State ex rel Elitextrx, LLC v. Siegel

CourtCourt of Appeals of Oregon
DecidedFebruary 22, 2024
DocketA179527
StatusPublished

This text of State ex rel Elitextrx, LLC v. Siegel (State ex rel Elitextrx, LLC v. Siegel) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel Elitextrx, LLC v. Siegel, (Or. Ct. App. 2024).

Opinion

No. 114 February 22, 2024 91

IN THE COURT OF APPEALS OF THE STATE OF OREGON

STATE ex rel ELITEXTRX, LLC, an Oregon limited liability company, Plaintiff-Appellant, v. Scot SIEGEL, Planning Director of Multnomah County, and MULTNOMAH COUNTY, Defendants-Respondents. Multnomah County Circuit Court 22CV15736; A179527

Stephen K. Bushong, Judge. Argued and submitted October 23, 2023. Kevin J. Jacoby argued the cause for appellant. Also on the brief were Brittany Adikes and Green Light Law Group. Katherine Thomas argued the cause for respondents. Also on the brief was Jenny M. Madkour. Before Ortega, Presiding Judge, and Powers, Judge, and Hellman, Judge. POWERS, J. Affirmed. 92 State ex rel Elitextrx, LLC v. Siegel

POWERS, J. This is an appeal from a circuit court’s dismissal of a mandamus action brought by plaintiff Elitextrx, LLC against the planning director for Multnomah County and Multnomah County (collectively, the county). The circuit court dismissed the action, agreeing with the county’s position that, under ORS 475C.053, it was not yet required to issue the Land Use Compatibility Statement (LUCS) that plaintiff requested in connection with obtaining a license to relocate its marijuana production facility. Construing ORS 475C.053(2), we conclude that whether a land use is “outright permitted” or “condi- tional,” as those terms are used in the statute, depends on whether the proposed use requires discretionary local per- mit approval “within the given zoning designation where the land is located.” Here, the county zoning designation requires such discretionary approval and, thus, the county was not required to issue the LUCS before plaintiff obtained that dis- cretionary approval. Accordingly, we affirm. We start with a brief overview of the governing statutes and county ordinances. To obtain a marijuana production license from the Oregon Liquor and Cannabis Commission (OLCC), ORS 475C.065, an applicant must request a LUCS from the city or county that authorizes the land use, ORS 475C.053.1 See also, e.g., OAR 845-025-1090 1 ORS 475C.053 was amended in 2023 after the circuit court’s decision in this case. Or Laws 2023, ch 519, § 10. Because that amendment did not change any operative text in the statute, we cite to the current version. ORS 475C.053 provides, in full: “(1) Prior to receiving a license under ORS 475C.065, 475C.085, 475C.093, 475C.097 or 475C.548, an applicant shall request a land use compatibility statement from the city or county that authorizes the land use. The land use compatibility statement must demonstrate that the requested license is for a land use that is allowable as a permitted or conditional use within the given zoning designation where the land is located. The Oregon Liquor and Cannabis Commission may not issue a license if the land use compatibility statement shows that the proposed land use is prohibited in the applicable zone. “(2) Except as provided in subsection (3) of this section, a city or county that receives a request for a land use compatibility statement under this sec- tion must act on that request within 21 days of: “(a) Receipt of the request, if the land use is allowable as an outright permitted use; or “(b) Final local permit approval, if the land use is allowable as a condi- tional use. Cite as 331 Or App 91 (2024) 93

(2)(a) (providing that OLCC “[m]ust receive a land use com- patibility statement from the city or county that authorizes land use in the city or county in which the applicant’s pro- posed premises is located prior to acting on an application * * *”); OAR 845-025-1180(2)(b) (similarly requiring a LUCS for an application for a change of location “for the new pro- posed location from the city or county that authorizes land use for that location”). The LUCS “must demonstrate that the requested license is for a land use that is allowable as a permitted or conditional use within the given zoning desig- nation where the land is located.” ORS 475C.053(1). OLCC cannot issue a license if the LUCS “shows that the proposed land use is prohibited in the applicable zone.” Id. The city or county is required to act on a request for a LUCS within 21 days of either “[r]eceipt of the request, if the land use is allowable as an outright permitted use,” or “[f]inal local permit approval, if the land use is allowable as a conditional use.” ORS 475C.053(2). It is that timing difference—within 21 days of the receipt of the request or after the final local permit approval—that forms the underlying dispute. In this case, the property at issue is in an exclu- sive farm use (EFU) zone in the jurisdiction of Multnomah County. Chapter 39 of the Multnomah County Code (MCC) is the Zoning Code of Multnomah County. MCC 39.1000. In that chapter, a “permitted use” is defined as “[a] use permit- ted in a base zone without the need for special administra- tive review and approval, upon satisfaction of the standards and requirements of this Chapter.” MCC 39.2000 (defining “Permitted Use”). The MCC further provides that “Farm use, as defined in ORS 215.203” is an “allowed use” in an EFU zone “subject to all applicable supplementary regu- lations contained in MCC Chapter 39.” MCC 39.4220(A). Under state law, marijuana is “[a] crop for the purposes of ‘farm use’ as defined in ORS 215.230” and “[a] crop for

“(3) A city or county that receives a request for a land use compatibility statement under this section is not required to act on that request during the period that the commission discontinues licensing those premises pursuant to ORS 475C.950(4)(b). “(4) A city or county action concerning a land use compatibility state- ment under this section is not a land use decision for purposes of ORS chapter 195, 196, 197, 197A, 215 or 227.” 94 State ex rel Elitextrx, LLC v. Siegel

purposes of a ‘farm’ and ‘farming practice,’ both as defined in ORS 30.930.” ORS 475C.489(1)(a), (b). Under ORS 475C.449(2), a city or county can adopt “reasonable regulations” on the operation of marijuana businesses, including marijuana production.2 Under that authority, the county has adopted regulations as part of its zoning code that apply to marijuana businesses.

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Bluebook (online)
State ex rel Elitextrx, LLC v. Siegel, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-elitextrx-llc-v-siegel-orctapp-2024.