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HomeMy WebLinkAboutMOA - DSL - Redmond PropertyDepartment of Administrative Services Dave Kanner, County Administrator December 29, 2009 TO: Board of Commissioners FROM: Dave Kanner RE: MOA with Department of State Lands 1300 NW Wall St, Suite 200, Bend, OR 97701-1960 [541) 388-6570 - Fax [541) 385-3202 www.co.deschutes.or.us As you know, the Department of State Lands owns a 945 -acre parcel immediately south of the Fair and Expo Center. We have been negotiating with the DSL to acquire a 238 - acre portion of that property. The County has no immediate plans for the 238 acres, other than to ensure there's a buffer between the fairgrounds and any other uses that might be approved on the DSL property. The DSL, however, would like to bring its holdings into the Redmond urban growth boundary and rezone the property for large -lot heavy industrial development. Toward that end, the DSL and the County have jointly applied for a grant from the Department of Land Conservation and Development to conduct an economic opportunity analysis in the tri -County Central Oregon region. The assumption is that an EOA will demonstrate the need for large -lot industrial property which could then be used to justify a special exception UGB expansion in Redmond. Last summer I was approached by John Lilly, DSL asset manager for Central Oregon, with the idea of having the DSL and the County enter into a memorandum of agreement on how our two agencies would proceed with the EOA, petition the city for UGB expansion and then support future industrial development on the property. John and I traded numerous drafts of the MOA from September through December (with significant input from the Planning Division and the Road Department) and we believe we now have it in a relatively final form. An MOA is, of course, not binding on either party, but it is useful in clarifying mutual expectations and avoiding surprises. I also don't see much point in entering into this MOA until we know for certain that we've been awarded the EOA grant. The DLCD's schedule for announcing grant awards is uncertain. In general, the MOA states that the DSL and the County shall: ■ Work cooperatively on the EOA; Enhancing the Lives of Citizens by Delivering Quality Services in a Cost -Effective Manner ■ Jointly petition the City of Redmond for a UGB expansion (if justified by the EOA) and share proportionally in the cost of doing so; • Jointly petition the city for annexation of the property if the UGB is expanded; ■ Cooperate on the 19th Street extension through the DSL property; and • Have DSL pay its fair share of infrastructure improvement if their property is brought into the city. I am presenting this MOA to you for your information and to see if you have any specific concerns about it. I will be happy to answer any questions at the January 4 work session. MEMORANDUM OF AGREEMENT Between THE OREGON DEPARTMENT OF STATE LANDS and DESCHUTES COUNTY pertaining to COOPERATIVE PLANNING FOR DEVELOPMENT OF THE SOUTH REDMOND TRACT [date] The Oregon Department of State Lands (DSL) owns and manages the South Redmond Tract (SRT), a 945 -acre tract of vacant Common School Fund (CSF) land due south of the Deschutes County Fairgrounds and Expo Center and east of the Redmond Juniper Golf Course. Although currently outside of the Redmond Urban Growth Boundary (UGB) and Redmond City Limits (CL), the SRT is immediately adjacent and contiguous to both the Redmond CL and UGB alone the north and west property lines In January 2009, DSL and Deschutes County (the County) entered into an agreement to transfer up to 238 -acres of the SRT to the County via land exchange. It is the mutual intention of both DSL and the County to: 1. To conduct and actively participate in a Regional Economic Opportunities Analysis (EOA) for large -lot industrial land needs in order to establish and document whether there is an unmet regional land need; 2. If justified by the findings and conclusions of the Regional EOA, petition the City of Redmond to expand its UGB and city limits to include the SRT; 3. Support future large -lot industrial development and supporting uses throughout Central Oregon and especially in Deschutes County; and 4. Support the on-going and future (expanded) operations of the Deschutes County Fairgrounds and Expo Center Memorandum of Agreement Page 1 of 5 PURPOSE In order to further the intentions of DSL and the County regarding the UGB inclusion, annexation, infrastructure improvement and industrial development of the SRT, this Memorandum of Agreement (MOA) seeks to: • Promote collaboration, coordination and open communication; • Coordinate individual efforts and reduce duplication of effort; • Promote efficiency; • Control or reduce project costs; • Promote understanding, reduce potential conflicts and eliminate surprises; • Provide enhanced certainty regarding process and desired outcomes; and • Take advantage of combined knowledge, skills and experience of agency staff SCOPE This MOA outlines the roles and,responsibilities, project sequencing and timing, and cost sharing regarding the following SRT -related initiatives and projects: a.) Regional Economic Opportunities Analysis (EOA) for large -lot industrial uses • The County has been awarded a Technical Assistance (TA) grant from the Department of Land Conservation and Development (DLCD) to fund the completion of the remaining work plan elements of the Regional EOA for large -lot industrial uses. • DSL has committed to assist the County in the administration of this DLCD TA Grant if requested by the County. Such administrative support may include but is not limited to: working with and/or managing consultants, financial reporting, organizing and participating in project meetings and presentations, reviewing consultant work products, providing project updates and progress reports, working with project participants. b.) Urban Growth Boundary (UGB) expansion to include the SRT • DSL and the County agree to petition the City of Redmond to include ,the SRT into the Redmond UGB (as supported by the findings and Deleted: the SRT conclusions of the Regional EOA) and request the SRT be designated for industrial and supporting uses. Memorandum of Agreement Page 2 of 5 • DSL and the County agree to cost share in the UGB petition costs (including in-kind planning service contributions) in proportions equivalent to their respective land ownership of the SRT. • In the event that the Regional EOA concludes that there is not an unmet regional land need for large lot industrial sites, then this section of the MOA is suspended. c.) Annexation of the SRT into Redmond and urban zoning assignment • In the event that the Regional EOA concludes that there is not an unmet regional land need for large lot industrial sites, then this section of the MOA is suspended. • Upon being added to the Redmond UGB, DSL and the County agree to petition for the SRT to be annexed into the City of Redmond and zoned for industrial and supporting uses. • DSL and the County agree to cost share in the annexation petition costs (including in-kind planning service contributions) in proportions equivalent to their respective land ownership of the SRT. d.) Land Entitlement Activities • DSL and the. County agree to pursue City of Redmond land use entitlement/planning approvals for their respective land ownership individually and unilaterally. However, both parties agree to communicate freely and frequently as to their respective plans. • DSL and the County agree not to pursue SRT land use approvals or take any actions at the SRT that would be contrary or detrimental to the large -lot industrial'and supporting uses development plans for the SRT as articulated and described in the October 2008 State Land Board approved South Redmond Tract Land Use and Management Plan. e.) 19th Street Extension Design and Right of Way (ROW) on DSL property DOJ/AG rulings have established that CSF assets (including R -O -W and easements) cannot be given away without appropriate compensation unless required as part of conditions of a land use approval. This is the historic and current practice that is routinely and consistently implemented with state agencies (ODOT, Parks, ODFW, ODOF, etc.) and local governments (cities & counties) regarding conveying rights -of -ways and easements on CSF assets. • DSL agrees to allow the County full access to the SRT for purposes of conducting preliminary design and reconnaissance work associated with the location and design of the 19th Street Extension. Memorandum of Agreement Page 3 of 5 • The County agrees to design the southward extension of 19th Street through the SRT according to design principles that readily permit and support the future transition to full City of Redmond urban design standards including PEAK CAPACITY DESIGN needed to support existing and future County facility activities and the proposed Targe lot industrial development and supporting uses on the SRT. DSL will credit the County for full build -out, Redmond city standard street engineering and design work that is above and beyond that needed to construct the proposed 19th Street county road. • The County agrees to apply to and acquire from DSL sufficient,ROW on the SRT to accommodate the planned, County -standard le Street extension. • DSL agrees to promptly process the County's application [and issue a permit] for the ROW in accordance with tits] administrative rules (OAT, 141-122) governing the processing and issuance of easements for ROW's such as the 19th Street extension. DSL will not unreasonably withhold approval of the easement application. • DSL will dedicate the ROW (without cost) if required by the City of Redmond or the County as 6i condition of a local land use approval or development permit. Otherwise DSL will require a cash or non-cash compensatory payment for the ROW in accordance with OAR 141-122. The value of the payment will be based on the appraised fair market value of the ROW. • If the County prefers a non -rash compensatory payment, DSL will make every reasonableeffort to substitute a non-cash compensatory payment for cash payment. The terms of the non-cash compensatory payment will be negotiated by the parties and established by agreement. If, after'a reasonable time following submittal of the County's ROW application, an agreement is not reached, a cash payment will be required. f.) Infrastructure Cost Sharing Provided that the SRT becomes included in the Redmond UGB and receives an urban zoning assignment, DSL will work (in good faith) with the appropriate local jurisdiction to determine the extent of its financial participation in infrastructure design, installation, improvement or enhancement based on the direct proportionality of the impacts attributable to urban development of DSL's SRT lands. It is important to note that urban infrastructure improvements on and through the SRT are of no direct value to the SRT, the Common School Fund (CSF) or DSL if the SRT remains outside of the Redmond UGB in Agriculture/EFU designation and zoning. There is no nexus or rationale for the CSF/DSL to participate in infrastructure enhancements or improvements if the current EFU zoning assignment remains. With the current SRT EFU zoning, urban uses requiring urban infrastructure and services are Memorandum of Agreement Page 4 of 5 Deleted: ROW on Deleted: 141 not permitted and thus there is no reason, rationale or basis for DSL to participate in such improvements. Modification or Termination This Agreement may be modified with agreement of both parties or terminated by either party with 30 days written notice to the other party. Expenditure of Funds Nothing in this Memorandum of Agreement shall be construed as obligating the County or DSL to expend funds or involve either party in contract or other obligation for the future payment of money in excess of appropriations authorized by law and administratively available for this work. OREGON DEPARTMENT OF DESCHUTES COUNTY STATE LANDS Louise Solliday, Director date Dave Kanner, County Administrator date Memorandum of Agreement Page 5 of 5