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HomeMy WebLinkAboutExhibit C - Schwabe LtrSCHWABE, WILLIAMSON & WYATT ATTORNEYS AT L A W Pacwest Center,1211 SW 5th Ave., Suite 1900, Portland, OR 972041 Phone 503.222.9981 1 Fax 503.796.29001 www.schwabe.com PETER LIVINGSTON Admitted in Oregon and Washington Direct Line: 503-796-2892 Cellular Phone: 503-314-1050 Home Phone: (503) 233-9313 E -Mail: plivingston@schwabe.com February 29, 2008 VIA HAND DELIVERY AND E-MAIL Board of County Commissioners c/o Deschutes County Planning Division 117 NW Lafayette Bend, OR 97701 Re: Thornburgh Resort Company, LLC Conceptual Master Plan Application CU -05-20 Our File No.: 112188/138798 Dear Commissioners: 2 9 2008 ;iq) BY: We represent Thornburgh Resort Company, LLC ("Thornburgh"), the applicant in these proceedings. This letter responds to the Board's request for written argument that addresses the remands of the Oregon Court of Appeals and the Oregon Land Use Board of Appeals ("LUBA"). We appreciate the opportunity to participate in this manner, and we are pleased to see that after nearly three years of review, the Thornburgh application has now been returned to the County Board of Commissioners ("Board") for only a few corrections or clarifications to the Board's decision of May 10, 2006 ("Decision") approving the Conceptual Master Plan and Conditional Use Permit. As reflected in staff memoranda, which you have already received in connection with the remand process, and in your directions inviting comment, all that remains to be done at this point is the rather technical job of crafting additional conditions and findings directly responsive to the orders. To that end, we have prepared an explanation addressing each of the six points listed by staff in the January 2008 Request for Written Argument, followed by a suggested finding or condition. Portland, OR 503.222.9981 1 Salem, OR 503.540.4262 I Bend, OR 541.749.4044 Seattle, WA 206.622.1711 1 Vancouver, WA 360.694.7551 1 Washington, DC 202.488.4302 PDX/ 112188/] 38798/P1,1/2327680.2 EXHIBIT C Board of County Commissioners February 29, 2008 Page 2 LUBA's Decision In its May 14, 2007 Opinion and Order ("LUBA Order"), LUBA remanded to the County on the following issues:1 1. Gould's First and Fourth Assignments of Error: Correction of the Inconsistency Between the Phasing Plan and the Overnight and Density Calculations Chart Gould's first and fourth assignments of error dealt with inconsistencies in the record relating to the 2:1 ratio for residential development and overnight lodging. Both assignments of error focused in part on the inconsistency between the Overnight and Density Calculations chart and the Phasing Plan. These inconsistencies arose as a result of Thornburgh's inadvertent errors in the preparation of the plan and chart prior to the Board's hearing in December 2005. In its opinion, LUBA concludes that the apparent inconsistencies can be cured by a finding identifying the correct version of the Overnight and Density Calculations chart and by modifying one legend in the Phasing Plan. In reaching this conclusion, LUBA first rejects most of the first assignment of error, but agrees with Gould about "[t]he third inconsistency, which ... would require that the phasing plan be modified to show that 62.5 overnight dwelling units will be developed in Phase D with the hotel." LUBA Order 16. According to LUBA, "Until the phasing plan is corrected, it proposes phased development that does not comply with the 2:1 ratio. That problem could have been eliminated if the county had imposed a condition of approval that specifically required that correction. " Id. (Emphasis added.) LUBA explains that the corrections in the Overnight and Density Calculations chart included in Thornburgh's final legal argument are not "new evidence." LUBA Order, p. 16, footnote 16. This means they can be considered by the Board without reopening the record. Because LUBA indicates that a condition of approval is proper, it becomes clear that ORS 197.522 applies. It requires a local government to "approve an application for a permit ... that is consistent with the comprehensive plan and applicable land use regulations or ... impose reasonable conditions on an application to make the proposed activity consistent with the plan and applicable regulations." LUBA continues: "Thornburgh has explained that it intends to correct that inconsistency by modifying the phasing plan to conform to the Overnight and Density Calculations chart. The county needs to either require that Thornburgh make that correction, or impose a condition of approval that the correction be made, before it grants approval of the CMP." LUBA Order, p. 17. 1 For the Board's convenience, the sections in this letter are numbered to correspond to the numbered sections in the Memorandum to the Board dated December 31, 2007, which was prepared by Associate Planner Ruth Wahl. PDX/1I2188/138798/PLI/2327680.2 Board of County Commissioners February 29, 2008 Page 3 In considering the January 3, 2006 Overnight and Density Calculations chart, which makes the necessary corrections, LUBA states, "We do not understand petitioners to dispute that, as a factual matter, the suggested correction will preserve the 2:1 ratio." LUBA Order, p. 16, footnote 16. Therefore, consistent with these statements in the LUBA Order, Thornburgh proposes the following additional condition: Thornburgh shall modify the Overnight and Density Calculations chart presented to the Board at the appeal hearing on December 20, 2005 by replacing it with the Overnight and Density Calculations chart included at page 25 in Thornburgh's final legal argument, dated January 3, 2006, as shown below. The 75 units of overnight lodging shown in the December 20, 2005 Overnight and Density Calculations table to be developed in Phase C will actually be developed in Phase B, for a total of 150 units in Phase B. The Overnight and Density Calculations table will be corrected to show the 50 hotel units will be developed in Phase D, where the Phasing Plan, attached to the Memorandum of Applicant in Response to Public Comments, Ex. 13, Revised B-1.8, already shows the hotel will be developed. Additionally, the legend in the Phasing Plan will be corrected to show hotel and residential overnight lodging uses in Phase D (in pod 30). ITEM Phase A Phase B Phase C Phase D Phase E Phase F Phase G Totals Residential Single Family (RSF) 300 150 150 125 125 50 50 950 Hotel Overnight 0 0 0 50 0 0 0. 50 Residential Overnight 150 150 0 63 62 0 0 425 Net Overnight 150 150 0 113 62 0 0 475 Cumulative RSF 300 450 600 725 850 900 950 950 Cumulative Overnight 150 300 300 413 475 475 475 475. RATIO-RSF/Overnight 2.00 1.50 2.00 1.76 1.79 1.89 2.00 2.00 Thornburgh shall present the corrected Phasing Plan and Overnight and Density Calculations chart, consistent with this condition, during the Final Master Plan approval process. This new condition also addresses LUBA's discussion of Gould's fourth assignment of error, LUBA Order, p. 24. 2. Gould's Third Assignment of Error: Compliance with ORS 197.445(4)(b)(B) Concerning Construction of the 50 Units of Overnight Lodging Prior to Closure of Sale of Individual Lots or Units PDX/112188/138798/PL1/2327680.2 Board of County Commissioners February 29, 2008 Page 4 Gould's Third Assignment of Error relates to an inconsistency between the wording of the county approval standard and that of a subsequently adopted state statute. As described below, LUBA determined the wording of the state statute must control and instructed the county to make related corrections in the findings. In the first paragraph of Condition 21, the Decision states, "In lieu of construction, [Thornburgh] may provide financial assurances for construction of the required overnight lodging." As explained in the LUBA Order, pp. 21-24, this condition, while consistent with DCC 18.113.060(A)(5), which allows all of the required 150 units of overnight lodging to be "physically provided or financially assured," is inconsistent with the requirement in ORS 197.445(4)(b)(B) that the first 50 of those 150 units "must be constructed prior to the closure of sale of individual lots or units." LUBA Order, p. 23. Therefore, consistent with these statements in the LUBA Order, Thornburgh proposes that the first paragraph of Condition 21 of the Decision be replaced with the following: Each phase of the development shall be constructed such that the number of overnight lodging units meets the 150 overnight lodging unit and 2:1 ratio of individually owned units to overnight lodging units standard set out in DCC 18.113.060(A)(1) and 18.113.060(D)(2). Individually owned units shall be considered visitor oriented lodging if they are available for overnight rental use by the general, public for at least 45 weeks per calendar year through one or more central reservation and check-in services. As required by ORS 197.445(4)(b)(3), at least 50 units of overnight lodging must be constructed prior to the closure of sale of individual lots or units. 3. Gould's Fourth Assignment of Error: Correction of Phasing Plan to Match Overnight and Density Calculations Chart This issue, which is raised by Gould's fourth assignment of error, is identical to the issue that prompted LUBA to remand on Gould's first assignment of error. It is addressed by the first condition proposed above. Staff has proposed a separate condition, acceptable to Thornburgh, which restates part of the first condition. 4. Gould's Eighth Assignment of Error: Required Additional Finding with Respect to DCC 18.113.070(G)(3)(b): "Access within the Project Shall Be Adequate to Serve the Project in a Safe and Efficient Manner for Each Phase of the Project" Gould's eighth assignment of error points out an omission in the original findings: The Decision failed to include a finding addressing the evidence relating to access roads. LUBA concluded that the County "must address and demonstrate" that the CMP complies with DCC 18.113.070(G)(3)(b). LUBA Order, p. 43. Although the Board's original decision did not include a specific finding, the record included extensive evidence demonstrating the adequacy of access, including statements by representatives of the county road office, the United States Bureau of Land Management ("BLM"), and the City of Redmond Fire Department. Therefore, PDX/ 112188/ 138798/PLI/2327680.2 Board of County Commissioners February 29, 2008 Page 5 Thornburgh suggests the following additional finding, which summarizes evidence already in the record and is consistent with the Board's initial determination approving the CMP: Applicant has submitted a revised Vehicular Access and Circulation Plan, Memorandum of Applicant in Response to Public Comments, September 28, 2005 ("MR"), Ex. 3, A-1.6, which illustrates how roads will provide access throughout each phase of the project. This plan can be viewed together with the revised Phasing Plan, MR, Ex. 13, B-1.08, to determine how the different phases of development will be served by roads. The revised Phasing Plan does not show the roads extending to the Phase G residential area, but Applicant has explained that this is a typographical error, Applicant's Final Argument, October 19, 2005 ("AFA"), p. 8, and the Board relies upon the Vehicular Access and Circulation Plan to determine where the roads will go. The revised Phasing Plan shows the internal roads will be constructed in Phase A or, at the latest, in Phase B. The Board finds that the roads have been located in a safe and efficient manner. As Applicant explained in its final argument to the hearings officer, AFA, p. 5, roads have been located in response to concerns expressed by the Bureau of Land Management and others. Robert Towne, Field Manager, Deschutes Resource Area of the Bureau of Land Management, states in a September 28, 2005 letter to the County hearings officer, MR, Ex. 14, B-1.40, that the location of the northern access road, which emphasizes shared use of rights-of-way, will "balance BLM's competing objectives" by minimizing "any additional disturbance of the land and ... consolidate access points in a single location." Mr. Towne states further that Thornburgh's choice of existing road segments for its proposed connecting roads across federal lands in Section 29 and 30 "will minimize the fragmentation of public lands and impacts on the environment." From these statements, the Board concludes the proposed connecting roads will be "efficient," as that term is used in the DCC. Opponent Gould objects that the internal road that accesses the southwest part of the property cannot be described as safe or efficient because it is over two miles from Cline Falls Road and because of "fire danger in the area." However, the distance from Cline Falls Road does not make the road in the southwest part of the property inefficient or unsafe per se. Gould has not identified a standard that would show the road to be unsafe. Efficiency depends on available alternatives, and the Applicant's choice of alternatives appears reasonable to the Board. Because it is not adequately developed, Barr Road is not a reasonable access alternative to the southwest part of the resort. In its May 14, 2007 Opinion and Order, LUBA found that the unavailability of Barr Road for either access or emergency access provides no basis for reversal or remand. The question of fire danger is addressed by the City of Redmond Fire Department in its January 12, 2005 Letter, in which the Fire Chief, Ron Oliver, describes meeting with representatives of the resort project to discuss fire and public safety issues, hazardous fuels reduction and annexation of the resort property into the Deschutes County Rural Fire Protection District #1. Thornburgh's Burden of Proof Statement, dated February 16, 2005 ("BOP"), Ex. 15, B -29a. In a subsequent July 13, 2005 letter, MR, Ex. 15, B-1.32, Chief PDX/112188/138798/PLI/2327680.2 Board of County Commissioners February 29, 2008 Page 6 Oliver states that fire code access requirements will be met through the use of two routes connecting to the Cline Falls Highway and through an all weather access road across the northern portion of the Thornburgh property for additional access via Highway 126. In a September 23, 2005 letter, MR, Ex. 15, B -L31, Deschutes County Sheriff Les Stiles states that representatives of the sheriff's office have reviewed Thornburgh's Resort Planning and Emergency Preparedness plan, MR, Ex. 15, B-1.30, and find it "consistent with the evacuation operational plans within Deschutes County." These letters and the Emergency Preparedness Han itself adequately address the concerns raised by Gould in connection with safe and efficient internal access. The County depends upon its own Road Department to raise concerns about internal access after reviewing an application. Gary Judd, at the County Road Department, by email dated June 2, 2005, requested from Applicant's traffic consultant a copy of the updated map of the phases and an approximate time line for construction of each phase, in order to assess trip distribution and how it would affect various intersections. On July 1, 2005, Mr. Judd commented to planner Devin Hearing that Thornburgh's traffic study, as modified, "is acceptable to the Road Department." Mr. Judd raised no concerns about internal access. Based on substantial evidence in the record, the Board finds that Applicant has demonstrated compliance with this standard. In order to assure future compliance, as access roads are designed and constructed, the Board has imposed Conditions 5, 7, 27 and 30. Condition 5 requires the design and construction of the road system in accordance with Title 17 of the Deschutes County Code ("DCC"). It requires further that road improvement plans be approved by the County Road Department prior to construction. DCC Title 17 (and, in particular, DCC chapter 17.48) establishes minimum standards for design and construction of roads and other improvements and facilities. DCC 17.48.180 states applicable minimum road standards for private roads. In addition, DCC 17.48.030 allows the Road Department Director to impose additional design requirements "as are reasonably necessary to protect the interests of the public." Condition 27 requires that road width be consistent with the standards in DCC chapter 17.36. Condition 30 requires Applicant to submit a detailed traffic circulation plan prior to Final Master Plan approval. This criterion is met. 5. Fifth Assignment of Error: Confusion over Dimensional Standards Gould's fifth assignment of error related to minimum dimensional standards for lot sizes within the project. Although LUBA and the Court of Appeals rejected Gould's arguments and upheld the county finding on this issue, the LUBA Order contains a statement that may cause confusion in the future. As a result, Thornburgh requests the finding be modified to clarify that the specified minimum lot sizes do not at the same time prescribe maximum dimensions. Gould contended to LUBA that the County's findings in response to DCC 18.113.060(G)(1) "violated the subsection (G) requirement that no lot shall exceed a PDX/1 I2 1 88/138798/PLI/2327680.2 Board of County Commissioners February 29, 2008 Page 7 project average of 22,000 square feet, where the County allowed lots over twice that size and even greater than one acre." LUBA rejected that contention, LUBA Order, p. 30, but added: "However, to the extent the above quoted findings can be read to grant Thornburgh the `flexibility' to propose one acre or 1,500 square foot lots, even though the approved lot dimensions at Record 5642 would not permit lots that large or small, we do not believe that grant of flexibility is within the county's discretion under DCC 18.113.060(G)(1).[2] If Thornburgh can subdivide the property into whatever size lots it believes the terrain or high density housing type it desires might warrant, without first amending the CMP to allow such different lot sizes, the exercise by DCC 18.113.060(G)(1) is a waste of time at best. Because the above -quoted findings need not be read to authorize lot sizes other than the ones set out at Record 5642, without first amending the CMP to allow such larger or smaller lots, we do not read the findings in that way. The dimensional standards approved by the county appear at Record 5642. If Thornburgh later discovers that the approved eight different lot types do not offer sufficient flexibility, it may request a change in the CMP to allow additional lot dimensions." LUBA Order, pp. 30-31 (emphasis added). On appeal to the Court of Appeals, Thornburgh pointed out that the development code and the submission set minimum parcel sizes and do not require the adoption of maximum lot areas. The court agreed that LUBA's conclusion "was not necessary to the determination of Gould's precise assignment of error to LUBA." Gould, 216 Or App at 165, slip op 15. However, the court focused on the "lot width average" and speculated that it requires, for lots of 15,000 square feet or more in area, a "lot width average" of 100 feet that "may operate to limit the sizes of some of the lots." Id. at 164-65, slip op 15. The table in question is reproduced below: .......:»...e........_....4...n.._....._:.. �vL•__-...._.qLt.r2...:.:1r_.,...i_N..:_.:c.._..._rsE_.....:�....z.......;r;_h.-...r::s.__.� ., � M�<t.9-f=.� L- {.cus .__.�_'..r..u...x.:_6..'•:=_S._��.E.._.:t L.•Z:csaygkF� ]•t1 :sEr�::p1};•;.•%rE. - ....�__.__..��1110134_, r _.z=°z: ._.._...I......{_- u::�;..;;-Erc ^:a:•s:.__:._d._..34..,an.>r._a.._.....__,>,_e.r:__._._._..-y_..... 411' �: '�:i:.i7:i:}? ... .. Type H ITEM Type A Type 13 Type C• Type D Type E Type F Type G Lot Area (Minimum) 15,000 12,500 10,000 8,000 6,000 4,500 3,200 3,200 Lot Width Average (Minimum) 100 90 80 70 60 40 30 25 Lot Frontage — Regular 60 55 50 45 40 40 30 25 Lot Frontage — Cul-de-sac 50 40 40 35 35 30 25 25 Lot Coverage — Footprint (Maximum) 65% 65% 65% 70% 70% 75% 80% 80% Lot Setbacks Front 30 30 30 30 25 25 20 20 Back 25 25 25 20 20 15 15 15 Side 15 15 I0 10 10 5 5 0 Building Height* (Maximum) 26 26 26 26 26 26 26 26 *depends on location 2 The Residential Lot Standards are at BOP, Ex. 8, B -24a. SAT PDX/ 112188/ 138798/PLI/2327680.2 Board of County Commissioners February 29, 2008 Page 8 Since the table states a minimum lot width average for each type of lot, it does not establish any limitation on the size of any lots. However, this issue has apparently been confusing to both LUBA and the Court of Appeals. Thornburgh therefore urges the County to adopt the following additional, clarifying finding responsive to DCC 18.113.060(G)(1).3 DCC 18.113.060(G)(1) does not state a requirement for maximum lot dimensions other than the general requirement that "No lot for a single-family residence shall exceed an overall project average of 22,000 square feet in size," which LUBA has said (and the Board agrees) "prohibits lot sizes that would result in the `overall project average' exceeding 22,000 square feet." LUBA Opinion and Order, dated May 14, 2007, p. 30. The Board understands Applicant's "Residential Lot Standards" chart, Applicant's Burden of Proof Statement, dated February 24, 2005, Ex. 8, B-24, which shows residential lot standards, to state only minimum dimensional standards, as required by this code provision, and not to state any limitation on maximum dimensions unless expressly stated (as with the maximum lot coverage and the maximum building height (depending on location)). In particular, the minimum "lot width average" is understood to state that the average lot width shall not be less than the stated number under any type of lot (e.g., "Type A," "Type B," etc.), but does not state it cannot be more. The lot frontage and lot setback standards are also understood to be minimums, which do not establish maximum lot dimensions. This additional finding is important to establish even more clearly what Thornburgh and the Board understood to be the case all along and to avoid future challenges based on the notion that DCC 18.113.060(G)(1) requires or that Thornburgh has stated maximum lot dimensions. 3 As relevant, DCC 18.113.060(G)(1) states: "The minimum lot area, width, lot coverage, frontage and yard requirements and building heights otherwise applying to structures in underlying zones and the provisions of DCC 18.116 relating to solar access shall not apply within a destination resort. These standards shall be determined by the Planning Director or Hearing Body at the time of the CMP. In determining these standards, the Planning Director or Hearings Body shall find that the minimum specified in the CMP are adequate to satisfy the intent of the comprehensive plan relating to solar access, fire protection, vehicle access, visual management within landscape management corridors and to protect resources identified by LCDC Goal 5 which are identified in the Comprehensive Plan." (Emphasis added.) PDX/112188/ 138798/PLI/2327680.2 Board of County Commissioners February 29, 2008 Page 9 Court of Appeals Decision 6. Gould's Eleventh and Munson's Fourth Assignments of Error: DCC 18.113.070(D) and Wildlife Mitigation The Court of Appeals remanded on Gould's eleventh and Munson's fourth assignments of error, which were identical, concerning the process used to determine compliance with DCC 18.113.070(D). DCC 18.113.070(D) states, "Any negative impact on fish and wildlife resources will be completely mitigated so that there is no net loss or net degradation of the resource." In response to this criterion, after discussing the evidence in the record, the Board found, "It is feasible to mitigate completely any negative impact on identified fish and wildlife resources so that there is no net loss or net degradation of the resource." Decision, p. 61. The Board relied upon evidence in the record, including a Tetra Tech Wildlife Report, and on the future participation of the Oregon Department of Fish and Wildlife ("ODFW") and the BLM in devising a final wildlife mitigation plan pursuant to a Memorandum of Understanding between Thornburgh and the BLM. The Court of Appeals opinion notes two deficiencies in LUBA's (and the County's) decisions. First, "Without knowing the specifics of any required mitigation measures, there can be no effective evaluation of whether the project's effects on fish and wildlife resources will be `completely mitigated' as required by DCC 18.113.070(D)." Gould v. Deschutes County, 216 Or App 150, 159, slip op 8. Second, DCC 18.113.070(D) "requires that the content of the mitigation be based on `substantial evidence in the record,' not evidence outside the CMP record." Id. at 159-60, slip op 9. The court notes, "In this case, the particulars of the mitigation plan were to be based on a future negotiation, and not a county hearing process." Id. at 160, slip op 9. Later, the court states, "The county's decision, however, allows the mitigation plan justification to be established by future discussions among Thornburgh, ODFW, and BLM, and not on evidence submitted during the public hearings. That robs interested persons of the participatory rights allowed by the county ordinance." Id. at 163, slip op 13. In terms of appropriate procedure, the Court of Appeals notes, "[A] determination that a wildlife impact mitigation plan is `feasible' might be appropriate to justify postponement of any evaluation of the application of DCC 18.113.070(D) to the plan." The court then says, "The determination of feasibility, however, is not an adequate substitute for an assessment of whether a specific mitigation plan actually complies with the standard." Id. at 162, footnote 4, slip op 11. The court states: "The county might have, but did not, postpone determination of compliance with [DCC 18.113.070(D)] until the final master plan approval step and infuse that process with the same participatory rights as those allowed in the CMP approval hearing." Id. PDX/112188/138798/PLU2327680.2 Board of County Commissioners February 29, 2008 Page 10 As noted above, based on evidence in the record, the Board has already found that compliance with DCC 18.113.070(D) is feasible. Thornburgh supports the Board's decision to adopt a condition that defers review of the wildlife mitigation plan until the FMP is reviewed in a public process. Consistent with the Court of Appeals' decision, Thornburgh proposes the following additional condition: Applicant shall demonstrate compliance with DCC 18.113.070(D) by submitting a wildlife mitigation plan to the County as part of its application for Final Master Plan approval. The County shall consider the wildlife mitigation plan at a public hearing with the same participatory rights as those allowed in the CMP approval hearing. Conclusion It has been more than three years since Thornburgh filed its application for CMP approval. After a comprehensive process involving public hearings and review of an extensive record of evidence, the Board approved the application on May 10, 2006. The appeal process took more than 18 months for decisions from both LUBA and the Court of Appeals. Yet nothing that happened during the appeal process raises any doubt about the soundness of the Board's decision to approve the project. Of the numerous objections initially raised by project opponents, only the technical issues discussed above remain unresolved. Given this long history of prior proceedings, and the limited, technical nature of the issues now before you on remand, we urge the Board to adopt the suggested findings and conditions, which will allow the project to move forward in the manner originally contemplated in your May 10, 2006 decision to approve the CMP. The suggested findings and conditions are similar to what staff proposed in their December 31, 2007 Memorandum to the Board, but they contain additional detail intended to produce a clearer decision in light of possible future appeals. Thank you, again, for the opportunity to provide this argument in support of the application. Very truly yours, Peter Livingston PLI:mka cc: Kameron DeLashmutt Laurie E. Craghead Mark E. Pilliod Kevin Harrison Ruth Wahl Catherine Morrow PDX/112188/138798/PL1/2327680.2