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| ‘No good options for the city if the initiative passes’ |
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| Interview with Gene Green, Molalla city manager |
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Q: What happens if the vote passes? What about a limited moratorium on growth and other possible fallouts?
A: “If the initiative passes and the city complies with it, the city will be in violation of its NPDES permit. That, in turn, exposes the city to substantial fines from DEQ. The city could also anticipate being the subject of claims by property owners claiming that the charter amendment was preempted by state and federal law and, hence, void.
“With respect to the effect on future development, ORS 197.768 allows the city to adopt a ‘public facility strategy’ when a public facility (i.e. the wastewater system) can’t meet current needs. The statute requires the city to demonstrate that there has been rapid and unexpected growth in the city, that anticipated development will exceed the capacity of the facility, and that the city has a strategy to address the shortfall without unreasonably restricting the supply of residential, commercial and industrial development. If the city can demonstrate those things, then the city can ‘control the time and sequence of development approvals.’ In effect, a public facilities strategy allows the city to limit development in the area served by the sewer system. A public facility strategy is limited to two years, but can be extended up to three additional years.
“A key question would be whether the city would be eligible for the temporary public facility strategy relief provided by ORS 197.768. The inability to meet current sanitary sewer demands would not be caused by rapid and unanticipated growth, but rather as a result of a citizen initiative, which prevented the city from carrying through an adopted and permitted public facility plan which guaranteed adequate sewer capacity for years to come.
“It is also worth noting that the statutes also allow for a complete moratorium on development (ORS 197.505 to 197.640). However, the standards for demonstrating the need for a moratorium are difficult to meet and, in any event, a moratorium is limited to 120 days, with a maximum extension of only six months. Moratoria are intended to be an emergency measure designed to meet an immediate and critical need that could not have been foreseen.
Q: If the vote passes, how does that affect the city’s planning for a new Urban Growth Boundary or the comprehensive plan?
A: “With respect to the UGB, expansion of the UGB is predicated upon an analysis of buildable lands under ORS 197.296. In a nutshell, the city is required to look at its’ growth over the last five years and project that growth rate out over the next 20 years. Then the city looks at its current UGB and zoning ordinances to determine if it has enough land to accommodate the projected need given its current zoning plan. If it doesn’t, it can ‘upzone’ land within the UGB, expand the UGB, or some combination of the two. Most cities do a combination.
“In this case, the wastewater issue throws off the analysis. Using past growth to predict future growth assumes there is sufficient capacity in the public facilities necessary to accommodate the growth - i.e. roads, sewers, water, police, fore, etc. If the sewer system cannot accommodate the growth, the city is forced into either a public facility strategy or a moratorium. In either case, the result is a slow-down in development approval with a corresponding reduction in pressure on the UGB.
“If the city can’t approve development, then it’s not using up the land inside the UGB and can’t justify expanding the UGB. There may be some room in the statute to account for reduced capacity in a public facility, but the result is the same: The city’s ability to demonstrate a need to expand the UGB is weakened.
Q: Are there other plans that city has been working on?
A: “There are no good options for the city if the initiative passes. If the city continues to approve development applications under its current wastewater system, it risks incurring substantial fines from DEQ for violations of the terms of its NPDES. If it denies development applications and thus violates DLCD (Oregon Department of Land Development and Conservation) buildable lands requirements, it is exposed to potential enforcement action by DLCD under ORS 197.335 and loss of substantial state funding (including transportation and tobacco funds).”
Q: Is there any way to put a timeframe in how much the city could be set back if the vote passes?
A: “If one is just addressing residential growth, the city has approximately two to three years of available sanitary sewer capacity; however, the city is also experiencing considerable commercial and industrial development which makes capacity a crucial element to every area.”
Q: If a vote passed, would that affect recruitment of the businesses that Team For Economic Action in Molalla has been working on?
A: “Business recruitment would greatly suffer as we strive to develop almost 200 acres of industrial land within our city limits. Commercial and residential growth would be adversely affected because of the uncertainty of having infrastructure in place to fulfill development needs. In addition, the question of dramatic rate increases to improve the treatment facilities could discourage residential and commercial developers.
“For example, currently the city and TEAM are working on the following projects relating to commercial development, which would be adversely affected if the vote passes:
1. Avion Millsite Development - 50 acres zoned Commercial/Industrial.
2. Floragon Millsite - 100 acres located in the middle of town, which is for sale and will be zoned Commercial, Industrial and Residential.
3. Four Corners Industrial Park - 87 acres. Industrial site in which the city received $800,000 for development.
4. Downtown Revitalization Grant (TGM, $127,000) to determine future character, zoning and development of Molalla.
5. Properties adjacent to Hwy 213 and 211 intersection will be adversely affected if sewer capacity did not allow for anticipated development.
6. Presently, the majority of properties located along Hwy 211 from Molalla Avenue to Hwy 213 are at some stage of business development. Property owners will be affected if a sewer capacity issue is questionable as they market and/or develop their properties.
“In addition, the city of Molalla recently passed an Economic Improvement District, which focuses on building our economic base and creating jobs. Our economic development director will have a very difficult job in attracting companies to Molalla if the sewer capacity issue is not resolved.
“In summary, Molalla’s economic stability is greatly dependent on bringing jobs to Molalla and also building a residential base to live and shop here. It is imperative that we have the infrastructure in place to meet those needs. If the voters stop the wastewater project in September, we believe the state and county will likely seek other areas to promote needed economic development. A large portion of our $12 million in grants has been associated with growth and assisting Molalla in preparing for it.” |
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