Item B: New Land Use Regulations and Measure 37

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: New Land Use Regulations and Measure 37 Meeting Date: October 10, 2005 Agenda Item Number: B Department: Planning and Development/City Attorney Staff Contact: Susan Muir/Glenn Klein www.eugene-or.gov Contact Telephone Number: 682-6077/682-5080 ISSUE STATEMENT Adoption of new land use regulations such as the Goal 5 protection ordinance has the potential to create new Measure 37 claims. In light of that potential, the council should decide whether it wants to include within the land use code a variance-type process that might avoid creation of such claims. If the council decides such a process should be included, two subsidiary issues are: (1) whether the process should be generally applicable to all of Chapter 9, or just to specific regulations such as the Goal 5 protection regulations; and (2) whether staff, a Hearings Official, the Planning Commission or the council should make the initial decision on such a variance and who should make the final decision. BACKGROUND Following the passage of Measure 37, the council adopted an ordinance to establish a process for addressing Measure 37 claims. The process involves, in part, an initial review by the City Manager, and if it appears that the claim may be valid, a decision by the council. On June 13, 2005, the council held a work session to discuss whether the City should investigate the development of a “givings tax” in order to develop a source of funds to pay Measure 37 claims. The council directed staff to develop a legal framework for and identify administrative costs and procedures to possibly implement a givings tax or fee. The City Manager estimated that the work product would be available for the council in the winter, with the research and other work tasks commencing after the legislative session was over (in order to see what, if anything, the Legislature did related to Measure 37). Staff continue to expect to have a work session with the council during the winter. The Goal 5 protection ordinance now before the council contains some limitations on how property can be used. In some cases, those limitations might give rise to claims under Measure 37. The draft ordinance contains one way of dealing with the potential creation of Measure 37 claims, which was to create a variance process that would allow a property owner to get a restriction modified or waived to the extent necessary to avoid a reduction in fair market value of the property. This variance process would ensure that the regulations do not create valid Measure 37 claims. The initial question is whether a variance-type process should be included as part of the Goal 5 protection ordinance (or other new and existing land use regulations), or alternatively, whether those issues should be dealt with under the City’s Measure 37 implementation ordinance. It is unclear the extent to which the City (or any other governmental entity) will be able to require property owners to L:\CMO\2005 Council Agendas\M051010\S051010B.doc