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2019-68-Ordinance No. 2019-003 Recorded 2/20/2019IE D LEGAL COUNSEL Recorded in Deschutes County CJ2019-68 Nancy Blankenship, County Clerk Commissioners' Journal 02/20/2019 8:53:49 AM O�GqV"fES. CbC�< II � I I II II ILII II I II II I IIII III 2019-68 For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Ordinance Amending Deschutes County Code Title 23, the Deschutes County Comprehensive Plan, * ORDINANCE NO. 2019-003 to Change the Comprehensive Plan Map Designation for Certain Property From Agriculture to Redmond Urban Growth Area and Declaring an Emergency. WHEREAS, in 2010, 2011, and 2012, Deschutes, Crook, and Jefferson counties and their respective cities recognized that to provide a more diversified economic base for the region, there was a need for larger lots that may not have been available in Central Oregon cities on their own; and WHEREAS, these counties and their respective cities undertook a regional evaluation of the economic opportunities associated with users of large industrial parcels in the Central Oregon region, resulting in a document called the Central Oregon Regional Economic Opportunity Analysis, later revised to become the Central Oregon Large Lot Industrial Land Needs Analysis ("the Analysis"); and WHEREAS, these counties and their respective cities, 1,000 Friends of Oregon, and staff from the Department of Land Conservation and Development initiated rulemaking to address the policy concepts focusing on Central Oregon's short-term need for large lot industrial sites, resulting in the adoption of Oregon Administrative Rules (OAR) 660-024-0040 and 660-024-0045, outlining the economic need for large lot industrial sites in Central Oregon as well as the definitions and process by which such land could be supplied and utilized; and WHEREAS, in 2013, per the criteria of OAR 660-024-0040 and 660-024-0045, an intergovernmental agreement (IGA) between the region's jurisdictions and the Central Oregon Intergovernmental Council (COIC) was signed, giving oversight of the site selection and management of the Large Lot Industrial Land Program to COIL; and WHEREAS, in 2013, per the criteria of OAR 660-024-0040 and 660-024-0045, Deschutes, Crook, and Jefferson Counties, and the City of Redmond adopt policies, findings, and the Analysis into their Comprehensive Plans; and WHEREAS, the City of Redmond, in coordination with Deschutes County and Department of State Lands (DSL), conducted an extensive analysis of potential sites and ultimately submitted the subject property, known as the South Redmond Tract, to the Large Lot Industrial Lands Program, which was accepted into the program by COIC in 2015; and WHEREAS, the Oregon Department of State Lands initiated an amendment (Planning Division File No. 247 -18 -000751 -PA) to the Deschutes County Comprehensive Plan Map to change a portion of the subject property PAGE 1 OF 3 - ORDINANCE NO. 2019-003 from an Agricultural (AG) designation to a Redmond Urban Growth Area (RUGA) designation, and amendments to the Comprehensive Plan; and WHEREAS, after notice was given in accordance with applicable law, a public hearing was held on November 27, 2018, before the Deschutes County Hearings Officer and, on December 10, 2018, the Hearings Officer recommended approval of the Comprehensive Plan Map change; and WHEREAS, after notice was given in accordance with applicable law, a de novo public hearing was held on February 12, 2019, before the Board of County Commissioners ("Board"); and WHEREAS, the Board, after review conducted in accordance with applicable law, approved as detailed above the Comprehensive Plan map and text amendments; now, therefore, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ORDAINS as follows: Section 1. AMENDMENT. DCC Section 23.01.010, Introduction, is amended to read as described in Exhibit "A" attached and incorporated by reference herein, with new language underlined. Section 2. AMENDMENT. DCC Title 23, Deschutes County Comprehensive Plan Map, is amended to change the plan designation for certain property described in Exhibit `B" and depicted on the map set forth as Exhibit "C", with both exhibits attached and incorporated by reference herein, from Agriculture to Redmond Urban Growth Area. Section 3. AMENDMENT. Deschutes County Comprehensive Plan Chapter 4, Urban Growth Management, is amended to read as described in Exhibit "D" attached and incorporated by reference herein, with new language underlined. Section 4. AMENDMENT. Deschutes County Comprehensive Plan Section 5.12, Legislative History, is amended to read as described in Exhibit "E" attached and incorporated by reference herein, with new language underlined. Section 5. FINDINGS. The Board adopts as its findings in support of this Ordinance, the Decision of the Hearings Officer as set forth in Exhibit "F," and incorporated by reference herein. PAGE 2 OF 3 - ORDINANCE NO. 2019-003 Section 6. EMERGENCY. This Ordinance being necessary for the immediate preservation of the public peace, health and safety, and to support the City of Redmond's timely efforts supporting the Large Lot Industrial Land Program, an emergency is declared to exist, and this Ordinance takes effect thirty days from adoption. Dated this of r-2- , 2019 ATTEST: Recording cretary BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON PHILIP G. HE ERSON, Chair PATTI ADAIR, Vice -Chair ANTHONY DEBONE, Commissioner Date of 1st Reading: /"day of F�I.L„ C ®, 2019. Date. of 2nd Reading / day ofF' P �(Jijn (-q . 2019. 0 Ij Record of Adoption Vote: Commissioner Yes No Abstained Excused Philip G. Henderson Patti Adair Anthony DeBone _ Effective date: 14 day of CA J '2019. PAGE 3 OF 3 - ORDINANCE NO. 2019-003 Chapter 23.01 COMPREHENSIVE PLAN Chapter 23.01 COMPREHENSIVE PLAN 23.01.010. Introduction. A. The Deschutes County Comprehensive Plan, adopted by the Board in Ordinance 2011-003 and found on the Deschutes County Community Development Department website, is incorporated by reference herein. B. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2011-027, are incorporated by reference herein. C. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2012-005, are incorporated by reference herein. D. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2012-012, are incorporated by reference herein. E. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2012-016, are incorporated by reference herein. F. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2013-002, are incorporated by reference herein. G. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2013-009, are incorporated by reference herein. H. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2013-012, are incorporated by reference herein. I. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2013-007, are incorporated by reference herein. 1 The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2014-005, are incorporated by reference herein. K. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2014-006, are incorporated by reference herein. L. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2014-012, are incorporated by reference herein. M. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2014-021, are incorporated by reference herein. N. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2014-027, are incorporated by reference herein. O. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2015-021, are incorporated by reference herein. P. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2015-029, are incorporated by reference herein. Q. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2015-018, are incorporated by reference herein. R. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2015-010, are incorporated by reference herein. S. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2016-001, are incorporated by reference herein. T. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2016-022, are incorporated by reference herein. U. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2016-005, are incorporated by reference herein. PAGE 1 OF 2 — EXHIBIT A TO ORDINANCE NO. 2019-003 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. DD. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2019-002, are incorporated by reference herein. EE. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2019-001, are incorporated by reference herein. FF The Deschutes County Comprehensive Plan amendments adopted by the Board in Ordinance 2019-003 are incorporated by reference herein. (Ord. 2019-003 §1, 2019; Ord. 2019-001 §1, 2019; Ord. 2019-002 §1, 2019; Ord. 2018-008 §1, 2018; Ord. 2018-005 §2,2018; Ord. 2018-011 §1, 2018; Ord. 2018-006 §1, 2018; Ord. 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. 2019-003 EXHIBIT B Proposed Large Lot Industrial Expansion Area Legal Description, Subject Property Willamette Meridian, Oregon T. 15 S., R. 13 E., sec. 32, lot 1, E1/2SW1/4, SWI/4SW1/4, and SE1/4; sec. 33, excepting therefrom N1/2NW1/4, and N1/2NE1/4. RREA OS&C Legend Proposed Plan Amendment Boundary 1 Redmond Urban Growth Boundary Comprehensive Plan Designation AG -Agriculture OS&C - Open Space & Conservation RREA - Rural Residential Exception Area ALF �h Q� N City of _�CO I o Redmond o o 4 S� N S � Q QUO fie' sv U Plan Amendment from Agriculture (AG) to Redmond Urban Growth Area (RUGA) PROPOSED COMPREHENSIVE PLAN MAP Exhibit "C" to Ordinance 2019-003 V V 0 0.125 0.25 0.5 Miles January 16, 2019 BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON Philip G. Henderson, Chair Patti Adair, Vice Chair Tony DeBone, Commissioner ATTEST: Recording Secretary Dated this day of , 2019 Effective Date: , 2019 Lt.rb a vi, C -i rowth EXHIBIT "D" TO ORDINANCE NO. 2019-003 chapter 4 Mav1,agevwewt sect%ovu -+.:L (vutroo u,ct%ow Background A major emphasis of Oregon's land use planning program is directing new development into urban areas. Statewide Planning Goal 14, Urbanization, requires cities, in cooperation with counties, to create Urban Growth Boundaries (UGBs). The UGBs are legal lines that contain lands that are anticipated to urbanize over a 20 -year period. UGBs allow cities to adequately plan for future urban facilities and services. State laws require that UGBs be adopted by both the city and the county. Besides the UGBs which define the land needed for city expansion over 20 years, some cities adopt Urban Reserve Areas (URAs), which define land needed beyond a 20 year horizon, typically representing an additional 10 to 30 year land supply. By adopting an URA a city can better plan for expansion and growth. Like UGBs, URAs are done in a partnership between a county and the city. Deschutes County has four incorporated cities. Bend, Redmond and Sisters were incorporated before 1979. The City of La Pine incorporated on November 7, 2006. Bend, Redmond and Sisters' Comprehensive Plans are coordinated with the County. Certain elements are adopted into the County's. In addition, the cities and the County maintain urban growth area zoning ordinances and cooperative agreements for mutually administering the unincorporated urbanizing areas. These areas are located outside city limits but within UGBs. La Pine adopted a Comprehensive Plan and UGB in 2012. Until La Pine adopts its own land use regulations, County land use regulations will continue to be applied inside the city limits though a joint management agreement. In addition to cities and the associated UGBs and URAs, there are rural locations around the County that contain urban level development. These areas generally existed before the Oregon land use system was enacted in the early 1970s. In 1994 the Land Conservation and Development Commission wrote a new Oregon Administrative Rule (OAR), 660-22, to classify and regulate these unincorporated communities. The OAR created four categories of unincorporated communities and required the County to evaluate existing rural developments under the new Rule. Purpose The Urban Growth Management chapter, in concert with the other chapters of this Plan, specifies how Deschutes County will work with cities and unincorporated communities to accommodate growth while preserving rural character and resource lands. The following issues are covered in this chapter: • Urbanization (Section 4.2) ■ Unincorporated Communities Overview (Section 4.3) ■ La Pine Urban Unincorporated Community (Section 4.4) ■ Sunriver Urban Unincorporated Community (Section 4.5) ■ Terrebonne Rural Community Plan (Section 4.6) DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.1 INTRODUCTION EXHIBIT "D" TO ORDINANCE NO. 2019-003 ■ Tumalo Rural Community Plan (Section 4.7) ■ Black Butte Ranch and Inn of the 7' Mountain/Widgi Creek Rural Resorts (Section 4.8) ■ Rural Service Centers (Section 4.9) Goal 14 recognizes the following: Statewide Planning Goal 14 Urbanization "To provide for an orderly and efficient transition from rural to urban land use, to accommodate urban population and urban employment inside urban growth boundaries, to ensure efficient use of land, and to provide for livable communities." Excerpt from Goal 14 Planning Guidelines "`Plans should designate sufficient amounts of urbanizable land to accommodate the need for further urban expansion, taking into account (1) the growth policy of the area, (2) the needs of the forecast population; (3) the carrying capacity of the planning area, and (4) open space and recreational needs." DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.1 INTRODUCTION EXHIBIT "D" TO ORDINANCE NO. 2019-003 <seoti ova, 4.2 L trbaw1'zat�ow Background This section describes the coordination between the County and the cities of Bend, La Pine, Redmond and Sisters on Urban Growth Boundaries (UGBs) and Urban Reserve Areas (URAs). Statewide Planning Goal 2 recognizes the importance of coordinating land use plans. "City, county, state and federal agency and special district plans and actions related to land use shall be consistent with the comprehensive plans of cities and counties and regional plans adopted under ORS Chapter 268." Oregon Revised Statute 197.015(5) goes further to define comprehensive plan coordination. "A plan is "coordinated" when the needs of all levels of governments, semipublic and private agencies and the citizens of Oregon have been considered and accommodated as much as possible." Population An important basis for coordinating with cities is adopted population projections. Having an estimate of anticipated population is the first step to planning for future growth and conservation. ORS 195.025(1) requires counties to coordinate local plans and population forecasts. The County oversees the preparation of a population forecast in close collaboration with cities. This is important because the population of the County has increased significantly in recent decades and a coordinated approach allows cities to ensure managed growth over time. Table 4.2.1 — Population Growth in Deschutes County 1980 to 2010 Sources 1 1980 1990 2000 2010 Population Research Center July I estimates 62,500 75,600 116,600 172,050 US Census Bureau April I counts 62,142 74,958 115,367 157,733 Source: As noted above In 1996 Bend, Redmond, Sisters and the County reviewed recent population forecasts from the Portland State University Center Population and Research Center (PRC) and U.S. Census Bureau, Department of Transportation, Woods and Poole, Bonneville Power Administration and Department of Administrative Services Office of Economic Analysis. After reviewing these projections, all local governments adopted a coordinated population forecast. It was adopted by Deschutes County in 1998 by Ordinance 98-084. The results of the 2000 decennial census and subsequent population estimates prepared by the PRC revealed that the respective populations of the County and its incorporated cities were growing faster than anticipated under the 1998 coordinated forecast. The cites and the County re-engaged in a coordination process between 2002 and 2004 that culminated with the County adopting a revised population forecast that projected population to the year 2025. It was adopted by Ordinance 2004-012 and upheld by the Land Use Board of Appeals on March 28, 2005. The following table displays the 2004 coordinated population forecast for Deschutes County and the UGBs of the cities of Bend, Redmond, and Sisters. 4 DESCHUTES COUNTY COMPREHENSIVE PLAN — 2011 CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION EXHIBIT "D" TO ORDINANCE NO. 2019-003 Table 4.2.2 - Coordinated Population Forecast 2000 to 2025 Year Bend UGB Redmond UGB Sisters UGB -'"""'-'-' -"-- County Total County 2000 52,800 15,505 975 47,320 116,600 2005 69,004 19,249 1,768 53,032 143,053 2010 81,242 23,897 2,306 59,127 166,572 2015 91,158 29,667 2,694 65,924 189,443 2020 100,646 36,831 3,166 73,502 214,145 2025 109,389 45,724 3,747 81,951 240,811 The process through which the County and the cities coordinated to develop the 2000-2025 coordinated forecast is outlined in the report titled "Deschutes County Coordinated Population Forecast 2000-2025: Findings in Support of Forecast." The fourth city in Deschutes County is the City of La Pine. Incorporated on November 7, 2006, the City of La Pine's 2006 population estimate of 1,590 was certified by PRC on December 15, 2007. As a result of La Pine's incorporation, Deschutes County updated its Coordinated Population Forecast with Ordinance 2009-006. The purpose of this modification was to adopt a conservative 20 year population forecast for the City of La Pine that could be used by city officials and the Oregon Department of Land Conservation and Development to estimate its future land need and a UGB. The following table displays the coordinated population forecast for Deschutes County, the UGBs of the cities of Bend, Redmond, and Sisters, and La Pine from 2000 to 2025. By extending tha arnwth rata to tha vaar 202.5. 1 a Pine's nnnulatinn will he 2.352. The non -urban unincorporated population decreases by 2,352 from its original projection of 81,951, to 79,599. Table 4.2.3 - Coordinated Population Forecast 2000 to 2025, Including La Pine Year Bend UGB Redmond UGB Sisters UGB La Pine UGB Unincorporated County Total County 2000 52,800 15,505 975 - 47,320 116,600 2005 69,004 19,249 1,768 - 53,032 143,053 2010 81,242 23,897 2,306 1,697 57,430 166,572 2015 91,158 29,667 2,694 1,892 64,032 189,443 2020 100,646 36,831 3,166 2,110 71,392 214,145 2025 109,389 45,724 3,747 2,352 79,599 240,811 Source: 2004 Coordinated Population Forecast for Deschutes County - updated 2009 2030 Population Estimate This Comprehensive Plan is intended to manage growth and conservation in the unincorporated areas of the County until 2030. Because the official population forecast extends only to 2025, County staff used conservative average annual growth rates from the adopted population forecast to estimate population out to 2030. The following table estimates Deschutes County population by extending the adopted numbers out an additional five years. DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 5 CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION EXHIBIT "D" TO ORDINANCE NO. 2019-003 Table 4.2.4 — Deschutes County 2030 Population Forecast Year Bend Redmond Sisters La Pine Unincorporated Total County UGB UGB UGB UGB County 2030 119,009 51,733 4,426 2,632 88,748 266,538 Smirre- Cnunty estimates based on the 2004 Coordinated Population Forecast as shown below Bend's average annual growth rate from 2025 to 2030 is 1.70% Redmond's average annual growth rate from 2025 to 2030 is 2.50% Sisters' based their population on forecasted rates of building growth, residential housing units, and persons per dwelling unit La Pine's average annual growth rate from 2025 to 2030 is 2.20% Deschutes County's unincorporated area average annual growth rate from 2025 to 2030 is 2.20% As the pie chart below indicates, if population occurs as forecasted, 67% of the County's population will reside in urban areas by 2030. In 2030 Unincorporated — Area Send_ 33% 45% Sisters mak, 2% 1 I La Pine Redmond 1% 199%b Figure 4.1 Deschutes County 2030 Estimated Population Such growth will undoubtedly require strategically managing the provision of public services and maintaining adequate amounts of residential, commercial and industrial lands. Growth pressures will also require programmatic approaches to maintain open spaces, natural resources, and functional ecosystems that help define the qualities of Deschutes County. Urban Growth Boundary Amendments Bend The City of Bend legislatively amended its UGB as part of a periodic review acknowledgment in December 2004. The Bend City Council and the Board of County Commissioners adopted concurrent ordinances that expanded the Bend UGB by 500 acres and satisfied a 20 year demand for industrial land. In July 2007, the Bend -La Pine School District received approvals to expand the City of Bend UGB to include two properties for the location of two elementary schools, one at the Pine Nursery, the other on Skyliner Road. In 2014, the Bend -La Pine School district received approval to include a 33 -acre site within the UGB near Skyliners Road to facilitate the construction of a public middle school. The Bend City Council and the Board of County Commissioners approved a legislative amendment to the Bend UGB in September 2016. The adopted amendment added 2,380 acres of land intended to satisfy a 20 -year land need for needed housing, employment, and public uses from 2008 to 2028. The adopted UGB amendment also satisfied the terms of a 2010 Remand DESCHUTES COUNTY COMPREHENSIVE PLAN — 2011 CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION EXHIBIT "D" TO ORDINANCE NO. 2019-003 Order from the Oregon Land Conservation and Development Commission (10 -REMAND - PARTIAL ACKNOW-001795). The City of Bend UGB amendment identified 5 existing neighborhood typologies within the City, with the "Transect" being the defined neighborhood typology which "provides a transitional residential development pattern from urban to rural using a variety of housing types integrated with the surrounding natural landscape to minimize the impact on sensitive ecosystems, wildlife and to reduce the risk of wildfire." The City applied this Transect concept to specific areas added to the UGB identified as the "Shevlin Area" and the "West Area" and created area -specific policies for those areas to recognize the unique characteristics of the area and create a transition from higher densities within the city to lower densities extending westward to the City of Bend UGB. In coordination with the city, Deschutes County has continued this concept for the areas in the county on the west side of Bend adjacent to the "Shevlin" and "West Area" in its Rural Housing elements and policies found in Chapter 3 of this Comprehensive Plan. Sisters The City of Sisters legislatively amended its UGB in September 2005 when its City Council and the Board of County Commissioners adopted respective ordinances. The Sisters UGB expansion covered 53 acres and satisfied a 20 year demand for residential, commercial, light industrial, and public facility land. In March 2009, Sisters amended their UGB to facilitate the establishment of a 4 -acre fire training facility for the Sisters/Camp Sherman Fire District. Redmond The City of Redmond legislatively amended its UGB in August 2006 when its City Council and rhe Rr� d of r-nnnty re-% mmiceinnoarc nrinntPd rPcnPrtive ordinnnrec. The Redmond UGB the __., of ..........y Co............. ne. .. r --- --r---.. _ _. _...- --- - -- - - - -- expansion covered 2,299 acres and satisfied a 20 year demand for residential and neighborhood commercial land. In February 2019 Redmond amended its UGB through a joint process when its City Council and the Board of County Commissioners adopted respective ordinances. This expansion covered 949 acres in total: 789 acres was designated for large lot industrial development in accordance with the Central Oregon Regional Large Lot Industrial Lands Program, and 160 acres allowed for the expansion of the existing Deschutes County Fairgrounds and Oregon Military Department's National Guard Armory. La Pine In 2012 La Pine adopted its first Comprehensive Plan. La Pine established a UGB that matches the city limits, because the City contains sufficient undeveloped land for future housing, commercial and industrial needs over a 20 -year period. The Plan map includes land use designations intended to provide an arrangement of uses to ensure adequate and efficient provision of public infrastructure for all portions of the City and UGB. Urban Reserve Area Redmond In December 2005, Redmond City Council and the Board of County Commissioners adopted a 5,661 acre URA for the City. It is the first URA in Central Oregon because most cities find planning farther into the future than the 20 -year UGB timeframe, challenging. DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION EXHIBIT "D" TO ORDINANCE NO. 2019-003 Coordination As noted above, Statewide Goal 2 and ORS promote land use planning coordination. The purposes of the urbanization goals and policies in this section are to provide the link between urban and rural areas, and to provide some basic parameters within which the urban areas of Deschutes County can develop, although the specific comprehensive plan for each community remains the prevailing document for guiding growth in its respective area. These policies permit the County to review each city's comprehensive plan to ensure effective coordination. The Redmond and Deschutes County Community Development Departments received the Oregon Chapter of American Planning Association's (OAPA) Professional Achievement in Planning Award in 2006 for the "Redmond Urban Reserve Area / Urban Growth Boundary Expansion Project.". The following quote taken from the Oregon Chapter of the American Planning Association's 2006 Awards Program shows why the Redmond Community Development Department was chosen for this award. "An outstanding effort j`ort to address Redmond's rapid population growth, including the successful designation of an Urban Reserve and the imminent designation of an Urban Growth Boundary, a "Framework Plan" with a requirement for master planning, and the establishment of "Great Neighborhood Principles." Central Oregon Large Lot Industrial Land Need Analysis During the 1990s, the Central Oregon region experienced a dramatic transformation from an economy concentrated largely in wood products into a service based economy serving a growing and diverse tourism and household base. Accelerated in -migration and tourism growth ...— t— raniri ar^n^mit- avnancinn acralatinn in hnma nrirpS anri a cvctr�matir chift in them. gave—Y w . nr.....v..v......,.� a...,... y r...__ , "_ ._ %___... _._ _...._ ... _.._ local economy from goods producing activities to service oriented industries. While initially representing a diversification of the local economy, this shift led to an over -reliance upon these types of industries. During the recent recession, the regional economy's vulnerabilities became apparent. Suitable land for today's industrial development forms emerged as one of Oregon's most severe development challenges. In 2010, 2011, and 2012, Deschutes, Crook and Jefferson counties and their respective cities, undertook an unprecedented regional evaluation of the economic opportunities and constraints associated with users of large industrial parcels in the Central Oregon region. The purpose of this evaluation was to aid in providing a more diversified economic base for the region that would accommodate industrial uses with a need for larger lots than possibly may be currently available in any of the Central Oregon cities. As part of that evaluation, Deschutes County hired a consultant to draft an analysis of Central Oregon's opportunities, competitiveness, ability, and willingness to attract more basic industries. The analysis focused specifically on industries that require large lots. The result was a document called the Central Oregon Regional Economic Opportunity Analysis, and was the basis for Ordinance 2011-017, dated May 31, 2011. Ordinance 2011-017 was appealed to the Land Use Board of Appeals by 1,000 Friends of Oregon (" 1,000 Friends"). The appeal was stayed in early 2012 to allow Deschutes County, the Governor's Office, and 1,000 Friends to explore a settlement, which was ultimately reached in DESCHUTES COUNTY COMPREHENSIVE PLAN — 2011 CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION EXHIBIT "D" TO ORDINANCE NO. 2019-003 April, 2012. The settlement consisted of policy concepts focusing entirely on Central Oregon's short-term need for large -lot industrial sites as well as a commitment from the Department of Land Conservation and Development ("DLCD") to initiate rule-making that summer. The three counties, their respective cities, 1,000 Friends, and DLCD staff then engaged in drafting a proposed rule. In August, the final draft of that rule was then sent to the Oregon Land Conservation and Development Commission ("LCDC"). As a result, in November, the LCDC adopted Oregon Administrative Rule (OAR) 660-024-0040 and 660-024-0045. That rule provides that that the large lot industrial land need analysis agreed upon by all of the parties, once adopted by each of the participating governmental entities, would be sufficient to demonstrate a need for up to nine large industrial sites in Central Oregon. Six of the sites will be made available initially. Three more sites may be added under the rule as the original sites are occupied. After the adoption of the new OARS, Deschutes County voluntarily repealed Ordinance 2011-017 and adopted a new ordinance, Ordinance 2013-002, in accordance with the OARS. Utilizing the new OARS, Ordinance 2013-002 emphasized Central Oregon' short term need for a critical mass of competitive and diverse vacant, developable industrial sites. An additional necessary component is an intergovernmental agreement ("IGA") between the region's jurisdictions and the Central Oregon Intergovernmental Council ("COIC"). Through the IGA, COIC will provide oversight of the short-term land supply of large -lot industrial sites to enable the region to become competitive in industrial recruitment. Once each of the three counties and their respective cities adopt similar ordinances and enter into an IGA with COIC, the large lot sites will enable industrial recruitment opportunities to attract potential industrial users to consider the region that may not have otherwise without the availability of these large lots. The 1/`A L_ r`r11r^ ...! «L,,. ..:«:.... -A ..t:.. � CA A-0 Q 1A 1'Z 1\7/1 Uetween CO -F 1IC an U-1 Luc regi s cities a,,d couIRJGJ vias exec L u VII ! LF 11 1. Lv � J. Participating local governments will review the program after all nine sites have been occupied or after ten years, whichever comes first. In February 2019 Deschutes County adopted Ordinance No. 2019-003, which implemented the large lot industrial policies defined by Oregon Administrative Rule (OAR) 660-024-0040 and 660-024-0045. The ordinance amended the Deschutes County Comprehensive Plan map to allow for 789 acres of a 949 -acre parcel owned by the Oregon Department of State Lands to be incorporated into the City of Redmond's UGB (the remaining 160 acres were transferred into the UGB pursuant to different criteria). This site referred to as the South Redmond Tract, was submitted to the Large Lot Industrial Lands program by the City of Redmond in 2015 after an extensive analysis of several potential sites utilizing the criteria of the adopted Central Oregon Large Lot Industrial Lands Needs Analysis ("the Analysis"). COIC accepted the property into the Large Lot Industrial (LLI) program on May 7, 2015. Subsequently, the City of Redmond amended its zoning code to add a Large Lot Industrial Zone, which addresses the requirements of the LLI program and ensures that properties with this zoning designation are to be utilized solely for large lot industrial or directly related purposes. DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION EXHIBIT "D" TO ORDINANCE NO. 2019-003 sect ova, -+.2 L trbovd%zat%ova, Pol,%cies Goals and Policies Goal I Coordinate with cities, special districts and stakeholders to support urban growth boundaries and urban reserve areas that provide an orderly and efficient transition between urban and rural lands. Policy 4.2.1 Participate in the processes initiated by cities in Deschutes County to create and/or amend their urban growth boundaries. Policy 4.2.2 Promote and coordinate the use of urban reserve areas. Policy 4.2.3 Review the idea of using rural reserves. Goal 2 Coordinate with cities, special districts and stakeholders on urban growth area zoning for lands inside urban growth boundaries but outside city boundaries. Policy 4.2.4 Use urban growth area zoning to coordinate land use decisions inside urban growth boundaries but outside the incorporated cities. Policy 4.2.5 Negotiate intergovernmental agreements to coordinate with cities on land use inside urban growth boundaries and outside the incorporated cities. Policy 4.2.6 Develop urban growth area zoning with consideration of the type, timing and L^+Catinn of nnhlir faCilitioc anti corvirot nrnvicinn Cnncictent with ritv nlans. Policy 4.2.7 Adopt by reference the comprehensive plans of Bend, La Pine, Redmond and Sisters, as the policy basis for implementing land use plans and ordinances in each city's urban growth boundary. Goal 3 Coordinate with cities, special districts and stakeholders on policies and zoning for lands outside urban growth boundaries but inside urban reserve areas. Policy 4.2.8 Designate the Redmond Urban Reserve Area on the County Comprehensive Plan Map and regulate it through a Redmond Urban Reserve Area (RURA) Combining Zone in Deschutes County Code, Title 18. Policy 4.2.9 In cooperation with the City of Redmond adopt a RURA Agreement consistent with their respective comprehensive plans and the requirements of Oregon Administrative Rule 660-021-0050 or its successor. Policy 4.2.10 The following land use policies guide zoning in the RURA. a. Plan and zone RURA lands for rural uses, in a manner that ensures the orderly, economic and efficient provision of urban services as these lands are brought into the urban growth boundary. b. New parcels shall be a minimum of ten acres. c. Until lands in the RURA are brought into the urban growth boundary, zone changes or plan amendments shall not allow more intensive uses or uses that 10 DESCHUTES COUNTY COMPREHENSIVE PLAN — 2011 CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION EXHIBIT "D" TO ORDINANCE NO. 2019-003 generate more traffic, than were allowed prior to the establishment of the RURA. d. For Exclusive Farm Use zones, partitions shall be allowed based on state law and the County Zoning Ordinance. e. New arterial and collector rights-of-way in the RURA shall meet the right-of- way standards of Deschutes County or the City of Redmond, whichever is greater, but be physically constructed to Deschutes County standards. f. Protect from development existing and future arterial and collector rights-of- way, as designated on the County's Transportation System Plan. g. A single family dwelling on a legal parcel is permitted if that use was permitted before the RURA designation. Policy 4.2.1 1 Collaborate with the City of Redmond to assure that the County -owned 1,800 acres in the RURA is master planned before it is incorporated into Redmond's urban growth boundary. Goal 4 To build a strong and thriving regional economy by coordinating public investments, policies and regulations to support regional and state economic development objectives in Central Oregon. Policy 4.2.12 Deschutes County supports a multi -jurisdictional cooperative effort to pursue a regional approach to establish a short-term supply of sites particularly designed to address out -of -region industries that may locate in Central Oregon. Policy 4.2.13 Deschutes County recognizes the importance of maintaining a large -lot industrial land supply that is readily developable in Central Oregon. Policy 4.2.14 The Central Oregon Regional Large Lot Industrial Land Need Analysis ("Analysis"), adopted by Ordinance 2013-002 is incorporated by reference herein. Policy 4.2.15 Within 6 months of the adoption of Ordinance 2013-002, in coordination with the participating local governments in Central Oregon, Deschutes County shall, execute an intergovernmental agreement ("IGA") with the Central Oregon Intergovernmental Council ("COIC") that specifies the process of allocation of large lot industrial sites among the participating local governments. Policy 4.2.16 In accordance with OAR 660-024-004 and 0045, Deschutes County, fulfilling coordination duties specified in ORS 195.025, shall approve and update its comprehensive plan when participating cities within their jurisdiction legislatively or through a quasi-judicial process designate regionally significant sites. Policy 4.2.17 Deschutes County supports Economic Development of Central Oregon ("EDCO"), a non-profit organization facilitating new job creation and capital investment to monitor and advocate for the region's efforts of maintaining an inventory of appropriate sized and located industrial lots available to the market Policy 4.2.18 Deschutes County will collaborate with regional public and private representatives to engage the Oregon Legislature and state agencies and their commissions to address public facility, transportation and urbanization issues that hinder economic development opportunities in Central Oregon. DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION EXHIBIT "D" TO ORDINANCE NO. 2019-003 Policy 4.2.19 Deschutes County will strengthen long-term confidence in the economy by building innovative public to private sector partnerships. 12 DESCHUTES COUNTY COMPREHENSIVE PLAN -2011 CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION EXHIBIT "D" TO ORDINANCE NO. 2019-003 seotb'ow 5.22 l._eg'bsLat�ve Wbstor� Background This section contains the legislative history of this Comprehensive Plan. Table S.12.1 Comprehensive Plan Ordinance History Ordinance Date Adopted/ Chapter/Section Amendment Effective All, except Transportation, Tumalo and Terrebonne 2011-003 8-10-1 1/ 1 1-9-1 1 Community Plans, Deschutes Junction, Comprehensive Plan update Destination Resorts and ordinances adopted in 2011 2.5, 2.6, 3.4, 3.10, 3.5, Housekeeping amendments to 2011-027 10-31-1 1 / 1 1-9-1 1 4.6, 5.3, 5.8, 5.1 1, 23.40A, 23.40B, ensure a smooth transition to 23.40.065, 23.01.010 the updated Plan 23.60, 23.64 (repealed), Updated Transportation 2012-005 8-20-12/11-19-12 3.7 (revised), Appendix C System Plan (added) 2012-012 8-20-12/8-20-12 4.1, 4.2 La Pine Urban Growth Boundary 2012-016 12-3-12/3-4-13 3.9 Housekeeping amendments to Destination Resort Chapter Central Oregon Regional 2013-002 1-7-13/1-7-13 4.2 Large -lot Employment Land Need Analysis Comprehensive Plan Map Amendment, changing 2013-009 2-6-13/5-8-13 1.3 designation of certain property from Agriculture to Rural Residential Exception Area Comprehensive Plan Map 2013-012 5-8-13/8-6-13 23.01.010 Amendment, including certain property within City of Bend Urban Growth Boundary Newberry Country: A Plan 2013-007 5-29-13/8-27-13 3.10, 3.1 1 for Southern Deschutes County DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 CHAPTER 5 SUPPLEMENTAL SECTIONS SECTION 5.12 LEGISLATIVE HISTORY EXHIBIT "E" TO ORDINANCE NO. 2019-003 DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 CHAPTER 5 SUPPLEMENTAL SECTIONS SECTION 5.12 LEGISLATIVE HISTORY EXHIBIT "E" TO ORDINANCE NO. 2019-003 Comprehensive Plan Map 2013-016 10-21-13/10-21-13 23.01.010 Amendment, including certain property within City of Sisters Urban Growth Boundary Comprehensive Plan Map 2014-005 2-26-14/2-26-14 23.01.010 Amendment, including certain property within City of Bend Urban Growth Boundary 2014-012 4-2-14/7-1-14 3.10, 3.1 1 Housekeeping amendments to Title 23. Comprehensive Plan Map Amendment, changing designation of certain 2014-021 8-27-14/11-25-14 23.01.010, 5.10 property from Sunriver Urban Unincorporated Community Forest to Sunriver Urban Unincorporated Community Utility Comprehensive Plan Map Amendment, changing designation of certain 2014-021 8-27-14/11-25-14 23.01.010, 5.10 property from Sunriver Urban Unincorporated Community_ Forest to Sunriver Urban Unincorporated Community Utility Comprehensive Plan Map Amendment, changing 2014-027 12-15-14/3-31-15 23.01.010, 5.10 designation of certain property from Agriculture to Rural Industrial Comprehensive Plan Map Amendment, changing 2015-021 11-9-15/2-22-16 23.01.010 designation of certain property from Agriculture to Surface Mining. Comprehensive Plan Map Amendment, changing 2015-029 11-23-15/11-30-15 23.01.010 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. DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 CHAPTER 5 SUPPLEMENTAL SECTIONS SECTION 5.12 LEGISLATIVE HISTORY EXHIBIT "E" TO ORDINANCE NO. 2019-003 DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 CHAPTER 5 SUPPLEMENTAL SECTIONS SECTION 5.12 LEGISLATIVE HISTORY EXHIBIT "E" TO ORDINANCE NO. 2019-003 Comprehensive Plan Text and 2015-010 12-2-15/12-2-15 2.6 Map Amendment recognizing Greater Sage -Grouse Habitat Inventories Comprehensive Plan Map Amendment, changing 2016-001 12-21-15/04-5-16 23.01.010; 5.10 designation of certain property from, Agriculture to Rural Industrial (exception area) Comprehensive Plan Amendment to add an exception to Statewide 2016-007 2-10-16/5-10-16 23.01.010; 5.10 Planning Goal I I to allow sewers in unincorporated lands in Southern Deschutes County Comprehensive Plan Amendment recognizing non - 2016 -005 11-28-16/2-16-17 23.01.010, 2.2, 3.3 resource lands process allowed under State law to change EFU zoning Comprehensive plan 2016-022 9-28-16/11-14-16 23.01.010, 1.3, 4.2 Amendment, including certain property within City Of Bend Urban Growth Boundary Comprehensive Plan Map Amendment, changing 2016-029 12-14-16/12/28/16 23.01.010 designation of certain property from, Agriculture to Rural Industrial Comprehensive Plan Map Amendment, changing 2017-007 10-30-17/10-30-17 23.01.010 designation of certain property from Agriculture to Rural Residential Exception Area Comprehensive Plan 2018-002 1-3-18/1-25-18 23.01, 2.6 Amendment permitting churches in the Wildlife Area Combining Zone DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 CHAPTER 5 SUPPLEMENTAL SECTIONS SECTION 5.12 LEGISLATIVE HISTORY EXHIBIT "E" TO ORDINANCE NO. 2019-003 DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 CHAPTER 5 SUPPLEMENTAL SECTIONS SECTION 5.12 LEGISLATIVE HISTORY EXHIBIT "E" TO ORDINANCE NO. 2019-003 Housekeeping Amendments correcting tax lot numbers in Non -Significant Mining Mineral 2018-006 8-22-18/11-20-18 23.01.010, 5.8, 5.9 and Aggregate Inventory; modifying Goal 5 Inventory of Cultural and Historic Resources Comprehensive Plan Map Amendment, changing 2018-011 9-12-18/12-11-18 23.01.010 designation of certain property from Agriculture to Rural Residential Exception Area Comprehensive Plan Map Amendment, removing Flood 23.01.010, 2.5, Tumalo Plain Comprehensive Plan 2018-005 9-19-18/10-10-18 Community Plan, Designation; Comprehensive Newberry Country Plan Plan Amendment adding Flood Plain Combining Zone purpose statement. Comprehensive Plan Amendment allowing for the 2018-008 9-26-18/10-26-18 23.01.010, 3.4 potential of new properties to be designated as Rural Commercial or Rural Industrial Comprehensive Plan Map Amendment changing designation of certain property from Surface Mining 2019-002 1-2-19/4-2-19 23.01.010, 5.8 to Rural Residential Exception Area; Modifying Goal 5 Mineral and Aggregate Inventory; Modifying Non - Significant Mining Mineral and Aggregate Inventory Comprehensive Plan and 2019-001 1-16-19/4-16-19 1.3, 3.3, 4.2, 5.10, 23.01 Text Amendment to add a new zone to Title 19: Westside Transect Zone. DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 CHAPTER 5 SUPPLEMENTAL SECTIONS SECTION 5.12 LEGISLATIVE HISTORY EXHIBIT "E" TO ORDINANCE NO. 2019-003 2019-003 1 TBD/TBD 123.01.010, 4.2 Comprehensive Plan Map Amendment changing designation of certain property from Agriculture to Redmond Urban Growth Area for the Large Lot DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011 CHAPTER 5 SUPPLEMENTAL SECTIONS SECTION 5.12 LEGISLATIVE HISTORY EXHIBIT "E" TO ORDINANCE NO. 2019-003 DESCHUTES COUNTY HEARINGS OFFICER DECISION FILE NUMBER: 247 -18 -000751 -PA APPLICANT/OWNER: Oregon Department of State Lands (DSL) John M. Swanson, Real Property Planner 775 Summer St. NE, Ste. 100 Salem, OR 97301 APPLICANT'S AGENT: Angelo Planning Group Matt Hastie, Project Manager 921 SW Washington St., Ste. 468 Portland, OR 97205 PROPOSAL: Comprehensive Plan Amendment to redesignate 789 acres of the subject property from Agriculture to Redmond Urban Growth Area. The applicant is proposing to amend the Urban Growth Boundary (UGB) for the City of Redmond to allow for large -lot industrial development, in accordance with the Central Oregon Regional Large Lot Industrial Lands Program. The applicant has submitted a related application (247- 18 -000752 -PA) for the remaining 160 acres of the property. STAFF REVIEWER: Tanya Saltzman, Associate Planner Tanya.Saltzman@deschutes.org; 541-388-6528 HEARINGS OFFICER: Dan R. Olsen The following decision adopts the Staff Report, including staff's conclusions regarding the applicable standards and criteria, with minor substantive revisions and edits. Substantive revisions are noted as Hearings Officer. I. APPLICABLE STANDARDS AND CRITERIA: Deschutes County Code Title 18, County Zoning Ordinance Deschutes County Code, Title 22, Procedures Ordinance Deschutes County Code, Title 23, Comprehensive Plan Chapter 1, Comprehensive Planning Chapter 2, Resource Management EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 1 of 46 Chapter 3, Rural Growth Management Chapter 4, Urban Growth Management Oregon Administrative Rules (OAR). Chapter 660 Division 12, Transportation Division 15, Statewide Planning Goals and Guidelines Division 18, Post -Acknowledgement Amendments Division 24, Urban Growth Boundaries Oregon Revised Statutes (ORS) ORS 197.298, Priority of Land to be Included within Urban Growth Boundary 11. BASIC FINDINGS and CONCLUSIONS: A. LOCATION: The subject property has an assigned address of 4800 SW 19th Street, Redmond, and is identified on the Deschutes County Assessor's Map as 15-13, Tax Lot 130. The property, which in total consists of 949 acres, is referred to throughout the application and supporting materials as the South Redmond Tract. The 789 -acre portion of the subject property that this application addresses is known as the Large Lot Industrial Site, and is illustrated on the map below. B. LOT OF RECORD: Per DCC 22.04.040 Verifying Lots of Record, lot of record verification is EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 2 of 46 required for certain permits: B. Permits requiring verification 1. Unless an exception applies pursuant to subsection (B)(2) below, verifying a lot parcel pursuant to subsection (C) shall be required to the issuance of the following permits: a. Any land use permit for a unit of land in the Exclusive Farm Use Zones (DCC Chapter 18.16), Forest Use Zone - F1 (DCC Chapter 18.36), or Forest Use Zone - F2 (DCC Chapter 18.40); b. Any permit for a lot or parcel that includes wetlands as show on the Statewide Wetlands Inventory, C. Any permit for a lot or parcel subject to wildlife habitat special assessment, d. In all zones, a land use permit relocating property lines that reduces in size a lot or parcel' e. In all zones, a land use, structural, or non -emergency on-site sewage disposal system permit if the lot or parcel is smaller than the minimum area required in the applicable zone, In the Powell/Ramsey (PA -14-2, ZC-14-2) hearings officer decision, the Hearings Officer held to a prior Zone Change Decision (Belveron ZC-08-04) that a property's lot of record status was not required to be verified as part of a plan amendment and zone change application. Rather, the applicant would be required to receive lot of record verification prior to any development on the subject property. Therefore this criterion is not applicable. C. PROPOSAL: The applicant is proposing to amend the Urban Growth Boundary (UGB) for the City of Redmond to allow for large -lot industrial development, in accordance with the Central Oregon Regional Large Lot Industrial Lands Program. The applicant requests approval of a Comprehensive Plan Amendment to re -designate 789 acres of the property from Agriculture to Redmond Urban Growth Area. The applicant has submitted a related application (247 -18- 000752 -PA) for the remaining 160 acres of the property. D. ZONING AND PLAN DESIGNATIONS: The subject property is currently within the land use management jurisdiction of Deschutes County. The Deschutes County Comprehensive Plan map designates the subject property as Agriculture. The subject property is within the Exclusive Farm Use Zone - Alfalfa subzone (EFU-AL). E. SITE DESCRIPTION: The 789 -acre subject property, which is currently vacant, is located on the southern boundary of the Redmond UGB, east of U.S. Highway 97. It is located directly south of the Deschutes County Fairgrounds, and south and east of the City of Redmond's Juniper Golf Course. The Redmond Municipal Airport is located to the northeast. The subject property was acquired by the Department of State Lands from the U.S. Bureau of Land management (BLM) as a land grant in 2007 and has been used for rangeland, open space for recreation, wildlife habitat and military training by the Oregon National Guard and Army Reserve. It consists of Western juniper and sagebrush with scattered lava rock outcrops, and EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 3 of 46 is relatively level. A BNSF railroad right-of-way crosses the Tract at its west end; electric utility lines parallel this right-of-way and Bonneville Power Administration and Central Electric Cooperative electric transmission lines extend through the property. Although the property is zoned EFU, it has never been farmed, owing to its lack of water and proximity to urban uses. F. SURROUNDING LAND USES: Surrounding land uses generally consist of civic/institutional, agricultural, industrial and limited rural residential uses. The Deschutes County Fairgrounds and Exposition Center is located directly to the north, and the City of Redmond's Juniper Golf Course is to the north and west. The Redmond Municipal Airport is less than two miles northeast of the subject property. To the south and east of the subject property are large tracts of land owned by the Bureau of Land Management (BLM) which are currently vacant. To the west of the subject property is U.S. Highway 97 and land used for small-scale agriculture and limited residential uses, including Mountain View Mobile Home Park. A BNSF railroad right-of-way crosses the Tract at its west end. Zoning in the areas to the south and east of the subject property consist primarily of Deschutes County Exclusive Farm Use (EFU). To the west, there are smaller areas of land zoned Multiple Use Agricultural (MUA-10). The areas to the north and west are primarily located within the Redmond Urban Growth Boundary, zoned Park Reserve Open Space (OSPR), Open Space and Conservation (OS&C), Light Industrial and Light Industrial - Limited (M1 and M1 -L), and Fairgrounds (FG). G. SOILS: Accordin.2 to Natural Resources Conservation Service (NRCS) maps of the area, the subject property contains three different soil types, as described below. 33B Deschutes-Houstake complex, 0 to 8 percent slopes: This soil complex is composed of 50 percent Deschutes soil and similar inclusions, 35 percent Houstake soil and similar inclusions and 15 percent contrasting inclusions. The Deschutes soils are well drained with a moderately rapid permeability, and about 3.7 inches of available water capacity. Houstake soils are well drained with a moderate permeability, and about 7 inches of available water capacity. Major uses of this soil type are irrigated cropland and livestock grazing. The agricultural capability rating for 33B soils are 3E when irrigated, and 6E when not irrigated. This soil is high-value when irrigated. Approximately thirty-three (33) percent of the entire property is made up of this soil type. 35B Deschutes-Stukel complex, dry, 0 to 8 percent slope: This soil complex is composed of 50 percent Deschutes soil and similar inclusions, 35 percent Stukel soil and similar inclusions, and 15 percent contrasting inclusions. The Deschutes soils are well drained with a moderately rapid permeability, and about 7 inches of available water capacity. The Stukel soils are well drained with moderately rapid permeability and about 2.2 inches of available water capacity. Major uses of this soil type are irrigated cropland and livestock grazing. The agricultural capability rating for 35B soils are 4E when irrigated, and 6E when not irrigated. This soil is high-value when irrigated. Approximately eight (8) percent of the entire property is made up of this soil type. EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 4 of 46 1426 Stukel-rock outcrop - Deschutes complex. 0 to 8 percent slopes: This soil type is comprised of 35 percent Stukel soil and similar inclusions, 30 percent rock outcrop, 20 percent Deschutes soil and similar inclusions, and 15 percent contrasting inclusions. Stukel soils are well drained with moderately rapid permeability. The available water capacity is about 2 inches. Deschutes soils are well drained with moderately rapid permeability. Available water capacity is about 3.7 inches. The major use for this soil type is livestock grazing. The Stukel soils have ratings of 6E when unirrigated, and no rating when irrigated. The rock outcrop has a rating of 8, with or without irrigation. The Deschutes soils have ratings of 6E when unirrigated, and no rating when irrigated. Approximately fifty-nine (59) percent of the entire property is made up of this soil type. H. PUBLIC AND PRIVATE AGENCY COMMENTS: The Planning Division mailed notice of the application and notice of the public hearing to several agencies. No comments were received. Deschutes County Senior Transportation Planner Peter Russell was requested to review the applicant's findings with respect to the Transportation Analysis Memorandum; his comments appear in the findings to OAR Division 12, Transportation Planning. The following agencies either had no comment or did not respond to the notice: Bureau of Land Management (BLM), Oregon Department of Transportation, City of Redmond, State of Oregon, Department of Land Conservation and Development, and Deschutes County Property Management. 1. PUBLIC COMMENTS: On September 19, 2018, the Planning Division mailed a Notice of Application to all property owners within 750 feet of the subject property. No written comments from the public were received prior to the close of the record. J. NOTICE REQUIREMENT: The applicant complied with the posted notice requirements of Section 22.23.030(B) of Deschutes County Code (DCC) Title 22. The applicant submitted a Land Use Action Sign Affidavit, dated October 10, 2018, indicating the applicant posted notice of the land use action on the property on that same date. On October 30, 2018, the Planning Division mailed a Notice of Public Hearing to all property owners within 750 feet of the subject property. A Notice of Public Hearing was published in the Bend Bulletin on Sunday, November 4, 2018. Notice of the first evidentiary hearing was submitted to the Department of Land Conservation and Development on October 16, 2018. K. REVIEW PERIOD: The application was submitted on September 12, 2018. The application was deemed complete on October 15, 2018. According to Deschutes County Code 22.20.040(D), the review of the proposed quasi-judicial Plan Amendment and Zone Change applications are not subject to the 150 -day review period. L. LAND USE HISTORY: The South Redmond Tract is owned by the Oregon Department of State Lands (DSL) for the exclusive benefit of the Common School Fund (CSF). Revenues generated by the land are dedicated to the support of K-12 public schools throughout the state. According to the applicant, in October 2008 the State Land Board, which oversees DSL, EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 5 of 46 adopted the South Redmond Tract Land Use and Management Plan (Plan). The Plan set out a concept for urban development of the Tract that is consistent with state land use law, advances DSL's mission to maximize revenue for the CSF, and benefits the local community and regional economy of Central Oregon. Prior to 2007 the subject property was owned and managed by the U.S. Bureau of Land Management (BLM). Previous land use actions associated with the subject property are: 247-SP0750-PL (2007): Site plan review for the removal and replacement of utility poles 247-PS1240-PL (2012): Land Use Compatibility Statement (LUCS). 247 -14 -000158 -LL, 159 -LL, and 160 -LL (2014): Application for a property line adjustment between four legal lots of record. 247 -18 -000631 -PS: Land Use Compatibility Statement (LUCS) for sign -off for the Redmond Turkey Trot road race. M. HEARING. Hearings Officer: At the outset of the hearing I provided the statutorily required notices. I noted that I had no conflicts of interest, had received no ex parte contacts and had not conducted a site visit. I explained the right to a continuance or extension of the open record period, but no such request was made. Matt Hastie, Angelo Planning Group, testified for the applicant. There was no other testimony. Staff presented a Power Point presentation outlining the proposal, a copy of which is in the record. Staff also introduced into the record the 2007 Agreement between the City of Redmond and Deschutes County governing land use matters within the Redmond Unincorporated Urban Growth Area and the Redmond Urban Reserve Area. The Agreement was adopted pursuant to ORS Chapter 190. Among other things it designates Deschutes County as the entity with authority to process and decide amendments to the Redmond Urban Growth Boundary and amendments to the County comprehensive plan, plan map, zoning map and regulations until such time as property is brought within the Redmond Urban Growth Boundary, subject to approval by the Redmond City Council. (Hearing Ex. 1) Mr. Hastie and staff noted that Redmond concurrently is processing the related city land use applications, culminating in a joint public hearing at which the Redmond City Council and Deschutes County Board of Commissioners will make their respective final decisions on the applications. III. FINDINGS AND CONCLUSIONS - APPROVAL CRITERIA EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 6 of 46 TITLE 18 OF THE DESCHUTES COUNTY CODE (ZONING ORDINANCE) Chapter 18.136, Amendments Section 18.136.010, Amendments DCC Title 18 may be amended as set forth in DCC 18.136. The procedures for text or legislative map changes shall be as set forth in DCC22.12. A request by a property owner for a quasi-judicial map amendment shall be accomplished by filing an application on forms provided by the Planning Department and shall be subject to applicable procedures of DCC Title 22. FINDING: The applicant, also the property owner, has requested a quasi-judicial plan amendment and filed the application for a Plan Amendment. The applicant has filed the required Planning Division's land use application forms for the proposal. The application will be reviewed utilizing the applicable procedures contained in Title 22 of the Deschutes County Code. TITLE 23 OF THE DESCHUTES COUNTY CODE (COMPREHENSIVE PLAN) Chapter 1 Comprehensive Planning Section 1.3, Land Use Planning Goal 1. Maintain an open and public land use process in which decisions are based on the objective evaluation of facts. FINDING: The applicant notes that the response to this Goal echoes that of Statewide Planning Goal 1, and staff supports this statement. This proposal was developed specifically in response to the provisions of the Large Lot Industrial (LLI) program and the associated OAR rules, which explicitly require an objective evaluation of facts. In the burden of proof, the applicant has provided an outline of the decision-making process for large lot industrial lands and the associated UGB amendment; this includes background data of economic analyses, land suitability studies, and transportation analyses. Goal 2. Promote regional cooperation and partnerships on planning issues. FINDING: As noted above, this proposal for a UGB amendment was developed as a specific response to the LLI program, which is based on regional collaboration between cities and counties of Central Oregon, the Economic Development Council of Oregon (EDCO), the Central Oregon Intergovernmental Council (COIC), and state agencies. The Large Lot Industrial program is the result of several years of coordination with the aforementioned parties to identify larger regional solutions for economic development issues that exist beyond the scope of local jurisdictions. EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 7 of 46 The applicant's burden of proof provides an overview of the partnerships and process for the Large Lot Industrial program as follows. While some of the process outlined below concerns the City of Redmond and thus is beyond the scope of this application, staff believes it is important to outline all of the facets of the Large Lot Industrial program as a whole. Over the last several decades, economic trends of globalization and technological change have produced demand for developable parcels of industrial land from 50 to 200 or more acres in size. The cities and counties of Central Oregon, in coordination with state economic development officials, identified this potential demand as an economic opportunity for the region in 2009-2010. Large -lot industrial development had potential to diversify the regional economy of Central Oregon and ensure greater resilience through economic downturns, such as the recession of 2009-2011. However, economic development officials found that site selectors who represent firms interested in large -lot development would not consider a location if the region did not have an adequate pool of sites of a sufficient size that were suitable and available for industrial development. Conventional employment land needs analysis had not accounted for this specific type of industrial land need. As a result, the cities and counties of Central Oregon had not identified a sufficient number of sites nor applied appropriate zoning designations that allowed large -lot industrial uses. Under Oregon's statewide land use planning program—Oregon Administrative Rule (OAR) 660, Divisions 9 and 24—cities and counties plan for employment land at a jurisdictional level. These land need analyses ensure that each jurisdiction designates a sufficient supply of employment land in aggregate, however, the analyses do not account for the specific need for a supply of industrial parcels of a significant size of over 50 acres. The conventional land needs analysis also does not account for the possibility for the cities and counties of Central Oregon to compete as a unified region when attempting to attract or retain firms. Due to the significant size of the large -lot industrial sites, a single city or county cannot designate a sufficient number of sites to compete with larger regions across the United States and internationally. However, a region -wide supply of large -lot industrial sites of varying sizes and characteristics could enable Central Oregon to compete on a global scale. In response to this challenge, the cities and counties of Central Oregon collaborated to perform a regional land needs analysis that would assess the demand for this specific type of large -lot industrial land and evaluate Central Oregon's capacity to meet that demand. Deschutes County, in coordination with regional partners, completed that Central Oregon Large Lot Industrial Land Needs Analysis (LLA) in 2012. The Analysis surveys broad national, state and local economic trends, outlooks and factors that affect demand for large -lot industrial land in Central Oregon. The specific trends and dynamics of the large - lot market are assessed in tandem with the strengths and challenges for this type of development in Central Oregon. The Analysis identifies a set of target industries that may find Central Oregon suitable for large -lot development, including data centers, high technology manufacturing, and warehousing and distribution. Finally, the Analysis determines the needed characteristics of sites and estimates the short-term demand for large -lot sites in the region. EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 8 of 46 The Analysis concludes that there is an unmet need for six sites in at least three jurisdictions of Central Oregon. According to the analysis, a range of site acreages should be made available in order to provide sufficient options for prospective industries or site selectors. Table 1. Recommended Short -Term Competitive Large Lot Industrial Inventory' 50-100 ACRES 100-200 ACRES 200+ ACRES TOTAL Number of Sites 3 2 1 6 jurisdictions 3 2 1 Pursuant to OAR 660-024-0045, Large Lot Industrial Land, if the Analysis is adopted into the comprehensive plans of the counties of Central Oregon and the cities and counties of Central Oregon have entered into an Intergovernmental Agreement to implement the Analysis, the Analysis provides an adequate factual basis for a determination of need for large -lot industrial land for any participating city that adopts the Analysis into its comprehensive plan. Intergovernmental Agreement with Central Oregon Intergovernmental Council and Amendments to Comprehensive Plans of Counties The Central Oregon Large Lot Industrial Lands Program is administered by COIL Pursuant to OAR 660-024-0045, the cities and counties of Central Oregon entered into an Intergovernmental Agreement (IGA) with COIC to administer the process of qualifying sites for inclusion in the program. The IGA was r A --:I nth -)nt J ' r .J ' t., this nnr+ ivc Cv ikit d Tho �itinc irnd rmintiec of executed on hN►n 7 , LVYJ UIIU 1.3 11ILVI PUf ULeU /1ILV l/I1.7 r eNvI L UJ �nhw�. ic11— �. 1— Wl— Central Oregon are authorized to enter written agreement with COIC and execute the provisions of the agreement by statute (ORS 190.010 to 190.030, 190.003, and 195.025). In accordance with OAR 660-024-0045, the IGA defines the process by which the counties and cities of Central Oregon and COIC will identify and select sites to meet the need for large lot industrial land determined by the Analysis. The IGA stipulates, among other responsibilities, that counties shall adopt the Analysis into their comprehensive plan, cities and counties shall coordinate to identify and propose sites to COIC for inclusion in the program, and COIC shall review sites to verify they conform to the criteria defined by the Analysis and the applicable administrative rules that govern the program. Following the execution of the IGA, Jefferson, Crook, and Deschutes Counties amended their comprehensive plans to adopt the Analysis and associated goals and policies in support of the Central Oregon Large Lot Industrial Lands program. City of Redmond Comprehensive Plan Amendment The City of Redmond amended its comprehensive plan to adopt the Analysis and associated goals and policies in support of the LLI program on December 10th, 2013 (City of Redmond Ordinance #2013- 15). The amendment adopts the Analysis as a reference document to the comprehensive plan. ' Adapted from Central Oregon Large Lot Industrial Land Needs Analysis, p. 60 EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 9 of 46 City of Redmond Proposal of South Redmond Tract The City of Redmond submitted a proposal to COIC to include the South Redmond Tract in the LLI program on April 17, 2015. The City proposed that the Tract meet the regional need for one site of 200 or more acres in size. On May 7, 2015, the COIC board passed a resolution finding that the application meets all the applicable requirements and approved the South Redmond Tract as a 200 plus acre site for the LLI program. This resolution is incorporated into this report as Exhibit C. City of Redmond Large Lot Industrial Zone Adoption On September 22, 2015, the City of Redmond amended the Redmond City Code, Chapter 8, Article 1, Zoning Standards, to add a Large Lot Industrial Zone (Section 8.0186 to 8.0195). The zone addresses the requirements of OAR 660-024-0045, which is intended to preserve sites designated to meet large lot industrial need by the LLI program for primarily large lot industrial development. The code stipulates that the any property within the zone cannot be rezoned to any other city zone within ten years of initial designation. Further, any proposed uses outside of traded -sector uses must either be subordinate industrial uses in support of the traded -sector use or a limited amount of service commercial or retail development that supports the traded -sector use. Pursuant to OAR 660-024-0045 and the requirements of the LLI program, this application proposes the South Redmond Tract be designated for the LLI zone. Given the structure of the Regional Large Lot Industrial Lands program as described by the applicant, staff concludes that this proposal is based on a cooperative partnership process for 'regional planning, i g, aid is consistent with Lf If goal. Chapter 2 Resource Management Section 2.2, Agricultural Lands Policies Goal 1. Preserve and maintain agricultural lands and the agricultural industry. Policy 2.2.1 Retain agricultural lands through Exclusive Farm Use zoning Policy 2.2.2 Exclusive Farm Use sub -zones shall remain as described in the 1992 Farm Study and shown in the table below, unless adequate legal findings for amending the sub -zones are adopted or an individual parcel is rezoned as allowed by Policy 2.2.3. FINDING: The applicant's findings concerning agricultural land can be found in the findings to Statewide Planning Goal 3, Agricultural Land. Policy 2.2.3 below provides legal evidence concerning Policy 2.2.2, supporting re -designating the subject property to Redmond Urban Growth Area. Policy 2.2.3 Allow comprehensive plan and zoning map amendments for individual EFL/parcels as allowed by State Statute, Oregon Administrative Rules and this Comprehensive Plan. EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 10 of 46 FINDING: The applicant has applied for a Plan Amendment to re -designate the subject property from Agriculture to Redmond Urban Growth Area. It is important to note that the circumstances in which this application has been developed and submitted are unique and specific: the subject property has been selected as an eligible site for the Central Oregon Large Lot Industrial (LLI) Lands Program, a multi -jurisdictional collaboration to ensure the region can attract and retain traded - sector industries that require an adequate supply of large, developable parcels of industrial land. Additional details about the program appear in the response to Comprehensive Plan Section 1.3, Goal 2, as well as in the applicant's burden of proof, both of which outline compliance with State Statute, Oregon Administrative Rules, and the Deschutes County Comprehensive Plan. The subject property is proposed to be utilized for large lot industrial needs. This is pursuant to OAR 660-024-0040 and OAR 660-024-0045, which state that "Local governments in Crook, Deschutes or Jefferson Counties may determine a need for large lot industrial lands in the region and provide sites to meet the need in accordance with this rule." According to this rule, sites are to be identified in the adopted analysis, in this case the Central Oregon Large Lot Industrial Needs Analysis (referred to henceforth as the Analysis), published in 2012 by the Intergovernmental Agreement (IGA) of Central Oregon Cities, Counties, and Central Oregon Intergovernmental Council (COIC). The IGA defines the process by which sites will be identified to meet the region's large -lot industrial needs. The City of Redmond submitted a proposal to COIC, which administers the program, to include the South Redmond Tract in the Large Lot Industrial program, stating that it would meet the documented need for a 200 -acre -or -larger site. On May 7, 2015, the COIC board approved the South Redmond Tract as a site to be utilized in the LLI program. Given the state policy concerning large lot industrial lands and the subsequent actions taken by the cities, counties and COIC recognizing the subject property as a large lot industrial site, a comprehensive plan amendment for this EFU parcel is warranted. Policy2.2.4 Develop comprehensive policy criteria and code to provide clarity on when and how EFU parcels can be converted to other designations. FINDING: This plan policy provides direction to Deschutes County to develop new policies to provide clarity when EFU parcels can be converted to other designations. As noted above, the subject property has been identified as a potential Large Lot Industrial site pursuant to the policies in OAR 660-024-0040 and 660-024-0045. Subsequently, Deschutes County adopted the Analysis into its comprehensive plan to specifically allow for conversion of parcels into large lot industrial sites. This was codified by County Ordinance No. 2013-002. The applicant notes that the South Redmond Tract meets the need for one site in the region that is 200 acres or more, in accordance with the Analysis and therefore, the proposal is consistent with this policy. Policy 2.2.5 Uses allowed in Exclusive Farm Use zones shall comply with State Statute and Oregon Administrative Rule. EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 11 of 46 FINDING: The applicant is requesting approval of a plan amendment to re -designate the subject property as Redmond Urban Growth Area, and in doing so will amend the City of Redmond's Urban Growth Boundary. This application does not rezone the subject property. The applicant is pursuing a subsequent application process through the City of Redmond to annex, rezone, and master plan the property for large lot industrial land development, pursuant to OAR 660-024-0040 and 660-024- 0045. Staff finds this policy is not applicable to the application at hand. Section 2.4, Goal 5 Overview Policies Goal 1. Protect Goal 5 resources FINDING: The applicant addresses this goal in the findings to Policy 2.7.1, below. Section 2.5, Water Resources Policies Goal 6. Coordinate land use and water policies. Policy 2.5.24 Ensure water impacts are reviewed and, if necessary, addressed for significant land uses or developments. FINDING: The applicant's burden of proof states that any potential negative water impacts of future development will be identified and mitigated during the development review process for the site. Staff agrees and adds that one component of the site selection process for the Large Lot Industrial orozram included consideration of proximity to water and wastewater infrastructure. Section 2.7, Open Spaces, Scenic Views and Sites Goal 1. Coordinate with property owners to ensure protection of significant open spaces and scenic views and sites. FINDING: The applicant addressed this concern in the burden of proof, stating: DSL consulted with Deschutes County about the nature of the scenic view protections that apply to the South Redmond Tract in preparing this application. County staff informed DSL that neither of the subject parcels are included in the County inventory of significant open spaces or scenic views. As described in response to Statewide Planning Goal 5, in section 3.2 of this report, a portion of the site is currently subject to the requirements of the Landscape Management (LM) overlay zone. The LM overlay was adopted as part of a 1992 periodic review Comprehensive Plan update by Deschutes County. The intent of the zone was to protect the scenic qualities of rural areas throughout the US 97 corridor. The adopting ordinance specifies that the LM overlay shall apply to the US 97 corridor between the northern boundary of the City of Bend to the southern boundary of the City of Redmond.2 As this application proposes to expand the southern city boundary of the City of Redmond to include z City of Redmond Ordinance No. 92-052, p.7. EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 12 of 46 this property, the LM overlay zone will no longer apply to the property. The overlay zone is intended to apply to the rural corridor between the two cities and not to the land planned for urban development within either city. Staff finds that this policy does not apply since the subject property will be under the City of Redmond's land use authority. Policy 2.7.1 Goal 5 open spaces, scenic views and sites inventories, ESEEs and programs are retained and not repealed. FINDING: The proposal will not impact any Goal 5 inventories or protection programs outside the LM boundary, which is discussed above. The small portion of the site that is currently subject to the requirements of the LM overlay zone will no longer apply upon the approval of this application, since the subject property will become part of the Redmond UGB. Policy 2.7.2 Cooperate with stakeholders to establish a comprehensive system of connected open spaces. FINDING: Throughout the process of establishing the Large Lot Industrial Lands program, the Department of State Lands, the City of Redmond, and Deschutes County have worked together to identify opportunities for ways in which to connect to and create open space. Exhibit E of the applicant's burden of proof, Master Development Plan, illustrates potential locations for open/public space throughout the subject property, as well as an urban -rural interface on the west side of the property, which includes a 100 -foot open space buffer. The proposal meets this policy. Policy 2.7.3 Support efforts to identify and protect significant open spaces and visually important areas including those that provide a visual separation between communities such as the open spaces of Bend and Redmond or lands that are visually prominent. Policy 2.7.4 Encourage a variety of approaches that protect significant open spaces and scenic views and sites. FINDING: As noted above, the portion of the site that is currently subject to the requirements of the LM zone—approximately 0.85 miles of the 12 -mile LM corridor—will no longer be applicable upon the approval of this application; there is no other designation of visual importance for the subject property. Staff finds that the proposal meets these policies. Policy 2.7.5 Encourage new development to be sensitive to scenic views and sites. FINDING: The Master Development Plan for the proposed property identifies potential scenic views to be considered as well as open and public space. The applicant noted further: Additionally, the City of Redmond's LV zone requires a Conceptual Development Plan be submitted when a development is proposed for the site. The Conceptual Development Plan must include an identification of land for open spaces and urban design approaches for integrating open spaces with EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 13 of 46 other elements throughout the site. The County may suggest approaches for protecting scenic views when a development is proposed in the future. Staff concurs with the applicant's statement and agrees that the proposal is consistent with this policy. FINDING: Measures to address scenic views and sites have been described in the property's Master Development Plan as well as the City of Redmond's development code. However, no actual development of the property is proposed at this time; therefore, staff finds these policies do not apply to the subject proposal. Section 2.8 Energy Policies Goal 1. Promote energy conservation. Goal 2. Promote affordable, efficient, reliable and environmentally sound energy systems for individual home and business consumers. Goal 3. Promote affordable, efficient, reliable and environmentally sound commercial energy facilities. FINDING: The applicant provides responses pertaining to these three goals in their response to Statewide Planning Goal 13, Energy Conservation, below. Section 2.9 Environmental Quality Goal 1. Maintain and improve the quality of the air, water and land. Goal 2. Promote sustainable building practices that minimize the impacts on the natural environment. FINDING: The applicant provides responses pertaining to these two goals in their response to Statewide Planning Goal 6, Air, Water, and Land Resources Quality, below. Chapter 3 Rural Growth Management Section 3.3, Rural Housing Policies Goal 1. Maintain the rural character and safety of housing in unincorporated Deschutes County. FINDING: This application will not adversely impact the rural character and safety of housing in unincorporated Deschutes County, as the proposal is not planned to be used or zoned for housing. As detailed above in Section II, Findings of Fact, a small portion of land to the west of the subject property is zoned Multiple Use Agricultural (MUA-10). This County zone is intended to allow for a EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 14 of 46 wide range of uses, from single-family housing and manufactured homes to agricultural and rural commercial uses. The areas zoned MUA-10 that are adjacent to the subject property include a small number of single-family homes and two manufactured home parks. In response to Goal 1, the applicant's burden of proof provides the following: Any potential impacts of future large lot industrial development on rural housing in adjacent MUA areas can be mitigated through application of the Master Development Plan requirements for annexation into the City and the Conceptual Phased Site Development Plan requirements of the LLI Zone. Pursuant to the Master Development Plan Requirements, the master plan for the site must be consistent with Redmond's Great Neighborhood Principles. One of these principles is to establish an appropriate urban -rural interface, including a 100' buffer between urban areas within the UGB and adjacent rural areas and other transitional elements, such as transitions to lower intensities of development. As shown on the MDP Map (Exhibit E), this buffer will apply to the site boundaries adjacent to MUA areas. Additionally, where appropriate, the height of buildings will decrease along these frontages to provide a transition to rural areas. Secondly, the LLI zone requires a Conceptual Phased Site Development Plan. The site plan must identity areas for open spaces, among other requirements. The Redmond Planning Commission may require sufficient open space adjacent to these residential areas to preserve their rural character. In addition, development in the zone is subject to the Redmond's general design review criteria, which includes provisions for building form, screening, landscaping, and parking lot design that may be used to minimize any impacts to rural character. nue to the design review provisions of the LLI zone and Master Development Plan requirements for annexation into the City, this amendment will not impact the rural character of these MUA areas. Thus, the amendment is consistent with rural housing Goal 1. Based on the above planning provisions and the applicant's burden of proof, staff agrees that the proposal complies with rural housing Goal 1. Section 3.4, Rural Economy Policies Goal 1. Maintain a stable and sustainable rural economy, compatible with rural lifestyles and a healthy environment. FINDING: As noted above, the western portion of the subject property lies adjacent to the MUA-10 zoning district, which consists of a small number of single-family homes and two manufactured home parks. The Multiple Use Agricultural zone also allows for rural economic uses. The applicant cites the findings in Section 3.3, Rural Housing Policies above as applicable to Rural Economy Policies as well: the design review requirements of the LLI zone as well as the Master Development Plan ensure the mitigation of any impacts to the rural economic uses that could occur on neighboring properties, including an appropriate urban -rural interface, building height restrictions, screening, landscaping, and open space requirements. EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 15 of 46 In Section 3.4, the Deschutes County Comprehensive Plan specifically cites the Large Lot Industrial program and the Analysis as an example of regional and local coordination for economic development opportunities. Based on the above criteria, staff finds the requirements of rural economy Goal 1 to be met. Chapter 4 Urban Growth Management Section 4.2, Urbanization Policies Goal 1. Coordinate with cities, special districts and stakeholders to support urban growth boundaries and urban reserve areas that provide an orderly and efficient transition between urban and rural lands. FINDING: The applicant's proposal is uniquely applicable to Urban Growth Management Goal 1 in that it is the direct outcome of the Central Oregon Large Lot Industrial (LLI) program. As described above and in the applicant's burden of proof, the LLI program represents a multi -jurisdictional collaboration between cities, counties, the State of Oregon and other regional stakeholders. The subject property was proposed and ultimately selected for the LLI program over several alternatives, namely due to its proximity to infrastructure, single owner status, and its relationship to existing development along the edge of the City of Redmond. The applicant summarizes the coordination process as follows: The !-;f— of Dnfjv nnrl nnri DDerhi toc rniinhl aro r..nnd:..lrtina N inint Innd imo rPl/(PIA/ nnr�l nllhlir IIIc LILy VJ ncu���v��u a...,.n y b J...... �.........._ hearing process to concurrently review proposed amendments to the UGB, the County Comprehensive Plan and the City's zoning map. As part of this process, the City and County conducted a joint pre -proposal conference with the applicant and the applicant (DSL) has continued to coordinate regularly with City and County staff in regards to the proposed amendments. • As part of a separate but related set of land use amendments associated with the adjacent proposed County Fairgrounds expansion site, the City and DSL have coordinated closely with County staff regarding proposed plans for that site and its relationship to the proposed future LLI site. City and County staff and the DSL representatives have coordinated closely with ODOT staff in regards to analysis of transportation impacts associated with the proposed land use applications, including approaches for modeling impacts, potential mitigation associated with those impacts and consistency with the Oregon Transportation Planning Rule and other state transportation requirements. • DSL representatives have consulted with representatives of DLCD regarding consistency with state requirements associated with UGB amendments, including those intended to support the Central Oregon LLI program and associated administrative rules. EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 16 of 46 • DSL representatives have coordinated with other state agencies partners including the Oregon Military Department and Oregon Parks and Recreation Department in regards to future land exchanges or agency facilities within or adjacent to the subject property. Staff finds compliance with this criterion has been demonstrated. Policy 4.2.1. Participate in the processes initiated by cities in Deschutes County to create and/or amend their urban growth boundaries. FINDING: As noted above, the applicant has been a participant in the multi jurisdictional Large Lot Industrial project throughout the process, coordinating with Deschutes County, the City of Redmond, and other stakeholders during each phase. In this case, the process to amend the urban growth boundary is codified in OAR 660-024-0045, Regional Large Lot Industrial Land, which outlines the requirements for amending a comprehensive plan or UGB specific to the requirements of the Regional Large Lot Industrial Land program. The criterion has been met. Goal 2. Coordinate with cities, special districts and stakeholders on urban growth area zoning for lands inside urban growth boundaries but outside city boundaries. Goal 3. Coordinate with cities, special districts and stakeholders on policies and zoning for lands outside urban growth boundaries but inside urban reserve areas. FINDING: The above goals will not be applicable to the subject property if the application is aaproved. The proposal seeks to bring the subject property into the Redmond UGB as well as annex the property into the City of Redmond. Goals 2 and 3 are not applicable to properties within city boundaries. Goal 4. To build a strong and thriving regional economy by coordinating public investments, policies and regulations to support regional and state economic development objectives in Central Oregon. FINDING: This proposal directly addresses Urban Grown Management Goal 4 in that it is the result of a coordinated regulatory change to address economic development opportunities in Central Oregon. The applicant notes that the proposed UGB amendment is supported by coordinated public investments in infrastructure between the City of Redmond and Deschutes County as well as coordinated policies at the state and regional level, to create opportunities to implement the LLI program. This goal has been met. Policy 4.2.12. Deschutes County supports a multi jurisdictional cooperative effort to pursue a regional approach to establish a short-term supply of sites particularly designed to address out -of -region industries that may locate in Central Oregon. FINDING: The applicant's burden of proof notes that Policies 4.2.12 through 4.2.17 describe Deschutes County's role in the Large Lot Industrial program. The burden of proof outlines the Large Lot Industrial program, including the Intergovernmental Agreement (IGA) between jurisdictions and EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 17 of 46 the Central Oregon Large Lot Industrial Need Analysis (Analysis), which provided the guidelines for and mechanisms by which the subject property was ultimately selected. Staff finds the application is in compliance with this policy. Policy 4.2.13. Deschutes County recognizes the importance of maintaining a large -lot industrial land supply that is readily developable in Central Oregon. FINDING: The applicant seeks to amend the Redmond UGB to include the subject property, which then would be zoned Redmond Large Lot Industrial (LLI) specifically to provide available sites that would meet Central Oregon's need for a large -lot industrial land supply. The proposal is in compliance with this policy. Policy 4.2.14. The Central Oregon Regional Large Lot Industrial Land Need Analysis ("Analysis"), adopted by Ordinance 2013-002 is incorporated by reference herein. Policy 4.2. 15. Within 6 months of the adoption of Ordinance 2013-002, in coordination with the participating local governments in Central Oregon, Deschutes County shall, execute an intergovernmental agreement ("IGA") with the Central Oregon Intergovernmental Council ("COIC") that specifies the process of allocation of large lot industrial sites among the participating local governments. FINDING: The applicant's burden of proof states: The Analysis and IGA referenced in policies 4.2.14 and 4.2.15, respectively, are incorporated and referenced throughout this report to demonstrate this UGB amendment's conformance with the requirements of the LLI program and relevant OAR. Staff agrees with this summary and finds the application to be in compliance with these policies. Policy 4.2.16. In accordance with OAR 660-024-004 and 0045, Deschutes County, fulfilling coordination duties specified in ORS 195.025, shall approve and update its comprehensive plan when participating cities within their jurisdiction legislatively or through a quasi-judicial process designate regionally significant sites. FINDING: The application proposes exactly the above policy: it proposes amending the Deschutes County Comprehensive Plan Section 4.2 to include the South Redmond Tract in the inventory of regional large lot industrial sites. This criterion has been met. Policy 4.2.17. Deschutes County supports Economic Development of Central Oregon ("EDCO"), a non-profit organization facilitating new job creation and capital investment to monitor and advocate for the region's efforts of maintaining an inventory of appropriate sized and located industrial lots available to the market. FINDING: The proposed amendment supports this policy by identifying and contributing to the inventory of regional industrial sites, as advocated by EDCO. EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 18 of 46 OREGON ADMINISTRATIVE RULES CHAPTER 660 LAND CONSERVATION AND DEVELOPMENT DEPARTMENT OAR 660-024, Division 24, Urban Growth Boundaries OAR 660-024-0020, Adoption or Amendment of a UGB (1) All statewide goals and related administrative rules are applicable when establishing or amending a UGB, except as follows: a) The exceptions process in Goal and OAR chapter 660, division 4, is not applicable unless a local government chooses to take an exception to a particular goal requirement, for example, as provided in OAR 660-004- 0010(1); FINDING: These provisions are not applicable to this application since this proposal is not seeking a goal exception. b) Goals 3 and 4 are not applicable. FINDING: Goals 3 and 4 are not applicable. c) Goal 5 and related rules under OAR chapter 660, division 23, apply only in areas added to the UGB, except as required under OAR 660-023-0070 and 660-023-0250; Response: As described in foregoing findings under Goal 5, in section 3.2 of this report, the Goal 5 scenic resource, a Landscape Management Overlay zone are being removed from the Deschutes County inventory of Goal 5 resources because it only pertains to certain rural, not urban corridors. d) The transportation planning rule requirements under OAR 660-012-0060 need not be applied to a UGB amendment if the land added to the UGB is zoned as urbanizable land, either by retaining the zoning that was assigned prior to inclusion in the boundary or by assigning interim zoning that does not allow development that would generate more vehicle trips than development allowed by the zoning assigned prior to inclusion in the boundary, FINDING: The applicant's burden of proof notes that "concurrent with the proposed UGB expansion, an urban zoning designation of Large Lot Industrial use will be applied to the subject property. As a result, these exceptions do not apply to this proposal; therefore, this provision of the transportation planning rule is applicable." The findings for Statewide Goal 12 demonstrate consistency with the Transportation Planning Rule. EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 19 of 46 e) Goal 15 is not applicable to land added to the UGB unless the land is within the Willamette River Greenway Boundary, f) Goals 16 to 18 are not applicable to land added to the UGB unless the land is within a coastal shorelands boundary, g) Goal 19 is not applicable to a UGB amendment. FINDING: The above three provisions are not applicable to the proposal. The subject property is not within the Willamette River Greenway Boundary or within a coastal shorelands boundary, and the proposal is a UGB amendment. (2) The UGB and amendments to the UGB must be shown on the city and county plan and zone maps at a scale sufficient to determine which particular lots or parcels are included in the UGB. Where a UGB does not follow lot or parcel lines, the map must provide sufficient information to determine the precise UGB location. FINDING: The applicant states that the maps incorporated into the burden of proof (Exhibit B: Vicinity and Site Map, City of Redmond Application to Large Lot Industrial Lands Program, and Exhibit E: Master Development Plan Map) display specific lots, including boundary lines and identification numbers that are proposed to be included in the UGB. OAR 660-024-0040, Land Need (1) The UGB must be based on the appropriate 20 year population forecast for the urban area as determined under RuleC in OAR 66n, div 32, and must provide for needed housing, employment and other urban uses such as public facilities, streets and roads, schools, parks and open space over the 20 year planning period consistent with the land need requirements of Goal 14 and this rule. The 20 year need determinations are estimates which, although based on the best available information and methodologies, should not be held to an unreasonably high level of precision. Local governments in Crook, Deschutes or Jefferson Counties may determine the need for Regional Large -Lot Industrial Land by following the provisions of OAR 660-024-0045 for areas subject to that rule. FINDING: The applicant's burden of proof states: This UGB amendment is proposed to meet the need for Regional Large -Lot Industrial Land in Crook, Deschutes, and Jefferson Counties. As the City of Redmond is a local government within Deschutes County, the provisions of OAR 660-024-0045 were followed to determine this land need. Therefore, the subsequent provisions of OAR 660-024-0040 are not applicable to this UGB amendment. Staff concurs and finds this provision to be met. OAR 660-024-0045, Regional Large Lot Industrial Land FINDING: The provisions of this rule, outlined below, provide the supporting argument for this application. While this proposal is limited to an amendment of Deschutes County's Comprehensive Plan to change the UGB, the actions of the City of Redmond are intrinsically linked due to the EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 20 of 46 intergovernmental cooperation required by state statute governing large lot industrial land. Therefore, it is worth outlining the applicant's burden of proof at length, including those provisions relevant to the actions of the City of Redmond. (1) Local governments in Crook, Deschutes orJefferson Counties may determine a need for large lot industrial land in the region and provide sites to meet that need in accordance with this rule. FINDING: The City of Redmond, which is located in Deschutes County, determined a need for large lot industrial land in the region. The subject property was identified to meet the need for one site greater than 200 acres, in accordance with this rule. (2) In addition to the definitions in OAR 660-024-0010, the following definitions apply to this rule: (a) "Analysis" means the document that determines the regional large lot industrial land need within Crook, Deschutes, or Jefferson County that is not met by the participating local governments' comprehensive plans at the time the analysis is adopted. The analysis shall also identify necessary site characteristics of needed land. (b) "COIC" means the Central Oregon Intergovernmental Council. (c) "Intergovernmental Agreement (IGA)" means the document adopted by the three counties and any participating city to implement the provisions of the analysis. (d) "Participating city" means a city within Crook, Deschutes, orJefferson County that has adopted the analysis and entered into the intergovernmental agreement to implement the provisions of the analysis. (e) "Participating local government" means Crook, Deschutes, and Jefferson Counties, and participating cities. (f) "Regional large lot industrial land need" means the need for a specific type of 20 - year employment land need, as described in OAR 660-024-0040(1) and (5), that is determined based upon the analysis. (g) "Site" means land in the region that. (A) Provides the site characteristics necessary for traded sector uses as set forth in the analysis, (8) Is 50 acres or larger as provided in section (3) of this rule, and (C) Is determined to be "available," as that term is defined in OAR 660-009-0025(7), for regional large -lot industrial users and for purposes identified by the analysis. (h) "Site characteristics- has the meaning given that term in OAR 660-009-0005(1). (i) "Traded Sector use" has the meaning given that term in ORS 2858.280. FINDING: The above terms and definitions are consistent with the proposal. This criterion is met. (3) For purposes of subsection (2)(g) of this rule, a large lot is at least 50 acres if it is: (a) A single lot, parcel that is at least 50 acres, (b) An aggregation of existing lots or parcels under the same ownership that comprises at least 50 acres, or EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 21 of 46 (c) An aggregation of existing lots or parcels not in the same ownership created and maintained as a unit of land comprising at least 50 acres through a binding agreement among the owners. FINDING: The South Redmond Tract totals approximately 945 acres and is under the sole ownership of the Department of State Lands; within that tract, the Large Lot Industrial site is approximately 789 acres. Therefore, the site meets the definition of a large lot under subsection 3(b) of this rule. (4) Participating local governments may adopt the analysis and implement its provisions. The analysis may demonstrate a need for six vacant, suitable and available sites in the region, and up to three additional sites that may be designated in order to replace one of the original six sites that is developed or committed to development as provided in section (12) of this rule. The original six sites must include two sites of at least 100 acres and not more than 200 acres, and one site more than 200 acres. FINDING: The participating local governments, Deschutes County and the City of Redmond, each adopted the Analysis into their respective comprehensive plans. This proposal to amend the UGB states that the subject property meets the stated need for one site that is 200 acres of greater in size, in accordance with the Analysis. This criterion is met. (5) If a participating city adopts the analysis, it is deemed to provide an adequate factual basis for the determination of regional large lot industrial land need for that city provided. (a) The city and other participating local governments have entered into an intergovernmental agreement with the COIL, and (b) The analysis is adopted by Crook, Deschutes and Jefferson Counties. FINDING: The applicant's burden of proof provides the following response: The Analysis is an in-depth study of the economic trends that are causing demand for large -lot industrial land and the Central Oregon region's capacity to attract this type of development. The Analysis surveys broad national, state and local economic trends, outlooks and factors that affect demand for large -lot industrial land in Central Oregon. The specific trends and dynamics of the large - lot market are assessed in tandem with the strengths and challenges for this type of development in Central Oregon. The Analysis identifies a set of target industries that may find Central Oregon suitable for large -lot development, including data centers, high technology manufacturing, and warehousing and distribution. Finally, the Analysis determines the needed characteristics of sites and estimates the short-term demand for large -lot sites in the region. The City of Redmond adopted the Analysis through Ordinance No. 2013-15 and entered into an intergovernmental agreement with COIC on May 9, 2013 (Exhibit A). The analysis was adopted by Crook, Deschutes, and Jefferson Counties. Therefore, the provisions of subsections 5(a) and 5(b) are met, therefore, the Analysis is deemed to provide an adequate factual basis for the determination of regional large lot industrial land need for the City of Redmond. EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 22 of 46 Based on the information provided, staff finds the proposal to be in compliance. (6) Participating cities may adopt the analysis and enter into the intergovernmental agreement without amending the Economic Opportunities Analysis adopted by the city prior to the adoption of the analysis. FINDING: While this proposal concerns only the UGB amendment as it pertains to the County, it is necessary to demonstrate that all elements of this OAR are met. According to the applicant, the City of Redmond adopted the Analysis and entered into the intergovernmental agreement without amending the 2005 Economic Opportunities Analysis. The proposal complies with this provision. (7) The intergovernmental agreement shall describe the process by which the COIC shall coordinate with participating local governments in: (a) The determination of a qualifying site that a participating city may designate in order to satisfy the regional large lot industrial land need, and FINDING: The applicant states that Section 3 of the intergovernmental agreement describes the process by which the COIC shall coordinate with participating local governments to qualify and designate a site to meet the regional large lot industrial land need. This criterion is met. (b) The allocation of the qualifying sites among the participating cities in accordance with section (4) of this rule. FINDING: As outlined in earlier sections, the intergovernmental agreement describes the process by which qualifying sites are allocated. It states that the six sites are (1) located in at least three separate jurisdictions and (2) include two sites of at least 100 acres and not more than 200 acres, and one site of more than 200 acres. The South Redmond Tract is proposed to meet the need for the one site of more than 200 acres. This criterion is met. (8) A participating city may amend its comprehensive plan and land use regulations, including urban growth boundaries (UGB), in order to designate a site in accordance with the requirements of this rule, other applicable laws and the intergovernmental agreement, as follows: (a) A participating city must show whether a suitable and available site is located within its existing UGB. If a participating city determines that a suitable site already exists within the city's urban growth boundary, that site must be designated to meet the regional industrial land need. Cities shall not be required to evaluate lands within their UGB designated to meet local industrial land needs. FINDING: The applicant's burden of proof provides the following response: The City of Redmond performed a Candidate Site Analysis and sought the involvement of property owners of potential sites in order to evaluate sites that were potentially suitable and available for large lot industrial development. The City found that no sites within the City's existing UGB were EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 23 of 46 suitable and available for large lot industrial development. Pursuant to the LLI Analysis, the City found that a single regional site of over 200 acres should be located in the southern or eastern areas of Redmond, due to known infrastructure and land use compatibility considerations. The Candidate Site Analysis identified several contiguous land areas of 200 acres or more within and outside the City's UGB in the southern and eastern quadrants of the city. Within these areas, the City identified nine parcels within the existing UGB that could meet the criteria for a site or 200 acres or more, independently or in assembly with other parcels. The parcels were determined not suitable or available for large lot industrial development as follows. • Three parcels were determined not available for development because they were inside the security fence of the Redmond Municipal Airport and thus cannot be developed due to Federal Aviation Administration (FAA) regulations. • One additional parcel was adjacent to one these three parcels, but was only 24 acres in size, and assembly with the larger adjacent parcel was not an option because development of the larger parcel was not permitted under FAA regulations. • One parcel that contained industrial land was determined not suitable because it also included significant acreage of land zoned for open space and commercial uses. The remaining 104 acres of industrial land were not contiguous and therefore do not meet the requirement for a single site of 200 acres or more. • The remaining four parcels wholly or partly within the UGB were lands designated for industrial uses within the Redmond Eastside Framework Plan area. The Candidate Site Analysis found these sites potentially suitable for large lot industrial development. Subsequently, the City of Redmond contacted the owners of these parcels to assess their willingness to make the parcels available for large lot industrial development. The owners included Deschutes County, the Central Oregon Irrigation District, and the Redmond School District. No owners were willing to include these sites in the LLI program, therefore, the City removed these sites from consideration because the sites did not meet the criteria identified in the Analysis that the owner must be willing to sell the site at market -competitive prices and conform with other requirements of the program. (b) If a site is not designated per subsection (a), then a participating city may evaluate land outside the UGB to determine if any suitable sites exist. If candidate sites are found, the city may amend its UGB in accordance with Goal 14, other applicable laws and the intergovernmental agreement. Response: The Candidate Site Analysis also included lands outside the Redmond UGB. In addition to the South Redmond Tract, two of the parcels designated for industrial use within the Eastside Framework Plan area were located outside the UGB. Deschutes County owned both of these parcels. Deschutes County determined they were unwilling to commit these parcels to the requirements of the LLI program, but offered an adjacent parcel that was also within the Eastside Framework Plan and outside the UGB. This parcel was not identified in the Candidate Site Analysis because it was designated for mixed use - employment in the Eastside Framework Plan. The City of Redmond chose to consider this site and termed it the "Eastside Large Lot Industrial Site." EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 24 of 46 1 i F Large -Lot Industrial Lands Redmond, Oregon cry L'rr^a �;.4µ#.3� U[p3n GtfhaY7184U'163i) Urb3R Aria iiifif'1�� In6U3'Jd' Lalge CD' Aria& .,..E Af*3 t - 7$? 6Atlyd AIEb 2 - St31 Alai& The map above, from Exhibit B, City of Redmond Application to Large Lot Industrial Land Program, illustrates the two sites, the South Redmond Tract, and the Eastside Large Lot Industrial Site, mentioned in the applicant's burden of proof. Subsequently, the City performed a reconnaissance -level Infrastructure Analysis to compare the relative advantages and disadvantages of the South Redmond Tract and the Eastside Large Lot Industrial Site. The City found that South Redmond Tract was more suitable for large lot industrial development as the site was better positioned for transportation access, including potential rail access, and was in closer proximity water and wastewater infrastructure. Based on the applicant's response to the site selection process with regards to the UGB, staff finds these provisions are met. (9) A participating city that designates a site shall apply a regional large -lot industrial zone EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 25 of 46 or overlay zone to the site in order to protect and maintain the site for regional large lot purposes. The zone or overlay zone must: (a) Include development agreements and other provisions that prevent redesignation of the site for other uses for at least 10 years from the time the site is added to the city's comprehensive plan to meet regional large lot industrial land needs, (b) Prohibit division or separation of lots or parcels within the site to new lots or parcels less than the minimum size of the site need until the site is developed with a primary traded sector use requiring a large lot, and (c) Limit allowed uses on the site to the traded sector uses, except as provided in section (10) of this rule. FINDING: While this application concerns only the UGB amendment as it pertains to the County, and not the provisions of the zone once the site is annexed into the City of Redmond, it is necessary to demonstrate that all elements of this OAR have been met. The applicant provided the following response: The City of Redmond adopted the Large Lot Industrial Zone through Ordinance No. 2015-11. This application proposes to designate the South Redmond Tract under thatzone. The zone meets the three criteria of 660 -024 -0045(9)(a -c) with the following provisions: • Minimum lot size is 50 acres. The lot must remain the size of its original minimum designation as acknowledged by the Central Oregon Intergovernmental Council until such time that a primary user is sited. (8.0186(1)(A)) • No property that is zoned LLI can be rezoned to another city zone within ten years of the LLI designation. (8.0186(1)(8)) • Allowed uses are limited to traded sector uses per ORS 2858.280, until such time that a primary traded sector user occupies the site, at that time the following uses are allowed with the following provisions ... (8.0186(1)(C)) Based on the applicant's response concerning the requirements of the zone, these criteria have been met. (10) The zone or overlay zone established under section (9) may allow: (a) Subordinate industrial uses that rely upon and support the primary traded sector use when a site is occupied by a primary traded sector use, and (b) Non -industrial uses serving primarily the needs of employees of industrial uses developed on the site provided the zone includes measures that limit the type, size and location of new buildings so as to ensure such non -industrial uses are intended primarily for the needs of such employees, FINDING: While this application concerns only the UGB amendment as it pertains to the County, and not the provisions of the zone once the site is annexed into the City of Redmond, it is necessary to demonstrate that all elements of this OAR have been met. The applicant provided the following response: The Large Lot Industrial zone meets the two criteria of 660 -024 -0045(10)(a -b) with the following EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 26 of 46 provisions under Section 8.0186(1)(A)(i-iii): • Allowed uses are limited to traded sector uses per ORS 2858.280, until such time that a primary traded sector user occupies the site, at that time the following uses are allowed with the following provisions: • Subordinate industrial uses are allowed that rely upon and support the primary traded sector use; • Service commercial uses that support the traded sector uses are allowed if they are limited to 5000 square feet per use and not more than 5% of the net developable area of the site in combination with retail uses; and • Retail uses are allowed only as an accessory to a traded sector use and shall be limited to 5000 square feet and not more than 5% of the net developable area of the site in combination with service commercial uses. Based on the applicant's response concerning the requirements of the zone, these criteria have been met. (11) If a participating city adds a site to its plan pursuant to this rule, it must consider the site in any subsequent urban growth boundary evaluation conducted to determine local industrial land needs and the adequacy of land available to meet local industrial land needs. FINDING: While this application concerns only the UGB amendment as it pertains to the County, anri not the artinnc of rhe ritv nnre the nronerty is annexed into the Citv of Redmond. it is necessary to demonstrate that all elements of this OAR have been met. The applicant states in the burden of proof that the City of Redmond will include the subject property in any future UGB evaluations conducted to determine local industrial land needs. This criterion has been met. (12) A site may be considered developed or committed to industrial development if a large -lot traded sector user demonstrates a commitment to develop the site by obtaining land use approvals such as site plan review or conditional use permits, and (a) Obtaining building permits, or (b) Providing other evidence that demonstrates at least an equivalent commitment to industrial development of the site as is demonstrated by a building permit. FINDING: The applicant states in the burden of proof that the City of Redmond will consider the subject property to be developed or committed to industrial development when and if these criteria are met. The proposal complies with these provisions. (13) The participating local governments shall review the analysis after the regional supply of six sites has either been replenished by three additional sites or after ten years, whichever comes first. FINDING: The applicant states in the burden of proof that once these criteria are met, the City of Redmond will coordinate with participating local governments to review the Analysis. Staff finds this EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 27 of 46 provision to be met. OAR 660-024-0050, Land Inventory and Response to Deficiency OAR 660-024-0065, Establishment of Study Area to Evaluate Land for Inclusion in the UGB OAR 660-024-0057, Establishment of Study Area to Evaluate Land for Inclusion in the UGB; Priorities FINDING: The above provisions of OAR 660, Division 24 are not applicable to this proposal; they apply to UGB amendments for the purpose of meeting a land need identified under the process defined in OAR 660-024-0040, Land Need. As noted in that section and in this report's response to the provision, cities in Central Oregon may determine a specific need for regional large lot industrial land and determine the location of land to meet that need by following the requirements of OAR 660-024-0045 instead. OAR 660-015, Division 15, Statewide Planning Goals and Guidelines Goal 1, Citizen Involvement. To develop a citizen involvement program that insures the opportunity for citizens to be involved in all phases of the planning process. FINDING: The proposed Comprehensive Plan amendment to amend the Redmond UGB complies with the actions required by the Deschutes County Development Code, including two public hearings—first with a Hearings Officer, then with the Board of County Commissioners—and notice of the hearing published in a newspaper (the Bend Bulletin) at least twenty days in advance. Public agencies affected by this amendment were involved throughout the development of the proposal. In accordance with the Deschutes County Code, property owners potentially affected by the amendment (in this case, within 750 feet of the applicant property) were provided notice of the proposed amendment and hearing. Goal 2, Land Use Planning. To establish a land use planning process and policy framework as a basis for all decision and actions related to use of land and to assure an adequate factual base for such decisions and actions. FINDING: This proposal satisfies this goal because the applications were handled pursuant to the procedures applicable to plan amendments in the county's comprehensive plan and zoning ordinance. In addition, the proposal is supported by a factual base consisting of economic development studies, land analyses and transportation analyses that adhere to state, regional, and local requirements for decisions related to UGB amendments. Goal 3, Agricultural Lands. To preserve and maintain agricultural lands. FINDING: As provided in the applicant's burden of proof: The subject property is zoned Exclusive Farm Use (EFU) in the Alfalfa Subzone by Deschutes County, but the land has never been farmed and is not suitable for agricultural production. Soils on the EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 28 of 46 property are designated as Class Vll and Vlll and the property lacks irrigation water rights. The lands zoned EFU adjacent to the property are not actively used for agricultural production due to similar constraints. If the lands were eventually used for farming in the future, the master planning requirements of the LLI zone can be implemented to ensure that agricultural operations are not affected by industrial uses on the subject site. The proposed UGB amendment meets the goal of preserving agricultural land as the property does not include viable agricultural land and can be made compatible with any future farming uses on adjacent land. Staff concurs with the applicant's statement; in addition, it is important to note that this application is unique as the property was identified through a regional needs assessment. Goal 4, Forest Lands. To conserve forest lands by maintaining the forest land base and to protect the state's forest economy by making possible economically efficient forest practices that assure the continuous growing and harvesting of forest tree species as the leading use on forest land consistent with sound management of soil, air, water, and fish and wildlife resources and to provide for recreational opportunities and agriculture. FINDING: The proposal does not contain any forest lands and therefore this goal is not applicable. Goal 5, Open Spaces, Scenic and Historic Areas and Natural Resources. To protect natural resources and conserve scenic and historic areas and open spaces. FINDING: The applicant's burden of proof states that the subject property does not include any significant historic or natural resources. It does not include any wetlands, habitat for sensitive, threatened or endangered plant or animal species, wilderness values, and no mineral potential or mineral rights. Historic and cultural resources surveys indicate that the subject property was not occupied be prehistoric or historic peoples and contains no significant historic or cultural resources. As noted in the findings for Comprehensive Plan Section 2.7 above, two areas on the western edge of the site are currently in the Deschutes County Landscape Management (LM) Overlay Zone, which in this case is applied to all lands within one-quarter mile of US 97. The purpose of this zone is to preserve scenic qualities of rural areas adjacent to roadways. The applicant's burden of proof states: The adopting ordinance specifies that the LM overlay adjacent to US 97 shall apply to the highway corridor between the northern boundary of the City of Bend to the southern boundary of the City of Redmond. As this application proposes to expand the southern city boundary of the City of Redmond through inclusion of the property in the Redmond UGB and annexation into the City, the LM overlay zone will no longer apply. The overlay zone is intended to apply to the rural corridor between the two cities and not to the land planned for urban development within either city. As noted in the response to Comprehensive Plan Section 2.7, Goal 5 does not apply. The only Goal 5 resource pertains to Landscape Management, an overlay zone that is applied to rural, not urban corridors. EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 29 of 46 Goal 6, Air, Water and Land Resources Quality. To maintain and improve the quality of the air, water, and land resources of the state. FINDING: The applicant's burden of proof provides the following: The Candidate Site Analysis concluded that several alternative sites would have a greater impact on natural resources, and therefore excluded these sites from consideration. Any potential negative impacts of future development on the quality of air, water or land resources will be identified and mitigated during the development review process, as the specific impacts cannot be known until a specific development is proposed. The City of Redmond has adequate provisions in place to protect the quality of air, water, and land resources from negative impacts of new development. In addition, state and federal regulations administered by the US Environmental Protection Agency and Oregon Department of Environmental Quality regulate impacts on air resources to ensure clean air and will apply to any future development located on the subject site. Staff concurs with this assessment, and notes that any future actions once the property is annexed into the City of Redmond are beyond the scope of this application, which is limited to the request to amend the Deschutes County Comprehensive Plan in order to amend the Redmond UGB. Goal 7, Areas Subject to Natural Disasters and Hazards. To protect people and propertyfrom natural hazards. FINDING: The applicant's burden of proof provides the following: There are no areas on the site that are subject to flooding or landslide activity. Wildfire hazards are not substantially different from other areas within or adjacent to the Redmond UGB, and development of the site could improve fire protection by providing access and water infrastructure. Therefore, inclusion of this site within the UGB and subsequent development will be consistent with Goal 7. Staff agrees with the applicant's assessment that the inclusion of this site within the UGB is consistent with Goal 7. Goal 8, Recreational Needs. To satisfy the recreational needs of the citizens of the state and visitors and, where appropriate, to provide for the siting of necessary recreational facilities including destination resorts. FINDING: The applicant's burden of proof notes that the Deschutes County Comprehensive Plan, the City of Redmond Comprehensive Plan and Parks Master Plan do not identify existing or planned parks, trails or other recreation areas on the subject property. The Master Development Plan, which is provided in the burden of proof, outlines potential locations for open space and trails that will connect with adjacent trails and open space at the County Fairgrounds and sports complex; it also identifies potential locations for plazas and gathering spaces for future users of the site. Given this information provided by the applicant, staff finds the proposal complies with Goal 8. EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 30 of 46 Goal 9, Economy of the State. To provide adequate opportunities throughout the state for a variety of economic activities vital to the health, welfare, and prosperity of Oregon's citizens. FINDING: The proposal directly addresses Goal 9 in that it was designed specifically to provide economic development opportunities in the region. The genesis of the large lot industrial program was rooted in Central Oregon's lack of readily developable large sites for traded -sector companies, and the need to provide this at a regional, rather than local, level. The subject property is an essential piece of this program in that it is the largest site in the regional large lot inventory (over 200 acres), and many of the site's characteristics (proximity to transportation, neighboring uses, physical characteristics, etc.) make it uniquely suitable for this type of development. For these reasons, this proposal is consistent with the purpose of Goal 9. The applicant's burden of proof describes the proposal's compliance with the provisions of Goal 9 as follows: Goal 9 specifies that comprehensive plans for urban areas shall. (1) Include an analysis of the community's economic patterns, potentialities, strengths, and deficiencies as they relate to state and national trends; (2) Contain policies concerning the economic development opportunities in the community; (3) Provide for at least an adequate supply of sites of suitable sizes, types, locations, and service levels for a variety of industrial and commercial uses consistent with plan policies; (4) Limit uses on or near sites zoned for specific industrial and commercial uses to those which are compatible with proposed uses. Response: This proposal is consistent with these four planning requirements that direct implementation of Goal 9, as follows: 1. The Central Oregon Large Lot Industrial Land Needs Analysis includes an analysis of local economic conditions in relation to state and national trends.3 2. The City of Redmond amended their comprehensive plan to adopt policies in support of the economic opportunities that can be provided by large lot industrial development that is enabled by this proposal. 3. This proposal is one step towards ensuring an adequate local and regional supply of sites for industrial development, and the City demonstrated that the site has adequate service levels to support industrial and commercial uses through the proposal for the LLI program. More information about the adequacy of infrastructure to serve the site is found in Section 3.2 of this document in relation to Statewide Planning Goal 11. 4. The surrounding existing and proposed mix of commercial, recreational, and public facility uses are and/or will be compatible with industrial uses. The LLI zone limits non -industrial uses on the 3 Central Oregon Large Lot Industrial Land Needs Analysis, pp. 13-26 EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 31 of 46 site to those that are compatible with and support the industrial uses, including limiting non- industrial supporting uses to 5% of the total site area.' Goal 9 Planning Guidelines (1) A principal determinant in planning for major industrial and commercial developments should be the comparative advantage of the region within which the developments would be located. Comparative advantage industries are those economic activities which represent the most efficient use of resources, relative to other geographic areas. Response: The Analysis demonstrated that Central Oregon has a comparative advantage over other regions in attracting large lot industrial development. The region benefits from a high quality of life provided by diverse natural, recreational, and commercial amenities; quality of life is important for attracting both executives of firms and a skilled, mobile workforce. Transportation access is strong in Central Oregon as the region is a commercial hub in a larger rural area and is well -served by highways, rail lines, and commercial airports. The region also benefits from affordable and adequate water supply, affordable energy costs, and a suitable climate for specific energy -intensive industrial uses, such as data centers. (2) The economic development projections and the comprehensive plan which is drawn from the projections should take into account the availability of the necessary natural resources to support the expanded industrial development and associated populations. The plan should also take into account the social, environmental, energy, and Prr)nnmir imnartc IUnnn the re$irlent nnnid;; inn. Response: The City of Redmond's proposal of the Tract for the LLI program considered the impact of development of the site on natural resources and the resident population. The site itself does not contain significant natural resource value. No significant natural or cultural resources or natural hazards have been identified on the site. It is not suitable for agriculture and it does not include forest land.' A small portion of the site is adjacent to mixed-use rural areas that include housing, but the provisions of the LLI zone will ensure minimal impact to rural residential areas, as addressed in the findings in response to Deschutes County rural growth management policies, addressed in Section 3.4 of this report. At the some time, development of the site for large lot industrial uses will have a positive impact on residential populations by providing jobs for local and regional residents and by increasing the local tax base and ability for the City of Redmond and Deschutes County to provide needed public services and facilities to their residents. The Candidate Site Analysis Memorandum concluded that several alternative sites would have a greater impact on natural resources or resident populations, and therefore excluded these sites from consideration.' The proposal's impacts on specific natural resources are addressed in the findings of Section 3.2, Statewide Planning Goals 6 and 7. Additionally, some specific impacts of this UGB 4 Redmond Development Code, Large Lot Industrial Zone, Section 8.0186(1)(C) 5 South Redmond Tract Land Use and Management Plan, pp. 9-12 6 Exhibit B: Candidate Site Analysis Memorandum, City of Redmond Application to Large Lot Industrial Lands Program, pp. 2-5 EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 32 of 46 amendment will remain unknown until a specific development is proposed for the site. The City of Redmond has development code regulations in place to address and mitigate these impacts at the time of development. (3) Plans should designate the type and level of public facilities and services appropriate to support the degree of economic development being proposed. Response: The LLI program required jurisdictions to demonstrate that sufficient public facilities and services were available to support any proposed large lot industrial development. The Infrastructure Analysis found that the Tract had sufficient electric, natural gas, water, and telecommunications capacity. There is not currently sufficient capacity for wastewater service to the SRT, but DSL has agreed to finance the construction of facilities necessary to establish sufficient service capacity. The provisions of this agreement are established in a Memorandum of Understanding (MOU) between DSL and the City of Redmond. Further information on this topic is addressed in Section 3.2 of this report, Statewide Planning Goal 11. The capacity of transportation facilities is addressed in findings under Section 3.2, Statewide Planning Goal 12 of this report. (4) Plans should strongly emphasize the expansion of and increased productivity from existing industries and firms as a means to strengthen local and regional economic development. Response: The LLI analysis and program is designed to both attract new firms from outside the region and enable existing firms to remain in the region as they grow and expand. The specific users or tenants of the Tract may include both firms from outside the region and existing firms that need a larger space or additional location. Additionally, the attraction of firms from outside the region will support the expansion and increased productivity of existing firms. Large firms that compete in traded -sector industries can provide business opportunities to local suppliers, attract a skilled labor force to the region, and improve general local economic conditions. Lastly, efforts to support existing firms are well-established and will not be diminished by this proposal. (5) Plans directed toward diversification and improvement of the economy of the planning area should consider as a major determinant, the carrying capacity of the air, land and water resources of the planning area. The land conservation and development actions provided for by such plans should not exceed the carrying capacity of such resources. Response: The carrying capacity of air, land, and water resources has been considered throughout the development of this proposal. The City of Redmond's application to the LLI program demonstrated that sufficient water resources are available to serve the proposed uses on the site.' Alternative sites for which development would have a greater impact on these resources were removed from consideration during the Candidate Site Analysis. The proposal's impacts on specific air, land and water resources are addressed in the findings related to Statewide Planning Goals 5 and 6 (Section 3.2). As noted under guideline two of this section, some specific impacts of this UGB amendment on 7 Exhibit B: Infrastructure Analysis Memorandum, City of Redmond Application to Large Lot Industrial Lands Program, p. 2 EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 33 of 46 air, land and water resources will remain unknown until a specific development is proposed for the site. The City of Redmond has development code regulations in place to address and mitigate these impacts at the time of development. In addition, state and federal regulations administered by the US Environmental Protection Agency and Oregon Department of Environmental Quality regulate impacts on air resources to ensure clean air and will apply to any future development located on the subject site. OAR 660-009-0010, Application a) This division applies to comprehensive plans for areas within urban growth boundaries. This division does not require or restrict planning for industrial and other employment uses outside urban growth boundaries. Cities and counties subject to this division must adopt plan and ordinance amendments necessary to comply with this division. Response: The requirements of the administrative rules under Goal 9 (OAR 660, Division 9) do not apply to this proposal. The provisions of OAR 660-024-040 and OAR 660-024-045 define an alternative process for addressing the purpose of these requirements—including the Economic Opportunities Analysis (ECA), land needs determination, and designation of lands for industrial and employment uses for the specific need for large -lot industrial lands for the cities and counties of Central Oregon. This alternative process includes all of the steps of an ECA and land needs determination provided under Division 9, but enables the cities and counties of Central Oregon to complete these steps in a regionally coordinated manner. This regional coordination is critical to the ability of the region to compete effectively with other regions to attract and retain large -lot industrial development. This proposal's conformance with this alternative process is described under the Goal 14 section of this report. FINDING: Staff agrees with the responses provided in the applicant's burden of proof and find compliance with this goal. The proposed UGB amendment to allow for large lot industrial development will increase the variety of economic activities in the area by providing a new category of land while promoting health, welfare, and prosperity of nearby and statewide citizens. Goal 10, Housing. To provide for the housing needs of citizens of the state. FINDING: The applicant's burden of proof notes that the South Redmond Tract Land Use and Management Plan determined that given the adjacent land uses—public facilities, light industrial and particularly the airport—housing would not be a consideration for the subject property. The City of Redmond has identified other locations more suitable for housing in its own planning studies, such as the Eastside Framework Plan. The proposed UGB amendment is not intended to meet residential land needs, nor will it displace potential residential land. Given this, staff finds the proposal to be consistent with Goal 10. Goal 11, Public Facilities and Services. To plan and develop a timely, orderly, and efficient arrangement of public facilities and services to serve as a framework for urban and rural development. EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 34 of 46 FINDING: The applicant's burden of proof states that infrastructure needs for the proposed property were evaluated—and compared to other potential sites—for the City of Redmond's application process to COIC to include the property in the regional large lot industrial program. This preliminary Infrastructure Analysis is included in the applicant's burden of proof, and notes that improvements to the water and wastewater facilities will be necessary, which will be financed by DSL in a timely manner, pursuant to an MOA with the City of Redmond, provided in the burden of proof. Finally, the applicant's burden of proof notes that transportation, water, and wastewater facilities will be provided along the alignment of 19th Street, which is planned for future expansion south of the site. This extension provides an orderly and efficient framework for development. Staff finds the proposal has addressed the planning of public facilities and services and therefore is in compliance with Goal 11. Goal 12, Transportation. To provide and encourage a safe, convenient and economic transportation program. FINDING: The response to this statewide goal appears in the findings for OAR 660-012-0060 (Division 12 -Transportation Planning), below. Goal 13, Energy Conservation. To conserve energy. FINDING: The applicant's burden of proof indicates that the subject property's energy efficiency was considered during the site selection process, and was deemed to be potentially more efficient than other potential sites. First, transportation efficiencies owing to the site's location would be maximized; second, the construction of necessary infrastructure for the subject property would be less than other proposed sites. On a larger scale, one of the potential target industries for the large lot industrial program is renewable energy, as described in the Analysis. This could potentially include renewable energy generation or the manufacturing of renewable energy equipment for wind or solar power, or for battery technology. Based on the above two factors, the proposal meets the criteria of Goal 13. Goal 14, Urbanization. To provide for an orderly and efficient transition from rural to urban land use, to accommodate urban population and urban employment inside urban growth boundaries, to ensure efficient use of land, and to provide for livable communities. FINDING: The proposal has taken into account the concepts of Goal 14 in two ways. First, the subject property is adjacent to the existing Redmond UGB, can be served by a direct extension of public facilities, and the proposed use of the land is compatible with adjacent uses, as outlined in the Analysis. This ensures an efficient use of land. Second, the proposed large lot industrial use of the site is conceptualized specifically to accommodate employment within the urban growth boundary, which serves to contribute to more livable communities. Given these elements, staff finds the proposal to be in compliance with this goal. EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 35 of 46 Urban Growth Boundaries Urban growth boundaries shall be established and maintained by cities, counties and regional governments to provide land for urban development needs and to identify and separate urban and urbanizable land from rural land. Establishment and change of urban growth boundaries shall be a cooperative process among cities, counties and, where applicable, regional governments. An urban growth boundary and amendments to the boundary shall be adopted by all cities within the boundary and by the county or counties within which the boundary is located, consistent with intergovernmental agreements, except for the Metro regional urban growth boundary established pursuant to ORS chapter268, which shall be adopted or amended by the Metropolitan Service District. FINDING: The proposal to amend the Redmond UGB has followed the above process via a cooperative, multi -jurisdictional effort between Deschutes County, the City of Redmond, DSL, as well as the participants of the Large Lot Industrial program. While this application concerns Deschutes County, a similar application will be submitted to the City of Redmond, ensuring that the urban growth boundary amendment is adopted by all relevant jurisdictions as noted in the above response to Goal 14. Staff finds this criterion has been met. Land Need Establishment and change of urban growth boundaries shall be based on the following. (1) Demonstrated need to accommodate long range urban population, consistent with a 20 year population forecast coordinated with affected local governments, and.- (2) nd.(2) Demonstrated need for housing, employment opportunities, livability or uses such as public facilities, streets and roads, schools, parks or open space, or any combination of the need categories in this subsection (2). In determining need, local government may specify characteristics, such as parcel size, topography or proximity, necessary for land to be suitable for an identified need. Prior to expanding an urban growth boundary, local governments shall demonstrate that needs cannot reasonably be accommodated on land already inside the urban growth boundary. FINDING: It is important to reiterate that the conditions of this proposal to amend the UGB are unique to the regional large lot industrial program and the state regulations governing it. As the applicant states in the burden of proof: The Analysis demonstrates a need to accommodate employment opportunities for the long-range population growth anticipated for the Central Oregon region. The cities and counties of Central Oregon were projected to grow at an annual pace of 2.1 percent over the 20 year period from 2010 to 2030, adding 45,000 new residents by 2020.8 8 Central Oregon Large Lot Industrial Land Needs Analysis, p. 27 EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 36 of 46 While the regional analysis considered future population growth, the analysis is regional in nature and is governed by state requirements specific to the Central Oregon regional large lot industrial analysis. As a result, this proposal does not need to meet the state requirements to demonstrate a local need to accommodate a 20 year supply of residential land. In addition, because the proposed expansion area will be used to meet future employment needs, state requirements associated with residential land need and housing are not applicable to this application. Staff finds this statement to be consistent with the large lot industrial program, and with OAR 660- 24-0040 and OAR 660-24-0045, which states that the land need may be regional rather than local in nature, pursuant to the Analysis that is adopted for this purpose. Furthermore, the applicant's burden of proof notes that the Analysis indicated that the average unemployment rate in Central Oregon counties was 15 percent, which was higher than both the state and national average; considering this with future population growth, the Analysis defined the criteria for large lot industrial sites that could help meet this employment need. According to the applicant, the Candidate Site Analysis first considered sites within the Urban Growth Boundary, but such sites did not meet the required criteria defined by the Analysis. Lastly, the emphasis on providing regional versus local needs analysis is reiterated by the applicant concerning employment: While the regional analysis considered future employment growth, the analysis is regional in nature and is anuarnori by ortntp rnnijiraments snerifir to the Central Oregon regional large lot industrial analysis. As a result, this proposal does not need to meet the state requirements to demonstrate a local need to accommodate a 20 year supply of employment land. As with the consideration of future population growth above, staff finds this statement to be consistent with the large lot industrial program and with OAR 660-24-0040 and OAR 660-24-0045, which states that the land need may be regional rather than local in nature, pursuant to the Analysis that is adopted for this purpose. Staff finds the proposal to be compliant with this goal. Boundary Location The location of the urban growth boundary and changes to the boundary shall be determined by evaluating alternative boundary locations consistent with ORS 197.298 and with consideration of the following factors: (1) Efficient accommodation of identified land needs, FINDING: The applicant's burden of proof notes that alternative locations for large -lot industrial land within the City of Redmond were considered and evaluated in the Candidate Site Analysis and Infrastructure Analysis. The Candidate Site Analysis considered tracts of land that met the 200 -acre requirement, and were either in the existing UGB, an Urban Reserve Area, or adjacent to the UGB, as consideration of any other land further away from urban development would be inefficient. Staff finds this goal is met. EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 37 of 46 (2) Orderly and economic provision of public facilities and services, FINDING: The applicant notes that the Infrastructure Analysis determined that public facilities and services could be provided to the site in an orderly and economic fashion, and refers to the burden of proof addressing Statewide Planning Goals 11 and 12. Staff finds that the proposal has met this goal. (3) Comparative environmental, energy, economic and social consequences, and FINDING: The applicant noted that consideration of the site location was performed by the City of Redmond as part of the Large Lot Industrial process, and provided the following response in the burden of proof: The City of Redmond considered the relative environmental, energy, economic and social consequences of development of the site through the Candidate Site Analysis and Infrastructure Analysis, as detailed below. Environmental consequences. One candidate site was removed from the analysis due to potential environmental consequences because it contained 99 acres of natural resource land identified under Goal 5.1 The South Redmond Tract was partially selected over the East Redmond site because transportation access to the Tract is less constrained and may result in fewer environmental consequences. The South Redmond Tract was also found to be in a more central and accessible location for the regional workforce. As noted in findings associated with Statewide Planning Goal 5 (Section 3.2) no significant natural resources have been identified on the site, with the exception of a County scenic corridor overlay zone. As a result, there are no significant environmental consequences associated with development of this site, making it preferable to other potential alternative sites. Energy consequences. The relative transportation efficiencies of the Tract compared to alternative candidate sites will conserve energy resources. Additionally, the construction of infrastructure to serve the site may use less energy than the East Redmond site, which required a longer extension of water and wastewater infrastructure. 10 Economic consequences. The proposed UGB amendment is part of an economic development strategy and program for the Central Oregon region. Future large -lot industrial development of the site will generate employment and business opportunities for residents of the region. Relative to other candidate sites, the South Redmond Tract is more marketable and prepared for industrial development, so the economic benefits of the development may be realized more quickly and be more significant. Social consequences. Approximately 1,400 acres of land designated for non -industrial uses in the East Redmond Framework Area—including residential, open space, and commercial mixed -use - 9 Exhibit B: Candidate Site Analysis Memorandum, City of Redmond Application to Large Lot Industrial Lands Program, p. 3 10 Exhibit B: Candidate Site Analysis Memorandum, City of Redmond Application to Large Lot Industrial Lands Program, p. 2 EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 38 of 46 were excluded from the Candidate Site Analysis partly due to the potential consequences of displacing this land previously identified for other social needs, including housing, parks, and commercial services. Based on the above, staff finds the applicant has demonstrated compliance with this provision. (4) Compatibility of the proposed urban uses with nearby agricultural and forest activities occurring on farm and forest land outside the UGB. FINDING: There are no active farm or forest uses near the subject property. The applicant's burden of proof notes that while the lands south and east of the subject property are zoned Exclusive Farm Use, they have poor soil quality and lacks irrigation rights and as such is unsuitable for agricultural use. This is reiterated in the applicant's response to Statewide Goal 3 and demonstrates compliance with this provision. Urbanizable Land Land within urban growth boundaries shall be considered available for urban development consistent with plans for the provision of urban facilities and services. Comprehensive plans and implementing measures shall manage the use and division of urbanizable land to maintain its potential for planned urban development until appropriate public facilities and services are available or planned. FINDING: The applicant provided the following response to this goal in the burden of proof: The requirements of the LLI zone will ensure that the use and division of the land within the South Redmond Tract is consistent with the planned large -lot industrial development. The zone requires that the lot remain the size of its original minimum designation approved by COIC under the LLI program until a primary user is sited. The zone requires a minimum lot size of 50 acres for all subsequent development in order to preserve remaining land within the tract for large -lot industrial uses. Subordinate industrial uses must also allow and support the primary traded -sector use. Any non- industrial uses, such as service commercial or retail, must be an accessory to or in support of the industrial use, and are limited to a 5,000 square feet or 5 percent of the net developable area of the site. Lastly, any property designated under for the LLI zone cannot be rezoned until ten years after the initial designation. While the specific requirements of Redmond's LLI zone are beyond the review scope of this application, they directly follow the requirements of OAR 660-024-0045 (9) and (10), which specify the conditions under which land shall be managed for the Large Lot Industrial program. Staff finds the application to be in compliance with this provision. Unincorporated Communities In unincorporated communities outside urban growth boundaries counties may approve uses, public facilities and services more intensive than allowed on rural lands by Goal 11 and 14, either by exception to those goals, or as provided by commission rules which ensure such uses EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 39 of 46 do not adversely affect agricultural and forest operations and interfere with the efficient functioning of urban growth boundaries. Single -Family Dwellings in Exception Areas Notwithstanding the other provisions of this goal, the commission may by rule provide that this goal does not prohibit the development and use of one single-family dwelling on a lot or parcel that.... Rural Industrial Development Notwithstanding other provisions of this goal restricting urban uses on rural land, a county may authorize industrial development, and accessory uses subordinate to the industrial development, in building of any size and type, on certain lands outside urban growth boundaries specified in ORS 197.713 and 197.714 consistent with the requirements of those statutes and any applicable administrative rules adopted by the Commission. FINDING: The above three provisions of Goal 14 planning guidelines are not applicable to this proposal. The subject property is not located in an unincorporated community; it does not propose single family -dwellings; lastly, it does not propose any rural industrial development, since the subject property would be incorporated in the UGB. Goals 15 through 19. These goals, which address the Willamette Greenway, estuarine, coastal, beaches and dunes, and ocean resources, are not applicable to the proposal because the subject property is not located in or adjacent to any such areas or resources. OAR 660-012, Division 12, Transportation Planning FINDING: The applicant submitted a Transportation Analysis Memorandum prepared by Kittelson & Associates, dated March 12, 2018, which addresses transportation -related impacts of the proposal, most of which would be mitigated by TSP improvements planned by the City of Redmond. In addition, the applicant's burden of proof provides the following responses: OAR 660-012-0060 Plan and Land Use Regulation Amendments (1) if an amendment to a functional plan, an acknowledged comprehensive plan, or a land use regulation (including a zoning map) would significantly affect an existing or planned transportation facility, then the local government must put in place measures as provided in section (2) of this rule, unless the amendment is allowed under section (3), (9) or (10) of this rule. A plan or land use regulation amendment significantly affects a transportation facility if it would. (a) Change the functional classification of an existing or planned transportation facility (exclusive of correction of map errors in an adopted plan); (b) Change standards implementing a functional classification system; or (c) Result in any of the effects listed in paragraphs (A) through (C) of this subsection based on projected conditions measured at the end of the planning period identified in the adopted TSP. As part of evaluating projected conditions, the amount of traffic EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 40 of 46 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, (8) 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. (2) If a local government determines that there would be a significant effect, then the local government must ensure that allowed land uses are consistent with the identified function, capacity, and performance standards of the facility measured at the end of the planning period identified in the adopted TSP through one or a combination of the remedies listed in (a) through (e) below, unless the amendment meets the balancing test in subsection (2)(e) of this section or qualifies for partial mitigation in section (11) of this rule. A local government using subsection (2)(e), section (3), section (10) or section (11) to approve an amendment recognizes that additional motor vehicle traffic congestion may result and that other facility providers would not be expected to provide additional capacity for motor vehicles in response to this congestion. (a) Adopting measures that demonstrate allowed land uses are consistent with the planned function, capacity, and performance standards of the transportation facility. (b) Amending the TSP or comprehensive plan to provide transportation facilities, improvements or services adequate to support the proposed land uses consistent with the requirements of this division, such amendments shall include a funding plan or mechanism consistent with section (4) or include an amendment to the transportation finance plan so that the facility, improvement, or service will be provided by the end of the planning period. (c) Amending the TSP to modify the planned function, capacity or performance standards of the transportation facility. (d) Providing other measures as a condition of development or through a development agreement or similar funding method, including, but not limited to, transportation system management measures or minor transportation improvements. Local governments shall, as part of the amendment, specify when measures or improvements provided pursuant to this subsection will be provided. (e) Providing improvements that would benefit modes other than the significantly affected mode, improvements to facilities other than the significantly affected facility, or improvements at other locations, if.• (A) The provider of the significantly affected facility provides a written statement that the system -wide benefits are sufficient to balance the EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 41 of 46 significant effect, even though the improvements would not result in consistency for all performance standards, (8) The providers of facilities being improved at other locations provide written statements of approval, and (C) The local jurisdictions where facilities are being improved provide written statements of approval. (3) Notwithstanding sections (1) and (2) of this rule, a local government may approve an amendment that would significantly affect an existing transportation facility without assuring that the allowed land uses are consistent with the function, capacity and performance standards of the facility where: (a) In the absence of the amendment, planned transportation facilities, improvements and services as set forth in section (4) of this rule would not be adequate to achieve consistency with the identified function, capacity or performance standard for that facility by the end of the planning period identified in the adopted TSP; (b) Development resulting from the amendment will, at a minimum, mitigate the impacts of the amendment in a manner that avoids further degradation to the performance of the facility by the time of the development through one or a combination of transportation improvements or measures, (c) The amendment does not involve property located in an interchange area as defined in paragraph (4)(d)(C), and (d) For affected state highways, ODOT provides a written statement that the proposed funding and timing for the identified mitigation improvements or measures are, at a minimum, sufficient to avoid further degradation to the performance of the affected state highway. However, if a local government provides the appropriate ODOT regional office with written notice of a proposed amendment in a manner that provides ODOT reasonable opportunity to submit a written statement into the record of the local government proceeding, and ODOT does not provide a written statement, then the local government may proceed with applying subsections (a) through (c) of this section. (4) Determinations under sections (1)-(3) of this rule shall be coordinated with affected transportation facility and service providers and other affected local governments. I ..I FINDING: The Transportation Analysis Memorandum provided by the applicant in the burden of proof states that there would be a significant impact at two intersections for weekday PM trips: 21 st Street/Airport Way, and Canal Boulevard/Yew Avenue. Mitigation of the impacts at 21 St Street could be achieved by the provision of a median restricting 21St Street to right -in right -out movements. Improvements to mitigate traffic impacts at the intersection of Canal Boulevard and Yew Avenue, however, would have significant right-of-way and property impacts, requiring further analysis in the City of Redmond's Transportation System Plan (TSP) update. According to the applicant's burden of proof, all other intersections studied either have no significant impacts, or have improvements that are considered reasonably funded by ODOT and have been coordinated with the County, City of Redmond, ODOT, and DSL; therefore, the applicant states that these criteria have been addressed. EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 42 of 46 Additional review was provided by Deschutes County Senior Transportation Planner Peter Russell as follows: I have reviewed the traffic study dated March 12, 2018, for the Redmond UGB expansion and comprehensive plan amendment of 949 acres for the Redmond large lot industrial area, the Deschutes County Fairgrounds expansion, and the Oregon Military Department (OMD). The traffic study found all intersections either performed acceptably at the end of the planning horizon (2040) or could rely on mitigations which have funding or a reasonable expectation of funding. The land use application thus complies with Goal 12 and the transportation planning rule (TPR). The one exception was the intersection of 21s' St/Airport Way. The traffic report identified a raised median as a possible mitigation, but deferred to the City of Redmond's Transportation System Plan (TSP) which is being updated. While currently there is no specific development being proposed, County staff notes the impacts of large lot industrial sites can be mitigated through non -construction measures as well such as shift changes beginning/ending out of the a.m. and p.m. peak hours and transportation demand management (TDM) measures (vanpools, transit passes for employees, enhanced facilities for bicycling, etc.). None of the studied intersections are under the jurisdiction of Deschutes County. The affected intersections are either ODOT facilities or City of Redmond streets. The traffic study was scoped and reviewed in coordination with ODOT, City of Redmond, and Deschutes County. The agencies have reviewed the completed traffic study's recommendations. Those road authorities whose facilities were significantly affected (ODOT and City of Redmond) have not submitted adverse comments on the UGB expansion and the proposed land use changes in response to being notified. They could provide comment at the public hearing. Construction of a raised median at 21St/Airport Way to change the current accesses into right -in, right -out only (BIRO) is a relatively low cost improvement. It is not unreasonable to assume this future mitigation would be funded by either subsequent development or a combination of development and ODOT and/or City of Redmond. Russell further noted that the intersection of Canal Boulevard and Yew Avenue, the other intersection determined to have significant impacts, is also under the City of Redmond's jurisdiction and as such would be addressed by the update to the Transportation System Plan (TSP). Based on the applicant's burden of proof as well as the response from Deschutes County Senior Transportation Planner, staff finds compliance with these provisions has been effectively demonstrated. (5) The presence of a transportation facility or improvement shall not be a basis for an exception to allow residential, commercial, institutional or industrial development on rural lands under this division or OAR 660-004-0022 and 660-004-0028. FINDING: The applicant does not propose a Goal 2 exception; therefore, this section is not applicable. EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 43 of 46 (6) In determining whether proposed land uses would affect or be consistent with planned transportation facilities as provided in sections (1) and (2), local governments shall give full credit for potential reduction in vehicle trips for uses located in mixed-use, pedestrian - friendly centers, and neighborhoods as provided in subsections (a) -(d) below, I ..I FINDING: The subject property is not located in a mixed-use, pedestrian -friendly center as defined by this section; therefore, this section is not applicable. (7) Amendments to acknowledged comprehensive plans and land use regulations which meet all of the criteria listed in subsections (a) -(c) below shall include an amendment to the comprehensive plan, transportation system plan the adoption of a local street plan, access management plan, future street plan or other binding local transportation plan to provide for on-site alignment of streets or accessways with existing and planned arterial, collector, and local streets surrounding the site as necessary to implement the requirements in OAR 660-012-0020(2)(b) and 660-012-0045(3): (a) The plan or land use regulation amendment results in designation of two or more acres of land for commercial use, (b) The local government has not adopted a TSP or local street plan which complies with OAR 660-012-0020(2)(b) or, in the Portland Metropolitan Area, has not complied with Metro's requirement for street connectivity as contained in Title 6, Section 3 of the Urban Growth Management Functional Plan, and (c) The proposed amendment would significantly affect a transportation facility as provided in section (1). FINDING: The application will not include a commercial use; the City of Redmond has adopted a TSP. The proposal does not meet all of these criteria and therefore this section is not applicable. (8) A "mixed-use, pedestrian friendly center or neighborhood" for the purposes of this rule, means: 1.4 FINDING: As noted above, the subject property is not located in a mixed-use, pedestrian -friendly center or neighborhood as defined by this section; therefore, this section is not applicable. (9) Notwithstanding section (1) of this rule, a local government may find that an amendment to a zoning map does not significantly affect an existing or planned transportation facility if all of the following requirements are met. (a) The proposed zoning is consistent with the existing comprehensive plan map designation and the amendment does not change the comprehensive plan map, (b) The local government has an acknowledged TSP and the proposed zoning is consistent with the TSP; and (c) The area subject to the zoning map amendment was not exempted from this rule at the time of an urban growth boundary amendment as permitted in OAR 660-024- 0020(1)(d), or the area was exempted from this rule but the local government has a EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 44 of 46 subsequently acknowledged TSP amendment that accounted for urbanization of the area. FINDING: The subject application is for a comprehensive plan map designation change and does not include a zoning map designation change. Therefore this section does not apply. (10) Notwithstanding sections (1) and (2) of this rule, a local government may amend a functional plan, a comprehensive plan or a land use regulation without applying performance standards related to motor vehicle traffic congestion (e.g. volume to capacity ratio or V/C), delay or travel time if the amendment meets the requirements of subsection (a) of this section. This section does not exempt a proposed amendment from other transportation performance standards or policies that may apply including, but not limited to, safety for all modes, network connectivity for all modes (e.g. sidewalks, bicycle lanes) and accessibility for freight vehicles of a size and frequency required by the development. (a) A proposed amendment qualifies for this section if it. (A) Is a map or text amendment affecting only land entirely within a multimodal mixed-use area (MMA); and (8) Is consistent with the definition of an MMA and consistent with the function of the MMA as described in the findings designating the MMA. I ..I FINDING: The subject property is not located in an MMA; therefore, this section is not applicable. (11) A local government may approve an amendment with partial mitigation as provided in section (2) of this rule if the amendment complies with subsection (a) of this section, the amendment meets the balancing test in subsection (b) of this section, and the local government coordinates as provided in subsection (c) of this section. FINDING: The applicant's burden of proof provides the following: The Transportation Analysis Memorandum identifies improvements that would fully mitigate the effects of the amendment, therefore, it is not necessary to apply this provision for partial mitigation and the section is not applicable. Staff agrees with the findings provided in the applicant's burden of proof stating that the identified improvements will provide full, not partial mitigation, and as such this provision is not applicable. OREGON REVISED STATUTES (ORS) ORS 197.298, Priority of Land to be Included within Urban Growth Boundary (1) In addition to any requirements established by rule addressing urbanization, land may not be included within an urban growth boundary of Metro except under the following priorities: (a) First priority is land that is designated urban reserve land under ORS 195.145 (Urban reserves), rule or metropolitan service district action plan. EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 45 of 46 (b) If land under paragraph (a) of this subsection is inadequate to accommodate the amount of land needed, second priority is land adjacent to an urban growth boundary that is identified in an acknowledged comprehensive plan as an exception area or nonresource land. Second priority may include resource land that is completely surrounded by exception areas unless such resource land is high-value farmland as described in ORS 215.710 (High- value farmland description for ORS 215.705). (c) if land under paragraphs (a) and (b) of this subsection is inadequate to accommodate the amount of land needed, third priority is land designated as marginal land pursuant to ORS 197.247 (1991 Edition). (d) If land under paragraphs (a) to (c) of this subsection is inadequate to accommodate the amount of land needed, fourth priority is land designated in an acknowledged comprehensive plan for agriculture or forestry, or both. FINDING: The applicant states that this statute is not applicable; staff concludes the same. As noted in the findings for Statewide Goal 14, Urbanization, OAR 660-024-0045, Large Lot Industrial Land, specifies that Central Oregon governments may determine a need for large lot industrial land. The statute further delineates the process for selecting land: if land inside the UGB cannot satisfy the specific requirements described in the Central Oregon Large Lot Industrial Land Need Analysis, land outside of the UGB may then be considered. IV. CONCLUSION: Hearings Officer: Based on the foregoing findings and conclusions and the record herein and noting the absence of any contrary evidence or argument, the application is APPROVED, subject to final approval by the Board of County Commissioners pursuant to DCC 22.28.030. DESCHUTES COUNTY HEARINGS OFFICER Dan R. Olsen December 10, 2018 EXHIBIT F TO ORDINANCE NO. 2019-003 Hearings Officer Decision 247 -18 -000751 -PA Page 46 of 46