Oregon Theodore R KjibngDski, Governor NOTICE OF ADOPTED AMENDMENT Department of Land Conservation and Development 635 Capitol Street, Suite 150 Salem, OR 97301-2540 (503) 373-0050 Fax (503) 378-5518 w w w . lcd.state.or.us Mis. 6/24/2010 TO: Subscribers to Notice of Adopted Plan or Land Use Regulation Amendments FROM: Plan Amendment Program Specialist SUBJECT: City of Sublimity Plan Amendment DLCD File Number 001-10 The Department of Land Conservation and Development (DLCD) received the attached notice of adoption. Due to the size of amended material submitted, a complete copy has not been attached. A Copy of the adopted plan amendment is available for review at the DLCD office in Salem and the local government office. Appeal Procedures* DLCD ACKNOWLEDGMENT or DEADLINE TO APPEAL: Friday, July 09, 2010 This amendment was submitted to DLCD for review prior to adoption with less than the required 45-day notice. Pursuant to ORS 197.830(2)(b) only persons who participated in the local government proceedings leading to adoption of the amendment are eligible to appeal this decision to the Land Use Board of Appeals (LUBA). If you wish to appeal, you must file a notice of intent to appeal with the Land Use Board of Appeals (LUBA) no later than 21 days from the date the decision was mailed to you by the local government. If you have questions, check with the local government to determine the appeal deadline. Copies of the notice of intent to appeal must be served upon the local government and others who received written notice of the final decision from the local government. The notice of intent to appeal must be served and filed in the form and manner prescribed by LUBA, (OAR Chapter 661, Division 10). Please call LUBA at 503-373-1265, if you have questions about appeal procedures. *NOTE: The Acknowledgment or Appeal Deadline is based upon the date the decision was mailed by local government. A decision may have been mailed to you on a different date than it was mailed to DLCD. As a result, your appeal deadline may be earlier than the above date specified. NO LUBA Notification to the jurisdiction of an appeal by the deadline, this Plan Amendment is acknowledged. Cc: Suzanne Dufner, City of Sublimity Gloria Gardiner, DLCD Urban Planning Specialist Steve Oulman, DLCD Regional Representative Thomas Hogue, DLCD Regional Representative Gloria Gardiner, DLCD Urban Planning Specialist YA J Î i 1 2 D L C D Notice of Adoption LJ in RtrsQ.ii [_i d^ci runic [ | riüiilcd dept of JUH 18 2010 This Form 2 must be mailed to DLCD within 5-Working Days after the Final LAND CONSERVAI ION Ordinance is signed by the public Official Designated by the jurisdiction AND DEVELOPMENT and all other requirements o f O R S 197.615 and OAR 660-018-000 I OP'Oliìiv I VOiih Jurisdict ion: City of Sublimity Local file number: LA 2010-01 Date of Adopt ion: June 14, 2010 Date Mailed: June 18, 2010 hand delivered Was a Notice of Proposed Amendment (Form 1) mailed to DLCD? X Yes • No Date: 3/9/10 X Comprehens ive Plan Text A m e n d m e n t G Comprehensive Plan Map Amendment • Land Use Regulat ion Amendmen t G Zoning Map A m e n d m e n t • New Land Use Regulat ion • Other: Summar ize the adopted amendment . Do not use technical terms. Do not wri te "See Attached". The Economic Element of the Comp Plan was updated with an Economic Opportunit ies Analysis, including updated Goals and Policies. No U G B expansion was proposed or adopted. Does the Adopt ion differ f rom proposal? Please select one No. Plan Map Changed from: to: Zone Map Changed from: to: Location: Acres Involved: Speci fy Density: Previous: New: Appl icable statewide planning goals: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 x x • H D • • • x • • • • • • • • • • W a s an Except ion Adopted? • YES X NO Did DLCD receive a Notice of Proposed Amendment . . . 45-days prior to first evidentiary hearing? X Yes G No If no, do the statewide planning goals apply? G Yes G No If no, did Emergency Circumstances require immediate adopt ion? G Yes G No DLCD file No. 001-10(18195) fl61741 Please list all affected State or Federal Agencies, Local Governments or Special Districts: Marion County. City of Stayton.. ODOT. Address: M W V C O G , 105 H i g h S E City: Salem, OR Local Contact: J i m J a c k s Zip: 97301 Phone: (503) 540-1619 Extension: Fax Number: 503-588-6094 E-mai l Address: j j a c k s @ m w v c o g . o r g ADOPTION SUBMITTAL REQUIREMENTS This Form 2 must be received by DLCD no later than 5 days after the ordinance has been signed by the public official designated by the jurisdiction to sign the approved ordinance(s) per ORS 197.615 and OAR Chapter 660. Division 18 1. This Form 2 must be submitted by local jurisdictions only (not by applicant). 2. When submitting, please print this Fo rm 2 on light green paper if available. 3. Send this Form 2 and O n e (1) Comple te Pape r Copy and O n e (1) Electronic Digital CD (documents and maps) of the Adopted Amendment to the address in number 6: 4. Electronic Submittals: Form 2 - Notice of Adoption will not be accepted via email or any electronic or digital format at this time. 5. The Adopted Materials must include the final decision signed by the official designated by the jurisdiction. The Final Decision must include approved signed ordinance(s), finding(s), exhibit(s), and any map(s). 6. DLCD Notice of Adoption must be submitted in One (1) Complete Paper Copy and One (1) Electronic Digital CD via United States Postal Service, Common Carrier or Hand Carried to the DLCD Salem Office and stamped with the incoming date stamp, (for submittal instructions, also see # 5)] M A I L the P A P E R C O P Y and CD of the Adopted Amendment to: 7. Submittal of this Notice of Adoption must include the signed ordinance(s), finding(s), exhibit(s) and any other supplementary information (see ORS 197.615 ). 8. Deadline to appeals to LUBA is calculated twenty-one (21) days from the receipt (postmark date) of adoption (see ORS 197.830 to 197.845 ). 9. In addition to sending the Form 2 - Notice of Adoption to DLCD, please notify persons who participated in the local hearing and requested notice of the final decision at the same time the adoption packet is mailed to DLCD (see ORS 197.615 ). 10. Need M o r e Copies? You can now access these forms online at http:/ /www.lcd.state.or.us/ . You may also call the DLCD Office at (503) 373-0050; or Fax your request to: (503) 378-5518. ATTENTION: PLAN AMENDMENT SPECIALIST DEPARTMENT OF LAND CONSERVATION AND DEVELOPMENT 635 CAPITOL STREET NE, SUITE 150 SALEM, OREGON 97301-2540 Updated December 22, 2009 CITY OF SUBLIMITY ORDINANCE NO. 1 \ AN ORDINANCE AMENDING THE SUBLIMITY COMPREHENSIVE PLAN, AND DECLARING AN EMERGENCY WHEREAS, the City of Sublimity deemed it necessary to amend the Sublimity Comprehensive Plan to update the Economics Element of the Comprehensive Plan; and WHEREAS, in December 2008 the City of Sublimity was awarded a Rural Investment Fund (RIF) Grant which expires June 30, 2010 to prepare and adopt an Economic Opportunity Analysis and update the Economics Element of the Comprehensive Plan, and WHEREAS, on April 26,2010, the Planning Commission held a public hearing at which time the public was given full opportunity to be present and heard on the matter; and WHEREAS, on May 10, 2010, the City Council held a public hearing at which time the public was given full opportunity to be present and heard on the matter; and WHEREAS, notice of the said public hearings was duly given to the public, NOW THEREFORE THE CITY OF SUBLIMITY ORDAINS AS FOLLOWS: Section 1. The City Council of the City of Sublimity does hereby adopt the certain findings of fact, recommendations, and conclusionary findings attached hereto as Exhibit "A." Section 2, The City Council of the City of Sublimity does hereby amend the Sublimity Comprehensive Plan by replacing the Economics Element with the City of Sublimity Economic Opportunities Analysis, including its Implementing Measures, revised Goals and Policies, and nonbinding conceptual utilities plan attached hereto as Exhibit "B." Section 3, The City Council of the City of Sublimity deems and desires it necessary for the preservation of the health, peace and safety of the City of Sublimity that this Ordinance take effect at once, and therefore an emergency is hereby declared to exist and this Ordinance shall be in full force and effect from and after its passage and approval. APPROVED this M » day of v l f A n - e L . , 2010, by the City Council of the City of Sublimity, Marion County, Oregon, 0 M A Y O R ^CJTYTtECORDER Page I - Economic Opportunities Analysis Ordinance EXHIBIT "A" FINDINGS FOR LEGISLATIVE AMENDMENT CASE NO. 10-01 ECONOMIC OPPORTUNITY ANALYSIS, IMPLEMENTATION MEASURES, AND UPDATED GOALS AND POLICIES 1. Background. In December 2008, the City of Sublimity was awarded a federal Rural Investment Fund (RIF) grant to complete an Economic Opportunities Analysis (EOA), and a nonbinding conceptual utility master plan for the vacant industrial lands located north of Sublimity Boulevard. The purpose of the project was to update the City's plan for economic development in light of recent economic and demographic conditions and to ensure the City has an adequate supply of land available for future economic development opportunities. Over the last year and a half the Mid-Willamette Valley Council of Governments has worked with citizens, the City Planning Commission and City Council through a series of work sessions and public hearings to develop an EOA for the City of Sublimity that is consistent with the City's goals for economic development and meets the requirements of statewide Planning Goal 9 (Economic Development) found in Oregon Administrative Rule (OAR) 660-09. The resulting EOA includes the following: A. An assessment of the City's current economic conditions, and a review of the City's economic strengths and weaknesses; B. A buildable land inventory that identifies vacant and re-developable commercial and industrial lands; C. An employment forecast that is used to assess future commercial and industrial land needs; and D. Implementation Measures and revised Economic Goals and Policies. 2. Citizen Involvement - Statewide Goal 1. Sublimity has an adopted Citizen Involvement Plan to ensure the citizens of the City have an opportunity to be involved in all phases of the planning process. The City has designated its Planning Commission as the Committee for Citizen Involvement (CCI). The ultimate purpose of the Citizen Involvement Plan is to establish effective communication and involvement between governing officials and the citizens of the Community. It is intended specifically to promote awareness of this opportunity and to provide channels of communication so that the public may express their views to appointed and elected officials. It also provides means whereby citizens are guaranteed Page 1 of 4 an open response to those views. Findings The Sublimity Planning Commission serves as the Committee for Citizen Involvement (CCI) The Planning Commission met regularly and provided the direction for plan and plan update development. All meetings were announced and open to the public. Technical reports were available for public review. A community survey was conducted to obtain input and determine citizen needs, desires, and opinions. Technical reports were available for public review. A community survey was completed in March 2009 to obtain additional feedback and determine citizen needs, desires, and opinions on the community's goals for economic development. 3. Land Use Planning Coordination — Statewide Goal 2. Findings The proposed Economic Opportunity Analysis, including Implementation Measures and revised Goals and Policies, was provided to the Department of Land Conservation and Development at least 45-days prior to the first Planning Commission healing on April 26, 2010. No comments were received by the City due to the 45-day notice prior to the Planning Commission hearing. 4. Economy of the City - Statewide Goal 9. Like many of Marion County's small cities, Sublimity has served chiefly as a retail and service center supplying goods and services for those living and working in the city and the surrounding area. The economy of Sublimity is part of and is affected by the City of Stay ton (population 7,820) on the south side of Highway 22 and the City of Salem (population 156,955) about 12 miles to the west. Findings Industrial and commercial land supplies exist to serve the community to the year 2030 Commercial growth is most likely to occur in capturing weekend highway trade from Highway 22 and travelers going to Silver Falls State Park. Industrial growth is most likely to occur in small specialty industries. Page 1 of 4 Data inventories were prepared in accordance with Oregon Administrative Rule (OAR) 660-009, Economic Development, regarding developable lands, and economic characteristics and projections to the year 2030. Land requirements were projected relying, primarily, on the "safe harbor" method allowed in OAR 660-009, Economic Development. The plan and urban growth boundary were evaluated based on the inventory information, citizen input and governmental coordination. There is no proposal to expand the urban growth boundary because it was found sufficient buildable land exists to accommodate commercial and industrial development to the year 2030. 5. Nonbinding Conceptual Utility Master Plan. Findings In 2010 the City Engineer prepared a nonbinding conceptual utility master plan for the City's vacant industrial lands located north of Sublimity Boulevard that was reviewed by the Planning Commission on March 29, 2010 at their work session and by the City Council on April 12, 2010 at their work session. The nonbinding utility master plan provides a conceptual layout and rough cost estimates of public facilities needed to serve future industrial development north of Sublimity Boulevard. 6. Final Adoption Process. Findings The Planning Commission held a duly noticed public hearing on April 26, 2010 at which time the public was given full opportunity to be present and heard on the matter. The Planning Commission passed a motion recommending the City Council approve the proposed Economic Opportunity Analysis and amendments to the Comprehensive Plan's Economic Goals and Policies. The City Council held a duly noticed public hearing on May 10, 2010 at which time the public was given full opportunity to be present and heard on the matter. On May 10, 2010, after the public hearing was closed the City Council deliberated and passed a motion approving Legislative Amendment 10-01. Staff was directed to prepare an ordinance for adoption. 7. 1000 Friends of Oregon Letter. At the May 10, 2010, City Council public hearing a letter dated May 10, 2010, from 1000 Friends of Oregon was read and placed into the record expressing concern that in addition to using the "safe harbor" for the projected 20-year employment numbers to determine the needed acres of land, an aspirational element was also used to determine the needed acres of Page 1 of 4 land. Findings The City's process included the "safe harbor" and an aspirational element, but the needed number of acres to accommodate the projected 20-year employment numbers did not necessitate an urban growth boundary expansion and an expansion was not considered. The number of needed acres was the same as the number of acres that were already designated in the Comprehensive Plan for commercial and industrial uses and zoned for commercial and industrial uses. 8. Conclusion. Findings The proposed Economic Opportunity Analysis, including Implementation Measures and revised Goals and Policies, are consistent with Statewide Planning Goals 1, Citizen Involvement, 2, Land Use Planning Coordination, and 9, Economy. Page 1 of 4 CITY OF SUBLIMITY COMPREHENSIVE PLAN Economics Element This document was funded by the City of Sublimity and a grant from the Rural Investment Fund (RIF). Prepared for the City of Sublimity by the Mid-Willamette Valley Council of Governments. June 14, 2010 Contents Introduction 3 Economic Profile 3 Employment Forecast 10 Employment Land Inventory 15 Employment Land Needs 22 Conclusion 23 Economic Goals 2g and Policies Appendix A: Industrial Land Utility Master Plan 28 Appendix B: Public Infrastructure Funding and Financing Resources 34 Appendix C: Community Economic Development Survey 40 Introduction Statewide Planning Goal 9 (Economic Development) requires cities to provide an adequate supply of suitable sites for a variety of industrial and other employment uses. The following Economic Opportunity Analysis (EOA) fulfills the Goal 9 requirements to ensure an adequate supply of commercial and industrial land is available for new and expanding businesses in Sublimity over the 20 year planning horizon. The EOA is a planning tool to help the community understand its economy and plan for economic development initiatives. An EOA also provides guidance for infrastructure planning and investments. The EOA includes an overview of national, state, regional and local economic trends that will influence future economic development in the community. The EOA also includes an assessment of the community's economic strengths and weaknesses. These data are used to develop a local employment forecast for 2030, which are in turn used to determine the amount and type of commercial and industrial land needed over the planning horizon. This information is compared with the current supply of vacant and underutilized commercial and industrial lands to determine whether or not there are any deficiencies in the short and long-term land supplies. The chapter concludes with a series of Comprehensive Plan policy statements intended to foster economic development in Sublimity. Economic Profile The City of Sublimity is located in the Mid-Willamette Valley on Highway 22, approximately 11 miles east of the Salem urban area and two (2) miles north of the City of Stayton. The "sublime" nature of the surrounding landscape is thought to be the inspiration for naming the City of Sublimity. The surrounding scenery, along with proximity to nearby recreational opportunities and the City's high quality of life, have contributed to strong residential growth in the City over the last ten (10) years. The City has experienced a slower rate of commercial growth, and little to no industrial development in the past. Residents continue to obtain the majority of their commercial needs and employment opportunities in neighboring cities such as, Salem and Stayton. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Figure 1 - Location Map Population The City experienced rapid population growth over the last several decades that has slowed recently in response to slower state and regional economic growth rates. The City's current population is estimated at 2,255', making Sublimity the tenth largest of Marion County's 20 cities. Table 1 shows the City's overall average annual growth rate from 1980 to 2009 was 2.6 percent. Table 1 Sublimity Population 1980 - 2009 Year Population AAGR1 1980 1,077 - 1990 1,487 3.3% 2000 2,139 3.7% 2009 2,2552 0.60% AAGR 1980- 2009 2.6% Population estimate from Portland State University Center for Population Research Source: US Census, Portland State University, and MWVCOG, 2010 1 2007 population estimate from Portland State University Population Research Center. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Table 2 below includes a forecast of the City's population growth through the year 2030. The forecast shows continued growth, although at a slower rate than the 2.6 average annual growth rate experienced over the last 27 years. The 2030 population estimate is 3,102 based upon an average annual growth rate of 1.5 percent. The slower growth rate is anticipated due to capacity constraints associated with the City's current water supply. The population forecast also accounts for both high and low growth segments as influenced by the prevailing economic and market conditions experienced over the forecast period. Table 2 Sublimity Population Forecast 2009 - 2030 Year Population 20091 2,255 2010 2,290 2015 2,470 2020 2,665 2025 2,875 2030 3,102 Population change 2009 - 2030 847 AAGR 2009-2030 1.53% Source: U.S. Census and Portland State University Center for Population Research, MWVCOG 2010. 1 2009 Population estimate from Portland State University Employment Sublimity's economy has experienced slower growth as compared to the City's overall population growth. While a number of new commercial services and businesses have recently established in the City of Sublimity, residents continue to depend largely on commercial and employment centers found in Stayton and Sublimity. The City's limited economic base is made up primarily of health care and social assistance services, retail trade and public sector employment as shown in Table 3 below. The largest employer in Sublimity is Marian Estates, which is a highly successful retirement center providing housing for senior citizens, with a varying degree of health care and other services. Table 3 shows the City's industrial employment is limited to approximately 6.4 percent of overall employment and is based primarily in construction and wholesale trade, transportation and warehousing. In 2006, there were no manufacturing jobs reported in the City. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Table 3 Sublimity Employment by Sector 2006 Employment Sector Average Annual Employment Percent of Total Construction 28 5.0 Wholesale Trade, Transportation and Warehousing 8 1.4 Industrial total 36 6.4 Retail Trade 92 16.3 Finance and Insurance 29 5.1 Real Estate, Professional, Administrative and Waste Services 17 3.0 Health Care and Social Assistance 269 47.6 Accommodation and Food Services 42 7.4 Other Services 34 6.0 Public Sector (Local, State and Federal Employment) 46 8.1 Total 565 100.0 Source: State of Oregon Employment Department Covered Wages and Employment 2006, sorted and summarized by MWVCOG, 2009. Economic Opportunities and Constraints The following sections examine factors that influence economic growth opportunities in Sublimity, including a discussion of the City's economic strengths and weaknesses. By identifying the City's strengths and weaknesses, the City can begin to understand which economic sectors have the greatest potential for growth and expansion, and what issues the City should work on to improve economic opportunity within the area. Location and Geography Sublimity is located in the Mid-Willamette Valley, approximately eleven (11) miles east of Salem, and two (2) miles north of Stayton, within the western low foothills of the Oregon Cascades. The topography is predominantly flat with some gently rolling hills. Land within the City's Urban Growth Boundary (UGB) is generally not constrained by major environmental constraints such as steep slopes, flood hazards and wetlands. The City is located adjacent to highly productive farmlands that support agricultural production and processing industries in Marion County. Nearby industrial employment centers include, the Mill Creek Industrial Park in Salem, which is a 514-acre "shovel ready" industrial site with immediate access to 1-5. The City of Stayton has approximately 168 acres of developable industrial land, mostly located in the Wilco Industrial Area between Shaff Road and Washington Street2. The largest employers in the Stayton Area include NORPAC Foods, Inc., a frozen foods processor, 2 Stayton Comprehensive Plan (2006). Online at: http://www.staytonoregon.gov/ Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 and mobile home manufacturing businesses such as, Philips Industries and Karsten Company of Oregon. Sublimity's proximity to these large, industrial ready sites puts the City at a disadvantage for attracting a large manufacturing industry. However, Sublimity's proximity to these major industrial areas may also help the City attract smaller businesses that provide goods or services needed by industries located in these areas. Sublimity is located near a number of tourism destinations including, the Silver Falls State Park (10 miles), the Oregon Garden (11 miles), and Detroit Lake Recreational Area (35 miles). Transports tion Sublimity is located directly north of the Highway 22/Cascade Highway Interchange, approximately 12 miles from Interstate 5. The Oregon Department of Transportation (ODOT) is currently administering a construction project to widen the existing Highway 22 to four (4) lanes and construct new exit and entrance ramps in order to provide safer access to and from Highway 22. This project is scheduled to be completed during the summer of 2010. Public Utilities The City's water system is feed by ground water from four (4) existing wells. The Sublimity Water System Master Plan anticipates being able to serve a population of approximately 3,500. This estimate is based upon traditional water usage rates, and does not take into account industrial users with large water needs or the use of more water intensive agricultural crops. Without securing additional groundwater rights, the City will need to construct costly water system improvements in order to access water rights from the North Santiam River. Additional water capacity will be needed over the next 10-20 years in order to ensure the City is not at a disadvantage for attracting future economic development. Sanitary sewer service for the City of Sublimity is provided by a regionalized sanitary sewer facility located in Stayton. All of the City's sewage is collected through a sewage collection system that was installed in 1975, and pumped to the Stayton Sewer System for treatment. The Stayton sewage system was designed to expand to serve adjacent areas. Agreements between the City of Sublimity and Stayton identify usage rates and flows. The Sublimity Wastewater Collection Plan (2005) estimates the City's existing gravity wastewater service area is designed to serve 9,800 people. Areas within the existing downtown commercial area are fully served with water and sewer services. Additional water and sewer system improvements will be needed to serve the vacant industrial area currently located outside the city limits, north of Sublimity Boulevard. For additional information on public utility improvements needed to service the City's vacant industrial lands see Appendix A. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Quality of Life Quality of life is a subjective standard that is hard to quantify. It includes economic factors, such as income, employment, and housing costs, as well as non-economic factors, such as natural and physical amenities, quality of local education, and cultural and recreational opportunities. Quality of life continues to play an increasingly important role in economic development because it affects the relative attractiveness of the city to migrants. A more attractive quality of life may help Sublimity attract a greater share of in-migrants. These migrants not only bring job skills to various employment sectors, such as construction, services, and retail trade, but some may also start new businesses in the community. The City of Sublimity's attractive downtown, successful retirement community (Marian Estates), and "small town" feel, continues to attract new businesses and business owners to the Sublimity area. The City also has access to medical services through the recent opening of the Sublimity Medical Clinic by Santiam Memorial Hospital and quality public education services provided by the North Santiam School District 29J. Business Environment Sublimity's economic goals support the development of small businesses within the downtown core area. The City enjoys relatively low property taxes that may help give it a competitive advantage as compared to many cities. The City recently passed a business license ordinance in 2009, which requires local business owners to obtain a license to operate a business within the city limits and to renew their license on an annual basis. Based upon interviews with local property owners and developers, the City's current development permitting process may present a challenge and potential constraint to future commercial and industrial developments. Several owners have expressed concerns regarding the cost and time it takes to obtain development approval. Education The Santiam Center branch of Chemeketa Community College (CCC) is located at 11656 Sublimity Road and offers workforce training and career development services. In concert with the Oregon Employment Department, CCC has developed a Job and Career Center to assist job seekers find available jobs and receive training to enhance their job skills. The Job and Career Center can also provide specialized training workshops for employers. Chemeketa Community College also offers services to support small business owners through training programs, mentorships, and information on other available resources such as, Small Business Administration Loans. Small business development services are also available to area residents through GROW Santiam, a program coordinated by the North Santiam Canyon Economic Development Corporation. GROW Santiam provides intensive one-on-one business coaching using a model known as, Enterprise Facilitation, to promote the development of local small Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 businesses and a stronger local economy3. GROW provides free, confidential, business development services, and assists existing and would-be business owners to make informed decisions about the viability of their ideas. Summary The City of Sublimity has experienced rapid population growth over the last 20 years, due in part to its proximity to Salem and high quality of life. The City is likely to experience strong population growth, although at a lower rate due to infrastructure capacity constraints associated with the City's water system. The City's economic base continues to be limited despite recent expansions in commercial services and businesses. The largest employment sectors in Sublimity consist of health care and social assistance, retail trade and public sector employment. Projected population increases in Sublimity will provide expanded opportunities to obtain commercial goods and services locally, rather than in neighboring communities such as, Stayton and Salem. Sublimity's quality of life and proximity to nearby recreational sites make it an attractive location for future economic development opportunities. While large industrial sites are available in nearby employment centers such as Salem and Stayton, the City is well positioned to attract future residents and business owners that will help support further development and expansion of small businesses in Sublimity. Target Industries Businesses Sublimity is well suited to target over the next twenty years based upon its current economic base, economic opportunities and the City's economic goals and objectives include the following: • Expanded commercial retail and services to serve the needs of local residents and visitors to nearby tourism destinations. • Light Industrial - The City's proximity to Highway 22, nearby industrial areas and agricultural lands, provide opportunities for small businesses and start-up manufacturing companies. Examples of small manufacturing industries well suited to the area include businesses specializing in medical health services and products, construction supplies and services, and specialty food processing or supply companies. 3 GROW North Santiam website: http://www.growsantiam.org/index.html Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Employment Forecast The previous section included a description of the City of Sublimity's current economy and an analysis of the City's strengths and weaknesses for attracting economic development in the future. This information, along with the City's goals for economic development, and regional employment forecast infoimation, was used to develop a 20- year employment forecast for the City of Sublimity. State and Regional Employment Growth Table 4 shows forecasted employment within Marion, Polk, and Yamhill counties for the period from 2006 through 2016. Industry employment in the region is expected to grow from 179,800 in 2006 to 205,600 in 2016. This represents a growth rate of 14 percent. The greatest increase in regional employment growth is anticipated in Education and Health Services (28%), Professional and Business Services (19%) and Leisure and Hospitality (19%). Oregon's statewide industry employment is also projected to increase by 14 percent during the same time period (2006-2016).4 Economics -Table 4 Employment Projections by Selected Industry Marion, Polk, and Yamhill Counties, 2006 and 2016 Industry 2006 2016 Percent Change 2006-2016 Total Non-Farm Payroll Employment 179,800 205,600 14% Natural Resources and Mining 1,600 1,600 0% Construction 11,300 12,900 14% Manufacturing 21,800 22,200 2% Trade, Transportation and Utilities 30,100 33,600 12% Information 1,700 1,800 6% Financial Activities 8,700 9,700 11% Professional and Business Services 14,500 17,300 19% Educational and Health Services 24,900 31,800 28% Leisure and Hospitality 14,900 17,800 19% Other Services 6,100 6,700 10% Government 44,300 50,200 13% Source: Oregon Employment Department, 2007. 4 Oregon Employment Department, Employment Projections by Industry and Occupation 2006-2016, December 2007. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Sublimity Employment Forecast As noted above, both state and regional economic forecasts indicate positive economic growth over the next five (5) to ten (10) years. Given the City of Sublimity's comparative economic advantages for attracting business discussed above, the City of Sublimity can also expect to experience positive economic growth over the next twenty years. A local employment forecast was developed using the "Safe Harbor" method identified in Oregon Administrative Rules (OAR) 660-024-0040(8). The Safe Harbor method assumes the number of jobs created in the city will grow at a rate equal to the regional job growth rate provided in the most recent forecast published by the Oregon Employment Department. The most recent forecast provided by the Oregon Employment Department estimates the region's employment will grow by 14 percent from 2006 to 2016. This same growth rate was extrapolated through the year 2030 to develop a 20-year employment forecast for the City of Sublimity. Table 5 shows the forecasted total employment growth through the year 2030 using the "Safe Harbor" method. To calculate the 2030 forecast of future employment, covered employment was first converted to total employment using statewide conversion ratios. Total employment takes into account employees that are not covered under unemployment insurance, such as business owners and some agricultural workers. Upon converting covered employment to total employment, today's total employment estimate is projected out to 2030 using a 14 percent growth rate. Using this forecast method, 278 new jobs will be added over the planning horizon, for a total employment of 1,009 by the year 2030. This analysis assumes each employment sector will continue to make up the same percentage of total employment as exists today. The 2030 employment forecast shows the City's economy will continue to consist largely of service sector jobs (72%), followed by retail trade (15%), public sector (6%), construction (5%) and wholesale trade, transportation and warehousing (1%). Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Table 5 Employment Growth Sublimity, 2006 and 2030 Sector 2006 Covered Employment 2006' Emploj rotai ^ment 2030 Total Employment Percent Total Percent Total Percent Total Construction 5% 28 5.2% 38 5.2% 52 Wholesale Trade, Transportation and Warehousing 1.4% 8 1.3% 9 1.3% 13 Retail Trade 16.3% 92 15.0% 110 15.0% 151 Finance and Insurance 5.1% 29 5.4% 39 5.4% 54 Real Estate, Professional, Administrative and Waste Services 3% 17 3.1% 23 3.1% 31 Health Care and Social Assistance 47.6% 269 49.7% 364 49.7% 501 Accommodations and Food Services 7.4% 42 7.8% 57 7.8% 79 Other Services 6% 34 6.3% 46 6.3% 63 Public Section (Local, State and Federal) 8.1% 46 6.3% 46 6.3% 63 Total 100% 565 100% 731 100% 1,009 Source: State of Oregon Employment Department, 2007; employment forecast and data summary by MWVCOG, 2009. Land Demand In order to identify the amount of commercial and industrial land needed over the 20 year planning horizon, the employment growth forecast shown in Table 5 above was aggregated into general land use categories. The number of new jobs created for commercial and industrial use was then converted into the number of acres needed for commercial and industrial uses over the 20-year planning horizon. Next, the employment sectors forecasted above were allocated to one of two (2) land use categories: • Commercial: Retail Trade; Finance and Insurance; Real Estate, Professional, Administrative and Waste Services; Health Care and Social Assistance; Accommodations and Food Service; Other Services; and Public Section. • Industrial: Construction; Wholesale Trade, Transportation and Warehousing. Table 6 below shows the 2030 employment growth by land use type. The 2030 employment growth was calculated by subtracting the 2030 total employment from the current total employment figures. The local employment forecast estimates a total of 278 new commercial and industrial jobs will be created by the year 2030. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Table 6 Total Employment Growth by Land Use Type Sublimity, 2030 Land Use Type 2030 Commercial 260 Industrial 18 Total 278 Source: MWVCOG, 2010. Next, an estimate of the City's employment density, expressed as the number of jobs per acre, was calculated to determine the amount of land needed to support the City's forecasted employment growth shown in Table 6 above. This estimate was developed based upon a review of the City's existing commercial and industrial job densities as shown in Table 7. Table 7 shows the City of Sublimity currently has 47 industrial jobs located on approximately 9.4 acres of developed industrial land for an average density of 5.0 jobs per net acre. The table also shows the City of Sublimity currently has 639 commercial jobs located on approximately 34.3 acres of developed commercial land for an average density of 18.6 jobs per net acre. This analysis assumes the job density will remain largely the same over time because the types of businesses anticipated to locate in the city in the future are similar to the businesses located in Sublimity today. Table 7 Commercial and Industrial Job Density Sublimity, 2006 Land Use Type Total Employment Developed Acres Job Density Commercial 639 34.3 18.6 Industrial 47 9.4 5.0 Source: MWVCOG, 2009. Table 8 shows the amount of land needed to accommodate new commercial and industrial employment growth through the year 2030 based upon the employment forecast. Approximately 14 acres will be needed to accommodate projected commercial employment growth and through the year 2030. Approximately 3.6 acres will be needed to accommodate projected industrial employment growth through the year 2030. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Table 8 Land Need by Land Use Type Sublimity, 2030 Land Use Type Total Employment Growth Job Density Land Demand (acres) Commercial 260 18.6 13.98 Industrial 18 5.0 3.6 Total 278 17.58 Source: MWVCOG, 2010. Site Requirements An additional consideration besides the amount of land needed for future employment growth is the type of sites needed for future commercial and industrial developments. Site requirements include the physical characteristics required for a particular type of industrial or commercial use to operate, such as, parcel size, site configuration, and access to a specific type of transportation facility. Employment growth is forecasted for the major commercial and industrial sectors in Sublimity over the planning horizon; therefore, it is important that a variety of sites be available to meet the forecasted commercial and industrial land needs. industrial Industrial-related employment growth in Sublimity will likely consist of small to medium sized businesses. Newly established businesses often seek opportunities to lease space in an existing building due to the expense associated with constructing a new building. Small businesses and start up companies typically need 5,000 to 15,000 square feet of space that allows for a variety of uses including small scale manufacturing, showrooms, warehouse, and office space. Most light industrial flexible buildings are designed to accommodate anywhere between two (2) to ten (10) different businesses for an average total building size of 50,000 to 150,000 square feet. These buildings are usually located in business park settings on parcels three (3) to five (5) acres. There is also a need for medium sized parcels, five (5) to ten (10) acres in size to provide smaller businesses an opportunity to expand and for medium sized businesses that have larger space requirements. The vacant land supply should be two to five times the demand in order to ensure land prices remain competitive and provide prospective buyers a variety of site options. Industrial parcels should also be relatively free from physical constraints such as steep slopes, wetlands and floodplain constraints. Industrial parcels should be relatively flat and not be constrained by wetlands or floodplain constraints in order to be economically feasible for development. Direct access to a highway or designated truck route is preferable to minimize disruption to residential areas. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Commercial Employment growth in commercial services will most likely take place in small businesses. Small businesses often lack capital to construct new buildings and therefore, require existing buildings with leasable space. Due to the high turnover in small business start-ups, it is also desirable that building sites provide enough flexibility to accommodate various users. Typically building sizes for commercial service are 5,000 to 10,000 square feet. Commercial uses require access to streets with high traffic volumes and visibility to attract customers. These types of uses often locate in close proximity to one another to allow customers the ability to access other commercial services. Good pedestrian access and attractive streetscapes are important to encourage customers to access nearby services by walking. Results from the 2009 EOA Survey indicated the desire for more sit-down family restaurants and a grocery store. The average size of a sit down restaurant is 6,000 to 10,000 square feet in size, while specialty grocery stores are approximately 40,000 to 55,000 square feet in size5. The average size of a large supermarket is 80,000-100,000 square feet in size. Employment Land Inventory In 2009, the Mid-Willamette Valley Council of Governments completed a buildable lands inventory for the City of Sublimity in order to determine the amount of vacant and redevelopable commercial and industrial land inside the Sublimity UGB. The following parameters were used to determine whether land is vacant or redevelopable. • Vacant land includes all parcels with improvement values of less than $5,000 • Redevelopable land includes parcels in industrial and commercial zones where some limited improvements have been made, but where potential for redevelopment for more intense uses is probable. For the purpose of this analysis, redevelopable land is defined as parcels with improvement values of at least $5,000, where the ratio of land value to improvement value is 1:1 or greater. Figure 2 shows a map of buildable commercial and industrial land within the Sublimity UGB. 5 Commercial Realty Advisors Northwest, LLC, online at: http://www.cra-nw.com/clients.plip Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Figure 2 - Sublimity Commercial and Industrial Buildable Lands Map Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Industrial Land Table 9 shows the inventory of buildable industrial land. Table 9 shows no industrial zoned land is currently available within the city limits; however 42 acres of vacant industrial land is available between the city limits and Sublimity Urban Growth Boundary. Economics -Table 9 Industrial Buildable Lands Inventory Sublimity, 2009 Zone Vacant Acres Redevelopable Acres Total Acres Industrial Commercial (IC) 0.0 0.0 0.0 Between City Limits and UGB Urban Transition Farming - Marion County (UTF) 41.9 0.0 41.9 Total 41.9 0.0 41.9 Source: Marion County Assessor data, MWVCOG, 2009. Sublimity's vacant industrial lands are located south of 9th Street and north of Sublimity Boulevard in the southwest portion of the UGB as shown in figures 3 and 4 below. Based upon a review of Marion County Assessor data, the parcels are currently under the same ownership and consist of four (4) tax lots, approximately 0.5, 10.5, 14.8 and 19.2 acres in size. Figure 3 - Sublimity Vacant Industrial Lands iE* JL mini Vacant industrial lands Zoning Map Legend I 1 Sinric Family Residential / ' ' / Streams g m | Multiple Family Residential Urban Growth Boundary M l Commercial Qty Limits ^ ^ Industrial | lgjj | Fubite Industrial (Designation) Source: Sublimity Zoning Map, MWVCOG 2010 Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Figure 4 - Aerial Photograph of Vacant Industrial Lands Source: Bing Maps online at: http://www.binQ.com/maps/. Environmental Constraints Based upon a review of the information on natural resources currently found in the Sublimity Comprehensive Plan, the City's buildable land inventoiy does not appear to be limited by steep slopes, flood hazard areas or significant natural resources. Based upon a review of the National Wetland Inventory (NWI), the vacant industrial zoned area contains a surface drainage way that flows from the northeast to the southwest (see Figure 5). Revisions to the Natural Resources Element of the Sublimity Comprehensive Plan conducted in 1999, did not find the riparian area along this drainage way to be a significant local natural resource, although it recognized the need to address water quality and quantity issues related to urban storm water runoff in a surface (storm) water master plan. Under this approach, the City's storm water master plan would evaluate the effectiveness and cost/benefit of riparian/wetland restoration as a storm water treatment method. A wetland determination by the Oregon Department of State Lands (DSL) is recommended prior to development on the vacant industrial zoned area to determine whether or not the property contains any jurisdictional wetlands that must be mitigated under state and federal laws. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Figure 5 - National Wetland Inventory Map Source: National Wetland Inventory Maps, online at: http://www.fws.gov/wetlands/Data/mapper.html Commercial Table 10 shows the inventory of buildable commercial land. Table 10 shows there are approximately 19.0 acres available for commercial development in Sublimity. Economics-Table 10 Commercial Buildable Lands Inventory Sublimity, 2009 Zone Vacant Acres Redevelopable Acres Total Acres Commercial-General (C) 8.3 10.7 19.0 Total 8.3 10.7 19.0 Source: Marion County Assessor data, MWVCOG, 2009 Center Street Commercial Corridor The City's main commercial area is the Center Street Commercial Corridor, which is generally located one block east and west of Center Street (Cascade Highway), from Starr Street to the North Santiam Highway (OR 22) as shown in Figure 6. Zoning in the City's downtown consists primarily of Commercial (C). This zone allows a wide range of commercial facilities and services that are intended to meet the economic Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 needs of the city. The purpose of the Commercial Zone is to establish a core business center that serves as a vital component of the community and central gathering place. In 1997, the City of Sublimity adopted design standards for the Center Street Corridor that are intended to provide detailed, human-scale design, while affording flexibility to use a variety of building styles. The Commercial Zone District currently limits the size of buildings to 4,000 square feet. Vacant and redevelopable parcel sizes in the Commercial Zone range from 2,000 square feet to two (2) acres in size. Much of the Center Street Corridor is developed; although there are approximately nine (9) vacant parcels zoned Commercial within the corridor area. Many of the parcels within the Center Street Corridor also have redevelopment potential based upon a review of the existing improvement to land values within the area. Marion Estates Marian Estates is a private retirement community located on 38 acres on the east side of town, south of Church Street. The development offers a variety of housing types including, single family detached "cottages," multi-family apartments and residential nursing care facilities. In addition to housing, the community offers a variety of commercial and community services such as, restaurants, beauty/barber shop, gift shop, bank, chapel, guesthouses, library, pharmacy, therapy, transportation services and recreation activities. The development contains approximately 12.5 acres of commercial zoned property. Marian Estates employs approximately 300 people and has 400 residential units. For the most part, the development is considered to be built-out and does not have any plans for expansion in the near future. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Figure 6 - Center Street Commercial Corridor Zoning Map Legend Single Family Residential Multiple Family Residential Commercial Industrial Public Source: Sublimity Zoning Map, MWVCOG 2010 Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Employment Land Needs In addition to the economic growth forecasted earlier, Sublimity can aspire to attract one (1) to two (2) medium sized light industrial uses and several smaller manufacturing uses to promote higher wage job opportunities within the City and help diversify the City's tax base. Providing two (2) medium sized industrial sites of ten (10) acres each, in addition to land needed for the baseline employment forecast described above, would allow the City to be in a position to attract a medium sized light industrial user without restricting the amount of land available for smaller sized commercial and industrial uses. Table 11 shows the amount of industrial and commercial land needed over the planning horizon as compared to the amount of land currently available. Table 11 indicates that upon taking into consideration additional land needed for public puiposes such as, streets, utilities and open space, there is a need for approximately 17.5 acres of commercial land and 29.5 acres of industrial land for a total employment land need of 60.9 acres. In order to determine whether or not there is enough commercial and industrial land available through the year 2030, the total land demand was subtracted from the amount of commercial and industrial land currently available (supply). Table 11 shows that upon taking into account the amount of commercial and industrial land currently available, there is a small surplus of 1.5 acres of commercial land and a surplus of 12.4 acres of industrial land. Overall, there appears to be an adequate supply of land available to meet the City's employment land needs through the year 2030. Economics -Table 11 Commercial and Industrial Land Needs Sublimity, 2030 Commercial (acres) Industrial (acres) Total Demand Forecast 14.0 3.6 17.6 Aspirational 0.0 20.0 20.0 Public - streets, utilities, open space (25%) 3.5 5.9 9.1 Total demand 17.5 29.5 47.0 Supply 19.0 41.9 60.9 Gross Land Surplus or (Deficit) 1.5 12.4 13.9 Source: MWVCOG, 2010. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Conclusion Overall, the regional economy is expected to experience modest economic growth over the next 20 years. The City of Sublimity is in a strong position to capitalize on that growth due to the City's comparative advantages and economic opportunities. Sublimity is located in close proximity to recreational opportunities and amenities, in addition to agricultural markets and the Salem urban area. While the City lacks direct access to Interstate 5, access to outside markets is available through Highway 22 that connects with Interstate 5 approximately eleven (11) miles to the west. These advantages combined with the City's high quality of life and relatively low tax rates, makes Sublimity an attractive destination for future businesses and residents. Based upon a review of the City's comparative economic advantages, and economic goals and policies, the City can expect to primarily attract commercial retail and services that meet the needs of local residents and visitors to nearby tourism destinations, in addition to, small and medium sized light industry and specialty manufactures. Examples of small manufacturing industries well suited to the area include businesses specializing in medical health services and products, construction supplies and services, and specialty food processing or supply companies. The employment forecast projects the City's total employment will reach 1,009 jobs by the year 2030. This forecast implements the City's objective to remain primarily a rural residential community while still providing opportunities within Sublimity to shop locally for some goods and services and potentially attract several small to medium sized light industrial manufactures. The projected employment forecast shows the City's economy will continue to consist largely of service sector jobs, followed by retail trade, and public employment. Based upon a review, of the City's buildable land inventory for employment uses, there appears to be an adequate supply of employment land available for future commercial and industrial use within the existing Urban Growth Boundary. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Implementation Actions In order to encourage future economic growth and development within the city, the City of Sublimity will pursue the following the implementation actions to support economic development subject to the availability of funding resources: • Infrastructure Investments: Invest in major public infrastructure improvements needed to serve future development, such as improvements needed to increase the City's water system capacity. • Marketing: Implement a marketing strategy and develop effective communication tools and methods that the City can use to attract target industries. For example, the City could develop a brochure that identifies local commercial services (overnight accommodations, restaurants, shopping, etc.) and distribute the brochures in local recreation areas. • Development Review Streamlining: Consider amendments to the City's Development Code needed to streamline the development review process and allow the City to respond more quickly to development requests. Consider assisting in the annexation and rezoning process to ensure future industrial lands can be made readily available for development. • Commercial Building Size: Consider amendments to the City's Development Code that would allow commercial uses larger than 4,000 square feet in size, such as family sit-down restaurants and specialty grocery stores. • Industrial Site Preservation: Encourage the retention of larger industrial sites that are needed to attract medium sized light industrial uses and allow smaller businesses to expand in the future. Consider comprehensive plan policies and zoning restrictions to prevent subdividing these sites. • Economic Development Strategy: Create an economic development strategy that identifies specific steps that the City can take to attract new industries and commercial businesses. The strategy should identify specific tasks, in addition to, timelines for completing each task, available funding resources, parties responsible for completing each task, and prioritization of which tasks should be accomplished first. • Transportation System Development Charge (TSDC) Update: Update the City's TSDC to include the "backage road" identified in the Sublimity Interchange Area Management Plan (LAMP). This transportation improvement project is needed to provide access to the large industrial zoned land and commercial properties along Cascade Highway (Center Street). Including this project in the list of capital improvement project for the TSDC would help provide a funding mechanism to complete this project. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 • Wetland Determination - Work with the property owner to request a wetland determination by the Department of State Lands (DSL) for the vacant industrial zoned area in order to determine whether or not the property contains any jurisdictional wetlands that must be mitigated under state and federal laws prior to development. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Economic Goals and Policies ECONOMICS GOALS 1. INCREASE LOCAL EMPLOYMENT OPPORTUNITIES TO MEET THE NEEDS OF THE RESIDENTS OF THE AREA. 2. INCREASE THE SHORT AND LONG-TERM STABILITY OF THE LOCAL ECONOMY. 3. IMPROVE THE QUALITY OF THE ENVIRONMENT WITHIN THE CONSTRAINTS OF ECONOMIC FEASIBILITY. 4. FOSTER COMMERCIAL AND/OR INDUSTRIAL ACTIVITIES TO MEET THE EXPRESSED NEEDS OF THE RESIDENTS. ECONOMICS POLICIES 1. To promote the retention and expansion of existing business activity while promoting the recruitment of new commercial small business activity. 2. Utilize public and private capital improvements funding shall be utilized to stimulate business development in the core area. 3. Create a favorable climate to attract new commercial uses which will benefit the community. 4. Business activity shall be clustered in the core area to create economic efficiency for business, traffic, and public facilities and services. 5. Encourage citizen input prior to the development of an industrial project having community-wide impact. 6. Reduce the community tax burden by fostering diversification and broadening of the tax base. 7. Take actions to reduce costs and time for development permits. Adopt development codes and land use plans that are clear and concise. 8. Support and encourage federal, state, regional and local agencies in economic development planning for the area. 9. Support and encourage businesses that compliment and promote area attractions such as the Oregon Garden, Santiam Canyon, Silver Falls State Park. 10. Encourage the location of businesses within the community that Sublimity Comprehensive Plan Economics Element Page 26 of 43 June 14, 2010 create wages able to support a family. COMMERCIAL LAND USE GOALS 1. ENCOURAGE THE DEVELOPMENT OF COMMERCIAL LAND USES WHICH ARE COMPLEMENTARY AND COMPATIBLE WITH OTHER LAND USES. 2. ESTABLISH THE CORE AREA AS A VITAL COMPONENT OF THE COMMUNITY. COMMERCIAL LAND USE POLICIES 1. Modify zoning ordinances to permit the compatible integration of commercial and residential land uses. 2. Require conformance with the Comprehensive Plan prior to approval of commercial land uses. 3. Assure that commercial activities are compatible with adjacent land uses and consistent with the environmental and economic goals of the community. INDUSTRIAL LAND USE GOAL PROVIDE FOR INDUSTRIAL DEVELOPMENT THAT IS REFLECTIVE OF THE COMMUNITY'S ATTITUDES AND CHARACTER. INDUSTRIAL LAND USE POLICIES 1. Maintain an area appropriate for industrial development which would be retained in agricultural use during the interim period through zoning. 2. Industry should be located only in an area which can effectively be served by the various modes of public and private transportation while minimizing problems of congestion or traffic. 3. Encourage the development of environmentally clean, light industry. Provide for an industrial area that will maximize benefits to industry and the community with provisions for Environmental Impact Review at the project level. 4. Performance and development standards will be established to minimize adverse impacts of industry on adjoining land uses. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Appendix A: Industrial Area Utility Master Plan Sublimity Comprehensive Plan Economics Element Page 26 of 43 June 14, 2010 Background One of the implementation actions identified in the Sublimity Economic Opportunities Analysis (EOA) is the development of a prospective utility master plan that identifies the necessary water, sanitary sewer, stonnwater and transportation facilities needed to serve the vacant industrial lands located in the southwest section of Sublimity. In 2009-2010, the City Engineer completed a review of the existing utilities available in the vacant industrial land area, and prepared a prospective utility master plan for future industrial development. Appendix A includes a summary of existing utilities found in the vacant industrial land area, in addition to a description of public utilities required to serve future industrial development. Appendix A also includes preliminary construction cost estimates for public utilities needed to serve future industrial development. Existing Utilities The industrial zoned area within the City of Sublimity is approximately 45 acres (Tax lot 100 & 200 of tax map 9 1W 03B) and is located with the UGB in south Sublimity. The existing industrial parcels have few existing public utilities. An existing 36" concrete pipe conveys stormwater runoff west across Cascade Hwy (Center Street) and discharges into a drainage ditch that flows across the subject property. The drainage ditch flows from east to west, bisecting the site into two equal basins. The two basins slope to the ditch at slopes ranging from 2 to 5%. Along the drainage ditch there is an 8-inch sanitary sewer main (South Interceptor) that serves a southern portion of town. The existing site does not have streets or domestic water that enter the site. However, water is available in SW Sublimity Blvd to the south, 9th Street located north of the site and Cascade Hwy (Center Street), located east of the site. Franchise utilities are also available in these previously mentioned areas. Required Utilities for Industrial Property Development In order to develop the industrial zoned property, significant infrastructure improvements are required in order to meet the recommendations of the Sublimity Wastewater Collection Plan (2005), Sublimity Transportation System Plan (1998), the Water Master Plan, and the Sublimity Interchange Area Management Plan prepared by CH2MHILL. These master planning documents relevant recommendations must be taken into account in order to develop a conceptual plan. Below is a short description of the master plans recommendations that apply to the subject industrial property. The Sublimity Interchange Area Management Plan analyzed the Cascade Highway (Center Street) and Santiam Highway Interchange. The plan recommends a new access road that extends (Backage Road) north along the eastern most edge of the subject industrial area to the northern most boundary, where the road makes a turn right and tees into Cascade Highway. These improvements are recommended in the report, in conjunction with closing the existing driveways along Cascade Highway. New Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 driveways for these parcels would be provided along the new Backage Road extension. These improvements are recommended to reduce traffic congestion and increase traffic flow at the new interchange. The Sublimity Transportation System Plan (1998) recommends two new roadways to be constructed in conjunction with the development of this industrial property. The first road runs north and south, connecting SW Sublimity Blvd and Dalmatian Ave. The second road illustrated on the plan, tees off of the new SW Sublimity Blvd and Dalmatian Ave connection about a third the property distance to the north and heads due west to the property boundary. The Sublimity Wastewater Collection Plan analyzed the existing 8" gravity trunk sewer (south interceptor) through the subject property. The Sublimity Wastewater Collection Plan recommends that the existing 8" trunk sewer be upsized to a 10" gravity trunk sewer. This recommendation in the plan is a priority 2 improvement for the M l build out of the service area at 2025, but the new trunk sewer needs to be constructed prior to or in conjunction with the development of this property. The Water System Master Plan does not discuss or recommend any specific water infrastructure within the subject industrial property. However, the Water Master System Master Plan recommends that by 2010 the City will need additional water sources. The Water System Master Plan recommends that with the transferring of water rights and increasing the capacity of the existing wells (in conjunction with a new 200 gpm well) the water demand would equal the available flow. Therefore, a water capacity analysis should be completed prior to the development of the industrial area, to ensure that the required domestic and industrial fire flow demands will be available at the time of development. Based on this information described in the traffic and utility master plans described above, a conceptual plan was developed in order to serve this industrial land with utilities and roadways. Please refer to the conceptual plan found in Figure 1. Due to the size of the existing parcels and the lot sizes required for industrial development, the industrial area were sudivided into nine (9) lots ranging in size from 2.26 acres to 9.6 acres. The subdivision would be served by three (3) new main roadways within proposed 60 ft. right-of-way, 10-ft public utility easements, as well as sanitary sewer, water, and storm drainage improvements. Per the Public Works Design Standards, and for cost estimating purposes of this study, the roadway improvement for industrial areas is a 40-ft wide street improvement with 5-ft curb line sidewalks on each side of the street. The proposed street improvements include the Backage Road extension to Cascade Highway as described in the Sublimity Interchange Area Management Plan and the connection of SW Sublimity to Dalmation Ave per the Sublimity Transportation System Plan. In addition, to maximize the developable area, an east-west street is proposed perpendicular to Backage Road west to the SW Sublimity and Dalmatian Ave connection, and terminates on to the west property boundary with a cul-de-sac. This new roadway from the SW Sublimity and Dalmatian Ave connection to the west property boundary follows the existing drainage ditch and sanitary sewer alignment in an effort to maximize developable area. Please Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 refer to the preliminary construction cost estimates for new streets found in Table 1 below. The conceptual plan illustrates a new 10" gravity sewer line as described in the Sublimity Wastewater Collection Plan. The alignment follows the existing 8" gravity mainline, except for one location located at the north east corner of the property, where the 10" gravity sewer line would need to be realigned to stay within the new road right of way in order to minimize easements on the developable industrial parcels. The upsizing of this sanitary sewer mainline would meet the sewer capacity needs of the sanitary system in this location. Please refer to the preliminary construction cost estimates for sanitary sewer improvements found in Table 1. In order to meet the domestic and the probable fire flow demands of this industrial area new public 12" water lines would be required. The proposed new public water main alignment would follow the new roadways and connect to the existing 12" water line in SW Sublimity Blvd., the 8" water line at the intersection of SW 9th Street and Dalmatian Ave, and the 12" water line in Cascade Highway. There is about a 200 ft stretch, from the intersection of the new east-west road and the Backage Road extension that would require a water line easement from a private property owner. For preliminary construction cost estimates for water line improvement, please refer to Table 1 below. Prior to making such an investment into the water infrastructure, the available water- supply should be verified in order to ensure that the domestic and fire water demands of this development. In the future if the UGB is expanded west of the subject property the City should continue to loop its water lines to increase fire flow capacity. Storm drainage improvements illustrated on the conceptual plan include the extension of the 36" concrete storm drain pipe that crosses Cascade Highway west along the new roadway alignment to the cul-de-sac. Storm water is then discharged at the west property line into its existing channel. The storm drain alignment nearly follows the existing ditch alignment, except in the northeast area where the alignment is forced to stay within the new right-of-way. However, depending on a more detailed roadway design with a detailed topographic survey, the a storm drain line shown on the conceptual plan my be required to come out of the right-of-way and flow across Lot 5, similar to the present day ditch location. For preliminary construction cost estimates for storm drainage improvement, please refer to Table 1 below. The storm drain improvements did not account for water quality treatment and/or detention that could be required as part of the wetland mitigation measures if wetlands are found on this site. The conceptual plan or the preliminary cost estimate did not include any costs for right-of way acquisition, wetland consultants, wetlands mitigation or franchise utility costs, stormwater quality, stormwater detention costs. A description of public infrastructure funding resources may be found in Appendix B. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Figure 1: Industrial Area Utility Conceptual Plan Sublimity Comprehensive Plan Economics Element Page 26 of 43 June 14, 2010 Table 1: Sublimity Industrial Area Preliminary Construction Costs Item No. Description Estimated Quantity Unit Unit Price Lump Sum Value ii W Ä & j ' l f A W t e l l ' a. Earthwork 30,000 C.Y. $20.00 $600,000.00 « Ç K T ^ I m ^ m iKdJ^? P f Ä B l i f e a i i S i i i a i S i c. 1"-0 Crushed Rock Aggregate Base (Assumed 12" thick) 13,000 TONS $25.00 $325.000.00 - ¡ M l - : SSifoMet e. 5 ft wide Sidewalks (both sides) 43,000 SF $5.50 $236,500.00 Shi|(oiso]oio)4Ôy SiiifôloyoMoMfiJ b. 10" SD Line (includes backfill, MH's, CB's) 600 L.F. $100.00 $60,000.00 Sanitary Sewer Improvements (10"SS replacement per the Sanitary Sewer Master Plan) î lÂIS l l iMi t eÉMi i l» ' l l l i i i l ; ; ^ r ^ i P ì ; b. 8" Sanitary Sewer Pipe (includes backfill) 800 L.F. $145.00 $116,000.00 B f i i B S M i K M ^ i i i i Z y p e r n : d. Services 10 EACH $4,000.00 $40,000.00 Subtotal Infrastructure Costs frinì MiiriwiiiiMiiü $3,330,400.00 CONSTRUCTION SOFT COSTS si ; iitsl Ol IßSSl kolf> Blpj dïè Äi t (1Ï-10J Ìfsìfiicxeii?'! l(P>iîi>l> • Engineering (20%) Ü1 Contingency (10%) Subtotal Construction Soft Costs $666,080,00 PI $333,040.00 $1,665,200.00 $4,995,600.00 ASSUMPTIONS 1. 2. 3. 4. 5. Dry weather construction. 2009 construction costs (ENR Construction Cost Index = 8660, January 2010). This cost estimate is based on the conceptual street, sanitary sewer & storm drainage layout found in Figure 1. Does not include ROW acquisition, wetlands delineation or mitigation, adverse soil condition mitigation, traffic signal or off ramp costs. Does not include franchise utility improvements. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 6. Assumes the entire project would be constructed at once. Appendix B: Public Infrastructure Funding and Financing Resources Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Funding and Financing Sources Public infrastructure projects are often paid for using a combination of funding and financing. Funding describes methods that generate revenue for public utility projects. Financing refers to how projects are paid for over time. The City of Sublimity can investigate a number of funding and financing sources to construct infrastructure projects. For each of the practical alternatives listed below, there is a brief description and a short discussion. No effort has been made to screen alternatives according to their political or legal feasibility. The intent of the discussion is to provide an overview of a number of alternative revenue sources. Federal Resources Federal Economic Development Administration (EDA) Description: The Federal Economic Development Administration provides annual grant funding on a competitive basis for public works improvements that directly generate or retain jobs in local communities. These funds can be used for local utilities and transportation facilities that serve new development sites. Potential: EDA funds are difficult to obtain but could be considered for targeted improvements for local industry expansion. Funding requests for EDA grants should be coordinated with MWVCOG, Marion County and the OR Business Development Department. USD A Water/Was tewater Loans Description: The purpose of the USDA's Water and Wastewater Loan Fund is to develop water and waste disposal (including solid waste disposal and storm drainage) systems in rural areas and towns with a population not in excess of 10,000. The funds are available to public entities such as municipalities, counties, special-purpose districts, Indian tribes, and corporations not operated for profit. The program also guarantees water and waste disposal loans made by banks and other eligible lenders. Potential: This program could potentially be used to construct upgrades to the City's water system. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 State Funding Options Special Public Worlds Funds (SPWF) and Immediate Opportunity Funds (IOF)—Lottery Program Description: The State of Oregon through the Business Development Department provides grants and loans to local governments to construct, improve, and repair public infrastructure in order to support local economic development and create new jobs. SPWF and IOF funds have been used in a number of cities for the construction of water, sewer, and limited street improvements. Potential: These funds are limited to situations where it can be documented how a project will contribute to economic development and family-wage job creation. Funding applications should be coordinated with Marion County, OR Business Development Department, and ODOT. Business Oregon Water/Wastewater Financing Program Description: This loan program funds the design and construction of public infrastructure needed to ensure compliance with the Safe Drinking Water Act or the Clean Water Act. Public entities such as cities, counties, county service districts, and special districts are eligible to apply for the program. Allowable project include projects that are owned and operated by a public entity. To be eligible for funding: • a system must have received, or is likely to soon receive, a Notice of Non- Compliance by the appropriate regulatory agency or is for a facility plan or study required by a regulatory agency; and • a registered Professional Engineer will be responsible for the design and construction of the project. Loan and grant amounts are determined by a financial analysis of the applicant's ability to afford a loan (debt capacity, repayment sources and other factors). Loans are generally repaid with utility revenues or voter approved bond issues. A limited tax general obligation pledge also may be required. "Credit worthy" borrowers may be funded through the sale of state revenue bonds. Potential: Allowable funded project activities may include: • reasonable costs for construction improvement or expansion of drinking water system, wastewater system or stormwater system; • water source, treatment, storage and distribution; • wastewater collection and capacity; • stormwater system; • purchase of rights of way and easements necessary for construction; • design and construction engineering; or Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 • planning/technical assistance for small communities. Local Funding Options The following programs are used by cities in the funding of public utility and transportation improvements: General Obligation Bonds (G.O. Bonds) Description: Bonds are often sold by a municipal government to fund public infrastructure improvements, and are repaid with property tax revenue generated by that local government. Under Measure 50, voters must approve G.O. Bond sales with at least a 50 percent voter turnout. Existing Application: Cities all over the state use this method to finance the construction of transportation improvements. For smaller jurisdictions, the cost of issuing bonds vs. the amount that they can reasonably issue creates a problem. Underwriting costs can become a high percentage of the total cost for smaller issues. According to a representative of the League of Oregon Cities, the state is considering developing a "Bond Pool" for smaller jurisdictions. By pooling together several small bond issues, they will be able to achieve an economy of scale and lower costs. Potential: Within the limitations outlined above, G.O. bonding can be a viable alternative for funding transportation improvements when focused on specific projects. Serial Levy/Property Taxes within the Limits of Ballot Measure 50 Description: Local property tax revenue (city or county) could be used to fund public infrastructure and transportation improvements through a serial bond levy. Existing Application: Revenue from property taxes ends up in the local government general fund where it is used for a variety of uses. Precedents for the use of property taxes as a source of funding for transportation capital improvements can be found throughout the state. However, with the limitations resulting from Measure 50, use of property taxes for public infrastructure capital improvements will continue to compete with other general government services under the three percent assessed value increase allowed by Measure 50 and the local tax limits of $15 per $1,000 of assessed value established under Measure 5. Under Measure 50, however, there is no limit on assessed value generated by new construction. Potential: Because the potential for increased funding from property tax revenue is limited by Ballot Measures 5 and 50 and by competition from other users who draw funds from the general fund, it is not a practical source for financing major public infrastructure improvements but could finance a package of minor improvement projects. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Systems Development Charges (SDCs) Description: Another option is to exact fees from developers to pay for off-site or oversize improvements. Sometimes fee systems generate money that goes into a common fund to pay for system wide capital facilities. Existing Application: The City of Sublimity enacted SDC ordinances for water, sanitary sewer, transportation, stormwater and parks improvements in 1998. Potential: SDCs can only be used to address growth-related infrastructure needs. SDCs cannot be used to fund any existing infrastructure deficiencies. Local Improvement District (LID) Description: Under a local improvement district (LID), a street or other public utility improvement is built and the adjacent properties that benefit are assessed a fee to pay for the improvement. Existing Application: LID programs have wide application for funding new or reconstructed streets, sidewalks, water/sewer or other public works projects. The LID method is used primarily for local or collector roads, though arterials have been built using LID funds in certain jurisdictions. Potential: LIDs continue to offer a good mechanism for funding projects such as new sidewalks and street surface upgrades. Urban Renewal District Description: An Urban Renewal District is an area that is designated by a community as a "blighted area" to assist in revitalization. Funding for the revitalization is provided by urban renewal taxes, which are generated by the increase in total assessed values in the district from the time it was first established. Existing Application'. Urban Renewal Districts have been formed in over 50 cities in Oregon, generally focused on revitalizing downtowns. Potential: Urban Renewal dollars can be used to fund infrastructure projects such as roadway, sidewalk, or other public utility improvements. Since funding relies on taxes from future increases in property value, the City may seek to create a District where such improvements will likely result in such an increase. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Developer Dedications of Right-of-Way and Local Public Utility Improvements Description: New public utilities required to serve new development areas are provided at the developer's expense to the City in accordance with the tentative and final plan approvals granted by the City Council. Existing Application: Current City ordinance requires local streets and utilities to be provided in accordance with the adopted Comprehensive Plan, Development Code and Public Works Design Standards. This includes dedication of street/utility right-of-way and construction of streets and utilities to City design standards. Potential: Private developer dedications and improvements are an excellent means of funding new local street/utility extensions, and are most effective if guided by a local utility master plan(s). Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Appendix C: Community Economic Development Survey Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Community Survey In March 2009, the City of Sublimity conducted a survey in order to gather additional feedback on the City's vision for future economic development (see community survey form below). The City mailed the survey to each household inside the city limits with the water utility bills. The City received a total of 80 responses. A summary of the key survey results is provided as follows. • 42 percent of survey respondents indicated that it is either important or very important to increase the amount of job opportunities in Sublimity. 33 percent of survey respondents indicated that it is somewhat important to increase the amount of job opportunities in Sublimity. • The most important businesses for the city to encourage in order of importance include: restaurants, retail sendees, professional offices/services, light industrial manufacturing and medical/health services. • 63% of survey respondents indicated that it is either somewhat important, important or very important to maintain a buildablc supply of industrial land. • 76% of survey respondents indicated that the city should limit the size of new commercial buildings. Most survey respondents felt the size of commercial buildings should be limited to 14,000 square feet in size or less. • The top three (3) businesses needed the most in Sublimity include: grocery store, bank/credit union, and fast food restaurant. • Several survey respondents commented that Sublimity should be kept small, and remain primarily a residential community. • Several survey respondents commented that the city needs more family/sit- down restaurants and that they oppose the development of fast food restaurants in Sublimity. • Several survey respondents commented that the city should not compete with Stayton and Salem, or encourage heavy industry in Sublimity. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 Sublimity Economic Opportunities Analysis Community Survey The City of Sublimity is currently in the process of completing an Economic Opportunities Analysis that will serve as the City's overall plan for economic growth and development. Information received from this survey will help guide the direction of the City's future planning efforts. 1. How important is it to increase the amount of job opportunities available within the City of Sublimity? (Circle ONE.) Very Important Somewhat Not No Important Important Important Opinion 2. What types of businesses should the City of Sublimity encourage? (Check all that apply.) • Medical/health services • Warehousing and wholesale trade • Restaurants • Heavy industrial manufacturing • Retail services • Light industrial manufacturing • Professional offices and financial services • Tourism-related services (e.g. hotel) • Entertainment and amusement services • Other (please specify) • Construction-related businesses 3. How important is it for the city to maintain a buildable supply of land for industrial activities? (Circle ONE.) Very Important Somewhat Not No Important Important Important Opinion 4. Should the City of Sublimity limit the size of new commercial buildings? (Circle one.) YES NO, skip to question #5. What size commercial buildings should Sublimity allow? (Check ALL that apply.) • Small (4,000 square feet or less) • Medium-large (30,000 - 49,000 square • Small-medium (5,000 to 14,000 square feet) feet) • Large (50,000 square feet or greater) • Medium (15,000 - 29,000 square feet) • Other (please specify) 5. What are the top 3 businesses that are needed the most in Sublimity? (Pick THREE.) • Furniture and appliance store • Car wash • Grocery store • Movie theater • Pet supply store Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43 • Wine tasting shop • Book store • Outdoor recreation shop • Fast food restaurant • Diy cleaning service • Day care service • Gym/athletic center • Bank/credit union • Beauty salon/barber shop • Fabric/yam/sewing/crafit supply • Other (please specify) 6. Additional comments. Please return completed surveys by March 20, 2009 to the City of Sublimity, 245 NW Johnson Street, P.O. Box 146, Sublimity, OR 97385. Sublimity Comprehensive Plan Economics Element June 14, 2010 Page 43 of 43