OAR 660-024-0075: Airport Economic Development Pilot Program

(1) For the purposes of this rule, the following definitions apply in addition to those in OAR 660-024-0010: (a) “Approved airport master plan” means a comprehensive study of an airport describing the short-, medium-, and long-term development plans to meet future aviation demand with any necessary approval from the Federal Aviation Administration and adoption as a component of the comprehensive plan. (b) “Master plan for economic development” means a written plan or plans developed by a city for a proposed pilot program site that explains how development of the proposed pilot program site will advance the city’s economic development goals contained in the comprehensive plan; how the city expects urbanization of the proposed pilot program site to promote economic development, industry growth, and job creation that would not otherwise occur at other locations in the urban area; and how the site will be served with public facilities and services. (c) “Pilot program site” means the land included in the nomination for the pilot program under section (3) and selected for the program under section (4). (d) “Public facilities and services” means water, sanitary sewer, storm water management, transportation facilities, and emergency services. (e) “Traded sector” has the meaning provided in ORS 285B.280. (2) As provided in ORS 197A.405(5), the commission will select one city to implement a pilot program to promote economic development and industry growth and job creation at an airport. The commission will select a pilot program city according to the process in section (4). The pilot program will be implemented according to the requirements of sections (5) to (8). (3) A city may nominate a site adjacent to its UGB for participation in the pilot program. A nomination must: (a) Include a concept plan that contains: (A) A master plan for economic development of the proposed site. A master plan for economic development will be approved by the city’s elected body after at least one public hearing; (B) A list of goals for the master plan for economic development of the proposed pilot program site; (C) Current comprehensive plan map designation and a description of proposed changes needed to implement the master plan for economic development; (D) Any proposed changes to comprehensive plan text needed to implement the master plan for economic development for at least 20 years; and (E) Current zoning regulations, a description of proposed changes needed to implement the master plan for economic development, and an explanation of how the proposed changes will only allow uses that are compatible with aviation uses at the adjacent airport. (b) Include a map or maps showing that the site is adjacent to the existing UGB and adjacent to an airport; (c) Include the approved airport master plan for the airport to which the nominated site is adjacent; (d) Include public facilities plans showing that the nominated site is near public facilities and services; (e) Report the number of jobs that were existing at all of the businesses located on the proposed pilot program site on the effective date of ORS 197A.405; (f) Include evidence that the governing body of the county containing the nominated site consents to the nomination; and (g) Be submitted to the department by a date selected by the director. (4) The commission shall select a pilot program site from among those nominated. The selected site must satisfy the criteria in subsection (a). The commission will select the site that, in its judgment, best satisfies the criteria in subsection (b). The requirements of subsection (c) apply to the selection process. (a) The site is: (A) Not less than 78 miles from the urban growth boundary of any city with a population of 300,000 or more; (B) Located in a county with at least seven percent unemployment over the preceding five-year period. The unemployment rate shall be calculated using data from the Oregon Employment Department. For the purposes of this rule, “over the preceding five-year period” means the average annual, seasonally adjusted unemployment rate for the five years preceding the date in subsection (3)(g); (C) Adjacent to the city’s existing UGB; (D) Adjacent to an airport with an approved airport master plan; (E) Near public facilities and services, including streets; (F) Planned and zoned for commercial or industrial uses that are compatible with aviation uses; and (G) Not high-value farmland as the term defined in ORS 195.300(10). (b) The pilot program site: (A) Will, once included in the UGB, provide economic development opportunities not present in other parts of the urban area; and (B) Can be served with public facilities and services at a level adequate for planned industrial and commercial uses. (c) The commission shall select one pilot program site for implementation. In selecting the pilot program site, the commission may only consider applications that the department determines are complete pursuant to subsections (3)(a) to (f). The commission shall issue a final order selecting the city for the expedited UGB amendment. (5) Notwithstanding OAR 660-024-0040, the city selected under subsection (4)(c) for the pilot program may expand the UGB for the city to include the pilot program site without demonstrating a need for land during the planning period. (6) Notwithstanding OAR 660-024-0050, the city selected under subsection (4)(c) for the pilot program may expand the UGB for the city to include the pilot program site without completing an inventory of land inside the UGB to determine development capacity and without determining whether the UGB has a deficiency of industrial land to accommodate 20-year needs. (7) Notwithstanding OAR 660-024-0065 and 660-024-0067, the city selected in subsection (4)(c) for the pilot program may expand the UGB for the city to include the pilot program site without establishing or evaluating a study area. Only the pilot program site may be included in a UGB amendment completed under the provisions of this rule. (8) The following requirements apply to the city and county expanding its UGB for the pilot program site: (a) Concurrently with adoption of a UGB amendment, the city or county must assign appropriate urban comprehensive plan and zoning designations to land added to the UGB consistent with the master plan for economic development. The pilot program site must remain planned and zoned for industrial uses, and commercial uses that support industrial or aviation use, that are compatible with aviation uses for a period of 20 years after the site is included in the UGB; (b) The pilot program site must be protected from conversion to other uses before, during, and after implementation of the master plan for economic development; (c) Industrial and commercial developments on the pilot program site must continue to be used to implement the master plan for economic development for a period of at least 50 years after the selection of the pilot program site through: (A) Zoning restrictions; or (B) Other regulations, provisions or conditions determined by the city. (9) A pilot program site included in a UGB must be treated as employment land for the purposes of a subsequent land need analysis under OAR chapter 660, division 24 or 38. (10) The city that expands its UGB pursuant to this rule must provide, to the extent practicable, the following information to the department by September 30, 2021: (a) The number of new businesses established within the boundaries of the pilot program site and the number of businesses that relocated to the pilot program site from another location in the urban area; (b) The number of jobs created at the pilot program site. Include: (A) The total number of jobs at businesses located on the pilot program site at the time of the report; (B) The number of jobs reported in paragraph (A) that were existing at a business located on the pilot program site before the site was included in the UGB; (C) The number of jobs reported in paragraph (A) that were created by an existing business located on the pilot program site after the site was included in the UGB; (D) The number of jobs reported in paragraph (A) that were created by a business or businesses that had no employees in the urban area containing the pilot program site before the business located on the pilot program site; (E) The number of jobs reported in paragraph (A) that were created by a business or businesses that relocated jobs on the pilot program site from another location within the urban area containing the pilot program site; and (F) The number of jobs reported in paragraphs (C) and (D) at businesses engaged in a traded sector. (c) The wages of the new jobs described in paragraphs (b)(C) and (D) created at the pilot program site. The wage data may be provided in categories or other generalized fashion; (d) The most recently available unemployment rate from the Oregon Department of Employment for the county containing the pilot program site and an analysis of the effect of the employment and unemployment in the city by business development at the pilot program site; (e) The number of residential properties listed for sale on the Residential Multiple Listing Service with an address from the city containing the pilot program site on a date one month after the commission selects the city and on June 30, 2021; (f) The average sale price of residential properties with an address from the city containing the pilot program site for the period beginning one month after the commission selects the city and ending June 30, 2021; (g) The average per-acre price of land zoned industrial listed for sale with an address from the city containing the pilot program site on a date one month after the commission selects the city and on June 30, 2021; (h) The dollars of private investment in the pilot program site after the pilot program site is included in the UGB, as determined from standard building permit records; (i) An analysis of the economic growth of the city and county since the implementation of the pilot program.