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HomeMy WebLinkAboutOrdinance 017 - Econ Dev AnalysisI I Deschutes County Board of CommissionersI 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 I (541) 388-6570 -Fax (541) 385-3202 -www.deschutes.org I AGENDA REQUEST & STAFF REPORT For Board WORK SESSION of September 19,2011 ! Please see directions for completing this document on the next page. .~ DATE: September 13,2011. FROM: Peter Gutowsky Community Development Department 385-1709 I TITLE OF AGENDA ITEM: For September 26: A public hearing on and consideration of First Reading of Ordinance No. 2011-017, amending Title 23, to Adopt a Regional Economic Opportunity Analysis and Regional Large-Lot I Industrial Land Policies for Central Oregon. 1 PUBLIC HEARING ON THIS DATE? Yes. 1 BACKGROUND AND POLICY IMPLICATIONS: Empowered by a 2009-2011 Department of Land Conservation and Development (DLCD) technical assistance grant, Deschutes County hired Johnson-Reid, an economic development consultant team 1 I t who, along with regional planners, economic development specialists and state agency representatives, identified and articulated a strategy and process to create a regional large lot industrial land supply that enables Central Oregon (Crook, Deschutes and Jefferson Counties and their primary urban areas) to be a competitive region for industrial recruitment. The Regional Economic Opportunity Analysis (REOA) recommends six 50-acre sites in three different jurisdictions, based on market choice for diversity of sites in different locations (one 200 acre site is for a regional hub). Long-term supply calls for a total of seventeen sites. As a result of the REOA, Deschutes County is currently proposing adopting it and several regional economic development policies into Deschutes County's Comprehensive Plan. Upon adoption, this policy framework will enable Crook and Jefferson Counties to undertake similar legislative amendments. Furthermore the REOA and economic development policies provide a regional platform to implement a large-lot industrial siting program in Central Oregon that has the potential to be a model statewide. . I FISCAL IMPLICATIONS: None I RECOMMENDATION & ACTION REQUESTED: Hold the public hearing. Motion: First reading by Title only of Ordinance No. 2011-017 I ATTENDANCE: Peter Gutowsky and Legal Counsel ! DISTRIBUTION OF DOCUMENTS: Peter Gutowsky, CDD. REVIEWED LEGAL COUNSEL For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Ordinance Amending Title 23, of the Deschutes '" County Comprehensive Plan to Adopt a Regional '" ORDINANCE NO. 2011-017 Economic Opportunity Analysis and Regional Large­'" Lot Industrial Land Policies for Central Oregon '" WHEREAS, in 20 I 0 the Deschutes County, in collaboration with Crook and Jefferson counties and their respective cities, initiated a process for conducting a Regional Economic Opportunity Analysis ("REO A") for Central Oregon, and WHEREAS, the REOA was completed in May 31, 2011; and WHEREAS, the Deschutes County Planning Commission held a public hearing on August 25, 2011, to review the REOA and corresponding regional large-lot industrial land policies and recommended adoption of the proposed Comprehensive Plan amendments; and WHEREAS, the Board of County Commissioners ("Board") held a duly noticed public hearing on September 26, 2011; and WHEREAS, the Board finds it in the public interest to adopt the REOA and corresponding regional large-lot industrial land policies into the Comprehensive Plan; now, therefore, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ORDAINS as follows: Section 1. AMENDMENT. DCC 23.48, Urbanization, is amended to read as described in Exhlbit "A," attached hereto and by this reference incorporated herein, with new language underlined and language to be deleted in strikethrough . .section 2. AMENDMENT. DCC 23.52, Economy, is amended to read as described in Exhibit "B," attached hereto and by this reference incorporated herein, with new language underlined and language to be deleted in strikethrough. UJ PAGE 1 OF2 -ORDINANCENO. 2011-017 Section 3. FINDINGS. The Board adopts as its findings Exhibit "C," attached and incorporated by reference herein. Dated this of ____,2011 BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON TAMMY BANEY, Chair ANTHONY De BONE, Vice Chair ATTEST: Recording Secretary ALAN UNGER, Commissioner Date of 1st Reading: __day of ____ Date of 2nd Reading: __day of ______--' 2011. Record of Adoption Vote: Commissioner Yes No Abstained Excused Tammy Baney Anthony DeBone Alan Unger Effective date: __day of _____, 2011. PAGE 2 OF 2 -ORDINANCE NO. 2011-017 "****,, Denotes portions of the code not amended by Ordinance 2011-017. Chapter 23.52. ECONOMY **** 23.52.020. Goals. **** 23.52.020. Goals. I. To diversify and improve the economy of the area. 2. To enhance and maintain the existing natural resource, commercial and industrial segments of the local economy. ~ To build a strong and thriving regional economy by establishing and actively maintaining a competitive portfolio of large lot employment sites and coordinating public investments. policies and regulations to support regional and state economic development objectives in Central Oregon. (2010-017 §2. 2011; Ord. 2002-005 § 1,2002; Ord. 2000-017 § 1,2000; Ord . 80-203, 1980; PL-20, 1979) PAGE 1 OF 1 -EXHIBIT "B" TO ORDINANCE 2011-017 Chapter 23.48. URBANIZATION 23.48.010. Urbanization. 23.48.020. Goals. 23.48.030. Urban Growth Boundary Policies. 23.48.040. Urban Reserve Area Policies 23.48 .050 . Regional Economic Opportunity Policies . 23.48.010. Urbanization. A major emphasis in Oregon's land use planning is locating the majority of new development in urban areas. The rural areas are primarily to be protected for natural resource utilization. Between the urban areas (incorporated cities) and the rural areas lies what is referred to as the urbanizing area. Usually under the jurisdiction of the County, this is the area where the future population will be located and where the city's services must be extended. In Deschutes County the incorporated cities of Bend, Redmond and Sisters have been given the authority, by the County, to prepare plans for their respective urban areas. These plans are coordinated with the County's planning effort and will eventually be adopted as part of the County's comprehensive plan. In addition to a plan each city also prepares an urban area zoning ordinance and a cooperative agreement for mutually administering the urbanizing area. All three incorporated cities were growing at rapid rates by the time the Deschutes County Year 2000 Comprehensive Plan was adopted in 1979. At that time, the County estimated Bend's urban area contained a population of33,000 people, Redmond's was approximately 7,500, and Sisters' approximately 900. All of the cities were expected to continue their growth to the year 2000. The 2000 Census results for Bend, Redmond, and Sisters were 52,029, 13,481 , and 959, respectively. In 2000, 58 percent of the County's population lived in urban areas. The fourth city in Deschutes County is the City of La Pine. Incorporated on November 7, 2006, the City of La Pine's 2006 population estimate of 1,590 was certified by Portland State University, Population and Research Center on December 15, 2007. As of January 1, 2009, La Pine is coordinating with the Oregon Department of Land Conservation and Development to develop its first comprehensive plan, which when acknowledged, will officially recognize an urban growth boundary. The Deschutes County Coordinated Population Forecast, adopted in August 2004 estimated that by the year 2025, the County's population will reach 240,811 people. The 2004 forecast estimated 109,389 people in Bend, 45,724 people in Redmond, 3,747 people in Sisters, and 81,951 in non-urban, unincorporated areas. If population growth occurs as forecasted in 2004, 66 percent of the County's population will reside in urban areas by 2025. PAGE 1 OF 9 -EXHIBIT "A" TO ORDINANCE 2011-017 In 2000 By 2025 Nonurban, 41% 13% Sisters, 2% Redmond, 19% As a result of the La Pine incorporation, Deschutes County updated its Coordinated Population Forecast with Ordinance 2009-006. The purpose of this modification was to adopt a conservative twenty-year population forecast for the City of La Pine that can be used by city officials and the Oregon Department of Land Conservation and Development to estimate future land need and an urban growth boundary. Deschutes County's 2004 Coordinated Population Forecast applied a conservative 2.2% annual average growth rate to estimate the county's unincorporated population from 2000 to 2025. This method applied the growth rate as a compounding rate throughout the entire forecast. Recognizing that incorporation occurred on November 7, 2006, it is reasonable to apply a 2.2% annual average growth rate to La Pine's estimated population, starting in July 1, 2007, the flrst time Portland State University's Population Research Center officially certified the City of La Pine in an Annual Population Report. By extending the growth rate to the Year 2025, La Pine's population will be 2,352. The non-urban unincorporated population decreases by 2,352 from its original projection of 81 ,951 to 79,599. Extending the growth rate to the Year 2029 results in a twenty year population estimate of 2,566 for La Pine. In 2025 Nonurban, 33% 1% Redmond, 19% Such growth will undoubtedly create severe problems for the provision of public services and adequate amounts of residential, commercial and industrial lands. Other problems are the protection of important aesthetic values, needed improvements in appearance and function of existing developments, safety and aesthetic problems, as well as energy and service costs, created by strip development; and problems with coordination and cooperation between the various agencies serving the public in urban areas, a problem which already exists. PAGE 2 OF 9 -EXHfBIT "A" TO ORDINANCE 2011-017 Some opportunities also exist. Cities in Deschutes County are located in one of the most beautiful and livable environments in the State. All of the corrununities have within their authority the power to guide their community's growth for the public's benefit. Cooperation and mutual effort between the cities, special districts and the County could mean urban environments that not only function efficiently but are attractive and desirable places to live. Deschutes, Crook and Jefferson counties and their respective cities. in 2010 and 2011. undertook an unprecedented regional evaluation of the economic opportunities and constraints associated with users of lame industrial parcels in the Central Oregon region. During the 1990s, the Central Oregon Region undertook a dramatic transformation from an economy concentrated largely in wood products into a service based economy serving a growing and diverse tourism and household base. Accelerated in-migration and tourism growth gave way to rapid economic expansion, escalation in home prices, and a systematic shift in the local economy from goods producing activities to service oriented industries. While initially representing a diversification of the local economy. this shift led to an over-reliance upon these types of indu tries. During the recent recession, the regional economy's vulnerabilities became apparent. Suitable land for loday's industrial development forms emerged as one of Oregon's most severe development challenges. As a region. Central Oregon specifically targeted basic industries with large lot industrial needs to support the region' s economic development objectives. Throu(!h Oregon's statewide planning framework. a Regional Economic Opportunity Analysis CREOA) evaluated Central Oregon's opportunities, competitiveness, ability, and willingness to recruited and organically grown finns requiring new large scale development models. That REOA dated May 31, 2011 is attached to the findings in Exhibit C to Ordinance 2011-017. The Central Oregon region needs a critical mass of competitive and diverse vacant, developable industrial sites in order for site selectors representing potential industrial recruitment opportunities to consider the region. A regional consensus has been agreed upon to establish and pro-actively manage a regional land supply of large-lot industrial sites to enable the region to become competitive in industrial recruitment. This regional strategy includes individual site infrastructure improvement a sessment and implementation programs and requirements. Regional planning, management, and governance of a sustainable large-lot industrial vacant land supply will involve Central Oregon city and county governments, including advice and guidance from Central Oregon Planning Directors Association, Economic Development in Central Oregon and Oregon Business Development Department to assure an adequate, self-renewing regional supply of developable and competitive vacant industrial sites. The purposes of DCC 23.48 are to provide the link between the urban and rural areas, and to provide some basic parameters within which the urban areas of Deschutes County shall develop, although the specific urban area plan for each community shall be the prevailing document for guiding growth in its respective area. These policies will permit the County to review each urban area plan against common criteria and assure consistency County-wide. (Ord. 2010-017 §1, 2011; 2009-006 §3, 2009; Ord. 2004-012 §4, 2004; Ord. 2002-005 §I, 2002; Ord. 2000­ 017 § 1, 2000; Ord. 92-051, 1992; PL-20, 1979) 23.48.020. Goals. I. To provide for an orderly and efficient transition from rural to urban lands. 2. To assure that planning and implementation of plans in the urban areas are consistent with the best interest of both urban and urbanizing area residents . 3. To retain and enhance the character and quality of the urban areas as growth occurs. To recognize and respect the unusual natural beauty and character of the area. PAGE 3 OF 9 -EXHIBIT"A" TO ORDIN ANCE 2011-017 4. To provide a sound basis for urbanization by establishing proper relationships between residential, commercial, industrial and open land uses; fostering intergovenunental cooperation; and providing an efficient transportation system. 5. To retain and enhance desirable existing areas and to revitalize , rehabilitate and redevelop less desirable existing areas; to encourage and promote innovations in development techniques in order to obtain maximum livability and excellence in planning and design for development. 6. To recognize the City of Redmond Comprehensive Plan as the policy document that provides the basis for implementing land use plans and ordinances in Redmond's Urban Growth Boundary. The general purpose is to provide for one principal means of implementing the Redmond Comprehensive Plan . 7. To build a strong and thriving regional economy by establishing and actively maintainlng a competitive portfolio of large lot employment sites and coordinating public investments, policies and regulations to support re(rional and state economic development objectives in Central Oregon. (Ord. 2010-017 &1. 2011 ; 2006-018 §1, 2006; Ord. 2002-005 §1, 2002; Ord . 2000-017 §1, 2000; Ord. 92­ 051, 1992; PL-20 , 1979) 23.48.030. Urban Growth Boundary Policies. 1. Urbanization. Urbanization policies refer to an unincorporated urban growth areas within an urban growth boundary but outside the boundaries of a city, and are intended to assist in the decision making about the conversion of rural to urban uses, and to help in the development of consistent urban area plan. More detailed policies for the urban areas of Bend, Redmond and Sisters are specified in the urban area plans and they shall be the primary documents for coordination and land use decisions in their respective areas . a . Urban growth boundaries identify and separate urbanizable land from rural land. Conversion of urbanizable land to urban uses shall be based on consideration of: 1. Orderly and economic provision for public facilities and services; 2. Availability of sufficient land for the various uses to insure choices in the marketplace; and 3. Encouragement of development within urban areas before conversion of urbanizable areas. b. Urban growth boundaries shall be established or expanded based upon the following: 1. Demonstrated need to accommodate long-range urban population growth requirements consistent with LCDC goals; 2. Need for housing, employment opportunities and livability; 3 . Orderly and economic provision for public facilities and services; 4. Maximum efficiency of land uses within and on the fringe of the existing urban area; 5. Environmental, energy, economic and social consequences; 6. Retention of agricultural land as defined, with Class I being the highest priority for retention and Class VI the lowest priority; and, 7 . Compatibility of the proposed urban uses with nearby agricultural activities . 2. Coordination. a. Within an urban growth boundary City and County land use regulations and standards shall be mutually supportive, jointly proposed and adopted, administered and enforced, and plans to integrate the type, timing and location of development of public facilities and services in a manner to accommodate demand as urbanizable lands become more urbanized, and to guide the community's growth. b. Urban development shall be permitted in areas where services are available or can be provided in a manner which will minimize costs related to necessary urban services such as schools, parks, highways, police, garbage disposal, fire protection, libraries and other facilities and services. PAGE 4 OF 9 -EXHIBlT "A" TO ORDINANCE 2011-017 c. Deschutes County adopts by the goals, programs, elements, intent the Redmond Comprehensive Plan, the officially adopted ('''tn..",,,, City Redmond and its Growth Boundary. 3. Residential development. a. developments should located so that they are convenient to of employment shopping facilities, and they should be developed in ways which are consistent with the character of the topography and soils on the Residential areas should offer a wide of housing in locations suited to rPT,p"'fPrlb. Residential indicated on plans in County codes, ordinances and development policies. c. In residential areas, development should be ",u\,vu,a~;",u have yards or rear along arterial streets as a means of reducing through turning movements in and out d. Higher density residential areas should be concentrated near commercial services and public open space. 4. a. Commercial facilities should be allocated in a reasonable amount and in a planned relationship to the they serve. Any expansion uses should be as centers rather than strips and very carefully considered so that they do not cause unnecessary congestion do not detract the appearance of the b. Neighborhood commercial shopping areas, school and public uses may be located within residential districts and should have development standards which the residential area. Development should be established for those commercial uses which will provide off-street parking, landscaping, access control, sign regulations and design review. c. commercial along not be Commercial uses along major streets and highways shall subject to special development standards relating to landscaping, setbacks, signs and median No development VUl"H~''"' urban growth boundaries, rural planned developments, or resorts shall be permitted. d. All commercial shopping centers shall be to special standards to setbacks, landscaping, physical buffers, screening, access, signs, building heights and design Care shall be taken to control the size of any new commercial developments that may be as growth occurs. Sites shall not be to a point where additional uses which would generate traffic from outside the area are necessary to make the 5. Industrial. a. Community should be preserving prime industrial industrial Industrial areas shall prcltectea from incompatible commercial and residential uses. b. Industrial areas of shall located necessary services can be provided and with good access to transportation facilities. c. efforts should be directed toward improving commercial and industrial areas so that they make a positive contribution to the environment of the community. d. Industrial areas shall provide for new industry in a park-like setting. e. All industrial centers shall be subject to special development relating to setbacks, landscaping physical buffers, access, building heights and review. 6. Community appearance. a. Because of pttpt'tn!p use as a visual and noise buffer, and their relationship to trees or stands trees shall protected feasible in industrial, cornm.erc and urban developments. PAGE 5 OF 9 -EXHIBIT "A" TO ORDINANCE 2011-017 b. Community appearance shall continue to be a major concern. Landscaping, sign regulations and building design review shall contribute to an improved environment. Major natural features such as rock outcrops, stream banks, canyons, or stands of trees should be preserved as a community asset as the area develops. c. Attempts by each community to identify those characteristics which give the community its individual identity and to preserve and expand those characteristics as growth occurs shall be encouraged by the County. d. Sign regulations shall be adopted which limit the size, location and number of signs in commercial and industrial areas and have amortization provisions to remove existing signs which do not conform with the regulations within a reasonable period of time. 7. Urban transportation. a. Expressways and arterial streets should have landscaped median strips wherever possible together with left-turn refuge lanes . Public transportation routes should be encouraged throughout the area and, if necessary, special provisions made in street design to accommodate ways. b. Streets and highways should be located and constructed in a manner which will accommodate both current and future traffic needs. Implementation of arterial and collector road systems should be joint County and City effort with strict time schedules and priorities. c. Interurban transportation facilities should be located in or near the central business district or main highway. Special consideration will be needed to evaluate public transportation needs and possibilities within the urban area. d. Except for major arterial and collector streets, street patterns in residential areas should be designed to provide convenient access to each living unit but not encourage through-traffic. Major and collector streets should be secured and developed under a strict time frame so that a reasonable circulation pattern will result. e. Provisions should be considered which will permit mass transit vehicles on arterial and collector streets within residential areas in the future. 8. Facilities and services. a. Efforts should be made over a sustained period of time to place utility lines underground in existing and new residential areas. b. Parks should be located within walking distance of every dwelling unit in the community. Parks should be centrally located and easily accessible to the areas they are intended to serve (see Recreation). c. Certain private recreational uses such as golf courses or riding stables can be successfully integrated into residential areas provided the location, design and operation are compatible with surrounding residential developments. d. Fire protection in the planning area should be considered as a common problem by the City, County, water district and the fire protection district, and equipment should reflect the character of land uses in the community. e. Efforts should be made to encourage Federal and State agencies to locate in urban areas. f. Efforts should be made to group public offices in a more or less common location as a convenience to the public. 9. Other. a. In many cases, home occupations are a legitimate use within residential areas and should be permitted provided that the use displays no outward manifestations of business other an a small business sign attached to the wall of the house . b. Recreation vehicle storage should be permitted in planned residential areas and these facilities shall be landscaped and otherwise screened from adjacent residential uses. c. Consistent with policies in the Historic and Cultural chapter rehabilitation and/or redevelopment of older residential areas shall be encouraged. PAGE 6 OF 9 -EXHIBIT"A" TO ORDINANCE 2011-017 d. All development in Deschutes County shall comply with all applicable state and federal rules, regulations and standards. (Ord. 2006-018 §1, 2006; Ord. 2005-023 §1, 2005; Ord. 2002-005 §1, 2002; Ord. 2000-017 §1, 2000; Ord. 92-051, 1992; PL-20, 1979) 23.48.040. Urban Reserve Area Policies .. 1. Redmond Urban Reserve Area . The following policies apply to the division and development of land in the area designated Redmond Urban Reserve on the County Comprehensive Plan map. a. The Redmond Urban Reserve Area (RURA) shall be designated with an urban reserve boundary located on the County's Comprehensive Plan Map . b . The County shall implement the Urban Reserve Area designation through the application of a RURA Combining Zone . The text of this combining zone shall be added and maintained in Title 18, County Zoning, of the Deschutes County Code. c. Until included in the Redmond Urban Growth Boundary, lands zoned Multiple Use Agricultural, Surface Mining, Rural Residential, or EFU in the RURA shall continue to be planned and zoned for rural uses, but in a manner that ensures a range of opportunities for the orderly, economic and efficient provision of urban services when these lands are included in the urban growth boundary. d . The County, by designating a RURA, shall adopt and implement land use regulations that ensure development and division of land in the Multiple Use Agricultural, Surface Mining or Rural Residential zoning districts, will not hinder the efficient transition to urban land uses and the orderly and efficient provision of urban services. These land use regulations shall include: 1. Prohibition on the creation of new parcels less than ten acres; 2. Regulations that prohibit zone changes or plan amendments allowing more intensive uses, including higher residential density, than permitted by the acknowledged zoning in effect as of the date of establishment of the urban reserve area. Such regulations shall remain in effect until such time as the land is included in the Redmond Urban Growth Boundary. e . Partitions of land zoned Exclusive Farm Use shall be allowed according to state law and the County Zoning Ordinance. f. The City of Redmond and Deschutes County shall adopt a RURA Agreement consistent with their respective comprehensive plans and the requirements of OAR 660-021-0050. g. New arterial and collector right-of-way established in the RURA shall meet the right-of-way standards of Deschutes County or the City of Redmond, whichever is greater. h. The siting of new development shall be regulated along existing and future arterial and collector right-of-way, designated on the County's Transportation System Plan , for the purpose of ensuring the opportunity for future urban development and public facilities. l. The siting of a single family dwelling on a legal parcel is permissible if the single family dwelling would otherwise have been allowed under law, existing prior to the designation of the parcel as part of the Redmond Urban Reserve Area. J. City of Redmond shall collaborate with Deschutes County to assure that the County owned 1800 acres in the RURA is master planned before it is incorporated into Redmond's urban growth boundary. (Ord. 2002-005 §1, 2002; Ord. 2000-017 §1, 2000; Ord. 92-051 , 1992; PL-20, 1979; Ord. 2005-023 §1, 2005) PAGE 7 OF 9 -EXHIBIT "A" TO ORDINANCE 2011-017 23 .48.050. Regional Economic Opportunity Policies . .L Deschutes County supports a multi-jurisdictional cooperative effort to pursue a regional approach to establish a competitive supply of sites particularly designed to address out-of-region industries that may locate in Central Oregon. 2 . Deschutes County recol!llizes the importance for maintaining an appropriate available large-lot industrial land supply that is readily developable in Central Oregon . .1. The Central Ore eon Large Lot Industrial Relrional Economic Opportunity Analysis (REOA) dated May 31, 20 II and the City of La Pine Strengths and Weaknesses outlined on Page 4 of Exhibit C to Ordinance 2011-017 are incorporated and adopted by reference herein. Findings from the REOA recognize: !!:. The Central Oregon region, comprised of Jefferson, Crook and Deschutes counties and its respective cities recognize the market reality tha t the region currently serves as an integrated, cohesive economic unit, sharing work force and commercial amenities, and should be marketed as such to increase its perceived scale in the market. !h The Central Oregon region needs a critical mass of competitive and diverse vacant. developable large lot industrial sites in order for site selectors representing potential industrial recruitment to consider the region, along with all of the other needed support factors including adequately skilled workforce, workforce training proQraIDs, worker housing. supportive local government, utility services. transportation . and quality of life. ~ Developing and maintaining a supply of large readily available industrial sites i not currently part of regional economic development efforts, therefore the region's jurisdictions have developed Goal 9 compliance based on projected growth, and the attraction of a large industrial user that is recognized as an exogenous impact to these projections. d . The exogenous short-term need for large-lot industrial sites in Central Oree:on is an additional component of a city's twenty-year land upply. ~ Competing as a cohesive region allows Central Oregon to market a larger available work force, the size of which is often a key Iocational criterion for finns. [ The need for large lot industrial sites is a regional need, with the economic development benefits widely distributed regardless of the specific firm location. &. Large-lot industrial lands supply initiative exceeds the capacitv of any single jurisdiction. h. A large-lot industrial site is 50 acres or larger with specific site attributes and amenities. ~ Short teno supply is a readily available and developable inventory of 6 large sites in at least three separate jurisdictions provide for choice to prospective industries or site selectors. Two of the 6 sites would be 100 to 200 acres and one site would be 200+ acres. 1 At least one of the 6 short term (readily available/developable in 6 months) sites would con ist of a major, centraUy located large-scale development property near the region 's geographic and workforce center, and where key infrastructure is in place and has excess capacity. either the north end of Bend or the southern end of Redmond, east of Highway 97 . 4. The short teno supply of 6 sites is a community development objective of Central Oregon for establishing large-lot industrial uses. 5. The supply of up to 6 sites, located in existing or amended Urban Growth Boundaries CUGBs), addresses the short-term large lot industrial regional land need in Central Oregon and can be incomorated as an additional component of a city's twenty year land supply. 6 . The supply of up to 17 long-term sites. which includes the 6 short term sites, represents the currently projected (total) 20-year regional land supply of this special industrial land classification. 7 . Long teno inventory identifies sites that replenish the short ternl inventory when they are absorbed 8 . Central Oregon cities and counties shall. within 6 months of the adoption of this policy, execute Memorandums of Understanding (MOUs) that specify: PAGE 8 OF 9 -EXHIBIT "A" TO ORDINANCE 2011-017 b Cities, after conducting alternative lands and public faci.lity analyses, but prior to any entitlement process. receive [onnal support from Economic Development of Central Oregon that potential sites contain necessary site characteristics and standards as defined in the REOA to attract large-lot industrial recruiters . b . Establishment of a regional authority, responsible for fonnally supporting regional large lot industrial sites after cities identify potential candidates through alternative lands and public [acility analyses, but prior to any entitlement process ~ ~ A Regional Advisory Committee (RAe) will be convened (at least) annually with each city and county providing activity reports relatine to the short term land supply. Facilitating the RAC will be the responsibility of the counties (ORS 195.025) and will rotate each vear, starting alphabetically with Crook County. 9 . When a city investigates and concludes that a potential qualifying lame lot industrial site exists or can be assembled inside of its VGS (and the existing site zoning will be amended with the large lot overlay zoning assimment), that city must replace that original [future] buildable land supply or evaluate and conclude that the previously identified future land supply is no longer needed .ill,. Participating cities . when examining candidate sites. shall conduct their alternative land and public facilities analyses and inventory of employment lands by first examining if the short-term regional need can be met inside the implementing city's UGB, before assessing lands adjacent to it as required by state law . Cites are not required to evaluate inventories throughout the region because the adopted county plan has limited supply and specified site dispersal as specified by the regional EOA. lL Participating cities. after conducting alternative lands and public facility analyses, but prior to any entitlement process, shall receive formal support from Economic Development of Central Oregon CEOeO) that candidate site(s) contain necessary site characteristics and attributes, as defined in the REOA. to attract large-lot industrial recruiters lb Deschutes County, fulfilling coordination duties specified in ORS 195 .025 shall approve and update its comprehensive plan when participating cities within their jurisdiction legislatively or through a quasi -judicial process desilmate regionally significant sites. 11. Participating cities in Deschutes County (and in the 3-County REOA region) shall adopt a large­ lot industrial overlay zone that establishes and maintains the region' large lot industrial site inventory and manages usage of such lands . ~ Deschutes Countv supports EDCOs a non-profit organization facilitating new job creation and capital investment to monitor and advocate for the region 's efforts of maintaining an inventory of appropriate sized and located industrial lots available to the market l1, Deschutes County. in collaboration with other Central Oregon' counties and cities and EDCO . will coordinate and seek assistance from state agencies to continually support a regional economic development replenishment strategy . l..Q,. Deschutes County will strengthen long-term confidence in the economy by building innovative public to private sector partnerships. 11.:. Deschutes County will collaborate with regional public and private representatives to engage the Oregon Legislature and state agencies and their commissions to address public facility. transportation and urbanization issues that can stymie economic development opportunities in Central Oregon. ~ Participating cities in Deschutes Countv will support the existing economic base by providing adequate land and infrastructure to make citv sites attractive to businesses willing to invest in high job density and industrial activity . ~Cities in Deschutes County will continue to provide high quality physical infrastructure to serve the needs of business . PAGE 9 OF 9 -EXHIBIT "A" TO ORDfNANCE 2011-017 PAGE 1 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 FINDINGS BACKGROUND A. Purpose of Regional Economic Opportunity Analysis Deschutes, Crook and Jefferson counties and their respective cities undertook an unprecedented regional evaluation of the economic opportunities and constraints associated with users of large industrial parcels in the Central Oregon region. During the 1990s the Central Oregon Region experienced a dramatic transformation from an economy concentrated largely in wood products into a service based economy serving a growing and diverse tourism and household base. Accelerated in -migration and tourism growth gave way to rapid economic expansion, escalation in home prices, and a systematic shift in the local economy from goods producing activities to service oriented industries. While initially representing a diversification of the local economy, this shift has led to an over-reliance upon these types of industries. During the recent recessi on, the regional economy’s vulnerabilities became apparent. Major employers in traded sector industries (export industries) are the primary drivers of economic growth, providing the impetus for net growth in the regional economy and supporting a wide range of support industries. At the state and local level, policy makers understand the importance that large-scale employers can have on the local economy. In 2007, Central Oregon was home to three firms with 1,000 or more employees and an additional five with at least 500. The State's Industrial Site Certification program has been successful coordinating with active recruitment efforts. Nevertheless, suitable land for today's industrial development forms has emerged as one of Oregon's most severe development challenges. As a region, Central Oregon has specifically targeted basic industries with large lot industrial land needs to support and diversify the region’s economic development objectives and job creation strategies. While many locally based service-sector businesses are an essential part of a region’s business mix and quality of life, they are not as effective in creating new living wage jobs. Major employers in traded sector industries (export industries) are the primary drivers of economic growth, providing the impetus for net growth in the regional economy and supporting a wide range of support industries. In a structural sense, globalization has changed the way manufacturers conduct business. Cost and efficiency are the central tenants of an inc reasingly competitive market. Firms are increasingly pressured to develop more capital intense production models, placing a greater emphasis on economies of scale, as well as production efficiency and flexibility. Time-to-market for firms has become an even more crucial factor as they make decisions to locate new plants and facilities. The result has been the emergence of a clear real estate trend, creating a global demand for large development ready industrial sites, with the immediacy of utility services (both public and private sector) of critical importance. Through Oregon's statewide planning framework, a Regional Economic Opportunity Analysis (REOA), attached and PAGE 2 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 incorporated by reference herein, evaluated Central Oregon's opportunities, competitiveness, ability, and willingness to recruited and locally grown firms requiring new large scale development models. Consensus emerged to establish and pro-actively manage a regional land supply of large-lot industrial sites to enable Central Oregon to become competitive in industrial recruitment. This regional strategy includes individual site infrastructure improvement assessments and implementation programs. Regional planning, management, and governance of a sustainable large-lot industrial vacant land supply will involve Central Oregon city and county governments (and staff) including advice and guidance from COCO (Central Oregon Cities Organization), Economic Development in Central Oregon (EDCO), Oregon Department of Land Conservation and Development (DLCD) and OBDD to assure an adequate, self -renewing regional supply of developable and competitive vacant industrial sites. An outcome of regional significance requires a collective regional effort. This legislative amendment sets in motion the creation and management of a regional supply of vacant, developable large-lot industrial sites to create stable, family-wage employment opportunities of local and regional significance. Although site development will be fundamentally implemented at the local jurisdictional level, the organization, coordination, promotion and governance of this regional industrial lands strategy and inventory is proposed to be implemented at a coordinated, collaborative regional level. The ultimate outcome of diversified and stable family-wage job creation will be advanced through the provision of an adequate and competitive industrial site land supply to engage the global, national and regional industrial recruitment marketplace and successfully recruit major employers to Central Oregon. PROPOSED PLAN AMENDMENT The proposed amendments to Deschutes County’s Comprehensive Plan are described in Ordinance 2011-017, Exhibits A and B. Added language is underlined, deleted shown as strikethrough. REVIEW CRITERIA Ordinance 2011-017 formally recognizes the 2011 Central Oregon Regional Economic Opportunity Analysis (REOA) and several regional large-lot industrial land policies. Deschutes County lacks specific criteria in Deschutes County Code (DCC) Titles 18, 22, or 23 for reviewing a legislative plan amendment. Nonetheless, since Deschutes County is initiating one, the County bears the responsibility for justifying that the amendments are consistent with the Oregon Revised Statute, Oregon Administrative Rules, statewide planning goals and its existing Comprehensive Plan. PAGE 3 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 PLANNING COMMISSION RECOMMENDATION On August 25, 2011 the Planning Commission closed the public hearing and recommended that the Board of County Commissioners adopt the REOA and large-lot industrial land policies into Deschutes County's Comprehensive Plan. The Planning Commission's also directed staff to determine how to incorporate a refinement to page 26 of the REOA As background, the REOA cites strengths and weaknesses of each municipality in the tri-county area. These profiles were derived from a June 2010 Central Oregon Industrial Lands Forum. There's a footnote acknowledging this point in the REOA on page 25. Stakeholders from La Pine wanted La Pine's strengths and weaknesses to reflect new information as italicized below. The Board finds that the revised listing is appropriate and should be incorporated as part of this plan amendment. LA PINE (DESCHUTES COUNTY) La Pine is Oregon’s newest City, incorporated in December 2006. La Pine has a state certified shovel ready site and is well-suited for the REOA short term plan. Past challenges with the water and sewer districts have been resolved by mutual agreement between the La Pine Water and Sewer Districts and the City of La Pine. Strengths/Advantages Challenges/Disadvantages State of Oregon Certified Shovel-ready 50+ acre industrial site available and proximate to rail Sewer and water districts – in transition to the city. To be absorbed by the City early to mid-2012 Neighboring small and medium sites available for a variety of options Transportation challenges; TSP to be completed by mid-2012 The most favorable electric rates in Central Oregon City codes adopted and scheduled to be implemented early 2012 More than adequate water and sewer capacity for new industry Need large “keystone” employer A new flexible land use code and supportive city leaders The county is in control of some industrial sites Enterprise Zone, for tax relief for new or expanded industry La Pine is well connected to 3 major economic hubs - Central Oregon, Eugene and Klamath County. Conveniently located near Highway 97 and Highway 31. Highway 58 is 27 miles to the south and is a direct route to I-5 and Eugene. PAGE 4 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 BNSF rail mainline thru industrial park. Near passenger rail line. “Best Rail Industrial site in Central Oregon.” Low housing costs. Riverfront homes, ranches, and community neighborhoods are available. La Pine has a large labor pool of skilled labor and diverse population with extensive work experience as indicated by large amount of commuters traveling north. Hub of Central Oregon’s year-round outdoor recreation paradise. Gateway to Cascade Lakes National Scenic Byway, Newberry National Volcanic Monument and National Oregon Outback Scenic Byway.” Staff updated Exhibit A, DCC 23.48.050. Regional Economic Opportunity Policies as follows: 3. The Central Oregon Large Lot Industrial Regional Economic Opportunity Analysis (REOA) dated May 31, 2011 and the City of La Pine Strengths and Weaknesses outlined on Page 4 of Exhibit C to Ordinance 2011-017 are incorporated and adopted by reference herein. FINDINGS 1. Oregon Revised Statute * ORS 195.025: (1) In addition to the responsibilities stated in ORS 197.175, each county, through its governing body, shall be responsible for coordinating all planning activities affecting land uses within the county, including planning activities of the county, cities, special districts and state agencies, to assure an integrated comprehensive plan for the entire area of the county. Finding: Deschutes County, through its governing body, is coordinating planning activities related to a regional need for large -lot industrial sites within the county. This effort assures there is an integrated comprehensive plan between the county and its respective cities. Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, responding to a specific employment need identified in a REOA for large-lot industrial sites in Central Oregon. The legislative amendment adopts the REOA and several regional large -lot PAGE 5 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 industrial policies to formalize a regional approach to addressing a specialized land need. * ORS 195.025: (2) For the purposes of carrying out ORS chapters 195, 196 and 197, counties may voluntarily join together with adjacent counties as authorized in ORS 190.003 to 190.620. Finding: Deschutes County is also coordinating with two adjoining counties by voluntarily joining together with Crook and Jefferson and the Cities of Madras and Prineville as authorized in ORS 190.003 to 190.620, to collaborate on an unprecedented regional evaluation of the economic opportunities and constraints associated with users of large industrial parcels in the Central Oregon region. The REOA provides an extraordinary opportunity as demonstrated by the accompanying draft policies to establish and maintain a regional supply of large -lot industrial sites at a tri-county level. * ORS 197.712: (1) In addition to the findings and policies set forth in ORS 197.005, 197.010 and 215.243, the Legislative Assembly finds and declares that, in carrying out statewide comprehensive land use planning, the provision of adequate opportunities for a variety of economic activities throughout the state is vital to the health, welfare and prosperity of all the people of the state. (2) By the adoption of new goals or rules, or the application, interpretation or amendment of existing goals or rules, the Land Conservation and Development Commission shall implement all of the following: (a) Comprehensive plans shall include an analysis of the community’s economic patterns, potentialities, strengths and deficiencies as they relate to state and national trends. Finding: Deschutes County is proposing comprehensive plan amendments to comply with this statute by adopting a REOA and several regional economic policies that recognize Central Oregon’s potential for establishing and maintaining large lot industrial sites as it relates to state and national trends. Page 25 of the REOA identifies the strengths and challenges in the Central Oregon economy. As noted in the REOA, “the competitive characteristics of Central Oregon can be strengthened through taking a regional approach to large lot industrial siting. Individual jurisdictions in the region are too small to be considered viable candidate s for many of the targeted industries.” These industries are recognized on pages 31-34. Therefore, it is, “imperative that the region act as a cohesive unit, sharing work force and commercial amenities so it can be marketed as such to increase its perceived scale and competitiveness in the global marketplace.” * ORS 197.712: (2)(b) Comprehensive plans shall contain policies concerning the economic development opportunities in the community. Finding: Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook PAGE 6 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 Counties by responding to a specific employment need identified in a REOA for large -lot industrial sites in Central Oregon. Deschutes County is adopting a REOA and several regional industrial land policies to comply with ORS 197.712 (2)(b). Deschutes County is proposing comprehensive plan amendments to comply with this statute by adopting a REOA and several regional economic policies that recognize Central Oregon’s economic development opportunities for establishing and maintaining large lot industrial sites. These policy choices are supported by findings with evidence cited in the REOA. For example, page 31 describes target industries with large lot needs that have a , “demonstrated track record for creating enormous exogenous absorption of properly zoned industrial sites.” Furthermore, page 45 of the REOA identifies a model of prospective demand based on annual large firm location activity. The model assumes that if a competitive inventory is available and maintained in Central Oregon, the region can capture a “fair share” of market activity. * ORS 197.712: (2) (c) Comprehensive plans and land use regulations shall provide for at least an adequate supply of sites of suitable sizes, types, locations and service levels for industrial and commercial uses consistent with plan policies. Finding: It is important to note that the REOA does not identify specific lots for industrial and commercial uses. This report is merely the first step in identifying what are the types of industrial uses likely to want to locate in Central Oregon and what are the characteristics of the land that will be necessary to attract those industrial uses. Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook Counties by responding to a specific employment need identified in a REOA for large -lot industrial sites in Central Oregon. Deschutes County is adopting a REOA and several regional industrial land policies to comply with ORS 197.712 (2)(c). Regulations and comprehensive plan policies that provide an adequate supply of sites of suitable sizes, types, locations and service levels for industrial uses will occur when participating cities implement OAR 660 Division 9 and Division 24. Nonetheless, it is important to recognize that the REOA on page 39 identifies site need characteristics for large-lot industrial sites. Page 46 recommends a competitive large lot industrial inventory. Deschutes County complies with this subsection by adopting the following policies: **A large-lot industrial site is 50 acres or larger with specific site attributes and amenities. **Short term supply is a readily available and developable inventory of up to 6 sites in at least three separate jurisdictions in order to provide a choice to prospective industries or site selectors. T wo of the 6 sites would be 100 to 200 acres and one site would be 200+ acres. ****At least one of the 6 short term (readily available/developable in 6 months) sites would consist of a major, centrally located large-scale development property near the region’s geographic and workforce center, and where key infrastructure is in place and has excess capacity, either the north end of Bend or the southern end of Redmond, east of Highway 97. PAGE 7 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 **The supply of up to 17 long-term sites, which includes the 6 short term sites, represents the currently projected (total) 20-year regional land supply of this special industrial land classification. **Central Oregon cities and counties shall, within 6 months of the adopti on of this policy, execute Memorandums of Understanding (MOUs) that specify: 1. Cities, after conducting alternative lands and public facility analyses, but prior to any entitlement process, receive formal support from Economic Development of Central Oregon that potential sites contain necessary site characteristics and standards as defined in the REOA to attract large-lot industrial recruiters. **Participating cities, when examining candidate sites, shall conduct their alternative land and public facilities analyses and inventory of employment lands by first examining if the short-term regional need can be met inside the implementing city’s UGB, before assessing lands adjacent to it as required by state law. Cites are not required to evaluate inventories throughout t he region because the adopted county plan has limited supply and specified site dispersal as specified by the regional EOA. * ORS 197.712: (2)(d) Comprehensive plans and land use regulations shall provide for compatible uses on or near sites zoned for spe cific industrial and commercial uses. Finding: Again, while the adoption of the new policies and the REOA do not, by themselves, provide for specific sites zoned for specific industrial or commercial uses, they are the first step toward meeting that requirement. Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook Counties by responding to a specific employment need identified in a REOA for large-lot industrial sites in Central Oregon. Deschutes County is adopting a REOA and several regional industrial land policies to comply with ORS 197.712 (2)(d). Regulations and comprehensive plan policies that provide for compatible uses on or near sites zoned for large lot industrial uses will occur when participating cities implement OAR 660 Division 9 and Division 24. To fulfill its coordination role, Deschutes County complies with this subsection by adopting the following policy: **Participating cities in Deschutes County (and in the 3-County REOA region) shall adopt a large-lot industrial overlay zone that establishes and maintains the region’s large lot industrial site inventory. * ORS 197.712: (2) (g) Local governments shall provide: (A) Reasonable opportunities to satisfy local and rural needs for residential and industrial development and other economic activities on appropriate lands outside urban growth boundaries, in a manner consistent with conservation of the state’s agricultural and forest land base; and (B) Reasonable opportunities for urban residential, commercial and industrial needs over time through changes to urban growth boundaries. PAGE 8 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 Finding: Adopting the policies in Ordinance 2011-017 and the REOA is the first step for each of the participating jurisdictions in Central Oregon in providing opportunities to meet the local and rural needs for industrial development. The determination of consistency with the conservation of the state’s agricultural an d forest land base will occur at the time specific industrial lands are identified and proposed to be adopted by each of the Central Oregon jurisdictions. Until those specific proposals occur, there is no affect on agricultural or forest lands. Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook Counties by responding to a specific employment need identified in a REOA for large -lot industrial sites in Central Oregon. Deschutes County is adopting a REOA and several regional industrial land policies to comply with ORS 197.712 (2)(g). Regulations and comprehensive plan policies that provide reasonable opportunities to satisfy local and rural needs for industrial development on appropriate lands outside Urban Growth Boundaries (UGBs) and overtime through changes to UGBs will occur when participating cities implement OAR 660 Division 9 and Division 24. Deschutes County complies with this subsection by adopting the following policy: **Participating cities, when examining candidate sites, shall conduct their alternative land and public facilities analyses and inventory of employment lands by first examining if the short-term regional need can be met inside the implementing city’s UGB, before assessing lands adjacent to it as required by state law. Cites are not required to evaluate inventories throughout t he region because the adopted county plan has limited supply and specified site dispersal as specified by the regional EOA. 2. Oregon Administrative Rule - Division 9 (Economic Development) * OAR 660-009-0010 - Application (1) This division applies to comprehensive plans for areas within urban growth boundaries. This division does not require or restrict planning for industrial and other employment uses outside urban growth boundaries. Cities and counties subject to this division must adopt plan and ordinance amendments necessary to comply with this division. Finding: Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook Counties by responding to a specific employment need identified in a REOA for large -lot industrial sites in Central Oregon. As noted above, Deschutes County is adopting a REOA and several regional industrial land policies to comply with OAR 660-0090-0010. * OAR 660-009-0010: (2) Comprehensive plans and land use regulations must be reviewed and amended as necessary to comply with this division as amended at the time of each periodic review of the plan pursuant to ORS 197.712(3). Jurisdictions that have received a periodic review notice from the Department (pursuant to OAR 660 -025- PAGE 9 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 0050) prior to the effective date of amendments to this division must comply with such amendments at their next periodic review unless otherwise directed by the Commission. Finding: Deschutes County started its periodic review in 1988 and completed it on January 23, 2003. In 2003, the Oregon Legislature amended ORS 197.629(3) exempting counties from periodic review, excluding portions of its population within the urban growth boundary (UGB) of a city. * OAR 660-009-0010: (3) Cities and counties may rely on their existing plans to meet the requirements of this division if they conclude: (a) There are not significant changes in economic development opportunities (e.g., a need for sites not presently provided for in the plan) based on a review of new information about national, state, regional, county and local trends; and (b) That existing inventories, policies, and implementing measures meet the requirements in OAR 660-009-0015 to 660-009-0030. Finding: Existing plans need to be updated to address this specific land need for large lot industrial sites. Deschutes County is amending its comprehensive plan under its regional coordination responsibilities (ORS 195.025) to address global competition factors for large-lot industrial sites. As noted on page 4 of the REOA, “f or a region to be attractive enough to motivate industrial site selectors to visit, investigate and recommend the region, it must offer a diversity of large-lot industrial sites (that are either served or serviceable) along with all of the other needed support factors including: adequate size and skill level of the workforce, workforce training programs, worker housing, supportive local government, utility services and transportation, and quality of life.” Industries know that to attract and keep valuable employees, they need to locate in areas with desirable living environments offering quality of life amenities such as recreation, quality education systems, shopping diversity, health care, and affordable and attractive housing. The Central Oregon region is recognized as being endowed with an abundant supply of such amenities. As noted on page 1 of the REOA, “the Central Oregon region needs a critical mass of competitive and diverse vacant, developable industrial sites in order for site selectors representing potential industrial recruitment opportunities to consider the region . One or two sites in one or two jurisdictions will not be adequate to generate regional interest or a visit according to industrial recruitment specialists from the Oregon Business Development Department (OBDD). Consequently, a multi-jurisdictional cooperative effort pursue a regional approach to establish a competitive supply of sites particularly designed to address those (unaccounted for) out-of-region (and state) industries that can locate in Central Oregon after shopping the globe for the best large -lot industrial development site they can find. This type of land need (or demand) is systematically missed and unaccounted for in conventional industrial land needs as sessments in Oregon communities,” which often rely solely upon recent local trends to establish forecasts. PAGE 10 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 * OAR 660-009-0010: (4) For a post-acknowledgement plan amendment under OAR chapter 660, division 18, that changes the plan designation of land in excess of two acres within an existing urban growth boundary from an industrial use designa tion to a non-industrial use designation, or an other employment use designation to any other use designation, a city or county must address all applicable planning requirements, and: (a) Demonstrate that the proposed amendment is consistent with its most recent economic opportunities analysis and the parts of its acknowledged comprehensive plan which address the requirements of this division; or (b) Amend its comprehensive plan to incorporate the proposed amendment, consistent with the requirements of this division; or (c) Adopt a combination of the above, consistent with the requirements of this division. Finding: With the adoption of Ordinance 2011-017, no plan designations are proposed to be changed by any of the participating jurisdictions. These comprehensive plan changes that include the adoption of the REOA are merely the first step to eventually adopting possible changes to provide for more available industrial land within one of the urban growth boundaries within Central Oregon. By themselves, they change no designations because the changes are not applicable to specific land. Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook Counties by responding to a specific employment need identified in a REOA for large -lot industrial sites in Central Oregon. Deschutes County is adopting a REOA and several regional industrial land policies to comply with OAR 660-009-0010(4). Deschutes County is not amending land within a UGB. Participating cities will need to address this criterion when they conduct their alternative land and public facilities analyses and inventory of employment lands when examining if the short-term regional need can be met inside their respective UGBs. Deschutes County complies with this subsection by adopting the following policy: **Participating cities, when examining candidate sites, shall conduct their alternative land and public facilities analyses and inventory of employment lands by first examining if the short-term regional need can be met inside the implementing city’s UGB, before assessing lands adjacent to it as required by state law. Cites are not required to evaluate inventories throughout the region because the adopted county plan has limited supply and specified site dispersal as specified by the regional EOA. * OAR 660-009-0010: (5) The effort necessary to comply with OAR 660-009-0015 through 660-009-0030 will vary depending upon the size of the jurisdiction, the detail of previous economic development planning efforts, and the extent of new information on national, state, regional, county, and local economic trends. A jurisdiction's planning effort is adequate if it uses the best available or readily collectable information to respond to the requirements of this division. PAGE 11 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 Finding: Deschutes County complies with this criterion by adopting a 2011 REOA into its comprehensive plan. As noted by a Business Oregon letter cited in Appendix C of the REOA: “The completion of this study and the implementation of its findings by the communities of Central Oregon should prove to be a major step forward in the provision of large-lot sites for potential employers, as well as family-wage jobs to its citizens. Our recommendation for adoption is based on the following: 1. The methodology of the Regional Economic Opportunity Analysis (REOA) is correct in its targeted approach to current industry trends, site selection considerations, and land entitlement issues. 2. The REOA is correct in its recognition and analysis of the regional context in which all high-value industrial recruitments take place. 3. The REOA is correct in the narrowness and the economy of its mission and findings: the identification of a limited number of high-value locations to serve the large-lot needs of a region over a short and long term planning horizon. Methodology: Citing the Business Oregon Letter in Exhibit C, “the methodology of the study follows best practices in economic develop ment with its focus on a specific cross- section of industry and a specific land need. This process is consistent with Oregon Business Development’s Key Industry strategy, which identifies industries that are considered to be globally competitive in Oregon. Further, industry identifications are made in a number of exhibits and summaries that cite recent large -lot placements across the state and the nation.” * OAR 660-009-0010: (6) The amendments to this division are effective January 1, 2007. A city or county may voluntarily follow adopted amendments to this division prior the effective date of the adopted amendments. Finding: Deschutes County initiated the plan amend in 2011, therefore this division applies. * OAR 660-009-0015 - Economic Opportunities Analysis Cities and counties must review and, as necessary, amend their comprehensive plans to provide economic opportunities analyses containing the information described in sections (1) to (4) of this rule. This analysis will compare the demand for land for industrial and other employment uses to the existing supply of such land. (1) Review of National, State, Regional, County and Local Trends. economic opportunities analysis must identify the major categories of industrial or other employment uses that could reasonably be expected to locate or expand in the planning area based on information about national, state, regional, county or local trends. This review of trends is the principal basis for estimating future industrial and other PAGE 12 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 employment uses as described in section (4) of this rule. A use or category of use could reasonably be expected to expand or locate in the planning area if the area possesses the appropriate locational factors for the use or category of use. Cities and counties are strongly encouraged to analyze trends and establish employment projections in a geographic area larger than the planning area and to determine the percentage of employment growth reasonably expected to be captured for the planning area based on the assessment of community economic development potential pursuant to section (4) of this rule. Finding: As noted above, Deschutes County is adopting the REOA into its comprehensive plan. The REOA trend analysis is documented on pages 7, 13, and 18. On page it is noted that, “successful local and regional industrial recruitment in the 21st Century must consider global competition factors. Communities, regions and states that focus primarily or exclusively on outdated governance paradigms are ill suited for keeping up with fast paced global economic and industrial marketplace changes. Industries must be nimble to be successful in the competitive global marketplace. Manufacturers must be able to quickly produce new products at expanded, renovated or new production facilities in “just-in-time” fashion. Often accomplished through on -site expansion on areas reserved for that purpose, industrial site selectors must choose sites large enough to build-in future expansion capacity. Government must adapt and align its regulatory and process requirements to meet market demands if it wishes to capture the considerable benefits of high value industrial development. Site selectors shopping the international marketplace of large -lot industrial sites determine the type of land supply product they wil l consider. For an individual vacant industrial site to be competitive, it must be large enough to offer future expansion on - site. It must be proximate to other competitive sites and governed by a regulatory structure that is responsive to the needs of industry.” Recognized on page 1, “manufacturing employment opportunities in particular are needed to establish a diversified and thereby more stable and balanced regional employment outlook. New manufacturing and other high value employment opportunities require an attractive supply of vacant industrial sites to be competitive in global industrial recruitment pursuits. New land supply methods are needed, too.” This large-lot industrial lands supply initiative exceeds the capacity of any single jurisdiction. It is an industrial recruitment reality that in order to be competitive, regional clout and appeal, along with a critical mass of diverse attractive sites, are needed. The 21st century site selection factors in the global marketplace of industrial recruitm ent and site development prioritize: Expedited site development with certainty and minimal time delay; Opportunities to expand and/or diversify manufacturing activity on -site, taking advantage of existing infrastructure and facilities investment; and Availability of a high quality work force and training programs. PAGE 13 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 * OAR 660-009-0015: (2) Identification of Required Site Types. The economic opportunities analysis must identify the number of sites by type reasonably expected to be needed to accommodate the expected employment growth based on the site characteristics typical of expected uses. Cities and counties are encouraged to examine existing firms in the planning area to identify the types of sites that may be ne eded for expansion. Industrial or other employment uses with compatible site characteristics may be grouped together into common site categories. Finding: As noted on page 6 of the REOA, “the goal of this regional effort is not to generate an acreage calculation of needed vacant industrial land supply but rather to identify the variety and size range of vacant industrial sites needed to make the region attractive to site selectors and competitive in the global marketplace - a qualitative rather than quantitative outcome. This effort is the first step in providing an adequate supply of large industrial sites to support stable, family-wage jobs in traded sectors in the short-term and to build future job creation capacity in the long-term (through land banking and a renewing large-lot industrial land supply) so that established employers do not have to move out of the region to be quick, efficient, competitive and successful.” Furthermore, page 41 of the REOA recognizes that, “sites designated to meet the regional demand for large lot industrial uses should be able to meet most of these criteria identified in Table 1, where practical. While physical and workforce issues cannot be addressed by actions by an individual jurisdictio n, the remaining locational criteria largely involve infrastructure investments, which can be actively targeted to enhance the supply of competitive sites. Additionally, jurisdictions actively engaging property owners in discussions about land price, lot configuration, and investments necessary to make sites usable, can provide a context for owners’ readiness to sell their property.” Table 1 – Site Need Characteristics for LLI Uses in Central Oregon Physical Size – Large lot demand is defined in the context of this analysis as sites 50-acres or above. Sites of significantly larger size provide for greater flexibility, as they can meet large site needs as well as providing the ability to be subdivided. Size reflects contiguous usable area, as opposed to any net usable area. Slope – Industrial development has a very limited capacity to deal with slopes. This is particularly true in areas such as Central Oregon, in which the geology makes grading costly. Configuration – Rectangular sites provide for the most efficient layouts. Sites with irregular configurations need to be larger to accommodate similar levels of development. Infrastructure Transportation o Auto/Truck o Rail o Airport  General Aviation  Commercial  International PAGE 14 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 Table 1 – Site Need Characteristics for LLI Uses in Central Oregon Utilities o Water o Sewer o Natural Gas o Electricity o Telecommunications  Major communications capacity  Route diversity  Fiber optics Location Workforce o Locations within acceptable distance of appropriately scaled and skilled labor market o Appropriate housing options for workforce and executives Special Considerations o Availability - Owner willing to sell at market consistent price o Ownership – Willingness to hold, front infrastructure investments o Flexibility – Ability to meet a variety of demands o Site Certification – Not necessary, but criteria should be at least inclusive of the certification criteria o Funding – Viability of funding necessary infrastructure to support development Page 46 of the REOA states that, “economic recruitment benefits from some degree of market choice. Firms evaluating prospective locations are more likely to consider Central Oregon if multiple appropriate sites can be seen in a single trip. The region wants to establish and maintain a “competitive portfolio” of large lot industrial sites. This would include an inventory of readily available and appropriate sites consistent with baseline criteria, allowing the region to clear the initial site selection screening. To the extent that multiple prospective sites are available in the region, Central Oregon’s competitive position would be enhanced as site selectors prefer to have multiple options before physically visiting an area such as Central Oregon.” On page 46 of the REOA, the following matrix of large-lot site locational needs has been identified. Table 2 – Recommended Competitive Large Lot Industrial Inventory 50-100 Acres 100-200 Acres 200+ Acres Short Term # of Sites 3 2 1 Jurisdictions 3 2 1 Long Term # of Sites 10 5 2 Jurisdictions 5 3 2 “A readily available and developable inventory of six large sites in at least three separate jurisdictions will provide for choice to prospective industries or site selectors. While the table [Table 2] presents both a short term and long term inventory, the short term inventory is what is relevant from an economic development perspective. The PAGE 15 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 longer term inventory’s value would be in identifying sites that can replace the short term inventory if absorbed or if market conditions and needs shift. Based on the projected level of demand for these sites, replenishment of the inventory will likely be needed on a regular basis.” As noted on page 47, “what is important from an economic development perspective is maintaining an inventory of appropriately sized and located lots available to the market in any given period. From a market perspective, sites need to be readily developable with infrastructure in place or readily available, controlled by a willing seller and appropriately priced.” * OAR 660-009-0015: (3) Inventory of Industrial and Other Employment Lands. Comprehensive plans for all areas within urban growth boundaries must include an inventory of vacant and developed lands within the planning area designated for industrial or other employment use. (a) For sites inventoried under this section, plans must provide the following information: (A) The description, including site characteristics, of vacant or developed sites within each plan or zoning district; (B) A description of any development constraints or infrastructure needs that affect the buildable area of sites in the inventory; and (C) For cities and counties within a Metropolitan Planning Organization, the inventory must also include the approximate total acreage and percentage of sites within each plan or zoning district that comprise the short-term supply of land. (b) When comparing current land supply to the projected demand, cities and counties may inventory contiguous lots or parcels together that are within a discrete plan or zoning district. (c) Cities and counties that adopt objectives or policies providing for prime industrial land pursuant to OAR 660-009-0020(6) and 660-009-0025(8) must identify and inventory any vacant or developed prime industrial land according to section 3(a) of this rule. Finding: The adoption of the REOA and other comprehensive plan changes in Ordinance 2011-017 does not involve the inventory of industrial or other employment land. It is merely the first step towards a future update to such an inventory for each of the participating jurisdictions. Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and C rook Counties by responding to a specific employment need identified in a REOA for large -lot industrial sites in Central Oregon. Deschutes County is adopting a REOA and several regional industrial land policies to comply with OAR 660 -009-0015(3). Deschutes County complies with the requirements for city and counties to inventory industrial and other employment lands by adopting the following policies: **Participating cities, when examining candidate sites, shall conduct their alternative land and public facilities analyses and inventory of employment lands by first examining if the short-term regional need can be met inside the PAGE 16 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 implementing city’s UGB, before assessing lands adjacent to it as required by state law. Cites are not required to evaluate inventories throughout the region because the adopted county plan has limited supply and specified site dispersal as specified by the regional EOA. **Central Oregon cities and counties shall, within 6 months of adoptin g this policy, execute Memorandums of Understanding (MOUs) that specify: 1. Cities, after conducting alternative lands and public facility analyses, but prior to any entitlement process, receive formal support from Economic Development of Central Oregon that potential sites contain necessary site characteristics and standards as defined in the REOA to attract large-lot industrial recruiters. * OAR 660-009-0015: (4) Assessment of Community Economic Development Potential. The economic opportunities analysis must estimate the types and amounts of industrial and other employment uses likely to occur in the planning area. The estimate must be based on information generated in response to sections (1) to (3) of this rule and must consider the planning area's economic advantages and disadvantages. R elevant economic advantages and disadvantages to be considered may include but are not limited to: (a) Location, size and buying power of markets; (b) Availability of transportation facilities for access and freight mobility; (c) Public facilities and public services; (d) Labor market factors; (e) Access to suppliers and utilities; (f) Necessary support services; (g) Limits on development due to federal and state environmental protection laws; and (h) Educational and technical training programs. Finding: As cited in the REOA on page 28, “Economic Development for Central Oregon (EDCO), in participation with local leaders, the Central Oregon region has gone through the lengthy process of identifying specific industry sectors for business recruitment, retention, and entrepreneurial support. Several of these industries have had successful results to-date, while others are relatively young in Central Oregon.” The amount, recognized as short-term supply is described above in Table 2. In the summaries below and cited on page 29, the REOA draws largely from EDCO's evaluation of industries in Central Oregon as well as extensive research and evaluation produced as a part of the Oregon Business Plan. “Renewable Energy Development - Renewable or clean energy development is a global industry on the rise. In 2008, Global Insight forecasted U.S. employment growth related to "green industries" would reach 2.5 million over the next ten years. In Oregon, solar manufacturing has been an early entrant, taking advanta ge of Oregon's existing and highly related semiconductor industry and proximity to large U.S. West Coast markets. Central Oregon currently has a small but diverse cluster of renewable energy related PAGE 17 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 industries ranging from solar power and fuel cells to wind power and biomass production. Aviation/Aerospace- There is an existing concentration relating to Redmond's airport and Bend's metro area. Specifically, Lancair has been operating in Redmond since 1992. Oregon's aviation industry includes 200 firms pro viding manufacturing, first and second supply chain services, and product distribution. Oregon's kit plane manufacturers also provide over 70 percent of all of the kit planes sold within the U.S. each year to global customers. Software - Oregon is home to more than 1,500 software companies, and is particularly strong in the areas of: electronic design automation, financial solutions, open source, educational and training software, embedded software and healthcare applications. Central Oregon itself is home to over two dozen established software engineering firms. Software development firms are typically smaller in scale, where quality of life and telecom infrastructure is important. However, the Central Oregon region and the State of Oregon face both human and financial capital challenges to further development of the Software/IT cluster. Biosciences - Oregon’s bioscience industry has over 600 companies and research institutions. Biosciences include research and development, medical devices, medical diagnostics, human and animal therapeutics, pharmaceuticals, reagents, research services, bio-agriculture, bio-fuels, and medical software operations. Bioscience is a $2.5 billion traded sector industry in Oregon. While Oregon is not seen as a bioscience hub nationally, Central Oregon is home to a segment of Oregon's promising bioscience future, specializing in pharmaceutical research and development. However, biosciences are highly workforce dependent and are often related to large -scale, higher education resources, which are currently absent in the region. Data Centers - Data centers are an emerging economic development engine in Oregon bringing significant capital investment to regional communities. The Central Oregon region offers key critical components in the recruitment of data center projects, specifically affordable electric power, municipal water and sewer capacity, robust telecom infrastructure, ability to attract technical talent to operate data center facilities, and a climate that can significantly lower power usage. These factors were instrumental in EDCO's recruitment of both Bend Broadband’s Vault project and Facebook's $188 million investment in Prineville. Recreation Equipment - Oregon is home to some of the world’s most recognized brands in footwear and sports apparel. Locally headquartered firms include Nike, Columbia Sportswear and the North American headquarters of Adidas. Additionally, hotbed recreational regions such as Hood River and Central Oregon have long seen start -up recreational equipment firms flourish into significant contributors to local economies. Central Oregon specifically is home to diverse range of mountain, river, and recreational vehicle and equipment manufacturers. PAGE 18 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 Higher Education - Central Oregon is just beginning the process of establishing planning efforts in the establishment of a higher education facility in the region. Local policy market and economic development professionals realize the broader importance of higher education on workforce quality, culture, and business development. Higher education facilities are typically campus style development requiring large affordable sites with good telecom and transportation infrastructure. Sites need to be proximate to population centers. Regional Distribution Centers - Central Oregon can play a role in distribution, with Highway 97 representing an option to the I-5 Corridor. Option planning is taking a larger role in logistics and is expected to play a bigger role in diversifying risk away from a single supply route. Wood Products - The Wood Products cluster is a long standing economic driver in Central Oregon. The cluster includes primary and secondary wood products, machinery manufacturing, paper & pulp manufacturing, wholesaling, and business management. Where Central Oregon was once a primary wood products region, secondary wood products manufacturing now accounts for 25% of all manufacturing employment in the region. While wood products have largely been a low growth industry over the last decade, the Central Oregon region is targeting additional value-added firms. Moreover, innovated new-age primary lumber production models have emerged in recent years of which Central Oregon would have a distinct competitive advantage.” On pages 31-34, the REOA cites targeted industries with large land needs. Specific examples are provided in Appendix B. As noted on page 31 of the REOA, “while it is unlikely that several industries being targeted by communities within the Central Oregon region will generate significant demand for large‐lot industrial land, some sectors have a demonstrated track record for creating enormous exogenous absorption of properly‐ zoned industrial sites. For example, software, recreational equipment and aviation/aerospace all have precedent for large corporate campuses: respectively Microsoft in Redmond, Washington; Thor Industries in Elkhart, Indiana; Cessna in Wichita, Kansas. Typical companies, however, require building footprints well under the 40‐50 acre threshold we have defined as a large lot industrial site. These needs are generally met by the existing land use process in Oregon. Industries requiring large acreages that hold promise for the Central Oregon region include: * Data centers * Warehouse/distribution centers * Select high technology/biosciences operation.” * OAR 660-009-0015: (5) Cities and counties are strongly encouraged to assess community economic development potential through a visioning or some other public input based process in conjunction with state agencies. Cities and counties are strongly encouraged to use the assessment of community economic development potential to form the community economic development objectives pursuant to OAR 660 -009- 0020(1)(a). PAGE 19 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 Finding: Deschutes County applied its regional coordination responsibilities (ORS 195.025) by forming a Regional Advisory Committee (RAC) to help guide the development of the REOA. Besides representatives of local government, members included EDCO, DLCD, Business Oregon, Oregon Department of State Lands, 1,000 Friends of Oregon, Central Oregon Intergovernmental Council, Central Oregon Association of Realtors and Johnson Reid, LLC. The RAC developed a community vision, which summarizes what the region’s economic development goals are as they particularly relate to large lot industrial demand. The following, cited on page 7 of the REOA, is the stated vision: “To build a strong and thriving regional economy by establishing and actively maintaining a competitive portfolio of large lot employment sites and coordinating public investments, policies and regulations to support regional and state economic development objectives.” * OAR 660-009-0020 - Industrial and Other Employment Development Policies (1) Comprehensive plans subject to this division must include policies stating the economic development objectives for the planning area. These policies must be based on the community economic opportunities analysis prepared pursuant to OAR 660-009- 0015 and must provide the following: (a) Community Economic Development Objectives. The plan must state the overall objectives for economic development in the planning area and identify categories or particular types of industrial and other employment uses desired by the community. Policy objectives may identify the level of short-term supply of land the planning area needs. Cities and counties are strongly encouraged to select a competitive short-term supply of land as a policy objective. Finding: Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook Counties by responding to a specific employment need identified in a REOA for large-lot industrial sites in Central Oregon. The primary economic development objective of the REOA is to assure that the regional industrial land inventory is adequate to support the specific needs of large lot industrial users. Deschutes County is adopting a REOA in conjunction with several regional industrial land policies to comply with OAR 660-009- 0020. Draft policies include: **The Central Oregon region, comprised of Jefferson, Crook and Deschutes counties and its respective cities recognizes the market reality that the region currently serves as an integrated, cohesive economic unit, sharing work force and commercial amenities, and should be marketed as such to increase its perceived scale in the market. **The Central Oregon region needs a critical mass of competitive and diverse vacant, developable large lot industrial sites in order for site selectors representing potential industrial recruitment to consider the region, along with all PAGE 20 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 of the other needed support factors including adequately skilled workforce, workforce training programs, worker housing, supportive local government, utility services, transportation, and quality of life. **Developing and maintaining a supply of large readily available industrial sites is not currently part of regional economic development efforts, therefore the region’s jurisdictions have developed Goal 9 compliance based on projected growth, and the attraction of a large industrial user that is recognized as an exogenous impact to these projections. **A large-lot industrial site is 50 acres or larger with specific site attributes and amenities. **Short term supply is a readily available and developable inventory of up to 6 sites in at least three separate jurisdictions in order to provide a choice to prospective industries or site selectors. Two of the 6 sites would be 100 to 200 acres and one site would be 200+ acres. * OAR 660-009-0020: (1)(b) Commitment to Provide a Competitive Short-Term Supply. Cities and counties within a Metropolitan Planning Organization must adopt a policy stating that a competitive short-term supply of land as a community economic development objective for the industrial and other employment uses selected through the economic opportunities analysis pursuant to OAR 660-009-0015. Finding: Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook Counties by responding to a specific employment need identified in a REOA for large-lot industrial sites in Central Oregon. Deschutes County is adopting a REOA and industrial land policies to comply with OAR 660-009-0020(1)(b). Deschutes County satisfies this administrative rule by including the following policy: **The short term supply of 6 sites is a community development objective of Central Oregon for establishing large-lot industrial uses. * OAR 660-009-0020: (1)(c) Commitment to Provide Adequate Sites and Facilities. The plan must include policies committing the city or county to designate an adequate number of sites of suitable sizes, types and locations. The plan must also include policies, through public facilities planning and transportation system planning, to provide necessary public facilities and transportation facilities for the planning area. Finding: Adopting the policies in Ordinance 2011-017 and the REOA is the first step for each of the participating jurisdictions in Central Oregon in providing opportunities to meet the local and rural needs for industrial development. As stated previously, the purpose of the adoption of these comprehensive plan changes and the REOA is not to adopt specific lands to be designated to fulfill the identified industrial or other employment use needs. The ordinance is merely the first step in process and the PAGE 21 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 identification of specific serviceable lands will occur later. Public facility and transportation system plan policies that provide for necessary public and transportation facilities in the planning area will occur at the time specific industrial lands are identified and proposed to be adopted by each of the Central Oregon jurisdictions. Until those specific proposals occur, it is premature to have such policies. As stated earlier, Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook Counties by responding to a specific employment need identified in a REOA for large-lot industrial sites in Central Oregon. Deschutes County is adopting a REOA and several regional industrial land policies to comply with OAR 660-009- 0020(1)(c). The commitment to establish and maintain a supply of large-lot industrial sites rests with all the local governments in the tri-county region. Deschutes County satisfies this administrative rule by including the following draft policies: **Deschutes County recognizes the importance for maintaining an appropriate available large-lot industrial land supply that is readily developable in Central Oregon. ** The supply of up to 6 sites, located in existing or amended Urban Growth Boundaries (UGBs), addresses the short-term large lot industrial regional land need in Central Oregon and can be incorporated as an additional component of a city’s twenty year land supply. **Participating cities in Deschutes County will support the existing economic base by providing adequate land and infrastructure to make city sites attractive to businesses willing to invest in high job density and industrial activity. **Cities in Deschutes County will continue to provide high quality physical infrastructure to serve the needs of business. **Deschutes County, fulfilling its coordination duties specified in ORS 195.025, shall approve and update its comprehensive plan when participating cities within their jurisdiction legislatively or through a quasi-judicial process designate regionally significant sites. * OAR 660-009-0020: (2) Plans for cities and counties within a Metropolitan Planning Organization or that adopt policies relating to the short-term supply of land, must include detailed strategies for preparing the total land supply for development and for replacing the short-term supply of land as it is developed. These policies must describe dates, events or both, that trigger local review of the short-term supply of land. Finding: Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook Counties by responding to a specific employment need identified in a REOA for large-lot industrial sites in Central Oregon. Deschutes County is adopting a REOA and several regional industrial land policies to comply with OAR 660-009-0020(2). The commitment to establish and maintain a supply of large-lot industrial sites rests with all the PAGE 22 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 participating local governments in the tri-county region. Deschutes County satisfies this administrative rule by including the following draft policies: **Central Oregon cities and counties shall, within 6 months of the adoption of this policy, execute Memorandums of Understanding (MOUs) that specify: 1. Cities, after conducting alternative lands and public facility analyses, but prior to any entitlement process, receive formal support from Economic Development of Central Oregon that potential sites contain necessary site characteristics and standards as defined in the REOA to attract large-lot industrial recruiters. 2. Establishment of a regional authority, responsible for formally supporting regional large lot industrial sites after cities identify potential candidates through alternative lands and public facility analyses, but prior to any entitlement process. 3. A Regional Advisory Committee (RAC) will be convened (at least) annually with each city and county providing activity reports relating to the short term land supply. Facilitating the RAC will be the responsibility of the counties (ORS 195.025) and will rotate each year, starting alphabetically with Crook County. **Deschutes County supports Economic Development of Central Oregon (EDCO), a non-profit organization facilitating new job creation and capital investment to monitor and advocate for the region’s efforts of maintaining an inventory of appropriate sized and located industrial lots available to the market. **Deschutes County, in collaboration with other Central Oregon’s counties and cities and EDCO, will coordinate and seek assistance from state agencies to continually support a regional economic development replenishment strategy. * OAR 660-009-0020: (3) Plans may include policies to maintain existing categories or levels of industrial and other employment uses including maintaining downtowns or central business districts. (4) Plan policies may emphasize the expansion of and increased productivity from existing industries and firms as a means to facilitate local economic development. (5) Cities and counties are strongly encouraged to adopt plan policies that include brownfield redevelopment strategies for retaining land in industrial use and for quali fying them as part of the local short-term supply of land. (6) Cities and counties are strongly encouraged to adopt plan policies pertaining to prime industrial land pursuant to OAR 660-009-0025(8). (7) Cities and counties are strongly encouraged to adop t plan policies that include additional approaches to implement this division including, Finding: These specific administrative rules are not requirements; therefore Deschutes County is not required to incorporate specific policies to address them. PAGE 23 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 * OAR 660-009-0025 - Designation of Lands for Industrial and Other Employment Uses Cities and counties must adopt measures adequate to implement policies adopted pursuant to OAR 660-009-0020. Appropriate implementing measures include amendments to plan and zone map designations, land use regulations, public facility plans, and transportation system plans. (1) Identification of Needed Sites. The plan must identify the approximate number, acreage and site characteristics of sites needed to accommodate industrial and other employment uses to implement plan policies. Plans do not need to provide a different type of site for each industrial or other employment use. Compatible uses with similar site characteristics may be combined into broad site categories. Several broad site categories will provide for industrial and other employment uses likely to occur in most planning areas. Cities and counties may also designate mixed -use zones to meet multiple needs in a given location Finding: Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook Counties by responding to a specific employment need identified in a REOA for large-lot industrial sites in Central Oregon. Deschutes County is adopting a REOA and several regional industrial land policies to comply with OAR 660-009-0025. As described above, the REOA defines the short and long term need to accommodate large lot industrial sites. Regulations and comprehensive plan policies that provide an adequate supply of sites of suitable sizes, types, locations and service levels for industrial uses will occur when cities conduct their alternative land and public facilities analyses and inventory of employment lands when examining if the short-term regional need can be met inside their respective UGBs, consistent with OAR 660 Division 9 and Division 24. Deschutes County satisfies this administrative rule by including the following draft policies: **The supply of up to 6 sites, located in existing or amended Urban Growth Boundaries (UGBs), addresses the short-term large lot industrial regional land need in Central Oregon and can be incorporated as an additional component of a city’s twenty year land supply. **The short term supply of 6 sites is a community development objective of Central Oregon for establishing large-lot industrial uses. **Deschutes County recognizes the importance for maintaining an appropriate and available large-lot industrial land supply that is readily developable in Central Oregon. **Participating cities, when examining candidate sites, shall conduct their alternative land and public facilities analyses and inventory of employment lands by first examining if the short-term regional need can be met inside the implementing city’s UGB, before assessing lands adjacent to it as required by state law. Cites are not required to evaluate inventories throughout the region PAGE 24 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 because the adopted county plan has limited supply and specified site dispersal as specified by the regional EOA. **The supply of up to 17 long-term sites, which includes the 6 short term sites, represents the currently projected (total) 20-year regional land supply of this special industrial land classification. **When a city investigates and concludes that a potential qualifying large lot industrial site exists or can be assembled inside of its UGB (and the existing site zoning will be amended with the large lot overlay zoning assignment), that city must replace that original [future] buildable land supply or evaluate and conclude that the previously identified future land supply is no longer needed. * OAR 660-009-0025: (2) Total Land Supply. Plans must designate serviceable land suitable to meet the site needs identified in section (1) of this rule. Except as provided for in section (5) of this rule, the total acreage of land designated must at least equal the total projected land needs for each industrial or other employment use category identified in the plan during the 20-year planning period. Finding: As stated previously, the purpose of the adoption of these comprehensive plan changes and the REOA is not to adopt specific lands to be designated to fulfill the identified industrial or other employment use needs. The ordinance is merely the first step in process and the identification of specific serviceable lands will occur later. Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook Counties by responding to a specific employment need identified in a REOA for large-lot industrial sites in Central Oregon. Deschutes County is adopting a REOA and several regional industrial land policies to comply with OAR 660-009-0025(2). As described above, the REOA defines the long term need to accommodate large lot industrial sites. Deschutes County satisfies this administrative rule by including the following draft policy: **The supply of up to 17 long-term sites, which includes the 6 short term sites, represents the (currently projected) total 20-year land supply of this special industrial land classification. * OAR 660-009-0025: (3) Short-Term Supply of Land. Plans for cities and counties within a Metropolitan Planning Organization or cities and counties that adopt policies relating to the short-term supply of land must designate suitable land to respond to economic development opportunities as they arise. Cities and counties may maintain the short-term supply of land according to the strategies adopted pursuant to OAR 660 - 009-0020(2). Finding: As stated previously, the purpose of the adoption of these comprehensive plan changes and the REOA is not to adopt specific lands to be designated to fulfill the identified industrial or other employment use needs. The ordinance is merely the first step in process and the identification of specific serviceable lands will occur later. PAGE 25 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook Counties by responding to a specific employment land need identified in a REOA for large-lot industrial sites in Central Oregon. Deschutes County is adopting a REOA and industrial land policies to comply with OAR 660-009-0025(3). As described above, the REOA defines the short term need to accommodate large lot industrial sites. Deschutes County satisfies this administrative rule by including the following draft policy: **The supply of up to 6 sites, located in existing or amended Urban Growth Boundaries (UGBs), addresses the short-term large lot industrial regional land need in Central Oregon and can be incorporated as an additional component of a city’s twenty year land supply. * OAR 660-009-0025: (3)(a) Except as provided for in subsections (b) and (c), cities and counties subject to this section must provide at least 25 percent of the total land supply within the urban growth boundary designated for industrial and other employment uses as short-term supply. (b) Affected cities and counties that are unable to achieve the target in subsection (a) above may set an alternative target based on their economic opportunities analysis. (c) A planning area with 10 percent or more of the total land supply enrolled in Oregon's industrial site certification program pursuant to ORS 284.565 satisfies the requirements of this section. Finding: As stated previously, the purpose of the adoption of these comprehensive plan changes and the REOA is not to adopt specific lands to be designated to fulfill the identified industrial or other employment use needs. The ordinance is merely the first step in process and the identification of specific serviceable lands will occur later. Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook Counties by responding to a specific employment need identified in a REOA for large-lot industrial sites in Central Oregon. Deschutes County is adopting a REOA and industrial land policies to comply with OAR 660-009-0025(3)(a). Participating cities will need to address this criterion when they conduct their alternative land and public facilities analyses and inventory of employment lands when examining if the short-term regional need can be met inside their respective UGBs, consistent with OAR 660 Division 9 and Division 24. Deschutes County complies with this subsection by adopting the following policy: **Participating cities, when examining candidate sites, shall conduct their alternative land and public facilities analyses and inventory of employment lands by first examining if the short-term regional need can be met inside the implementing city’s UGB, before assessing lands adjacent to it as required by state law. Cites are not required to evaluate inventories throughout t he region PAGE 26 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 because the adopted county plan has limited supply and specified site dispersal as specified by the regional EOA. * OAR 660-009-0025: (4) If cities and counties are required to prepare a public facility plan or transportation system plan by OAR chapter 660, division 011 or division 012, the city or county must complete subsections (a) to (c) of this section at the time of periodic review. Requirements of this rule apply only to city and county decisions made at the time of periodic review. Finding: Deschutes County started its periodic review in 1988 and completed it on January 23, 2003. In 2003, the Oregon Legislature amended ORS 197.629(3) exempting counties from periodic review, excluding portions of its population within the urban growth boundary (UGB) of a city. * OAR 660-009-0025: (5) Institutional Uses. Cities and counties are not required to designate institutional uses on privately owned land when implementing section (2) of this rule. Cities and counties may designate land in an industrial or other employment land category to compensate for any institutional land demand that is not designated under this section. Finding: This administrative rule does not apply since the REOA identifies opportunities to establish and maintain large-lot industrial sites in Central Oregon. * OAR 660-009-0025: (6) Compatibility. Cities and counties are strongly encouraged to manage encroachment and intrusion of uses incompatible with industrial and other employment uses. Strategies for managing encroachment and intrusion of incompatible uses include, but are not limited to, transition areas around uses having negative impacts on surrounding areas, design criteria, district designation, and limiting non - essential uses within districts. Finding: As stated previously, the purpose of the adoption of these comprehensive plan changes and the REOA is not to adopt specific lands to be designated to fulfill the identified industrial or other employment use needs. The ordinance is merely the first step in process and the identification of specific serviceable lands will occur later. At that time, the local governments will determine a method for managing the encroachment and intrusion of incompatible uses while still being mindful of the need for farm and forest land conservation. Deschutes County is amending its comprehensive plan under its regional coordination responsibilities (ORS 195.025) to address global competition factors for large-lot industrial sites in Central Oregon. Deschutes County complies with this subsection by adopting the following policy: **Participating cities in Deschutes County shall adopt a large -lot industrial overlay zone that establishes and maintains the region’s large lot industrial site inventory and manages usage of such lands. PAGE 27 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 * OAR 660-009-0025: (7) Availability. Cities and counties may consider land availability when designating the short-term supply of land. Finding: As stated previously, the purpose of the adoption of these comprehensive plan changes and the REOA is not to adopt specific lands to be designated to fulfill the identified industrial or other employment use needs. The ordinance is merely the first step in process and the identification of specific serviceable lands will occur later. As noted in the REOA on page 25, among the barriers to land assemblies are: Property owners unwilling to sell (for many reasons: price, tax impact, sentimental value, replacement costs, and viable alternative locations). The sheer cost of the land; owners have an inflated expectation, or perhaps only one ownership out of a larger site assembly is a problem. Ownership interests are fractured (often true in family inheritance situations); this issue often is combined with absentee ownership, so that owners don’t really have a “stake” in the transaction and its impact on the community. Regulatory environment (zoning, environmental overlays, mandated parcel size). Infrastructure demands caused by land assembly, and the commensurate ability to finance necessary improvements. Legal issues, including clear title, easements, and encumbrances. * OAR 660-009-0025: (8) Uses with Special Siting Characteristics. Cities and counties that adopt objectives or policies providing for uses with special site needs must adopt policies and land use regulations providing for those special site needs. Special site needs include, but are not limited to large acreage sites, special site configurations, direct access to transportation facilities, prime industrial lands, sensitivity to adjacent land uses, or coastal shoreland sites designated as suited for water-dependent use under Goal 17. Policies and land use regulations for these uses must: (a) Identify sites suitable for the proposed use; (b) Protect sites suitable for the proposed use by limiting land divisions and permissible uses and activities that interfere with development of the site for the intended use; and (c) Where necessary, protect a site for the intended use by including measures that either prevent or appropriately restrict incompatible uses on adjacent and nearby lands. Finding: As stated previously, the purpose of the adoption of these comprehensive plan changes and the REOA is not to adopt specific lands to be designated to fulfill the identified industrial or other employment use needs. The ordinance is merely the first step in process and the identification of specific serviceable lands will occur later. Deschutes County is proposing comprehensive plan amendments to comply with this statute by adopting REOA and regional economic policies that recognize Central Oregon’s economic development opportunities for establishing and maintaining large lot industrial sites. Large-lot industrial sites are a special site need. Deschutes County complies with this subsection by adopting the following policies: PAGE 28 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 **The Central Oregon region, comprised of Jefferson, Crook and Deschutes counties and its respective cities, recognizes the market reality that the region currently serves as an integrated, cohesive economic unit, sharing work force and commercial amenities, and should be marketed as such to increase its perceived scale in the industrial recruitment marketplace. **The Central Oregon region needs a critical mass of competitive and diverse vacant, developable industrial sites in order for site selectors representing potential industrial recruitment to consider the region, along with all of the other needed support factors including adequately skilled workforce, workforce training programs, worker housing, supportive local government, utility services, transportation, and quality of life. **Developing and maintaining a supply of large readily available industrial sites is not currently part of regional economic development efforts, therefore the region’s jurisdictions have developed Goal 9 compliance based on projected growth, and the attraction of a large industria l user that is recognized as an exogenous impact to these projections. **The exogenous short-term need for large-lot industrial sites in Central Oregon is an additional component of a city’s twenty-year land supply. **Competing as a cohesive region allows Central Oregon to market a larger available work force, the size of which is often a key locational criterion for firms. **The need for large lot industrial sites is a regional need, with the economic development benefits widely distributed regardless of the specific firm location. **Large-lot industrial lands supply initiative exceeds the capacity of any single jurisdiction. **A large-lot industrial site is 50 acres or larger with specific site attributes and amenities. **Short term supply is a readily available and developable inventory of up to 6 sites in at least three separate jurisdictions in order to provide a choice to prospective industries or site selectors. Two of the 6 sites would be 100 to 200 acres and one site would be 200+ acres. **Long term inventory identifies sites that replenish the short term inventory when they are absorbed. **At least one of the 6 short term (readily available/developable in 6 months) sites would consist of a major, centrally located large-scale development property near the region’s geographic and workforce center, and where key infrastructure is in place and has excess capacity, either the north end of Bend or the southern end of Redmond, east of Highway 97. * OAR 660-009-0030 - Multi-Jurisdiction Coordination (1) Cities and counties are strongly encouraged to coordinate when implementing OAR 660-009-0015 to 660-009-0025. PAGE 29 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 (2) Jurisdictions that coordinate under this rule may: (a) Conduct a single coordinated economic opportunities analysis; and (b) Designate lands among the coordinating jurisdictions in a mutually agreed proportion. Finding: The Land Conservation and Development Commission adopted amendments to OAR chapter 660, division 9 on December 1, 2005. One of those amendments enabled cities and counties to conduct a single, regional EOA. This specific administrative rule allows cities and counties to coordinate EOAs and to designate lands among the coordinating jurisdictions in a mutually agree proportion.1 Under this new rule, regional coordination is strongly encouraged, but not required. Deschutes County is fulfilling its regional coordination responsibilities (ORS 195.025) by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, responding to a specific employment/land need identified in a REOA for large-lot industrial sites in Central Oregon. Deschutes County is also coordinating with two adjoining counties by voluntarily joining together with Crook and Jefferson counties and their respective cities as authorized in ORS 190.003 to 190.620, to collaborate on an unprecedented regional evaluation of the economic opportunities and constraints associated with users of large industrial parcels in the Central Oregon region. The REOA provides an extraordinary opportunity as demonstrated by the accompanying draft policies to establish and maintain a regional supply of large-lot industrial sites. Deschutes County complies with this subsection by adopting the following policies: **Deschutes County supports a multi-jurisdictional cooperative effort to pursue a regional approach to establish a competitive supply of large lot industrial sites particularly designed to address out-of-region industries that may locate in Central Oregon. ** Short term supply is a readily available and developable inventory of up to 6 sites in at least three separate jurisdictions in order to provide a choice to prospective industries or site selectors. Two of the 6 sites would be 100 to 200 acres and one site would be 200+ acres. **Participating Central Oregon cities and counties shall, within 6 months of their adoption of this policy, execute Memorandums of Understanding (MOUs) that specify: 1. Cities, after conducting alternative lands and public facility analyses, but prior to any entitlement process, receive formal support from Economic Development of Central Oregon that potential sites contain necessary site characteristics and standards as defined in the REOA to attract large-lot industrial recruiters. 2. Establishment of a regional authority, responsible for formally supporting regional large lot industrial sites after cities identify potential candidates through alternative lands and public facility analyses, but prior to any entitlement process . 1 http://www.oregon.gov/LCD/docs/economicdevelopment/g9_rule_fact_sheet.pdf PAGE 30 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 3. A Regional Advisory Committee (RAC) will be convened (at least) annually, with each city and county providing activity reports relating to short term land supply. Facilitating the RAC will be the responsibility of the counties (ORS 195.025) and will rotate each year, starting alphabetically with Crook County. **Participating cities, after conducting alternative lands and public facility analyses, but prior to any entitlement process, shall receive formal support from Economic Development of Central Oregon that candidate site(s) contain necessary site characteristics and attributes, as defined in the REOA, to attract large-lot industrial recruiters. 3. Statewide Planning Goals The parameters for evaluating these specific amendments are based on an adequate factual base and supportive evidence demonstrating consistency with Statewide Planning Goals. The following findings demonstrate that Ordinance 2011-017 complies with applicable statewide planning goals and state law. Goal 1, Citizen Involvement, is met through this adoption process because these amendments will receive duly noticed public hearings before the Deschutes County Planning Commission and Board of County Commissioners, consistent with ORS 215.060 and DCC 22.12.010. Goal 2, Land Use Planning, is met because ORS 197.610 allows local governments to initiate post acknowledgments plan amendments (PAPA). An Oregon Land Conservation and Development Department 45-day notice was initiated on June 23, 2011.2 This FINDINGS document provides the adequate factual basis and documented analysis for this plan update. Furthermore, OAR 660- 009-0030 (Multi-jurisdiction Coordination), and 1000 Friends of Oregon v. City of Dundee, 203 Or App 207 (2005) require Deschutes County to locally adopt the REOA as part of the comprehensive plan in order for local governments in the county to base land use decisions upon it. Goal 3, Agricultural Lands and Goal 4, Forest Lands , is not applicable because the County is adopting a technical document and several regional coordination and large-lot industrial land policies into its Comprehensive Plan. No plan designation changes, zoning map changes, development or land use changes are being proposed on agricultural or forest lands. Goal 5, Natural Resources, Scenic and Historic Areas, and Open Spaces , is not applicable because the County is adopting a technical document and several regional coordination and large-lot industrial lands policies. No development or land use changes are being proposed on or near inventoried Goal 5 resource lands. 2 Deschutes County completed period review on January 23, 2003. PAGE 31 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 Goal 6, Air, Water and Land Resources Quality, is not applicable because the County is adopting a technical document and several regional coordination and large-lot industrial land policies into its Comprehensive Plan. No development or land use changes are being proposed that impact air, water and land resource qualities. Goal 7, Natural Hazards, is not applicable because the County is adopting a technical document and several regional coordination and large -lot industrial land policies into its Comprehensive Plan. No development or land use changes are being proposed that impact natural hazards. Goal 8, Recreational Needs, is not applicable because the County is adopting a technical document and several regional coordination and large -lot industrial land policies into its Comprehensive Plan. No development or land use changes are being proposed on recreational resources. Goal 9, Economic Development, is applicable because in coordination with its regional partners, Deschutes County has prepared a regional evaluation of the economic opportunities and constraints associated with users of large industrial parcels in the Central Oregon. This approach recognizes the market reality that Central Oregon currently serves as an integrated economic unit. Goal 9 specifies that Comprehensive Plans for urban areas shall: 1. Include an analysis of the community's economic patterns, potentialities, strengths, and deficiencies as they relate to state and national trends; Findings: Deschutes County is proposing comprehensive plan amendments to comply with Goal 9 by adopting a REOA and economic policies that recognize Central Oregon’s potential for establishing and maintaining large lot industrial sites as it relates to state and national trends. Page 25 of the REO A identifies the strengths and challenges in the Central Oregon economy. “The competitive characteristics of Central Oregon can be strengthened through a regional approach. Individual jurisdictions in the region are too small to be considered viable candid ates for many of the targeted firms. The region acts as a cohesive unit, sharing work force and commercial amenities, and should be marketed as such to increase its perceived scale in the market.” 2. Contain policies concerning the economic development opportunities in the community Finding: Deschutes County is proposing comprehensive plan amendments to comply with this statute by adopting a REOA and e conomic policies that recognize Central Oregon’s economic development opportunities for establishing and maintaining large lot industrial sites. Page 40 of the REOA identifies a model of prospective demand based on annual large firm location activity. The model PAGE 32 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 assumes that if a competitive inventory is available and maintained, the region can capture a “fair share” of market activity. 3. Provide for at least an adequate supply of sites of suitable sizes, types, locations, and service levels for a variety of industrial and commercial uses consistent with plan policies; Finding: Regulations and comprehensive plan policies that provide an adequate supply of sites of suitable sizes, types, locations and service levels for industrial uses will occur when cities implement OAR 660 Division 9 and Division 24. Deschutes County complies with this subsection by adopting the following policy: **Participating cities, when examining candidate sites, shall conduct their alternative land and public facilities analyses and inventory of employment lands by first examining if the short-term regional need can be met inside the implementing city’s UGB, before assessing lands adjacent to it as required by state law. Cites are not required to evaluate inventories throughout the region because the adopted county plan has limited supply and specified site dispersal as specified by the regional EOA. 4. Limit uses on or near sites zoned for specific industrial and commercial uses to those which are compatible with proposed uses Finding: Regulations and comprehensive plan policies that provide an adequate supply of sites of suitable sizes, types, locations and service levels for industrial uses will occur when cities implement OAR 660 Division 9 and Division 24. Deschutes County complies with this subsection by adopting the following policy: **Participating cities in Deschutes County shall adopt a large-lot industrial overlay zone that establishes and maintains the region’s large lot industrial site inventory and manages usage of such lands. Goal 9 Planning Guidelines specify: 1. A principal determinant in planning for major industrial and commercial developments should be the comparative advantage of the region within which the developments would be located. Comparative advantage industries are those economic activities which represent the most efficient use of resources, relative to other geographic areas. Finding: The REOA documents large-lot trends and dynamics, importance of large- lot supply and market choice, and target industry opportunities in Central Oregon. As discussed above, Economic Development for Central Oregon (EDCO) in participation with local leaders, has gone through the lengthy process of identifying specific industry sectors for business recruitment, retention, and entrepreneurial support. PAGE 33 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 2. The economic development projections and the comprehensive plan which is drawn from the projections should take into account the availability of the necessary natural resources to support the expanded industrial development and associated populations. The plan should also take into account the social, environmental, energy, and economic impacts upon the resident population. Finding: As stated previously, the purpose of the adoption of these comprehensive plan changes and the REOA is not to adopt specific lands to be designated to fulfill the identified industrial or other employment use needs. The ordinance is merely the first step in process and the identification of specific serviceable lands will occur later. Thus, an ESEE analysis is not necessary at this time. Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook Counties by responding to a specific employment land need identified in a REOA for large-lot industrial sites in Central Oregon. Participating cities will need to address this guideline when they conduct their alternative land and public facilities analyses and inventory of employment lands when examining if the short-term regional need can be met inside their respective UGBs. Deschutes County complies with this guideline that underscores the importance of available natural resources to support expanded industrial development by adopting the following policy: **Participating cities, when examining candidate sites, shall conduct their alternative land and public facilities analyses and inventory of employment lands by first examining if the short-term regional need can be met inside the implementing city’s UGB, before assessing lands adjacent to it as required by state law. Cites are not required to evaluate inventories throughout t he region because the adopted county plan has limited supply and specified site dispersal as specified by the regional EOA. 3. Plans should designate the type and level of public facilities and services appropriate to support the degree of economic development being proposed. Finding: Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook Counties by responding to a specific employment need identified in a REOA for large-lot industrial sites in Central Oregon. Participating cities will need to address this guideline when they conduct their alternative land and public facilities analyses and inventory of employment lands when examining if the short-term regional need can be met inside their respective UGBs. Deschutes County complies with this guideline that underscores the importance of designating the type and level of public facilities and services to support proposed economic development by adopting the following policies: **Central Oregon cities and counties shall, within 6 months of the adoption of this policy, execute Memorandums of Understanding (MOUs) that specify: PAGE 34 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 1. Cities, after conducting alternative lands and public facility analyses, but prior to any entitlement process, receive formal support from Economic Development of Central Oregon that potential sites contain necessary site characteristics and standards as defined in the REOA to attract large-lot industrial recruiters. 2. Establishment of a regional authority, responsible for formally supporting regional large lot industrial sites after cities identify potential candidates through alternative lands and public facility analyses, but prior to any entitlement process. 3. A Regional Advisory Committee (RAC) will be convened (at least) annually with each city and county providing activity reports relating to short term land supply. Facilitating the RAC will be the responsibility of the counties (ORS 195.025) and will rotate each year, starting alphabetically with Crook County. **Participating cities in Deschutes County will support the existing economic base by providing adequate land and infrastructure to make city sites attractive to businesses willing to invest in high job density and industrial activity. **Cities in Deschutes County will continue to provide high quality physical infrastructure to serve the needs of business. 4. Plans should strongly emphasize the expansion of and increased productivity from existing industries and firms as a means to strengthen local and regional economic development. Finding: REOA identified large lot industrial development sites will serve regional industries seeking large lot industrial sites for expansion and/or relocation. Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook Counties by responding to a specific employment need identified in a REOA for large-lot industrial sites in Central Oregon. Participating cities will need to address this guideline when they conduct their alternative land and public facilities analyses and inventory of employment lands when examining if the short-term regional need can be met inside their respective UGBs. 5. Plans directed toward diversification and improvement of the economy of the planning area should consider as a major determinant, the carrying capacity of the air, land and water resources of the planning area. The land conservation and development actions provided for by such plans should not exceed the carrying capacity of such resources. Finding: This is a carrying capacity issue and not a coordination one. The air, land and water resource carrying capacity of the region will be accounted for, managed and maintained during the identification and development of regional large lot industrial sites. This will be achieved through individual jurisdictions applying their PAGE 35 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 Comprehensive Plan policies and development code regulations/standards to evaluate and regulate large lot development proposals and through application of development regulations and guidance found in the (required to be adopted) large lot industrial overlay zone. Deschutes County is fulfilling its coordination responsibilities by collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook Counties by responding to a specific employment need identified in a REOA for large-lot industrial sites in Central Oregon. Participating cities will need to address this guideline, which is also cited in Goal 6, when they conduct their alternative land and public facilities analyses and inventory of employment lands when examining if the short-term regional need can be met inside their respective UGBs. Goal 10, Housing is not applicable because, unlike municipalities, unincorporated areas are not obligated to fulfill certain housing requirements. Goal 11, Public Facilities is not applicable because the County is adopting a technical document and several regional coordination and large -lot industrial land policies into its Comprehensive Plan. No development or land use changes are being proposed that impact public facilities. Goal 12, Transportation, is not applicable because the County is adopting a technical document and several regional coordination and large -lot industrial land policies into its Comprehensive Plan. No development or land use changes are being proposed that impact local or state transportation facilities. Goal 13, Energy Conservation, is not applicable because the County is adopting a technical document and several regional coordination and large -lot industrial land policies into its Comprehensive Plan. No development or land use changes are being proposed that warrant energy conservation. Goal 14, Urbanization, is met because developing and maintaining a supply of large readily available industrial sites is not currently part of regional economic development efforts, therefore the region’s jurisdictions ha ve developed Goal 9 compliance based on projected growth, and the attraction of a large industrial user that is recognized as an exogenous impact to these projections. The exogenous need for large-lot industrial sites in Central Oregon is an additional co mponent of a city’s twenty-year land supply. No expansion of urban areas is proposed with these amendments. As noted below, one of Deschutes County’s draft policies specifies the obligations of participating cities to conduct alternative land and public facilities analyses and inventories of employment land consistent with OAR Division 9 and 24: **Participating cities, when examining candidate sites, shall conduct their alternative land and public facilities analyses and inventory of employment lands by first examining if the short-term regional need can be met inside the implementing city’s UGB, before assessing lands adjacent to it as required by PAGE 36 OF 36 – EXHIBIT “C” TO ORDINANCE 2011-017 state law. Cites are not required to evaluate inventories throughout the region because the adopted county plan has limited supply and specified site dispersal as specified by the regional EOA. Goals 15 through 19 are not applicable to any amendments to the County’s comprehensive plan because the county has none of those types of lands. 4. Comprehensive Plan / Urbanization Chapter This plan amendment is consistent with the Comprehensive Plan, DCC 23.48, Urbanization Goals and Policies as shown in Ordinance 2011-017, Exhibit A. This amendment specifically fulfills Urbanization Goal 4 by providing a factual basis for urbanizing large-lot industrial sites in Central Oregon and fostering intergovernmental cooperation. 5. Comprehensive Plan / Economy Chapter This plan amendment is consistent with the Comprehensive Plan, DCC 23.52, Economy Goals and Policies as shown in Ordinance 2011-017, Exhibit B. These findings demonstrate that there is a deficiency of large -lot industrial sites in Central Oregon. Providing for this specialized land need will diversify and improve the economy of the area and enhance industrial segments of the local economy, thereby satisfying Goals 1 and 2. This effort will increase employment opportunities throughout the region and help implement plans and programs in a tri-county region to develop industrial lands consistent with Policies 3.a, 3.b and 3.g. Attachment: Regional Economic Opportunity Analysis