Item 3: PH on Resolution Concerning Measure 37 Claim (Brown)

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II. SUMMARY OF CITY MANAGER RECOMMENDATION Based on the analysis set forth in Section III below, the City Manager has concluded that the subject claim is valid. Since the City has no funds with which to pay compensation, the City Manager is recommending a modification to the Floor Area Ratio (FAR) within the /TD Transit Oriented Development overlay zone, Eugene Code section 9.4530(3)(a) and Map 9.4510, to reduce the FAR from 1.0 to .65 (described further below). Measure 37 generally grants a property owner the right to compensation (or waiver at the option of the government) if five substantive requirements are met. First, the regulation must constitute a “land use regulation” as that term is defined by Measure 37. Second, the public entity against which the claim is made must have enacted a new regulation or enforced a regulation that was in effect prior to the Measure 37 effective date (December 2, 2004). Third, the regulation must “restrict the use” of private property. Fourth, the effect of the regulation must be to cause a reduction in the fair market value of the property. Fifth, the regulation must not fall within one of Measure 37’s five exemptions. As discussed below, the regulations that are the subject of this claim qualify as land use regulations, were enacted prior to the Measure 37 effective date of December 2, 2004, effectively restrict previously allowed uses on the property, and reduce the property’s fair market value. Further, the regulations do not fall within one of Measure 37’s five exemptions. Therefore, the claim is valid. III. ANALYSIS OF CLAIM A. Ownership. Measure 37 provides for payment of compensation or relief from (waiver of) specific regulations for “owners” as that term is defined by the Measure. Ballot Measure 37, Section 11(C) defines “owner” as “the present owner of the property or any interest therein.” Based on the information submitted by the claimant (warranty deed 9480311) and available in the Lane County Regional Land Information Database (RLID), the City Manager concludes that the subject lot was acquired by DMB Green, LLC and, by documentation thereof, recorded on November 16, 1994. The property is currently owned by DMB Green, LLC. Mr. Brown, on behalf of DMB Green, LLC has also provided a copy of the operating agreement for DMB Green, LLC, indicating that Mr. Brown is one of several members with a percentage ownership interest in DMB Green, LLC. B. “Land use regulations.” Measure 37 requires compensation (or waiver) only for those regulations which constitute “land use regulations” as that term is defined by Measure 37. Measure 37 defines land use regulation, with respect to local governments, as “local government 2