CITY HALL 716 SW EVERGREEN AVE REDMOND, OR 97756 541.923.7710 FAX: 541.548.0706 www.ci.redmond.or.us
CITY COUNCIL December 10, 2013 Council Chambers • 777 SW Deschutes Avenue
COUNCIL MEMBERS DECEMBER 10, 2013 REGULAR MEETING AGENDA 7:00 P.M.
George Endicott I. CALL TO ORDER / ESTABLISH A QUORUM Mayor II. INVOCATION Tory Allman A. Pastor Michael Dismore, Central Oregon Police Chaplaincy Councilor III. PLEDGE OF ALLEGIANCE Joe Centanni Councilor IV. COMMENTS FROM CITIZENS AT THE MEETING
Camden King V. MAJOR REDMOND STREET CONSTRUCTION UPDATE Councilor VI. CONSENT AGENDA Ginny McPherson A. Minutes of November 12, 2013, P.M. Council Meeting Exhibit 1 Councilor B. Minutes of November 25, 2013, Special P.M. Council Workshop Exhibit 2 C. Minutes of November 26, 2013, Special P.M. Council Workshop Exhibit 3 Ed Onimus D. Minutes of November 26, 2013, P.M. Council Meeting Exhibit 4 Councilor E. Air Service Agreement with American Airlines Exhibit 5 F. Re-Approval of City Investment Policy, FIN 111 - Investments Exhibit 6 G. Change Order with Povey and Associates Land Surveyors for Exhibit 7 Jay Patrick Councilor the Homestead Canal Trail Survey Project H. Healthcare Preparedness Program Grant Award Exhibit 8
VII. ACTION ITEMS A. 27th Street Roundabout Public Art Project Proposal Exhibit 9
VIII. PRESENTATIONS A. Economic Development for Central Oregon, Roger Lee
IX. BID AWARD / BID REJECTION A. SW Timber Avenue 18” Transmission Main Exhibit 10
X. PUBLIC HEARINGS A. Ord. #2013-15 – An ordinance amending the City of Redmond Exhibit 11 Urban Area Comprehensive Plan, to adopt the Central Oregon Large Lot Industrial Land Need Analysis as a reference document, with associated Comprehensive Plan Goals and Policies added to Chapter 9, Economic Development and Chapter 14, Urbanization. B. Ord. #2013-16 – An ordinance amending the City of Redmond’s Exhibit 12 Comprehensive Plan Map and Zoning Map to rezone 465 acres known as the East Redmond Industrial Site to Industrial and Service Commercial. C. Ord. #2013-17 – An ordinance amending the City of Redmond’s Exhibit 13 Transportation System Plan, to adopt the Transportation Mitigation Plan of City/ODOT Intergovernmental Agreement #28621, as required by Oregon Senate Bill 1544.
XI. MAYOR’S COMMENTS A. Commission / Committee Appointments i. Budget Committee – Appointment of Michael Haas term expiring Exhibit 14 December 31, 2016. ii. Downtown Urban Renewal Advisory Committee – Exhibit 15 Appointment of Thomas Kemper, term expiring December 31, 2017. iii. Historic Landmarks Commission – Appointment of Al Jamison Exhibit 16 term expiring December 31, 2017. iv. Parks Commission – Reappointment of Richard Lance and Exhibit 17 Gary Parks, and appointment of James Cook and Rena Meeks, terms expiring December 31, 2016. v. Redmond Commission for Art in Public Places – Exhibit 18 Reappointment of Gillian Burton and Linda Hill, and appointment of Frank Graham and Jessica Rowan, terms expiring December 31, 2017. Appointment of Chayce Burnette as Youth Ex-Officio, term expiring December 31, 2014. vi. Redmond Development Commission – Reappointment of Ed Fitch and Stuart Woolley, terms expiring December 31, 2017. vii. Urban Area Planning Commission – Appointment of Jennifer Exhibit 19 Cort as Youth Ex-Officio, term expiring December 31, 2014.
XII. COUNCIL COMMENTS
XIII. CITY MANAGER COMMENTS
XIV. ADDITIONAL COMMENTS FROM CITIZENS AT THE MEETING
XV. ADJOURN
Regular Council meetings are broadcast live on COTV11 – BendBroadband Channel 11 beginning at 7:00 p.m. on the 2nd and 4th Tuesdays of each month. Rebroadcasts are scheduled for the non-meeting Tuesdays at 7:00 p.m., and Sunday at 1:00 p.m. Anyone needing accommodation to participate in the meeting must notify Mike Viegas, ADA Coordinator, at least 48 hours in advance of the meeting at 541-504-3032, or through the Telecommunications Relay Service (TRS) which enables people who have difficulty hearing or speaking in the telephone to communicate to standard voice telephone users. If anyone needs Telecommunications Device for the Deaf (TDD) or Speech To Speech (STS) assistance, please use one of the following TRS numbers: 1-800-735-2900 (voice or text), 1-877-735-7525 (STS English) or 1-800-735-3896 (STS Spanish). The City of Redmond does not discriminate on the basis of disability status in the admission or access to, or treatment, or employment in, its programs or activities
Council Meeting Agenda – December 10, 2013 – Page 2
REGULAR CITY COUNCIL MEETING OF THE CITY OF REDMOND WAS HELD NOVEMBER 12, 2013, IN THE CITY COUNCIL CHAMBERS.
COUNCIL MEMBERS PRESENT: Tory Allman – Joe Centanni – George Endicott – Camden King – Ginny McPherson – Ed Onimus – Jay Patrick
STAFF PRESENT: City Manager Keith Witcosky – Assistant City Manager Sharon Harris – Acting City Attorney Lonn Johnston – Police Officer Keith Knight – Public Works Director Bill Duerden – City Engineer Mike Caccavano – City Recorder Kelly Morse – Community Development Director Heather Richards – CIS Administrator Sheri Cleveland – Finance/Budget Manager Jason Neff
MEDIA PRESENT: COTV
Mayor Endicott called the meeting to order at 7:00 p.m.
INVOCATION
Mayor Endicott stated that as President of the League of Oregon Cities, he had the privilege of selecting Pastor Mike Dismore for the annual conference invocation.
Pastor Dismore, Central Oregon Police Chaplaincy, led the invocation.
PLEDGE OF ALLEGIANCE
Councilor Patrick led the Pledge of Allegiance.
COMMENTS FROM CITIZENS AT THE MEETING
Redmond resident Johnny Corbin shared that the Living History event took place at Redmond Proficiency Academy (RPA). Participants included Representative Gene Whisnant, Medal of Honor Recipient Bob Maxwell, Mayor Endicott, Z21 Chief Meteorologist Bob Shaw, Deschutes County District Attorney Patrick Flaherty, and Deschutes County Commissioner Tammy Baney. Mr. Corbin thanked RPA Director Jon Bullock, RPA Teacher Matt Killpack, RPA Student Council and Staff, and the community for their participation in making this such a successful program. Mayor Endicott stated that the students were great and asked great questions. Mr. Corbin also thanked the John Spence division of the Navy Sea Cadets for their serving as the Color Guard during the event.
Kirk Spansel spoke on behalf of his father-in-law George Addington who lives in north Redmond. Mr. Addington would like to know when city services such as water and sewer would be available to his property. City Engineer Mike Caccavano stated he will exchange contact information with Mr. Spansel and discuss the possibility of services. If services are not reasonably available, property owners are permitted to drill wells and install septic systems.
MAJOR REDMOND STREET CONSTRUCTION UPDATES
Mr. Caccavano stated there are no current construction projects taking place, but was able to update the Council on the upcoming Timber Avenue Water Transmission Main project.
CONSENT AGENDA A. Minutes of October 22, 2013 Special P.M. Council Meeting (Exhibit 1) B. Minutes of October 22, 2013 P.M. Council Meeting (Exhibit 2) C. Minutes of October 29, 2013 Special P.M. Council Workshop (Exhibit 3) D. Safety Belt Enforcement Traffic Safety Grant Acceptance (Exhibit 4) E. DUII Traffic Safety Grant Acceptance (Exhibit 5) F. Code Enforcement Liens (Exhibit 6) Page 2 – Redmond City Council Meeting – November 12, 2013
G. Airport Concessions Disadvantage Business Enterprise Program and Goals (Exhibit 7)
Councilor King moved, seconded by Councilor Allman, to approve the Consent Agenda, motion passed. (Allman-yes, Centanni-yes, Endicott-yes, King-yes, McPherson-yes, Onimus-yes, Patrick- yes)
PRESENTATIONS A. Employee Spotlight
Assistant City Manager Sharon Harris presented an Employee Spotlight on Utility Billing Manager Molly Mansfield, Utility Billing Specialists Vicki Cudek and Kimberly Dean. The Utility Billing team provides services to over 9,000 accounts each month and epitomizes the City’s Core Values.
B. Redmond Chamber of Commerce Update, Eric Sande
Redmond Chamber of Commerce (Chamber) Executive Director Eric Sande, Marketing Director Dan Mooney, Membership/Finance Director Charlie Rucker provided the Council with an update on Chamber activities which include an update of their website, an interactive application, and an electronic version of the visitors guide available at the iBookstore. The electronic visitors guide which won best tourism piece for a large sized Chamber at the joint conference of Oregon/Washington Chambers. Mr. Sande answered questions from the Council.
PUBLIC HEARINGS A. Sale and Relocation of the Old Redmond Schoolhouse located at 1429 W Antler Avenue. (Exhibit 8)
Mayor Endicott opened the public hearing.
Community Development Director Heather Richards presented the Council with a presentation on the possible sale and relocation of the Old Redmond Schoolhouse (Schoolhouse) located at 1429 W Antler Avenue. The Redmond Historic Landmarks Commission (Commission) worked for the past two years on this project and voted to recommend the sale and relocation with the following caveats:
1. It remains in the Redmond city limits 2. It is preserved as much as possible 3. Its history and significance is interpreted for the community
In 2011, the Council adopted the Near Term North Central Dry Canyon Utilization Plan which recommends removing the Schoolhouse. The Commission then began discussing the potential impact created by removing the Schoolhouse which is listed in the State Historic Resources Database.
History of the Schoolhouse is as follows:
• Built in 1905, it was one of four buildings of similar style (prior to railroad in Redmond and the City’s incorporation) • Used as the first school for homesteaders. Frank Redmond was on the Board of Directors. • Front porch was added in 1913 with the back porch added in 1920. The current footprint dates back to 1928. • The original location was on the corner of F Street (now Forest Avenue) and 7th Street. Was moved to its current location in 1976 by former Mayor Bob Riggs to save it from demolition.
Staff commissioned an architectural assessment which determined that the Schoolhouse does have historic value, the architectural integrity is “not bad”, and the restoration cost estimate is $125,000.
Page 3 – Redmond City Council Meeting – November 12, 2013
The Commission met with the Parks Commission to determine if there was interest in locating a vendor/concessionaire facility as part of the park plan and whether there was interest in preserving the Schoolhouse. In April 2012, a Request for Proposal (RFP) was issued. While the RFP generated a great deal of interest, the capital construction costs for improvements were too great. In May 2013, the Commission was approached by a private party which expressed interest in relocating the structure. In September 2013, the Commission recommended moving the Schoolhouse because it is not in the original location and due to the increase in vandalism and deterioration of the structure.
Through the notification process of the public hearing, one proposal was received by the deadline. The proposal is as follows:
• Purchase the Schoolhouse for $1.00 • Relocate the structure to 13th Street between Forest and Glacier Avenues and use as a home • Preserve historic integrity • Interpret the structures history through a plaque and add it to the Walking Tour • Host an open house at the conclusion of the restoration process • Relocate the “Did you know” signs to the new site while under construction
Commission Chair Jack Nelson provided the Council with the Commission’s perspective and process to date adding that difficulties have been centered on taking a structure that is significant to the community and utilizing approaches that would allow the building to fulfill other needs in the Dry Canyon from its current location. Mr. Nelson opined the Commission would be open to resources other than the City to restore the facility in order to leave the building where it resides.
Roger Lee addressed the Council regarding his proposal adding that his desire is to restore the building back to its original use as a single family dwelling. Mr. Lee has purchased an in-fill lot within a historical area of Redmond and would relocate the building to that location.
There being no further testimony, Mayor Endicott closed the public hearing.
Councilor King thanked Mr. Lee for his proposal and for the work he performs; however, he expressed concern that all of the possible options for the oldest structure in Redmond have not been researched.
A great deal of additional discussion took place on possible uses, ability to raise funds for renovation, the current proposal, and the need for additional due diligence. Councilor Centanni commented that he views this building as a historic artifact and does not want to see it demolished. While Mr. Lee would do a phenomenal job with renovating the building, Councilor Centanni opined he would first like to make sure all avenues have been explored.
Councilor Onimus explained that a public asset sitting vacant and unused provided no economic value noting that if the City waits to long to make a decision, Mr. Lee’s proposal might be withdrawn. Councilor Onimus opined that as stewards of public funds, Mr. Lee’s proposal offers the City an opportunity to remove a blighted structure, renovates it using private funds, and retains the historical value of the asset.
Councilor McPherson stated that Redmond has several historic structures and many are privately owned.
Councilor Onimus moved, seconded by Councilor Patrick, to approve the sale and relocation of any or all of the structures on city-owned property at 1429 West Antler Avenue, motion failed. (Allman-no, Centanni-no, Endicott-no, King-no, McPherson-no, Onimus-yes, Patrick-yes)
Staff was directed to work with Mr. Nelson to review possible alternatives.
ACTION ITEMS A. Designation of Signatories for Bank of the Cascades and US Bank (Exhibit 9) Page 4 – Redmond City Council Meeting – November 12, 2013
Accounting Manager Jodi Burch requested approval to add Mr. Witcosky, Ms. Harris, and Finance/Budget Manager Jason Neff to all City bank accounts and HR/Administrative Assistant DeAnne Wakefield to the Bank of the Cascades VISA Account only.
Councilor King moved, seconded by Councilor Allman, to approve the names of Keith Witcosky, Sharon Harris, and Jason Neff as the authorized signatories on the City of Redmond accounts with US Bank: General Checking Account #....4456, A/P Account #....4464, and Payroll Account #....4472; and Keith Witcosky, Sharon Harris, Jason Neff and DeAnne Wakefield on the Bank of the Cascades VISA Account resolution, motion passed. (Allman-yes, Centanni-yes, Endicott-yes, King-yes, McPherson-yes, Onimus-yes, Patrick-yes)
B. Res. #2013-20 – A resolution of the City of Redmond adopting a supplemental budget. (Exhibit 10)
Mr. Neff explained that Res. #2013-20 will adopt the first supplemental budget of Fiscal Year 2013/2014 and proposes to distribute portions of the estimated $660,000 from unanticipated property tax revenue. Mr. Neff reviewed distribution areas which include two additional officers and overtime pay for the Street Crimes Unit, an additional parks/facilities worker, additional capital outlay for the Sam Johnson Park bike/ped path relocation project and Homestead Trail, and prepayment of debt.
In response to concerns from Councilor Onimus over spending money the City has not yet received Mr. Neff stated he is extremely confident in the amount of property tax revenue the City will receive. In response to questions from Councilor Patrick, Mr. Neff stated that approximately two-thirds of the $660,000 will be placed in reserves.
Councilor Allman moved, seconded by Councilor McPherson, to adopt Res. #2013-20, motion passed. (Allman-yes, Centanni-yes, Endicott-yes, King-yes, McPherson-yes, Onimus-yes, Patrick- yes)
MAYOR’S COMMENTS Mayor Endicott commented on the Veterans Day Parade and the dedication of a veterans honor wall at the Hospice of Redmond. Mayor Endicott will be attending the National League of Cities conference in Seattle.
COUNCIL COMMENTS Councilor Allman commented on the joint workshop with the Redmond School District (RSD) held earlier tonight, noting that there are many great things taking place within the district. RSD is looking to fill a vacant position on their board.
Councilor King reported on the Chamber Board meeting and holiday activities including the tree lighting, Startlight Parade, downtown charm stroll, etc. The Chamber is following up on numerous leads received from the Teams Conference noting that several leads were from national hotel chains.
Councilor Centanni announced that the Third Friday Stroll will take place on November 15, 2013. Anyone interested in entering the Gingerbread House display contest should contact the Chamber. Citizens were encouraged to shop local and drive cautiously. The Special Events Task Force will meet on Monday, November 18; the public is invited to attend and encouraged to make comments.
Councilor Patrick announced the arrival of his newest grandchild. Councilor Patrick and his oldest grandson attended the Veterans Day Parade. The Ridgeview Ravens are working their way through the State Playoffs. Councilor Patrick commented on a tweet he received from Oregon Governor John Kitzhaber on the potential of Oregon’s school children and opined that if Redmond citizens help a child, one by one every student in the RSD can be affected.
Page 5 – Redmond City Council Meeting – November 12, 2013
Councilor McPherson stated the City is accepting applications for vacancies on its various commissions and committees.
Councilor Onimus announced that NeighborImpact will hold its 12th annual Empty Bowls fundraising event on November 17. With the reduction in food stamps, food banks cannot make up the difference for those in need. The community is encouraged to organize food drives at their business or place of work, donate from their own pantry, or purchase extra cans of non-perishable food at the grocery store.
Councilor Patrick announced that a Thanksgiving meal will be available at the Redmond Senior Center on Thanksgiving. Volunteer are needed as well and can contact Councilor Patrick directly.
CITY MANAGER COMMENTS City Manager Keith Witcosky thanked the Council for the great dialog on agenda items this evening adding that staff has been conscious of the Council’s direction to be fiscally conservative. The budget calendar will be released soon.
ADDITIONAL COMMENTS FROM CITIZENS AT THE MEETING
There were no additional comments from citizens at the meeting.
There being no further business, the meeting was adjourned at 9:18 p.m.
Prepared by Kelly Morse, City Recorder
APPROVED by the City Council and SIGNED by the Mayor this 10th day of December, 2013.
George Endicott, Mayor
ATTEST:
Kelly Morse, City Recorder
SPECIAL P.M. CITY COUNCIL WORKSHOP OF THE CITY OF REDMOND WAS HELD NOVEMBER 25, 2013, IN THE CITY COUNCIL CHAMBERS.
COUNCIL MEMBERS PRESENT: Tory Allman – Joe Centanni – George Endicott – Camden King – Ginny McPherson – Jay Patrick
COUNCIL MEMBERS EXCUSED: Ed Onimus
STAFF PRESENT: City Manager Keith Witcosky – Assistant City Manager Sharon Harris – City Attorney Steve Bryant – Police Chief Dave Tarbet – Public Works Director Bill Duerden – City Recorder Kelly Morse – Community Development Director Heather Richards – CIS Administrator Sheri Cleveland
MEDIA PRESENT: Leslie Pugmire-Hole, Redmond Spokesman
Mayor Endicott called the workshop to order at 5:35 p.m.
NOVEMBER 26, 2013, P.M. MEETING AGENDA REVIEW
The Council reviewed the November 26, 2013, p.m. meeting agenda and asked questions regarding the Special Events Task Force draft recommendations and the snow and ice plan.
OTHER BUSINESS
There being no further business, the workshop was adjourned at 5:52 p.m.
Prepared by Kelly Morse, City Recorder
APPROVED by the City Council and SIGNED by the Mayor this 10th day of December, 2013.
George Endicott, Mayor
ATTEST:
Kelly Morse, City Recorder
SPECIAL P.M. CITY COUNCIL WORKSHOP OF THE CITY OF REDMOND WAS HELD NOVEMBER 26, 2013, IN THE CITY COUNCIL CHAMBERS.
COUNCIL MEMBERS PRESENT: Tory Allman – Joe Centanni – George Endicott – Camden King – Ginny McPherson – Ed Onimus – Jay Patrick
STAFF PRESENT: City Manager Keith Witcosky – Assistant City Manager Sharon Harris – City Attorney Steve Bryant – Interim Airport Director Bob Noble – Police Chief Dave Tarbet – Public Works Director Bill Duerden – City Engineer Mike Caccavano – City Recorder Kelly Morse – Community Development Director Heather Richards – CIS Administrator Sheri Cleveland
MEDIA PRESENT: Leslie Pugmire-Hole, Redmond Spokesman – KTVZ
Mayor Endicott called the workshop to order at 5:30 p.m.
PRESENTATIONS / DISCUSSIONS A. Special Events Task Force Draft Recommendations (Exhibit 1)
City Manager Keith Witcosky explained the role and process of the Special Events Task Force (Task Force) as well as the methodology used to develop recommendations. Questions considered by the Task Force were:
1. How the community can leverage events and who benefits? 2. Which streets are appropriate for events/closures? 3. Under what circumstances should streets be closed? 4. Are there any administrative upgrades?
Mayor Endicott thanked staff for their professionalism during the participation process. Councilor Centanni explained that the meetings were open to the public with many individuals attending every meeting. Recommendations from the Task Force are:
1. Must obtain Council approval for events closing 5th or 6th Streets 2. Changes to application submittal deadlines a. 120 days in advance for the closure of 5th or 6th Street b. 90 days in advance for any other street closures c. 45 days in advance for any park use 3. Charge a $250 refundable deposit that could be retained if required actions such as clean up after the event are not completed by the event organizer. 4. Annual application process 5. Requirement of a site plan, public safety plan, traffic control plan, sanitary plan, trash plan, parking plan, and promotion/marketing plan.
The Task Force addressed questions from the Council and provided comments on participant threshold for medical services, communication, marketing of the event, the merchant’s role and responsibility in benefiting from the event, and number of consecutive closures of 5th or 6th Streets.
B. Site Improvement Agreements Update (Exhibit 2)
Community Development Director Heather Richards provided the Council with an update on the status of the City’s pending Site Improvement Agreements (SIA). In the past, the City allowed developers to “defer required site improvements when platting a subdivision to a future lot build-out date due to the expeditious timeframe associated with the housing boom.” SIAs contained performance metrics which were secured, at 120 percent of the calculated costs, by a performance bond, line of credit, or cash deposit. If the developer failed to carry out the provisions of the SIA, the City could rely on the bond or cash deposit to complete the improvements. The housing “bust” in Redmond resulted in several developers failing to complete the required improvements.
Page 2 –Redmond City Council Special P.M. Workshop – November 26, 2013
Ms. Richards stated that in 2011, the City received a formal complaint regarding the lack of neighborhood accessibility. At that time, the Council directed staff to evaluate the outstanding SIAs and work with developers to complete required improvements. In 2012, 65 SIAs were identified as out of compliance. In April 2013, staff mailed letters to 18 subdivision developers of which 15 responded and 3 completed the requirements. In June 2013, staff sent a second letter via certified mail with a September 1 deadline for completion. Developers provided the following reasons for non-compliance of the SIA:
• Lack of funds • Sold property and did not forward their responsibility in the real estate transaction • Waiting until housing improvements are built (do not know where curb cuts for driveways should go or could damage the sidewalk during construction)
Non-compliant SIAs pose the following risk to the City:
• Development Code requirements not being met • SIAs not enforced • Accessibility complaints received and acknowledged by the City • Quality of life in neighborhoods compromised
The City’s options include using the surety to construct the improvements, defer the improvements until the time of building permit issuance, or form a Local Improvement District or Reimbursement District to construct the improvements then lien the properties.
Land developer Glenn Kotara spoke in favor of placing responsibility for the improvements on the property owner or home builder and require them at the time of home construction.
Ms. Richards and Mr. Kotara answered questions from the Council.
Developer/Builder Bob Duncan suggested using prorated bond monies refunded to the developer from partially completed projects which could then be givent to the City to cover the costs of the remaining future improvements.
Developer Kameron Delashmutt concurred with Mr. Kotara noting he has a cash deposit with the City for a subdivision he sold in 2005 adding there is no benefit for him to install the sidewalks or recoup the costs. Mr. Delashmutt suggested that the party that benefits from the improvements should be responsible for completion.
Due to time constraints Ms. Richards stated that another workshop can be scheduled to further discuss this topic.
OTHER BUSINESS
There being no further business, the workshop was adjourned at 6:56 p.m.
Prepared by Kelly Morse, City Recorder
APPROVED by the City Council and SIGNED by the Mayor this 10th day of December, 2013.
George Endicott, Mayor
ATTEST:
Kelly Morse, City Recorder
REGULAR CITY COUNCIL MEETING OF THE CITY OF REDMOND WAS HELD NOVEMBER 26, 2013, IN THE CITY COUNCIL CHAMBERS.
COUNCIL MEMBERS PRESENT: Tory Allman – Joe Centanni – George Endicott – Camden King – Ginny McPherson – Ed Onimus – Jay Patrick
STAFF PRESENT: City Manager Keith Witcosky – Assistant City Manager Sharon Harris – City Attorney Steve Bryant – Interim Airport Director Bob Noble – Police Chief Dave Tarbet – Public Works Director Bill Duerden – City Engineer Mike Caccavano – City Recorder Kelly Morse – Community Development Director Heather Richards – CIS Administrator Sheri Cleveland – Loss Control Coordinator Mike Viegas
MEDIA PRESENT: COTV
Mayor Endicott called the meeting to order at 7:00 p.m.
INVOCATION
Pastor Jim Donohue, Amazing Grace Bible Fellowship, led the invocation.
PLEDGE OF ALLEGIANCE
Councilor Patrick led the Pledge of Allegiance.
COMMENTS FROM CITIZENS AT THE MEETING
There were no comments from citizens at the meeting.
CONSENT AGENDA A. Minutes of November 5, 2013, Special P.M. Council Workshop (Exhibit 3) B. Minutes of November 12, 2013, Special A.M. Council Meeting (Exhibit 4) C. Minutes of November 12, 2013, Joint Workshop with the Redmond School District Board of Directors (Exhibit 5) D. Change Order #1 with High Desert Aggregate & Paving for the Summer 2013 Asphalt Overlay Project (Exhibit 6) E. ODOT Fund Exchange Agreement No. 29765 (Exhibit 7) F. ODOT Speed Enforcement Grant (Exhibit 8)
Councilor King moved, seconded by Councilor Centanni, to approve the Consent Agenda as presented, motion passed. (Allman-yes, Centanni-yes, Endicott-yes, King-yes, McPherson-yes, Onimus-yes, Patrick-yes)
PRESENTATIONS A. Urban Area Planning Commission Annual Report
Long Range Planner James Lewis provided the Council with background information on the Urban Area Planning Commission (UAPC) noting that in addition to being a decision making body, the UAPC is also a hearings body on quasi-judicial applications.
As a Citizen Involvement Committee, the UAPC is responsible for:
• Carrying out a comprehensive planning program, using citizen input and public hearings when appropriate for the Redmond area. • Advising the governing bodies on Citizen Involvement Page 2 – Redmond City Council Meeting – November 26, 2013
• Studying and proposing measures that are advisable for promotion of the public interest, health, morals, safety, comfort, convenience and welfare of the City and Redmond area.
As the Advisory Body to the Council, the UAPC is responsible for:
• Regulating the future growth, development and beautification of the Redmond area. • Development within the Redmond area of proper sanitation, public utilities, and transportation facilities. • Appropriate public incentives for overall energy conservation
In 2013, due to the resignation of two long-standing commission members, the UAPC received five new commissioners. Each new commissioner received training on the UAPC’s enabling code, Comprehensive Plan, ethics, and commissioner effectiveness. Performance measures for the UAPC are:
1. Two significant development code amendments per year 2. Two significant long range planning projects per year 3. Review of development proposals 4. Respond to Council directives 5. Evaluate immediate planning needs as necessary
Mr. Lewis described the UAPC’s accomplishments for 2012/2013 which are as follows:
1. Development Code Amendments a. Revised land division code for subdivisions/partitions b. New Single Family Residential Design Standards c. New C-4A, Limited Service Commercial Zone 2. Development Code Fixes a. Land Use Permit Extensions b. Sign Code Amendments c. Code Enforcement 3. Comprehensive Plan Amendments a. Airport Master Plan Amendment b. Transportation System Plan c. Central Oregon Large Lot Industrial Analysis 4. Long Range Planning Projects a. East Redmond Industrial Site Rezone b. Bicycle Refinement Plan c. Southwest Area Plan (currently underway)
The UAPC Work Plan for 2013/2014 includes:
1. Development Code Amendments a. Comprehensive Plan – Zoning Map Amendment Designated Land Developed as Parks Airport to Industrial b. Commercial Design Review Standards Establish Design Requirements for all commercial development in all zones Architectural and Design Standards for: • Building design • Landscape design • Parking Lot design • Community amenities c. Home Occupations 2. Long Range Planning Projects Page 3 – Redmond City Council Meeting – November 26, 2013
a. Transportation System Plan b. Neighborhood Revitalization Plan 3. Planning Efforts Underway a. Projects requiring UAPC review South US Highway 97 Corridor Study City Center Housing Study Dry Canyon Master Plan Update City Center Circulation Study b. Projects on Work Plan of Other Commissions Require UAPC review as elements of Comprehensive Plan or other Land Use Plans 4. Backlog of Projects a. Professional Office Overlay District, M1 Zone b. Industrial Zone Development Standards Amendments c. Annexation Policy / Process d. Hybrid Form / Incentive Code Implementation e. Revise the Land Use Procedures Code
UAPC Chair Anne Graham thanked the Council for the opportunity to serve on the commission and staff for their administrative support of the commission. Ms. Graham opined the enabling actions surrounding Senate Bill 1544 was the most important item worked on by the UAPC this year. Single Family and Multi Family Design Standards will also serve as an important action by the commission. For 2014, Ms. Graham suggested the following:
• More input by the UAPC on items coming before them • A rewrite of the Charter with review and input from the UAPC • Comprehensive Plan training with an accelerated update • Grammatical work to Chapter 9 and 10 language • UAPC review of parking inventory within the City
Mayor Endicott stated that content and review of the Comprehensive Plan is dictated by others; however, there has been discussion by the Department of Land Conservation and Development on how to pay for periodic reviews. Ms. Graham and the UAPC were thanked for their numerous contributions and achievements.
ACTION ITEMS A. Res. #2013-21 – A resolution adopting the City of Redmond Snow and Ice Plans for Public Works and Roberts Field – Redmond Municipal Airport. (Exhibit 9)
Loss Control Coordinator Mike Viegas explained that Res. #2013-21 will adopt the City’s snow and ice removal plans and formally acknowledgement that removal is discretionary function. The plans represent the best practices and priorities as developed by Public Works and the Airport over the past several years. The plans also acknowledge the City’s limited resources such as funding, staff and equipment. Mr. Viegas noted that the Airport’s plan has already been approved by the Federal Aviation Administration. From a Risk Management standpoint, approval of both plans will provide the City with a certain level of discretionary immunity in terms of liability.
Councilor Allman moved, seconded by Councilor McPherson, to adopt Res. #2013-21, motion passed. (Allman-yes, Centanni-yes, Endicott-yes, King-yes, McPherson-yes, Onimus-yes, Patrick- yes)
MAYOR’S COMMENTS Mayor Endicott announced that BasX, a high-tech manufacturer, has purchased the old Wal-Mart facility and will hire 150 employees over the next two years. The Starlight Parade will take place Saturday, Page 4 – Redmond City Council Meeting – November 26, 2013
November 30 at 5:00 p.m. with the Christmas tree lighting occuring immediately following the Parade. The Mayor will be attending a meeting of the Governor’s Resilience Plan Task Force. Ridgeview High School football team is in the Oregon Class 4A Finals. The Mayor wished everyone a happy Thanksgiving.
COUNCIL COMMENTS Councilor Allman thanked all of the staff involved on the Special Events Task Force. Positions are still available on several City Commissions. Council Allman also wished everyone a happy Thanksgiving.
Councilor King wished everyone a happy Thanksgiving and added that he is thankful to be part of a community with great leadership and staff.
Councilor Centanni thanked staff for their support during the Special Events Task Force process. People were encouraged to experience many of the holiday events taking place around downtown Redmond and to shop local. Drivers are urged to use caution while school is closed.
Councilor Patrick spoke highly of the ice skating rink. The Ridgeview High School football team will play Cottage Grove for the Class 4 A championship. A Thanksgiving Day meal will be provided free of charge on Thursday at the Senior Center.
Councilor McPherson stated that from 5:00 p.m. to 7:00 p.m. during the Starlight Parade, local artist Jennifer Lake will be signing prints of her Wintertime Redmond painting. Proceeds go to the Redmond Commission for Art in Public Places.
Councilor Onimus explained that with the reduction in food stamps, the demand on area food banks is increasing. Businesses and work places are encouraged to implement a food drive to help those less fortunate. The Redmond School of Dance will hold their annual High Desert Nutcracker program. Councilor Onimus wished everyone a happy Thanksgiving.
CITY MANAGER COMMENTS City Manager Keith Witcosky appreciates the opportunity to join the community and thanked the Council, staff, commissioners and committee members for their efforts in making Redmond a great community. The repair work at Centennial Park will be completed this week.
ADDITIONAL COMMENTS FROM CITIZENS AT THE MEETING
There were no additional comments from citizens at the meeting.
There being no further business, the meeting was adjourned at 7:50 p.m.
Prepared by Kelly Morse, City Recorder
APPROVED by the City Council and SIGNED by the Mayor this 10th day of December, 2013.
George Endicott, Mayor
ATTEST:
Kelly Morse, City Recorder
716 SW Evergreen Ave Redmond, OR 97756 CITY OF REDMOND (541) 923-7710 Fax: (541) 548-0706 [email protected] www.ci.redmond.or.us
STAFF REPORT
DATE: December 10, 2013 TO: Mayor and Council Members THROUGH: Keith Witcosky, City Manager THROUGH: Bob Noble, Interim Airport Director THROUGH: Sharon Harris, Assistant City Manager FROM: Jodi Burch, Accounting Manager on behalf of Airport Administration SUBJECT: Accept Agreement with American Airlines (AP1302)
Addresses Council Goal: 6. B 4. Regional Cooperation: Continue to support and enhance Roberts Field
Report in Brief: Redmond Municipal Airport (RDM) is requesting City Council to accept the American Airlines agreement to offer daily air service between Los Angeles International Airport (LAX) and RDM.
Background: On August 28, 2012, City Council authorized the City Manager to accept a $500,000 grant from the United States Department of Transportation (US DOT) Small Community Air Service Development Program (SCASDP) to secure nonstop, daily service to southern California to adequately serve the business and leisure markets in Central Oregon, improve the quality of service to a top priority market, and continue economic development in Central Oregon.
In March 2013, Airport staff successfully secured an agreement with American Airlines to provide the desired service effective June 12, 2013 through June 12, 2015 and entered into an agreement with the air carrier. The agreement included the following incentives: 1) Up to $600,000 to be reimbursed to American Airlines to augment the times where the total revenue is less than the minimum revenue requirement. The $600,000 is funded through the following sources: a. $500,000 DOT Small Community Air Service Development Program grant b. $100,000 in matching funds collected from community partners and managed by the Chamber of Redmond 2) Landing fees waived for a period of two years, not to exceed $60,000 3) Marketing support totaling $230,000 from the following sources: a. $205,000 from Central Oregon Visitors Association b. $25,000 from Airport funds 4) Facilities build-out considerations not to exceed $50,000
Discussion: Although the DOT grant was accepted, and Council was provided with an update on April 9, 2013 on the recent acquisition of the direct flight to Los Angeles serviced by American Airlines where the process that took place, details of the grant and application, airlines incentive program and details of the direct flight was shared, no action was taken to formally approve the agreement with American Airlines. In order to complete the process, Council approval is requested.
Fiscal Impact: The $600,000 allotted for the minimum revenue guarantee is funded by the US DOT SCASDP and the Redmond Chamber. The Airport has also considered the impact related to the landing fee waivers, marketing support and facilities build-outs when developing the FY2013-14 budget.
Alternative Courses of Action: 1. Approve agreement with American Airlines in the amount of $600,000 2. Request additional information
Recommendation/Suggested Motion: “I move to accept the agreement with American Airlines to provide daily air service between Los Angeles International Airport and Redmond Municipal Airport.”
Jodi Burch Accounting Manager
716 SW Evergreen Ave Redmond, OR 97756 CITY OF REDMOND (541) 923-7710 Fax: (541) 548-0706 [email protected] www.ci.redmond.or.us
STAFF REPORT
DATE: December 10, 2013 TO: Mayor and Council Members THROUGH: Keith Witcosky, City Manager FROM: Jason Neff, Finance / Budget Manager SUBJECT: Re-Approval of Investment Policy – FIN 111
Addresses Council Goal: 1.C. Sustain Operations: Explore opportunities to augment revenue to support existing operations.
Report in Brief: The City’s Investment Policy must be re-adopted (approved) annually. No changes have been made to the policy since its last revision.
Background: The City has an Investment Policy which was reviewed by the Oregon Short Term Fund Board and allows for maturities longer than 18 months.
ORS 294.135 states “The custodial officer may make investments having a maturity longer than 18 months when the governing body of the county, municipality, school district or other political subdivision to which the funds belong has adopted a written investment policy that, prior to adoption, was submitted to the Oregon Short Term Fund Board for review and comment to the governing body, that includes guidelines concerning maximum investment maturity dates and that provides by its terms for re- adoption not less than annually.”
Fiscal Impact: Staff believes that a policy which allows for investments longer than 18 months will have a positive impact on the City’s fund balances, but cannot be specified due to fluctuation in interest rates, liquidity needs and other factors. Re-approval of the policy allows for the continuation of the City’s investment strategy.
Alternative Courses of Action: 1. Re-Approve the policy as presented 2. Request additional information of staff for continued discussion. 3. Do nothing at present time.
Recommendation/Suggested Motion: “I move to re-approve the City of Redmond investment policy FIN 111 – Investments.”
CITY OF REDMOND
INVESTMENTS NUMBER: FIN 111
EFFECTIVE DATE: DECEMBER 10, 2013 APPROVAL: CITY COUNCIL
PURPOSE
Incorporated on July 6, 1910, the City of Redmond, Oregon (the City) is located on the eastern side of Oregon's Cascade Mountain Range. It is considered the geographical heart of Central Oregon as it offers easy access to a multitude of recreational opportunities. The City operates under a Council/Manager form of government which consists of six City Council members, a Mayor, and the City Manager who serves the Council. The City’s Department Directors then report to and are supervised by the City Manager. The average investable balance of the City’s portfolio ranges from $15 million - $25 million.
The purpose of this Investment Policy (the Policy) is to establish the investment objectives, delegation of authority, standards of prudence, eligible investments and transactions, internal controls, reporting requirements, and safekeeping and custodial procedures necessary for the prudent management and investment of the funds of the City.
This Policy has been adopted by the City Council of Redmond, Oregon on December 10, 2013.
SCOPE
The provisions of this Policy shall apply to all investable funds of the City as accounted for in the Comprehensive Annual Financial Report and which includes the City’s short-term operating funds and capital funds including bond proceeds and bond reserve funds. Investments of employees’ retirement funds, deferred compensation plans, and other funds held by trustees are not covered by this Policy.
Except for restricted and excluded funds (which includes sufficient operating cash), all excess cash shall be pooled into one account for investment purposes. The net investment income derived from the pooled investment account shall be allocated to the contributing funds in accordance with generally accepted accounting principles.
OBJECTIVES
The City’s funds shall be invested in accordance with all cited City, State, and Federal regulations, and in a manner designed to accomplish the following objectives, which are listed in priority order:
• Preservation of capital and protection of investment principal. • Maintenance of sufficient liquidity to meet operating requirements that are reasonably anticipated.
FIN 111.1 • Diversification to avoid incurring unreasonable risks regarding specific security types or individual financial institutions. • Attainment of a market value rate of return throughout budgetary and economic cycles.
DELEGATION OF AUTHORITY
The ultimate responsibility and authority for the investment of City funds resides with the City Council. The City Council hereby designates the City Manager or his/her designee as the Custodial Officer vested with responsibility for managing the City’s investment program and for implementing this Policy. The Custodial Officer shall invest City funds in accordance with ORS Chapter 294, Public Financial Administration, and with Policy. This Policy shall constitute a “written order” from City Council per ORS 294.035. The Custodial Officer may further delegate the authority to conduct investment transactions and to manage the operation of the investment portfolio to other specifically authorized staff members. No person may engage in an investment transaction except as expressly provided under the terms of this Policy.
The Custodial Officer shall establish procedures and internal controls for the operation of the City’s investment program, designed to prevent loss of public funds due to fraud, error, misrepresentation, and imprudent actions.
The City may engage the non-discretionary support services of outside investment advisors with respect to its investment program, so long as it can be demonstrated that these services produce a net financial advantage or necessary financial protection of the City’s financial resources. External investment advisors shall be licensed with the State of Oregon Division of Finance and Corporate Securities (OFCS) and are subject to Oregon Revised Statutes and the provisions of this Policy.
STANDARDS OF PRUDENCE
The standard of prudence to be used for managing the City’s assets is the prudent person rule which states that “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.”
The overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that no investment is totally without risk and that the investment activities of the City are a matter of public record. Accordingly, the City recognizes that within a diversified portfolio, losses sometimes occur, and such losses shall be considered within the context of the overall portfolio's return, provided that adequate diversification has been implemented and that the sale of a security before maturity is in the best long-term interest of the City.
The City’s Custodial Officer and staff acting in accordance with this Policy, written procedures, and ORS 294 and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price change or other loss in accordance with ORS 294.047, provided that these losses are reported as soon as practical to the Custodial Officer and action is taken to control adverse developments. Losses that are sustained in the City’s portfolio shall be charged against current investment earnings.
FIN 111.2
ETHICS AND CONFLICTS OF INTEREST
City investment staff involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or create the appearance of an impairment of their ability to make impartial investment decisions. City investment staff involved in the investment process and investment officials shall disclose in writing to the Custodial Officer any financial interests they have in financial institutions that conduct business with the City and they shall subordinate their personal investment transactions to those of the City.
Employees shall comply with ORS 244.040 (Code of Ethics), ORS 244.120 (Methods of Handling Conflicts), GARS Article 3.15 (Standards of Conduct), any amendments to these provisions, and any Code of Ethics applicable to employees that the City may adopt in the future.
INTERNAL CONTROLS AND COMPLIANCE
The Custodial Officer shall establish and maintain a system of written internal controls consistent with this Policy designed to prevent the loss of public funds due to fraud, error, misrepresentation or imprudent actions by third parties or by employees of the City. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. Written internal controls shall be reviewed and tested at least annually by an independent auditor or upon any extraordinary event such as turnover of key personnel or the discovery of inappropriate activity.
The policies set forth in this document shall be adhered to and monitored on a monthly basis. Any instance which is deemed to be out of compliance with this Policy shall be brought back into compliance as soon as prudently feasible.
ACCOUNTING METHOD
The City shall comply with all required legal provisions and Generally Accepted Accounting Principles (GAAP) relating to investment accounting. The accounting principles are those contained in the pronouncements of authoritative bodies including but not necessarily limited to, the Governmental Accounting Standards Board (GASB); the American Institute of Certified Public Accountants (AICPA); and the Financial Accounting Standards Board (FASB).
SAFEKEEPING AND CUSTODY
Custodian banks shall be selected on the basis of their ability to provide services for the City’s account and the competitive pricing of their safekeeping related services. The City shall execute a written Safekeeping Agreement with each custodian bank prior to utilizing that bank’s safekeeping services.
The purchase and sale of securities and repurchase agreement transactions shall be settled on a delivery versus payment basis in accordance with ORS 294.145 (4) and (5). It is the intent of
FIN 111.3 the City that all purchased securities be perfected in the name of the City. Sufficient evidence to title shall be consistent with modern investment, banking and commercial practices.
All securities purchased by the City and all securities purchased under the terms of a City approved Master Repurchase Agreement shall be delivered by either book entry or physical delivery and shall be held in third-party safekeeping by a City approved custodian bank, its correspondent bank or the Depository Trust Company (DTC).
All fed-wireable book entry securities shall be held in the Federal Reserve System in a customer account or trust account at the custodian bank which names the City as the customer. All physical delivery securities shall be held by the custodian bank's correspondent bank. DTC eligible securities shall be held in the custodian bank’s participant account at the DTC.
COLLATERALIZATION
All bank deposits, time deposits, certificates of deposit, and savings accounts held in bank depositories which exceed the amounts insured by one or more agencies of the United States Government shall be collateralized in accordance with the provisions of Oregon Revised Statutes Chapter 295.
Per ORS Chapter 295, it is the responsibility to the State Treasurer to ensure that public funds are collateralized appropriately by the public depositories holding the deposits.
Collateral for repurchase agreements shall be limited in maturity and priced in compliance with ORS 294.035 (D)(j). See item 8 of the Authorized Securities and Transactions section of this Policy.
SELECTION OF BROKER/DEALERS
Broker/dealers and other financial institutions shall be selected by the Custodial Officer on the basis of their expertise in public cash management and their ability to provide service for the City’s account. It shall be the policy of the City to purchase securities only from approved institutions and firms. Additions or deletions to the list shall be made at the Custodial Officer’s discretion.
To be eligible, a firm must meet at least one of the following criteria: • Be recognized as a Primary Dealer by the Federal Reserve Bank of New York or have a Primary Dealer within its holding company structure; or • Report voluntarily to the Federal Reserve Bank of New York; or • Qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (Uniform Net Capital Rule.)
Approved broker/dealers and the firms they represent shall be licensed to do business in the State of Oregon and, as such, are subject to the provisions of the Oregon Revised Statutes. Approved broker/dealers shall submit proof of registration in the State of Oregon, both for the firm and for the designated representative. Further, the broker/dealer representative shall submit evidence of holding the Financial Industry Regulatory Authority (FINRA) Series 6 or 7 license and either the Series 63 or Series 66 license. License requirements are per the Oregon Division of Finance and Corporate Securities.
FIN 111.4
Approved broker/dealers and banks shall be required to submit and annually update a City approved Broker/Dealer Information Request form, including the firm’s most recent financial statements, and which the Custodial Officer shall maintain on file. In the event that an external investment advisor is not used in the process of recommending a particular transaction for the City’s portfolio, authorized broker/dealers shall attest in writing that they have received a copy of this Policy.
The City may purchase Commercial Paper from direct issuers even though they are not on the approved broker/dealer list as long as they meet the criteria outlined in item 4 of the Authorized Securities and Transactions section of this Policy.
AUTHORIZED SECURITIES AND TRANSACTIONS
All investments of the City shall be made in accordance with Oregon Revised Statutes: ORS 294.035 (Investment of surplus funds of political subdivisions; approved investments), ORS 294.040 (Restriction on investments under ORS 294.035), ORS 294.135 (Investment maturity dates), ORS 294.145 (Prohibited conduct for Custodial Officer), ORS 294.805 to 294.895 (Local Government Investment Pool), and ORS 294.052 (Investment by municipality of proceeds of bonds). Any revisions or extensions of these sections of the ORS Chapter shall be assumed to be part of this Policy immediately upon being enacted.
The City will diversify investments across maturities, security types and institutions to avoid incurring unreasonable risks. The City has further defined the eligible types of securities and transactions as follows:
1. U.S. Treasury Obligations: Treasury Bills, Treasury Notes, Treasury Bonds, and Treasury Strips with maturities not exceeding five years from the date of trade settlement.
2. Federal Instrumentality Securities: Debentures, discount notes, step-up securities, callable securities, and stripped principal or coupons with final maturities not exceeding five years from the date of trade settlement issued by the following only: Federal National Mortgage Association (FNMA), Federal Farm Credit Banks (FFCB), Federal Home Loan Banks (FHLB), Federal Home Loan Mortgage Corporation (FHLMC), Resolution Funding Corporation (REFCORP), Financing Corporation (FICO), and Tennessee Valley Authority (TVA). Subordinated debt may not be purchased. The maximum ownership of Federal Instrumentality Securities is 75% with no more than 25% of the portfolio held in any one issuer.
3. Corporate Bonds subject to a valid registration statement on file with the Securities and Exchange Commission issued by a commercial, industrial or utility business or issued by or on behalf of a financial institution with final maturities not exceeding three years from the date of trade settlement. Authorized corporate bonds shall be limited to obligations of United States dollar denominated corporations organized and operating within the United States. At the time of purchase, the debt must be rated at least AA or the equivalent by a NRSRO. Ownership of corporate bonds (including FDIC guaranteed corporate bonds) and commercial paper shall be limited to a combined total of 35% of the portfolio, with no more than 5% of the portfolio held in any one issuer or its affiliates or subsidiaries.
FIN 111.5 4. Corporate Bonds guaranteed by the Federal Deposit Insurance Corporation (FDIC) under the Temporary Liquidity Guarantee Program (TLGP) are herein authorized. For reporting purposes TLGP corporate bonds will be treated as US Agencies. For the purposes of calculating maximum corporate exposure they will be combined with the corporates listed in items #3 and #5 and will be subject to the aforementioned diversification and maturity requirements.
5. Commercial Paper issued by a commercial, industrial or utility business or issued by or on behalf of a financial institution with maturities not exceeding 270 days from the date of trade settlement. Commercial paper must be rated at least A-1 or the equivalent, at the time of purchase by each NRSRO which rates the commercial paper. If the commercial paper issuer has senior debt outstanding, the senior debt must be rated at least A or the equivalent by a NRSRO. Ownership of commercial paper and corporate bonds shall be limited to a combined total of 35% of the portfolio, with no more than 5% of the portfolio held in any one issuer or its affiliates or subsidiaries.
6. Bankers Acceptances which are (a) guaranteed by and carried on the books of a financial institution located and licensed to do banking business in the State of Oregon; or a financial institution located in the States of California, Idaho or Washington that is wholly owned by a bank holding company that owns a financial institution that is located and licensed to do banking business in the State of Oregon; (b) Bankers acceptances shall be eligible for discount by the Federal Reserve System; and (c) the institution issuing a letter of credit shall have a short-term rating of A-1 or the equivalent by one or by a NRSROs at the time of purchase. Maturities shall be limited to 180 days from the date of trade settlement and ownership of bankers acceptances shall not exceed 25% of the portfolio, with no more than 10% of the portfolio held in any one issuer.
7. State of Oregon Local Government Investment Pool organized pursuant to ORS 294.805 through 294.895. Participation in the Pool shall not exceed the maximum limit annually set by ORS 294.810. This amount is indexed semi-annually to inflation (the Portland All-urban consumer CPI) pursuant to statute. The limit may temporarily be exceeded by local governments for 10 business days due to pass-through funds.
8. Time Deposit Open Accounts, Certificates of Deposit, and Savings Accounts as defined in ORS 706.008 and in insured institutions that maintain an office in Oregon. Certificates of Deposit that are purchased by the City shall be FDIC insured or collateralized in accordance with ORS 295.015 and ORS 295.018. Ownership of time certificates of deposit shall be limited to 35% of the portfolio, with no more than 10% with any one financial institution at the time of purchase, and maturities shall not exceed one year.
9. Repurchase Agreements with maturities of 90 days or less collateralized by U.S. Treasury securities with the maturity of the collateral not exceeding three years. For the purpose of this section, the term collateral shall mean purchased securities under the terms of the City approved Master Repurchase Agreement. The purchased securities shall have an original minimum market value including accrued interest of 102% of the dollar value of the transaction, as prescribed by written policy of the Oregon Short Term Fund Board. Collateral shall be held delivery versus payment in the City's custodian bank as safekeeping agent, and the market value of the collateral securities shall be marked-to-the-market daily. Broker/dealers and Financial Institutions must have an executed Master Repurchase Agreement with the City. Ownership of repurchase agreements shall be limited to 50% of the portfolio and 10% per issuer.
FIN 111.6
Repurchase Agreements shall be entered into only with City approved Primary Dealers reporting to the Market Reports Division of the Federal Reserve Bank of New York or firms that have a Primary Dealer within their holding company structure.
10. Obligations of the States of Oregon, California, Idaho, and Washington: Lawfully issued debt obligations of these states and their political subdivisions that have a long-term rating of AA or an equivalent rating or better by at NRSRO or are rated in the highest category for short- term municipal debt by a NRSRO. Such obligations are authorized only if there has been no default in payment of either the principal or the interest of obligations of the issuing entity within five years preceding investment, ORS 294.040. Ownership of such obligations shall be limited to 25% of the portfolio, with no more than 10% of the portfolio held in any one issuer. Maturities for these obligations shall not exceed three years.
Any amendments to ORS 294.046 or the State Treasurer’s statement of permitted investments for governmental entities shall be assumed to be a part of this Policy immediately upon being enacted. It is the intent of the City that the foregoing list of authorized securities is strictly interpreted. Any deviation from this list must be preapproved in writing by City Council.
CREDIT QUALITY REQUIREMENTS
The minimum credit quality requirements of the portfolio shall be AA or the equivalent. Commercial Paper shall be rated no less than A-1 or the equivalent by a NRSRO. The target weighted average credit quality of the portfolio shall not be greater than a value of three (3) using the table below.
Value Moody's Rating S&P Ratings Fitch Ratings Short- Short- Short- Long-Term Long-Term Long-Term Term Term Term 1 U.S. Treasury U.S. Treasury U.S. Treasury Federal Federal Federal 1 Instrumentality Instrumentality Instrumentality 1 Aaa P-1 AAA A-1 AAA F1
2 Aa1 AA+ AA+
3 Aa2 AA AA
4 Aa3 AA- AA-
Securities that have been downgraded to below the minimum ratings will be sold or held at the Custodial Officer’s discretion. The Custodial Officer is responsible for bringing the portfolio back into compliance as soon as practicable.
PORTFOLIO DIVERSIFICATION STANDARDS
FIN 111.7 The City will diversify the investment portfolio to avoid incurring unreasonable risks, both credit and interest rate risk, inherent in over-investing in specific instruments, individual financial institutions or maturities. Nevertheless, the asset allocation in the investment portfolio should be flexible depending upon the outlook for the economy, the securities markets and the City’s anticipated cash flow needs. All diversification requirements shall be calculated based on the cost value of the holdings at the time of purchase. Specific diversification requirements shall be applied to the aggregate holdings of an institution as of the date of trade settlement.
Instruments: Maximum % Maximum % of Portfolio Per Issuer
U.S. Treasury Obligations 100% N/A
Federal Instrumentality Securities 75% 25%
Corporate Indebtedness/Commercial Paper 35% 5%
Banker’s Acceptances 25% 10%
Local Government Investment Pool Up to N/A statutory limit Time Certificates of Deposit 35% 10%
Repurchase Agreements 50% 10%
Obligations of the States of Oregon, 25% 10% California, Idaho, and Washington
MATURITY LIMITS AND LIQUIDITY REQUIREMENTS
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. Unless matched to a specific cash flow requirement, the City shall not invest in securities maturing more than five years from the date of settlement. The weighted average final maturity of the City's portfolio shall at no time exceed 18 months.
At all times, the City shall maintain the following investment amounts with regard to final maturities in the portfolio.
Length of Maturity Investment Amounts
Under 30 days 10% minimum
Under 1 year 25% minimum
Over three years 25% maximum
COMPETITIVE TRANSACTIONS
FIN 111.8 Each investment transaction shall be competitively transacted with broker/dealers who have been authorized by the City. At least three broker/dealers shall be contacted for each transaction and their bid and offering prices shall be recorded. A record shall be maintained by the City of all bids and offerings for security transactions in order to ensure that the City receives competitive pricing.
If the City is offered a security for which there is no other readily available competitive offering, then the Custodial Officer shall document quotations for comparable or alternative securities.
PROHIBITED CONDUCT
Oregon State Statutes have addressed several areas of prohibited conduct for the Custodial Officer when making investments, ORS 294.145. Specifically, the custodial officer shall not:
• Make a commitment to invest funds or sell securities more than 14 business days prior to the anticipated date of trade settlement of the purchase or sale transaction; or
• Enter into any agreement to invest funds or sell securities for future delivery for a fee other than interest; or
• Lend securities to any person or institution, except on a fully collateralized basis, and except when such lending is specifically permitted under an investment policy adopted pursuant to ORS 294.135 (1)(a); or
• Pay for any securities purchased by the custodial officer until the officer has received sufficient evidence of title thereof. Evidence of title shall be consistent with modern investment, banking and commercial practices and may include physical possession, book entry and automated recordation of such title. However, the Custodial Officer may instruct one or more custodian banks, as defined in ORS 295.001, to accept or release securities as the Custodial Officer considers advisable to be held in safekeeping for collection of principal and interest or other income; or
• Deliver securities to the purchaser upon sale prior to receiving payment in full. However, the Custodial Officer may deliver the securities to any custodian bank, defined in ORS 295.001 upon instructions to hold the same pending receipt by the institution of full payment thereof.
INVESTING BOND PROCEEDS
The City may invest bond proceeds in compliance with ORS 294.052 (investment by municipality of proceeds of bonds), notwithstanding ORS 294.135 or 294.145 or any other law or charter provision. The City recognizes that bond proceeds may be subject to the provisions of the Internal Revenue Code, Federal Arbitrage Regulations, as amended. Due to the legal complexities of arbitrage law and the necessary immunization of yield levels to correspond to anticipated cash flow schedules, the reinvestment of such debt issuance may, upon the advice of Bond Counsel or financial advisors, deviate from the maturity limitation provisions of this Policy with written approval of the Custodial Officer.
FIN 111.9
REPORTING REQUIREMENTS
On a quarterly basis, the Custodial Officer shall provide an investment report listing the cost, current fair value, credit ratings and duration of investments held by the City, average interest rate and the interest rate earned by the Local Government Investment Pool, all in accordance with GASB Statements 31 and 40. The report shall include a summary of investment earnings and performance results for the period and will be used to ensure adequate portfolio diversification, both by type and maturity dates, and certify that the portfolio is currently structured according to the terms of this Policy.
PERFORMANCE EVALUATION
The Custodial Officer shall establish a benchmark yield for the City’s investments. Considerations for establishing the benchmark yield shall include the current yield on the State of Oregon Local Government Investment Pool, and the average yield on the constant maturity 1-year U. S. Treasury note. When comparing the performance of the City’s portfolio, all fees and expenses involved with managing the portfolio shall be included in the computation of the portfolio’s rate of return. Portfolio performance shall be reviewed at least quarterly.
POLICY REVISIONS
This Investment Policy shall be reviewed by the Custodial Officer prior to being submitted to the City Council for adoption on an annual basis in accordance with ORS 294.135(a).
FIN 111.10
716 SW Evergreen Ave Redmond, OR 97756-0100 CITY OF REDMOND Engineering Department (541) 504-2002 Fax: (541) 923-4035 [email protected] www.ci.redmond.or.us
STAFF REPORT
DATE: December 10, 2013 TO: Mayor and Council Members THROUGH: Keith Witcosky, City Manager THROUGH: Bill Duerden, Public Works Director FROM: Mike Caccavano, City Engineer SUBJECT: Homestead Canal Trail Survey Contract Change Order (project # PK 14-01)
ADDRESSES COUNCIL GOAL: 4.F. Continue to plan, promote and develop bicycle and pedestrian facilities.
REPORT IN BRIEF: Request approval of a $2,500 change order to the survey contract for the Homestead Canal Trail survey.
BACKGROUND: The Engineering Division engaged the services of Povey and Associates Land Surveyors to provide a topographic survey of the Homestead Canal Path which is proposed along the canal running from NW Quince Avenue to SW Veterans. The original contract amount was $17,500. Easements are needed over four properties in the Maple to Quince section to construct the first phase of the path. These easements are in the same location as Central Oregon Irrigation District’s ditch rider road and will have minimal impact on the affected properties. Staff requested a quote from Povey and Associates for legal descriptions of the four easements. The easement description cost is $2,500 bringing the total contract amount to $20,000.
DISCUSSION: The proposed change order exceeds ten percent of the original contract amount and by City policy, City Council approval is required.
FISCAL IMPACT: Funds for the change order will come from the Parks Capital Improvement Project line item (22279-01-000-07-01-03).
OPTIONS:
1. Approve the change order 2. Do not approve the change order 3. Request additional information
STAFF RECOMMENDATION AND SUGGESTED MOTION:
Option #1. “I move to approve the $2,500 change order to the Homestead Canal Trail survey contract with Povey and Associates, Land Surveyors.”
Respectfully submitted,
Michael P. Caccavano, City Engineer
CITY HALL 716 SW EVERGREEN AVE REDMOND, OR 97756 541.923.7710 FAX: 541.548.0706 www.ci.redmond.or.us STAFF REPORT
DATE: December 10, 2013 TO: Mayor and Members of Council THROUGH: Keith Witcosky, City Manager FROM: Dave Tarbet, Chief of Police SUBJECT: Healthcare Preparedness Program Grant
Addresses Council Goal: 1) Sustain Operations C) Explore opportunities to augment revenues to support existing operations 2) Seek grant funding offered through various state and federal programs.
Report in Brief: The Redmond Police Department has been notified by the Oregon Health Authority that our department has been awarded $2,500 from the Public Health Division, Healthcare Preparedness Program. Redmond Police Department is a sub-grantee operating under our local Healthcare Preparedness Program. If accepted, these funds will be used to purchase an Automated External Defibrillator for law enforcement response vehicles and support Critical Incident Management Team training to our first responders.
Background: Region 7 Healthcare Preparedness Program recently submitted a grant application to the Oregon Health Authority to request funds to improve the level of preparedness for health and medical emergencies. Local and state public health authorities have always played an important role in all phases of the emergency management system. This new level of commitment to public health preparedness improves local capacity to respond to any health emergency.
The Health Security, Preparedness and Response program is funded by the U.S. Department of Health and Human Services.
Fiscal Impact: This grant was not budgeted in the current year budget, however there is no fiscal impact to the City. This grant has no match component. Expenditures are as follows:
AED purchase + additional pads $2,100 CIT training 400 Total Grant $2,500
Recommendation/Suggested Motion: “I move to authorized the City Manager to accept the Healthcare Preparedness Program grant award in the amount of $2,500.”
David E. Tarbet Chief of Police
CITY OF REDMOND 716 SW Evergreen Avenue Community Development Department Redmond, OR 97756 (541) 923-7721 Fax: (541) 548-0706 www.ci.redmond.or.us
STAFF REPORT
DATE: December 10, 2013 TO: Mayor and City Council Members THROUGH: Keith Witcosky, City Manager FROM: Heather Richards, Community Development Director SUBJECT: 27th Street Roundabout Public Art Project, Project #: GN1301
Addresses Council Goal: 4. COMMUNITY ENHANCEMENT – Create an image and identity that generates a sense of community pride, ensuring the high quality of life and safety of our citizens, attracting new residents and businesses and facilitating their success and safety as well.
E. Beautify the major transportation corridors with the City.
Report in Brief: Authorize the development and installation of the 27th Street roundabout public art project proposed by a consortium of Redmond School District students, not to exceed $25,000.
Background: The City of Redmond approached the Redmond School District in 2011 about an interest in partnering with Redmond School District students on a public art project at the SW 27th Street roundabout. Ridgeview High School, Redmond High School and Redmond Proficiency Academy were all invited to participate. The initial concept was for art students and metal fabrication students to fabricate the project.
In 2012, the Redmond Commission for Art in Public Places (RCAPP) secured an Arts Builds Communities grant to fund an “Artist in Residence” to help students put together the program. Ryan Beard, a local metal sculpturist who has participated in Redmond’s Art Around the Clock program was chosen for the effort. Prior to Ryan’s full-time art career he was a teacher and is familiar with the culture of the classroom.
In 2013, Ethan Seltzer, an art teacher from the Redmond Proficiency Academy volunteered to help lead the project with the Redmond School District. He invited students from Ridgeview High School and Redmond High School to participate in a consortium class to work with Ryan Beard and design a concept for the roundabout.
The student consortium presented the project to RCAPP on November 19, 2013, at which time RCAPP voted unanimously to recommend the project to the Redmond City Council for approval.
1 ------Attachment: Student Presentation to RCAPP
Discussion: The title of the project is “The Constant Face of Temporary Existence” and depicts the Cascade Mountain Range that is visible from Redmond, focusing on how the mountains are a constant landscape through which humans, animals and other living things have a temporary existence.
Line of sight and vision corridors were considered in the placement of the sculpture in the roundabout. After conducting some research, the students learned that although the clear vision triangle was critical for turning movements, a clear vision through the roundabout to the other side is actually discouraged. A mathematical formula, Fibonacci Theorem, determined the curvature of the sculpture and mountain range.
Imagery will be placed on the faces of the mountains depicting the three high schools’ mascots, “Sun”, “Panther” and “Raven”. The tallest point of the metal sculpture will be approximately eight feet depending upon the engineered base.
The student consortium worked with city staff from the Community Development Department and the Public Works Department on logistical concerns with respect to infrastructure, landscaping, installation, permitting, and procurement. Maintenance, durability, safety and liability were all part of the design consideration. The students were also asked to put together a budget for the project.
Next steps include procurement of sheet metal, engineering, fabrication and installation. A targeted installation date is April, 2014.
The students will present their project to the Redmond City Council the night of the meeting.
Fiscal Impact: $25,000 was set aside from the original SW 27th Roundabout capital improvement project to funds this project.
Authorized in the FY 13/14 budget, 22179-01-000-07-00-25.
Alternative Courses of Action:
1. Approve the project as presented and authorize an expenditure not to exceed $25,000.
2. Request more information.
3. Do not approve the project as presented.
Recommendation/Suggested Motion:
“I move to approve the 27th Street Roundabout project as presented and authorize the City Manager to expend an amount not to exceed $25,000.”
Heather Richards Community Development Director
2 ------Attachment: Student Presentation to RCAPP
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243 E. Antler Avenue Suite 100 Redmond, OR 97756-0100 CITY OF REDMOND Engineering Division (541) 504-2002 Fax: (541) 548-0253 [email protected] www.ci.redmond.or.us Staff Report Date: December 10, 2013 To: Mayor and City Council Members Through: Keith Witcosky, City Manager Through: Bill Duerden, Public Works Director Through: Michael Caccavano, City Engineer From: Steve Wilson, Project Manager Subject: Award Construction Contract for the SW Timber Avenue 18” Transmission Main Project WA 12-03
ADDRESSES COUNCIL GOAL: Goal # 2: Preserve and enhance the City’s infrastructure.
REPORT IN BRIEF: The Public Works Department requests approval to enter into a $1,142,600.50 contract with Taylor Northwest LLC for the SW Timber Avenue 18” Transmission Main Project WA 12-03.
MAP: See Attached Map.
BACKGROUND: This project includes the replacement of the existing 18” steel transmission main with a new 18” ductile iron transmission main in SW Timber Avenue. The existing 18” water transmission main carries water from reservoirs on Forked Horn Butte to the north half of Redmond. It was constructed prior to the area’s current development and travels cross-country through private property. It was installed in 1952 and is made of steel which typically has a 50 year life. The existing water main is also fairly shallow, vulnerable to damage and would be very difficult to access and repair if damaged leaving the City’s ability to deliver water impaired.
Approximately 5000 lineal feet of 18” and 8” ductile iron water main will be installed in SW Timber Avenue between SW 31st and SW 21st Streets connecting to 18” main installed in S. Canal Blvd with the Odem Medo Project in 2010.
In addition to transmission main improvements, street improvements will also be completed on Timber Avenue because much of the pavement section does not meet current standards. In some areas we will construct 24 to 30 feet of asphalt pavement and in other areas we will widen the existing pavement 8 to 12 feet to insure that we have at least a 30 feet wide paved surface. Sidewalk on the north side of SW Timber will be constructed where missing. The 18” transmission main will cross under the Central Oregon Irrigation District’s Lateral ‘A’ which will have to be constructed during the winter when there are no water runs.
SW Timber Avenue will be closed to through traffic, but open to local traffic during construction. The timing of the construction is expected to begin December 16, 2013, and be completed by July 3, 2014.
DISCUSSION: The City of Redmond publicly advertised and procured construction services per ORS Section 279C. Request for bids was advertised November 2013. Seven bids were received and publicly read on November 21, 2013. Bids were received from the following contractors:
1. Taylor Northwest $1,142,600.50 2. High Desert Aggregate $1,252,743.00 3. R & G Excavation $1,300,261.00 4. Shamrock $1,348,815.00 5. JAL $1,380,390.88 6. Pacific Excavating $1,400,000.00 7. Jack Robinson $1,458,940.10
Taylor Northwest LLC is the lowest responsible bidder and the Intent to Award Contract was issued on November 22, 2013. Taylor Northwest’s bid is reasonably within the Engineer’s estimate of probable costs of $1,118,640.
FISCAL IMPACT: Costs for improvements are included in the FY 2013-14 approved budget.
Fund Fund Number Amount Water Maintenance Fund 53161-01-000-07-01-02 $910,411.25 Asphalt Maintenance Fund 22161-01-000-06-02-05 $50,000 ADA Sidewalk Maint/Repair Fund 22161-01-000-06-02-75 $20,000 Transportation Capital Projects 22180-01-000-07-00-18 $163,189.25
Total: $ 1,142,600.50
COURSES OF ACTION:
1. Sign Contract with Taylor Northwest LLC, 2. Reject all bids, or 3. Request additional information.
RECOMMENDED COURSE OF ACTION AND SUGGESTED MOTION:
Option #1: “I move to authorize the City Manager to sign the contract with Taylor Northwest for the SW Timber Avenue 18” Transmission Main Project in the amount of $1,142,600.50.
SW Timber Ave. Water Transmission Main
SW Timber: 20th to 21st
SW Timber: 22nd to 23rd
SW Timber: 24th to 27th
SW Timber: 27th to 29th Contact Redmond Engineering (see contact information on other side) or visit our website www.ci.redmond.or.us and look under Departments-Engineering for a larger version of the plans.
SW Timber: 30th to 31st
CITY OF REDMOND 716 SW Evergreen Avenue Community Development Department Redmond, OR 97756 (541) 923-7721 Fax: (541) 548-0706 www.ci.redmond.or.us
STAFF REPORT
DATE: December 10, 2013 TO: Mayor and City Council Members THROUGH: Keith Witcosky, City Manager THROUGH: Heather Richards, Community Development Director FROM: James Lewis, Planning Manager SUBJECT: Public Hearing: Ordinance No. 2013-15, Comprehensive Plan Amendment to adopt the Central Oregon Large Lot Industrial Land Need Analysis as a reference document, with associated Comprehensive Plan Policies, for Chapter 9, Economic Development, and Chapter 14, Urbanization, (City Land Use File #TA-13-6).
Addresses Council Goals: Goal 3. Economic Development. Encourage economic development by continuing to utilize business location incentives, ensuring an adequate supply of planned industrial, commercial and residential land, and supporting workforce development programs.
B. Work to attract larger employers that provide family wage jobs into Redmond.
ii. Continue to support Large Lot Industrial Site efforts in Central Oregon
Goal 6. Regional Cooperation. Recognize that Central Oregon as a whole sis stronger than the sum of its individual parts and regional relationships are critical in Redmond’s planning and decision making process.
B. Maintain and strengthen Redmond’s relationship with Deschutes County and other regional communities.
Report in Brief: This is a Public Hearing to consider Ordinance No. 2013-15 (Attachment A) amending the City of Redmond Comprehensive Plan to adopt the Central Oregon Large Lot Industrial Land Need Analysis (Exhibit A to Ordinance No. 2013-15), as a reference document, with associated Comprehensive Plan Policies (Exhibit B to Ordinance No. 2013-15). Specifically, the Analysis will be incorporated in entirety as a reference document to Chapter 9, Economic Development and Chapter 14, Urbanization. The new policies supporting the findings of the Analysis will also be added to Chapters 9 and 14 for the purpose of specifying the need for large lot industrial lands in Redmond, and to establish the protocol for amending the Urban Growth Boundary to accept such lands (as authorized under Oregon Administrative Rule 660-024-0045 – Attachment B to this Staff Report). This public hearing follows a recommendation from the Redmond Urban Area Planning Commission to the City Council for further consideration of the proposal as presented herein. 1 ------Attachments : Attachment A – Ordinance No. 2013-15 Attachment B – Oregon Administrative Rule/Oregon Revised Statute – Large Lot Industrial
Background: In 2010, Deschutes County received a grant from the State Department of Land Conservation and Development to evaluate Central Oregon’s opportunities and competiveness to recruit and/or grow large lot industrial developments. This study, developed by a consultant working with a Regional Advisory Committee conducted a Regional Economic Opportunities Analysis (REOA). The REOA project aimed to determine if such an industrial land demand exists in Central Oregon and, if so, to identify the deficiency. The study attempted to document an unmet twenty year land need for large lot industrial sites in the region. It also concluded that competing as a cohesive region can allow Central Oregon to market a larger available work force, the size of which is often a key locational criterion for firms. According to the REOA, the shared economic function within Central Oregon supports a regional approach to economic development, particularly with respect to large traded sector industries.
Subsequent to the REOA (and as an outfall of an appeal during the adoption process of the REOA by Deschutes County), a settlement agreement between Deschutes County and the appellant (1,000 Friends of Oregon) resulted in new Oregon Administrative Rules being adopted which provide the policy framework for the tri-county region to coordinate as a single entity to promote large-lot industrial employment sites that best serve the region as a whole (to create family-wage jobs, regional economic diversification and place Central Oregon on the map for regional, national and international industrial recruitment). Utilizing the new Oregon Administrative Rules, Central Oregon can now respond to the short term need for up to nine competitive and diverse vacant, developable large lot industrial sites. These sites can enable site selectors representing potential industrial businesses to consider Central Oregon as a viable area for new economic development. As the process of establishing the large lot industrial sites unfolds, the Central Oregon Intergovernmental Council (COIC) has agreed to manage the distribution of sites among the various jurisdictions through intergovernmental agreements.
An additional outfall of the aforementioned settlement agreement is that the product of the analysis being conducted by Deschutes County under the grant would not be called an “Economic Opportunities Analysis” as that term is defined within Oregon land use laws. Rather, the settlement agreement called for specificity in the report so that it focused on policy concepts on Central Oregon’s short term need for large lot industrial sites and how those sites could later be incorporated into existing UGBs (through specific direction into the Oregon Administrative Rules – specifically, OAR 660-024-0045). The resulting document is the Central Oregon Large Lot Industrial Land Need Analysis that is being considered through this proposed amendment process.
Discussion: In order to facilitate the ability for large lot industrial land to be considered for inclusion within the Redmond Urban Growth Boundary (UGB), the City must adopt the Analysis as attached hereto, as well as policies giving further direction about implementation of the Analysis.
Early in 2013, Deschutes County (as the initiator of the original REOA grant project) adopted the Analysis and corresponding policies into their Comprehensive Plan to implement the new Administrative Rules and the terms of the settlement agreement locally. The City of Redmond is proposing these amendments to the Comprehensive Plan for the same reasons – adoption of the Analysis will allow Redmond to proceed with subsequent Intergovernmental Agreements between the Central Oregon jurisdictions and allow large lot industrial lands to be considered and established under the auspices of the COIC administrative process.
The following amendments to the Comprehensive Plan are proposed:
Chapter 9, Economic Development – The following text is proposed to be added to Chapter 9 as numbered herein:
2 ------Attachments : Attachment A – Ordinance No. 2013-15 Attachment B – Oregon Administrative Rule/Oregon Revised Statute – Large Lot Industrial
GOALS 12. To build a strong and thriving regional economy by coordinating public investments, policies and regulations to support regional and state economic development objectives in Central Oregon as determined through the Central Oregon Large Lot Industrial Land Need Analysis.
POLICIES (this section to be added to the end of the Policies portion of Chapter 9)
Central Oregon Large Lot Industrial Land Need Analysis
Background: 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 led to an over-reliance upon these types of industries. During the recent recession, the regional economy’s vulnerabilities became apparent. Suitable land for today's industrial development forms emerged as one of Oregon's most severe development challenges. In 2010, 2011, and 2012, 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. The purpose of this evaluation was to aid in providing a more diversified economic base for the region that would accommodate industrial uses with a need for larger lots than possibly may be currently available in any of the Central Oregon cities. As part of that evaluation, Deschutes County hired a consultant to draft an analysis of Central Oregon’s opportunities, competitiveness, ability, and willingness to attract more basic industries. The analysis focused specifically on industries that require large lots. The result was a document called the Central Oregon Regional Economic Opportunity Analysis, and was the basis for adopting Deschutes County Ordinance 2011-017, dated May 31, 2011. Ordinance 2011-017 was appealed to the Land Use Board of Appeals by 1,000 Friends of Oregon (“1,000 Friends”). The appeal was stayed in early 2012 to allow Deschutes County, the Governor’s Office, and 1,000 Friends to explore a settlement, which was ultimately reached in April, 2012. The settlement consisted of policy concepts focusing entirely on Central Oregon’s short-term need for large- lot industrial sites as well as a commitment from the Department of Land Conservation and Development (“DLCD”) to initiate rule-making that summer. The three counties, their respective cities, 1,000 Friends, and DLCD staff then engaged in drafting a proposed rule. In August, the final draft of that rule was then sent to the Oregon Land Conservation and Development Commission (“LCDC”). As a result, in November, the LCDC adopted Oregon Administrative Rule (OAR) 660-024-0040 and 660- 024-0045. That rule provides that that the large lot industrial land need analysis agreed upon by all of the parties, once adopted by each of the participating governmental entities, would be sufficient to demonstrate a need for up to nine large industrial sites in Central Oregon. Six of the sites will be made available initially. Three more sites may be added under the rule as the original sites are occupied. After the adoption of the new OARs, Deschutes County (as the initiating entity for the REOA and the subsequent settlement agreement and Central Oregon Large Lot Industrial Land Need Analysis), voluntarily repealed Ordinance 2011-017 and adopted a new ordinance, Ordinance 2013-002, in accordance with the OARs (which added the Central Oregon Large Lot Industrial Land Need Analysis and corresponding policies into their Comprehensive Plan). Following the lead of Deschutes County and under the direction of the settlement agreement and new Administrative Rules, the City of Redmond is adopting the Central Oregon Large Lot Industrial Land Need Analysis and corresponding policies in order to be considered for large lot industrial sites.
3 ------Attachments : Attachment A – Ordinance No. 2013-15 Attachment B – Oregon Administrative Rule/Oregon Revised Statute – Large Lot Industrial
An additional necessary component is an intergovernmental agreement (“IGA”) between the region’s jurisdictions and the Central Oregon Intergovernmental Council (“COIC”). Through the IGA, COIC will provide oversight of the short-term land supply of large-lot industrial sites to enable the region to become competitive in industrial recruitment. Once each of the three counties and their respective cities adopt similar ordinances and enter into an IGA with COIC, the large lot sites will enable industrial recruitment opportunities to attract potential industrial users to consider the region that may not have otherwise without the availability of these large lots. Participating local governments will review the program after all nine sites have been occupied or after ten years, whichever comes first.
Policies: 45. The City supports a multi-jurisdictional cooperative effort to pursue a regional approach to establish a short-term supply of sites particularly designed to address out-of-region industries that may locate in Central Oregon. 46. The City recognizes the importance of maintaining a large-lot industrial land supply that is readily developable in Central Oregon. 47. The Central Oregon Regional Large Lot Industrial Land Need Analysis (“Analysis”, dated November 20, 2012), adopted by Ordinance 2013-15 is incorporated by reference herein. 48. Within 6 months of the adoption of Ordinance 2013-15 in coordination with the participating local governments in Central Oregon, the City of Redmond will participate in an intergovernmental agreement (“IGA”) with the Central Oregon Intergovernmental Council (“COIC”) that specifies the process of allocation of large lot industrial sites among the participating local governments. 49. The City 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. 50. The City will continue to 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 hinder economic development opportunities in Central Oregon.
Chapter 14, Urbanization – The following text is proposed to be added to Chapter 14 as numbered herein:
POLICIES (this section to be added to the end of the Policies portion of Chapter 14)
Central Oregon Large Lot Industrial Land Need Analysis
Policies: 27. The Central Oregon Regional Large Lot Industrial Land Need Analysis (“Analysis”, dated November 20, 2012), adopted by Ordinance 2013-15 is incorporated by reference herein. 28. The City of Redmond will amend its Comprehensive Plan and land use regulations, including the Urban Growth Boundary (UGB), in order to designate a site in accordance with the requirements of OAR 660-024-0045 and the intergovernmental agreement. 29. Upon designation and adoption of a site, the City will apply a regional large lot industrial zone or overlay zone to the site in order to comply with OAR 660-024-0045 and to protect and maintain the site for regional large lot purposes. 30. Upon addition of such a site, the City will consider the site in any subsequent urban growth boundary evaluation conducted to determine local industrial land needs and the adequacy of land available to meet local industrial land needs. 31. The City will participate with the other local Central Oregon governments in reviewing the analysis after the regional supply of six sites has either been replenished by three additional sites or after ten years, whichever comes first. 4 ------Attachments : Attachment A – Ordinance No. 2013-15 Attachment B – Oregon Administrative Rule/Oregon Revised Statute – Large Lot Industrial
By adopting the above listed text into the Comprehensive Plan, the City will be participating in the spirit of cooperation with other Central Oregon jurisdictions as outlined in the Oregon Administrative Rules, and establishing Redmond as a viable community in which a large lot industrial site can be considered and eventually established.
Fiscal Impact: There is no fiscal impact for this update to the Comprehensive Plan. Eventual establishment of a large lot industrial site may include fiscal impacts for the provision of infrastructure, but that will be coordinated with the property owner at the time of such siting to minimize potential impacts to the City.
Alternative Courses of Action: 1. Conduct the public hearing and vote to approve Ordinance No. 2013-15. 2. Continue the public hearing, and/or leave the written record open to request additional information. 3. Conduct the public hearing and vote not to approve Ordinance No. 2013-15.
As required by City Charter, notices regarding this ordinance coming before the Council were posted in three public placed (the Library, the Police Department, and the Redmond Chamber of Commerce) in addition to City Hall on December 3, 2013 and three copies of the ordinance were available for review at City Hall.
Recommendation/Suggested Motion: “I move to have a first and second reading of Ord. #2013-15, by title only.” (Voice vote)
(City Attorney will read ordinance by title only, twice.)
“I move to approve Ord. #2013-15.” (Roll call vote)
James Lewis Planning Manager
5 ------Attachments : Attachment A – Ordinance No. 2013-15 Attachment B – Oregon Administrative Rule/Oregon Revised Statute – Large Lot Industrial
CITY OF REDMOND ORDINANCE NO. 2013-15
AN ORDINANCE AMENDING THE CITY OF REDMOND URBAN AREA COMPREHENSIVE PLAN, TO ADOPT THE CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS AS A REFERENCE DOCUMENT, WITH ASSOCIATED COMPREHENSIVE PLAN GOALS AND POLICIES ADDED TO CHAPTER 9, ECONOMIC DEVELOPMENT AND CHAPTER 14, URBANIZATION.
WHEREAS, the City of Redmond has adopted a Comprehensive Plan in accordance with Oregon Revised Statutes Chapter 227, and the Statewide Planning Goals that provides policy direction for the development of land within the City, and,
WHEREAS, the City of Redmond has adopted an Urban Area Comprehensive Plan to specify future development plans; and,
WHEREAS, the Redmond City Council has an adopted set of goals that include: 1.) “Encourage economic development by continuing to utilize business location incentives, ensuring an adequate supply of planned industrial, commercial and residential land, and supporting workforce development”; 2.) “Recognize that Central Oregon as a whole is stronger than the sum of its individual parts and regional relationships are critical in Redmond’s planning and decision making process”; and, 3.) “Enhance the quality of life in the City through the adoption of programs, policies and standards that balance growth while maintaining the city’s unique character” which is further implemented through the policy to “Maintain an up to date Comprehensive Plan that meets the City’s long term development goals”; and,
WHEREAS, the adoption of the Central Oregon Large Lot Industrial Land Need Analysis will help fulfill the City Council goals regarding industrial land supplies, regional cooperation and enhancing the quality of life; and,
WHEREAS, amendments to the Comprehensive Plan to adopt new goals and policies in support of the Central Oregon Large Lot Industrial Land Need Analysis will further emphasize the commitment by the City to maintain the economic viability of the City and to further participate in a progressive and cooperative regional economic land use planning process; and,
WHEREAS, the adoption of the Central Oregon Large Lot Industrial Land Need Analysis and corresponding Comprehensive Plan goals and policies will allow Redmond to legally move forward in the process to designate regional large lot sites in the Redmond Urban Growth Boundary; and,
WHEREAS, the Urban Area Planning Commission held a public hearing on November 5, 2013 and, after reviewing the record and providing an opportunity for public testimony, has recommended that the Redmond City Council adopt the amendments to the Comprehensive Plan, specifically the Central Oregon Large Lot Industrial Land Need Analysis and corresponding Comprehensive Plan goals and policies, to the text of Chapters 9, Economic Development, and 14, Urbanization, as set forth in Exhibits A and B; and
WHEREAS, the Redmond City Council held a public hearing on December 10, 2013 to consider the recommendation of the Urban Area Planning Commission, review the existing record and gather additional evidence and public testimony; and
WHEREAS, the City Council has received the Planning Commission’s recommendation and, after receiving additional evidence and testimony, determined that the requested Comprehensive Plan amendments would contribute to and further enhance the continued economic viability of Redmond; and
WHEREAS, the City Council concludes that the Findings as set forth in Exhibit C to support the adoption of the Comprehensive Plan amendments regarding the Central Oregon Large Lot Industrial Land Need Analysis and corresponding Comprehensive Plan goals and policies, of Chapters 9, Economic Development, and 14, Urbanization, have fully addressed the City’s Comprehensive Plan, the applicable State law, and the Statewide Planning Goals as the applicable criteria for an amendment to the Redmond Comprehensive Plan; and,
WHEREAS, the City Council finds that the attached Comprehensive Plan amendments are necessary to further these interests.
NOW, THEREFORE, THE CITY OF REDMOND ORDAINS AS FOLLOWS:
SECTION ONE: The City of Redmond hereby amends the Redmond Urban Area Comprehensive Plan, to adopt the Central Oregon Large Lot Industrial Land Need Analysis, and corresponding Comprehensive Plan goals and policies of Chapters 9, Economic Development, and 14, Urbanization, as attached hereto as “Exhibits A, and B.”
SECTION TWO: In support of the Comprehensive Plan amendments in Section One, the City of Redmond hereby adopts the Findings which are attached hereto as “Exhibit C”, which were prepared by City staff, reviewed by the Planning Commission and demonstrate compliance with the City’s Comprehensive Plan, and the applicable Statewide Planning Goals, Administrative Rules and Statutes.
SECTION THREE: SEVERABILITY. The provisions of this Ordinance are severable. The invalidity of any section, clause, sentence, or provision of this Ordinance shall not affect the validity of any other part of this Ordinance which can be given without such invalid part or parts.
Redmond Ord. #2013-15 – Page 2 of 102
PASSED by the City Council and APPROVED by the Mayor this 10th day of December, 2013.
George Endicott, Mayor
ATTEST:
Kelly Morse, City Recorder
Redmond Ord. #2013-15 – Page 3 of 102
Central Oregon Large Lot Industrial Land Need Analysis
November 20, 2012
DESCHUTES COUNTY CENTRAL OREGON REGIONAL LARGE LOT EMPLOYMENT NEED ANALYSIS Redmond Ord. #2013-15 – Page 4 of 102 TABLE OF CONTENTS
I. Background ...... 4 A. Oregon Department of Land Conservation and Development Grant ...... 4 B. Regional Economic Opportunity Analysis ...... 4 C. Ordinance 2011‐017 and 1,000 Friends of Oregon Appeal ...... 5 D. Oregon Land Conservation and Development Commission Rule Making ...... 5 II. Project Introduction ...... 6 A. Problem Statement ...... 7 B. Framework for Central Oregon Regional Large Lot Employment Need Analysis ...... 11 III. Community Vision ...... 11 A. Regional Goal and Introduction ...... 11 Regional Approach ...... 11 B. Community Vision Statement ...... 13 IV. Trend Analysis ...... 13 A. National Economic Trends ...... 13 Introduction ...... 13 Short‐Term Outlook ...... 14 Long‐Term Outlook ...... 17 B. State Economic Trends ...... 20 General Industry Trends ...... 20 Risk Factors ...... 25 C. Local Trends and Conditions ...... 26 Economic Factors ...... 26 V. Target Industry Analysis ...... 29 A. Large‐Lot Trends and Dynamics ...... 29 Large‐Lot Trends ...... 30 Importance of Large‐Lot Supply and Market Choice ...... 31 Competitive Inventories ...... 34 B. Strengths and Challenges in the Central Oregon Economy ...... 35 Madras (Jefferson County) ...... 36 La Pine (Deschutes County) ...... 36 Prineville (Crook County) ...... 37 Bend (Deschutes County) ...... 38 Redmond (Deschutes County) ...... 39 Sisters (Deschutes County) ...... 39 C. Target Industry Opportunities in Central Oregon ...... 40
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 5 of 102 D. Site/Resource Characteristics of Key Development Classes ...... 41 Targeted Industries with Large‐Lot Needs ...... 42 Central Oregon Viability for the Data Center Industry ...... 43 Central Oregon Viability for the High Technology Industry ...... 45 Central Oregon Viability for the Warehouse and Distribution Industry ...... 46 E. Regional Large‐Lot Demand ...... 47 Long Range Employment Forecast ...... 47 Industry Placement Velocity ...... 49 VI. Assessment of Potential ...... 52 A. Site Need Characteristics ...... 52 B. Gross Land Demand (Short‐Term Only) ...... 56
APPENDIX: Examples of Local Governments Proactively Planning for Industrial Development ...... 63
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 6 of 102 I. Background
A. Department of Land Conservation and Development Grant
Deschutes County received two Technical Assistance Grants from the Department of Land Conservation and Development (DLCD) in 2010 to evaluate Central Oregon’s opportunities, competitiveness, and ability to recruit new and locally grown firms requiring new large scale development models. Johnson‐Reid LLC, was selected from a pool of consultants to develop a Regional Economic Opportunity Analysis (REOA). Over the course of eleven months, the REOA then went through several iterations with the assistance of a Regional Advisory Committee (RAC). The RAC consisted of Central Oregon cities, counties, Johnson‐Reid LLC, Business Oregon, DLCD, Department of State Lands, Central Oregon Intergovernmental Council (COIC), 1,000 Friends of Oregon (1,000 Friends), Economic Development for Central Oregon (EDCO), Central Oregon Association of Realtors and private area developers. The RAC met officially six times and reviewed several iterations of the REOA before it was finalized on May 31, 2011.
B. Regional Economic Opportunity Analysis
In 2008, Bev Thacker, Industrial Lands Specialist with the Oregon Economic and Community Development Department (now Business Oregon) stated in a letter,
“Large, ready to go industrial sites have been the state’s most significant development challenge and one of the most noticeable changes in real estate trends in [the] last few years.”
She specifically identified a statewide need of industrial lands of 100‐200 acres in size. EDCO identified similar challenges for the tri‐county (Deschutes, Jefferson and Crook) region. Executive Director Roger Lee and others have repeatedly stated that site selectors often will not even visit the region if only one or two sites are available. The arrival of Facebook and Apple, while unique in many regards, has put Central Oregon on the international map for data centers among other potential large lot employers. However, the region lacks a supply of sites and cities’ traditional Economic Opportunity Analyses do not account for such a land demand.
The REOA project aimed to determine if such a land demand existed in Central Oregon and, if so, to identify the deficiency. The study concluded that there was an unmet twenty‐year land need for large lot industrial sites in the region. It also concluded that 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. While geographically separate, the study concluded that the jurisdictions in the region can function in a manner similar to other metropolitan areas like Reno and Salt Lake City. According to the REOA, the shared economic function within Central Oregon supports a regional approach to economic development, particularly with respect to large traded sector industries.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 7 of 102 C. Ordinance 2011‐017 and 1,000 Friends of Oregon Appeal
Deschutes County exercised its statutory coordinating authority (ORS 195.025) to address an unmet regional need for large‐lot industrial sites and adopted Ordinance 2011‐017. Ordinance 2011‐017 was intended to implement the REOA but was appealed to the Land Use Board of Appeals by 1,000 Friends. The appeal however, was stayed in early 2012 to allow Deschutes County, the Governor’s Office, and 1,000 Friends to explore a settlement. Spanning three months, a settlement was ultimately reached in April. During that process, Deschutes County also collaborated with the RAC. The settlement consisted of an agreement that the technical document produced would not be called an Economic Opportunity Analysis (EOA) as that term is understood in Oregon land use law. 1000 Friends agreed that the region has a need for up to nine large industrial lots in Central Oregon and the parties agreed upon policy principles guiding how those sites could be incorporated into existing UGBs. The settlement consisted of policy concepts focusing entirely on Central Oregon’s short‐term need for large‐lot industrial sites as well as a commitment from DLCD to initiate rule‐making later in the summer.
D. Oregon Land Conservation and Development Commission Rule Making
Deschutes County received a commitment from DLCD that they would initiate the Oregon Land Conservation and Development Commission (LCDC) rule making process. Upon recommendations from an advisory group that consisted of the parties to the LUBA appeal, rule‐making consisted of narrowly crafted amendments to Oregon Administrative Rules (OAR) Chapter 660 Division 24 that reinforces the short‐term need for large‐lot industrial sites and allows Central Oregon cities to utilize a regional large‐industrial analysis as the justification. Documentation of the regional large lot employment need, cited in this report, is based exclusively on excerpts from the REOA.1 Given the challenges that this project received last year at Deschutes County’s initial adoption stage, rule‐making now provides a clearer legal framework for local governments in Central Oregon to address a known deficiency of large‐lot industrial sites. It specifically acknowledges in OAR 660‐024‐0040 and 660‐024‐0045, Central Oregon’s short‐term need for large lot employment land. After receiving support from a rule‐ making committee in August, a final draft was forwarded to LCDC for their consideration in November. LCDC adopted the rules at their November meeting and they became effective on December 10, 2012.
Utilizing the new OARs, Ordinance 2013‐002 now emphasizes Central Oregon’ short term need for a critical mass of competitive and diverse vacant, developable industrial sites. These sites can enable site selectors, representing potential industrial recruitment opportunities, to consider the region. COIC has agreed to pro‐actively manage, through intergovernmental agreements, the short‐term land supply of large‐lot industrial sites to enable the region to become competitive in industrial recruitment. Participating local governments will review the
1 OAR 660‐024‐0045(2)(a): “Analysis” means the document that determines the regional large lot employment land need within Crook, Deschutes, and Jefferson County that is not met by the participating local governments’ comprehensive plans at the time the analysis is adopted. The analysis shall also identify necessary site characteristics of needed land.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 8 of 102 program after the short‐term supply of sites have been replenished or after ten years, whichever comes first.
II. Project Introduction
Deschutes County, in coordination with its regional partners, prepared this regional evaluation of the economic opportunities and constraints associated with users of large industrial parcels in the Central Oregon region. This approach recognizes the market reality that Central Oregon currently serves as an integrated economic unit.
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 will include individual site infrastructure improvement assessment and implementation programs/requirements. Regional planning, management, and governance of a perpetual large‐lot industrial vacant land supply will involve Central Oregon city and county governments (and staff) including advice and guidance from Central Oregon Cities Organization (COCO), EDCO and Business Oregon 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 project proposes to create and manage a regional supply of vacant, developable large‐lot industrial sites to accommodate 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 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 the region.
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. 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 Business Oregon. Consequently, a multi‐jurisdictional cooperative effort has been initiated to 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 local, conventional industrial land needs assessments in Oregon communities.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 9 of 102 A. Problem Statement
During the 1990s the Central Oregon region undertook a dramatic transformation from a goods producing 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 recession, the regional economy’s vulnerabilities became apparent.
Central Oregon's traditional industrial base remains active in the local economy, and the region would like to increase its emphasis on industrial employment to strengthen that base. The region's supply of affordable land, low cost utilities, quality of life, and organized economic development landscape makes it an attractive option for growth in many traded sector industries. Central Oregon economic development efforts have been negatively impacted by a lack of readily available large‐lot industrial sites. 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.
In a structural sense, globalization has changed the way manufacturers conduct business. Cost and efficiency are the central tenets of an increasingly competitive market. Firms are increasingly pressured to develop more capital intense production models, place 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, this analysis is intended to evaluate Central Oregon's opportunities, competitiveness, ability, and willingness to accommodate recruited and existing firms requiring new large scale development models.
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 be responsive to align its regulatory and process requirements to meet market demands if it wishes to capture the considerable benefits of high value industrial development.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 10 of 102 Site selectors shopping the international marketplace of large‐lot industrial sites determine the type of land supply product they will 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.
Within this analysis a large lot industrial site is defined to be 50 acres or larger with specific site attributes and amenities that appeal to that industry and support its activities. This delineation is consistent with the State of Oregon’s Certified Industrial Site program, which is Business Oregon’s primary tool to certify and market industrial sites as ‘project ready’ within 180 days or less. The certified sites programs has had a distinct emphasis on large lots with an average size of 64 acres and more than half of the lots being in assemblages of over 50 acres. There have been 65 sites certified in Oregon since 2004 and there has been development on more than 50% of those properties. The importance of this inventory is attested by the number of employers that have located on certified sites, several of which are summarized in Figure 1. This activity took place despite the fact that the economy was experiencing one of the most severe recessions in history.
FIGURE 1: EMPLOYMENT ACTIVITY ON CERTIFIED SITES (2009‐2010)
Source: Oregon Business Development
So why is lot size often a critical component of a company’s site selection decision? Below are some technical and market requirements provided by Oregon Business Development that contribute to lot‐size demanded by industrial users:
1) On average, industrial sites are only 40% to 60% developable. While the footprint for a large facility might only be five or ten acres, requirements for setbacks, access, parking, and environmental mitigation and avoidance (i.e. wetlands) usually require more room than the facility itself.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 11 of 102 2) Industries want buffering around their site for a number of very good reasons (security, storage, and noise). This has been the case for a number of the largest technology and green‐industry related recruitments. 3) Many industries, particularly true in the fast growing clean‐energy arena, require land for expansion for their long‐term business plan. While expansion space is not always taken advantage of, it is an essential part of the site selection strategy due to the cost of future expansion and the flexibility offered. 4) Large parcels are also a good way to build a cluster of industries around a high profile anchor business, which proves the value of the location to other businesses that are less willing to trail‐blaze or be first into a region. The anchor businesses often pull suppliers to the region, further enhancing their economic benefit. 5) Efficiencies can be obtained by clustering industrial users into large master‐planned business parks. Land use efficiencies can be achieved when businesses are allowed to develop their facilities as needed, while also having the assurance that there will be nearby parcels available for future expansion. Energy, water, waste, and material flows can be streamlined in a park setting where multiple businesses can take advantage of common infrastructure investments and, in some cases, take advantage of each other’s energy and waste streams.
The emphasis of this analysis is on “sites” as opposed to land. Firms require sites that can accommodate their current and anticipated future needs. The traditional formula approach to industrial land needs determination is based upon population and employment projections applied to a square footage per employee ratio to arrive at a total acreage number. The necessary range of parcel sizes, lot configuration, required site attributes, land banking/growth options, and critical infrastructure factors are essentially de‐prioritized, subordinated or ignored in this traditional static acreage calculation approach. This approach can work for residential and commercial projections, but is poorly suited to the calculation of industrial site needs.2
For 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 adequately skilled workforce, workforce training programs, worker housing, supportive local government, utility services and transportation, and quality of life. Facebook’s recent move to Prineville was based upon an affordable and adequate water supply, affordable energy prices, year round cool nights to reduce cooling costs, and various local incentives. The Facebook site offered on‐site expansion opportunity that is already being exercised.
2 Unlike office demand, the need for most types of industrial space is difficult to determine using employment projections. Most industrial uses generate comparatively few jobs per square foot of leasable area, and space needs have little to do with changes in the number of jobs in production or distribution business…Warehouse and distribution demand (for example) is usually generated by changes in corporate logistics and freight volumes, not job growth.” Real Estate Market Analysis: Methods and Case Studies, Second Edition, ULI Press, 2009.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 12 of 102 Much of the recent demand for large lot industrial comes from rapidly growing industries that are building production and research capabilities to establish global scale. Additional demand comes from industry looking for regional production or as a result of specific logistical concerns (i.e. location near markets or suppliers, access to specific transportation modes). Warehousing and distribution is an important component of the economy that keeps international ports expanding and strengthens Oregon’s export markets for consumer, industrial and agricultural products.
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 a success in coordination 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 needs to support the Region’s economic development objectives.
Figure 2 is a list of some of the annual economic impacts of industrial lands that is based on operating payrolls and a multiplier that takes into effect spending by the company and its employees in the region. These impacts are substantial and dwarf the job and income productivity of alternative productive land uses (i.e. agriculture, forestry). This is particularly true in Central Oregon, which has relatively low agricultural yields per acre.
FIGURE 2:p ECONOMICp y IMPACT OF EMPLOYMENT LAND Economic Impact Per Basis of Industry/Sector Acres Acre Impact Notes on Methodology Source
Lowe's Distribution 205 $207,500 Payroll + Potential Impact of Large Business Oregon Multiplier distribution Center in Lebanon Solar Cluster 179 $1,400,000 Payroll + Potential impact of three Business Oregon Multiplier firms in Portland, Hillsboro, and Salem Genentech 75 $400,800 Payroll + Potential Impact Study Business Oregon Multiplier Contracted for Incentives Title 4 Lands Hillsboro 3,388 $616,000 Payroll No Industrial Lands in Business Oregon Multiplier Hillsboro based on Employment Data
Source: Oregon Business Development
Central Oregon’s efforts to identify and promote a number of large lot areas for industry is, in a national context, relatively modest and completely appropriate for its current size, level of support services, and current and planned infrastructure. Maintaining a portfolio of competitive sites ranging from 50 to over 200 acres should result in substantial economic benefits and land use efficiencies.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 13 of 102 B. Framework for Central Oregon Regional Large Lot Employment Need Analysis
This report is designed to meet the requirements of Oregon Statewide Planning Goals 9 and 14 and the administrative rule that implements this specific program, OAR 660‐0024‐0040 and 660‐024‐0045. This report is a Central Oregon Large Lot Industrial Land Analysis, and is allowed under the provisions of OAR 660‐024‐0045(2a).
III. Community Vision
A. Regional Goal and Introduction
Regional Approach
The Central Oregon region (comprised of Jefferson, Crook and Deschutes counties) proposed regional coordination and cooperation to attract new industrial employers. Economic activity in the region crosses jurisdictional boundaries, as does the labor force. While geographically separate, the jurisdictions in the region function in a manner similar to other metropolitan areas, which often share boundaries. The shared economic function within Central Oregon supports a regional approach to economic development, particularly with respect to large basic industries.
Developing a regional short‐term supply of large readily available industrial sites will allow Central Oregon communities to compete for a broader range of economic development opportunities than they are currently capable of. There are a substantial number of large firms regularly seeking sites that are not currently available within the region, precluding economic development organizations such as Business Oregon and EDCO from marketing the area to these prospects. As attracting this type of activity is not currently part of regional economic development efforts, providing an ability to appeal to this segment is seen as additive to existing economic development efforts. In other words, the region’s jurisdictions have developed Goal 9 compliance based on projected growth reflective of traditional patterns, and the attraction of a large industrial user would be considered an exogenous impact to these projections.
The primary economic development objective of this analysis is to ensure that the regional industrial land inventory is adequate to support the specific needs of large lot industrial users. As a result, a substantial amount of attention is paid to the site selection process utilized by candidate firms. Large firms go through a methodical and deliberate site selection process for “development‐ready” sites. Successful recruitment of these firms requires a competitive selection of “development‐ready” sites meeting a variety of physical and locational requirements. A development‐ready site, or a “shovel‐ready” site, is defined as a property in which site improvement can begin within 180 days of purchase and development application. Such sites are either served or readily served by requisite infrastructure and utilities,
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 14 of 102 environmental and other constraints are known and documented, and permitting can be fast‐ tracked for rapid facility operations.
The geographic region evaluated in the analysis is the Central Oregon Counties of Deschutes, Jefferson, and Crook. More specifically, the primary urban areas within this broad geographic region include the Cities of Bend, Redmond, Prineville, Madras, Sisters, and La Pine. Consistent with Statewide Planning Goal 9, this process will outline the particular site needs and characteristics associated with potential targeted industries in the region. An in‐depth inventory of potential suitable sites in the region to meet regional economic goals and opportunities will be a subsequent work task for the jurisdictions in the region.
While not all jurisdictions are likely to need and/or desire the large lot industrial sites necessary to accommodate these users, the regional availability of these sites is considered desirable for all jurisdictions. As an example, a major industrial employer locating in a jurisdiction with an appropriate site will provide employment opportunities for the regional workforce, as well as the opportunity for support industries in other jurisdictions. 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. While individual jurisdictions could work towards establishing independent land inventories to meet this prospective need, a regional approach appeared most responsive to what is seen as a regional issue. The goal of this regional effort IS NOT to generate an acreage calculation of needed vacant industrial land supply BUT rather is 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 as well as quantitative outcome. This effort will provide 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.
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 is needed. The 21st Century site selection factors in the global marketplace of industrial recruitment and site development prioritize:
1) Expedited site development with certainty and minimal time delay; 2) Opportunities to expand and/or diversify manufacturing activity on‐site, taking advantage of existing infrastructure and facilities investment; and 3) Availability of a high quality work force and training programs.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 15 of 102 Central Oregon has the potential to compete well under these criteria as a region, but not as individual jurisdictions. It is due to the Central Oregon quality of life factor that so many people and businesses have relocated to the region in the past decade. This region has been the fastest growing in the state. The same quality of life amenities in Central Oregon that have attracted so many new residents is a major draw and appeal for new industries looking to locate a facility. These industries want to locate in an appealing living environment that will serve to attract and retain talented and valued employees.
B. Community Vision Statement
The project’s Regional Advisory Committee 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 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.
As outlined in the vision statement, the region is concerned with maintaining a competitive portfolio of large lot industrial sites. This is viewed as supportive of regional and statewide economic development objectives. In addition, the vision supports a coordination of investments and policies to this end. Consistent with this vision, the focus of this analysis is on the establishment and maintenance of a short‐term competitive supply of large lot industrial sites that are “development ready,” which are available to allow the region to compete for major industrial employers cross shopping the region against other potential locations.
IV. Trend Analysis
A. National Economic Trends
Introduction
The trend analysis section provides the foundation of economic information that will shape realizable economic opportunities potential for a jurisdiction, resulting potential job growth scenarios, and ultimately employment land need over the planning horizon. In the trend analysis, it is understood that the region, state, and nation as a whole are currently navigating economic conditions not seen in a generation. Ultimately, current economic conditions make it difficult to produce highly timely national trend analysis. Johnson Reid therefore, heavily utilizes the economic forecast "of record" by the federal government, the non‐partisan Congressional Budget Office biannual economic forecast.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 16 of 102 Short‐Term Outlook
Gross Domestic Product
Over the previous two quarters, economic growth has stabilized with a noticeable rebound as federal stimulus spending has filtered into the economy and businesses inventory replenishment has spurred manufacturing activity. Growth in the first quarter measured a 3.2% increase following a 5.6% increase during the previous quarter. However, economic growth, as the recovery takes hold is likely to remain muted in the near term in light of existing economic turmoil, and continued uncertainly of financial markets. On the basis of previous recessions and recoveries, the following factors are also expected to contribute to a more measured recovery period.3
• Evidence from the United States and other countries suggest that recovery from recessions triggered by financial crisis and large declines in asset prices tends to be more protracted.
• Changes in federal stimulus: While federal stimulus spending associated with the American Recovery and Reinvestment Act (ARRA) may have helped moderate the severity of the recession in 2009, its effects are beginning to fade.
• Loss of investment income and more limited availability of credit are likely to limit growth in consumer spending in the near term.
FIGURE 3: NEAR‐TERM GROSS DOMESTIC PRODUCT
3 Congressional Budget Office. "The Budget and Economic Outlook" January 2010.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 17 of 102 GDP growth during 2010 averaged a 2.9% annualized rate of growth, and is projected to expand modestly in a range from 2.8% to 2.9% through 2013.
Employment
Since the beginning of the recession, payroll employment has fallen by greater than 7 million jobs, reflecting both the loss of employment and a drop in the labor force. A signature element of the current recession has been both the depth and duration of employment losses from the peak period of the economic cycle as determined by the National Bureau of Economic Research. As of June 2010 the current recession is expected to be the deepest and most lengthy period of sustained unemployment since the Great Depression.
FIGURE 4: NATIONAL UNEMPLOYMENT TREND
At current, unemployment remains at a seasonally adjusted rate of 9.5%, down slightly from its October peak of 10.1%. The unemployment rate is expected to remain high, and lag the broader economic recovery as there is significant slack in the economy. As the jobs situation begins to recover, workers who have quit pursuing employment are likely to reenter the labor force, delaying unemployment recovery. However, it appears that the national employment situation is stabilizing, with the pace of year‐over‐year job losses declining since the first quarter of 2009 and finally turning positive by the beginning of 2010.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 18 of 102 FIGURE 5: YEAR‐OVER‐YEAR EMPLOYMENT CHANGE, UNITED STATES
Consumer Spending
While a recent upward trend is an encouraging sign of recovery, spending by households is likely to remain constrained by slow income growth, lost wealth, and limited credit availability. Similarly, the overbuilding of residential and commercial space and units exhibited during the real estate bubble created sizable vacancies in both sectors. Subsequently, a rebound in investment spending is likely to be much slower than in a typical recovery period. In the near term consumer spending growth is expected to come in below its long‐term average.
FIGURE 6: PERSONAL CONSUMPTION EXPENDITURES
$9,400,000 1
$9,350,000
$9,300,000
Expenditures $9,250,000
$9,200,000
Consumption $9,150,000
$9,100,000 Personal $9,050,000 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 1 In Millions of Chained (2005) dollars, Seasonally Adjusted SOURCE: Bureau of Economic Analysis DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 19 of 102 Other Factors
• Housing Starts have remained stable since mid‐2009 and were actually up 17% in the first quarter on a year‐over‐year basis. However, the current rate of housing starts remains noticeably weak and is just over a third of the 15‐year average.
• Asset Prices remain highly volatile in light of broad based economic and to a certain extent political uncertainty. Since January of 2008 the Dow Jones Industrial Average has displayed a Hi‐Low range of roughly 5,000 points.
• Inflation in the United States remains low. At 1.7%, change in the Consumer Price Index is low relative to historical averages. Reflecting a large amount of slack remaining in the economy, inflation risk is low, and is expected to, at best, remain unchanged, and possibly decline further in the near‐term. If this trend holds true, the impact will likely be a stable monetary policy with the Federal Reserve keeping its target rate low for some time. • Federal Debt held by the public as a percentage of total output has reached its highest level since World War II. Under current policies this condition is expected to exacerbate further. Persistent deficits can have severe economic consequences, including the crowding out of private investment, limiting the effective use of fiscal policy, and increasing the risk of a fiscal crisis.
Long‐Term Outlook
During the first half of the next growth cycle, GDP is forecasted to grow rapidly enough to close the considerable gap between existing and potential GDP. Beyond the near‐term, the United States economy is expected to return to a typical growth cycle and growth at roughly the same pace as potential output, averaging 2.4% annual growth between 2015 and 2020. While growth patterns are expected to return to normal, economic growth in the coming decade is likely to be more measured relative to historical averages. Factors moderating long‐term economic growth include:
• Demographic factors are expected to create a reduction in the potential labor force and potential hours worked, which account for three‐fourths of the economy.
• Federal Debt will increasingly displace business investment and thus growth in capital services.
• Total factor productivity growth is forecasted to average 1.3% annual growth, slightly above its average rate of growth since the productivity slowdown of the 1970s but below the 60‐year average.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 20 of 102 FIGURE 7: LONG‐TERM GDP FORECAST
Inflation, as measured by the PCE price index will average 1.7% annually during the latter half of the coming decade. The Federal Reserve will continue to use its monetary influence to control inflation risk in the next cycle. The Fed is expected to maintain the rate of PCE near the top of its target range.
Long‐term unemployment is expected to average 5% during the latter half of the decade, roughly equivalent to what is considered to be the natural rate of unemployment. Over the next ten years, the U.S economy is expected to add over 14 million employment positions according to the Bureau of Labor Statistics (BLS). The national economy is forecasted to continue its exhibited trend toward more service oriented industries. A staggering 62% of new employment is expected to be concentrated in only two industries, Education & Health Services, and Professional & Business Services. Over the forecast‐term, only the Manufacturing and Mining & Logging industries are expected to contract in size.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 21 of 102 FIGURE 8: NATIONAL EMPLOYMENT FORECAST BY INDUSTRY 2010‐2020
Factors affecting economic growth moving forward
• Financial Markets: The financial situation of many banks remains delicate; however, the risk of further deterioration is moderating. Ease and cost of credit is likely to be more limited moving forward, but far improved from current conditions.
• Monetary Policy: The Federal Reserve is likely to continue aggressive monetary support for the economic recovery until the risk of higher inflation outweighs the risk of economic deterioration. The recent economic crisis saw the Fed take a larger and more nontraditional role in its monetary influence, namely the purchase of large amounts of mortgage backed securities on the open market. This has created a more complicated view of Fed influence and monetary policy actions. With nearly twice its pre‐recession asset holding, the Fed can now withdraw monetary influence by either raising its target Federal Funds Rate or reducing its asset holding.
• Fiscal Policy: The fiscal impacts of the ARRA have already begun to wane and are expected to turn negative by 2011. Moving forward, mounting federal deficits could limit the government's fiscal capabilities in the long‐term while placing upward pressure on tax rates.
• Investment: Inventory levels are beginning to equalize, and firms are more likely to increase production to more closely match sales. However, the spread between housing vacancies and housing starts remains high, and a rebound in housing investment is unlikely until later in the cycle. Investment in durable equipment and software is expected to lead the recovery. Many industry sources predict a “pent up” demand for
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 22 of 102 facilities and equipment that will materialize in terms of companies seeking immediate, development‐ready locations.
• Consumer Spending: Growth is expected to remain protracted through 2011. Persistently high unemployment will limit income growth and dampen consumer spending growth even further.
B. State Economic Trends
General Industry Trends
Oregon experienced exceptional employment growth between mid‐2003 and 2007. Growth began slowing towards the end of 2006 and continued through 2007. The Oregon Employment Department’s employment estimates for second quarter 2010 indicate that Oregon is following the U.S. economy with decreasing job losses and a turning point in the unemployment rate. Figure 7 demonstrates how closely tied the Oregon economy is to economic trends at the national level. Since 1939, Oregon has tracked the peaks and valleys of the U.S. economy. Also illustrated is improved diversity in Oregon’s economy as evidenced by alleviation of the volatility that plagued Oregon during the 1980’s recession.
FIGURE 9: U.S. AND OREGON HISTORICAL EMPLOYMENT TREND: 1939‐2009
Oregon’s economic growth since 2005, but prior to the current precipitous slowdown, is due in large part to explosive growth in exports. For example, between first quarter 2007 and first quarter 2008, Oregon exports increased by 23.7%, more than six points higher than the U.S.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 23 of 102 growth during the same period. Oregon’s export growth is primarily due to export growth in agricultural products which grew by 82.2% and computer and electronics products which grew by 24.8%. Computer and electronics account for nearly 40% of total Oregon exports. Several other industries experienced high growth in exports during the same period: Waste and Scrap (+71.6%), Nonmetallic Mineral Products (+54.0%), Chemicals (+47.6%), Primary Metal Manufacturing (+31.0%), Miscellaneous Manufactured Commodities (+26.0%) and Wood Products (+23.8%).
Industry Analysis
The first quarter of 2010 represented the first positive quarterly job increase since 2008. Figure 8 outlines a breakdown of Oregon's primary industries, where they appear to be in the cycle, and forecasts of growth over the near‐term. Almost all service sectors posted seasonally adjusted job growth in early 2010. Housing market dynamics are expected to continue dragging down the Construction and Financial Activities Sectors in the near‐term, but growth should turn positive in 2011. A similar trend is anticipated for Oregon's Wood Products industry. Positive spots in the economy include High‐Tech Manufacturing, Food Processing, and Education & Health Services.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 24 of 102 FIGURE 10: OREGON ECONOMIC CONDITIONS AND ESTIMATES BY INDUSTRY
Economic Recovery Prospects
In the State of Oregon, the consensus among economists is that the State economy is holding in a soft‐patch period, as federal stimulus and inventory investment fade by the third quarter of 2010. Businesses are beginning to feel better about the economy, while persistently high unemployment has kept consumer sentiment down. However, the outlook for Oregon is positive relative to other parts of the nation. In the most recent publication of the Federal Reserve Bank of Philadelphia's Coincident Index of Economic Indicators, Oregon posted a 1.2% improvement, ranking 13th in the country and 1st in the West. Moreover, according to the Oregon Office of Economic Analysis (OEA), Oregon's risk of slipping into recession is now currently below the 50% mark for the first time since late 2007.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 25 of 102 FIGURE 11: FEDERAL RESERVE BANK OF PHILADELPHIA'S COINCIDENT INDEX OF ECONOMIC INDICATORS
Employment Factors
Similar to trends at the national level, the State of Oregon began exhibiting a decrease rate of job losses (on a year‐over‐year basis) beginning by mid‐2009. However, at the state level jobs have yet to turn positive but are certainly trending in a positive direction. The State's unemployment rate has moved in a positive direction, down to 10.5% from a 2009 peak of 11.6%, seasonally adjusted. Nevertheless, Oregon's rate remains elevated relative to the national average.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 26 of 102 FIGURE 12: YEAR‐OVER‐YEAR EMPLOYMENT CHANGE, STATE OF OREGON
Over the longer‐term, Oregon’s economic growth is expected to outpace growth at the national level. By 2018, the State’s employment is expected to grow by over 14% with Oregon's population growing by 9% over the same interval. Additionally, Global Insight, a national leader in economic forecasting, project's Oregon's Growth State Product to have the second highest growth rate in the nation in the coming years. Oregon’s high growth prospects are due to a number of factors:
◊ Population growth, primarily due to net in‐migration ◊ Relative location near Canada and Asian countries ◊ High commodity prices ◊ Export growth ◊ Business Cost Advantages ◊ Affordable housing ◊ Biotechnology and Clean Technology ◊ Renewable Energy and Sustainable Development ◊ Quality of life ◊ State tax incentives, including the Single Sales Factor Tax
Through 2017, the OEA forecasts 223,000 new jobs in the Oregon economy. Mirroring national forecasts, a significant share (41%) are expected to fall in Professional & Business Services and Health Services. The state is expected to add over 25,000 new manufacturing jobs based on the 2010 base, roughly 8,000 of which are expected to be high wage High Tech Manufacturing jobs.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 27 of 102 FIGURE 13: FORECASTED EMPLOYMENT GROWTH BY INDUSTRY, STATE OF OREGON 2010‐2017
Construction 16,900 Manufacturing 25,600 Wood Products 4,300 High Tech 8,000 Transportation & Equipment 1,500 Retail Trade 13,800 Wholesale Trade 12,700 Information 3,100 Professional & Business 54,800 Health Services 37,600 Leisure & Hospitality 15,600 Government 18,400 ‐ 10,000 20,000 30,000 40,000 50,000 60,000 Jobs SOURCE : Oregon Office of Economic Analysis (OEA)
Risk Factors
While signs of systematic economic recovery are emerging, the State of Oregon still faces notable downside risk in key sectors. Housing and real estate remain weak, and Oregon's dependence on the stability of export markets is a regular concern. Other factors which could affect the Oregon's economic outlook include:
Credit Markets: While conditions are improving, consumers and businesses are still facing greater difficulty getting loans relative to the previous cycle. This is also a risk reflected nationwide.
Prolonged Housing Market Weakness: While signs are emerging that the housing market has hit bottom, a full housing recovery remains several years off. However, Oregon has fared better than most western states, and if the economic recovery beats expectations, Oregon will be better off than most of the region.
Fading Inventory Cycle and Federal Stimulus: Much like in the national analysis, these two metrics are credited with propping up the economy over the previous two quarters. With support broadly expected to wane, uncertainty is on the horizon.
Global Economic Conditions: As mentioned previously, Oregon's economy is highly export based and Oregon has above average exposure to global economic conditions, particularly conditions among its major trading partners. Expectations for economic growth in Asian countries such as China are a positive sign for Oregon.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 28 of 102 Energy Prices: Currently low energy prices relative to the previous cycle will be a short‐term boon for the economy, as businesses with the ability will chase cost savings. However, price increases are expected to return commensurate with broad based economic recovery, and maintaining a cost based competitive advantage is likely to be central to Oregon's economic development success.
C. Local Trends and Conditions
Economic Factors
The Central Oregon economy was historically dominated by Wood Products Manufacturing and Natural Resources. In recent decades, this changed dramatically as population influences and tourism activity spurred growth in service oriented industries and manufacturing diversity. Central Oregon became among the fastest growing regions in the West. Affluent new residents attracted to the region's quality of life brought wealth from outside the region, fueling demand for services and housing with the infusion of their disposable income. Central Oregon was among the hardest hit regions in the state during the current recession, with unemployment rates remaining near 15% in the current quarter, significantly higher than the statewide average.
FIGURE 14: COMPARATIVE UNEMPLOYMENT ANALYSIS 2003‐CURRENT
Several key factors have contributed to both the depth and duration of Central Oregon's economic weakness. Firstly, industries that supplied goods and services to Central Oregon's real estate development market and served a rapidly growing population were largely responsible for its robust economic expansion. With the bursting of the housing bubble in 2007, the concentration of the regional economy dependent on real estate development created an
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 29 of 102 economic contraction as dramatic as its rise. Central Oregon has lost one in four construction jobs since the peak of the cycle.
Secondly, Central Oregon's new service concentrated economy is far more susceptible to changes in consumer sentiment and disposable income. The national recession's impact on tourism markets, consumer spending, and the acquisition of vacation properties or second homes compounded Central Oregon's decline. The Central Oregon economy was highly dependent upon “discretionary” activity, which tends to be very cyclical.
Thirdly, unemployment in Central Oregon has remained persistently high in part as the result of continued population growth attracted to the region’s quality of life. Central Oregon maintained positive in‐migration through 2009. Coupled with stagnated employment growth, this in effect has kept unemployment high by maintaining higher labor force levels.
Population
Central Oregon's dramatic Population rise was largely the effect of significant in‐migration. During the 2000‐2009 decade, Central Oregon averaged 4.0% annual population growth while adding more 65,500 new residents. Despite an influx of retirement age residents, 55% of residents are working age between the age of 25 and 64. This is consistent with the statewide average.
FIGURE 15: LOCAL POPULATION GROWTH TREND
The City of Bend is the primary population hub in the region, accounting for 37% of the regional population and 44% of growth during the last decade. Over the next 20‐years, the OEA estimates Central Oregon will continue demographic growth at a 2.1% annual pace adding 45,000 new residents by 2020. However, this State developed rate of growth may be slightly
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 30 of 102 conservative in nature, Deschutes County's 2004 coordinated population forecast is projecting 47,000 new residents in Deschutes County alone over the same interval.
Education
An area’s level of educational attainment is often used as a proxy for the skill level of the population base. From an economic development perspective, Central Oregon is consistent with regional averages, with 29% of the working age population having at least a bachelor’s degree. However, a 2010 study of Central Oregon's (Deschutes County) competitiveness evaluated Central Oregon in light of a sample of competitive economic peers in the west. The study found Central Oregon to be in the middle of the road relative to its peers. An educated and skilled workforce is a competitive asset among Central Oregon's target industries. An inability to "stand out" in this metric may limit the region's ability to recruit employers within specific industries.
FIGURE 16: COMPARISON OF EDUCATIONAL ATTAINMENT
Wages
Since 2002, wage levels in Central Oregon have averaged a 3.2% annual rate of growth, comparatively better than a 2.8% annual growth rate at the State level. Deschutes County's average 2009 wage level of $35,295 was well below the statewide average. Lower relative wage rates coupled with housing affordability concerns can limit the region's ability to attract a high quality workforce to the region.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 31 of 102 FIGURE 17: CENTRAL OREGON WAGE TRENDS $38,000
$36,000 $35,047 $35,295 $34,315 Bend MSA $35,295 $34,000 $33,324
$32,000 $31,491 Wage $30,091 $30,000 $29,124 $28,253 Portland Metro $46,233 Annual $28,000
$26,000 Average $24,000 Oregon $40,740 $22,000
$20,000 2002 2003 2004 2005 2006 2007 2008 2009 $20,000 $27,500 $35,000 $42,500 $50,000 Average Annual Wage SOURCE: Oregon Employment Department, Covered Employment Survey
V. Target Industry Analysis
A. Large‐lot Trends and Dynamics
Changes in global business patterns have pressured firms to develop more capital intense production models, placed a greater emphasis on economies of scale, as well as production efficiency and flexibility. The result has been the emergence of a clear real estate trend, creating a global demand for large development ready industrial sites. As such, large, development ready sites have emerged as one of Oregon's most severe development challenges.
Workforce characteristics, quality of life, proximity to large U.S. West Coast markets, and coordinated public involvement and recruitment have landed Oregon "on the radar" of many large‐scale projects shopping for sites in the United States. Many of these projects have been concentrated in cutting edge industries important to the State of Oregon's economic development targets. The state and region have had measured success in the placement of large‐scale projects, with lack of suitable sites (size & infrastructure), lack of market choice, and time duration to entitle and develop sites commonly cited as development constraints.
Large scale global firms represent an important prospective economic development engine for the state and region. Global scale firms have the ability to open new markets, bring cutting edge technology to the region, are associated with high wage jobs, and expend significant capital investment. As an additional benefit, the high assessed value of these projects contribute significantly to the stability of the tax base that allows provision of necessary services to all residents of the region. Therefore, the goal of this process is to evaluate Central Oregon's opportunities for large scale economic growth in light of statewide planning goals and practices, as well as land and infrastructure availability.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 32 of 102 Large‐Lot Trends
Shifting global market factors have increased the need for large lot industrial sites over the last several decades. Warehouse properties have substantially increased in size as distribution reflects increasing returns to scale as well as the concentration of production in larger production facilities. Production facilities are also increasingly scaled for global as opposed to regional or national needs. The following are examples of recent warehouse projects that have located to the State of Oregon, as compiled by Business Oregon:
Jurisdiction Tenant Site Size Square Footage Albany Target 175 acres 1.3 million Hermiston Wal Mart 200 acres 1.3 million Lebanon Lowes 204 acres +1.3 million Salem Home Depot 50 acres 500,000
As shown in the preceding table, the emerging module for distribution facilities now regularly tops 1.0 million square feet of building area, with site sizes in excess of 200 acres. Over 55 projects have shopped the State of Oregon over the last ten years with site demand over 50 acres, averaging over 5 new projects per year. Business Oregon currently has 10 estimated outstanding leads in this size category.
Manufacturing has also shifted to larger site needs, with examples including Genentech, SolarWorld and Intel’s new expansion in Hillsboro. Each of these required sites are in excess of 50 acres in size, with Intel’s located on land held in reserve adjacent to a currently operating facility. While these projects show a need for large sites, they also speak to a desire for even larger sites than immediately needed to provide flexibility. While Intel didn’t immediately need the land used for their recent expansion when building the initial Ronler Acres facility, the flexibility provided by this excess property made the site more competitive vis‐à‐vis alternative locations that had a greater probability of limiting future expansion options.
Business Oregon estimates that they see approximately 15 serious inquiries a year for large scale manufacturing sites. Combined with warehouse/distribution inquiries, Business Oregon sees over 20 annual inquiries a year statewide for large lot industrial sites. As not all leads are picked up by Business Oregon, one would expect the overall activity to be significantly higher.
Economic Development for Central Oregon (EDCO) is currently working with 72 companies seriously considering a location in Central Oregon, of which five would require a site 20‐50 acres in size, while three would require a site in excess of 100 acres. Industries that have contacted EDCO for large acreage sites include the following:
• Distribution and warehousing; • Data centers; • Renewable energy equipment manufacturing; • Energy production facilities (biomass, solar, geothermal, synthetic fuels);
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 33 of 102 • High technology; and • General durable goods manufacturing.
Johnson Reid completed a survey of industrial brokers active within the State of Oregon in 2010, asking a series of questions with respect to market activity for large lot industrial sites. These surveys revealed the following:
• Industrial brokers surveyed fielded an estimate of eleven 50+ acre parcel queries annually over the last ten years, largely by technology manufacturers and warehouse/distribution users. • Technology manufacturers comprised 35% of all 50+ acre site queries over the last decade, indicating continued viability and continued growth potential for the cluster. • For every public lead that generated a large site query fielded by a broker, private brokerages fielded nearly 3 large site queries independent of public economic development involvement. • The State loses at least one large site query annually due explicitly to site unavailability, however Johnson Reid concludes more are also likely lost due to site unavailability but limited broker involvement and firm confidentiality prevent verification. • Almost one of every three sites purchased by large users over the last ten years has not yet realized development. In other words supply capacity should include at least 33% land investment and “transaction demand” capacity to enable firms adequate choice for the large site market to function.
In summary, Business Oregon fields over 20 inquiries annually for large lot industrial land, while EDCO fields an additional amount. If the broker experience holds true, the actual volume of prospective site queries is in excess of 80 annually statewide.
Importance of Large‐Lot Supply and Market Choice
Oregon is entering an increasingly competitive dynamic in the recruitment and retention of global large scale employers and producers. In their search for suitable site locations for business expansion, firms typically follow a site selection process and evaluation of regional characteristics and livability, workforce/industry dynamics, operating costs/incentives, and availability of a selection of sites ready for immediate development. A development‐ready site, or a “shovel‐ready” site, is one in which site improvement can begin within 180 days of purchase and development application. Such sites are served by requisite infrastructure and utilities, environmental and other constraints are known and documented, and permitting can be fast‐tracked for rapid facility operations. Many large business location searches are conducted by hired site selectors; their task is to present their clients with a “short list” of feasible options. Because of their mandate, site selectors admittedly look for reasons to remove sites from consideration because of some inadequacy in characteristics; their job is not to keep sites in consideration based on promised improvements in any deficient condition.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 34 of 102 Johnson Reid has organized this process into a simple model that follows the progression of firms' decision criteria in location analysis. In addition to identifying a progression of selection criteria, Johnson Reid have found land diversity and market choice to be of particular importance. Industrial recruiters at Business Oregon and other entities around the state strongly assert that a lack of sites puts Oregon at a distinct competitive disadvantage relative to competitor communities across the nation. The consensus has emerged that a general lack of development‐ready sites to choose from eliminates a city or region from contention very early in the site selection process. Moreover, market choice among several sites further preserves price stability and transaction certainty that tends to deteriorate in a single‐seller scenario, threatening placement of potential firm.
Additional industrial development and business trends affecting large‐lot industrial demand include:
• Companies trending toward expanded portfolios. • Among key industries such as high‐tech/renewable energy manufacturing and biosciences, evolving production models requiring substantial capital investment and reinvestment have created a need for land capacity beyond current needs. Firms require land holdings with flexibility and expansion capacity. The value of this flexibility to a firm exceeds the marginal cost of holding land for many firms, leading to firms seeking sites often well in excess of immediate space needs. • Higher fuel and energy costs are forcing firms into more regionally distinct operations for sourcing their raw materials and/or distributing their finished products. • Large, available vacant structures are a popular commodity for some industries where time‐to‐market is a critical element of location decisions. • Location incentives are playing an increasing role in location criteria, at least in the context of “leveling the playing field” among competitor locations. • Low cost, high capacity existing utility infrastructure is emerging as a deterministic quality in site criteria for many targeted industries; if capacity does not currently exist it must be available within the project timelines for sites to remain in consideration.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 35 of 102 For most companies making location decisions, land is a “means to an end”; that is, they need the land to locate some kind of facility so they can produce the product or service that is their primary business. They want:
• Diverse sites in a region to choose from in the early stages of their search; most companies want to pick and choose. • A single point of contact/negotiation; companies are not interested in protracted negotiations with multiple parties; they want the process to be as quick and painless as possible. • Prospects are very concerned how the land procurement process affects their project time lines and ultimate time‐to‐market of their product; often, in fact, the actual land price is of lesser consideration to the company than how quickly and easily the property transaction moves forward. • Prospects are highly unlikely to be patient when it comes to services (water, wastewater, power); the availability of service needs to fit into the project timeline, and not be a roadblock issue.
Assembling multiple smaller parcels into a cohesive “large lot” product can be a very difficult task. 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.
As these possible barriers are viewed from the standpoint of the business making a location decision, it is not difficult to perceive why multiple parcels often represent a “deal‐killer” to companies who do not have the time, patience, or expertise to wade through a possible quagmire of issues.
The key to the site selection process is that it is essential for candidate sites to be truly development‐ready instead of simply “buildable”. A general lack of development‐ready sites to choose from eliminates a city or region from contention early in the site selection process. In addition, firms in the site selection process prefer to have multiple options within a region that
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 36 of 102 meet their criteria. Ideally this would include multiple ownerships, as well as multiple jurisdictions. This allows for competitive pricing, a wider range of options, as well as making the area more attractive for site visitation.
Competitive Inventories
While the State’s land use system is concerned with meeting demand over the next 20‐years, of more critical importance is the availability and maintenance of a competitive inventory of readily available sites. As the Central Oregon region considers new, large industrial site supply, the region specifically seeks to provide a supply of large, development‐ready sites that is competitive with other markets nationwide.
Johnson Reid prepared a number of surveys over the last several years, documenting the supply of development‐ready site inventory (180‐day) marketed by national competitors. Johnson Reid would underscore that at least two of the competitors shown – Albuquerque and Austin – have identified replacement industrial land supply exceeding a thousand acres according to officials interviewed. The City of Hillsboro is also actively working towards increasing its large lot industrial acreage inventory.
Many site selectors will require the ability to review multiple options in the region in order to reduce the risks associated with varying levels of environmental mitigation, local government policy, site avoidance factors and planned levels of infrastructure utility investment.
Central Oregon competes with regions across the country that offer significantly greater development‐ready industrial land supply, selection, diversity, and lower land cost. Continued inability to factor competitiveness as borne out by surveyed industrial broker activity, including diversity of large industrial site supply and competitive cost, sacrifices the region’s long‐term competitiveness for these key industries. As noted by EDCO, “with many options (depending upon the geographic scope of the search) we have seen a resistance by site selectors, corporate real estate professionals and company representatives to invest the time and travel to visit the region without more than just one or two large lots to consider.”
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 37 of 102 B. Strengths and Challenges in the Central Oregon Economy
In June of 2010 Deschutes County and the consultant team moderated the Central Oregon Industrial Lands Forum. Participants in the forum discussed economic development trends at a national and regional level, as well as specific opportunities and challenges for Central Oregon. In this section, the findings of this session are summarized, as well as additional input from the Regional Advisory Committee and the consultant team. The Central Oregon region has a number of strengths with respect to economic development, including the following key attributes:
• Quality of Life – The region’s extensive recreation amenities and commercial services base are a substantial advantage. While the concentration of destination resorts in the area attest to the attractiveness of these assets, their existence also supports a much more substantial services amenity base than the full‐time population could support. This makes it easier to attract executives as well as a quality work force. With advancements in telecommunications, firms are more footloose now than traditionally, and quality of life criteria play a greater role in location decisions. • Access – The Central Oregon communities serve as the commercial hub of a much broader rural area. In addition, Highway 97 provides a major north/south alternative to Interstate 5. Central Oregon’s location makes it a natural commercial services hub for a very broad area. While Highway 97 is not perceived to be of equal value as Interstate 5 as a north/south link, its function is equivalent and sometime superior for many prospective firms. • Commercial Air Service – The Redmond Municipal Airport provides commercial service links, while Bend, Madras and Prineville have general aviation airports. This is supportive of firms making location decisions for quality of life reasons, while still maintaining a functional and convenient link to major metropolitan areas. • Rail – The region has made major investments in the Regional Freight Depot, supported by Connect Oregon grants. • Natural Resource Proximity.
The primary challenges facing the area are related to scale and accessibility. While the region as a whole has a significant population base, none of the jurisdictions are considered large enough to meet many firms initial screening. In addition, Central Oregon’s distance from the Interstate system is a major impediment for many prospective firms.
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 candidates for many of the targeted firms. The region acts as a cohesive economic unit, sharing work force and commercial amenities, and should be marketed as such to increase its perceived scale in the market. The following is a more detailed profile of the individual strengths and challenges
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 38 of 102 facing each of Central Oregon's major communities with respect to the suitability for large‐lot industrial.4
Madras (Jefferson County)
The City of Madras has some strong industrial sites near the airport, including large lot industrial properties with rail access. The City’s position at the intersection of Highways 26 and 97 provides logistical advantages, particularly for firms needing access to the Portland metropolitan area and Interstate 84. The airport is also a major facility that provides an amenity for certain businesses. Within Central Oregon, the Madras area is at the northern edge of the population and economic base, placing it at a disadvantage for regional distribution as well as for firms looking for large work forces.
Strengths/Advantages Challenges/Disadvantages • The Oregon Transportation Planning Rule is • Industrial airport an issue on Hwy 97 • There is no a continuous 4‐lane highway • Airport has improvements scheduled between Madras and Bend • Available industrial sites proximate to rail • Relative skill set of work force • Some areas do not have large surplus of gas • Opal Springs provides ample water and electricity • Strong agricultural and manufacturing section
businesses • Most proximate to the Portland metro area • Most proximate to I‐84 • Highways 97 and 26 run through middle of
Madras • Development costs substantially than other
Central Oregon cities
La Pine (Deschutes County)5
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.
4 Profiles gathered from the June 28, 2010 Central Oregon Industrial Lands Forum. 5 During the adoption process for Ordinance 2011‐017, stakeholders from La Pine wanted La Pine's strengths and weaknesses to reflect new information.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 39 of 102 Strengths/Advantages Challenges/Disadvantages • Sewer and water districts – in transition to • State of Oregon Certified Shovel‐ready 50+ acre the city. To be absorbed by the City early industrial site available and proximate to rail to mid‐2012 • Neighboring small and medium sites available for • Transportation challenges; TSP to be a variety of options completed by mid‐2012 • The most favorable electric rates in Central • City codes adopted and scheduled to be Oregon implemented early 2012 • More than adequate water and sewer capacity • Need large “keystone” employer for new industry • 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. • 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.”
Prineville (Crook County)
While the City of Prineville is located at the eastern edge of the Central Oregon region, it has strong rail access and relatively easy truck/auto access to Redmond, Madras and Bend. The Regional Freight Depot represents a major public investment. The City has a reputation as being business friendly, and the recent siting of Facebook has raised the jurisdiction’s profile in economic development circles. The area has excellent and affordable housing stock. While the City has a number of industrial sites, many of these are either poorly located or constrained. The City has historically competed well within the region as a relatively low cost location with a strong labor force, but this advantage has diminished somewhat with the declines in the region’s real estate markets. Sites at the western edge of town are best located to serve regional needs.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 40 of 102 Strengths/Advantages Challenges/Disadvantages • Sites are a distance off Hwy. 97 and Hwy. 126 • Ease of permitting has limited capacity • Rail access/freight depot – City owned and • Grade differentials in sites make some easier operated short line rail service and the to serve via rail (lower level) than others Regional Freight Depot (higher level) • Ochoco Lumber mill site bordered by 2 • General aviation airport adjacent to industrial highways so “double indemnity” for any properties with expansion underway development activity triggering TPR issues. Recognized as future mixed use site. • Potential large lot industrial lands not • Larger, available workforce protected under current zoning from splitting into smaller parcels. • Somewhat warmer climate, but cool evenings • Water supply challenges • Community welcoming of
development/newcomers/jobs • Prineville is centrally located to Redmond/Bend with relatively lower
priced land for industrial use to other Central Oregon area • Facebook data center under development at airport location causing high interest by other firms seeking future locations
Bend (Deschutes County)
As the largest city in Central Oregon, Bend is most commonly cited as the desired location for new firms considering locating in the region. The City offers a wide range of commercial services and executive housing options, and as a result of recent trends, provides affordable housing as well. The current scarcity of industrial land in the city is the primary challenge to future economic development, with sites that are small, expensive and often facing substantial transportation problems. While Bend has the greatest level of services and scale, its vacant industrial land inventory is severely limited.
Strengths/Advantages Challenges/Disadvantages • Largest metro area in region • Scarcity of industrial land • Regional employment center • Price of industrial land • Most “urban” of regional cities • Overall costs to develop • Relatively complex/sophisticated permitting • Immediate access to natural amenities process • Central Oregon Community College main • Water and sewer capacity limited campus • Good communication infrastructure • TPR is an issue • Juniper Ridge master‐planned mixed‐use • Ongoing “discussions” with LCDC about UGB community expansion (remand, negotiations, etc.)
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 41 of 102 Redmond (Deschutes County)
The City of Redmond serves as a major hub of the region, and the commercial airport provides a key advantage. The community has historically seen land prices somewhat below Bend, and is well situated to serve the region due to its central location. The area has some small and medium sized industrial sites, and the range of commercial services trails only Bend in the region.
Strengths/Advantages Challenges/Disadvantages • 465 acres located in the industrial area in the city limits currently in holding zone of Open • Commercial airport Space Park Reserve – rezoning prevented by TPR. • Affordability of industrial land coming back • Available water/wastewater capacity into line with market • Can large public entity land holdings • Good telecom infrastructure (irrigation district and DSL) be brought into play? • Central regional location allows workforce • TPR is always a factor when land is being drawn from all over region considered for development • The diverse public entities that own land • Available small/medium sites might have different objectives • COCC technology center • Family‐centric, stable community • Enjoys a business friendly reputation; Ease
and speed of permitting • BNSF rail mainline through town • Prineville freight depot/short line railroad
Sisters (Deschutes County)
The City of Sisters is located at the western edge of region, and is poorly situated for serving the broader region and capitalizing upon the depth of the workforce. The community does offer a strong amenity base for its size, as well as extensive executive housing options nearby.
Strengths/Advantages Challenges/Disadvantages • Natural amenities • Small community (2,000 population) • Small airport • Possible expansion land not in city limits • Transportation system needs funding, but • Streamlined permitting process some elements coming into place • Available lots are plotted into small parcels in • Large parcels abut city limits industrial parks • 80 acre Forest Service site in town might • Community is interested in/supportive of become available which could trigger TPR economic development issues • Possible water/wastewater limitations (not • Just joined Redmond’s E zone really clear)
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 42 of 102 C. Target Industry Opportunities in Central Oregon
Led by the 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 relative young in Central Oregon. In the summaries below, Johnson Reid 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 advantage 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 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 providing 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
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 43 of 102 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.
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.
D. Site/Resource Characteristics of Key Development Classes
Figure 18 highlights specific land, workforce, and operations characteristics among key industrial classifications in Central Oregon. For this stage in this analysis, Manufacturers fall under a single category, whereas subsequent drafts will explicitly underscore development site needs and characteristics of specific industries.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 44 of 102 FIGURE 18: KEY INDUSTRIAL LAND/INDUSTRY CHARACTERISTICS
SOURCE: EDCO
The findings in Figure 18 reflect the findings in the progressive criteria "funnel model". With the exception of data centers which have highly unique utility requirements, availability of a qualified and ample workforce is of upmost importance. For some industries such as Distribution and Warehousing, access to transportation networks is a key concern.
Targeted Industries with Large‐Lot Needs
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 operations
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 45 of 102 Changing economic conditions and global trends are impacting each of these industries, creating opportunities for rural and small metropolitan areas. The tri‐county region already has established operations in each of these sectors and precedent for large‐acreage users. The Appendix contains a summary of other geographic areas where each of these sectors has grown from a similar small foundation to become national leaders – some in a relatively short period of time. Additionally, any one of these sectors has the potential to create the exogenous demand that would trigger the need for additional large, industrial‐zoned land in Central Oregon since so few of these sites exist – particularly in the region’s largest cities.
Central Oregon Viability for the Data Center Industry
According to global data center site selector David Aaroe, (co‐founder and principal, Fortis Construction), Central Oregon has all the elements to rival Central Washington as a top location for the data center industry in North America. Other site selectors from across the country are already focused on the tri‐county area as a result of Oregon’s largest data center project with the construction of the Facebook campus at Prineville (currently 125 acres, 300,000 sf).
“The combination of low cost—not the lowest—reliable electric power, incentives, telecom capacity and the area’s climate could make the Central Oregon area as competitive as any in North America for the data center industry.”
2011 presentation by David Aaroe, Principal, Fortis Construction A leading global data center site selection firm
A key component that could lead to explosive growth in the Central Oregon area is enormous Bonneville Power Administration power transmission lines that transport electricity from hydroelectric generation the Columbia Gorge to California. These transmission lines are located such that Prineville, Redmond, Bend, and La Pine all become viable locations for the data center industry. This steady, inexpensive base load electric power is in high demand by the data center industry.
Low cost, high capacity power is at the very top of the site location criteria list for the data center industry. The ability to quickly and reliably add load to the system is also critical. As quickly illustrated by the national district‐by‐district map below, tri‐county rates are well below the national average for electricity in all sectors. For industrial customers, Central Oregon providers offer rates up to nearly 20% below the national average and 50% below neighboring California where considerable data center activity is currently centered.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 46 of 102 FIGURE 19: INDUSTRIAL POWER RATES
Another key factor is the requirement for robust telecom infrastructure. Over the past 12 years, more than $100 million in infrastructure has been invested in the region, including a self‐ healing fiber loop for incumbent provider CenturyLink (formerly Qwest), numerous fiber rings by competitive local and regional providers and multiple Points of Presence (POP). With multiple telecom routes via San Francisco, Portland and Seattle, the tri‐county region’s access to markets in Asia is especially good.
Perhaps one of the greatest natural assets the area possesses for data centers is the significant year‐round cooling factor offered by the high desert climate. Simply stated, cool nights year‐ round and low humidity enable data centers to use less power for cooling servers—making the center much more cost efficient. Reasonable power costs, power savings made possible by the region’s climate, the lack of a sales tax in Oregon and meaningful incentives (property and incomes tax exemptions) all combine to make the Central Oregon region a globally competitive location.
Because of the significant investments characterized by data centers both in mission critical infrastructure and physical plant (typical cost per square foot is $1,000), most companies require large industrial sites for future expansion. The current inventory of appropriately zoned sites with proximity to needed infrastructure in Central Oregon is potentially uncompetitive, and as such could be a major impediment to further growth of the sector for next 10‐15 years. The economic development community recognizes that most jobs come from existing companies, and fostering entrepreneurship and retention expansion of existing traded‐sector companies is a major focus of regional efforts. Recruitment of new companies in new and existing industries, however, is an important component of any successful economic
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 47 of 102 development program and diversification strategy. New companies bring a different mix of professional and technical talent to communities that can spawn other businesses and technologies. Intel’s expansion to Hillsboro in the late 1970s is a good example in Oregon. At that time it was a recruitment project, but in the subsequent decades the global leader in semiconductor technology and production spun off more than 100 companies that significantly contributed to the overall diversification of Oregon and of course many well‐paying jobs.
Central Oregon Viability for the High Technology Industry
While the Central Oregon region clearly has different attributes than either the Hillsboro or Austin examples outlined in the Appendix, it does have some of the key components that make the high technology sector a viable option for industry targeting. Several important technology sectors have a foothold in the region including:
Semiconductor and peripherals manufacturing (Microsemi, TriQuint Semiconductor, Nanometrics) Renewable/alternative energy equipment and software (Advanced Energy, Idatech, PV Trackers, E1, InEnTec) Software (Vertex, GL Solutions, Navis, Manzama, AudetteMedia, Team Unify) Biosciences (Bend Research, MediSISS, Agere Pharmaceutical, Phillips, Accelrys).
This small but successful and diversified group of high technology companies provides a foundation on which to build a broader industry, provided that other site location fundamentals are in place.
The Central Oregon region scores well on most critical location factors. Power rates are among the lowest in the nation and nearly half of those in neighboring California. Not all communities are equally prepared, but generally water and wastewater capacity is adequate to accommodate high technology industry needs. Oregon’s property tax incentives offered through the Enterprise Zone program generally favor high technology projects with significant capital expenditures, much as it benefits companies in the data center industry. Higher education infrastructure to develop local scientific and technical talent needs improvement within the region, and is currently considered by site selectors to be a barrier, however many technology companies acknowledge that most talent recruitment today is done on a national or international basis. Access to local technical, engineering, and scientific coursework and degrees are a plus and can be a swing factor between one site or another, however an area with quality of life and some technical talent can attract other technology employers. It happened in Hillsboro and Austin not because of the university infrastructure there, but because other site location factors worked (access to power, water & wastewater facilities) and there were well educated people who chose to live there or could be recruited from other places.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 48 of 102 A potentially significant barrier is the lack of large industrial lot options that have proper zoning and necessary infrastructure, specifically in Bend and Redmond which have been of greatest interest for companies, site selectors and corporate real estate professionals. That Bend, one of Oregon’s seven largest cities and among the fastest growing (both in terms of net jobs the past decade and population), has no industrial‐zoned lots over 20 acres would be inconceivable in most states.
According to EDCO, the sector with the most activity in terms of location decisions and new production facilities in the past five years has been renewable energy equipment and related manufacturers. Included are solar power panel fabrication (thin film and silicon) polycrystalline refinement, and solar power generation– all which require large acreages with appropriate zoning. Biomass and gas‐fired electric power plants also have a need for large industrial acreage, but usually prefer a rural location if adequate infrastructure can be developed cost effectively. While existing computer and electronics manufacturers in the area have historically operated in facilities on acreages less than 40 acres, there are many examples in Oregon and across the country where once small high technology firms have grown into large campuses. Hewlett‐Packard in Boise, ID and Corvallis, OR; Micron in Boise, Microsoft in Redmond, WA all serve as excellent examples of local companies that organically grew into large, multi‐building campuses that greatly exceed the 40‐50 acre threshold established by this REOA.
Central Oregon Viability for the Warehouse and Distribution Industry
Because of its removed location from major interstates, the tri‐county has not historically been a target for the warehouse and distribution industry. Still, some significant distribution activities do occur – primarily tire distribution by the Les Schwab Company, which has over 2 million square feet under roof at its warehouse operations in Prineville. There, tires and auto components manufactured globally are consolidated and distributed to 400+ stores in a seven state area. The company is the #1 highest volume customer for the Port of Portland and operates one of the largest distribution operations in Oregon.
In addition to this warehouse, several durable goods manufacturers in the area have larger‐scale distribution nationally from their Central Oregon location, including Bright Wood Corporation, Deschutes Brewery, Keith Manufacturing, Contact Industries, Jeld‐Wen, and Advanced Energy (PV Powered). Online retailer Altrec.com also consolidates and distributes orders directly from its Redmond, OR warehouse and does so cost competitively vis‐à‐vis other west coast locations.
Over the past decade, consolidation has been the dominating trend in warehouse and distribution – fewer but larger DCs located in strategic geographic area – to achieve greater efficiencies and cost advantages offered by economies of scale. With the sharp rise in fuel prices in recent years, industry experts are predicting that the
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 49 of 102 industry could migrate to smaller facilities serving smaller distribution areas. Key to this more dispersed model is the availability of rail to more cost effectively transport goods (approximately ⅓) within the regional distribution area. Rather than the 11 or 9 state model, respectively, offered by Salt Lake City, UT or Reno‐Sparks, NV the smaller 5 to 7 state model successfully utilized by Les Schwab for the past 50 years might prove more cost effective with $5‐6 dollar per gallon fuel prices.
“In general, companies will respond to the higher fuel prices by expanding their distribution networks to include additional DCs, but it remains to be seen just how big the impact will be. Some will tweak their networks by adding one or two DCs or relocating one or two of them in order to economize on freight‐ miles and fuel consumption.”
2010 report by ProLogis, a leading global provider of distribution facilities
Led by the Prineville Railway, the nation’s only municipally‐owned short‐line railroad, Central Oregon has been working to expand its ability to provide logistics and freight connections between Class I railroads and traditional truck distribution models. Over the past several years, the Prineville Railway has invested nearly $10 million in a new freight depot, track, and railcar handling equipment to efficiently transfer rail freight to trucks either for final destination delivery or for warehousing. With ongoing global upward pressure on oil prices, these projects could be the beginning of a wave of investments in to accommodate a growing transloading facility. Planning is already underway for a unit‐train switch yard upgrade adjacent to the UPRR/BNSF mainline just on the northern borders of the Redmond UGB and expanded warehouse and distribution facilities in Prineville.
E. Regional Large‐Lot Demand
Long Range Employment Forecast
Figure 20 outlines estimated growth in employment projected by the Oregon Employment Department (OED) for the Central Oregon region. The OED’s most recent projection estimates employment growth by industry over a 10‐year horizon beginning in 2008. For the purposes of this analysis, Johnson Reid applied the State's 10‐year growth rates to 2010 base year estimates of employment by industry and extrapolated growth through 2030.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 50 of 102 FIGURE 20: BASELINE LONG RANGE EMPLOYMENT FORECAST
Over the next 20‐years the Central Oregon region is expected to add roughly 22,208 new employees according to State projections. The bulk of projected growth is expected to fall within the Health, Leisure & Hospitality, and Professional & Business Services sectors. However, State level projections are often demographically driven methodologies, developed for long range budgetary and government planning purposes. They very rarely reflect the qualitative economic development goals of local jurisdictions and economic development agencies. For example, as mentioned above, EDCO and the tri‐county region have committed to the broad based recruitment, retention, and organic expansion of the region's Software/IT industry, which is generally under the Information NAICS classification. However, this economic development goal is not reflected in the State's forecast of Information employment. In other words, aspirational goals, policies, and dedication of resources have real direct impacts on the path of economic development likely in a local geography.
More importantly is an inherent disconnect between any trended forecast methodology and the potential demand for large‐lot industrial employers. By nature, large industrial placements are "game‐changers", whereas a single placement can change the economic landscape of a community. The employment impacts are not reliably "forecastable." Communities are best served by providing a range and supply of suitable options for prospective recruitments in addition to organic expansions. This is particularly prevalent in today's landscape, where firms, products and even entire industries shopping Oregon for suitable sites did not even exist a cycle ago. The Facebook placement in Prineville is a prime example of a firm and industry that did not exist even 10‐years ago. While large lot users may reflect growth of existing industries, they are more often reflective of a regional, national or global site selection process, and are competitive in nature. A survey of site selection professionals found that large firms go through a methodical site selection process for “development‐ready” sites and that agencies seek to maximize quantity and selection of large “development‐ready” sites for successful employer recruitment. A development‐ready site, or a “shovel‐ready” site, is one in which site
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 51 of 102 improvement can begin within 180 days of purchase and development application. Such sites are served by requisite infrastructure and utilities, environmental and other constraints are known and documented, and permitting can be fast‐tracked for rapid facility operations. If all these conditions cannot be met in accordance with project time frames, sites will not be kept on the list for further consideration. The key to the site selection process, therefore, is that it is essential for candidate sites to be immediately development‐ready instead of simply “buildable.” Furthermore, a general lack of development‐ready sites to choose from eliminates a city or region from contention early in the site selection process. Until sites win development‐ready status, they are not truly effective supply for large industrial site demand as viewed by firms seeking to potentially locate in the region. It is critical to keep in mind that the site selection process begins as a process of elimination; it only becomes selection after a short list of potential sites that meet all pertinent criteria has been created.
Industry Placement Velocity
For the reasons cited previously, a matrix is included, showing recent target industry placements, large and medium nationwide, in addition to industrial recruitment activity in Oregon to demonstrate a snapshot of large‐lot characteristics and the velocity of recruitments handled by Business Oregon.6
6 Oregon Business Development , 2010
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 52 of 102 FIGURE 21: SELECTED LARGE LOT RECRUITMENTS IN OREGON AND SOUTHERN WASHINGTON
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 53 of 102 FIGURE 22: MATRIX OF RECENT MAJOR TARGET INDUSTRY PLACEMENTS Industry/Activity Company Location Land/Site Size Renewable Energy Solar; plant for solar panels and power systems Xtreme Power/ Wixom, Michigan 320 acres Wind: plants in Brighton‐blades and nacelles Windsor‐blades Vestas Colorado (3 locations) Brighton= 176 acres Pueblo‐towers Windsor=75 acres Pueblo= 800 acres Wind: plant for concrete tower bases Tindall Newton, KS 144 acres Solar: facility for R&D and panels Green 2V Rio Rancho, NM 124 acres Wind: plant for nacelles Siemens Hutchinson, KS 108 acres Batteries: plant for leaf batteries Nissan Leaf Batteries Smyrna, TN 72 acres Solar: plant for solar receivers Schott Solar Rio Rancho, NM 80 acres Aviation/Aerospace 787 fuselage Boeing Charleston, SC 1.2 million sq. ft. (building only) Parts depot Lockheed Martin Papillion, NE 85,600 sq. ft. (building only) R & DLockheed Martin San Diego, CA 158,000 sq. ft. (building only) Service Cessna Valencia, Spain 152,000 sq. ft. (building only) Drone production General Atomics Sabre Springs, CA 193,000 sq. ft. (building only) Helicopter training academy Bell Helicopter Ft. Worth, TX 160,897 sq. ft. (building only) Helicopter hangar addition Bell Helicopter Amarillo, TX 97,678 sq. ft. (building only) Software/Information Technology Software testing Galmont Consulting Lexington, KY 4,000 sq. ft. (building only) Global software development facility HSBC Burnaby, BC 146,000 sq. ft. (building only) Company H.Q. Projekt202 Austin, TX 8,500 sq. ft. Software support Microsoft Austin, TX 10,000 sq. ft Innovation and technology center Microsoft Reston, VA 63,000 sq. ft. (building only) Computer lab Microsoft Redmond, WA 57,000 sq. ft. (building only) Office space Microsoft Bellevue, WA 1.34 million sq. ft. (office lease) Bioscience & Medicne Pharmaceutical development facility Analytical BioChemistry Laboratories Columbia, MO 90,000 sq. ft. (building only) Corporate campus Biogen Idec RTP, NC 176 acres Fill and finish facility Genentech Hillsboro, OR 75 acres Insulin manufacturing facility MannKind Danbury, CT 251,875 sq. ft. (building only) Mammalian cell culture proteins Pfizer County Cork, Ireland 130,000 sq. ft. (building only) Contract manufacturing Cook Pharmica Bloomington, IN 250,000 sq. ft. (building only) Data Centers Data center E bay South Jordan, UT 250,000 sq.ft. (building only) Data center Oracle West Jordan, UT 200,000 sq. ft. (building only) Data Center National Security Agency Camp Williams, UT 200 acres Data Center Cisco Systems Allen, TX 140,000 sq. ft. (building only) Data Center Apple Maiden, NC 500,000 sq. ft. (building only) Data Center Target Brooklyn Park, MN 111,800 sq. ft. (building only) Data Center Equinix El Segundo, CA 177,000 sq. ft. (building only) Data Center Advanced Data Centers Sacramento, CA 500,000 sq. ft. (building only) Data Center Facebook Prineville, OR 147,000 sq. ft. (building only) Data Center Microsoft Quincy, WA 470,000 sq. ft. (building only) Higher Education Innovation Center Western Michigan U. Kalamazoo, MI 69,000 sq. ft. (building only) Aviation programs Western Michigan U. Battle Creek, MI 92,000 sq. ft building and 20 acres Treyburn Corporate Park North Carolina State U. Raleigh, NC 256 acres Biomedical campus U of Arizona and A.S.U Phoenix, AZ 28 acres Campus expansion University of Memphis Memphis, TN 250,000 sq. ft. (building only) Campus expansion for student housing SMU Dallas, TX Redevelopment of bakery facility Campus expansion Duke Durham, NC 1.3 million sq. ft. (building only) Recreational Equipment Factory store Danner Boots Portland, OR 59,000 sq. ft. (building only) Paddle craft production Johnson Outdoors Old Town, ME N/A Custom skis Wagner Custom Skis Telluride, CO N/A Sports research lab New Balance Boston, MA 3,000 sq. ft. (building only) SOURCE: IronWolf
It should be noted that Business Oregon’s database reflects only a subset of overall activity in this market, with many firms making decisions without contacting the agency, or working more directly with regional economic development agencies such as EDCO.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 54 of 102 Over the previous two years Central Oregon has seen a total of 53 major recruitment leads evaluate the region. The majority of leads ended quickly as the region did not meet the firm's minimum criteria. Most commonly, the region missed on lack of Interstate highway transportation routes, lack of large acreage parcels, or specific infrastructure limitations. However, the region did make it to the visitation process in four of the 15 instances it passed the first criteria round with one, the Facebook placement, actually locating in the region.
FIGURE 23: SUMMARY OF INDUSTRIAL RECRUITMENT LEADS RECRUITMENT LEADS FOR CENTRAL OREGON June 2008 ‐June 2010 Total Leads 53 Central Oregon Did not Make Minimum Criteria 37 of 53 Made Minimum Criteria 15 of 53 Got to the Site Visit State 4 of 53 Firm Located in the Region 1 of 53 SOURCE: EDCO and Business Oregon
As noted previously in this report, Central Oregon’s lack of appropriate sites largely precludes it from competing for many prospective leads at it is unable to meet the minimum criteria specified.
VI. Assessment of Potential
A. Site Need Characteristics
Site needs for the targeted large lot industrial users are inherently difficult to assess based on the high level of uncertainty in industrial recruiting. Site requirements for specific industries are discussed in this section, but there are a great number of site requirements that are generally common among most major industrial users.
Business Oregon maintains a matrix of site needs for major industry sectors that they are actively recruiting. While the matrix is not limited to large lot users, the requirements outline provide guidance with respect to site requirements by major industry group. The following table summarizes key site characteristics required and preferred by several major development types. While key characteristics are often listed as preferred, these may be required by specific firms or used as screening variables to differentiate competition. The Central Oregon region expresses a desire to maintain a competitive portfolio of sites, which would imply sites having preferred as well as required characteristics.
A more generalized summary column is included, showing large lot site requirements. This recognizes that while one may target specific industries, the nature of large lot demand and firm characteristics is highly variable. The generalized site requirements summarize key characteristics that are broadly valued by the identified industries.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 55 of 102 FIGURE 24: INDUSTRIAL DEVELOPMENT PROFILE MATRIX7
7 Business Oregon and Johnson Reid
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 56 of 102 As outlined in the preceding table, site requirements can be grouped into several broad categories. The following is a brief summation of the basic categories of site requirements:
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 greater flexibility, as they can meet large site needs as well as providing the ability to be subdivided. • 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 Interstate Highway Major Arterial o Rail o Marine Port o Airport General Aviation Commercial International • 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 labor market Housing options for workforce and executives
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 57 of 102 SPECIAL CONSIDERATIONS • Availability ‐ Owner willing to sell at market consistent price • Ownership – Willingness to hold, front infrastructure investments • Flexibility – Ability to meet a variety of demands • Site Certification – Not necessary, but criteria should be at least inclusive of the certification criteria • Funding – Viability of funding necessary infrastructure to support development
Sites designated to meet the regional demand for large lot industrial uses should be able to meet most of these criteria where practical. While physical and workforce issues cannot be addressed by actions of an individual jurisdiction, 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.
Outside of size and configuration, the following are key characteristics associated with a competitive land supply for Central Oregon, which should be considered as the criteria under which sites are evaluated to meet identified needs. This list of criteria reflects input from EDCO.
Availability: The site must be under ownership of an entity that is willing to sell the site at market‐appropriate pricing. Sites controlled by unmotivated or unrealistic owners are of little use for the stated community economic development objectives.
Infrastructure: Utilities – Municipal water and sanitary sewer, electric power, natural gas and telecom in capacities needed for specific companies or industries are critical. The ranking and magnitude needed for each varies from industry to industry. If nearly all utilities noted above are not in place or proximate to the site, and without some existing unused capacity, most companies will not consider a community (or that site at least) further. Most private businesses, even large ones, are not coincidentally experienced developers, and even with experience their timelines for projects are such that they are unwilling and/or unable to wait while major infrastructure projects are executed by public sector entities.
Transportation – Most projects, with a few exceptions, have significant transportation and logistics aspects. It is important to note that the current access approval process in Oregon (whether on a state highway or not) is a significant barrier to economic development in general and large lot development specifically. The Transportation Planning Rule (TPR) and relationship with LCDC approval is specifically creating the greatest problems for land development in the Central Oregon region.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 58 of 102 Workforce: Throughout the tri‐county area, the question for larger projects is first and foremost about quantity of available workers. Bend or the Deschutes County MSA is often the smallest area in the field of consideration during a site selection process. Quality can also be an issue, but at the end of the day, communities have little influence on either, at least at the point when companies come looking. The current unemployment statistics, which indicate an available workforce, could indeed make Central Oregon attractive to prospective employers if there are available sites to accommodate them.
Education & Training: Some companies are keenly interested in higher education opportunities both for the overall workforce and continuing education of their employees. That the Central Oregon region has been underserved for both higher education and training opportunities is a factor noted by several large projects in the past as a concern.
Incentives: While Oregon is not a “big player” in the incentives game nationally, the state does have in place several incentives that favor large, capital intensive projects. Specifically, few areas have the type of property tax incentives Oregon offers that can exempt these taxes for 3‐15 years. Nearly all Central Oregon industrial areas have access to these incentives through the enterprise zone and/or Strategic Investment Program. At the same time, Oregon does not have the type of payroll or jobs‐based incentives available as in other places in the country.
B. Gross Land Demand (Short‐Term Only)
From an economic development perspective, Central Oregon seeks to offer a range of readily developable sites that are supportive of regional and statewide economic development objectives, as well as competitive with alternative regions.
The demand for large industrial sites within Central Oregon cannot be derived using typical employment projections by industry, extrapolating future anticipated growth patterns based on historical patterns. Establishing and maintaining a competitive large lot industrial inventory is intended to expand upon the range of potential economic development opportunities that Central Oregon can compete effectively for. Central Oregon as a region will be competing for large lot recruitments within a broader context that will likely include Idaho, Washington and Northern California. The following table provides a profile of firm changes by size of enterprise within this broader area over a one year period.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 59 of 102 FIGURE 25: BIRTHS, DEATHS, EXPANSION & CONTRACTION OF FIRMS, 2006‐2007
As shown in the table, firms with 500 or more employees represented 14% of total firms in 2006, but 47% of total employment. Firms over 100 employees represented 19% of firms and 62% of total employment. While the net change in establishments in these size ranges is significant, the number of births (new firms) exceeds the net change in establishments by 384%. For firms with 500 or more employees, births exceed the net change by 554%. Firms primarily become prospective recruitment targets when they are formed or find their existing facilities or business environment inadequate. As a result, the number of births (which can include new firms as well as firms expanding into a new classification) is a key indicator of the depth of potential market demand. The following table summarizes a profile of firms by size range in the Western Unites States in 2008. This shows close to 27,000 firms with 100 or more employees, of which 10,800 are in industries that are historically considered to be industrial oriented. The nature of industrial space usage is highly variable, and many industries not historically associated with industrial space now utilize this type of space. An example of this would be industries previously categorized under information, which would include major employers that have recently located on industrial space such as Facebook and Google.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 60 of 102 FIGURE 26: PROFILE OF FIRMS BY SIZE RANGE AND INDUSTRY, WESTERN UNITED STATES, 2008
A similar profile for Central Oregon shows a total of 70 firms with more than 100 employees. This represents 0.9% of total firms in the area. If the regional profile was consistent with the Western United States, with 2.2% of firms having 100 employees or more, the region would have a total of 162 firms of this size. For firms having 500 employees or more, this number would increase the firm total from 7 to 17 in Central Oregon.
FIGURE 27: PROFILE OF FIRMS BY SIZE RANGE AND INDUSTRY, CENTRAL OREGON, 2008
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 61 of 102 Firms sized at 500 employees or larger can be a general proxy for large lot industrial site demand. The Central Oregon region currently accounts for 0.27% of firms of 500 employees or more in the Western United States. The ratio of large firms in Central Oregon relative to the overall number of firms (0.09%) is less than half the ratio in the broader Western United States (0.21%). Using the current profile of firms by size in the Western United States and Central Oregon, combined with birth and expansion patterns summarized in Figure 25, Johnson Reid can generate a model of annual large firm location activity in the region.
FIGURE 28: ESTIMATED ANNUAL LARGE FIRM LOCATION ACTIVITY
Assuming Central Oregon retains its current mix of firms, one could expect average annual large firm activity of 3 location decisions per year, or 15 over a five year horizon. Not all of these will require new sites, as many will be able to expand at existing locations or locate in vacant or underutilized existing facilities. If Central Oregon’s share of large employers mirrored its share of overall employment, the level of annual estimated activity would increase to 7 firms. It should be noted that the demand for large lot industrial land is also a function of supply. In other words, if no sites are available to accommodate these users the region will get none of these users. What is modeled is a prospective demand, assuming that a competitive inventory is available and maintained, allowing the region to capture a “fair share” of market activity.
Economic recruitment benefits from some degree of market choice. Firms evaluating prospective locations are a more likely to consider Central Oregon if multiple appropriate sites can be seen in a single trip. As outlined in the vision statement, the region is hoping 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
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 62 of 102 site selectors prefer to have multiple options before physically visiting an area such as Central Oregon.
Business Oregon is mandated by ORS 197.717 (2) to “provide a local government with state and national trend” information to assist in compliance with ORS 197.712 (2)(a).” The department has reviewed the Central Oregon area, and made the following recommendations:
Given its current size and expected growth, it is not unreasonable to assume that the region being examined as part of the current Central Oregon Large Lot Economic Opportunity Analysis should have a mix of large lot sizes for potential employers and site selectors to choose from. Such a mix would have at least multiple ready sites in the 200, 100 and 50‐acre plus acreage ranges in order to meet expected 20 year land supply needs.
Working with EDCO and Business Oregon, the following matrix of large‐lot site needs has been developed.
FIGURE 29: RECOMMENDED COMPETITIVE LARGE LOT INDUSTRIAL INVENTORY 50‐100 ACRES 100‐200 ACRES 200+ ACRES TOTAL SHORT TERM Number of Sites 3 2 1 6 Jurisdictions 3 2 1
The preceding table summarizes what has been determined to be a regionally and nationally competitive portfolio of large industrial lots. 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.
Maintaining an appropriate short‐term available lot supply that is readily developable is a key priority for the region, and strongly affirmed in the community vision. Projecting the demand for industrial land in this size range is inherently highly speculative, as it is a thinly traded and highly competitive sector. In other words, with fewer transactions and multiple areas competing for these transactions, there is an unusually high degree of uncertainty in any forecast. The degree of uncertainty can be offset by emphasizing short term ready supply, with a mechanism to replace supply in a timely manner when needed. While this may be achieved during a periodic review, there should also be provisions for more rapid response if the market supports it.
In the professional opinion of the economic development professionals contributing to this analysis, a competitive portfolio of industrial sites would include a collection of large industrial parcels in some selected communities, and a major, centrally located large‐scale development near the region’s geographic and workforce center, and where key infrastructure is in place and has excess capacity. This would be optimally located on the north end of Bend, but infrastructure challenges will make this choice problematic for at least the short‐term. The next
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 63 of 102 most optimal location is on the southern end of Redmond, east of Highway 97. The area has few neighbors, possible secondary transport access and most of the municipal and franchise utilities with excess capacity.
Another three large lot parcels available throughout the region is also recommended as part of a competitive portfolio. These sites would be 100 to 200 acres in size, and located in three distinct jurisdictions. Recommended jurisdictions include Bend, Prineville and La Pine. The City of Madras has available land within its current UGB for a large lot industrial user. What is important from an economic development perspective is maintaining a short‐term 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.
The following are additional factors that should be considered in establishing and maintaining a short‐term competitive supply:
• It should be noted that while Johnson Reid is evaluating large lot site needs as independent of the need for smaller sites, the targeted employers are often “game changers”, which will generate a range of associated site needs within the region for suppliers and support businesses. While likely smaller in scale, the ability of the region to serve associated industrial growth is seen as critical.
• Land banking is a relatively common pattern in large lot industrial land use. Firms often seek sites that are well in excess of their immediate needs, but capable of supporting later expansion of their operations. While land is being “banked” by an employer is not developed, this sequestered land is not available to the market and subsequently of limited use in economic development efforts. In effect, banked land should be treated as though it were held by an unwilling/uncooperative seller, as per earlier discussions in this report. While it may serve longer term needs, it should not be counted towards meeting short term needs.
• The ability to cost effectively serve sites with adequate infrastructure should be a key determinant in their usefulness for economic development. Industrial land is characterized by relatively low values per square foot, providing limited ability to be burdened with off‐site infrastructure costs. In addition, even when fiscally viable, infrastructure provision may only be available in a time frame that is inadequate to meet identified needs. Certain industrial users can have significant offsite impacts associated with their operations. These operational externalities may make cause conflicts with neighboring uses, limiting the appropriate locational options for these types of firms.
• While the research indicates a range of large lot site sizes and characteristics are needed within Central Oregon, a degree of flexibility should be maintained. A property that would allow for a range of partitioning options for large lot industrial would be
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 64 of 102 considered to be highly desirable. As an example, a 400 acre site that can be subdivided into parcels as small as 50 acres would have the ability to accommodate either a very large user, or a series of smaller users. This would provide more flexibility in terms of potential configurations than two 100 acre sites and four 50 acre sites.
Maintaining a competitive short‐term inventory of sites in the region will require regular replacement of sites as consumed, with modifications made to determinations of appropriate inventory based on available information and periodic reviews. The short‐term available inventory is most critical in economic development efforts.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 65 of 102 APPENDIX: Examples of Local Governments Proactively Planning for Industrial Development
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 66 of 102 INDUSTRY FOCUS: DATA CENTERS
Community: Quincy, Washington (Grant County) Population: 2000: 5,044 | 2010: 6,750 | % Change: +33.8% Number of 50+ acre industrial sites absorbed 1990‐2000: 0 Number of 50+ acre industrial sites absorbed in past decade: 5 Number of 50+ acre industrial sites now available: 6
Key Industry Site Location Factors: Proximity to large capacity, low cost power Access to municipal water and sewer (large capacity) Mission critical telecom infrastructure (speed and capacity) Large acreage industrial sites (with proximity to utilities) Climate conducive for lower cost cooling Meaningful incentives, tax climate
Economic Outcomes In 2004, the rural town of Quincy, WA was essentially 100% agriculturally based economy in a county with some of Washington’s highest chronic unemployment rates. The community had no technology companies operating there and, as a result, no local technology jobs. Poverty rates also ranked among the highest in the state. A key asset the community did have that aligned well for the data center industry was the fact that it had over 500 megawatts of stranded electric power capacity resulting from closure of several foundries within Grant County. Rates set by the local PUC were also very attractive for large users – among the lowest in the country. The community and county overall had numerous large industrial sites that could accommodate significant projects such as Microsoft’s 1.5 million square foot data center facility.
Today, there has been an 8 percentage point improvement in the unemployment rate and six major technology companies (Yahoo!, Microsoft, Dell, Intuit, T‐Mobile & Ask.com) have a presence in Quincy.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 67 of 102 While critics (most of which are outside community) make arguments that the jobs produced for the electric power used is a poor economic development tradeoff, the reality is that these centers would be built somewhere to accommodate market demand for mobile devices, online computing capacity and Internet‐based software and professional services. The community, via its local and professional economic development organizations, had tried to attract other industries with little success. The data center industry has brought sustained economic activity that is benefiting most residents.
Other economic impacts in Quincy and Grant County, WA include:
$2.9+ billion in facility construction and IT infrastructure investment 275 average construction jobs since 2004 (peaks exceeding 600) 200 full time direct hire positions with technology companies 250 full time contract employees for facility maintenance (ongoing)
Capital investments alone from data center development have added considerably to the local property tax base, which supports local government, schools and special districts.
Of importance was the fact that Washington’s land use system was able to accommodate six new large acreage industrial users in a very concentrated timeframe. Oregon’s current land use law would never allow a community of 6,000 residents to have such an inventory, especially given a historical lack of demand for such development property. Nonetheless, the availability of this inventory was integral in the area attracting major new employment concentrations.
INDUSTRY FOCUS: HIGH TECHNOLOGY
Community: Hillsboro, Oregon (Washington County) Population: 2000: 70,187 | 2010: 91,611 | % Change: +30.5% Industry Target: High Technology Number of 50+ acre industrial sites absorbed 2000‐2010: 6 Number of 50+ acre industrial sites now available: 5
Key Industry Site Location Factors: Proximity to large power capacity at low cost Access to municipal water and sewer (large capacity) Large acreage industrial sites (with proximity to utilities) Proximity to technical, scientific talent (existing critical mass & higher education) Meaningful incentives, tax climate
Economic Outcomes Home to Intel, Hillsboro has been planning for and working toward growth of its high technology employment base for more than 25 years. Utilizing a large and renewable resource
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 68 of 102 from its Coast Range watershed, Hillsboro offers the semiconductor, bioscience and renewable energy equipment manufacturing industry a valuable resource for process water. Additionally, the community is strategically located to tap significant electric power transmission capacity in the Portland metro area, which is also another common thread in high technology manufacturing.
Intel opened its first Hillsboro facility, Hawthorn Farm in 1979. This campus was followed by the opening of the Jones Farm location near the airport in 1982 and the Ronler Acres location in 1994. The Ronler Acres development was the result of a substantial effort by the City to assemble a site with multiple ownerships to provide for a large lot industrial opportunity. Along with several smaller campuses, Intel Oregon had approximately 15,500 employees, making it the largest Intel site and the largest private employer in Oregon. Intel is directly or indirectly responsible for more than 100 spin‐off high technology companies and has played a leading role in attracting other national and international high technology manufacturers to the Hillsboro area (TOK America, Tokai Carbon, Lattice Semiconductor, FEI Company, Sun Microsystems, Epson, etc.).
Significant capital investments in infrastructure and physical plant characterize these high technology companies. For these reasons, large, well‐served industrial sites are required. Recent examples include pharmaceutical giant Genentech (75 acres), Solar World (93 acres), and TriQuint (32 acres). In 2007, SolarWorld AG acquired the Komatsu silicon wafer production facility in Hillsboro. The Komatsu site is approximately 93 acres total, and included 480,000 sf manufacturing and approximately 60 acres of excess land for additional fabs or support buildings. SolarWorld has since built an additional 500,000 sf module manufacturing facility on the site. TriQuint Semiconductors has a 32‐acre corporate campus in Hillsboro, which manufactures semi‐conductors (4” to 6” wafers) and offers integrated technologies for wireless and base station communications applications. Complete engineering design, manufacturing, testing, research and development are included at this facility. TriQuint has completed thee expansions at their Hillsboro HQ since 2006.
Genentech
Intel SolarWorld James Farm FEI Campus Intel Ronler Acres TriQuint Campus Semiconductor
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 69 of 102 Hillsboro has continued to plan for future industrial development of its high technology cluster. The City has strategically focused industrial development efforts in the northern section of the City and is supporting that decision through zoning, industrial infrastructure, and transportation access. Despite having approximately 850 additional buildable acres within the City’s North Industrial Area (Shute, Evergreen, and Helvetia Industrial Areas), the sites have been hampered by multiple ownership patterns, wetlands and natural resource issues, and lack of infrastructure.
The City has completed a strategy intended to prepare approximately 700 acres of vacant land in the North Industrial area for development. The strategy addresses the key challenges to development in this area including infrastructure concept design and funding; mitigation of wetlands and environmentally sensitive lands; and land assembly (with the goal of providing a 100 acre site that is truly “shovel ready”). The city also realizes that high quality and reliable infrastructure (roads, water, sewer, electricity) is necessary. Millions of dollars are being invested, or are programmed for investment by local utility suppliers in phases over the next 10 years to accommodate development of these key industrial lands.
While Hillsboro is one of the best positioned communities from an industrial land perspective, only two or three other options exist for large lot users in within cities in the greater Portland area, a metro with nearly 2 million residents. That Hillsboro is preparing for the future with an inventory of large‐lot industrial land positions it for future success. It is hard to imagine how the community could accommodate additional large technology‐based companies (either through recruitment or from organic growth of existing businesses) without such an inventory.
Community: Austin, TX (Austin County) Population: 2000: 656,562 | 2010: 790,390 | % Change: +20.4% Number of 50+ acre industrial sites now available: 11
Key Industry Site Location Factors: Proximity to large power capacity at low cost Access to municipal water and sewer (large capacity) Large acreage industrial sites (with proximity to utilities) Proximity to technical, scientific talent (existing critical mass & higher education) Meaningful incentives, tax climate
Economic Outcomes Austin is considered to be a major national center for high technology development and manufacturing. Among its largest employers are Dell, Freescale Semiconductor, IBM, Apple, Advanced Micro Devices, Silicon Labs, Hewlett‐Packard, Google, AMD, Applied Materials, Cirrus Logic, Cisco Systems, eBay/PayPal, Bioware, Intel, Samsung, Silicon Laboratories, Oracle and
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 70 of 102 Rackspace. The proliferation of technology companies has led to the region's nickname, "the Silicon Hills", and spurred development that has greatly expanded the city. Austin is also emerging as a hub for pharmaceutical and biotechnology companies; about 85 companies in the bioscience industry are based in Austin. While the presence of some of the companies noted occurs in more intensive developments (high rise buildings in a downtown location), the majority of technology employers in the Austin area have considerable space for their operations.
INDUSTRY FOCUS: WAREHOUSE & DISTRIBUTION
Community: Hermiston, Oregon Population: 2000: 13,154| 2010: 16,795 | % Change: +27.7% Number of 50+ acre industrial sites now available: 8
Hermiston is a progressive, growth‐oriented urban center for an area based economically on distribution warehousing, agriculture, food processing, utilities and other light industry. Centrally located, Hermiston has become a transportation center accessed by Interstate Highways I‐84 (east to west) and I‐82 (north and south) as well as rail and river transportation systems. As well as large properties up to and including a 300‐acre site that is subdividable with railroad spur frontage. The City will work with developers of industrial and commercial business that create job opportunities for local citizens to assist with location of infrastructure to appropriate sites. The Port of Umatilla has helped in the development of industrial parks in the area, and has recently attracted a new Amazon facility on their nearby McNary property.
Key Industry Site Location Factors: Clean water Economical power Transportation access (Interstate and Columbia River) Advanced communications Room to grow
Economic Outcomes
The City of Hermiston strong locational attributes and readily available industrial land supply has supported growth in agricultural processing, utilities and distribution/warehousing. Major employers include: Wal‐Mart Distribution Center – 850 employees Lamb Weston – 700 employees Hermiston Foods (NORPAC) ‐ 500 employees Marlette Homes – 450 employees Union Pacific Railroad ‐ (315 employees) Good Shepherd Health Care System ‐ (358 employees)
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 71 of 102 Community: Morrow County, Oregon Population: 2000: 10,995 | 2010: 11,175 | % Change: +1.6% Number of 50+ acre industrial sites now available: 2,500 subdividable acres
The Port of Morrow has led economic development efforts within Morrow County. The Port serves the industrial community by continually developing its three industrial parks, and offers assistance with financial services. Connections to the local labor market are also provided. The Port offers industrial building sites from 1 to 2,000 acres in size as an economical alternative to metropolitan areas.
Key Industry Site Location Factors: Clean water Economical power Transportation access (Interstate and Columbia River) Advanced communications Room to grow
Economic Outcomes
Building on its reputation as a prominent food processing center, the Port is also home to fiber and seed processing industries, lumber processing and transportation facilities. Port tenants include:
McGinn Brothers Trucking Morrow Cold Storage Devin Oil Oregon Hay Company Oregon Potato Pacific Rock Products Portview Ranches Rivercrest Farms, Inc. Tidewater Terminal Services Vanco Watts Brothers Re‐Pack Facility
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 72 of 102 Community: Reno, Nevada (Washoe County) Population: 2000: 180,480 | 2010: 225,221 | % Change: +24.8%
The greater Reno, NV area has grown over the past two decades into a significant regional distribution center for the West Coast. Its geographic location provides optimal service to a six to nine‐state area, but most strategically to California – the most populous and largest state economy in the United States. Warehouse and distribution is a major industry and source of employment in the Reno‐Sparks area, comprising nearly 13% of all jobs. The area has established a large Foreign Trade Zone (FTZ) of nearly 7,500 acres and many large‐scale distribution centers have a presence in the Reno‐Sparks area including:
PetSmart (990,000 sf) MEPT USA (700,000 sf) Kmart JCPenney Toys R Us (300,000 sf) Barnes & Noble (642,000) Husqvarna US Ordinance Patagonia (171,000 sf) Walmart (890,000 sf) Urban Trends (clothing) – 430,000 sf Sherwin‐Williams Starbucks (160,000 sf) Snap‐on Tools (120,000 sf)
Several of the large scale distribution centers have located in the Tahoe‐Reno Industrial Center (TRIC), a 110,000 acre industrial park is among the largest in the nation. Since 2000, TRIC has attracted 83 companies and construction of nearly five million square feet of warehouse and industrial buildings. The park also markets that it has 900 megawatts of power available for companies. The development is well served with rail and highway access, but prior to its conception, the rural area east of Reno had no historical industrial development – giving credence to the “build it and they will come” strategy employed more famously at the 7,000 acre Research Triangle in North Carolina.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 73 of 102 Community: Salt Lake City, Utah (Salt Lake County) Population: 2000: 898,387 | 2010: ,029,655 | % Change: +14.6%
Key Industry Site Location Factors: Strategic geographic location for target metropolitan markets Access to multiple interstate and rail transportation systems Availability of low cost, large acreage land Meaningful incentives, tax climate
The Salt Lake City, UT area is geographically positioned to serve an eleven‐state area in the Western U.S. with one day truck service – making it a hub for the nation’s distribution industry. Key factors supporting Utah’s status as a distribution destination include an extensive freeway system with more than 43,155 miles of highways and roads; a major rail system with more than 1,400 miles of railroad track stretching throughout the state; an international airport handling over 550 million pounds of air cargo and air freight annually. Salt Lake City is also a Customs Port of Entry, serving as a full‐service port city. Utah’s low operating costs and available labor force make Utah an attractive location for the distribution industry. Over 1,500 trucking companies have a presence in the state.
A long list of companies have large scale distribution operations in the greater Salt Lake City area, including:
The Hershey Company (chocolate food products) – 600,000 sf warehouse Overstock.com (consumer products) ‐ 950,000 sf warehouse Sephora USA (beauty products) ‐ 320,000 sf warehouse U.S Foodservice (wholesale food products) – 265,000 sf warehouse Huish Detergents (private label detergents) – 200,000 sf warehouse Icon Health & Fitness (exercise equipment mfg. & distribution) – 300,000 sf facility Lifetime Products (sports equipment mfg. & distribution) ‐ 2.6 million sf complex Nestle USA (packaged frozen foods) Merit Medical Systems (medical devices, supplies) Nu Skin Enterprises (beauty products) – est. 400,000 sf warehouse
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 74 of 102 RC Wiley Home Furnishings (furniture manufacture and distribution) 860,000 sf warehouse ICU Medical (medical devices and supplies) – 450,000 sf facility (140,000 sf distribution) Walmart (large scale retailer) Easton (sporting goods) – 140,000 sf distribution
Salt Lake City and surrounding communities have planned for growth of this industry, which has seen considerable expansion in the past two decades. Nearly all of the distribution centers noted above require large scale industrial parcels for initial buildings and future growth.
DESCHUTES COUNTY CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS Redmond Ord. #2013-15 – Page 75 of 102
FINDINGS OF THE REDMOND CITY COUNCIL REGARDING TA-13-6, REDMOND URBAN AREA COMPREHENSIVE PLAN CITY OF REDMOND ORDINANCE #2013-15
AN AMENDMENT TO THE REDMOND URBAN AREA COMPREHENSIVE PLAN TO ADOPT THE CENTRAL OREGON LARGE LOT INDUSTRIAL LAND NEED ANALYSIS AS A REFERENCE DOCUMENT, WITH ASSOCIATED COMPREHENSIVE PLAN GOALS AND POLICIES ADDED TO CHAPTER 9, ECONOMIC DEVELOPMENT AND CHAPTER 14, URBANIZATION
FILE NO. TA 13- 6
REQUEST: A Legislative Amendment to the City of Redmond Comprehensive Plan, to adopt the Central Oregon Large Lot Industrial Land Need Analysis (Analysis) as a reference document, with associated Comprehensive Plan goals and policies added to chapter 9, Economic Development and chapter 14, Urbanization.
APPLICANT: City of Redmond 716 SW Evergreen Avenue P O Box 726 Redmond, OR 97756
LOCATION: The proposal is not site specific.
STAFF: James Lewis, Planning Manager Heather Richards, Community Development Director
HEARINGS Redmond Planning Commission BODY: Redmond City Council
DATE& TIME: Planning Commission – November 5, 2013 at 6:30 p.m. LOCATION: City Council – December 10, 2013 at 7:00 pm City Council Chambers, 777 Deschutes Avenue, Redmond, Oregon
I. APPLICABLE CODE SECTIONS AND CRITERIA:
The Redmond Development Code, Article III, Land Use Procedures.
The Redmond Urban Area Comprehensive Plan, including: -Chapter 1, Citizen Involvement -Chapter 2, Land Use Planning -Chapter 9, Economic Development
Redmond Ord. #2013-15 – Page 76 of 102
-Chapter 14, Urbanization
Oregon Revised Statutes (ORS) – ORS 195.025, 197.250, 197.610, 197.763.
Oregon Administrative Rule (OAR), LCDC, Division 15, Statewide Planning Goals and Guidelines – OAR 660-015-0000 (as applicable).
Not Applicable Oregon Administrative Rule (OAR), LCDC, Division 12, Statewide Planning Goals and Guidelines – OAR 660-012-0000 (specifically OAR 660-012-0060) is not applicable because the proposal is not property specific and does not include any zoning changes, or changes to the allowable uses in a zone that would affect the number of trips or functional classifications of roads/streets in Redmond.
II. BACKGROUND & HISTORY: In 2010 Deschutes County received a grant from the State Department of Land Conservation and Development to evaluate Central Oregon’s opportunities and competiveness to recruit new and grow locally established businesses with large scale development needs. This study, conducted by a consultant working for Deschutes County under the grant, conducted a Regional Economic Opportunities Analysis (REOA). The REOA project aimed to determine if such an industrial land demand exists in Central Oregon and, if so, to identify the deficiency. The study attempted to document an unmet twenty year land need for large lot industrial sites in the region. It also concluded that competing as a cohesive region can allow Central Oregon to market a larger available work force, the size of which is often a key locational criterion for firms. According to the REOA, the shared economic function within Central Oregon supports a regional approach to economic development, particularly with respect to large traded sector industries.
Subsequent to the REOA (and as an outfall of an appeal during the adoption process of the REOA by Deschutes County), a settlement agreement between Deschutes County and the appellant (1,000 Friends of Oregon) resulted in new Administrative Rules being adopted which provide the policy framework for the tri-county region to coordinate as a single entity to promote large-lot industrial employment sites that best serve the region as a whole (to create family-wage jobs, regional economic diversification and place Central Oregon on the map for regional, national and international industrial recruitment). Utilizing the new Administrative Rules, Central Oregon can now respond to the short term need for up to nine competitive and diverse vacant, developable large lot industrial sites. These sites can enable site selectors representing potential industrial businesses to consider Central Oregon as a viable area for new economic development. As the process of establishing the large lot industrial sites unfolds, the Central Oregon Intergovernmental Council (COIC) has agreed to manage the distribution of sites among the various jurisdictions through intergovernmental agreements.
An additional outfall of the aforementioned settlement agreement is that the product of the analysis being conducted by Deschutes County under the grant would not be called an
Redmond Ord. #2013-15 – Page 77 of 102
“Economic Opportunities Analysis” as that term is defined within Oregon land use laws. Rather, the settlement agreement called for specificity in the report so that it focused on policy concepts on Central Oregon’s short term need for large lot industrial sites and how those sites could later be incorporated into existing UGBs (through specific direction into the State Administrative Rules – specifically, OAR 660-024-0045). The resulting document is the Large Lot Industrial Land Need Analysis that is being considered through this proposed amendment process.
III. PROPOSAL: A Legislative Amendment to the City of Redmond Comprehensive Plan, to adopt the Central Oregon Large Lot Industrial Land Need Analysis as a reference document, with associated Comprehensive Plan goals and policies added to chapter 9, Economic Development and chapter 14, Urbanization.
IV. JURISDICTIONAL COORDINATON: As described herein, the creation of the Central Oregon Large Lot Industrial Land Need Analysis has been coordinated through Deschutes County (under its statutory coordinating authority – ORS195-025 (1)), with the participation of Crook and Jefferson Counties, and the cities of Bend, La Pine, Redmond, Sisters, Prineville and Madras. Pursuant to a settlement agreement that resulted from an appeal of the initial adoption of the REOA (which was the predecessor to the Central Oregon Large Lot Industrial Land Need Analysis) by Deschutes County, all jurisdictions willing to participate within the large lot industrial land use designation process must adopt the Analysis and corresponding policies. Thus far, the Analysis has been adopted by Deschutes County (as the initiator/coordinator for the project), as well as Crook and Jefferson Counties. For consistency purposes, the City of Redmond has continued coordination with Deschutes County and the other jurisdictions regarding the adoption process, including the substance of the actual Comprehensive Plan policy text and the findings included herein to support the text. Thus, there are multiple cross references to the adoption process by Deschutes County (under their statutory authority) as they apply to the adoption by the City of Redmond (and the overall coordination inherent in this project) as described herein.
V. EXHIBITS: The following exhibits make up the record in this matter:
1. Proposed Findings and Conclusions included herein. 2. The existing and proposed text (Policies) of Chapters 9 (Economic Development) and 14 (Urbanization) of the Comprehensive Plan. 3. The Central Oregon Large Lot Industrial Land Need Analysis, November 20, 2012 4. Oregon Administrative Rule 660-024-0045, authorizing the Industrial Designation/UGB expansion to meet large lot industrial land needs. 5. April 13, 2012 Letter from the Federal Aviation Administration. 6. Notice of Planning Commission Public Hearing - Redmond Spokesman- October 23rd, 2013 (file). 7. Notice of City Council Public Hearing - Redmond Spokesman- November 20th, 2013 (file). 8. Planning Commission Work Session/Public Hearing Staff Reports.
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9. City Council Work Session/Public Hearing Staff Reports.
VI. SUMMARY:
1. The proposal includes a Legislative Amendment to the City of Redmond Comprehensive Plan, to adopt the Central Oregon Large Lot Industrial Land Need Analysis as a reference document, with associated Comprehensive Plan goals and policies added to chapter 9, Economic Development and chapter 14, Urbanization.
2. The Analysis aimed to determine if a large lot industrial land demand exists in Central Oregon and, if so, to identify the deficiency. The study attempted to document an unmet twenty year land need for large lot industrial sites in the region. It also concluded that competing as a cohesive region can allow Central Oregon to market a larger available work force, the size of which is often a key locational criterion for firms.
3. The intent of the proposed amendments will enable the City of Redmond to identify potential sites per the Analysis, and expand the UGB under the authority of OAR 660-024-045.
4. By adopting the Analysis and corresponding Comprehensive Plan policies, Redmond will be participating in the spirit of cooperation with other Central Oregon jurisdictions as outlined in the Administrative Rule, and establishing Redmond as a viable community in which a large lot industrial site can be considered and eventually established.
VII. FINDINGS AND CONCLUSIONS:
1. In conformity with all applicable State of Oregon Statutes whenever they are determined to be applicable:
The State Statutes that directly apply to this application include ORS 195.025, Regional Coordination of Planning Activities, alternatives; ORS 197.250, Compliance with Goals Required; ORS 197.610, Local Government Notice of Amendment or New Regulation; ORS 197.763, Conduct of Local Quasi-Judicial Land Use Hearings; Notice Requirements; and, ORS 917.712, Commission duties; comprehensive plan provisions; public facility plans; state agency coordination plans; compliance deadline; rules. These statutes are addressed below in the order presented above.
A. ORS 195.025 – The applicable subsections are addressed below.
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
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entire area of the county.
Finding: Deschutes County, through its governing body, exercised its statutory coordinating authority to address a short-term regional need for large-lot industrial sites by conducting the Central Oregon Large Lot Industrial Land Need Analysis. This authority was intended to assure there is an integrated comprehensive plan between Deschutes County and its respective cities by encouraging Bend, La Pine, Redmond, and Sisters to address a short-term specialized employment land need of six industrial sites, 50 acres or larger in three different jurisdictions. Aided by new OARs (660-024- 0045(5a) and 660-024-0045(7)), Deschutes County is fulfilling its regional coordination responsibilities by formalizing, through policies, a regional governance and land use planning framework with COIC.1
COIC serves as the Economic Development District representing Crook, Deschutes and Jefferson counties as designated by the Economic Development Administration.2 Deschutes County has also applied its coordination authority to cities as well, for those willing to fulfill this regional short-term employment need, consistent with Oregon’s Statewide Planning Program. Deschutes County’s plan amendment provided for the policy framework for the tri-county region to coordinate as a single entity promoting large-lot industrial employments sites that best serve the region as a whole to create family wage jobs, region economic diversification and place Central Oregon on the map for regional, national and international industrial recruitment. Crook and Jefferson counties have also adopted similar amendments to their comprehensive plans, clearing the way for the municipalities in the region to adopt and rely on the Analysis to address the short-term need for large-lot industrial sites. The City of Redmond has now adopted the same analysis and corresponding Comprehensive Plan policies under this authority.
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 voluntarily initiated coordination with Crook and Jefferson counties and the cities of Prineville, Madras, Bend, Redmond Sisters and La Pine as authorized in ORS 190.003 - 190.620. Deschutes County’s intent was to assure that Crook and Jefferson counties also exercise their coordination authority with parallel plan amendments so there is a collective and regional response to an unprecedented opportunity to establish a short-term supply of large-lot industrial sites in Central Oregon. These efforts will ultimately result in the joint adoption of the Analysis, policies, and
1 COIC is a Council of Governments organized under ORS 190 by the three counties and seven cities of Central Oregon. COIC is governed by a 15-member board made up of elected officials appointed by each of the member governments and appointed representatives of key economic sectors. OAR 660-024-045(5a) requires local governments to enter into an intergovernmental agreement with COIC. OAR 660-024-045(7) describes COIC’s coordination process. 2 Central Oregon Comprehensive Economic Development Strategy, Approved by the Central Oregon Community Investment Board, November 29, 2007, 5. One function of the Economic Development District is developing and maintaining and updating the Comprehensive and Economic Development Strategy (CEDS). The CEDS is the result of a local planning effort, and serves as a guide for regional growth.
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findings by all Counties, and make the cities therein also eligible to adopt the Analysis.
B. ORS 197.250, 197.610, 197.763 - The applicable City of Redmond Development Code standards (sections 8.1100 through 8.1125, Legislative Procedures), were developed in compliance with these applicable State Statutes regarding noticing and public hearings. Applicability of the Statewide Planning Goals is addressed in greater detail under section “3.” of these FINDINGS below – those findings, incorporated by reference herein, also demonstrate compliance with the applicable Statutes listed above.
ORS 197.250: Finding: Notwithstanding the Statutory requirements addressed herein, the Oregon Administrative Rules (OAR) – the Statewide Planning Goals - also implement the Statutes. The applicable Rules are addressed in the ensuing review.
ORS 197.610: Finding: With regard to the Statutory noticing requirements referenced above, notice of the proposed amendment has been provided to DLCD and advertised in the local newspaper (public notice) as required by City Code and State Statute.
ORS 197.763: Finding: With regard to the Statutory public hearing requirements referenced above, this proposal is legislative and not quasi-judicial in nature However, for lack of specific Statutory requirements governing such legislative actions, Sections 8.1100 through 8.1125 of the Redmond Development Code which implement the quasi-judicial Statutory requirements in a similar fashion have been met. Subsequently, the Planning Commission and (ultimately) City Council’s public hearing and review processes meet the Statutory requirements for the purpose of the review.
C. ORS 197.712 – The applicable subsections are addressed below.
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: The City of Redmond is proposing comprehensive plan amendments that include an Analysis that documents Central Oregon’s need for establishing a short-term
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supply of large-lot industrial sites. The Analysis identifies the strengths and challenges of the Central Oregon economy and concludes that the competitive characteristics of Central Oregon can be strengthened through taking a regional approach to large-lot industrial siting (additional findings below include data and findings included in the Analysis).3
The City of Redmond finds that to have a fully-developed program that serves the broadest range of area citizens and businesses, it is critical to be competitive in the segment of economic development that depends on the availability of readily-served, large-lot employment sties. As such, as a matter of policy, the City chooses to work in a coordinated fashion with the three counties and other cities that make up the Central Oregon region and identify and implement a program to create a short-term large-lot land supply that enables Central Oregon to be a competitive region for industrial recruitment. Central Oregon’s traditional industrial base remains active in the local economy, and the region would like to increase its emphasis on industrial employment to strengthen that base. Pursuant to the Analysis, the region's supply of affordable land, low cost utilities, quality of life, and organized economic development landscape makes it an attractive option for growth in many traded sector industries. Additionally, Central Oregon economic development efforts have been negatively impacted by a lack of readily available large-lot industrial sites. 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.
In a structural sense, globalization has changed the way manufacturers conduct business. Cost and efficiency are the central tenants of an increasingly 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.
Deschutes County’s choice to pursue a regional short-term supply of large-lot industrial employment sites as a jurisdictionally coordinated effort is also consistent with Central Oregon’s Comprehensive Economic Development Strategy (CEDS). According to this report, two of Central Oregon’s Long-Term Priority Goals are:
* Goal XIII: Sufficient supply of land affordable for commercial, industrial and residential development. * Goal XVI: Ongoing regional planning is in place to preserve and enhance the region’s economic appeal and effect orderly economic development.
3 Central Oregon Large-Lot Industrial Land Need Analysis. Pages 35; 42-47.
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One of Central Oregon Community Investment Board’s short-term priorities promotes:
* Structures and processes of public and private organizations to effectively create, adapt, foster and sustain economic development in Central Oregon.
Through the CEDS planning process, past regional needs and issues processes, the 2007 infrastructure needs inventory, and through other methods of economic analysis, the following projects, programs and activities have been identified for focus over the next six years:
* Support of industry clusters. * Assist in the retention, expansion and recruitment of secondary wood products, aerospace production and parts, targeted sectors including apparel and sporting goods, aerospace including information technology, renewable energy, light industrial and manufacturing, and research and development.
As noted in the CEDS, new traded sector and investment is critical for building a strong regional economy. A strategy that increases prosperity for all Central Oregon residents in rural and urban communities by balancing, diversifying and developing the region’s economy has been promoted by economic development theorists and practitioners as a critical underpinning of a health community or regional economy. Three objectives promote:
1. Facilitating new job creation and economic diversification through recruitment of diverse new traded-sector companies across all industries that offer family-wage employment; 2. Facilitating new job creation through expansion of existing traded- sector companies across all industries that offer family-wage employment; and 3. Supporting retention of existing traded-sector companies across all industries that offer family-wage employment.
Local trends documenting large lot recruiters visiting Central Oregon are also quite noteworthy. The following list cites this evidence:
* According to Business Oregon, Central Oregon experienced four active recruitments in the past six months looking at industrial lots 50 acres and greater. One firm was looking for a site in the 100 to 150 range, while three have been looking for sites in the 150 to 200 acre range. One firm was lost due to the uncertainty of and land use actions that were required, and the properties proposed were eliminated from consideration and it is not known if the company has reached a final location decision. That search started in the 50-100 lot size and then expanded to the 150-200 lot
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size. The other three are still in the active stage and no additional details can be furnished because of nondisclosure agreements that are in place.4
* The La Pine Industrial Group has had several companies look at our certified 77-acre site in La Pine but the most active prospect was the Ferguson Corporation out of Virginia. They were looking for a site for a Northwest distribution center for their product line of bathroom and other plumbing fixtures. They wanted a site that would accommodate an initial 500,000 sq. ft. of buildings and would be expandable to 1,000,000 sq. ft. Initial employment was to be 200 workers, expanding to 400 in the second phase. There was also a requirement for a rail spur with extensive on-site trackage to move products in and out. They were not sure our site was large enough so Mid-State Electric Cooperative developed a site plan to show that it could meet their specifications.5
* Jon Stark, Redmond Economic Development Manager for Economic Development for Central Oregon described a recruiter recently visiting Redmond.6
* Michael Williams, Oregon Business Development, Industrial Lands Specialist, described recruiters visiting Central Oregon, as well as the heightened interest expressed by companies once Facebook committed to a site in Prineville.7
ORS 197.712 (2)(b) Comprehensive plans shall contain policies concerning the economic development opportunities in the community.
Finding: By adopting the Analysis, the City of Redmond is responding to a specific short-term employment need recognized in OAR 660-024-0045(2a) and identified in the Analysis for large-lot industrial sites. As included in Section “4” of these FINDINGS, the City of Redmond is adopting several regional industrial land policies to comply with ORS 197.712 (2)(b) that recognize Central Oregon’s economic development opportunities for establishing a short-term supply of large-lot industrial sites.
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: By adopting the Analysis and corresponding policies, the City of Redmond is enabling the ability to address an unmet, short-term large-lot industrial land need. As noted in OAR 660-024-0045(4) and the Analysis, there is a demonstrated need for vacant, suitable and available large-lot industrial sites in Central Oregon – Redmond
4 Jerald Johnson, Johnson-Reid LLC, October 21, 2011, 5 5 Lee Smith, General Manager La Pine Industrial Group, October 27, 2011, email. 6 Oral Testimony, Board of County Commissioners public hearing, October 31, 2011. 7 Ibid.
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being among the potentially suitable communities with available sites. The short-term need encompasses six, 50 acre or greater sites, in three different jurisdictions, with two of those sites being between 100 to 200 acres, and one over 200 acres. The Analysis identifies site need characteristics for large-lot industrial sites and recommends a competitive, short-term inventory.8
ORS 197.712 (2)(d) Comprehensive plans and land use regulations shall provide for compatible uses on or near sites zoned for specific industrial and commercial uses.
Finding: City of Redmond Ordinance 2013-15 adopts the Analysis and several regional large-lot industrial land policies into the Comprehensive Plan to comply with the new OARs. Participating cities will need to address this criterion when they propose a large-lot industrial site into their comprehensive plans and land use regulations to demonstrate the use is compatible on or near industrial and commercial zones. It is important to note that based on the new OARs adopted by LCDC, a participating city that designates a large-lot industrial site is required to apply a regional large-lot industrial zone or overlay zone to it in order to protect and maintain the site for regional large lot purposes.9 The City of Redmond will do so if/when any such sites are designated.
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.
Finding: Based on the new OARs, a participating city may amend its comprehensive plan and land use regulations, including its Urban Growth Boundaries (UGB), in order to designate a large-lot industrial site in accordance with OAR 660-024-0045(8). By adopting the Analysis and corresponding policies, the City of Redmond will be poised to provide large lot industrial sites allowed under the OARs.
Conclusion: Based on the findings above, the proposed Comprehensive Plan amendments conform to applicable State statutes.
2. In conformity with State of Oregon Administrative Rules whenever they are determined to be applicable:
8 Central Oregon Large-Lot Industrial Land Need Analysis, pg’s, 52-56; 62. 9 OAR 660-024-0045(9), (10).
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The following divisions of Chapter 660 of the Oregon Administrative Rules are applicable to the proposal as listed herein.
A. OAR 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: The preparation and adoption of the Analysis track is different from an EOA first because OAR 660-024-0040 provides an alternative path for this pilot project. The new path encompasses all of the steps of an EOA (trend analysis, site types, inventory and estimate of needed sites). However, because these steps are distributed in both time and authority between three counties (trends, site types and need estimate) and cities (inventory and location analysis), there was concern that the standard EOA path would be confusing and possibly troublesome. Due to rule-making, OAR 660-024-0040(1) and (5) acknowledge that local governments in Crook, Deschutes and Jefferson counties may determine the need for regional large-lot industrial land by following the provisions of OAR 660-024-0045 for areas subject to that rule. That rule having been followed and the Analysis completed, the City of Redmond is now adopting the Analysis and corresponding Comprehensive Plan policies regarding large lot industrial land needs.
B. OAR Division 24, Urban Growth Boundaries
OAR 660-024-0040 - Land Need (1) The UGB must be based on the adopted 20-year population forecast for the urban area described in OAR 660-024-0030, and must provide for needed housing, employment and other urban uses such as public facilities, streets and roads, schools, parks and open space over the 20-year planning period consistent with the land need requirements of Goal 14 and this rule. The 20-year need determinations are estimates which, although based on the best available information and methodologies, should not be held to an unreasonably high level of precision. A local government in Crook, Deschutes and Jefferson Counties may determine the need for Regional Large-Lot Industrial Land by following the provisions of OAR 660-024-0045 for areas subject to that rule. (5) Except for a metropolitan service district described in ORS 197.015(13), the determination of 20-year employment land need for an urban area must comply with applicable requirements of Goal 9 and OAR chapter 660, division 9, and must include a determination of the need for a short-term supply of land for employment uses consistent with OAR 660-009-0025. Employment land need may be based on an estimate of job growth over the planning period; local government must provide a reasonable justification for the job growth estimate but Goal 14 does not require that job growth estimates necessarily be proportional to population growth. A local government in
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Crook, Deschutes and Jefferson Counties may determine the need for Regional Large-Lot Industrial Land by following the provisions of OAR 660-024-0045 for areas subject to that rule.
Finding: The City of Redmond is now exercising the provisions of OAR 660-024- 045(5) by adopting the Analysis into its comprehensive plan that documents the short- term need for regional large-lot industrial land. As demonstrated in the Analysis and summarized in the table below, Deschutes County (along with cooperating jurisdictions in Central Oregon), by exercising its statutory coordination authority, has chosen to compete for large-lot industrial employers by creating a dynamic and competitive short- term large-lot industrial land supply portfolio and inventory that appeal to industrial site selectors. Deschutes County is basing its decision on an adequate factual base supported by substantial evidence in the record and is choosing to rely on the Analysis.
Table 1 - Central Oregon Large-Lot Industrial Land Need Synopsis
Ensure that the regional industrial land inventory is adequate to support the Objective specific needs of large lot industrial users.10
In 2008, the Oregon Economic and Community Development Department (now Business Oregon) recognized that large, ready to go industrial sites have been the state’s most significant development challenge and one of the most noticeable changes in real estate trends in the last few years. This change in demand and the changing nature of OECDD’s account base clearly document that global business trends have emerge as key elements of Oregon’s economy.11 Economic Development for Central Oregon recognizes that the recruitment of companies in new and existing industries is an important component of any successful economic development program and diversification strategy. New companies bring a different mix of professional and technical talent to Evidence communities that can spawn other businesses and technologies.12 The Analysis provides reasonable information and analysis pointing to an unmet short-term land need for large-lot employment sites, currently not part of regional economic development efforts. Goal 9 and Division 009 require that employment land planning be based on comparative location advantages and an articulation of opportunities based on national, state, regional and local trends. The Analysis cites large-lot employment trends and dynamics of the global market place, the strengths and challenges of Central Oregon’s economy and the opportunities for the region to compete for large-lot employers in the data center, high technology and warehouse and distribution industries.13
10 See note 9 above (Central Oregon Large-Lot Industrial Land Need Analysis), 11. 11 Bev Thacker, Rail Served & Large Industrial Sites Memorandum, March 11, 2008, 1. 12 Roger Lee, Economic Development for Central Oregon Letter, June 3, 2011, 13 See note 9 above (Central Oregon Large-Lot Industrial Land Need Analysis), 11-13; 29-34; 40-47.
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The county finds that the Analysis has been appropriately and reasonably tailored to address conditions and policies unique to the Central Oregon region. Deschutes County finds that as a matter of policy, it may choose how to structure its community and economic development activities, provided those activities are consistent with applicable local, state and federal laws and policies, including those for land use planning. Central Oregon chooses to Conclusion invest in large-lot industrial sites because it is an additional tool to broaden the region’s economic attractiveness. While trade sector industries are primary drivers of job creation, the Analysis does not assume that large employers are those drivers. Instead, large-lot industrial demand recognizes that accommodating these types of users reflects a reasonable component of an economic development strategy.14
OAR 660-024-0045 - Regional Large Lot Industrial Land
(1) Local governments in Crook, Deschutes or Jefferson Counties may determine a need for large lot industrial land in the region and provide sites to meet that need in accordance with this rule.
Finding: Based on the conclusions of fact supplied in the Analysis, there is a need for nine large lot sites in the Central Oregon region. Only six sites shall be available at any given time.
At least one of the sites must be 200+ acres in size. Two of the sites must be 100-200 acres in size. The remaining sites must be 50-100 acres in size. The sites must be distributed throughout the region in at least three different jurisdictions. At least one site, preferably the largest shall be located in the population and employment center of the region at either the north end of Bend or the southern end of Redmond. No jurisdiction shall be allowed to add a site under these provisions unless it signs the Intergovernmental Agreement (IGA) administered by COIC to fairly distribute these sites throughout the region. If one of the six sites is occupied by a bona fide industrial user it may be replaced by a site of like size pursuant to the criteria in the IGA administered by COIC. The facts available in the Analysis only provide sufficient evidence to replace up to three sites.
OAR 660-024-0045 (2) In addition to the definitions in OAR 660-024-0010, the following definitions apply to this rule: (a) “Analysis” means the document that determines the regional large lot employment land need within Crook, Deschutes, or Jefferson County that is not met by the participating local governments’ comprehensive plans at the time the analysis is adopted. The analysis shall also identify necessary site characteristics of needed land.
14 Ibid., 44-45.
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(b) “COIC” means the Central Oregon Intergovernmental Council. (c) “Intergovernmental Agreement (IGA)” means the document adopted by the three counties and any participating city to implement the provisions of the analysis. (d) “Participating city” means a city within Crook, Deschutes, or Jefferson County that has adopted the analysis and entered into an intergovernmental agreement to implement the provisions of the analysis. (e) “Participating local government” means Crook, Deschutes, and Jefferson Counties, and participating cities.
(f) “Regional large lot employment land need” means the need for a specific type of 20- year employment land need, as described in OAR 660-024-0040(1) and (5), that is determined based upon the analysis.
(g) “Site” means land in the region that:
(A) Provides the site characteristics necessary for traded sector uses as set forth in the analysis; (B) Is 50 acres or larger as provided in section (3) of this rule; and (C) Is determined to be "available," as that term is defined in OAR 660-009-0025(7), for regional large-lot industrial users and for purposes identified by the analysis. (h) “Site characteristics” has the meaning given that term in OAR 660-009-0005(1). (i) “Traded Sector use” has the meaning given that term in ORS 285B.280.
Finding: OAR 660-024-0045(2)(a-i) define multiple terms specific to implementation of this Rule (i.e. participating city, participating local government, site, site characteristics, and traded sector use) that participating cities will need to demonstrate that they are meeting when proposing a large-lot industrial site under this program. These definitions will be applicable if/when Redmond moves forward under the Rules to identify and designate a large lot industrial site.
OAR 660-024-0045 (3) For purposes of subsection (2)(g) of this rule, a large lot is at least 50 acres if it is: (a) A single lot, parcel that is at least 50 acres, (b) An aggregation of existing lots or parcels under the same ownership that comprises at least 50 acres, or (c) An aggregation of existing lots or parcels not in the same ownership created and maintained as a unit of land comprising at least 50 acres through a binding agreement among the owners.
Finding: OAR 660-024-0045(3) defines large lot for the purpose of this program.
OAR 660-024-0045
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(4) Participating local governments may adopt the analysis and implement its provisions. The analysis may demonstrate a need for six vacant, suitable and available sites in the region, and up to three additional sites that may be designated in order to replace one of the original six sites that is developed or committed to development as provided in section (12) of this rule. The original six sites must include two sites of at least 100 acres and not more than 200 acres, and one site more than 200 acres.
Finding: The Analysis documents that there is a demonstrated need for vacant, suitable and available large-lot industrial sites in Central Oregon, including that such sites may be suitable in Redmond. The short-term need encompasses six, 50 acre or greater sites, in three different jurisdictions, with two of those sites being between 100 to 200 acres, and one over 200 acres.15 Only six sites shall be available at any given time, but, once a site is assigned to a city and committed to development in accordance with the new rules, it may be replenished for a total of nine sites. Future participation by the cities in Central Oregon and such designations will determine the outcome of implementing these provisions. OAR 660-024-0045 (5) If a participating city adopts the analysis, it is deemed to provide an adequate factual basis for the determination of regional large lot employment land need for that city provided: (a) The city and other participating local governments have entered into an intergovernmental agreement with the COIC, and (b) The analysis is adopted by Crook, Deschutes and Jefferson counties.
Finding: The City of Redmond, through Ordinance 2013-15 is adopting the Analysis. The City of Redmond has entered into such IGA with COIC for administration of site designation under these Rules.
OAR 660-024-0045
(6) Participating cities may adopt the analysis and enter into the intergovernmental agreement without amending the Economic Opportunities Analysis adopted by the city prior to the adoption of the analysis.
Finding: OAR 660-024-0045(6) allows participating cities, after they enter into the IGA with their respective counties, to rely on the Analysis without having to amend their local EOAs. The City of Redmond will rely on this provision if choosing to move forward with a proposal for a large lot industrial designation.
OAR 660-024-0045 (7) The intergovernmental agreement shall describe the process by which the COIC shall coordinate with participating local governments in:
15 Ibid.
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(a) The determination of a qualifying site that a participating city may designate in order to satisfy the regional large lot industrial land need; and (b) The allocation of the qualifying sites among the participating cities in accordance with section (4) of this rule.
Finding: COIC has coordinated with participating local government to satisfy this rule. The City of Redmond is a party to the IGA.
OAR 660-024-0045
(8) A participating city may amend its comprehensive plan and land use regulations, including urban growth boundaries (UGB), in order to designate a site in accordance with the requirements of this rule, other applicable laws and the intergovernmental agreement, as follows: (a) A participating city must show whether a suitable and available site is located within its existing UGB. If a participating city determines that a suitable site already exists within the city’s urban growth boundary, that site must be designated to meet the regional industrial land need. Cities shall not be required to evaluate lands within their UGB designated to meet local industrial land needs. (b) If a site is not designated per subsection (a), then a participating city may evaluate land outside the UGB to determine if any suitable sites exist. If candidate sites are found, the city may amend its UGB in accordance with Goal 14, other applicable laws and the intergovernmental agreement.
Finding: OAR 660-024-0045(8) describes the process participating cities must follow to amend their comprehensive plans and land use regulations, including Urban Growth Boundaries (UGB), in order to designate a site in accordance with this rule. It is not applicable at this time since no site is being officially designated. However, the City of Redmond will comply with this section upon future interest in such designation.
OAR 660-024-0045 (9) A participating city that designates a site shall apply a regional large-lot industrial zone or overlay zone to the site in order to protect and maintain the site for regional large lot purposes. The zone or overlay zone must: (a) Include development agreements and other provisions that prevent re-designation of the site for other uses for at least 10 years from the time the site is added to the city’s comprehensive plan to meet regional large lot industrial land needs; (b) Prohibit division or separation of lots or parcels within the site to new lots or parcels less than the minimum size of the site need until the site is developed with a primary traded sector use requiring a large lot; and (c) Limit allowed uses on the site to the traded sector uses, except as provided in section (10) of this rule.
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Finding: OAR 660-024-0045(9) requires a regional large-lot industrial zone or overlay zone to include certain provisions noted above when a site is designated under this rule. It is not applicable at this time since no site is being officially designated. However, the City of Redmond will comply with this section if/when such designation is applied in the future.
OAR 660-024-0045 (10) The zone or overlay zone established under section (9) may allow: (a) Subordinate industrial uses that rely upon and support the primary traded sector use when a site is occupied by a primary traded sector use; and (b) Non-industrial uses serving primarily the needs of employees of industrial uses developed on the site provided the zone includes measures that limit the type, size and location of new buildings so as to ensure such non-industrial uses are intended primarily for the needs of such employees;
Finding: OAR 660-024-0045(10) allows subordinate and nonindustrial uses subject to this rule. It is not applicable at this time since no site is being officially designated. However, the City of Redmond will comply with this section if/when such designation is applied in the future.
OAR 660-024-0045
(11) If a participating city adds a site to its plan pursuant to this rule, it must consider the site in any subsequent urban growth boundary evaluation conducted to determine local industrial land needs and the adequacy of land available to meet local industrial land needs.
Finding: OAR 660-024-0045(11) requires a participating city to evaluate a regional site under this rule when they reevaluate or amend their local EOAs. It is not applicable at this time since no site is being designated under this rule. However, the City of Redmond will comply with this section if/when such designation is applied in the future.
OAR 660-024-0045
(12) A site may be considered developed or committed to industrial development if a large-lot traded sector user demonstrates a commitment to develop the site by obtaining land use approvals such as site plan review or conditional use permits, and (a) Obtaining building permits; or (b) Providing other evidence that demonstrates at least an equivalent commitment to industrial development of the site as is demonstrated by a building permit.
Finding: OAR 660-024-0045(12) describes the circumstances for a site to be developed or committed under this rule. It is not applicable at this time since no site has been officially designated. However, the City of Redmond will comply with this section if/when such designation is applied in the future.
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OAR 660-024-0045
(13) The participating local governments shall review the analysis after the regional supply of six sites has either been replenished by three additional sites or after ten years, whichever comes first.
Finding: OAR 660-024-0045(13) requires participating local government to review the program after ten years or after the regional supply of six sites has either been replenished by three additional sites or after ten years, whichever comes first. The City of Redmond will comply with this provision.
3. In conformity with the Statewide Planning Goals whenever they are determined to be applicable:
Finding: The applicable Statewide Planning Goals addressed in this FINDINGS document are: Goal 1 (Citizen Involvement); 2 (Land Use Planning); Goal 9 (Economic Development); and, Goal 14 (Urbanization). All the listed Goals are addressed below.
Goal 1- Oregon’s Statewide Planning Goals: Citizen Involvement. To develop a citizen involvement program that insures the opportunity for citizens to be involved in all phases of the planning process.
Finding: The Urban Area Planning Commission serves as the City’s formal citizen advisory committee to fulfill Goal 1, and is made up of Redmond area residents. The City conducted public meetings (a Planning Commission work session and public hearing) in October and November, 2013 respectively, regarding the proposal. Public notices and agendas for Planning Commission meetings where the proposed amendments were discussed were provided. All documents were available for the public review. Further, public notice advertising the public hearing was published in the local newspaper, the Redmond Spokesman. Additionally, a work session and public hearing were held before the City Council, with required notice provided. Thus, the City provided public review and involvement opportunities during/via the public work sessions and public hearings both at the Planning Commission level and City Council level as deemed necessary by such bodies. Based on these actions, Oregon Planning Goal 1 for Citizen Involvement has been met.
Goal 2- Oregon’s Statewide Planning Goals: Land Use Planning. To establish a land use planning process and policy framework as a basis for all decisions and actions related to use of land and to assure an adequate factual base for such decisions and actions.
Finding: The City staff, the Redmond Urban Area Planning Commission, and the Redmond City Council, have received input from other City staff and residents of the community in this regard and have determined that Goal 2 is met for the following reasons: Because ORS 197.610 allows local governments to initiate post acknowledgments plan amendments (PAPA). An Oregon Land Conservation and
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Development Department 35-day notice was initiated on September 30, 2013. This FINDINGS document and Analysis provides the adequate factual basis for this plan update. Further, pursuant to OAR 660-024-0045(5b) the City of Redmond is adopting the Analysis in order to implement the large lot industrial designation process locally. Based on these findings, the proposed amendments are in conformance with Goal 2.
Goal 9 - Oregon’s Statewide Planning Goals: Economic Development. To provide adequate opportunities throughout the state for a variety of economic activities vital to the health, welfare, and prosperity of Oregon’s citizens.
Goal 9 is applicable because in coordination with its regional partners, the City of Redmond has participated in the preparation of an Analysis of the economic opportunities and constraints associated with users of large industrial parcels in the Central Oregon region. This document concludes 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;
Finding: This requirement has already been addressed. See the findings addressing ORS 197.712(1) above on page 6.
2. Contain policies concerning the economic development opportunities in the community;
Finding: This requirement has already been addressed. See the findings addressing ORS 197.712(2)(b) above on page 9.
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: This requirement has already been addressed. See the findings addressing ORS 197.712(2)(c) above on page 9.
4. Limit uses on or near sites zoned for specific industrial and commercial uses to those which are compatible with proposed uses
Finding: This requirement has already been addressed. See the findings addressing ORS 197.712(2)(d) above on page 10.
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
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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 Analysis documents large-lot trends and dynamics, the importance of a large-lot supply and market choice, and target industry opportunities in Central Oregon. EDCO, in participation with local leaders, went through the lengthy process of identifying specific industry sectors for business recruitment, retention, and entrepreneurial support. EDCO recognizes that the recruitment of companies in new and existing industries is an important component of any successful economic development program and diversification strategy. New companies bring a different mix of professional and technical talent to communities that can spawn other businesses and technologies.16
Business Oregon is mandated by ORS 197.717(2) to “provide a local government with state and national trend” information to assist in compliance with ORS 197.712 (2)(a).” The department reviewed the Central Oregon area, and made the following recommendations:
“Given its current size and expected growth, it is not unreasonable to assume that the region being examined as part of the current Central Oregon Large Lot Economic Opportunity Analysis should have a mix of large-lot sizes for potential employers and site selectors to choose from. Such a mix would have at least multiple ready sites in the 200, 100 and 50-acre plus acreage ranges in order to meet expected 20 year land supply needs.”17
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: The City of Redmond is proposing to adopt the Analysis as it provides the basis and support for a future designation of necessary large lot industrial sites – potentially in Redmond. Redmond, as a participating city in the Analysis, may amend its comprehensive plan and land use regulations, including UGBs, in order to designate a site in accordance with the Analysis, the requirements of OAR 660-024-0045, other applicable laws and the intergovernmental agreement between the participating counties and municipalities. Future designation of such sites will require formal applications to amend the City Comprehensive Plan (UGB) and Zoning maps, and must demonstrate compliance with this provision of Goal 9 at that time.
16 Roger Lee, Economic Development for Central Oregon Letter, June 3, 2011. 17 Central Oregon Large-Lot Industrial Land Need Analysis, 60.
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3. Plans should designate the type and level of public facilities and services appropriate to support the degree of economic development being proposed.
Finding: The timing for designating suitable sizes, types and locations of large-lot employment sites, consistent with public facility and transportation system plans will occur when Redmond chooses to implement this program. As noted in the findings addressing ORS 197.712 (2)(g) on Page 10, OAR 660-025-0045(8) requires a participating city, when amending its UGB, to comply with applicable laws. Those laws include the Transportation Planning Rule (OAR 660-012-0060) and Boundary Location Alternative Analysis with respect to the provision of public facilities and services (OAR 660-024-0060(8)).
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: New OARs allow Central Oregon to address industries with a need for large- lot industrial land to support the region’s economic development objectives. The Analysis does not diminish the importance of small existing, start-up firms. What it does do is note that these firms represent only a portion of the spectrum of firms, and a balanced economic development program would provide for these types of firms as well as larger industrial firms. The two categories are complimentary, not competitive. Efforts to help existing companies (large and small) to grow or sustain their employment have been in place for more than a decade. Efforts to help start-ups and early stage companies are also solidly established. EDCO understands that most jobs come from existing companies, which is why it dedicates more than 50% of its efforts to fostering entrepreneurship and the retention/expansion of existing traded-sector companies.
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: The air, land and water resource carrying capacity of the region will be accounted for, managed and maintained during the actual identification and development of regional large-lot industrial sites A specified in the Analysis, the applicable OAR and the intergovernmental agreement.. This will be achieved through individual jurisdictions applying their 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.
By participating in the Analysis, Redmond has collaborated with the Cities of Bend, La Pine, Redmond, and Sisters, as well as Deschutes, Jefferson and Crook counties by responding to a specific employment land need identified in the Analysis for large-lot industrial sites in Central Oregon. Redmond will need to address this guideline, which is
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also cited in Statewide Planning Goal 6, when conducting the 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 UGB. Ultimately, Redmond will work with prospective land owners to determine the interest in siting such lands in Redmond and address this guideline at that time.
Goal 14 - Oregon’s Statewide Planning Goals: Urbanization. To provide for an orderly and efficient transition from rural to urban land use, to accommodate urban population and urban employment inside urban growth boundaries, to ensure efficient use of land, and to provide for livable communities.
Finding: Goal 14 is met because developing a short-term supply of large readily available industrial sites is not currently part of regional economic development efforts. New OARs specifically grant local governments in Central Oregon that ability to determine the need for regional large-lot industrial land by following the provisions of OAR 660-024-0045. By adopting the Analysis as allowed under OAR 660-024- 0045(2)(a), the City of Redmond (as a participant with jurisdictional partners in this effort) is acknowledging that there is a regional large lot employment land need that is not presently being met by local governments in Central Oregon. Regional large-lot employment need is defined in OAR 660-024-0045(2)(e) as a need for a specific type of 20-year employment land need. As a participating city (as noted under OAR 660-024- 0045(5a) and (5b)), Redmond is adopting the Analysis to provide the factual basis for the determination of regional large lot employment land need. Lastly, as specified in OAR 660-024-0045(6), Redmond has entered into an intergovernmental agreement without amending their existing EOA.
Conclusion: Based on these findings, the proposed Comprehensive Plan Amendments conform to the applicable Statewide Planning Goals addressed herein.
4. In conformity with the Redmond Comprehensive Plan, land use requirements and policies:
Chapter 1 – Redmond Comprehensive Plan: Citizen Involvement. To develop a citizen involvement program that insures the opportunity for citizens to be involved in all phases of the planning process.
Finding: The Urban Area Planning Commission serves as the City’s formal citizen advisory committee (as required by State Administrative Rule) and is made up of Redmond area residents. The Planning Commission is formally recognized through City Code and was appointed by the City Council. Thus, the Planning Commission is the appropriate public review and recommendation body to the City to meet this Comprehensive Plan policy.
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The City, through the Planning Commission, conducted an initial public meeting and a public hearing over the past few months regarding the proposed amendments. Public notices and agendas for Planning Commission meetings where the proposed amendments were discussed were provided. All documents were available for the public review. Further, a notice of the initial public hearing was published in the local newspaper, the Redmond Spokesman, as required. The City has continually provided opportunities for public review and involvement during the public work sessions and public hearings both at the Planning Commission and City Council levels as deemed necessary by such bodies.
The proposed amendments serve the following Policies of Chapter 1 of the Redmond Comprehensive Plan.
1. The City shall establish a citizen involvement program to provide for widespread citizen involvement.
2. The citizen involvement program shall involve a cross-section of affected citizens in all phases of the planning process.
3. The City shall assign the Redmond Urban Area Planning Commission as its officially recognized committee for citizen involvement (CCI).
4. The City shall establish mechanisms to assure two-way communications between citizens and elected and appointed officials.
5. The City shall provide the opportunity for citizens to be involved in all phases of the planning process.
6. The City shall assure that technical information is available to citizens in an understandable form.
7. The City shall assure that recommendations resulting from the citizen involvement program shall be retained and made available for public assessment. Citizens who have participated in this program shall receive a response from policy-makers.
8. The City shall allocate adequate human, financial and informational resources for the citizen involvement program.
Chapter 2 – Redmond Comprehensive Plan: Land Use Planning. To establish a land use planning process and policy framework as a basis for all decisions and actions related to use of land and to assure an adequate factual base for such decisions and actions.
Finding: The City staff, the Planning Commission, and the City Council have provided opportunities for public input throughout the review process. Based on this opportunity, the City Council finds that the proposed amendments are necessary to implement
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Chapters 1, 2, 9 and 14 of the City of Redmond’s Comprehensive Plan, as specified in this FINDINGS document. The City Council has further determined that enough factual and policy basis exists to support the proposed Comprehensive Plan amendments. The proposed amendments will better implement the true intent of the Comprehensive Plan policies for economic development, including expansion of the UGB for large lot industrial lands, and will provide clearer regulations for the City staff to administer when considering the designation of such lands in the City of Redmond.
The proposed amendments serve the following Policies of Chapter 2 of the Redmond Comprehensive Plan.
2. The plan shall be the basis for specific implementation measures. These measures shall be consistent with and adequate to carry out the plans. Each plan and related implementation measure shall be coordinated with the plans of affected governments.
3. All land use plans and implementation ordinances shall be adopted by the governing body after public hearing and shall be reviewed and, as needed, revised on a periodic cycle to take into account changing public policies and circumstances, in accord with a schedule set forth in the plan.
4. Opportunities shall be provided for review and comment by citizens and affected governmental units during preparation, review and revisions of plans and implementing ordinances
5. To provide a sound basis for orderly and efficient urbanization by establishing proper relationships between residential, commercial, industrial, public and open land uses, and transportation uses.
Chapter 9 – Redmond Comprehensive Plan: Economic Development.
Finding: The proposed amendments will implement the City of Redmond Comprehensive Plan through the adoption of the Analysis and new text, goals and policies (listed below) regarding need for and establishment of Large Lot Industrial Land designations. Based on these findings, the proposed amendments are in conformance with Chapter 9 of the Redmond Comprehensive Plan.
GOALS 12. To build a strong and thriving regional economy by coordinating public investments, policies and regulations to support regional and state economic development objectives in Central Oregon as determined through the Central Oregon Large Lot Industrial Land Need Analysis.
POLICIES (this section to be added to the end of the Policies portion of Chapter 9)
Central Oregon Large Lot Industrial Land Need Analysis
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Background: 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 led to an over-reliance upon these types of industries. During the recent recession, the regional economy’s vulnerabilities became apparent. Suitable land for today's industrial development forms emerged as one of Oregon's most severe development challenges. In 2010, 2011, and 2012, 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. The purpose of this evaluation was to aid in providing a more diversified economic base for the region that would accommodate industrial uses with a need for larger lots than possibly may be currently available in any of the Central Oregon cities. As part of that evaluation, Deschutes County hired a consultant to draft an analysis of Central Oregon’s opportunities, competitiveness, ability, and willingness to attract more basic industries. The analysis focused specifically on industries that require large lots. The result was a document called the Central Oregon Regional Economic Opportunity Analysis, and was the basis for adopting Deschutes County Ordinance 2011-017, dated May 31, 2011. Ordinance 2011-017 was appealed to the Land Use Board of Appeals by 1,000 Friends of Oregon (“1,000 Friends”). The appeal was stayed in early 2012 to allow Deschutes County, the Governor’s Office, and 1,000 Friends to explore a settlement, which was ultimately reached in April, 2012. The settlement consisted of policy concepts focusing entirely on Central Oregon’s short-term need for large-lot industrial sites as well as a commitment from the Department of Land Conservation and Development (“DLCD”) to initiate rule-making that summer. The three counties, their respective cities, 1,000 Friends, and DLCD staff then engaged in drafting a proposed rule. In August, the final draft of that rule was then sent to the Oregon Land Conservation and Development Commission (“LCDC”). As a result, in November, the LCDC adopted Oregon Administrative Rule (OAR) 660-024-0040 and 660-024-0045. That rule provides that that the large lot industrial land need analysis agreed upon by all of the parties, once adopted by each of the participating governmental entities, would be sufficient to demonstrate a need for up to nine large industrial sites in Central Oregon. Six of the sites will be made available initially. Three more sites may be added under the rule as the original sites are occupied. After the adoption of the new OARs, Deschutes County (as the initiating entity for the REOA and the subsequent settlement agreement and Central Oregon Large Lot Industrial Land Need Analysis), voluntarily repealed Ordinance 2011- 017 and adopted a new ordinance, Ordinance 2013-002, in accordance with the OARs (which added the Central Oregon Large Lot Industrial Land Need Analysis and corresponding policies into their Comprehensive Plan). Following the lead of Deschutes County and under the direction of the settlement agreement and new Administrative Rules, the City of Redmond is adopting the Central Oregon Large Lot Industrial Land
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Need Analysis and corresponding policies in order to be considered for large lot industrial sites. An additional necessary component is an intergovernmental agreement (“IGA”) between the region’s jurisdictions and the Central Oregon Intergovernmental Council (“COIC”). Through the IGA, COIC will provide oversight of the short-term land supply of large-lot industrial sites to enable the region to become competitive in industrial recruitment. Once each of the three counties and their respective cities adopt similar ordinances and enter into an IGA with COIC, the large lot sites will enable industrial recruitment opportunities to attract potential industrial users to consider the region that may not have otherwise without the availability of these large lots. Participating local governments will review the program after all nine sites have been occupied or after ten years, whichever comes first.
Policies: 45. The City supports a multi-jurisdictional cooperative effort to pursue a regional approach to establish a short-term supply of sites particularly designed to address out-of- region industries that may locate in Central Oregon. 46. The City recognizes the importance of maintaining a large-lot industrial land supply that is readily developable in Central Oregon. 47. The Central Oregon Regional Large Lot Industrial Land Need Analysis (“Analysis”, dated November 20, 2012), adopted by Ordinance 2013-___ is incorporated by reference herein. 48. Within 6 months of the adoption of Ordinance 2013-___, in coordination with the participating local governments in Central Oregon, the City of Redmond will participate in an intergovernmental agreement (“IGA”) with the Central Oregon Intergovernmental Council (“COIC”) that specifies the process of allocation of large lot industrial sites among the participating local governments. 49. The City 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. 50. The City will continue to 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 hinder economic development opportunities in Central Oregon.
Chapter 14 – Redmond Comprehensive Plan: Urbanization.
Finding: The proposed amendments will implement the City of Redmond Comprehensive Plan through the adoption of the Analysis and new text, goals and policies (listed below) regarding need for and establishment of Large Lot Industrial Land designations. Based on these findings, the proposed amendments are in conformance with Chapter 9 of the Redmond Comprehensive Plan.
POLICIES (this section to be added to the end of the Policies portion of Chapter 14)
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Central Oregon Large Lot Industrial Land Need Analysis
Policies: 27. The Central Oregon Regional Large Lot Industrial Land Need Analysis (“Analysis”, dated November 20, 2012), adopted by Ordinance 2013-___ is incorporated by reference herein. 28. The City of Redmond will amend its Comprehensive Plan and land use regulations, including the Urban Growth Boundary (UGB), in order to designate a site in accordance with the requirements of OAR 660-024-0045 and the intergovernmental agreement. 29. Upon designation and adoption of a site, the City will apply a regional large lot industrial zone or overlay zone to the site in order to comply with OAR 660-024-0045 and to protect and maintain the site for regional large lot purposes. 30. Upon addition of such a site, the City will consider the site in any subsequent urban growth boundary evaluation conducted to determine local industrial land needs and the adequacy of land available to meet local industrial land needs. 31. The City will participate with the other local Central Oregon governments in reviewing the analysis after the regional supply of six sites has either been replenished by three additional sites or after ten years, whichever comes first.
Conclusion: Based on the findings provided above, the proposed amendment conforms with the existing Redmond Comprehensive Plan and furthers the intent of the Plan by the specific policies to be added as listed herein.
______
CONCLUSION: The Redmond City Council concludes that the above findings demonstrate that the proposed amendment to the City of Redmond Comprehensive Plan, an update of the Airport Layout Plan (ALP), which is a component of the Airport Master Plan (AMP) for Roberts Field, as well as an amendment to Policy #6 of Chapter 9, Economic Development, regarding the requirement for amendments to the Airport Master Plan, satisfy all applicable local and state requirements as described herein.
Redmond Ord. #2013-15 – Page 102 of 102 Attachment B:
Oregon Revised Statutes and Oregon Administrative Rules Relative to Regional Large Lot Industrial Land
OAR 660-024-0045
Regional Large Lot Industrial Land
(1) Local governments in Crook, Deschutes or Jefferson Counties may determine a need for large lot industrial land in the region and provide sites to meet that need in accordance with this rule.
(2) In addition to the definitions in OAR 660-024-0010, the following definitions apply to this rule:
(a) “Analysis” means the document that determines the regional large lot industrial land need within Crook, Deschutes, or Jefferson County that is not met by the participating local governments’ comprehensive plans at the time the analysis is adopted. The analysis shall also identify necessary site characteristics of needed land.
(b) “COIC” means the Central Oregon Intergovernmental Council.
(c) “Intergovernmental Agreement (IGA)” means the document adopted by the three counties and any participating city to implement the provisions of the analysis.
(d) “Participating city” means a city within Crook, Deschutes, or Jefferson County that has adopted the analysis and entered into the intergovernmental agreement to implement the provisions of the analysis.
(e) “Participating local government” means Crook, Deschutes, and Jefferson Counties, and participating cities.
(f) “Regional large lot industrial land need” means the need for a specific type of 20-year employment land need, as described in OAR 660-024-0040(1) and (5), that is determined based upon the analysis.
(g) “Site” means land in the region that:
(A) Provides the site characteristics necessary for traded sector uses as set forth in the analysis;
(B) Is 50 acres or larger as provided in section (3) of this rule; and
(C) Is determined to be "available," as that term is defined in OAR 660-009-0025(7), for regional large-lot industrial users and for purposes identified by the analysis.
(h) “Site characteristics” has the meaning given that term in OAR 660-009-0005(1). (i) “Traded Sector use” has the meaning given that term in ORS 285B.280.
(3) For purposes of subsection (2)(g) of this rule, a large lot is at least 50 acres if it is:
(a) A single lot, parcel that is at least 50 acres,
(b) An aggregation of existing lots or parcels under the same ownership that comprises at least 50 acres, or
(c) An aggregation of existing lots or parcels not in the same ownership created and maintained as a unit of land comprising at least 50 acres through a binding agreement among the owners.
(4) Participating local governments may adopt the analysis and implement its provisions. The analysis may demonstrate a need for six vacant, suitable and available sites in the region, and up to three additional sites that may be designated in order to replace one of the original six sites that is developed or committed to development as provided in section (12) of this rule. The original six sites must include two sites of at least 100 acres and not more than 200 acres, and one site more than 200 acres.
(5) If a participating city adopts the analysis, it is deemed to provide an adequate factual basis for the determination of regional large lot industrial land need for that city provided:
(a) The city and other participating local governments have entered into an intergovernmental agreement with the COIC, and
(b) The analysis is adopted by Crook, Deschutes and Jefferson Counties.
(6) Participating cities may adopt the analysis and enter into the intergovernmental agreement without amending the Economic Opportunities Analysis adopted by the city prior to the adoption of the analysis.
(7) The intergovernmental agreement shall describe the process by which the COIC shall coordinate with participating local governments in:
(a) The determination of a qualifying site that a participating city may designate in order to satisfy the regional large lot industrial land need; and
(b) The allocation of the qualifying sites among the participating cities in accordance with section (4) of this rule.
(8) A participating city may amend its comprehensive plan and land use regulations, including urban growth boundaries (UGB), in order to designate a site in accordance with the requirements of this rule, other applicable laws and the intergovernmental agreement, as follows:
(a) A participating city must show whether a suitable and available site is located within its existing UGB. If a participating city determines that a suitable site already exists within the city’s urban growth boundary, that site must be designated to meet the regional industrial land need. Cities shall not be required to evaluate lands within their UGB designated to meet local industrial land needs.
(b) If a site is not designated per subsection(a), then a participating city may evaluate land outside the UGB to determine if any suitable sites exist. If candidate sites are found, the city may amend its UGB in accordance with Goal 14, other applicable laws and the intergovernmental agreement.
(9) A participating city that designates a site shall apply a regional large-lot industrial zone or overlay zone to the site in order to protect and maintain the site for regional large lot purposes. The zone or overlay zone must:
(a) Include development agreements and other provisions that prevent redesignation of the site for other uses for at least 10 years from the time the site is added to the city’s comprehensive plan to meet regional large lot industrial land needs;
(b) Prohibit division or separation of lots or parcels within the site to new lots or parcels less than the minimum size of the site need until the site is developed with a primary traded sector use requiring a large lot; and
(c) Limit allowed uses on the site to the traded sector uses, except as provided in section (10) of this rule.
(10) The zone or overlay zone established under section (9) may allow:
(a) Subordinate industrial uses that rely upon and support the primary traded sector use when a site is occupied by a primary traded sector use; and
(b) Non-industrial uses serving primarily the needs of employees of industrial uses developed on the site provided the zone includes measures that limit the type, size and location of new buildings so as to ensure such non-industrial uses are intended primarily for the needs of such employees;
(11) If a participating city adds a site to its plan pursuant to this rule, it must consider the site in any subsequent urban growth boundary evaluation conducted to determine local industrial land needs and the adequacy of land available to meet local industrial land needs.
(12) A site may be considered developed or committed to industrial development if a large-lot traded sector user demonstrates a commitment to develop the site by obtaining land use approvals such as site plan review or conditional use permits, and
(a) Obtaining building permits; or
(b) Providing other evidence that demonstrates at least an equivalent commitment to industrial development of the site as is demonstrated by a building permit.
(13) The participating local governments shall review the analysis after the regional supply of six sites has either been replenished by three additional sites or after ten years, whichever comes first. Stat. Auth.: ORS 197.040, Statewide Planning Goal 14 Stats. Implemented: ORS 195.036, 197.015, 197.295 - 197.314, 197.610 - 197.650, 197.764 Hist.: LCDD 9-2012, f. 11-26-12, cert. ef. 12-10-12
OAR 660-009-0005
Definitions
For purposes of this division, the definitions in ORS chapter 197 and the statewide planning goals apply, unless the context requires otherwise. In addition, the following definitions apply:
(1) "Developed Land" means non-vacant land that is likely to be redeveloped during the planning period.
(11) "Site Characteristics" means the attributes of a site necessary for a particular industrial or other employment use to operate. Site characteristics include, but are not limited to, a minimum acreage or site configuration including shape and topography, visibility, specific types or levels of public facilities, services or energy infrastructure, or proximity to a particular transportation or freight facility such as rail, marine ports and airports, multimodal freight or transshipment facilities, and major transportation routes.
Stat. Auth.: ORS 183 & 197 Stats. Implemented: ORS 197.712 Hist.: LCDC 4-1986, f. & ef. 10-10-86; LCDD 7-2005, f. 12-13-05, cert. ef. 1-1-07
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.
(7) Availability. Cities and counties may consider land availability when designating the short- term supply of land. Available land is vacant or developed land likely to be on the market for sale or lease at prices consistent with the local real estate market. Methods for determining lack of availability include, but are not limited to:
(a) Bona fide offers for purchase or purchase options in excess of real market value have been rejected in the last 24 months;
(b) A site is listed for sale at more than 150 percent of real market values;
(c) An owner has not made timely response to inquiries from local or state economic development officials; or
(d) Sites in an industrial or other employment land category lack diversity of ownership within a planning area when a single owner or entity controls more than 51 percent of those sites. Oregon Revised Statute: 285B.280 Definition of “traded sector.” As used in ORS 285B.280 to 285B.286, unless the context requires otherwise, “traded sector” means industries in which member firms sell their goods or services into markets for which national or international competition exists. [Formerly 285.765; 2005 c.835 §1]
CITY OF REDMOND 716 SW Evergreen Avenue Community Development Department Redmond, OR 97756 (541) 923-7721 Fax: (541) 548-0706 www.ci.redmond.or.us
STAFF REPORT
DATE: December 10, 2013 TO: Mayor and City Council Members THROUGH: Keith Witcosky, City Manager FROM: Heather Richards, Community Development Director SUBJECT: Public Hearing: Ordinance 2013-16, an amendment to the City of Redmond’s Comprehensive Plan Map and Zoning Map to Rezone 465 acres known as the East Redmond Industrial Site to Industrial and Service Commercial Zoning, (City Land Use File #PA-13-1).
Addresses Council Goals: Goal 2. Preserve and Enhance the City’s Infrastructure. Preserve and enhance the City’s infrastructure to position the City for future growth.
Goal 3. Economic Development. Encourage economic development by continuing to utilize business location incentives, ensuring an adequate supply of planned industrial, commercial and residential land, and supporting workforce development programs.
Goal 5. Comprehensive Planning. Enhance the quality of life in the City through the adoption of programs, policies and standards that balance growth while maintaining the city’s unique character.
C. Maintain an up to date Comprehensive Plan that meets the City’s long term development goals.
Report in Brief: This is a Public Hearing to consider Ordinance No. 2013-16, an Ordinance amending the City of Redmond’s Comprehensive Plan Map and Zoning Map to rezone 465 acres known as the East Redmond Industrial Site to industrial and service commercial zoning.
This is a land-use application submitted by Central Oregon Irrigation District, Redmond School District and Deschutes County.
The project size is 465 acres, currently zoned OSPR (Open Space Park Reserve). The proposal is to retain eight (8) acres as OSPR and to rezone the remaining acreage (457 acres) to 361 acres of M-1 (Light Industrial), 50 acres of M-2 (Heavy Industrial) and 46 acres of C-4A (Limited Commercial). This project is intended to implement Senate Bill 1544.
1 ------Attachment A- Ordinance No. 2013-16
Background: In the 1980’s, the subject property was zoned to OSPR to be a placeholder for the Deschutes County Fairgrounds. However, in the 1990s, the fairgrounds were permanently established elsewhere on a site just south of the Redmond Airport (present-day location). The basis for this application is that there is no need for the subject property to retain the OSPR designation as a future fairgrounds location.
In 1973, this property was originally identified as “Industrial Reserve” land by the Redmond Comprehensive Plan. Since 2000, the City of Redmond has tried to “restore” the original intended industrial zone to the property. However, compliance with the Transportation Planning Rule required a $250 million transportation improvement project that was financially not feasible, and the property remained in a state of limbo.
In 2008, the City of Redmond adopted the Eastside Framework Plan (EFP). This plan promotes an industrial/economic use concept for the subject property.
In 2012, the Oregon State Legislature recognized that this 465 acre site located within Redmond’s city limits was a site of statewide strategic economic development importance that would contribute so significantly to the state’s economy, job base and ability to provide services that focused regulatory relief was a wise investment. Thus the legislature voted unanimously to support SB 1544 during the 76th Oregon Legislative Assembly in 2012 to allow the City of Redmond to rezone the 465 acres of OSPR property to the East Redmond Industrial Site without determining whether the change will have a significant effect on existing or planned transportation facilities, exempting it from the Transportation Planning Rule.
The Legislature recognized that the City was unable to rezone the subject property to support economic development opportunities because of constraints associated with the ability to fund transportation system improvements identified through compliance with OAR 660-12, the Transportation Planning Rule (TPR) and other transportation-related regulations. SB 1544 provides an exemption to the Transportation Planning Rule for this site, and delineates a process for the City of Redmond to negotiate with the Oregon Department of Transportation (ODOT) towards an Intergovernmental Agreement that identifies the traffic impacts associated with the development of this site and projects to mitigate that impact.
Intergovernmental Agreement No. 28621 was signed by both the City of Redmond and ODOT in September, 2013, clearing the way for a land-use application (PA 13-1) by the property owners to rezone the property.
The application for PA 13-1 was submitted on September 27, 2013.
The Redmond Urban Area Planning Commission reviewed PA 13-1 on November 5, 2013 and voted unanimously to recommend that the Redmond City Council approved the rezone request.
Discussion: The proposed Comprehensive Plan Map and Zone Map amendment is attached as Exhibit A of Ordinance no. 2013-16, and findings for the land-use decision are attached as Exhibit B of Ordinance No. 2013-16. The findings show that the proposal complies with Oregon Statutes, the State Land Use Goals and the Goals and Policies of the City of Redmond’s Comprehensive Plan.
Fiscal Impact: There is no fiscal impact to the City.
2 ------Attachment A- Ordinance No. 2013-16
Alternative Courses of Action: 1. Conduct the public hearing and vote to approve Ordinance No. 2013-16. 2. Continue the public hearing, and/or leave the written record open to request additional information. 3. Conduct the public hearing and vote not to approve Ordinance No. 2013-16.
As required by City Charter, notices regarding this ordinance coming before the Council were posted in three public placed (the Library, the Police Department, and the Redmond Chamber of Commerce) in addition to City Hall on December 3, 2013 and three copies of the ordinance were available for review at City Hall.
Recommendation/Suggested Motion: “I move to have a first and second reading of Ord. #2013-16, by title only.” (Voice vote)
(City Attorney will read ordinance by title only, twice.)
“I move to approve Ord. #2013-16.” (Roll call vote)
Heather Richards, Community Development Director
3 ------Attachment A- Ordinance No. 2013-16
CITY OF REDMOND ORDINANCE NO. 2013-16
AN ORDINANCE AMENDING THE CITY OF REDMOND’S COMPREHENSIVE PLAN MAP AND ZONING MAP TO REZONE 465 ACRES KNOWN AS THE EAST REDMOND INDUSTRIAL SITE TO INDUSTRIAL AND SERVICE COMMERCIAL ZONING.
WHEREAS, Deschutes County, Redmond School District, and Central Oregon Irrigation District have jointly applied for a Comprehensive Plan Map and Zoning Map amendment for a 465-acre property in the city limits of Redmond, known as the East Redmond Industrial site; and
WHEREAS, the Oregon Legislature passed Senate Bill 1544 (SB1544) in 2012 to support the rezone of the East Redmond Industrial Site to industrial and service commercial zoning; and
WHEREAS, SB 1544 identified the need for this site is of statewide strategic economic development importance; and
WHEREAS, SB 1544 identified that the development on this site contributes so significantly to the state’s economy, job base and ability to provide services that focused regulatory relief is a wise investment; and
WHEREAS, SB 1544 identified that the East Redmond Industrial Site is an opportunity site for high-value employment due to its site characteristics and that this site could be leveraged for regional, national and global recruitment opportunities; and
WHEREAS, 8 acres of this property will remain as OSPR (Open Space Park Reserve), and the remaining acreage (457 acres) will be rezoned from OSPR to 361 acres of M-1 (Light Industrial), 50 acres of M-2 (Heavy Industrial) and 46 acres of C-4A (Limited Service Commercial) as described in Exhibit “A”, which is attached hereto; and
WHEREAS, this project is intended to implement Senate Bill 1544; and
WHEREAS, the City of Redmond’s Comprehensive Plan Chapter 9 (Economic Development) Goal 8 states “Protect industrial lands… while allowing limited service commercial uses that directly support industrial areas”; and
WHEREAS, the City of Redmond’s Comprehensive Plan Chapter 9 (Economic Development) Goal 10 states “The City and County shall continue to work cooperatively with State and Federal government and economic development agencies to implement economic development within the Redmond Urban Growth Boundary.”
Ordinance No. 201316 Page 1 of 19
WHEREAS, the proposed project will add new economic (mainly industrial) lands to the city; and
WHEREAS, the Urban Area Planning Commission held a public hearing on November 5, 2013 and, after reviewing the application, evidence and gathering testimony, voted unanimously to recommend that the City Council approve the requested Comprehensive Plan Map and Zoning Map amendment; and,
WHEREAS, the Redmond City Council held a public hearing on December 10, 2013 to consider the recommendation of the Urban Area Planning Commission, review the existing record and gather additional evidence and testimony; and
WHEREAS, the City Council has determined that the application has fully addressed state law, the applicable Statewide Planning Goals and the City of Redmond’s criteria for a comprehensive plan map and zoning map amendment ; and
WHEREAS, the City Council determined that the evidence and testimony given in support of the requested amendments complies with all City of Redmond standards and criteria;
NOW, THEREFORE, THE CITY OF REDMOND ORDAINS AS FOLLOWS:
SECTION ONE: The City of Redmond hereby amends the City of Redmond’s 2020 Greater Redmond Area Comprehensive Plan Map and Zoning Map to reflect the identified changes described on the attached “Exhibit A”.
SECTION TWO: In support of the map amendments in Section One, the City of Redmond hereby adopts the Findings which are attached hereto as “Exhibit B” which were prepared by City staff, reviewed by the Planning Commission, and demonstrate compliance with the Redmond Development Code, Section 8.0760 – Criteria for Amendments, the City’s Comprehensive Plan, and the applicable Statewide Planning Goals and Statutes.
SECTION THREE: SEVERABILITY. The provisions of this Ordinance are severable. The invalidity of any section, clause, sentence, or provision of this Ordinance shall not affect the validity of any other part of this Ordinance which can be given without such invalid part or parts.
Ordinance No. 201316 Page 2 of 19
PASSED by the City Council and APPROVED by the Mayor this 10th day of December, 2013.
George Endicott, Mayor
ATTEST:
Kelly Morse, City Recorder
Exhibit “A”- Proposed Comprehensive Plan Map and Zoning Map Exhibit “B”- Findings Document
Ordinance No. 201316 Page 3 of 19
EXHIBIT A:
Proposed Comprehensive Plan ./ Zone Map Amendment
Ordinance No. 201316 Page 4 of 19
EXHIBIT B: FINDINGS OF THE REDMOND CITY COUNCIL REGARDING PA 13-01, SENATE BILL 1544 CITY OF REDMOND ORDINANCE # 2013-16
A COMPREHENSIVE PLAN MAP AMENDMENT AND ZONE CHANGE - (465 ACRES)
FILE NO. PA 13-01
REQUEST: An amendment to the City of Redmond's Comprehensive Plan Map and Zoning Map. The project size is 465 acres. Eight (8) acres of this property will remain as OSPR (Open Space Park Reserve). The remaining acreage (457 acres) will be changed from OSPR to 361 acres of M-1 (Light Industrial), 50 acres of M-2 (Heavy Industrial) and 46 acres of C-4A (Limited Commercial). This project is intended to implement Senate Bill 1544.
APPLICANTS/ Deschutes County OWNERS: c/o Susan Ross 1300 NW Wall Street Bend, OR 97701
Central Oregon Irrigation District c/o Liz Dickson – Hurley-Re PC Steve Johnson, District Manager 1055 SW Lake Court Redmond, OR 97756
Redmond School District 2J c/o Sharon R. Smith – Bryant Lovlien & Jarvis, PC 591 SW Mill View Way Bend, OR 97702
LOCATION: North of Hwy 126, east of SE 9th Street in Redmond. It is also identified as 151315 TL 100, 101& 102 and 151300 TL 103 (within City Limits) on the Deschutes County Tax Assessors Map.
STAFF: Sean Cook, Senior Planner Heather Richards, Community Development Director
HEARINGS Redmond Urban Area Planning Commission BODY: Redmond City Council
DATE& TIME: Planning Commission - November 5, 2013 at 6:30 p.m. City Council – December 10, 2013 at 7:00 p.m.
LOCATION: City Council Chambers, 777 Deschutes Avenue, Redmond, Or. Ordinance No. 201316 Page 5 of 19
Zoning Map (Current)
Ordinance No. 201316 Page 6 of 19
Aerial Map
Ordinance No. 201316 Page 7 of 19
Proposed Comprehensive Plan ./ Zone Map Amendment
Ordinance No. 201316 Page 8 of 19
I. APPLICABLE CRITERIA:
Redmond Development Code, Chapter 8:
Article I - Zoning Standards Section 8.0166 Limited Service Commercial C-4A Zone Section 8.0180, Light Industrial M-1 Zone Section 8.0185, Heavy Industrial M-2 Zone Section 8.0205, Park Reserve-Open Space (OSPR Zone) Section 8.0750 - 8.0775; Amendments
Article II - Land Use Procedures -Section 8.1300 et. seq., Land Use Actions
The Redmond Urban Area Comprehensive Plan, including: Chapter 1, Citizen Involvement Chapter 2, Land Use Planning Chapter 5, Open Spaces, Scenic and Historic Areas, and Natural Resources Chapter 8, Recreational Needs Chapter 9, Economic Development Chapter 11, Public Facilities and Services Chapter 12, Transportation
Redmond Transportation System Plan (TSP), revised 2008. Oregon Revised Statutes (ORS) 2005 Edition. Oregon Administrative Rules (OAR) Chapter 660-12, Transportation Planning Rule (TPR). Senate Bill 1544 provisions as enacted by Chapter 105, Oregon Laws 2012
Ordinance No. 201316 Page 9 of 19
II. BACKGROUND & HISTORY:
1. According to the zoning map adopted on September 23rd, 1980, the subject property was zoned Open Space Park Reserve. The reason for this zoning was to provide a site for the potential placement of the Deschutes County Fairgrounds. However, in the 1990s, the fairgrounds were permanently established elsewhere on a site just south of the Redmond Airport (present-day location). Since the current location is well-established, the basis for this application is that there is no need for the subject property to retain the Open Space Park Reserve designation as a future fairgrounds location.
Since the time of the establishment of the fairgrounds on its current property, the subject property was left in a state of limbo with regard to its development potential for years until the city adoption of the Eastside Framework Plan (EFP) on December 9, 2008. This plan promotes an industrial/economic use concept for the subject property.
2. Subsequent to the EFP adoption, the Oregon Legislature adopted Senate Bill 1544. The Legislature recognized that the City was not able to rezone the subject property to support economic development opportunities because of constraints associated with the ability to fund transportation system improvements identified through compliance with OAR 660-12, the Transportation Planning Rule (TPR) and other transportation-related regulations. The City and the Legislature also recognized that subject property is a unique site previously reserved for industrial opportunities and the subject property could be leveraged for regional, national, and global recruitment economic development opportunities. The City worked with the legislature to find a solution via the approval of Senate Bill 1544, which allows City to adopt changes to the Redmond Comprehensive Plan and Zoning Map without determining whether the change will have a significant effect on existing or planned transportation facilities ordinarily required by state law. This action was accomplished with an Intergovernmental Agreement with ODOT regarding the identification and timing of necessary mitigations. The City will continue to address transportation needs as it develops, but the senate bill provides the flexibility to look at creative solutions and continue to address Redmond’s economic goals.
III. PROPOSAL: Amendment to the City of Redmond's Comprehensive Plan Map and Zoning Map. The project size is 465 acres. Eight (8) acres of this property will remain as OSPR (Open Space Park Reserve). The remaining acreage (457 acres) will be changed from OSPR to 361 acres of M-1 (Light Industrial), 50 acres of M-2 (Heavy Industrial) and 46 acres of C-4A (Limited Commercial). This project is intended to implement Senate Bill 1544. The subject property is located inside the City Limits and Urban Growth Boundary (UGB) of Redmond.
Ordinance No. 201316 Page 10 of 19
IV. EXHIBITS: The following exhibits make up the record in this matter and are on file with the City:
1. Senate Bill 1544 2. Intergovernmental Agreement (IGA) Redmond Eastside Industrial Zone Change No. 28621, city-date stamped October 10, 2013 3. Application, applicant’s burden of proof, legal description, plan sets, etc. submitted by the applicant. 4. Agency and departmental comments with the Planning Division. 5. Property owner notification of Public Hearings 6. Land use posting affidavits 7. Notice of Public Hearings in Spokesman (Planning Commission and City Council) 8. Planning Commission Public Hearing information and Staff Reports 9. City Council Public Hearing information and Staff Reports
V. SUMMARY
1. The applicant is requesting an amendment to the City of Redmond's Comprehensive Plan Map and Zoning Map. The project size is 465 acres. Eight (8) acres of this property will remain as OSPR (Open Space Park Reserve). The remaining acreage (457 acres) will be changed from OSPR to 361 acres of M-1 (Light Industrial), 50 acres of M-2 (Heavy Industrial) and 46 acres of C-4A (Limited Commercial). This project is intended to implement Senate Bill 1544. The subject property is owned by Deschutes County, the Redmond School District, and Central Oregon Irrigation District (COID).
2. The applicant has submitted a burden of proof, along with supporting materials, which demonstrate that the proposed plan amendment and zone change would be consistent with the State’s Planning Goals and Redmond’s Comprehensive Plan and other policies. The Hearings Body will adopt findings showing compliance with Statewide Planning Goals & Comprehensive Plan Goals and Policies: 1 (Citizen Involvement), 2 (Land Use Planning), 5 (Open Spaces, Scenic and Historic Areas, and Natural Resources), 8 (Recreational Needs), 9 (Economic Development), 11 (Public Facilities and Services), and 12 (Transportation).
3. The applicant’s burden of proof (on-file) addresses the four criteria set forth in RDC Section 8.0760 (Criteria for Amendments), as well as the direction of Senate Bill 1544 regarding implementation of the EFP and the IGA with ODOT.
Ordinance No. 201316 Page 11 of 19
(PA 13-01): FINDINGS & CONCLUSIONS
A. REDMOND DEVELOPMENT CODE (RDC), Chapter 8, Sections 8.0750 through 8.0775 (Amendments) sets forth the procedure and standards for an amendment to the text of the Code or to the adopted zoning and plan map. Specifically, Section 8.0760 - Criteria for Amendments, sets forth the four (4) criteria that the applicant must meet to gain approval of change to the 2020 Greater Redmond Area Comprehensive Plan and Zone Map. The applicant shall show the proposed change is:
1. In conformity with all applicable State statutes.
FINDING: The State statutes that directly apply to this application include ORS 197.610, Local Government Notice of Amendment or New Regulation; ORS 197.250, Compliance with Goals Required, and ORS 197.763, Conduct of Local Quasi-Judicial Land Use Hearings; Notice Requirements.
The applicable Code standards (sections 8.0750 to 8.0775, Amendment Procedures and Notice Requirements), were developed in compliance with the applicable State statutes. Notice of the proposed amendment has been provided to DLCD. The applicant has made a number of findings regarding the decision criteria for plan amendments / zone changes and those findings are incorporated herein by reference as if fully set forth. The City’s plan and zoning ordinance has been acknowledged by the State as being in compliance with State law. The proposal is also in conformance with Senate Bill 1544, which specifically addresses the subject property. Staff finds that the applicant has complied with the above standard.
2. In conformity with the Statewide planning goals whenever they are determined to be applicable.
FINDING: The City of Redmond has an acknowledged Comprehensive Plan implementing the Statewide Goals at the local level (City of Redmond 2020 Comprehensive Plan, adopted May 22, 2001, and amended on August 22, 2006 and June 8, 2007) Therefore, this proposal will be determined to be consistent with the adopted goals, objectives and policies set forth in the Comprehensive Plan, including the Addendum, Comprehensive Plan/Zoning Map.
Because the Comprehensive Plan incorporates the Statewide Planning Goals, this document discusses compliance with the Comprehensive Plan herein under Criterion #3 below. The proposal fully complies with the Redmond Comprehensive Plan’s requirements and policies and is, therefore, in conformance with all applicable Statewide Planning Goals.
3. In conformity with the Redmond Comprehensive Plan, land use requirements, and policies.
FINDING: The applicable Comprehensive Plan Goals and Policies are as follows: 1 (Citizen Involvement), 2 (Land Use Planning), 5 (Open Spaces, Scenic and Historic Areas, and Natural
Ordinance No. 201316 Page 12 of 19
Resources), 8 (Recreational Needs), 9 (Economic Development), 11 (Public Facilities and Services), and 12 (Transportation).
Chapter 1 - Citizen Involvement.
GOAL: To develop a citizen involvement program that insures the opportunity for citizens to be involved in all phases of the planning process.
FINDING: The Redmond Development Code provides a process for citizen involvement in the zone change and comprehensive plan amendment process through its land use procedures set forth in Chapter 8, Section 8.0750-08775. These procedures provide for citizen involvement through public notice and hearings. The process includes mailing notice of the proposed change to property owners, posting a land use poster announcing the hearing date and publishing notice in the local newspaper according to the procedures set forth in the Redmond Development Code. The opportunity to appeal the decision on this zone change proposal is provided to all parties. Thus, compliance with this Goal is satisfied by adhering to the applicable land use procedures set forth in the Redmond Development Code. Proper notice requirements were fulfilled as a part of this process and application. The proposal is in compliance with this Goal.
Chapter 2 -Land Use Planning.
GOAL: To establish a land use planning process and policy framework as a basis for all decisions and actions related to use of land and to assure an adequate factual base for such decisions and actions.
POLICIES:
5. To provide a sound basis for orderly and efficient urbanization by establishing proper relationships between residential, commercial, industrial, public and open land uses, and transportation uses.
6. To provide for a close correlation between the provision of urban services and urban development in order to bring about a more orderly and efficient development pattern, and thereby avoid unnecessary tax burdens and excessive utility costs normally associated with scattered, unrelated development.
7. To provide a safe, coordinated, efficient, and effective transportation system to bring about the best relationship between places where people live, work, shop and play.
FINDING: The Redmond Development Code is designed to comply with statewide planning procedures. The Comprehensive Plan and Development Code provide a policy framework as the basis for all land use decisions and will assure an adequate factual basis for the decision on this zone change/plan amendment proposal, as well as all development proposed within the City of Redmond. Therefore, adherence to the Development Code and Comprehensive Plan (since they have been acknowledged by the Land Conservation and Development Commission and therefore Ordinance No. 201316 Page 13 of 19 implement the Statewide Planning Goals) will result in compliance with Chapter 2. This application is being processed with adherence to all established land use procedures. The proposal is in compliance with the above stated Goal and Policies.
Chapter 5- Open Spaces, Scenic and Historic Areas and Natural Resources.
GOALS: 1. To conserve open space and protect natural and scenic resources. 2. To preserve and retain historic structures, areas, sites and cultural resources throughout the city.
FINDING: The goals and policies of this section of the Comprehensive Plan are very specific and are almost exclusively directed at the City of Redmond’s Dry Canyon. Policies 1 through 30 are Dry Canyon specific. The remaining policies are directed toward the Redmond Caves, trail systems and various historical and cultural policies.
There are no designated Goal 5 resources on the subject property that have been planned for by the City of Redmond specifically for Goal 5 compliance at the state level. The subject property is undeveloped and does not contain buildings or structures or other objects of historical or cultural significance. Further, there are no designated wildlife areas or other natural resources that have been identified.
It is evident that the primary purpose of the OSPR zone is to provide protection for the Dry Canyon as it runs through Redmond. The subject property is not located in the Dry Canyon. Therefore, these sections do not affect and do not apply to the request for the proposed rezoning and plan amendment as a part of this application. Further evidence of this is the fact that when the City updated its Comprehensive Plan in 2000-2001, there were no specific policies related to the OSPR designation in this location being necessary for the fairgrounds.
Additionally, this proposal is leaving an 8-acre area of OSPR land enacted for future potential development of an open space area (likely a park) that would support the new surrounding industrial lands.
It is interesting to note the history of this property to ascertain why it was zoned OSPR at all. Historical research has shown us that the property was zoned OSPR (used as Fairgrounds Reserve) in the 1980’s to be a place holder for the potential placement of the Deschutes County Fairgrounds. Later in the 1990’s, the County established that the Deschutes County Fairgrounds would be located elsewhere in south Redmond (near the Redmond Airport). Since the subject property is no longer needed to be reserved to become the fairgrounds, the proposal to rezone the property to an industrial/ economic nature makes sense.
Ordinance No. 201316 Page 14 of 19
Chapter 8- Recreational Needs.
GOALS: The Redmond Urban Growth Boundary park system should enhance the livability in the Redmond UGB by:
1. Providing quality green spaces, natural areas, and recreation sites for passive and active recreation through public and private park land throughout the community
POLICY:
12. The planning for future parks and schools should be done in cooperation with the School District and Central Oregon Parks and Recreation District to maximize the use of recreation facilities.
FINDING: The proposed project follows the general guidelines of the City’s Eastside Framework Plan (EFP), which includes an element for planning for future parks (public spaces). This plan is in place and was approved by the City Council (December 9, 2008) and lays a practical foundation for the future planning of parks (public spaces) on the subject property. This proposal is leaving an 8-acre area of OSPR land enacted for future potential development of an open space area (likely a park) that would support the new surrounding industrial lands. As such, the proposal complies with Goal 1. The Redmond Development Code classifies parks as an outright permitted use in all commercial and industrial zones. Therefore, the proposal will not impact the practicality of creating parks. The City of Redmond completed a Comprehensive Plan Update in 2000-2001. No specific goals and policies were established addressing the subject property, even though the property was zoned OSPR. It is clear that no specific goals and policies were needed for this property, since the subject property was not going to be utilized as the fairgrounds at this point. The Redmond School District is one of the applicants of this project, which assists in the coordination efforts in regards to future school planning. As such, the recommendation in Policy 12 is addressed.
Chapter 9- Economic Development.
GOALS:
3. Retain or create industrial… jobs through expansion and retention of existing businesses and recruitment of new businesses.
FINDING: The proposal would result in the creation of 400+ acres of employment lands primarily for industrial as well as limited service commercial uses. This property will offer the opportunity for existing businesses in the area to expand their operations so they may remain in the community. It will also provide opportunities for businesses outside of the area to move into Redmond, especially those seeking large parcels. Thus, the proposal shows compliance with Goal 3.
Ordinance No. 201316 Page 15 of 19
8. Protect industrial lands from being converted to commercial uses, while allowing limited service commercial uses that directly support industrial areas.
FINDING: The proposed rezoning and plan amendment would create 400+ gross acres of industrial lands (M-1 & M-2) from OSPR land. The proposal is not converting any industrial land to commercial. Additionally, the proposal is providing C-4A land (46 acres), which is limited service commercial. The C-4A zone is a strongly designed supportive commercial zone, not a general commercial zone. Thus, the proposal shows compliance with Goal 8.
10. The City and County shall continue to work cooperatively with State and Federal government and economic development agencies to implement economic development within the Redmond Urban Growth Boundary.
FINDING: This goal is the exact intent and purpose for Senate Bill 1544 and this application. The proposed rezoning/plan amendment is within the UGB, and its explicit intent is to attract and/or retain businesses and jobs that will create economic benefits in the UGB and to provide for future industrial uses in this area. The passage of Senate Bill 1554 is evidence of cooperation with the State, the City, and the County (co-applicant). Therefore, the proposal shows compliance with Goal 10.
POLICIES:
Industrial Development
1. Sufficient vacant industrial lands with a diversity of sizes, types and service levels for future industrial development shall be designated on the comprehensive plan/zoning map.
3. Industrial areas should be set aside primarily for industrial activities. Other supporting uses, including some retail uses, may be allowed if limited to sizes and locations intended to serve the primary uses and the needs of people working or living in the immediate industrial areas.
FINDING: The amount of industrial land that is proposed with this application will allow for large lot development including at least one designated site to be retained at 50 acres of M-2 land. The rest of the subject property will initially be left in large tracts to accommodate future users and future economic development projects. This initial design and flexibility will provide an opportunity for a diversity of industrial land sizes within the existing UGB. The proposal includes some C-4A limited commercial land, which is specifically intended as support for basic service needs of the workers in the larger industrial area. At the time of this report, no lands in the City of Redmond are zoned C-4A. C-4A was created to provide a specific kind of limited commercial land, which is different than traditional general commercial or other types of commercial zoning. The proposal supports the industrial zoning and future activities, while providing smaller amounts of supportive limited commercial uses. Therefore, the proposal shows compliance with Policies 1 and 3. Ordinance No. 201316 Page 16 of 19
Chapter 11- Public Facilities and Services
GOALS:
1. To provide for a close correlation between the provisions of urban services and urban development in order to bring about a more orderly and efficient development pattern, and thereby avoid unnecessary tax burdens and excessive utility costs normally associated with scattered, unrelated development.
6. The level of community facilities and services that can be provided shall be a principal factor in planning for various development densities.
POLICIES:
4. Development within the Redmond UGB shall be subsequent to or concurrent with the provision of an adequate level of public facilities and services.
5. All developments shall comply with utility and facility plans intended to serve the area.
9. The City shall require all future development, within the City limits, to be served by the City’s sewer system.
10. The City should continue to implement the Water and Sewer Master Plan for the City of Redmond.
11. The City shall continue to develop, operate and maintain a water system, including wells, pumps and reservoirs, capable of serving al urban development within the UGB.
FINDING: The subject property is already included within the Redmond UGB/City Limits, the 2008 Public Facilities Plan and the TSP. The property is accessed and bounded by a system of arterial and collector streets and a State Highway.
The City of Redmond’s Engineering Department (a division of Public Works) has responsibility governing public facilities and utilities (streets, water, sewer, etc.). The following comments have been provided from them concerning this application:
Ordinance No. 201316 Page 17 of 19
TO: Redmond Planning Division
FROM: DAVID PILLING, Development Manager/Engineering Division
DATE: October 22, 2013
SUBJECT: PA1301, Zone Change, Deschutes County/Redmond School District/COID LOCATION: Tax Lot 15‐13‐00‐103 and 15‐13‐15‐100, 101 & 102
The proposed zone change of subject property is in conformance with the City’s current Public Facilities Plan, Water and Wastewater Master Plans and Transportation System Plan including the planned street network shown in the Eastside Framework Plan. Furthermore, the Intergovernmental Agreement for the Redmond Eastside Industrial Zone Change approved by the City of Redmond and the State of Oregon that references Senate Bill 1554 and establishes a transportation mitigation plan, is acknowledged and accepted.
As such, the proposal is in compliance with the above listed Goals and Policies for this section (Public Facilities and Services).
Chapter 12- Transportation
GOALS: Within the Redmond Urban Growth Boundary an urban area transportation system will be developed which enhances the livability of Redmond and accommodates growth and development through careful planning and management of existing and future transportation facilities.
3. Identify roadway system needs to serve undeveloped areas so that steps can be taken to preserve right-of-ways and maintain traffic circulation.
FINDING: The subject property is already included within the Redmond UGB/City Limits and is planned for in the 2008 Public Facilities Plan and the TSP. The property is accessed and bounded by a system of arterial and collector streets and a State Highway.
The Transportation element of this project has been significantly reviewed and addressed by the passage of Senate Bill 1544. Compliance with City and State rules has been achieved through the multi-jurisdictional effort shown in the passage of the Bill. The development of the intergovernmental agreement between the City and ODOT provides the necessary Transportation Planning Rule (TPR) compliance and implements the mitigation described in the transportation analysis including the development of the future alternative mobility standards.
As such, the proposal shows compliance with above listed Transportation Goal and the implementation of the Senate Bill. The City’s Engineering Division concurs with this analysis as previously described in their comments in the Public Facilities (Chapter 11) section of this report.
Ordinance No. 201316 Page 18 of 19
4. That there is a change of circumstances or further studies justifying the amendment or mistake in the original zoning.
FINDING: The change of circumstances justifying this proposed amendment can be summarized in two parts. The first is the passage of Senate Bill 1544. Senate Bill 1544 demonstrates a significant change in the ability of the City to provide lands for economic development for the community. The Senate Bill 1544 passage is specific to the subject property. The second part is the change of locations of the Deschutes County Fairgrounds. The subject property was originally zoned OSPR for that use. Since that time, the Deschutes County Fairgrounds has been well-established in southern Redmond and shall continue to grow and thrive in its current location. The subject property no longer needs this designation (OSPR). Both of these significant changes justify the proposed amendment to the comprehensive plan and zoning map.
ADDITIONAL FINDINGS AND CONCLUSIONS:
1. Redmond’s Comprehensive Plan and Development Code are instruments designed to promote and provide for development that is orderly and beneficial to the community. The comprehensive plan is a dynamic document. It is routinely updated as needed to reflect growth and changes that are in the City’s interest to track and to plan for. As implementing documents; the Redmond Development Code, the 2020 Greater Redmond Area Comprehensive Plan and Zone Map, the Transportation System Plan and the City’s Standards & Specifications are also updated and revised to reflect the most recent changes within the City. When necessary and as circumstances change, the City will review proposals to change the comprehensive plan and zoning map designations for specific properties and decide if the change is warranted.
2. The Redmond City Council concludes that the above findings demonstrate that the plan amendment / zone change shows compliance with the decision criteria and standards that govern such changes.
Ordinance No. 201316 Page 19 of 19
CITY OF REDMOND 716 SW Evergreen Avenue Community Development Department Redmond, OR 97756 (541) 923-7721 Fax: (541) 548-0706 www.ci.redmond.or.us
STAFF REPORT
DATE: December 10, 2013 TO: Mayor and City Council Members THROUGH: Keith Witcosky, City Manager THROUGH: Heather Richards, Community Development Director FROM: James Lewis, Planning Manager SUBJECT: Public Hearing: Ordinance 2013-17, an amendment to the City of Redmond’s Transportation System Plan to include a Transportation Mitigation Plan as an element of an Intergovernmental Agreement (IGA) between the City of Redmond and the State of Oregon-Oregon Department of Transportation, (City Land Use File #PA-13-2).
Addresses Council Goals: Goal 2. Preserve and Enhance the City’s Infrastructure. Preserve and enhance the City’s infrastructure to position the City for future growth.
Goal 3. Economic Development. Encourage economic development by continuing to utilize business location incentives, ensuring an adequate supply of planned industrial, commercial and residential land, and supporting workforce development programs.
Goal 5. Comprehensive Planning. Enhance the quality of life in the City through the adoption of programs, policies and standards that balance growth while maintaining the city’s unique character.
C. Maintain an up to date Comprehensive Plan that meets the City’s long term development goals.
Report in Brief: This is a Public Hearing for a proposed amendment to the City of Redmond Transportation System Plan (TSP - which is an element of the Redmond Comprehensive Plan). The amendment adopts a Transportation Mitigation Plan (TMP) which is an element of Intergovernmental Agreement (IGA) No. 28621, between the City of Redmond and the State of Oregon (the IGA is included as Attachment A to this Staff Report).
The TMP (Exhibit B of the IGA) identifies the specific improvements, phasing, timing and costs that are to be amended into the TSP. The IGA is a requirement of Senate Bill 1544 (a copy of SB 1544 is included as Attachment B to this Staff Report) for the rezone of Redmond’s East Industrial Site from Open Space Park Reserve (OSPR) to Industrial (M1, M2) and Limited Service Commercial (C4A), a 465 acre tract of land on Redmond’s east side.
1 ------Attachments : Attachment A – Intergovernmental Agreement #28621 - City of Redmond and ODOT Attachment B – Senate Bill 1544 Attachment C – Ordinance 2013-17, with Exhibits A and B The TMP lists the physical improvements and additional steps necessary to mitigate the traffic impacts resulting from the eventual build-out of the subject property after rezoning.
Background: During the 2012 Oregon legislative session, the legislature passed Senate Bill 1544 (SB 1544) which authorized the rezone of approximately 465 acres of land on Redmond’s east side from OSPR to M1, M2 and C4A. SB 1544 specifically authorized such a rezone without the necessity to strictly adhere to the provisions of OAR 660-012, the Transportation Planning Rule (TPR).
Past efforts to rezone the property have not been feasible because of constraints associated with the ability to fund transportation system improvements identified as necessary mitigation for future traffic impacts through compliance with the TPR. Included among the identified improvements was the construction of the southern half of the US Highway 97 re-route (Phase 2) at an estimated cost that reached into the hundreds of millions of dollars. Through SB 1544, it was determined that the site had unique potential to leverage regional, national and global business recruitment opportunities. Furthermore the inability to rezone the property because of any feasible compliance with the TPR would have a derogatory effect on the economies of Redmond, the Central Oregon region and the State of Oregon. As a result of these factors, the legislature concluded through SB 1544 that alternative measures for mitigating traffic resulting from build out of the rezoned land were appropriate and that compliance with the TPR was not required as a precursor to rezoning.
Discussion: One of the requirements of the Senate Bill was that the City of Redmond and the Oregon Department of Transportation (ODOT) enter into an intergovernmental agreement identifying the obligations of the parties regarding future traffic mitigation linked to the rezone. The transportation mitigation plan is based on a traffic analysis specific to the rezoned property that was reviewed and approved by both parties. The analysis included a transportation mitigation plan that served as the basis for the IGA. The mitigation plan includes a list of 13 necessary improvements, with the phasing, timing and cost for each. Pursuant to the Senate Bill and the terms of the agreement, the transportation mitigation plan must be added to the City of Redmond TSP in order to allow the property to be developed subsequent to rezoning. Thus, the entirety of Exhibit B to the City/ODOT IGA #28621 (Attachment A hereto) will be added to the City TSP as Table 9-16.
In addition to adding Exhibit B of the IGA #28621 (Attachment A to this Staff Report) to the TSP as Table 9-16, additional text describing the new table and the rationale for including it in the TSP will also be added. The new text is proposed as follows (red text) – Attachment C - Ordinance No. 2013 – 17, to this staff report includes the new text as inserted into the TSP at the appropriate locations:
To be added to text in TSP Chapter 9:
Notwithstanding the rationale for other improvements listed in the TSP, the City entered into an intergovernmental agreement (IGA #28621, September, 2013) with the State of Oregon (Oregon Department of Transportation) regarding traffic mitigation necessary for a rezone of 465 acres on the City’s eastside from Open Space Park Reserve to Light Industrial, Heavy Industrial and Limited Service Commercial. The authorization for the IGA and transportation mitigation plan included therein (the transportation mitigation plan is included as Exhibit B to IGA #28621) is enabled by Oregon Senate Bill 1544 (May, 2012). The transportation mitigation plan lists 13 necessary improvement projects, with the phasing, timing and cost estimates for each included therein. These mitigation items are currently included in the TSP but have been changed to be specific to the impacts associated with the zone change authorized by S.B. 1544. Pursuant to the Senate Bill and the terms of the agreement, it is necessary that the transportation mitigation plan be added to the City of Redmond TSP in order to allow the property to be developed subsequent to rezoning (Table 9-16). The amendment of the TSP by City 2 ------Attachments : Attachment A – Intergovernmental Agreement #28621 - City of Redmond and ODOT Attachment B – Senate Bill 1544 Attachment C – Ordinance 2013-17, with Exhibits A and B of Redmond Ordinance No. 2013-17 to include the transportation mitigation plan as Table 9-16 fulfills the requirements of IGA #28621 as specified therein. Additionally, it is noted that by including the transportation mitigation plan as Table 9-16 of the TSP, the specific TSP amendments listed as items 1, 2 and 3 therein are incorporated by this amendment.
To be added to the text in TSP Chapter 9 (as a new sub-section within Chapter 9):
Intergovernmental Agreement #28621 – Redmond Eastside Industrial Zone Change
The City and State (Oregon Department of Transportation), entered into an Intergovernmental Agreement (IGA #28621) in September, 2013 for the purpose of establishing the mitigation necessary for traffic impacts anticipated from the rezone of 465 acres from Open Space Park Reserve to Light Industrial, Heavy Industrial and Limited Service Commercial. The IGA includes a transportation mitigation plan as Exhibit B which establishes the 13 necessary improvements, with the phasing, timing and cost estimates for each included therein. These mitigation items are currently included in the TSP but have been changed to be specific to the impacts associated with the zone change authorized by S.B. 1544. The transportation mitigation plan is based on a Traffic Impact Analysis which evaluated the amount and types of traffic expected to be generated within and from the rezone of the subject area – referred to as the East Redmond Industrial Site (ERIS). The City and ODOT have agreed that the traffic analysis was done in accordance with Oregon Senate Bill 1544 which authorized specific actions related to the analysis, including the establishment of a transportation mitigation plan (Table 9-16) and, ultimately, the acceptance of higher levels of congestion through the development of alternative mobility standards (which are not part of the City TSP, but are anticipated for inclusion into the Oregon Highway Plan upon approval by the Oregon Transportation Commission). Together, the elements of the transportation mitigation plan (table 9-16) and the alternative mobility standards are deemed appropriate solutions for the traffic impacts anticipated from the rezone of the ERIS. Following the formal rezone of the ERIS, the development thereof shall be subject to the provisions (improvement projects, phasing, timing, estimated costs) included in the transportation mitigation plan Table 9-16).
In addition to the TMP, the City/ODOT IGA also includes a list of Alternative Mobility Targets (Exhibit C to the IGA – Attachment A to this Staff Report) that are recommended as alternative operating capacities for those facilities specifically affected by traffic from the proposed rezone. The Alternative Mobility Targets must be approved by the Oregon Transportation Commission and will serve as amendments to the Oregon Highway Plan. These Alternative Mobility Standards are being described herein for references purposes as they relate to the overall mitigation for the rezone as required by SB 1544 and the City/ODOT IGA - they are not part of the proposed amendments to the City TSP.
Fiscal Impact: There is no direct fiscal impact at this time resulting from this amendment to the TSP. However, as listed in the TMP, there are costs associated with the various improvements included therein. All of the projects and the associated costs listed in the mitigation plan are currently already included in the capital improvement plan of the TSP. However, the new list includes some modifications to the previously planned improvements to account for the traffic generated from the rezoned property, with some slight increases to the anticipated costs. The listed improvements will be paid for via System Development Charges collected from future build out of the subject property. Thus, there is no additional financial impact to the City.
Alternative Courses of Action: 1. Conduct the public hearing and vote to approve Ordinance No. 2013-17. 2. Continue the public hearing, and/or leave the written record open to request additional information. 3. Conduct the public hearing and vote not to approve Ordinance No. 2013-17.
3 ------Attachments : Attachment A – Intergovernmental Agreement #28621 - City of Redmond and ODOT Attachment B – Senate Bill 1544 Attachment C – Ordinance 2013-17, with Exhibits A and B As required by City Charter, notices regarding this ordinance coming before the Council were posted in three public placed (the Library, the Police Department, and the Redmond Chamber of Commerce) in addition to City Hall on December 3, 2013 and three copies of the ordinance were available for review at City Hall.
Recommendation/Suggested Motion: “I move to have a first and second reading of Ord. #2013-17, by title only.” (Voice vote)
(City Attorney will read ordinance by title only, twice.)
“I move to approve Ord. #2013-17.” (Roll call vote)
.
James Lewis Planning Manager
4 ------Attachments : Attachment A – Intergovernmental Agreement #28621 - City of Redmond and ODOT Attachment B – Senate Bill 1544 Attachment C – Ordinance 2013-17, with Exhibits A and B
76th OREGON LEGISLATIVE ASSEMBLY--2012 Regular Session
Enrolled Senate Bill 1544 Printed pursuant to Senate Interim Rule 213.28 by order of the President of the Senate in conform- ance with presession filing rules, indicating neither advocacy nor opposition on the part of the President (at the request of Senate Interim Committee on Business, Transportation and Eco- nomic Development)
CHAPTER ......
AN ACT
Relating to economic development; and declaring an emergency. Whereas Oregon needs a reliable supply of large-lot, high-value employment sites to attract in- vestment and create jobs for Oregonians and to be competitive for employment projects on a re- gional, national and global scale; and Whereas the City of Redmond contains a developable site of approximately 465 acres that is unique in this state, in that it is a large site that can be served readily with infrastructure, is ad- jacent to the city’s employment and industrial lands, is adjacent to Oregon Route 126 and is close to the Redmond airport; and Whereas the need for the site is of statewide strategic economic development importance; and Whereas development on the site contributes so significantly to the state’s economy, job base and ability to provide services that focused regulatory relief is a wise investment; and Whereas this property was zoned industrial in the original comprehensive plan for the city; and Whereas the city zoned the site Open Space Park Reserve in 1980 at the request of Deschutes County for a fairgrounds project; and Whereas Deschutes County relocated the fairgrounds project to another site, and the city has been trying to restore the industrial zoning on the site since 2000; and Whereas the city has adopted a framework plan for the site that identifies industrial zoning and service commercial zoning; and Whereas the city is not able to rezone the property to support economic development opportu- nities because of constraints associated with the ability to fund transportation system improvements identified through compliance with administrative rules adopted to implement a statewide land use planning goal related to transportation planning and other transportation-related regulations; and Whereas resources have not been identified on the property that must be inventoried under a statewide land use planning goal related to protection of natural resources and conservation of scenic and historic areas and open spaces; and Whereas the city has determined that phased transportation improvements to mitigate traffic impacts associated with development of the high-value employment site are reasonable; and Whereas the site is a unique site that was previously reserved for industrial opportunities; and Whereas the site could be leveraged for regional, national and global recruitment opportunities; and Whereas the city recognizes that rezoning and development of the site may result in additional motor vehicle traffic congestion on transportation facilities and that other providers of transporta-
Enrolled Senate Bill 1544 (SB 1544-A) Page 1 tion facilities would not be expected to provide additional capacity for motor vehicles in response to the congestion; now, therefore,
Be It Enacted by the People of the State of Oregon:
SECTION 1. (1) As used in this section, “Southeast Redmond Employment Site” means the approximately 465 acres of real property that are located within the City of Redmond and: (a) Are bounded roughly on the north by East Antler Avenue between Southeast 9th Street and Southeast 17th Street and the coterminous city limit and urban growth boundary, on the east by Southeast 17th Street and the coterminous city limit and urban growth boundary, on the south by Oregon Route 126 and on the west by Southeast 9th Street; (b) Can be identified as tax lots 1513150000100, 1513150000101 and 1513150000102 and that portion of 1513000000103 lying within section 14 and located within the city on the effective date of this 2012 Act; and (c) Are zoned under the Redmond Comprehensive Plan as Open Space Park Reserve. (2) Notwithstanding a statewide land use planning goal related to transportation planning and administrative rules that implement the goal, and for the purpose of facilitating the de- velopment of the Southeast Redmond Employment Site, the city may adopt changes to the Redmond Comprehensive Plan and Zone Map to implement the Eastside Framework Plan adopted by the governing body of the city on December 9, 2008, without determining whether the change will have a significant effect on existing or planned transportation facilities. (3) If the city adopts changes authorized by subsection (2) of this section: (a) The city shall adopt a zoning designation or zoning overlay that restricts retail com- mercial activities allowed on the site to activities that: (A) Are necessary to support the planned employment uses; (B) Are not large-scale retail commercial activities, as that term is used in the land use regulations of the city; or (C) Help contain overall trips within the site. (b) The city shall adopt provisions to maintain in the site at least one lot or parcel, as those terms are defined in ORS 92.010, of at least 50 acres and shall plan and zone the lot or parcel for industrial or traded-sector employment use. (c) Subject to subsection (4) of this section, the city shall address the transportation impacts for the Southeast Redmond Employment Site by entering into an agreement with other providers of transportation facilities, including but not limited to the Department of Transportation, to plan for transportation improvements appropriate to accommodate the amount and types of traffic projected to be generated by development within the Southeast Redmond Employment Site. (d) Within four months after the city and the department have signed the agreement required by this section, the department shall establish an alternative mobility target for the state highways within the affected area that results from implementation of the agreement. By establishing an alternative mobility target, the department does not preclude modifying the target by agreement between the city and the department as a result of a future update to the Transportation System Plan, a comprehensive corridor planning approach, including the Trip 97 Study, or another system planning process. Other providers of transportation facilities may be parties to the agreement. (4)(a) The city and the department must negotiate and enter into the agreement required by this section within six months after the city completes the planned update of the site Transportation Impact Analysis and submits the results to the department. (b) The agreement must: (A) Identify and list planned transportation improvements and contain a description of the anticipated timing and financial responsibility for funding the improvements; and
Enrolled Senate Bill 1544 (SB 1544-A) Page 2 (B) Be adopted as part of the Transportation System Plan of the city. (c) The transportation improvements in the agreement must be based on practical design principles and may be funded with existing and planned transportation funding sources available to the city within the planning horizon. (d) In the agreement required by this section: (A) The city must acknowledge that the full impacts of the proposed land use action to the transportation system may not be fully accommodated by the transportation improve- ments contained in the agreement required under this section and that the department may not be responsible for funding additional transportation improvements to reduce motor ve- hicle traffic congestion that may occur due to the development of the Southeast Redmond Employment Site; and (B) The department must acknowledge that the transportation improvements identified in the agreement may not be sufficient to meet the Highway Mobility Targets of the de- partment as described in the Oregon Highway Plan. (e) If the city and the department cannot negotiate an agreement within six months, the city shall construct mitigation described in the planned update to the Transportation Impact Analysis of the city. SECTION 2. Section 1 of this 2012 Act is repealed on January 2, 2015. SECTION 3. This 2012 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2012 Act takes effect on its passage.
Passed by Senate February 13, 2012 Received by Governor:
...... M.,...... , 2012 ...... Robert Taylor, Secretary of Senate Approved:
...... M.,...... , 2012 ...... Peter Courtney, President of Senate ...... Passed by House February 23, 2012 John Kitzhaber, Governor
Filed in Office of Secretary of State: ...... Bruce Hanna, Speaker of House ...... M.,...... , 2012
...... Arnie Roblan, Speaker of House Kate Brown, Secretary of State
Enrolled Senate Bill 1544 (SB 1544-A) Page 3 CITY OF REDMOND ORDINANCE NO. 2013-17
AN ORDINANCE AMENDING THE CITY OF REDMOND’S TRANSPORTATION SYSTEM PLAN, TO ADOPT THE TRANSPORTATION MITIGATION PLAN OF CITY/ODOT INTERGOVERNMENTAL AGREEMENT #28621, AS REQUIRED BY OREGON SENATE BILL 1544.
WHEREAS, the City of Redmond has adopted An Urban Area Comprehensive Plan in accordance with Oregon Revised Statutes Chapter 227, and the Statewide Planning Goals that provides policy direction for the development of land within the City, and,
WHEREAS, as an element of the Urban Area Comprehensive Plan the City of Redmond has adopted a Transportation System Plan to fulfill the Oregon Administrative Rule requirements (the Transportation Planning Rule) to provide and encourage a safe, convenient and economic transportation system; and
WHEREAS, the Redmond City Council has an adopted set of goals that include: 1.) “Preserve and enhance the City’s infrastructure to position the City for future growth”; 2.) “Encourage economic development by continuing to utilize business location incentives, ensuring an adequate supply of planned industrial, commercial and residential land, and supporting workforce development”; and, 3.) “Enhance the quality of life in the City through the adoption of programs, policies and standards that balance growth while maintaining the city’s unique character” which is further implemented through the policy to “Maintain an up to date Comprehensive Plan that meets the City’s long term development goals”; and,
WHEREAS, Oregon Senate Bill 1544 authorized a rezone of 465 acres of land known as the East Redmond Industrial Site with an exemption from compliance with the Transportation Planning Rule pursuant to execution of an Intergovernmental Agreement between the City of Redmond and the Oregon Department of Transportation; and,
WHEREAS, the City/ODOT executed Intergovernmental Agreement No. 28621 in September, 2013; and,
WHEREAS, the City/ODOT Intergovernmental Agreement included a Transportation Mitigation Plan specific to the anticipated traffic impacts from build-out of the rezoned land; and,
WHEREAS, the Transportation Mitigation Plan will work together with Alternative Mobility Standards approved by the Oregon Transportation Commission which authorizes a change to the Oregon Highway Plan for acceptance of higher levels of congestion at identified locations in Redmond; and,
WHEREAS, amendments to the Transportation System Plan will memorialize the necessary transportation improvements, and will specify timing, phasing and costs associated with each item listed therein as related to the development of the rezoned land; and,
WHEREAS, the Urban Area Planning Commission held a public hearing on November 19, 2013, and, after reviewing the record and providing an opportunity for public testimony, has recommended that the Redmond City Council adopt the amendments to the Transportation System Plan, specifically the Transportation Mitigation Plan, as set forth in City/ODOT Intergovernmental Agreement #28621; and
WHEREAS, the Redmond City Council held a public hearing on December 10, 2013, to consider the recommendation of the Urban Area Planning Commission, review the existing record and gather additional evidence and public testimony; and
WHEREAS, the City Council has received the Planning Commission’s recommendation and, after receiving additional evidence and testimony, determined that the requested Transportation System Plan amendments would contribute to and further enhance the continued economic viability of Redmond; and
WHEREAS, the City Council concludes that the Findings as set forth in Exhibit D to support the adoption of the Transportation System Plan amendments regarding the Transportation Mitigation Plan, as set forth in City/ODOT Intergovernmental Agreement #28621, have fully addressed the City’s Comprehensive Plan, the applicable State Law, and the Statewide Planning Goals as the applicable criteria for an amendment to the Redmond Transportation System Plan; and,
WHEREAS, the City Council finds that the attached Transportation System Plan amendments are necessary to further these interests.
NOW, THEREFORE, THE CITY OF REDMOND ORDAINS AS FOLLOWS:
SECTION ONE: The City of Redmond hereby amends the Redmond Urban Area Comprehensive Plan, to adopt the Transportation Mitigation Plan of City/ODOT Intergovernmental Agreement #28621, and corresponding text to Chapter 9, Transportation Master Plan of the Transportation System Plan attached hereto as “Exhibit A.”
SECTION TWO: In support of the Transportation System Plan amendments in Section One, the City of Redmond hereby adopts the Findings which are attached hereto as “Exhibit B”, which were prepared by City staff, reviewed by the Planning Commission and demonstrate compliance with the City’s Comprehensive Plan, and the applicable Statewide Planning Goals, Administrative Rules and Statutes.
Ordinance No. 201317 Page 2 of 22
SECTION THREE: SEVERABILITY. The provisions of this Ordinance are severable. The invalidity of any section, clause, sentence, or provision of this Ordinance shall not affect the validity of any other part of this Ordinance which can be given without such invalid part or parts.
PASSED by the City Council and APPROVED by the Mayor this 10th day of December, 2013.
George Endicott, Mayor
ATTEST:
Kelly Morse, City Recorder
Ordinance No. 201317 Page 3 of 22
EXHIBIT A TO ORDINANCE 2013-17
Transportation System Plan Amendments (new text is red; deleted text is strikethrough, unless otherwise stated)
* Excerpt from Redmond Transportation System Plan Chapter 9 (beginning on TSP page 924)
Motor Vehicle Master Plan The improvements identified to meet 2030 system demand combine both facility widening or extension and local intersection capacity improvement projects. These improvements are listed in Tables 9-6, 9-8, 9-9, 9-10, and 9-11. Some of these projects (such as US 97 Reroute Phase II) represent solutions to long-term needs that are not expected to be funded by the 2030 horizon of this TSP. Since Reroute Phase II is not expected to be funded by 2030, the City is constructing/improving parallel facilities to accommodate traffic (such as Westside arterial, SW 19th Street extension, S Canal Boulevard, and Quartz connection). The Motor Vehicle Action Plan contains a list of projects that are reasonably expected to be funded by 2030. The facility projects that compose the Motor Vehicle Action Plan are shown in Figure 9-8 and are referenced by the project numbers provided in Tables 9-6, 9-8, and 9-9. The cost estimates shown in these tables are estimated by DKS Associates using standard assumptions for new facilities. Further refinements should be made of these estimates prior to capital budgeting. As noted, some project cost estimates are based on the Capital Improvement Plan (CIP) project list costs1. Inclusion of an improvement project in the TSP does not commit the City or ODOT to construct or participate in funding the specific improvement. For projects on the local street system, inclusion in the Action Plan indicates that funding is reasonable likely. Projects on the State Highway System that are contained in the TSP are not considered to be reasonably likely to be funded unless they are programmed in the Statewide Transportation Improvement Plan (STIP) or unless ODOT provides written statement that they are reasonably likely to be funded. While the planning horizon of this TSP is year 2030, STIP inclusion is based on a four-year cycle. Many of the improvements listed on state facilities will be developer driven and funded as identified by the City. Unanticipated issues related to project funding, as well as the environment, land use, the economy, changes in the use of the transportation system, or other concerns may be causes for re-evaluation of alternatives discussed below and possible removal of a project from consideration for funding or construction. Highway projects that are programmed to be constructed may have to be altered or canceled at a later time to meet changing budgets or unanticipated conditions. The City proposes to enter into a Memorandum of Understanding (MOU) with ODOT to identify specific State Highway Projects which the City is collecting System Development Charge
1 An annual factor of 8% was applied to 2004 CIP costs to account for inflation.
Ordinance No. 201317 Page 4 of 22
funding for future improvements. The MOU will outline how the City will collect and set aside funding for these projects and how the City and ODOT will agree to expend funds in the future. The MOU will detail compliance with the “reasonably likely” language contained in 660-012- 0060 (3)(e); (4)(b)(D); (4)(c)(A); and/or (4)(e) relating to state transportation facilities. Notwithstanding the rationale for other improvements listed in the TSP, the City entered into an intergovernmental agreement (IGA #28621, September, 2013) with the State of Oregon (Oregon Department of Transportation) regarding traffic mitigation necessary for a rezone of 465 acres on the City’s eastside from Open Space Park Reserve to Light Industrial, Heavy Industrial and Limited Service Commercial. The authorization for the IGA and transportation mitigation plan included therein (the transportation mitigation plan is included as Exhibit B to IGA #28621) is enabled by Oregon Senate Bill 1544 (May, 2012). The transportation mitigation plan lists 13 necessary improvement projects, with the phasing, timing and cost estimates for each included therein. These mitigation items are currently included in the TSP but have been changed to be specific to the impacts associated with the zone change authorized by S.B. 1544. Pursuant to the Senate Bill and the terms of the agreement, it is necessary that the transportation mitigation plan be added to the City of Redmond TSP in order to allow the property to be developed subsequent to rezoning (Table 9-16). The amendment of the TSP by City of Redmond Ordinance No. 2013- 17 to include the transportation mitigation plan as Table 9-16 fulfills the requirements of IGA #28621 as specified therein. Additionally, it is noted that by including the transportation mitigation plan as Table 9-16 of the TSP, the TSP is further amended to incorporate those items specifically listed in Table 9-16 as items 1, 2 and 3.
Table 9-8: Motor Vehicle Master Plan Improvements – ODOT Facilities Action Planning Master Plan Cost Plan Project (x$1,000) Location Description Project (#) Widen to 3 lanes from Helmholtz to 35th Hwy 126* X 8 $1,555 Avenue Widen to 5 lanes from 35th Avenue to Hwy 126* X 9 $5,330 Rimrock Way Widen to 3 lanes from US 97 Reroute to Hwy 126* X 10 $7,535 Vet Way US 97 Reroute Extend Reroute Alt 3B to Quarry X $226,140*** Extension** interchange (no Airport Way interchange) Airport Reroute interchange at Airport Avenue X $6,450*** Interchange** US 97/Quarry Ave Westside Arterial/Quarry Ave Interchange X 13 $11,250 Master Plan Total $258,260 Action Plan Total $18,135 * Discussions regarding alternatives to widening this facility are presented in Chapter 5 ** Included in Master Plan but not reflected in Action Plan or intersection performance listed in Table 9-7. *** Provided in US 97 Refinement Plan Study for Alternative 3B. Airport Way interchange cost removed and listed separately.
Ordinance No. 201317 Page 5 of 22
Table 9-9: Motor Vehicle Master Plan Improvements – City of Redmond Facilities Master Planning Location Action Plan Project Description Plan Cost (#) Project (x$1,000)
NW Upas Ave Grade-separated crossing of US 97 X 14 $3,940
Westside O’Neil to Quarry X (see below) $50,575 Arterial (itemized Pershall Way – 3 lanes from US 97 to Dry X 21 $2,220 Pershall Way – 3 lanes through Dry Canyon X 22 $3,090 Pershall Way – 3 lanes from Dry Canyon (E) to X 23 $2,590 th th NW 27 St – 5 lanes from Pershall Way to Maple X 24 $5,260 NW Maple Ave – 5 lanes from 27th St to 35th St X 25 $2,640 th NW Maple Ave – 3 lanes from 35 St to X 26 $3,595 Helmholtz Way – 5 lanes from Maple Ave to X 27A $2,835 Helmholtz Way – 5 lanes from Antler Ave to Hwy X 27B $5,665 Helmholtz Way – 5 lanes from Hwy 126 to X 28A $2,785 Helmholtz Way – 5 lanes from Obsidian to X 28B $6,750 Helmholtz Way – 5 lanes from Wickiup to Elkhorn X 28C $5,570 Helmholtz Way – 3 lanes from Elkhorn to S Canal X 29 $3,145 Helmholtz Way – 3 lanes from S Canal to Quarry X 30 $4,430 Ave Widen to 3 lanes from Maple Avenue to NW 27th Ave X 15 $2,640 Greenwood Widen to 3 lanes from SW Obsidian Ave to Yew SW Canal Blvd X 16 $7,560 Ave Extend to Deschutes Market Road as 2-lane SW 19th St X 17 $7,250 collector SW Quarry Rd Connect US 97 to 19th Street extension X 18 $2,730 NW O’neill Ave Grade-separated crossing of US 97 X 19 $7,430 NE 17th St Eastside collector from OR 126 to Antler Ave X 20 $3,200 Extend from Veterans Way to OR 126 as Minor SE 9th St X 31 $2,925 Art E 9th St Improvements from OR 126 to Hemlock Ave X 33 $2,730* SW Odem Medo Rd Corridor Improvements X 35 $1,040* th Improvements from SW Quartz to SW Obsidian SW 15 St X 36 $480* Ave Forked Horn Butte Wickiup Ave to S Canal Blvd Connection X 37 $2,650 SW Elkhorn Ave Helmholtz Way to S Canal Blvd X 60 $1,735 SW Obsidian Ave W UGB to 35th Street X 62 $1,520 W Antler Ave Helmholtz to 35th Street X 63 $1,520 NW 35th St NW Hemlock to NW Oak Avenue X 64 $2,150 NW Spruce Ave NW 22nd to NW 33rd X 65 $1,430 NW 10th St NW Upas Ave to NW Pershall Way X 66 $1,140 NE 5th St NE Hemlock to E Antler Avenue X 67 $1,230 SW Canal Blvd Widening from SW Yew Ave to SW Badger Ave X 68 $3,785
Ordinance No. 201317 Page 6 of 22
SW Canal Blvd SW Badger Ave to SW Helmholtz Way X 69 $4,465 SW Wickiup Ave/ st th SW 31 to SW 35 X 70A $745 Reservoir Dr SW Wickiup Ave/ th SW 39 to Helmholtz Way X 70B $2,045 Reservoir Dr SW Veterans Way Add a center turn lane from RxR to SE 1st St X 71 $1,375 5th/6th Reconstruction X 72 $8,500
Ordinance No. 201317 Page 7 of 22
Table 9-10: Master/Action Plan Intersection Improvement Projects - ODOT Facilities Planning Master Action Cost Location Description Plan Plan (x$1,000) SW 15th Avenue/ Restripe (no widening) and modify signal to X X $50 Highland (OR 126) add northbound/southbound left turn lanes Add southbound right turn lane and overlap X X $250 SW Rimrock Way/ Add a westbound right turn lane (includes fill Highland Ave (OR 126) X X $1,000 and retaining wall) Add a southbound right turn lane X $250 US 97/ Add a westbound right turn lane* X $0 Veterans Way** Add a second eastbound left turn lane and X $1,250 widen canal structure Add a second northbound left turn lane X $250 Add a second receiving lane to west leg and X $500 drop lane at parking access (275 ft) US 97/Odem Medo** Add an eastbound left turn lane* X $0 Widen structure over canal to support X $0 additional lanes* Add a southbound right turn lane* X X $0 US 97/Quartz St Add a westbound left turn lane X X $250 US 97 Reroute/ Add a single eastbound right turn lane X X $250 Highland Ave US 97 Reroute/ Add a westbound right turn lane X X $250 Evergreen Ave Add a traffic signal X X $250 SW Helmholtz Way/ X X $500 Highland (OR 126) Add a westbound right turn lane* Add a northbound right turn lane X X $500 SW 27th Ave/ Add a traffic signal X X $02 Highland (OR 126) * US 97 (SB)/Yew Ave Add a traffic signal* X X $350 US 97 (NB)/Yew Ave Add a traffic signal* X X $350 Add a traffic signal X X $250 Add a northbound right turn lane X X $250 E 9th Ave/OR 126 Add an eastbound right turn lane X X $250 Add a westbound right turn lane X X $250 Add eastbound/westbound left turn lanes X X $500 Disconnect Lake Road when SE 9th Street SE Lake Rd/OR 126 extension is completed or restrict access to X X $250 right-in-right-out Master Plan Total $5,750 Action Plan Total $8,000 Note: * planned for 2008 ** If US 97 Reroute Phase II is constructed (as in Master Plan), some of these additional projects are not needed. However these projects are included as Action Plan projects since US 97 Reroute Phase II is not in Action Plan.
2 Cost included with Action Plan project #2 – 27th Street extension from Highland Avenue to Antler Avenue
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Table 9-11: Master/Action Plan Intersection Improvements – City of Redmond Facilities
Master Action Planning Cost Location Description Plan Plan (x$1,000) SW 5th St (Business Remove parking and restripe to X X $50 97 NB)/Black Butte add an eastbound left turn lane Ave Add a traffic signal X X $250 NW 27th St/Maple Add a roundabout with two X X $1,200 Ave circulating and two entry and exit lthh NW 10th St/ Add an eastbound right turn lane X X $250 Pershall Way SW Helmholtz Way/ Add a single-lane roundabout X X $800 S Canal Blvd W 27th St/Antler Ave Add a traffic signal X X $250 SW 27th St/ Add a single-lane roundabout X X $800 S Canal Blvd NW 19th St/Maple Add a traffic signal X X $250 NW 9th St/Maple Ave Add a traffic signal X X $250 SW Canal Add a traffic signal X X $250 Blvd/Quartz Ave SW Canal Blvd/ Add a traffic signal X X $250 Odem Medo Ave Add a westbound left turn lane* X X $03 SE 9th St/ Add a single-lane roundabout X X $800 Veterans Way th SW 19 St/Airport Add a single-lane roundabout* X X $800 SEW Lake Rd/ Add a southbound right turn lane X X $250 Veterans Way Master Plan Total $6,450 Action Plan Total $6,450 Note: * planned for 2008
Traffic Control Master Plan In addition to mitigation that was triggered due to performance deficiencies in the operations analysis, several locations that are currently all-way-stop-controlled may be signalized in the future as traffic signals are warranted. Traffic signals were not assumed at these locations in the capacity analysis, however signalized operations are listed in Table 9-7. Figure 9-7 shows the future traffic control for study intersections. This traffic control master plan considers facility type, spacing, capacity, traffic demand, future land use4 and other needs related to intersection traffic control. Note that the land use and traffic volumes are based on 2030 projections.
3 Cost included with Action Plan #35 – Odem Medo Rd corridor improvements 4 The future signal at OR 126/Helmholtz Way is based on adjacent development creating an urbanized setting. The 2030 land use and development projections assume the increased urbanization, which leads to an increase in traffic volumes and the need for traffic signal control at this location. The current rural
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Figure 9-7: Traffic Control Master Plan (GRAPHIC IS UNAVAILABLE ELECTRONICALLY)
Table 9-12: Signalization Projects (When Warranted) Location Description Planning Cost (x$1,000) SW 27th St/Obsidian Ave Add a traffic signal when warranted $250 SW 27th St/Salmon Ave Add a traffic signal when warranted $250 SW 27th St/Wickiup Ave Add a traffic signal when warranted $250 S Canal Blvd/ SW Obsidian Ave Add a traffic signal when warranted $250 NE 9th St/Hemlock Ave Add a traffic signal when warranted $250 NE 9th St/Antler Ave Add a traffic signal when warranted $250 NW 35th St/Maple Ave Add a traffic signal when warranted $250 SW Helmholtz Way/Wickiup Ave Add a traffic signal when warranted $250 US 97 Business/Kingwood Ave Add a traffic signal when warranted $455 OR 126/SE Veterans Way Add a traffic signal when warranted $250 NW 27th St/Hemlock Ave Add a traffic signal when warranted $250 OR 126/ SW 35th St Add a traffic signal when warranted $250 N Canal Blvd/King Way (realigned) Add a traffic signal when warranted $250 US 97 Reroute NB/ US 97 Business Add a traffic signal when warranted $250 US 97 Reroute SB/ US 97 Business Add a traffic signal when warranted $250 Total $3,705
Table 9-13 lists the various components of the Motor Vehicle Master Plan and the summarized costs that are presented in the preceding tables.
Table 9-13: Motor Vehicle Master Plan Cost Summary Project Type Cost Currently Funded CIP Projects $18,850,000 ODOT Facility Capacity Improvements - Local Match* $24,585,000 City of Redmond Facility Capacity Improvements $126,790,000 ODOT Facility Intersection Improvements – Local Match* $5,750,000 City of Redmond Facility Intersection Improvements $6,450,000 Additional Signalization Projects $3,705,000 Total Motor Vehicle Master Plan Cost $188,380,000 *provided in Draft City of Redmond CIP Update
Motor Vehicle Action Plan A motor vehicle system action plan project list was created to identify motor vehicle projects that are reasonably expected to be funded by the year 2030, which meets the requirements of the
setting and roadside culture is not one that would not likely be approved for signalization by the State Traffic Engineer.
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updated Transportation Planning Rule5. Several improvements identified for construction (Action Plan project numbers 13, 17, 18 and 30 as shown in Figure 9-8) are outside UGB. To address this issue, planning of these facilities should occur within the Deschutes County TSP process and may require an exception to the Statewide Planning Goals and/or additional UGB expansion to encapsulate the alignments. In addition to facility capacity needs previously discussed in the Master Plan, the City has modernization and reconstruction needs for existing facilities. The City of Redmond CIP currently identifies several locations for modernization/reconstruction improvements as listed in Table 9-14. The costs of the remaining components (capacity projects) of the Motor Vehicle Action Plan are summarized in Table 9-15. The inclusion of the action plan projects is reflected in the intersection performance listed in Table 9-7 and shown in Figure 9-6. Figure 9-8 shows the location of the action plan projects. Table 9-14: Facility Modernization/Reconstruction – Included in CIP Action Cost CIP No Plan No Project Description (x$1,000)* SW 27th St reconstruction and extension from Yew Ave 9 50 $7,000 Interchange to Highland Ave. 2002-6 51 Maple Ave reconstruction from NW 19th St to NW 27th St $680 2002-9 52 Antler Ave Modernization: Extend to E UGB $1,610 N Canal Blvd reconstruction from Antler Ave to US 97 8 53 $2,695 Reroute A 54 Airport Way reconstruction south of airport $1,670 2002-8 55 Hemlock Avenue Modernization Project $2,600 2002-10 56 Obsidian Avenue Modernization/Street In-fill $120 2002-13 58 NW 35th Street Modernization $1,795 Total of Current Modernization/Reconstruction CIP Projects $18,170 Note: *An annual factor of 8% was applied to 2004 CIP costs to account for inflation.
Table 9-15: Motor Vehicle Action Plan Cost Summary Project Type Cost Currently Funded CIP Capacity Projects $18,850,000 ODOT Facility Capacity Improvements - Local Match* $18,135,000 City of Redmond Facility Capacity Improvements $126,790,000 ODOT Facility Intersection Improvements – Local Match* $5,750,000 City of Redmond Facility Intersection Improvements $6,450,000 Additional Signalization Projects $3,705,000 Total Motor Vehicle Action Plan Cost $179,680,000 *provided in Draft City of Redmond CIP Update
5 OAR Chapter 660, Department of Land Conservation and Development, Division 012, Transportation Planning, adopted on March 15, 2005, effective April 2005.
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Figure 9-8: Motor Vehicle Action Plan (GRAPHIC IS UNAVAILABLE ELECTRONICALLY)
City/ODOT Intergovernmental Agreement #28621 – Redmond Eastside Industrial Zone Change
The City and State (Oregon Department of Transportation), entered into an Intergovernmental Agreement (IGA #28621) in September, 2013 for the purpose of establishing the mitigation necessary for traffic impacts anticipated from the rezone of 465 acres from Open Space Park Reserve to Light Industrial, Heavy Industrial and Limited Service Commercial. The IGA includes a transportation mitigation plan as Exhibit B which establishes the 13 necessary improvements, with the phasing, timing and cost estimates for each included therein. These mitigation items are currently included in the TSP but have been changed to be specific to the impacts associated with the zone change authorized by S.B. 1544. The transportation mitigation plan is based on a Traffic Impact Analysis which evaluated the amount and types of traffic expected to be generated within and from the rezone of the subject area – referred to as the East Redmond Industrial Site (ERIS). The City and ODOT have agreed that the traffic analysis was done in accordance with Oregon Senate Bill 1544 which authorized specific actions related to the analysis, including the establishment of a transportation mitigation plan (Table 9-16) and, ultimately, the acceptance of higher levels of congestion through the development of alternative mobility standards (which are not part of the City TSP, but are anticipated for inclusion into the Oregon Highway Plan upon approval by the Oregon Transportation Commission). Together, the elements of the transportation mitigation plan (Table 9-16) and the alternative mobility standards are deemed appropriate solutions for the traffic impacts anticipated from the rezone of the ERIS. Following the formal rezone of the ERIS, the development thereof shall be subject to the provisions (improvement projects, phasing, timing, estimated costs) included in the transportation mitigation plan Table 9-16).
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Table 9-16: East Redmond Industrial Site Transportation Mitigation Plan (City/ODOT IGA #28621)
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EXHIBIT B TO ORDINANCE 2013-17
FINDINGS OF THE REDMOND CITY COUNCIL REGARDING PA-13-2, REDMOND TRANSPORTATION SYSTEM PLAN AMENDMENT CITY OF REDMOND ORDINANCE #2013-17
AN AMENDMENT TO THE REDMOND TRANSPORTATION SYSTEM PLAN TO ADOPT A TRANSPORTATION MITIGATION PLAN AS AN ELEMENT OF AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF REDMOND AND THE STATE OF OREGON-OREGON DEPARTMENT OF TRANSPORTATION.
FILE NO. PA 13-2
REQUEST: A Legislative Amendment to the City of Redmond Transportation System Plan (TSP - which is an component of the Redmond Comprehensive Plan), to adopt a Transportation Mitigation Plan which is an element of Intergovernmental Agreement (IGA) between the City of Redmond and the State of Oregon.
APPLICANT: City of Redmond 716 SW Evergreen Avenue P O Box 726 Redmond, OR 97756
LOCATION: The proposal is not site specific.
STAFF: James Lewis, Planning Manager Heather Richards, Community Development Director
HEARINGS Redmond Planning Commission BODY: Redmond City Council
DATE& TIME: Planning Commission – November 19, 2013 at 6:30 p.m. LOCATION: City Council – December 10, 2013 at 7:00 pm City Council Chambers, 777 Deschutes Avenue, Redmond, Oregon
I. APPLICABLE PLAN/CODE SECTIONS AND CRITERIA:
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The Redmond Development Code, Article III, Land Use Procedures.
The Redmond Transportation System Plan -Chapter 9, Motor Vehicle Master Plan
The Redmond Urban Area Comprehensive Plan, including: -Chapter 1, Citizen Involvement -Chapter 2, Land Use Planning -Chapter 12, Transportation
Oregon Administrative Rule (OAR), LCDC, Division 15, Statewide Planning Goals and Guidelines – OAR 660-015-0000 (as applicable).
Not Applicable Oregon Administrative Rule (OAR), LCDC, Division 12, Statewide Planning Goals and Guidelines – OAR 660-012-0000 (specifically OAR 660-012-0060, Transportation Planning Rule) is not applicable because the proposal is not property specific and does not include any zoning changes, or changes to the allowable uses in a zone that would affect the number of trips or functional classifications of roads/streets in Redmond. Rather, the proposal is to adopt mitigation necessitated through an IGA between the City of Redmond and the Oregon Department of Transportation to implement the provisions of Senate Bill 1544 which exempts a rezone of 465 acres known as the East Redmond Industrial Site from compliance with the Transportation Planning Rule.
II. BACKGROUND & HISTORY: During the 2012 legislative session, the Oregon Legislature passed Senate Bill 1544 which authorized the rezone of approximately 465 acres of land on Redmond’s east side from OSPR to M1, M2 and C4A. The Senate Bill specifically authorized such rezone without the necessity to strictly adhere to the provisions of OAR 660-012, the Transportation Planning Rule (TPR). Past efforts to rezone the property have not been feasible because of constraints associated with the ability to fund transportation system improvements identified as necessary mitigation for future traffic impacts through compliance with the TPR. Included among the identified improvements was the construction of the southern half of the US Highway 97 re-route (Phase 2) at an estimated cost that reached into the hundreds of millions of dollars. Through the Senate Bill, it was determined that the site had the potential as leverage for regional, national and global business recruitment opportunities and the inability to rezone the property because of any feasible compliance with the TPR would have a derogatory effect on the economies of Redmond, the Central Oregon region and the State of Oregon. As a result of these factors, the legislature concluded through Senate Bill 1544 that alternative measures for mitigating traffic resulting from build out of the rezoned land were appropriate and that compliance with the TPR was not required as a precursor to rezoning. Ultimately, alternative mitigation (as proposed for inclusion in the TSP through this amendment), as well as alternative mobility standards decided through a separate process with the Oregon Transportation Commission, were deemed appropriate.
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III. PROPOSAL: A Legislative Amendment to the City of Redmond Transportation System Plan (TSP - which is an component of the Redmond Comprehensive Plan), to adopt a Transportation Mitigation Plan which is an element of Intergovernmental Agreement (IGA) between the City of Redmond and the State of Oregon.
IV. JURISDICTIONAL COORDINATON: This proposal is resulting directly from Oregon Senate Bill 1544 which directed the City and ODOT to enter into an Intergovernmental Agreement regarding necessary mitigation for the rezone of the East Redmond Industrial Site. As a result of the execution of the agreement between both parties, the mitigation is proposed for inclusion in the City TSP as presented herein.
V. EXHIBITS: The following exhibits make up the record in this matter:
1. Proposed Findings and Conclusions included herein. 2. Senate Bill 1544. 3. Intergovernmental Agreement #28621 between the City of Redmond and ODOT, specifically Exhibit B thereto 4. The City of Redmond Transportation System Plan, specifically Chapter 9. 5. Notice of Planning Commission Public Hearing - Redmond Spokesman- November 19th, 2013 hearing date (file). 6. Notice of City Council Public Hearing - Redmond Spokesman- December 10th, 2013 hearing date (file). 7. Planning Commission Work Session/Public Hearing Staff Reports. 8. City Council Work Session/Public Hearing Staff Reports.
VI. SUMMARY:
1. The proposal includes a Legislative Amendment to the City of Redmond Transportation System Plan, to adopt a Transportation Mitigation Plan as a requirement of Intergovernmental Agreement #28621 between the City of Redmond and ODOT.
2. Oregon Senate Bill exempted a rezone of 465 acres known as the East Redmond Industrial Site from compliance with the Oregon Transportation Planning Rule.
3. Pursuant to Oregon Senate Bill 1544, the Transportation Mitigation Plan is authorized as adequate mitigation for anticipated impacts associated with the rezone of the East Redmond Industrial Site. S.B. 1544 authorized such mitigation (through the IGA), as well as alternative mobility standards adopted as part of the Oregon Transportation Plan via a separate process with the Oregon Transportation Commission.
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4. By adopting the Transportation Mitigation Plan as part of the City TSP, Redmond will be memorializing the necessary transportation improvements to adequately mitigate the traffic impacts with future build-out of the subject property.
VII. FINDINGS AND CONCLUSIONS:
1. In conformity with all applicable State statutes;
Finding: The State statutes that directly apply to this application include ORS 197.610, Local Government Notice of Amendment or New Regulation; ORS 197.250, Compliance with Goals Required, and ORS 197.763, Conduct of Local Quasi-Judicial Land Use Hearings; Notice Requirements. The applicable City of Redmond Development Code standards (sections 8.1100 through 8.1125, Legislative Procedures), were developed in compliance with the applicable State Statutes listed above regarding noticing and public hearings. Applicability of the Statewide Planning Goals is addressed in greater detail below – those findings, incorporated by reference herein, show compliance with the applicable Statutes listed above.
With regard to the Statutory noticing requirements referenced above, notice of the proposed amendment has been provided to DLCD and advertised in the local newspaper (public notice) as required by City Code and State Statute copies of those notices and confirmation of printing is part of the record.
With regard to the Statutory public hearing requirements referenced above, this proposal is legislative and not quasi-judicial in nature However, for lack of specific Statutory requirements governing such legislative actions, Sections 8.1100 through 8.1125 of the Redmond Development Code which implement the quasi-judicial Statutory requirements in a similar fashion have been met. Subsequently, the Planning Commission and (ultimately) City Council’s public hearing and review processes meet the Statutory requirements for the purpose of the review.
Notwithstanding the Statutory requirements addressed herein, the Oregon Administrative Rules (OAR) also implement the Statutes. The applicable Rules are addressed in the ensuing review.
Conclusion: Based on the findings above, the proposed Comprehensive Plan amendment conforms to applicable State statutes.
2. In conformity with the State-wide planning goals whenever they are determined to be applicable:
Finding: The proposed amendments do not directly implement a specific comprehensive planning requirement of the Statewide Planning Goals, State Statutes or Administrative Rules concerning the necessary provision for TSP’s – the Transportation Mitigation Plan does not
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include provisions that are directly applicable to the substantive “land use” elements of the Goals, meaning that such improvements are not specifically required as elements of the local TSP. Rather, the mitigation plan is authorized via Senate Bill 1544 which directed a specific agreement between the City and ODOT regarding a specific zone change of property. The mitigation plan is however required to ensure adequate function of the City and State transportation facilities similar to but in lieu of demonstrating compliance with the Transportation Planning Rule (the Senate Bill exempted the zone change from TPR compliance). Notwithstanding this finding, Goal 12 is addressed herein to further demonstrate that the inclusion of the Transportation Mitigation Plan as part of the TSP is addressing the intent of Goal 12 to tie land use and transportation impacts in a cohesive plan. Thus, the only applicable Statewide Planning Goals addressed in this findings document are: Goal 1 (Citizen Involvement); 2 (Land Use Planning); and, Goal 12 (Transportation). All the listed Goals are addressed below.
Goal 1- Oregon’s Statewide Planning Goals: Citizen Involvement. To develop a citizen involvement program that insures the opportunity for citizens to be involved in all phases of the planning process.
Finding: The Urban Area Planning Commission serves as the City’s formal citizen advisory committee to fulfill Goal 1, and is made up of Redmond area residents. The City conducted public meetings (a Planning Commission work session and public hearing) in November, 2013, regarding the proposal. Public notices and agendas for Planning Commission meetings where the proposed amendments were discussed were provided. All documents were available for the public review. Further, public notice advertising the public hearing was published in the local newspaper, the Redmond Spokesman. Additionally, a public hearing was held before the City Council, with required public notice provided. Thus, the City provided public review and involvement opportunities during/via the public work sessions and public hearings both at the Planning Commission level and City Council level as deemed necessary by such bodies. Based on these actions, Oregon Planning Goal 1 for Citizen Involvement has been met.
Goal 2- Oregon’s Statewide Planning Goals: Land Use Planning. To establish a land use planning process and policy framework as a basis for all decisions and actions related to use of land and to assure an adequate factual base for such decisions and actions.
Finding: The staff, the Redmond Urban Area Planning Commission and the Redmond City Council, have received input from other City staff and residents of the community as part of this proceeding. Because the Transportation System Plan (TSP) is an element of the Comprehensive Plan, the required formal process has been followed for the amendments to the TSP Plan as required by the City’s Land Use Procedures Ordinance. Ultimately, the proposed amendments will better implement policies of the Comprehensive Plan regarding the function of the City’s overall transportation system under the IGA with ODOT. Based on these findings, the proposed amendments are in conformance with Goal 2.
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Goal 12 - Oregon’s Statewide Planning Goals: Transportation. To provide and encourage a safe, convenient and economic transportation system.
Finding: The proposed amendments will alter the Comprehensive Plan by acknowledging changes to the Transportation System Plan (which is an element of the Comprehensive Plan) pursuant to the IGA with ODOT - which further implements Senate Bill 1544. These changes have been deemed necessary as traffic mitigation for transportation impacts resulting from a zone change of 465 acres of property known as the East Redmond Industrial Site. The changes will memorialize the necessary transportation improvements, and will specify timing, phasing and costs associated with each item listed therein. Ultimately, the transportation mitigation plan added to the TSP will allow a continued enhancement of the local economy while ensuring a safe and convenient transportation system in the City.
Conclusion: Based on these findings, the proposed Transportation System Plan (Comprehensive Plan) amendments conform to the applicable Statewide planning goals addressed herein.
3. In conformity with the Redmond Comprehensive Plan, land use requirements and policies:
Chapter 1 – Redmond Comprehensive Plan: Citizen Involvement. To develop a citizen involvement program that insures the opportunity for citizens to be involved in all phases of the planning process.
Finding: The Urban Area Planning Commission serves as the City’s formal citizen advisory committee (as required by State Administrative Rule) and is made up of Redmond area residents. The Planning Commission is formally recognized through City Code and was appointed by the City Council. Thus, the Planning Commission is the appropriate public review and recommendation body to/of the City to meet this Comprehensive Plan policy.
The City, through the Planning Commission, conducted an initial public meeting (work session) and a public hearing over the past month regarding the proposed amendments. Public notices and agendas for Planning Commission meetings where the proposed amendments were discussed were provided. All documents were available for the public review. Further, a notice of the initial public hearing was published in the local newspaper, the Redmond Spokesman, as required. The City has continually provided opportunities for public review and involvement during the public work sessions and public hearings both at the Planning Commission and City Council levels as deemed necessary by such bodies.
The proposed amendments serve the following Policies of Chapter 1 of the Redmond Comprehensive Plan.
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1. The City shall establish a citizen involvement program to provide for widespread citizen involvement.
2. The citizen involvement program shall involve a cross-section of affected citizens in all phases of the planning process.
3. The City shall assign the Redmond Urban Area Planning Commission as its officially recognized committee for citizen involvement (CCI).
4. The City shall establish mechanisms to assure two-way communications between citizens and elected and appointed officials.
5. The City shall provide the opportunity for citizens to be involved in all phases of the planning process.
6. The City shall assure that technical information is available to citizens in an understandable form.
7. The City shall assure that recommendations resulting from the citizen involvement program shall be retained and made available for public assessment. Citizens who have participated in this program shall receive a response from policy-makers.
8. The City shall allocate adequate human, financial and informational resources for the citizen involvement program.
Subsequent to the Planning Commission review process outlined above, the same process was followed with the City Council prior to adoption of Ordinance 2013-17 adopting the amendments.
Chapter 2 – Redmond Comprehensive Plan: Land Use Planning. To establish a land use planning process and policy framework as a basis for all decisions and actions related to use of land and to assure an adequate factual base for such decisions and actions.
Finding: The staff, the Planning Commission and the City Council have provided opportunities for public input throughout the review process. Based on this opportunity, the City Council finds that the proposed amendment process is necessary to implement Chapters 1 and 2 of the City of Redmond’s Comprehensive Plan, specifically, and other Chapters through the adoption of necessary transportation mitigation for continued function of the City’s transportation system. The City Council has further determined that enough factual and policy basis exists to support the proposed TSP/Comprehensive Plan amendments. The proposed amendments will more specifically implement the necessary mitigation for anticipated traffic impacts associated with the East Redmond Industrial Site zone change and will provide clear requirements listed in the TSP for the City staff to administer.
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The proposed amendments serve the following Policies of Chapter 2 of the Redmond Comprehensive Plan.
2. The plan shall be the basis for specific implementation measures. These measures shall be consistent with and adequate to carry out the plans. Each plan and related implementation measure shall be coordinated with the plans of affected governments.
3. All land use plans and implementation ordinances shall be adopted by the governing body after public hearing and shall be reviewed and, as needed, revised on a periodic cycle to take into account changing public policies and circumstances, in accord with a schedule set forth in the plan.
4. Opportunities shall be provided for review and comment by citizens and affected governmental units during preparation, review and revisions of plans and implementing ordinances
5. To provide a sound basis for orderly and efficient urbanization by establishing proper relationships between residential, commercial, industrial, public and open land uses, and transportation uses.
Chapter 12 – Redmond Comprehensive Plan: Transportation.
Finding: The proposed amendments will alter the Comprehensive Plan by acknowledging changes to the Transportation System Plan (which is an element of the Comprehensive Plan) pursuant to the IGA with ODOT - which further implements Senate Bill 1544. These changes have been deemed necessary as traffic mitigation for transportation impacts resulting from a zone change of 465 acres of property known as the East Redmond Industrial Site. The changes will memorialize the necessary transportation improvements, and will specify timing, phasing and costs associated with each item listed therein. Ultimately, the transportation mitigation plan added to the TSP will allow a continued enhancement of the local economy while ensuring a safe and convenient transportation system in the City.
The proposed amendments serve the following Policies of Chapter 12 of the Redmond Comprehensive Plan.
Transportation System Management 1. Plan or ordinance amendments which significantly affect a transportation facility shall assure that the allowed land uses are consistent with the identified function, capacity and level of service of the facility. This shall be accomplished by either:
a) Limiting allowed land uses to be consistent with the present function, capacity and level of service of the facility, or
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b) Amending the TSP and capital improvement programs to provide the transportation facilities adequate to support the proposed land uses, or c) Altering land use designations, densities, or design requirements to reduce demand for automobile travel and meet travel needs through other modes.
Conclusion: Based on the findings provided above, the proposed amendment conforms with the existing Redmond Comprehensive Plan policies, and further the intent of such policies by the specific amendment proposed to the TSP.
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CONCLUSION: The Redmond City Council concludes that the above findings demonstrate that the proposed amendment to the City of Redmond Transportation System Plan/Comprehensive Plan, the adoption of a Transportation Mitigation Plan as a component of City/ODOT Intergovernmental Agreement #28621, satisfy all applicable local and state requirements as described herein.
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