The council approved development agreements and annexation for Barclay Meadows Business Park and the Sisters School District Lundgren Mill property. Sisters' voters authorized annexation in separate votes more than a year ago.

The properties will be zoned Light Industrial.

The agreements limit the kinds of industrial uses allowed on the properties; establish 50 foot setbacks for buildings of 20 feet and of 100 feet for taller buildings; and exact more than $300,000 in traffic mitigation payments (in addition to future systems development charges).

The agreements were crafted to address concerns about compatibility with neighbors and the impact of traffic generated by business/industrial parks.

Neighbors from Trapper Point testified that the proposed developments will block views and lower property values.

"I'm very disappointed and the community is disappointed in your actions so far," Trapper Point resident Denny Ebner told the council. "There's not a lot of empathy for the Trapper Point residents. A 50 foot setback is so minimal it's almost ludicrous; it's a slap in the face, really, to us."

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Ebner asked the council to revisit the development agreement and protect the neighbors.

"Quality of life and the loss of value in our property is big time," he said. "Frankly, we wanted to leave Sisters, but we couldn't sell our house without a big loss."

The change in zoning took many neighbors by surprise.

"I bought the property about five or six years ago and the adjoining property was zoned exclusive farm use," said Duane Lee, who owns a house in Trapper Point, but lives out of the area.

"I never in my wildest dreams thought it would be zoned light industrial," he said.

However, Lee said, a business park "is quite acceptable to me," if mountain views are protected.

"I don't want to see every tree that's out there and I don't mind looking over a building as long as I can retain that view," he said.

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Tia Lewis, the attorney representing both applicants, said the developers will be sensitive to neighbors' concerns when it comes time to subdivide the property and develop site plans.

"We are committed to working with these neighbors. Our track record over the past three years shows that," Lewis said.

The council passed both development agreements and the annexations unanimously after some discussion about whether the city should try to bring the developers and neighbors together to fine tune restrictions on the property.

"I sort of feel like there hasn't been enough communication and meetings with the developers and the neighbors," said councilor Tim Clasen. "I feel like we need to go beyond this development agreement."

Councilor Dave Elliott agreed that he would like to see the parties work out their differences, but he argued that it is not the city's responsibility to facilitate that kind of dialogue.

Dialogue between the developers and neighbors will likely take place in court. ARLU DeCo (Alliance for Responsible Land Use in Deschutes County) has appealed the Deschutes County decision bringing the land into Sisters' Urban Growth Boundary. Neighbors have vowed to resist the developments.