1

A Look at Economic and Governmental Policiesthat Feed Sprawl

Citizens For a Better FlatheadKalispell, MontanaSummer 2000

Striking the Roots of Sprawl

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INTRODUCTION PAGE 3

1. BUSTING THE MYTHS OF SPRAWL PAGE 5

2. OUR COLLECTIVE PORTFOLIO PAGE 11

3. TAX INCREMENT FUNDING, BLESSING OR CURSE PAGE 16

4. HIDDEN COSTS OF POOR TRANSPORT PLANNING PAGE 20

5. THE BLOB THAT ATE THE FARM PAGE 26

6. PLANNING: KEEPING THE FOUNDATION SOLID PAGE 36

SUMMARY PAGE 39

THANKS PAGE 40

SOURCES FOR MORE INFORMATION PAGE 41

TABLE OF CONTENTS

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Q. & A.

Who said it?

“Unchecked sprawl has

shifted from an engine

of growth to a force that

threatens to inhibit

growth and degrade our

quality of life.”

A) Bank of America

B) Sierra Club

C) Greater Yellowstone

Coalition

D) Dr. Tom Powers

Henry David Thoreau noted that for a thousandpeople attacking the branches of a problem, onlyone strikes the problem’s root.

A hundred-fifty years later, and we still face thesame problem with regard to urban sprawl andrunaway development.

We see the branches all around us: theskyrocketing property taxes; the ticky-tack stripmalls; the annoying and dangerous trafficcongestion; the wholesale destruction of our mostfertile farmlands; the erasure of wildlife habitat,clean water and open space that makes Montanadear to all of us.

These are the branches that slap our face andpoke our eyes. Too often, they distract us from theroot of the problem.

The purpose of this report is to return our focus tothe cause of the landscape disease that is sprawl.Bemoaning our losses is not enough. We must lookat the economic realities and government policiesthat drive sprawl. If we focus there, we can make adifference.

Here in the Flathead County, Citizens For A BetterFlathead has been fighting for well-planned growthfor nearly a decade. We have learned someimportant lessons about growth along the way.We’ve learned to ask “How much will it cost?” and“Who will have to pay?” These questions cut to theroot of economic and government policies that feedsprawl. The lessons we’ve learned can applythroughout Montana, and beyond.

In this report, we aim to share some of ourlessons. We look at the false myths that stand in theway of community planning. In particular, we look atthe upward spiral of property taxes and how thebacklash against those taxes has led to more of thepolicies that feed higher taxes.

We look at the plight of farmers, and how a

Striking the Roots of SprawlGuarding Your Home GroundIntroduction

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Answer:

A) Bank of America

combination of market forces and governmentpolicies continue to squeeze them off the land.Furthermore, we examine what sprawl means forthe rest of us, and what can be done about it. Weraise questions that we found valuable — andpropose places where you can find local answers.

America seems to have a fatal fascination withgrowth. In our lifetime, we have all seen preciousplaces lost or changed forever. Yet it’s important torealize that while change is inevitable, sprawl is not.Sprawl is a function of human institutions, andhuman institutions can change it. The momentum isturning against sprawl. Surveys show that sprawl isjoining crime and education, as high priorities forvoters around the West. We can defeat sprawl, butonly by working together.

Remember: United We Plan, Subdivided WeSprawl. (c)

• Sprawl is very expensive for local government — andthus local taxpayers.

• Sprawl drains value away from downtowns and othercommercial cores.

• Sprawl breaks down neighborhoods, democraticinstitutions, catering to machines instead of people.

• Sprawl consumes rural landscapes — and the life-styles and wildlife habitat they represent.

What is Sprawl?

Why be concerned?

• Sprawl is haphazard, low-density development,that offers few choices.

• Sprawl occurs beyond the edge of services andemployment.

• Sprawl separates people from where they shop,work, play and learn.

• Sprawl requires driving, without providing othertransportation options.

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Ain’t Necessarily So:Busting the Myths of Growth

Myths hold great influence in our minds.Yet too often, myths fail to hold upwhen scrutinized. To battle sprawl, wemust first break down the myths thatprop it up. (Adapted from Eben Fodor’s,Better, Not Bigger.)

Fact: Sprawl costs us all.

Myth 1: Growth providesneeded tax revenue

When it comes to the myths of growth, this is thebiggie. That is, that we can “grow our way” to lowertaxes.

In Flathead County, taxes have far out pacedgrowth. Between 1992 and ‘97, our population grew22.6 percent. Yet homeowners’ property taxesskyrocketed 65 percent.

Cost of Services

StudiesA common myth is that

growth always pays for

itself , by providing new taxes.

But some communities are

beginning to bust that myth, by

looking at the facts. Time after

time, cost of services studies

have demonstrated how we

subsidize some growth. Let’s

look at a couple of studies from

Montana.

A 1996 study in Gallatin

County showed that for every

dollar a subdivision provides in

taxes, the newcomers demand

$1.47 in services. That’s a net

cost for the other county

taxpayers.

Meanwhile, Gallatin County

crop land demands only 25

cents in services, for every $1 in

taxes paid to county coffers.

That’s a net benefit for

taxpayers. In other words, ag

land and timber land are a tax

generator.The numbers are nearly as

dramatic in Flathead County.Here, a new subdivision

demands $1.23 in services forevery dollar kicked into countycoffers. Timber and farm landdemand only 34 cents for everydollar contributed. (Also note,the study examined numbersfrom 1997, a peculiar budgetyear in Flathead County; in atypical year, the cost ratio wouldlook very much like that in

Gallatin County.)

So why didn’t we grow our way to taxationNirvana? Here’s why: Residential sprawl causeshigher taxes; it doesn’t correct them.

When it comes to property taxes, residentialdevelopment simply doesn’t pay its own way. Sprawlis a drain on government coffers. Think of it thisway: A wheat field is a great deal for taxpayers.Sprawl is a raw deal.

The standard line from proponents of sprawl isthat development adds to the tax base and thusbenefits taxpayers. When homes go up on a wheatfield, the assessed value goes up. Thus, the countycollects more taxes.

The trouble is, that theory only looks at half of thepicture. The other, utterly crucial half of the equationis the demand for services.--continued on page 6

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It’s a grow-or-die world, say the proponents ofunregulated growth. Growth proponents say moregrowth means more jobs, higher wages andreduced unemployment.

Economic booms and growth spurts may providetemporary relief from unemployment, but dependingon growth is no long-term solution.

Flathead County is a classic example of a fast-growing location with chronic unemployment.Recent county unemployment rates have hoveredaround 8 percent— nearly 40 percent higher thanelsewhere in the state and 100 percent higher thanthe national average. Yet, there’s no doubt we’regrowing. In general, fast-growing areas tend to have

Myth No. 2: Growth meanshigher wages and more jobs.

Fact: Short-term benefits ofgrowth are often canceled out.

If county officials elect notto raise taxes they haveanother option: Cut services.That means not repairingroads, not fixing bridges, notupdating parks and schoolsand letting public buildingsbecome increasingly rundown. One could argue thatFlathead County has seenthe worst of both of these:Higher taxes and decreasedservices.

Supporters of unfetteredgrowth say it will help keeptaxes down. In fact, sprawlfeeds the upward tax spiral.This is a major reason whytax increases continue tooutpace population growthin Flathead County.

The big lesson of cost-of-services studies is this: Somegrowth patterns are morecost-effective than others.Cluster development onmarginal farmland makesmore sense than sprawlingacross prime farm land.Filling in gaps betweendeveloped areas makes useof existing infrastructure.Redeveloping existingcommercial centers makesmore sense thancommercializing more land.

A wheat field doesn’t care how often the roadis plowed. It doesn’t mind potholes, washboardsor dust. The ambulance crew, school bus andthe sheriff’s deputies rarely visit. Fire control is asmall problem, as are weeds.

That changes with sprawl. When a wheat fieldbecomes a subdivision, people move in. Peopledemand services from the county. Suddenly,phones at the courthouse ring with peoplewanting the snow plowed, the stray dogsrounded up, the sheriff to arrive.

True, the new property owners pay taxes.However, the new taxes don’t cover the costs ofservices these newcomers demand. In effect,existing taxpayers subsidize the newdevelopment.

Clearly, sprawl isexpensive. Strategies to growour way to lower taxes arenot only misguided, they’recounterproductive.

--continued from page 5

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high unemployment.It may seem paradoxical, but there is more to

reducing unemployment than simply creating jobs.In America, people are free to travel to work. If acommunity creates jobs, those jobs will probablyattract people. The result is more people and, thus,more unemployment.

In the Flathead, this phenomenon is exacerbatedby the fact that the Flathead Valley is an attractiveplace to live. People will suffer through pooremployment and so-called “scenery wages” for theprivilege of living here.

Under the grow-grow mentality, Flathead Countyis destined to grow until the quality of life heredrops to the same level as every place else. Wehave been in a race to the bottom. What we needis a race to the top. The top is defined by quality oflife.

Myth No. 3: Regulating growthmeans higher home prices.

Sprawl supporters suggest growth follows somenatural laws that humans cannot change. Ifregulations squeeze the so-called free market, theywarn, there will be “perverse” negativerepercussions. In particular, they argue the overallprice of houses will go up.

It’s an interesting hypothesis, but the facts don’tback it up. It’s time for a reality check.

Builders and developers tend to go where the profitmargins are the widest. That means high-end homes.Consider the Iron Horse subdivision on the foot ofThe Big Mountain ski resort. Developers haveprovided sites for many huge, expensive homes, butnothing for the working-class laborers who will build

Fact: Market pressures canleave people out in the cold.

“Affordable housing” is

generally defined as housing

for which total costs (includ-

ing rent or mortgage pay-

ments, utilities, property taxes

and insurance) do not exceed

30 percent of the household’s

income.

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and take care of them. The development did nothingto ease the housing crunch in Whitefish, and in factwill probably only exacerbate it.

Smart communities encourage construction thatprovides a mix of housing. For example, developerscan be required to build affordable and moderatelyexpensive housing, along with high-end homes. Thistactic, called “inclusionary zoning,” has provensuccessful and usually doesn’t require direct publicsubsidy.

Home prices depend on many factors, but growthregulations don’t appear to be a major one. ACalifornia study looked at 14 cities, half with growthcontrols and half without. After seven years,researchers found no evidence that growthrestrictions automatically jacked up home prices.

“Home prices need not be systematically higher orincrease faster in growth control cities than in pro-growth cities,” the researchers concluded. (John D.Landis, 1992.)

This is a particularly powerful myth, one whichgrowth proponents use to sound like they aresticking up for the little guy. But too often, they’reonly sticking up for their own bottom line.

Myth No. 4: Growth equatesto prosperity for all.Fact: Sprawl benefits a few,but costs many.

Truth is, sprawl does benefit some people. That’swhy it occurs. Someone, somewhere, stands togain.

But that’s far different from saying sprawl is goodfor everyone, across the board. Indeed, whensprawl takes over a community, a few folks benefitgreatly, while others shoulder the costs.

The mythological argument is classic, trickle-down economics. That is, the spending from growth

Only 50 percent of Flat-

head County residents

have income that would

qualify them for a loan to

buy a medium-priced

house in Flathead County

today.

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— the profit made by property sellers, Realtors andbuilders — will be spread around throughout thecommunity, making everyone better off.

Don’t buy it. As we have seen, developmentcarries costs — a burden carried by other taxpayers.While a small segment of the community becomes“better off” thanks to the development, others areincrementally “worse off” for having to pick up thecosts of public services.

Booming communities often have an increase inhigh-end homes, but a dearth of affordable housingfor working folks. Those workers end up payingthrough the nose for rents, are locked out of owningtheir own home, or must commute ridiculousdistances to find affordable shelter. Again, the costsof growth are not shared fairly.

In fact, planning should be a tool to provideaffordable housing. Inclusionary zoning, (whichrequires a portion of a development be affordable)cluster development, and infill requirements can allmake housing more affordable, not less.

A truly prosperous community provides jobs atwages that will pay for shelter, utilities, food and a bitleft over for savings. Well-planned communities setclear parameters to the pattern and quality ofgrowth. That way, communities can enjoy thebenefits of growth, while reducing the associatedcosts. That’s the essence of smart growth. In theend, it’s a balancing act. That balance is themeasure of true economic prosperity.

As Ecology of Commerce author Paul Hawkensays: Free enterprise is a fascinating idea. Weought to try it sometime.

Myth 5: Sprawl is freeenterprise at work.

Fact: We subsidize sprawl,through our taxes.

Who stands to gain?

Here’s how some of the

various industries grew in the

Flathead, during the growth

boom from 1987-1995.

Percent Change in Income:

Retail trade: 85 %.

Real estate, finance

insurance: 236 %

General contractors: 91%

Heavy construction: 114%

Per worker earnings:

Retail trade: - 4%

Real estate, finance

insurance: 66%

Service: 1%

Construction: -1%

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Sprawl is held up by a web of governmentsubsidy. Some subtle, some not so subtle.

According to one study, every newresident that moves to Montana brings a taxburden of $15,000. That is, that individualdemands $15,000 more in services than heprovides in taxes. (Source, CarryingCapacity Network, 1998.)

The study considered schools, roads,sewers and storm drains, parks, libraries,power generation and fire protection.However, the study didn’t examine garbage,police or the general costs of localgovernments. So the actual tax burden iseven higher than estimated.

Commercial sprawl can also besubsidized. For example, in 1997, theMontana Legislature froze property taxes at1992 levels. That has led to artificially lowproperty taxes on the outskirts of downtownareas like Evergreen.

It encourages strip development byinsulating these areas from tax increases thatgrowing areas would have otherwise faced.

All growth demands services. When localgovernment –that is, existing taxpayers–swallow the costs of those services, growth isbeing subsidized. When we depend onfederal highway funds to try to build our wayout of traffic woes, we subsidize sprawl.When we expect the Forest Service to fightwildfires in forested neighborhoods, wesubsidize sprawl. When we pile the taxburden on farmers and lift the tax burden forluxury and second homes, we subsidizesprawl.

One way to counter this phenomenon is byimposing fees on new development. Suchfees would put the cost of local governmentservices back on those who seek theservices — the people who are building newhomes and developing commercialproperties.

Ever wonder whystrip development seemsto flourish, while down-town storefronts remainempty? One clue may betaxes and legislativemeddling.

Another clue may bethe tax appraisal system.Taxes are levied to helppay for costs of govern-ment services. The fartherout businesses locate themore it costs to providepolice, fire, water andsewer. Yet the tax ap-praisal system is based onmarket value of compa-rable properties. The far-ther out a business locatesthe cheaper the land val-ues are for comparableproperties. A stuff mart ina former wheat field paysa fraction (as much as sev-eral million less) of whatthe same store would payin the downtown core. Inthe Flathead in 1999, thatmeant property in down-town Kalispell was as-sessed for tax purposes, anaverage of $7.25 persquare foot. Meanwhile,Walmart on the strip wasvalued at $2.75 per squarefoot. Costco, three milesout of town, was valued at25 cents a square foot.* When sprawl hap-pens, follow the moneyto the root cause.

*square foot figures from the Montana

Department of Revenue

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Our Collective Portfolio

Tax Base Management

Perhaps you are fortunate enough to have aninvestment portfolio: Stocks. Bonds. Mutual funds.A collections of assets that, if managed wisely, willyield a future dividend.

But all of us are collective owners of anotherportfolio: The tax base. The tax base is the valueall the private properties in the county or city, fromwhich local property taxes are derived. Thisincludes businesses, farms and homes. InFlathead County, that portfolio is worth $3.67billion.

As with any investment, it’s a wise idea to keeptabs on the tax base portfolio. And, sometimes,the books don’t look so good. Take FlatheadCounty, for example. In spite of booming growth,the total value of our Flathead County portfoliohas gone down three years running (1997-99,Montana Department of Revenue.)

Understanding tax base management is key tounderstanding the cycle of unmanaged growth,and ever-climbing taxes.

Follow the Money

While local governments need money, there arelimits on how they can raise it.

In Montana, cities and counties may not chargean income tax, like the federal government does.They may not charge a sales tax (with a fewexceptions in resort towns like Whitefish.)

Local governments collect some money fromcasinos and from state and federal grants. Andthey charge fees for some services.

However, most of the operating budget for citiesand counties comes from property taxes. In all,roughly 60 percent of Flathead County budgets

2Power to the

People! That’s

us!

Today more than ever,

knowledge is power.

Remember, economic

figures in this report are

public information.

However, they are often

buried in the file cabinets

at city hall and the

courthouse. Knowing

how to dig up these

numbers gives citizens

real power to demand

greater accountability.

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come from property taxes. Numbers are similar incity budgets. In other words, local governmentdepends utterly on its tax base.

So managing that tax base is basic to goodgovernment. But when our public servants andelected officials are blinded by “growth fever,” weall suffer for it.

When local governments grow, the demand forservices increases. Newcomers tend to expectservices like the ones they left back home — nicerlibraries, smoother roads, and quicker emergencyresponse. After maxing out gambling and grantrevenues, officials pay for new services by raisingproperty taxes. They have little choice but to dipfrom that well, over and over. Taxpayers growweary of that.

So elected officials try to increase their budgetswithout raising taxes. To do this, they try to growthe tax base. They try “economic development”projects aimed at creating jobs, affordable housingand shopping centers. This may not be a badidea. But too often, “economic development”leads to the upward tax cycle of “growth-for-growth’s sake.”

As we’ve seen in the Flathead, an expandingeconomy doesn’t necessarily mean the portfolio isincreasing in value. And when the total value ofthe portfolio decreases, then individual taxpayersfeel the pinch. They feel it either throughdiminished services or higher taxes.

Here’s the way to break the cycle: Instead offeeding more growth, invest public funds inmaintaining and improving the value of existingproperty.

Not all growth is created equal

Businesses are a major component of the taxbase portfolio. But not all businesses contributeequally to that portfolio.

According to the National Trust for HistoricPlaces (NTHP), a typical, locally-owned business

Beyond City Limits...

Officials often assume

that new development

means a bigger tax-base

portfolio. But this isn’t

necessarily so. Flathead

County saw a building

boom from 1997-99, with

several hundred new

construction projects each

year. But the value of the

county’s tax base

portfolio shrank during

that time.

Poorly planned growth

wasn’t good for our

portfolio; the total value

decreased instead of

increased.

Clearly, it’s not enough

simply to “grow” the tax

base, if that growth

doesn’t improve the total

value of that tax base.

More isn’t better. Better is

better.

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returns about 60 percent of its profit to thecommunity where it is rooted. That makes sense,since local owners buy homes locally, pay localsfor upkeep and repair, work with local banks,businesses, newspapers and more.

But a typical chain store returns only about 20percent of its profits to the community where thestore stands. More profit goes to distantshareholders, the franchise headquarters, out-of-state companies that design and print outadvertising.

The local slice of the pie gets even slimmer for“big-box” stores, according to NTHP. Discountsuper stores tend to reinvest only 5-8 percent oftheir profits into the communities where the storesare. In other words, the big box stores send 95percent of their profits away.

That means plenty for our local tax baseportfolio. In short, it means that small businessescan make a big difference for the local tax base.And big, flashy super stores may pull preciousdollars out of our communities. This is particularlycrucial, when we consider that local governmentsare often asked to subsidize big, super stores byextending city services to them. If this is done atthe expense of locally owned business, it resultsin a net drain on the tax base portfolio.

What’s happening?

No doubt, Flathead County taxpayers have feltthe pinch from higher property taxes. Between1987-96 in Flathead County, taxes on residentialproperty climbed 65 percent. That far outpacedinflation and more than doubled the rate ofpopulation growth.

Lots of factors make up a tax bill. But a big partof that is what has become of our property values.That is, our tax base portfolio.

Take Kalispell, for example. Land valuescontinued to climb in Kalispell. But the value ofthe improvements on that land declined.

When a community fails

to invest in adequate plan-

ning, taxes rise.

Between 1987-1996,

taxes on residential property

climbed 65 percent in

Flathead County. That tax

increase far outpaced

inflation, and more than

doubled the rate of popula-

tion increase.

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From 1997-99 the average value of a city lotincreased 4.6 percent. But the value ofimprovements on those lots went down 4.6 percent.(Source: Kalispell city Budget, Montana Departmentof Revenue) The reasons for this need more study,but legislative meddling is probably one factor.

In 1997 and ‘98, Kalispell saw some 295residential construction projects. These are the newhomes on empty lots, the new decks, new garagesor other construction that requires a building permit.On average, those projects increased the value ofeach property by $10,000. In spite of all thatconstruction, the value of the city’s residentialimprovements dropped 4.6 percent. That’s dramatic.

The story is similar for Kalispell’s commercialproperties. From 1997-98 the average value ofcommercial lots increased 5.3 percent. Yet the valueof improvements countywide declined 1.6 percent.

Another contributing factor may be that city land isvaluable, but the services are stressed.

Some call it the “strawberry jam effect.” That is,when services are spread over a broader area, theservices get thinner. If services get too thin, propertyvalues decline. Neighborhoods with poor policeprotection, crumbling streets, and otherinfrastructure problems represent a poor investmentopportunity.

Another factor can be ineffective zoning.Hodgepodge zoning pits incompatible uses againsteach other and is yet another way to drive downproperty values. Imagine someone putting asandblasting shop or wrecking yard in a residentialneighborhood. While that’s an extreme example, itsthe kind of conflict that can result from the lack ofzoning.

City budgets are always tight. Say the city decidesto pay to extend sewer and other city services to anew business park a mile beyond city limits. Thatmeans the city has that much less money to spendmaintaining streets, sidewalks and other publicfeatures in existing business districts, likedowntown. Meanwhile, business is drawn away

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from downtown to the new development. The endresult? Downtown property values — and our totaltax base portfolio — goes down. Taxes go up. Thenew growth didn’t help the tax problem, itexacerbated it. That’s poor tax base management.

When one business degrades the value ofsurrounding lands, it drives down property valuesand thus the value of our collective portfolio.Sprawling commercial development can likewisedrain value from that portfolio. Critics of planningand zoning are quick to wave the flag of propertyrights. In fact, proper zoning protects propertyrights of existing property owners and protectscitizens from unnecessary tax hikes.

Look at it from a business owner’s perspective.Say you own a downtown building. You could investmillions into that building, drawing in business andboosting the downtown tax base. But if the city isonly going to subsidize commercial sprawl on thecity fringes — and thus draw business away fromdowntown — what incentive is there to invest in yourdowntown building? Not much. So downtowncrumbles.

When local officials are dazzled by the bright lightsof “ economic expansion” they risk neglecting theneeds of existing properties. Dollars spent on newdevelopment means less money for maintaining thevalue of proven, existing properties.

There are ways to add value to the tax baseportfolio, besides subsidizing new commercialdevelopment. Consider this: If the cities of FlatheadCounty were to revitalize their existing tax base,sprucing up the downtown area for example, a 5percent increase in the tax base would pay off with$12 million in new taxable value. That’s like building3.2 typical new Costco stores or 8.2 new typicalStaples stores.

To sum up, it’s often more wise to invest in existinginfrastructure to enhance the value ofneighborhoods and downtowns, than to perpetuallytry to expand new development, at the expense ofexisting homes and businesses. Our elected officialsneed to understand this.

What is the net value

of your county’s tax

base? Your city?

How has that value

changed in recent years?

How does that growth

or decline match other

growth in your county?

Is a tax assessor

involved in your local

economic development

process? Could he or she

help make sure clashing

land uses don’t drive

down the value of your

tax base?

Does your community

insist on design

standards for new

development to

maximize tax benefits

from new development?

Does your planning

and zoning effectively

buffer non-compatible

uses?

Questions for your

Home Ground

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Tax Increment FinancingBlessing, curse or both?

Government folks are drawn to those annoyingacronyms. But one acronym we cannot avoid is TIF— Tax Increment Funding.

TIF is money. Tax money — yours and mine. Withvision, TIF can revitalize downtowns and improveneighborhoods. Abused, TIF can help blanket acounty with strip malls, big-box stores and othereyesores.

TIF has a mixed history in the Flathead Valley. A1998 squabble over TIF spending cost one Kalispellcity manager his job. When officials consideredrelocating the Flathead County Fairgrounds, theyproposed abusing TIF to do so. Yet, TIF has paid formany popular improvements and TIF plans now onthe books could make downtown Kalispell moreenjoyable and more open to pedestrians.

Clearly, TIF is one acronym that deserves to bewell understood.

What is TIF?TIF is a tax authority, given to local governments

by the Montana Legislature. TIF is a tool that allowscity or county governments to conduct urbanrenewal projects they could not otherwise afford.The original goal behind TIF was to remove blight,thus spurring new investment and improving localtax bases.

When blight is replaced with vibrant, attractiveneighborhoods or commercial zones, tax revenuesgo up and those neighborhoods contribute more tolocal government. Removing blight is usually asound government investment.

The mechanics of TIFImagine a rundown business district that produces

$1 million a year in property taxes. Those taxes aredivided among the city, county and school district.But the area falls short of its true potential.

Now, imagine the city steps in and spends $10

3

17

Rules for TIF:

million to rebuild sewers, bury the power lines,repave the streets and add new sidewalks. As aresult, new businesses move in and the district nowproduces $2 million a year in property taxes, insteadof $1 million.

The added $1 million is called the “increment.”Under Tax Increment Funding, the city keeps all ofthe increment for the life of the district, generally 10-20 years. Once the city recoups its investment, theother local taxing jurisdictions - the county and theschool district - share the new revenues.

This adds up significant sums of money. Kalispellhas collected millions of dollars in property taxmoney from its TIF districts. The money, forexample, has been spent on improvementsdowntown.

Kalispell’s TIF Districts Kalispell includes three TIF districts: Downtown,

the Airport and the West Side. As spelled out byMontana law, the city wrote a specific plan for eachdistrict for how the money is to be spent.

Much of the money has been properly spent. Butour elected officials have exhibited a worrisomehabit of wanting to use TIF as a slush fund for petdevelopment projects. The risk comes when moneyis diverted to different goals, beyond the TIF plansand the TIF districts.

TIF Abused Here’s one example: in 1998, a developer wanted

to build the Valley Dome north of Kalispell, andwanted the city to extend sewer lines and otherservices to him. The mayor proposed using moneyfrom the Downtown TIF District to extend theservices.

The problem was, the dome site was no wherenear Downtown TIF district. The Downtown TIF plansaid the increment money should go to parking, bikeand foot traffic and other improvements downtown.The plan didn’t say anything about extendingservices miles north of downtown. The mayor’s plan

TIF money comes with

strings attached.

First, the city must define

the TIF district. The money

must be spent within the

district where the city made

its initial investment, and

where subsequent taxes were

paid.

Secondly, the city must

write and follow a specific

plan about how to replace

the blight with something

more attractive and lucrative.

These plans must be made

with public input.

Thirdly, there are time

limits. After a given period

— perhaps 10 or 20 years —

the TIF expires.

The result is supposed to

be a win-win situation:

Blight gets removed. The

economy gets a boost. The

tax base increases. Indeed,

TIF can be a good deal.

However, TIF can also be

abused.

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would have pulled business away from the businesscore — the direct opposite of the intent of the TIFplan.

At very least, shunting the money from theDowntown TIF District to the dome site would havebeen shortsighted. It may well have proven illegal.The idea was stopped, but the city manager wasfired over this dispute after refusing to approve thefunding.

Likewise, the Kalispell city council consideredusing West Side TIF District money in a complexdeal to relocate the Flathead County fairgrounds.The problem? The fairgrounds are not in the WestSide TIF District. Once again, such spending wouldhave been highly questionable.

There are other, less dramatic examples whereTIF money was spent in questionable ways. Thoseinclude spending money on paving highways, orextending services, to the edge of the TIF district.

Often, TIF district plans are solid, progressivecommunity plans. However, when new politicianstake office, they have a hard time resisting thetemptation to dip into the TIF money for their ownunrelated, pet projects. There is one cure for thisproblem: Vigilance.

How TIF can work

In spite of such problems, the TIF baby shouldn’tbe thrown out with the political bath water. If properlyused, TIF has great potential to improve ourcommunities.

In Kalispell, TIF money helped the city remodel amothballed historic school into a museum andcommunity center. The City Council was able todouble spending on downtown sidewalks, thanks toTIF. TIF helped lure a new employer to an emptyshopping mall in the West Side TIF District, andhelped relocate baseball fields in the Airport TIFDistrict. The West Side TIF also helped reconstructthe busy Meridian Road, with associated drainageand bike paths.

Here are some ways to

watchdog TIF spending at city

and county governments:

• Check the plan. Does the

spending proposed by the local

government match the intent of

the TIF plan? TIF money isn’t

meant to replace capital

improvement spending by the

city or be some kind of slush

fund for pet projects. It’s there to

erase blight.

Testing TIF

• TIF plans are not etched in

stone. They may be changed

by elected boards. But to do so,

the city must go through a

process, including seeking

public input through public

hearings. If a city’s proposed

TIF spending doesn’t match the

original plan, make sure the

plan has been amended

appropriately.

• Look at the Map. Is the

proposed spending within the

borders of the TIF District? If

not, what gives?

• What will the spending

accomplish? Is the spending

attacking the symptoms of

blight, or the basic cause of

blight? Who receives the

benefits, and who paid the

costs? Insist that TIF money is

spent wisely.

19

The true test of any urban renewal plan is this:Does the plan stimulate private investment, thusresulting in jobs, improved tax base and a morehumane environment? Investors are motivatedby profit, a reasonably secure investment, andthe opportunity for that investment to grow.Urban renewal plans must not just treat thesymptoms of blight — such as inadequate publicimprovements and a stagnant tax base. Theymust attack the cause: A lack of profit incentive.Correct that, and TIF money will be aninvestment well spent.

We are Not AloneAn example from Wisconsin

Flathead County has four TIF districts, three inKalispell and one in Whitefish. Statewide, there are20 TIF Districts in nine Montana counties. Somelarger cities, such as Kalispell and Missoula, havemore than one TIF District.

TIF abuse is not isolated in Kalispell — or evenMontana. For example, a Wisconsin study reviewed667 TIF districts, and determined nearly half wereused to pave open space with new roads, sewers,lighting and other public infrastructure that made thedevelopment possible. In other words, TIF cansubsidize sprawl. That report estimated that TIFsaided the destruction of some 30,000 acres ofWisconsin open space. (Source: A ThousandFriends of Wisconsin, 1999.)

20

4Plan for people, not machines

A good, working definition of “sprawl” isdevelopment where the only way to get anywhere isby car. Between 1970 and 1992, Montana’spopulation grew 41 percent. Meanwhile, we drove 71percent more. We are driving more often and drivingfarther. (Source: Alternative Energy ResourcesOrganization, AERO, Helena)

This is indicative of sprawl. As we scatter acrossthe landscape, we must drive farther to schools,work and shopping. As a result, our roads are morecrowded, battered and dangerous. The air getssmoggier.

And our budgets get tighter. Building andmaintaining roads in the Flathead Valley isexpensive. Crews must contend with shortconstruction seasons, frequent stream crossings andpoor weather. But a lack of planning only compoundsthese problems.

Another problems with sprawl is that it ignores alarge portion of society. We often forget that 200,000Montanans don’t drive. That’s about one in fourMontanans. These include children, the elderly,people with health problems that prevent driving,people who are too poor to drive and a host of otherswho simply choose not to get behind the wheel.

These people pay the greatest price forautomobile- dominated sprawl. They are increasinglyisolated from people and from goods and servicesthey deserve.

People pay for sprawl in other ways. For example,when a city sprawls, it takes longer for police andambulances to respond to emergencies. It takes two-to five-times longer to respond to a rural emergencythan an urban one. Sometimes, those few minutes

Ouch! Sprawl socks it toyour wallet.Hidden costs of poor transportationplanning

Imagine splitting

an apartment with a

roommate who pays

only a quarter of the

rent, only a quarter of

the utilities and rarely

pays for the groceries he

eats.

None of us would put

up with that. Yet we

tolerate a governmental

system that does the

same thing: It subsidizes

automobile traffic,

pushing the true costs of

cars onto other citizens.

Without proper

transportation planning,

we all pay dearly.

We pay with higher

taxes. We pay with

wasted time. We pay

with the quality of our

lives. Some may pay

with their very lives.

In short, proper

transportation planning

makes life more

enjoyable, more efficient

and more safe.

21

can make the difference between life and death. Iffire and police departments build satellite stations,more costs are shunted to taxpayers. Higheremergency response times also mean higherinsurance rates for everyone.

Automobiles can be a great option fortransportation. But they should be just that — oneoption out of several potential ways to getsomeplace.

Automobile-driven planning assumes everyonecan drive, or everyone wants to. This becomes aself-fulfilling prophecy as developers simply leaveno options. In theory, people are free to ridebicycles on busy roads. But without planning a bikepath, bicycling becomes a dangerous, unhealthyand thoroughly miserable option. So we drive. Orwe are left behind.

Good transportation systems, with diverseoptions, don’t happen overnight. And they don’thappen by chance.

Taxpayers beware: Hidden costs bite hard

Some costs of owning a car are obvious: Monthlypayments; trips to the mechanic; new tires;gasoline; license fees.

Those are direct costs. Hidden costs are moreinsidious and often pushed off on someone besidesdrivers. Hidden costs may be property taxes, whichare diverted from other government services to payfor roads. In extreme cases, hidden costs mayinclude increased doctor bills and illness from dust,smog and other air pollution.

Hidden costs falsely soften the real cost of drivingfor taxpayers.

Montana has some of the most subsidized roadsin the nation. Per person, Montanans are among thelargest recipients of federal highway spending. Wetake this for granted, but voters in other states see itas federal porkbarrel spending. State spending onMontana roads is nearly twice the national average.

Local government pays, too. When you examinethe budgets of local governments, and factor in

Percentage of Flathead

County workers who

drive to work: 95.

Percentage who drive

farther than 15 minutes

each way: 47.

Percentage who drive

alone: 77.

Amount spent on

Montana highway

projects, per person:

$176.74.

Amount spent on

Montana pedestrian

projects, per person:

$2.14.

By the Numbers;

Add ‘em up, you

get sprawl:

Sources: U.S. Census, 1990; Surface

Transportation Policy Project Report

“Main Streets,” 1997.

22

hidden costs, you’ll find cars pay about half of theirway. One of the reasons our property taxes are highis because of the demands of supporting countyroads, bridges and other services for motorists.

In theory, the free-market works when customerscan weigh the costs and benefits of a certain action.But when costs are hidden, the “benefits” may notbe as beneficial as one thinks. On the balance, theymight not be benefits at all. That’s often the casewith cars.

Take Helena, for example

Hidden costs lurk in places like parking lots.When you shop, part of the price you pay for

products goes to the shopkeepers, so they can ownand maintain parking. This adds up. Nationwide,businesses pay $85 billion annually just to provideparking for employees. Parking for customers is anadditional cost.

In Helena, there are six parking spaces for everyresident. Businesses that provide parking simplyraise the prices of their products to pay for that.Land that is used for parking is lost to moreproductive uses, such as other businesses, whichimpacts tax rolls and property taxes collected.Everyone pays for that.

Residential parking is another factor. Requiring anoff- street parking spot for an apartment house canraise the rent 10 percent. Providing two parkingspots cranks the rent up 25 percent. (Source:AERO, Helena.)

The costs of parking are often not distributedfairly. For example, in Helena, families with fewerthan two cars pay $6 million for residential parkingthat they never use. Meanwhile, families with morethan two cars are using $4 million worth of spacethey didn’t pay for. How fair is that? (Source: AERO,Helena.)

Simply put, drivers don’t pay their own way. Cities collect some money from drivers — in

Love your car? How much?

• 20 percent of the average

family income is spent on

driving.

• The average family spends

$4,600 annually to keep their

car running.

• Most American families

spend more on their car than

they do on food.

• Automobiles are the leading

cause of death of Americans

between ages of 15-24.

• Cars cause 60 percent of air

pollution.

23

license fees, fuel taxes and the like. But cities payfar more for direct driving costs such as pavingroads, maintaining bridges, hauling away junkers.When you add in costs like fighting weeds,ambulance runs to accidents, traffic court, stormdrains and the like, the gulf gets wider and wider.

At best, driving fees cover about half ofdriving’s real costs. Local governments are left tomake up the rest. And local governments dependon property taxes.

The bottom line? Property tax payers areunderwriting the true cost of driving, to the tune ofmillions of dollars. We can save tax money byproviding options to driving, thus making ourcommunities less dependant on cars and roads.

Malfunction JunctionWhy strips are dangerous = Why strips are

expensive

With strip development, roads become a maze ofindividual access points for cars entering andexiting the road. Each one of those points becomesa potential conflict point between cars. Slow carsgetting off or on the highway are hazards for othermotorists.

In result, the potential for accidents shoots up. Inparticular, the risk of getting rear-ended skyrockets.Red lights become longer. Traffic becomes slowerand more knotted. Motorists demand the situationbe rectified. Local governments scramble formoney to do so, often dipping into the budgets forparks, urban forestry or other services.

If anything is done, taxpayers cough up themoney. The bitter irony is the most commonresponse is to build more roads and pave morelanes. But more, poorly planned roads simply invitemore traffic, and feed more of the same viciouscycle. We need alternatives to moving people bycars.

How do we break this

cycle of building more

roads and larger roads,

that lead to more traffic

congestion? By

promoting planning that

creates transportation

choices, where people

can walk and bike.

Between 1992 and

1997, Montana spent 0

percent of its “flexible”

funds for alternative

transportation planning.

Nationwide, the other

states spent on average

6.5 percent of that

funding on alternative

transportation planning.

Source: Surface Transportation

Policy Project report “Changing

Directions”

24

If you think western Montana has seen growingpains in recent decades, consider King County,Washington, near Seattle.

The booming growth in software and other high-tech industry has brought a boom in traffic and trafficcongestion. To sort through that problem, KingCounty has implemented “ transportationconcurrency management.”

Here’s how it works. Any time a developerproposes new construction in unincorporated KingCounty, the county figures how much traffic that newdevelopment will add to local streets.

The county has standards for allowable traffic. Ifthe proposed development will cause traffic toexceed those standards, the development is rejected.If the development meets the standards, or improvestraffic flow, it receives the county’s OK. Thedevelopers have an opportunity to appeal thedecision on technical merits, or to revise theirdevelopment so to meet traffic standards. The rulesare configured to protect private property rights.

Unincorporated King County is split into 200transportation districts.

The so-called “certificate of concurrency” doesn’tguarantee a development permit. But, it is one step inmaking sure the public interest in efficient traffic flowis taken into account.

Of course, what works in urban Seattle may not fitrural Montana, but this illustrates there are solutions,if we are creative enough to find them.

One alternative to autosprawl: TransportationConcurrency Management.

25

Questions for Your HomeGround

Did you know?

• One in four Montanans—

200,000 people—cannot or

does not drive.

• 82 percent of goods moved in

and out of Montana are moved

by truck.

• On average, Montanans own

1.7 cars each. That’s more than

any other state.

• Flathead County has 2,753

miles of public road—more

than any other Montana

county. More than 1,200 miles

are maintained as county

roads.

• What are the commuting and car-poolinghabits in your community?

• Do your local transportation plans makeroom for alternative transportation, such asbicycles, sidewalks and bus service?

Check with the local planning offices for cityand county governments. Also, check if yourcommunity has an active rails- to-trails group,involved in alternative transportation.

• Do your city’s parking plans overbuildparking areas, thus subsidizing inefficient motortraffic?

Check the planning department at your localcity hall. Ask specifically about parkingrequirements for business zones andneighborhoods.

• What are typical reaction times foremergency and fire crews in your city,compared to the response times for ruralemergencies? What’s your city’s or county’sratio of citizens to police, and how has thatchanged in recent years?

How much does it cost to build a new firestation? How much would your insurance ratesgo down, if response times improved?

Check with your local police, fire and sheriff’soffices. Many counties also have an emergencyservices coordinator.

Source: Montana Department

of Transportation

26

The Blob that Ate the Farm:How the loss of farmland hurts us all

It’s easy to pave a piece of farm land, but once it’sdone, it’s unlikely that ground will ever see a plow again.

Flathead County contains 277,000 acres of farmland,out of about 825,000 acres of private land. This is thecanvas upon which the future of Flathead County will bepainted.

Between 1992 and 1997, Flathead County lost nearly1.4 acres of farm land every hour to development.During those years, farmland in Flathead County wasreduced by 22 percent. The average Flathead Countyfarm shrunk by 30 percent.

For taxpayers, keeping land in agriculture is one of thebest bargains going. [See Myth Busting, Myth No. 1.]Farm land actually generates revenue for countycoffers. This is a far better deal for taxpayers thanresidential development, which is a net drain on countycoffers.

Farmland is more than a place to grow food and awindfall for taxpayers. It is the scenic backdrop of thevalley. It is habitat for elk, whitetail deer, waterfowl andpheasants. It is open space — the defining characteristicof Big Sky Country. Moreover, farms are wheregenerations have made a living.

Agriculture is Montana’s largest basic industry,accounting for more than 30 percent of the state’sindustrial jobs, wages and sales. Montana is the secondlargest farm state in the union. Montana’s 60 millionacres of farmland generate an astounding $2.3 billion inrevenue annually. Flathead County is an excellent placeto grow food. The climate is cool, the soil is rich andrelatively free of disease and weeds. Grain, hay, beef,peppermint, potatoes, dairy products, garlic, sod,cherries and Christmas trees are just some of the cropsgrown in the Flathead.

Yet, farms disappear. In 1920, Montana had nearly58,000 farms. Today, the number is around 22,000. Theland around Creston is some of the most productive agland in the world. Yet we’re losing it to sprawl.

While high costs and low prices

squeeze Flathead Valley farmers,

family farmers remain

independent and in business.

Joe Brenneman is one example.

He raises 260 head of dairy and

beef cattle on the farm where he

grew up, southeast of Kalispell.

Aside from tending the milk

herd, the fourth-generation farmer

raises barley, spring wheat and

alfalfa for feed and for sale.

For farming to remain part of

the future Flathead Valley, Joe

says the community must make a

conscious effort to protect it.

“There’s not a legal crop we

can grow consistently that can

compete with land prices of

$6,000 an acre,” Brenneman said.

“We, need a fair return on our

investment, but farm profitability

and land use issues in an area like

the Flathead need to be seen as

separate issues. We, as a

community, have to recognize that

agriculture has an intrinsic value

that exceeds short-term, dollar per

acre calculations and we all lose if

that land is lost to agriculture. We

can’t take that land from the

farmer; we need to find ways to

5

--continued on page 27

27

Free market? Think again.

The pressures force-feeding farmland to sprawl are notthe divine, invisible hand of free-market economics. Theyare forces set in motion by government policies.

Policies like Senate Bill 184, passed in 1999. Thismeasure, meant to “equalize” taxation statewide, resultedin local government action to increase mill levies tobalance their budgets. Farmers took it on the chin. Thismeasure alone forced a 9 percent tax hike on theaverage Flathead County farmer.

Senate Bill 184 was bad enough on its own. But at thesame time, the Montana Legislature forced a decreasethe taxable valuation of luxury and recreational property,such as lakeshore, summer homes and second homes.Just in the Flathead Valley, this caused a decrease ofmore than $6 million in the taxable evaluation.

That’s great if you’re the owner of a summer home onFlathead Lake. But it exerts that much more pressure onfarmers.

On top of the tax structure, a variety of subsidies, fromfederal highway spending to local taxpayers paying forpolice, fire and other services, tip the economic balancetoward sprawl and against farmers. Collectively, theseforces can push farmers over the brink, providing one lastreason for farmers to hang up their seed caps and sellout.

Sprawl adds to Farmers’ Burdens

Montana farmers face a long list of challenges. Theseinclude complexities of international trade, federal foodpolicies and fuel costs. But sprawl makes farm life thatmuch harder.

Non-farmers who “move to the country” often are in fora surprise. The country is full of noisy machinery. Planesand trucks spray chemicals early in the morning. Thereare unpleasant substances like silage, manure and dust.When sprawl closes in, farmers spend increasing hourshassling with cranky new neighbors.

Chopping the county into 5-, 10- and 20-acre plotsfragments the land. Such ranchettes are frequentlyinfested with noxious weeds that become another bane

--continued from page 26

purchase those development

rights and carefully plan

development.”

“People see the loss of

farmland in the Flathead Valley

and think, it’s just a drop in the

bucket. But the thing is,

everyplace is just another drop

in the bucket. Valuable farm

land is valuable farm land. No

one is making any more of it.

“In Europe, where they’ve

been farming the same land for

a thousand years, and where

they’ve gone hungry, people

understand the value of farm

land. It is hard to get people to

think and plan 20 years in the

future, and we should be

thinking about what might be

needed 200 years in the future.”

Brenneman’s farm remains a

family affair, where he works

side-by-side with his parents

and brothers. They keep their

use of chemicals to a minimum,

fertilize with manure, and avoid

bovine growth hormones.

“Every once in awhile, I

come to the realization that this

is what I was meant to do. It

comes to me when I’m out in

the middle of some field

somewhere. I’m taking care of

something. I’m providing

something important — food.”

“If I don’t come to that

realization every six months or

so, it’s time to start looking for

another line of work.”

28

for farmers. Stray dogs from new subdivisions often runfree, killing chickens, calves and sheep. Domestic dogs killfar more livestock in Montana than wolves do, accordingto state statistics.

Sprawl also tends to raise property taxes, as localgovernments scramble to provide services to far-flungconstituents. Farmers are particularly sensitive to propertytax hikes, since they need so much land to operate.

One key benefit of planning is that it separatesincompatible land uses. Allocating land to farming assuresboth sides: Farmers will have freedom to farm, and newhomeowners are less likely to be surprised by the noiseand smells associated with modern agri-business.

Economics make farming tough enough

Top on the list of headaches besieging farmers is themarket. Many crop prices, in particular beef and wheat,have been stuck in the basement for years. Mint, whichshowed great promise for Flathead Valley farmers severalyears ago, has likewise plunged in price.

While financial returns for farming have been low, theprice of land has gone up. Property taxes have alsoclimbed. All that increases the pressure to sell out.

Demographics are telling: The average Flathead Valleyfarmer is 52 years old. Almost 40 percent of farmers are60 years old or older. This generation of farmers will soonbe looking to sell land, as they retire. Even if youngfarmers are interested in entering the business, they’rehard pressed to afford the necessary land.

Between 1992-97, Montanan’s personal incomejumped 30 percent. However, during those years thestate’s net farm income plummeted 465 percent. (Source:Montana Department of Agriculture) Small wonderfarmers are throwing in the towel.

Flathead County land prices are so high, and the profitmargin for farming is so low, it’s tremendously difficult foranyone to break into farming. About the only way to do sois by inheriting the ranch.

Given all these factors, it’s logical that the farmingcommunity is a natural ally with those of us who want awell- planned future in Flathead County and elsewhere inMontana.

29

Going Global

American democracy was based on the ideal of theyeoman farmer. Today, the Jeffersonian family farm isincreasingly subverted by – or subservient to –multinational corporate agri-business.

There is no logical reason Flathead Valley shouldimport beef from Argentina and eggs from Australia, butthis is exactly what’s happening. The growing power ofmultinational corporations is putting the squeeze onwhat farmers can plant. In 1999, genetically modifiedorganisms accounted for 50% of the nation’s soybeancrop and 33% of the country’s corn. Montana FarmersUnion is calling for a one-year moratorium ongenetically modified crops, largely for the sake of familyfarms.

Corporate farming is far different from family farms.While all farmers must make a profit, the corporatestructure puts a much higher premium on maximizingprofits and is virtually blind to everything else. Corporateoffices are generally far from the land. Corporatebudget hawks have little feel for the land, as do farmerswho have worked land for generations. Corporatefarmers are much more likely to buy in bulk, outside thecommunity they farm. In short, family farmers makebetter neighbors.

But the deck is stacked against them. If family farmsare to succeed, they must be assisted through local,state, and federal policy changes. We need toencourage the ability of farmers to sell food locally, andto examine taxes and policies that unfairly shift the costsof growth to farmers.

One Piece of the

Puzzle: Community

Supported Agriculture

One way citizens can help local

farmers is by Community- Supported

Agriculture.

Increasingly, Americans are

disconnected from the food that they

eat. Montanans used to grow their own

apples in Flathead and Bitterroot

Valley orchards. Then we imported

apples from Washington state. Now

we import them from New Zealand

and China. The average morsel of

food on your table traveled 1,200

miles from the farm. Americans

import 40 percent of their food.

That’s where community-supported

agriculture comes in. Community-

supported agriculture helps farmers

stay on the land, while offering the

customer a sense of connection with

that land.

Community-Supported Agriculture

was started in 1986 in Massachusetts.

Customers “subscribe” to the farm,

getting fresh, local, organic produce in

exchange. There are three such

operations in the Flathead Valley, each

with between seven and 30

subscribers.

• Swallow Crest Farms, in Creston.

• Terrapin Farms, in Whitefish.

• Raven Ridge Farm in Kila.

“It’s a very positive experience,”

said Julian Cunningham, of Swallow

Crest. Often, volunteers and families

come to the farms to help work the

land and tend and harvest crops.

“This is a great way to teach kids

where their food comes from,” says

Judy Owsowitz, of Terrapin Farms.

Locally grown food can also be

found at health food stores and

Farmers’ Markets. Some supermarkets

feature local produce, identified with

special signs. Ask your grocer about

buying locally.

30

NRCS, a branch of the US Department ofAgriculture, is charged with helping peopleconserve, improve and sustain natural resources.This office offers soil survey maps and past andcurrent crop yields are available through NRCS.

Farmers Services

Another branch of USDA, this agency offersinformation such as aerial photos marked with soiltypes, and lands that have been removed fromfarm use.

Regional Development Office

A branch of county government, this office is incharge of planning and zoning for the county. Allchanges in use of residential or commercialproperty must receive permission through thisoffice, so it is a trove of information.

Assessor’s Office

Empowered through the Department ofRevenue, the Assessor’s Office assessesproperty, to determine a value upon which taxesare based. This office contains extensive, currentfiles on each parcel in its county. That includes alist of farms. (A farm is defined as a property ableto sell $1,500 of material produced from that land.)

Plat Room

An office of the county government, the PlatRoom maintains sophisticated maps of the entirecounty, and other information on current land use.

Where to Go For Farm Info:Natural Resources Conservation Services

–continued on page 33--

31

In 1980, the Flathead Valley was a sleepy farm community, on the cusp of big change. The or-ange represents residential areas, while the green is farm land. Red is commercial.

32

In 1998, Flathead County was reeling from a growth boom. The county loses 1.4 acres of farm-land every hour. In 1999, the county saw 252 minor subdivisions, creating 464 lots. That’s twicethe rate of subdivision of any other county, and impacts everything from decreased crop land toincreased tax bills.

33

–continued from page 30–

County Commissioners’ Office

County commissioners are elected officials whohave considerable power in their counties. Withinthe confines of state law, they are the authority forplanning and zoning regulations, outside city limits.

City Council

City Councils have the authority to work withcounties planning the outskirts of cities. Often,these plans impact the most vulnerable ag land in agiven county.

County Library

Local libraries often save historic information,including information on farm history.

Local Historical Societies

County and city historical societies also collectand share information. Consider a guided tour, tofind out more.

Local Newspapers

Local newspapers and individual journalistsusually have some system for sharing archives.

Other groups and agencies...

Groups such as the Flathead Land Trust, theMontana Land Reliance the Nature Conservancy,the American Farm Land Trust, and othersinterested in farm conservation are nearby. Askaround.

• What are the primary

crops grown in your

county? What are the most

noxious weeds?

Check with the local farm

services office, county

extension office or county

weed control department.

Or just ask a farmer!

• Does your county have

an active ag extension

agency?

Check at the county court

house. If you find none, ask

your commissioners.

• Does your county plan

have a zone specifically for

agriculture?

Check the plat room, or the

local planning office.

• What’s happened to the

property tax bills for

farmers in your county?

How about land prices?

Ask your county assessor,

auditor or county

commissioners for details.

Don’t be shy. You’re paying

their salary.

34

• Map your county’s farmland loss to graphicallyillustrate dwindling farmland.

• Good planning and zoning helps assure that farmland remains farm land. It also helps limit propertytaxes and can protect farmers from inflationaryspikes in land prices and property taxes. Nuisancecomplaints against farmers should be discouragedby zoning farm land for farming alone, not mixingsuburban, commercial and agriculture. Byclustering residential development, good planningdecreases pressure to sell farm land.

• Conservation easements. Groups like MontanaLand Reliance and Flathead Land Trust securedevelopment rights from farmers, helping them keepland in agriculture but prohibiting subdivisions.

• The state-sponsored Montana Ag HeritageProgram sets aside $500,000 for keeping farm landin agriculture in Montana, through conservationeasements. This allotment should be increased andpolitical pressure should be applied, to make certainthis money is spent as the Legislature intended.

• County planning boards zone land agricultural, forexample imposing minimum lot sizes – say 180 – oreven 640 acres – that preclude subdivision.

• Support open space initiatives. Missoula, forexample, protected open space that adds to thetown’s character with a $5 million municipal bond.

• Buy locally grown produce. Seeking locally grownfoods is probably the most direct way to help localfarmers.

How can YOUR communitysupport farming?

• How much acreage is in

agriculture in your county?

Check the local planning

office or plat room.

• How much was there 5 or

10 years ago? How much is

being lost per year? Per

week? Per hour?

Check with old planning

maps and divide.

• Where does your grocery

store buy its produce? Is

there any source of locally

grown produce in your

town?

Ask your local grocer, or

check for a local farmers’

market, food cooperative,

community supported farm

or other alternative food

sources. The Yellow Pages

might be a good source.

Look for advertisements

that tout local produce.

35

• Lobby county commissioners to offerproperty tax credits to local restaurants,grocery stores and food co-ops that buy localproduce.

• Farmers need a representative face with thecommunity. Yet counties have slashedextension services that used to provide this.Those offices should be restored.

• Urban growth boundaries. City and countyplanning boards can implement boundariesaround cities, focusing residential andcommercial development within theboundaries. This tends to keep farm landprices down, while assuring farmers that farmland will stay farm land.

• Transfer of real estate tax. Some cities,particularly in Colorado, have imposed a tax onsales of real estate. This tax is then earmarkedfor protecting open space. The ski town of Vailraises $2 million annually this way, andCrested Butte has a similar program.

• Ask candidates running for political officewhat they will do to protect Montana’s

There is no “silver

bullet” to magically

protect farmers and

farmland. None of

these measures will

make farming easy.

But they are a start.

Farmland is a rapidly

dwindling, finite

resource. Time is of

the essence.

How can YOUR communitysupport farming?

36

• Hold down costs of

providing public services,

thus keeping down taxes.

• Protect health and

safety.

• Provide safe,

convenient and pleasant

places to live and work.

• Protect property

values.

• Protect farms.

• Protect fragile lands

and the quality of water.

• Remove barriers to

affordable housing.

Planning — Keeping theFoundation Solid

Good planning can:

6Among the central concepts of modern American

democracy is local planning. For more than 100years, Americans have planned in order to protecttheir rights, property and communities. However,without the commitment of citizens and electedofficials, that process can be undermined.

It’s up to us as citizens to understand and monitorlocal planning efforts, so our plans do the job theyare supposed to.

What’s in a name?

In the past in Montana, local plans have gone bymany names. These included “development plans,”“master plans,” or “ comprehensive plans.” The1999 Legislature consolidated all of that in a newname: “Growth Policy.”

A growth policy is a binding document that isdeveloped by local government through a publicprocess. The policy is the foundation for all localland use regulations. Done well, the growth policyis a vision of the community — an expression ofpublic interest. It is a broad look at what thecommunity is. What’s more, it’s an expression of thecommunity’s hopes for the future.

Ideally, the policy identifies potential land useconflicts and gives direction for resolving them.Montana case law requires that land useregulations closely conform with the growth policy.That’s smart, since regulations based on a good,public plan are less likely to be arbitrary, comparedto regulations adopted in isolation.

In Montana, the power of local government toregulate land uses is limited. For example, CountyCommissioners may not pass rules tellinglandowners how to farm or log. But the county canplan where logging and farming will take place, ordesignate areas for residential development, heavy

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industry, or other uses. Government may not “take”property. That is, it may not deprive landowners ofall reasonable use of their property, without justcompensation.

A growth policy document paints a broad picture.The teeth –and the detail – are in the land useregulations, such as zoning. Other land use rulesmay include regulations for subdivisions, streamsideand lakeshore setbacks and floodplains. Localcommunities may also make their own“neighborhood” plans that are more specific than abroader growth policy.

However, the foundation for all these tools is thegrowth policy document. By law, this policy must“ensure the promotion of public health, safety,morals, convenience, [and] order.” Planning isamong the duties of Montana’s local governments.

Da law’s da law

The rules for growth policies in Montanacommunities are not guidelines orrecommendations. They are law, spelled out inMontana Code 76-1-601. Local governments arelegally required to draw up and maintain soundgrowth policies.

Those growth policies must include:• Community goals and objectives.• Maps and text detailing the attributes of the

community. They must include population, housingneeds, economic conditions, local services, publicfacilities and natural resources.

• Projected trends for those attributes.• A description of policies that will lead the

community to reach its goals.• A strategy for coping with the public

“infrastructure”, things such as roads, sewers, waterand garbage disposal.

• An implementation schedule for the policy.• A schedule for updates, which must occur at

least once every five years.• Details on how counties and cities will work

If your local growth

policy doesn’t live up to

these requirements, it

may be an illegal plan.

Make sure your

representatives are

doing their job and not

shortchanging the

future. Check your

growth policy against

the requirements of

Montana Code 76-601,

or make certain your

county attorney does so.

Here’s a tip:

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together and how public hearings will be conducted toensure wide-reaching public involvement in planning.

How good plans are subverted

No law does any good without enforcement andpublic support. This is particularly true with planning.Since the growth policy is a long-term document, itrequires long-term commitment.

There are many ways local planning efforts can besubverted. One way is by stacking planning boardswith politically ordained advisors. For zoning to beeffective, it must reflect the community in all itsdiversity, not just a narrow political faction.

Plans are not fixed in stone for all time. Theyshould be regularly updated in a systematic, publicand broad-based manner. In fact, such periodicupdates are required by law.

However, too often, we have seen the local plansattacked piecemeal. Here’s how:

Say a developer comes to town and wants to build aproject out-of-place with what is in the plan. Say hewants a sports arena in an area zoned for farming.

Instead of fitting the development to the plan, thedeveloper may try to convince politicians to rewrite theplan to fit his development goals. With enoughpolitical influence, the developer might convince thecity council or county commissioners to amend theplan, specifically allowing the new arena in a placewhere the plan does not. That’s the tail wagging thedog.

This is like taking a hatchet to the foundation of thegrowth policy. After a few good whacks, the plan isundercut. Pretty soon, instead of having well-reasoned, well-planned growth, the community suffersa hodgepodge of development, that follows politicalexpedience over community desires. Local residentsand business owners don’t know what is going tohappen in their neighborhoods. What’s more,developers don’t have clear direction as to what ispermissible, where.

The result? You guessed it: Sprawl.

“After all, Montana is

phenomenal. Just look

out the window. We owe

this kind of place our

very best. Which is why

we’re all here.”

Dan Flores, historian

University of Montana

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In Summary: Planting theSeeds of Community

Make no mistake: This is a whale of a fight. Theforces that would shove the best of Montana intothe grinding engine of “progress” are powerfulindeed. Powerful, but not omnipotent.

Fighting the roots of sprawl is not enough. Wemust also plant the seeds of community. We mustexpress our vision of Montana’s future. A place thatmaintains the best of the past, while selecting thebest of the future.

In some ways, the battle against sprawl iscomplicated. There are mind-numbing details. Athicket of sticks to poke at our eyes. But on theother hand, the battle is simple: It’s about stickingup for people. It’s about clearing a path fordemocracy.

Sprawl is not inevitable. There is nothing behind itbut people and people’s institutions. People makingchoices.

And nothing can stand in its way but people.People with a vision of a world that values fresh airover exhaust, bike routes instead of traffic jams andgreenbelts over asphalt. People who valuecommunity, who value chatting with their neighborsand who would prefer, now and then, to walk or ridea bicycle.

In other words, people making choices. Peoplechoosing to care. People choosing to get involved.People choosing to work hard. People choosing notto give up.

People refusing to be defined simply asconsumers. But people wanting more. Peoplewanting to be citizens.

• Montana has city and

county planning boards, as

well as consolidated

boards, covering both

jurisdictions. In addition,

boards of adjustments also

have power to waive

zoning regulations, for

specific projects. All these

need citizen participation.

• Members are appointed

by city council members or

county commissioners.

• Check with your local

planning office for any

vacancies.

• Get an application from

the city or county clerk.

• Tell your commissioner

or city council member or

mayor you’re interested.

For planning to work

properly, boards must fairly

represent the broad array of

opinions in any community.

Including yours!

Want to serve on

a planning board?

Good for you!

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Citizens For a Better Flathead hasadvocated for smart growth in the Flathead Valleyfor almost a decade. It is a group of citizens,dedicated to protecting the unique quality of life thatis still possible in the beautiful, fast-growingFlathead Valley in northwestern Montana. Citizensis a non- profit organization whose mission is topromote sustainable development and economicdiversity through comprehensive, citizen-drivenplanning, thus protecting the ecology and culture ofthe Flathead. Want more details? The information in this reportwas drawn from more detailed stories in ournewsletters, from January 1999 to May of 2000.Back issues are available on request.

Reach us at:Citizens For a Better Flathead

PO Box 771Kalispell, MT 59903-0771

Phone: 406-756-8993Fax: 406-756-8991

Email: Citizens@digisys.netwww.montanaweb.com/citizens

This report was made

possible by the generous

support of :

• The Turner Foundation

•The Bullitt Foundation

•The members of Citizens

For a Better Flathead

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To Link Up:

American Farmland Trust www.farmlandinfo.org

Greenbelt Alliancewww.greenbelt.org

Smart Growth Networkwww.smartgrowth.org

Urban Land Institute www.uli.org

Headwaters Newswww.headwatersnews.org

American Planning Associationwww.planning.org

Carrying Capacity Networkwww.carryingcapacity.org

The Natural Resources Defense Councilwww.nrdc.org

Surface Transportation Policy Projectwww.transact.org

Center for Neighborhood Technologywww.cnt.org

Congress for New Urbanismwww.cnu.org

International City/County Management Association.www.icma.org

Urban Land Institutewww.uli.org

Sprawl Watch Clearinghousewww.sprawlwatch.org

Planning Commissioners Journalwww.webcom.com/pcj/sprawl/sprawl6.html

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To Read More:

• Geography of Nowhere: The Rise and Fall ofAmerica’s Manmade Landscape

By James Howard Kunstler; Touchstone Books.

• Better, Not Bigger: How to Take Control ofDevelopment and Improve your Community.

By Eben Fodor. New Society Publishers.

• Once There were Green Fields: How UrbanSprawl is Undermining America’s Environment,Economy and Social Fabric

By F. Kaid Benfield, Matthew D. Raimi, andDonald Chen. Natural Resources Defense Council.

• Balancing Nature and Commerce in GatewayCommunities

By Jim Howe, Ed McMahon, and Luther Propst;The Conservation Fund and the Sonoran Institute.Island Press.

• Changing Places: Rebuilding Community in theAge of Sprawl

By Richard Moe and Carter Wilke. Henry Holt and Co.

• Home from Nowhere: Remaking Our EverydayWorld for the 21st Century.

By James Howard Kunstler, Simon and Schuster,1996.

• Reclaiming the Commons: Community Farmsand Forests in a New England Town.

By Brian Donahue, Yale University Press.

• Beyond Sprawl: the Cost of Population Growthto Local Communities, Dec. 1998, CarryingCapacity Network, 2000 P St. NW Suite 240Washington D.C.

.

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Montana Land Reliance324 Fuller Ave., Helena, MT 59624406- 443-7027

Flathead Land Trust35 4th St. W. Kalispell, MT 59901 406-752-8293

The Nature Conservancy32 S. Ewing, Suite 215, Helena, MT 59601406-443-0303

Private, non-profit, land conservationorganizations in Flathead County

Center for the Rocky Mountain WestUniversity of Montana, Missoula, MT 59812.406-243-7700.

Ray Rasker, Ph.D., Northwest Office, The Sonoran Institute10-5 W. Main, Suite D. Bozeman, MT 599715406-587-7331. (Offers a workbook, “Measuring Change inRural Communities.)

Montana Department of Revenue, with field offices in eachcounty. For Flathead, the number is 406-758-5700.

Census and Economic Information CenterMontana Department of CommercePO Box 200501, Helena, MT 59620.406-444-1518

Bureau of Business and Economic ResearchUniversity of Montana, Missoula, MT 59812406-243-5113

Good Sources of Economic Information

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Price: $6 for Citizens For a Better Flathead members

$8 for nonmembers

A note about the photographs:

A century ago, Ponderosa pine forests covered much of theFlathead Valley. The giant old trees were cut for fuel wood, lumberand simply to clear fields. The Spring Prairie Tree, growing northof Kalispell, is a centuries-old remnant of those forests. The treewas a resting place along the historic Fort Steel Trail, betweencommunities in Montana and British Columbia. Now, U.S. High-way 93 runs nearby. The state of Montana, which manages thesection around the tree as part of the school trust, is consideringleasing a portion of it for commercial development. We at CitizensFor a Better Flathead thought the tree a fitting symbol of our at-tempts to insure sustainable development and protection for thisincredible place we call home. The photos used in this publicationwere taken nearby.