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HomeMy WebLinkAboutLarge Lot Industrial Lands Project MEMORANDUM DATE: December 7, 2012 TO: Deschutes County Board of Commissioners FROM: Peter Gutowsky, Principal Planner RE: Central Oregon Large Lot Industrial Lands Project / Work Session / Public Hearing The Deschutes County Board of Commissioners will be conducting a work session on December 17 at 10:00 a.m. to discuss the Central Oregon Large Lot Industrial Lands Project in preparation for a forthcoming public hearing. The hearing is scheduled for January 7, 2013 at 10:00 a.m. The following materials are attached with this memorandum: o Central Oregon Large Lot Industrial Program Overview o Central Oregon Large Lot Industrial Program Core Principles o Central Oregon Large Lot Industrial Program Milestones o Ordinance 2013-001 o Ordinance 2013-002 Exhibit A (Deschutes County Code 23.01.010, Introduction) Exhibit B (Comprehensive Plan, Chapter 4, Urban Growth Management) Exhibit C (Comprehensive Plan, Chapter 5, Supplemental Sections) Exhibit D (Findings) Central Oregon Large Lot Industrial Land Need Analysis o Land Conservation and Development Commission Rulemaking The text below provides an overview of this project. REOA Deschutes County received two Technical Assistance Grants from the Department of Land Conservation and Development (DLCD) in 2010 to evaluate Central Oregon’s opportunities, competitiveness, and ability to recruit new and locally grown firms requiring ne w large scale development models. Johnson-Reid, LLC was selected from a pool of consultants to develop a Regional Economic Opportunity Analysis (REOA). Over the course of eleven months, the REOA went through several iterations with the assistance of a Regional Advisory Committee (RAC). The RAC consisted of Central Oregon cities and counties, Johnson-Reid LLC, Business Oregon, DLCD, Department of State Lands, Central Oregon Intergovernmental Council (COIC), 1,000 Friends of Oregon (1,000 Friends), Economic Development for Central Oregon (EDCO), Central Oregon Association of Realtors and private area developers. The RAC met officially six times before the REOA was finalized on May 31, 2011. -2- The REOA project aimed to determine if such an industrial land dem and exists in Central Oregon and, if so, to identify the deficiency. The study attempted to document an unmet twenty year land need for large lot industrial sites in the region. It also concluded that competing as a cohesive region can allow Central Oregon to market a larger available work force, the size of which is often a key locational criterion for firms. While geographically separate, the jurisdictions in the region function in a manner similar to other metropolitan areas like Reno and Salt Lake Cit y, which often share boundaries. According to the REOA, the shared economic function within Central Oregon supports a regional approach to economic development, particularly with respect to large traded sector industries. APPEAL Deschutes County exercised its statutory coordinating authority (ORS 195.025) to address this unmet regional need for large-lot industrial sites through Ordinance 2011-017. New comprehensive plan policies and the REOA provided the policy framework for designating lands among coordinating jurisdictions in a mutually agreed proportion. Ordinance 2011-017 attempted to integrate comprehensive plans between the County and its respective cities by encouraging them to address a short and long-term specialized employment land need. Ordinance 2011-017 was adopted by the Board of County Commissioners on November 30 2011, but was appealed to the Land Use Board of Appeals by 1,000 Friends of Oregon last December. SETTLEMENT The appeal however, was stayed in early 2012 to allow Deschutes County, the Governor’s Office, and 1,000 Friends to explore a settlement. Spanning three months, a settlement was ultimately reached in April 2012. The settlement consisted of an agreement that the technical document produced would not be called an Economic Opportunity Analysis (EOA) as that term is understood in Oregon land use law. 1000 Friends agreed that the region has a need for up to nine large industrial lots in Central Oregon and the parties agreed upon policy principles guiding how those sites could be incorporated into existing UGBs. 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 DLCD to initiate rule-making later in the summer. RULEMAKING After receiving support from a Central Oregon Large Industrial Lot Rules Advisory Committee which met four times over the summer, a draft was forwarded to LCDC for their consideration. A public hearing conducted by a LCDC hearings officer was held in Redmond on September 27, 2012, followed by a hearing with the full commission on November 15, 2012 in McMinnville. LCDC adopted the rules to Oregon Administrative Rules (OARs) Chapter 660-024 on November 15. They become effective on December 10. PLAN AMENDMENT Deschutes County’s plan amendment provides the policy framework for the tri-county region to coordinate as a single entity promoting large-lot industrial employments sites that best serve the region as a whole to create family wage jobs, region economic diversification and place Central Oregon on the map for regional, national and international industrial recruitment. Upon adoption, Crook and Jefferson counties will adopt a similar amendment to their comprehensive plans. Once all three counties complete their plan amendments, municipalities in the region will be able rely on the Central Oregon Large Lot Industrial Land Need Analysis to address the short -term need for large-lot industrial sites. Central Orelon Large Lot Industrial Progra m December 17, 2012 In 2008, the Oregon Economic and Community Development Department's (now Bus i ness Oregon) industrial lands specialist Bev Thacker stated i n a letter, "Large, ready to go industrial sites have been the state's most significant development challenge and one of the most noticeable changes in real estate trends in [the] last few years ." She specifically identified a statewide need of industrial lands of 100-200 acres i n size. Economic Development for Central Oregon (EDCO) also identified similar challenges for the tri-county (Deschutes, Jefferson and Crook) region. Executive Director Roger Lee and others have repeatedly stated -Madras La Pine --.--­ that site selectors often will not even visit the region if only one or two sites are available . The arrival of Facebook and Apple, while unique in many regards, has put Central Oregon on the i nternational map for data centers among other potential large lot employers . However, the region lacks a supply of sites and cities' traditional Economic Opportunity Analyses (EOAs) do not account for such a land demand. This project aimed to determine if such a land demand exists in Central Oregon and , if so, to identify the deficiency. A Regional Economic Opportunity Analysis (REOA) attempted to document an unmet 20-year land need for large lot industrial sites in the region. On November 28, 2011 Deschutes County adopted a Comprehensive Plan amendment to officially recognize the REOA as a technical study, and a series of pol i cies that establish the legal basis to encourage cities to address this unmet employment land need as well as a planning framework for creating a regional entity to oversee the program . The amendment was appealed by 1,000 Friends of Oregon to the Land Use Board of Appeals . However, a settlement was reached in April 2012 with the assistance of the Governor's office, Department of Land Conservation and Development (DLCD), and members of a Regional Advisory Committee (RAC). It focused entirely on the short ­ term need for large-lot industrial sites as well as a commitment from the Oregon Department of Land Conservation and Development (DLCD) to initiate rule-making . Below is a summary of the legal basis for the Central Oregon Large Lot Industrial Project and its accomplishments to date . 1. NEW ADMINISTRATIVE RULES I OAR DIVISION 24. The Land Conservation and Development Comm iss ion (LCDC) adopted administrative rules (OAR 660 -0024-0040 and 660 -024-0045) in November 2012 tailored to Central Oregon's short-term need for large lot industrial sites . The rules allow cities in the tri-county region to utilize a regional large lot industrial land need analysis, largely taken from the REOA, as the justification. The rules, which became effective on December 10, 2012 recognize a need for six 50+ acres sites and up to three for replen ishment. They also address how cities may amend their Urban Growth Boundaries (UGB), thereby providing a clear legal framework for Central Oregon to address a known land use deficiency. NEW REGIONAL APPROACH 1 . Two DLCD Techn ical Ass i stance (TA) Grants funded : a) $50,000 .00 for a technical study to determine a reg i onal land need not currently recognized in existing City EOAs (Phase 1, 2009-2011). b) $25,500 .00 for Regional Governance Approaches , Site Suitability Characteristics , Model Large Lot Industrial Overlay Zone (Phase 1 , 2009 -2011). c) $35,000 .00 to establish regional authority with COIC (Phase 2, 2011 ­ 2013). 2 . Deschutes County created a Regional Advisory Committee to oversee the project. Members included: cities, counties, EDCO, COIC , 1000 Friends of Oregon, Central Oregon Realtors Association, DLCD , DSL and Business Oregon . 3 . RAC hired Johnson Reid LLC, consultant team, with expert ise in real estate development and land use economics. 4. New regional approach addresses the recent demand of large-lot employers and rapidly growing industries that are building production and research capabilities to establish global scale . 5 . Land Conservation and Development Commission (LCDC) adopted rules in November 2012 ta i lored to Central Oregon's short -term need for large lot industrial sites. 6. Deschutes County is now exercising its statutory coordinating authority (ORS 195 .025) to address this short -term unmet regional need for large-lot industrial sites. It assures an integrated comprehensive plan between the County and its respective cities by encouraging them to address it. 7 . Deschutes County is also voluntarily coordinating with Crook and Jefferson Counties and their respective cities as authorized in ORS 190.003-190.620 to exercise their coordination authority with parallel plan amendments . 2. CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS. The County can now demonstrate that the evidentiary record and findings support a regional approach to large-lot industrial siting and that it is consistent with Oregon's Land Use Program. The "Analysis" documents an unmet short-term need for large-lot industrial sites, 50-acres or larger in tri-county area with: o National, state and local economic trends and conditions o Large-lot industry trends, dynamics, opportunities, and site needs o Local objectives and their respective strengths and challenges o Business Oregon data o Expert opinion by Johnson-Reid LLC, EDCO, and others The "Analysis" recognizes that a readily available and developable inventory of six large sites in at least three separate jurisdictions will provide for choice to prospective industries or site selectors. 3. LAND DEMAND. Economic development focuses on short-term, 5-year time frames. This program does the same. The table below shows the short-term large lot industrial inventory for Central Oregon. The minimum site is between 50-100 acres. The largest one, a 200+ acre site needs to be near the region's geographic and workforce center in either Bend or Redmond. Recommended Competitive Short-term Large Lot Industria/Inventory 50-100 acres 100-200 acres 200 + acres TOTAL SHORT-TERM # of Sites 3 2 1 6 Jurisdictions 3 2 1 4. CENTRAL OREGON'S COMPETITIVENESS. Competing as a cohesive region allows Central Oregon to market a larger available work force, the size of which is often a key locational criterion for firms. While geographically separate, the jurisdictions in the region function in a manner similar to other metropolitan areas, which often share boundaries. The shared economic function within Central Oregon supports a regional approach to economic development, particularly with respect to large traded sector industries. 5. REGIONAL AUTHORITY. The Central Oregon Intergovernmental Council (COIC) as the beneficiary of a DLCD TA Grant has formalized their organization as the regional authority to organize, coordinate and promote large-lot industrial strategy. 6. SITE-NEED CHARACTERISTICS. Physical: 50 acres or above. Flat slopes. Rectangular sites. Transportation: accessible or in close proximity to auto/truck, rail and air service. Utilities: water, sewer, natural gas, electricity/power, telecommunications. Location: acceptable distance to work force. Special considerations: willing property owner to sell at market consistent price and participate in infrastructure investments to support the development. 7. IMPLEMENTATION NEXT STEPS. (1) Adoption of Deschutes County's Comprehensive Plan amendment. (2) Jefferson and Crook Counties adopt similar plan amendments. (3) COIC finalizes Intergovernmental Agreements with Central Oregon cities and counties. (4) Cities comply with new administrative rules and the statewide planning program requirements to change land designations for large lot employment sites, and collaborate with willing property owners. (5) Cities adopt plan amendments and Large Lot Overlay Zone. (6) EDCO markets the region's short-term supply of vacant, developable sites. COMPREHENSIVE PLAN AMENDMENT GOAL • 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. POLICIES (abbreviated) • 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. • Deschutes County recognizes the importance of maintaining a large-lot industrial land supply that is readily developable in Central Oregon. • The Central Oregon Regional Large Lot Industrial Land Need Analysis ("Analysis"), adopted by Ordinance 2013-002 is incorporated by reference herein. • Within 6 months of the adoption of [Deschutes County] Ordinance 2013­ 002, in coordination with the participating local governments in Central Oregon, Deschutes County shall, execute an intergovernmental agreement with the Central Oregon Intergovernmental Council that specifies the process of allocation of large lot industrial sites among the participating local governments. • 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. Central Oregon Large-Lot Industrial Program Core Principles Central Oregon Large-Lot Industrial Land Need Analysis Central Oregon Large Lot Industrial Land Need Analysis (Analysis) provides the factual basis for designating large-lot industrial sites among coordinating jurisdictions Documents an unmet short-term need for large-lot industrial sites, 50- acres or larger in tri-county area with: National, state and local economic trends and conditions Large-lot industry trends, dynamics, opportunities, and site needs Local objectives and strengths and challenges Business Oregon data Expert opinion by Johnson-Reid LLC, EDCO, and others Recognizes short-term demand of competitive and diverse vacant, developable industrial is needed for site selectors representing industrial recruitment to consider the region. A readily available and developable inventory of six large sites in at least three separate jurisdictions will provide for choice to prospective industries or site selectors Recommends Competitive Short- Term Large Lot Industrial Inventory means: Three 50-100 acre sites Two 100-200 acre sites One 200+ acre site Regional Partnerships Identifying and implementing a program to create a short term large-lot land supply that enables Central Oregon to compete for industrial recruitment is a policy the Board of County Commissioners is choosing to pursue Deschutes County, through new OARs and its governing body, is exercising its statutory coordinating authority (ORS 195.025) to address an unmet short term regional need for large-lot industrial sites The new OARs and the County’s authority assure there is an integrated comprehensive plan between the County and its respective cities by encouraging them to address a short-term specialized employment land need. Deschutes County also voluntarily coordinating with Crook and Jefferson Counties and their respective cities as authorized in ORS 190.003- 190.620 to exercise their coordination authority with parallel plan amendments Coordination Authority Rule-making clarifies issues regarding a regional need for short term supply of large-lot industrial sites in Central Oregon Rules define regional large lot industrial site and “Analysis” that determines the regional large lot industrial land need in Central Oregon Rules recognize that Analysis may demonstrate a need for six sites and up to three for replenishment. Original six sites include: Three 50-100 acre sites Two 100-200 acre sites One 200+ acre site Rule requires city and counties to sign IGA with COIC Rule requires participating city to apply regional large-lot industrial overlay zone to protect large lot purposes Rules address how cities may amend their UGB to accommodate a short term need for large-lot industrial sites Rule-making adopted by LCDC in November, effective December 10, 2012 Plan Policies and Regional Governance Deschutes County large-lot industrial policies: Support multi-jurisdictional cooperative effort to pursue a regional approach to establish a short-term supply of large lot industrial sites Adopt Analysis by reference Specify that 6 months of adoption, cities and counties shall execute an IGA with COIC Recognize that the County will fulfill its coordination duties by approving and updating its comprehensive plan when participating cities within their jurisdiction designate regionally significant industrial sites COIC adopted Resolution #243 to establish their role as governance authority for Regional Large Lot Industrial Program COIC currently coordinating with Central Oregon cities and counties to finalize IGA and Site Proposal Process LCDC Rule-Making 3 DLCD Technical Assistance (TA) Grants funded: $50,000 for a technical study to determine a regional land need not currently recognized in existing City EOAs $25,500 for Regional Governance Approaches, Site Suitability Characteristics, Model Large Lot Industrial Overlay Zone $35,000 to establish regional authority with COIC A Regional Advisory Committee created to oversee the project. Members included: cities, counties, EDCO, COIC, 1000 Friends of Oregon, Central Oregon Realtors Association, DLCD, DSL and Business Oregon 11 interveners support Deschutes County’s 2011 REOA / Plan Amendment, 2012 settlement with 1K Friends, LCDC rule- making and 2013 Plan Amendment Mar. 2008 OECDD identifies statewide need for large industrial lots. Recognizes global business trends have emerged as key elements of Oregon’s economy Jan. 2007 LCDC amends OAR 660 Division 9, enabling cities and counties to coordinate REOAs and to designate lands among juris- dictions in a mutually agreed upon proportion Jan. 2010 DLCD awards $50,000 grant to conduct Regional EOA. April 14, 2008 DLCD technical memo regarding 7 elements of EOA provides primary guidance May 2010 County hires Johnson Reid, LLC, a team noted for expertise in real estate and land use economics, to perform REOA June 2010 County convenes Regional Advisory Committee; members include CO cities & counties, state agencies (DSL, Business OR, DLCD), EDCO, La Pine Industrial Group, realtors, developers, and 1.000 Friends. RAC meets 7 times Milestones June 2010 Redmond hosts Central Oregon Industrial Lands Forum with RAC, economic and land use experts, state agency staff, and elected officials. EDCO, Business OR, Iron Wolf Comm Res, and Johnson Reid present Jan. 2011 DLCD awards second grant of $25,500 to describe options to regional gover- nance incl. a preferred approach; draft UGB findings and scheduling approach for bringing in sites; and a model LLI ordinance Apr. 2011 1,000 Friends in sub- committee testimony opposing SB 792, states their work with interests in Central Oregon on the REOA and their support for it. Stresses existing law supports regional economic planning May 2011 Deschutes County hosts Central Oregon Regional Forum. REOA results are shared with elected officials and RAC and next steps for implemen- tation Central Oregon Regional Large-Lot Industrial Land Program May 2011 REOA is finalized. Examples of local gov’t pro- actively planning for indust dev. cited. Technical appendix bolstered based on concerns from 1K Friends May letter. EDCO, Business Oregon, Johnson Reid, LLC respond to it. June 2011 Deschutes County completes the two DLCD TA grants and initiates legislative amend- ments adopting REOA and plan policies into Comp Plan Aug. 2011 County PC conducts two public hearings and rec- ommends adoption. 1 K Friends raises objections. Sept. 2011 Board holds public hearing, continuing it for 30 days to October 31. Oct. 2011 Board w/ financial support from CO partners, contracts w/ Johnson Reid for $2,500 to respond to 1K’s issues. At 10/31 hearing, expert testimony provided by EDCO, Business OR, Johnson Reid , La Pine Indus. Group, Redmond Econ. Dev. Nov. 2011 Board exercises statutory coordi- nation authority and unanimous -ly adopts REOA and plan policies. The findings encompass 62 pages and contain 94 footnotes citing among others, evidence in record Dec. 2011 1 K Friends files a Notice of Intent to Appeal to LUBA Milestones Jan. 2012 Crook County, Cities of Bend, Redmond, La Pine, Prineville, & Madras, EDCO, CO Assoc. of Realtors, DSL, Business OR, & DLCD submit motions to intervene. LCDC formally approves DLCD interven- ing - 1/27 Feb. 2012 DLCD awards third grant of $35,841 to Central Oregon Intergov- ernmental Council to formalize a regional mngmt structure and identify large-lot industrial candidate sites Central Oregon Regional Large-Lot Industrial Land Program Feb. 2012 Deschutes County, DLCD, 1K Friends and Richard Whitman meet in Salem to discuss the possibility of a settlement Mar. 2012 Deschutes County conducts two more meetings with the 1K, DLCD, and Whitman. DLCD commits to narrow rule making. 1K Friends supports settlement based on short-term supply of sites. Apr. 2012 Deschutes County convenes the RAC to determine if there’s consensus for the settlement approach Milestones Mar. 2012 Deschutes County meets with RAC to discuss settlement option Apr. 2012 Deschutes County, with the support of its Central Oregon partners, Governor’s Office and DLCD, negotiates settlement with 1,000 Friends May 2012 DLCD begins initiating narrow rule- making for Central Oregon; COIC discusses regional governance phase of the project June 2012 DLCD convenes a rule-making committee composed of city, county, and 1K Friends and holds its first meeting July 2012 DLCD convenes second and third rule- making committee meeting and on the third, reaches agreement on rule content and approach Central Oregon Regional Large-Lot Industrial Land Program June 2012 COIC adopts Resolution #243 to establish their role as governance authority for Regional Large Lot Industrial Program Sep. 2012 LCDC Hearing Officer takes testimony on the draft rules in Redmond. COIC, Deschutes County and 1K Friends support rule- making (1K Friends (rec’d minor edits) Oct. 2012 Deschutes County drafts Plan policies, findings, and new Large-lot Industrial Land Need Analysis (taken from REOA) and circulates to the RAC for comment. 1K Friends responds with concerns about Analysis Nov. 2012 Deschutes County meets with cities, counties, EDCO, DLCD, DSL, and COAR and receives support for final version of Analysis, findings, and draft policies. Sub-group of attorneys reach out to 1K Friends Milestones Nov. 2012 LCDC holds hearing and adopts on OARs tailored for Central Oregon Large-Lot Industrial Land Need. Rules became effective on December 10, 2012. Dec. 2012 Planning Commission holds work session on draft policies, findings, and Analysis. BOCC conducts a work session to prepare for January hearing Next Steps 1.Crook and Jefferson counties initiate amendments to adopt Analysis and regional industrial land policies into their own Comp Plan. 2.Central Oregon cities and counties sign IGA with COIC 3.Central Oregon cities coordinate with COIC and upon receiving their support, initiate plan amendments to entitle regional large-lot industrial sites Central Oregon Regional Large-Lot Industrial Land Program Aug. 2012 DLCD convenes its fourth and last rule- making committee meeting and reaches consensus on the draft rule Jan. 2013 Board conducts a hearing and adopts policies, findings, and Analysis into Comp Plan. III REVIEWED LEGAL COUNSEL For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Ordinance repealing Ordinance 2011-017, * ORDINANCE NO. 2013-001 and Declaring an Emergency. * WHEREAS, on November 30,2011, the Board of County Commissioners ("Board") adopted Ordinance 2011-017 to amend Title 23 of the Deschutes County Comprehensive Plan to adopt a Regional Economic Opportunity Analysis and Regional Large-Lot Industrial Land Policies for Central Oregon; and WHEREAS, the 1,000 Friends of Oregon ("1,000 Friends") submitted a Notice of Intent to Appeal Ordinance 2011-O17 to the Land Use Board of Appeals on December 21, 2011 (1000 Friends of Oregon v. Deschutes County, LUBA No. 2011-121); and WHEREAS, Deschutes County, 1,000 Friends, the Governor's Office and Oregon Department of Land Conservation and Development ("DLCD") reached a settlement on April 30, 2012; and WHEREAS, in order to complete the tasks agreed to in the settlement, Ordinance 2011-017 must be repealed and a new ordinance adopted, which is Ordinance 2013-002, adopted contemporaneously with this ordinance; and WHEREAS, the Deschutes County Planning Commission reviewed this ordinance at a work session on December 13, 2012 and, on that same date, forwarded to the Board a recommendation to repeal Ordinance No. 2011-017; and WHEREAS, the Board considered this matter after a duly noticed public hearing on January 7, 2013, and on that same date, concluded that the public will benefit from the repeal of Ordinance No. 2011-017; now, therefore, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ORDAINS as follows: Section I. REPEALED. Ordinance 2011-017 is hereby repealed in its entirety. PAGE 1 OF 2 -ORDINANCE NO. 2013-00 1 Section 2. EMERGENCY. This Ordinance being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this Ordinance takes effect on its passage. Dated this ____ of __...__,2013 BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON ANTHONY DeBONE, Chair ALAN UNGER, Vice Chair ATTEST: Recording Secretary TAMMY BANEY, Commissioner Date of 1st Reading: __day of _____, 2013. Date of 2 nd Reading: ~_day of ___ ,2013. Record of Adoption Vote Commissioner Yes No Abstained Excused Anthony DeBone Alan Unger Tammy Baney Effective date: ___ day of _____, 2013. I { r I t f i l r t f !I fPAGE 2 OF 2 -ORDINANCE NO. 2013-001 I f t REVIEWED LEGAL COUNSEL For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Ordinance Adopting a Central Oregon Large-Lot * Industrial Land Need Analysis and Amending the * Deschutes County Comprehensive Plan to Include * ORDINANCE NO. 2013-002 Regional Large-Lot Industrial Land Policies for * Central Oregon and Declaring an Emergency. * WHEREAS, staff initiated this ordinance pursuant to the April 30, 2012 agreement between Deschutes County, 1,000 Friends, the Governor's Office and Oregon Department of Land Conservation and Development ("DLCD") in settlement of J000 Friends of Oregon v. Deschutes County, LUBA No. 2011-121, as outlined in Exhibit 0, attached and incorporated by reference herein; and WHEREAS, the Deschutes County Planning Commission reviewed this ordinance at a work session on December 13,2012 and, on that same date, forwarded to the Board a recommendation of approval; and WHEREAS, the Board of County Commissioners considered this matter after a duly noticed public hearing on January 7, 2013, and on that same date finds it in the public interest to adopt a Central Oregon Large­ Lot Industrial Land Needs Analysis and corresponding regional large-lot industrial land policies into the Comprehensive Plan; and WHEREAS, because three years have passed since the project to create and adopt regional large lot industrial land policies began, these new policies could provide a dramatic improvement in the Central Oregon economic situation such that a delay in the effective date could considerably delay the region's ability to take advantage ofthese new policies; now, therefore, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ORDAINS as follows: Section 1. AMENDMENT. Deschutes County Code 23.01.010, Introduction, is amended to read as described in Exhibit "A," attached and incorporated by reference herein, with new language underlined and deleted language set forth in strili'ethrol:lgh. Section 2. AMENDMENT. The Deschutes County Comprehensive Plan, Chapter 4, Urban Growth Management, is amended to read as described in Exhibit "B," attached hereto and by this reference incorporated herein, with new language underlined and language to be deleted in strikethrough. Section 3. AMENDMENT. The Deschutes County Comprehensive Plan, Chapter 5, Supplemental Sections, is amended to read as described in Exhibit "C," attached hereto and by this reference incorporated herein, with new language underlined and language to be deleted in strikethrough. PAGE I OF 2 -ORDINANCE NO. 2013-002 Section 4. FINDINGS. The Board adopts as its findings Exhibit "D," attached and incorporated by reference herein. Section 5. EMERGENCY. ,This Ordinance being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this Ordinance takes effect on its passage. Dated this ___of ____-", 2013 BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON ANTHONY DeBONE, Chair ALAN UNGER, Vice Chair ATTEST: Recording Secretary TAMMY BANEY, Commissioner Date of 15t Reading: day _____,2013. Date of 2nd Reading: __day of _____, 2013. Record of Adoption Vote Commissioner Yes No Abstained Excused Anthony DeBone Alan Unger Tammy Baney Effective date: __day of ____-:>, 2013. PAGE 2 OF 2 -ORDINANCE NO. 2013-002 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. The Deschutes County Comprehensive Plan amendments, adopted by the Board in Ordinance 2013-002, are incorporated by reference herein. (Ord. 2013-002 §l. 2013; Ord. 2012-016 §l, 2012; Ord. 2012-013 §1, 2012; Ord. 2012-005 §l, 2012; Ord. 2011-027 § 1 through ] 2, 2011; Ord.20 11-003 §3, 2011 ) 1 i ~ I I Page 1 of 1 -EXHIBIT "A" TO ORDINANCE 2013-002 Bend Redmond Sisters Madras Prineville La Pine December 17, 2012 In 2008, the Oregon Economic and Community Development Department’s (now Business Oregon) industrial lands specialist Bev Thacker stated in a letter, “Large, ready to go industrial sites have been the state’s most significant development challenge and one of the most noticeable changes in real estate trends in [the] last few years.” She specifically identified a statewide need of industrial lands of 100-200 acres in size. Economic Development for Central Oregon (EDCO) also identified similar challenges for the tri-county (Deschutes, Jefferson and Crook) region. Executive Director Roger Lee and others have repeatedly stated that site selectors often will not even visit the region if only one or two sites are available. The arrival of Facebook and Apple, while unique in many regards, has put Central Oregon on the international map for data centers among other potential large lot employers. However, the region lacks a supply of sites and cities’ traditional Economic Opportunity Analyses (EOAs) do not account for such a land demand. This project aimed to determine if such a land demand exists in Central Oregon and, if so, to identify the deficiency. A Regional Economic Opportunity Analysis (REOA) attempted to document an unmet 20-year land need for large lot industrial sites in the region. On November 28, 2011 Deschutes County adopted a Comprehensive Plan amendment to officially recognize the REOA as a technical study, and a series of policies that establish the legal basis to encourage cities to address this unmet employment land need as well as a planning framework for creating a regional entity to oversee the program. The amendment was appealed by 1,000 Friends of Oregon to the Land Use Board of Appeals. However, a settlement was reached in April 2012 with the assistance of the Governor’s office, Department of Land Conservation and Development (DLCD), and members of a Regional Advisory Committee (RAC). It focused entirely on the short- term need for large-lot industrial sites as well as a commitment from the Oregon Department of Land Conservation and Development (DLCD) to initiate rule -making. Below is a summary of the legal basis for the Central Oregon Large Lot Industrial Project and its accomplishments to date. 1. NEW ADMINISTRATIVE RULES / OAR DIVISION 24. The Land Conservation and Development Commission (LCDC) adopted administrative rules (OAR 660-0024-0040 and 660-024-0045) in November 2012 tailored to Central Oregon’s short-term need for large lot industrial sites. The rules allow cities in the tri-county region to utilize a regional large lot industrial land need analysis, largely taken from the REOA, as the justification. The rules, which became effective on December 10, 2012 recognize a need for six 50+ acres sites and up to three for replenishment. They also address how cities may amend their Urban Growth Boundaries (UGB), thereby providing a clear legal framework for Central Oregon to address a known land use deficiency. Central Oregon Large Lot Industrial Program NNEEWW RREEGGIIOONNAALL AAPPPPRROOAACCHH 1. Two DLCD Technical Assistance (TA) Grants funded: a) $50,000.00 for a technical study to determine a regional land need not currently recognized in existing City EOAs (Phase 1, 2009-2011). b) $25,500.00 for Regional Governance Approaches, Site Suitability Characteristics, Model Large Lot Industrial Overlay Zone (Phase 1, 2009-2011). c) $35,000.00 to establish regional authority with COIC (Phase 2, 2011- 2013). 2. Deschutes County created a Regional Advisory Committee to oversee the project. Members included: cities, counties, EDCO, COIC, 1000 Friends of Oregon, Central Oregon Realtors Association, DLCD, DSL and Business Oregon. 3. RAC hired Johnson Reid LLC, consultant team, with expertise in real estate development and land use economics. 4. New regional approach addresses the recent demand of large-lot employers and rapidly growing industries that are building production and research capabilities to establish global scale. 5. Land Conservation and Development Commission (LCDC) adopted rules in November 2012 tailored to Central Oregon’s short-term need for large lot industrial sites. 6. Deschutes County is now exercising its statutory coordinating authority (ORS 195.025) to address this short-term unmet regional need for large-lot industrial sites. It assures an integrated comprehensive plan between the County and its respective cities by encouraging them to address it. 7. Deschutes County is also voluntarily coordinating with Crook and Jefferson Counties and their respective cities as authorized in ORS 190.003- 190.620 to exercise their coordination authority with parallel plan amendments. 2. CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS. The County can now demonstrate that the evidentiary record and findings support a regional approach to large-lot industrial siting and that it is consistent with Oregon’s Land Use Program. The “Analysis” d ocuments an unmet short-term need for large-lot industrial sites, 50-acres or larger in tri-county area with: o National, state and local economic trends and conditions o Large-lot industry trends, dynamics, opportunities, and site needs o Local objectives and their respective strengths and challenges o Business Oregon data o Expert opinion by Johnson-Reid LLC, EDCO, and others The “Analysis” recognizes that a readily available and developable inventory of six large sites in at least three separate jurisdictions will provide for choice to prospective industries or site selectors. 3. LAND DEMAND. Economic development focuses on short-term, 5-year time frames. This program does the same. The table below shows the short-term large lot industrial inventory for Central Oregon. The minimum site is between 50-100 acres. The largest one, a 200+ acre site needs to be near the region’s geographic and workforce center in either Bend or Redmond. Recommended Competitive Short-term Large Lot Industrial Inventory 50-100 acres 100-200 acres 200 + acres TOTAL SHORT-TERM # of Sites 3 2 1 6 Jurisdictions 3 2 1 4. CENTRAL OREGON’S COMPETITIVENESS. Competing as a cohesive region allows Central Oregon to market a larger available work force, the size of which is often a key locational criterion for firms. While geographically separate, the jurisdictions in the region function in a manner similar to other metropolitan areas, which often share boundaries. The shared economic function within Central Oregon supports a regional approach to economic development, particularly with respect to large traded sector industries. 5. REGIONAL AUTHORITY. The Central Oregon Intergovernmental Council (COIC) as the beneficiary of a DLCD TA Grant has formalized their organization as the regional authority to organize, coordinate and promote large-lot industrial strategy. 6. SITE-NEED CHARACTERISTICS. Physical: 50 acres or above. Flat slopes. Rectangular sites. Transportation: accessible or in close proximity to auto/truck, rail and air service. Utilities: water, sewer, natural gas, electricity/power, telecommunications. Location: acceptable distance to work force. Special considerations: willing property owner to sell at market consistent price and participate in infrastructure investments to support the development. 7. IMPLEMENTATION NEXT STEPS. (1) Adoption of Deschutes County’s Comprehensive Plan amendment. (2) Jefferson and Crook Counties adopt similar plan amendments. (3) COIC finalizes Intergovernmental Agreements with Central Oregon cities and counties. (4) Cities comply with new administrative rules and the statewide planning program requirements to change land designations for large lot employment sites, and collaborate with willing property owners. (5) Cities adopt plan amendments and Large Lot Overlay Zone. (6) EDCO markets the region’s short-term supply of vacant, developable sites. COMPREHENSIVE PLAN AMENDMENT GOAL 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. POLICIES (abbreviated) 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. Deschutes County recognizes the importance of maintaining a large-lot industrial land supply that is readily developable in Central Oregon. The Central Oregon Regional Large Lot Industrial Land Need Analysis (“Analysis”), adopted by Ordinance 2013-002 is incorporated by reference herein. Within 6 months of the adoption of [Deschutes County] Ordinance 2013- 002, in coordination with the participating local governments in Central Oregon, Deschutes County shall, execute an intergovernmental agreement with the Central Oregon Intergovernmental Council that specifies the process of allocation of large lot industrial sites among the participating local governments. 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. Page 1 of 1 – EXHIBIT “A” TO ORDINANCE 2013-002 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. (Ord. 2013-002 §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.2011-003 §3, 2011) DESCHUTES COUNTY COMPREHENSIVE PLAN – 2011 1 CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION PAGE 1 OF 9 – EXHIBIT “B” TO ORDINANCE 2013-002 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 2000 Sources 1980 1990 2000 2010 Population Research Center July 1 estimates 62,500 75,600 116,600 172,050 US Census Bureau April 1 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. Section 4.2 Urbanization 2 DESCHUTES COUNTY COMPREHENSIVE PLAN – 2011 CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION PAGE 2 OF 9 – EXHIBIT “B” TO ORDINANCE 2013-002 Table 4.2.2 – Coordinated Population Forecast 2000 to 2025 Year Bend UGB Redmond UGB Sisters 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 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 Source: 2004 Coordinated Population Forecast for Deschutes County 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 the growth rate to the year 2025, La Pine’s population will be 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 3 CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION PAGE 3 OF 9 – EXHIBIT “B” TO ORDINANCE 2013-002 Table 4.2.4 – Deschutes County 2030 Population Forecast Year Bend UGB Redmond UGB Sisters UGB La Pine UGB Unincorporated County Total County 2030 119,009 51,733 4,426 2,632 88,748 266,538 Source: County 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 u nit 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. 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. 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 Bend 45% Redmond 19% La Pine 1% Sisters 2% Unincorporated Area 33% In 2030 Figure 4.1 Deschutes County 2030 Estimated Population 4 DESCHUTES COUNTY COMPREHENSIVE PLAN – 2011 CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION PAGE 4 OF 9 – EXHIBIT “B” TO ORDINANCE 2013-002 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 the Board of County Commissioners adopted respective ordinances. The Redmond UGB expansion covered 2,299 acres and satisfied a 20 year demand for residential and neighborhood commercial land. 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. 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 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 DESCHUTES COUNTY COMPREHENSIVE PLAN – 2011 5 CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION PAGE 5 OF 9 – EXHIBIT “B” TO ORDINANCE 2013-002 growing and diverse tourism and household base. Accelerated in-migration and tourism growth gave way to rapid economic expansion, escalation in home prices, and a systematic shift in the 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 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 6 DESCHUTES COUNTY COMPREHENSIVE PLAN – 2011 CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION PAGE 6 OF 9 – EXHIBIT “B” TO ORDINANCE 2013-002 consider the region that may not have otherwise without the availability of these large lots. Participating local governments will review the program after all nine sites have been occupied or after ten years, whichever comes first. DESCHUTES COUNTY COMPREHENSIVE PLAN – 2011 7 CHAPTER 4 URBAN GROWTH MANAGEMENT REFERENCES PAGE 7 OF 9 – EXHIBIT “B” TO ORDINANCE 2013-002 Section 4.2 Urbanization Policies Goals and 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. 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 location of public facilities and services provision consistent with city plans. 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 8 DESCHUTES COUNTY COMPREHENSIVE PLAN – 2011 CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION PAGE 8 OF 9 – EXHIBIT “B” TO ORDINANCE 2013-002 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 4.2.11 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 9 CHAPTER 4 URBAN GROWTH MANAGEMENT REFERENCES PAGE 9 OF 9 – EXHIBIT “B” TO ORDINANCE 2013-002 Policy 4.2.19 Deschutes County will strengthen long-term confidence in the economy by building innovative public to private sector partnerships. 44 DESCHUTES COUNTY COMPREHENSIVE PLAN – 2011 CHAPTER 5 SUPPLEMENTAL SECTIONS SECTION 5.12LEGISLATIVE HISTORY PAGE 1 OF 1 - EXHIBIT “C” TO ORDINANCE 2013-002 Background This section contains the legislative history of this Comprehensive Plan. Table 5.11.1 Comprehensive Plan Ordinance History Ordinance Date Adopted/ Effective Chapter/Section Amendment 2011-003 8-10-11/11-9-11 All, except Transportation, Tumalo and Terrebonne Community Plans, Deschutes Junction, Destination Resorts and ordinances adopted in 2011 Comprehensive Plan update 2011-027 10-31-11/11-9-11 2.5, 2.6, 3.4, 3.10, 3.5, 4.6, 5.3, 5.8, 5.11, 23.40A, 23.40B, 23.40.065, 23.01.010 Housekeeping amendments to ensure a smooth transition to the updated Plan 2012-005 8-20-12/11-19-12 23.60, 23.64 (repealed), 3.7 (revised), Appendix C (added) Updated Transportation System Plan 2012-012 8-20-12/8-20-12 4.1, 4.2 La Pine Urban Growth Boundary 2012-016 12-3-12/3-4-13 3.9 Housekeeping amendments to Destination Resort Chapter 2013-002 1-7-13/1-7-13 4.2 Central Oregon Regional Large-lot Employment Land Need Analysis Section 5.12 Legislative History PAGE 1 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 FINDINGS PROPOSED PLAN AMENDMENT The proposed amendments to Deschutes County’s Comprehensive Plan are described in Ordinance 2013-002, Exhibits A, B, and C. Added language is underlined and deleted shown as strikethrough. BACKGROUND Ordinance 2011-017 Deschutes County received two Technical Assistance Grants from the Department of Land Conservation and Development (DLCD) in 2010 to evaluate Central Oregon’s opportunities, competitiveness, and ability to recruit new and locally grown firms requiring new large scale development models. Johnson-Reid, LLC was selected from a pool of consultants to develop a Regional Economic Opportunity Analysis (REOA). Over the course of eleven months, the REOA went through several iterations with the assistance of a Regional Advisory Committee (RAC). The RAC con sisted of Central Oregon cities and counties, Johnson-Reid LLC, Business Oregon, DLCD, Department of State Lands, Central Oregon Intergovernmental Council (COIC), 1,000 Friends of Oregon (1,000 Friends), Economic Development for Central Oregon (EDCO), Central Oregon Association of Realtors and private area developers. The RAC met officially six times before the REOA was finalized on May 31, 2011. The REOA project aimed to determine if such an industrial land demand exists in Central Oregon and, if so, to identify the deficiency. The study attempted to document an unmet twenty year land need for large lot industrial sites in the region. It also concluded that competing as a cohesive region can allow Central Oregon to market a larger available work force, the size of which is often a key loca tional criterion for firms. While geographically separate, the jurisdictions in the region function in a manner similar to other metropolitan areas like Reno and Salt Lake City, which often share boundaries. According to the REOA, the shared economic function within Central Oregon supports a regional approach to economic development, particularly with respect to large traded sector industries. Deschutes County exercised its statutory coordinating authority (ORS 195.025) to address this unmet regional need for large-lot industrial sites through Ordinance 2011- 017. New comprehensive plan policies and the REOA provided the policy framework for designating lands among coordinating jurisdictions in a mutually agreed proportion. Ordinance 2011-017 attempted to integrate comprehensive plans between the County and its respective cities by encouraging them to address a short and long-term specialized employment land need. Ordinance 2011-017 was adopted by the Board of County Commissioners on November 30 2011, but was appealed to the Land Use Board of Appeals by 1,000 Friends.1 The appeal however, was stayed in early 2012 to 1 1,000 Friends submitted a Notice of Intent to Appeal to LUBA on December 21, 2011. PAGE 2 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 allow Deschutes County, the Governor’s Office, and 1,000 Friends to explore a settlement. Spanning three months, a settlement was ultimately rea ched in April 2012. The settlement consisted of an agreement that the technical document produced would not be called an Economic Opportunity Analysis (EOA) as that term is understood in Oregon land use law. 1000 Friends agreed that the region has a need for up to nine large industrial lots in Central Oregon and the parties agreed upon policy principles guiding how those sites could be incorporated into existing UGBs. 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 DLCD to initiate rule-making later in the summer. Ordinance 2013-002 Because of the unique nature of the agreement, DLCD agreed to memorialize the agreement in rule. OAR 660-024-0040(1) and (5) and 660-024-0045 were narrowly crafted to implement the intent of the agreement so it still complies with Goals 9 and 14. The amendments are applicable in only Crook, Deschutes and Jefferson counties. After receiving support from a rule-making committee consisting of the parties to the LUBA appeal, in August, a final draft was forwarded to the Land Conservation and Development Commission (LCDC) for their consideration on November 15, 2012. At the meeting, LCDC took public testimony, considered a staff recommendation and adopted amendments to administrative rules at Chapter 660-024. They became effective on December 10. Rule-making now provides a clear legal framework for local governments in Central Oregon to address a known deficiency of large -lot industrial sites. Utilizing the new OARs, Ordinance 2013-002 now responds to Central Oregon’s short term need for nine competitive and diverse vacant, developable large lot industrial sites. These sites can enable site selectors, representing potential industrial businesses, to consider the region. COIC has agreed to manage the distribution of sites among the various jurisdictions through intergovernmental agreements. Participating local governments will review the program after the regional supply of six sites has either been replenished by three additional sites or after ten years, whichever comes first.2 REVIEW CRITERIA Ordinance 2013-001 repeals Ordinance 2011-017. Ordinance 2013-002 adopts the Central Oregon Large Lot Industrial Land Need Analysis (Analysis) and several regional large-lot industrial land policies into Deschutes County’s Comprehensive Plan to comply with the new OARs.3 Deschutes County lacks specific criteria in Deschutes County Code (DCC) Titles 18, 22, or 23 for reviewing a legislative plan amendment. Nonetheless, since Deschutes County is initiating one, the County bears the responsibility for justifying that the amendments are consistent with Oregon Revised 2 OAR 660-024-0045(13) 3 OAR 660-024-0045(2)(a): “Analysis” means the document th at determines the regional large lot employment 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. PAGE 3 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 Statutes (ORS), Statewide Planning Goals, OARs, and its existing Comprehensive Plan. The findings are organized as follows: Section (1) - ORS 195.025 Section (2) - Statewide Planning Goal 1, Citizen Involvement Section (3) - Other ORS Section (4) - OAR Division 9, Economic Development Section (5) - OAR Division 24, Urban Growth Boundaries Section (6) - Other Statewide Planning Goals Section (7) - Deschutes County Comprehensive Plan Section (1), ORS 195.025 * ORS 195.025 (1) In addition to the responsibilities stated in ORS 197.175, each county, through its governing body, shall be responsible for coordinating all planning activities affecting land uses within the county, including planning activities of the county, cities, special districts and state agencies, to assure an integrated comprehensive plan for the entire area of the county. Finding: Deschutes County, through its governing body, is exercising its statutory coordinating authority to address a short-term regional need for large-lot industrial sites. This authority will assure there is an integrated comprehensive plan between Deschutes County and its respective cities by encouraging Bend, La Pine, Redmond, and Sisters to address a short-term specialized employment land need of six industrial sites, 50 acres or larger in three different jurisdictions. Aided by new OARs (660-024-0045(5a) and 660-024-0045(7)), Deschutes County is fulfilling its regional coordination responsibilities by formalizing, through policies, a regional governance and land use planning framework with COIC.4 COIC serves as the Economic Development District representing Crook, Deschutes a nd Jefferson counties as designated by the Economic Development Administration.5 Deschutes County is applying its coordination authority to cities as well, for those willing to fulfill this regional short-term employment need, consistent with Oregon’s Statewide Planning Program. Deschutes County’s plan amendment provides the policy framework for the tri-county region to coordinate as a single entity promoting large -lot industrial employments sites that best serve the region as a whole to create family wage jobs, 4 COIC is a Council of Governments organized under ORS 190 by the three counties and seven cities of Central Oregon. COIC is governed by a 15-member board made up of elected officials appointed by each of the member governments and appointed representatives of key economic sectors. OAR 660-024-045(5a) requires local governments to enter into an intergovernmental agreement with COIC. OAR 660-024-045(7) describes COIC’s coordination process. 5 Central Oregon Comprehensive Economic Development Strategy , Approved by the Central Oregon Community Investment Board, November 29, 2007, 5. One function of the Economic Development District is developing and maintaining and updating the Comprehensive and Economic Development Strategy (CEDS). The CEDS is the result of a local planning effort, and serves as a guide for regional growth. PAGE 4 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 region economic diversification and place Central Oregon on the map for regional, national and international industrial recruitment. Upon adoption, Crook and Jefferson counties will adopt a similar amendment to their comprehensive plans. Once all th ree counties complete their plan amendments, municipalities in the region will be able rely on the Analysis to address the short-term need for large-lot industrial sites.6 * ORS 195.025: (2) For the purposes of carrying out ORS chapters 195, 196 and 197, counties may voluntarily join together with adjacent counties as authorized in ORS 190.003 to 190.620. Finding: Deschutes County is voluntarily coordinating with Crook and Jefferson counties and the cities of Prineville, Madras, Bend, Redmond Sisters and La Pine as authorized in ORS 190.003- 190.620. Deschutes County wants to assure that Crook and Jefferson counties also exercise their coordination authority with parallel plan amendments so there is a collective and regional response to an unprecedented opportunity to establish a short-term supply of large-lot industrial sites in Central Oregon. These efforts will result in the joint adoption of the Analysis, policies, and findings. Crook and Jefferson counties will initiate their own plan amendments in early 2013. Section (2) – Statewide Planning Goal 1, Citizen Involvement Goal: To develop a citizen involvement program that insures the opportunity for citizens to be involved in all phases of the planning pro cess. The citizen involvement program shall incorporate the following components: 1. Citizen Involvement -- To provide for widespread citizen involvement. 2. Communication -- To assure effective two-way communication. 3. Citizen Influence -- To provide the opportunity for citizens to be involved in all phases of the planning process. 4. Technical Information -- To assure that technical information is available in an understandable form. 5. Feedback Mechanisms – To assure that citizens will receive a response from policy-makers. Finding: Deschutes County has undertaken an extensive process to satisfy the components of Goal 1 to allow ample opportunities for citizens and stakeholders to participate in this process. Last fall, after four public hearings, Deschutes County adopted Ordinance 2011-017 on November 30, 2011. As mentioned earlier, Ordinance 2011-017 was subsequently appealed to the Land Use Board of Appeals by 1,000 Friends. The appeal however, was settled in April 2012. During that process, Deschutes County collaborated regularly with the RAC to obtain their input and eventual 6 OAR 660-024-0045(5b). PAGE 5 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 endorsement. One of the outputs of the settlement was a commitment from DLCD to initiate rule-making. After receiving support from a Central Oregon Large Industrial Lot Rules Advisory Committee which met four times over the summer, a draft was forwarded to LCDC for their consideration.7 A public hearing conducted by a LCDC hearings officer was held in Redmond on September 27, 2012, followed by a hearing with the full commission on November 15, 2012 in McMinnville. LCDC adopted the rules on November 15. They became effective on December 10. The Deschutes County Planning Commission held a work session on December 13. The Board of County Commissioners held a public hearing on January 7, 2013. Section (3) - Other ORS * ORS 195.025 (1) In addition to the responsibilities stated in ORS 197.175, each county, through its governing body, shall be responsible for coordinating all planning activities affecting land uses within the county, including planning activities of the county, cities, special districts and state agencies, to assure an integrated comprehensive plan for the entire area of the county. Finding: See Section 1, page 3. * ORS 195.025 (2) For the purposes of carrying out ORS chapters 195, 196 and 197, counties may voluntarily join together with adjacent counties as authorized in ORS 190.003 to 190.620. Finding: See Section 1, page 4. * ORS 197.712 (1) In addition to the findings and policies set forth in ORS 197.005, 197.010 and 215.243, the Legislative Assembly finds and declares that, in carrying out statewide comprehensive land use planning, the provision of adequate opportunities for a variety of economic activities throughout the state is vital to the health, welfare and prosperity of all the people of the state. (2) By the adoption of new goals or rules, or the application, interpretation or amendment of existing goals or rules, the Land Conservation and Development Commission shall implement all of the following: (a) Comprehensive plans shall include an analysis of the community’s economic patterns, potentialities, strengths and deficiencies as they relate to state and national trends. Finding: Deschutes County is proposing comprehensive plan amendments that include an Analysis that documents Central Oregon’s need for establishing a short-term supply 7 Crook, Jefferson and Deschutes counties, 1,000 Friends, Cities of Redmond, Bend, La Pine, and Madras, COIC, EDCO, and a Citizen Involvement Advisory Committee member participated on the rules advisory committee. PAGE 6 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 of large-lot industrial sites.8 The Analysis identifies the strengths and challenges of the Central Oregon economy and concludes that the competitive characteristics of Central Oregon can be strengthened through taking a regional approach to large-lot industrial siting.9 Deschutes County finds that to have a fully-developed program that serves the broadest range of area citizens and businesses, it is critical to be competitive in the segment of economic development that depends on the availability of readily -served, large-lot employment sties. As such, as a matter of policy, the county chooses to identify and implement a program to create a short-term large-lot land supply that enables Central Oregon to be a competitive region for industrial recruitment. Central Oregon’s traditional industrial base remains active in the local economy, and the region would like to increase its emphasis on industrial employment to strengthen that base .10 The region's supply of affordable land, low cost utilities, quality of life, and organized economic development landscape makes it an attractive option for growth in many traded sector industries.11 Central Oregon economic development efforts have been negatively impacted by a lack of readily available large -lot industrial sites. Major employers in traded sector industries (export industries) are the primary drivers of economic growth, providing the impetus for net growth in the regional economy and supporting a wide range of support industries. At the state and local level, policy makers understand the importance that large-scale employers can have on the local economy. In 2007 Centra l Oregon was home to three firms with 1,000 or more employees and an additional five with at least 500.12 In a structural sense, globalization has changed the way manufacturers conduct business. Cost and efficiency are the central tenants of an increasingly competitive market. Firms are increasingly pressured to develop more capital intense production models, placing a greater emphasis on economies of scale, as well as production efficiency and flexibility. Time-to-market for firms has become an even more crucial factor as they make decisions to locate new plants and facilities. The result has been the emergence of a clear real estate trend, creating a global demand for large development ready industrial sites, with the immediacy of utility servi ces (both public and private sector) of critical importance.13 Deschutes County’s choice to pursue a regional short-term supply of large-lot industrial employment sites is also consistent with Central Oregon’s Comprehensive Economic Development Strategy (CEDS). According to this report, two of Central Oregon’s Long- Term Priority Goals are: * Goal XIII: Sufficient supply of land affordable for commercial, industrial and residential development. 8 See note 3 above. 9 Central Oregon Large-Lot Industrial Land Need Analysis. Pages 35; 42-47. 10 Ibid., 7. 11 Ibid. 12 Ibid., 10. 13 Ibid., 7 PAGE 7 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 * Goal XVI: Ongoing regional planning is in place to preserve an d enhance the region’s economic appeal and effect orderly economic development. One of Central Oregon Community Investment Board’s short-term priorities promotes: * Structures and processes of public and private organizations to effectively create, adapt, foster and sustain economic development in Central Oregon.14 Through the CEDS planning process, past regional needs and issues processes, the 2007 infrastructure needs inventory, and through other methods of economic analysis, the following projects, programs and activities have been identified for focus over the next six years: * Support of industry clusters. * Assist in the retention, expansion and recruitment of secondary wood products, aerospace production and parts, targeted sectors including apparel and sporting goods, aerospace including information technology, renewable energy, light industrial and manufacturing, and research and development.15 As noted in the CEDS, new traded sector and investment is critical for building a strong regional economy. A strategy that increases prosperity for all Central Oregon residents in rural and urban communities by balancing, diversifying and developing the region’s economy has been promoted by economic development theorists and practitioners as a critical underpinning of a health community or regional economy. Three objectives promote: 1. Facilitating new job creation and economic diversification through recruitment of diverse new traded-sector companies across all industries that offer family-wage employment; 2. Facilitating new job creation through expansion of existing traded -sector companies across all industries that offer family-wage employment; and 3. Supporting retention of existing traded-sector companies across all industries that offer family-wage employment.16 Local trends documenting large lot recruiters visiting Central Oregon are also quite noteworthy. The following list cites this evidence: * According to Business Oregon, Central Oregon experienced four active recruitments in the past six months looking at industrial lots 50 acres and greater. One firm was looking for a site in the 100 to 150 range, while three have been looking for sites in the 150 to 200 acre range. One firm 14 See note 5 above (Central Oregon Comprehensive Economic Development Strategy ), 4 and 17. 15 Ibid. 16 Ibid., 14. PAGE 8 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 was lost due to the uncertainty of and land use actions that were required, and the properties proposed were eliminated from consideration and it is not known if the company has reached a final location decision. That search started in the 50-100 lot size and then expanded to the 150 -200 lot size. The other three are still in the active stage and no additional details can be furnished because of nondisclosure agreements that are in place.17 * The La Pine Industrial Group has had several companies look at our certified 77-acre site in La Pine but the most active prospect was the Ferguson Corporation out of Virginia. They were looking for a site for a Northwest distribution center for their product line of bathroom and other plumbing fixtures. They wanted a site that would accommodate an initial 500,000 sq. ft. of buildings and would be expandable to 1,000,000 sq. ft. Initial employment was to be 200 workers, expanding to 400 in the second phase. There was also a requirement for a rail spur with extensive on -site trackage to move products in and out. They were not sure our site was large enough so Mid-State Electric Cooperative developed a site plan to show that it could meet their specifications.18 * Jon Stark, Redmond Economic Development Manager for Economic Development for Central Oregon described a recruiter recently visiting Redmond.19 * Michael Williams, Oregon Business Development, Industrial Lands Specialist, described recruiters visiting Central Oregon, as well as the heightened interest expressed by companies once Facebook committed to a site in Prineville.20 * ORS 197.712 (2)(b) Comprehensive plans shall contain policies concerning the economic development opportunities in the community. Finding: Deschutes County is responding to a specific short-term employment need recognized in OAR 660-024-0045(2a) and identified in an Analysis for large-lot industrial sites. As shown in Exhibit B, Deschutes County is adopting several regional industrial land policies to comply with ORS 197.712 (2)(b) that recognize Central Oregon’s economic development opportunities for establishing a short-term supply of large-lot industrial sites. * ORS 197.712 (2)(c) Comprehensive plans and land use regulations shall provide for at least an adequate supply of sites of suitable sizes, types, locations and service levels for industrial and commercial uses consistent with plan policies. 17 Jerald Johnson, Johnson-Reid LLC, October 21, 2011, 5 18 Lee Smith, General Manager La Pine Industrial Group, October 27, 2011, email. 19 Oral Testimony, Board of County Commissioners public hearing, October 31, 2011. 20 Ibid. PAGE 9 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 Finding: Deschutes County is exerting its statutory coordination authority to encourage cities to address an unmet, short-term large-lot industrial land need by adopting an Analysis and several regional industrial land policies. As noted in OAR 660-024-0045(4) and the Analysis, there is a demonstrated need for vacant, suitable and available large- lot industrial sites in Central Oregon. The short-term need encompasses six, 50 acre or greater sites, in three different jurisdictions, with two of those sites being between 100 to 200 acres, and one over 200 acres. The Analysis identifies site need characteristics for large-lot industrial sites and recommends a competitive, short-term inventory.21 * ORS 197.712 (2)(d) Comprehensive plans and land use regulations shall provide for compatible uses on or near sites zoned for specific industrial and commercial uses. Finding: Ordinance 2013-002 adopts the Analysis and several regional large-lot industrial land policies into Deschutes County’s comprehensive plan to comply with the new OARs. Participating cities will need to address this criterion when they propose a large-lot industrial site into their comprehensive plans and land use regulations to demonstrate the use is compatible on or near industrial and commercial zones. It is important to note that based on the new OARs adopted by LCDC, a participating city that designates a large-lot industrial site is required to apply a regional large -lot industrial zone or overlay zone to it in order to protect and maintain the site for regional large lot purposes.22 * ORS 197.712 (2)(g) Local governments shall provide: (A) Reasonable opportunities to satisfy local and rural needs for residential and industrial development and other economic activities on appropriate lands outside urban growth boundaries, in a manner consistent with conservation of the state’s agricultural and forest land base; and (B) Reasonable opportunities for urban residential, commercial and industrial needs over time through changes to urban growth boundaries. Finding: Based on the new OARs, a participating city may amend its comprehensive plan and land use regulations, including its Urban Growth Boundaries (UGB), in order to designate a large-lot industrial site in accordance with OAR 660-024-0045(8). Section (4) - OAR Division 9, Economic Development * OAR 660-009-0010 - Application (1) 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. 21 See note 9 above (Central Oregon Large-Lot Industrial Land Need Analysis), 52-56; 62. 22 OAR 660-024-0045(9), (10). PAGE 10 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 Finding: This track is different from an EOA first because OAR 660-024-0040 provides an alternative path for this pilot project. The new path encompasses all of the steps of an EOA (trend analysis, site types, inventory and estimate of needed sites). But because these steps are distributed in both time and authority between three counties (trends, site types and need estimate) and cities (inventory and location analysis), there was concern that the standard EOA path would be confusing and possibl y troublesome. Due to rule-making, OAR 660-024-0040(1) and (5) acknowledge that local governments in Crook, Deschutes and 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. Section (5) - OAR Division 24, Urban Growth Boundaries * OAR 660-024-0040 - Land Need (1) The UGB must be based on the adopted 20 -year population forecast for the urban area described in OAR 660 -024-0030, 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. A local government in Crook, Deschutes and 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. (5) Except for a metropolitan service district described in ORS 197.015(13), the determination of 20-year employment land need for an urban area must comply with applicable requirements of Goal 9 and OAR chapter 660, division 9, and must include a determination of the need for a short-term supply of land for employment uses consistent with OAR 660-009-0025. Employment land need may be based on an estimate of job growth over the planning period; local government must provide a reasonable justification for the job growth estimate but Goal 14 does not require that job growth estimates necessarily be proportional to population growth. A local government in Crook, Deschutes and 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: Deschutes County is now exercising the provisions of OAR 660-024-045(5) by adopting the Analysis into its comprehensive plan that documents the short-term need for regional large-lot industrial land. As demonstrated in the Analysis and summarized in the table below, Deschutes County, by exercising its statutory coordination authority, has chosen to compete for large-lot industrial employers by creating a dynamic and competitive short-term large-lot industrial land supply portfolio and inventory that appeal to industrial site selectors. Deschutes County is basing its decision on an adequate factual base supported by substantial evidence in the record and is choosing to rely on the Analysis. PAGE 11 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 Table 1 - Central Oregon Large-Lot Industrial Land Need Synopsis Objective Ensure that the regional industrial land inventory is adequate to support the specific needs of large lot industrial users.23 Evidence In 2008, the Oregon Economic and Community Development Department (now Business Oregon) recognized that large, ready to go industrial sites have been the state’s most significant development challenge and one of the most noticeable changes in real estate trends in the last few years. This change in demand and the changing nature of OECDD’s account base clearly document that global business trends have emerge as key elements of Oregon’s economy.24 Economic Development for Central Oregon recognizes that the recru itment of companies in new and existing industries is an important component of any successful economic development program and diversification strategy. New companies bring a different mix of professional and technical talent to communities that can spawn other businesses and technologies.25 The Analysis provides reasonable information and analysis pointing to an unmet short-term land need for large-lot employment sites, currently not part of regional economic development efforts . Goal 9 and Division 009 require that employment land planning be based on comparative location advantages and an articulation of opportunities based on national, state, regional and local trends. The Analysis cites large-lot employment trends and dynamics of the global market place, the strengths and challenges of Central Oregon’s economy and the opportunities for the region to compete for large -lot employers in the data center, high technology and warehouse and distribution industries.26 Conclusion The county finds that the Analysis has been appropriately and reasonably tailored to address conditions and policies unique to the Central Oregon region. Deschutes County finds that as a matter of policy, it may choose how to structure its community and economic development activities, provided those activities are consistent with applicable local, state and federal laws and policies, including those for land use planning. Central Oregon chooses to invest in large-lot industrial sites because it is an additional tool to broaden the region’s economic attractiveness. While trade sector industries are primary drivers of job creation, the Analysis does not assume that large employers are those drivers. Instead, large-lot industrial demand recognizes that accommodating these types of users reflects a reasonable component of an economic development strategy.27 * OAR 660-024-0045 - Regional Large Lot Industrial Land (1) Local governments in Crook, Deschutes or Jefferson 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. 23 See note 9 above (Central Oregon Large-Lot Industrial Land Need Analysis), 11. 24 Bev Thacker, Rail Served & Large Industrial Sites Memorandum, March 11, 2008, 1. 25 Roger Lee, Economic Development for Central Oregon Letter, June 3, 2011, 26 See note 9 above (Central Oregon Large-Lot Industrial Land Need Analysis), 11-13; 29-34; 40-47. 27 Ibid., 44-45. PAGE 12 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 Finding: Based on the conclusions of fact supplied in the Analysis, which is attached to this exhibit, Deschutes County finds there is a need for nine large lot sites in the Central Oregon region. Only six sites shall be available at any given time, but, once a site is assigned to a city, it may be replenished for a total of nine sites. At least one of the sites must be 200+ acres in size. Two of the sites must be 100-200 acres in size. The remaining sites must be 50-100 acres in size. The sites must be distributed throughout the region in at least three different jurisdictions . At least one site, preferably the largest shall be located in the population and employment center of the region at either the north end of Bend or the southern end of Redmond. No jurisdiction shall be allowed to add a site under these provisions unless it signs the Intergovernmental Agreement (IGA) administered by COIC to fairly distribute these sites throughout the region. If one of the six sites is occupied by a bona fide industrial user it may be replaced by a site of like size pursuant to the criteria in the IGA administered by COIC. The facts available in the Analysis only provide sufficient evidence to replace up to three sites. * OAR 660-024-0045 (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 employment 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. Finding: Deschutes County is now exercising the provisions of 660 -024-045. As noted earlier, the Analysis satisfies OAR 660-0045(2)(a) because it determines the regional short-term large lot employment land need within Crook, Deschutes, and Jefferson counties is unmet and not presently addressed in local governments’ comprehensive plans. The Analysis also identifies necessary site characteristics of needed land.28 (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, or Jefferson County that has adopted the analysis and entered into an intergovernmental agreement to implement the provisions of the analysis. (e) “Participating local government” means Crook, Deschutes, and Jefferson Counties, and participating cities. Finding: OAR 660-024-0045(2)(b-e) define COIC, the IGA, a participating city, and a participating local government. Deschutes County is a participating local government and will be required to enter into the IGA to implement the provisions of the analysis. 28 Ibid., 52-56; 62 PAGE 13 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 (f) “Regional large lot employment 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. Finding: The Analysis documents a need for nine large lot industrial sites. (g) “Site” means land in the region that: (A) Provides the site characteristics necessary for traded sector uses as set forth in the analysis; (B) 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 285B.280. Finding: OAR 660-024-0045(2)(g-i) define site, site characteristics, and traded sector use that participating cities will need to demonstrate that they are meeting when proposing a large-lot industrial site under this program. * OAR 660-024-0045 (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 (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: OAR 660-024-0045(3) defines large lot for the purpose of this program. * OAR 660-024-0045 (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 Analysis documents that there is a demonstrated need for vacant, suitable and available large-lot industrial sites in Central Oregon. The short-term need encompasses six, 50 acre or greater sites, in three different jurisdictions, with two of those sites being between 100 to 200 acres, and one over 200 acres .29 29 Ibid. PAGE 14 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 * OAR 660-024-0045 (5) If a participating city adopts the analysis, it is deemed to provide an adequate factual basis for the determination of regional large lot employment land need for that city provided: (a) The city and other participating local governments have entered into an intergovernmental agreement with the COIC, and (b) The analysis is adopted by Crook, Deschutes and Jefferson counties. Finding: Deschutes County, through Ordinance 2013-002 is adopting the Analysis. * OAR 660-024-0045 (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: OAR 660-024-0045(6) allows participating cities, after they enter into the IGA with their respective counties, to rely on the Analysis without having to amend their local EOAs. * OAR 660-024-0045 (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 (b) The allocation of the qualifying sites among the participating cities in accordance with section (4) of this rule. Finding: COIC is presently coordinating with participating local go vernment to satisfy this rule. * OAR 660-024-0045 (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. (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. Finding: OAR 660-024-0045(8) describes the process participating cities must follow to amend their comprehensive plans and land use regulations, including Urban Growth Boundaries (UGB), in order to designate a site in accordance with this rule. It is not applicable at this time since no site is being officially designated. PAGE 15 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 * OAR 660-024-0045 (9) A participating city that designates a site shall apply a regional large-lot industrial zone or overlay zone to the site in order to protect and maintai n 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: OAR 660-024-0045(9) requires a regional large-lot industrial zone or overlay zone to include certain provisions noted above when a site is designated under this rule. It is not applicable at this time since no site is being officially designated. * OAR 660-024-0045 (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: OAR 660-024-0045(10) allows subordinate and nonindustrial uses subject to this rule. It is not applicable at this time since no site is being officially designated. * OAR 660-024-0045 (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 evalua tion conducted to determine local industrial land needs and the adequacy of land available to meet local industrial land needs. Finding: OAR 660-024-0045(11) requires a participating city to evaluate a regional site under this rule when they reevaluate or amend their local EOAs. It is not applicable at this time since no site is being designated under this rule. * OAR 660-024-0045 (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. PAGE 16 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 Finding: OAR 660-024-0045(12) describes the circumstances for a site to be developed or committed under this rule. It is not applicable at this time since no site has been officially designated. * OAR 660-024-0045 (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: OAR 660-024-0045(13) requires participating local government to review the program after ten years or after the regional supply of six sites has either been replenished by three additional sites or after ten years, whichever comes first. Section (6) - Other Statewide Planning Goals The parameters for evaluating these specific amendments are based on an adequate factual base and supportive evidence demonstrating consistency with Statewide Planning Goals. Finding: The following findings demonstrate that Ordinance 2013-002 complies with applicable statewide planning goals and state law. Goal 1, Citizen Involvement; see Section 2 starting on page 4. Goal 2, Land Use Planning, is met because ORS 197.610 allows local governments to initiate post acknowledgments plan amendments (PAPA). An Oregon Land Conservation and Development Department 35-day notice was initiated on November 29, 2012.30 This FINDINGS document and Analysis provides the adequate factual basis for this plan update. 1000 Friends of Oregon v. City of Dundee, 203 Or App 207 (2005) require Deschutes County to locally adopt the Analysis as part of the comprehensive plan in order for local governments in the county to base land use decisions upon it. OAR 660-024-0045(5b) also requires local adoption. Goal 3, Agricultural Lands and Goal 4, Forest Lands , is not applicable because the County is adopting a technical document and several regional coordination and large-lot industrial land policies into its Comprehensive Plan. No plan designation changes, zoning map changes, development or land use changes are being proposed on agricultural or forest lands. Goal 5, Natural Resources, Scenic and Historic Areas, and Open Spaces , is not applicable because the County is adopting a technical document and several regional coordination and large-lot industrial lands policies. No development or land use changes are being proposed on or near inventoried Goal 5 resource lands. 30 Deschutes County completed period review on January 23, 2003. PAGE 17 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 Goal 6, Air, Water and Land Resources Quality, is not applicable because the County is adopting a technical document and several regional coordination and large-lot industrial land policies into its Comprehensive Plan. No development or land use changes are being proposed that impact air, water and land resource qualities. Goal 7, Natural Hazards, is not applicable because the County is adopting a technical document and several regional coordination and large -lot industrial land policies into its Comprehensive Plan. No development or land use changes are being proposed that impact natural hazards. Goal 8, Recreational Needs, is not applicable because the County is adopting a technical document and several regional coordination and large -lot industrial land policies into its Comprehensive Plan. No development or land use changes are being proposed on recreational resources. Goal 9, Economic Development, is applicable because in coordination with its regional partners, Deschutes County has prepared an Analysis of the economic opportunities and constraints associated with users of large industrial parcels in the Central Oregon. This document concludes that Central Oregon currently serves as an integrated economic unit. 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; Findings: This requirement has already been addressed. See the findings addressing ORS 197.712(1) above on page 5. 2. Contain policies concerning the economic development opportunities in the community; Finding: This requirement has already been addressed. See the findings addressing ORS 197.712(2)(b) above on page 8. 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; Finding: This requirement has already been addressed. See the findings addressing ORS 197.712(2)(c) above on page 9. 4. Limit uses on or near sites zoned for specific industrial and commercial uses to those which are compatible with proposed uses PAGE 18 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 Finding: This requirement has already been addressed. See the findings addressing ORS 197.712(2)(d) above on page 9. Goal 9 Planning Guidelines specify: 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. Finding: The Analysis documents large-lot trends and dynamics, the importance of a large-lot supply and market choice, and target industry opportunities in Central Oregon. EDCO, in participation with local leaders, went through the lengthy process of identifying specific industry sectors for business recruitment, retention, and entrepreneurial support. EDCO recognizes that the recruitment of companies in new and existing industries is an important component of any successful economic development program and diversification strategy. New companies bring a different mix of professional and technical talent to communities that can spawn other businesses and technologies.31 Business Oregon is mandated by ORS 197.717(2) to “provide a local government with state and national trend” information to assist in compliance with ORS 197.712 (2)(a).” The department reviewed the Central Oregon area, and made the following recommendations: “Given its current size and expected growth, it is not unreasonable to assume that the region being exam ined as part of the current Central Oregon Large Lot Economic Opportunity Analysis should have a mix of large-lot sizes for potential employers and site selectors to choose from. Such a mix would have at least multiple ready sites in the 200, 100 and 50-acre plus acreage ranges in order to meet expected 20 year land supply needs.”32 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 economic impacts upon the resident population. Finding: Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook counties by responding to a specific short-term employment land need recognized in new OARs and identified in an Analysis for large-lot 31 Roger Lee, Economic Development for Central Oregon Letter, June 3, 2011. 32 See note 9 above (Central Oregon Large-Lot Industrial Land Need Analysis), 60. PAGE 19 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 industrial sites in Central Oregon. Participating cities will need to address this guideline when they conduct their alternative land and public facilities analyses and inventory of employment lands when examining if the short-term regional need can be met inside their respective UGB. OAR 660-024-0045(8) specifies: A participating city may amend its comprehensive plan and land use regulations, including UGBs, in order to designate a site in accordance with the requirements of this rule, other applicable laws and the intergovernmental agreement. 3. Plans should designate the type and level of public facilities and services appropriate to support the degree of economic development being proposed . Finding: The timing for designating suitable sizes, types and locations of large-lot employment sites, consistent with public facility and trans portation system plans will occur when cities choose to implement this program . As noted in the findings addressing ORS 197.712 (2)(g) on Page 9, OAR 660-025-0045(8) requires a participating city, when amending its UGB, to comply with applicable laws. Those laws include the Transportation Planning Rule (OAR 660 -012-0060) and Boundary Location Alternative Analysis with respect to the provision of public facilities and services (OAR 660-024-0060(8)). 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. Finding: New OARs allow Central Oregon to address industries with a need for large-lot industrial land to support the region’s economic development objectives. The Analysis does not diminish the importance of small existing, start-up firms. What it does do is note that these firms represent only a portion of the spectrum of firms, and a balanced economic development program would provide for these types of firms as well as larger industrial firms. The two categories are comp limentary, not competitive. Efforts to help existing companies (large and small) to grow or sustain their employment have been in place for more than a decade. Efforts to help start - ups and early stage companies are also solidly established. EDCO understands that most jobs come from existing companies, which is why it dedicates more than 50% of its efforts to fostering entrepreneurship and the retention/expansion of existing traded-sector companies. 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. Finding: This is a carrying capacity issue and not a coordination one. The air, land and water resource carrying capacity of the region will be accounted for, managed PAGE 20 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 and maintained during the identification and development of regional large-lot industrial sites. This will be achieved through individual jurisdictions applying their Comprehensive Plan policies and development code regulations/standards to evaluate and regulate large-lot development proposals and through application of development regulations and guidance found in the (required to be adopted) large- lot industrial overlay zone. Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook counties by responding to a specific employment land need identified in the Analysis for large-lot industrial sites in Central Oregon. Participating cities will need to address this guideline, which is also cited in Statewide Planning Goal 6, when they conduct their alternative land and public facilities analyses and inventory of employment lands when examining if the short-term regional need can be met inside their respective UGB. Goal 10, Housing is not applicable because, unlike municipalities, unincorporated areas are not obligated to fulfill certain housing requirements. Goal 11, Public Facilities is not applicable because the County is adopting a technical document and several regional coordination and large -lot industrial land policies into its Comprehensive Plan. No development or land use changes are being proposed that impact public facilities. Goal 12, Transportation, is not applicable because the County is adopting a technical document and several regional coordination and large -lot industrial land policies into its Comprehensive Plan. No development or land use changes are being proposed that impact local or state transportation facilities. Goal 13, Energy Conservation, is not applicable because the County is adopting a technical document and several regional coordination and large -lot industrial land policies into its Comprehensive Plan. No development or land use changes are being proposed that warrant energy conservation. Goal 14, Urbanization, is met because developing a short-term supply of large readily available industrial sites is not currently part of region al economic development efforts. New OARs specifically grant local governments in Central Oregon that ability to determine the need for regional large -lot industrial land by following the provisions of OAR 660-024-0045. By adopting the Analysis as allowed under OAR 660-024-0045(2)(a), Deschutes County has demonstrated that there is a regional large lot employment land need that is not presently being met by local governments in Central Oregon. Regional large-lot employment need is defined in OAR 660-024-0045(2)(e) as a need for a specific type of 20 -year employment land need. Participating cities as noted under OAR 660-024-0045(5a) and (5b), can adopt the Analysis to provide the factual basis for the determination of regional large lot employment land need. Lastly, as specified in OAR 660-024-0045(6), participating PAGE 21 OF 21 – EXHIBIT “D” TO ORDINANCE 2013-002 cities may adopt the Analysis and enter into an intergovernmental agreement without amending their existing EOA. Goals 15 through 19 are not applicable to any amendments to the County’s comprehensive plan because the county has none of those types of lands. Section (7) - Deschutes County Comprehensive Plan * Urbanization Chapter Finding: This plan amendment is consistent with the Comprehensive Plan, Section 4.2, Urbanization, Urbanization Goals and Policies as shown in Ordinance 2013-002, Exhibit B. This amendment specifically fulfills the County’s first and second urbanization goals, by providing a factual basis for urbanizing large -lot industrial sites in Central Oregon and fostering intergovernmental cooperation. Attachment: Central Oregon Large Lot Industrial Land Need Analysis 1 660-024-0040 Land Need (1) The UGB must be based on the adopted 20-year population forecast for the urban area described in OAR 660-024-0030, 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. … (5) Except for a metropolitan service district described in ORS 197.015(13), the determination of 20-year employment land need for an urban area must comply with applicable requirements of Goal 9 and OAR chapter 660, division 9, and must include a determination of the need for a short-term supply of land for employment uses consistent with OAR 660-009-0025. Employment land need may be based on an estimate of job growth over the planning period; local government must provide a reasonable justification for the job growth estimate but Goal 14 does not require that job growth estimates necessarily be proportional to population growth. 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. OAR 660-024-0045 Regional Large Lot Industrial Land (1) Local governments in Crook, Deschutes or Jefferson 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. (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. 2 (d) “Participating city” means a city within Crook, Deschutes, or Jefferson 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 ; (B) 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 285B.280. (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 (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. (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. (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: 3 (a) The city and other participating local governments have entered into an intergovernmental agreement with the COIC, and (b) The analysis is adopted by Crook, Deschutes and Jefferson Counties. (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. (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 (b) The allocation of the qualifying sites among the participating cities in accordance with section (4) of this rule. (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. (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. (9) A participating city that designates a site shall apply a regional large-lot industrial zone 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. 4 (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; (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. (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. (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.