(a) [Policy No. 3] This neighborhood includes some lands designated as forest lands of long-term commercial significance. With the exception of one parcel (State of Washington – Section 36 – River Road), these forest lands are on steeper slopes not conducive to development. Some lands designated as Rural Very Low have the ability to produce commercial timber; due to the steeper slopes, and larger parcels, cluster development on these parcels is encouraged.

(b) [Policy No. 4] The State of Washington land along River Road in Section 36 can be of long-term commercial significance for timber production. Because this land is relatively flat and in close proximity to the City of Sequim, interest in more intense uses of this land have been expressed (e.g., golf courses and residential development). Encroachment of residential uses in this area may result in greater difficulty in managing this parcel in the long run for timber production. This plan, however, envisions continued timber production on this parcel until such time as it can be demonstrated that timber production is not viable in the long-term and growth cannot be directed to other non-resource areas. This parcel can also be considered for potential public recreation uses, as its location adjacent to the Dungeness River and City of Sequim offer good opportunities.

(a) [Policy No. 5] Happy Valley was considered as an option for the Sequim Bypass. Construction of a highway in this area would be entirely incompatible with the rural character of the area and shall not be pursued.

(b) [Policy No. 6] Happy Valley Road should continue to maintain rural characteristics, designed for low speeds and local traffic. Consideration should be given, however, to improving the road through the curves on the east end and connecting Happy Valley and Palo Alto Roads to have only one intersection with Highway 101.

(c) [Policy No. 7] Sequim Avenue South should be extended to meet Happy Valley Road. This will improve circulation between Happy Valley and Sequim.

(a) Policy 8. With the exception of Bell Hill, this area remains rural with a variety of rural densities. Bell Hill (Highland Hills development) is suburban in character with sewer services provided by the City of Sequim and water service by the Public Utility District. The Happy Valley community has expressed a strong interest in protecting the rural quality of the area. Varying residential densities are appropriate for this area, with certain areas designated for Rural Neighborhood Conservation (five-acre base density) subject to optional innovative zoning techniques that are triggered by either specific neighborhood circumstances (overlay technique) or specific parcel criteria (cluster technique).

(b) Policy 9. Flexible zoning techniques may conserve rural characteristics under the following circumstances:

(c) Policy 10. Some of the more vocal opposition to home-based businesses and industry came during neighborhood meetings for this area. Landowners prefer not to see home-based industries which cause traffic, are unsightly and would otherwise detract from a rural residential character. Examples of incompatible development are car repair and tourist shops.

(d) Policy 11. Land use designations need to consider logical physical or community boundaries. Past designations were not consistent throughout the Valley area, with densities ranging from one home per acre to one home per 20 acres.