2018-419-Ordinance No. 2018-008 Recorded 10/12/2018Recorded in Deschutes County
Nancy Blankenship. County Clerk
Commissioners' Journal
CJ 2018-419
10/12/2018 1:50:40 PM
t\IUIUflIIII\IUIU Luti
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
An Ordinance Amending Deschutes County
Code Title 23, the Deschutes County Comprehensive
Plan, to Allow for the Potential of New Properties to
be Designated as Rural Industrial or Rural
Commercial and Declaring an Emergency.
*
*
ORDINANCE NO. 2018-008
WHEREAS, the Deschutes County Community Development Department (CDD) initiated amendments
(Planning Division File No. 247 -18 -000404 -PA) to the Deschutes County Comprehensive Plan, Chapter 3, Rural
Growth Management to allow for the potential of new properties to be designated as Rural Industrial or Rural
Commercial; and
WHEREAS, the Deschutes County Planning Commission reviewed the proposed changes on July 12,
2018 and forwarded to the Deschutes County Board of County Commissioners ("Board"), a recommendation of
approval, with the consideration of a study of when new rural commercial and rural industrial properties could be
concentrated to increase efficiency and decrease adverse environmental impact; and
WHEREAS, the Board considered this matter after a duly noticed public hearing on August 20, 2018, and
concluded that the public will benefit from the proposed changes to the Deschutes County Comprehensive Plan,
Chapter 3, and Deschutes County Code ("DCC") Title 23;
NOW, THEREFORE,
THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ORDAINS
as follows:
Section 1. AMENDMENT. DCC Title 23.01.010, Introduction, is amended to read as described in
Exhibit "A", attached hereto and by this reference incorporated herein, with new language underlined and
language to be deleted in strikethrough.
Section 2. AMENDMENT. Deschutes County Comprehensive Plan Chapter 3, Rural Growth
Management, is amended to read as described in Exhibit "B", attached hereto and by this reference incorporated
herein, with new language underlined and language to be deleted in strikethrough.
Section 3. AMENDMENT. Deschutes County Comprehensive Plan Chapter 5.12, Supplementary
Section— Legislative History, is amended to read as described in Exhibit "C", attached hereto and by this reference
incorporated herein, with new language underlined and language to be deleted in strikethrough.
///
PAGE 1 OF 2 - ORDINANCE NO. 2018-008
9
Section 4. FINDINGS. The Board adopts as its findings Exhibit "D", attached and incorporated by
reference herein.
Section 5. EMERGENCY. This Ordinance being necessary for the immediate preservation of the public
peace, health, safety and welfare, an emergency is declared to exist, and this Ordinance becomes effective
days from adoption.
ATTEST0W�
2018 BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
"1'e -cording Secretary
Date of Is` Reading: -3G day of 5
Date of 2"d Reading:
day of
ANTHONY DEBONE, Chair
PHILIP G. HENDERSON, Vice Chair
TAMMY BANEY, Commioner
2018.
Record of Adoption Vote:
Commissioner Yes No Abstained Excused
Anthony DeBone
Philip G. Henderson
Tammy Baney
Effective date: c..A0 day of ,+'C , 2018.
PAGE 2 OF 2 - ORDINANCE NO. 2018-008
Chapter 23.01 COMPREHENSIVE PLAN
Chapter 23.01 COMPREHENSIVE PLAN
23.01.010. Introduction.
A. The Deschutes County Comprehensive
and found on the Deschutes County Communit
by reference herein.
B. The Deschutes County Comprehensive
2011-027, are incorporated by reference herein.
C. The Deschutes County Comprehensive
2012-005, are incorporated by reference herein.
D. The Deschutes County Comprehensive
2012-012, are incorporated by reference herein.
E. The Deschutes County Comprehensive
2012-016, are incorporated by reference herein.
F. The Deschutes County Comprehensive
2013-002, are incorporated by reference herein.
G. The Deschutes County Comprehensive
2013-009, are incorporated by reference herein.
H. The Deschutes County Comprehensive
2013-012, are incorporated by reference herein.
I. The Deschutes County Comprehensive
2013-007, are incorporated by reference herein.
J. The Deschutes County Comprehensive
2014-005, are incorporated by reference herein.
K. The Deschutes County Comprehensive
2014-006, are incorporated by reference herein.
L. The Deschutes County Comprehensive
2014-012, are incorporated by reference herein.
M. The Deschutes County Comprehensive
2014-021, are incorporated by reference herein.
N. The Deschutes County Comprehensive
2014-027, are incorporated by reference herein.
O. The Deschutes County Comprehensive
2015-021, are incorporated by reference herein.
P. The Deschutes County Comprehensive
2015-029, are incorporated by reference herein.
Q. The Deschutes County Comprehensive
2015-018, are incorporated by reference herein.
R. The Deschutes County Comprehensive
2015-010, are incorporated by reference herein.
S. The Deschutes County Comprehensive
2016-001, are incorporated by reference herein.
T. The Deschutes County Comprehensive
Plan, adopted by the Board in Ordinance 2011-003
y Development Department website, is incorporated
Plan amendments, adopted by the Board in Ordinance
Plan amendments, adopted by the Board in Ordinance
Plan amendments, adopted by the Board in Ordinance
Plan amendments, adopted by the Board in Ordinance
Plan amendments, adopted by the Board in Ordinance
Plan amendments, adopted by the Board in Ordinance
Plan amendments, adopted by the Board in Ordinance
Plan amendments, adopted by the Board in Ordinance
Plan amendments, adopted by the Board in Ordinance
Plan amendments, adopted by the Board in Ordinance
Plan amendments, adopted by the Board in Ordinance
Plan amendments, adopted by the Board in Ordinance
Plan amendments, adopted by the Board in Ordinance
Plan amendments, adopted by the Board in Ordinance
Plan amendments, adopted by the Board in Ordinance
Plan amendments, adopted by the Board in Ordinance
Plan amendments, adopted by the Board in Ordinance
Plan amendments, adopted by the Board in Ordinance
Plan amendments, adopted by the Board in Ordinance
2016-022, are incorporated by reference herein.
U. The Deschutes County Comprehensive
2016-005, are incorporated by reference herein.
Plan amendments, adopted by the Board in Ordinance
PAGE 1 OF 2 — EXHIBIT A TO ORDINANCE NO. 2018-008
V. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance
2016-027, are incorporated by reference herein.
W. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance
2016-029, are incorporated by reference herein.
X. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance
2017-007, are incorporated by reference herein.
Y. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance
2018-002, are incorporated by reference herein.
Z. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance
2018-006, are incorporated by reference herein.
AA. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance
2018-011, are incorporated by reference herein.
BB. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance
2018-005, are incorporated by reference herein.
CC. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance
2018-008, are incorporated by reference herein.
Ord. 2018-008 §1, 2018; Ord. 2018-005 §2, 2018; Ord. 2018-011 §1, 2018; Ord. 2018-006 §1,
20180rd. 2018-002 §1, 2018; Ord. 2017-007 §1, 2017; Ord. 2016-029 §1, 2016; Ord. 2016-027 §1,
2016; Ord. 2016-005 §1, 2016; Ord. 2016-022 §1, 2016; Ord. 2016-001 §1, 2016; Ord. 2015-010 §1,
2015; Ord. 2015-018 § 1, 2015; Ord. 2015-029 § 1, 2015; Ord. 2015-021 § 1, 2015; Ord. 2014-027 §
1, 2014; Ord. 2014-021 §1, 2014; Ord. 2014-12 §1, 2014; Ord. 2014-006 §2, 2014; Ord. 2014-005
§2, 2014; Ord. 2013-012 §2, 2013; Ord. 2013-009 §2, 2013; Ord. 2013-007 §1, 2013; Ord. 2013-002
§1, 2013; Ord. 2013-001 §1, 2013; Ord. 2012-016 §1, 2012; Ord. 2012-013 §1, 2012; Ord. 2012-005
§1, 2012; Ord. 2011-027 §1 through 12, 2011; Ord. 2011-017 repealed; Ord.2011-003 §3, 2011)
Click here to be directed to the Comprehensive Plan (http://www.deschutes.org/compplan)
PAGE 2 OF 2 - EXHIBIT A TO ORDINANCE NO. 2018-008
Sectfow 3.4 Rural, ecovLowt.H
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 o f 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 Sales 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 Tots
• 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 — 20I I
CHAPTER 3 RURAL GROWTH MANAGEMENT SECTION 3.4 RURAL ECONOMY
EXHIBIT B TO ORDINANCE NO. 2018-008
I
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
DESCHUTES COUNTY COMPREHENSIVE PLAN — 2011
CHAPTER 3 RURAL GROWTH MANAGEMENT SECTION 3.4 RURAL ECONOMY
EXHIBIT B TO ORDINANCE NO. 2018-008
Tong -term contributions as a tourist destination, to employee retention, and locational
decisions for industrial recruitment.
Rural Commercial and Rural Industrial
In Deschutes County some'"~- arc _ `andful of properties are zoned Rural Commercial and
Rural Industrial. These initial applications for the zoning designations recognize uses that
predated State land use laws. However, it may be in the best interest of the County to provide
opportunities for the establishment of nNew Rural Industrial and Rural Commercial properties,
when they are appropriate and regulations are met. Requests to re -designate property as Rural
Commercial or Rural Industrial will be reviewed on a property -specific basis in accordance with
state and local regulations. and additional
Rural Commercial
The county may apply the Rural Commercial plan designation applies to property within specific
existingexception 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 designation -applies to 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.
DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011
CHAPTER 3 RURAL GROWTH MANAGEMENT SECTION 3.4 RURAL ECONOMY
EXHIBIT B TO ORDINANCE NO. 2018-008
3
Existing 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
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 -I0).
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
ExistingRural Industrial Designated Exception Areas
The Redmond Military site consists of tax lot 1513000000116 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 1 1 located west of the Burlington Northern -Santa
4
DESCHUTES COUNTY COMPREHENSIVE PLAN — 2011
CHAPTER 3 RURAL GROWTH MANAGEMENT SECTION 3.4 RURAL ECONOMY
EXHIBIT B TO ORDINANCE NO. 2018-008
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 1612226A000 1 1), and on the south by EFU-zoned
property owned by the City of Bend.
Bend Auto Recyclers consists of tax lot 171203000011 I and is 13.41 acres, bounded by
Highway 97 to the west, and Rural Residential (MUA- 10) lands to east, north and south.
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 another 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 — 201 I
CHAPTER 3 RURAL GROWTH MANAGEMENT SECTION 3.4 RURAL ECONOMY
EXHIBIT B TO ORDINANCE NO. 2018-008
5
Sect%ow 3.4 R.u.r& L ecowowt.Po!lcfes
Goal and Policies
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.
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 Tess 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
EXHIBIT B TO ORDINANCE NO. 2018-008
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
15130000001 16), Deschutes Junction (Tax lot 161226C000301, Tax lot
161226C000300, Tax lot 161226C0001 I 1 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 -I2 -26C-300 and Tax Lot 203 on Assessor's Map 16 -I2 -26A-
300
6-12-26A-
300 and portions of Tax Lot 1 1 1 on Assessor's Map 16-12-26C-111 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 — 201
CHAPTER 3 RURAL GROWTH MANAGEMENT REFERENCES
EXHIBIT B TO ORDINANCE NO. 2018-008
7
Policy 3.4.27
Policy 3.4.28
Policy 3.4.29
Policy 3.4.30
Policy 3.4.31
Policy 3.4.32
Policy 3.4.33
Policy 3.4.34
Policy 3.4.35
Policy 3.4.36
Combining Zone, which will limit the uses to storage, crushing, processing, sale
and distribution of minerals, subject to conditional use and site plan approval.
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.
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.
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.
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.
Residential and industrial uses shall be served by DEQ approved on-site sewage
disposal systems.
Residential and industrial uses shall be served by on-site wells or public water
systems.
Community sewer systems shall not be allowed in Rural Industrial zones.
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.
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.
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
EXHIBIT B TO ORDINANCE NO. 2018-008
secti,ow 5.22 Legi,sLati-ve ft%stoT
Background
This section contains the legislative history of this Comprehensive Plan.
Table 5.1 1.1 Comprehensive Plan Ordinance History
Ordinance
Date Adopted/
Effective
Chapter/Section
Amendment
2011-003
8-10-1 1/ 1 1-9-1 I
All, except
Transportation, Tumalo
and Terrebonne
Community Plans,
Deschutes Junction,
Destination Resorts and
ordinances adopted in
2011
Comprehensive Plan update
201 1-027
10-31-1 1 / 1 1-9-1 I
2.5, 2.6, 3.4, 3.10, 3.5,
4.6, 5.3, 5.8, 5. I I ,
23.40A, 23.40B,
23.40.065, 23.01.010
Housekeeping amendments to
ensure a smooth transition to
the updated Plan
2012-005
8-20-12/11-19-12
23.60, 23.64 (repealed),
3.7 (revised), Appendix C
(added)
Updated Transportation
System Plan
2012-012
8-20-12/8-20-12
4.1, 4.2
La Pine Urban Growth
Boundary
20 12-0 16
12-3-12/3-4-13
3.9
Housekeeping amendments to
Destination Resort Chapter
2013-002
1-7-13/1-7-13
4.2
Central Oregon Regional
Large -lot Employment Land
Need Analysis
2013-009
2-6-13/5-8-13
1.3
Comprehensive Plan Map
Amendment, changing
designation of certain
property from Agriculture to
Rural Residential Exception
Area
2013-012
5-8-13/8-6-13
23.01.010
Comprehensive Plan Map
Amendment, including certain
property within City of Bend
Urban Growth Boundary
2013-007
5-29-13/8-27-13
3.10, 3.1 1
Newberry Country: A Plan
for Southern Deschutes
County
Page 1 of 4 — EXHIBIT C TO ORDINANCE NO. 2018-008
2013-016
10-21-13/10-21-13
23.01.010
Comprehensive Plan Map
Amendment, including certain
property within City of Sisters
Urban Growth Boundary
2014-005
2-26-14/2-26-14
23.01.010
Comprehensive Plan Map
Amendment, including certain
property within City of Bend
Urban Growth Boundary
2014-012
4-2-14/7-1-14
3.10, 3. I I
Housekeeping amendments to
Title 23.
2014-021
8-27-14/11-25-14
23.01.010,
5.10
Comprehensive Plan Map
Amendment, changing
designation of certain
property from Sunriver Urban
Unincorporated Community
Forest to Sunriver Urban
Unincorporated Community
Utility
2014-021
8-27-14/11-25-14
23.01.010,
5.10
Comprehensive Plan Map
Amendment, changing
designation of certain
property from Sunriver Urban
Unincorporated Community
Forest to Sunriver Urban
Unincorporated Community
Utility
2014-027
12-15-14/3-31-15
23.01.010,
5.10
Comprehensive Plan Map
Amendment, changing
designation of certain
property from Agriculture to
Rural Industrial
2015-021
11-9-15/2-22-16
23.01.010
Comprehensive Plan Map
Amendment, changing
designation of certain
property from Agriculture to
Surface Mining.
2015-029
11-23-15/11-30-15
23.01.010
Comprehensive Plan Map
Amendment, changing
designation of certain
property from Tumalo
Residential 5 -Acre Minimum
to Tumalo Industrial
2015-018
12-9-15/3-27-16
23.01.010,
2.2, 4.3
Housekeeping Amendments
to Title 23.
Page 2 of 4 — EXHIBIT C TO ORDINANCE NO. 2018-008
2015-010
12-2-15/12-2-15
2.6
Comprehensive Plan Text and
Map Amendment recognizing
Greater Sage -Grouse Habitat
Inventories
2016-001
12-21-15/04-5-16
23.01.010;
5.10
Comprehensive Plan Map
Amendment, changing
designation of certain
property from, Agriculture to
Rural Industrial (exception
area)
2016-007
2-10-16/5-10-16
23.01.010;
5.10
Comprehensive Plan
Amendment to add an
exception to Statewide
Planning Goal 11 to allow
sewers in unincorporated
lands in Southern Deschutes
County
2016 -005
11-28-16/2-16-17
23.01.010,
2.2, 3.3
Comprehensive Plan
Amendment recognizing non -
resource lands process
allowed under State law to
change EFU zoning
2016-022
9-28-16/1 1-14-16
23.01.010,
1.3, 4.2
Comprehensive plan
Amendment, including certain
property within City of Bend
Urban Growth Boundary
2016-029
12-14-16/12/28/16
23.01.010
Comprehensive Plan Map
Amendment, changing
designation of certain
property from, Agriculture to
Rural Industrial
2017-007
10-30-17/10-30-17
23.01.010
Comprehensive Plan Map
Amendment, changing
designation of certain
property from Agriculture to
Rural Residential Exception
Area
2018-002
1-3-18/1-25-18
23.01, 2.6
Comprehensive Plan
Amendment permitting
churches in the Wildlife Area
Combining Zone
Page 3 of 4 — EXHIBIT C TO ORDINANCE NO. 2018-008
2018-006
8-22-18/11-20-18
23.01.010, 5.8, 5.9
Housekeeping Amendments
correcting tax lot numbers in
Non -Significant Mining Mineral
and Aggregate Inventory;
modifying Goal 5 Inventory of
Cultural and Historic
Resources
2018-011
9-12-18/12-11-18
23.01.010
Comprehensive Plan Map
Amendment, changing
designation of certain
property from Agriculture to
Rural Residential Exception
Area
2018-005
9-19-18/10-10-18
23.01.010, 2.5, Tumalo
Community Plan,
Newberry Country Plan
Comprehensive Plan Map
Amendment, removing Flood
Plain Comprehensive Plan
Designation; Comprehensive
Plan Amendment adding Flood
Plain Combining Zone
purpose statement.
2018-008
9-26-18/10-26-18
23.01.010, 3.4
Comprehensive Plan
Amendment allowing for the
potential of new properties to
be designated as Rural
Commercial or Rural
Industrial
Page 4 of 4 — EXHIBIT C TO ORDINANCE NO. 2018-008
FINDINGS
I. PROPOSED PLAN AMENDMENT
The proposed amendments to Deschutes County's Comprehensive Plan are described
in Ordinance 2018-008, Exhibit A.
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 (the "Board") approved those applications.
Central Oregon LandWatch appealed those decisions to the Land Use Board of
Appeals ("LUBA"). 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 again approved the applications. In its decision, the Board
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, _
P3d _ (2017).
PAGE 1 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008
The Court of Appeals quoted two passages from the DCCP, 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 Tess 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's 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).
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
PAGE 2 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008
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 DCCP 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
Oregon Revised Statutes ("ORS"), Oregon Administrative Rules ("OAR"), the DCCP,
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 DCCP.
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 DCCP only. The County lacks specific criteria in
the Deschutes County Code Titles 18, 22 or 23 for reviewing a legislative plan
amendment. Nonetheless, since the County is initiating this plan amendment, the
County bears the responsibility for satisfying that the amendments are consistent with
the Statewide Planning Goals, ORS, OAR, and the existing DCCP.
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) — DCCP
PAGE 3 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008
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.
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 the DCCP because the amendments are 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.
PAGE 4 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008
* 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 DCCP 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[.]
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 DCCP 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
PAGE 5 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008
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.
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
PAGE 6 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008
The parameters for evaluating specific amendments to the DCCP 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 the Board's initiation of legislative changes to the
DCCP. 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 DCCP 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 ORS, OAR, and the DCCP. 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
PAGE 7 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008
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 ORS, OAR, and the DCCP. 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 ORS, OAR, and the DCCP. 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 ORS, OAR,a nd the DCCP. 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 DCCP
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 ORS, OAR, the DCCP. The basis behind
the two decisions was an interpretation that the DCCP 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.
PAGE 8 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008
As discussed below in Section (4), the DCCP 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 DCCP 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 ORS, OAR, and the DCCP. 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.
* 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);
PAGE 9 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008
(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 ORS, OAR, and
the DCCP. 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.
* 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 ORS, OAR, and the DCCP. 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
PAGE 10 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008
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.
*Goals 15 through 19
Finding: These goals are not applicable to any amendments to the DCCP 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.
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 the county. However, Policies 2.2.3 and 2.2.4
recognize, as does the discussion in the introduction, that there are properties in the
PAGE 11 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008
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 ORS, OAR, and the DCCP.
The express reference to ORS and OAR 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.
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
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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.
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 the 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
PAGE 13 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008
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
the 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.
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),
PAGE 14 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008
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 the DCCP 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
concludes 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 ORS, OAR, and the DCCP and the
Deschutes County code, in order to promote economic development in the county.
Based upon the above findings, the Board concludes that the proposed amendments
are consistent with applicable ORS, OAR, and the DCCP.
PAGE 15 of 15 — EXHIBIT "D" TO ORDINANCE 2018-008
-"ES
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 September 26, 2018
DATE: September 20, 2018
FROM: Nicole Mardell, Community Development,
TITLE OF AGENDA ITEM:
FIRST AND SECOND READING: Ordinance No. 2018-008, Rural Commercial and Rural
Industrial Amendments
BACKGROUND AND POLICY IMPLICATIONS:
The Board of Commissioners will consider first and second reading of Ordinance 2018-008
with adoption by emergency. The ordinance includes amendments to the Deschutes County
Comprehensive Plan allowing for the potential of new properties to be designated as Rural
Commercial or Rural Industrial.
FISCAL IMPLICATIONS: None.
ATTENDANCE: Nicole Mardell, Associate Planner