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2018-400-Minutes for Meeting August 06,2018 Recorded 9/26/2018G�vT E S CSG BOARD OF o= j COMMISSIONERS 1300 NW Wall Street, Bend, Oregon (541) 388-6570 1:30 PM Recorcled in Deschutes rcaunty CJ2018-400 Nancy Blankenship, County Clerk Comn-issioners'..Iouma1 09/26/2018 9:39:02 AM 2018-400 ALLEN CONFERENCE ROOM Present were Commissioners Tammy Baney, Phil Henderson and Anthony DeBone. Also present were Tom Anderson, County Administrator; Erik Kropp, Deputy County Administrator; and Sharon Keith, Board Executive Assistant. Several citizens and representatives of the media were in attendance. CALL TO ORDER: Chair DeBone called the meeting to order at 1:34 p.m. ACTION ITEMS 1. Rural Commercial and Rural Industrial Designation Text Amendment Discussion: Nicole Mardell, Peter Gutowsky, and Nick Lelack of Community Development presented this item as preparation for a public hearing that is scheduled on August 20. Ms. Mardell explained the history of the application for a Comprehensive Plan designation change and zone change. The Land Use Board of Appeals and Oregon State Court of Appeals denied the application based on Deschutes County Comprehensive Plan expressly prohibits the County from BOCC WORK SESSION AUGUST 6, 2018 PAGE 1 OF 4 designating new properties as Rural Industrial or Rural Commercial. Staff has been pursuing the text amendment and recommends the Board consider the potential study of environmental impact. The Planning Commission has been calling for public testimony. One letter of opposition was submitted from Central Oregon LanclWatch. Adam Smith, Assistant Legal Counsel noted there will be significant opposition at this hearing. Ms. Mardell noted the findings related to state goals may present opposition and pointed out the findings say there will be an analysis for each specific property. The Planning Commission held a public hearing on June 14, 2018 and deliberated on July 12, 2018 and voted to approve the proposed text amendment with a recommendation to the Board to consider the study of clustering rural commercial properties to increase efficiency and decrease adverse environmental impact. Staff presented a legislative history outlining re -designation of properties as a request of the Planning Commission. The areas currently identified as rural commercial exception areas are Deschutes Junction, Deschutes River Woods Store, and Pine Forest. The areas currently identified as rural industrial exception areas are Redmond Military, Deschutes Junction, and Bend Auto Recyclers. Discussion held on the Comprehensive Plan and proposed text amendments. Ms. Mardell noted it is just changing language on the exception areas. The Board spoke on the value of minimizing impact. Planning Commission spoke on a policy to make it equitable. Commissioner Baney requested examples of zones and what is allowed. Commissioner DeBone commented on the rural area vision. Ms. Mardell reported the attorney for the applicant encouraged the Board to make the amendments effective immediately based on the possibility of an appeal. Commissioner Baney requested information during the hearing regarding the process of emergency clause for adoption. BOCC WORK SESSION AUGUST 6, 2018 PAGE 2 OF 4 EXECUTIVE SESSION: At the time of 2:36 p.m., the Board went into Executive Session under ORS 192.660 (2) (d) Labor Negotiations. The Board came out of Executive Session at 3:18 p.m. OTHER ITEMS: • County Administrator Anderson reported on the Crooked River Ranch groundbreaking ceremony for Quail Road for Tuesday, August 7 at 1:30 for secondary access road. • The Commissioners meet with Rick Allen tomorrow as Project Manager for 911 Radio System Update. A contract has been drafted and once done meeting let tom know if there are any modifications you would like to make • Erik Kropp Deputy County Administrator spoke on finding new chairs for the Barnes and Sawyer conference room. The current chairs in Barnes and Sawyer are broken. The Board expressed support. COMMISSIONER UPDATE: The Board was at the Deschutes County Fair last week. • Commissioner Baney commented on the need for fire extinguishers for the breakfast area as there was an incident of a grease fire. BOCC WORK SESSION AUGUST 6, 2018 PAGE 3 OF 4 Being no further items to come before the Board, the meeting was adjourned at 3:54 p.m. DATED this I I Day of L12018 for the Deschutes County Board of Commissioners T ISSIONER RECORDING SECRETARY BOCC WORK SESSION AUGUST 6, 2018 PAGE 4 OF 4 Deschutes County Board of Commissioners 1300 NW Wall St, Bend, OR 97703 (541) 388-6570 - www.deschutes.org WORK SESSION AGENDA DESCHUTES COUNTY BOARD OF COMMISSIONERS 1:30 PM, MONDAY, AUGUST 6, 2018 Allen Conference Room - Deschutes Services Building, 2ND Floor - 1300 NW Wall Street - Bend Work Session, which are open to the public, allow the Board to gather information and give direction to staff. Public comment is not normally accepted. Written minutes are taken for the record Pursuant to ORS 192.640, this agenda includes a list of the main topics that are anticipated to be considered or discussed. This notice does not limit the Board's ability to address other topics. Meetings are subject to cancellation without notice. CALL TO ORDER ACTION ITEMS 1. Rural Commercial and Rural Industrial Designation Text Amendment Discussion - Nicole Mardell, Associate Planner COMMISSIONER'S UPDATES EXECUTIVE SESSION Executive Session under ORS 192.660 (2) (d) Labor Negotiations At any time during the meeting an executive session could be called to address issues relating to ORS 192.5660(2)(e); real property negotiations; ORS 192.660(2)(h) litigation; ORS 192.660(2)(d), labor negotiations; ORS 192.660(2)(b); personnel issues; or other executive session categories. Executive sessions are closed to the public; however ,with few exceptions and under specific guidelines, are open to the public. OTHER ITEMS Board of Commissioners Work Session Agenda Monday, August 6, 2018 Page 1 of 2 These can be any items not included on the agenda that the Commissioners with to discuss as part of the meeting pursuant to ORS 192.640. ADJOURN Deschutes County encourages persons with disabilities to participate in all programs and activities. To request this information in an alternate format please call (541) 617-4747. FUTURE MEETINGS: Additional meeting dates available at www.deschutes.org/meetingcalendar Meeting dates and times are subject to change. If you have question, please call (541) 388-6572. Board of Commissioners Work Session Agenda Monday, August 6, 2018 Page 2 of 2 MEMORANDUM TO: Deschutes County Board of County Commissioners (Board) FROM: Nicole Mardell, Associate Planner DATE: August 6, 2018 SUBJECT: Rural Commercial and Rural Industrial Designation Text Amendment — Work Session The Board is conducting a work session on August 6, 2018 in preparation for a public hearing on August 20, 2018 to consider a text amendment relating to the potential designation of new properties as Rural Commercial or Rural Industrial in the Deschutes County Comprehensive Plan. The proposed Comprehensive Plan text amendments and staff findings are attached to this memo for review. BACKGROUND In 2015, property owner Tony Aceti applied for a Comprehensive Plan designation change and zone change to allow for rural industrial uses on his property, which was zoned and designated for farm use. The applications were approved by the Board of County Commissioners and were subsequently appealed to the Land Use Board of Appeals and the Oregon State Court of Appeals. Both hearings bodies denied the applications on the basis that the Deschutes County Comprehensive Plan expressly prohibits the County from designating new properties as Rural Industrial or Rural Commercial. Rather, the designation is limited to the areas listed in the Comprehensive Plan as exception areas established pre -state land use law. In light of the findings the Court of Appeals provided, the Deschutes County seeks to amend the Comprehensive Plan to allow for the potential designation of new Rural Industrial or Rural Commercial properties. The amendments are not intended to review or approve a designation change for any specific property, but to allow for new proposals to be submitted and reviewed on an individual basis. In order for a specific property to be approved for a Comprehensive Plan designation change, the application would need to meet the requirements set forth by State Statute, Oregon Administrative Rule, the Deschutes County Comprehensive Plan, and the Deschutes County Development Code. RURAL COMMERCIAL AND RURAL INDUSTRIAL DESIGNATIONS The current language within the Deschutes County Comprehensive Plan designates a small number of properties as Rural Commercial and Rural Industrial. These properties have established industrial or commercial uses that predated state land use law and/or the adoption of the County's zoning ordinance. The areas currently identified as acknowledged Rural Commercial exception areas are: • Deschutes Junction • Deschutes River Woods Store Pine Forest • Rosland • Spring River The areas currently identified as acknowledged Rural Industrial exception areas are: • Redmond Military • Deschutes Junction • Bend Auto Recyclers The proposed amendments alter the language in the Comprehensive Plan from allowing only the existing exception areas to allowing the designation of other properties that satisfy all other state and local land use requirements. Applications for Comprehensive Plan designation changes will be reviewed in greater detail on an individual basis as part of the land use review process. PLANNING COMMISSION RECOMMENDATION The Planning Commission held a public hearing on June 14, 2018 and deliberated on July 12, 2018. The Commission voted to approve the proposed text amendment with a recommendation to the Board to consider the study of clustering rural commercial and rural industrial properties to increase efficiency and decrease adverse environmental impact. IV. NEXT STEPS The Board will hold a public hearing for the proposed text amendment on August 20, 2018. Attachments: 1. Proposed Text Amendments 2. Staff Findings 3. Map of Existing RC and RI Properties in Deschutes County Page 2 of 2 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 Work Session of August 6, 2018 DATE: August 1, 2018 FROM: Nicole Mardell, Community Development, TITLE OF AGENDA ITEM: Rural Commercial and Rural Industrial Designation Text Amendment Discussion ATTENDANCE: Nicole Mardell, Associate Planner SUMMARY: In preparation for the August 20, 2018 public hearing, the Board will discuss the proposed text amendment relating to the potential designation of new properties as Rural Commercial or Rural Industrial in the Deschutes County Comprehensive Plan. Attachment 1: Proposed Text Amendments SeaUovi, 3.-4 R, olt ecovxoml. Background Economic development is critically important to maintaining quality of life. When the Statewide Planning system was initiated, farming and forestry were strongly protected because they were the State's primary economic drivers. Statewide Planning Goal 9, Economic Development and Oregon Administrative Rule (OAR) 660-009 apply to areas inside urban growth boundaries and are intended to ensure an adequate land supply for business and employment growth. The Rule defines the preparation of Economic Opportunity Analyses (EOA) to identify and promote a diverse economy. Rural Economy 2008-2009 Source: Economic Development for Central Oregon website ■ The top three economic sectors in 2009 were: retail trade, leisure and hospitality, educational and health services ■ Median income for a family of four in 2008 was $63,500 ■ A 2009 list of top private employers shows Sunriver at #3 and Eagle Crest at # 12 and Black Butte Ranch at # 15 ■ 2009 unemployment ranged from approximately 13%-16% - up from 5.3% in 2000 Source: Fishing, Hunting, Wildlife Viewing and Shellfishing in Oregon, 2008, May 2009, Prepared for the Oregon Department of Fish and Wildlife by Dean Runyan Associates ■ A total of $78 million was spent in Deschutes County in 2008 on fishing, hunting and wildlife viewing Source: Oregon State University Extension Oregon Agricultural Information Network, Deschutes County Agricultural Commodity Soles for 2008 and 2009 ■ Over $26 million in crop and livestock sales in 2008 (revised estimate) ■ Over $19 million in crop and livestock sales in 2009 (preliminary estimate) Source: County GIS ■ There are 5 developed Rural Commercial lots ■ There are 3 developed Rural Industrial lots Economic Trends Deschutes County's economy was initially built around farming and logging. As those sectors declined, recreation and tourism increased as people were drawn to the beauty and opportunities to recreate on public lands. The high quality of life became a draw for employers and employees alike. Until recently, the building sector boomed as new housing was built to meet both increased housing demand and the real estate speculation that followed. Housing prices rose so high that workforce housing became a limiting factor in economic growth. The period of strong growth ended with the national recession that began in late 2007, leading to falling housing prices and rising unemployment. DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 CHAPTER 3 RURAL GROWTH MANAGEMENT SECTION 3.4 RURAL ECONOMY A partner for the County in promoting a healthy economy is Economic Development for Central Oregon (EDCO). This private non-profit organization is dedicated to diversifying the tri -county regional economy by attracting new investment and jobs. This organization also tracks the local economy. As noted above, statewide land use goals and rules direct growth primarily in urban areas. Still, there are economic opportunities that can be supported by the County. Farming and forestry and related businesses ■ Economic opportunities in these sectors are discussed in the Agriculture and Forest sections of this Plan. Recreation and tourism ■ These sectors include revenue from hunting, fishing and wildlife viewing that are discussed in the Wildlife section of this Plan. Also included here are Mt Bachelor ski resort and other area resorts. This sector is anticipated to continue growing. Unincorporated Communities ■ New commercial and industrial uses are permitted in unincorporated communities. These uses are limited in size. See Chapter 4 for more information. Home-based businesses ■ Although not a major economic player, for many rural residents the opportunity to run a small business out of their home provides extra income. Home businesses are regulated tightly on agricultural land by the state, and by the county through the home occupation code. Green Employment ■ New initiatives for green energy take advantage of the local abundance of resources. See the Energy section of this Plan. Bend Airport ■ The Bend Airport is owned and managed by the City of Bend as a municipal airport with supporting aviation associated businesses. Aviation industries are also a major focus of EDCO. As of 2010 the City of Bend and Deschutes County are working to create a new master plan for the area that will promote future aviation related business while protecting the nearby rural residences from aviation -related impacts. Coordination ■ The County can support and coordinate with agencies, organizations and juridictions in promoting economic development such as coordinating on the Regional Economic Opportunity Analysis for Un -Met Large -Lot Industrial Sites due to be completed in 2011. ■ The County can support farming as a contributor of the economy by promoting a diverse, sustainable, revenue -generating agricultural sector, including emerging agricultural conditions and markets. Environment ■ Deschutes County's quality of life is increasingly recognized as an important factor in economic development and can be viewed as a strategic resource to be managed for its long-term contributions as a tourist destination, to employee retention, and locational decisions for industrial recruitment. DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 CHAPTER 3 RURAL GROWTH MANAGEMENT SECTION 3.4 RURAL ECONOMY Rural Commercial and Rural Industrial In Deschutes County there are a handf lsmall number of properties zoned Rural Commercial and Rural Industrial. These initial application of these designations recognize uses that predated State land use laws. Approval of these designations for nNew commercial or industrial sites is are controlled by State and local regulations,, and additional development is anticipated to be minimal and only for specific sites -properties. suEh as areund the Bend AirpeFt. Rural Commercial The county may apply the Rural Commercial plan designation applies to property within specific existing exception areas or to any other specific property that satisfies the requirements for a comprehensive plan designation change as set forth by State Statute, Oregon Administrative Rules this Comprehensive Plan and the Deschutes County Development Code, and that is located outside unincorporated communities and urban growth boundaries. The rural commercial uses and services in these areas are limited in size and scope to those that are less intensive than uses allowed in Unincorporated Communities. The uses and densities are limited by the zoning, thereby maintaining rural integrity. The county has applied the Rural Commercial designationappliesto the following acknowledged exception areas: • Deschutes Junction • Deschutes River Woods Store • Pine Forest • Rosland • Spring River As a part of State required Periodic Review, a Rural Commercial designation was applied to Deschutes Junction, Deschutes River Woods Store and Spring River. These areas had previously been designated Rural Service Centers, but a new Unincorporated Communities Rule (OAR 660-022) defined "rural service centers" in such a way that these areas no longer matched the criteria. The Rural Commercial plan designation and zoning brings each of these three areas into compliance with state rules by adopting zoning to ensure that they remain rural and that the uses allowed are less intensive than those allowed in unincorporated communities as defined in OAR 660-022. The County recently applied a new Rural Commercial plan designation to Rosland (2002) and Pine Forest (2007) commercial centers which historically were committed to commercial uses prior to the adoption of zoning regulations. Existin Rural Commercial Designated Exception Areas The Deschutes Junction Rural Commercial boundary includes 1.77 acres, bounded by Tumalo Road on the South, Highway 97 on the East, with the remainder surrounded by Agricultural (EFU) and Rural Residential (MUA-10) lands. The Deschutes River Woods Store Rural Commercial boundary includes 4.99 acres bounded by Baker Road on the North, Highway 97 on the East, railroad tracks and Cheyenne Road on the West and Morningstar Christian School on the South. The surrounding land is zoned Rural DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 CHAPTER 3 RURAL GROWTH MANAGEMENT SECTION 3.4 RURAL ECONOMY Residential (RR-10). The Deschutes River Woods residential subdivision is adjacent to this property. The Pine Forest Rural Commercial boundary includes approximately 2.0 acres bounded by Pine Forest Drive and Burgess Road. The remainder is surrounded by exceptions land zoned RR-10. The Rosland Rural Commercial boundary includes approximately 4.5 acres near the intersection of Burgess and River Pine Roads. The remainder is surrounded by exceptions land zoned RR-10. The Spring River Rural Commercial boundary includes 9.16 acres bounded by Spring River Road on the North, Lunar Drive on the East and additional commercial and residential uses on the South and West. The surrounding land is zoned Rural Residential (RR-10). Rural Industrial The county may apply the Rural Industrial plan designation applies to specific property within existing Rural Industrial exception areas or to any other specific property that satisfies the requirements for a comprehensive plan designation change set forth by State Statute, Oregon Administrative Rules this Comprehensive Plan and the Deschutes County Development Code, and that is located outside unincorporated communities and urban growth boundaries. The Rural Industrial plan designation and zoning brings these areas and specific properties into compliance with state rules by adopting zoning to ensure that they remain rural and that the uses allowed are less intensive than those allowed in unincorporated communities as defined in OAR 660-022. The county originally applied the Rural Industrial designation dies to the following acknowledged exception areas. ■ Redmond Military ■ Deschutes Junction ■ Bend Auto Recyclers Existing Rural Industrial Designated Exception Areas The Redmond Military site consists of tax lot 15130000001 16 and is 35.42 acres, bounded by the Redmond Urban Growth Boundary to the west and agricultural lands (EFU) surrounding the remainder of the property. The Deschutes Junction site consists of the following tax lots: 161226C000107 (9.05 acres), 16126C000106 (4.33 acres), 161226C000102 (1.41 acres), 161226C0001 14 (2.50 acres), portions 161226C000300 (12.9 acres). 161226C000301 (8.93 acres), 161226A000203 (1.5 acres) and those portions of 161226C0001 I I located west of the Burlington Northern-Santa Fe railroad tracks (16.45 acres). Generally, the Deschutes junction site is bordered on the west by Highway 97, on the east by the Burlington Northern Railroad, on the north by Nichols Market Road (except for a portion of 1612226A0001 11), and on the south by EFU-zoned property owned by the City of Bend. Bend Auto Recyclers consists of tax lot 17120300001 1 1 and is 13.41 acres, bounded by Highway 97 to the west, and Rural Residential (MUA-10) lands to east, north and south. 4 DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 CHAPTER 3 RURAL GROWTH MANAGEMENT SECTION 3.4 RURAL ECONOMY Future of Deschutes County Economy A key to economic growth in Deschutes County is to recognize and protect the natural resources that contribute to the quality of life that draws both employers and employees as well as tourists to the area. A 2010 report on Deschutes County's economy by Headwaters Economics and Economic Development for Central Oregon outlined a number of recommendations to increase economic diversity and resiliency. Areas where the County can consider focusing its attention are: promoting housing diversity, local amenities, better transportation access and higher education. According to the report, public incentives are also helpful. Given the State emphasis on economic development inside cities, the County's primary role is to cooperate with cities and EDCO. Coordinating with cities, agencies and organizations that are actively promoting economic development can be an effective use of resources. As an example of local partnering, in 2010 the County initiated a Regional Economic Opportunity Analysis to identify the need for large -lot industrial sites. From a rural perspective, working with the agriculture and forest sectors to encourage new uses as discussed in those sections of this Plan is anether option to supplement the otherwise minimal growth expected in rural commercial and rural industrial uses. Others -are —options include supporting sustainable recreation, tourism and commercial alternative energy projects. Finally, home based businesses that minimize impacts on rural neighbors can also be encouraged. DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 CHAPTER 3 RURAL GROWTH MANAGEMENT SECTION 3.4 RURAL ECONOMY Goal and Policies Goal I Maintain a stable and sustainable rural economy, compatible with rural lifestyles and a healthy environment. Policy 3.4.1 Promote rural economic initiatives, including home-based businesses, that maintain the integrity of the rural character and natural environment. a. Review land use regulations to identify legal and appropriate rural economic development opportunities. Policy 3.4.2 Work with stakeholders to promote new recreational and tourist initiatives that maintain the integrity of the natural environment. Policy 3.4.3 Support a regional approach to economic development in concert with Economic Development for Central Oregon or similar organizations. Policy 3.4.4 Support regional educational facilities and workforce training programs. Policy 3.4.5 Support renewable energy generation as an important economic development initiative. Policy 3.4.6 Support and participate in master planning for airports in Deschutes County. Policy 3.4.7 Within the parameters of State land use regulations, permit limited local -serving commercial uses in higher -density rural communities. Lands Designated and Zoned Rural Commercial Policy 3.4.8 Update the policies for lands designated Rural Commercial as needed. Policy 3.4.9 Rural Commercial designated lands located outside of urban growth boundaries shall allow uses less intense than those allowed in unincorporated communities as defined by Oregon Administrative Rule 660-22 or its successor. Rural Commercial zoning shall be applied to any new properties that are approved for Rural Commercial designation as allowed by State Statute, Oregon Administrative Rules and this Comprehensive Plan. Policy 3.4. 10 Rural Commercial zoning shall be applied to Deschutes Junction, Deschutes River Woods Store, Pine Forest, Rosland and Spring River. Policy 3.4.1 1 In Spring River there shall be a Limited Use Combining Zone. Policy 3.4.12 County Comprehensive Plan policies and land use regulations shall ensure that new uses authorized on Rural Commercial designated lands do not adversely affect agricultural and forest uses in the surrounding areas. Policy 3.4.13 Zoning in the area shall ensure that the uses allowed are rural as required by Goal 14, Urbanization, and less intensive than those allowed for unincorporated communities as defined in OAR 660-22. New commercial uses shall be limited to those that are intended to serve the surrounding rural area or the travel needs of people passing through the area. DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 CHAPTER 3 RURAL GROWTH MANAGEMENT REFERENCES Policy 3.4.14 New commercial uses shall be limited in size to 2,500 square feet or if for an agricultural or forest -related use, 3,500 square feet. Policy 3.4.15 A lawful use existing on or before November 5, 2002 that is not otherwise allowed in a Rural Commercial zone, may continue to exist subject to the county's nonconforming use regulations. Policy 3.4.16 An existing lawful use may expand up to 25 percent of the total floor area existing on November 5, 2002. Policy 3.4.17 The Rural Commercial zoning regulations shall allow a mixed use of residential or rural commercial uses. Policy 3.4.18 Residential and commercial uses shall be served by DEQ approved on-site sewage disposal systems. Policy 3.4.19 Residential and commercial uses shall be served by on-site wells or public water systems. Policy 3.4.20 Community sewer systems, motels, hotels and industrial uses shall not be allowed. Policy 3.4.21 Recreational vehicle or trailer parks and other uses catering to travelers shall be permitted. Lands Designated and Zoned Rural Industrial Policy 3.4.22 Update the policies for lands designated Rural Industrial as needed. Policy 3.4.23 To assure that urban uses are not permitted on rural industrial lands, land use regulations in the Rural Industrial zones shall ensure that the uses allowed are less intensive than those allowed for unincorporated communities in OAR 660- 22 or any successor. Policy 3.4.24 Limited Use Combining zones shall be applied to the Redmond Military (Tax lot 15 130000001 16), Deschutes Junction (Tax lot 161226C000301, Tax lot 161226C000300, Tax lot 161226C0001 I I and Tax lot 161226A000203) to ensure permitted uses are compatible with surrounding farm and forest lands. Policy 3.4.25 To ensure that the uses in Rural Industrial zone on tax lot 16-12-26C-301, as described in Exhibit "C" and depicted on Exhibit "D" attached to Ordinance 2009-007 and incorporated by reference herein, are limited in nature and scope, the Rural Industrial zoning on that site shall be subject to a Limited Use Combining Zone which will limit the uses to storage, crushing, processing, sale and distribution of minerals. Policy 3.4.26 To ensure that the uses in the Rural Industrial Zone on Tax Lot 300 on Assessor's Map 16-12-26C-300 and Tax Lot 203 on Assessor's Map 16-12-26A- 300 and portions of Tax Lot I I I on Assessor's Map 16-12-26C- I I I as described in Exhibit 'D' and depicted in Exhibit `E' attached to Ordinance 2010-030 and incorporated by reference herein, are limited in nature and scope, the Rural Industrial zoning on the subject parcel shall be subject to a Limited Use DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 7 CHAPTER 3 RURAL GROWTH MANAGEMENT REFERENCES Combining Zone, which will limit the uses to storage, crushing, processing, sale and distribution of minerals, subject to conditional use and site plan approval. Policy 3.4.27 Land use regulations shall ensure that new uses authorized within the Rural Industrial sites do not adversely affect agricultural and forest uses in the surrounding area. Policy 3.4.28 New industrial uses shall be limited in size to a maximum floor area of 7,500 square feet per use within a building, except for the primary processing of raw materials produced in rural areas, for which there is no floor area per use limitation. Policy 3.4.29 A lawfully established use that existed on or before February 2, 2003 not otherwise allowed in a Rural Industrial zone may continue to exist subject to the county's non-conforming use regulations. Policy 3.4.30 A lawfully established use that existed on or before February 2, 2003 may be expanded to occupy a maximum of 10,000 square feet of floor area or an additional 25 percent of the floor area currently occupied by the existing use, whichever is greater. Policy 3.4.31 Residential and industrial uses shall be served by DEQ approved on-site sewage disposal systems. Policy 3.4.32 Residential and industrial uses shall be served by on-site wells or public water systems. Policy 3.4.33 Community sewer systems shall not be allowed in Rural Industrial zones. Policy 3.4.34 A 2009 exception (Ordinance 2009-007) included an irrevocably committed exception to Goal 3 and a reasons exception to Goal 14 to allow rural industrial use with a Limited Use Combining Zone for storage, crushing, processing, sale and distribution of minerals. Policy 3.4.35 A 2010 exception (Ordinance 2010-030) took a reasons exception to Goal 14 with a Limited Use Combing Zone for storage, crushing, processing, sale and distribution of minerals. Policy 3.4.36 Properties for which a property owner has demonstrated that Goals 3 and 4 do not apply may be considered for Rural Industrial designation as allowed by State Statute, Oregon Administrative Rules and this Comprehensive Plan. Rural Industrial zoning shall be applied to a new property that is approved for the Rural Industrial plan designation. DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 CHAPTER 3 RURAL GROWTH MANAGEMENT REFERENCES Attachment 2: Staff Findings FINDINGS I. PROPOSED PLAN AMENDMENT The proposed amendments to Deschutes County's Comprehensive Plan are described in Ordinance 2018-008, Exhibit A. Added language is underlined and deleted language is shown in strikethFougI4. BACKGROUND In 2015, property owner Tony Aceti submitted applications for a comprehensive plan designation change and zone change on his property to allow rural industrial uses on his property planned and zoned for agricultural use. While located at the intersection of Tumalo Road and Highway 97, the property is not within the Deschutes Junction exception area identified in the Deschutes County Comprehensive Plan (DCCP) Section 3.4 Rural Industrial Designated Areas. The Deschutes County Board of County Commissioners approved those applications. Central Oregon LandWatch appealed those decisions to the Land Use Board of Appeals. LUBA sustained the county's determination that the property was not resource land, but remanded a Goal 14 exception approval, with instructions that the exception was necessary only if the county wished to approve urban uses on rural land. Central Oregon LandWatch v. Deschutes County, _ Or LUBA _ (LUBA No. 2016-012, August 10, 2016). On remand, the Board of County Commissioners again approved the applications. In its decision, the Board of County Commissioners interpreted the DCCP and concluded that it could approve the applications even though the subject property was located outside of the Deschutes Junction exception area identified in the plan. Central Oregon LandWatch appealed again. On appeal, LUBA concluded that the county's interpretation of the DCCP was inconsistent with the express language of the comprehensive plan and reversed the decision. Central Oregon LandWatch v. Deschutes County, _ Or LUBA _ (LUBA No. 2017-009, June 15, 2017)(Slip Op. at 12-13, 15-16). The county and the applicant appealed the decision to the Court of Appeals and filed a joint brief. Affirming LUBA's decision, the Court of Appeals concluded that the county's interpretation of the DCCP conflicted with the plan's express language, which the court held, applied the Rural Industrial plan designation to only three enumerated exception areas. The court further held that the county did not have the authority to approve the Rural Industrial plan designation for properties located outside the three listed exception areas. Central Oregon LandWatch v. Deschutes County, 288 Or App 378, 379-80, Pad _ (2017). The Court of Appeals quoted two passages from the Deschutes County Comprehensive Plan, Section 3.4. Those passages are: And, "In Deschutes County there are a handful of properties zoned Rural Commercial and Rural Industrial. These designations recognize uses that predated State land use laws. New commercial or industrial sites are controlled by State regulation and additional development is anticipated to be minimal and only for specific sites, such as around the Bend Airport." 288 Or App at 379: DCCP, Chapter 3, p. 10. "The Rural Industrial plan designation applies to specific exception areas located outside unincorporated communities and urban growth boundaries. The Rural Industrial plan designation and zoning brings these areas into compliance with state rules by adopting zoning to ensure that they remain rural and that the uses allowed are less intensive than those allowed in unincorporated communities as defined in OAR 660-022. "The Rural Industrial designation applies to the following acknowledged exception areas. "Redmond Military "Deschutes Junction "Bend Auto Recyclers" 288 Or App at 380; DCCP, Chapter 3, p. 11. The fundamental issue raised by the Court of Appeals decision is its holding that the language of the DCCP expressly prohibits the county from approving a request for the Rural Industrial plan designation on any property outside the three listed exception areas, even if a property otherwise meets all state and local land use requirements for the Rural Industrial plan designation. That holding is contrary to the Board of County Commissioners' prior understanding of its authority under the DCCP and with its interpretation of the DCCP conducted during the remand proceedings discussed above. As explained by LUBA in its opinion, the Rural Industrial designation is not necessarily limited to the three exception areas listed in DCCP Section 3.4, however, the county must first amend DCCP Section 3.4 to remove the language that limits application of the Rural Industrial designation to the three identified exception areas or otherwise expressly broaden application of the designation to other sites deemed eligible under DCCP Section 3.4. Central Oregon LandWatch v. Deschutes County, _ Or LUBA _ (LUBA No. 2017-009, June 15, 2017)(Slip Op. at 15). PAGE 2 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008 Consequently legislative amendments to the DCCP are needed to grant the county the authority it believed it had, authority that every other county in Oregon has, when it interpreted the DCCP. The proposed amendment language will need to address, at the minimum, the language the Court of Appeals concluded limited the application of the Rural Industrial plan designation. One other aspect of LUBA's analysis compels these legislative amendments to include amendments to the language used in the Rural Commercial provisions of the DCCP. In its opinion, LUBA compares the similarities between the language used in DCCP Chapter 3.4 for the Rural Commercial designation and that for the Rural Industrial designation in reaching its conclusion about the plan language limiting use of the designation only within the identified exception areas. There is no reason to believe that the similar Rural Commercial language would not be interpreted in the same manner that LUBA and the Court of Appeals interpreted the similar Rural Industrial plan language. PURPOSE The purpose for the proposed amendments to the Deschutes County Comprehensive Plan is to plainly and unequivocally establish that Deschutes County has the authority to approve, throughout the county, an application for a comprehensive plan designation change for a specific property to Rural Commercial or Rural Industrial so long as the plan designation change is consistent with State Statutes, Oregon Administrative Rules, the Deschutes County Comprehensive Plan, and the Deschutes County Code. Following approval of the proposed amendments, the county's authority to approve such comprehensive plan designation changes will not be limited to the existing exception areas currently identified in the Deschutes County Comprehensive Plan. The proposed amendments are intended only to grant the county the authority to make decisions on future comprehensive plan designation change applications for properties located outside of the existing exception areas, and to make those decisions consistent with state and local land use regulations. The proposed amendments do not change the plan designation of any property within Deschutes County, or otherwise authorize any development or land use changes in the county. II. REVIEW CRITERIA Ordinance No. 2018-008 amends the Deschutes County Comprehensive Plan. Deschutes County lacks specific criteria in Deschutes County Code (DCC) Titles 18, 22 or 23 for reviewing a legislative plan amendment. Nonetheless, since Deschutes County is initiating one, the County bears the responsibility for satisfying that the amendments are consistent with the Statewide Planning Goals, Oregon Revised Statutes (ORS), Oregon Administrative Rules (OAR), and the existing Deschutes County Comprehensive Plan. PAGE 3 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008 The findings are organized as follows: • Section (1) — Statewide Planning Goal 1, Citizen Involvement • Section (2) — Oregon Revised Statutes • Section (3) — Other Statewide Planning Goals • Section (4) — Deschutes County Comprehensive Plan Section (1), Statewide Planning Goal 1, Citizen Involvement Goal: To develop a citizen involvement program that insures the opportunity for citizens to be involved in all phases of the planning process. The citizen involvement program shall incorporate the following components: 1. Citizen Involvement — To provide for widespread citizen involvement. 2. Communication — To assure effective two-way communication. 3. Citizen Influence — To provide the opportunity for citizens to be involved in all phases of the planning process. 4. Technical Information — To assure that technical information is available in an understandable form. 5. Feedback Mechanisms — To assure that citizens will receive a response from policy -makers. Finding: While Goal 1 is a directive to the county to develop a citizen involvement program that insures opportunities for public participation in land use planning and is not directly applicable to this decision, the county has complied with its citizen involvement program in its consideration of the proposed amendments. Goal 1 will be met through this adoption process because this amendment will receive two public hearings, one before the County Planning Commission, the County's citizen review board for land use matters, and one before the Board of County Commissioners. Section (2), Oregon Revised Statutes * ORS 197.175 (2) Pursuant to ORS chapters 195, 196 and 197, each city and county in this state shall: (a) Prepare, adopt, amend and revise comprehensive plans in compliance with goals approved by the commission; (b) Enact land use regulations to implement their comprehensive plans[.] Finding: The proposed amendments represent the proper exercise of the county's planning authority to revise its comprehensive plan because the amendments are PAGE 4 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008 evaluated below for consistency with the Statewide Planning Goals. There is no need to enact additional land use regulations to implement these amendments because the amendments only authorize the county to make certain types of decisions, and the Deschutes County Code Titles 18 and 22 already provide the procedural and substantive requirements for that decision-making. The proposal is consistent with this statute. * ORS 197.610 (1) Before a local government adopts a change, including additions and deletions, to an acknowledged comprehensive plan or a land use regulation, the local government shall submit the proposed change to the Director of the Department of Land Conservation and Development. The Land Conservation and Development Commission shall specify, by rule, the deadline for submitting proposed changes, but in all cases the proposed change must be submitted at least 20 days before the local government holds the first evidentiary hearing on adoption of the proposed change. The commission may not require a local government to submit the proposed change more than 35 days before the first evidentiary hearing. Finding: The proposed comprehensive plan amendments have been submitted to LDCD in the manner prescribed by ORS 197.610. Notice to the Director of DLCD was provided on May 10, 2018. * ORS 197.712 (1) In addition to the findings and policies set forth in ORS 197.005, 197.010 and 215.243, the Legislative Assembly finds and declares that, in carrying out statewide comprehensive land use planning, the provision of adequate opportunities for a variety of economic activities throughout the state is vital to the health, welfare and prosperity of all the people of the state. (2) By the adoption of new goals or rules, or the application, interpretation or amendment of existing goals or rules, the Land Conservation and Development Commission shall implement all of the following: (a) Comprehensive plans shall include an analysis of the community's economic patterns, potentialities, strengths and deficiencies as they relate to state and national trends. (b) Comprehensive plans shall contain policies concerning the economic development opportunities in the community. (c) Comprehensive plans and land use regulations shall provide for at least an adequate supply of sites of suitable sizes, types, locations and service levels for industrial and commercial uses consistent with plan policies. (d) Comprehensive plans and land use regulations shall provide for compatible uses on or near sites zoned for specific industrial and commercial uses. (g) Local governments shall provide: (A) Reasonable opportunities to satisfy local and rural needs for residential and industrial development and other economic activities on appropriate lands outside urban growth boundaries, in a manner consistent with conservation of the state's agricultural and forest land base[.] PAGE 5 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008 Finding: These amendments help provide for the provision of adequate opportunities for economic development in the county as provided by subsection (1) of this statute. LCDC has acknowledged the county's comprehensive plan as consistent with the requirements of subsection (2)(a) through (d) and the proposed amendments do not change or otherwise affect those provisions. These amendments will provide a reasonable opportunity to satisfy arising needs for commercial or industrial development on rural lands consistent with conservation of the state's agricultural and forest land base as identified in ORS 197.712(2)(g)(A) by requiring that any proposal for the Rural Commercial or Rural Industrial plan designation in rural areas of the county demonstrate why the resource goals do not or should not apply to the property. * ORS 197.713 (1) Notwithstanding statewide land use planning goals relating to urbanization or to public facilities and services, a county or its designee may authorize: (a) Industrial development, including accessory uses subordinate to the industrial development, in buildings of any size and type, subject to the permit approval process described in ORS 215.402 to 215.438 and to applicable building codes, in an area planned and zoned for industrial use on January 1, 2004, subject to the territorial limits described in subsections (2) and (3) of this section. (b) On-site sewer facilities to serve the industrial development authorized under this section, including accessory uses subordinate to the industrial development. (2) Subject to subsection (3) of this section, a county or its designee may consider the following land for industrial development under this section: (a) Land more than three miles outside the urban growth boundary of every city with a population of 20,000 individuals or more; and (b) Land outside the urban growth boundary of every city with a population of fewer than 20,000 individuals. (3) A county or its designee may not authorize industrial development under this section on land within the Willamette Valley as defined in ORS 215.010. (4) A county or its designee may not authorize under this section retail, commercial or residential development in the area zoned for industrial use. Finding: This statute is not directly applicable to the proposed amendments because they do not authorize any development or land use changes. Any future decisions made under the proposed amendments will have to be made consistent with the requirements of ORS 197.713 if applicable. * ORS 197.714 (1) Notwithstanding the authority granted in ORS 197.713 to allow industrial development, including accessory uses subordinate to the industrial development, in areas zoned for industrial use, when a county or its designee considers action under ORS 197.713 (1) for land within 10 miles of the urban growth boundary of a city, the county or its designee shall give notice to the city at least 21 days prior to taking action. (2) If the city objects to the authorization of industrial development under ORS 197.713, the city and county shall negotiate to establish conditions on the industrial development or changes in the development necessary to mitigate concerns raised by the city's objection. PAGE 6 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008 Finding: This statute is not directly applicable to the proposed amendments because they do not authorize any development or land use changes. Any future decisions made under the proposed amendments will have to be made consistent with ORS 197.714. Section (3), Other Statewide Planning Goals The parameters for evaluating specific amendments to the comprehensive plan are that the amendments are based on an adequate factual base and supportive evidence demonstrating consistency with Statewide Planning Goals. * Goal 1, Citizen Involvement Finding: See Section (1) above. * Goal 2, Land Use Planning Finding: The proposed amendments are consistent with Goal 2's mandate to make decisions consistent with the established land use planning process. ORS 197.610 allows local governments to initiate post acknowledgment plan amendments (PAPA). DCC 22.12.030 also provides for Board of Commissioners' initiation of legislative changes to the Deschutes County Comprehensive Plan. An Oregon Land Conservation and Development Department 35 -day notice was initiated on May 10, 2018. This FINDINGS document and analysis identifies the issues, problems, and basis for the proposed amendments as required by Goal 2. The public and affected governmental units have been notified of the proposed changes and have been provided an opportunity to comment on the proposed amendments. The amendments to the Deschutes County Comprehensive Plan will be adopted by ordinance, as required by Goal 2, Part I. * Goal 3, Agricultural Lands and Goal 4, Forest Lands Finding: These resource goals are not applicable to the proposed amendments because they propose no plan designation changes, zoning map changes, development or land use changes on agricultural or forest lands. The proposed amendments only grant the county the authority to make decisions that may implicate Goals 3 or 4 in the future. Any future applications for a site-specific comprehensive plan designation change will have to demonstrate consistency with Goals 3 and 4 or demonstrate that the subject property does not meet the definition of Agricultural Land as denoted in OAR 660-004-0005. * Goal 5, Natural Resources, Scenic and Historic Areas, and Open Spaces Finding: This goal is not applicable because the proposed amendments only grant the county the authority to approve applications to change a property's comprehensive plan designation as allowed by State Statute, Oregon Administrative Rule and the PAGE 7 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008 Comprehensive Plan. No development or land use changes are being proposed that might impact Goal 5 protected natural resources, scenic and historic areas, or open spaces. Any future applications for a site-specific comprehensive plan designation change will have to demonstrate consistency with Goal 5. * Goal 6, Air, Water and Land Resources Quality Finding: This goal is not applicable because the proposed amendments only grant the county the authority to approve applications to change a property's comprehensive plan designation as allowed by State Statute, Oregon Administrative Rule and the Comprehensive Plan. No development or land use changes are being proposed that impact air, water and land resource qualities. Any future applications for a site-specific comprehensive plan designation change will have to demonstrate consistency with Goal 6. * Goal 7, Natural Hazards Finding: This goal is not applicable because the proposed amendments only grant the county the authority to approve applications to change a property's comprehensive plan designation as allowed by State Statute, Oregon Administrative Rule and the Comprehensive Plan. No development or land use changes are being proposed that impact natural hazards. Any future applications for a site-specific comprehensive plan designation change will have to demonstrate consistency with Goal 7. * Goal 8, Recreational Needs Finding: This goal is not applicable because the proposed amendments only grant the county the authority to approve applications to change a property's comprehensive plan designation as allowed by State Statute, Oregon Administrative Rule and the Comprehensive Plan. No development or land use changes are being proposed on recreational resources. Any future applications for a site-specific comprehensive plan designation change will have to demonstrate consistency with Goal 8. * Goal 9, Economic Development Finding: The proposed amendments most directly concern Goal 9. While the Deschutes County Comprehensive Plan contains policies intended to contribute to a stable and healthy economy in the county and LCDC acknowledged the plan as consistent with Goal 9's planning and implementation guidelines, the recent LUBA and Court of Appeals decision eliminated one of the primary implementation measures that the county previously believed it had. As a result of those decisions the county lost the "land use control" implementation measure of having the authority to approve comprehensive plan designation changes to Rural Industrial for properties outside the existing exception areas when approval of a requested change was otherwise allowed by State Statute, Oregon Administrative Rule and the Comprehensive Plan. The basis PAGE 8 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008 behind the two decisions was an interpretation that the Comprehensive Plan expressly limited all such plan changes to the existing exception areas. Given the similarity in language used in DCCP Section 3.4 for the Rural Commercial plan designation with the language for the Rural Industrial plan designation, it is reasonable to conclude that LUBA and the Court of Appeals would interpret the DCCP Rural Commercial provisions similar to how they interpreted the Rural Industrial provisions to hold that the DCCP expressly limits Rural Commercial plan designation changes to the existing exception areas identified in the plan. As discussed below in Section (4), the Deschutes County Comprehensive Plan expresses the county's intention to pursue the full range of economic opportunities that are available to the county so long as such activity would continue to maintain the integrity of the county's rural character and natural environment. Just as important, the comprehensive plan does not categorically exclude any particular type of economic development or exclude economic development at any particular location. The proposed amendments are consistent with Goal 9 because they safeguard the land use control implementation measure that allows approval of comprehensive plan designation changes that promote economic development so long as the requested change meets all state and local land use requirements for that change. The Goal 9 rule does not apply to comprehensive plans for areas outside urban growth boundaries. See, OAR 660-009-0010(1). These amendments only affect land in rural parts of the county. Consequently, the Goal 9 rule is not applicable to these amendments. * Goal 10, Housing Finding: This goal is not applicable because, unlike municipalities, unincorporated areas are not obligated to fulfill Goal 10 housing requirements. Furthermore, no development or land use changes are being proposed that relate to or impact housing. Any future site-specific applications for a comprehensive plan designation change will have to demonstrate consistency with Goal 10. * Goal 11, Public Facilities Finding: This goal is not applicable because the proposed amendments only grant the county the authority to approve applications to change a property's comprehensive plan designation as allowed by State Statute, Oregon Administrative Rule and the Comprehensive Plan. No development or land use changes are being proposed that require public facilities or services. Any future site-specific applications for a comprehensive plan designation change will have to demonstrate consistency with Goal 11. PAGE 9 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008 * Goal 12, Transportation Finding: The Transportation Planning Rule (TPR) requires local governments to determine whether an amendment to a comprehensive plan will "significantly affect" an existing or planned transportation facility. The TPR identifies three ways in which an amendment to a comprehensive plan could "significantly affect" a transportation facility. OAR 660-012-0060(1): (a) Changes the functional classification of an existing or planned transportation facility (exclusive of correction of map errors in an adopted plan); (b) Changes standards implementing a functional classification system; or (c) Results 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 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 proposed amendments only grant the county the authority to approve applications to change a property's comprehensive plan designation as allowed by State Statute, Oregon Administrative Rule and the Comprehensive Plan. No development or land use changes are being proposed at this time that impact local or state transportation facilities. This goal can be met with site specific review conducted during the application process, in compliance with the Deschutes County Code requirements. Because no development or land use changes are being proposed at this time that will result in a significant impact to a state transportation facility or that would amend an adopted transportation system plan, the Goal 12 rule (OAR 660, Division 12) will be analysis on an individual site basis during the land use application process. PAGE 10 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008 * Goal 13, Energy Conservation Finding: This goal is not applicable because the proposed amendments only grant the county the authority to approve applications to change a property's comprehensive plan designation as allowed by State Statute, Oregon Administrative Rule and the Comprehensive Plan. No development or land use changes are being proposed that raise energy conservation issues. Any future site-specific applications for a comprehensive plan designation change will have to demonstrate consistency with Goal 13. * Goal 14, Urbanization Finding: The purpose of Goal 14 is to direct urban uses to areas inside urban growth boundaries. The proposed amendment is consistent with Goal 14 because not only must any application for the Rural Commercial or Rural Industrial plan designation demonstrate it is consistent with Goal 14, but, as DCCP Policy 3.4.9 and Policy 3.4.23 direct, land use regulations for the Rural Commercial and Rural Industrial zones ensure that the uses allowed are less intensive than those allowed for unincorporated communities in OAR 660 Division 22, and are consequently not urban uses. Furthermore, no development or land use changes are being proposed that raise energy conservation issues. *Goals 15 through 19 Finding: These goals are not applicable to any amendments to the County's comprehensive plan because the county has none of those types of lands. Section (4), Deschutes County Comprehensive Plan * Chapter 2, Resource Management Section 2.2 Agricultural Land Goal 1 Preserve and maintain agricultural lands and the agricultural industry. Policy 2.2.3 Allow comprehensive plan and zoning map amendments for individual EFU parcels as allowed by State Statute, Oregon Administrative Rules and this Comprehensive Plan. Policy 2.2.4 Develop comprehensive policy criteria and code to provide clarity on when and how EFU parcels can be converted to other designations. Finding: The introductory statement to DCCP Section 2.2 discusses the county's agricultural sub -zones, irrigation districts, the state and future of farming in the county, recent legislative activity at the state level, and the future of farm designations and uses in the county. PAGE 11 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008 Significant to these amendments, the introductory statement also identifies a range of potentially conflicting concerns regarding farm lands. However, the statement concludes: "The goals and policies in this Section are intended to provide the basis for evaluating the future of agriculture in the County over the next twenty years. They are intended to provide, within State guidelines, flexibility to the farming community. County farm lands will be preserved by ensuring a variety of alternative paths to profitability." DCCP, Section 2, p. 10. Agricultural Land Goal 1 recognizes the importance of preserving agricultural lands and of supporting the agricultural industry in Deschutes County. However, Policies 2.2.3 and 2.2.4 recognize, as does the discussion in the introduction, that there are properties in the county where land that is designated for agricultural use is not suitable for or necessary to support agriculture. Policy 2.2.3 expressly allows for comprehensive plan and zoning map amendments for individual EFU parcels. Given the prevalence of agricultural land in the county, it is possible that any applications for a plan change to Rural Commercial or Rural Industrial could involve land designated for agricultural use. The proposed amendments are consistent with this policy because, like Policy 2.2.3, the amendments allow for plan designation changes only if they are permitted under State Statute, Oregon Administrative Rules and the Comprehensive Plan. The express reference to state statutes and the OARs by the amendments invoke the demanding standards established by those provisions, which will preclude most properties currently designated for agricultural use from being converted to the Rural Commercial or Rural Industrial plan designation. This is consistent with Policy 2.2.4. Furthermore, existing Policies 3.4.12 and 3.4.27 provide that land use regulations shall ensure that new uses authorized within Rural Commercial and Rural Industrial sites do not adversely affect agricultural and forest uses in the surrounding area. Implementing regulations for those policies have been incorporated into DCC Title 18. The proposed amendments are consistent with DCCP Section 2.2. Section 2.3 Forest Land Goal 1 Protect and maintain forest lands for multiple uses, including forest products, watershed protection, conservation, recreation and wildlife habitat protection. Policy 2.3.9 Support economic development opportunities that promote forest health. PAGE 12 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008 Finding: The introductory statement to Section 2.3 Forest Lands discusses the county's forest designations, provides background data, current trends, future uses and the significance of key forest resources in the county. The statement notes that, while much of the county land is in forest designation, 92% of it is owned by the federal government. The focus of the introductory statement is on retaining forest land in larger blocks and protecting the Skyline Forest. The introductory statement also notes the development pressures on forest land comes primarily from the desire for residential use. The goal of protecting and maintaining forest lands presented in the introductory statement is reinforced by Section 2.3 Goal 1. The desire to promote multiple uses of forest lands is reinforced by Policy 2.3.9, which encourages pursuing economic development opportunities that promote forest health. The proposed amendments provide the county with an additional implementation measure to promote economic development that will support forest lands if the requisite state and local land use requirements are met. Furthermore, existing Policies 3.4.12 and 3.4.27 provide that land use regulations shall ensure that new uses authorized within Rural Commercial and Rural Industrial sites do not adversely affect agricultural and forest uses in the surrounding area. Implementing regulations have been incorporated into DCC Title 18. The proposed amendments are consistent with DCCP Section 2.3. * Chapter 3, Rural Growth Management Section 3.4 Rural Economy Goal 1 Maintain a stable and sustainable rural economy, compatible with rural lifestyles and a healthy environment. Policy 3.4.1 Promote rural economic initiatives, including home-based businesses that maintain the integrity of the rural character and natural environment. a. Review land use regulations to identify legal and appropriate rural economic development opportunities Lands Designated and Zoned Rural Commercial Policy 3.4.8 Update the policies for lands designated Rural Commercial as needed. Policy 3.4.9 Rural Commercial designated lands located outside of urban growth boundaries shall allow uses less intense than those allowed in unincorporated communities as defined by Oregon Administrative Rule 660-22 or its successor. PAGE 13 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008 Lands Designated and Zoned Rural Industrial Policy 3.4.22 Update the policies for lands designated Rural Industrial as needed. Policy 3.4.23 To assure that urban uses are not permitted on rural industrial lands, land use regulations in the rural Industrial zones shall ensure that the uses allowed are less intensive than those allowed for unincorporated communities in OAR 660-22 or any successor. Finding: The introductory statement for DCCP Section 3.2 Rural Development recognizes the potential for limited economic development in rural areas of Deschutes County. The statement notes that state law greatly restricts rural commercial and rural industrial uses in rural areas, so consequently the economic growth in those areas is not anticipated to be significant. DCCP Chapter 3, p. 3. However, the economic trends portion of the introductory statement for DCCP Section 3.4 Rural Economy states: "As noted above, statewide land use goals and rules direct growth primarily in urban areas. Still, there are economic opportunities that can be supported by the County." DCCP, Chapter 3, p. 9. The DCCP then discusses a variety of economic opportunities the county can pursue. Furthermore, the final component of the introductory statement, addressing the future of Deschutes County economy, discusses the county's attractiveness for employers and employees, and a range of economic opportunities — both urban and rural — that the county can pursue to promote economic growth. Each of those passages express the County's intent to pursue the full range of economic opportunities available, while at the same time recognizing that Oregon's statewide land use planning program imposes severe limitations on the types and intensity of economic activity that can occur on rural land. While the expectation is that future rural commercial and industrial growth in the county will be extremely limited, those provisions leave little doubt that the County wishes to pursue whatever opportunities exist to promote rural economic development. The proposed amendments provide the county the authority to pursue economic opportunities that meet the stringent requirements of state and local land use regulations. This is consistent with the intent expressed in the introductory statements discussed above. The proposed amendments are also consistent with DCCP Section 3.4 Rural Economy's Goal 1, which seeks to maintain a stable and sustainable rural economy that is compatible with rural lifestyles and a healthy environment. As encouraged by Policy 3.4.1, the proposed amendments will allow the county to promote appropriate rural economic initiatives and development activities, reversing the prohibition imposed by the recent decisions on new designations that promote economic development outside of the existing exception areas. PAGE 14 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008 The proposal also updates the policies for both Rural Commercial and Rural Industrial land designations as provided for under Policies 3.4.1 and 3.4.22. Again, the purpose of the updates is to ensure that any approvals to designate property with the Rural Commercial or Rural Industrial designation are consistent with all state and local land use regulations. The proposed amendments also do nothing that allows urban uses on rural land, thereby implementing Policies 3.4.9 and 3.4.23. The application of DCC Title 18 to any development proposed on Rural Commercial or Rural Industrial designated land will ensure that the development approved is consistent with the requirements set forth under Policies 3.4.12 and 3.4.27 to not adversely affect surrounding area agricultural or forest land, or the development policies limiting building size (Policies 3.4.14; 3.4.30), sewers (Policies 3.4.18; 3.4.31 and .35), and water (Policies 3.4.19; 3.4.31) intended to limit the scope and intensity of development on rural land. The proposed amendments are consistent with the parts of DCCP Chapter 3 not directly affected by the amendments. III. CONCLUSION The decisions by LUBA and the Court of Appeals in Central Oregon LandWatch v. Deschutes County, _ Or LUBA _ (LUBA No. 2016-012, August 10, 2016), aff'd, 288 Or App 378, 379-80, _ P3d _ (2017), held that Deschutes County Comprehensive Plan does not give the county the authority to approve applications for the Rural Industrial designation on land that was located outside of three existing exception areas expressly identified in the plan. LUBA explained that there was nothing that inherently prohibits the county from approving such changes, but that the DCCP must be amended to allow the county to do so. Given that the DCCP language used within the section for Rural Commercial land use mirrors the language used in the section for Rural Industrial land use, the Board of County Commissioners conclude it is necessary to also amend DCCP Rural Commercial provisions. The purpose of these amendments to Section 3.4 Rural Economy is to ensure that the county can approve applications for the Rural Commercial or Rural Industrial plan designation that meet the requirements of State Statutes, Oregon Administrative Rules, the Deschutes County Comprehensive Plan and the Deschutes County code, in order to promote economic development in the county. Based upon the above findings, the Board of County Commissioners concludes that the proposed amendments are consistent with applicable State Statutes, the Statewide Planning Goals, Oregon Administrative Rules and the Deschutes County Comprehensive Plan. PAGE 15 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008 Attachment 3: Map of Existing RC and R'� Properties N Existing Rural Industrial and Comprehensive Plan Designation 0 2 4 8 Miles Rural Commercial Rural Industrial N AExisting Rural Industrial and Rural Commercial Properties Redmond Military Deschutes Junction Comprehensive Plan Designation 0 0.125 0.25 0.5 Miles Rural Commercial Rural Industrial N AExisting Rural Industrial and Rural Commercial Properties Bend Auto Recyclers Deschutes River Woods Store 0 0.075 0.15 0.3 Miles Comprehensive Plan Designation I i i i I i i i I Rural Commercial Rural Industrial N Existing Rural Industrial and Rural Commercial Properties Rosland � o� w z o O w C Z o w' BURGESS LA PINE Pine Forest Spring River I BURGESS 0 0 0.125 0.25 0.5 Miles SPRING RIVER -----------. Comprehensive Plan Designation Rural Commercial Rural Industrial