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EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Work Session: Remand of Hospital Ordinance No. 20299 Meeting Date: February 9, 2005 Agenda Item Number: A Department: City Attorney Staff Contact: Glenn Klein www. cl. eugene, or. us Contact Telephone Number: 682-5080 ISSUE STATEMENT On October 22, 2003, the City Council adopted Ordinance 20299 which amended provisions of Chapter 9 of the Eugene Code, 1971 with respect to where hospitals and related medical uses can be located. That ordinance was appealed, first to the Land Use Board of Appeals (LUBA), which affirmed, and then to the Court of Appeals, which remanded for further action by the City. BACKGROUND The City Council held work sessions in the fall of 2002 and spring of 2003 to discuss and explore opportunities for future hospital siting within the City. At a work session on April 23, 2003, the City Council initiated a code amendment process related to hospital uses and directed that the amendments should be based on changes to individual zones. The Planning Commission considered the changes proposed by staff and in the recommendation it submitted to the council proposed a different approach. On September 8, 2003, the City Council held a public hearing to consider the amendments proposed by staff and the recommendations of the Planning Commission. The City Council directed staff to prepare a revised ordinance consistent with staff recommendations, subject to specific amendments. At its meeting on October 22, 2003, the City Council adopted Ordinance No. 20299 that incorporated the specific amendments as directed by the City Council. The council's adoption of Ordinance No. 20299 was intended to accomplish at least two objectives: 1) facilitate the location of a new hospital in the City; and 2) facilitate the expansion and renovation of PeaceHealth's Hilyard campus. The ordinance attempted to accomplish the first objective by making it easier for a hospital to locate in a number of different zones, thereby facilitating the location of a hospital throughout the City. The revision of the definition of"hospital" would ensure equal treatment for a new hospital and the PeaceHealth Hilyard campus, while the changes with respect to commercial zones would facilitate PeaceHealth's expansion of the Hilyard campus. CHOICES appealed the ordinance to LUBA. CHOICES challenged the provisions in the ordinance with respect to amendments to the industrial and residential zones. LUBA rejected the challenges and affirmed the City's action in adopting the ordinance. CHOICES then appealed the LUBA decision to the Court of Appeals. Based on the court's earlier decision in the daqua (Springfield - PeaceHealth) case, the court here held that the changes to allow hospitals as an outright permitted use in some L:\CMO\2005 Council Agendas\M050209\S050209A. doc