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HomeMy WebLinkAboutOrdinance 003 - Pollution Reduction Credits��ES L' �� Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701 -1960 (541) 388 -6570 - Fax (541) 385 -3202 - www.deschutes.org AGENDA REQUEST & STAFF REPORT For Board Business Meeting of February 2, 2009 Please see directions, for completing this document on the next page. DATE: January 14, 2009 FROM: Kristen Maze. Community Development Department 383 -6701 TITLE OF AGENDA ITEM: A public hearing and consideration of first reading, by title only, of Ordinance 2009 -003 to amend Deschutes County Code 11.12 to change the timing of when Pollution Reduction Credits are require to be paid from the current payment requirement at the time of final plat approval to the time of building permit issuance. PUBLIC HEARING ON THIS DATE? YES BACKGROUND AND POLICY IMPLICATIONS: This is an applicant initiated text amendment by Sagebrush Development LLC, to the Deschutes County Code 11.12, Transferable Development Credit Program. This proposal is to change the time of when Pollution Reduction Credits are required to be paid from the current requirement at the time of final plat approval to the time of building permit issuance. The Planning Commission held a public hearing on December 11, 2009 and recommended approval of the proposed text amendment without any changes. The Board will conduct a public hearing to consider the text amendments. FISCAL IMPLICATIONS: NONE. RECOMMENDATION & ACTION REQUESTED: Staff recommends the Board open the public hearing, listen to testimony and consider whether to have a first reading by title only of Ordinance 2009 -003. ATTENDANCE: Kristen Maze. DISTRIBUTION OF DOCUMENTS: Kristen Maze Community Development Department Planning Division Building Safety Division Environmental Health Division 117 NW Lafayette Avenue Bend Oregon 97701 -1925 (541)388 -6575 FAX (541)385 -1764 http : / /www.co.deschutes.or .us /cdd/ Staff Report TO: Deschutes Board of County Commission FROM: Kristen Maze, Associate Planner DATE: January 12, 2008 PUBLIC HEARING: February 2, 2009 SUBJECT: Text Amendment TA -08 -8 Deschutes County Code, Sections 11.12.020 Transferable Development Credit Transactions The Deschutes County Board of Commissioners ('Board') will hold a public hearing on February 2, 2009, at the Deschutes Services Center, starting at 10:00 p.m. The Board will consider an applicant initiated text amendment by Sagebrush Development, LLC, for the Deschutes County Code ( "DCC "), Sections 11.12.020 Transferable Development Credit (TDC) Transactions. The purpose of this public hearing is to present the proposed amendment listen to public testimony and answer any questions of the Board or public. BACKGROUND This is an applicant initiated text amendment that proposes to change the timing of when Pollution Reduction Credits (PRCs) are required to be paid. DCC 11.12.020 (D) currently requires payment for all PRCs prior to final plat approval. "Prior to final plat approval in the Receiving Area, the Community Development Department must have record of the required number of TDC's established and available to apply to the development of a tract or lot meeting the following criteria within the Receiving Area." DCC 11.12.010 defines "Pollution Reduction Credit" credit given for retrofitting of an existing wastewater treatment system or payment into the County fund and "Transferable Development Credit" credit given for a Restrictive Covenant granted to Deschutes County restricting the placement of a septic system on the subject property or a PRC. Transferable Development Credit and Local Rule History In 1996 Deschutes County and the Department of Land Conservation and Development (DLCD recognized that significant consequences could occur from the pattern of development in South Quality Services Performed with Pride Deschutes County and began a collaborative project known as Regional Problem Solving Project (RPS). The RSP project area encompasses approximately 42 square miles between Sunriver to the north and La Pine to the south, and includes thousands of small- subdivided Tots, and some larger parcels, throughout southern Deschutes County. In 2002 Deschutes County adopted Chapter 11.12, TDC Program based on policy direction from Deschutes County Comprehensive Plan Chapter 23.44, Regional Problem Solving for South Deschutes County. The TDC program was intended to reduce the overall impact from development in flood plains, wetlands, deer migration corridors and areas susceptible to groundwater pollution from nitrates. This program was also developed to help maintain open space and preserve the rural character of the area by reducing the overall density of development that would otherwise exist in the future if a dwelling were built on every legal lot. When the TDC program was implemented it identified as the "sending area" future residential growth from existing subdivisions in South Deschutes County. TDC's are allocated to eligible lots, in the Neighborhood Planning Area, also referred to as the "receiving area" where TDC's are required to be redeemed based on a net developable acreage formula. The Neighborhood Planning Area is County owned land acquired from Bureau of Land Management, located between La Pine and Wickiup Junction, west of Highway 97 with the exception of the area transferred to the Baldwin- Herndon Oregon Trust';Tax lot 22 -10 -106 and the southwest quarter of section 11 that are contiguous with the remaining Neighborhood Planning Area.. The TDC program operates in a voluntary, market - driven manner. Those property owners who choose to sell their TDC's retain ownership of the underlying land on which certain uses, such as camping, wood cutting, vegetation management, agricultural use and construction of a small storage structure are allowed. A conservation easement is placed on the property that prohibits the construction of a single - family dwelling and on -site sewage disposal system on the property. Property owners who sell their TDC's and enter into a Conservation Easement restricting future uses on their property may elect to sell the deed for the underlying property to a willing buyer. Initially, the TDC program required property owners to enter into an agreement with the County and record a Bargain and Sales Deed and Restrictive Covenant that placed restrictions on future development on a lot or parcel of land which then allowed land in the receiving area to acquire the TDC for future development. In 2004, Chapter 11.12 was amended to eliminate the requirement for the recording of a Bargain and Sale Deed because this deed prevented the property owner from refinancing or selling the property without the County first relinquishing its right of ownership. After two completed USGS studies the TDC program alone was determined not to be enough to solve the groundwater pollution problem in south Deschutes County. In 2006 Deschutes County adopted an amendment to include Pollution Reduction Credits in addition to TDC's. These amendments changed the focus of the Transferable Development Credit program to a Pollution Reduction Credit program that requires retrofitting existing septic systems to create credits required for development in the Neighborhood Planning Area. Neighborhood Planning Area developers are required to work with homeowners to retrofit existing septic systems with nitrogen- reducing technology or pay into a "Partnership Fund" that would then be made available to property owners interested in retrofitting their existing wastewater treatment systems. Prior to this amendment Deschutes County convened a Technical Advisory Committee made up of 17+ members of the La Pine community, state agencies, various professionals and developers, to assist the County in developing financial assistance program for a drinking water '10/18/2001 Memo Regarding Lot of Record Fact Finding for Tax Lot 22 -10 -106 2 protection program for south Deschutes County. The Committee represented diverse perspectives in seven meetings over a 10 -month period beginning in July 2005. The Committee raised a number of issues and reached a primary milestone in December 2005, when they recommended: • Everyone contributes to the problem so everyone should contribute to the solution • Focusing funds from the La Pine Neighborhood Planning Area to help retrofit existing septic systems • Develop a Local Rule that requires Best Available Technology for future septic systems and set standards for existing systems to meet over time. The Committee continued to meet to draft the amendments to the original TDC Program and coordinate with the Oregon Department of Environmental Quality over the basic elements of a local rule. Local rule amendments to DCC 13.14 were adopted July 23, 2008 to include; • the use of nitrogen reducing systems for: O all new construction, o major repairs (repairs to drainfields, this does not include tank replacements), o major alterations (changes that would cause increases in flows or proposing to connect to a system that doesn't meet minimum sizing requirements for the use), and o authorization notices. • the upgrade of all existing systems by November 2022 These Local rule amendments are currently up for referendum with the Deschutes County residents. APPLICANT PROPOSED TEXT AMENDMENT The applicant has worked with staff to propose a text amendment that meets his needs and the intent of the TDC /PRC program. The proposed text amendment is Exhibit A to Ordinance 2009- 003. ANALYSIS The applicant, Sagebrush Development LLC, currently owns approximately 54 acres in the Neighborhood Planning Area. This area consists of Quadrant 1A - 17.6 acres, Quadrant 1B — 24.8 acres and Quadrant 1D- 12.1 acres. Sagebrush Development has Quadrant plan approval for Quadrants 1A, 1B and 1D and tentative plat approval for a Quadrant 1A for a 73 single family lot subdivision. According to Resolution 2006 -043 Quadrants 1A, 1 B, and 1D need 325 PRCs prior to development which shall be divided proportionally according to gross number of acres among each of the quadrants. The conditional approvals for the applicant's tentative plat number 2 states; 2. Prior to final plat approval, all Pollution Reduction Credits (PRCs) must be paid in full to the County. The total amount due for Quadrant 1A has been calculated to be 104 PRC's (325 times 32 %) in accordance with DCC11.12 and the Board of County Commissioners Resolution No. 2006 -043. This condition is taken straight from the DCC section 11.12.020 (D) Total Gross Acres in Q1A 17.6 acres 3 PRCs needed for Q1A, 1 B, 1D 5.96 PRC /acre PRCs required for QIA, Tentative Plat 17.6 X 5.96 = 104PRC Based on this condition and the above calculation Sagebrush Development is required to either pay the 32% or $779,520 for 104 PRC's or retrofits in cooperation with a property owner on property eligible for a PRC prior to recording the final plat of Quadrant 1A The applicant outlines the purpose of the PRC program and the reason for the requested text amendment: "The purpose of the PRC program is to assist the southern portions of Deschutes County to protect the drinking water of its residents. The funds for the PRC program will be placed in an account to assist existing area residents with rebates or low interest loans to meet the Local Rule that requires all existing septic systems to be converted to nitrogen reducing systems and requires all new development to use nitrogen reducing systems. The purpose of the PRC program is met if funds are placed into the PRC accounts at the time of building permit is obtained on a lot rather than at the time a final plat is recorded. In addition, a letter from Tom Andersen, the County Engineer states: 'In addition, we have offered to allow you to pay the fallback amount at the time the lots sell, rather than up front.' It is logical to pay PRCs when development occurs rather than at the time of the initial plat. At the time of the initial plat it is uncertain whether development will occur. If no development occurs there should be not duty to pay for pollution reduction. The proposed text amend ensures that a developer or lot owner will pay PRCs at the time of building permit is requested. This is similar to the timing of System Development Charges. Therefore, it will not be difficult to track whether PRC payment have been made." This proposal has gone through significant changes. Staff worked with the applicant's representative, Bob Lovlien to develop text that will meet the original objective of the TDC code and address the applicants concerns. The following reasons support this text amendment: ➢ The intent of the Neighborhood Planning Area which Bureau of Land Management sold to the County was to establish means to address the ground water problem in Deschutes South County. The program was designed to limit development on small lots within the sending area of La Pine and encourage development in Neighborhood Planning Area as well as assist La Pine residents in funding for converting existing septic systems to nitrogen reducing septic systems. This proposal will require a Neighborhood Planning Area developer to meet its PRC obligation at the time of building permit. Tentative and final plats in the Neighborhood Planning Area will cite the PRC obligations enabling a developer to establish a subdivision and sell lots while defraying the PRC obligation to the time of building permit issuance. ➢ If adopted, PRCs would be processed similar to a system development charges. It will be required prior to issuance of a building permit. The cost a PRC per lot will be shown 4 on the recorded final plat. The tracking of all PRC cost will be flagged electronically which will require payment of PRCs for individual lots upon building permit issuance. The tentative plan conditions will outline the PRCs required to develop and their cost per lot. The final plat will show the cost per lot which will be tracked electronically through our building permit process. All money will be sent to the PRC funding account, which is renamed the proposed Financial Assistant Fund. > Staff is recommending approval of the proposed text amendment because it maintains the Neighborhood Planning Area as a "receiving area" and provides mechanisms through the TDC and PRC programs to protect the groundwater of south Deschutes County. Planning Commission Recommendation At the November 13, 2008, work session the Planning Commission asked that the code include the proposed PRC payment requirement be placed on the deed and the title report in addition to the final plat. The county currently does not record or special notice sewer or transportation SDC's that encumber properties, so to record this could be somewhat misleading if the buyer is unaware of the other SDCs. This requirement would also be costly to the county or the property owner because it would require a deed be recorded for each individual lot at the time of final plat approval. Typically, a good title report reviews the final subdivision plat and would research property burdens like SDC's listed on the final plat. Ultimately, it is the seller's responsibility to disclose the PRC burden to the buyer in the real estate transaction. At the public hearing held on December 11, 2008, the Planning Commission recommended approval of the proposed text amendment with no changes. REVIEW CRITERIA Deschutes County lacks specific criteria in DCC Titles 11 or 23 for reviewing a legislative zoning text amendment. Therefore, the County must determine that the proposed text amendments are consistent with the Statewide Planning Goals and the County Comprehensive Plan, Title 23. The attached draft findings demonstrate compliance with both Statewide Planning Goals and County Comprehensive Plan. RECOMMENDATIONS Staff recommends that the Board of County Commission; 1. Open the public hearing, listen to testimony, discuss and consider the first reading by title only of Ordinance 2009 -003. Attachments: 1. Ordinance 2009 -003 2. Text Amendment 3. Findings 4. Resolution 2006 -043 5 REVIEWED LEGAL COUNSEL For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Ordinance Amending the Deschutes County Code Chapter 11.12.020 Regarding the Pollution Reduction Credits Payment Timing. * * ORDINANCE NO. 2009-003 WHEREAS, Sagebrush Development LLC., initiated a text amendment to Deschutes County Code (DCC) Chapter 11.12; to change the timing of when Pollution Reduction Credits (PRCs) are required to be paid from the time of recording the final plat to the time of issuance of a building permit, and WHEREAS the Board considered this matter after a public hearing on February 2, 2009 and concluded that the public will benefit from changes to the land use regulations for payment of Pollution Reduction Credits; now, therefore, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ORDAINS as follows: Section 1. AMENDMENT. DCC Sections, 11.12.010 and 11.12.020, 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 st-r-iketlifetth. Section 2. FINDINGS. are as described in Exhibit "B," attached hereto and by this reference incorporated herein. /// PAGE 1 OF 2 - ORDINANCE NO. 2009-003 (02/2/09) Dated this of ATTEST: , 2009 BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON Recording Secretary Date of 1st Reading: Date of 2nd Reading: Record Commissioner Tammy Baney Dennis R. Luke Alan Unger Effective date: ATTEST: day of TAMMY BANEY, CHAIR DENNIS LUKE, VICE CHAIR ALAN UNGER, COMMISSIONER , 2009. day of , 2009. of Adoption Vote Yes No Abstained Excused day of , 2009. Recording Secretary PAGE 2 OF 2 - ORDINANCE NO. 2009-003 (02/2/09) Chapter 11.12. TRANSFERABLE DEVELOPMENT CREDIT PROGRAM 11.12.010. Definitions. 11.12.020. TDC Transactions. 11.12.030. TDC Sending Area Eligibility Criteria. 11.12.040. TDC Advisory Committee. 11.12.010. Definitions. As used in DCC 11.12, the following words and phrases shall mean as set forth in DCC 11.12.010. "Certificate of TDC Purchase" means a certificate from Deschutes County that documents the purchase or, in the case of a PRC, creation of TDC(s). "Department" means, for purposes of this chapter, the Deschutes County Community Developmen Department. "Existing Wastewater Treatment System" means a wastewater treatment system in use in the Sending Ares, on May 31, 2006 that is not a Nitrogen Reducing System approved by Deschutes County. Financial Assistance Fund" means whichever fund created by the County to aid property owners ii complying with the requirements to reduce the overall discharge of nitrogen into the basin groundwater of it south Deschutes County. "High Priority Deer Migration Corridor Area" means the area mapped in 2000 by the Oregon Department of Fish and Wildlife which shows the area of priority protection for migrating mule deer within a largea migration corridor acknowledged under statewide planning Goal 5. A copy of this map is on file with the Department. "Net Developable Acre" means the acreage in a tract of land in a Receiving Area calculated by subtracting the acreage reserved for collector road right -of -way and community parks and open space from the gross acreage of a subject tract. "Nitrate Loading Management Model" means the groundwater model developed by the US Geological Survey to determine the nitrate loading capacity of the drinking water aquifer underlying south Deschutes. County. "Nitrogen Reducing System" means a wastewater treatment system that reduces nitrogen loading to the groundwater in accordance with the Nitrate Loading Management Model and that is approved by Deschute,, County. "Pollution Reduction Credit" (PRC) means the credit given for the Retrofitting of an Existing Wastewater Treatment System or payment into the County's Financial Assistance €Fund. "Receiving Area" means the area designated by the County where Transferable Development Credits are required in order to purchase and develop a tract of land. "Restrictive Covenant" means a legal instrument which places restrictions on future development on a lot or parcel of land in the Sending Area. "Retrofit" means to upgrade or replace an Existing Wastewater Treatment System in the Sending Area witl a Nitrogen Reducing System approved by the County. "Sending Area" means the area designated by the County in which Transferable Development Credits ma. be sold. EXHIBIT A - ORDINANCE 2009 -003 1 Chapter 11.12 (2009) "TDC Report" means a report from a title company verifying title to and encumbrances on the subject property. "Transferable Development Credit" (TDC) means the credit given for a Restrictive Covenant granted to Deschutes County restricting the placement of a septic system; on the subject property or a PRC. (Ord. 2008 -XXX § X, 2008;Ord. 2006 -016 §1, 2006; Ord. 2004 -007 §1, 2004; Ord. 2002 -010 §1, 2002) 11.12.020. TDC Transactions. A. Sale of TDCs from the Sending Area. Either Section B or C shall be followed for the creation of TDCs, B. Restrictive Covenant 1. The property owner or any other interested person shall request verification from the County that the subject property is eligible for a TDC. 2. The Department shall send the property owner or interested person written verification confirming the number of TDCs the subject property is eligible for based on the criteria in DCC 11.12.030. 3. Upon mutual agreement of a sale between the property owner and TDC purchaser, the following: transactions shall occur: a. The property owner shall provide a TDC Report to the Department. b. If the TDC purchaser is other than the County then the property owner and TDC purchaser shall sign a TDC Contract form provided by the County. c. Upon Department review and approval of the TDC Report and receipt of payment of the consideration in accordance with the County's agreement with the property owner or the TDC Contract pursuant to DCC 11.12.010(A)(3)(b), the County shall prepare a Restrictive Covenant that restricts development on the subject property. This Restrictive Covenant shall be signed by the County and the property owner. The County shall record the Restrictive Covenant. d. Contemporaneously with the recording of the Restrictive Covenant, County shall provide the TDC purchaser with documentation of the TDC purchase. C. PRC. 1. The property owner or any other interested person shall request verification from the County that . the subject property is eligible for a PRC. 2. The Department shall provide the property owner or interested person written verification confirming the subject property is eligible for a PRC based on the criteria in DCC 11.12.030. 3. The County shall grant a PRC to a developer in the Receiving Area if the developer provides one of the following: a. A Retrofit, in cooperation with the property owner of a property eligible for a PRC, Existing Wastewater Treatment System and documentation submitted to the County that includes proof of ownership of the subject property, proof of consent of the property owner for the Retrofit. and final County inspection of the Retrofit; or b. Payment into the County's Financial Assistance fFund the proportional cost established by Board of County Commissioner Resolution for a Retrofit. The County's fund shall be use d te> aid property owners ' • . _ in reducing the overall discharge of nitrogen into the basin groundwater of in south Deschutes County. D. Assignment of TDCs to the Receiving Area. Prior to final plat approval in the Receiving Arca, the 1. The total number of required TDCs, including PRCs, applicable to a subdivision in the Receivin} Area shall be established and made a condition of approval at the time of tentative plan approval. 21 The tract or lot shall be located within the La Pine Neighborhood Planning Area in the La Pirn, Urban Unincorporated Community and be zoned Residential General or Residential Center. The Receiving Area is identified on a map prepared and maintained by the Department. EXHIBIT A - ORDINANCE 2009 -003 2 Chapter 11.12 (2009) 43. TDCs shall be assigned to a lot or tract based on the Net Developable Acres at a rate approved b) Board of County Commissioner resolution. 64. PRCs shall be assigned to a tract at a rate established by Board of County Commissioner resolution. 65. The Board may, by resolution, adjust the number of TDCs required per acre or alter the factors for which TDCs are required in the Receiving Area. 76. At the time of final plat approval , any remaining required PRCs for the partition or subdivision shall be divided by the number of residential lots approved for the partition or subdivision. 7. The required PRCs and their cost for each lot shall be shown on the final plat. 8. Prior to issuance of a building permit for a residential lot in the Receiving Area, the Departmeni . must have payment of the required number of PRCs for that lot. E. Non - Residential Districts. Where permitted under DCC 18.61.050, uses in non - residential districts in the Receiving Area do not require TDCs. F. Right to Develop. If an owner of a lot or parcel of land eligible for a TDC chooses not to participate it the TDC program, the owner shall not be restricted from developing said lot or parcel in accordance with the applicable zoning standards in DCC Title 18, and any other applicable regulations, rules or standards. (Ord. 2008 -XXX § X, 2008; Ord. 2006 -016 §1, 2006; Ord. 2004 -007 §1, 2004; Ord. 2002 -010 §1, 2002) 11.12.030. TDC Sending Area Eligibility Criteria. A. A lot or parcel that meets the following criteria is eligible to receive a TDC. The lot or parcel shall: 1. Be located within the "Sending Area" identified on a map prepared and maintained by the Department; 2. Be no greater than two acres in area; 3. Be capable of being served by an on -site sewage disposal system that meets current Oregon Department of Environmental Quality standards, as demonstrated by a satisfactory feasibility evaluation for an on -site sewage disposal system or when the lot or parcel is shown as being eligible' for such system on the TDC Sending Area map; and 4. Not be developed with an existing sewage disposal system, or if developed with an existing sewage disposal system, the landowner shall disable said system, or 5. Have received prior approval for a site evaluation or an installed septic system that has expired or i no longer valid, or 6. Have an Existing Wastewater Treatment System eligible for a Retrofit. B. TDCs shall be assigned to an eligible lot or parcel that meets the criteria in DCC 11.12.030(A), as follows: 1. An eligible lot or parcel upon which a Restrictive Covenant is recorded shall be assigned one TDC. 2. An eligible lot or parcel located in the High Priority Deer Migration Corridor Area upon which it Restrictive Covenant is recorded shall be assigned an additional one -half TDC. 3. An eligible lot or parcel upon which an Existing Wastewater Treatment System has been Retrofitted shall be assigned one TDC. 4. The Board of County Commissioners may by Resolution revise the number of TDCs assigned or the factors for which TDCs are assigned to eligible lots or parcels in the Sending Area. (Ord. 2006 -016 §1, 2006; Ord. 2004 -007 §1, 2004; Ord. 2002 -010 §1, 2002) 11.12.040. TDC Advisory Committee. A. Purpose. The TDC Advisory Committee is an advisory committee whose purpose is to assist staff it implementing the TDC program and to recommend to staff the means to accomplish the goals o Regional Problem Solving insofar as the transfer of development credits from the Sending Area to the. Receiving Area are concerned. EXHIBIT A - ORDINANCE 2009 -003 3 Chapter 11.12 (2009) B. Duties. The committee will advise staff in evaluating the TDC program for record keeping accuracy., determine if program goals are being met, consider whether any changes to the TDC allocation criteria in the Sending Area or TDC requirements in the Receiving Area are advisable, or if any other revisions to the program are warranted. The committee may assist the County in determining which TDC options to exercise. C. Committee member terms. Committee members will be selected by staff based on the knowledge and expertise that each member may contribute to the development of the TDC Program. One -half the initial members shall serve for one year and one -half shall serve for two years. Thereafter, members shall serve two -year terms. Members may be requested to serve additional terms. Staff shall report the membership of the TDC Advisory Committee to the Board of County Commissioners on an annual basis. D. Committee members. The TDC Advisory Committee may include a representative from each of the following organizations, agencies or professions: 1. The International Society of Appraisers or an Oregon State Certified Appraiser; 2. A firm established for the purpose of real estate development or the representation of development interests; 3. An individual with recognized expertise in hydrology or ground water; 4. An individual with recognized expertise in big game wildlife management; 5. The Community Solutions Team for Central Oregon; 6. An individual who resides in the designated Sending Area; 7. A member of the La Pine Community Action Team; 8. The Deschutes County Community Development Department Director or designee as an ex officio member. 9. Staff may select additional members as it deems appropriate. (Ord. 2006 -016 §1, 2006; Ord. 2003 -033 §1, 2003; Ord. 2002 -010 §1, 2002) EXHIBIT A - ORDINANCE 2009 -003 4 Chapter 11.12 (2009) TA -08 -8 FINDINGS This proposed text amendment is initiated by Sagebrush Development, LLC, owner of Quadrant 1a, 1b and Id in the Newberry Neighborhood Planning Area. This proposal changes the timing of when Pollution Reduction Credits (PRC's) are required to be paid. DCC 11.12.020 currently requires that payment for all PRCs is required prior to final plat approval. The text amendment will allow payment of all PRCs at the time of issuance of a building permit. The applicant requested the proposed amendments to allow developers of the Neighborhood Planning Area to provide the infrastructure for development and a mechanism to allow lots to be sold to individual builders without the significant upfront PRC cost prior to any construction. The Planning Commission held a work session on November 13, 2008 and a public hearing on December 11, 2008 and recommended approval with no changes. The Board held a work session January 14, 2009 and a public hearing and first reading on February 2, 2009, following the recommendation of the Planning Commission. DESCHUTES COUNTY COMPREHENSIVE PLAN: The Deschutes County Comprehensive Plan, Chapter 23.44 Regional Problem Solving for South Deschutes County specifically address goals for preserving water and air quality, reducing wildfire and the protection of wildlife habitat in south Deschutes county. The proposal maintains the preservation of the Neighborhood Planning Area as a "receiving area" and provides mechanisms through the Transferable Development Credit and PRC programs to protect the groundwater of south Deschutes County. Therefore this proposal is found to be consistent with the comprehensive plan chapter 23.44 goals and strategies. CONCLUSION: The Board finds that the amendments attached to Ordinance 2009 -003 as Exhibit A will continue to further the purposes for the Neighborhood Planning Area ( "NPA ") as described in the Comprehensive Plan because the retrofitting of individual septic systems in the sending area will still occur and the developers in the NPA still have the option to actually install nitrogen reducing wastewater treatment systems on properties in the Sending Area. Also, the developers will still have a requirement to pay into the fund that the County will use to assist property owners in the Sending Area for future wastewater treatment systems, albeit not as the code required prior to these amendments. Also, the amendments will provide a means by which individual developers will better be able to develop the New Neighborhood. They can better develop in the Newberry Neighborhood because financing all the PRCs prior to the final plat approval would be difficult, especially for developers that are not large corporations. If the developers are better able to achieve financing and spread the costs of the PRCs, the program in the NPA is likely to have more success because more buyers will likely be interested in developing in the NPA. EXHIBIT "B" ORDINANCE 2009 -003 REV D LEGAL OUNSEL DESCHUTES COUNTY OFFICIAL RECORDS W N % 555 NANCY BLANKENSHIP, COUNTY CLERK COMMISSIONERS' JOURNAL 06108/2006 03:45:21 PM I BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON A Resolution establishing Pollution Reduction Credits as part of the Transferable Development Credit Program required for developing the La Pine Neighborhood Receiving Area RESOLUTION NO. 2006-043 WHEREAS, on June 6, 2006, the Board of County Commissioners ( "Board ") adopted Ordinance 2006- 016 amending Deschutes County Code Chapter 11.12 to define a Transferable Development Credit ("TDC") as including a Pollution Reduction Credit ( "PRC ") for the retrofitting, as that term is defined in Ordinance 2006- 016, of existing wastewater treatment systems or for payment in lieu of retrofits, and WHEREAS, Ordinance 2006 -016 also amended Chapter 11.12 to allow developers to contribute to the County's fund for TDCs and PRCs instead of installing retrofits in order to develop in the TDC program's "Receiving Area;" and WHEREAS, the TDC Review Committee met and recommended that 534 PRCs are needed to complete the development of Quadrants 2a, 2b and 2d, 325 TDCs are needed for Quadrants la, lb and ld, and 3,654 for Neighborhoods 3 and 4 in the Newberry Neighborhood with the PRCs to be divided proportionally, according to the gross number of acres, among each of the quadrants within each designated Neighborhood, and WHEREAS, the TDC Review Committee also recommended that payment into the County's fund shall be used by the County to aid property owners in retrofitting existing wastewater treatment systems, and; WHEREAS, DCC 11.12.020 states that the Board may, by Resolution, adjust the number of TDCs required in the Receiving Area or alter the factors for which TDCs are required in the Receiving Area; now, therefore, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, as follows: Section 1. The number of PRCs needed to develop Quadrants 2a, 2b, and 2d is 534, to be divided proportionally, according to the gross number of acres, among each of those quadrants. Section 2. The number of PRCs needed to develop Quadrants la, lb, and Id is 325, to be divided proportionally, according to the gross number of acres, among each of those quadrants. Section 3. The number of PRCs needed for Neighborhoods 3 and 4 total 3,654, to be divided proportionally, according to the gross number of acres, among each of the quadrants in those neighborhoods. PAGE 1 OF 2 - RESOLUTION NO. 2006-043 (06/05/2006) Section 4. Payment of $7,500.00 into the County's fund by developers in the Newberry Neighborhood shall equal one PRC. DATED this.J ' day of , 2006. (groetaALAITEST: Recording Secretary PAGE 2 OF 2 - RESOLUTION NO. 2006-043 (06/05/2006) BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON DE S R. LUKE, C air BEV CLARNO, Vice Chair