Petitioner, The Athletic Club of Bend, Inc. (athletic club), applied to the City of Bend for site plan approval for a new driveway and associated public roadway improvements on and adjacent to a parcel of land in a subdivision. A hearings officer denied petitioner's application after concluding (1) that the current version of the Bend Development Code (BDC) applied to the off-site components of petitioner's proposed project and (2) that petitioner's site plan failed to meet the roadway access requirements of that code. Petitioner appealed that decision to the Land Use Board of Appeals (LUBA), which issued an order affirming it. Petitioner seeks judicial review of LUBA's order and raises four assignments of error. Petitioner first asserts that LUBA erred because, under ORS 92.040(2), the proposed project should have been evaluated under the version of the BDC in effect in 1999, as petitioner requested. As explained below, we agree with petitioner and, accordingly, reverse LUBA's order and remand for reconsideration. Because that conclusion is dispositive, we do not address petitioner's other assignments of error.
The pertinent facts are undisputed, and we take them from LUBA's order and the record. The Mount Bachelor Village subdivision (MBV subdivision) is a 22-lot subdivision within the larger Mount Bachelor Village Resort in Bend. The subject property, a 1.01-acre parcel owned by petitioner, is one of the lots in the MBV subdivision. The property is currently developed as a parking lot that primarily serves the athletic club, which is located on a neighboring lot. The property abuts Century Drive along its western boundary and is otherwise bounded by adjacent MBV subdivision lots. Currently, the only vehicular access to the property is provided by an easement over an adjoining lot that allows access to Athletic Club Drive, a private road owned by the athletic club. Athletic Club Drive is a horseshoe-shaped road that connects with Reed Market Road to the north and Mount Bachelor Drive to the east. Reed Market Road connects with Century Drive a short distance north of the property.
The application to create the MBV subdivision was submitted to the City of Bend in September 1999 and approved in December 2000. In 1999, Century Drive was owned by the Oregon Department of Transportation (ODOT). It appears that the version of the BDC that was in effect at that time (the old BDC) did not regulate driveway access onto city streets. Sometime thereafter, ODOT transferred its interest in the portion of Century Drive next to the Mount Bachelor Village Resort to the city. Subsequently, the city amended the BDC in 2006 (the new BDC), and the new BDC regulates driveway access onto minor arterials such as Century Drive.
In May 2009, petitioner submitted a site plan review application to the city seeking approval to construct a driveway on the property that would allow access to Century Drive. The proposed construction of the driveway would create improvements on the property and also within the adjacent Century Drive right-of-way. Specifically, the proposed project includes a raised center median between the north- and southbound lanes of Century Drive that would provide a refuge lane to allow access to the property from the southbound lane of Century Drive but would otherwise permit vehicles to enter and leave the property only by using the northbound lane of Century Drive. Thus, the proposed driveway includes improvements on both the property and the Century Drive right-of-way.
Invoking ORS 92.040(2), petitioner requested in its site plan review application that the entire proposed project be evaluated under the old BDC—the local land use regulations in effect when the MBV subdivision application was filed—instead of the new BDC. ORS 92.040(2) provides that,
Noting that petitioner "is proposing a driveway both on the subject property and
(Emphasis in original.) In light of that understanding, the hearings officer concluded that, under ORS 92.040(2), the old BDC applied only to petitioner's proposed improvements on the property, whereas the new BDC applied to the project's off-property public improvements. The hearings officer found that petitioner's proposed on-site improvements met the requirements of the old BDC; however, he ultimately denied petitioner's application after concluding that the proposal did not comply with the requirements governing driveway access to city streets under the new BDC. Petitioner appealed that decision to LUBA.
On appeal, LUBA "agree[d] with the hearings officer's understanding of the text and legislative history" of ORS 92.040(2). Accordingly, LUBA issued an order concluding, in part, that "[t]he hearings officer did not err by applying the [n]ew BDC access standards to petitioner's application." Petitioner timely sought judicial review of LUBA's order.
To resolve petitioner's first assignment of error, we must determine the meaning of ORS 92.040(2). ORS 92.040 provides:
Subsection (1) of ORS 92.040 imposes a two-step process for subdivision approvals. Under the first step, the subdivision applicant must submit a tentative plan "showing the general design of the proposed subdivision" and have it approved by the appropriate local government. Second, the applicant
In 1995, the legislature added subsections (2) and (3) to ORS 92.040 because, as LUBA noted in its order,
(Emphasis in original.) Several representatives from the land development industry testified at legislative hearings on the 1995 amendments to ORS 92.040. They provided examples of local government laws, which had been adopted after the approval of subdivisions, that were said to have effectively prevented subsequent development on subdivision lots because the new laws changed the assumptions underlying the creation of the subdivisions. See Tape Recording, House Committee on Natural Resources, Subcommittee on Energy and Environment, HB 2658, Mar. 8, 1995, Tape 25, Side A, Tape 26, Side A (statements of Jon Chandler, Ernie Platt, Jerry Reeves, and William Cox).
For example, Jon Chandler, then general counsel for the Home Builders Association of Metropolitan Portland, was actively involved in drafting the amendments to ORS 92.040 and provided the following written testimony explaining their purpose:
Testimony, Senate Committee on Water and Land Use, HB 2658A, May 18, 1995, Ex. H (statement of Jon Chandler) (emphasis added). Chandler also explained in testimony at a House hearing on the bill that the protection to be provided by the statutory amendments was necessary because,
Tape Recording, House Committee on Natural Resources, Subcommittee on Energy and Environment, HB 2658, Mar. 8, 1995, Tape 25, Side A (statement of Jon Chandler). Chandler testified that the regulatory certainty that the bill would provide for land developers was important because, "as urban growth increases and we start looking at greater densities and different building patterns, that certainty is going to become ever more critical for our industry, and, if there are loopholes, we think that they ought to be tightened up." Id.
Additional testimony in support of the amendments to ORS 92.040 was provided by Jerry Reeves. Reeves highlighted his frustration with the City of Portland in getting approval to develop a planned unit development that he had purchased as an approved subdivision. According to the subdivision approval granted by Portland, later-adopted environmental approval criteria would not apply to the subdivision because the applicant "ha[d] a right to proceed under the criteria that were applicable at the time the application was submitted." Testimony, House Committee on Natural Resources, Subcommittee on Energy and Environment, HB 2658, Mar. 8, 1995, Ex B. Reeves testified that "we based our purchase of the property on * * * the fact that we were going to be out of these new rules or regulations." Tape Recording, House Committee on Natural Resources, Subcommittee on Energy and Environment, HB 2658, Mar. 8, 1995, Tape 25, Side A (statement of Jerry Reeves). According to Reeves, however, Portland nonetheless decided to apply its new environmental approval criteria to the proposed development, and, consequently, the project had been on hold for two and one-half years resulting in "millions of dollars" being "tied up." Id. Reeves expressed hope that the amendments to ORS 92.040 "will help solve these kinds of problems." Id.
As the legislative history indicates, land developers sought the enactment of subsection (2) of ORS 92.040 in order to ensure that the local government laws on which subdivision applications were predicated would be applied to subsequent development on subdivision lots unless developers elected otherwise. Accordingly, subsection (2) now allows applicants who request approval to develop a subdivision lot to choose to apply to all subsequent construction on the lot the local government laws in effect at the time that the subdivision application was made, provided that those laws were implemented under an acknowledged comprehensive plan. However, the protection provided to developers by subsection (2) may not exceed a period of 10 years, and local governments can shorten the duration of that protection if they choose to do so. ORS 92.040(3).
With that understanding in mind, our task reduces to answering the following question: Did the legislature intend for ORS 92.040(2) to apply whenever the approval of on-property development depends on the approval of off-property construction on rights-of-way and roadways adjacent to subdivision lots that occurs as a consequence of on-property development? We conclude that the answer is, "Yes."
The proponents of the 1995 amendments to ORS 92.040, and Chandler in particular, played an active role in drafting the amendments and informing the legislature of their intended purpose. Our review of the legislative history has not revealed any indication that the legislature intended to achieve something different or less protective from that sought by the amendment's proponents. Accordingly, we conclude that the proponents' testimony about the amendments to ORS 92.040 is a persuasive indication of the legislature's intent in adopting the amendments. That testimony demonstrates that, to provide regulatory certainty to land developers, the amendments were intended to allow construction on subdivided property within urban growth boundaries to be approved or denied based on the local laws implemented under an acknowledged comprehensive plan that were in effect when the subdivision application was made.
However, under the hearings officer's interpretation of ORS 92.040(2), with which LUBA agreed, that legislative intent is frustrated because not all "subsequent construction
Furthermore, as petitioner notes, LUBA's understanding of the statute is problematic "because subdivisions necessarily rely on or create roads and road rights-of-way adjacent to lots, and on-site development necessarily requires the development of the right-of-way between the road and lot line." Consequently, application of new local government access requirements applicable to off-site construction on adjacent roadways and rights-of-way can, as they did here, effectively prevent a proposed on-site development project that meets the local requirements in effect when the subdivision application was made. In other words, under the interpretation approved by LUBA, new local government laws implemented under an acknowledged comprehensive plan can determine whether on-site development of a previously approved subdivision lot ultimately comes to fruition.
Generally speaking, development of subdivision lots is approved through a land use application—such as a site plan review—that is separate from the application to subdivide. Thus, development of subdivision lots requires application of "local government laws implemented under an acknowledged comprehensive plan," such as the local development codes that the city applied to petitioner's site plan review application. As we understand the process of site plan review for development of a subdivision lot, it is not uncommon for the request for approval of proposed development on the subdivision lot to involve off-site improvements to the adjacent right-of-way in order to provide access to the lot. In fact, sometimes local governments will require roadway improvements as a condition of approval for a site plan review application to develop a subdivision lot.
In this case, Bend's new policy about the preferential use of and access to roads— which is part of the new BDC implementing the city's acknowledged comprehensive plan and, thus, potentially subject to ORS 92.040(2)—ultimately determined whether and where construction providing roadway access to petitioner's subdivision lot could occur. What is at issue is whether that new policy can properly be applied here as a standard for site plan approval due to the off-property roadway improvements of petitioner's proposed project when petitioner elected under ORS 92.040(2) to have the project determined under the old BDC. In light of the legislative history and our understanding of how the development of access to subdivision lots occurs, we conclude that the protection that ORS 92.040(2) provides to "subsequent construction on the property" is most plausibly understood to apply whenever the approval of on-property development depends on the approval of off-property construction on rights-of-way and roadways adjacent to subdivision lots that occurs as a consequence of on-property development.
Reversed and remanded for reconsideration.