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HomeMy WebLinkAbout7-7-10 Testimony re Dest Resort RemapPeter Gutowsky From: Tammy Baney Sent: Tuesday, July 06, 2010 3:28 PM To: 'DAVID INGRAHAM' Cc: Peter Gutowsky Subject: RE: Aspen Lakes Resort Pal`e1ot1 Thank you Dave and Mary! Please know that I have read your comments and your email has been forwarded for inclusion in the public record. In service to our community- %mmJ1 Tammy Baney Deschutes County Board of Commissioners 0 541 388-6567 1 F 541 385-3202 1 1300 NW Wall Street, Suite 200 Bend, OR 97701 From: DAVID INGRAHAM [mailto:ding@gci.net] Sent: Tuesday, July 06, 2010 2:49 PM To: Board Cc: matt@aspenlakes.com Subject: Aspen Lakes Resort Dear Board Members, My wife Mary and I are residents at Aspen Lakes. We have had a home at the golf course for over 6 years We are writing in support of the Cyrus family's request for Resort status. We do not see this resort as a threat to our lifestyle as some have suggested. Far from it, we believe it will enhance our property value and add to the wonderful amenities that already exist at Apsen Lakes. It would also provide a much needed boost to our local economy. The added jobs from construction and maintenence of a destination resort is the exact kind of elixir our current economy 1 eeds. Sisters has not been immune to the economic downturn and it is frustrating to watch business after business close their doors. If there is a business that has the potential to expand the economic base in the Sisters area we should be do ,ing everything we can to support such an endeavor. The Cyrus family has already demonstrated that they are sensitiv e to the enviornment by building an Audibon designated golf course and the grounds and facilities at Aspen Lakes are beautiful. Mary and I have no doubt that a destination resort would be built with the same thoughtful care Dave and Mary Ingraham '7 /L OREGONIA1•6 N ACTION July 6, 2010 Deschutes County Commission 1300 NW Wall St. Bend, OR 97701 Re: Ordinances 2010-24 and 2010-25 Dear Commissioners: I have been informed that the Board is considering the adoption of ordinances which may remove destination resort overlay zoning from a number of properties in Deschutes County. I write to urge the Board to not alter its destination resort maps at this time, and ask the Board to consider the applicability of Measure 49 when rendering its decision. As the Board knows, Measure 49 provides property owners with a cause of action against a county government if the county adopts a new land use regulation which limits or prohibits a currently authorized residential use of private real property. I believe that Measure 49 applies to the ordinances currently before the Board. In other words, I believe that a court interpreting Measure 49 would hold that the County is obligated to either 1) compensate a property owner for a reduction in the fair market value of their property attributed to the removal of the destination resort overlay, or 2) waive enforcement of that regulation to allow the property owner to site the resort. The State's Legislative Counsel's Office concurs with this interpretation of Measure 49. I realize that Deschutes County Counsel does not believe that the adoption of the aforementioned ordinances is subject to Measure 49. This appears to be a minority view, although it is certainly plausible. At this point, I do not believe that any Oregon court has resolved this issue. I fail to understand why Deschutes County would choose to be the "guinea pig" for such a test case. Given the lack of current demand for new destination resorts, coupled with the Oregon legislature's persistent meddling in the issue, there seems to be no immediate need to impose further limitations on Deschutes County property owners at this time. I hope that the Board will reject the two proposed ordinances at this time. Ver Tfuly ,.urs, David J. unnicutt President Mailing Address: P.O. Box 230637 • Tigard, OR 97281-0637 Street Address: 11735 S.W. Queen Elizabeth Street, Suite 101 • King City, OR 97224 (503) 620-0258 • FAX (503) 639-6891 • website: www.oia.org Page 1 of 2 Peter Gutowsky From: Nunzie [nunzie@pacifier corn] Sent: Tuesday, July 06, 2010 3:43 PM To: Tammy Baney; Alan Unger; Dennis Luke Cc: Nick Lelack; Senator Dingfelder; Peter Gutowsky Subject: Ord 2010-0024 DR Remapping Attachments: Exhibit_C.pdf; lease_001.pdf; lease_002.pdf; Exhibit _A.pdf; Exhibit B.pdf; ATT312060.htm Dear fV:;cIiutcs County Commissioners: Please enter the following into the public record on DR remapping ordinance 2010-0024, 2010-023, 2010-001. 2010- 002. http://www.deschutes.org/boardCalendar/docs/3159/Hearing_ Ordinance 025_ -Resort Mapping.pdf The ordinance language is in pages 4-8 of the link above. Attached is State of Oregon Department of State Lands lease 433991 also known as Thornburgh Lease. It is emailed here in 5 parts. Lease 001 is part of the Amendment to Special Use Lease -33991 (30pgs) , Lease_002 (10pgs) , Exhibit "C" (2 cgs), Exhibit "A" (1 page), Exhibit "B" (lpg map). Note the 240 acres of inlieu parcels are now part of the state's lease for a total of 400 acres which has been assigned to Agnes Delashmutt, owner of 1 of the parcels that is part of the proposed Thornburgh Destination Resort. The State of Oregon lands currently are exempt from paying Deschtues County property taxes because they are public lands and public lands are non assessed for property taxes. This can be verified by searching the assessment records on Deschutes County's Dial web search: http://www. co.deschutes.or.us/index.cfin?ohjectIcl=836F545E-BDBD-57C 1-91 EC7EC87DBBD7EA select Assessment Information select Map and Taxlot Number enter each of the following individually for each parcel's information which will show that each of these 400 acres under state ownership does not contribute Deschutes County property taxes: Map and l axlot Numbers: 1512000005300 (160 acres) , 1512000005200 (40 acres) , 1512000005101 (40 acre...), 1512000005 1 02 (40 acres), 1 51 20000051 03 (80 :.cres), 1 512000005104 (40 acres) Your ordinance 2010-0024 would allow public lands to he eligihlc to hc napped for resort development. The six parcel abovetogetherO 1 1 h . Deschutes h_ut a r,...,.,..s with the 8� acre puree owned �y r��sc:u�,iea County (Map and Taxlot Number 1 5 1 2000008200) would all be eligible under your proposed ordinance. ('urrcntly Deschutes County does not collect property taxes on public land. So what economic benefit is there o Deschutes County to allow these lands to be maPped for a resort without transfer to private ownership? 1 would argue there is none! The very language that you are striking from your ordinance is what would generate economic dollars into Desci Utes County coffers: namely: property taxes owed Deschutes County when a parcel moves from the public into priv,. to hands, and an application fee process to transfer these lands which would benefit your Community Development Department with greatly needed monies. Why in these challenging times are you taking this approach? [sift the point of Goal 8 resorts to be economic generators for the community?'? So why are you axing a process that would generate tax dollars and fees for our community'? If the state land is leased and not transferred to private ownership, there would be no economic ben °fit of taxable revenue to Deschutes County. Your ordinance would allow for no transfer of ownership in that the state ands could be eligible to be mapped but your ordinance as written docs not require the lands to be transferred into prix ite ownership. This could require additional tracking ,of a destination resort by your CDD staff at taxpayer expense, for instance: what is developed where and on whose land?; what is mitigated for where and on whose land?; and in ',/hose name is a lease held? 7/62010 Page 2 of 2 hn the existing ease of the Thornburgh lease, DSL has identified a lease value for it's ]ands, and incidentally it has already found a resort to these these lands to... all to the exclusion of Deschutes County - so how does our rural Deschutes County benefit`? I would argue that the lease monies are being collected by the State of Oregon, not by Deschutes County! I highly encourage Deschutes County to keep the stricken-tltru language 23.84.030 Policies 3. c and relabel this language as 23.84.030 3. c. 10 "Federal lands not otherwise excluded under these policies shall not be mapped with the DR overlay zone. Federal land not otherwise excluded that becomes privately owned through land exchanges or other federal disposition can be considered for destination resort siting consistent with these policies and mapped as available for destination resort development." Maintaining this language in your ordinance will encourage resorts to he sited on primate !AM" whore property t:nes can benefit the local ('ni;ritti 1 would like to reiterate my testimony of 6/30/10 and to encourage Deschutes County to slow down and not to rush to create remapping criteria. Wait until the State DR workgroup has finished it's review of Destination Resorts. You are sending your staff to Salem for meetings on the very topic you are trying to pass local legislation. I think this is a huge waste of taxpayer money. Just as you delayed remapping for Measure 49, I encourage you to delay establishing remapping processes and criteria until the State has a clear direction for the future of Goal 8 resorts. Sincerely, Nunzie Gould 19845 JW Brown Rd Bend, OR 97701 541-420-3325 This is 7/6/2010 a „E c° 020„ Deschutes County Board of Commissioner, 1300 NW Wall St., Suite 200, Bend, OR 97701-1961. (541) 388-6570 - Fax (541) 385-3202 - www.dcschutes.ort AGENDA REQUEST & STAFF REPORT For Board Business Meeting of June 30, 2010 Please see directions for completing this document on the next page. DATE: June 11, 2010. FROM: Peter Gutowsky Community Development Department 385-1709 TITLE OF AGENDA ITEM: A public hearing on Ordinance Nos. 2010-024, amending Title 23, the Deschutes County Comprehensive Plan to adopt remapping goals and policies, and 2010-025, adding a chapter to the Deschutes County Code Title 22, Deschutes County Development Procedures which will adopt Destination Resort Map Amendment Procedures. PUBLIC HEARING ON THIS DATE? Yes. BACKGROUND AND POLICY IMPLICATIONS: Initiated by staff and further modified by the Deschutes County Planning Commission, Ordinances 1' os. 2010-024 and 2010-025 create a process and criteria the County will follow to change its destination resort map. The two ordinances: • List clear and objective mapping criteria for areas that arc ineligible for siting destination resorts; • List clear and objective mapping criteria for areas that arc eligible for siting destination resorts; & • Describe the process for amending Deschutes County's Destination Resort Map. FISCAL IMPLICATIONS: None RECOMMENDATION & ACTION REQUESTED: First reading by Title only, Ordinance Nos. 2010-024 and 2010-025, Exhibits A and B. ATTENDANCE: Peter Gutowsky and Legal Counsel DISTRIBUTION OF DOCUMENTS: Peter Gutowsky, CDD. REVIEWED LEGAL COUNSEL For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COITNTY. OREGON An Ordinance Amending Deschutes County Code Chapter 23.84, Adopting Destination Resort Remapping Comprehensive Plan Goals and Policies, and Declaring an Emergency. * * ORDINANCE NO. 2010-024 WHEREAS, the Board of County Commissioners ("Board") directed County staff to initiate amendments to Deschutes County Code ("DCC") DCC Chapter 23.84, Destination Resorts, in order to allow for amending the County Comprehensive Plan Map regarding properties eligible for the destination resort designation; and WHEREAS, after notice was given in accordance with applicable law, public hearings were held cn November 19, 2009, and on December 2, 2009 before the Deschutes County Planning Commission and, on December 2, 2009, the Planning Commission recommended approval of the Comprehensive Plan amendments; and WHEREAS, on February 25, 2010 the Planning Commission forwarded to the Board additional recommendations for amendments to DCC Chapter 23.84; and WHEREAS, the Board held duly noticed public hearings on January 20, March 1, April 5, and April 19, 2010 on Ordinance 2010-001, the ordinance that included the amendments to DCC Chapter 23.84, and Ordinance 2010-002, the ordinance that added DCC Chapter 22.23, the procedures for amending the County Comprehensive Plan map; WHEREAS, on June 7, 2010, the Board amended Ordinance 2010-002, conducted the first and secor.J reading by title only of Ordinances 2010-001 and 2010-002, and adopted both ordinances declaring as emergency; and WHEREAS, on June 9, the Board determined that the adoption of Ordinance 2010-002 was not done i -i accordance with ORS 203.045(6) because the amendment to Ordinance 2010-002 adopted on June 7, 2010 was not included in the ordinance filed with the Board Clerk on June 1, 2010 or read in full by the Board, thereby rendering the ordinance ineffective; and WHEREAS, on June 9, 2010, the Board repealed Ordinances 2010-001 and 2010-002 and scheduled public hearing on new versions of both ordinances for June 30, 2010 at 10:00 am; and WHEREAS, this ordinance replaces Ordinance 2010-001 with additional amendments to DCC 23.84; and WHEREAS, the Board of County Commissioners considered this matter after a duly noticed publi.; hearing on June 30, 2010 and concluded that the public will benefit from changes to the land use regulations, ; and WHEREAS, in order to be able to provide direct public notice utilizing the county tax statement mailin;.; in October, 2010 the Board finds it in the public interest to adopt this ordinance by emergency; now, therefore, PAGE 1 OF 2 - ORDINANCE NO. 2010-024 THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ORDAINS as follows: Section 1. AMENDMENT. DCC Chapter 23.84, Destination Resorts, is amended to read as described in Exhibit "A," attached hereto and by this reference incorporated herein, with new language underlined and language to be deleted in strikethrough. Lection 2_ I !'J )!N(;ti_ The Hoard adopts as il_c "R," attached anti incnrnoraled t o reference herein. Section 3. EMERGENCY. This Ordinance being necessary for the immediate preservation of tI e public peace, health and safety, an emergency is declared to exist, and this Ordinance takes effect on its passage. Dated this of , 2010 BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON DENNIS R. LUKE, Chair ALAN UNGER, Vice Chair ATTEST: Recording Secretary TAMMY BANEY, Commissioner Date of lst Reading: day of , 2010. Date of 2"d Reading: day of , 2010, Record of Adoption Vote: Commissioner Yes No Abstained Excused Dennis R. Luke Alan Unger Tammy Baney Effective date: day of , 2010. PAGE 2 OF 2 - ORDINANCE NO. 2010-024 Chapter 23.84. DESTINATION RESORTS 23.84.010. Destination Resorts. 23.84.020. Goals. 23.84.030. Policies. 23.84.010. Destination Resorts. The-nl erens-b cficial impacts of destination reso14s are recognized-by-Sta - _ . The past experiences with destin. • - beery dery nosit+ve OS&C, MUA 10 ander 71 rvionies: Since 1979 destination resorts have increased in importance to the economy of Deschutes County—A c that time. Existing resorts, such as Sunriver and the ne into decline. In 1989 Rrecognizing the importance of tourism to the economy of the State of Oregon, the state legislature and the Land Conservation and Development Commission ("LCDCD have-takentook steps to make it easier to establish destination resorts on rural lands in the state. Statewide Planning Goal 8, the recreation goal, was amended to specify a process for locating destination resorts on rural land without taking an exception to Goals 3, 4, 11 and 14, which goveni development in rural resource lands. This was followed by legislation incorporating Goal 8 into Oregon's land use statutes. By these actions, the State of Oregon recognized destination resorts as a legitimate rural land use. Under these changes, destination resorts may he sited in EFU zones where they weren't allowed before. a - - -a the state level affecting the suing -of destination- resorts in the forest -rule adopted -by- LCDC-in-Mareh-1990This rule allow dent ination--resorts-to be sited en -forest lands -pursuant to Goal -8, g —ef -de . a.. - , - ould be severely limited if such developments -were-not afieweel-inangrand-forest Les-. - implementation -of -destination resorb -sting under Goal is optional-. Deschutes County was The -Goal -8-legislative-proeess itl ve changes in t-he-Ceunt- s-cornprehensive-plan-and-implementing land use ordinances. Following the changes to the state regulations because implementation of destination resort siting under Goal 8 was optional and the county had not undertaken that implementation, the developers of Eagle Crest applied for legislative changes in the County's comprehensive plan and in lementing land use ordinances. The Eagle Crest owners -developers wished to expand their current destination resort onto adjacent lands and wished to do so without going through the exceptions process. They were able to do so when the County adopted a destination resort overlay map. In order, Pronghorn Caldera Springs, and Tetherow resorts have been sited since that time. Resorts existing prior to the legislative change, such as Black Butte, Sunriver and the Inn of the Seventh Mountain have also expanded and been rezoned to Urban Unincorporated Community and Resort Community, respectively In March 1990 LCDC adopted the "forest rule." This rile allows destination resorts to be sited on forest lands pursuant to Goal 8. The county adopted this_nile for land zoned Forest Usc-2. Additionally, the legislature in 2003, amended the state statutes adding new Ian_ ale allowin counties to remap eligible lands for destination resorts not more frequently than once every thirta(30) months. Remapping is now dependent on creating a process for collecting -and processing alLproposed map amendments submitted to the county within that thirty 301 month planningperiod. PAGE 1 OF 5 EXHIBIT "A" TO ORDINANCE 2010-024 In order to allow destination resorts within the county, Goal 8 requires that Deschutes County adopt a map showing which lands are available for destination resort development. .The purpose of the map is to provide greater certainty concerning destination resort siting than is available under the exceptions process. Toprotect forest and far=m resources Goal 8 prescribes that certain classes of lands are off limits to destination resort development. The final map must reflect exclusion of such areas. Ilowever although a property is mapped as eligible for a destination resort, a destination resort may not be permitted outright in that location. In order to be approved, a proposal for a resort must be processed as a conditional use and mush comply with the specific: standards and criteria estahli.ehed by the rnuniv fi,r destination resorts. Goal 8 requires that the County -adopt a -.. . c available for destination resort development. The purpose of -4h .. - ening desti .. . - : : rm resources; Goal 8 prescribes that co . ' - . . s are off limits to destination resort development. The final County is found in the Resource Element of the comprehensive plan. Goal 8 and the state statute also recognize that destination resorts can have negative impacts on neighborhoods, transportation facilities and the rural quality of life. These impacts can, however, be substantially mitigated, however. The County recognizes the importance of balancing protection mechanisms for resource lands and rural land uses with the economic benefits destination resorts provide. The County further recognizes that this balance can be struck by the manner in which areas are designated as being available for destination resort development and by developing bnlancedestablishing thorough siting criteria. In establishing these thorough siting criteria, Tthe County recognizes that it has the option to be more restrictive than state law in the areas it chooses to exclude from destination resort siting through the mapping process. T :... . iss' to i mplemenl Gerd in -e manner consistent with --Goal 8 and state law that will -allow proposed destination- re.Arils-to- apply -Tet approval. Because of -the County's need as periodic -review to--trillate-i-is comprehensive plarrarir ordinances to implement -the -forest -rule-and-io-study- current faun uses in the County-, -it is appropriate -1c implement -Goal --8- in a phased fashion. Aecordingl-y, the -County -has -first nonsidered-siting- destinatior resorts Off the -following EF -U -lands not exclude -Goal -•8: (1) unirrigated E1�[�l rd, (-2)-irr tted-034 lands in -Contiguous -ownership -having -fewer- that- 10 acres of contiguous-ii±igatiett ant1- 0j -irrigated -ER hands having-(mor--mete--aeres of nen coati -goons -land in the same ownership. Second, li lfl��in the County's implement atiotrof-Eke-#crest rule, -the County -will consider-developmentof-destinaliort-r-eseris-or forest -lams. Th following a review -oltheComity's - •. .. . he -periodic -review -process; tht fur: rt-'tt,rrdrttt-Y{-Currstuerhok: rie-c-ctn�tnar�r. hiotwit • - -based a eh-tt-destination resort zoning, it is-appropr+-ate to develop sitif• standards -for destination resorts geneml1-y1-€-further refinements are needed -when forest lands and tarn -lands-tiot-eonsidered in the first mapping -phase -arc considered, uch refinements can-beeaale at e -tire: (Ord. 2010-024 §1, 2010; Ord. 2002-005 §1, 2002; Ord. 2000-017 §1, 2000; Ord. 93-029, 19913: Ord. 92 029, 1992; Ord. 92-001, 1992) 23.84.020. Goals. 1. To provide for development of destination resorts in the County consistent with Statewide Planuint Goal 8 in a manner that will be compatible with farm and forest uses, existing rural development and in a manner that will maintain important natural features, such as habitat of threatened o endangered species, streams, rivers and significant wetlands. 2. To provide a process for the sitillg of destination resorts on rural lands that have been snapped b, Deschutes County as eligible for this w ose. 3. To provide for the siting of destination resort facilities that enhance and diversify the recreations opportunities and economy of Deschutes County. PAGE 2 OF 5 - EXHIBIT "A" TO ORDINANCE 2010-024 4. To provide for develpment of destination resoils consistent with Statewide Planning Goal 12 in a manner that will ensure the resorts are supported by adequate transportation facilities._ (Ord. 2010-024 §1, 2010; Ord. 2002-005 §l, 2002; Ord. 2000-017 §1, 2000; Ord. 93-029, 1993; Ord. 92- 029, 1992; Ord. 92-001, 1992) 23.84.030. Policies. 1. Destination resorts shall only be allowed within areas shown on the "Deschutes County Destination Resort Man" and when the resort complies with the requirements of Cioal 8. ORS 197.435 to 197.467, and Deschutes County Code 18.1 13. 2. Applications to amend the map will be collected and will be processed concurrently no sooner than 30 months from the date the map was previously adopted or amended. 3. Mapping for destination resort siting. a. To assure that resort development does not conflict with the objectives of other Statewide Planning Goals, destination resorts shall pursuant to Goal 8 not be sited in Deschutes County in the following areas: 1. Within 24 air miles of an urban growth boundary with an existing population of 100,000 or more unless residential uses are limited to those necessfor the staff and mana• ement of the resort; 2. On a site with 50 or more contiguous acres of unique or prime farm land identified and mapped by the Soil Conservation Service or within three miles of farm land within a High - Value Crop Area; 3. On predominantly Cubic Foot Site Class 1 or 2 forest lands which are not subject to an approved Goal exception; 4. On areas protected as Goal 5 resources in an acknowledged comprehensive plan where all conflicting uses have been prohibited to protect the Goal 5 resourcepfoteetea i- .pie et :dent ed -eon -f - eti-ng arses -(-"3A" sit - 5. Especially sensitive hig game habitat, and as listed below, as generally mapped by tilt Oregon Department of Fish and Wildlife in July 1984 and as further refined through development of comprehensive plan provisions implementing this requirement. i. Tumalo deer winter range; ii. Portion of the Metolius deer winter range: iii. Antelope winter range east of Bend near 1-lorse Ridge and Millican; 6. Sites less than 160 acres. b. In as Destination resei4s-shall not -be located in areas zoned EFU 320, EFU---807-08-&C t jti-F-4-4es-c gnti ej pu..,uutri ctiluntatiun of tltc forest rule by Ordinance 92 026, of-on-feseurce lands within -c Mile -outside .. .. e:-eder-a}-lands-ftet-other-wise-excleded under- these policies shall not be mapped with the DP overlay zone.-1Fedeia4-Jane-not otherwise.trd exchanges -of -other-- federal disposition can he -considered for destination resort siting concis ens with -these } hetes-rid-mapped-ar itvai4eble-fvr- destination--resert development -1'o assure tha'. resort development does not conflict with Oregon Revised Statute, destination resorts shall not be sited in Deschutes County in Areas of Critical State Concern. c. To assure that resort development does not conflict with the objectives of Deschutes Count destination resorts shall also not be located in the following areas: 1. Sites listed helow that are inventoried Goal 5 resources, shown on the Wildlife Combini4 Zone that the County has chosen to protect: i. Antelope Range near Horse Ridge and Millican; ii. Elk Ilabitat Area; and iii• Deer Winter Range; 2. Wildlife Priority Area identified on the 1999 ODEW map submitted to the South Count, Regional Problem Solving Grog PAGE 3 OF 5 — EXHIBIT "A" TO ORDINANCE 2010-024 3. Lands zoned Open Space and Conservation (OS&C), 4. Lands zoned Forest Use 1 (F-1); 5_ Irrigated lands zoned Exclusive Farm Use_(EI71.1) having 40 or greater contiguous acres in irrigation; 6. Non-contiguous EFU acrcs in the same ownership having 60 or greater irrigated acres- 7. Farm or forest land within one mile outside of urban g wthboundari�s• 8. Lands designated Urban Reserve Area under ORS 195.145. 9. Platted subdivisions; d. For those lands not located in any_of Ole areas designated in (3)(a) though (c), destination resorts may, pursuant to Goal 8, Oregon Revised Statute and Deschutes County zoning code Lbe sited in the following areas: 1. Forest Use 2 (F-2), Multiple Use Agriculture (MUA-10), and Rural Residential (RR-l) zones; 2. Unirrigated Exclusive Farm Use (EFU) land; 3. Irrigated lands zoned EFU having _less than 40 contiguous acres in irrigation, 4. Non-contiguous irrigated EFU acres in the same ownership having less than 60 irrigated acres; 5. Minimum site of 160 contiguous acres or greater under one or multiple ownerships; e. The County shall adopt a map showing where destination resorts can be located in the County. Such map shall become part of the Comprehensive Plan and Zoning Ordinance and shall be an overlay zone designated Destination Resort (DR). 24. Ordinance provisions. a. The County shall ensure that destination resorts are compatible with the site and adjacent land uses through enactment of land use regulations that, at a minimum, provide for the following: 1. Maintenance of important natural features, including habitat of threatened or endangered species, streams, rivers, and significant wetlands; maintenance of riparian vegetation within 100 feet of streams, rivers and significant wetlands; and 2. Location and design of improvements and activities in a manner that will avoid or minimize adverse effects of the resort on uses on surrounding lands, particularly effects on intensive fanning operations in the area and on the rural transportation system. In order to adequately assess the effect on the transportation system, notice and the opportunity for comment shall be provided to the relevant road authority. Such regulations may allow for alterations to important natural features, including placement of structures, provided that the overall values of the feature are maintained. h MiniInurn measures to assure that d,'sign and 1 cement n( nnprm' variants :ind activities will avoid or minimize the adverse effects noted in Policy 41a J6-09 shall include_ 1. The establishment and maintenance of buffers between the resort and adjacent land uses, including natural vegetation and where appropriate; fenced, germs, landscaped areas, and other similar types of buffers. 2. Setbacks of structures and other improvements From adja2eat land uses c. The County may adopt additional land use restrictions to ensure that proposed destination resorts are compatible with the environmental capabilities of the site and surrounding land uses. d. Uses in destination resorts shall be limited to visitor- oriented accommodations, overnight lodgings, developed recreational facilities, commercial uses limited to types and levels necessary to meet the needs of visitors to the resort, and uses consistent with preservation and maintenance of open space. e. The zoning ordinance shall include measure that assure that developed recreational facilities, visitor-oriented accommodations and key facilities intended to serve the entire development are physically provided or are guaranteed through surety bonding or substantially equivalent financial assurances prior to closure of sale of individual lots or units. In phased developments, PAGE 4 OF 5 - EXHIBIT "A" TO ORDINANCE 2010-024 developed recreational facilities and other key facilitated intended to serve a particular phase shall he constructed prior to sales in that phase or guaranteed through surety bonding. 3. Phased implementation. The County shall implement -Deal 8 in a phased sequence as -follows: a: The County shall a b: The County shall identify countywide T 1�c A-4 70 ttnatl-en res< Y;--23--OF border shall .� �.... �, ai o �. ,:..,. Th ,.. i n wd-i ,_ _ , w ex iiriiFc�-vcn�rv--cvtiiii�%v�iuc�-iri int;rrnriZ:--i-u�-2ii6iv�rotr-n%din-vcrctc�u7ificTcd 'i�iic3l land located -in- adjoining counties and within three mi - ! my -has been inventoried to -deter n -a-manner miles of a high eqienee- zhe and --Goa I- $. osc policies e as part of —As -te -h the Cam destination resort siting. 'es 2 and 3 herein, nothing in these policies shall affect ble-for of forest lands and remaining PF1J-4ands for destination resort siting-rn th-periedie review: As successive phases of the des . • - ess-are-taken-up by the County, the-eou ty g-maps--te-add- additional areas le may -in - - the destinat-ien-resort-rn p: d. Unt tle-Foa1 8- ma - - s is eornplete--no-applie�3tion-foF--quasi judicial -plan -mall changes and zone changes to apply -to -DR zone to -areas -not -designated -under -the -Goal -g - process shall-be-aceeptedunless such applications are - - -- .. .lens-preees& (Ord. 2010-024 § ], 2010; ()rd. 2002-005 §1, 2002; ()rd. 2000-017 §1, 2000; Ord_ 93-029. 1993; Ord, 02- 029, 1992; Ord. 92-001, 1992) PAGE 5 OF 5 — EXHIBIT "A" TO ORDINANCE 2010-024 FINDINGS The Deschutes County Board of Commissioners (Board) held public hearings on January 20, March 1, April 5, and April 19, 2010 on Ordinance Nos. 2010-001 and 2010-002 to consider legislative plan amendments to Deschutes County Code (DCC) Chapters 22.23 and 23.84.1 The Board closed the hearing to oral testimony, but left the written record open until Monday, May 24 `fly /1 t 1 0:00 The Q. -..,..J h.,.,-,., .-I ; ...... ,...,. ., May ')A n.. June 7 the V I Val 1l/.VV 0.111. )IIG UVOI0 began UC.II1J IGIIIVII ) on iVIcy t . On duIlo �, ,ILG Board conducted the first and second reading by title only and adopted both ordinances, declaring it an emergency. However, the adoption of the two ordinances on June 7 was not done properly.2 Because the amendment was not read out loud in full by the Board, the ordinance is not legally adopted. It was placed on the June 9 business meeting agenda as an addition in order to rectify this procedural issue. On June 9, the Board repealed Ordinances Nos. 2010-001 and 2010-002 and scheduled a public hearing for June 30 to take testimony on the County's proposed destination resort remapping criteria and procedures. BACKGROUND Initiated by staff at the request of the Board and further modified by the Deschutes County Planning Commission, Plan Amendment 2009-3 and Text Amendment 2009-9 encompassed in Ordinances Nos. 2010-001 and 2010-002 create a process and criteria the County will follow to change its destination resort map. The two ordinances modify DCC Chapter 23.84, Destination Resort Goals and Policies, and DCC Chapter 22.23, Destination Resort Map Amendment Procedures by: • Listing clear and objective mapping criteria for areas that are ineligible for siting destination resorts; • Listing clear and objective mapping criteria for areas that are eligible for siting destination resorts; and, • Describing the process for amending Deschutes County's Destination Resort Map. PROPOSED TEXT AMENDMENT Staff proposed text amendments that create a process and criteria the County will follow to change its destination resort map. The proposed text amendments are outlined in the attached exhibits and underlined for new language and shown as s-trikethrough for deleted language. PLANNING COMMISSION RECOMMENDATION The Deschutes County Planning Commission on December 2 closed the public hearing, deliberated and recommended that the Board adopt the above referenced ordinances, with the following refinements included in the recommendations: A tax bill insert, complying with Ballot Measure 56 announced the first evidentiary hearing with the planning commission on November 19, 2009. It was distributed in mid-October to all property owners in Deschutes County. The Board hearing was noticed as required in DCC 22.12.020. 2 ORS 203.045 states: "(6) An ordinance adopted after being read by title only may have no legal effect if it differs substantially from its terms as it is thus filed prior to the reading, unless each section incorporating such a difference, as finally amended prior to being adopted by the governing body, is read fully and distinctly in open meeting of that body." Page 1 of 10 - Exhibit B to Ordinance 2010-024 A. A deadline, to be determined by the Board for submitting map amendment applications. B. A grandfather clause allowing existing mapped properties to remain on the map regardless if they do not qualify under the new, 2010 eligibility criteria. The clause, which has the same deadline as map amendment applications (see A above) requires property owners to submit a written request specifying that they want the existing resort designation to remain. The grandfathered designation will expire however, tor those that fail to submit a request by the established deadline. C. Applicants adding properties to the map must demonstrate consistency with the Transportation Planning Rule, Oregon Administrative Rule 660-012-0060.3 D. Text further clarifying Deschutes County's acknowledged Goal 5, Natural Resources, Scenic and Historic Areas, and Open Spaces program in relationship to the siting of destination resorts. E. Multiple property owners that are contiguous and total 160 acres or greater become eligible for adding lands to the destination resort map. REVIEW CRITERIA Two ordinances, Ordinance No. 2010-001 and 2010-002 are adopted. Both create a process and criteria Deschutes County will follow to change its destination resort map. The plan amendment embodied in Ordinance No. 2010-001 relates to eligibility criteria, and 2010-002 to map amendment procedures. Deschutes County lacks specific criteria in DCC Titles 18, 22, or 23 for reviewing a legislative plan amendment. Nonetheless, because this is a Deschutes County initiated plan amendment, the County bears the responsibility for justifying that the amendments are consistent with the statewide planning goals and Deschutes County's Comprehensive Plan. FINDINGS 1. Statewide Planning Goals. The parameters for evaluating these specific amendments are based on an adequate factual base and supportive evidence demonstrating consistency with Statewide Goal 1, Citizen Involvement, Goal 2, Land Use Planning, Goal 8, Recreation, Goal 12, Transportation, Oregon Revised Statute (ORS), case law, and Deschutes County Comprehensive Plan. The following findings demonstrate that the two ordinances comply with applicable statewide planning goals and state law. Statewide Goal 1 was met through this adoption process because these amendments had two public hearings, one before the County Planning Commission, the County's citizen review board for land use matters, and one before the Board. Goal 2 was met because ORS 197.455(2) allows for such an amendment process and these new code provisions will be the framework for all future decisions on where to allow destination resorts in this county. Additionally, the amendments mirror the statutory requirements that destination resorts not be sited on specific types of farm and forest land, Open Space and Conservation s http://www.publications.oid.state.or.us/A142351.htm. This change complies with new case law, Willamette Oaks LLC v. Ci of Eu•ene and Good•asture Partners LLC, issued by the Oregon Court of Appeals on November 18, 2009. Page 2 of 10 - Exhibit B to Ordinance 2010-024 zoned land, and in areas where wildlife is protected. Thus, the provisions will not conflict with Goals 3 through 5. As for the County's Goal 5 historic resources, the County's regulations already require preservation of those sites regardless of the use proposed for any given property. As for Goals 6 and 7, the County has other code provisions in the destination resort zoning code, DCC Chapter 18.113 that are designed to protect the air, water and land resources quality and to assure that they are not approved in arpas siihject to natural resources and natural hazards. Goal 8 specifies the rural areas consisting of agricultural, forest, rural development, and natural resources that are eligible for siting destination resorts.4 Lastly, according to the Comprehensive Plan, the numerous beneficial impacts of destination resorts are recognized by Statewide Planning Goal 8 and by implementing statutes. The new provisions comply with Goal 9 as they will expand the opportunities for more destination resorts, which are a source of economic development by providing jobs in the construction and service industries. In fact, as described in the findings below, the initial reason decades ago the legislature allowed destination resorts in rural areas was to provide a means of economic development particularly in areas such as Central Oregon where farm and forest lands were not as productive as other areas in the state. Although the County is generally not subject to Goal 10, these destination resorts do provide additional housing, albeit, generally higher end housing. Goal 11 is not applicable to destination resorts because destination resorts are specifically allowed urban -type services such as sewer and water. New case law pertaining to Goal 12 requires a map amendment to demonstrate consistency with the Transportation Plan Rule. Refer to Footnotes #2 and #10 for more context. Goal 13 is also addressed through the destination resort zoning code, DCC Chapter 18.113. This specific chapter requires destination resorts during the conceptual master plan (CMP) process to prepare utility and water conservation plans.5 Furthermore, the planning director or hearings body during the CMP process must find that the minimum dimensional standards are adequate to satisfy the intent of the comprehensive plan relating to solar access (DCC 18.113.060(G)(1)). Goal 14 is not applicable to destination resort map amendments because, while destination resorts are built and operated much like an urban area could be, they are specifically allowed in rural areas with some additional requirements. 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. The eighth finding below further substantiates that the text amendments are (UIJIJ IGIt VVI Ll 1 the Comprehensive Plan. 2. Destination Resort Map Amendment / Oregon Revised Statute Originally, an acknowledged destination resort map could only be amended during a state periodic review process. Deschutes County started its periodic review in 1988 and completed it on January 23, 2003. In 2003, the Oregon Legislature amended ORS 197.629(3) exempting counties from periodic review, excluding portions of its population within the urban growth boundary (UGB) of a city. New language was added to ORS 197.455(2) in that same session allowing counties to remap, not more frequently than once every thirty (30) months.6 Remapping is now dependent on creating a process for collecting and processing all map amendments made within a thirty (30) month planning period. 3. Destination Resorts / Statewide Provisions 4 http://egov.oregon.gov/LCD/docslgoals/goal8.pdf 5 DCC 18.113.050(B)(5) and (11c) 6 http://www.leq.state.or.us/ors/197.html Page 3 of 10 - Exhibit B to Ordinance 2010-024 Initially, destination resorts were not allowed on rural lands in Oregon without an 'exception" to the statewide planning goals that limit development on farm or forest land. However, several large resort developments preceded the statewide land use planning system, including Black Butte, Sunriver, and Inn of 7'h Mountain/Widgi Creek. In 1981, Governor Atiyeh's Task Force on Land Use Planning recommended that destination resorts be allowed as an economic development tool in rural areas, with certain sideboards to limit their effects and ensure that their main focus would be overnight lodging rather than second home development. The provisions authorizing the siting of destination resorts outside UGBs without taking exceptions to statewide planning goals were adopted by the Land Conservation and Development Commission (LCDC) in 1984 as amendments to Statewide Planning Goal 8. However, in 1987 the entire content of Goal 8 was added to state law (ORS 197.435 — 197.465), at the request of destination resort interests.' 4. Deschutes County Destination Resort Chapter A destination resort chapter was added to the Deschutes County Comprehensive Plan in 1992 at the request of Eagle Crest Resort.8 Table 1 lists the mapping criteria used by the County to determine resort eligibility. Under state law, destination resorts are only allowed on a county's destination resort map. As demonstrated in Table 1, the County supplemented the state's criteria by excluding large agricultural and forest parcels, and resource lands within one mile of a UGB.9 The mapping was done in a phased sequence, based on pending farm and forest studies. Additionally, as a result of a court case, lands within three miles of the county border were also excluded since most of the lands in Jefferson and Crook counties had not yet been evaluated. At that time, it could not be demonstrated they contained high value crop areas excluded by Statewide Planning Goal 8 and ORS. If a property was not excluded from the m4. by state or county criteria, it was automatically designated beginning in 1992 on Deschutes County's Destination Resort overlay map. Agenda item 4, October 15, 2008 LCDC Meeting - Informational Briefing and Public Hearing Regardir g Destination Resorts. 8 http://www.co.deschutes.or.us/dccode/title23/docs/chaoter7o2023.84.doc 9 Destination Resort Legislative History: Ordinance Nos. 92-001, 92-002, 92-003, 92-029, 92-030, 92-031, 92-032, 93-029, 93-030, 93-031, and 2001-019. Page 4 of 10 - Exhibit B to Ordinance 2010-024 Table 1 — Deschutes County Destination Resort Map Criteria (1992) Agency State of Oregon 10 Criteria IL .40000 Lands s . Within 24 air mites of UGB with an existing population of 100,000 01 more unless residential uses are limited to those necessary for the staff and management of the resort. • On a site with 50 or more contiguous acres of unique or prime farmland identified and mapped by the United States Natural Resources Conservation Service, or its predecessor agency. • On a site within 3 miles of a high value crop area unless the resort complies with the requirements of ORS 197.445 (6) in which case the resort may not be closer to a high value crop area than 1/2 - mile for each 25 units of overnight lodging or fraction thereof. • On predominantly Cubic Foot Site Class 1 or 2 forestlands as determined by the State Forestry Department, which are not subject to an approved goal exception. • In an especially sensitive big game habitat area as determined by Oregon Department of Fish & Wildlife in July 1984 or as designated in acknowledged comprehensive plan. Deschutes County • All resource (farm and forest) lands within one mile of a UGB_ Irrigated Exclusive Farm Use (EFU) lands greater than 40 acres of contiguous irrigation under one ownership. Irrigated EFU lands greater than 60 acres of non-contiguous land in the same ownership. All Forest Use 1(F-1) zoned property. Wildlife: a) Tumalo & Metolius deer winter range; b) antelope winter range east of Bend; c) antelope winter range near Millican; d) elk range, e) sage grouse range. Inducted Lands Forest Use 2 (F-2), Multiple, Use Anrir,ulture (MITA-10) and Rural Residential (RR -10) zones. • Unirrigated EFU lands, • Irrigated EFU lands less than 40 acres of contiguous irrigation under one ownership. Irrigated EFU lands with 60 acres or less of non-contiguous land in the same ownership_ Today, there are 112,448 acres in Deschutes County mapped for destination resorts. A v:ist majority are unsuitable for resort development because they are irreversibly committed to platted subdivisions, rural residential development or small lots. Notable statistics include- • 10% of mapped area (10,931 acres) is developed or planned as a destination resort or resort community (Sunriver, Black Butte, Inn of 7"' Mountain/Widgi Creek); and, • 54% of mapped area (60,175 acres) contains properties less than 160 acres, includ ng several platted subdivisions. 10 See footnote #5. ORS 197.435 to 197.467 Page 5 of 10 - Exhibit B to Ordinance 2010-024 5. Ordinance 2010-001 / Destination Resort Goals and Policies Ordinance 2010-001 amends the Comprehensive Han, DCC Chapter 23.84, to include new goals and policies that describe the areas that are eligible and ineligible for siting a destination resort. The criteria noted in Table 2 demonstrates that the new provisions provide dear and objective mapping criteria. /1/ Page 6 of 10 - Exhibit B to Ordinance 2010-024 Table 2 - Map Eligibility Criteria State of Oregon Inelfgil2le Lands ';__ ` Destination resorts shall not be sited in Deschutes County in the following areas: • Within 24 air miles of an urban growth boundary with an existing population of 100,000 or more unless residential uses are limited to those necessary for the staff and management of the resort; • On a site with 50 or more contiguous acres of unique or prime farm land identified and mapped by the Soil Conservation Service or within three miles of farm land within a High -Value Crop Area; • On predominantly Cubic Foot Site Class 1 or 2 forest lands which are not subject to an approved Goal exception; • On areas protected as Goal 5 resources in an acknowledged comprehensive plan, where all conflicting uses have been prohibited to protect the Goal 5 resource • In an especially sensitive big game habitat area as determined by ODFW in July 1984 or designated in an acknowledged Comp Plan. Tumalo deer winter range; ii. Portion of the Metolius deer winter range; iii. Antelope winter range east of Bend near Horse Ridge and Millican • Sites less than 160 acres • Areas of Critical State Concern. Deschutes County • Sites listed below that are inventoried Goal 5 resources, shown on the Wildlife Combining Zone, that the County has chosen to protect: i. Antelope Range near Horse Ridge and Millican; ii. Elk Habitat Area; and hi. Deer Winter Range • Wildlife Priority Area, identified on the 1999 ODFW map submitted to the South County Regional Problem Solving Group; • Lands zoned Open Space and Conservation (OS&C); • Lands zoned Forest Use 1 (F-1); • Irrigated lands zoned Exclusive Farm Use (EFU) having 40 or greater contiguous acres in irrigation; • Non-contiguous EFU acres in the same ownership having 60 or greater irrigated acres; ▪ Farm or forest land within one mile outside of urban growth boundaries; • Lands designated Urban Reserve Area under ORS 195.145; • Platted subdivisions; amble:land ~~ands For those lands not located in any of the areas identified as ineligible, destination resorts may be sited in the following areas: • Forest Use 2 (F-2), Multiple Use Agriculture (MUA-10), and Rural Residential (RR - 10) zones; • Unirrigated Exclusive Farm Use (EFU) land; • Irrigated lands zoned EFU having less than 40 contiguous acres in irrigation; • Non-contiguous irrigated EFU acres in the same ownership having less than 60 irri•ated acres; • Minimum site of 160 contiguous acres or greater under one or multiple ownerships Page 7 of 10 - Exhibit B to Ordinance 2010-024 6. Ordinance 2010-002 / Destination Resort Map Amendment Procedures Ordinance 2010-002 amends the County's procedural code, DCC Chapter 22.23, to include new destination resort map amendment procedures, summarized in Table 3, that describe the process for submitting a map amendment application. Tables - Destination Resort Map Amendment Procedures The existing comprehensive plan map of sites eligible for destination resorts ("eligibility map") may be amended as follows: • All amendments to the eligibility map shall be processed simultaneously and no more than once every 30 months. • The deadline for applications for the first eligibility map amendment shall be the first Tuesday in September by 5:00 p.m.. • Lands shown on the existing eligibility map but unable to comply with DCC 23.84.030(3)(a), 23.84.030(3)(b), 23.84.030(3)(c) and 23.84.030(3)(d) will remain on the eligibility map if property owners file a formal request with the Deschutes County Community Development Department on an authorized county form by the first Friday in January at 5:00 p.m. to remain eligible. • All lots in a previously platted and developed subdivision shall be eligible to remain on the eligibility map in the same manner as DCC 22.23.010(C). 1. Each lot in the subdivision must contain a deed restriction or Covenant, Condition and Restriction that authorizes the original developer of that subdivision, or its successors in interest, to apply for conversion of the subdivision to a destination resort; 2. The original developer of that subdivision, or its successors in interest, may apply on behalf of all of the individual lot owners to remain on the eligibility map. • In addition to any other county code provision regarding notice, 30 days prior to the end of the next 30 -month period for amendments to the eligibility map, Deschutes County shall publish notice announcing opportunities for property owners to apply for an amendment to the eligibility map. • Property owners must file applications for an eligibility map amendment prior to the last day o the 30 -month period by 5:00 p.m. • Any additional applications filed after the deadline in DCC 22.23.010(C) will be processed a Lite end of the riexi 30 -month cycie. • Applications to either remove property from or add property to the eligibility map may b<! initiated by the Board, or, if by a property owner, shall: 1. Be submitted by the property owner or a person who has written authorization from th•: property owner as defined herein to make the application; 2. Be completed on a form prescribed by the Planning Director; 3. Be accompanied by the appropriate filing fee, unless such fees are waived by the Board f County Commissioners; 4. Include documentation that demonstrates compliance with DCC 23.84.030(3)(a), 23.84.030(3)(b), 23.84.030(3)(c) and 23.84.030(3)(d); 5. For applications adding properties to the eligibility map, the applicant will be required io demonstrate consistency with the Transportation Planning Rule at OAR 660-012-0060 " • The planning director shall retain any applications received prior to the expiration of the 3i) month period. • Multiple applications shall be consolidated. • The planning director shall schedule the hearing before the planning commission or hearin Is officer after the expiration of the 30 -month period. 11 See note 2. Willamette Oaks, LLC v. City of Eugene and Goodpasture Partners, LLC, issued by the Oregon Court of Appeals on November 18, 2009 requires a local plan amendment to demonst ate Page 8 of 10 - Exhibit B to Ordinance 2010-024 7. Formal Map Amendments Because ORS 197.455(2) allows destination resort map amendments only every 30 months, the Board finds a need to establish deadlines for map amendment applications and a grandfather clause that allows existing mapped properties to remain on the map regardless of whether they do or do not qualify under the new, 2010 eligibility criteria. I hus, the new provisions in DCC 22.23.01003), (C) and (D) state: • (B) The deadline for applications for the first eligibility map amendment shall be the first Tuesday in September by 5:00 p.m. • (C) Lands shown on the existing eligibility map but unable to comply with DCC 23.84.030(3)(a), 23.84.030(3)(b), 23.84.030(3)(c) and 23.84.030(3)(d) will remain on the eligibility map if property owners file a formal request with the Deschutes County Community Development Department on an authorized county form by the first Friday in January at 5:00 p.m. • (D) All lots in a previously platted and developed subdivision shall be eligible to remair on the eligibility map in the same manner as DCC 22.23,010(C). 1. Each lot in the subdivision must contain a deed restriction or Covenant, Condition and Restriction that authorizes the original developer of that subdivision, or it; successors in interest, to apply for conversion of the subdivision to a destinatio i resort; 2. The original developer of that subdivision, or its successors in interest, may apply o behalf of all of the individual lot owners to remain on the eligibility map. 8. Consistency with Deschutes County Comprehensive Plan Deschutes County's Destination Resort Goal, DCC 23.84.020, provides for development Af destination resorts in the County consistent with Statewide Planning Goal 8 in a manner that II be compatible with farm and forest uses, existing rural development, and in a manner that vtill maintain important natural features, such as habitat of threatened or endangered species, streams, rivers and significant wetlands. As summarized in Tables 1 and 2, and cited in Ordinance 2010-001, Exhibit A, Deschutes County's proposed eligibility criteria continue to protect certain agricultural and forest lands, and acknowledged Goal 5 natural resources. ,.s discussed above, these new provisions were designed to comply with the statewide planning goals. Therefore, because the County's comprehensive plan was adopted to comply with tho;e goals and had been acknowledged as such, the new provisions also comply with the Count"'s comprehensive plan policies and goals, which are rarely more restrictive than the statewiie planning goals. Additionally, Ordinance 2010-002, Exhibit A, proposes a grandfathered clause for existing mapped properties to remain on the map regardless if they do not qualify under the new, 2010 eligibility criteria. Even these grandfathered properties, if so chosen to remain mapped, are consistent with the Comprehensive Plan because the existing destination resort map is consistency with Statewide Planning Goal 12 and the Transportation Planning Rule. Deschutes Cot my fulfills this obligation as cited in Table 3 above and specifically, Ordinance No. 2010-002, Exhibit A, 1 CC 22.23.010(G)(5). Page 9 of 10 - Exhibit B to Ordinance 2010-024 acknowledged by the Oregon Department of Land Conservation and Development.12 Map amendments represent only the first of several steps for a property to become entitled and developed as a destination resort. The Deschutes County Destination Resort Combining Zone, DCC 18.113 specifies an extensive burden of proof for an applicant seeking conceptual master plan as well as final master plan approval. That chapter was found years ago to be in compliance with the County's comprehensive plan and, as stated above, provides many of the protections required by the County's Comprehensive Plan policies. 12 See Finding #2, page 3. Page 10 of 10 - Exhibit B to Ordinance 2010-024 REVIEWED LEGAL COUNSEL For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONLRS. OFD SC}I;_1 lES COUNTY, OREGON An Ordinance Adding Deschutes County Code Chapter 22.23, Adopting Destination Resort Map Amendment Procedures, and Declaring an Emergency. * * * ORDINANCE NO. 2010-025 WHEREAS, the Board of County Commissioners ("Board") directed staff to initiate a plan amendn tnt to adopt map amendment procedures for destination resort remapping; and WHEREAS, after notice was given in accordance with applicable law, public hearings were helc .)n November 19, 2009, and on December 2, 2009 before the Deschutes County Planning Commission and )n December 2, 2009, the Planning Commission recommended approval of the Comprehensive Plan amendm n:s; and WHEREAS, on February 25, 2010 the Planning Commission forwarded to the Board addit,or;al recommendations for amendments to DCC Chapter 22.23; and WHEREAS, the Board held duly noticed public hearings on January 20, March 1, April 5, and Apr 1 9. 2010 on Ordinance 2010-001, the ordinance that included the amendments to DCC Chapter 23.84. and Ordinance 2010-002, the ordinance that added DCC Chapter 22.23, the procedures for amending the Ck gut ty Comprehensive Plan map; WHEREAS, on June 7, 2010, the Board amended Ordinance 2010-002, conducted the first and s,:cond reading by title only of Ordinances 2010-001 and 2010-002, and adopted both ordinances declarii .g an emergency; and WHEREAS, on June 9, the Board determined that the adoption of Ordinance 2010-002 was not d,)ne in accordance with ORS 203.045(6) because the amendment to Ordinance 2010-002 adopted on June 7, 2010 v as not included in the ordinance filed with the Board Clerk on June 1, 2010 or read in full by the Board, then by rendering the ordinance ineffective; and WHEREAS, on June 9, 2010, the Board repealed Ordinances 2010-001 and 2010-002 and schei ule i a public hearing on new versions of both ordinances for June 30, 2010 at 10:00 am; and WHEREAS, this ordinance replaces Ordinance 2010-002 with additional amendments to DCC 22.'3; and WHEREAS, the Board of County Commissioners considered this matter after a duly noticec put lic hearing on June 30, 2010 and concluded that the public will benefit from changes to the land use regal: tion ; and WHEREAS, in order to be able to provide direct public notice utilizing the county tax statement mail. ng in October, 2010 the Board finds it in the public interest to adopt this ordinance by emergency; now, they fore PAGE 1 OF 2 - ORDINANCE NO. 2010-025 THE. BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ORDAITsS as follows: Section 1. ADDING. DCC Chapter 22.23, Destination Resort Map Amendment Procedures, is here)y added to read as described in Exhibit "A" attached hereto and by this reference incorporated herein. Section 2. FINDINGS. The Board adopts as its undines Exhibit "R" attached Io Ordinance 2010-0Ol and incorporated by reference herein. Section 3. 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 , 2010 BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON ATTEST: DENNIS R. LUKE, Chair ALAN UNGER, Vice Chair Recording Secretary TAMMY BANEY, Commissioner Date of 15t Reading: day of _ , 2010. Date of 2'd Reading: day of , 2010. Record of Adoption Vote: Commissioner Yes No Abstained Excused Dennis R. Luke Alan Unger Tammy Baney Effective date: day of , 2010. PAGE 2 OF 2 - ORDINANCE NO. 2010-025 Chapter 22.23. DESTINATION RESORT MAP AMENDMENT PROCEDURES 22.23.010. Destination Resort Map Amendment Procedures. The existing comprehensive plan map of sites elide for destination resorts ("eligibility map")_ may be amended as follows: n Al! amendments to the eligibility map shall be processed simultaneously and nomore -than once every 30 nioirths. B. _ The deadline for applications for the first eligibility map amendment shall be the first Tuesday in September by 5:00 p.m. C. Lands shown on the existing eligibility map but unable to comply with DCC 23.84.030(3)(a) 23.84.030(3)(b), 23.84.030(3)(c) and 23.84.030(3)(d) will remain on the eligibility map if property owners file a formal request with the Deschutes County Community Development Department on ai authorized county form by the first Friday in January at 5:00 p.m. to remain eligible. D. All lots in a previously platted and developed subdivision shall be eligible to remain on the eligibility' map in the same manner as DCC 22.23.010(C). 1. Each lot in the subdivision must contain a deed restriction or Covenant Condition and Restrictio that authorizes the original developer of that subdivision, or its successors in interest, to apply fc r conversion of the subdivision to a destination resort; 2. The original developer of that subdivision, or its successors in interest, may apply on behalf i 1 all of the individual lot owners to remain on the eligibility map. E. In addition to any other county code provision regarding notice, 30 days prior to the end of the next 3 )- month period for amendments to the eligibility map, Deschutes County shall publish a noti :e announcin o p_ortunities for property owners to apply for an amendment to the eligibility map. F. Property owners must file applications for an eligibility map amendment prior to the last day of the 30 - month period by 5:00 p.m. G. Any additional applications filed after the deadline in DCC 22.23.010(C) will be processed at the end o the next 30 -month cycle. H.Applications to either remove property_ from or add property to the eligibility map_ may he initiated by the Board or, it by a propenyowner, shall: : 1. Be submitted by the propeity owner or a person who has written authorization from the pruprrt� owner as defined herein to make the application: 2. Be completed ona form prescribed by the Planning Director; 3. Be accompanied bv the apropnate fitine lee. unless such tees are waived by the Board of (.or ntv Commissioners- 4.Include documentation that demonstrates complianccwith DCC 23.84.03013)0). 23.84.030(3 (h) 23.84.030(3)(c) and 23.84.030(3; 5. l_'or applications adding properties to the eligibility in ip, the Applicant will be re(luito _ 0 demonstrate consistency with the transportation Planning Rule at OAR 660-012-0060. I. The planning director shall retain any applications received prior to the expiration of the 30-n_> nntl period. J. Multiple applications shall be consolidated. K_The planning director shall schedule the hearing before the planning commission or hearings of tic after the expiration of the 30 -month period_ (Ord. 2010-025 §i, 2010) PAGE 1 OF I - EXHIBIT "A" TO ORDINANCE 2010-025 EXHIBIT "A" Legal Description E%2NE'/4, Section 20 and W1/2NW'A, Section 21, Township 15 South, Range 12 East, Willamette Meridian State of Oregon to Thornburgh Resort Co LLC 33991 -SU Exhibit A Page 1 of 1 Exhibit B n Legend Residential Lodging gill Commercial Uses Recreational Facilities Inrra>Iraetnre Foetildes Opnn space I ��2 Overall tensity = .71 DUI Acre W NOP "op ALTHORNHURGI] RESORT CONCEPTUAL DEVELOPMENT PLAN- EXHIBIT # A-4 NESC,4';l5 COONN OREGON EXHIBIT "C" Space above this line for recorder's use After Recording, return to: Oregon Department of State Lands Attn: Nancy N Pustis, Eastern Region Manager 20300 Empire Avenue, Suite #1 Bend OR 97701 MEMORANDUM OF LEASE DATE: Z• BETWEEN: STATE OF OREGON, acting by and through its Department of State Lands ("Landlord") AND: Thornburgh Resort Company, LLC, an Oregon limited liability company ("Tenant") Pursuant to a lease agreement entered into by Landlord and Tenant onA� ("Lease"), Landlord has leased to Tenant certain real property identified as: Tax Lot 5300, being the E1/2NE1/4, Section 20 and W'/2NW'/, Section 21, Township 15 South, Range 12 East, Willamette Meridian, in Deschutes County, Oregon. This Memorandum of Lease is executed to evidence and confirm the Lease, to which reference made for its terms and conditions, which include the following: • The Premises may be improved, used and/or maintained by Tenant for "open space" only as further defined in the Lease. • The initial Term of the Lease is for five (5) years with two (2) renewal options of five year (5) each. • Landlord has a right to sell the property that is the subject of the Lease subject to Tenant',. rights under the Lease. This Memorandum of Lease may be recorded in the real property records of Deschutes County Oregon, in order to give notice of the existence of the Lease. This Memorandum of Lease may no be deemed or construed to define, limit, or modify the Lease, or any provision thereof, in any manner. State of Oregon to Thornburgh Resort Co LLC 33991-S1 Exhibit C Page 1 of " { LANDLORD: TENANT: State of Oregon, by and through its Thornburgh R- ompany, LLC, Department of State Lands an Oreg , -. 'ability com.any by: dG 7%?7 te hen J. Pur ase Authorized Sig ► . re Assistant Director ACKNOWLEDGEMENT OF LANDLORD STATE OF OREGON) ) ss. County of Marion ) Appeared before me on c o2� „pdS by Stephen J. Purchase, who represented that he executed this Memordpi um of Lease on behalf of the State of Oregon, acting by and through its Department of State Lands, and that this Memorandum of Lease is his voluntary act and deed. otary Pu for egon My commission Expires STATE OF OREGON County of 1X,41(1 Appeared betore me on ACKNOWLEDGEMENT OF TENANT ) ss. t Aby represented that he execu`_ed t Memorandum of L Company, LLC and that this Morandum of Lease i OFFICIAL SEAL PILAR ASH NOTARY PUBLIC -OREGON COMMISSION NO. 356809 MY COMMISSION EXPIRES APR. 16, 2006 se on b - his volunt who alf of Thornburgh Resort Notary Public or Oregon My commission Expires d dee I ol pc, State of Oregon to Thornburgh Resort Co LLC 33991 -SU Exhibit C Page2of2 STATE OF OREGON DEPARTMENT OF STATE LANDS Amendment to Special Use Lease -33991 OCT 0 9 2000 Effective C--c=Vc kr) , 2008, the following terms and conditions are modified in that certain lease between the STATE OF OREGON, acting by and through the Department of State Lands (STATE) and Thornburgh Resort Company, LLC, (LESSEE), which is dated and signed on August 24, 2005. All terms of the lease not specifically changed by this modification remain unchanged and in full force. RECITALS WHEREAS, Landlord owns 160 acres of undeveloped land in Sections 20 and 21, Township 15 South, Range 12 East, in Deschutes County, Oregon, defined below as the "Land"; and ARTICLE 4 Rent 4.1 Commencement. Beginning on the Commencement Date Tenant must pay rent of $11,488 per year as Annual Rent for the Premises. 4.3 Place for Payment of Rent. All rent due and payable under this Lease must be paid to Landlord at the Department of State Lands, 20300 Empire Avenue Suite #1, Bend, OR 97701,Attention: Eastern Region Manager, or such other places as Landlord may from time to time designate by written notice given to Tenant. 5.2.1 Conceptual Master Development Plan. Within three years after the Commencement Date and prior to beginning any Construction Work Tenant may develnn and s ihir it to Landlord for Landlord's approval a Conceptual Master Development Plan for the Land to govern Tenant's efforts to obtain a change in land use and future construction and development of the Land in conjunction with Tenant's Destination Resort. Landlord's approval of the Conceptual Master Development Plan may be granted or withheld in Landlord's sole and absolute discretion. Upon Landlord's approval of the Conceptual Master Development Plan, Tenant is authorized to seek a change in land use designation for the Premises in order to accommodate the Conceptual Master Development Plan. Landlord will cooperate with Tenant in submitting Tenant's application for such change in land use designation. Exhibit "A" Legal Description E1/2NE 1/4, Section 20 and W1/2NW1/4, Section 21 Township 15 South, Range 12 East, Willamette Meridian. STATE OF OREGON cPARTMENT OF STATE LANDS Assignment of Lease SU -33991 For good and valuable consideration received, Genesis Development Group, LLC hereby assign(s) to Agnes DeLashmutt all right, title, and interest in the attached lease number SU -33991, by and between the State of Oregon, acting by and through the Department of State Lands, as Lessor, and Genesis Development Group, LLC, as Lessee, covering the use of the real property and improvements described therein, situated in Deschutes County, State of Oregon. This assignment is not valid until the Department of State Lands issues its written consen Dated this 24 day of ab -re -h, 2010- r STATE OF 6P.6b/0 County of D �f,��-K•tTf S OFFICIAL SEAL CYNTHIA A ZOLLNER NOTARY PUBLIC -OREGON COMMISSION NO. 443229 MY COMMISSION EXPIRES NOV. 11, 2013 Th foregoing instrument was acknowledged before me this Z day of ill ~v�ah Z-tbSti `( iofficer or agent of corporation), the f9i QmQ rr C'ai11e-s JJ - - corporation), on behalf of the corporation. ,20 l0 ,by (title) of Sig ature My Commissions Expires: l/—/lTa Agnes DeLashmutt hereby acknowledge(s) the within assignment and agree(s) to be bound by all the terms, conditions, obligations, and liabilities in any way connected with the said lease and to faithfully perform all provisions therein contained. Dated this 24 4048 NW Xavier day of i l(ir<i , 20 10 (Address) Redmond OR 97756 (City) (State) 541-548-0222 (Area Code) qq (Phone Number) STATE OF Cs!���66/3 County of'jZt�- r (Zip) ASSIGNEE Agnes M. DeLashmutt (P ase print) OFFICIAL SEAL CYNTHIA A ZOLLNER NOTARY PUBLIC -OREGON COMMISSION NO. 443229 MY COMMISSION EXPIRES NOV. 11, 2013 2- day of 01 cure._�1 The foregoing instrument was acknowledged before me this AO (individual). , 20 , by My Commissions Expires: / 1-1/-13 The State of Oregon, acting by and through the Department of State Lands in the above-mentioned Lease, acknowledges and consents to this assignment. tx Dated this a, — day of /yireil SalemPF01FormSWNwrvationY.ease Assignment Individual to YldtvlduaLdoc ,20/rV DEPARTMENT OF STATE LANDS Byl Q anny R. Quac enbush Such condition(s) is (are) hereby deleted and in its place is substituted the following condition(s): RECITALS WHEREAS, in 2008 Landlord acquired 240 acres of undeveloped land from the Unites States Bureau of Land Management in Section 17, 20,29, & 30, Township 15 Sooth Ringo 12 Fast in Deschutes enunty, Oregon whir}, the Parttos desire to add to the original leased Land to result in a total of 400 acres of land, defined as the "Land"; and ARTICLE 4 Rent 4.1.1 Commencement. The Commencement Date for this Amendment is January 1, 2009. Beginning on the Commencement Date, Tenant must pay rent of $28,720 per year as Annual Rent for the Premises. 4.1.2 Place for Payment of Rent. All rent due and payable under this Lease must be paid to Landlord at: Department of State Lands Unit 18 PO Box 4395 Portland, OR 97208-4395 5.2.1 Conceptual Master Development Plan. Within three years after the Commencement Date, January 1, 2009, and prior to beginning any Construction Work Tenant may develop and submit to Landlord for Landlord's approval a Conceptual Master Development Plan for the Land to govern Tenant's efforts to obtain a change in land use and future construction and development of the Land in i u31� uu.,tioli with Tenant's Destination Resort. Landlord's approval of the Conceptual Master Development Plan may be granted or withheld in Landlord's sole and absolute discretion. Upon Landlord's approval of the Conceptual Master Development Plan, Tenant is authorized to seek a change in land use designation for the Premises in order to accommodate the Conceptual Master Development Plan. Landlord will cooperate with Tenant in submitting Tenant's application for such change in land use designation. Exhibit "A" Legal Description Township 15 South, Range 12 East, Willamette Meridian, NE1/4SW1/4, Section 17; E1/2NE 1/4, SE1/4SW1/4, Section 20; W1/2NW1/4, Section 21; N1/2NW1/4, Section 29; NE1/4NE1/4, Section 30 Total of 400 acres, more or less. IN WITNESS WHEREOF the parties have executed this lease Amendment. STATE: The State of Oregon, acting by and through the Oregon State Land Board and the Department of State Lands 1645 NE Forbes Road, Suite 112 Bend, Oregon 97701 Authorize& Signature 0/1r31 Date LESSEE: Thornburgh Resort Company,LLC c/o Kameron Delashmutt P.O. Box 264 Bend, Oregon 97701 WITNESS the seal of the Department of State Lands affixed this 2008. STATE OF OREGON, acting by Nancy N. ustis STATE OF OREGON day of and through its Department of State Lands )ss County of Deschutes This foregoing instrument was acknowledged before me this 161l'day of0(--, 2008, by Nancy N. Pustis, the Eastern Region Manager of the Department of State Lands. OFFICIAL. SEAL RHONDA L RAY NOTARY PUBLIC -OREGON COMMISSION NO, 397014 MY =MISSION EXPIRES SEPTEMBER 12.2009 Signature My commission Expires STATE OF OREGON DEPARTMENT OF STATE LANDS UPLAND SPECIAL USE LEASE AGREEMENT T IS LE E AGREEMENT (the "Lease") is made and executed as of the 2` day of �ff , 2005, by and between the STATE OF OREGON, acting by and through its r e r5rtment of State I ands ("1 and!orrP') and Thomrturgh Resort Company, I I C an C)regon limited liability company ("Tenant"). RECITALS WHEREAS, Landlord owns 160 acres of undeveloped land in Sections 20 and 21, Township 15 South, Range 12 East, in Deschutes County, Oregon, defined below as the "Lanae'; and WHEREAS, the Land is adjacent to approximately 1980 acres owned by Tenant; and WHEREAS, Tenant's land is zoned for Destination Resort ("DR") use, pursuant to Chapter 18.113 of the Deschutes County Ordinances, and Landlord's Land is zoned for Exclusive Farm Use ("EFU"); and WHEREAS, Tenant has filed with Deschutes County, a Conceptual Master Plan and Conditional Use Application ("Land Use Application") for development of permanent residential housing, overnight lodging, golf courses and other commercial and recreational amenities, described as the "Destination Resort"; and WHEREAS, Tenant's Land Use Application identifies the Land as being owned by the State of Oregon, and, subject to execution of this Lease, proposed for "open space" use, consistent with the current EFU zoning; and WHEREAS, by entering into this Lease, in addition to authorizing such open space, Tenant and Landlord seek to explore opportunities for re -zoning and possible future development of the Land, as part of the Destination Resort; and WHEREAS, to facilitate such efforts, Tenant will develop for Landlord's consideration a "Master Development Plan" (as defined below) describing how the Land could be incorporated into development of the Destination Resort, subject to required zoning changes and local land use approval; and WHEREAS, Landlord and Tenant intend that if Landlord approves the Master Development Plan Tenant will have an option to extend the Lease and Landlord and Tenant will modify the Lease to allow Tenant to proceed with efforts to obtain required zoning changes and land use approvals, and thereafter to develop the Land in accordance with the approved Master Development Plan; and State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 1 of 35 WHEREAS, the parties intend to cooperate, in good faith, to reach agreement on a Master Development Plan, and to take steps necessary to obtain local land use approval for implementation of the Master Development Plan for the Land. NOW THEREFORE, the parties agree as follows: "RTI.r..LE 1 Definitions Annual Rent. "Annual Rent" means the rent specified in Section 4.1, as adjusted under Section 4.4, due and payable on the Commencement Date and then annually on the first day of each year during the Term. Anniversary Date. The "Anniversary Date" means the date which occurs annually each year during the Term on the anniversary of the Commencement Date. Approved Sublease Form. "Approved Sublease Form" means a sublease agreement in a form that is from time to time throughout the Term provided by Landlord, or which is submitted by Tenant for approval by Landlord, and which is to be used by Tenant in connection with subleasing all or any part of the Premises or space in the Improvements. There may be more than one Approved Sublease Form. Approved Use. "Approved Use" or "Approved Uses" means a use of the Premises described in Section 5.1 or to which Landlord has given written consent. Cancellation Notice. "Cancellation Notice" means written confirmation of cancellation of the Lease. Commencement Date. "Commencement Date" means the last date upon which this Lease is executed by the Landlord or Tenant. Construction Work. "Construction Work" means any grading or excavating for, or the building or demolition of, an Improvement on the Premises that is performed by or for Tenant. Contractor. "Contractor" means a licensed, bondable, reputable contractor selected by Tenant or any Subtenant in accordance with the terms of this Lease or an approved Sublease under Section 7.2. Design Professional. "Design Professional" means a suitably qualified and experienced architect or engineer licensed to practice as such in the State of Oregon. Estoppel Certificate. "Estoppel Certificate" means a statement from Landlord or Tenant certifying that this Lease is unmodified and in full force and effect without default, or, if there have been modifications or defaults, that this Lease is in full force and effect as modified or subject to such claims as are set forth in the statement. The statement must also state the dates to which the Annual Rent has been paid and the existence of any other charges of general application by any State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 2 of 35 public authority which during the Term are scheduled to be assessed, levied, charged, confirmed or imposed by public authority upon or accrue or become due or payable on account of or become a lien on or against the Premises and Improvements or any portion thereof, and any interest in the Premises, including the fee estate or any leasehold estate, or any Improvements, personal property or other property in or on the Premises, during the Term by any Governmental Authority having jurisdiction, whether belonging to or chargeable against, Tenant, Subtenant, Landlord, or a subsequent owner of the fee interest. Governmental Authority. "Governmental Authority" means any federal, state or local jurisdiction that exercises authority over the Premises or the activities of Tenant. Hazardous Materials. "Hazardous Materials" means any material regulated by federal or state environmental protection laws or any material that may pose a threat to human health or the environment, including without limitation, hazardous substances, pesticides, herbicides, or petroleum products. Impositions. "Impositions" means all taxes, assessments, fees and other special or general charges assessed against the Land by a taxing body or regulatory authority. Improvements. "Improvements" means all buildings, structures, fixtures, fences, interior roads, garages, parking lots, fountains, utility installations, excavations, surfacing, water banks or channels, landscaping, grading and plantings which are currently located on the Premises and, following completion, all Construction Work to be performed on the Premises by Tenant or at Tenant's direction or under Tenant's authority in accordance with this Lease, and applicable codes and ordinances. Institutional Lender. "Institutional Lender" means a commercial provider of financing in the form of mortgages or loans secured by one or more deeds of trust. Insurance Trustee. "Insurance Trustee" means a neutral third party appointed by Landlord and Tenant for the purpose of holding and disbursing insurance proceeds following a casualty loss. Land. "Land" means the Landlord -owned real property situated in the County of Deschutes, State of Oregon, more particularly described in Exhibit A, attached hereto, that is the subject of the Lease. Landlord. "Landlord" means the State of Oregon, acting by and through its Department of State Lands, or its successors and assigns. Late Payment Rate. The "Late Payment Rate" means the maximum rate of interest permitted by applicable law after a default, such rate not to exceed nine (9) percent annually. Lease. "Lease" means this Lease Agreement together with all Exhibits attached hereto. This Lease is subject to: a) all applicable state and federal statutes, rules, and regulations in effect on the Commencement Date, and State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 3 of 35 b) insofar as is constitutionally permissible, all statutes, rules, and regulations which become effective after the Commencement Date. Lease Year. "Lease Year" means a year of 365 days (366 days in a leap year) commencing on the Commencement Date and each subsequent Anniversary Date. Leasehold Mortgage. "Leasehold Mortgage" means any mortgage, deed of trust, or other Security instrument encumbering Tenants leasehold estate created hereby and which i5 in favor of an Institutional Lender. Leasehold Mortgagee. "Leasehold Mortgagee" means the holder, trustee or beneficiary of a Leasehold Mortgage who is an Institutional Lender. Master Development Plan. "Master Development Plan" means the plan developed by Tenant for construction of the Destination Resort on the Premises, as described in Section 5.2 below. The Master Development Plan shall include two phases: 1) a "Conceptual Master Development Plan" that provides a general framework for future development of the site, with sufficient specificity to allow for approval by Landlord for Tenant to proceed with seeking a land use change, and 2) a "Final Master Development Plan" that provides additional details and refinement of the Conceptual Master Development Plan for purposes of proceeding with construction after land use approval. Person. "Person" means any entity, whether an individual, trustee, corporation, partnership, trust, unincorporated organization or otherwise. Premises. "Premises" means Tenant's leasehold interest in the Land and any Improvements situated thereon. Sublease. "Sublease" means a subsidiary lease from Tenant to a Subtenant, approved by the Landlord, of all or any portion of the Premises in which the interest so transferred is less than Tenant's entire interest hereunder. Subtenant. "Subtenant" means any person or entity occupying space on or in the Premises under a Sublease approved by the Landlord. Tenant. "Tenant" means Thornburgh Resort Company, LLC, an Oregon limited liability company, and Tenant's successors and assigns hereunder. Term. "Term" means the period of time during which the Lease will be in effect, as described in Sections 3.1 and 3.2 hereof. Unavoidable Delay. "Unavoidable Delay" means delay due to strikes, lockouts, acts of God, unavailability of labor or material, embargoes, war, enemy action, civil commotion, fire, windstorm, flood, explosion, earthquake, unavoidable casualties, building or use moratorium imposed by applicable Governmental Authority, activities necessary to remediate any environmental condition of the Premises not caused by Tenant, or other similar causes beyond the reasonable control of Tenant, including any delay caused by the act or omission of Landlord. State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 4 of 35 Utilities. "Utilities" means all services and public utilities delivered to, provided for, or consumed on the Premises, including, without limitation, such services as janitorial and garbage pick-up and such utilities as natural and propane gas, water, sewer, storm sewer, electricity, cable television, and telephone and telefacsimile services. Work. "Work" means all construction work, development and improvements to the Premises to be performed by er on behalf of Tenant er Su tenanf ARTICLE 2 Lease of the Premises 2.1 Demise. Landlord hereby leases to Tenant and Tenant hereby hires from Landlord, the Premises located at Township 15 South, Range 12 East, Sections 20 and 21, Deschutes County, Oregon more particularly described in Exhibit A. PROVIDED, HOWEVER, that the Premises will at all times during the Term be subject to the reserved rights of Landlord, the limitations on uses set out in this Lease and the provisions of Division 125 of the Oregon Administrative Rules, chapter 141 (Special Use on State Owned Land) . Landlord also specifically reserves the right to use all access roads and easements on the Premises, and to use the Premises as necessary to access that portion of Landlord's property that is not subject to this Lease. 2.2 Sale of Premises. Landlord reserves the right to sell Landlord's fee interest in all or any part of the Land at any time during the Term. Any such sale or sales of the Land will be made subject to Tenant's rights and Landlord's obligations under this Lease. 2.3 Encumbrances; Reservation of Rights. This Lease is subject to the following matters to the extent that they affect the Premises: a) Any lien, charge, claim or other encumbrance whether of record or not, to the extent valid and subsisting and affecting the Premises; b) The effect of all present building restrictions and regulations and present and future zoning laws, ordinances, resolutions and regulations and all present ordinances, regulations and orders of all boards, bureaus, commissions and bodies and any county, state or federal agency, now having, or hereafter having acquired, jurisdiction of the Premises and the use and improvement thereof, including, but not limited to, the Deschutes County Comprehensive Plan and Revised Code (including Zoning Ordinances); c) The condition of the Premises on the Commencement Date; d) All taxes (including local improvement rates), duties, assessments, special assessments, water charges and sewer rents and any other Impositions, accrued or unaccrued, fixed or not fixed; e) Any facts and any current violations of law, ordinances, orders or requirements that might be disclosed by an accurate physical survey, or an examination and physical inspection or search of the Premises by any Governmental Authorities, as the same may exist on the Commencement Date; and State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 5 of 35 f) Landlord's reserved right to locate, construct, install, and maintain sewers, utility lines, dredge pipes, transit tubes, telecommunications lines, and similar installations or facilities in, on, under, over or across the Premises, and, further, Landlord's right to grant to third parties, rights of way, easements, or other rights to come on, move under, over, or across, gain access to, or otherwise use the Premises during the Term, provided that Landlord's reserved right must not unreasonably interfere with the right of quiet enjoyment of the Tenant and any Subtenant, and that Landlord will provide reasonable prior notice in the event Landlord Intends to exercise Landiord's reserved fight. 2.4 Tenant's Waiver of Claims and Indemnification. 2.4.1 Tenant hereby acknowledges that it has had the opportunity to undertake all inspections and investigations of the Premises as it deems necessary; has requested of Landlord, and has reviewed, all reports, studies and investigations of the Premises as it deems necessary, and has otherwise undertaken such due diligence as it deems appropriate with respect to the Premises. Tenant acknowledges that it is leasing and accepts the Premises and the Improvements on an "As Is" and "Where Is" basis. Tenant acknowledges and agrees that Landlord has not made nor is Tenant relying upon any representations or warranties made with respect to the Premises, including but not limited to, the condition of the Premises, the use(s) to which the Premises may be put or for which the Premises may be developed. 2.4.2 Tenant hereby releases and waives all claims against Landlord, its officers, public officials, employees, agents or contractors for injury or damage to person, property, or business sustained in or about the Premises by Tenant, its agents, employees, invites, customers, Subtenants or other occupants or users of the premises, which injury or damage results from any act, neglect, occurrence, or condition (including pre-existing conditions) in or about the Premises, unless such damage is caused by Landlord, its officers, public officials, employees, agents or contractors. 2.4.3 Tenant must defend, indemnify and hold Landlord and Landlord's fee interest under this Lease free and harmless from and against any and all liability, claims, loss, damages, penalties, fines, causes of action and expenses resulting from Tenant's occupation and use of the Premises including, without limitation, any liability, claim, loss, damage, penalties, fines, causes of action and expense incurred or suffered by Landlord and arising by reason of: a) The death or injury of any person, including any person who is an officer, employee, or agent of Tenant, by reason of the condition of the Premises, damage to or destruction of any property, including property owned by Tenant or by any Person who is an employee or agent of Tenant, from any cause arising from Tenant's use of the Premises (other than any act or omission of Landlord, its officers, employees, or agents) while such person or property is in or on the Premises or any of the Improvements; b) Tenant's failure to perform any provision of the Lease or, subject to any rights to contest provided Tenant herein, to comply with any requirement of law or any requirement imposed on Tenant in connection with the Improvements thereon, or the Premises, by any duly authorized governmental agency or political subdivision; or State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 6 of 35 c) Any occurrences for which Tenant's waiver set out in Section 2.4(b) applies. 2.5 Landlord's Waiver of Claims. Landlord hereby waives claims against Tenant and releases Tenant, its officers, employees, agents or contractors from any and all liability, claims and damages of any type or kind that are caused by or are the proximate result of the acts or omissions of Landlord, its officers, employees or agents, except to the extent that the liability, claims or damages are related 1n nr arise ^ut of activities nr "missions hy Tenant its. agents PmnlnYeC' contractors, or Subtenants. ARTICLE 3 Term 3.1 Term and Early Termination. The Term will commence on the Commencement Date and will expire on the Fifth (5th) Anniversary Date of the Commencement Date. 3.2 Options to Renew Lease. Tenant is provided consecutive options to extend the Lease for two (2) additional Terms of five (5) years each, provided that at the time the option is exercised Tenant is a tenant in good standing and is not in material default of the Lease. Each option must be exercised by Tenant providing notice to Landlord in writing not less than 180 days before the expiration of the then -current Term. ARTICLE 4 Rent 4.1 Commencement. Beginning on the Commencement Date Tenant must pay rent of $11,488 per year as Annual Rent for the Premises. 4.2 Payment of Annual Rent. Commencing on the Commencement Date and except as otherwise provided herein, Tenant must pay to Landlord Annual Rent in advance on the first day of each calendar year during each Lease Year for the entire Term, without any abatement, offset or deduction. If the Commencement Date occurs on other than the first day of a calendar year, Annual Rent for the period from the Commencement Date to the last day of the year in which the Commencement Date occurs will be prorated based on a three hundred sixty-five (365) day year and must be paid on the Commencement Date. 4.3 Place for Payment of Rent. All rent due and payable under this Lease must be paid to Landlord at the Department of State Lands, 20300 Empire Avenue Suite #1, Bend, OR 97701, Attention: Eastern Region Manager, or such other place as Landlord may from time to time designate by written notice given to Tenant. 4.4 Rent Redetermination. 4.4.1 If Tenant's Master Development Plan is approved and Tenant receives land use approvals allowing development of the Destination Resort, the Annual Rent will he adjusted as part of the renegotiation of lease terms provided in Section 5.2.2. State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 7 of 35 4.4.2 If land use approvals have not been obtained but Tenant elects to exercise its option to renew the Lease as granted in Section 3.2, the Annual Rent will be adjusted as described in this section prior to the beginning of each additional Term. Adjustments to the Annual Rent under this paragraph will be based on the then current fair market value of the bare Land as determined by the parties' agreement and if no such agreement can be reached then by an MAI certified appraiser selected by Tenant and approved by Landlord. 4.4.3 Selection of an appraiser must occur not later than three months prior to the beginning of Construction Work or the end of each Term, as the case may be. If Tenant and Landlord cannot agree on the selection within one (1) month after the appraiser has been selected, the parties may seek alternative dispute resolution pursuant to Section 15.1. If alternative dispute resolution is unsuccessful Landlord will select a qualified and certified appraiser to conduct the appraisal. In any event, the costs of the appraisal will be shared equally by Tenant and Landlord. 4.5 No Partnership and No Principal -Agent Relationship. Nothing in this Lease may be construed to render Landlord in any way or for any purpose a partner, joint venturer, or associate in any relationship with Tenant other than that of Landlord and Tenant, nor may the Lease be construed to authorize either to act as agent for the other except as expressly provided to the contrary herein. Further, Tenant is not an "officer," "employee," or "agent" of Landlord, as those terms are used in ORS 30.265. 5.1 Approved Uses. 5.1.1 space" only. agricultural or ARTICLE 5 Uses of the Premises The Premises may be improved, used and maintained by Tenant for "open For purpose of this Lease, the term "open space" means lands used for forest purposes and any use that is limited to, and in practice does: a) conserve and enhance natural or scenic resources; b) protect air, streams or water supply; c) promote conservation of soils, wetlands, beaches or marshes; d) develop and conserve landscaped areas in a way that minimizes pollution and enhance the value of adjoining or neighboring property; e) enhance the value to the public of adjoining or neighboring parks, forests, wildlife preserves, nature reservations or other open space; f) enhance recreation opportunities; g) preserve historic, geological and archeological sites; h) promote orderly urban development; outside the Premises; and i) minimize conflicts between farm and non-farm uses. 5.1.2 In addition to use of the Premises for "open space" purposes, Tenant is specifically authorized to construct, consistent with zoning and land use requirements, a paved road on the Premises in the general location described in Exhibit B attached hereto, for the purpose of obtaining access to and from Tenant's adjacent properties. State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 8 of 35 5.1.3 Use and development of the Premises will be stated in the "Memorandum of Lease" between Tenant and Landlord attached hereto and made a part of this Lease as Exhibit C. In the event of conflict between the "Memorandum of Lease" and the Lease, the Lease will be the controlling document. 5.1.4 Tenant must ensure that any use of the Premises complies at all times during the Term with all applicahle laws and regulations, including but not limited to all building restrictions and regulations and zoning laws, ordinances, resolutions and regulations and all ordinances, regulations and orders of all boards, bureaus, commissions and bodies and any county, state or federal agency, now having, or hereafter having acquired, jurisdiction of the Premises and the use and improvement thereof. 5.2 Master Development Plan for Destination Resort, Associated Residential and Commercial Development. 5.2.1 Within three years after the Commencement Date and prior to beginning any Construction Work Tenant may develop and submit to Landlord for Landlord's approval a Conceptual Master Development Plan for the Land to govern Tenant's efforts to obtain a change in land use and future construction and development of the Land in conjunction with Tenant's Destination Resort. Landlord's approval of the Conceptual Master Development Plan may be granted or withheld in Landlord's sole and absolute discretion. Upon Landlord's approval of the Conceptual Master Development Plan, Tenant is authorized to seek a change in land use designation for the Premises in order to accommodate the Conceptual Master Development Plan. Landlord will cooperate with Tenant in submitting Tenant's application for such change in land use designation. 5.2.2 Following final land use approval, and prior to proceeding with Construction Work, Tenant shall submit a Final Master Development Plan for Landlord's approval, which consent shall not be unreasonably withheld, and Landlord and Tenant will have the right to modify or expand the Lease provisions, as appropriate, to provide for implementation of the Final Master Development Plan, including but not limited to renegotiation of the Term and Annual Rent. 5.2.3 All Construction Work must be in accordance with the Final Master Development Ran, d , aU Tenant may make no iaa d al eLange in tuhe Fiunal Master Development Plan without the prior written consent of Landlord, which consent may be granted or withheld in Landlord's sole and absolute discretion. Tenant must comply at all times with the Master Development Plan, and failure to comply with the terms and conditions of the Plan will be a material breach of the Lease. 5.3 No Impairment of Reversionary Rights. Tenant must not suffer or permit the Premises, or any portion thereof, to be used by the public, as such, in a manner which would permit a claim or claims of: a) adverse usage or adverse possession by the public, as such, or b) implied dedication of the Premises or any portion there of to the public, as such. State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 9 of 35 Any easements, dedications or other similar rights or obligations created or granted by Tenant may affect only Tenant's leasehold estate in the Premises and must not encumber or affect the Landlord's Fee Interest without Landlord's prior written consent. 5.4 No Use in Violation of Law. Tenant must not use or allow the Premises or any part thereof to be used or occupied for any purpose other than a use stated in Section 5.1 or, notwithstanding Section 5.1, for any unlawful purpose or in violation of any certificate of occupancy or certificate of compliance CGVC'ilg or affecting the Premises, or any part t thereof, and Tenant must not suffer any dangerous condition to exist on the Premises or any part thereof unless appropriately safeguarded, and Tenant must not do or suffer to be done any act on the Premises which, in law, constitutes a nuisance, public or private or which may make void or voidable any insurance then in force with respect thereto. Tenant will not be deemed to be in violation of the terms and provisions of this Section 5.3 as the result of acts or omissions of a Subtenant so long as Tenant is proceeding in good faith and with due diligence to correct or remedy such acts or omissions or to terminate the defaulting Subtenant's Sublease and regain possession of the Subtenant's premises. ARTICLE 6 Taxes and Utilities 6.1 Payment of Impositions. In addition to the Annual Rent required to be paid under this Lease, Tenant must pay or cause to be paid, and Tenant hereby agrees to pay, Tenant's share of all Impositions falling due or applicable during the Term and any extended Term, if applicable. Any and all Impositions and installments of Impositions required to be paid by Tenant under this Lease must be paid by Tenant within fifteen (15) days of delivery to Tenant of Landlord's written request for payment or, if notice is provided directly to Tenant, before each such Imposition or installment becomes delinquent, and a true and correct copy of the official receipt for the payment of such Impositions must be delivered to Landlord within fifteen (15) calendar days after payment has been made. The payment of Impositions and all other sums required to be paid by Tenant under this Lease will constitute additional rent. 6.2 Change in Method of Taxation. If at any time during the Term the methods of taxation in effect on the Commencement Date are altered so that the whole or any part of the Impositions commonly considered as real estate taxes now levied, assessed or imposed on real estate and the improvements thereon are discontinued and as a substitute therefor, or in addition thereto, taxes on the rent derived from the Premises are imposed upon Landlord and the purpose of the new tax is more closely akin to that of an ad valorem or use tax than to an income or franchise tax on Landlord's income, then all such substitute taxes, assessments, levies, impositions or charges, to the extent that they are so measured or based, will be deemed to be included within the term "Impositions" tor the purposes hereof, to the extent that such substitute taxes would be payable if the Premises were the only property of Landlord subject to such tax. Tenant must pay and discharge the substitute tax or additional tax, as the case may be, upon receipt from Landlord of a statement setting forth in reasonable detail the basis on which the substitute tax constitutes an "Imposition" hereunder and the calculation of the amount due. 6.3 Impositions Payable in Installments. If, by law, any Imposition levied on or assessed against the Premises, and/or Tenant's interest therein, may, at the option of the taxpayer, State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 10 of 35 be paid in installments, then Tenant will have the option of paying such imposition or special or general assessment in installments as the same become due. The fact that the exercise of the option to pay the Imposition or assessment in installments will cause interest to accrue on the Imposition or assessment is immaterial and will not interfere with the free exercise of the option by Tenant. Landlord will cooperate with Tenant and on written request of Tenant execute or join with Tenant in executing any instruments required to permit any such tax or special or general assessment to be paid in installments. 6.4 Impounds. 6.4.1 If an Event of Default of a nature or kind that has previously occurred and been cured reoccurs at any time during the Term, Landlord, at Landlord's option, will have the right to require Tenant to deposit monthly with a commercial banking institution selected by Landlord (the "Depository'), to be held in a separate account (the "Deposit Account"), bearing interest at rates then prevailing for such type account: a) one -twelfth (1/12th) of the annual Impositions, and insurance premiums required hereunder, and b) an additional sum which when added to the monthly deposits thereafter to be made will be sufficient to pay such Impositions and insurance premiums when they become due. The agreement with the Depository establishing the Deposit Account must provide that checks drawn thereon may be signed by either a representative of Landlord or a representative of Tenant if drawn to the order of the Governmental Authority to whom Impositions are payable or to the broker or insurer to whom insurance premiums are payable, and that checks drawn thereon must be signed by a representative of Landlord and a representative of Tenant if drawn to the order of any other person or entity. 6.4.2 In the event that the amount of Impositions or insurance premiums is not fixed at the time when any such monthly deposit is required to be made, Tenant must make such deposit based upon the amount of the Impositions levied or assessed and the amount of insurance premiums paid for the immediately preceding calendar year, subject to adjustment as and when the amount of such Impositions and insurance premiums are ascertained. All sums deposited in the Deposit Account must be applied to the payment of Impositions and insurance premiums in the months during which such Impositions become due and payable each year. The interest earned on the Deposit Account must be credited against the next monthly deposit instaiimeni corning due. Ali costs and expenses of the Depository in maintaining the Deposit Account must be paid by Tenant. 6.4.3 Nothing herein contained will relieve or release Tenant from the absolute obligation to pay directly to the tax officials or authorities all Impositions when due, in the event Tenant fails to furnish Landlord with [he bilis, and deposits, if any, required to be furnished pursuant to the foregoing. 6.5 Right to Contest Impositions. Tenant may contest, oppose, or object to the amount or validity of any Imposition levied on or assessed against the Premises, Improvements, and/or Tenant's interest therein, or any part thereof. Tenant must give written notice of the contest, opposition, or objection to Landlord within a reasonable time prior to the time such contest is filed. Unless Landlord's joinder is required as a jurisdictional matter or by any law, rule or regulation in State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 11 of 35 order to make such action or proceeding effective (and in such event Landlord will join solely for the purpose of allowing Tenant to proceed with its contest and Tenant must pay the costs incurred by Landlord in connection with such joinder; provided, however, no such joinder will preclude Landlord from supporting any valuation of the Premises made for the purposes of assessing taxes thereon which valuation Tenant has elected to contest), Landlord may not be required to join in or cooperate in any such contest, opposition or objection, nor may Landlord be required to expend any monies in this connection, nor will Landlord be liable for any costs or expenses incurred or awarded in the pruuccuiiiy. F uithtj, no such contest, opposition, or objection may be commenced, continued or maintained after the date on which the Imposition, assessment, or other charge being contested becomes delinquent unless Tenant has either: a) Paid such Imposition, or other charge under protest prior to delinquency; or b) Obtained and maintained a stay of all proceedings for enforcement and collection of the tax, assessment, or other charge by posting such bond or other security required by law for such a stay; or c) Delivered to Landlord good and sufficient security in an amount specified by Landlord for the payment by Tenant of the Imposition, assessment, or charge together with the amount of any fines, interest, penalties, costs, and expenses that may have accrued or been imposed thereon in connection with Tenant's contest, opposition, or objection to such Imposition, or other charge. Any rebate or refund of Impositions by reason of such contest will be paid to Tenant. 6.6 Tax Returns and Statements. Tenant will, as between Landlord and Tenant, have the duty of preparing, making, and filing any statement, return, report, or other instrument required or permitted by law in connection with the determination, equalization, reduction, or payment of any taxes, special or general assessments, or other charges that are or may be levied on or assessed against the Premises, any portion of the Premises, any interest in the Premises, any Improvements or other property on the Premises. 6.7 Tax indemnification and Hold Harmless Clause. Tenant must indemnify and hold Landlord and the Premises free and harmless from any liability, loss, cost or expense incurred by Landlord as a result of Tenant's failure to pay the Impositions or other charges as required by this Lease to be paid by Tenant and from all interest, penalties, and other sums imposed thereon and from any sale or other proceeding to enforce collection of the Impositions or other charges. 6_8 Utilities. Tenant must pay or cause to be paid and hold Landlord and the Premises, free and harmless from all charges for the furnishing of Utilities to the Premises and Improvements during the Term and for the removal of garbage and rubbish from the Premises and Improvements during the Term. 6.9 Payment by Landlord. Should Tenant fail to pay within the time specified in this Lease any Impositions, Utilities or other charges required by this Lease to be paid by Tenant, or should Tenant fail to commence to contest such taxes, assessments, or other charges pursuant to this Article 6 hereof, then Landlord may, after prior written notice to Tenant and all Leasehold Mortgagees advising Tenant of its intention to do so (except that no prior written notice will be required if an emergency exists or if, during the time required to give such notice, additional penalties would be incurred), pay, discharge, or adjust such Impositions, Utilities or other charges for the benefit of Tenant. In such event, Tenant must promptly on written demand of Landlord State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 12 of 35 reimburse Landlord for the full amount paid by Landlord in discharging or adjusting such tax, assessment, Utilities or other charge together with interest thereon at the Late Payment Rate from the date of payment by Landlord until the date of repayment by Tenant. Where no time within which any charge required by the Lease to be paid by Tenant is specified in this Lease, such charge must be paid by Tenant before it becomes delinquent. npTlrt G 7 Construction 7.1 Conditions to Construction. Prior to approval by Landlord and local planning authorities of the Master Development Plan, Tenant may construct, to the extent consistent with local zoning and land use requirements, a paved road in the approximate location shown on Exhibit B. Following approval by Landlord and local planning authorities of the Master Development Plan, Tenant may construct other Improvements on the Premises, provided that all such Improvements are consistent with the Approved Uses described in Section 5.1 and the Master Development Plan and provided further that all such Improvements are constructed in accordance with this Article 7. 7.2 Conditions to Construction. Prior to commencement of any Construction Work for any Improvements started after the Commencement Date of the Lease, and before any building materials have been delivered to the Premises by Tenant or under Tenant's direction or authority, Tenant must comply with the following conditions or obtain Landlord's written waiver of the condition or conditions specified in the waiver: a) Preliminary Plans. Tenant must deliver to Landlord for Landlord's reasonable approval, one (1) set of preliminary construction plans and specifications (Preliminary Plans) at least sixty (60) calendar days prior to the proposed date for commencing the Construction Work. The Preliminary Plans must be prepared by a design professional or engineer licensed to practice as such in Oregon. The Preliminary Plans must include, as applicable, preliminary grading and drainage plans, soil tests, utilities, sewer and service connections, locations of ingress and egress to and from public thoroughfares and the curbs, gutters, parkways, street lighting, storage areas, plazas, public areas and landscaping and all other items customarily required by construction lenders to be included in plans and specifications for similar projects located in Deschutes County. b) Final Plans. Upon aporovai of Landlord, which approval will not be unreasonabiy withheld, the Preliminary Plans will be designated the "Final Plans" and will serve as the basis for the Construction Work. c) Building Permit. Tenant must, at its own cost and expense: i. cause the Final Plans, or such appropriate parts thereof as may be necessary, to be tiled with the appropriate governmental agencies ("Building Department"); and ii. as a condition to commencing any phase of construction for which a permit is necessary, obtain such permits. Promptly after issuance, a copy of each permit must be delivered to Landlord. After such permit or permits are issued based upon the plans previously approved by Landlord, Tenant must, at Tenant's sole cost and expense, proceed with diligence and continuity to carry out the Construction State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 13 of 35 Work in accordance with the Final Plans and the requirements of all applicable governmental agencies. Landlord agrees, if requested by Tenant, to join in any request for authorization or application in connection with Tenant's performance of the Construction Work on the Premises or conducting business thereon at no cost to Landlord. Tenant may deliver working drawings and plans to any governmental body, or Institutional Lender, in connection with its application for a building permit or other permits provided that the same are first delivered to Landlord for approval as herein provided. 7.3 Contractor. All Construction Work must be performed by licensed, bondable, reputable Contractors registered with the Construction Contractors Board as required in ORS chapter 701. 7.4 Compliance With Law and Quality. The Construction Work must be performed in accordance with all statutes, ordinances, regulations, and orders of all federal, state, county, or local governmental agencies or entities having jurisdiction over Construction Work, the Premises, and the Improvements. All Construction Work performed on the Premises pursuant to this Lease, or authorized by this Lease, must be done in a good and workmanlike manner, and only with materials of good and durable quality. 7.5 Completion. Tenant must cause all Construction Work to be diligently pursued without unnecessary interruption. 7.6 Inspection. Landlord has the right, but not the obligation, to inspect the Premises in relation to the Construction Work at all reasonable times during normal business hours, upon reasonable prior notice to Tenant. Landlord's inspections must not unreasonably interfere with the progress of such Construction Work. This Section will in no way control any right of governmental inspection necessary and permitted under applicable codes and ordinances. 7.7 Tenant's Construction Indemnity. Tenant agrees to defend, indemnify and hold harmless Landlord, and its officers, employees, and agents from and against any and all loss, costs and expenses, including reasonable attorneys, fees, damages or injury, incurred or suffered by Landlord and arising from, relating to, or occurring in connection with the Construction Work, excluding any loss, costs or expenses arising from the gross negligence or willful misconduct of Landlord or Landlord's officers, employees, or agents. 7.8 Construction by Subtenants. Tenant agrees that in the event it elects to allow a Subtenant to perform any Construction Work on the Premises, the provisions of this Article 7 will be included in the Sublease and the Construction Work must comply with this Article. Further, Tenant will remain fully liable and responsible for Completion of the Construction Work in compliance with all the provisions of this Lease. State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 14 of 35 ARTICLE 8 Liens and Mortgages 8.1 No Liens Permitted On Reversion. Tenant may not create or permit to be created or to remain, by its acts or omissions or the acts or omissions of its Subtenants, contractors or subcontractors, and Tenant will discharge, any lien, encumbrance or charge which might be or become a lien, charge, or encumbrance on the fee interest of Landlord or any part thereof and will also disci idi ge ally iiei-i levied on account of any imposition or any i iec har lie's, laborer's or materialman's lien, mortgage, conditional sale, title retention agreement, security agreement or otherwise which might be or become a lien, encumbrance or charge upon the fee interest of Landlord or any part thereof and which has any priority or preference over or ranks on a parity with the estate, rights and interest of Landlord in the Land or any part thereof; provided, however, nothing herein requires payment by Tenant of any lien or encumbrance on the Premises created by Landlord's acts or omissions or which is imposed upon Landlord by reason of Landlord's ownership of the fee estate (other than the Impositions) regardless of the tenancy of Tenant and not caused by the acts or omissions of Tenant. Tenant further agrees that Tenant will not, except as in this Lease provided, suffer or create any other matter or thing whereby the reversionary estate, rights and interest of Landlord in the Premises or any part thereof might be impaired; and any Imposition must, after the same becomes a lien on the Premises, be paid (or contested) by Tenant in accordance with Article 6 hereof, and any mechanic's, laborer's or materialman's lien incurred by Tenant must be discharged (or contested) in accordance with Section 8.2 below. 8.2 Mechanic's Liens. If any mechanic's, laborer's or materialman's lien is at any time recorded against the Premises or any part thereof, Tenant must immediately provide a copy of such claim of lien to Landlord and, within twenty (20) business days after notice to Tenant of such lien or claim of lien, must cause the same to be discharged of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwise. If Tenant fails to cause such lien to be discharged as required under this section, then, in addition to any other right or remedy which Landlord may have under this Lease or otherwise, Landlord may, but will not be obligated to, discharge the same either by paying the amount claimed to be due or by procuring the discharge of such lien by deposit or by bonding proceedings, and in any such event Landlord will be entitled, if Landlord so elects, to defend the prosecution of an action for the foreclosure of such lien by the lienor and to pay the amount of any judgment in favor of the lienor with interest, costs and allowances included in such judgment, and recover such sums plus interest from Tenant. 8.3 No Implied Consent. Nothing contained in this Lease may be deemed or construed in any way as constituting the consent or request of Landlord, express or implied by inference or otherwise, to any contractor, subcontractor, laborer or materialman for the performance of any labor or the furnishing of any materials for any specific improvement, alteration to or repair of the Premises or any part thereof, nor as giving Tenant any right, power or authority to contract for or permit the rendering of any services or the furnishing of any materials that would give rise to the filing of any lien against the Landlord's interest or any part thereof if not paid. State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 15 of 35 ARTICLE 9 Maintenance and Repairs 9.1 Maintenance by Tenant. Throughout the Term, Tenant, at its sole cost and expense, will take good care of the Premises and its Improvements and will keep the same in good order and condition and make all necessary repairs and environmental remediation as required by Section 16.4, , all to the effect that throughout the Term the Premises and its Improvements are maintained in good condition, less normal wear and tear, and suitable for their intended use. 9.2 Requirements of Governmental Authorities. At all times during the Term, Tenant, at Tenant's own cost and expense, must: a) Make all alterations, additions, or repairs to the Premises and/or the Improvements required by the terms of any applicable law, ordinance, statute, order, or regulation now or hereafter made or issued by any Governmental Authority; including, without limitation, Title III of the Americans with Disabilities Act of 1990, all regulations issued thereunder and the Accessibility Guidelines for Buildings and Facilities issued pursuant thereto, as the same are in effect on the Commencement Date and as may be hereafter modified, amended or supplemented. b) Observe and comply with all applicable laws, ordinances, statutes, orders, and regulations now or hereafter made or issued respecting the Premises and/or the Improvements by any Governmental Authority; c) Defend, indemnify and hold Landlord and the Premises free and harmless from any and all liability, costs, damages, fines, penalties, claims, and actions resulting from Tenant's failure to comply with or perform the requirements of this Section 9.2. 9.3 No Duties on Landlord. Landlord will not be required to furnish any services or facilities whatsoever or to make any repairs or alterations in or to the Premises or the Improvements. Tenant hereby assumes the full and sole responsibility for the condition, operation, repair, replacement, maintenance, development and management of the Premises and the Improvements throughout the entire Term. ARTICLE 10 Ownership of Improvements 10.1 Ownership of Improvements During Term. All Improvements at any time constructed on the Premises by Tenant must be owned by Tenant or Subtenants until expiration of the Term hereof or sooner termination of this Lease as herein provided. Tenant or Subtenants or any successors to their rights may not remove any Improvements from the Premises nor waste, destroy, or modify any Improvements except as permitted by this Lease. Tenant may place fixtures, partitions, personal property, and the like on the Premises and may make nonstructural improvements and alterations to the Premises at its own cost and expense without approval from Landlord. 10.2 Ownership at Termination. Upon expiration or termination of this Lease, Landlord will have the option of acquiring all Improvements added to the Premises by Tenant upon paying Tenant the current fair market value for such Improvements, which fair market value is to be State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 16 of 35 determined by a licensed appraiser selected by Tenant and approved by Landlord; or, with the consent of Landlord, which consent will not be unreasonably withheld, Tenant may sell such Improvements to future leaseholders, remove any Improvements that Landlord declines to buy, or leave such Improvements. When any Improvements are removed, Tenant must restore the Premises to as good a condition as the same were when first occupied by Tenant less normal wear and tear. Any Improvements not removed by Tenant upon the termination of this Lease will become and remain the property of Landlord. The cost for an appraisal will be shared equally by the rt r c ARTICLE 11 Insurance 11.1 Commercial General Liability Insurance. 11.1.1 Concurrent with the execution of this Lease, Tenant, at Tenant's sole expense, must procure and must thereafter maintain in full force and effect throughout the entire Term, Commercial General Liability insurance against claims for injury or death to persons or damage to property occurring on or about the Premises with minimum limits of liability of $1,000,000 combined single limit for each occurrence. Such insurance must include, but not be limited to, Bodily Injury Liability, Personal Injury Liability, Property Damage Liability, Broad Form Property Damage Liability, Fire Legal Liability, Contractual Liability, Products/Completed Operations Liability, and Liability for Property of Others in the care, custody, and control of Tenant. 11.1.2 The liability insurance must cover all operations and activities of Tenant including, but not limited to, Tenant's own direct activities on and off the Premises, all construction, repair and improvement activities on and off the Premises and all explosion, collapse, and underground exposures associated with these activities. 11.2 Property Insurance. 11.2.1 Concurrent with the execution of this Lease, Tenant, at Tenant's sole cost and expense, must procure and must thereafter maintain in full force and effect throughout the entire Term, property insurance for the Improvements insuring all such Improvements against the risks of direct physical loss. Coverage must be written on an agreed amount basis equai to one hundred percent (100%) of the full replacement costs and without a coinsurance clause. 11.2.2 The property insurance required under this Section must include coverage for all demolition, contingent liability, and increased costs of construction as a result of the enforcement of any law, regulation, or ordinance that is in force at the time of the insured loss that requires the demolition of parts of the undamaged real property, or regulates the construction or repair of damaged real property. 11.2.3 The property insurance required under this Section must provide a waiver of subrogation in favor of Landlord. State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 17 of 35 11.2.4 "Full replacement costs" means the actual replacement cost of the Improvements. Full replacement costs must be determined from time to time at the request of Landlord by an appraiser, engineer, design professional or contractor designated by Landlord and approved in writing by Landlord and paid for by Landlord or Tenant (at the discretion of Landlord), but Landlord's failure to request a determination or redetermination of full replacement cost will not relieve Landlord or Tenant of its obligation to maintain the insurance required by the terms hereof. 11.2.5 The property insurance required under this Section must insure all of the Improvements constructed on or placed on the Premises, as well as any and all additions thereto, against loss or destruction by windstorm, cyclone, tornado, hail, explosion, riot, riot attending a strike, civil commotion, malicious mischief, vandalism, aircraft, fire, smoke damage, boiler and machinery damage and sprinkler leakage. Further, during construction, or demolition, or reconstruction, the property insurance must include "all risks" builders' risk insurance, with course of construction, vandalism, and malicious mischief clauses attached insuring the Improvements and all materials and equipment delivered to the site of the Improvements for their full insurable value, except in the event Tenant demonstrates to Landlord's reasonable satisfaction that the contractor for such work carries such "all risks" builder's risk insurance. 11.3 Additional Requirements. All insurance policies required under this Lease must include these additional provisions, conditions, and requirements: a) The Landlord must be named as additional insured on all policies. b) Tenant must provide Landlord written notice of any cancellation or material modification to the policies purchased by Tenant at least thirty (30) days prior to the effective date of such cancellation or change. c) Tenant must provide properly executed Certificates of Insurance to the Landlord at least ten (10) days prior to occupancy of the Premises and prior to commencement of any Construction Work, and thereafter, at least thirty (30) days prior to the effective date of any renewal or replacement policy. d) At its sole discretion, Landlord may require that true and certified copies of one or more insurance policies be provided to Landlord for its review and retention in its files. e) All policies of insurance must be issued by companies licensed or authorized to provide insurance in the State of Oregon. All such policies must be written by insurance companies that meet or exceed an A rating of A.M. Best Company or for those qualified companies that are not rated by A.M. Best Company a rating equivalent or better than an A.M. Best A rating. f) If Tenant fails or refuses to procure, pay for or keep in force the policies of insurance set forth herein, or to deliver evidence of such insurance to Landlord, Landlord may, at its election, place in force and/or from time to time renew such insurance. All amounts expended for such insurance, together with interest thereon at an annual rate of ten percent (10%) per annum, will be additional rent due from Tenant to Landlord payable within fifteen (15) days after invoices are delivered to Tenant. g) Tenant may purchase an Umbrella Liability Policy to provide the limits of coverage specified for Sections 11.1 and 11.2 so long as such policy provides coverage at least as broad as specified for the individual policies, is equivalent or in excess of the limits State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 18 of 35 specified for each individual policy, and the policy applies directly above (without gap in limit of liability) the individual underlying policy. h) Unless otherwise specifically agreed in writing by the Landlord prior to the effective date of the policy(ies): i. All liability insurance policies must be written on an occurrence coverage basis; ii. All insurance policies must be non-assessable; iii. Al! property Insurance policies purchased by Tenanmust contain hP endorsed acknowledging that the insurer waives its rights of subrogation against Landlord; and iv. All insurance policies procured by Tenant must be primary and non contributing with any insurance that may be carried by Landlord. i) At the termination of this Lease for whatever reason, in the event Tenant is able to assign to Landlord its right, title, and interest in the insurance policies required to be maintained hereunder, and provided Landlord agrees to such assignment, Landlord will reimburse Tenant pro rata for all advanced premiums paid on such insurance. j) All property insurance must be specifically acknowledged and endorsed by the insurer whereby the insurer agrees to make any and all payments as applicable under such policies payable to Tenant and Landlord jointly. 11.4 Tenant's Duty to Repair and Restore. 11.4.1 Tenant must promptly give written notice to Landlord of any casualty that results in damage or destruction to the Improvements or the Premises. Tenant, at its sole cost and expense, using available insurance proceeds, settlement funds and other funds at Tenants disposal, must restore, repair, replace or rebuild the same as nearly as possible to its condition and character immediately prior to such damage or destruction, including temporary repairs and work necessary to protect the Premises and the Improvements from further injury, and/or with such changes or alterations as may be made at Tenant's election in conformity with and subject to the conditions of Article 7 of this Lease (all of the foregoing collectively being referred to as "Restoration"). 11.4.2 Restoration must be commenced promptly (giving due regard to the length of time required to adjust any Toss with insurer) and prosecuted with reasonable diligence, Unavoidable Delays excepted. If, as a result of Property Insurance provided pursuant to Section 11.2, Landlord receives any payment fur the casuaity that resulted in the cdantaye of destruction ("Insurance Proceeds"), Landlord will make such Insurance Proceeds available to Tenant for use in the Restoration. 11.4.3 The Insurance Proceeds that are payable to Tenant must be held in trust by Tenant to pay for the cost of Restoration. Upon completion of the Restoration, Tenant must promptly deliver to Landlord a statement setting forth a concise description of the Restoration performed and proof of payment therefore. Any excess Insurance Proceeds (except those received by Landlord as a result of Property Insurance provided pursuant to Section 11.2) may be retained by Tenant or paid to any Leasehold Mortgagee if permitted or required under any Leasehold Mortgage. State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 19 of 35 11.4.4 The Insurance Proceeds payable to the Insurance Trustee must be held in trust to be applied to the payment of the cost of the Restoration and must be paid out upon such terms and conditions (which terms and conditions must include, as a minimum, the requirements of subsections (a) and (d) below) as may be established by any Leasehold Mortgagee, or if no Leasehold Mortgage is then in effect, then from time to time as such Restoration progresses within twenty (20) days after written request of Tenant which must be accompanied by a certificate signed by Tenant or Tenant's duly authorized representative and the Design Professional in charge of the Restoration, dated not more than tl iet iy (30) calendar days prior to such request, setting forth the following: a) That the sum then requested either has been paid by Tenant, or is justly due to contractors, subcontractors, materialmen, engineers, design professionals or other persons who have rendered services or fumished materials for the Restoration, and giving a brief description of such services and materials and the several amounts paid or due to each person in respect thereof, and state that nor part of such expenditures has been or is being made the basis in any previous or then pending request for the withdrawal of Insurance Proceeds and that the sum then requested does not exceed the value of the services and materials described in the certificate; b) That except for the amount, if any, stated pursuant to the foregoing subsection (a) in such certificate to be due for services or materials to the particular supplier, there is no outstanding indebtedness of Tenant to the particular supplier known to persons signing such certificate which is then due for labor, wages, materials, supplies or services in connection with such Restoration, which, if unpaid, might become the basis of a vendor's mechanic's, laborer's or materialman's statutory or similar lien upon such restoration or upon the Premises; c) That the costs, as estimated by the persons signing such certificate, of the Restoration required to be done subsequent to the date of such certificate in order to complete the same, do not exceed the Insurance Proceeds, plus any amount deposited by Tenant to defray such cost and remaining in the hands of the Insurance Trustee after payment of the sum requested in such certificate. If there is a deficiency, Tenant must forthwith deposit with the Insurance Trustee the amount needed to be segregated from the Insurance Proceeds and expended only after the Insurance Proceeds have been exhausted; and d) That there has not been filed with respect to the Premises or any part thereof any vendor's, mechanic's, laborer's, materialman's or other claim of lien which has not been discharged of record, except such as will be discharged by payment of the amount then requested subject to Tenant's right to contest as provided in Section 8.2. 11.4.5 Upon compliance with the foregoing provisions of this Section 11 4, the Insurance Trustee must, out of the monies held by the Insurance Trustee, pay or cause to be paid to Tenant or the persons named in the certificate referenced above, the respective amounts stated therein to have been paid by Tenant or to be due to them, as the case may be. 11.4.6 Upon receipt by the Insurance Trustee of satisfactory evidence of the character required by this Section 11.4 that the Restoration has been completed in the manner required under the terms of this Lease and has been paid for in full and that there are no liens of the character referred to therein, any balance of the Insurance Proceeds at State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 20 of 35 the time held by the Insurance Trustee must be paid to Tenant or to any Leasehold Mortgagee. 11.5 Destruction Near End of Term. If any Improvements are substantially or totally destroyed by fire or other casualty of any kind or nature and the estimated cost of the restoration is seventy five percent (75%) or more of the value of the replacement cost of the Improvement(s) so damaged or destroyed, then notwithstanding any requirement to the contrary in this Article, Tenant not be required to restore the Improvement(s) if to do .JV would not be commercially viable, provided that, within one hundred twenty (120) calendar days after such destruction or damage, Tenant provides Landlord written notice of Tenant's intent not to restore, and provided further that, simultaneously with the giving of such notice, Tenant must first pay in full any Leasehold Mortgage that is secured by Tenant's interest in this Lease or the Improvement(s) and then restore the Premises on which the Improvement(s) were situated to as good a condition as the same were when first occupied by Tenant less normal wear and tear. If any Insurance Proceeds remain after (1) paying in full any Leasehold Mortgage that is secured by Tenant's interest in this Lease or the Improvements(s); (2) restoring the Premises on which the Improvement(s) were situated to as good as condition as the same were first occupied by Tenant less normal wear and tear; and (3) compensating Tenant for its investment in the Improvement(s) in an amount not to exceed the fair market value of the Improvement(s); all such remaining proceeds will be payable to Landlord and Tenant in proportion to their interests. ARTICLE 12 Mortgage, Assignments and Subleasing 12.1 Leasehold Mortgage. If Tenant is not then in default under this Lease, Tenant may, with the prior written consent of Landlord and subject to the terms and conditions as may reasonably be imposed, dispose of all or any portion of Tenant's interest under this Leas.e and the leasehold estate hereby created to any trustee by way of a deed of trust in favor of any Leasehold Mortgagee, for the purpose of creating an encumbrance on such interest. 12.2 Assignments. With Landlord's prior written consent, which consent will not be unreasonably withheld, Tenant may assign its interest in the Lease to a third party. Any assignment will be subject and subordinate to Landlord's rights under this Lease. Any assignment must be in writing, must be on a form provided by Landlord, and must include a non-refundable assignment processing fee payable to Landlord of $250.00. Upon Landlord's acceptable of the proposed assignee and the assumption by the assignee of all obligations of Tenant under the Lease, Landlord will release Tenant from any further obligation or liability under this Lease. 12.3 Subleases. 12.3.1 With Landlord's prior written consent, which consent will not be unreasonably withheld, Tenant may Sublease all or any portion of the Premises for use in accordance with the Approved Uses and may extend or renew any Sublease with Landlord's prior written consent. No Sublease will release Tenant from any obligation or liability under this Lease. All such Subleases will be subject and subordinate to Landlord's rights under this Lease, and must be for Approved Uses under this Lease. All Subleases must be for a term or terms that will expire before the expiration of the Term. State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 21 of 35 12.3.2 All Subleases must be in writing, must be on an Approved Sublease Form and must contain such provisions as the Landlord may in its sole discretion require, including but not limited to: a) a clause stating the uses permitted to be made of the Premises covered by the Sublease; b) clauses setting out commercially reasonable terms as of the date of execution; c) a provision for payment of rent that is equal to or greater than the reasonable commercial rental value of the subleased premises over the term of the Sublease and given the terms of the Sublease; d) a clause prohibiting assignment or transfer of all or any portion of the Sublease without the prior written consent of the Tenant; and e) clauses requiring such insurance or bonding as the Landlord, in its sole discretion, determines to be advisable. $ 12.3.3 Tenant must deliver to Landlord true copies of each Sublease not later than ten (10) days after the same has been executed and delivered by the parties. 12.3.4 Tenant must first obtain the express written consent of Landlord, which consent will not be unreasonably withheld, according to the procedure set forth in this section, before: a) selling, assigning, or in any other manner transferring this Lease or any interest in this Lease; b) assigning or Subleasing all or any portion of Premises; or c) consenting to the assignment or transfer of all or any portion of a Sublease or interest in a Sublease by a Subtenant. Without the prior written consent of Landlord, Tenant may not sell, assign, sublet, or in any manner transfer any of Tenant's interest in this Lease, in any Sublease or in the Premises. 12.3.5 Twenty (20) calendar days before the proposed commencement date of a proposed Sublease, Tenant must submit to Landlord an accurate and complete copy of the proposed Sublease and any information that the Tenant possesses, or the Landlord requests, regarding the proposed Sublessee. Following Landlord's receipt of the proposed Sublease and all relevant information regarding the proposed Simlessee, Landlord will have twenty (20) calendar days in which to: a) review the proposed Sublease and all relevant information; and b) request clarifications of and modifications to the terms and conditions of the proposed Sublease and such further or additional information as Landlord deems necessary. If Landlord requests supplementary information concerning the proposed sublease or the proposed sublessee, Landlord will have an additional ten (10) calendar days, following receipt of this information, in which to review Tenant's proposal. 12.3.6 In reviewing and approving or disapproving a proposed Sublease and the suitability of a proposed Sublessee, Landlord may consider any factor that Landlord, believes to be reasonably relevant to its decision, including but not limited to such factors as environmental, economic, cultural, and political concerns, anticipated financial benefit to the State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 22 of 35 Common School Fund, and whether the proposed sublease offers the best means of obtaining from the Premises the greatest benefit for the people of Oregon. 12.3.7 Without in any way limiting the generality of the foregoing factors that Landlord may consider, Landlord may in particular inquire into each prospective Subtenant's: a) the exact business form of each such Subtenant entity and the identity of all cls, and officers in each entity, with identification of the person nr nercnnc having signature authority for each entity; b) each Subtenant entity's experience in carrying out similar commercial activities; c) the capitalization of each proposed Subtenant and certified copies of all pertinent financial information for the last three (3) years, (for example, balance sheets, income statements, tax returns, etc.);d) the bonding capacity, if any, of each proposed Subtenant; e) references for each proposed Subtenant and each proposed Subtenant's principals, i.e., parties with whom the proposed Subtenant has been transacting business over the last three (3) to five (5) years and the opinion of such business associates/acquaintances regarding the proposed Subtenant and its principals; f) a Dun and Bradstreet or other credit company report on each proposed Subtenant; g) personal financial information on each proposed Subtenant's principals, including copies of tax returns for the last three (3) years and information regarding whether such principals have filed for bankruptcy protection at any time during the past seven (7) years; and h) criminal records check for each proposed Subtenant and its principals, particularly for any environmental crimes and anything else which would tend to cast an unfavorable light on the integrity or business ethics of the principals of each proposed Subtenant. 12.3.8 Following its review of the proposed sublease and the proposed Subtenant, Landlord will, within the time periods set forth above, approve or disapprove Tenant's proposal. If Landlord approves a proposed Sublease, Landlord will provide Tenant with a written consent. Unless and until Tenant obtains such written consent from Landlord, any proposed Sublease will not be effective and any Sublease entered into by Tenant without first obtaining Landlord's express prior written consent will be null, void, and of no effect. Notwithstanding Landlords approval of Tenant's proposed Sublease, Tenant will remain ultimately responsible for performance of all of Tenant's obligations and duties under this Lease. State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 23 of 35 ARTICLE 13 Tenant's Default 13.1 Events of Default/Cure and Termination. The occurrence of any of the following events will be an "Event of Default": a) If Tenant fails to pay any installment of Annual Rent or additional rent when and as the same become due and payable and, as to any other sums required to be paid by Tenant under this Lease, when and as the same becunie due arid payable, and such failure continues for a period of ten (10) calendar days after written notice given by Landlord to Tenant; b) If Tenant fails to perform or comply with any of the covenants, agreements, terms or conditions contained in this Lease and such failure continues for a period of thirty (30) calendar days, after written notice given by Landlord to Tenant; c) The subjection of any right or interest of Tenant under this Lease to attachment, execution, or other levy, or to seizure under legal process; d) The appointment of a receiver to take possession of the Premises and/or Improvements or of Tenant's interest in the leasehold estate or of Tenant's operations for any reason, including but not limited to, assignment for the benefit of creditors or voluntary bankruptcy proceedings, but not including receivership: i. pursuant to administration of the estate of any deceased or incompetent Tenant or of any deceased or incompetent individual partner of any Tenant, or ii. pursuant to a Leasehold mortgage, or iii. instituted by Landlord, the event of default being not the appointment of a receiver at Landlord's instance but the event justifying the receivership, if any; e) An assignment by Tenant for the benefit of creditors or the filing of a voluntary petition by or against Tenant under any law for the purpose of adjudicating Tenant as bankrupt; or for extending time for payment, adjustment or satisfaction of Tenant's liabilities to creditors generally; or for reorganization, dissolution, or arrangement on account of or to prevent bankruptcy or insolvency; f) Tenant's failure to comply with Hazardous Materials Laws or with any requirement in Article 16; g) Tenant's failure to procure, maintain or qualify for such insurance as Landlord may from time to time require in accordance with the provisions of Article 11. 13.2 Notice to Certain Persons. Before pursuing any remedy, Landlord will give notice of any Event of Default to Tenant and to all Subtenants who have requested the same from Landlord, and Leasehold Mortgagees, if any, whose names and mailing addresses were previously given to Landlord. 13.3 Landlord's Remedies. If any Event of Default by Tenant continues uncured, following notice of default as required by this Lease (if any is required), for the period applicable to the default under the applicable provision of this Lease, Landlord has the following remedies in addition to all other rights and remedies provided by law or equity, to which Landlord may resort cumulatively or in the alternative: a) Termination. Landlord may at its election terminate this Lease by giving Tenant notice of termination. State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 24 of 35 b) Right of Reentry and Ejection. Landlord may reenter, take possession of the Premises and Improvements and eject all parties in possession or eject some and not others or eject none and may remove any persons or property by legal action or by self-help with the use of reasonable force and without liability for damages and without having accepted a surrender. c) Reletting. Following reentry or abandonment, Landlord may relet the Premises and in that connection may make any suitable alterations or refurbish the Premises, or both, nr rhanno the rhararter nr dice nr pi irpcco of tha Premicoc hi it I ar 1tnrd infill not hU rani iir,-,d to relet for any use or purpose other than that specified in the Lease or which Landlord may reasonably consider injurious to the Premises, or to any tenant that Landlord may reasonably consider objectionable. Landlord may relet all or part of the Premises, alone or in conjunction with other properties, for a term longer or shorter than the Term, upon any reasonable terms and conditions, including the granting of some rent-free occupancy or other rent concessions. Landlord will be entitled to all rents from the use, operation, or occupancy of the Premises or Improvements or both. d) Damages. Whether or not Landlord cancels, takes possession of or relets the Premises, Landlord has the right to recover its damages, including without limitation, (i) all lost rentals; (ii) all costs incurred by Landlord in restoring the Premises or otherwise preparing the Premises for reletting; (iii) and all costs incurred by Landlord in reletting the Premises; provided that, the amount Landlord may recover that represents damages for lost rental will be limited to: (i) all rent that was due to the date of termination, plus (ii) all amounts of rent that would have fallen due as rent for the six month period following the date of termination, less (iii) the amounts recovered by Landlord from relettings or attornments, if any, plus (iv) interest on the balance at the Late Payment Rate. 13.4 Right To Sue More Than Once. Landlord may sue periodically to recover damages during the period corresponding to the remainder of the Lease Term, and no action for damages will bar a later action for damages subsequently accruing. 13.5 Landlord's Right to Cure Defaults. If Tenant fails to perform any obligation under this Lease, after the cure period, if any, Landlord will have the option to so perform after giving written notice to Tenant. All of Landlord's expenditures to correct the default must be reimbursed by Tenant on demand with interest at the Prime Rate from the date of expenditure by Landlord. Such action by Landlord will not waive any other remedies available to Landlord because of the default. 13.6 Remedies Cumulative. The remedies given to Landlord herein are not be exclusive but are cumulative with and in addition to all remedies now or hereafter allowed by law and elsewhere provided in this Lease. 13.7 Default by Landlord. If Landlord materially breaches its covenant of quiet enjoyment or any other covenant given in the Lease, Tenant may treat such breach as an Event of Default entitling Tenant to terminate the Lease by giving Landlord notice of termination. 13.8 Waiver of Breach. No waiver by a party of any default by the other will constitute a waiver of any other breach or default by the other, whether of the same or any other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a party will give the other any contractual right by custom, estoppel, or otherwise. The subsequent acceptance of State of Oregon to Thornburgh Resort Co LLC 33991 -SI J Page 25 of 35 rent pursuant to this Lease will not constitute a waiver of any preceding default by Tenant other than default in the payment of the particular rental payment so accepted, regardless of Landlord's knowledge of the preceding breach at the time of accepting the rent, nor will acceptance of rent or any other payment after termination constitute a reinstatement, extension, or renewal of this Lease or revocation of any notice or other act by Landlord. ARTICLE 14 Unavoidable Delay Should the performance of any act required by the Lease to be performed by either Landlord or Tenant be prevented or delayed by reason of an Unavoidable Delay or by reason of any act or omission of the other party in violation of the terms of this Lease, the time for performance of the act will be extended for a period equivalent to the period of delay and performance of the act during the period of delay will be excused. The party affected or potentially affected must, however, use reasonable diligence to avoid any such delay and resume such performance as promptly as possible after the delay. Nothing contained in this section will excuse the prompt payment of rent by Tenant as required by this Lease or the performance of any act rendered difficult or impossible solely because of the financial condition of the party required to perform the act. ARTICLE 15 Alternative Dispute Resolution Procedures Landlord and Tenant agree that when disputes under this Lease arise, the parties must first attempt to resolve such disputes through negotiations between the authorized representatives of Tenant and Landlord before resorting to litigation. ARTICLE 16 Hazardous Materials 16.1 Use of Hazardous Materials. Tenant will be responsible for any and all Hazardous Materials and for any other material that Tenant brings onto the Premises the use, generation, manufacture, storageof which may violate Oregon Department of Environmental Quality (DEQ) or federal Environmental Protection Agency (EPA) standards or create a safety or environmental hazard or result in a DEQ or EPA violation. Tenant must use the Premises in compliance with any and all laws regulating the use, generation, manufacture, storage and disposal of Hazardous Materials. Tenant must not cause or permit the use, generation, manufacture, storage or disposal on, under or about the Premises, or the transportation to or from the Premises, of any Hazardous Materials in violation of any law or regulation relating to such Hazardous Material. Notwithstanding anything to the contrary in this Article 16 or elsewhere in this Lease, Tenant will have no responsibility or liability whatsoever with respect to any Hazardous Material present on the Premises prior to the Commencement Date or brought onto the Premises by any Person other than Tenant following the expiration or early termination of this Lease. State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 26 of 35 16.2 Tenant's Indemnity Obligations. 16.2.1 In addition to any other obligation to indemnify stated elsewhere in this Lease, Tenant must indemnify, defend and hold Landlord and Landlord's fee interest under this Lease free and harmless from and against any and all liability, damage, loss, costs, and expense that may be incurred by Landlord by reason of, resulting from, in connection with, or arising in any manner whatsoever out of: a) a breach of the obligations of Section 16.1; or b) the use, generation mon,ifnnl,,rn -forage or rdicnncal of 1-1?zorriniic Materials on, under, or about the Premises after the Commencement Date or during any previous lease of the Premises by Tenant; or c) surface migration of Hazardous Materials onto the Premises caused by or arising in connection with activities conducted on or associated with the Premises during the Term. 16.2.2 Tenant's indemnity obligations under this Section 16.2 include, but are not limited to: (i) all liabilities, losses, claims, demands, penalties, fines, settlements, damages, response, remediation, closure or inspection costs; (ii) any expenses (including reasonable attorney and consultant fees, investigation expenses, and laboratory and litigation costs) of whatever kind or nature that are incurred by Landlord; (iii) any personal injuries or property damages, real or personal; (iv) any violations of law, orders, regulations, requirements or demands of governmental authorities; and (v) any lawsuit brought or threatened, settlement reached, or government order arising out of or in any way related to the release of Hazardous Materials on the Premises after the Commencement Date or during any previous lease of the Premises by Tenant. PROVIDED, HOWEVER, that Tenant's indemnity obligations under this Section 16.2 will not include any liability, damage, loss, costs, and expense suffered by Landlord and resulting from: a) Hazardous Materials present in or on or under the Premises as of the Commencement Date unless caused by Tenant or its employees, agents, invitees or Subtenants or b) Hazardous Materials present in or on or under the Premises as of the Commencement Date that migrate, percolate, flow, diffuse, or in any way move within, from or off the Premises after the Commencement Date, unless caused by Tenant, its employees, agents, invites or Subtenant. 10.2.3 The indemnities of Tenant provided ill ii iii Saciiul l wiii survive the expiration or earlier termination of this Lease and the assignment by Tenant of the leasehold estate created hereby. 16.3 Notice. Landlord agrees to give prompt written notice to Tenant with respect to any suit or claim initiated or threatened to be initiated against Landlord which Landlord has reason to believe is likely to give rise to a claim for indemnity hereunder, and Tenant must promptly proceed to provide an appropriate defense, compromise, or settlement of such suit or claim at its sole expense; provided, however, that Landlord will have the right promptly to furnish counsel at Tenant's sole expense to carry out such defense, compromise, or settlement, which expenses, as well as payments in satisfaction, settlement or compromise of such suit or claim, will be immediately due and payable to Landlord upon receipt by Tenant of an invoice therefor. State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 27 of 35 16.4 Remediation by Tenant. If Tenant, its agents, contractors, guests, invites or Subtenants cause or permit Hazardous Materials to be used, generated, manufactured, stored, disposed of or released on the Premises during the Term, any extended term, or during any prior occupancy or lease of the Premises by Tenant in violation of any Hazardous Material laws, or (subject to Section 16.5) if Hazardous Materials enter upon the Premises from or through surface migration, Tenant must promptly take all actions at its sole expense to comply with all laws and regulations governing such use, generation, manufacture, storage, disposal or release of such Hazardous Materials and/or to remediate the condition created by such HaLdfdous Mdteiidib, provided that except in an emergency Landlord's approval of such actions must first be obtained, which approval may not be unreasonably withheld. 16.5 Disclosure. Within five (5) business days after the receipt of written notice thereof, Tenant must advise Landlord and Landlord will advise Tenant, as the case may be, in writing of: a) any and all notices of enforcement or other governmental or regulatory actions pursuant to which cleanup or remediation of Hazardous Materials on the Premises will be required; and b) all written claims made by any third party against Tenant or Landlord, as the case may be, or the Premises relating to damage, contribution, cost recovery, compensation, loss or injury resulting from Hazardous Materials on the Premises. Tenant must disclose to Landlord the names of each Subtenant whose business use under its Sublease includes the storage, use, manufacture, generation, or disposal of Hazardous Materials on the Premises in amounts for which a permit is required to be obtained pursuant to applicable Hazardous Materials laws or for which reports must be filed with governmental agencies pursuant to any applicable laws. 16.6 Inspection. 16.6.1 Landlord and its agents have the right, but not the duty, at Landlord's sole cost and expense to conduct reasonable inspections of the Premises, to determine whether Tenant (or its Subtenants) are complying with this Article 16. Such inspections will be performed during business hours, upon reasonable prior notice to Tenant, and will be accomplished in a manner reasonably calculated not to disturb existing business operations of Tenant or any Subtenant. Landlord will use its best efforts to minimize interference with the business of Tenant and Subtenants being conducted on the Premises but will not be liable for any reasonable interference caused thereby. 16.6.2 If, as a result of any such inspection, Landlord determines, in its reasonable judgment, that Tenant or its Subtenants are or may be not in compliance with this Article 16, Landlord will promptly notify Tenant in writing of the event or situation which gives rise to Tenant's or a Subtenant's violation or possible violation of such Article. Unless Tenant's or a Subtenant's violation or possible violation of this Article 16 creates an emergency situation (in which event Tenant must immediately take such action as may be required by the nature of such situation to remedy the same and if Tenant fails to do so Landlord will have the right to enter upon the Premises and to take such action as Landlord deems appropriate in its reasonable judgment to remedy or correct such emergency situation), Tenant must within sixty (60) calendar days after the receipt of notice of such violation or possible violation from Landlord (provided that Tenant will, in any event proceed diligently), submit to Landlord a State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 28 of 35 written plan setting forth a general description of the action that Tenant proposes to take with respect thereto (the "Remediation Plan"). 16.6.3 The Remediation Plan will be subject to Landlord's written approval, which approval will not be unreasonably withheld or delayed. Landlord will notify Tenant in writing of its approval or disapproval of the Remediation Plan within forty-five (45) calendar days after receipt thereof by Landlord. If Landlord disapproves the Remediation Plan, Landlord's notice to Tenant_ of such disapp rout! wH! incHde a detailed explanation of the reasons therefor. Within thirty (30) calendar days after receipt of such notice of disapproval, Tenant must submit to Landlord a revised Remediation Plan that remedies the defects reasonably identified by Landlord as reasons for Landlord's disapproval of the initial Remediation Plan. If Tenant fails to submit a revised Remediation Plan to Landlord within the thirty (30) day period, such failure will, at Landlord's option and upon notice to Tenant, constitute an "Event of Default" under the Lease. 16.6.4 Once the Remediation Plan is approved in writing or deemed approved by Landlord, Tenant must promptly commence all action necessary to comply with all requirements and conditions imposed by all environmental boards or agencies having and exercising jurisdiction, and must diligently and continuously pursue such action to completion in accordance with the terms thereof; provided that Tenant may commence such actions sooner or on such other timetable if required to do so by any such board or agency. 16.6.5 If Landlord's inspections of the Premises reflect a violation or possible violation by Tenant or a Subtenant of the provisions of this Article 16 which may have caused the Premises or any part thereof to have become contaminated by Hazardous Materials, Landlord will have the right to require Tenant to initiate testing of the Premises to determine whether, or the extent to which, such violation has in fact caused the contamination of the Premises by Hazardous Materials. Tenant must immediately deliver a copy of all test results to Landlord. If such Hazardous Materials are those for which Tenant is responsible, and Landlord is not responsible, Landlord and Tenant must thereafter comply with the terms and provisions of this section with respect to formulating a Remediation Plan to remediate any such contamination. If such Hazardous Materials are those for which Landlord is responsible, Landlord will promptly remediate such Hazardous Materials. 16.7 Governing Provisions ru_ r:•MQttC_J. Notwithstanding GiWlthStarIng arty other provision of this Lease, this Article 16 and Section 2.4 supersede and take precedence over all other provisions of this Lease regarding environmental matters including, but not limited to, the scope of indemnification of Landlord by Tenant and the survival of the indemnification provisions contained in this Lease. Nothing in this Article 16 is intended nor will it limit Landlord's rights in the event of default, as set out in Article 13 of this Lease. State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 29 of 35 ARTICLE 17 Condemnation 17.1 Total Taking. In the event of the taking or condemnation by any competent authority for any public use or purpose of the whole of the Premises at any time during the Term the Term will end as of the date of possession by the condemner, and all rent and other payments will be apportioned as of the date of possession. Landlord and Tenant must share any award (including interest from the date of taking to the dale of payment) according to their respective interests in the Premises except that the award for attorneys' fees and other costs must be shared by the parties in proportion to the attorneys' fees of both outside and inside counsel paid by each party on account of the condemnation proceedings. The values of the Landlord's and Tenant's respective interests in the Premises must be established by the same court of law or other trier of fact that establishes the amount of the condemnation award, but if there is no court of law available or willing to determine Landlord's and Tenant's respective interests, those interests must be determined by agreement of Landlord and Tenant. 17.2 Substantial Taking. As used in this Section, a Substantial Taking means a taking of materially all of the Premises where the remaining part of the Premises not so taken cannot be adequately restored, repaired or reconstructed so as to constitute a complete functional unit of property capable of any substantial income-producing function. In the event of a Substantial Taking, then the condemnation will be treated as a Total Taking under Section 17.1, and the award will be distributed in accordance with Section 17.1. 17.3 Partial Taking. In the event of a taking of less than materially all of the Premises (a "Partial Taking"): a) Abatement of Rent. The Term (except as hereinafter provided) will nevertheless continue, but Annual Rent will thereafter be reduced by the same proportion that the fair market rental value of the Property was reduced due to the Partial Taking. If the parties cannot agree upon a just proportion of Annual Rent to be abated, the amount may be determined pursuant to Article 15. There will be no abatement of Annual Rent if: i. no portion of the Property is taken in any such taking or condemnation, or ii. a portion of the Property is taken but the income -generating capacity of the Improvements is not affected. b) Award. The award from a Partial Taking will be distributed first to Tenant for the restoration and repair of the Improvements as provided in Section 17.3(b), then to Landlord in an amount equal to the fair market value of the Property taken (subject to the Lease) and any remainder to Landlord and Tenant proportionally until each has received an amount equal to its proportional interest in the Premises as provided in Section 17.1(b). c) Restoration. If the Lease is not terminated, then, as to the Premises not taken in the condemnation proceeding, Tenant must proceed diligently to make an adequate restoration, repair or reconstruction of the part of the Premises not taken. Tenant must restore, repair or reconstruct the Premises, to the extent practicable, to a functional unit of substantially the same usefulness, design, construction, quality, and to a condition having the same income -generating capability of the Premises prior to the taking. In connection with such restoration, repair, and reconstruction, Tenant must comply with the provisions of Article 11 regarding Restoration as if occurring after an event of damage or destruction. State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 30 of 35 17.4 Degree of Taking. If the parties cannot agree on whether the taking is a Partial Taking or a Substantial Taking, the degree of the taking may be determined pursuant to Article 15. 17.5 Successive Takings. In the case of any additional Partial Taking or takings from time to time, the provisions of Section 17.3 will apply to each Partial Taking. 17.6 Temporary Taking. If the whole or any part of the Premises or of Tenant's interest under th!s Le"," se be taken or condemned by ani/ competent authority for Its temporary Ilse or occupancy ("Temporary Taking"), Tenant must continue to pay the full amounts of Annual Rent, and all Impositions and other sums payable by Tenant hereunder. Tenant must maintain sufficient business interruption insurance to cover Annual Rent, Impositions and other sums payable by Tenant hereunder during the period of Temporary Taking. This Lease will continue and, except only to the extent that Tenant may be prevented from so doing pursuant to the terms of the order of the condemning authority, Tenant must perform and observe all of the other terms, covenants, conditions and obligations hereof upon the part of Tenant to be performed and observed, as though the taking or condemnation had not occurred. In the event of any Temporary Taking or condemnation, Tenant will be entitled to receive the entire amount of any award made for the taking, whether paid by way of damages, or otherwise, unless the period of temporary use or occupancy extends to or beyond the expiration date of the Term or the Extended Term, if applicable, of this Lease, in which case the award will be apportioned between Landlord and the Tenant as of the date of expiration of the Term or the Extended Term, if applicable. 17.7 Insurance Trustee. To the extent Tenant is obligated to repair or restore under this Section, any portion of condemnation proceeds awarded to Tenant must be deposited with the Insurance Trustee who must act in accordance with the terms of Article 11. ARTICLE 18 Notices 18.1 Notice to be in Writing. Any notice, communication, request, reply or advice, or duplicate thereof (herein severally and collectively, for convenience called "notice") provided or permitted to be given under this Lease to any person, entity, or party, or made or accepted by either party to any other party must be in writing and must, unless otherwise in this instrument or by law expressly provided. be Given or be served by: a) depositing the same in the United States mail, postage prepaid, registered or certified mail, with return receipt requested, or b) personal delivery service with charges therefor billed to shipper, or c) expedited delivery service with charges therefor billed to shipper, or d) prepaid telegram, telex or facsimile, all such notices, however given, to be addressed to the party for whom the notice is intended at the address set forth below or at such other address as any party may have designated to any other party in the manner above provided. 18.2 When Notice Deemed Received. Any notice or communication sent as herein provided will be deemed received: State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 31 of 35 a) upon receipt if sent by telegram, telex or facsimile or if personally delivered (provided that such delivery is confirmed by the receiving telex or facsimile operator, including electronic confirmation of receipt, or by the courier delivery service, as the case may be), b) three (3) business days after the date of deposit in a post office or other official depository under the care and custody of the United States Postal Service, if sent by United States mail; c) on the date of delivery by any expedited riPi verb/ CPrvrP nr d) on the date any party declines to accept any notice given as herein provided. 18.3 Address for Notices. No person or entity who is entitled to notice or is required to be given notice hereunder may have an address, for the purposes of such notice, which is outside the continental United States; and any such person or entity must designate an agent for the purpose of receiving notices hereunder whose address is within the continental United States. Any party may change its address for the purposes of receiving notices hereunder by giving notice of such change of address to the other party in the manner required for giving notices pursuant to this Article 18. If to Tenant: Thornburgh Resort Company, LLC c/o Kameron DeLashmutt PO Box 264 Bend, OR 97701 Telephone: (541) 350-8479 Fax: (541) 548-0682 If to Landlord: Department of State Lands 20300 Empire Avenue, Suite #1 Bend OR 97701 Telephone: (514) 388-6112 Fax: (541) 388-6480 ARTICLE 19 Surrender of Premises; Holding Over 19.1 Good Condition. The Lease will terminate without further notice at expiration of the Term. On expiration or earlier termination of the Lease, Tenant must surrender the Premises and, subject to Article 10, the Improvements, and all facilities in any way appurtenant to the Premises (other than any Subtenant's trade fixtures or equipment which may be removed in accordance with such Subtenant's Sublease), to Landlord in good order, condition and repair, and in as safe and clean condition as practicable, reasonable wear and tear and acts of God excepted, and free and clear of all liens and encumbrances, and Hazardous Materials other than those which have been created by Landlord. Any holding -over by Tenant after expiration of the Lease will not constitute a renewal or extension or give Tenant any rights in or to the Premises except as otherwise expressly provided in the Lease. State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 32 of 35 19.2 Remaining Personal Property on the Premises. Any personal property of Tenant or any Subtenant remaining on the Premises after the termination of this Lease and the removal of Tenant and such Subtenant from the Premises, may, at the option of Landlord, be deemed to have been abandoned by Tenant or such Subtenant and may either be retained by Landlord as its property or be disposed of, without accountability, in such manner as Landlord may see fit. However, Landlord will also have the right to require Tenant or any Subtenant to remove any such personal property at Tenant's own cost and expense, provided that Landlord first gives Tenant written notice requesting the removal of the personal property of Tenant or such Subtenant from the Premises. 19.3 Survival. The provisions of this Article 19 will survive the expiration or any termination of this Lease. Exhibit A: Exhibit B: Exhibit C: ARTICLE 20 List of Exhibits Physical survey and legal description of the Premises; Map Showing Location of Road; Recordable Memorandum of this Lease. ARTICLE 21 Miscellaneous 21.1 Governing Law. This Lease, and all matters relating to this Lease, is to be governed by the laws of the State of Oregon in force at the time any need for interpretation of or decision regarding this Lease arises. 21.2 Binding on Successors. This Lease will be binding on and will inure to the benefit of the parties and to the successors and permitted assigns of the parties hereto, but nothing in this section may be construed as a consent by Landlord to any disposition or transfer of the Lease or any interest herein by Tenant except as otherwise expressly provided in this Lease. 21.3 Partial Invalidity. Should any provision of this Lease be held by a court of competent jurisdiction to be either invalid, void, or unenforceable, the remaining provisions of this Lease will remain in full force and effect unimpaired by the holding. 21.4 Time of Essence. Time is expressly declared to be the essence of Tenant's performance of each and every duty and obligation under this Lease. 21.5 Recordation of Lease. The parties will record a memorandum of this Lease in the form of Exhibit B. attached hereto. 21.6 Nonmerger of Fee and Leasehold Estates. If both Landlord's and Tenant's estates in the Premises or the Improvements or both become vested in the same owner, this Lease State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 33 of 35 will nevertheless not be destroyed by application of the doctrine of merger except at the express election of the holder of both estates and the consent of each Leasehold Mortgagee of record. 21.7 Agreement to Act Reasonably. Except where specifically provided to the contrary in this Lease, in each instance in this Lease where the approval or consent of a party is required, both Landlord and Tenant intend and agree to act reasonably. As used in the foregoing sentence, the term "reasonable" may not be interpreted as justifying arbitrary action but means an even- handed application of judgment c dancc 311 applicable requirements of federal and state appuuaiion in u%%�ruui �.,., withapplicable y,. law, traditional business policies and practices, industry standards and commercial usage and custom concerning major real estate transactions involving properties similar to the Premises. Except where specifically provided to the contrary, any approval or consent must not be unreasonably delayed. 21.8 Joint and Several Obligations. If Tenant consists of more than one Person, the obligation of all such Persons is joint and several. 21.9 Rules of Construction. Any table of contents attached to this Lease and the captions of the various sections of this Lease are for convenience and ease of reference only and do not define, limit, augment, or describe the scope, content or intent of the Lease or of any part or parts of the Lease. This Lease will be liberally construed to effectuate the intention of the parties with respect to the transaction described herein. In determining the meaning of, or resolving any ambiguity with respect to, any word, phrase or provision of this Lease, neither this Lease nor any uncertainty or ambiguity herein will be construed or resolved strictly against either party under any rule of construction or otherwise, it being expressly understood and agreed that the parties have participated equally or have had equal opportunity to participate in the drafting hereof. The neuter gender includes the feminine and masculine, the masculine includes the feminine and neuter, and the feminine includes the masculine and neuter, and each includes corporation, partnership, or other legal entity when the context so requires. The singular number includes the plural whenever the context so requires. 21.10 Exhibits. All Exhibits to which reference is made in this Lease are incorporated in this Lease by the respective references to them, whether or not they are actually attached, provided they have been signed or initialed by the parties. References to "this Lease" includes matters incorporated by reference. 21.11 Nondiscrimination and Nonsegregation. Tenant covenants by and for itself, and for its administrators, and assigns, and all persons claiming under or through Tenant, and this Lease is made and accepted upon and subject to the condition that there must be no unlawful discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, gender, sexual preference, handicap, marital status, national origin, or ancestry, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the Premises herein leased or the Construction Work nor may the Tenant itself, or any person claiming under or through the Tenant, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of lessees, contractors, sublessees, or vendees in the Premises and Improvements herein leased. State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 34 of 35 21.12 Quiet Enjoyment. Landlord covenants that, upon paying the rent and all other charges herein provided for and observing and keeping all covenants and agreements in this Lease on its part to be kept, Tenant will have the right to occupy the Premises peaceably and quietly in accordance with the terms of this Lease. PROVIDED, HOWEVER, that this covenant of quiet enjoyment is expressly subject to the various encumbrances and reservations of right affecting the Premises and Tenant acknowledges and agrees that its peaceable and quiet possession of the Premises is subject to all encumbrances and reservations of right, whether of record or provided for in +k,,- I t -,-"-a II LI 21.13 INDEMNIFICATIONS. TENANT EXPRESSLY ACKNOWLEDGES AND AGREES TO THE TERMS OF THE INDEMNITY PROVISIONS CONTAINED IN SECTIONS 2.4, 6.7, 7.7, 9.2 AND 16.2 OF THIS LEASE. ALL OBLIGATIONS OF TENANT TO INDEMNIFY LANDLORD WILL SURVIVE TERMINATION OR EXPIRATION OF THE LEASE. 21.14 Execution in Counterparts. This Lease may be executed in two or more counterparts, each of which will be an original, but all of which will constitute one and the same instrument. For convenience of the parties the signature pages to any counterpart may be detached and reattached to a single counterpart. 21.15 Inspection. Landlord has the right personally and through Landlord's agents and employees to enter into and onto the Premises, with 24 hour prior notice, to inspect the Premises and examine the conditions thereof. 21.16 Modification. Any term or condition of this Lease may be modified upon mutual consent of both parties, but any such modification will be effective and binding only upon execution by both parties of a written amendment to the Lease. 21.17 Entire Agreement. THIS LEASE, TOGETHER WITH THE ATTACHED EXHIBITS, CONSTITUTES THE ENTIRE AGREEMENT BETWEEN THE PARTIES. NO WAIVER, CONSENT, MODIFICATION OR CHANGE OF TERMS OF THIS LEASE WILL BIND EITHER PARTY UNLESS IN WRITING AND SIGNED BY BOTH PARTIES. SUCH WAIVER, CONSENT, MODIFICATION OR CHANGE, IF MADE, WILL BE EFFECTIVE ONLY IN THE SPECIFIC INSTANCE AND FOR THE SPECIFIC PURPOSE GIVEN. THERE ARE NO UNDERSTANDINGS, AGREEMENTS OR REPRESENTATIONS, ORAL OR WRITTEN NOT SPECIFIED HEREIN REGARDING THIS LEASE. TENANT, BY 1 HE SIGNA I URE BELOVV OF ITS AU -1 HORILED REPRESENTATIVE HEREBY ACKNOWLEDGES THAT TENANT HAS READ THIS LEASE, UNDERSTANDS IT AND AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS. THIS LEASE SUPERSEDES ALL PRIOR OR EXISTING LEASE OR RENTAL AGREEMENTS BETWEEN THE PARTIES. 21.18 Subordination and Attornment. Landlord and Tenant will respond to each other's reasonable request for subordination or attornment agreement, provided such document must clearly state that any successor in interest to Landlord or Tenant under this Lease assume and will perform all the responsibilities and obligations of Landlord or Tenant under this Lease, as the case may be. Such document may not contain any provision requesting Landlord to save, hold harmless or indemnify Tenant, a lender or any other third party. State of Oregon to Thornburgh Resort Co LLC 33991 -SU Page 35 of 35 IN WITNESS WHEREOF, Landlord and Tenant have by their duly authorized representatives executed this Lease. Executed this 24-i day of 4 u , 2005. I AND RD O: LHINIULV RU. State of Oregon, by and through its Department of State Lands by: Ste t ' en J. Purc ; - se Assistant Director TENANT: Thornburgh -- -. Company, LLC an Ores . •iQMj-liability compan dela by: Authorized Signatu State of Oregon to Thornburgh Resort Co LLC 33991 -SU Signature Page 1 Peter Gutowsky From: Peter Gutowsky Sent: Thursday, July 01, 2010 3:50 PM To: 'Nunzie' Subject: Re: DR remapping public record Attachments: public_taxlots_drzoned.shx; public_taxlots_drzoned.dbf; public_taxlots_drzoned.prj; public_taxlots_drzoned.sbn; public_taxlots_drzoned.sbx; public_taxlots_drzoned.shp i` 1 1'1 i `y" 1 `y" i :'�`'.l public_taxlots_drzo public_taxlots_drzo public_taxlots_drzo public_taxlots_drzo public_taxlots_drzo public_taxlots_drzo ned.shx (8 ... ned.dbf (40... ned.prj (4 ... ned.sbn (8 ... ned.sbx (4 ... ned.shp (23... Nunzie, The GIS data you requested is attached. This data identifies 432 government-owned properties presently identified on Deschutes County's Destination Resort map. After applying the eligibility criteria below, only 7 of the 432 properties would remain eligible on the map. Pleae be aware that this is a multi -part shapefile snd must be summarized prior to being analyzed. The fields that reside within the table of this shapefile used to determine the eligibilty/ineligibility of city/state/county/federal owned taxlots to be zoned DR arE(: ].) FI (01) - If yes, property is ineligible for [Ph :one 2.) Resource Land Within 1 Mile of a 0GB (1MILEUGP.)- If yes, property is ineligible for DR zone Redmond Urban Reserve (URA) - If Ares of Critical State Concern (AC00) PiaLted Subdivisions (PLATTED) - gi0]r f f DR zone perty is ineligible for DR zon ineligible for DR zone 6.) 160 Acres or greater (160 AC) - If y()r, i,roPhi-/ISLE for DR zone 700 (UG;B) - Tf yes, property i; P t_ e r Peter Gutowsky, AICP (0 i nc i pe l Planner Deschutes County Community Development- r[epartmenr 117 NW Lafayette Bend, OR 97701 ph# (541)385-1709 fax# (541)385-1764 Web: www.co.deschutes.or.us/cdd Original Message From: Nunzie [rnaiito:nunzie@pacifier.com; Sent: Wednesday, June 30, 2010 4:52 PM To: Tammy Baney; Dennis Luke; Alan Unger Cc: Peter Gutowsky; Nick Lelack Subject: DR remapping public record 1 Greetings Commissioners: For the DR remapping record: I have been told this afternoon by staff (Gutowsky) that he does not have time to produce information to substantiate his verbal testimony today on the DR remapping hearing regarding 432 parcels of public land currently mapped and 7 parcels of public land currently mapped and eligible to remain mapped. Mr. Gutowsky stated that he did not submit any written information into the record other than his verbal testimony. Mr. Gutowsky stated that he is swamped with other planning department demands: Historic Landmarks Commission, Tumalo Community Plan notifications etc and together with his not working this Friday and the public Holiday of next Monday, that I could not obtain this information prior to next week. It appears that your GIS specialist Tim Berg had done some cursory data collection for Mr. Cutesk, to hd, n.t i par_ is and 7 i roe! woulu J Ike « copy tht cizlLd Se:_ that Labl i_sne s Lnea(, parameter,, in t amery way au that I can make written comment before your written deadline of 5pm Tuesday July 6, 2010. I would also like the data set of the assumptions made to gather the pertinent information. (what parameters were used etc) I would appreciate your assistance in this matter. I will gladly pick up whatever Mr. Berg provides at his CDD office or my email is always available tor an electronic file. 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N 6 6 m CP O m N (Ni N r 0 CO O U) CT CT CT U) O 0 r- W M M M N CO N O O V u) O CO W U] (O U) O V O N N (D (1) (11 r m 0 CO CO CD (D r V m (n U) M (T W r y(0 Q M V 0) O V In N O U) U) N r r (P r r r N O V r r- 01 N U) U) U) U) U7 V W N N W O O CO CO CD CD In W O CO O W o0 00 W W r CO O CO co W O r CD U] ul U) V (P r U) W CO m m (n In U) .-- .-- r r r 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O CT O O O O O O V O 0 0 0 O U) W W N O) U) O o O r CO 0 r 0 M V r r U) O W 0 0 0 NU) U) V CO CO CO CO In v r r r CO U) CO 0 0 r r M N U) U) r CD CO r 0) O N O ( r U) W Cn r C) O O O r U) CO N U) U) W 0 CO MCD r (P r (h M o o v v r r v co co co co N co CO coO CO U) U) ) O r N CA W O ct V CO r COLO U) M CO r r U 0 (0) O W c-0,00 r W W CD r N r r V (n O O N W r Cp N r W N U) r U) r N U) U) U) U) W M CD CO W W U) O In Cr r W U) CO W CO In CT) O CO r C'1,0 C) CO O OM r r O O N O CO r N COO r r r r 0 ,00 CO CO U] CO CO Cr CO V (P r N M O r N co r r r r U) CD o (11 N W O co r co co co N v r co co co co co r r co Cr CO CO N CD O r r (O d' co O U] U] 00 O O O N O m C D (P U) U) r coV N CO U) N r W W V r W W W r O W 0 CD CD r W U) V M Cn M r CD W COOD . _ . • CO CO CO O) ) r O N O) U) M r N U) O O (11 N M V U) U) U] LO r CD UJ r r W LC LO '.0 O (0 rCD ) O Q) CO ^ IO COM O) O) C)Q) O) O 0 O O CD CD M U) V U) U] r M N M V r 0) CD CD V CD CO CD r M r CO m CO (D O N U) (D V V CT C D C D C D (n m co r r CD CD CO m r C D CD V N O O .- CT O O O N M r CO 0) CP CD U) CO M W r r r 0 CD r N 0 O O O r O) VV M CD co r r V CY O V r N N N N r 0 0 0 N 0 0 In U) U) r U) U) Cr CO W a0 CT U) U) W W ✓ N M M N NCV N N N N N N N N N N r r r N N N M N N U) N N r .-- r 0304-(0 M CD CO O O O V (.0 U) U) CO CO O O N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O G O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 O O 0 0 0000 0 0 0 0 0 0 0 0 0 000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O 0 O O 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00000 0 0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 000 0 0 0 0 0 00 O 0 0 0 0 O O 000 0 0 0 0 0 0 0 0 0 0 0 0000 0 0 0 0 0 000 0 0 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O 0 O 0 O O O O O O O O O O O O 0 0 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O o July 1, 2010 Commissioner Tammy Baney Subject: Destination Resorts Dear Commissioner Baney: As discussed in a recent article in "Oregon Business", destination resorts are not only losers for fish and wildlife, but also for the potential investors looking for gold pots at the ends of rainbows. Proposals for additional ones will be challenged at length and citizen groups, Deschutes County government and numerous public agencies in the County and State will incur high costs. It's way past time to stop these foolish and futile wastes of public money and public resources. Deschutes County has been the epicenter of speculator interest in destination resort development. Such developments present serious threats from nitrates and other contaminants in wastewater, streamflow depletion, erosion and sedimentation of spawning -rearing habitat, and stormwater runoff. The issues include economic engines and supply/demand; the legal standing for saying "no more"; a recent LUBA decision regarding streamflow reduction and stream temperature increases related to groundwater use; and nonpoint sources of water pollution. Measure 49 allows regulations 'restricting or prohibiting activities for the protection of public health and safety.' The Oregon Legislature provided examples that would qualify. "A law, rule, ordinance, order, po/icy, permit or other governmental authorization that restricts a use of property in order to reduce the risk or consequence of fire, earthquake, landslide, flood, storm, pollution, disease, crime or other natural or human disaster or threat to persons or property including, but not limited to, building and fire codes, health and sanitation regulations, solid or hazardous waste regulations and pollution control regulations.' Pollution preventions such as water and air quality protections, erosion and sediment controls, floodplain and ridgeline protections, stormwater and wastewater regulations and steep slope regulations are legal. It is essential and legal to not provide for or approve the threats posed to public property and public resources by pollution from additional destination resorts outside cities or Urban Growth Areas (UGAs). There is an adequate supply of guest rooms in Deschutes County. The drivers of our economy are the destinations, which destination resorts outside cities or UGAs unavoidably threaten. The same real estate sales and homebuilder jobs will exist inside cities and UGAs, and mitigating the adverse effects will be the responsibility of public facility providers that are legally accountable for their facilities. If our economic engines need a restart we should protect and restore the reasons Deschutes County is a destination. Sincerely yours, Tom Davis, PE NFS River Steward 69217 Tapidero, Sisters, OR 97759 Peter Gutowsky From: Laurie Craghead Sent: Thursday, July 01, 2010 6:50 PM To: Peter Gutowsky; Alan Unger Cc: Dave Kanner; Tom Anderson; Nick Lelack Subject: RE: Re: Destination Resort Remapping / Modified Criterion Page 1 of 1 In reviewing this further, it seems to me that, because and we all know that the Cyruses really want all of the property in Aspen Lakes already designated as destination resort to remain on the map and, if the Board wants Aspen Lakes to be eligible to remain on the map, then, there is no reason to make the developer apply to remain on the map and the ordinance should just gay something like: "All property within a subdivision for which cluster development approval was obtained prior to 1990, for which the oric,;inal cluster development approval designated at least 50 percent of the development as open space and which was within the destination resort zone prior to the effective date of Ordinance 2010-001 shall remain on the eligibility map." This may be entered into the record so that others may respond during the open written record period. Laurie Craghead Assistant Legal -Counsel Deschutes County (541) 388-6623 THIS ELECTRONIC TRANSMISSION IS CONFIDENTIAL. IN PARTICULAR, IT MAY BE PROTECTED BY THE ATTORNEY-CLIENT PRIVILEGE, THE WORK PRODUCT PRIVILEGE, AND OTHER PRIVILEGES AND CONFIDENTIALITY PROVISIONS PROVIDED BY LAW. THE INFORMATION IS INTENDED ONLY FOR USE OF THE INDIVIDUAL OR ENTITY NAMED. IF YOU ARE NOT THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT THE SENDER HAS NC)T WAIVED ANY PRIVILEGE AND THAT YOU MAY NOT READ, DISCLOSE, COPY, DISTRIBUTE, USE OR TAKE ACTION BASED UPON THIS TRANSMISSION OF ANY ACCOMPANYING DOCUMENTS. IF YOU HAVE RECEIVED THIS TRANSMISSION IN ERROR, PLEASE IMMEDIATELY NOTIFY THIS OFFICE AND DELETE THE E- MAIL. 7/6/2010 Page 1 of 2 Peter Gutowsky From: Tammy Baney Sent: Tuesday, July 06, 2010 10:26 AM To: 'Frank Baldwin' Cc: Peter Gutowsky Subject: RE: Aspen Lakes Destination Resort Proposal Hi Frank - Please know that I have read your comments and appreciate you weighing in on this important decision. Your email has been forwarded for inclusion in the public record. In service to our community- Tanrn �J1 Tammy Baney Deschutes County Board of Commissioners 0 541 388-6567 1 F 541 385-3202 1 1300 NW Wall Street, Suite 200 Bend, OR 97701 From: Frank Baldwin [mailto:skibum@bendcable.com] Sent: Saturday, July 03, 2010 5:15 PM To: Tammy Baney; Dennis Luke; Alan Unger Subject: Re: Aspen Lakes Destination Resort Proposal Dear County Commissioners, I write to you as a very concerned neighboring landowner to the proposed Aspen Lakes Destination Resort. I have owned my property, purchased from the Cyrus family, since early 1990. I have previously testified before you; please refer to the Frank Baldwin Statement at the September 2008 DR hearing which I will briefly summarize here: Along with Keith and Matt Cyrus, I was an original board member of the Rim at Aspen Lakes Association (from July 1990 until November 1992). In that 28 -month period there were 28 meetings in which Matt and Keith Cyrus participated. At no time during that period was there ever any reference, hint or suggestion that a possible destination resort would someday border us. We knew of their plans for the future 27 -hole golf course, and that was fine, but never a hint or suggestion of a future destination resort. Even when specifically asked by the board in our recorded January 1991 minutes about any fiiture development plans to the east of our properties, we were told there were none. I must conclude that they spoke honestly to us then and that there was no such idea nor plan at that time. Beyond that, in recent times you now have heard testimony on these specific points: o Aspen Lakes had originally agreed with the county to preserve larger tracts of its open space, but now wants to renege on that commitment and take back a large area of open space and put hundreds of houses on it. This is contrary to owners of the neighboring properties belief that the county would oversee preservation of the open space in perpetuity, a position echoed by real tors and others as well. Aspen Lakes was due to be removed from the map for legitimate reasons. o The fairness issue: there is no reason why an exception for one developer should be made to the exclusion of all others. o Allowing a subdivision to become a destination resort is in violation of state and county statutes. o In 2009 the county told the Sisters Planning Commission that ineligible land would be removed from the resort map. o An Aspen Lakes DR would have considerable adverse impacts to the Wychus Creek watershed area, where the first steelhe, ad in 60 years have just recently emerged. o There are very serious questions about the true impact of DR's in the county, on infrastructure, costs, etc, and very few factual answers on which to base reasoned decisions. o Many have testified before you that this county has enough destination resorts already, and as pointed out in the July 2010 Oregon Business article ("Once -golden destination resorts face uncertain future") there are severe problems with a number of them, especially here in Central Oregon. 7/6/2010 Page 2 of 2 o Many have also testified that the public's views are not being represented by county decisions with respect to DR's: i.e. no more DR expansion! In my opinion Aspen Lakes is a no brainer; our quality of life here is of paramount importance: please enforce existing laws and NO exceptions for a single developer. Please strip the grandfather provision and the Cyrus amendment. And please allow only lands that legally meet both state and county criteria for resorts to be included. Finally, please respect the wishes of thousands of your constituents, as your decisions will have enormous impacts on this county's future development.. Thank you for your consideration. Sincerely, Frank Baldwin Sisters 7/6/2010 Page 1 of 1 Peter Gutowsky From: Genessa Goodman -Campbell [gena@onda.org] Sent: Tuesday, July 06, 2010 2:57 PM To: Peter Gutowsky Subject: ONDA comments RE: PA -09-3 and TA -09-6: Destination Resorts Deschutes County Commissioners c/o Peter Gutowsky Deschutes County Planning Dept. 117 NW Lafayette Ave. Bend, OR 97701 Re: PA -09-3 and TA -09-6: Destination Resorts Dear Commissioners: I am writing on behalf of the Oregon Natural Desert Association ("ONDA") to express our opposition to any proposal that would allow mapping of federal lands for destination resort development. As an organization that advocates for protection of public values on federal lands, we are concerned about the creation of a process by which federal lands may essentially be "Lipzoned" with a destination resort overlay zone that could create an inappropriate incentive for disposal of federal lands. Thank you for your consideration. Very truly yours, Gena Goodman -Campbell Central Oregon Wilderness Coordinator Oregon Natural Desert Association 33 NW Irving Bend, OR 9770] (541)330-2638 www,onda.org 7/6/2010 July 6, 2010 Deschutes County Commissioners c/o Peter Gutowsky Principal Planner, CDD 117 NW Lafayette Avenue Bend, OR 97701-1925 Re: Comments following hearing of June 30 on PA-09-3/TA-09-6 Dear Commissioners: I am writing on behalf of Central Oregon LandWatch to again express our concem over the lack of information used as a basis for these amendments. We earlier asked in a letter of March 1, 2010 for identification of lands and potential resort development under the County "multiple ownership" scenario. More recently, as reflected in the attached email correspondence between Nunzie Gould and Peter Gutowsky, the public has also asked for information to identify the alleged 432 government-owned parcels currently in the map, along with the 7 that would remain eligible on the map. Such identification is important for the public to understand what is actually being proposed and where. It is also necessary in order to be able to assess transportation impacts associated with this plan and text amendment where the provision for multiple ownerships allows for new development not contemplated by the original mapping and its criteria. Thank you for your consideration. Very truly yours, Paul Dewey cc: Board Page 1 of 2 From: Nunzie [nunzie wpacifier.com) Sent: Tuesday, July 06, 2010 9:06 AM To: Erik Kander; Paul Dewey; Craig & Marilyn Miller Subject: Ord 2010-024 DR remapping public record Attachments: public taxlots_drzoned.shx; public taxlots drzoned.dhf; public_taxlots_drzoned.prj; public taxlots drzoned.sbn; public taxlots drzoned.sbx; public_taxlots_drzoned.shp; ATT00315.htm I can't open the attachments. With the new DR min acreage changing from 160 acres to a compilation of adjacent parcels totaling 160 acres, I 'm not sure that simply using the 160 acre minimum (6 below), or platted subdivision (5 below) is a true reflection of this new language of the ordinance. l:Lll L/L. 11 T 1ULfa-taking comment? the link for the ordinance with strike throughs is on pages 4-8 of the link here: htt;//www_deschutes.org/boardCalendar/docs/3159/Hearing - Ordinance 025-Resort_Mapping.pdf Nunzie 541-420-3325 cell Begin forwarded message: From: "Peter Gutowsky" <Peter_Gutowsky@co.deschutes.or.us> Date: July 1, 2010 3:49:39 PM PDT To: "Nunzie" <nunziec pacifier.com> Subject: Re: DR remapping public record Nunzie, The GIS data you requested is attached. ❑ This data identifies 432 government-owned properties presently identified on Deschutes County's Destination Resort map. ❑ After applying the eligibility criteria below, only 7 of the 432 properties would remain eligible on the map. C1 Pleae be aware that this is a multi -part shapefile and must be summarized prior to being analyzed. Li The fields that reside within the table of this shapefile used to deterrnine the eligibilty/ineligibility of city/state/county/federal owned taxlots to be zoned DR are: 1.)r! F1 (F1) - If yes, property is ineligible for DR zone 2.)i_ Resource Land Within 1 Mile of a UGB (1MILEUGB)- If yes, property is ineligible for DR zone 3.)1 i Redmond Urban Reserve (URA) - If yes, property is ineligible for DR zone ATea of Critical State Concern (ACSC) - If yes, property is ineligible for DR zone 5.)H Platted Subdivisions (PLATTED) - If yes, property is ineligible for DR zone 6_)I + 160 Acres or greater (160 AC) - If yes, property is ELIGIBLE for DR zone 7.)r UGB (UGB) - if yes, property is ineligible for DR zone • 11 •), \ IIPtPI'l rt ',iI QPtt11"1(TC\ 1 P1llnl(nrn11-11 f;i1Pc\1 1t k' 7\1 !11111\A7ntr'1l 1 11! Ni '7iri')nin Page 2 of 2 Peter Peter Gutowsky, AICP Principal Planner Deschutes County Community Development Department 1 17 NW Lafayette Bend, OR 97701 ph#❑ (541)385-1709 fax# (541)385_17671 Web: www.co.deschutes.or.us/cdd Original Message From: Nunzie [mailto:nunzie@pacif er.com] Sent: Wednesday, June 30, 2010 4:52 PM To: Tammy Baney; Dennis Luke; Alan Unger Cc: Peter Gutowsky; Nick Lelack Subject: DR remapping public record Greetings Commissioners: For the DR remapping record: I have been told this afternoon by staff (Gutowsky) that he does not have time to produce information to substantiate his verbal testimony today on the DR remapping hearing regarding 432 parcels of public land currently mapped and 7 parcels of public land currently mapped and eligible to remain mapped. ! Mr. Gutowsky stated that he did not submit any written information into the record other than his verbal testimony. Mr. Gutowsky stated that he is swamped with other planning department demands: Historic Landmarks Commission, Tumalo Community Plan notifications etc and together with his not working this Friday and the public Holiday of next Monday, that r co,_ild not obtain this information prior to next week. It appears that your GIS specialist 'him Berg had done some cursory data collection for Mr. Gutowsky to identify these 432 parcels and 7 parcels. I would like a copy of the data set that establishes these parameters in a timely way so that 1 can make written comment before your written deadline of 5pm Tuesday July 6, 2010. I would also like the data set of the assumptions made to gather the pertinent information. (what parameters were used etc) 1 would appreciate your assistance in this matter.) 1 will gladly pick up whatever Mr. Berg provides at his CDD office or my email is always available for an electronic file. Sincerely, Nunzie Gould 541-420-3325 file:/rC:ADocuments and Settings\peterg\Local Settings\Temporary Internet Files\OLK2\LandWatch DR N... 7/6/2010