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Agenda Item 4 - UGB Rulemaking
<br />December 3-4, 2015 - LCDC Meeting
<br />Page 14 of 56
<br />Classification System (NAILS). Jobs in these NAICS categories for each city would be provided
<br />in a "look up table" (see Table 6 in division 38, page) which would need to be updated annually.
<br />The proposed "employment need path" requires the city to sort jobs into two categories:
<br />"commercial" and "industrial." As such, there needs to be a definition of the term "commercial"
<br />that helps with this sorting - this definition serves that purpose, indicating the NAICS categories
<br />that would be commercial.
<br />Section (3): "Industrial" and "Industrial use" are proposed to mean "employment activities
<br />including, but not limited to, manufacturing, assembly, fabrication, processing, storage, logistics,
<br />warehousing, importation, distribution and transshipment, and research and development, that
<br />generate income from the production, handling, or distribution of goods or services, including
<br />goods or services in the traded sector, as defined in ORS 285A.010... "Industrial use" includes
<br />NAICS Categories 11, 21, 22, 23, 31, 32, 33, 42, 48, and 49.
<br />There are at least two definitions of "industrial use" that have been employed in land use laws.
<br />One of these is in statute at 197.722, but that definition is clearly limited to a special string of
<br />statutes at ORS 197.722 to 197.728 concerning regionally significant industrial areas. That
<br />definition states that "industrial use" means "employment activities, including, but not limited to,
<br />manufacturing, assembly, fabrication, processing, storage, logistics, warehousing, importation,
<br />distribution and transshipment, and research and development, that generate income from the
<br />production, handling or distribution of goods or services, including goods or services in the
<br />traded sector, as defined in ORS 285A.010."
<br />The definition in the Goal 9 rule at OAR 660-009-0005 is very similar, but not identical, to the
<br />proposed definition. It says "`Industrial Use' means employment activities generating income
<br />from the production, handling or distribution of goods. Industrial uses include, but are not
<br />limited to: manufacturing; assembly; fabrication; processing; storage; logistics; warehousing;
<br />importation; distribution and transshipment; and research and development. Industrial uses may
<br />have unique land, infrastructure, energy, and transportation requirements. Industrial uses may
<br />have external impacts on surrounding uses and may cluster in traditional or new industrial areas
<br />where they are segregated from other non-industrial activities."
<br />In developing a definition for the new simplified UGB process in the initial public draft, the
<br />proposed rules provide direction to local governments in "sorting" jobs into various Categories
<br />described by the North American Industry Classification System (NAILS). In the "employment
<br />path" rules in this division, NAICS categories are divided into "commercial" and "industrial," in
<br />order to classify current and projected jobs in the UGB, and with respect to the city's zoning
<br />districts. For purposes of industrial jobs and districts, applicable NAICS Categories are 11, 21,
<br />22, 23, 31, 32, 33, 42, 48, and 49. The department combined the definition in the Goal 9 rule
<br />with this list of categories to create the definition applicable to the simplified process.
<br />Section (4): Definition of "Initiates." This is an important term because ORS 197A.305 allows
<br />cities that have "initiated" a UGB amendment using the old method to withdraw the amendment
<br />and use the simplified process. The term was previously defined in LCDC's rule at OAR 660-
<br />024-0000(3) but in this division the definition is slightly different in that it does not mention
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