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2013-938-Ordinance No. 2013-003 Recorded 5/8/2013REVIEWED ;ZE LEGAL COUNSEL COUNTY OFFICIAL NANCYUBLANKENSHIP, COUNTY CLERKDS COMMISSIONERS' JOURNAL 2 38 05/08/013 11; N A AM BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Ordinance Amending Deschutes County Code 19.04.040 and 19.106.060(D), to Change the Ratio of * ORDINANCE NO. 2013-003 Overnight to Residential Units in Destination Resorts. WHEREAS, Weston Investment Co. LLC applied for a text amendment to Deschutes County Code ("DCC") Title 19, Section 19.04.040, Definitions and Section 19.106.060(D), Standards for Destination Resorts, to change the ratio of overnight to residential units in destination resorts; and WHEREAS, after notice was given in accordance with applicable law, a public hearing was held on February 14, 2013 before the Deschutes County Planning Commission and, on February 28, 2013 the Planning Commission recommended approval of the text amendment; and WHEREAS, the Board of County Commissioners considered this matter after a duly noticed public hearing on April 15, 2013 and concluded that the proposed changes are consistent with the County's Comprehensive Plan and that the public will benefit from changes to the land use regulations; now therefore, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ORDAINS as follows: Section 1. AMENDMENT. DCC 19.04.040, Definitions, is amended to read as described in Exhibit "A", attached and incorporated by reference herein, with new language underlined and deleted language set forth in strikethr-oug . Section 2. AMENDMENT. DCC Section 19.106.060(D), Standards for Destination Resorts, is amended to read as described in Exhibit "B", attached and incorporated by reference herein, with new language underlined and deleted language set forth in stfikethfou . Section 3. FINDINGS. The Board adopts as its findings in support of this decision, Exhibit "C", attached and incorporated by reference herein. PAGE 1 OF 2 - ORDINANCE NO. 2013-003 Section 4. EMERGENCY. This ordinance being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this ordinance takes effect on its passage. Dated this l9 of 2013 _j J4 BOARD OF COUNTY COMMISSIONERS T OF DESCHUTES COUNTY, OREGON 9-&, ALAN UNGER, Chair _ f TAMMY B , Vice Chair ATTEST: Recording Secretary TONY DEBONE, Commissioner Date of 15' Reading: day of , 2013. Date of 2"d Reading: i.-day of , 2013. Record of Adoption Vote: Commissioner Yes No Abstained Excused Alan Unger - T Tammy Baney v - - Tony DeBone - - Effective date: day of , 2013. PAGE 2 OF 2 - ORDINANCE NO. 2013-003 Denotes text not amended by Ordinance 2013-003 19.04.040. Definitions. "Destination resort" means a self-contained development that provides for visitor-oriented accommodations and developed recreational facilities in a setting with high natural amenities. To qualify as a "large destination resort" under Goal 8, a proposed development must meet the following standards: A. The resort is located on a site of 160 or more acres; B. At least 50 percent of the site is dedicated to permanent open space, excluding yards, streets, and parking areas; C. A least $7 million (in 1993 dollars) shall be spent on improvements for on-site developed recreational facilities and visitor-oriented accommodations exclusive of costs for land, sewer and water facilities and roads. Not less than one-third of this amount shall be spent on developed recreational facilities, and; D. Visitor-oriented accommodations are provided, including meeting rooms, restaurants with seating for 100 persons and 150 separate rentable units for overnight lodgings. Accommodations available for residential use shall not exceed two and one-half such units for each unit of overnight lodging. However, the Fentable units overnight lodging units may be phased in as follows: 1. A total of 150 units of overnight lodging shall be provided as follows: a. At least 75 units of overnight lodging, not including any individually owned homes, lots or units shall be constructed or guaranteed through surety bonding or equivalent financial assurance prior to the closure of sale of individual lots or units, and; b. The remainder of the overnight-lodging units shall be provided as individually owned lots or units subject to deed restrictions that limit their use to overnight lodging units. The deed restrictions may be rescinded when the resort has constructed 150 units of permanent overnight lodging as required by DCC 19.04.040. 2. The number of units approved for residential sale within the resort shall be not more than two and one-half units for each unit of permanent overnight lodging 19.04.040(D)(-I".constructed or financially assured, and; 3. The development approval shall provide for the construction of other required overnight-lodging units within five years of the initial lot sales. E. Commercial uses allowed are limited to those types and levels necessary to meet the needs of visitors to the development. Industrial uses of any kind are not permitted. (Ord. 2013-013 §1; Ord. 99-001 §§24, 1999; Ord. 97-038 §1, 1997; Ord. 97-017 §1, 1996; Ord. 96-071 §113, 1996; Ord. 95-045 §15, 1995; Ord. 94-027 §§1 & 2, 1994; Ord. 92-043 §1, 1992; Ord. 91-029 §§1, 8, 9 and 10, 1991; Ord. 91-001 §1, 1991; Ord. 90-038 §1, 1990; Ord. 90-007 §1, 1990; Ord. 88-042 §3, 1988; Ord. 86-058 §1, 1986; Ord. 86-055 §1, 1986; Ord. 86-033 §1, 1983; Ord. 86-032 §1, 1986; Ord. 86-017 §1 Exhibit a, 1986; Ord. 830945 § 1, 1983; Ord. 83-041 §2, 1983; Ord. 80-217 § 1 Exhibit A, 1980) Page 1 of 1 - EXHIBIT A TO ORDINANCE 2013-003 19.106.060. Standards for Destination Resorts. The following standards shall govern consideration of destination resorts: A. The destination resort shall, in the first phase, provide for and include as part of the CMP the following minimum requirements: 1. At least 150 separate rentable units for visitor-oriented lodging; 2. Visitor-oriented eating establishments for at least 100 persons and meeting rooms which provide eating for at least 100 persons; 3. At least $7 million shall be spent on improvements for on-site developed recreational facilities and visitor-oriented accommodations exclusive of costs for land, sewer and water facilities and roads. Not less than one-third of this amount shall be spent on developed recreational facilities. The spending minimums provided for are stated in 1993 dollars; and 4. The facilities and accommodations required by this DCC 19.106.060 must be physically provided or financially assured pursuant to DCC 19.106.110 prior to closure of sales, rental or lease of any residential dwellings or lots. B. All destination resorts shall have a minimum of 160 contiguous acres of land. Acreage split by public roads or rivers or streams shall count toward the acreage limit, provided that the CMP demonstrates that the isolated acreage will be operated or managed in a manner that will be integral to the remainder of the resort. C. All destination resorts shall have direct access onto a state, county, or city arterial or collector roadway, as designated by the Bend Urban Area General Plan. D. A destination resort shall, cumulatively and for each phase, meet the following minimum requirements: 1. The resort shall have a minimum of 50 percent of the total acreage of the development dedicated to permanent open space, excluding yards, streets and parking areas. Portions of individual residential lots and landscape area requirements for developed recreational facilities, visitor-oriented accommodations or multi-family or commercial uses established by DCC 19.76.080 shall not be considered open space; and 2. Individually-owned residential units shall not exceed two and one-half such units for each unit of visitor-oriented overnight lodging constructed or financially assured within _the_resort. Individually- owned units shall be considered visitor-oriented lodging if they are available for overnight rental use by the general public for at least 45 weeks per calendar year through one or more central reservation and check-in service(s). E. Phasing. A destination resort authorized pursuant to DCC 19.106.060 may be developed in phases. If a proposed resort is to be developed in phases, each phase shall be as described in the CMP. Each individual phase shall meet the following requirements: 1. Each phase, together with previously completed phases, if any, shall be capable of operating in a manner consistent with the intent and purpose of DCC 19.106 and Goal 8; 2. The first phase and each subsequent phase of the destination resort shall cumulatively meet the minimum requirements of DCC 19.106.060 and DCC 19.76.070, and; 3. Each phase may include two or more distinct non-contiguous areas within the destination resort. F. Dimensional standards: 1. The minimum lot area, width, lot coverage, frontage and yard requirements and building heights otherwise applying to structures in underlying zones and the provisions of DCC 19.88.210 relating to solar access shall not apply within a destination resort. These standards shall be determined by the Planning Director or Hearings Body at the time of the CMP. In determining these standards, the Planning Director or Hearings Body shall find that the minimum specified in the CMP are adequate to satisfy the intent of the Bend Urban Area General Plan relating to solar access, fire protection, vehicle access, and to protect resources identified by LCDC Goal S which are identified in the Bend Urban Area General Plan. At a minimum, a 100 foot setback shall be maintained from all streams and rivers. No lot for a single-family residence shall exceed an overall project average of 22,000 square feet in size. 2. Exterior setbacks and buffers. Page 1 of 2 - EXHIBIT B TO ORDINANCE 2013-003 a. A destination resort shall provide for the establishment and maintenance of buffers between the resort and adjacent land uses, including natural vegetation and where appropriate, fences, berms, landscaped areas, and other similar types of buffers. b. Exterior setbacks shall also be provided to ensure that improvements and activities are located to minimize adverse effects of the resort on uses on surrounding lands. G. Floodplain requirements. The Flood Plain Zone (FP) requirements of DCC 19.72 shall apply to all developed portions of a destination resort in an FP Zone in addition to any applicable criteria of DCC 19.106. Except for flood plain areas which have been granted an exception to LCDC goals 3 and 4, Flood Plain Zones shall not be considered part of a destination resort when determining compliance with the following standards; 1. One hundred sixty acre minimum site; 2. Open space requirements. A conservation easement as described in DCC Title 19 shall be conveyed to the County for all areas within a flood plain which are part of a destination resort. H. Excavation, grading and fill and removal within the bed and banks of a stream or river or in a wetland shall be a separate conditional use subject to all pertinent requirements of DCC Title 19. I. Time share units not included in the overnight lodging calculations shall be subject to approval under the conditional use criteria set forth in DCC 19.100. Time share units identified as part of the destination resort's overnight lodging units shall not be subject to the time share conditional use criteria of DCC 19.100. (Ord. 2013-003 § 1 Ord. 99-001 §1, 1999) Page 2 of 2 - EXHIBIT B TO ORDINANCE 2013-003 Findings for Ordinance No. 2013-003 Change to the Ratio of Overnight to Residential Units in Destination Resorts in the Bend Urban Area 1. Introduction The Applicant, Weston Investment Company, LLC proposed minor amendments to the destination resort chapter of Title 19 of the Deschutes County Code ("DCC"). Chapter 19.106 governs resorts within the Urban Area Reserve ("UAR"). The applicant owns property within the Tetherow resort, which is the only destination resort currently entitled within the Urban Area Reserve. The amendments to DCC 19.106 change the ratio of residential units to overnight lodging units within a resort from 2:1 to 2-1/2:1, as allowed by the associated provisions of the Oregon Revised Statutes and Statewide Planning Goal 8. Overnight lodging units, as defined by DCC 19.04, include "permanent, separately rentable accommodations that are not available for residential use," or individually-owned residential units if such units are available for rental by the general public for 45 weeks per calendar year through a central reservation and check-in service. ORS 197.445(4)(b)(E) governs the ratio between residential units for sale and overnight lodging units for rental in eastern Oregon as follows: "The number of units approved for residential sale may not be more than 2-1/2 units for each unit of permanent overnight lodging provided under this paragraph." Statewide Planning Goal 8 also contains this ratio (OAR 660-015-0000(8)). DCC 19.106 currently contains the ratio adopted with the original resort statutes (2:1). Although the Legislature subsequently changed the ratio to 2-1/2:1, Deschutes County has not yet adopted the new ratio. In order to update the mix of uses authorized within the Tetherow destination resort, the Applicant proposes minor amendments to DCC 19.106 to adopt the 2-1/2 to 1 ratio set forth in ORS 197.445 and Goal 8. The Deschutes County Planning Commission held a hearing on TA-12-3 on February 14, 2013, and held the record open for a period of seven days. The Planning Commission held another hearing on February 28, 2013 and at that hearing voted 4 to 3 in favor of forwarding TA-12-3 to the Deschutes County Board of Commissioners (the "Board") with a recommendation of approval. The Board held a hearing on April 15, 2013, received oral testimony from the applicant and Paul Dewey on behalf of Central Oregon Landwatch. The Board voted 3-0 in favor of approving TA-12-3 pursuant to an emergency clause. The Board adopted the amendments pursuant to the emergency clause for two primary reasons. First, the applicant cannot file CMP and FMP amendments until the ordinance is effective. The Board recognizes that the applicant. is eager to modify the CMP and amend the existing improvement agreement to establish long-term certainty with respect to the total number of overnight units Page 1 of 13 - EXHIBIT C TO ORDINANCE 2013-003 required and the associated bonding obligations. The Board believes that by providing long-term certainty with respect to the number of overnight units at Tetherow is in the best interest of the County, and that it is best to resolve that issue as soon as reasonably practical. Second, the Board recognizes that any amendment to the CMP or FMP is subject to appeal. Were the amendments to be effective in 90 days, any appeal of the CMP or FMP could result in a loss of the next building season while the applications are on appeal. The Board concludes that construction of overnight units sooner rather than later is in the best interest of the County and that a delay of 90 days could negatively impact the ability to construct overnight units during the next building season. Such a delay could then delay the potential for more influx of tourism dollars to the County. For these reasons, the Board has elected to adopt Ordinance 2013-003 by emergency. 2. Text Amendments to DCC 19.04 and 19.106 The amendments to DCC 19.04 and DCC 19.106 are set forth below. Additions are marked in underline text, and deletions are marked in str4kethfexgh text. A. DCC 19.04.040, Definitions DCC 19.04.040 contains several definitions relating to the siting of destination resorts under Chapter DCC 19.106. To adopt the new ratio set forth in state law, the County has adopted the definition of "destination resort" as follows: "Destination resort" means a self-contained development that provides for visitor- oriented accommodations and developed recreational facilities in a setting with high natural amenities. To qualify as a "large destination resort" under Goal 8, a proposed development must meet the following standards: A. The resort is located on a site of 160 or more acres; B. At least 50 percent of the site is dedicated to permanent open space, excluding yards, streets, and parking areas; C. A least $7 million (in 1993 dollars) shall be spent on improvements for on-site developed recreational facilities and visitor-oriented accommodations exclusive of costs for land, sewer and water facilities and roads. Not less than one-third of this amount shall be spent on developed recreational facilities, and; D. Visitor-oriented accommodations are provided, including meeting rooms, restaurants with seating for 100 persons and 150 separate rentable units for overnight lodgings. Accommodations available for residential use shall not exceed two and one-half such units for each unit of overnight lodging. However, the ruts overnight lodging units may be phased in as follows: Page 2 of 13 - EXHIBIT C TO ORDINANCE 2013-003 1. A total of 150 units of overnight lodging shall be provided as follows: a. At least 75 units of overnight lodging, not including any individually owned homes, lots or units-shall be constructed or guaranteed through surety bonding or equivalent financial assurance prior to the closure of sale of individual lots or units, and; b. The remainder of the overnight-lodging units shall be provided as individually owned lots or units subject to deed restrictions that limit their use to overnight lodging units. The deed restrictions may be rescinded when the resort has constructed 150 units of permanent overnight lodging as required by DCC 19.04.040. 2. The number of units approved for residential sale within the resort shall be not more than two and one-half units for each unit of permanent overnight lodging pr-evided Uft DCC 19.04 040(D)( v„) and; , constructed or financially assure_ 3. The development approval shall provide for the construction of other required overnight-lodging units within five years of the initial lot sales. E. Commercial uses allowed are limited to those types and levels necessary to meet the needs of visitors to the development. Industrial uses of any kind are not permitted. S. DCC 19.106.060 Standards for Destination Resorts DCC 19.106.060 contains standards governing the construction and operation of resorts. The County has amended DCC 19.106.060(D) to adopt the 2-1/2:1 ratio set forth in state law, as shown below. DCC 19.106.060(D), Minimum Resort Requirements D. A destination resort shall, cumulatively and for each phase, meet the following minimum requirements: 1. The resort shall have a minimum of 50 percent of the total acreage of the development dedicated to permanent open space, excluding yards, streets and parking areas. Portions of individual residential lots and landscape area requirements for developed recreational facilities, visitor-oriented accommodations or multi-family or commercial uses established by DCC 19.76.080 shall not be considered open space; and 2. Individually-owned residential units shall not exceed two and one-half such units for each unit of visitor-oriented overnight lodging constructed or financially-assured within the resort. Individually-owned units shall be considered visitor-oriented lodging if they are available for overnight rental use by the general public for at least 45 weeks per calendar year through one or more central reservation and check-in service(s). 3. Compliance with DCC 19.116.110, Amendments to Title 19 Page 3 of 13 - EXHIBIT C TO ORDINANCE 2013-003 19.116.010. Amendments DCC Title 19 may be amended by changing the boundaries of zones or by changing any other provisions thereof subject to the provisions of DCC 19.116 A. Text changes and legislative map changes may be proposed by the Board of County Commissioners on its own motion, by the motion of the Planning Commission, upon payment of a fee, by the application of a member of the public. Such changes shall be made pursuant to DCC 22.12 and ORS 215.110 and 215.060. B. Any proposed quasi-judicial map amendment or change shall be handled in accordance with the applicable provisions ofDCC Title 22. That applicant submitted an application for the code amendments pursuant to DCC 19.116.1010(A), and the County processed the amendment consistent with DCC Title 22, as required by subsection (B). DCC 22.12.010 and .040 require a public hearing before the Planning Commission and then the Board of County Commissioners for all legislative changes. DCC 22.12.020 sets forth the basic notice requirements for the hearings. As discussed above, both the Planning Commission and the Board held the required hearings. 4. Compliance with County Comprehensive Plan and BAGP Both the Deschutes County Comprehensive Plan and the Bend Area General Plan (BAGP) contain destination resorts goals and policies. However, neither plan contains any goals or policies related to the ratio between residential units and overnight lodging units. Rather, the Plan and BAGP primarily focus on destination resort mapping and direct the County to adopt code provisions to implement the siting standards of ORS 197.445 and Goal 8. Therefore, the detailed siting standards for resorts in the UAR, including the ratio, are set forth in DCC Title 19. As a result, there are no plan policies directly applicable to this text amendment, and the amendments to Title 19 do not require any concurrent amendments to the Comprehensive Plan or BAGP. The Board therefore finds that no goals or policies of the plan apply to these amendments. Further, the Board finds that the amendments are consistent with the Deschutes County Comprehensive Plan and that the amendments are not inconsistent with any goal or policy of the Deschutes County Comprehensive Plan. 5. Compliance with the Statewide Planning Goals A. Statewide Planning Goal 1, Citizen Involvement The amendments are consistent with Goal 1 because the County processed the application consistent with the procedural standards for code amendments. The standards provide for public comment and hearings, thereby promoting the citizen involvement policies of Goal 1. B. Statewide Planning Goal 2, Land Use Planning Goal 2 requires the County to adopt and maintain land use plans and ordinances to implement the Goals. The Goal also requires the County to amend the plans and ordinances when appropriate, Page 4 of 13 - EXHIBIT C TO ORDINANCE 2013-003 following an opportunity for public notice and comment. The amendments are consistent with Goal 2 because the amendments will update the County's implementing ordinance to make the overnight lodging ratio in Title 19 consistent with the state land use planning statutes and Goal 8. As noted above, the amendments were subject to public review and comment, including public hearings before the Planning Commission and the Board of Commissioners. C. Statewide Plannin Goals 3 and 4 A ricultural Lands and Forest Lands Goals 3 and 4 concern agricultural and forest lands. The amendments affect Title 19, which governs the Urban Area Reserve. These lands are not zoned for agricultural or forest use. Therefore, because the amendments will change only the UAR chapter of the code, Goals 3 and 4 are not relevant to the amendments. D. Statewide Planning Goal 5, Natural Resources, Scenic and Historic Areas, Open Spaces Consistent with Goal 5, DCC 19.106 already requires the preservation of designated Goal 5 resources on any destination resort tract through design techniques, open space dedication, or conservation easements. The amendments are focused solely on updating the ratio between residential units and overnight lodging units, and will not alter how DCC Title 19 complies with Goal 5. E. Statewide Planning Goal 6. Air, Water, and Land Resources Quality; Goal 7, Areas SuNect to Natural Hazards As with Goal 5, DCC 19.106.070 already contains standards to ensure that destination resorts within the UAR will protect air, water and land resources. In addition, DCC 19.106.070 also contains standards limiting resort development in areas subject to natural hazards. These siting standards require the maintenance of important natural features, including streams, rivers, and significant wetlands. The standards also regulate alterations and uses within the 100-year floodplain and on slopes exceeding 25%, as required by Goals 7 and 8. The amendments to DCC 19.106 will not alter these standards. Rather, the amendments will only update the ratio between residential units and overnight lodging units. Therefore, Title 19 will remain consistent with Goals 6 and 7. F. Statewide Planning Goal 8, Recreational Needs Goal 8 governs recreation, including destination resorts. As explained above, Goal 8 currently contains a 2-1/2:1 ratio between residential units and overnight lodging units. The amendments will implement this standard, thereby maintaining compliance with Goal 8. G. Statewide Planning Goal 9, Economic Development The amendments are consistent with Goal 9 because it is an economic policy of the State of Oregon to promote tourism through destination resort development (ORS 197.440(1) and (2)). The amendments will authorize the mix of residential and overnight lodging uses contemplated by ORS 197.445 and Goal 8, thereby ensuring that Title 19 continues to serve its purpose of fostering economic development through recreation and tourism. Page 5 of 13 - EXHIBIT C TO ORDINANCE 2013-003 H. Statewide Planning Goal 10, Houma Destination resorts provide for a variety of housing in a recreational setting. The amendments are consistent with Goal 10 because they will authorize the ratio of housing types currently allowed by ORS 197.445 and Goal 8. 1. Statewide Planning Goal 11, Public Facilities and Services In its current form, DCC 19.106 is consistent with Goal 11 because it requires resorts in the UAR to provide sewer and water facilities at the resort, or to connect to existing facilities if the resort bears the costs of extension. In addition, the lines extended to the resort must be sized to meet the needs of the resort only. The amendments will not alter compliance with Goal 11 because they do not change any code or plan standards regarding public facilities. Rather, the amendments focus solely on bringing the ratio between residential units and overnight lodging units into compliance with ORS 197.445 and Goal 8. J. Statewide Plannin Goal 12, Transportation The administrative rules set forth in OAR 660-012 implement Goal 12. A local government must demonstrate compliance with OAR 660-12-0060 (the "Transportation Planning Rule," or "TPR") when adopting a plan or land use regulation amendment. The TPR requires the local government to determine whether the amendment would "significantly affect" an existing or planned transportation facility. If so, the government must put in place measures set forth in the rule to address the affects. As detailed below, the minor amendments adopted to change the overnight lodging ratio from 2:1 to 2-1/2:1 are consistent with Goal 12 and the TPR because the amendments will not significantly affect a transportation facility. (1) If an amendment to a functional plan, an acknowledged comprehensive plan, or a land use regulation (including a zoning map) would significantly affect an existing or planned transportation facility, then the local government must put in place measures as provided in section (2) of this rule, unless the amendment is allowed under section (3), (9) or (10) of this rule. A plan or land use regulation amendment significantly affects a transportation facility if it would: (a) Change the functional classification of an existing or planned transportation facility (exclusive of correction of map errors in an adopted plan); The amendments will only change the ratio governing the mix of dwelling units within a resort and will not change the functional classification of a transportation facility. (b) Change standards implementing a functional classification system; or The amendments will only change the ratio governing the mix of dwelling units within a resort and will not change the standards implementing a functional classification system. (c) Result in any of the effects listed in paragraphs (A) through (C) of this subsection based on projected conditions measured at the end of the planning period identified in the adopted TSP. As part of evaluating projected conditions, the amount of traffic projected to be generated within the area of the amendment may be reduced if the Page 6 of 13 - EXHIBIT C TO ORDINANCE 2013-003 amendment includes an enforceable, ongoing requirement that would demonstrably limit traffic generation, including, but not limited to, transportation demand management. This reduction may diminish or completely eliminate the significant effect of the amendment. (A) Types or levels of travel or access that are inconsistent with the functional classification of an existing or planned transportation facility; (B) Degrade the performance of an existing or planned transportation facility such that it would not meet the performance standards identified in the TSP or comprehensive plan; or (C) Degrade the performance of an existing or planned transportation facility that is otherwise projected to not meet the performance standards identified in the TSP or comprehensive plan. The amendments will change the ratio of residential units to overnight lodging units from 2:1 to 2-1/2:1. This change in itself will not result in any of the effects listed in paragraphs (A) through (C) above. Altering the ratio will not authorize greater density or more intense traffic-generating uses. Rather, it will simply change the mix of potential dwelling units within a resort. The density of a resort, and the associated traffic impacts, are governed by the siting and approval criteria already set forth in DCC 19.106. For example, the criteria requiring a resort to contain 50% open space and to minimize impacts on surrounding lands and affected road systems ultimately dictate the number and density of dwelling units within a resort. It is these standards, not the ratio between residential dwellings and overnight lodging units, which shape the overall size and potential traffic impacts of a resort. The ratio merely determines how many units are available for rental to the general public for a specified number of weeks versus how many individually-owned dwellings are used as permanent units or vacation homes without a mandated rental schedule. Whether a unit qualifies as an overnight lodging unit does not alter the trip generation assigned to that unit for purposes of traffic impact analysis. Rather, the traffic analyses for resorts assign a single trip generation rate to all dwelling units. Furthermore, from a practical perspective, the UAR lands that would be affected by this code change are quite limited. The UAR contains minimal DR-mapped lands, the majority of which are concentrated on the west side of Bend. (One small triangular piece of land along the southern edge of the City is mapped for resort development, but it is adjacent to a much larger tract of DR-mapped land outside of the City, which would be subject to DCC Title 18 (not Title 19) if it were to be developed as a resort). With respect to the properties on the west side of the City, half of the acreage is already approved and partially-developed with the Tetherow resort. The remainder of the acreage (north of Skyliners Road), is mapped but not approved for a resort. With respect to the undeveloped acreage to the north of Skyliners Road, the maximum density and associated trips counts for any future resort would be dictated by the existing approval criteria in DCC 19.106, as explained above. The new ratio would only change the potential mix of residential uses within that overall density, but not the total number of units that could generate traffic. Finally, Tetherow, the only currently entitled resort within the UAR, already has a maximum density set by its CMP and FMP approvals. (County File Nos. CU-04-94, RC-05-01, M-05-2). Page 7 of 13 - EXHIBIT C TO ORDINANCE 2013-003 Specifically, Tetherow was subject to the West Bend Traffic Consortium Development Agreement, which set a maximum density and maximum number of trips for the resort. (Deschutes County Ordinance No. 2000-034; City of Bend Ordinance No. NS-1757). During the CMP approval, the developer proposed to construct a total of 889 residential units, and County found that the resort would remain under the authorized density and trip count if it developed at that density. As relevant to the TPR analysis, the County specifically found that development of the resort at that density would not "significantly affect" a transportation facility. (CMP Decision, File No. CU-04-94, pp. 28-29). In the CMP, the developer proposed to divide the residential units as follows: 589 single-family and multi-family dwellings (these units would be sold and could be rented to the general public, but would not be subject to the overnight lodging restrictions), and 300 overnight lodging units. This division complied with the 2:1 ratio in effect at that time of CMP approval. Following the adoption of the code amendments, Tetherow could apply to amend its CMP and FMP to authorize the use of the 2-1/2:1 ratio. Tetherow could apply the new ratio in a number of ways. First, Tetherow could seek to maintain the number of residential units while reducing the number of overnight units. A reduction in the total number of units would reduce transportation impacts. Second, Tetherow could seek to adjust the number of both residential and overnight lodging units, while maintaining the 889-unit maximum but applying the new ratio. Such an adjustment would allow 635 single-family and multi-family units, and 254 overnight lodging units. This would not increase overall density or trip count within the resort, it would only change the number of units that are subject to the overnight lodging rental restrictions. The Development Agreement anticipated this type of evolution in the mix of uses as follows: "4.2 For the purposes of determining the amount and kind of Off-Site Transportation Impact Mitigation required of CHLP's Proposed Development and the rights of CHLP vested herein, CHLP agrees that the density of its Proposed Development shall not exceed 294 single-family dwellings, 198 multi-family dwellings, 96 condominiums, 15,000 square feet of retail, 18-hole golf course, 280-room resort hotel and 200-room conference hotel (collectively, the "Maximum Density"). The Maximum Density has been used by the Parties in the supporting Traffic Study to determine the estimated number of vehicle trips to be generated by the Proposed Development. To the extent that CHLP changes its mix of development to respond to market conditions but does not increase the number or distribution of estimated vehicle trips, CHLP shall not be deemed to have exceeded its Maximum Density." Thus, the Development Agreement contemplated a change in the mix of uses, as would occur if Tetherow applied the new ratio to alter its residential mix. And, as noted above, the actual residential density approved in the CMP (889) was less than the maximum residential density allowed by the Development Agreement (1,068). Although the Development Agreement has expired by its terms, it provided a cap on development, above which additional transportation improvements could have been required. The third way in which Tetherow could take advantage of the new ratio is by maintaining the required 300 overnight lodging units and increasing residential density to a maximum of 750 units. Such an application may be impractical due to the fact that little, if any, additional development land is available at Tetherow. Such an application would also be required to comply with County transportation development standards as part of the CMP amendment. For Page 8 of 13 - EXHIBIT C TO ORDINANCE 2013-003 the reasons stated below, even this type of CMP amendment which would be permitted by the present text amendments would not violate the TPR or result in a determination of significant effects. The record contains correspondence from the County's senior transportation planner, Peter Russell regarding compliance with the TPR. Mr. Russell's comments suggest that the amendments require additional analysis to ensure consistency with the TPR. Additionally, although not specific, the comments filed by Central Oregon Landwatch also suggest that additional study may be required under the TPR. In response, the Board adopts the following additional findings: Unlike Title 18, where density at resorts is capped at 1.5 single-family dwelling units per acre, there is no maximum density for Title 19 resorts either for single-family dwelling units or overnight lodging units. The consequence is that under the existing development code a resort may develop at whatever density it selects and may add an unlimited number of trips to the transportation system. As a practical matter, however, density is largely controlled by the size of the property, open space requirements and other factors. However, because there is no maximum density for Title 19 destination resorts, under the existing code, a resort could develop at 1 unit per acre, 10 units per acre or 100 units per acre. Similarly, a resort could elect to construct 150, 500, 2000 or 20,000 overnight dwelling units. While development of 20,000 overnight units is hardly practical, for purposes of TPR analysis for these amendments, it is important to note that an applicant has the current right to develop at any density. As a consequence, an applicant has the current right to add all transportation trips associated with such density to the transportation system. The present amendment, which only changes the ratio between single family and overnight dwelling units does not provide a resort the ability to develop at any greater density than is already permitted under the code or provide any ability to add trips to the transportation system in addition to what could be added under the current code. Because density is not limited, Tetherow could seek to add residential and overnight lodging density under the current code and could do so under the amended code. Because under either version of the code Tetherow has an unlimited ability to add density (and therefore trips to the system), the change in the ratio does not provide the ability to add trips to the system that is not already present. As a result, the amendment will not significantly affect any transportation facility. Although the TPR may not be triggered by the present amendment, any change to the CMP will be reviewed under the County's transportation standards to ensure compliance with such standards. The change to the ratio would allow an existing resort to add additional single family dwellings while keeping the overnight dwelling units constant. This change would result in additional trips to the system, but these additional trips do not result in any issue under the TPR. Page 9 of 13 - EXHIBIT C TO ORDINANCE 2013-003 The following tables show the different trip generation potential for a 500 overnight lodging unit resort under the 2:1 and 2.5:1 ratios: Overnight Maximum Maximum Maximum Total lodging units trip number of trip number of generation SFR units at generation PM Peak for overnight 2:1 Ratio for SFR Hour trips lodging units units ITE 330 ITE 210 .42 PM Peak 1 PM Peak Hour Hour 500 210 1000 1000 1250 Overnight Maximum Maximum Maximum Total lodging units trip number of trip number of generation SFR units at generation PM Peak for overnight 2.5:1 Ratio for SFR Hour trips lodging units units ITE 330 ITE 210 .42 PM Peak 1 PM Peak Hour Hour 500 210 1250 1250 1460 The change in the ratio from 2:1 to 2.5:1 could result in an additional 210 trips to the system. For this reason it was suggested that additional analysis under the TPR was warranted. This potential addition of trips to the system, however, does not trigger additional analysis under the TPR. The reason for this is that under the existing development code, with no change to the ratio, a resort could add 210, 500 or 1000 additional trips to the system. This could be done in two different ways. Page 10 of 13 - EXHIBIT C TO ORDINANCE 2013-003 First, the resort could add additional overnight lodging units to resort while keeping the single family dwelling unit count constant: Overnight Maximum Maximum Maximum Total lodging units trip number of trip number of generation SFR units at generation PM Peak for overnight 2:1 Ratio for SFR Hour trips lodging units units ITE 330 ITE 210 .42 PM Peak 1 PM Peak Hour Hour 1100 462 1000 1000 1462 Under this example, the resort has added 252 additional trips to the system, while maintaining the same number of single family units. The addition of these trips is permitted under the existing code. Second, the resort could increase both the overnight lodging units and single family dwelling units, while maintaining the 2:1 ratio: Overnight Maximum Maximum Maximum Total lodging units trip number of trip number of generation SFR units at generation PM Peak for overnight 2:1 Ratio for SFR Hour trips lodging units units ITE 330 ITE 210 .42 PM Peak 1 PM Peak Hour Hour 620 261 1240 1240 1501 The above examples demonstrate that the change to the ratio between overnight lodging units and single family dwelling units will not result in additional trips to the transportation system than are already permitted under the code. An unlimited number of trips could be added to the system under the existing code. For purposes of the TPR, because resorts may develop at any density they may select, and because that density is not affected by the present amendment, the amendment will not significantly affect any transportation facility. Conversely, simply because the amendments are consistent with the TPR does not mean that an existing resort could avoid demonstrating consistency with County transportation standards at the time of development or an amendment to a CMP which increases overall density. In either instance, an applicant would be required to comply with all applicable county transportation standards. Stated differently, while a CMP or an amendment to a CMP could significantly affect a transportation system and require mitigation, the present amendments to Title 19 do not authorize additional trips to the system that could significantly affect a transportation system. Page 21 of 13 - EXHIBIT C TO ORDINANCE 2013-003 in conclusion, for the reasons set forth above, the code amendments are consistent with Goal 12 and the TPR because the amendments will not significantly affect a transportation facility. K. Statewide Plannin Goal 13, Ener Conservation Goal 13 encourages land development to be managed to maximize the conservation of all forms of energy, based upon sound economic principals. ORS 197.445 and Goal 8 define a destination resort as a "self-contained development that provides for visitor-oriented accommodations and developed recreational facilities in a setting with high natural amenities." Such developments maximize energy efficiency by providing a broad mix of uses within a single development (residential, overnight lodging, recreational, dining, etc.) The amendments are consistent with Goal 13 because they continue to promote efficient resort development within the UAR by updating the overnight lodging ratio in DCC Title 19. L. Statewide Plannin Goal 14, Urbanization Goal 14 focuses on the provision of orderly and efficient transition from rural to urban land uses. Goal 8 specifically authorizes resorts to be sited on DR-mapped lands without taking an exception to several goals, including Goal 14. At the time of the adoption of DCC 19.106, the County and DLCD determined that it would be consistent with Goal 14 to allow resorts within certain mapped portions of the UAR. The amendments will not alter DCC 19.106's compliance with Goal 14 because the amendments merely change the overnight lodging ratio to match ORS 197.445 and Goal 8. M. Statewide Planning Goals 15, 16, 17, 1$ and 19 Goals 15, 16, 17, 18, and 19 concern resources that are not present within the area affected by this amendment (Willamette River Greenway, Estuarine Resources, Coastal Shorelands, Beaches and Dune, and Ocean Resources). 6. Opposition Testimony The comments filed by Central Oregon Landwatch generally contain policy arguments as to why the County should not approve the amendments and suggest that the County adopt additional text amendments. The Board declined to adopt the recommended text changes. The only possible substantive challenge raised by Central Oregon Landwatch is that Goal 12 and TPR require additional transportation analysis. As set forth above, the County has undertaken such additional analysis and concluded that the amendments do not significantly affect any transportation facilities due to the fact that the amendments will not result in the addition of any additional trips to the transportation system than are already permitted under the existing code. With or without the present amendments, the applicant has the ability to add an unlimited number of trips to the system. Again, even though the amendments will not significantly affect a transportation facility, any amendment to a CMP or a new CMP will require a demonstration with the County's transportation standards. The comments filed by 1000 Friends of Oregon include no substantive challenge to the amendments. Rather, the comments request that the County not adopt the changes because to do so would "not be good policy." The Board finds that the comments filed by 1000 Friends of Page 12 of 13 - EXHIBIT C TO ORDINANCE 2013-003 Oregon do not provide any basis to conclude that the amendments are inconsistent with any rule, law, goal or other applicable standard. 7. Conclusion In conclusion, the Board concludes that the applicant has demonstrated that the amendments to DCC 19.04 and 19.106 to update the ratio between residential units and overnight lodging units from 2:1 to 2-1/2:1 is consistent with ORS 197.445, Goal 8, all other applicable Statewide Planning Goals and the Deschutes County Comprehensive Plan. Page 13 of 13 - EXHIBIT C TO ORDINANCE 2013-003