75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
 
 
                            Enrolled
 
                         House Bill 2228
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Governor Theodore R.
  Kulongoski for Department of Land Conservation and Development)
 
 
                     CHAPTER ................
 
 
                             AN ACT
 
 
Relating to transfer of development rights from resource lands;
  and declaring an emergency.
 
Be It Enacted by the People of the State of Oregon:
 
  SECTION 1.  { + The Legislative Assembly finds that:
  (1) Providing for rural unemployment reductions and living wage
job opportunities brings stability to economically distressed
rural communities.
  (2) Sections 1 to 9 of this 2009 Act are intended to reduce
unemployment and create living wage jobs in economically
distressed counties.
  (3) Working forests make vital contributions to Oregon by
providing jobs, timber, timber products, tax base and other
social and economic benefits, by helping to maintain soil, air
and water resources, by reducing levels of carbon dioxide in the
atmosphere and by providing habitat for wildlife and aquatic
life.
  (4) Population growth, escalating land values, increasing risks
due to wildfire and invasive species, and changes in land
ownership and management objectives, with a resulting increase in
conflict caused by dispersed residential development, require
that new methods be developed to facilitate continued management
of private lands zoned for forest use for timber harvest.
  (5) It is the public policy of the State of Oregon to:
  (a) Explore alternative methods to encourage the continued
management of private forestlands for timber production.
  (b) Protect water quality, wildlife habitat and other important
natural resources by limiting location of dispersed residential
development on forestlands.
  (c) Provide for an orderly and efficient transition from rural
to urban land uses by establishing locations at which residential
development rights or development opportunities transferred from
forestlands may be used.
  (d) Provide for a limited number of demonstration projects for
small-scale recreation communities that:
  (A) Create incentives for economic development in areas that
are in need of long-term job creation;
  (B) Enhance the state's leadership in sustainability and
natural resource stewardship;
 
 
 
 
Enrolled House Bill 2228 (HB 2228-B)                       Page 1
 
 
 
  (C) Encourage appropriate public access to and stewardship of
recreational resources on public lands consistent with the
carrying capacity of the lands and resources; and
  (D) Provide for additional sources of long-term funding for
stewardship of natural resources. + }
  SECTION 1a. { +  Sections 1 to 9 of this 2009 Act may be cited
as the Rural Unemployment Reductions and Living-Wage Job
Opportunities Bring Stability Act or the RURAL JOBS Act. + }
  SECTION 2.  { + As used in sections 2 to 5 of this 2009 Act:
  (1) 'Management plan' means the management plan for the
Metolius River Basin that was recommended to the Legislative
Assembly on April 2, 2009, by the Land Conservation and
Development Commission.
  (2) 'Metolius resort site' means land mapped as eligible for
destination resort siting under ORS 197.455 by Jefferson County
that has not been developed as a resort.
  (3) 'Overnight lodgings' has the meaning given that term in ORS
197.435.
  (4) 'Tract' has the meaning given that term in ORS 215.010. + }
  SECTION 3.  { + (1) Notwithstanding ORS 215.700 to 215.780, one
or two small-scale recreation communities may be established on
forestlands as specified in sections 2 to 5 of this 2009 Act.
  (2) If, within 90 days after the effective date of this 2009
Act, the owner of a Metolius resort site notifies the Department
of Land Conservation and Development that it has elected to seek
approval of a small-scale recreation community, the owner may,
within two years after the effective date of this 2009 Act, apply
to a county for approval of a small-scale recreation community.
  (3) A small-scale recreation community authorized under
sections 2 to 5 of this 2009 Act may be established only in
conjunction with a transfer of development opportunity from a
Metolius resort site. A transfer of development opportunity must
be carried out through an agreement between the owner of a
Metolius resort site and the owner of the site proposed for
development of a small-scale recreation community. In the
agreement, the owner of the Metolius resort site must:
  (a) Agree to limit the use of the Metolius resort site,
consistent with the management plan in consideration for the
opportunity to participate in the development of the small-scale
recreation community; and
  (b) Agree to grant a conservation easement pursuant to ORS
271.715 to 271.795 that:
  (A) Limits the use of the Metolius resort site to be consistent
with the management plan;
  (B) Allows public access to that portion of the site that is
not developed; and
  (C) Contains other provisions, as required by the Department of
Land Conservation and Development, that are necessary to ensure
that the conservation easement is enforceable.
  (4) A small-scale recreation community authorized under
sections 2 to 5 of this 2009 Act must be sited on land that is:
  (a) Planned and zoned for forest use; and
  (b) Within a county that has a seasonally adjusted average
annual unemployment rate over the preceding 10 calendar years
that is more than 110 percent of the unemployment rate for the
entire state over the same period, as reported by the Employment
Department.
  (5) A small-scale recreation community authorized under
sections 2 to 5 of this 2009 Act may not be sited on land that
is:
 
 
Enrolled House Bill 2228 (HB 2228-B)                       Page 2
 
 
 
  (a) Within an area identified as 'Area 1' or 'Area 2' in the
management plan.
  (b) Within an area described in ORS 197.455 in which
destination resorts may not be sited.
  (c) Within an area protected by or inventoried as a significant
resource in an acknowledged comprehensive plan provision
implementing statewide land use planning goals relating to:
  (A) Open space, scenic and historic areas and natural
resources;
  (B) Estuarine resources;
  (C) Coastal shorelands; or
  (D) Beaches and dunes.
  (d) Within an area identified as subject to a natural hazard by
an acknowledged comprehensive plan provision implementing a
statewide land use planning goal relating to protection from
natural hazards. + }
  SECTION 4.  { + (1) A small-scale recreation community
authorized under sections 2 to 5 of this 2009 Act must meet the
following development standards:
  (a) The community must be located on a tract that contains 200
or fewer acres of land.
  (b) The community must consist of 240 or fewer units and have
as its primary purpose the provision of overnight lodging units.
  (c) The community may contain one restaurant containing 5,000
or fewer square feet, and accessory uses necessary to the
operation of the community, including accessory recreational
facilities.
  (d) The owner of the property must spend at least $1.5 million
on off-site resource enhancement or restoration projects on
nearby public lands that will be used by individuals from the
community.
  (e) The community may not include a golf course or related
facilities.
  (f) The community must be developed and operated in a
sustainable manner by meeting the following criteria:
  (A) When fully developed, the community must use reclaimed
water as the primary source of water for any irrigation of
grounds.
  (B) Facilities for snowmobiling or other motorized recreational
activities are not permitted.
  (C) At least 50 percent of the tract on which the community is
located must be dedicated to permanent open space that is
contiguous and demonstrates the biological viability of the site
as habitat or that provides ecosystem services to the area.
  (D) Significant natural resource functions and values on the
site must be preserved.
  (E) Impervious surfaces, including rooftops and paved roads,
trails and parking areas may not exceed 35 percent of the total
site area.
  (F) Potable water usage must achieve a 20 percent reduction
below standard code-built developments. Reclaimed water usage for
nonpotable water needs may account for the entire reduction
required.
  (G) Stormwater must be managed on-site. Off-site runoff must be
limited to predevelopment runoff rates.
  (H) A restaurant, lodge or other nonresidential building must
be designed and constructed to meet regionally or nationally
recognized design standards for sustainable design that are
acceptable to the county having land use jurisdiction over the
proposed development site.
 
 
Enrolled House Bill 2228 (HB 2228-B)                       Page 3
 
 
 
  (I) Residential buildings must be designed and constructed to
meet regionally or nationally recognized design standards for
sustainable design that are acceptable to the county having land
use jurisdiction over the proposed development site. The
developer must achieve certification for all buildings, with at
least 50 percent of the buildings achieving a top-tier rating
under the rating system selected.
  (J) Additional housing capable of housing at least 50 percent
of the peak season employees must be provided on-site.
  (2) In addition to the development standards described in
subsection (1) of this section, a small-scale recreation
community must:
  (a) Develop an environmental operations manual that describes
core practices for operating the small-scale recreation
community, including:
  (A) Waste reduction, recycling and diversion practices.
  (B) Cleaning and site maintenance practices.
  (C) Staff education practices.
  (D) Commitment of the community to environmental stewardship.
  (b) Establish a conservation stewardship organization, as a
separate nonprofit entity funded through income generated by the
development, that is charged with:
  (A) Development of a baseline study that establishes the
current level and condition of the local environment. As part of
the baseline study, the organization must develop a long-term
stewardship plan that targets net creation and rehabilitation of
resources, on-site and off-site.
  (B) Ongoing review, election and management of habitat
restoration projects that implement the goal of the long-term
stewardship plan.
  (C) Education and outreach on environmental stewardship.
  (c) Organize and manage volunteers working to conserve local
resources.
  (d) Monitor performance of energy and water usage and site
development standards versus actual practice.
  (e) Audit and publish annually a report of the community's
performance result for the preceding year. + }
  SECTION 5.  { + (1) An application for a small-scale recreation
community under sections 2 to 5 of this 2009 Act may be filed
only by the owner of a Metolius resort site and the owner of the
site on which development of the small-scale recreation community
is proposed and must be filed jointly by the owners. The owners
shall file a copy of the application with the Department of Land
Conservation and Development at the same time that the owners
file the application with the county having land use jurisdiction
over the proposed development site.
  (2) A county shall review an application for a small-scale
recreation community under sections 2 to 5 of this 2009 Act as a
conditional use in a forest zone and as a land division under ORS
chapter 92.
  (3) In addition to the standards set forth in sections 2 to 5
of this 2009 Act, the small-scale recreation community must meet
the land division standards and other development standards of
the county, including standards for streets, utilities and
services, unless the standards conflict with sections 2 to 5 of
this 2009 Act. If the development standards of the county are
dependent on the zoning of the site, the county shall apply the
development standards for an urban residential zone with the
highest population density.
 
 
 
Enrolled House Bill 2228 (HB 2228-B)                       Page 4
 
 
 
  (4) If more than two applications for a small-scale recreation
community are filed under sections 2 to 5 of this 2009 Act and a
county has not yet approved an application, the department shall
determine which of the applications may proceed, taking into
consideration:
  (a) The time at which each application was filed;
  (b) The unemployment rate in the counties, if more than one
county is involved; and
  (c) The findings set forth in section 1 of this 2009 Act.
  (5) When two applications for small-scale recreation
communities have been approved, additional applications may not
be considered.
  (6) A county may charge a fee to cover the costs of processing
an application. + }
  SECTION 6.  { + (1) There is established the Oregon Transfer of
Development Rights Pilot Program in the Department of Land
Conservation and Development. Working with the State Forestry
Department, the State Department of Agriculture and local
governments and with other state agencies, as appropriate, the
Department of Land Conservation and Development shall implement
the pilot program.
  (2) The Land Conservation and Development Commission shall
adopt rules to implement the pilot program. The commission, by
rule, may:
  (a) Establish a maximum ratio of transferable development
rights to severed development interests in a sending area for
each pilot project. The maximum ratio:
  (A) Must be calculated to protect lands planned and zoned for
forest use and to create incentives for owners of land in the
sending area to participate in the pilot project; and
  (B) May not exceed one transferable development right to one
severed development interest if the receiving area is outside of
an urban growth boundary.
  (b) Require participating owners of land in a sending area to
grant conservation easements pursuant to ORS 271.715 to 271.795,
or otherwise obligate themselves, to ensure that additional
residential development of their property does not occur.
  (c) Require participating owners of land in a sending area to
allow reasonable public access to the property.
  (3) The commission, by rule, shall establish a process for
selecting pilot projects from among potential projects nominated
by local governments. The process must require local governments
to nominate potential projects by submitting a concept plan for
each proposed pilot project, including proposed amendments, if
any, to the comprehensive plan and land use regulations
implementing the plan that are necessary to implement the pilot
project.
  (4) When selecting a pilot project, the commission must find
that the pilot project is:
  (a) Reasonably likely to provide a net benefit to the forest
economy or the agricultural economy of this state;
  (b) Designed to avoid or minimize adverse effects on
transportation, natural resources, public facilities and
services, nearby urban areas and nearby farm and forest uses; and
  (c) Designed so that new development authorized in a receiving
area does not conflict with a resource or area inventoried under
a statewide land use planning goal relating to natural resources,
scenic and historic areas and open spaces, or with an area
identified as a conservation opportunity area in the ' Oregon
 
 
 
Enrolled House Bill 2228 (HB 2228-B)                       Page 5
 
 
 
Conservation Strategy,' 2006, by the State Department of Fish and
Wildlife.
  (5) The commission may select up to three pilot projects for
the transfer of development rights under sections 6 to 8 of this
2009 Act.
  (6) A sending area for a pilot project under sections 6 to 8 of
this 2009 Act:
  (a) Must be planned and zoned for forest use;
  (b) May not exceed 10,000 acres; and
  (c) Must contain four or fewer dwelling units per square mile.
  (7) The commission may establish additional requirements for
sending areas.
  (8)(a) Except as provided otherwise in paragraph (b) of this
subsection, a local government participating in a pilot project
shall select a receiving area for the pilot project based on the
following priorities:
  (A) First priority is lands within an urban growth boundary;
  (B) Second priority is lands that are adjacent to an urban
growth boundary and that are subject to an exception from a
statewide land use planning goal relating to agricultural lands
or forestlands;
  (C) Third priority is lands that are within an urban
unincorporated community or a rural community in an acknowledged
comprehensive plan.
  (b) The commission may authorize a local government to select
lower priority lands over higher priority lands for a receiving
area in a pilot project only if the local government has
established, to the satisfaction of the commission, that
selecting higher priority lands as the receiving area is not
likely to result in the severance and transfer of a significant
proportion of the development interests in the sending area
within five years after the receiving area is established.
  (c) If lands described in paragraph (a)(B) of this subsection
are selected for use as a receiving area in a pilot project, the
minimum residential density of development allowed under sections
6 to 8 of this 2009 Act must be at least 10 dwelling units per
net acre.
  (d) A receiving area may not be located within 10 miles of the
Portland metropolitan area urban growth boundary.
  (9) The commission may establish additional requirements for
receiving areas.
  (10) The commission, by rule, may provide a bonus in the form
of a higher ratio if a substantial portion of the new development
in the receiving area of the pilot project is affordable housing
within an urban growth boundary. + }
  SECTION 7.  { + (1) Notwithstanding contrary provisions of
statewide land use planning goals relating to public facilities
and services and urbanization, and notwithstanding ORS 215.700 to
215.780, a local government may change its comprehensive plan and
land use regulations implementing the plan to allow residential
development in a receiving area consistent with sections 6 to 8
of this 2009 Act if the Land Conservation and Development
Commission has approved a concept plan for the pilot project.
  (2) The local governments having land use jurisdiction over
lands included in the sending area and the receiving area for the
pilot project shall adopt amendments to their respective
comprehensive plans and land use regulations implementing the
plans that are consistent with subsection (3) of this section.
  (3) When the commission has approved a proposed concept plan,
the local governments having land use jurisdiction over the
 
 
Enrolled House Bill 2228 (HB 2228-B)                       Page 6
 
 
 
affected sending area and affected receiving area shall adopt
overlay zone provisions and corresponding amendments to the
comprehensive plan and land use regulations implementing the plan
that identify the additional residential development allowed
through participation in the pilot project. The Department of
Land Conservation and Development shall review the overlay zones
and corresponding comprehensive plan amendments in the manner of
periodic review under ORS 197.628 to 197.650.
  (4) Notwithstanding ORS 197.296 and 197.298 and statewide land
use planning goals relating to urbanization, a local government
may amend its urban growth boundary to include adjacent lands in
a receiving area, consistent with an approved concept plan, if
the net residential density of development authorized in the
receiving area is at least 10 dwelling units per acre.
  (5) Local governments or other entities may establish a
development rights bank or other system to facilitate the
transfer of development rights.
  (6) A county shall review an application for a pilot project
under sections 6 to 8 of this 2009 Act as a comprehensive plan
amendment. A county may apply other procedures, including master
plan approval, site plan review or conditional use review as the
county finds appropriate to subsequent phases of review of the
pilot project. + }
  SECTION 8.  { + (1) The Department of Land Conservation and
Development, the State Forestry Department, a local government
participating in the Oregon Transfer of Development Rights Pilot
Program or a third-party holder identified by the Department of
Land Conservation and Development may hold, monitor or enforce a
conservation easement pursuant to ORS 271.715 to 271.795 or other
property interest to ensure that lands in sending areas do not
retain residential development rights transferred under sections
6 to 8 of this 2009 Act.
  (2) An entity that is eligible to be a holder of a conservation
easement may acquire, from a willing seller in the manner
provided by ORS 271.715 to 271.795, the right to carry out a use
of land authorized under rules of the Land Conservation and
Development Commission implementing the pilot program. + }
  SECTION 9.  { + (1) As used in this section:
  (a) 'Community forestlands' has the meaning given that term in
ORS 530.600.
  (b) 'Skyline Forest' means that certain real property
consisting of approximately 33,000 contiguous acres in Deschutes
County owned on June 1, 2009, by Cascade Timberlands (Oregon) LLC
and located within sections 7, 8, 15, 16, 17, 18, 19, 20, 21, 22,
26, 27, 28, 29, 30, 31, 32, 33, 34, 35 and 36, township 16 south,
range 10 east; sections 1, 2, 3, 4, 5, 6, 8, 9, 10, 11, 12, 13,
14, 15, 16, 22, 23, 24, 25, 26, 27, 35 and 36, township 17 south,
range 10 east; and sections 6, 7, 8, 9, 17, 18, 19, 20, 29, 30,
31, 32 and 33, township 17 south, range 11 east.
  (c) 'Skyline Forest Sustainable Development Area' means a
portion of up to 3,000 contiguous acres of the tract known as the
Skyline Forest that is located in township 16 south, range 10
east, Deschutes County: portions of the northwest quarter,
southwest quarter, southeast quarter, northeast quarter of
section 7; portions of the northwest quarter, southwest quarter,
southeast quarter of section 8; portions of the southwest quarter
of section 16; portions of the northwest quarter, southwest
quarter, southeast quarter, northeast quarter of section 17;
portions of the northwest quarter, southwest quarter, southeast
quarter, northeast quarter of section 18; section 19; portions of
 
 
Enrolled House Bill 2228 (HB 2228-B)                       Page 7
 
 
 
the northwest quarter, southwest quarter, northeast quarter of
section 20; portions of the northwest quarter of section 21;
portions of the northwest quarter of section 29; and portions of
the north half of section 30.
  (d) 'Skyline Conservation Tract' means the portion of the
Skyline Forest consisting of approximately 30,000 contiguous
acres that is not included within the Skyline Forest Sustainable
Development Area.
  (e) 'Southern Conservation Tract' means that certain real
property consisting of approximately 34,700 contiguous acres in
Deschutes and Klamath Counties owned on June 1, 2009, by Cascade
Timberlands (Oregon) LLC and located within one of the following
areas:
  (A) 'Area one' consists of approximately 14,000 acres of land
located within sections 1, 2, 3, 10, 11, 12, 13, 14, 15, 21, 22,
23, 25, 26, 27, 28, 29, 32, 33, 34 and 35 of township 22 south,
range 9 east, Deschutes County; sections 5, 6, 7, 8, 17, 18, 30
and 31 of township 22 south, range 10 east, Deschutes County;
  (B) 'Area two' consists of approximately 9,700 acres of land
located within sections 2, 3, 4, 5, 9, 10, 11, 14, 15, 17, 19,
20, 21, 22, 23, 27, 28, 29, 30, 31, 32, 33 and 34 of township 23
south, range 9 east, Klamath County and the portion of Parcel 3,
Partition Plat No. 34-08 located in township 23 south, range 9
east, Klamath County; and
  (C) 'Area three' consists of approximately 11,000 acres of land
located within sections 14, 23, 24, 25, 26, 34 and 35 of township
23 south, range 9 east; sections 3, 4 and 9 of township 24 south,
range 9 east; section 1 of township 25 south, range 7 east;
sections 1, 2, 3, 4, 9, 10, 12, 13, 14, 15, 16 and 17 of township
25 south, range 8 east; Parcel 1, Partition Plat No.  34-08
located in township 24 south, ranges 7 and 8 east, Klamath
County; the portion of Parcel 3, Partition Plat No. 34-08 located
in township 24 south, ranges 8 and 9 east, Klamath County and the
land lying west of U.S. Route 97.
  (f) 'Land trust' means the Deschutes Land Trust, an Oregon
nonprofit corporation or another nonprofit conservation
organization that is either accredited by the Land Trust
Accreditation Commission or is nationally recognized as a land
conservation organization, the primary mission of which is land
conservation.
  (2) Contingent upon satisfaction of the requirements of
subsection (3) of this section, the Skyline Forest Sustainable
Development Area may be developed and used for the following
purposes:
  (a) The Skyline Forest Sustainable Development Area may contain
up to 282 residential units, a caretaker's residence, a
restaurant, a small community store, a small-scale community
conference center, an equestrian facility, small-scale
recreational, commercial and basic service uses, and all utility,
maintenance and security facilities necessary to support the
development. The residential units may be permanent residences,
rental units or lodging units. The specific number of residential
units allowed within the Skyline Forest Sustainable Development
Area, up to a maximum of 282, is dependent upon the number of
acres of the Skyline Conservation Tract and the Southern
Conservation Tract conveyed to a land trust or a federal or state
agency pursuant to this section. Up to:
  (A) 137 residential units shall be allowed within the Skyline
Forest Sustainable Development Area in exchange for the
conveyance of the Skyline Conservation Tract to a land trust;
 
 
Enrolled House Bill 2228 (HB 2228-B)                       Page 8
 
 
 
  (B) 183 residential units shall be allowed within the Skyline
Forest Sustainable Development Area in exchange for the
conveyance of the Skyline Conservation Tract and area one of the
Southern Conservation Tract to a land trust or to a federal or
state agency;
  (C) 224 residential units shall be allowed within the Skyline
Forest Sustainable Development Area in exchange for the
conveyance of the Skyline Conservation Tract, area one and area
two of the Southern Conservation Tract to a land trust or to a
federal or state agency; or
  (D) 282 residential units shall be allowed within the Skyline
Forest Sustainable Development Area in exchange for the
conveyance of the Skyline Conservation Tract, area one, area two
and area three of the Southern Conservation Tract to a land trust
or to a federal or state agency.
  (b) The Skyline Forest Sustainable Development Area may not
contain a golf course or golf-related facilities.
  (c) All development, not including access roads and utility
lines to the Skyline Forest Sustainable Development Area and up
to five acres for maintenance and security facilities, shall be
located on 1,200 contiguous acres within the Skyline Forest
Sustainable Development Area. The owner shall use the remaining
undeveloped 1,800 acres of the Skyline Forest Sustainable
Development Area for the primary purposes of minimizing the risk
of wildfire and maintaining wildlife habitat value. However, an
equestrian facility may be located within the otherwise
undeveloped 1,800 acres if the facility is located on no more
than 40 acres contiguous to the developed portion of the Skyline
Forest Sustainable Development Area. The owner shall cause a
conservation easement pursuant to ORS 271.715 to 271.795 to be
recorded on the entirety of the undeveloped 1,800 acres
prohibiting partitions and development, but allowing recreational
uses, such as picnic grounds, trails and restrooms. The
equestrian facility permitted by this section shall also be
allowed within the conservation easement. The conservation
easement must be held by a land trust and shall contain terms
agreed to by the State Department of Fish and Wildlife and the
State Forestry Department.
  (d) Roads, utility corridors and all utility facilities
necessary to serve the Skyline Forest Sustainable Development
Area shall be allowed as outright permitted uses within the
Skyline Forest Sustainable Development Area, the Skyline Forest
and on nearby lands regardless of the comprehensive plan or
zoning designation of the lands.
  (e) The uses allowed by this subsection shall be allowed only
upon approval of a master plan as provided by subsection (5) of
this section. The master plan shall contain design criteria and
standards to ensure that sustainability principles will be
incorporated into the development and operation uses within the
Skyline Forest Sustainable Development Area. The design criteria
and standards shall promote sustainable building design, water
conservation and energy conservation.
  (f) The master plan described in subsection (5) of this section
shall incorporate design criteria and standards to ensure that
there will be negligible visual impacts under normal daylight
viewing conditions from Awbrey Butte and the Plainview scenic
turnout located on the McKenzie-Bend Highway No. 17, also known
as U.S. Route 20, near milepost 9. The design criteria and
standards shall also require all outdoor lighting to be downward
facing, to the extent practicable.
 
 
Enrolled House Bill 2228 (HB 2228-B)                       Page 9
 
 
 
  (g) The Skyline Forest Sustainable Development Area shall be
served by one primary access route and by one or more emergency
and secondary access routes that use existing roads as much as
practicable. The access routes may be private or public roads,
including roads managed by the United States Forest Service. The
primary access route shall intersect the McKenzie-Bend Highway
No.  17, also known as U.S. Route 20, between mileposts 3 and 6
to provide access from the eastern boundary of the Skyline Forest
Sustainable Development Area to the referenced highway.
  (h) The Skyline Forest Sustainable Development Area, including
all access roads, must be developed in consultation with the
State Department of Fish and Wildlife to minimize impacts on
wildlife, particularly deer and elk populations.
  (i) The Skyline Forest Sustainable Development Area, including
all access roads, must be developed in consultation with the
State Forestry Department and the United States Forest Service to
minimize wildfire risks.
  (j) The owner of the Skyline Forest Sustainable Development
Area shall provide adequate firefighting facilities and services
to address the needs of the development. All structures shall be
designed and maintained consistent with the default wildfire
safety standards of the Oregon Forestland-Urban Interface Fire
Protection Act of 1997, as set forth in administrative rules of
the State Forestry Department.
  (k) Any wells used to provide water for uses within the Skyline
Forest Sustainable Development Area shall be sited to minimize
impacts of groundwater use on Whychus Creek and Melvin Springs.
  (3) The land uses described in subsection (2) of this section
shall be allowed within the Skyline Forest Sustainable
Development Area upon the satisfaction of the following
conditions:
  (a) The owner of the Skyline Forest and the Southern
Conservation Tract transfers:
  (A) The Skyline Conservation Tract to a land trust for the
purpose of creating community forestlands; and
  (B) The Southern Conservation Tract, whether to a single buyer
or multiple buyers, to a land trust for the purpose of creating
community forestlands or to a federal or state agency.  However,
the owner may choose to retain all or a portion of the Southern
Conservation Tract, in which case the number of residential units
allowed within the Skyline Forest Sustainable Development Area
shall be limited as set forth in subsection (2)(a) of this
section.
  (b) The consideration for any transfer does not exceed the fair
market value of the property as established by an appraisal based
on the hypothetical condition or assumption that all development
rights on the properties, whether actual or potential, have been
extinguished as contemplated by subsection (6) of this section.
The appraisal must comply with the Uniform Standards of
Professional Appraisal Practice. The appraisal shall comply with
the Uniform Appraisal Standards for Federal Land Acquisitions if:
  (A) The land trust or state agency proposes, in part or in
whole, to use federal funds to purchase the property and has
demonstrated a reasonable likelihood that federal funds will be
secured for the purchase; or
  (B) The property is being conveyed to a federal agency.
  (c) The Skyline Conservation Tract and the Southern
Conservation Tract will be managed so that wildlife and
recreational values are safeguarded and the overall forest
 
 
 
Enrolled House Bill 2228 (HB 2228-B)                      Page 10
 
 
 
health, including sustainable timber production and wildfire
prevention, is maintained over the long term.
  (d) The owner of the Skyline Forest Sustainable Development
Area obtains the land use approvals required by subsection (5) of
this section.
  (4) The uses authorized by subsection (2) of this section shall
be allowed as outright permitted uses by Deschutes County,
following approval of the master plan required by subsection (5)
of this section by Deschutes County. The uses allowed by
subsection (2) of this section are allowed notwithstanding those
provisions of ORS 215.700 to 215.780 relating to lot size and
dwelling standards on forestlands, those statewide land use
planning goals relating to agricultural lands, forestlands,
public facilities and services, transportation and urbanization
and those provisions of Deschutes County's comprehensive plan and
land use regulations limiting uses of forestlands. Approval of
the master plan and land division applications required by
subsection (5) of this section for the development and use of the
Skyline Forest Sustainable Development Area and all associated
road and utility corridors may not require exceptions to any
statewide planning goal or amendment of any local comprehensive
plan or land use regulation. Deschutes County shall apply only
the provisions of this section as standards and criteria for an
application for, or amendment to, a master plan or land division
application or other development permit applications submitted
pursuant to this section.
  (5) The owner of the Skyline Forest Sustainable Development
Area may submit an application to Deschutes County for approval
of a master plan for the development and use of the area. The
application must be submitted within five years after the
effective date of this 2009 Act, subject to the following:
  (a) The master plan shall demonstrate compliance with
subsection (2) of this section and include a tentative land
division application to create the lots within the Skyline Forest
Sustainable Development Area.
  (b) Deschutes County shall process the master plan and all land
division applications pursuant to the procedural review
provisions of its local land use regulations. However, Deschutes
County shall approve the master plan and any tentative or final
land division applications if the applications are consistent
with subsections (2) and (3) of this section. No additional land
use or land division standards shall apply to the approval and
development of the Skyline Forest Sustainable Development Area.
  (c) Deschutes County shall condition final approval of the
master plan and land division applications on the execution of an
agreement to record a conservation easement in accordance with
subsection (2)(c) of this section, an agreement to transfer the
Skyline Conservation Tract to a land trust for the purpose of
creating community forestlands and, if applicable, an agreement
to transfer all or a portion of the Southern Conservation Tract
either to a land trust for the purpose of creating community
forestland or to a federal or state agency. The agreements shall
specify that recordation of the conservation easement, transfer
of the Skyline Conservation Tract and transfer of all or a
portion of the Southern Conservation Tract shall be contingent
upon the following terms:
  (A) The owner of the Skyline Forest Sustainable Development
Area shall obtain all federal, state and local licenses, permits,
rights and other entitlements necessary for development of the
 
 
 
Enrolled House Bill 2228 (HB 2228-B)                      Page 11
 
 
 
Skyline Forest Sustainable Development Area, each of which shall
be final and no longer subject to appeal;
  (B) The land trust or the federal or state agencies, as
applicable, shall obtain adequate funding to purchase the Skyline
Conservation Tract or the Southern Conservation Tract, as
applicable, in accordance with subsection (3)(b) of this section;
and
  (C) The land trust or the federal or state agencies shall
develop and implement management standards that provide
reasonable assurance to the owner of the Skyline Forest
Sustainable Development Area that the Skyline Conservation Tract
and the Southern Conservation Tract will be managed to establish
forest health, manage wildfire risk and maintain compatibility
with the Skyline Forest Sustainable Development Area.
  (d) The master plan and all associated land division plans
shall govern development of the Skyline Forest Sustainable
Development Area in perpetuity and shall not expire. Regulations
requiring the submittal of final plats within a specified time
period following tentative plan approval shall not apply to the
Skyline Forest Sustainable Development Area. The master plan may
be amended at any time following an administrative review by
Deschutes County. Deschutes County shall approve the amendments
if the amended master plan remains consistent with subsections
(2) and (3) of this section.
  (6) The Deschutes Land Trust, an Oregon nonprofit corporation,
shall have a right of last opportunity to purchase the Skyline
Conservation Tract and the Southern Conservation Tract, and any
purchase agreement shall provide a minimum of three years for the
Deschutes Land Trust to obtain funding for any purchase. If at
any time after two years from the date of any purchase agreement
or the date of filing of a master plan under subsection (5) of
this section, whichever is later, the Deschutes Land Trust has
failed to demonstrate a reasonable likelihood it will be able to
obtain the funds necessary to complete the purchase, the owner of
the Skyline Conservation Tract and the Southern Conservation
Tract may seek alternative buyers for any property that is the
subject of a purchase agreement under this subsection. The
Deschutes Land Trust will in good faith notify the owner of the
Skyline Conservation Tract and the Southern Conservation Tract if
at any time during the period of any purchase agreement the
Deschutes Land Trust concludes it does not wish to complete the
purchase or will be unable to obtain the necessary funding to
complete the purchase.
  (7) Development and construction uses within the Skyline Forest
Sustainable Development Area may proceed according to the
approved master plan once the transfer of fee title of the
Skyline Conservation Tract and, as applicable, all or a portion
of the Southern Conservation Tract, is complete. Following
transfer of fee title of the Skyline Conservation Tract and, as
applicable, all or a portion of the Southern Conservation Tract,
all development rights on the conveyed lands are extinguished and
the conveyed lands shall be thereafter managed as community
forestlands or as federal or state forestlands.
  (8) At any time within five years after the effective date of
this 2009 Act, the owner of the Skyline Forest Sustainable
Development Area may either file an application for a master plan
pursuant to subsection (5) of this section, or submit written
notice to Deschutes County and the Deschutes Land Trust stating
the owner's intent to relinquish the development opportunities
authorized by this section. Until the owner of the Skyline Forest
 
 
Enrolled House Bill 2228 (HB 2228-B)                      Page 12
 
 
 
Sustainable Development Area files a master plan application or
submits a notice of relinquishment under this subsection, the
owner may not divide, develop, obtain a lot of record
determination or prohibit public access to any portion of the
Skyline Forest. If the owner of the Skyline Forest Sustainable
Development Area submits a notice of relinquishment under this
subsection, or the owner allows the five-year time period to
elapse without taking any action under this subsection, the
development opportunities authorized by this section shall expire
and the owner may divide, develop and prohibit public access to
any portion of Skyline Forest pursuant to the laws in effect at
that time.
  (9) If the owner of the Skyline Forest Sustainable Development
Area does not file a master plan within five years of the
effective date of this 2009 Act or if Deschutes County does not
approve a master plan as provided in subsection (5) of this
section within 15 years of the effective date of this 2009 Act,
then the provisions of subsection (2) of this section shall cease
to have any force or effect.
  (10) The development opportunities provided by this section are
fully transferable and will run with the land in the event of a
change of ownership of the Skyline Forest or all or a portion of
the Southern Conservation Tract. + }
  SECTION 10.  { + On or before February 1, 2013, the Department
of Land Conservation and Development shall make a report to the
Seventy-seventh Legislative Assembly, in the manner described in
ORS 192.245:
  (1) Evaluating the Oregon Transfer of Development Rights Pilot
Program established in sections 6 to 8 of this 2009 Act; and
  (2) Recommending whether the pilot program should be continued,
modified, expanded or terminated. + }
  SECTION 11.  { + This 2009 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2009 Act takes effect on
its passage. + }
                         ----------
 
 
Passed by House May 12, 2009
 
Repassed by House June 16, 2009
 
 
      ...........................................................
                                             Chief Clerk of House
 
      ...........................................................
                                                 Speaker of House
 
Passed by Senate June 12, 2009
 
 
      ...........................................................
                                              President of Senate
 
 
 
 
 
 
 
 
Enrolled House Bill 2228 (HB 2228-B)                      Page 13
 
 
 
 
 
Received by Governor:
 
......M.,............., 2009
 
Approved:
 
......M.,............., 2009
 
 
      ...........................................................
                                                         Governor
 
Filed in Office of Secretary of State:
 
......M.,............., 2009
 
 
      ...........................................................
                                               Secretary of State
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Enrolled House Bill 2228 (HB 2228-B)                      Page 14