ER-19 <br />1 density. The planning commission found that the PUD meets the purpose -of <br />2 the planned development standards with reduced setbacks. Record 14, 392. <br />3 Accordingly, the planning commission did not err in relying on the clustering <br />4 aspect of the development to conditionally allow proposed noncompliance for <br />5 Buildings -1, 2 and 6. <br />6 In their second assignment of error, Neighbors additionally include an <br />7 argument that "there is no substantial evidence in the record demonstrating that <br />8 construction of Building 2 without setbacks can meet the proposed condition" <br />9 that requires Meadows to provide a report from an arborist that certifies that the <br />10 construction of Building 2 where it is approved will not destroy cedars located <br />11 on the adjacent property to the north of the subject property. Neighbors' <br />12 Petition for Review 20; Record 409. Meadows responds that Neighbors failed <br />13 to raise the issue in its appeal statement and having failed to do so, may not <br />14 raise the issue in an appeal to LUBA. Neighbors responds with citations to <br />15 pages in the record that contain "significant references to cedar trees * * <br />16 206, 207 Neighbors' Reply Brief 3. Record 206-207 are two pages of the <br />17 appeal statement, but the issue that is raised on those pages asserts that reliance <br />18 on the cedar trees to meet the "adequate screening" requirement at EC <br />19 9.8320(3), discussed below, is improper because the trees are not under <br />20 Meadows' control. <br />21 We agree with Meadows that the issue presented in Neighbors' second <br />22 assignment of error that argues that the effect of construction of Building 2 <br />23 with an approved 5-foot setback rather than the required 10-foot setback is not <br />24 preserved under the doctrine of exhaustion waiver. However, even if the issue <br />25 was preserved, the condition of approval imposed by the hearings officer <br />26 requires Meadows to demonstrate that the cedars can survive construction <br />Page 19 <br />000008- <br />