75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 3859
 
                         Senate Bill 983
 
Sponsored by Senators TELFER, METSGER, Representatives ROBLAN,
  WHISNANT; Representative STIEGLER
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Authorizes development of Skyline Forest Sustainable
Development Area. Makes development of area contingent on
satisfaction of certain conditions, including transfer of Skyline
Forest and all or part of Southern Conservation Tract to land
trust or public agency. Provides Deschutes Land Trust right of
first opportunity to purchase tracts. Specifies procedures and
criteria by which owner of Skyline Forest Sustainable Development
Area may develop area.
 
                        A BILL FOR AN ACT
Relating to agreement for limited development of forestlands in
  Deschutes and Klamath Counties.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + As used in sections 1 to 9 of this 2009 Act:
  (1) 'Community forestlands' has the meaning given that term in
ORS 530.600.
  (2) '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.
  (3) '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.
  (4) '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.
  (5) '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
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.
  (6) 'Southern Conservation Tract' means that certain real
property consisting of approximately 34,700 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, 8, 9 and 17 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, and
township 25 south, range 8 east, Klamath County; and the portion
of Parcel 3, Partition Plat No. 34-08, located in township 24
south, ranges 8 and 9 east, Klamath County, and all lands lying
west of U.S. Route 97. + }
  SECTION 2.  { + The Legislative Assembly finds that:
  (1) The Skyline Forest, also known as the Bull Springs Tree
Farm, is a forest resource of statewide significance with a
unique relationship to the cities of Bend and Sisters. Its 33,000
acres of undeveloped forestlands have supported the economy
through commercial forestry and have provided significant
wildlife habitat, recreational opportunities and a buffer between
the rapidly growing urban areas and the eastern flanks of Three
Sisters and Broken Top.
  (2) Existing law permits privately owned forestland to be
divided into parcels over time and developed with forest
dwellings. Such fragmented development has occurred along the
borders of the Skyline Forest. According to the latest federal
decennial census, Bend is one of the fastest growing communities
in the country. As Bend continues to grow, increased market
demand for exurban residential development in close proximity to
Bend will accelerate the pressure to divide and develop large
forested tracts such as the Skyline Forest.
  (3) Retention of a large, continuous block of undeveloped
forestland in community forest management would preserve the
scenic, recreational, commercial timber and wildlife habitat
values of the Skyline Forest.
  (4) In 2005, Deschutes County demonstrated its commitment to
community management of the Skyline Forest by creating a
community forest authority under ORS 530.600 to 530.628 to
generate funds for acquisition and management of all or a portion
of the Skyline Forest as community forestland. In exchange for
authorization of the development of a sustainable community on
approximately 3,000 acres in the northwest corner of the Skyline
Forest, the private owner will sell approximately 30,000 acres of
Skyline Forest to a land trust for management as community
forestland and approximately 34,700 acres of forestland in
southern Deschutes County and northern Klamath County to either a
land trust for the purpose of creating community forestland or to
a federal or state land management agency.
  (5) Sections 1 to 9 of this 2009 Act are consistent with a
statewide land use planning goal relating to forestlands by
maintaining the forestland base and making possible economically
efficient forest practices that ensure the continuous growing and
harvesting of forest tree species as the leading use on
forestland. The state, in cooperation with Deschutes County, can
protect the majority of Skyline Forest from the exurban
development pressures associated with the growth of the Bend area
by fostering the creation of the Skyline Community Forest
pursuant to sections 1 to 9 of this 2009 Act. + }
  SECTION 3.  { + (1) Contingent upon satisfaction of the
requirements of section 4 of this 2009 Act, the Skyline Forest
Sustainable Development Area:
  (a) May be developed and used for the following purposes:
  (A) Up to 282 permanent residences, rental units and lodging
units;
  (B) A caretaker's residence;
  (C) A restaurant;
  (D) A small community store;
  (E) A small-scale community conference center;
  (F) An equestrian facility;
  (G) Small-scale recreational, commercial and basic service
uses; and
  (H) All utility, maintenance and security facilities necessary
to support the development.
  (b) May not include a golf course or golf-related facilities.
  (2) The specific number of permanent residential units, rental
units and lodging units allowed within the Skyline Forest
Sustainable Development Area under subsection (1)(a)(A) of this
section 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;
  (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.
  (3) 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 access
roads, utility lines, maintenance and security facilities, and
recreational uses such as picnic grounds, trails, restrooms and
the equestrian facility. The conservation easement shall 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.
  (4) 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.
  (5) The uses allowed by this section shall be allowed only upon
approval of a master plan as provided by section 5 (3) of this
2009 Act. The master plan shall contain design criteria and
standards that:
  (a) Ensure that sustainability principles will be incorporated
into the development and operation of uses within the Skyline
Forest Sustainable Development Area;
  (b) Promote sustainable building design, water conservation and
energy conservation;
  (c) 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; and
  (d) Require all outdoor lighting to be downward facing, to the
extent practicable.
  (6) 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.
  (7) The Skyline Forest Sustainable Development Area, including
all access roads, must be developed in consultation with:
  (a) The State Department of Fish and Wildlife to minimize
impacts on wildlife, particularly deer and elk populations.
  (b) The State Forestry Department and the United States Forest
Service to minimize wildfire risks.
  (8) The owner of the Skyline Forest Sustainable Development
Area shall:
  (a) Provide adequate firefighting facilities and services to
address the needs of the development.
  (b) Design, develop and maintain all structures 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.
  (9) 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. + }
  SECTION 4.  { + The land uses described in section 3 of this
2009 Act shall be allowed within the Skyline Forest Sustainable
Development Area if:
  (1) The owner of the Skyline Forest Sustainable Development
Area obtains the land use approvals described in section 5 of
this 2009 Act; and
  (2) The following conditions are satisfied:
  (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 section 3 (2) of this 2009 Act.
  (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 section 6 of this 2009 Act. 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 to use federal
funds, in whole or in part, 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
health, including sustainable timber production and wildfire
prevention, is maintained over the long term. + }
  SECTION 5.  { + (1) The land uses described in section 3 of
this 2009 Act shall be allowed:
  (a) As outright permitted uses by Deschutes County, following
approval of the master plan required by subsection (3) of this
section by Deschutes County.
  (b) Notwithstanding provisions of ORS 215.700 to 215.780
relating to lot size and dwelling standards on forestlands,
statewide land use planning goals relating to agricultural lands,
forestlands, public facilities and services, transportation and
urbanization and provisions of Deschutes County's comprehensive
plan and land use regulations limiting uses of forestlands.
  (2) Approval of the master plan and land division applications
required by subsection (3) 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 sections 1 to 9 of this 2009
Act 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 sections 1
to 9 of this 2009 Act.
  (3) 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 sections
1 to 9 of this 2009 Act 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 the 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 sections 3 and 4 of this 2009 Act. 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
section 3 (3) of this 2009 Act, 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
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 section 4 (2)(b) of this 2009 Act;
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 sections 3 and
4 of this 2009 Act. + }
  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
section 5 (3) of this 2009 Act, whichever is later, the Deschutes
Land Trust has failed to demonstrate a reasonable likelihood that
the land trust 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 section. 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. + }
  SECTION 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. + }
  SECTION 8.  { + (1) 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 section 5 (3) of this 2009 Act, or submit
written notice to Deschutes County and the Deschutes Land Trust
stating the owner's intent to relinquish the development
opportunities authorized by sections 1 to 9 of this 2009 Act.
Until the owner of the Skyline Forest 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 for 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.
  (2) 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 section 5 (3) of this 2009
Act within 10 years of the effective date of this 2009 Act, then
the provisions of sections 1 to 9 of this 2009 Act shall cease to
have any force or effect. + }
  SECTION 9.  { + The development opportunities provided by
sections 1 to 9 of this 2009 Act 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. + }
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