Working Together is a Must for Mixed-Use Development

Mixed-use development projects have proven to be not only economically viable, but also desirable to the residents who live there, the businesses that serve the residents and visitors, and the community at large.

Economic Development — Creativity is Key

When you Google the phrase “economic development” you get an interesting mix of various international councils and state agencies focused on economic development. At the time I did my search, the Portland Development Commission was among the top five hits. In fact, a variety of Portland sites held positions on the first Google page. Most interesting: the wide range of topics covered (from PDC’s cluster strategy to local sustainable infrastructure to rural development). What this means, from my perspective, is that economic development is limited primarily by our imagination.

Washington Adverse Possession Law Changed to Provide for Attorneys’ Fees and Payment of Taxes

Parties to a lawsuit over adverse possession of real property will have some new provisions to take into account as a result of a law passed by the Washington State Legislature and signed by the governor. Engrossed Substitute House Bill 1026 (“ESHB 1026”) changed the Washington adverse possession statute, RCW 7.28, to allow for a prevailing party to recover attorneys’ fees. It also permits a court to order a successful adverse possessor to reimburse taxes and assessments paid by the title holder during the time that the plaintiff was in possession of the property and for taxes that accrued during the lawsuit. Before the amendments, Washington’s adverse possession statute did not provide for any recovery of attorneys’ fees and made no mention of taxes and assessments. The changes to the law, particularly the allowance for attorneys’ fees, could result in more settlements of adverse possession cases to avoid the potential high costs of trial and risk of loss.

Northwest Buildings Vulnerable to Quakes

Japan’s horrific March 11, magnitude-9 earthquake and tsunami is a wake-up call to the Pacific Northwest.

Property Owners Not Entitled to Interest on Relocation Benefits Following Condemnation Proceedings

Washington property owners’ right to recover interest on relocation assistance benefits following an eminent domain case was short-lived, as the Washington Supreme Court has reversed last year’s Court of Appeals decision granting that right. The Supreme Court’s ruling in Union Elevator & Warehouse Co. v. Department of Transportation means that property owners are no longer entitled to seek interest on relocation assistance benefits and, therefore, will bear the cost of any delays if a dispute arises over entitlement to the award.

The ABCs of SNDAs

If Subordination, Non-Disturbance and Attornment Agreements (SNDA) were called something more exciting, perhaps lenders, landlords and tenants would have given them greater attention during the real estate bubble. Instead, SNDAs suffer from such a tedious name that there should be no surprise that many commercial tenants sign them without much thought.

Sendai Earthquake: Is the Pacific Northwest Next?

Sendai, Japan, has just experienced a horrific subduction earthquake and tsunami arising from its proximity to the so-called “Japan Trench.” Some geologists think that Seattle and Portland have a 10 to 14 percent chance of experiencing a similar M 9.0 subduction earthquake in the next 50 years because of their proximity to the so-called “Cascadia Subduction Zone.” Such an earthquake would have a catastrophic effect on the Washington and Oregon Coast (compounded by a tsunami) and would cause major damage along the I-5 Corridor, destroying infrastructure and many buildings.

“Regulatory Takings” Case From Ninth Circuit Gives Ammunition to Land Owners

The Ninth Circuit Court of Appeals issued a recent ruling in Guggenheim v. City of Goleta, 2010 WL 5174984 (C.A.9 (Cal.)), which could have a far-reaching impact on future “regulatory takings” claims challenging governmental regulations as a ” taking” of property for which an owner is entitled to compensation.

Real Property Transfer Tax Battle In Oregon Begins Again

Oregon Revised Statute 306.815 presently prohibits any city, county, district, or other political subdivision or municipal corporation from imposing a transfer tax. The only exception is the existing transfer tax in Washington County. In virtually every session of the Oregon Legislature, there are bills to allow the imposition of transfer taxes.

Washington Court Addresses Contractual Allocation of Environmental Cleanup Liability

Parties who want to shift or limit their liability for environmental cleanup would do well to heed the latest Washington Court of Appeals ruling, which found that an expired contractual indemnity agreement was insufficient to preclude later liability for cleanup costs under the Washington Model Toxics Control Act (“MTCA”).

Market Forecast 2011

In this market, and continuing into 2011, the majority of buyers will demand “instant” equity and be attracted to properties they believe are undervalued or have great upside potential. Buyers will stay on this course until there is a general belief that either distressed properties are no longer available for purchase at will, or the economy has corrected itself and much of the available inventory has been absorbed. Where does this leave homebuilders in the interim?

Washington Court Gives Property Sellers and Buyers Another Reason to Beware of Cleanup Liability

The Washington Court of Appeals has raised the stakes for parties involved with a real estate transaction where a heating oil underground storage tank may have been used on the property. As a result of the ruling, property buyers, sellers and even lenders should pay much closer attention to the risks associated with heating oil tanks than they had previously.

Q&A on Emerging Trends in Real Estate for 2011 — An Analysis by Lane Powell and CB Richard Ellis

It’s that time of year again. The Urban Land Institute and PricewaterhouseCoopers released their 2011 annual forecast, “Emerging Trends in Real Estate.” According to the forecast, Seattle ranks sixth overall in market quality for real estate investments, and reports the commercial real estate market to be showing small but positive signs of improvement. However, not all the news is good. In an effort to digest the extensive forecast and analyze what the forecast means for the Pacific Northwest from a market and legal perspective, a team from CB Richard Ellis’ Private Client Group (CBRE PCG) and attorneys from Lane Powell met to discuss the forecast.

No Country for Old Buildings

These materials titled “No Country for Old Buildings” were presented at the Oregon State Bar, Real Estate Land Use Section seminar titled “Unions and Your Company.”

Hidden Traps and Liabilities: What Lurks in Distressed Condo and Planned Unit Development Properties?

The situation looks enticing: finished lots or condominium units in a great neighborhood being offered by a motivated seller. The price is bargain-basement, so buying and waiting for the market is a feasible strategy.

Portland’s Unreinforced Masonry Apartment Buildings: A Threatened Species?

Now that Western Oregon and Washington have been identified as being subject to massive if infrequent “subduction zone” earthquakes and that the vulnerability of unreinforced masonry (URM) buildings to damage or collapse in a major earthquake has been documented, the owners of URM apartment buildings can expect to face gentle but inevitable pressure from casualty insurers, mortgage lenders and the local government to seismically reinforce their buildings.

Ninth Circuit Defines When “Ownership” is Determined for Cost Recovery Purposes

According to the U.S. Ninth Circuit Court of Appeals, ownership for purposes of cleanup liability under the federal Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA,” also known as the “Superfund” law) is determined at the time that cleanup costs are incurred and not when a later cost recovery lawsuit is filed. Although CERCLA is 30 years old and has been amended several times, this is the first time that any court has directly addressed the question of when an owner is liable for cleanup costs, clarifying what had been one of many murky areas in CERCLA.

Court Rules That Construction Lien Claim Fails for Lack of Proper Acknowledgment

The Washington Court of Appeals has re-emphasized the perils of failing to strictly follow the statutory requirements of perfecting construction liens. On April 7, Division Two of the Court of Appeals ruled in Williams v. Athletic Field, Inc., that recording a mechanic’s lien without the proper authentication clause results in a void lien.

Refinancing commercial real estate: Don’t wait until it’s too late

With more than $500 billion of commercial real estate loans maturing during the next few years, and with declining market values and a dearth of lenders willing to lend, it doesn’t take much imagination to visualize foreclosures looming on the horizon. So what can a commercial property owner whose loan matures in the next couple of years do?

Forming an ECODistrict

The movement behind ECODistricts is gaining momentum. Around the country and, most notably, in the Pacific Northwest, civic leaders, sustainability experts and leadingedge property developers are exploring the concept of ECODistricts. ECODistricts take the most successful elements of sustainable practices in the environmental, social and economic fields, and combine them into a single neighborhood to achieve a new level of sustainability.

Land Grab: Take Action When the Government Comes Calling

Consider the following: You own property in the area with a growing population, and you plan to build a new residential community. You have prepared initial design documents and have begun the process of obtaining necessary government approvals. You may have even begun the work of providing necessary infrastructure for the project.

ECODistricts Take Shape

The newest planning tool being talked about in the world of sustainability is the ECODistrict. It’s a unique Green building concept that takes the most successful elements of sustainable practices in the environmental, social and economic fields and combines them into a single neighborhood to achieve a new level of sustainability. View full article (PDF).

This article appeared in BUILDERnews magazine.

U.S. Treasury Department Issues Guidance for Cash Grants in Lieu of Energy Tax Credits

On July 9, 2009, the U.S. Treasury Department issued guidance for the award of cash grants by the federal government (“Grants”) in lieu of energy tax credits under Section 1603 of the American Recovery and Reinvestment Act of 2009 (“ARRA”). When ARRA was enacted in February 2009, Congress recognized that current economic conditions have reduced investors’ taxable income, and the attractiveness of the production tax credit (“PTC”) and the investment tax credit (“ITC”) as incentives for development of renewable energy projects has diminished. The goal in providing cash grants for a limited period is to spur renewable energy development, even in the absence of taxable income, and to further the goals of job creation and expansion of renewable energy sources.

View full article (PDF).

No Easy Path For Renewable Energy

Federal and state governments have been encouraging more renewable energy generation amid growing U.S. electricity demand and concerns about security and climate change due to our reliance on fossil fuels. View full article (PDF).

This article first appeared on Law360.

Green Leasing: Implementing Sustainability Concepts in Commercial Leases

Everyone wants to own or occupy a green building. Unfortunately, traditional full service and net leases are seriously deficient in fostering sustainability practices. Current commercial leasing practices and documents can have numerous undesirable consequences when used in a green project. Traditional full service and net leases result in inappropriate allocation of the costs and benefits of going green, are deficient in describing the ongoing responsibilities of landlord and tenant in maintaining green certifications and fail to create a relationship between landlord and tenant that will foster compliance with sustainability goals. Green leasing demands new approaches to meet the needs of both landlord and tenant. View full article (PDF).

This article first appeared in the February 2009 Portland State University Center for Real Estate Quarterly & Urban Development Journal.

Governor’s ‘green’ agenda will also impact real estate – Proposals include mandating improved energy efficiency

By many accounts, nearly 40 percent of the world’s carbon emissions are a byproduct of the power produced for residential and commercial consumption. In an effort to curtail these carbon emissions, significant efforts are ongoing to create clean sources of power. View full article (PDF).

This article first appeared in the Portland Business Journal.

Washington Supreme Court Gives Green Light to State Approval of Wind Farms Over Local Objections

A unanimous Washington Supreme Court ruling on November 20 should give backers of large-scale wind projects a major boost in their efforts to build wind farms in this state. In Residents Opposed to Kittitas Turbines v. Energy Facility Site Evaluation Council (“ROKT”), the court ruled that the Governor and the state Energy Facility Site Evaluation Council (“EFSEC”) have the power to override local zoning ordinances that might hinder development of wind projects. View full article (PDF).

Historic Garages in Northwest Portland

These materials titled “Historic Garages in Northwest Portland” were presented as testimony before the Portland City Council on October 2, 2008. Read the materials (PDF).

Reduce carrying costs – Monitoring property tax assessments can save money in the long run

Carrying costs are a significant consideration for any development project. For residential developers in particular, the issue escalates when you consider a nationwide decline in the housing market, the increased time on market for new homes and rising construction costs. Understanding and planning for variable costs, such as property taxes, is critical to determining a development project’s profitability and maintaining sufficient cash flow to ensure the project’s survival. View full article (PDF).

This article first appeared in BUILDERnews magazine.

States Step Up to Address Global Warming and Climate Change

Hardly a day goes by that a news program on television or a newspaper or periodical does not mention climate change and global warming. Climate change may appear to be a flavor-of-the-moment issue in the popular press, but for the last several years, state and local governments have viewed climate change as a serious problem that needs prompt attention. Today, some 30 states have either developed, or are in the process of developing, a wide range of strategies to respond to climate change, and are using those strategies to draft legislation and regulations affecting diverse sectors such as electricity generation, transportation, land use and construction. The real estate industry in particular is likely to see many impacts.

View full article (PDF).

This article first appeared in The Real Estate Finance Journal.

Domestic Partnership Expansion Act: Legislative Update

Washington’s Domestic Partnership Registration Act has undergone a number of important changes that dramatically expand the rights and responsibilities of registered domestic partners in Washington. View full article (PDF).

Tax Pitfalls for Canadian Buyers of U.S. Recreational Property

With the waning value of the U.S. dollar, an emerging trend among foreign investors is to acquire U.S. real estate. Consistent with this inbound investment trend, a number of Canadians are purchasing U.S. recreational property.

Various ownership arrangements are available for acquiring and holding U.S. real estate. Since each investor is unique, selecting the optimal ownership arrangement will depend on a number of factors, including the owner’s intended use of the property, duration of intended ownership, plans for future disposition to family members, etc. View full article (PDF).

Withholding of Oregon Tax on Out-of-State Sellers of Oregon Real Estate

In the 2007 regular session, the Oregon Legislature adopted ORS 314.258, requiring any person that is an “authorized agent” to withhold and pay to the Oregon Department of Revenue (the “Department”) a portion of the consideration received in a “conveyance” of an Oregon “real property interest” when the transferor is an out-of-state individual or corporation (the “2007 Act”). View full article (PDF).

Land-use law will spark some old-fashioned horse trading

Oregon is well known for its statewide land-use planning program, heralded by many as protecting agricultural and environmental interests from against urban sprawl. View full article (PDF).

This article first appeared in Portland Business Journal.

Metro Area Urban and Rural Reserves: Senate Bill 1011 (2007)

Senate Bill 1011, passed by the 2007 Oregon Legislature (codified as Chapter 723, Oregon Laws 2007), addresses deficiencies in the growth management and urban growth boundary (“UGB”) expansion processes in the Portland metropolitan area. Existing state laws governing UGBs are based on a land hierarchy protecting farm and forest land. As a result, urban growth boundary additions have sometimes been pushed into areas where development is not cost-effective because of lack of proximity to other urbanized areas and the high cost of providing infrastructure, and this system has not always protected the most important farm and forest land. SB 1011 addresses this problem by establishing a system to designate where urban expansion will and will not occur on land outside UGBs over a 40-50 year period. View full article (PDF).

Measure 49 Synopsis

On November 6, 2007, Oregon voters approved Measure 49, a legislatively crafted revision of Measure 37. Adopted in 2004, Measure 37 gave certain landowners the right to make a claim for just compensation against state or local governments if land use regulations imposed, after they acquired their properties, reduced their value. Public entities facing Measure 37 claims had the option of avoiding compensation by allowing claimants to use their property free of the subsequently enacted regulation — and such “waivers” were the most common governmental response. In many cases, however, there were disputes about the date on which “ownership” was established for purposes of Measure 37 and other issues relating to the scope or transferability of the waiver. View full article (PDF).

Greenhouse Gas Inventory – State and Local Governments Want to Know Your Project’s Carbon Footprint

A June 2007 Executive Order issued by King County Executive Ron Sims requiring all public and private development projects to quantify greenhouse gas (“GHG”) emissions during project review under Washington’s State Environmental Policy Act (“SEPA”) became effective on October 15, 2007. As part of the implementation of this new requirement, King County released a revised SEPA checklist and new SEPA GHG Emissions Worksheet to assist developers in calculating their projects’ GHG emissions. Currently, King County does not expressly require mitigation of GHG emissions as part of the SEPA process, but such requirements are not far behind. Representatives from the County have suggested they will be using the Comprehensive Plan update process to develop mitigation requirements, which is anticipated to be released in late 2008. View full article (PDF).

What Measure 49 means for business – Search for workable compromise won’t end

Measure 49 generally eliminates the rights of most business claimants under Measure 37, and it complicates those rights that remain. View full article (PDF).

This article first appeared in the Portland Daily Journal of Commerce.

The Bottom Line on Green Building Practices in Common Interest Areas

Common Interest Developments (CIDs) are residential or commercial developments that have common elements or areas maintained through an association of the owners of individual units or properties. Condominiums, townhouses, co-ops and planned unit developments of lots for single-family homes all fall within this definition.

Developers of CIDs have a vested interest in holding the line on common area costs. … With an increase in public awareness of environmental issues, the availability of tax credits and incentives, and improvements in materials, many builders are finding that building Green can help keep costs down and provide an additional marketing tool. View full article (PDF).

This article first appeared in BUILDERnews.

Measure 37: Approaching Year Zero Plus Three

Three years after voters passed Ballot Measure 37 in Oregon, there is still a queue of court cases in a holding pattern due to unanswered questions about this initiative, particularly with regard to the ownership status of the parties involved. As a result, new legislation is in the works that might remedy some of the legal challenges this initiative has created. View full article (PDF).

Effect of Dissolution of Condo Developer – Washington Supreme Court Speaks Out

In Ballard Square Condominium Owners Ass’n v. Dynasty Const. Co., 126 Wn. App. 285, 108 P.3d 818 (2005), the Washington State Court of Appeals did a relatively extensive analysis of Washington’s corporations statute in determining that the dissolution of the corporation prior to the time that the claim for damage arose did, in fact, cut off the claims of the homeowners’ association under Washington law. The reasoning of the decision caused some to believe that the early dissolution of a developer and builder of a condominium is a legitimate “strategy” in setting up transactions. View full article (PDF).

Court of Appeals Decision Addresses Standards for Compliance With Notice and Claims Procedures for Construction Contracts

Are cracks beginning to appear in the doctrine of strict compliance with construction notice and claims procedures? Last week’s decision by the Washington Court of Appeals (Division II) suggests that the three year old rule laid out by the Washington Supreme Court in the Mike M. Johnson, Inc., v. Spokane County case may not be the last word on the strict compliance standard. View full article (PDF).

Making the Most of Mixed-Use Opportunities

As cities around the country continue to redevelop their urban centers, opportunities abound for developers eager to build mixed-use projects that fit in with today’s market-driven realities. Many people are tired of long commutes to their downtown jobs and mind-numbing drives to shopping centers, and yearn for safe and enjoyable urban living experiences with all the convenient amenities. Combine an aging American population with a lack of desire to pay for an outgrown suburban home, and what do you find? A strong marketplace for residential development tactfully integrated with multifaceted retail, office and entertainment uses—the classic mixed-use development project. View full article (PDF).

This article first appeared in BUILDERnews Magazine.

Washington Legislature Gives Development a LIFT

The Washington Legislature has made significant improvements to the ability of cities to support new development. House Bill 2673 provides major modifications to Washington’s tax increment financing system. Governor Gregoire signed the bill with a partial veto, but the veto did not change the effectiveness of the new program. The state is likely to start processing new applications that were not already earmarked by the legislature, by December of this year. View full article (PDF).

Who Wants to Buy a Meth Lab? – Eliminate the Surprise Factor Before You Buy Property

The phone call from the client came (as it often does) late in the day on a Friday. “We found what looks like a methamphetamine lab on the property. What do we do?” Fortunately, in this particular situation, the client was doing pre-closing due diligence and so, while the discovery of the meth lab was a surprise, it did not have nearly the same impact as it might have had if the deal already closed and bulldozers had shown up at the site to start work. View full article (PDF).

This article first appeared in BUILDERnews Magazine.

Critical Planning Points – In Real Estate Partnerships and Joint Ventures

In a perfect partnership or joint venture (JV), the parties combine their disparate skills and resources and create a whole that is greater than the sum of the parts. Each party trusts the others to act in the best interest of the JV, and no party abuses that trust. Each party is allocated responsibility and authority consistent with that party’s skills, and no party interferes with any other party’s performance of its functions. The economic returns from the venture are divided in a manner that is commensurate with the respective contributions of the parties; all parties believe they are fairly compensated; and tax burdens are minimized. View full article (PDF).

This article first appeared in BUILDERnews Magazine.

Oregon Court Declares Measure 37 Unconstitutional

In a decision earlier this month, the Marion County Circuit Court declared Measure 37 unconstitutional. The opinion is the first (although certainly not the last) to address the validity of the 2004 ballot measure, which required that state and local governments must provide compensation when certain land use regulations reduce the value of private property acquired before the regulation was first enacted or enforced. View full article (PDF).

Urban Redevelopment – Mixed-use, Mixed Environment

Portland, Ore., has been lauded by many as a model for urban renewal and mixed-use development. There are several challenges to developing mixed-use projects and many preliminary questions and competing priorities that need to be addressed. The Pearl District, Belmont Dairy, Rose Garden Arena, Museum Place, University District, North Macadam District and Beaverton Round are a few of the many past and future redevelopment projects that come to mind in the Portland area. Some projects have succeeded, while others have struggled. For those undertaking urban redevelopment projects, only one thing is certain: there is no clear-cut recipe for success. View full article (PDF).

This article first appeared in BUILDERnews Magazine.

Condo Act – Condominium Act Amendments Mean Big Changes

New condominium starts have been hampered by extraordinary price increases and, in some cases, the unavailability of liability insurance for builders. A study commissioned by the Washington Legislature found that, where available, liability insurance premiums ran about five to eight percent of construction costs, losses were $2.50 for every dollar of premium, and loss expenses were about twice those of other states. View full article (PDF).

This article first appeared in BUILDERnews Magazine.

Attention to Detail Crucial For Section 1031 Exchanges

Section 1031 of the Internal Revenue Code of 1986, as amended (“IRC”), provides that no gain or loss is recognized on the exchange of property held for productive use in a trade or business, or for investment. Tax law thus allows taxpayers to exchange certain kinds of property for like-kind property without immediately paying tax on the gain. The tax is deferred until the replacement property is ultimately sold. Then, the original deferred gain, plus any additional gain realized since the purchase of the replacement property, is subject to tax. View full article (PDF).

Prompt Action Saves Property Taxes on New Construction in Washington

In general, there are a number of ways in which commercial and industrial buildings can be improperly valued for property tax purposes. This publication alerts owners to the likelihood that assessors in the state of Washington are not accurately valuing construction in progress. View full article (PDF).

Oregon’s Gold Rush – Staking a Claim Under Oregon’s New Property Rights Law

For those developers or builders looking for opportunities in Oregon, be aware of the new gold rush taking place. Forget the mining claims of yesteryear, we’re talking about claims arising under recently enacted Measure 37. Like any unproven land claim, however, the dust has yet to settle on this initiative-sponsored law. View full article (PDF).

This article first appeared in BUILDERnews Magazine.

Earnest Money Damages Limitation Provision Requires Exact Compliance

When making a significant purchase like real estate, most people are careful about what they sign. But did you know that what the seller does or does not sign could have big financial consequences for you? This was precisely the expensive lesson learned by the purchaser in the case of Chrisp v. Goll, which was recently decided by the Washington Court of Appeals. The court ruled that the substantial compliance doctrine did not apply to the Earnest Money Forfeiture Statute. View full article (PDF).

Significant Leasing Issues Facing Startup Tenants

A real estate lease is one of the first agreements entered into by many startup companies after raising their initial rounds of venture or “angel” capital. As a result, it often occurs at a time when the tenant lacks both negotiating leverage and/or the desire to spend money on legal advice for leasing. This article highlights the top ten issues of concern facing startup or growing tenants in a leasing transaction. As with any transaction, it is recommended that you consult with either your broker or legal representative about issues that are important to your specific situation, and which issues should be addressed at the “letter of intent” stage or during negotiations on the final lease documents. View full article (PDF).

Oregon Supreme Court Rules Measure 7 Unconstitutional

The Oregon Supreme Court held on October 4 that Ballot Measure 7, approved by the voters in 2000, was unconstitutional because it violated the separate-vote provision of Article XVII, Section 1, of the Oregon Constitution. Measure 7 would have required local governments that adopted or enforced certain land use regulations to compensate owners of property that lost value as a result. View full article (PDF).

Washington Supreme Court Limits Conditions Imposed on Developers

In a pair of cases, the Washington Supreme Court clarified the authority of cities to impose conditions on development projects. View full article (PDF).

Prayers Answered: RLUIPA Constitutionality Upheld

In what appears to be the first federal case decided addressing the Constitutionality of the Religious Land Use and Institutionalized Persons Act (RLUIPA), U.S. District Judge Stewart Dalzell in the Eastern District of Pennsylvania, upheld RLUIPA on Constitutional grounds. The opinion in Freedom Baptist Church of Delaware County v. Township of Middletown, et al., No. 01-5345, (May 8, 2002), appears to have ended the speculation, at least for now, that RLUIPA will suffer the same fate as the Religious Freedom and Restoration Act (RFRA). View full article (PDF).

To Oregon Property Owners: Wilsonville’s Traffic Rationing Plan Is Trumped by State Law

Since 1996, Wilsonville, Oregon, has restricted most new development south of Boeckman Road by strictly limiting the number of new traffic trips allowed through the interchange of Interstate 5 and Wilsonville Road. This was under a Public Facilities Transportation Strategy (“PFTS”) adopted by the City pursuant to ORS 197.768, which allows cities to ration public services to new development, and thus to reject or delay new development. To ration public services and delay development, a city must adopt a “public facilities strategy” (“PFS”) that meets certain requirements of state law. View full article (PDF).

Court Restricts Appeals In Oregon Land Use Cases

A recent decision by a closely divided Oregon Court of Appeals, League of Women Voters of Coos County v. Coos County, Or App, P2d (CA A111594, September 26, 2001) (Utsey), has changed the requirements for appeals fiom decisions by the Oregon Land Use Board of Appeals (LUBA). The probable effect is that unless Utsey is appealed to the Oregon Supreme Court, which seems likely, statewide organizations, such as Oregonians in Action and the League of Women Voters, may find it more difficult to obtain judicial review of LUBA orders. View full article (PDF).

Oregon Circuit Court Stops Measure 7

On Thursday, February 22, 2001, Oregon Circuit Court Judge Paul J. Lipscomb issued his opinion on Ballot Measure 7 in a suit for declaratory judgment brought by Audrey McCall, Hector McPherson, the League of Oregon Cities, and many other supporters of Oregon’s existing land use planning program. Judge Lipscomb concluded that the preliminary injunction he issued on December 6, 2000, should be made permanent and formally declared that Measure 7 was not validly enacted in accordance with procedures required by the Oregon Constitution. Judge Lipscomb emphasized that his opinion did not address the merits of Measure 7. View full article (PDF).

The Oregon Attorney General’s Measure 7 Opinion

On February 13, 2001, Oregon Attorney General Hardy Myers released an opinion which interprets Ballot Measure 7. Measure 7 amends the Oregon Constitution to require state and local governments to pay landowners in certain circumstances when government regulation reduces the value of their real property. Since Measure 7 passed on November 7, 2000, supporters of Oregon’s land use program and property rights activists have disputed its scope and meaning. This short summary of the Attorney General’s opinion, which addresses specific questions posed by Governor Kitzhaber, will help our clients and others to understand the likely impacts of Measure 7 if it is upheld against pending constitutional challenges. View full article (PDF).