oregon when it built its first big corporate center at The Port of feet on 15 acres The Dalles five years ago. Facebook opened its first corporate data center in Energy use: 7.8 megawatts Prineville last spring, and is already expanding. Amazon just turned on a long-delayed facility near Boardman. Jobs: 20-40 Timeline: First phase will open by Other big companies are contemplating data centers in the eastern half of the state, too, summer 2012 rowth limit future iti a i l t k t i d . g commun es m y n o rura power ne wor s but stra ne Hillsboro has no such problems, with a robust grid built for energy-intensive technology manufacturing. Last Monday, a company called Digital Realty Trust said it will build a data center on 5.1 acres in Hillsboro for data management company NetApp. The Portland Business Journal reported Friday that Adobe Systems which provides much of its software to clients over the Internet also plans a Hillsboro data center. Construction starts next year on a 75,000-square-foot facility on 11 acres. Also Friday, Fortune Data Centers, a Silicon Valley company that operates wholesale data centers, said it will turn the old Etec Systems building in Hillsboro into a 240,000 square-foot data center. Hillsboro valued the project at $80 million initially. When it opens next year, Fortune will employ 20 to 40 people at its new data center in an old chip factory built to hold 250 workers. Fortune's clients will add additional jobs to monitor equipment within the building, and it has the potential to add a second building on the site. But it still won't approach the number that might have worked there had a chip manufacturer reopened it. The trouble is, chip manufacturers weren't lining up. Much of that industry has moved abroad; Oregon electronics manufacturing employment shed more than 14,000 jobs a quarter of its total in the past decade. Fortune was ready to go, by comparison, and has 100 construction workers already on site working to adapt the old factory. "What's the alternative? Right now, there isn't one," said Matt Mochary, head of Fortune Development Group, Fortune's data center development arm, which spent a year scouting properties for its second big data center (its first is in San Jose. "We looked throughout the Northwest because the power is cheap and the air is cool and dry," Mochary said. The company settled on Oregon because its tax exemptions were clearly defined and readily available, he said. Washington, by comparison, allowed a sales tax exemption on data center projects to expire earlier this year. Big corporations such as Google and Facebook choose rural areas to maximize their cost savings by selecting areas with cheap land and cheap power. But Mochary said that wholesale data centers prefer to be closer to cities, so their clients have easier access to the facility. And, he said, the cost difference between rural and suburban areas isn't that great. Data centers aren't brand new in the metro area. Intel opened a 70,000 square foot facility in Hillsboro five years ago, and many large organizations and small Internet companies such as EasyStreet Online have their own facilities. Still, the announcement of three data centers from out-of-state companies in one month illustrates how fast the industry is growing. Tom Hughes, Metro Council president and former mayor of Hillsboro, notes that even with property tax exemptions, energy-intensive data centers generate high franchise fees from their electricity consumption. "All of the sudden they do become something of a revenue source," he said. The new data centers are all in industrial zones pre-approved for tax breaks. Hillsboro couldn't block the projects even if it wanted to, according to Southgate, the economic development manager. Still, he said, Hillsboro will monitor the situation to ensure they don't consumer too much industrial land and leave the city without enough land for job growth. Potentially, he said, the city could raise the jobs threshold for future projects to qualify for enterprise zone exemptions. "If we find we're getting a lot more serious interest and a lot of it's likely to be committed to this kind of use, I think it'd be a fair policy conversation we would have," Southgate said. "Three does not a crisis make." Mike Rogoway; twitter: @rogoway; phone: 503-294-7699 © 2011 OregonLive.com. All rights reserved. 9MO 1910 C 20 October 31, 2011 CITY OF REDMOND RE: Deschutes County Post-Acknowledgement Plan Amendment 004-001 To: Deschutes County Board of County Commissioners 716 SW Evergreen Avenue Redmond, OR 97756 (541) 923-7721 Fax: (541) 548-0706 www.ci.redmond.or.us Please accept this letter as the Redmond City Council's support for the County's proposal to amend its Comprehensive Plan by adopting the Regional Economic Opportunity Analysis (REOA) and large-lot industrial policies for Central Oregon. For the past year, staff from the City of Redmond has been participating on the Regional Advisory Committee for this effort. This effort to bring large lot industrial sites into the regional land supply inventory is just one tool in the toolkit for our local economic development efforts, and is one that we feel would benefit both the region and the state. There has been some recent misleading information that this REOA is meant to produce a regional economic development "strategy" and that in its current form it is too focused on large industrial lot land supply. However any "Economic Opportunity Analysis", local or regional, is an analysis of land supply and need and is not meant to be an economic development strategy. The economic opportunity analysis is a land-supply tool to help implement the economic development strategy. Our understanding from the beginning of this Central Oregon REOA project is that it was simply an analysis of need and supply for large industrial lots. As you know, most communities in Central Oregon are engaged in developing and implementing economic development strategies. In Redmond, the Redmond Development Commission, a city- appointed commission has been working on an Redmond Economic Development strategy for the past two years. It is in a final draft form. This economic development strategy is multi-faceted, addressing the needs of start-up businesses and expanding businesses, both small and large. One of the draft actions of this plan is to support the Central Oregon REOA. Redmond currently employs many programs to help support small business development and expansion. However one of the tools that is missing from our toolkit is the availability of large industrial lots for potential larger users that could be considering relocation to our region. This Central Oregon REOA will provide that tool for Central Oregon and we appreciate Deschutes County's leadership and efforts in this regard. # ' FA M - Economic development and job creation is crucial for our region. And Central Oregon is in the unique position of being able to respond to both the regional and state-wide need for large industrial lots through this effort. For Oregon to be competitive on a regional, national and global scale for large employment projects, it needs a reliable supply of large lot high value employment sites to attract investment and create jobs for Oregonians. Central Oregon can respond to this need due to its large expanses of publicly held land that is not currently productive, is contained either within urban growth boundaries or contiguous to existing urban growth boundaries and can be reasonably be served by infrastructure. Additionally, Central Oregon has a proven history of successful regional cooperation, and the REOA offers an effective way to identify suitable large lot industrial sites regionally. At its August 9, 2011 regularly scheduled City Council meeting, the Redmond City Council took official action to support this effort. Yours sincerely, Heather Richards, Community Development Director October 31, 2011 Deschutes County Commission 1300 NW Wall Street Bend, OR 97701 Subject: Regional Economic Opportunities Analysis Dear Commissioners, Please accept this letter in support of adoption of the 710 NW WALL STREET Regional Economic Opportunities Analysis (REOA). The REOA work PO Box 431 has been a case study in the benefits of regional cooperation and BEND, OR 97701 planning. The City of Bendapplauds the efforts of the team to improve [541] 388-5505 TEL Y [541] 385-6676 FAX the current system of calculating employment based land needs as it is WWW.CI.BEND.OR.US obsolete in the face of the new economy. First, the current system requires city-specific calculations, limiting central Oregon's ability to be a truly competitive region for industrial JEFF EAGER recruitment. By recognizing and planning for the region's employment Mayor land needs, the region can provide a critical mass of lands that will be JODIE BARRAM protected for such uses. This increases the region's competitiveness mayor Pro Tem as there will be land for new businesses as well as land for existing businesses that need to expand. TOM GREENE City Councilor Further, the current prescriptive system of estimating employment land KATHIEECKMAN needs based on local population growth and forecasts does not City Councilor adequately account for exogenous demand. The REOA is an innovation to our land use system that will assure a short term supply City JIM C Councilor of serviceable and adaptable large lot employment lands by accommodating land needs not contemplated through the prescriptive MARK CAPELL method. Yes, we have a regional economy that has grown from within, city councilor yet new players in the local economy have and will continue to provide SCOTT RAMSAY employment opportunities within central Oregon. The REOA accounts City Councilor for such relocations. The focus on short term availability of employment based lands with ERIC KING the replenishment system is one of the key features of the REOA. As City Manager Jerry Johnson, the economic consultant for this project notes, "From an economic perspective, short-term availability of a range of appropriate sites is what is critical." However, the longer 20-year planning period as mandated by state law is also accommodated through the replenishment mechanism. This is a very real improvement to the Goal 9 rule and will aid regions throughout Oregon in establishing competitive supplies of employment lands desired in our increasingly global economy. As central Oregon has repeatedly experienced, without the necessary supply of large lot industrial lands, site selectors will continue to focus on other areas to locate business. The City of Bend fully supports the REOA and the changes to the state's land use planning system that will result. This plan was built through the cooperation of the counties, cities, regional entities, private business, 1000 Friends, DLCD, DSL, EDCO and others. It is a document and concept that has been fully vetted by the best land use and economic development minds in our area and the state. It is an idea whose time has come for central Oregon and the state as a whole. The City of Bend fully supports the REOA. Please vote to approve this regionally developed, innovation to Statewide Planning Goal 9. Sincerely, Z. Eric King City Manager 2 regon John A. Kitzhaber, MD, Governor October 31, 2011 Department of State Lands 775 Summer Street NE, Suite 100 Salem, OR 97301-1279 (503) 986-5200 FAX (503) 378-4844 www.oregonstatelands.us State Land Board Deschutes County adoption of the Central Oregon REOA and Plan and Code Updates John A. Kitzhaber, MD Governor The Oregon Department of State Lands (DSL), as a Central Oregon property owner and active participant in the Central Oregon Regional Economic Kate Brown Opportunities Analysis (REOA) for Large Lot Industrial sites, supports Secretary of State Deschutes County's efforts to adopt the REOA and corresponding Code and Plan amendments. Through the REOA process and now through proposed Ted Wheeler adoption of the REOA and Plan/Code amendments, Deschutes County has State Treasurer emerged a leader in new, innovative regional economic planning efforts in Central Oregon and statewide. Oregon's planning process and rules to avail new lands for employment opportunities and economic development was intentionally modified and expanded to encourage assessment of employment land needs at a regional level. Oregon Administrative Rule (OAR) 660-009-0015 (1) now reads: "Cities and counties are strongly encouraged to analyze trends and establish employment projections in a geographic area larger than the planning area and to determine the percentage of employment growth reasonably expected to be captured for the planning area based on the assessment of community economic development potential pursuant to section (4) of this rule." It is well established that Central Oregon is a very desirable area to vacation, to live and to establish and grow a business. The problem that the REOA aspires to resolve is to break free from restrictive historic trends (and outdated land needs assessment formulae) to employ new tools to create a dynamic and competitive large lot industrial land supply portfolio and inventory that appeals to industrial site selectors. Empowered by a DLCD technical assistance grant, Deschutes County hired a top-notch economic development consultant team who, along with regional planners, economic development specialists and state agency representatives, identified and articulated a strategy and process to create a regional large lot industrial land supply that enables Central Oregon to be a competitive region for industrial recruitment. This collaborative REOA process directs the 3-county region to coordinate as a single entity promoting those candidate large lot industrial employment sites that best serve the region as a whole to create family wage jobs, regional economic diversification and to put Central Oregon on the map for regional, national and international industrial recruitment. Currently Central Oregon has a shortage of large vacant industrial sites and is rarely a serious competitor for industrial recruitment due to this scarcity. Regional adoption and implementation of the REOA is identified by established experts as the roadmap to resolve this land supply shortage and improve the regional economy and employment opportunities. The REOA has successfully employed the revised OAR procedure as envisioned and intended by the proponents who are aware that the historic land need assessment tools from the past century no longer optimally apply in today's global economy. Industries cannot wait for uncertain UGB expansions, annexations, and infrastructure plan updates and construction schedules. Successful industries are real-time, nimble and responsive to changes in the competitive business and manufacturing environment. Successful industrial recruitment regions offer a diverse, versatile and competitive large lot industrial site inventory. Adoption and implementation of the REOA and corresponding Plan and Code changes sends a message that Central Oregon jurisdictions are ready for business. Doug Parker, DSL Asset Planner. Peter Gutowsky From: La Pine Industrial Group <lapineig@uci.net> Sent: Thursday, October 27, 2011 4:29 PM To: Peter Gutowsky Subject: Re: La Pine Prospect Peter: I just returned from a three-day business trip to northern Idaho and did not have a chance to provide the information about the La Pine Industrial Park before I left. I don't know if you can still use it but here it is: We have had several companies look at our certified 77-acre site in La Pine but the most active prospect was the Ferguson Corporation out of Virginia. They were looking for a site for a Northwest distribution center for their product line of bathroom and other plumbing fixtures. They wanted a site that would accommodate an initial 500,000 sq. ft. of buildings and would be expandable to 1,000,000 sq. ft. Initial employment was to be 200 workers, expanding to 400 in the second phase. There was also a requirement for a rail spur with extensive on- site trackage to move products in and out. They were not sure our site was large enough so Midstate Electric Cooperative developed a site plan to show that it could meet their specifications. Unfortunately, the company decided to locate in Richland, Washington. Richland offered the company a larger site for $7,000 per acre fully developed. We could not match that. By the way, the company was a State OECDD prospect and they brought the Ferguson site selectors on the tour of Central Oregon properties. Lee Smith General Manager 541-536-9042 Office Phone 541-410-0886 Cell Phone