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HomeMy WebLinkAboutDiscuss Whether to Hear AppealDeschutes 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 WORK SESSION of April 30, 2012 Please see directions for completing this document on the next page. DATE: April 25, 2012 FROM: Kevin Harrison CDD 541-385-1401 TITLE OF AGENDA ITEM: Consideration of whether to hear an appeal of the Hearings Officer's decision on DR-11-8, a ruling that the conceptual master plan for Thornburgh Destination Resort has been initiated. PUBLIC HEARING ON THIS DATE? No. BACKGROUND AND POLICY IMPLICATIONS: The Hearings Officer issued a decision in file no. DR-11-8 that the conceptual master plan for Thornburgh Destination Resort has been initiated because the conditions of approval have been substantially exercised and fully complied with. This means that the approval of the conceptual master plan cannot expire. The appellant disagrees with the Hearings Officer's decision, citing five assignments of error and requesting de novo review by the Board. The appellant's arguments are detailed in file no. A-12-1 and summarized in the attached memo from staff. FISCAL IMPLICATIONS: None RECOMMENDATION & ACTION REQUESTED: The Board should determine whether or not to hear the appeal and render its decision by adopting an appropriate Order. ATTENDANCE: Kevin Harrison, Principal Planner DISTRIBUTION OF DOCUMENTS: Kevin Harrison, CDD lIiii II Community Development Department Planning Division Building Safety Division Environmental Soils Division P.O. Box 6005 117 NW Lafayette Avenue Bend, Oregon 97708-6005 (541)388-6575 FAX (541)385-1764 http://www.co.deschutes.or.us/cdd/ MEMORANDUM To: Deschutes County Board of Commissioners From: Kevin Harrison, Principal Planner Date: April 25, 2012 Re: Appeal of Hearings Officer's decision on DR-11-8 (Loyal Land, LLC). File no. A-12-1 (Gould). BACKGROUND The applicant, Loyal Land, LLC, filed an application for a declaratory ruling to determine whether the conceptual master plan for Thornburgh Destination Resort had been initiated. A public hearing was conducted on February 7,2012 and the record closed on March 13,2012. The Hearings Officer issued a decision on April 10, 2012, finding that the conceptual master plan had been initiated because the conditions of approval had been, ... "substantially exercised and fully complied with". A timely appeal was filed on April 23, 2012. The 150-day time limit does not apply to this application per DCC 22.20.040(D)(4). The staff recommendation was for approval of the declaratory ruling. Copies of the staff report and Hearing's Officer's decision are attached for your review. APPEAL The notice of appeal describes five assignments of error. These are summarized below, with references to those pages within the decision where the Hearings Officer addressed the issue. 1. The Hearings Officer erred in determining that Loyal Land, LLC could make the application for the declaratory ruling. (See Hearings Officer's decision pages 4-6; 9-11) 2. The Hearings Officer erred in finding that County Code instead of OAR 660-033-0140 controls when calculating the duration of land use approvals. (See Hearings Officer's decision pages 13-17) 3. The Hearings Officer erred in determining that the use was initiated during the relevant two-year period. (See Hearings Officer's decision pages 16-17) 4. The Hearings Officer erred in deciding that the development has been initiated and that the conditions of permit or approval have been substantially exercised. (See Hearings Officer's decision pages 18-32) Qutllity Services Perfonned with Pride 5. The Hearings Officer erred in not addressing that failure to comply with conditions of approval is the fault of Thornburgh Resort and Loyal Land, LLC. (See Hearings Officer's decision page 32) As noted above, the 150-day time limit is not an issue in this case. The appellant requests de novo review. The Board should review the notice of appeal to determine that it is sufficiently specific so that the Board is able to respond to and resolve each issue in dispute (See: DCC 22.32.020(A». If the Board decides to hear the appeal, the review shall be on the record unless the Board decides to hear the appeal de novo because it finds the substantial rights of the parties would be significantly prejudiced without de novo review and it does not appear that the request is necessitated by failure of the appellant to present evidence that was available at the time of the previous review; or whether in its sole judgment a de novo hearing is necessary to fully and properly evaluate a significant policy issue relevant to the proposed land use action (See: DCC 22.32.027(B)(2)(c) and (d». The Board may, at its discretion, determine that it will limit the issues on appeal to those listed in the notice of appeal or to one or more specific issues from among those listed on the notice of appeal (See: DCC 22.32.027(B)(4». DECLINING REVIEW If the Board decides that the Hearings Officer's decision shall be the final decision of the county, then the Board shall not hear the appeal and the party appealing may continue the appeal as provided by law. The decision on the land use application becomes final upon the mailing of the Board's decision to decline review. In determining whether to hear an appeal, the Board may consider only: 1. The record developed before the Hearings Officer; 2. The notice of appeal; and 3. Recommendations of staff (See: DCC 22.32.035(B) and (D». STAFF RECOMMENDATION Staff does not have a recommendation for the Board on this matter. It is staff's opinion that the substantial rights of the parties would not be prejudiced by declining review as a full and fair hearing was granted before the Hearings Officer. Staff does point out that, due to operator error, a recording of the hearing before the Hearings Officer does not exist. The appellant notes that there are substantial legal issues involved in this case, including interpretations of state law on which the Land Use Board of Appeals (LUBA) will have to rule. As a result, even if the Board decides to hear the appeal, it will be necessary for LUBA to ultimately interpret state law. However, if the Board agrees with the decision then hearing the appeal and rendering a decision will provide deference to the county's decision where it interprets county code. SCHEDULE This item is scheduled for the Board's work session on May 2,2012. Please feel free to contact me with any questions or concerns. Community Development Degartment Planning Division 117 NW Lafayette Avenue. Bend. DR 97701-1925 (541]388-6575 -Fax (541]3B5-1764 http://www.deschutes.org/cdd APPEAL APPLICA TION FEE: ____ EVERY NOTICE OF APPEAL SHALL INCLUDE: 1. A statement describing the specific reasons for the appeal. 2. If the Board of County Commissioners is the Hearings Body, a request for review by the Board stating the reasons the Board should review the lower decision. 3. If the Board of County Commissioners is the Hearings Body and de novo review is desired, a request for de novo review by the Board, stating the reasons the Board should provide the de novo review as provided in Section 22.32.027 of Title 22. 4. If color exhibits are submitted, black and white copies with captions or shading delineating the color areas shall also be provided. It is the responsibility of the appellant to complete a Notice of Appeal as set forth in Chapter 22.32 of the County Code. The Notice of Appeal on the reverse side of this form must include the items listed above. Failure to complete all of the above may render an appeal invalid. Any additional comments should be Included on the Notice of Appeal. Staff cannot advise a potential appellant as to whether the appellant is eligible to file an appeal (DCC Section 22.32.010) or whether an appeal Is valid. Appellants should seek their own legal advice concerning those issues. Appellant's Name (print): A. ,'-'oil -:;z.. d 6. ., AI!J A::t,.\ .. •• G d ..., \ d Phone: 1.W :311 ~ I ~~3 AHol'ofI"., O~-.)1 0""""7 Mailing Address: 123'1 101 N w v,' (.ltlwe!1 (l..\Jc City/State/Zip: __0""""""=,,,_J~~..."o""'I2=-.... <f'1?..;..;...;:O"""1_ Land Use Application Being Appealed: ___..l:'U::;..a=-,...;.I.:..I----=-g______--::--::-_-=-=:----=.",....".~_.::_"..."...--- ?'!fOQ, 'lefor. ? 'faa, 'Boat) Property Description: Township~Range I~ Section.___TaxLot Goaa, !Sag! !'iOa;:2, '?'1oa, 1')01 Appellant's Signature: ?---s::>uQ 'j AHa .....,,.. Jot A!.,,,,g:'C" C-.q,..rd EXCEPT AS PROVIDED IN SECTION 22.32.024, APPELLANT SHALL PROVIDE A COMPLETE TRANSCRIPT OF ANY HEARING APPEALED, FROM RECORDED MAGNETIC TAPES PROVIDED BY THE PLANNING DIVISION UPON REQUEST (THERE IS A $5.00 FEE FOR EACH MAGNETIC TAPE RECORD). , APPELLANT SHALL SUBMIT THE TRANSCRIPT TO THE PLANNING DIVISION NO LATER THAN THE CLOSE OF THE DAY FIVE (5) DAYS PRIOR TO THE DATE SET FOR THE DE NOVO HEARING OR, FOR ON-THE-RECORD APPEALS, THE DATE SET FOR RECEIPT OF WRITTEN RECORDS. (oyer) 7/09 APPEAL BY ANNUNZIATA "NUNZIE" GOULD OF HEARINGS OFFICER DECISION OF APRIL 10,2012, ON DR-1l-8 (LOYAL LAND, LLC) Annunziata "Nunzie" Gould requests de novo review by the Board of Commissioners of the above Hearings Officer's decision for the reasons discussed below. Appellant incorporates by reference her attached memoranda to the Hearings Officer, including the 217/12 memorandum (hereinafter "217 Memo"), the 2121112 memorandum (hereinafter "2121 Memo") and the 316/12 memorandum (hereinafter "316 Memo"). The Declaratory Ruling concerned whether the Thornburgh Resort had "initiated use" of the Conceptual Master Plan ("CMP") conditional use approval or whether the CMP permit expired because use had not be initiated in the two-year period following approval of the permit. The Declaratory Ruling Applicant is not Thornburgh Resort but is instead "Loyal Land, LLC" which has foreclosed on part of the property. 1. The Hearings Officer erred in deciding that Loyal Land may bring this Declaratory Ruling action though it is not the holder of the CMP permit and does not own all the land subject to the CMP approval. See Appellant's arguments on this issue at 217 Memo, pp. 1 and 4-8, and the 3/6 Memo, p. 4. 2. The Hearings Officer erred in ruling that the County Code instead of OAR 660-033-0140 controls here and that there is thus a tolling period for appeals, so the two-year period does not run until all appeals are resolved. See Appellant's arguments on this issue at 217 Memo, pp. 2 and 9-11, the 2/21 Memo, pp. 1-2, and the 3/6 Memo, pp. 5-6. 3. The Hearings Officer erred in determining that the initiation of use occurred during the relevant two-year period, though nothing was essentially done during whatever two-year period is deemed relevant. See Appellant's arguments on this issue at 217 Memo, p. 11, the 2121 Memo, pp. 3-5, and the 3/6 Memo, p. 6. 4. The Hearings Officer erred in deciding that the "development action" has been initiated and that the conditions of permit or approval have been substantially exercised. See Appellant's arguments on this issue at 217 Memo, pp. 2-3 and 11-17, the 2/21 Memo, pp. 5-7, and the 3/6 Memo, pp. 6-8. 5. The Hearings Officer also erred in not addressing that failure to comply with all the conditions is the fault ofThomburgh Resort and the Applicant and that Loyal Land cannot assume Thornburgh Resort's position under the CMP which has been fundamentally altered by the Loyal Land takeover and declaratory ruling application. See Appellant's arguments on this issue at 217 Memo, pp. 3-4 and 17-20, the 2/21 Memo, p. 9, and the 3/6 Memo, pp. 8-9. DE NOVO REVIEW Appellant requests de novo review by the Board where her substantial rights would be significantly prejudiced without de novo review. The Hearings Officer's decision has failed to address key factual issues involving the conduct of Thornburgh Resort and Loyal Land which have undermined the CMP approval and it would be important for the Board to hear the evidence first hand to understand and correct the errors. It is also the case that there are substantial legal issues involved here, including interpretations of state law on which the Land Use Board of Appeals will have to rule. LUBA will have to decide whether "acknowledgement" of the County Code means that OAR 660-033-0140 is not applicable (though the Code is inconsistent with it) and whether the rules of Division 033 are inapplicable because Oregon law has supposedly exempted destination resorts from them. As a result, even if the Board of County Commissioners decides to address this appeal, it will be necessary for LUBA to ultimately interpret state law. DATED this 23 rd day of April, 2012. Respectfully submitted, fPAULD.DEWEY Attorney for Nunzie Gould cc: Steven L. Pfeiffer, Esq. David J. Petersen, Esq. Gary Underwood Scharff, Esq. Loyal Land, LLC DR-11-8 Page 1 DECISION OF DESCHUTES COUNTY HEARINGS OFFICER FILE NUMBER: DR-11-8 APPLICANT: Loyal Land, LLC 27333 N. 96 th Way Scottsdale, Arizona 85262 PROPERTY OWNERS: Loyal Land, LLC (Tax Lots 5000, 5001, 5002, 7700, 7701, 7800 and 7900) Agnes DeLashmutt 4048 N.W. Xavier Redmond, Oregon 97756 (Tax Lot 8000) APPLICANT’S ATTORNEY: Steven L. Pfeiffer, Attorney at Law Perkins Coie 1120 N.W. Couch Street, Tenth Floor Portland, Oregon 97209-4128 OPPONENTS’ ATTORNEYS: David J. Petersen Tonkin Torp LLP 1600 Pioneer Tower 888 S.W. Fifth Avenue Portland, Oregon 97204 Attorney for Kameron DeLashmutt Gary Underwood Scharff 1300 American Bank Building 621 S.W. Morrison Street Portland, Oregon 97205 Attorney for Thornburgh Resort Company, LLC Paul D. Dewey 1539 N.W. Vicksburg Avenue Bend, Oregon 97701 Attorney for Nunzie Gould REQUEST: The applicant requests a declaratory ruling that the use approved through the Thornburgh Destination Resort conceptual master plan has been initiated. STAFF REVIEWER: Kevin Harrison, Principal Planner Loyal Land, LLC DR-11-8 Page 2 HEARING DATE: February 7, 2012 RECORD CLOSED: March 13, 2012 I. APPLICABLE STANDARDS AND CRITERIA: A. Title 18 of the Deschutes County Code, the Deschutes County Zoning Ordinance 1. Chapter 18.16, Exclusive Farm Use Zones * Section 18.16.035, Destination Resorts 2. Chapter 18.113, Destination Resorts Zone (DR) * Section 18.113.040, Application Submission * Section 18.113.050, Requirements for Conditional Use Permit and Conceptual Master Plan Applications * Section 18.113.060, Standards for Destination Resorts * Section 18.113.075, Imposition of Conditions * Section 18.113.080, Procedure for Modification of a Conceptual Master Plan * Section 18.113.090, Requirements of Final Master Plan B. Title 22 of the Deschutes County Code, the Development Procedures Ordinance 1. Chapter 22.08, General Provisions * Section 22.08.010, Application Requirements 2. Chapter 22.20, Review of Land Use Action Applications * Section 22.20.040, Final Action in Land Use Actions 3. Chapter 22.24, Land Use Action Hearings * Section 22.24.080, Standing 4. Chapter 22.28, Land Use Action Decisions * Section 22.28.010, Decision Loyal Land, LLC DR-11-8 Page 3 5. Chapter 22.36, Limitation on Approvals * Section 22.36.010, Expiration of Approval * Section 22.36.020, Initiation of Use * Section 22.36.050, Transfer of Permit 6. Chapter 22.40, Declaratory Ruling * Section 22.40.010, Availability of Declaratory Ruling * Section 22.40.020, Persons Who May Apply * Section 22.40.030, Procedures * Section 22.40.040, Effect of Declaratory Ruling * Section 22.40.050, Interpretation II. FINDINGS OF FACT: A. Location: The subject property – the Thornburgh Destination Resort -- is comprised of Tax Lots 5000, 5001, 5002, 7700, 7701, 7800, 7801, 7900 and 8000 on Deschutes County Assessor’s Map 15-12. B. Zoning and Plan Designation: The subject property is zoned Exclusive Farm Use– Sisters/Cloverdale Subzone (EFU-SC) and is within the Destination Resort (DR) Overlay Zone. The property is designated Agriculture by the Deschutes County Comprehensive Plan. C. Site Description: The subject property is approximately 1,970 acres in size and has vegetation consisting of juniper woodland. The property covers the south and west portions of the geologic feature know as Cline Buttes. The property currently is developed with three dwellings and a barn, access to which is from Cline Falls Highway. The property is engaged in farm use consisting of low-intensity livestock grazing. D. Surrounding Zoning and Land Uses: The subject property is surrounded by public land primarily owned and managed by the Bureau of Land Management (BLM). A portion of the public land is owned and managed by the Oregon Department of State Lands (DSL). The Eagle Crest Destination Resort is located near the northern portion of the subject property. E. Procedural History: The Thornburgh Destination Resort has a long history. The conceptual master plan (CMP) application submitted by the Thornburgh Resort Company, LLC (TRC) was denied by former Deschutes County Hearings Officer Anne Corcoran Briggs by a decision dated November 9, 2005 (CU-05-20). That decision was appealed by Nunzie Gould (Gould) and Steve Munson (Munson) to the Deschutes County Board of Commissioners (“board”) (A-05-16). By a decision dated May 10, 2006, the board approved the CMP. Gould and Munson appealed the board’s decision to the Land Use Board of Appeals (LUBA) (Nos. 2006-100 and 101). LUBA remanded the board’s decision on May 14, 2007. Gould v. Deschutes County , 54 Or LUBA 2005 Loyal Land, LLC DR-11-8 Page 4 (2007). Gould and Munson appealed LUBA’s decision to the Court of Appeals seeking a broader remand. (A135856). On November 7, 2007, the Court of Appeals reversed and remanded LUBA’s decision. Gould v. Deschutes County , 216 Or App 150, 171 P3d 1017 (2007). The result of this decision was that the board’s decision in CU-05-20 approving the CMP was remanded to the county for further proceedings. On April 15, 2008 the board issued a decision on remand again approving the CMP (Document No. 2008-151). Gould and Munson again appealed the board’s decision to LUBA on May 6, 2008 (No. 2008-068). On September 11, 2008, LUBA affirmed the board’s decision. Gould v. Deschutes County , 57 Or LUBA 403 (2008). Gould and Munson appealed LUBA’s decision to the Court of Appeals (A140139). On April 22, 2009 the Court of Appeals affirmed LUBA’s decision. Gould v. Deschutes County , 227 Or App 601, 206 P3d 1106 (2009). Gould and Munson appealed the Court of Appeals’ decision to the Oregon Supreme Court (S057541). On October 9, 2009, the Supreme Court denied review. Gould v. Deschutes County , 347 Or 258, 218 P3d 540 (2009). On December 9, 2009 the Court of Appeals issued its appellate judgment. On December 15, 2009 LUBA issued its notice of appellate judgment. Following approval of the CMP, on August 11, 2007 TRC submitted a final master plan (FMP). On April 21, 2008, TRC submitted an amended application for FMP approval. (M-07-2/MA-08-6). By a decision dated October 8, 2008, Hearings Officer Briggs approved the FMP. Gould and Munson appealed that decision to LUBA (No. 2008-203). On September 9, 2009 LUBA remanded the county’s decision for further proceedings. Gould v. Deschutes County , 59 Or LUBA 435 (2009). TRC appealed LUBA’s decision to the Court of Appeals (A143430). On February 24, 2010 the Court of Appeals affirmed LUBA’s decision. Gould v. Deschutes County , 233 Or App 623, 227 P3d 758 (2010). LUBA issued its notice of appellate judgment on August 17, 2010, remanding the county’s decision. As of the date of this decision, the FMP remand had not been initiated and therefore no further action on the FMP has been taken. The subject declaratory ruling application was submitted on November 1, 2011 (DR-11- 8). By a letter dated November 8, 2011 the Planning Division advised the applicant that the application was incomplete. The applicant submitted the missing information on December 22, 2011 and the application was accepted as complete on that date. Under Section 22.20.040(D)(4) of the county’s development procedures ordinance, because the declaratory ruling seeks an initiation of approval determination, the application is not subject to the 150-day period for issuance of a final local land use decision. A public hearing on the application was held on February 7, 2012. At the hearing, the Hearings Officer received testimony and evidence, left the written evidentiary record open through March 6, 2012, and allowed the applicant through March 13, 2012 to submit final argument pursuant to ORS 197.763. The applicant submitted its final argument on March 13, 2012 and the record closed on that date. F. Ownership History: As discussed above, the property comprising the Thornburgh Destination Resort consists of eight tax lots. At the time the resort received CMP and FMP approval, seven of those tax lots (TL 5000, 5001, 5002, 7700, 7701, 7800 and 7900) Loyal Land, LLC DR-11-8 Page 5 were owned by TRC and the eighth tax lot (TL 8000) was owned by Agnes DeLashmutt. The record indicates the applicant acquired the seven tax lots owned by TRC through foreclosure. A Trustee’s Deed, a copy of which is included in the record as Exhibit B to the applicant’s burden of proof, was recorded on September 14, 2011 conveying the property owned by TRC from Fidelity National Title Insurance Company to the applicant. The deed includes the following recitals: “Parker Group Investments, LLC, an Oregon Limited Liability Company and Thornburgh Resort Company, LLC, an Oregon Limited Liability Company, as to Parcels 1 through 6 and John E. Evenson and Barbara L. Evenson, each as to an undivided 50% interest, as to an undivided 49% interest as to Parcel 6 only, as grantor, executed and delivered to Amerititle as the original trustee, for the benefit of Sterling Savings Bank (‘Sterling’), as the original beneficiary, a certain trust deed dated November 19, 2007, duly recorded on November 26, 2007, as Instrument No. 2007-61125, in the mortgage records of Deschutes County, Oregon, and thereafter re-recorded on December 5, 2007, as Instrument No. 2007- 62677, in the mortgage records of Deschutes County, Oregon (the ‘Deed of Trust’). In said Deed of Trust the real property therein and hereinafter described was conveyed by said grantor to said trustee to secure, among other things, the performance of certain obligations of the grantor to the said beneficiary. The said grantor thereafter defaulted in its performance of the obligations secured by said Deed of Trust as stated in the notice of default hereinafter mentioned and such default still existed at the time of the sale hereinafter described.” The Trustee’s Deed goes on to describe the foreclosure proceedings that occurred following the notice of default. In a letter dated February 3, 2012, TRC through its attorney Gary Scharff argues that notwithstanding the Trustee’s Deed, the applicant does not own the aforementioned seven tax lots for the following reasons: “My client is of the view that the August 31, 2011 foreclosure sale was illegal. On August 30, 2011, in anticipation of that sale, we commenced a legal action in Deschutes County Circuit Court, Case No. 11CV0655, seeking a judicial decree quieting title to the subject property in TRC. A lis pendens referring to that lawsuit and TRC’s claim to title was recorded in the Official Records of Deschutes County on August 30, 2011. The lawsuit remains pending in Deschutes County Circuit Court at this time.” The applicant’s attorney Steven Pfeiffer responded in a letter dated February 7, 2012 as follows: “First, the mere filing of a legal claim does not indicate that it is Loyal Land, LLC DR-11-8 Page 6 meritorious. This is particularly the case in quiet title matters, which are often rooted in contentious disputes among the parties. Second, the Applicant notes that although TRC had over 60 days to contest the foreclosure, TRC filed the claim on the last possible day and never sought an injunction or temporary restraining order to prevent or stay the foreclosure. For these reasons, the Hearings Officer should find that there is no basis to conclude the foreclosure is invalid or that TRC has any remaining ownership interest in the property.” The Hearings Officer agrees with the applicant’s analysis. In the absence of a stay or injunction from the circuit court, neither the litigation nor the lis pendens affects my ability to consider the declaratory ruling application submitted by the applicant. G. Request: The applicant requests a declaratory ruling that the land use approved through the Thornburgh Destination Resort CMP – i.e., the resort -- has been initiated. The applicant contemporaneously applied for an extension of the CMP (E-11-56) but asked that the application be held in abeyance pending resolution of the subject declaratory ruling application. The extension request is not before the Hearings Officer. H. Public/Private Agency Notice: The record indicates the Planning Division did not send notice of the applicant’s proposal to any public or private agencies. I. Public Notice and Comments: The Planning Division mailed individual written notice of the applicant’s proposal and the public hearing to the owners of record of all property located within 750 feet of the subject property. In addition, notice of the public hearing was published in the Bend “Bulletin” newspaper, and the subject property was posted with a notice of proposed land use action sign. As of the date the record in this matter closed, the county had received letters, electronic mail messages, and legal memoranda from opponents DeLashmutt, TRC and Gould. In addition, opponents DeLashmutt and Gould appeared at the public hearing through their attorneys. J. Lot of Record: As part of the 2005 approval of the Thornburgh Destination Resort conceptual master plan (CU-05-20) Hearings Officer Briggs found the subject property consists of several legal lots of record as previously determined in county files LR-91-56, LR-98-44, MP-79-159, CU-79-159 and CU-91-68. III. CONCLUSIONS OF LAW: A. Title 22 of the Deschutes County Code, the Development Procedures Ordinance 1. Chapter 22.40, Declaratory Ruling a. Section 22.40.010, Availability of Declaratory Ruling A. Subject to the other provisions of DCC 22.40.010, there shall Loyal Land, LLC DR-11-8 Page 7 be available for the County’s comprehensive plans, zoning ordinances, the subdivision and partition ordinance and DCC Title 22 a process for: * * * 3. Determining whether an approval has been initiated or considering the revocation of a previously issued land use permit, quasi-judicial plan amendment or zone change; * * * Such a determination or interpretation shall be known as a “declaratory ruling” and shall be processed in accordance with DCC 22.40. In all cases, as part of making a determination or interpretation the Planning Director (where appropriate) or Hearings Body (where appropriate) shall have the authority to declare the rights and obligations of persons affected by the ruling. (Emphasis added.) FINDINGS: The applicant requests a declaratory ruling to determine whether the Thornburgh Destination Resort CMP approved by CU-05-20 has been initiated. As discussed in the Findings of Fact above, opponents DeLashmutt and TRC appeared in these proceedings through oral testimony at the public hearing and through written materials submitted before and after the hearing. Nevertheless, they assert they are not parties to this proceeding because they have not taken a position on the merits of the applicant’s declaratory ruling request.1 In the alternative, they argue that if they are parties, their party status is limited to the issue of whether the applicant can apply for a declaratory ruling. 2 In either case, DeLashmutt and TRC argue that, notwithstanding the above-underscored code language, they are not bound by the Hearings Officer’s decision on the merits. They urge me to include a finding to that effect in my decision. The applicant responds, and I agree, that it is neither necessary nor appropriate for me to include such a finding. Whether and to what degree DeLashmutt and TRC are bound by my decision can be determined in a future proceeding if/when one of them submits a land use application, or takes other action, that may be inconsistent with my decision. 1 DeLashmutt and TRC are correct that the term “party” is not defined in Title 22. The Hearings Officer notes Section 22.24.08, concerning standing, states in relevant part: “Any person appearing on the record at a hearing (including appeals) or presenting evidence in conjunction with an administrative action or hearing shall have standing and shall be a party.” (Emphasis added.) 2 Opponent Gould notes DeLashmutt’s February 21, 2012 memorandum presents arguments on the merits of the declaratory ruling request. However, the memorandum states DeLashmutt presented this discussion for another purpose. Loyal Land, LLC DR-11-8 Page 8 B. A declaratory ruling shall be available only in instances involving a fact-specific controversy and to resolve and determine the particular rights and obligations of particular parties to the controversy. Declaratory proceedings shall not be used to grant an advisory opinion. Declaratory proceedings shall not be used as a substitute for seeking an amendment of general applicability to a legislative enactment. FINDINGS: The Hearings Officer finds the applicant’s request for a declaratory ruling is fact- specific in that it requests a determination of whether the CMP for Thornburgh Destination Resort has been initiated. I find the applicant is neither requesting an advisory opinion nor seeking an amendment to a legislative enactment. C. Declaratory rulings shall not be used as a substitute for an appeal of a decision in a land use action or for a modification of an approval. In the case of a ruling on a land use action a declaratory ruling shall not be available until six months after a decision in the land use action is final. FINDINGS: The Hearings Officer finds the subject declaratory ruling request is not a substitute for an appeal inasmuch as the appeal period for the CMP approval in CU-05-20 expired several years ago, and the applicant is not challenging the validity of the CMP approval. Gould argues the declaratory ruling in effect is an unlawful attempt to modify the original CMP approval because the applicant does not own all of the property subject to the CMP, and opponents assert the applicant also does not own or control all of the required elements of the destination resort. I disagree. I find the requested declaratory ruling is limited to the question of whether the approved CMP has been initiated. As discussed in the findings below, under Section 18.113.040 of the DR Zone, destination resort development occurs through a three-step process of which CMP approval is the first step. Section 18.113.050 states the CMP “provides the framework for development of the destination resort.” Actual development of a destination resort requires approval of an FMP as well as subdivision plats, site plans, etc. Whether and to what extent the applicant may actually proceed to develop the destination resort through the FMP and the subdivision plat and site plan stage will be determined at the time such development is proposed. D. The Planning Director may refuse to accept and the Hearings Officer may deny an application for a declaratory ruling if: 1. The Planning Director or Hearings Officer determines that the question presented can be decided in conjunction with approving or denying a pending land use application or if in the Planning Director or Hearing Officer’s judgment the requested determination should be made as part of a decision on an application for a quasi-judicial plan amendment or zone change or a land use permit not yet filed; or Loyal Land, LLC DR-11-8 Page 9 2. The Planning Director or Hearings Officer determines that there is an enforcement case pending in district or circuit court in which the same issue necessarily will be decided as to the applicant and the applicant failed to file the request for a declaratory ruling within two weeks after being cited or served with a complaint. The Planning Director or Hearings Officer’s determination to not accept or deny an application under DCC 22.40.010 shall be the County’s final decision. FINDINGS: The Hearings Officer finds the question presented through this declaratory ruling proceeding cannot be decided in conjunction with a pending land use permit because none exists. I also find the question cannot be resolved through a plan amendment, zone change or land use permit application not yet filed because the question presented does not implicate the county’s comprehensive plan or zoning ordinance, and, as discussed below, declaratory ruling proceedings are intended to provide a mechanism through which the status of a previously issued land use approval is determined. Finally, the record shows no enforcement case is pending. b. Section 22.40.020, Persons Who May Apply A. DCC 22.08.010(B) notwithstanding, the following persons may initiate a declaratory ruling under DCC 22.40: 1. The owner of a property requesting a declaratory ruling relating to the use of the owner’s property. 2. In cases where the request is to interpret a previously issued quasi-judicial plan amendment, zone change or land use permit, the holder of the permit; or 3. In all cases arising under DCC 22.40.010, the Planning Director. FINDINGS: The referenced Section 22.08.010 establishes general requirements for filing land use applications. Paragraph (A) of that section defines “property owner” as “the owner of record or the contract purchaser and does not include a person or organization that holds a security interest.” Paragraph (B) authorizes land use applications to be submitted “by the property owner or a person who has written authorization from the property owner as defined herein to make the application.” Section 22.40.020(A) expands the list of applicants authorized to submit a declaratory ruling application beyond those identified in Section 22.08.010 to include: (1) “the property owner” when the declaratory ruling relates to “the use of the owner’s property;” (2) “the holder of the permit” in cases where the declaratory ruling requests an interpretation of a previously issued land use permit; and (3) the Planning Director “in all cases.” The Hearings Officer finds the clear Loyal Land, LLC DR-11-8 Page 10 intent of this broad authorization, combined with the extensive list of subjects for declaratory rulings under Section 22.40.010(A), is to provide an expansive rather than restrictive process for resolving issues and “status situations” in a timely manner. It is in this context that I review the arguments concerning the applicant’s authority to request a declaratory ruling. The applicant argues it was authorized to submit the declaratory ruling application under both Subsections (A)(1) and (2) of Section 22.40.020. Each of these subsections is addressed separately in the findings below. (1) The owner of a property requesting a declaratory ruling relating to the use of the owner’s property. (Emphasis added.) The applicant is the owner of Tax Lots 5000, 5001, 5002, 7700, 7701, 7800, 7801 and 7900, which comprise the majority of the Thornburgh Destination Resort property. The remaining resort property is Tax Lot 8000 owned by Agnes DeLashmutt. TRC and DeLashmutt argue that because the applicant does not own all of the resort property it cannot be considered “the owner,” and that a declaratory ruling application must be filed by all property owners. The Hearings Officer finds the plain language of this subsection does not impose such a requirement. Rather, it authorizes the owner of “a” property to request a declaratory ruling relating to the use of “the owner’s property.” I find the applicant was authorized by this language to request a declaratory ruling as to the status of the Thornburgh CMP because the applicant is the owner of a property subject to the CMP, and the CMP approval relates to and affects “the use of” the applicant’s property – i.e., its potential development with a destination resort. Assuming for purposes of discussion that the language of Subsection (1) is not dispositive, the Hearings Officer finds the applicant was authorized to submit the declaratory ruling without TRC’s or DeLashmutt’s consent under the analysis in my decision in Smith (A-10-2, NUV-09- 1). That case involved an appeal from an administrative decision verifying that a replacement bridge built across Wychus Creek was a valid nonconforming use. The bridge was constructed on two parcels of property in separate ownership and on an access easement crossing multiple properties. The applicant owned one of the parcels and was a holder of the access easement crossing the property of appellant, the other property owner. Appellant did not consent to the application and objected to the bridge. The Hearings Officer found in Smith that two questions were presented concerning the applicant’s authority to file the application under the general application provisions in Section 22.08.010(A): (1) whether the applicant was a “property owner” as to appellant’s property; and (2) whether in the case of multiple property owners, all owners are required to sign or consent to the filing of application. As to the first question, I found the applicant was a “property owner” of appellant’s property because he was a holder of the access easement crossing appellant’s property. As to the second question, I analyzed the text and context of the phrase “the property owner” as well as relevant case law, and concluded that because “property owner” is modified by the word “the” rather than the word “all,” the word “the” is synonymous with “a” or “an.” Accordingly, I held that where there are multiple property owners the application can be submitted by “a” property owner. Loyal Land, LLC DR-11-8 Page 11 Opponents argue my decision in Smith is not applicable to the subject application because the applicant there had an ownership interest in both parcels on which the bridge was constructed. The applicant responds that my reasoning in Smith is relevant because both cases involve multiple property owners, and the operative language – “the property owner” – is the same in Sections 22.08.010 and 22.40.020. The Hearings Officer concurs with the applicant. I find no reason to interpret “the property owner” in Section 22.40.020(A) more narrowly than the same language in Section 22.08.010, particularly in light of the purpose of declaratory rulings. For the foregoing reasons, the Hearings Officer finds the applicant, as the owner of property within the Thornburgh Destination Resort, was authorized to submit the subject declaratory ruling application relating to use of its property under the Thornburgh Destination Resort CMP. (2) In cases where the request is to interpret a previously issued quasi-judicial plan amendment, zone change or land use permit, the holder of the permit; * * *. (Emphasis added.) Section 22.36.050(A) of the county’s procedures ordinance states “a land use permit shall be deemed to run with the land and be transferrable to applicant’s successors in interest.” The applicant is TRC’s successor in interest as the result of a foreclosure and trustee’s deed. Accordingly, the Hearings Officer finds the approved CMP runs with all eight tax lots comprising the Thornburgh resort, including those owned by the applicant. Opponents argue the applicant is not “the holder of the permit” because it does not own all of the land subject to the permit or all required resort elements. The applicant responds that where there are multiple property owners there also are multiple permit holders, any one of which can apply for a declaratory ruling requesting interpretation of the permit. The Hearings Officer agrees with the applicant. Again, given the broad nature of the declaratory ruling authorization, I find it would not be appropriate to interpret the word “the” in the phrase “the holder of the permit” in Subsection (2) of this section more narrowly than I have interpreted the same word in phrase “the property owner” in Subsection (1). I find such a restrictive reading of this term would be inconsistent with the clear purpose of declaratory rulings by allowing one owner within a permitted or approved development to thwart the efforts of any and all other owners to clarify the effect of the permit or approval on their property. Opponents also argue the applicant should not be allowed to apply for a declaratory ruling on the Thornburgh CMP because the applicant ultimately will not be able to develop the resort without TRC’s consent and cooperation. The Hearings Officer finds this argument is premature. As discussed above, destination resort development is a three-step process. The question presented by this declaratory ruling application is whether the use permitted by the first step – the CMP – has been initiated. And the only question before me under Section 22.40.020 is whether the applicant is authorized to apply for that declaration. I have found that it is. For the foregoing reasons, the Hearings Officer finds that as both a property owner and a holder of the CMP for the Thornburgh Destination Resort, the applicant was authorized to submit an application for a declaratory ruling that the resort has been initiated. B. A request for a declaratory ruling shall be initiated by filing an Loyal Land, LLC DR-11-8 Page 12 application with the planning division and, except for applications initiated by the Planning Director, shall be accompanied by such fees as have been set by the Planning Division. Each application for a declaratory ruling shall include the precise question on which a ruling is sought. The applicant shall set forth whatever facts are relevant and necessary for making the determination and such other information as may be required by the Planning Division. FINDINGS: The record indicates the applicant filed the required declaratory ruling application and paid the required fee. The application and supporting materials set forth both the question posed by the applicant – i.e., whether the use approved under CU-05-20 has been initiated – and facts relevant to answering that question. c. Section 22.40.030, Procedures Except as set forth in DCC 22.40 or in applicable provisions of a zoning ordinance, the procedures for making declaratory rulings shall be the same as set forth in DCC Title 22 for land use actions. Where the Planning Division is the applicant, the Planning Division shall bear the same burden that applicants generally bear in pursuing a land use action. FINDINGS: The subject declaratory ruling application has been processed in accordance with the requirements of Title 22. d. Section 22.40.040, Effect of Declaratory Ruling A. A declaratory ruling shall be conclusive on the subject of the ruling and bind the parties thereto as to the determination made. B. DCC 22.28.040 notwithstanding, and except as specifically allowed therein, parties to a declaratory ruling shall not be entitled to reapply for a declaratory ruling on the same question. C. Except where a declaratory ruling is made by the Board of County Commissioners, the ruling shall not constitute a policy of Deschutes County. FINDINGS: The Hearings Officer finds this declaratory ruling decision will be conclusive on the issue of whether the use approved under the Thornburgh Destination Resort CMP has been Loyal Land, LLC DR-11-8 Page 13 initiated, and the parties cannot reapply for a declaratory ruling on the same issue.3 Because this decision has not been made by the board, it does not constitute a policy of the county. e. Section 22.40.050, Interpretation Interpretations made under DCC 22.40 shall not have the effect of amending the interpreted language. Interpretation shall be made only of language that is ambiguous either on its face or in its application. Any interpretation of a provision of the comprehensive plan or other land use ordinance shall consider applicable provisions of the comprehensive plan and the purpose and intent of the ordinance as applied to the particular section in question. FINDINGS: No interpretation of the comprehensive plan or zoning ordinance is being requested as part of this declaratory ruling application. Any interpretation of the terms of the Thornburgh CMP will not have the effect of amending the interpreted language. 2. Chapter 22.36, Limitations on Approval a. Section 22.36.010, Expiration of Approval A. Scope. 1. Except as otherwise provided herein, DCC 22.36.010 shall apply to and describe the duration of all approvals of land use permits provided for under the Deschutes County Land Use Procedures Ordinance, the various zoning ordinances administered by Deschutes County, and the subdivision/partition ordinance. * * * B. Duration of Approvals. 1. Except as otherwise provided under DCC 22.36.010 or under applicable zoning ordinance provisions, a land use permit is void two years after the date the discretionary decision becomes final if the use approved in the permit is not initiated within that time period. * * *. 3 As discussed above, the Hearings Officer makes no findings herein as to whether TRC and DeLashmutt are parties to this declaratory ruling proceeding. Loyal Land, LLC DR-11-8 Page 14 E. Effect of Appeals. The time period set forth in DCC 22.36.010(B) shall be tolled upon the filing of an appeal to LUBA until all appeals are resolved. (Emphasis added.) FINDINGS: The board’s original decision approving the Thornburgh Destination Resort CMP was issued on May 10, 2006. Thereafter appeals were filed, the board’s decision was remanded, and on April 15, 2008 the board approved the CMP on remand. That decision also was appealed and ultimately was affirmed by the Court of Appeals on October 9, 2009. The court’s appellate judgment was issued December 9, 2009, and LUBA issued its notice of appellate judgment on December 15, 2009. The parties disagree as to: (1) when the CMP approval was “final” for purposes of calculating the two-year period during which the CMP approval was valid; (2) whether the two-year period was tolled by appeals; and (3) when the two-year period expired. Each issue is addressed separately in the findings below. 1. Date CMP Decision Became “Final.” Section 22.28.010(1)(C) provides: C. A decision on a land use action is not final until the Planning Director or Hearings Body issues a written decision, the decision or notice of the decision has been mailed and the appeal period to the next higher Hearings Body within the County has run. (Emphasis added.) The board approved the Thornburgh CMP twice – the first time on May 10, 2006, and the second time on April 15, 2008 on remand from the Court of Appeals. The Hearings Officer finds the board’s final decision on the CMP was its April 15, 2008 decision on remand.4 In that decision, the board re-adopted its May 10, 2006 decision as modified by findings, conclusions and conditions of approval adopted on remand. The applicant argues the date the county’s decision became final is “irrelevant” because the use approved through the CMP was initiated. The Hearings Officer disagrees. Section 22.36.010(B)(1) states a land use permit is void two years after the date the discretionary decision becomes final if the use approved in the permit is not initiated “within that time period.” I find the plain language of this provision requires me to establish when the two-year period began and ended in order to determine whether the permit was initiated “within that time period.” However, as discussed in the findings below concerning initiation of the use, I have found all of the relevant conditions of approval in the board’s decision approving the CMP were fully complied with prior to TRC’s submission of the modified FMP in April of 2008. 2. Method of Calculating Two-Year Period. In a February 7, 2012 memorandum, Gould’s attorney Paul Dewey argues the two-year period for initiation of the CMP expired on April 15, 2010 – i.e., two years after April 15, 2008 -- notwithstanding the language in Paragraph (E) of Section 22.36.010 that states expiration of land use permits is tolled until all appeals are 4 In his February 21, 2012 memorandum, Mr. Dewey stated he agrees with the applicant that the county’s final decision on remand of the CMP was April 15, 2008 rather than April 9, 2008. Loyal Land, LLC DR-11-8 Page 15 resolved. He asserts that because the subject property is designated and zoned agricultural land, the duration and expiration of the CMP approval are governed by Oregon Administrative Rules (OAR) 660-033-0140 which does not include a tolling provision and provides in relevant part: (1) Except as provided for in section (5) of this rule, a discretionary decision, except for a land division, made after the effective date of this division approving a proposed development on agricultural or forest land outside an urban growth boundary under ORS 215.010 to 215.293 and 215.317 to 215.438 or under county legislation or regulation adopted pursuant thereto is void two years from the date of the final decision if the development action is not initiated in that period. (Emphasis added.) In his February 21, 2010 memorandum, Steven Pfeiffer responded to Mr. Dewey as follows: “First, it is well-settled that local land use decisions made by jurisdictions with acknowledged plans and land use regulations are not reviewable for compliance with the Statewide Planning Goals (‘Goals’) and their implementing rules. Byrd v. Springer, 295 Or 311, 666 P2d 1332 (1983); Friends of Neabeck Hill v. City of Philomath, 139 Or App 39, 46, 911 P2d 350 (1996). Accordingly, LUBA denied a challenge to a county’s decision to apply its own code requirement to determine minimum parcel size, notwithstanding the local government’s inconsistency with a rule in OAR 660 Division 033, when the county’s code was acknowledged to comply with Goal 3 and the Goal 3 rule. Oregon Natural Desert Association v. Harney County, 42 Or LUBA 149 (2002). It is undisputed that the County has incorporated its own provisions for permit expiration and extension into the DCC. Thus, to the extent of any inconsistency between the DCC and OAR 660 Division 033, the County is entitled to rely upon the provisions of the DCC in this matter. There is a second reason the rules of Division 033 are inapplicable: The purpose of the Division 033 rules would not be served by applying the rules in this instance because Oregon law has already exempted destination resorts from complying with them. OAR 660-033-0010 states that the purpose of Division 033 rules is to protect Goal 3 lands. Destination resorts are permitted on rural lands without the need for taking an exception to Goal 3 under ORS 197.450. Accordingly, the purpose of the rules would not be served by applying them in this instance. Although ORS 215.283(2)(t) allows destination resorts on farmland, subject to the requirements of ORS 215.296, the County has incorporated and applied the requirements of ORS 215.296 to the CMP. Accordingly, the County has already applied the applicable requirements to the use.” The Hearings Officer concurs with Mr. Pfeiffer’s analysis. The county code allows destination resorts as conditional uses on EFU-zoned land under Section 18.16.035, subject to the DR Zone provisions in Chapter 18.113 which the county adopted in 1992. Section 18.113.020 states that when the DR Zone provisions are applicable “they shall supersede all other provisions of the underlying zone.” These provisions do not address the duration, expiration or initiation of destination resort approvals. Rather, they refer to the procedures in Title 22 for the processing of Loyal Land, LLC DR-11-8 Page 16 destination resort applications.5 Section 22.36.010, adopted by the county in 1995 by Ordinance No. 95-018, expressly states it applies to the duration of approval of “all land use permits.” The Deschutes County 2011 Comprehensive Plan states in its preamble: “Over time, the County amended the 1979 Plan to comply with changes initiated by the State, and Board of County Commissioners or property owners. Periodic Review, a plan update process once required by the state, started in 1988 and was completed in 2003. Periodic Review included major additions and amendments to the 1979 Plan to keep the Plan and its policies consistent with evolving State planning regulations and local conditions.” The county’s updated comprehensive plan and land use regulations were acknowledged by the Land Conservation and Development Commission (LCDC) in January of 2003, after adoption of the county’s provisions for both destination resorts in Title 18 and permit duration/expiration/initiation in Title 22. Consequently, the Hearings Officer finds that although Section 22.36.010 is inconsistent with OAR 660-033-0145 in allowing permit expirations to be tolled by appeals, both code sections were acknowledged in 2003 as consistent with the statewide goals, including Goal 3, Agricultural Land, and its implementing administrative rules in OAR 660 Chapter 33. Therefore, I find Section 22.36.010(E) applies to the Thornburgh CMP because it is a tolling provision expressed in the permit limitation itself. See, Rest Haven Memorial Park v. City of Eugene , 44 Or LUBA 231 (2003), aff’d 189 Or App 90, 74 P3d 1107 (2003); Stupek v. Wyle Laboratories Corp., 327 Or 433, 963 P2d 678 (1998). Even assuming for purposes of discussion that OAR 660-033-0145 does apply to the applicant’s proposal, and therefore the two-year period for initiation of use was not tolled and expired on April 15, 2010 as asserted by Mr. Dewey, the Hearings Officer finds using the earlier date would not produce a different result. That is because, as discussed in detail in the findings below concerning whether the relevant conditions of approval were substantially exercised, I have found all relevant conditions of approval were in fact fully complied with by April 21, 2008, when the FMP was submitted for approval. 6 3. Calculation of Two-Year Period for Initiating CMP. The Hearings Officer has found the two-year period for initiating the CMP commenced on April 15, 2008 with the board’s decision approving the CMP on remand. Thus, without any tolling, that period would have expired on April 15, 2010. As discussed above, that is the date Mr. Dewey argues marks the end of the two- year period for initiating the use. However, under Section 22.36.010(E) the two-year period was tolled “upon filing of an appeal to LUBA until all appeals are resolved.” (Emphasis added.) The Hearings Officer finds the words “all appeals” in the underscored phrase means all appeals from the final decision – i.e., from the board’s 2008 CMP approval on remand. 5 E.g. , Section 18.113.040, Application Submission; Section 18.113.100, Final Master Plan Approval. 6 In fact, according to Mr. Dewey’s February 21, 2012 memorandum, the actions satisfying Conditions of Approval 3, 8, 9, 10, 11, 13, 14A, 14B, 15 and 24 all occurred on or before April 15, 2008. Loyal Land, LLC DR-11-8 Page 17 The LUBA appeal from the board’s April 15, 2008 decision was filed on May 6, 2008. LUBA’s decision was appealed to the Court of Appeals and to the Supreme Court which denied review in a decision dated October 7, 2009. The Court of Appeals issued its appellate judgment on December 9, 2009. In his February 7, 2012 memorandum, Paul Dewey states all appeals were “resolved” with the Supreme Court’s October 7 th decision and not by the Court of Appeals’ appellate judgment on December 9, 2009. The Hearings Officer disagrees for the following reasons. The Court of Appeals’ and Supreme Court’s procedures are established in ORS Chapter 19 and in the Rules of Appellate Practice. ORS 19.450(b) defines the “appellate judgment” as “the decision of the Court of Appeals or Supreme Court, or such portion of the decision as may be specified by the Supreme Court, together with an award of attorneys’ fees or allowance of costs and disbursements, if any.” Rule 14.05(1)(a) of the Rules of Appellate Procedure states that an appellate judgment “means a decision of the Court of Appeals or Supreme Court together with a final order and seal of the court.” Subsection (1)(b) of this rule defines “decision” as “a designation of prevailing party and allowance of costs together with, * * * on judicial review of any agency proceeding, an order disposing of the appeal or judicial review or affirming without opinion.” Subsection (2) of this rule states a decision of the Court of Appeals or Supreme Court “is effective: * * * with respect to judicial review of administrative agency proceedings, on the date that the [Court] Administrator sends a copy of the appellate judgment to the administrative agency.” Based on these provisions, the Hearings Officer finds the court’s decision affirming the CMP became effective when the appellate judgment was issued – i.e., on December 9, 2009. 7 LUBA issued a notice of appellate judgment on December 15, 2009. Mr. Dewey asserts, and the Hearings Officer agrees, that nothing in the statutes or administrative rules governing LUBA’s procedures requires the issuance of such notice. Moreover, OAR 661-010-0070 states LUBA’s order is final when it states it is a “final opinion and order,” has a date, is date stamped, and indicates the outcome of the appeal. Therefore, I find LUBA’s issuance of a notice of appellate judgment did not delay the effective date of the Court of Appeal’s decision. Accordingly, I find all appeals were resolved on December 9, 2009, and the tolled two-year period for initiation of the CMP approval expired on December 7, 2011 – i.e., 581 (tolled) days after April 15, 2010). 8 D. Procedures. 1. A determination of whether a land use has been initiated shall be processed as a declaratory ruling. * * *. 7 Mr. Dewey’s February 21, 2012 memorandum concedes the appellate judgment sets the relevant date. 8 Both the applicant and Mr. Dewey suggest 42 days must be deducted from the 581 days of tolling to account for several periods of time between the issuance of decisions and the filing of appeals. Based on those deductions, the applicant states the two-year period expired “on or about November 3, 2011.” The Hearings Officer finds the language in Section 22.36.010(E) – tolling “until all appeals are resolved” – does not contemplate such deductions, but rather sets the parameters of the tolling period from the filing of the first appeal to resolution of the last appeal, without interruption. Loyal Land, LLC DR-11-8 Page 18 FINDINGS: The applicant has applied for a declaratory ruling that the use permitted by the approved Thornburgh CMP has been initiated. b. Section 22.36.020, Initiation of Use A. For the purposes of DCC 22.36.020, development action undertaken under a land use approval described in DCC 22.36.010, has been “initiated” if it is determined that: 1. The proposed use has lawfully occurred; 2. Substantial construction toward completion of the land use approval has taken place; or 3. Where construction is not required by the approval, the conditions of a permit or approval have been substantially exercised and any failure to fully comply with the conditions is not the fault of the applicant. (Emphasis added.) FINDINGS: No use approved through the Thornburgh CMP has occurred, and no construction was required by the CMP. Therefore, the Hearings Officer finds the applicant must demonstrate the use has been initiated under Subsection (A)(3) of this section, which establishes two requirements: (1) that the conditions of a permit or approval have been substantially exercised; and (2) that any failure to fully comply with conditions is not the fault of the applicant. Each requirement is addressed separately in the findings below. 1. Conditions of Permit or Approval Have Been Substantially Exercised. The parties disagree as to how this requirement is to be interpreted in two key respects, discussed below. a. Conditions of Permit or Approval. Mr. Dewey argues the phrase “conditions of a permit or approval” connotes more than the listed conditions of approval imposed by the board’s original decision and its decision on remand approving the Thornburgh CMP on remand.9 In his February 7, 2012 memorandum, he argues the phrase includes the conditions of approval and the CMP “proposal and representations relied upon * * * to demonstrate compliance with the applicable criteria, regardless of whether those representations are also specifically included as conditions of approval.” Mr. Dewey cites several cases, including Wilson Park Neighborhood Association v. City of Portland , 27 Or LUBA 106, 123-124 (1994), that stand for the proposition that an applicant is bound to comply with elements of its proposal submitted to demonstrate compliance regardless of whether such compliance is required through a condition of approval. Mr. Dewey 9 As discussed in detail in the findings below, the board’s original decision approving the CMP adopted 36 conditions of approval. The board’s decision on remand modified one of the 36 conditions of approval and added two additional conditions of approval it incorrectly numbered “36” and “37,” resulting in a total of 38 conditions of approval. In her decision approving the FMP, Hearings Officer Briggs renumbered Conditions of Approval 36 and 37 in the board’s remand decision as Conditions 37 and 38. Loyal Land, LLC DR-11-8 Page 19 also cites the language of Condition of Approval 1 of the board’s decision which states: “Approval is based on the submitted plan. Any substantial change to the approved plan will require a new application.” In his February 21, 2012 memorandum, Mr. Pfeiffer responds that Mr. Dewey’s argument, if accepted, would have the effect of improperly inserting words into the code language that the drafters did not include. He also argues Mr. Dewey’s reliance on Wilson and the other cited cases is misplaced because nothing in those cases can be read to hold the Hearings Officer must consider plans submitted as part of the proposal in determining whether an approval has been initiated. When the meaning of an ordinance or statutory provision is not clear, the Hearings Officer must determine the intent of the drafters. The Oregon Supreme Court’s decision in PGE v. Bureau of Labor and Industries , 317 Or 606, 859 P2d 1143 (1993), sets forth a three-step analysis for such a determination. The first step is to examine the text and context of the provision in question. If the drafters’ intent is not obvious from the text and context, then the analysis turns to an examination of any proffered legislative history. If the intent is still not clear, general rules of statutory construction may be considered. In State v. Gaines , 346 Or 160, 206 P3d 1042 (2009), the Supreme Court revised the PGE analysis in light of amendments to ORS 174.020 that allow consideration of legislative history concurrently with the text and context. Turning first to the text of Section 22.36.020(A)(3), the Hearings Officer finds no support for Mr. Dewey’s argument. The plain language of the operative phrase -- “conditions of a permit or approval” – includes within it the term “conditions of approval.” It does not include terms such as “plans” or other development components. I also find no support for Mr. Dewey’s interpretation in the context of the county code. Destination resorts are authorized as conditional uses in the EFU Zones under Section 18.16.035. The planning director or hearings body is authorized to “impose” conditions to assure compliance with approval criteria and/or to limit development for conditional uses in general (Section 18.128.020) and destination resorts in particular (Section 18.113.075). Webster’s New World Dictionary and Thesaurus, Second Edition states the ordinary definition of “impose” includes to “place a burden on.” In this context, I find the terms “conditions” and “conditions of approval” mean those requirements and/or limitations expressly imposed on a permit or approval through the conditions of approval articulated at the end of the land use decision. In this case, the operative conditions are the conditions of approval adopted by the board in its original decision and its decision on remand. The Hearings Officer also finds the boilerplate language of Condition of Approval 1 of the board’s decision does not support Mr. Dewey’s argument. Rather, reading the two sentences of the condition together, I find the most reasonable reading is it simply puts the applicant on notice that without further land use applications and approvals, the applicant is not authorized to undertake development beyond that which was proposed in the application and approved through the decision. The Hearings Officer fully understands opponents’ concerns about whether the applicant will be able to develop the Thornburgh Destination Resort considering the ownership and resort element/permit issues raised by opponents. Nevertheless, as discussed throughout this decision, Loyal Land, LLC DR-11-8 Page 20 destination resort development occurs in three steps. The CMP is the first step. The only question before me in this declaratory ruling proceeding is whether the destination resort use allowed through the CMP approval has been initiated – not whether the applicant ultimately will be able to develop the resort. The applicant’s ability to put into place all of the destination resort’s components may well be relevant at the FMP and specific development steps. The remaining question raised by the parties under this language is whether all or only some of the 38 conditions of approval in the board’s decisions are relevant in determining whether the use approved through the CMP has been “initiated.” The Hearings Officer finds the answer to that question is determined by both the language of the conditions of approval and their context within the three-step destination resort process. Section 18.113.050 states the CMP provides the “framework” for development of the destination resort. Section 18.113.040(B) states that in order to develop the destination resort the applicant must submit and obtain approval for the FMP “which incorporates all requirements of the County approval for the CMP” and demonstrates compliance with “all conditions of approval of the conditional use permit.” Section 18.113.040(C) states “each element or development phase of the destination resort must receive additional approval through the required site plan approval or subdivision criteria,” and must be in compliance with the FMP. Consistent with the DR process context, the conditions of approval in the board’s decisions specify different times for compliance – e.g., some before FMP approval, some before specific development approval, and some at all times – as shown in the following summary of conditions. Conditions To Be Met Prior to FMP Approval: • 3: obtain BLM grant of right-of-way and access easement; • 8: obtain DHS plan review and approval of water supply plans for drinking water; • 10: provide documentation of OWRD approval of water right application; • 14(B): revised covenants, conditions and restrictions (CC&Rs) regarding maintenance of required open space; • 15: obtain approved WPCF permit from DEQ; • 19: coordinate evacuation plans with Sheriff, Redmond Fire Department, Oregon State Police and Oregon Department of Transportation (ODOT); • 22: submit covenants, conditions and restrictions; • 30: submit detailed traffic circulation plan with resort access roads, internal circulation roads, and emergency ingress/egress roads; and • 36 (on remand): modify overnight lodging and density calculations for resort in accordance with revised proposal dated 1-3-06. Conditions To Be Met On or With Final Master Plan Submission: • 9: designate location of all utilities lines and easements on FMP; Loyal Land, LLC DR-11-8 Page 21 • 11: include a written plan for entering into cooperative agreements with owners of existing wells within a two-mile radius of applicant’s wells; • 13: specify all recreational facilities within resort; • 14(A): include a delineation of open space substantially similar to open space delineation submitted with CMP; • 36 (on remand): replace the overnight lodging and density calculation charts with revised charts; and • 37 (on remand): submit wildlife mitigation plan. Condition of FMP Approval: • 12: compliance with requirements for commercial, cultural, entertainment and accessory uses, locations and scales. Conditions To Be Met Before or With First Phase of Development/First Tentative Plat and/or First Site Plan: • 25: submit detailed erosion control plan; and • 33: develop at least 150 separate rentable visitor-oriented lodging units with an aggregate cost of $2,000,000 (in 1984 dollars), develop visitor-oriented eating establishments for at least 100 persons, and spend at least $2,000,000 (in 1984 dollars) on recreational facilities. Conditions To Be Met Before Final Plat Approval: • 4: improve emergency secondary resort access roads; and • 7: obtain approval of all proposed new road names. Conditions to Be Met With/On Final Plat: • 6: show all easements of record or rights-of-way; • 7: show approved road names on final plats. • 14(D): clearly delineate all open space on final plats. Conditions To Be Met Prior To Or With Construction: • 5: design and construct roads in accordance with Title 17 of the county code; obtain plan approval from road department; and • 24: complete annexation into Deschutes County Rural Fire Protection District No. 1 before commencing combustible construction. Conditions To Be Met With Each Development Phase: • 10: submit updated documentation of state water right permit and accounting of full amount of any required mitigation for individual phase. Loyal Land, LLC DR-11-8 Page 22 Conditions To Be Met At All Times: • 1: substantial change to approved plan will require new application; • 2: all development will require tentative plat approval under Title 17 and/or site plan review under Title 18; • 14(B): ensure the 50% open space requirement is met by using and maintaining open space areas, include open space language in all deeds, obtain a new land use permit for any change to approved open space; • 14(C): include open space language in all deeds; • 16: limit all temporary structures to maximum of 18 months on resort site; • 17: all resort development shall meet all Redmond Fire Department fire protection requirements; • 18: no development shall be allowed on slopes of 25% or more; • 20: cumulative density of development at end of any phase shall not exceed maximum density of 0.72 dwellings per acre; • 21 (remand): each phase of development shall be constructed so that the requirement of 150 overnight lodging units and 2:1 ratio of individually owned dwelling units to overnight lodging units is maintained; provide financial assurance for overnight lodging units in lieu of construction; maintain registry of individually owned units, office, telephone reservation line, etc.; • 23: Barr Road may not be used for resort access; • 26: lot size, width, coverage, off-street parking, setbacks (including solar) are permitted as described in CMP, compliance confirmed during subdivision approval for each development phase; • 27: road width shall be consistent with requirements in Title 17; • 28: abide with 9-28-2005 MOU with BLM regarding mitigation of impacts on surrounding federal lands, and implement adopted mitigation plan; • 29: abide with 10-10-05 MOU with ODOT regarding ODOT administered roadways; • 31: all exterior lighting shall comply with county outdoor lighting ordinance; • 32: no permission to install a helicopter landing zone; • 34: retain and restore native vegetation; • 35: include in overnight lodging rental contracts language requiring that unit be available for overnight rental at least 45 weeks per year; and • 36 (original): coordinate with Sheriff to address all public safety needs associated with the resort and development process. In his February 7, 2012 memorandum, Mr. Dewey argues: “DCC 22.36.020(A)(3)’s requirement of substantially exercising the conditions of Loyal Land, LLC DR-11-8 Page 23 the permit do not give an exception to conditions that apply to what must be done before a final plat is filed or to ‘continuing’ obligations. Such exception language is simply not in the Code. If Loyal Land is trying to claim initiation of use based on ‘substantially exercised’ Conditions of Approval of the CMP, all of those conditions apply to that test. DCC 22.36.020(A)(3) makes clear that the test of whether the permit has been initiated is in the context of all the conditions. For example, one of the tests is whether ‘any failure to fully comply with the conditions is not the fault of the applicant.’ Just because there has been so little progress in the development that the requirements of most conditions have not been triggered does not excuse compliance with those conditions. Otherwise, an applicant could just sit on a development approval and be careful not to do enough that most conditions would not get triggered.” (Underscored emphasis in original.) The Hearings Officer finds Mr. Dewey’s argument is not persuasive. First, there is no language in Section 22.36.020(A)(3) that requires all conditions to be substantially exercised. Rather, it refers to “the” conditions. For the same reasons set forth in the findings above concerning who is authorized to request a declaratory ruling, I find the term “the” does not mean “all.” Second, I find unreasonable Mr. Dewey’s supposition that any interpretation other than the one he proposes would result in destination resort developers “sitting on” a development approval and intentionally failing to satisfy conditions of approval. Rather, his interpretation could result in the resort developer being unable to “initiate” the use until the entire development is completed -- and within two years from the date of CMP approval. I cannot find any support for this scenario in Section 22.36.020 or the DR Zone provisions. The Hearings Officer finds the relevant conditions of approval for the subject initiation of use declaratory ruling are limited to those with which the CMP required compliance before FMP approval . I find those conditions include Conditions of Approval 3, 8, 10, 14(B), 15, 19, 22, 30, 36 (original), and 37. However, I note that the applicant states, and Hearings Officer Briggs found in her decision approving the FMP, that Conditions of Approval 3, 8, 9, 11, 13, 14A, 14B, 15, 24, 30, and 37, have been met. For this reason, I will review the combined 16 conditions. b. “Substantially Exercised.” The parties disagree as to what is meant by a “substantially exercised” condition of approval. As discussed above, when the meaning of an ordinance or statutory provision is not clear, the Hearings Officer must determine the intent of the drafters through the three-step analysis first set forth in PGE v. Bureau of Labor and Industries , cited above. Turning first to the text, the terms “substantially” and exercised not defined in Title 22. The ordinary definitions of these terms include: • “substantially” – “extensively, considerably, largely;” • “exercise” – “to put into action; use; to carry out; perform; to put into practice. Loyal Land, LLC DR-11-8 Page 24 Webster’s New World Dictionary and Thesaurus, Second Edition. Applying these definitions to Section 22.36.020(3), the term “substantially exercised” connotes performing or carrying out a condition of approval to a significant degree but not completely. That interpretation is supported by the context of this term – i.e., the rest of Paragraph (A)(3) – which requires the applicant to demonstrate that any failure to “fully comply” with the conditions was not the applicant’s fault. In other words, the Hearings Officer finds the drafters intended “substantially exercised” to mean that the applicant must show the conditions were complied with to a significant degree, but not necessarily fully complied with. Therefore, I find it is appropriate to apply this interpretation. Before turning to an analysis of the relevant conditions of approval, the Hearings Officer finds one additional issue must be resolved. Mr. Dewey argues the determination of whether a condition of approval in the CMP has been “substantially exercised” must take into account circumstances that occurred after the CMP approval was affirmed and the FMP was submitted and approved. For example, Mr. Dewey argues the very foundation of the resort approval has been removed because of, for example, the transfer of most of the resort property from TRC to the applicant and TRC’s rescission of a water right agreement. While these events may be relevant in later steps in the destination resort development process – when the applicant or its successor seeks approval for actual resort development -- I find the “substantially exercised” determination must be based on the language of the condition – i.e., what action was required to be done and by when. Condition 3: “Applicant shall provide a signed grant of right-of-way from the U.S. Department of the Interior – Bureau of Land Management for an access easement connection to U.S. Highway 126, prior to submission of a Final Master Plan application.” Hearings Officer Briggs’ decision approving the Thornburgh FPM states at page 10 that the applicant’s predecessor TRC “has submitted the signed right-of-way agreement,” and therefore this condition was satisfied. In his February 7, 2012 memorandum, Paul Dewey argues the applicant cannot rely on the BLM right-of-way agreement submitted by TRC because it “is personal to” TRC and does not run with the land. The Hearings Officer finds I need not reach this issue because the condition of approval required that the signed grant of right-of-way be submitted “prior to submission of a Final Master Plan application” and the record indicates that action was taken. Therefore, I find Condition 3 was fully complied with no later than April 21, 2008 when TRC’s modified FMP application was submitted. Condition 8: “Plan review and approval of water supply plans for phase 1 will be required by Oregon Department of Human Services – Drinking Water Program (DHS-DWP) prior to Final Master Plan Approval.” Hearings Officer Briggs’ decision approving the FMP states at page 11: “The applicant has received approval from the Oregon Department of Human Loyal Land, LLC DR-11-8 Page 25 Services for the Final Master Plan for Thornburgh Resort. It has been approved as a ‘Master Plan’ by DHS-DWPO and therefore will not require further review at the different levels of development so long as they work with a registered professional engineer.” Again, the Hearings Officer finds I need not reach the question of whether the water master plan is “personal” to TRC because the condition of approval required that the plan be approved by DHS “prior to Final Master Plan approval,” and the record indicates that action was taken by DHS before Hearings Officer Briggs’ approved the FMP. Gould appealed Hearings Officer Briggs’ decision approving the FMP to LUBA which remanded the decision. The Court of Appeals affirmed LUBA’s remand, and as of the date of this decision the remand had not been initiated. Consequently, the FMP approval is not final. However, Gould’s appeal did not challenge Condition of Approval 8, and as discussed in detail in the findings below, LUBA’s remand, affirmed by the Court of Appeals, was limited to the Thornburgh wildlife mitigation plan. Therefore, the Hearings Officer finds nothing in the remand precludes my finding that Condition of Approval 8 was fully complied with no later than April 21, 2008 when TRC’s modified FMP application was submitted. Condition 9: “Applicant shall designate the location of all utility lines and easements that burden the property on the FMP.” Hearings Officer Briggs’ decision approving the Thornburgh FPM states at page 11 that the applicant’s predecessor TRC: “* * * has submitted a map with the Modification of Application showing the location of all utility lines an easements that currently burden the property.” Based on this finding, which was not challenged on appeal, the Hearings Officer finds Condition of Approval 9 was fully complied with no later than April 21, 2008 when TRC’s modified FMP application was submitted. Condition 10: “Applicant shall comply with all applicable requirements of state water law as administered by OWRD [Oregon Water Resources Department] for obtaining a state water right permit and shall provide documentation of approval of its application for a water right permit prior to approval of the final master plan * * *.” 10 Hearings Officer Briggs’ decision approving the Thornburgh FPM states at page 11 that the applicant’s predecessor TRC: “* * * obtained approval of a water right application. See MA 08-6, Ex. K2. It 10 Condition 10 requires updated water right documentation with each resort development phase. Loyal Land, LLC DR-11-8 Page 26 will become final upon a showing that the required mitigation has been provided for. A condition of approval is imposed to require documentation that mitigation and a water rights permit has [sic] been issued for each development phase.” Opponents argue the applicant cannot rely on TRC’s obtaining a water right prior to FMP approval because TRC subsequently rescinded an agreement to obtain water rights for the resort. The Hearings Officer disagrees. As discussed above, LUBA’s remand of the FMP was limited to the Thornburgh wildlife mitigation plan. I find nothing in the remand that precludes my finding Condition of Approval 10 was fully complied with no later than April 21, 2008 when TRC’s modified FMP application was submitted. And as discussed throughout this decision, whether the applicant ultimately can secure the necessary water rights to develop the resort is not the question before me in this declaratory ruling proceeding. Condition 11: “At the time of submission for Final Master Plan (FMP) approval, Applicant shall include a written plan for entering into cooperative agreements with owners of existing wells within a two- mile radius of Applicant’s wells. The plan shall include a description of how Applicant will provide notice to affected well owners and of the terms and conditions of an option for well owners to enter into a written agreement with Applicant under which Applicant will provide indemnification to well owners in the event of actual well interference as a result of Applicant’s water use. The plan shall remain in effect for a period of five years following full water development by Applicant.” Hearings Officer Briggs’ decision approving the Thornburgh FPM states at pages 11 and 12 that the applicant’s predecessor TRC: “* * * has submitted its written plan for entering into cooperative agreements with owners of existing wells within a two-mile radius of the resort. The plan describes how the applicant will provide notice to affected well owners including the terms and conditions under which well owners may enter into an indemnification agreement with Thornburgh in the event of actual interference as a result of the resort owner’s water use. Specific terms and conditions of the plan were developed in cooperation with County staff and the Oregon Water Resources Department. COA 11 is satisfied.” Based on this finding, which was not appealed, the Hearings Officer finds Condition of Approval 11 was fully complied with no later than April 21, 2008 when TRC’s modified FMP application was submitted. Condition 13: “Applicant shall specify all recreational facilities within the proposed resort as part of the final master plan submittal.” Hearings Officer Briggs’ decision approving the Thornburgh FPM states at page 12 that the Loyal Land, LLC DR-11-8 Page 27 applicant’s predecessor TRC: “* * * has specified the recreational facilities within the proposed resort. They have also shown locations of recreational facilities along with the layout of trail heads, trails and viewpoints. COA 13 is satisfied.” In her appeal from the FMP approval Gould challenged Hearings Officer Briggs’ finding. LUBA found this challenge without merit. Therefore, based on Hearings Officer Briggs’ finding the Hearings Officer finds Condition of Approval 13 was fully complied with no later than April 21, 2008 when TRC’s modified FMP application was submitted. Condition 14A: “Applicant and its successors shall do the following to ensure that all open space used to assure the 50% open space requirement of Section 18.113.060(D)(1) is maintained in perpetuity: A. Applicant shall submit for approval, as part of the Final Master Plan, a delineation of the Open Space that is substantially similar to the area shown in the Open Space Plan submitted as Ex. 9, B-14 to the ‘Memorandum of Applicant,’ in a response to public comments dated September 28, 2005. Open Space shall be used and maintained as ‘open space areas’ as that term is used in DCC 18.113.030(E).” Hearings Officer Briggs’ decision approving the Thornburgh FPM states at page 12 that the applicant’s predecessor TRC: “* * * has proposed approximately 1,293 acres of open space (Exhibit A1.1 of MA-08-6). This is divided into three categories, golf open space, common open space and buffer open space. The acreage that is included as open space constitutes approximately 66% of the entire acreage of the resort. The map submitted as part of the Modification of Application is substantially the same as the Open Space map that was approved as part of the CMP. COA 14A is satisfied.” Based on this finding, which was not appealed, the Hearings Officer finds Condition of Approval 14A was fully complied with no later than April 21, 2008 when TRC’s modified FMP application was submitted. Condition 14B: “The CC&R’s, as modified and submitted to the County on December 20, 2005, shall be further revised such that Section 3.4 retains the first two sentences, but then the balance of 3.4 is replaced with the following: At all times the Open Space shall be used and maintained as ‘open space areas.’ The foregoing sentence is a covenant and equitable servitude, which runs with the land in perpetuity and is for the benefit of all of the Property, each Owner, The Declarant, and the Association, and the Golf Club. All of the foregoing entities shall have the right to enforce covenant and equitable Loyal Land, LLC DR-11-8 Page 28 servitude. This Section 3.4 may not be amended except if approved by affirmative vote of all Owners, the Declarant, the Golf Club and the Association.” Hearings Officer Briggs’ decision approving the Thornburgh FPM states at page 13 that the applicant’s predecessor TRC: “* * * has submitted CC&R’s which contain the above-referenced language. See M 07-2, Ex. H4. COA 14B is satisfied.” Based on this finding, which was not appealed, the Hearings Officer finds Condition of Approval 14B was fully complied with no later than April 21, 2008 when TRC’s modified FMP application was submitted. Condition 15: “Applicant shall obtain an approved Water Pollution Control Facility (WPCF) permit (as described in DCC 18.113.070(L) prior to application for Final Master Plan.” Hearings Officer Briggs’ decision approving the Thornburgh FMP states at page 13 that the applicant’s predecessor TRC: “* * * has obtained the necessary permit from the Department of Environmental Quality. It is included as Exhibit J1 and is permit number 102900, COA 15 is satisfied.” As with the water master plan approval addressed in Condition of Approval 8 discussed above, opponents argue the WPCF permit is “personal” to TRC and cannot be relied upon by the applicant to demonstrate initiation of the CMP. Again, the Hearings Officer finds I need not reach this question because the condition of approval required that the WPCF permit be obtained prior to application for FMP approval, and the record indicates that action was taken before Hearings Officer Briggs’ approved the FMP. In addition, because LUBA’s remand of the FMP was limited to the wildlife mitigation plan, I find nothing in the remand that precludes my finding Condition of Approval 15 was fully complied with no later than April 21, 2008 when TRC’s modified FMP application was submitted. Condition 19: “Applicant shall implement a ‘Wildfire/Natural Hazard Protection Plan’ for the resort, as identified in Ex. 15,B-29 of the burden of proof statement. Prior to approval of the Final Master Plan and each subdivision and site plan, Applicant shall coordinate its evacuation plans through that development phase with the Deschutes County Sheriff’s Office and the Redmond Fire Department. At the same time, Applicant shall also coordinate its plans for the movement of evacuees over major transportation routes with the Oregon State Police and the Oregon Department of Transportation.” Hearings Officer Briggs’ decision approving the Thornburgh FMP states at page 14 that the Loyal Land, LLC DR-11-8 Page 29 applicant’s predecessor TRC: “* * * has submitted a revised fire evacuation plan which shows the fire evacuation routes during the various phases of the development. A letter from former Deschutes County Sheriff, Les Stiles, and a letter from Tim Moor, Fire Chief of the Deschutes County Rural Fire Protection District #1is included, stating the evacuation plan is adequate for this stage of the development. A condition of approval is imposed to ensure that it is addressed in each development phase.” Based on this finding, which was not appealed, the Hearings Officer finds Condition of Approval 19 was fully complied with no later than April 21, 2008 when TRC’s modified FMP application was submitted. Condition 22: “Applicant shall submit final covenants, conditions and restrictions to the County prior to Final Master Plan approval. The final covenants, conditions and restrictions adopted by the developer and amendments thereto shall conform in all material respects to this decision and the requirements of the DCC. Hearings Officer Briggs’ decision approving the Thornburgh FMP states at page 15 that the applicant’s predecessor TRC: “* * * has submitted covenants, conditions and restrictions. The CC&R’s comply with the requirements of the Deschutes County Code. A condition of approval is imposed to require conformance with the FMP CC&R’s through the life of this development.” Based on this finding, which was not appealed, the Hearings Officer finds Condition of Approval 22 was fully complied with no later than April 21, 2008 when TRC’s modified FMP application was submitted. Condition 24: “Applicant shall complete annexation of the property in any area of development into Deschutes County Rural Fire Protection District No 1 before commencing combustible construction in the area.” Hearings Officer Briggs’ decision approving the Thornburgh FMP states at page 15 that the applicant’s predecessor TRC: “* * * has submitted a letter from the Deschutes County Rural Fire Protection District No 1 stating that the property has been annexed to the district.” Although compliance with Condition of Approval 24 was not required prior to submission of the FMP for approval, the Hearings Officer finds on the basis of Hearings Officer Briggs’ findings, Loyal Land, LLC DR-11-8 Page 30 which were not appealed, that Condition of Approval 24 was fully complied with no later than April 21, 2008 when TRC’s modified FMP application was submitted. Condition 30: “Applicant shall submit a detailed traffic circulation plan, delineating resort access roads, resort internal circulation roads and resort secondary emergency ingress/egress roads, prior to Final Master Plan Approval.” Hearings Officer Briggs’ decision approving the Thornburgh FMP states at page 16 that the applicant’s predecessor TRC: “* * * has submitted the required plan. COA 30 is satisfied.” Based on this finding, which was not appealed, the Hearings Officer finds Condition of Approval 30 was fully complied with no later than April 21, 2008 when TRC’s modified FMP application was submitted. Condition 36: “Applicant shall coordinate with the Sheriff’s Office and its designated representative to address all public safety needs associated with the resort and the development process.” Hearings Officer Briggs’ decision approving the Thornburgh FMP states at page 17 that: “A letter from the Deschutes County Sheriff’s Office has been submitted as attachment F6. The applicant has coordinated public safety planning for the resort with the Sheriff’s Office through the ‘Public Safety Protection Report for Thornburgh Destination Resort’ attached as Exhibit F5.” Although compliance with Condition of Approval 36 was not required prior to submission of the FMP for approval, the Hearings Officer finds on the basis of Hearings Officer Briggs’ findings, which were not appealed, that Condition of Approval 36 was fully complied with no later than April 21, 2008 when TRC’s modified FMP application was submitted. Condition 37 (Condition 36 in Board’s Decision on Remand): “Applicant 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 the Applicant’s final legal argument, dated January 3, 2006, as show below. * * * Applicant shall present the corrected Phasing Plan and Overnight and Density Calculations chart, consistent with this condition, during the Final Master Plan approval process.” Hearings Officer Briggs’ decision approving the Thornburgh FMP states at page 18: Loyal Land, LLC DR-11-8 Page 31 “The corrected Phasing Plan and Overnight and Density Calculations chart has been submitted as part of the FMP application. COA 37 is satisfied.” Based on this finding, which was not appealed, the Hearings Officer finds Condition of Approval 37 was fully complied with no later than April 21, 2008 when TRC’s modified FMP application was submitted. Condition 38 (Condition of Approval 37 on Remand): “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.” (Emphasis added.) The board’s decision approving the CMP on remand explained the imposition of this condition in relevant part as follows: “In terms of appropriate procedure, the Court of Appeals state, ‘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.’ Gould, 216 Or App at 162. The court noted further,’[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.’ Id. At 162,footnote 4. Gould argues on remand that it is improper to defer to the final master plan hearing the public’s opportunity to comment on the wildlife mitigation plan, because the CMP is the legal basis for the final master plan. However, the Court of Appeals clearly stated that it is proper for the County to defer the presentation of wildlife mitigation plans to the final master plan process, as long as a feasibility determination has been made with respect to DCC 18.113.070(D). As noted above, based on evidence in the record, the Board found in the 2006 Decision that compliance with DCC18.113.070(D) is feasible. Consistent with the Court of Appeals’ decision, the Board adopts Condition No. 26 [sic] below, which postpones determination of compliance with DCC18.113.070(D) until the final master plan approval step and infuses that process with the same participatory rights as those allowed in the CMP approval hearing.” Hearings Officer Briggs’ decision approving the Thornburgh FMP states in relevant part at 19: “In its decision on remand, the BOCC deferred a finding on compliance with this standard [Section 18.113.070(D) – no net loss or degradation of fish and wildlife resources] to the FMP. Gould III, Condition 37, page 10. Thus, the meaning of the Loyal Land, LLC DR-11-8 Page 32 standard, and the sufficiency of the evidence to address it, was the major focus of the parties in the FMP proceedings.” (Emphasis added.) Based on the board’s and Hearings Officer Briggs’ decisions, the Hearings Officer finds compliance with Section 16.113.070(D) was not required for CMP approval, and therefore Condition 38 (Condition 37 on remand) is not relevant to the question of whether the use permitted by the CMP approval was initiated. The applicant argues the use permitted by the CMP approval also was initiated by TRC’s seeking and obtaining FMP approval and defending that approval on appeal – i.e., undertaking the second step of the three-step destination resort development process. While the Hearings Officer cannot argue with the logic of this argument, I find it is inapposite because there was no condition of CMP approval requiring the filing of the FMP, and therefore it could not be “substantially exercised.” 2. Any Failure to Fully Comply with the Conditions is Not the Fault of the Applicant. Because the Hearings Officer has found that all relevant CMP conditions of approval not only have been substantially exercised but were fully complied with, I find this second prong of the initiation requirement in Section 22.36.020(A)(3) is not applicable to the applicant’s proposal. Based on the foregoing findings, the Hearings Officer finds the relevant conditions of CMP approval have been substantially exercised and fully complied with, and therefore I find the use permitted by the CMP approval has been initiated. IV. DECISION: Based on the foregoing Findings of Fact and Conclusions of Law, the Hearings Officer hereby DECLARES that the use approved in the Thornburgh Destination Resort Conceptual Master Plan approval (CU-05-20) has been initiated. Dated this 10 th day of April, 2012. Mailed this 10 th day of April, 2012. ____________________________ Karen H. Green, Hearings Officer THIS DECISION BECOMES FINAL TWELVE DAYS AFTER MAILING UNLESS TIMELY APPEALED BY A PARTY. Community Development Department PlannIng ClvIslonBuik:llng Safety DIvIsion Environmental Sols DIvIsion 117NW Lafayette Avenue Bend Oregon 97701-1925 (541}388-6S7S FAX (541}385-1764 . http://www.co.deschutes.or.us/cdd/ STAFF REPORT FILE NUMBER: DR-11-8 . . ... HEARING DATE: Tue$day, February 7, 2012, at~:30 p~m.inthe Barnes and Sawyer Rooms of the Deschutes SelVrC8s Center,1300 N.W. Wall Street, Bend. . . APPLICANT: LoyalLand,LLC 27333N. galt! Way· Scottsdale, AZ 85262· PROPERTY OWNERS: Loyal Land, LLC, as to tax lots 5000, 5001, 5002, noo, 7701, 7800 and 7900 Agnes DeLashmutt, as to Tax Lot 8000 ATTORNEY FOR . APPLICANT: Steven L Pfeiffer, Attorney at .Law Perkins Coie . 1120 N.W. Couch Street, Tenth Floor Portland, OR 97209-4128 REQUEST: An application for a Declaratory Ruling to determine whether the conceptual master plan for Thornburgh Destination Resort has been initiated. . STAFF CONTACT: Kevin Harrison, Principal Planner I. APPLICABLE CRITERIA: Title 22 of the Deschutes County Code, Development Procedures Chapter 22.36, Limitation on Approvals 22.36.020, Initiation of Use. Chapter 22.40, Declaratory Ruling 22.40.010, Availability of Declaratory Ruling 22.40.020, Persons Who May Apply 22.40.030, Procedures 22.40.040, Effect of Declaratory Ruling 22.40.050, Interpretation Quality Services Performed with Pride I II. BASIC FINDINGS: A. LOCATION: The subject property is at 11800 Eagle Crest Boulevard, Redmond, and is identified on County Assessor's Map 15-12 as tax lots 5000, 5001, 5001, 5002, 7700, 7701, 7800, 7801, 7900 and 8000. B. ZONING: The subject property is zoned Exclusive Farm Use (EFU-SC). It is also within the Destination Resort (DR) Overlay Zone. The property is designated agriculture by the Deschutes County Comprehensive Plan. C. SITE DESCRIPTION: The subject property is approximately 1,970 acres, and is vegetated by juniper woodland. The property covers the south and west portions of the geologic feature know as Cline Buttes. The property contains three dwellings and a bam and is currently used for extensive livestock grazing and open space. D. PROPOSAL: The applicant has submitted an application for a declaratory ruling to determine whether the conceptual master plan for the Thornburgh Destination Resort approved under County file no. CU-05-20 has been initiated. The applicant has submitted a burden of proof statement addressing the criteria under section 22.36.020 listed above, including the actions taken to establish the resort. E. LOT OF RECORD: The subject property was recognized as containing legal lots of record in file no. CU-05-20 via file nos. LR-91-56, LR-98-44, MP-79-159, CU-79-159 and CU-91-68. F. REVIEW PERIOD: This application was submitted on November 1, 2011. The applicant was mailed an incomplete letter on November 8, 2011, and responded on December 22, 2011. The application was deemed complete and accepted for review on December 22, 2011. G. LAND USE HISTORY: The history of the conceptual master plan for the resort is as follows: 1. Conceptual master plan (CU-05-20) denied by Hearings Officer and appealed to Board of County Commissioners (BCC) by file number A-05-i6. 2. BCC approved CU-05-20 on May 10, 2006. 3. CU-05-20 appealed to Land Use Board of Appeals (LUBA) under LUBA Nos. 2006-100 and 101. LUBA decision filed on May 14, 2007. 4. LUBA decisions appealed to Court of Appeals (COA). COA issued decision (A 135856) on November 7, 2007. The result is a remand of the County's decision on CU-05-20. 5. BCC issued decision on remand {Document No. 20OS-15i} on April 9, 20OS. 6. BCC decision on remand appealed to LUBA under LUBA No. 2008-068. LUBA affirmed the BCe decision on September ii, 2008. 7. LUBA No. 2008-068 appealed to COA (A140139), which affirmed LUBA's decision on April 22, 2009. 8. COA deciSion appealed to Oregon Supreme Court (8057541), which declined review on October 9, 2009. DR-11-7 2 9. COA issued Appellate Judgment on December 10, 2009, and lUBA responded with its notice of Appellate Judgment on December 15, 2009, at which time all appeal rights are exhausted on CU-05-20. The history of the final master plan for the resort is as follows: 1. Final master plan M-07 -21MA-08-6 approved by County on October 8, 2008. 2. County decision on M-07-2/MA-08-6 appealed to lUBA under lUBA No. 2008­ 203. lUBA remanded the County decision. 3. lUBA No. 2008-203 appealed to COA (A143430). which affirmed lUBA's decision on February 24, 2010. 4. lUBA issued Appellate Judgment on August 17, 2010, remanding County's decision on M-07-2/MA-08-6. No further action on the final master plan has been taken. Ill. CONClUSIONARY FINDINGS: Chapter 22.40, Declaratory Ruling 1. Section 22.40.010. Availability of declaratorv ruling. A. Subject to the other provisions of Dee 22.40.010, there shall be available for the Counqrs comprehensive plans, zoning ordinances, the subdivision and partition ordinance and DeC Title 22 a process for: 3. Determining whether an approval has been Initiated or considering the revocation of a previously issued land use permit, quasiwjudlcial plan amendment or zone change; Such a determination or interpretation shall be known as a lidec/aratory ruling" and shall be processed in accordance with Dee 22.40. In all cases, as part of making a determination or interpretation the Planning Director (where appropriate) or Hearings Body (where appropriate) shall have the authority to declare the rights and obligations of persons affected by the ruling. FINDING: The applicant is requesting a determination of whether the use approved under CU-05-20 has been initiated. B. A declaratory ruling shall be available only in instances involving a fact­ specific controversy and to resolve and determine the particular rights and obligations of part/cular parties to the controversy. Declaratory proceedings shall not be used to grant an advisory opinion. Declaratory proceedings shall not be used as a substitute for seeking an amendment of general applicability to a legislative enactment. FINDING: The request for the declaratory ruling is fact-specific, to determine whether the conditional use permit for the conceptual master plan for Thomburgh Destination Resort has been initiated. The applicant is not requesting an advisory opinion or an amendment to the applicability of a legislative enactment. DR-11-7 3 I I \ 1 I 1 C. Declaratory rulings shall not be used as a substitute for an appeal of a decision in a land use action or for a modification of an approval. In the case of a ruling on a land use action a declaratory ruling shall not be available until six months after a decision in the land use action is final. FINDING: The applicant is not substituting the declaratory ruling for an appeal. The decision on CU-05-20 became final on December 10, 2009; the applicant submitted the declaratory ruling on November 1, 2011. D. The Planning Director may refuse to accept and the Hearings Officer may deny an application for a declaratory ruling if: 1. The Planning Director or Hearings Officer determines that the question presented can be decided in conjunction with approving or denying a pending land use application or if in the Planning Director or Hearing Officer's judgment the requested determination should be made as part of a decision on an application for a quasi-judicial plan amendment or zone change or a land use permit not yet filed; or 2. The Planning Director or Hearings Officer determines that there is an enforcement case pending in district or circuit court in which the same issue necessarily will be decided as to the applicant and the applicant failed to file the request for a declaratory ruling within two weeks after being cited or served with a complaint The Planning Director or Hearings Officer's determination to not accept or deny an application under DCC 22.40.010 shall be the County's final decision. FINDING: Staff finds that the question cannot be decided in conjunction with a land use permit or a plan amendment or zone change. There is no enforcement case pending on this matter. 2. Section 22.40.020. Persons who may apply. A. DCC 22.08.010(8) notwithstanding. the following persons may initiate a declaratory ruling under DCC 22.40: 1. The owner of a property requesting a declaratory ruling relating to the use of the owner's property. 2. In cases where the request is to interpret a previously issued quasi· judicial plan amendment. zone change or land use pennit, the holder of the permit; or 3. In all cases arising under DCC 22.40.010. the Planning Director. FINDING: The applicant is the owner of tax lots 5000, 5001, 5002, 7700, 7701, 7800, 7801 and 7900, which represents the majority of the property covered by CU-05-20. Therefore, staff finds that the applicant meets DCC 22.40.020(A)(1). The remaining property in the resort covered by CU-05-20 is tax lot 8000, which is owned by Agnes DR-11-7 4 I J Delashmutt. Pursuant to DCC 22.36.050(A}, a land use permit runs with the land and is transferrable to an applicant's successor in interest. Therefore, staff finds that the applicant meets DCC 22.40.020(A)(2). The representative for Agnes Delashmutt submitted a letter questioning whether loyal land can unilaterally apply for this declaratory ruling. In its supplemental burden of proof, incorporated herein by reference, the applicant contends that, under the Hearings Officer's ruling in County File Nos. A·10·2/NW·OQ·1, incorporated herein by reference, the County does not err in accepting an application signed by one property owner where multiple properties, and owners, may exist. Staff agrees. For these reasons, staff believes that the applicant has made a valid application for a declaratory ruling. B. A request for a declaratory ruling shall be Initiated by filing an application with the planning dIvIsion and, except for applIcations initiated by the Planning Director, shall be accompanied by such fees as have been set by the Planning Division. Each application for a declaratory ruling shall include the precise question on which a ruling is sought. The applicant shall set forth whatever facts are relevant and necessary for making the determination and such other information as may be required by the Planning Division. FINDING: The applicant filed the necessary declaratory ruling application and paid the required fee. The question posed by the applicant is whether the use approved under CU·05.20 has been initiated. 3. Section 22.40.030, Procedures. Except as set forth in DCC 22.40 or in applicable proviSions of a zoning ordinance, the procedures for making declaratory rulings shall be the same as set forth in DCC Title 22 for land use actions. Where the Planning Division is the applicant, the Planning DMsion shall bear the same burden that applicants generally bear In pursuing a land use action. I FINDING: The declaratory ruling application is being processed according to Title 22. Notice of the public hearing was published in The Bend Bulletin on January 8, 2012. Additionally, notice of the hearing was sent to all owners within the resort and all property owners within 750 feet of the resort's boundaries. 4. Section 22.40.040, Effect of declaratory ruling. I j A. A declaratory ruling shall be conclusive on the subject of the ruling and bind the partles thereto as to the determination made. B. DeC 22.28.040 notwithstanding, and except as specifically aI/owed therein, parties to a declaratory ruling shall not be entitled to reapply for a declaratory ruling on the same question. C. Except where a declaratory ruling is made by the Board of County Commissioners, the ruling shall not constitute a policy of Deschutes County. DR-11-7 5 I FINDING: The declaratory ruling decision will be conclusive on the issue of whether the use approved under CU-05-20 has been initiated. No reapplication is allowed and this decision does not constitute a policy of the County. 5. Section 22.40.050, Interpretation. Interpretations made under DeC 22.40 shall not have the effect of amending the interpreted language. Interpretation shall be made only of language that Is ambiguous either on its face or in its application. Any interpretation of a provision of the comprehensive plan or other land use ordinance shall consider applicable provisions of the comprehensive plan and the purpose and Intent of the ordinance as applied to the particular section in question. FINDING: No interpretation of the comprehensive plan or zoning ordinance is being considered as part of this declaratory ruling request. Chapter 22.36, Limitations on Approval. 1. Section 22.36.010, Expiration of approval. FINDING: Section 22.36.010 (O) states that: "A determination of whether a land use has been initiated shall be processed as a declaratory ruling." Consequently, the applicant has applied for a declaratory ruling for the project under DeC Chapter 22.40 and Section 22.36.020 of Title 22. 2. Section 22.36.020, Initiation of use. A. For the purposes of DeC 22.36.020, development action undertaken under a land use approval described in DeC 22.36.010, has been "initiated" if It Is determined that: 1. The proposed use has lawfully occurred; 2. Substantial construction toward completion of the land use approval has taken place; or 3. Where construction is not required by the approval, the conditions of a permit or approval have been substantially exercised and any failure to fully comply with the conditions is not the fault of the applicant. B. For the purposes of DCe 22.36.020, "substantial construction" has occurred when the holder of a land use approval has phYSically altered the land or structure or changed the use thereof and such alteration or change is directed toward the completion and is sufficient in tenns of time, labor or money spent to demonstrate a good faith effort to complete the development FINDING: The proposed resort has not been constructed. The applicant alleges that the conditions of approval for CU-05-20 have been substantially exercised and that any failure to fully comply with the conditions is not the fault of the applicant. Staff agrees, for the reasons stated below. DR-11-7 6 By way of context, staff notes that destination resort approval takes place within a three (3)-step process. The first step is obtaining approval of a Conceptual Master Plan (CMP). The second step is obtaining approval of a Final Master Plan (FMP). The third step is obtaining approval of individual site plans and/or tentative subdivision plans. The CMP approval included 38 conditions of approval. Some of the conditions of approval must be satisfied prior to final FMP approval. Others carry through to later, specific, development proposals that must be submitted for each phase of the project. In her decision on the FMP (County file nos. M-07-2IMA-08-6, incorporated herein by reference), the Hearings Officer found that the applicant had satisfied CMP conditions of approval 3, 8, 9, 11, 13, 14A, 14B, 15, 24, 30, 37 and 38. Other conditions were imposed on the FMP approval that ensure compliance throughout the development process and, in some cases, through the life of the development itself. The only condition of approval the applicant was required to meet before FMP approval that has not been satisfied is condition #38, relating to submittal of a wildlife mitigation plan. The applicant submitted the plan but LUBA remanded the County's findings on that plan's consistency with OCC 18.113.070(0).1 I ! The applicant also asserts that the use has been initiated by obtaining approval of the1 FMP and defending it on appeal. Although LUBA remanded the County's approval of the FMP, the remand did not take issue with the Hearings Officer's conclusion as to satisfaction of conditions of approval, except condition #38. Finally, the applicant al/eges that circumstances outside of the applicant's control prevented the applicant from making additional progress on the project. These circumstances include prolonged delays caused by appeals of the CMP and FMP and the foreclosure and change in ownership of the property. Based upon the preceding, staff believes that the conditions of approval for the CMP have been substantially exercised and that the applicant has shown a good faith effort to comp/ete the development Moreover, staff believes that any failure to fully comply with the conditions is not solely the fault of the applicant. IV. RECOMMENDATION: Staff believes the applicant has met the burden of proof for this declaratory ruling and that the use authorized under CU-05-20 has been initiated. V. RECOMMENDED CON On-ION OF APPROVAL: 1. The applicant shall meet all conditions of approval of M-07 -2/MA-08-6. Dated this 17th day of January, 2012 Mailed this 17th day of January, 2012 DR-11-1 7 Community Development Department Planning Division Building safety DivIsion Environmental Soil. Division 117 NW Lafayette Avenue Bend Oregon 97701-1925 (541)388-6575 FAX (541)385-1764 http://www.co.deschutes.or.us/cdd/ CERTIFICATE OF MAILING FILE NUMBER: DR-11-8 DOCUMENT MAILED: Staff Report MAPITAX LOT NUMBERS: 15·12, TAX LOTS 5000. 5001, 5002, 7700. 7701, 7800, 7801 7900 and 8000 I certify that on the 16111 day of January, 2012 the attached notice(s)/report(s), dated January 16, 2012. was/were mailed by first class mail, postage prepaid, to the person(s) and address(es) set forth on the attached list. Dated this 16111 day of January, 2012. COMMUNITY DEVELOPMENT DEPARTMENT By: Sher Buckner 1 ! 1 Steven L. Pfeiffer, Attorney at Law Perkins Coie, lLP 1120 NW Couch Street Tenth Floor Portland, OR 97209 David J. Petersen, Attorney at Law Tonkon Torp, LLP 1600 Pioneer Tower 888 SW Fifth Avenue Portland, OR 97204 Paul Dewey. Attorney at Law 1539 NW Vicksburg Bend, OR 97701 (via email) Agnes DeLashmutt 4048 NW Xavier Redmond, OR 97756 Hearings Officer Karen Green Loyal Land, LLC 27333 N. 961h Way Scottsdale, AZ 85262 Quality Services Performed 'witlt Pride 1