Thunderbird Hotels, LLC v. City of Portland

180 P.3d 87, 218 Or. App. 548, 2008 Ore. App. LEXIS 329
CourtCourt of Appeals of Oregon
DecidedMarch 19, 2008
Docket2006186, 2006187; A136212
StatusPublished
Cited by5 cases

This text of 180 P.3d 87 (Thunderbird Hotels, LLC v. City of Portland) 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
Thunderbird Hotels, LLC v. City of Portland, 180 P.3d 87, 218 Or. App. 548, 2008 Ore. App. LEXIS 329 (Or. Ct. App. 2008).

Opinion

*550 LANDAU, P. J.

The City of Portland adopted an ordinance imposing a six-month moratorium on new development in commercial (CG) and industrial (IG2) zones on Hayden Island. See ORS 197.505 to 197.540 (setting out requirements for adoption by cities, counties, and special districts of moratoria on construction or development). Thunderbird Hotels, LLC, and Jantzen Dynamic Corporation, the owners of, respectively, a hotel and a shopping center on Hayden Island, appealed the ordinance to the Land Use Board of Appeals (LUBA). LUBA rejected several of Thunderbird’s and Jantzen’s assignments of error but sustained one and, on the latter basis, issued an order invalidating the ordinance. The city now petitions for judicial review, arguing that its adoption of an amendment to the moratorium before LUBA issued its decision rendered any controversy moot and that, in any event, the moratorium was not deficient in the manner determined by LUBA. Thunderbird cross-petitions, arguing that LUBA erred in determining that the moratorium was not deficient in other respects. For the reasons discussed below, we dismiss the petition and cross-petition as moot.

We take the relevant facts from LUBA’s order and the record. Hayden Island is situated in the Columbia River and is part of the City of Portland. As noted, Thunderbird owns a hotel and Jantzen owns a shopping center on the island; both properties are located on land zoned CG. The 1-5 freeway provides the only connection between the island and, respectively, Portland to the south and Vancouver, Washington, to the north. There is a single on and off ramp in each direction.

The Portland City Council determined that there existed a shortage of capacity in Hayden Island’s transportation facilities, including freeway ramps, the freeway itself, and surface streets. Accordingly, it proposed to adopt Ordinance No. 180475, declaring a moratorium on development in commercial and industrial areas of the island based on the “shortage of transportation facilities” thereon. The ordinance set out numerous findings relating to transportation issues affecting Hayden Island and also set out six types of land use-related actions that were exempt from the moratorium; in *551 particular, the fourth exemption pertained to applications for specified kinds of permits “for work on an existing building.” Finally, the ordinance set an expiration date of six months from the date of adoption, unless the city council extended the moratorium.

On October 4, 2006, the city held a public hearing, at which Thunderbird submitted comments in opposition to the ordinance and Jantzen submitted comments and evidence. Jantzen also submitted a proposed amendment to the moratorium’s fourth exemption. Jantzen proposed that that exemption, which applied to applications for specified kinds of permits for work on “existing” buildings, so long as use of the building after completion of the work would not cause a net increase in vehicle trips during weekday morning and evening “peak” travel times, also apply to “replacement” buildings.

The city council rejected Jantzen’s proposed amendment and adopted the ordinance as proposed by the city. Thunderbird and Jantzen appealed the ordinance to LUBA, which consolidated the appeals.

Thunderbird argued to LUBA that the city failed to adopt sufficient findings under ORS 197.520(2) and that the findings that it did make were not supported by substantial evidence in the record. It also argued that the city failed to follow its own procedural requirements for legislative enactments. Jantzen made similar arguments. The city responded that the only applicable procedures are those set out in ORS 197.505 to 197.540 — specifically, to provide notice to the Department of Land Conservation and Development (DLCD) before the final public hearing on the moratorium; to make written findings justifying the moratorium; and to hold a public hearing on the moratorium and the findings justifying it, as provided in ORS 197.520(1) — and that it complied with those procedures. The city also argued that its findings made pursuant to ORS 197.520(2) were sufficient.

While the appeal to LUBA was pending, the city extended the moratorium twice. The first extension was in effect from April 4 to July 6, 2007. The second extension was adopted on June 7, 2007, and extended the ordinance from July 6, 2007 to January 1, 2008. The second extension also *552 purported to amend the moratorium by broadening the fourth exemption to apply to “replacement” as well as “existing” buildings, as previously had been requested by Jantzen.

On June 22, 2007, LUBA invalidated the ordinance declaring the original moratorium. In its opinion and order, LUBA first explained the policy and purposes behind the moratorium statutes:

“ORS 197.510 acknowledges that moratoria may have negative effects on property owners, housing, and economic development, and that therefore such decisions must be adopted under clear standards that document the need for the moratorium and ensure that the impacts of the moratorium are minimized. In general, under ORS 197.520(2), a local government must demonstrate the need for the moratorium by showing that without the moratorium, new land development will cause public facility capacity to be exceeded. In adopting a moratorium, a local government must establish how severely capacity will be exceeded, limit the area affected by the moratorium, and fairly allocate any remaining capacity. ORS 197.520(2).”

On the merits, LUBA rejected Thunderbird and Jantzen’s argument that, in adopting the ordinance, the city was required, and failed, to follow procedures set out in the Portland City Code (PCC) and in statutes other than ORS 197.510 to 197.540; LUBA concluded that the city was required to comply only with the latter statutes. As to the city’s findings, LUBA concluded that the city adequately identified the public facilities on which the need for the moratorium was based, namely, the freeway and “internal transportation facilities” on Hayden Island; that it adequately described the estimated capacity of the transportation facilities on the island and identified the facilities that are currently operating beyond capacity; and that it adequately described the transportation needs expected to result from new development on the island. ORS 197.520(2)(a).

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Bluebook (online)
180 P.3d 87, 218 Or. App. 548, 2008 Ore. App. LEXIS 329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thunderbird-hotels-llc-v-city-of-portland-orctapp-2008.