Tuesday, June 20, 2017

Email to Bend Development Dept draft

The purpose of this email is to report multiple instances of serious violations of Bend residential zoning permitted land use.    Please investigate them and enforce Bend Development Code.  I ask to be informed of the receipt of this report and remain informed of the progress of your investigation and actions.

Bend Development Code BDC Title 2.0 Chapter 2.1, 2.1.200 "Farm Use, Agriculture" is a non-permitted land use under "Miscellaneous Use " in all Residential Use zoned areas except SR 2-1/2 and UGM.
BDC Title 1, Chapter 1.2 defines "Timber Agriculture" as a “Farming or Farming Use”.

"Farming or farm use means the utilization of land for the purpose of raising, harvesting or selling crops, or for the feeding, breeding, management and sale of or the produce of livestock, poultry, fur-bearing animals, or honeybees, or for dairying and the sale of dairy products, or for any other agricultural or horticultural use, animal husbandry, timber agricultural or any combination thereof, including the preparation or processing and storage of products raised on such land, but not including the construction or use of dwellings and other building customarily provided in conjunction therewith.

The following residential zoned properties are in violation of Bend Residential Zoned RL And RS permitted use and specifically a non-permitted use.  

Tax Lot Properties with Forestland Designation   Forestland   Residence 
                                                                               Acres           Acres
https://dial.deschutes.org/Real/Index/117545        2.12             None
https://dial.deschutes.org/Real/Index/241568        3.23             None
https://dial.deschutes.org/Real/Index/241569        2.89             None
https://dial.deschutes.org/Real/Index/117550        2.89+4.01    1.09
https://dial.deschutes.org/Real/Index/117551        1.56+2.80    1
https://dial.deschutes.org/Real/Index/117552        4.81             1
https://dial.deschutes.org/Real/Index/117569        3.72             1 (Urban)
https://dial.deschutes.org/Real/Index/162127        2.60             2.40
https://dial.deschutes.org/Real/Index/189042        2.50             1
https://dial.deschutes.org/Real/Index/200999        1.74             1
https://dial.deschutes.org/Real/Index/205941        5.57             1
https://dial.deschutes.org/Real/Index/208548        2.96             1
https://dial.deschutes.org/Real/Index/269691      32.10             None
https://dial.deschutes.org/Real/Index/183021        8.22             None
https://dial.deschutes.org/Real/Index/169808        1.99             1
                                                               Total       87.1 acres

Deschutes County Assessor Report Table 2a - Forestland Valuation Tax Year 2016-17 
(https://weblink.deschutes.org/public/DocView.aspx?dbid=0&id=89754&page=1&cr=1) identifies county code area 1001 (city of Bend) as having 107 acres of Designated Forestland located within the city of Bend.  All of these properties are in violation of city zoned permitted land use.  These properties totaling 87.1 acres of Designated Forestland that I have identified are only those that I have discovered.  The Deschutes County Assessor should be requested to identify additional Forestland Designated properties within the city of Bend for city zoning enforcement action.

Forestland Designation of these properties as “Designated Forestland” was initially officially obtained through a Deschutes County Assessor approval of an owner application for "Forestland Designation" to be found at this link.  In their “Application for Designation of Land as Forestland"  the applicant declares to the County Assessor under penalties of false swearing that : "..the predominant purpose of this land to grow and harvest trees of a marketable species”.  They sign this application statement:  "As owner of the above described land, I indicate by my signature that I am aware of the potential tax liability involved when the land ceases ceases to be designated as Forestland.  I declare under the penalties of false swearing (ORS 305.990(4) that I have examined this application (and any accompanying documents), and to the best of my knowledge, it is true, correct, and complete.”

The above application establishes the commercial intent of the owner to grow and harvest trees for market sale.  That land use intent is clearly a Non-Permitted residential zoned land use.

A "Non-Permitted" zoning violation is a land use matter but has associated assessment and tax implications.  While the County Assessor authority grants a tax classification assessment it is in association with a land use and management plan within the county.  That land use conflicts with and violates BDC residential zoning permitted use which is the dominant ruling authority.  Therefore there should be no property within the city of Bend that has a Designated Forestland assessment classification.  

This is a city zoning land use issue.  However, I would like to point out the magnitude of tax implications that are related.  All Designated Forestland in Eastern Oregon is assessed at a 2016-17 flat rate of $74.88 per acre.  Property tax on that assessed acre assessment rate is computed accordingly regardless of if it is located in a residential zoned area of Bend, the UGB doorstep of Bend, or the most remote private forestland in Eastern Oregon.  Within Bend the same property would be assessed at a very rough but ball park reasonable estimate of $100,000.00 per acre and taxed accordingly.  

The first three properties on the above list under single ownership are an example of the tax implications of finding these properties to be non-permitted zoning use:
Real Market Value:                                                   $2,308,200.00
Assessed Value:                                                                 $615.00
Total 2016/17 tax:    $                                                           $65.00
Est. Assessed Value w/o Forestland Designation:   $1,124,183.00
Est. 2016/17 Tax w/o Forestland Designation:              $16,400.00
While tax implications have no bearing on residential zoned non-permitted violations that are a matter of your department they will have follow actions required by the Deschutes County Assessor to disqualify the Designated Forestland classification of these properties in violation of city zoning rules and collect 5 years of tax liability at a much higher property assessment value than $74.88 per acre per year.
When these properties are found to be in violation of BDC residential zoning permitted use the Deschutes County Assessor must be notified for that department’s disqualification action.

Thank you for your attention to this matter.  I would be pleased to discuss it with you at any time.

Tim Lester
2098 NW Trenton Ave
Bend, Oregon 97703
541-948-5250

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