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Associated Press - 2007-10-20

Timber companies battle Oregon property rights rollback

Brad Cain, The Associated Press, October 20, 2007

SALEM, Ore. — New TV ads depict elderly couples worrying that the value of their land could be destroyed by a measure on the Nov. 6 ballot that would scale back a 2004 property rights law that opened up new possibilities for development.

The ads are bankrolled in large part by timber companies, some of whom have filed claims to turn forest land into housing subdivisions under the 2004 property law known as Measure 37, and stand to benefit if the current law is left as it is.

Campaign finance figures show that 18 timber-related companies have contributed $1.14 million, or 59 percent, to the $1.93 million campaign so far to defeat the Nov. 6 ballot measure, called Measure 49.

Of those timber companies, nine have claims under the 2004 law seeking the right to convert 113,000 acres of their land to subdivisions or $32.5 million in compensation if governments reject those claims.

"If you follow the money, it's clear that the real opponents of Measure 49 are timber companies that want to pave over Oregon's forests with housing subdivisions," said Liz Kaufman, head of the Yes on 49 campaign.

But timber companies contend they have no immediate intention of turning vast tracts of their holdings into subdivisions, and are just keeping their options open.

Considered the farthest-reaching statute of its kind in the country, Oregon's 2004 law allows property owners to seek compensation if land-use actions imposed after they bought the property reduced its value and restricted its use. Cities and counties facing Measure 37 claims must either pay the compensation sought or waive the regulations.

Since the 2004 law passed, property owners have filed more than 7,500 claims on 750,000 acres -- mostly on rural farm or forest land. They've demanded billions in compensation or the right to build everything from a single home to subdivisions with dozens or even hundreds of homes.

Oregonians voted by a margin of 61-39 percent for Measure 37 because it promised to loosen what were perceived by some as unfair restrictions in the state's land-use rules that hurt small landowners. Instead, it has brought disarray and confusion, resulting in more than 250 lawsuits seeking clarification of its provisions. As a result, there have been no clear guidelines for property development since Measure 37 was passed.

Measure 49, the measure on the Nov. 6 ballot, is intended to bring order to land-use rules. It would allow rural landowners to build a few homes -- three in most cases and as many as 10 for some -- but curb larger subdivisions and industrial development currently allowed under the 2004 law.

Many Oregonians who voted for Measure 37 regret doing so, saying they didn't realize it would go so far in opening up areas for development, or that it would turn out to be so unclear and flawed. But there are also those who say Measure 37 corrected injustices within existing land-use rules and should be left as it is.

The timber industry, owners of vast acreage in Oregon, is among the most powerful of the ballot measure's opponents.

The largest single contributor to the anti-Measure 49 campaign so far is the Stimson Lumber Co., which has chipped in $375,000.

The Portland-based company has filed the largest development claims under the 2004 law's provisions -- a total of at least 57,000 acres in six counties, which the Yes on 49 Committee says signals Stimson's intent to convert forests into subdivisions.

Stimson President and CEO Andrew Miller said the company is pursuing only one development in Washington County and that the rest are "placeholder" claims intended to give the company options in the future.

The company remains focused on growing trees, not subdivisions, he said.

"The majority of our claims are in areas where there is no market for anything other than growing trees," Miller said. "But the proponents of Measure 49 say it should be forest land forever -- at our expense. That is just patently unfair."

The property rights group leading the charge to defeat Measure 49 notes it's being outspent by a 2-to-1 margin.

More than half of the $4.23 million raised so far by supporters of the measure has come from two sources -- Yamhill County vineyard owner Eric Lemelson and the Nature Conservancy, which usually works behind the scenes buying property to preserve as wildlife habitat.

Lemelson and the Nature Conservancy both have given more than $1 million to the campaign.

"The Measure 49 supporters are people who live in the country, and don't want neighbors. Their mentality is, 'I've got mine; too bad for you,'" said Dave Hunnicutt, head of Oregonians in Action, which sponsored the 2004 law. "It's the height of selfishness."

But backers of Measure 49 argue what's at stake is Oregon's livability and the future of farming if its predecessor -- Measure 37 -- is not repaired.

They are fighting back with their own TV ads featuring farmers warning that the 2004 law -- allowed to stand as it is -- will carve out large swaths of rural Oregon to unbridled development and create a mess in Oregon's unspoiled open spaces and rural lands.

The state's main land-use planning advocacy group, 1000 Friends of Oregon, said it doesn't believe timber executives' assertions that they aren't seeking wholesale conversion of forest land into housing subdivisions.

"It's total financial self-interest on their part," 1000 Friends spokesman Eric Stachon said of the industry's contributions to the anti-Measure 49 campaign. "When they say, 'We don't intend to develop these claims,' we say, 'Then you shouldn't have any problem with Measure 49.'"