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2018-281-Order No. 2018-050 Recorded 7/5/2018Recorded in Deschutes County C J2018-281 REVIEWED Nancy Blankenship, County Clerk 07/05/2018 4:20:27 PM Commissioners' Journal L GAL OUNSEL 2018-281 BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Order Allowing Applicant to Modify Application on Remand and to Consider New Evidence Relevant to LUBA No. 2016-065 and File No. 247 -15 -000464 -CU * ORDER NO. 2018-050 WHEREAS, the Land Use Board of Appeals ("LUBA") issued a final opinion and order, LUBA No. 2016-065, remanding the Caldera Springs Destination Resort ("Caldera Springs") Conceptual Master Plan to expand the existing resort ("CMP"); and WHEREAS, LUBA issued a remand to permit the County to make additional findings and conclusions of law regarding the overnight lodging units ("OLUs") and whether the expansion area of Caldera Springs will be operated in a manner that is "integral" to the resort.; and WHEREAS, Pine Forest Development, LLC, (the "Applicant"), initiated the LUBA remand in File No. 247 -15 -000464 -CU within the 180 -day period set forth in DCC 22.34.030; and WHEREAS, the Applicant, Central Oregon LandWatch and the County have elected to mediate a settlement of the issues presented by the LUBA remand; and WHEREAS, Section 22.34.040(A) of the Deschutes County Code allows the Board of County Commissioners ("Board") discretion to reopen the record in instances in which it deems to be appropriate; and WHEREAS, Section 22.34.040(B) of the Deschutes County Code allows the Board the discretion to permit the Applicant to modify a remanded application to the extent that such modifications would not substantially alter the proposal and would not have significantly greater impact on surrounding neighbors; and WHEREAS, Section 22.34.020 of the Deschutes County Code allows the Board to hear an application on remand where the parties stipulate to the remand conditions; and WHEREAS, Central Oregon LandWatch and the Applicant have reached agreement on the issues presented by the LUBA remand and the relocation of a wildlife mitigation tract at Caldera Springs and wish to stipulate to the terms and conditions of a revised CMP on remand before the Board; and WHEREAS, the Board wishes to allow the parties to present new evidence related to question on remand set out above; now, therefore, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, HEREBY ORDERS as follows: Section 1. The Board hereby reopens the record of the Caldera Springs CMP application to allow parties to submit and the Board to consider new evidence related to the issues of (1) whether the OLUs are "individual units;" (2) whether the Caldera Springs annexation area will be operated in a manner "integral" to the remainder of the resort, and (3) the relocation of the wildlife mitigation tract within the Caldera Springs annexation area. PAGE 1 OF 2 - ORDER No. 2018-050 Section 2. Pursuant to DCC 22.34.020, as a stipulated remand, the Board shall hear the Caldera Springs remand application. Dated this of J , 2018 PAGE 2 OF 2 - ORDER No. 2018-050 BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON ANTHONY DeBONE, Chair \.,/ LA. PHILIP G. HE DERSON, Vice Chair lr�p p4 TAMMY"BA N Y, Com ssioner Deschutes County Board of Commissioners 1300 NW Wall St, Bend, OR 97703 (541) 388-6570 - Fax (541) 385-3202 - https://www.deschutes.org/ AGENDA REQUEST & STAFF REPORT For Board of Commissioners Business Meeting of July 2, 2018 DATE: June 27, 2018 FROM: Peter Gutowsky, Community Development, 541-385-1709 TITLE OF AGENDA ITEM: Consideration of Board Signature of Order No. 2018-050, Pine Forest Development, LLC Pine Forest Development, LLC (Applicant) respectfully asks the Board of County Commissioners to issue Order No. 2018-050 to reopen the record to allow the Applicant to submit a revised development plan. They are also requesting the Board hear the matter directly. TO: Deschutes County Board of Commissioners FROM: Peter Gutowsky, AICP, Planning Manager DATE: June 27, 2018 SUBJECT: Pine Forest Development, LLC / LUBA Remand Proceedings / Order No. 2018-050 REQUEST Pine Forest Development, LLC (Applicant) respectfully asks the Board of County Commissioners (Board) to issue an order to reopen the record to allow the Applicant to submit a revised development plan. They are also requesting the Board hear the matter directly. The Board is not obligated to hear the LUBA remand. It has the discretion to refer this matter to a Hearings Officer since the Caldera Springs Conceptual Master Plan (CMP) was last reviewed by a Hearings Officer.' Deschutes County Code (DCC) 22.34.040, Proceedings on Remand, grants the Board discretion on remand to: • Reopen the record in instances in which it deems to be appropriate; • Enable a remanded application for a land use permit to be modified to address issues involved in the remand to the extent that such modifications would not substantially alter the proposal and would not have a significantly greater impact on surrounding neighbors; and, e Allow parties to raise new, unresolved issues that relate to new evidence directed toward the issue on remand if additional testimony is required to comply with it; and2 • Hear the matter on remand in the case of a stipulated remand. II. LUBA REMAND / SETTLEMENT The Applicant respectfully asks the Board to issue an order to reopen the record to allow them to submit a revised development plan. They are also requesting the Board hear the matter directly. The County hearings officer (Ken Helm) originally approved the CMP in April, 2016. The CMP included a maximum of 395 single family units, a maximum of 95 overnight lodging units (OLUs), together with additional recreation and resort -related facilities. The CMP was for an expansion of the existing Caldera Springs Resort, 1 DCC 22.34.020. The Hearings Body for a remanded or withdrawn decision shall be the Hearings Body from which the appeal to LUBA was taken, except that in voluntary or stipulated remands, the Board may decide that it will hear the case on remand. 2 DCC 22.34.040. https://weblink.deschutes.org/public/0/doc/4133/Pagel.aspx south of Sunriver. Central Oregon LandWatch appealed the county's decision to the Oregon Land Use Board of Appeals (LUBA). LUBA's decision was then appealed by both the applicant and LandWatch to the Oregon Court of Appeals. The court remanded the decision to LUBA and LUBA, in turn, remanded the decision back to the County. LUBA identified two issues on remand: (1) whether the OLUs in the existing resort are "separate" units, thus qualifying under the Destination Resort Statute as "overnight lodging", and (2) whether the expansion area will be operated in a manner that is "integral" to the remainder of the resort. The Applicant timely requested that the County proceed with the remand. Since the Applicant's request to the County, the Applicant and LandWatch have been negotiating the terms of a revised CMP and have notified the County that both parties wish to stipulate to the terms of a remand decision. Should the Board elect to hear the matter directly on remand, the Board will need to determine whether the application meets the applicable approval criteria and addresses the issues presented by LUBA on remand. The Applicant has notified the County of the following: CMP Changes As part of the original CMP, the Applicant set aside approximately 125 acres as a Wildlife Mitigation Tract. The tract was located on the eastern boundary of the resort. Based on negotiations with LandWatch, the Applicant has enlarged the tract to approximately 221 acres and relocated it to the southern edge of the resort. According to the Applicant, this will provide better wildlife connectivity between the Deschutes River and forest lands east of Highway 97. While this issue was not presented directly on remand, this modification allowed the Applicant and LanclWatch to agree to the resolution of the remaining issues on remand. 2. The CMP included a total of 490 units, including 95 OLUs and 395 single family units. The revised CMP will include the same total number of units, but the Applicant will provide for a maximum of 150 OLUs and a maximum of 340 single family units. The Applicant does not propose to use "lock off" units in the expansion area. New Submittal and Evidence Forthcoming to Address the Remand 3. A revised CMP map identifying the relocated Wildlife Mitigation Tract and associated changes to the layout of the remainder of the resort. 4. Additional evidence demonstrating that the existing OLUs qualify as "overnight lodging units." 5. Additional evidence demonstrating that the expansion area will be operated in a manner that is integral to the resort; and 6. Supplemental reports (transportation, sewer, water, wildlife) demonstrating that the changes to the CMP will not have any additional impacts beyond those contemplated by the original CMP proposal. Attachment Order No. 2018-050 PA Memorandum TO: Board of Commissioners FROM: David Doyle, Legal Counsel DATE: June 28, 2018 RE: Pine Forest / Caldera - LUBA Remand RECOMMENDATION: LEGAL COUNSEL David Doyle, Legal Counsel Christopher Bell, Assistant Legal Counsel John E. Laherty, Assistant Legal Counsel D. Adam Smith, Assistant Legal Counsel Legal recommends that the Board exercise its discretion and direct that remand proceedings be heard by the County Hearings Officer. Legal is cognizant of the mediation/settlement efforts of the parties to the LUBA appeal, and does not expect that Board action (as opposed to Hearings Officer) will provide added benefit (deference, interpretation). In addition, the Board's hearing schedule is extremely full and as such could delay timely resolution into the Fall. 1300 NW Wall Street Suite 205 Bend, Oregon 97703 t� (541) .388-6623 @ legalcounsel@deschutes .org (fD www,deschutes.org