Health Options Digest
March 6, 2005
Coalition for Health Options In Central Eugene-Springfield (CHOICES)
In This Issue
From the Editor
Week In Review
Too much news. Let's try to break it down.
Tonight (Sunday), the Lane Transit District workers voted 188-9 to go on strike starting Monday morning. Lane County is blessed to have one of the nation's best transit services, at least for a community of our size. But the labor dispute has highlighted concerns about not only health care costs but also spending priorities and accountability. LTD is investing tens of millions of dollars of public money in Bus Rapid Transit, an exciting but experimental approach to improving transit service and increasing ridership. And LTD's board of directors isn't elected by the people but appointed by the Governor. Perhaps those frustrated with the current situation should ask Governor Kulongoski to intercede. In any case, a strike may have long-lasting negative effects on the community. Let's hope both sides can find common ground quickly.
Why is Arlie's John Musumeci embroiled in controversy again? Whether he is looking to make money or merely for attention, sticking his business nose into the land dealings between Triad, the Eugene Water and Electric Board, and the City of Eugene is unhelpful and unwelcome. Actually, we hear he is miffed that Triad wasn't interested in buying his Crescent site for a new McKenzie-Willamette hospital. So maybe his interest in the EWEB site is more about spite than business: Does he feel that if he can't sell his land for a hospital, then no one should be able to? At least for now, Musumeci is taking his marbles and going home.
Bonny Bettman has been taking a lot of heat -- unfairly -- for comments she made at the EWEB hearing. In keeping with "Gang of 9" tactics, Musumeci is blaming her for the lack of interest in his plans. But the Eugene City Council is quite united in their desire for a hospital in Eugene. And we hear that a more conservative member of the council told Musumeci in private to back off, saying that if he persisted in competing for the EWEB site, he'd never get anything else approved in Eugene.
Jack Roberts of the Lane Metro Partnership, to his credit, wrote in defense of Bettman and the council. Despite Eugene's reputation for polarization, there is actually a growing consensus on the importance of the economy -- and the environment. Most of us aren't on one side or the other, but actually together in the middle.
Working together -- what a great idea! Imagine if, say, CHOICES and PeaceHealth were to start working together. Oh, yeah, that's already happening.
Speaking of good ideas, here's one we heard: What if EWEB didn't sell their property to a land speculator so he could profit but instead were to plan the property for more intense use and then sell off it so the public could profit?
At any rate, while half of the game of "Musical Hospitals" appears to be coming to a close -- PeaceHealth will likely break ground on RiverBend in a few months -- the other half is still very much in play. Whatever you think about EWEB, Triad, the Eugene City Council and Arlie, is this any way for a community to make decisions? Yes, we recognize that Triad is a private, for-profit business. But we also realize that quality, affordable, accessible health care is very much in the public interest. At any rate, the distinction between for-profit and not-for-profit hospitals may not be as great as you might think. So when will the "gown ups" show up, call a time out to the game, and work out amongst themselves where to put a hospital. Maybe there should be some group composed of Triad, Eugene, health care professionals, business leaders and citizens charged with figuring out what makes sense, say, within the next 3 months.
Lane County's "United Front" of elected officials and lobbyists was in Washington, D.C., trying to bring home federal funding for local projects, including Bus Rapid Transit and other transportation projects. Now that Congressman DeFazio is on a key house transportation subcommittee, Oregon may fare well in getting federal funding. But one person's benefit is another person's pork. It would be good to treat federal funding as our money -- it is -- and make sure every last dollar is put to a good use.
Lastly, there's one thing that Oregonians are starting to agree on: Measure 37 is turning land use in Oregon into a mess. Ken Sherman of the Oregon Banking Association -- a fairly conservative organization -- writes that Measure 37 is increasing uncertainty in the mortgage and insurance businesses. If Measure 37 allows your neighbors to do golly knows what with their land, which may cause your property values to plummet, then how confident can a bank or insurance company be in giving you a mortgage or insurance? And if under Measure 37 you gain a waiver that, say, allows you to build a house, but the waiver isn't transferable if you later sell your property, then what bank or insurance company is going to give you a mortgage or insurance? The Attorney General just issued an opinion that Measure 37, as written, will not allow waivers to be transferred. For better or worse, voters approved Measure 37, so the mess is one they asked for. When it comes to ballot measures, voter beware. It pays to read the fine print. Otherwise you might just get something far different from what you thought you voted for.
Looking Ahead
We don't know of much scheduled this coming week, other than the LTD strike scheduled to start at 12:01 am Monday morning. But we are sure that some news will turn up.
Rob Zako, Editor
343-5201
rzako@efn.org
Calendar
Wednesday, March 16 -- Land Conservation and Development Commission (LCDC)
Agriculture Building, Basement Hearing Room, 635 Capitol St. NE, Suite 150, Salem, (503) 373-0050 ext. 271
Public Hearing on Proposed Administrative Rule Amendments -- OAR 660-012 (Transportation Planning Rule) -- Regarding Review of Plan and Land Use Regulation Amendments. For additional information, please contact Bob Cortright at 373-0050 ext. 241, or by email bob.cortright@state.or.us.
PeaceHealth
Settlement Agreement Reached in PeaceHealth RiverBend Project
An agreement is reached between PeaceHealth hospital and one of the major opponents to its development at Riverbend.
The settlement means PeaceHealth could be closer to building a hospital in the RiverBend area.
The group CHOICES was one of the few remaining challengers to the project.
Monday, it announced a settlement agreement with PeaceHealth Hospital. (more...)
Letter -- PeaceHealth project important
By William O. Lawson, Eugene
The Register-Guard | March 4, 2005 |
My wife and I are weather wimps when it comes to Wisconsin winters. For the last five winters, we have had the privilege to leave Green Bay and enjoy the beautiful Willamette Valley in Eugene.
During those years, I have followed PeaceHealth's proposal to construct a new hospital with state-of-the-art facilities and equipment. As plans began, I followed them with interest. Over the years, my interest turned to dismay, as one roadblock after another was erected. For a hospital. An institution committed to the improvement of our quality of life.
Our oldest daughter was born at Sacred Heart in 1959. Thank God her sister was able to give birth to our three granddaughters in the 1990s in a facility that had been enlarged and upgraded over the years.
Yet, I was beginning to wonder if I would live long enough to see the new and ultramodern facility constructed.
Thank God I now at least know it will be built. Hopefully, I will live to actually see it and even possibly use it, as I did the existing one this past week.
I still read with dismay that those who provided years of opposition to Sacred Heart now want "to make sure McKenzie-Willamette, majority owned by Texas-based Triad, faces as little opposition as possible in its effort to move to Eugene." I'm sure there are others who support that, most especially Triad's stockholders watching for their dividends, who will have the deepest appreciation for that concern.
Letter -- Sacred Heart is out of room
By Enos Archuleta, Eugene
The Register-Guard | March 5, 2005 |
Very recently, I checked in at Sacred Heart Medical Center with chest pains. I was processed immediately and, of course, the hospital was full.
Because of my condition and with a lot of scrambling, a bed was found for me. I had an 85 percent blockage in an artery, and a stent was placed in that artery. Almost immediately, my chest pain was gone. I can't begin to tell you how frightening that is.
I wonder how close I came to a heart attack or stroke? Two days into my stay, the hospital was still full and 17 other cases were waiting for a bed! I guess that's not a big deal -- unless you're the one waiting for the bed.
I don't understand the people who are objecting to the new hospital at RiverBend. The whole thing has been studied, there is nothing else left to do but to overcome the objectors. I'd like to point out that I was in need, my daughter had just been released from this hospital and my wife has been there several times. You, your children and their children will be there sooner or later.
This is a not-for-profit hospital. This is not exactly a nuclear plant. It will not foul up the air. Traffic problems have been addressed.
I'm sure those who object to this project will not hesitate to use this facility if they need it, so please let it go!
We desperately need this hospital.
Part of Sacred Heart Medical Center -- Focus of Federal Investigation
Federal agents confisicate patient files and computer records... from Sacred Heart Medical Center.
Federal agents focused their attention on the cardiovascular department of the Medical Center.
The investigation started Friday evening. (more...)
PeaceHealth Investigation
NEAR DOWNTOWN EUGENE -- Federal Agents are probing PeaceHealth for records from its cardiovascular team. Hospital officials believe the agents want to review some former billing practices. (more...)
Agents search surgeons' billing records
By Tim Christie
The Register-Guard | March 1, 2005 |
Federal agents searched the offices of a group of Eugene heart surgeons Friday and left with billing records and copies of computer hard drives.
The search was disclosed Monday by PeaceHealth, which purchased the four-physician practice, Cardiovascular Surgical Associates, in November. (more...)
Hospitals see healthy demand
By Tim Christie
The Register-Guard | March 5, 2005 |
Business is booming at Sacred Heart and McKenzie-Willamette medical centers.
Officials of both hospitals report that their patient numbers, known as the census, are up this winter, though for different reasons: Sacred Heart Medical Center officials cite a general aging of the population. McKenzie-Willamette Medical Center officials say their census jumped Jan. 1, the first day they were allowed into a coveted and contested health insurance plan.
The keen demand for hospital services is prompting both organizations to make plans for adding new beds at their aged facilities, even though both are preparing to build brand-new hospitals.
Sacred Heart administrators have found themselves repeatedly at "critical census" this winter -- meaning the hospital is so full that it prepares to divert incoming patients to other facilities because no beds are open. (more...)
Sony Sale: CDs to MDs
By Sherri Buri McDonald
The Register-Guard | March 6, 2005 |
SPRINGFIELD -- The former Sony compact disc plant in Springfield, with its sleek design and acres of manicured lawn, was the city's premiere industrial property when it was built in 1995. But, just eight years later, amid slumping CD sales, the factory abruptly shut down.
Springfield Mayor Sid Leiken said the city will miss having a prestigious global manufacturing company and big property-tax payer at that site. But PeaceHealth's purchase of the property, and its plans to develop RiverBend, a $350 million regional medical center about a half-mile south of the site, open the door for another industry in the Gateway area: medical research, Leiken said. (more...)
McKenzie-Willamette/Triad
EWEB says if it stays, rates go up... City backs the hospital
Wednesday night, in the first of two public hearings, the city let EWEB's board know, if it moves out, the hospital needs to move in. The city council, known usually as being divided about many issues, is united about bringing mckenzie willamette to eugene. EWEB board members say they haven't made a decision to move, but says if they don't move, they'll have to upgrade buildings on the existing property and rates will go up. (more...)
Bonny Bettman Backlash
Wednesday night at an EWEB public hearing, it sounded as though Eugene City councilor Bonny Bettman was threatening to stop anyone else but McKenzie Willamette Hospital from developing the EWEB property.
But Thursday, she said the Register Guard newspaper misrepresented her statements.
Bonny Bettman -- with the rest of her colleagues at city council -- have been in full support of McKenzie-Willamette Hospital moving to Eugene--if EWEB decides to move. (more...)
EWEB & Hospital Sign Agreement
A step forward for McKenzie-Willamette Medical Center in its attempt to purchase the EWEB site in Eugene.
EWEB's General Manager signed off an initial agreement which sets the ball rolling on a possible sale. The EWEB board authorized GM Randy Berggren to sign the agreement back in November. He held off until this Friday.
This begins an eight month process where EWEB can further research its relocation costs, and McKenzie-Willamette can seek the state approval it needs to move into the Eugene service area.
Hospital spokesperson Rosie Pryor says, "We know that EWEB has long range plans to relocate, and they are truly putting a lot of thought into analyzing what their costs will be to do that, and determining whether or not this transacation will be the right one for them."
EWEB wants its ratepayers to know this is not a done deal. The agreement includes no sale price, and allows EWEB and the hospital the chance to back out if either side feels a sale is not in their best interest.
Letter from Arlie to EWEB
By Scott Diehl
Arlie & Company | February 28, 2005 |
Mr. Randy Berggren
EWEB
PO Box 10148
Eugene OR 97440
Dear Mr. Berggren:
Arlie & Company hereby withdraws its back-up offer to EWEB to purchase the EWEB property located at 500 East 4th in Eugene.
We were disappointed to hear Councilor Bettman, speaking on behalf of the Eugene City Council, represent that the Eugene Downtown Plan can no longer be relied upon as the authoritative planning document for the EWEB property. Without the guidance provided by the Eugene Downtown Plan there is simply too much investment risk for a local, family-owned business such as Arlie & Company.
We viewed the EWEB property as an exciting opportunity for the community, EWEB and Arlie & Company and we regret that we have been put in a position where we cannot compete for the project.
Yours sincerely,
Scott Diehl, Chief Operating Officer
EWEB Property Back to Single Suitor
At Monday's Eugene City Council meeting, councilor Bonny Bettman didn't want to talk about comments she made last week at an EWEB public hearing.
At the meeting, Bettman implied the city would do whatever it takes, and has the legal authority to do so, to make sure McKenzie-Willamette is the only development on EWEB's property. (more...)
Rate Payers Don't Want To Pay For EWEB Move
There are a lot of mixed feelings and a lot of tension when it comes to eugene water and electric board selling its riverfront property. The biggest concern for rate payers at eweb's second public hearing wednesday night was the possibility of a rate increase. (more...)
Letter -- Follow money in hospital debate
By Fiora Starchild-Wolf, Eugene
The Register-Guard | March 1, 2005 |
Pay close attention to the shell game. Ever since the Eugene City Council attempted to keep PeaceHealth south of the Willamette River, serving the majority of Eugene residents, Arlie and Co. has been working behind the scenes, to obvious profit.
First, there was the sudden "availability" of land on the McKenzie River that Arlie had just purchased and sold to PeaceHealth, conveniently allowing PeaceHealth to put the screws to McKenzie-Willamette Medical Center. Then, Triad offered to buy McKenzie-Willamette, looking for a suitable site in Eugene.
What does Arlie do? Offer to pay a higher price to the Eugene Water & Electric Board for the site that Triad feels is best. Not content to wait through the typical Eugene politics over whether EWEB should even sell, Arlie now appears to be conducting phone surveys with questions obviously skewed to get the respondents to favor Arlie's proposal over Triad's.
I just got off the phone with Moore Information, who asked several questions that boiled down to "which would you prefer, worse traffic and no access to the river, or a beautiful utopian complex that ends all our traffic problems, makes downtown thrive, cleans the river and builds a hospital in Glenwood?" Be careful with this one -- those aren't the only choices or consequences!
Arlie seems to be helping PeaceHealth once again in its quest to end all competition. How much does Arlie stand to gain from PeaceHealth's monopoly?
Arlie backs away from EWEB bid; Bettman comments blamed
By Joe Harwood
The Register-Guard | March 1, 2005 |
Last week, John Musumeci wanted to take off the gloves. This week, he wants to throw in the towel.
Musumeci, vice president of Eugene development firm Arlie & Co., announced Monday he would withdraw Arlie's bid for the Eugene Water & Electric Board downtown property. He blamed the pullout on controversial comments made by City Councilor Bonny Bettman last week at a public forum.
That leaves Triad Hospitals Inc. as the sole potential purchaser of the riverfront campus. Triad wants to build a new McKenzie-Willamette Medical Center on the site. Arlie said it planned to build a mixed-use residential/commercial development on the property. (more...)
Arlie drops bid for EWEB site
By Amber Fossen
The Springfield News | March 2, 2005 |
Texas-based Triad Hospitals, majority owner of McKenzie-Willamette Medical Center, hopes to build a new $85 million medical center in the core of Eugene.
And without Arlie & Co.'s backup offer nipping at the heels of negotiations, it's now the lone offer for Eugene Water & Electric Board's riverfront property.
Arlie had promised EWEB more than Triad's $24.8 million bid for the site, submitting a $28 million back-up offer in January.
That offer is no longer available. (more...)
Editorial -- Correction re Bettman
| The Register-Guard | March 1, 2005 |
Contrary to information currently on the city of Eugene's Web site and erroneously repeated in a Sunday editorial, Bonny Bettman is no longer president of the Eugene City Council. George Poling became council president in January.
Editorial -- And then there was one: Arlie unexpectedly withdraws EWEB site offer
| The Register-Guard | March 2, 2005 |
The least Eugene citizens could hope for after learning on Monday that Arlie & Co. would withdraw its $28 million bid for Eugene Water & Electric Board's riverfront property is a little clarity. But John Musumeci, Arlie's mercurial vice president, has merely muddied the water. (more...)
Letter -- Hold referendum on EWEB site
By Phil Garthe, Jan Garthe, Eugene
The Register-Guard | March 2, 2005 |
In the many recent articles about the Eugene Water & Electric Board property, there have been references to what "the city" wants and to the millions of our tax dollars "the city" is willing to give to a profit-making (i.e. higher health care cost) hospital group to encourage it to move to the congested downtown area next to a noisy railroad. It is an area that is admittedly "hard to develop."
Before anyone presumes to represent us as "the city," maybe the city might consider a referendum to find out what the vast majority of the people paying the bills really want -- not just a hearing attended mostly by those with an ax to grind.
And, while we're at it, maybe we can kill two birds with one stone and include a recall election to remove individuals who feel their personal opinions are more important than those of the voters who elected them.
Letter -- Bettman tried to bully EWEB
By Henry Masterson, Eugene
The Register-Guard | March 3, 2005 |
The headline said "EWEB hears support for hospital" (Register-Guard, Feb. 24). To the contrary! What was heard was a blatant threat to do it "my way" or not at all. No other considerations.
Eugene City Councilor Bonny Bettman's remarks demonstrate that she is totally bereft of visionary, forward thinking in the interest of the citizens of Eugene, whom she was elected to represent. What she did was attempt to hijack the decision-making from the Eugene Water & Electric Board and force her will on the people of Eugene. This is a prime example of abuse of authority.
The decisions made now about the precious waterfront resource and EWEB's need to either relocate or spend millions on capital improvements to the waterfront property are most critical to the future of Eugene. There will be no turning back if this is not accomplished through thoughtful consideration of all possible alternatives.
There are other options for hospital location in Eugene. We must not locate a large health care facility in an area that is destined to become snarled in traffic gridlock in the future. Eugene will continue to grow with more traffic because of the climate, the universities, the arts and hopefully the quality of planned growth and development. We must learn from other cities.
Why not a developer-built facility for EWEB and a swap? Too simple?
Letter -- Hospital support wasn't 2-to-1
By Joseph Downing, Eugene
The Register-Guard | March 4, 2005 |
"Eugene Water & Electric Board hears support for hospital" (Register-Guard, Feb. 24)?
Having attended that public hearing at the EWEB office, I came away from the meeting with a different take than reporter Joe Harwood.
I had expected to listen to many citizens about their feelings for or against EWEB's proposed move and the hospital that could take its place. Instead, about 12 of the first 16 speakers had a vested or public interest in the placement of Triad's hospital -- among them were three Triad employees, two doctors, three city councilors and the mayor of Eugene. They were not exactly impartial citizens!
The second half of the speakers were mostly ordinary ratepayers who voiced more concerns over the move. The final tally was roughly 16 for the move (and hospital) and about 11 against. This cannot be construed as Harwood's "almost 2-to-1 ratio."
EWEB Property Update
DOWNTOWN EUGENE -- A large piece of property along the Willamette River in Downtown Eugene remains a hot issue. Almost 40 people spoke out at the Eugene Water and Electric Board's public forum on the potential sale of the property. (more...)
Forum split on EWEB site sale
By Joe Harwood
The Register-Guard | March 3, 2005 |
Opposition to a potential sale of the Eugene Water & Electric Board's downtown campus to Triad Hospitals Inc. marginally outpaced support Wednesday night.
About 80 people showed up at the second public forum held to gauge interest and opinion on the possible sale to Triad, which wants to build a five-story McKenzie-Willamette Medical Center on the site. (more...)
Letter -- Take a lesson from San Antonio
By Diane Anderson, Springfield
The Register-Guard | March 6, 2005 |
Regarding the ongoing battle over who should buy the Eugene Water & Electric Board property (Register-Guard, Feb. 25), I'm wondering if anyone on the Eugene City Council -- Bonny Bettman in particular -- has ever heard of San Antonio, Texas.
Are they aware of what San Antonio did with similar property on the San Antonio River in the downtown area? Those Texans had the foresight and intelligence to make it into a delightful River Walk of restaurants, hotels and -- perish the thought -- commercial developments. If Bettman really speaks for the majority of the City Council, I feel very sorry for the ill-served people of Eugene.
Letter -- Riverfront access plan flawed
By Jerry Diethelm, Eugene
The Register-Guard | March 6, 2005 |
The plan for the federal courthouse neighborhood is to "Return to the River" in a series of trenches. Make an effort to visualize the proposal three dimensionally and I think you will see what I mean.
Imagine yourself standing alongside the road at the proposed railroad underpass, which would put you about 16 feet down below grade, and walk through the underpass. Where do you end up? What do you see?
You end up looking at a 16-foot wall and find yourself at the bottom of a two-block-long ramped trench that climbs up along the tracks to the downtown riverfront. This is not a pleasant downtown-to-river connecting experience.
But it gets worse, because in order to get to the place we started under the tracks, it is necessary to start ramping down Eighth Avenue at the courthouse intersection until it dead ends into the new Patterson Street extension to the underpass. Eighth will need to have sunken at least 10 feet at the Eighth and Patterson intersection in order to be able to duck under the new Sixth Avenue state highway extension from Broadway and Hilyard streets. In order to get down fast enough, the Patterson extension itself has to start sloping down toward the tracks just north of Broadway.
OK, I dissent. I don't really think anyone will want to return to the downtown riverfront this way, hospital or not. Oh, Eugene! If folly were cake, we'd all be fat.
Letter -- Bettman remark misrepresented
By Jack Roberts, Executive Director, Lane Metro Partnership, Eugene
The Register-Guard | March 6, 2005 |
I commend The Register-Guard for saying in its Feb. 27 editorial, "Let facts, not feelings, determine fate of EWEB." However, the newspaper could start by taking its own advice.
The editors might begin by quoting Councilor Bonny Bettman accurately in regard to her testimony before the Eugene Water & Electric Board commissioners.
I attended the EWEB hearing and subsequently reviewed in writing Bettman's testimony. At no time did she say that the City Council would only rezone the property for a hospital. Instead, she accurately pointed out that the City Council has approved resources to deal with the myriad challenges facing any development at the EWEB site (specifically, although not exclusively, transportation issues), but only for a hospital. These resources, at least as presently approved by a unanimous City Council, would be forfeited if a hospital were not developed there.
One could reasonably infer from her testimony that any other development of the EWEB property would be problematic, not impossible. Those of us who heard other testimony against any new development at EWEB would be hard-pressed to disagree with her conclusion.
EWEB manager's strong performance nets 4% raise
By Carolyn Lamberson
The Register-Guard | March 2, 2005 |
Commissioners of the Eugene Water & Electric Board on Tuesday gave utility manager Randy Berggren a 4 percent pay raise and a positive performance evaluation. (more...)
Health Care
State tries its own discount drug plan
By Tim Christie
The Register-Guard | March 2, 2005 |
Oregon seniors now have a new option for saving money on prescription drugs.
The Prescription Drug Purchasing Program, a state program, allows participants to save an average of 30 percent on their medications and, in some cases, up to 60 percent.
Discount cards were mailed this week to about 1,200 older Oregonians who have signed up so far, out of about 120,000 who are eligible.
To qualify, a person must be 54 or older with income under 185 percent of the federal poverty level. For a single person, that's $1,435 a month; for a married couple, it's $1,925 a month. (more...)
Unanimous House champions women's health mandates
By Niki Sullivan
The Associated Press | March 1, 2005 |
SALEM -- Two bills to guarantee permanent insurance coverage for women's health unanimously passed in the House on Monday after emotional testimony from Republicans and Democrats.
The bills would require employers to provide insurance coverage for pregnancy, childbirth, mammograms, pelvic exams, Pap tests and clinical breast exams.
Similar laws have been on the books in Oregon since 1993, but each had a built-in expiration date, so lawmakers had to pass the bills every six years to guarantee coverage. (more...)
Bills aim to cut hospital costs
By David Steves
The Register-Guard | March 4, 2005 |
SALEM -- Runaway health care costs and a fast-growing population of Oregonians with no health insurance have prompted lawmakers to target the state's hospitals.
Lawmakers are considering at least three bills that seek to tackle rising medical costs, especially for the uninsured, by limiting what hospitals charge, how they spend their money and who they can bill.
But the hospital industry says it will fight the measures, which it characterized as well-meaning but misguided. (more...)
Governors resist Bush move to cut Medicaid
By Robert Tanner
The Associated Press | March 1, 2005 |
WASHINGTON -- After meeting with President Bush, governors expressed concern Monday that the administration's proposal to cut some $40 billion from the Medicaid health insurance program for the poor would further strain already tight state budgets. (more...)
Nearby Developments
Letter -- Public will pay for fee increases
By Jim Britton, Springfield
The Register-Guard | March 2, 2005 |
Is Eben Fodor purposefully perpetuating the myth that anyone other than the public will be paying for the rate increases to review land use applications (Register-Guard, Feb. 19)?
Zone change, property line adjustment, lot partition, site review and conditional use permit fee increases -- from 31 percent to 78 percent -- will be added to the public's cost of purchasing a home. Roxie Cuellar, government affairs director of the Homebuilders Association of Lane County, shares my concern that "these increases are huge."
The fee increases will now be added onto the spiraling land costs created by the stagnant urban growth boundary. Beginning March 1, a building lot that requires a zone change, property line adjustment, lot partition and conditional use permit will cost the home builder (the public) an additional $3,771 on top of rapidly increasing costs for land and building materials.
Cuellar thinks the city is recovering more of its costs to process applications than it claims and has asked for a more detailed accounting. City planner Steve Nystrom says it takes time to review applications because the city's land use code is complex. Have we gone too far in regulating each other?
If this move to increase application review fees is part of government's reaction to Oregon voters passing property tax limitation measures, then I suggest that government employees adopt the reaction I expected when I voted for those measures: Put the emphasis on doing their jobs more efficiently.
Ann Vaughn -- Land swap deal makes sense for Santa Clara
By Ann Vaughn
The Register-Guard | March 3, 2005 |
Residents seldom, it seems, have an opportunity to participate in decisions about what growth in their neighborhoods will look like. But such an opportunity has presented itself in Santa Clara.
This opportunity is embedded in the land swap proposal now being considered by the city of Eugene. The swap would expand the urban growth boundary north of Santa Clara in exchange for some land in south Eugene's Laurel Hill Valley. The McDougal family owns most, if not all, of the land involved. The exchange gives the city much-needed parkland and open space. (more...)
Group to ask for public arena hearings
The West University Neighbors also approved a resolution to ask for improved services for parolees
By Meghann Cuniff, Senior News Reporter
Oregon Daily Emerald | March 4, 2005 |
University, city and county officials will soon be presented with a request from the West University Neighbors to hold public hearings to allow citizens a voice in the administration's plans for a new basketball arena. The neighborhood association unanimously approved the resolution in a two-hour meeting attended by more than 30 people Thursday night at Central Presbyterian Church. (more...)
Transportation
Federal money to be slated for road projects
SPRINGFIELD -- Millions of dollars for transportation projects may be coming to Oregon.
A bill being pushed along by Rep. Peter DeFazio (D-Oregon) would allocate $90 million to southwest Oregon and help pay for a variety of transportation projects, including one in the city of Coburg, (more...)
DeFazio working for highway, transit projects
| The Register-Guard | March 3, 2005 |
U.S. Rep. Peter DeFazio is trying to bring home the bacon for Lane County and Southwest Oregon.
The Springfield Democrat on Wednesday announced that he is making progress securing $90 million in funding for Oregon highway and transit projects under the proposed Trans- portation Equity Act. The six-year, $284 billion funding bill was approved by the House Transportation and Infrastructure Committee. DeFazio is ranking member of that panel's Highways, Transit and Pipelines Subcommittee. (more...)
Cities may lose funds for roads: Even if feds come through, county may keep the cash
By Amber Fossen
The Springfield News | March 4, 2005 |
Roughly 15 years ago, under an urban transition agreement, the City of Springfield made a deal with Lane County. The city took over responsibility for land-use planning in the urban fringe and for roads as they were annexed. In exchange, the county agreed to pass along federal road funds.
But times have gotten tighter since then, and the county is now considering backing out of its end of the deal -- leaving the city with the responsibility it assumed but not the financial backing. (more...)
Eugene City Beat: Road trip
By Edward Russo
The Register-Guard | March 6, 2005 |
Along with other Lane County elected officials, Mayor Kitty Piercy and Councilor Gary Pape were in Washington, D.C., last week to lobby for federal funding of local projects.
They got some good news while they were there. Rep. Peter DeFazio announced that the House Transportation and Infrastructure Committee had endorsed a funding bill that would include money for Eugene priority projects, including $20 million for upgrades to the Interstate 5-Belt Line Road interchange, and $2.9 million for the proposed Delta Ponds bike and pedestrian path.
The bill still must be debated by the House, a companion bill approved in the Senate, and a conference committee from both chambers must resolve differences before the bill is sent to the president for signature.
While they were in the nation's capital, Piercy, Pape and Jason Heuser, the city's government relations manager, lobbied for other items on the city's wish list, including a study that could lead to waterway restoration projects and a request for $2.9 million to construct the second building of the West Eugene Wetlands Education Center. Piercy said she likes the wetlands project because the center could help students learn science and math.
Editorial -- Using your tax money to take away your vote
| The Springfield News | March 4, 2005 |
With profound apologies to H. Ross Perot (remember him?), can you hear that giant sucking sound? That's money being siphoned out of your wallet by the Oregon Department of Transportation.
Right now, the department is in the process of spending something like $2 million testing a new program under which the state would track your car with a GPS device.
That's right! Now you won't have to be a convicted felon on house arrest to wear a monitoring device transmitting your whereabouts to the government. In exchange for the "privilege" of driving a car, you'll sign your rights away. And best of all, you'll get to pay the costs to set it up. (more...)
Lane Transit District: Views
Letter -- LTD holds key to changing negative trend in America
By Vernon Bell, Springfield
Oregon Daily Emerald | February 28, 2005 |
I wonder what would happen if a group of people united and stood up for themselves against an employer and got fully paid medical insurance and a living wage. The group is ATU Local 757, the union representing the workers of Lane Transit District. Do you think this might help other workers in the area? I do.
We are quick to say, "They are getting to much." Maybe we are not getting enough. Wouldn't it be better to lift ourselves up to a living wage and fully paid health insurance than to drag them down? If we support the workers at LTD we can change a trend in America. If one group can win, then all workers win. LTD belongs to the people of Lane County, not Ken Hamm or Gerry Gaydos. They do not have to respond to the people; they will keep their jobs no matter what they do to your transit system. If we all stick together, we will all win.
Ken Hamm -- Manager: LTD looking to the future
By Ken Hamm
The Register-Guard | February 28, 2005 |
Thirty-five years ago, I began my career in transit as a bus driver. As a driver, I learned about the needs of the people I served. I learned about guest service, and I learned to politely respond to every situation that confronted me. (more...)
Letter -- Taxpayers need a voice at LTD
By Louise Miller, Springfield
The Register-Guard | March 2, 2005 |
We're self-employed and live a mile from the nearest bus stop. We receive no service or benefit from the Lane Transit District, but we get to pay the LTD tax on every cent in payroll -- and then we get to pay 100 percent of our medical insurance.
While we have to manage every cost and work for every dollar of our income, the LTD board grabs money effortlessly by imposing its 0.6 percent payroll tax and simply raises it when it is deemed necessary. Both the board and the employees of LTD need to remember where this money comes from: the hard work of self-employed neighbors.
This is unfair, and I am tired of subsidizing the bus system without a voice in the matter. It's time for wage-payers to be heard.
Letter -- LTD riders should not pay for passes
By Christine Gherardi, Springfield
The Springfield News | March 2, 2005 |
Attention all LTD customers! No service -- no bus pass purchases!
Since the LTD drivers are being forced into a strike, we have no need to purchase bus passes for March.
That will include "Employer Group Bus Passes." Seems to me that group passes are an implied bargain between LTD and the employers -- guaranteeing service for those employees. Am I wrong?
I am encouraging all members of our communities to stand on the sidewalks in support of our bus drivers, starting March 7. A show of support in numbers will be a strong message.
Bob Welch -- Riders depend on bus system to find a way
By Bob Welch, Columnist
The Register-Guard | March 3, 2005 |
At the Lane Transit District's Downtown Station on Tuesday, a woman wearing a mauve coat and holding a white, red-tipped cane awaits her bus. It arrives. A man next to her, with disabilities of his own, helps her up and, together, they shuffle to get aboard.
What, you wonder, happens to this couple on Monday if the Amalgamated Transit Union goes on strike? What happens to lots of folks who are dependent on bus service? The folks who have no other transportation and an unforgiving boss? Or are too old to drive? Or are special-needs students? What happens to them? (more...)
Letter -- LTD operates with public money
By Jeff Ernst, Eugene
The Register-Guard | March 3, 2005 |
Since the major sources of capital for Lane Transit District are taxes and federal and state grants -- the public's money -- it seems appropriate that the Amalgamated Transit Union might be a little more willing to accept some of the health insurance cost responsibility as is widely required in the private sector.
Government money being spent on such enterprises in other parts of the country would be most likely labeled pork. Of course, in our back yard it is legitimate and necessary.
I am not against the investment in public transportation, but I cannot support empire building bureaucrats or employees who seem to have forgotten who fills the trough at which they feed.
Valerie Harris -- LTD must return to serving people
By Valerie Harris
The Register-Guard | March 4, 2005 |
In his Feb. 28 guest viewpoint, Lane Transit District General Manager Ken Hamm said that he wanted to expand LTD's services, to reach more people and provide better bus service.
But actions speak louder than words, and Hamm's actions say he is committed to cutting service. (more...)
Editorial -- Bus wreck: Step back from brink of LTD strike
| The Register-Guard | March 5, 2005 |
In what may prove to be the final hours before a strike that could begin Monday, the Lane Transit District board of directors' take-it-or-leave-it stance leaves little room for compromise. That places the district's workers in a position where they are being asked to be flexible without the prospect of reciprocal accommodations from management. It's a bad situation -- but a strike would be even worse. (more...)
LTD Rollback -- March 4, 2005, Advertisement
| ATU 757 Lane Transit District Workers | March 4, 2005 |
It's A Matter of Choice...
LTD General Manager Ken Hamm and the LTD Board of Directors have chosen to force LTD workers into a strike. Thousands of people are going to be left stranded. (more...)
LTD Rollback -- March 7, 2005, Advertisement
| ATU 757 Lane Transit District Workers | March 7, 2005 |
We, the bus riders of Lane Transit District, support our LTD bus drivers, mechanics, and customer service workers. We call upon the Board of Directors of LTD to treat these workers with respect and bargain a fair contract that protects their health and maintains safety standards. (more...)
Lane Transit District: News
Looming LTD Strike May Be Avoided
A looming LTD bus driver strike may be avoided. The Transit District and the driver's union are unexpectedly heading back to the bargaining table, after a state mediator called them back.
(more...)
Legal Action Taken To Stop LTD From Cutting Back Safety Inspections
Four people are trying to stop the Lane Transit District from from cutting back on safety inspections.
The legal papers were filed Tuesday (Feb. 22, 2005) morning in Lane County Court.
This all comes down to bus safety... according to the people behind the injunction.
The challengers want a judge to stop LTD from making a change to the time spent inspecting buses. (more...)
LTD Talks Continue
EUGENE -- Talks continue between the Lane Transit District and its bus drivers. While neither side is talking to the media, one local citizens group is. Committee Co-chair Joan Pierson says LTD and union members seem to be playing hardball in their bargaining, and that has once again put negotiations at an impasse. As a result, the committee has unanimously voted to draft a report to put pressure on both parties to bargain with a more open-minded attitude. (more...)
Bus Talks Stalled
EUGENE -- Labor talks remain stalled at the bus stop for Lane Transit District and union-represented workers.
Officials say that time is running out to avert a strike.
One more mediation session is on the table for next Friday in Eugene, the last chance to avoid a strike.
Both sides expressed disappointment with yesterday's bargaining talks with the mediator. (more...)
Union sets strike date of March 7
LTD and the union representing LTD drivers will attempt to resolve their disagreement Friday
By Meghann Cuniff, Senior News Reporter
Oregon Daily Emerald | February 28, 2005 |
University students and the campus community will be without bus service during Dead Week and Finals Week if Friday's bargaining session between Lane Transit District and the union representing more than 75 percent of its employees fails to produce a contract agreement. The union has declared a strike date of March 7. (more...)
LTD and the union head back to the table
LTD and the union will be heading back to the bargaining table Friday morning. Thursday night the ltd board and the union held separate meetings to make a game plan for what is expected to be a long day. (more...)
Hearing on changes to bus inspections delayed
| The Register-Guard | March 2, 2005 |
A court hearing set for Thursday on whether Lane Transit District can shorten daily bus inspections has been postponed to next Wednesday, the court said Tuesday. (more...)
LTD buses could stop moving Monday
By Matt Cooper
The Register-Guard | March 4, 2005 |
After a Thursday night strategy session, the Lane Transit District warned that today's make-or-break contract negotiations with its union might not be successful, prompting a likely strike by bus drivers Monday. (more...)
Still no solution in sight for LTD bus fight
By Amber Fossen
The Springfield News | March 2, 2005 |
This Friday will mark the last planned negotiation session between Lane Transit District and the Amalgamated Transit Union Local 757.
And Monday, March 7, marks the first day local residents will be without transit services should both parties fail to reach an agreement, which has been an elusive goal since negotiations first began last May.
Carol Allred, executive board officer for the transit union division 757, said the union is hoping for the best and preparing for the worst case scenario: a strike. (more...)
LTD Strike
EUGENE -- We see them driving on the road every day, but after the weekend there could be no sight of any Lane Transit District busses on the road. (more...)
LTD, union negotiating; schools ready for strike
EUGENE -- Friday is the last scheduled day for mediation between Lane Transit District and the Amalgamated Transit Workers Union its workers union.
If no contract settlement is reached, workers plan to strike Monday, March 7th. (more...)
LTD: Options in the Event of a Strike
If LTD bus workers go out on strike Monday, log on to LTD's website for information on carpools and other transportation options: http://www.ltd.org
University of Oregon Information: http://safetyweb.uoregon.edu
Strike is Imminent, says LTD Union
Talks between LTD and its transit workers union fell apart once again Friday evening. The union announced it will strike, beginning this Monday morning at 12:01am.
This Sunday night at 8 pm, union members will have one more chance to vote on LTD's final contract offer. If they deny the offer, the union says, the strike will occur.
Stay tuned to KEZI-TV for the latest on this potential strike. For more information, you can also log on to http://www.ltd.org
LTD Strike
EUGENE -- It's looking more likely that local bus riders will be without transportation come Monday.
Friday's contract talks between Lane Transit District and the bus drivers union have not resulted in an agreement. Union officials say their members are ready to walk.
Meantime, students and faculty at both the high school and college level are among the thousands of people who rely on LTD. Most of the schools have plans in place. (more...)
LTD Strike
EUGENE -- It's looking more likely that local bus riders will be without transportation come Monday. (more...)
LTD Talks Break Down
Just before 6:00 pm Friday night, Lane Transit District and the Transit Union announced talks had failed and the Union will strike at 12:01 Monday March 7. The Union will vote on the decision to strike Sunday March 6. If the Union approves a strike, bus service by LTD will end at 12:01 Monday March 7. Stay tuned to KMTR NewsSource 16 for the latest on this developing story.
LTD/ATU meeting a final try for resolution
If the parties do not come to an agreement today, the union will strike on Monday of Dead Week
By Meghann Cuniff, Senior News Reporter
Oregon Daily Emerald | March 4, 2005 |
Bus service will likely cease in Lane County on Monday if today's mediation session between the Lane Transit District and the Amalgamated Transit Union Division 757 does not produce a contract agreement.
ATU has declared a strike date of March 7, the first day of Dead Week at the University. If bus drivers strike, the University will be sharing a free shuttle service with PeaceHealth Medical Group, open to anyone with a University student identification card. (more...)
LTD talks don't yield hoped-for labor pact
By Matt Cooper
The Register-Guard | March 5, 2005 |
Union workers in the Lane Transit District will vote Sunday night on a contract proposal rejected by union negotiators Friday, with the prospect of starting a strike at midnight if the offer is turned down.
The district and its union emerged from an all-day bargaining session at odds over the same issue -- rising personnel costs -- that has stalled talks since the last contract expired 10 months ago.
Carol Allred, a bus driver and negotiator with Amalgamated Transit Union Local 757, said she expects the union to reject the offer but members want to see the proposal, hear the negotiating team's concerns and vote on it. (more...)
LTD faces possible strike at midnight
EUGENE -- The union representing transit workers in Lane County is threatening to strike first thing Monday morning.
The union and the Lane District Transit authority have been unable to reach an agreement on health care and other work rule changes.
Andy Vabora, a spokesman for the Lane Transit District, said the district had made some significant concessions at their last round of bargaining talks on Friday.
But Union Vice President Jonathan Hunt says the workers will strike starting at 12:01 a-m on Monday morning.
Hunt says that he is "100% positive the union membership will vote down the latest offer unanimously" at their meeting Sunday night.
No future negotiations have been scheduled.
Strike Is Imminent; Union Prepares For Picket Line
Just about thirty hours from now LTD bus drivers are expected to go on strike.
Members of the bus workers' union will take an official vote Sunday night -- on whether a they will strike.
But so far -- given the stalled contract talks -- union leaders say a strike appears likely.
Union members spent Saturday -- getting ready. (more...)
Transit workers prepare to strike
By Rebecca Nolan
The Register-Guard | March 6, 2005 |
Calling a transit strike a certainty, Lane Transit District union leaders and workers began preparing Saturday for what they hope will be a short stint on the picket line.
Union leaders expect members to reject LTD's most recent contract proposal in a vote at 8 tonight at the Hilton Eugene, making a threatened strike inevitable. (more...)
LTD Bus Workers On Strike
Members of the Amalgamated Transit Union, Local 757, are officially on strike.
Sunday night, union members considered Lane Transit District's final contract offer.
Union members overwhelmingly voted to reject the contract. That means bus drivers will go on strike, as threatened, as of March 7, Monday morning.
LTD buses will remain parked throughout the duration of the strike. Picketers will target a handful of locations around the Eugene area.
LTD Buses Parked
EUGENE -- It's official.
The Amalgamated Transit Union voted overwhelmingly Sunday night to refuse the Lane Transit District's latest offer, clearing the way for the ATU to go on strike.
The final vote was 9 votes in favor of the contract offer, and 188 votes against.
So at 12:01 a.m. Monday, ATU members will be walking the picket line, instead of picking people up at the bus stop. (more...)
Newssource 16 Update: LTD Workers On Strike
The LTD strike is on.
Lane Transit District union members voted Sunday night to begin striking at 12:01am Monday morning.
Tune to KMTR NewsSource 16 at 5:30am, 6am, 6:30am, 7:25am, 7:55am, 8:25am and 8:55am for the latest details on the strike.
On Monday morning, KMTR NewsSource Today will have live coverage on how the strike is affecting morning commuters.
For information on alternative transportation for LTD riders, click on Featured Links on kmtr.com. For further updates, tune to NewsRadio 1120 KPNW.
Other News
Eugene City Beat: At annual retreat, officials get eight priorities straight
By Edward Russo
The Register-Guard | March 6, 2005 |
After recently putting their brains together, Eugene city councilors have figured out eight priorities to concentrate on for the next year or two.
The brainstorming took place last weekend in a two-day retreat for councilors, the mayor and top city managers. The meetings were led by a facilitator from out of town. The sessions were away from City Hall, at the Valley River Inn.
One of the eight goals reaffirmed the city's commitment to help find a hospital site in or near downtown. Since the council endorsed that idea last year as its sole priority, City Manager Dennis Taylor has been working to help bring McKenzie-Willamette Medical Center to the Eugene Water & Electric Board site. (more...)
Measure 37: Views
Ken Sherman -- Measure 37
By Ken Sherman, Oregon Bankers Association
Banking Matters | |
Bankers are used to dealing with moving targets. Neither banks nor their customers live in static, unchanging worlds. Bankers base loan decisions on a whole range of assumptions, pertaining to such things as the future health and direction of the general and local economies, the future physical and financial health of the borrower, the borrower's integrity and managerial capabilities, the availability of raw materials and labor, and so forth. When those assumptions prove to be generally correct, the loan gets repaid on time and without incident. When the assumptions prove to be faulty, the bank may end up with an under-performing or non-performing loan on its books.
Lenders typically make lots of assumptions about the collateral they take to secure loans, including, in the case of real property, that it will retain its value and continue to be available for the uses to which it has historically been devoted. The recent passage of Ballot Measure 37 will undercut these assumptions in many cases, and will almost certainly make real estate lending more unpredictable. Measure 37 gives Oregon property owners the right to make claims against state and local governments for loss of property value resulting from the enforcement of certain land use regulations, such as zoning ordinances.
While much of the post-election discussion in the media has focused on the impact of Measure 37 on farm and forest lands, the provisions of the measure apply with equal force to urban properties. A Measure 37 claim can only be made after a new land use regulation is adopted or an existing regulation is applied to or enforced against the claimant's property. To make a claim, the property owner must show that the regulation in question has reduced the value of the property. The government then has 6 months to either pay the claim or waive or modify the regulation. If the government denies the claim, or takes no action, the owner can go to court and get a judgment for the claim, together with costs and attorney fees.
Because state and local governments are generally strapped for cash and have no resources with which to pay claims, the expectation is that in most cases, the government will waive or modify the regulation so as to eliminate its negative impact on property values, rather than paying the claim. One important limitation on these claims is that the regulation in question must have come into existence while the owner or a "family member" owned the property. This limitation has important ramifications for mortgage lenders. If, for example, the property in question has been in the current owner's family for generations, virtually all land use regulations that now apply to the property may lower its value. So long as a family member owns the property, the owner should be able to either recover compensation or get the offending regulations waived or modified to permit the range of development that was allowed when the family first acquired the property. But what if the owner has mortgaged the property, and a default results in foreclosure and acquisition of the property by the bank or by a third party purchaser? The benefits of Measure 37 are personal to the family who owned and mortgaged the property, and won't follow the property when the bank or third party becomes the owner.
Consider the family that has owned its 50 acre farm for generations. Under current EAU zoning, the farm is worth $500,000, but if the exclusive farm use restrictions are lifted, the property could be subdivided into 200 lots having a total value of $5 -- 10 million. The owner files a Measure 37 claim and when the county decides that it is not willing to layoff the entire sheriff's department for three years to pay the claim, it waives the EFU zoning restrictions. The owner then gets preliminary approval for the subdivision of the property, borrows $1,2 million from the bank to finance the subdivision improvements, and defaults on the loan midway through the construction process.
If the bank forecloses its mortgage and becomes the property owner, the waiver of zoning restrictions won't apply to it or to any third party to whom the property is sold (unless the third party is a "family member" of the owner-borrower). The bank ends up with a significant exposure on a loan it thought was over-collateralized. Since the right of compensation or waiver under Measure 37 is personal to the family that owned the property when the offending regulation went into effect, it is not entirely clear what a property's use status will be once the family disposes of the property. Assume for example, that the property in question is a 10 acre parcel zoned EFU, on which Jones, the long-time owner, has previously been unable to build a home. Jones files a Measure 37 claim, gets the EFU restrictions waived, and builds his house. Three years later Jones sells the property to Smith, in a transaction financed by the bank. Since Smith is unrelated to Jones, it is not clear under Measure 37 whether or to what extent the waiver obtained by Jones applies to Smith and successive owners. Is the house Jones built still legal? Can Smith put an addition on it?
At this juncture, no one knows for sure. But at least one commentator has said that governments may be able to provide that a waiver of the previous land use regulations is void upon a claimant's transfer of the property, and that governments that wish to so provide should record a statement in the real property records to the effect that the waiver expires upon transfer of the property. It is unlikely that in the above example the government would force Smith to tear down the house that Jones built; but if Jones gets the waiver and then transfers the property to Smith before building the house, its unlikely the government will allow Smith to proceed with the construction. What if Jones dies the middle of construction, and ownership of the property passes to an unrelated 3rd party, or to the bank financing the construction? Will the local government permit the new owner to complete the construction? The bank may need to require Jones to obtain credit life insurance, at least during the construction period.
Definitive answers to this and many other questions will undoubtedly have to be sorted out by the courts. Meanwhile, the Jones of this world (and the banks that finance their real property purchases) will need to do careful due diligence in assessing the possible impacts of Measure 37.
Measure 37 may also contain hidden perils for banks that lend on urban properties, and will impact many properties where no Measure 37 claim is filed. Assume for example that the bank's customer finances his purchase of a commercial office building with a loan from the bank. An adjacent property has been in the same ownership for the past 30 years, during which time it was "down zoned" from General Industrial to Commercial Office. The owner of the adjacent property files a Measure 37 claim, and the government waives the down zoning, whereupon the owner constructs a rendering plant or a cement plant on the property. The adverse impact on the mortgaged property results in major vacancies in the office building, which triggers a loan default. Once again, the bank may find itself under-collateralized.
A number of local jurisdictions are considering adoption of ordinances that would grant "private rights of action" to citizens, allowing them to sue for compensation from neighbors whose Measure 37 claims have reduced the value of neighboring properties. Another unanticipated collateral impact of Measure 37 arises where, for example, the bank has a mortgage on a 10 acre parcel that is located just inside the urban growth boundary. Because the parcel is inside the UGB, it can be developed into high-end 1/2 to 1 acre home sites under the current regulations. Up until now, such properties have been highly valued and sought after because of their relative scarcity. But under Measure 37, many of the properties outside the UGB may be available for urban development, thereby eliminating the scarcity and reducing the value of the subject parcel.
These are just a few of the questions and issues that bankers will need to ponder as we move into the brave new world of Measure 37. The courts and/or the legislature may act in the months ahead to sort out these and many other questions that are being raised about this measure. In the meanwhile, we will continue to pass on new information and ideas on how lenders can protect themselves against the adverse impacts of Measure 37.
Russell Sadler -- The Unexpected Face of Measure 37
By Russell Sadler
BlueOregon | March 6, 2005 |
Measure 37 finally has a face -- a most unexpected and human face -- and it isn't dour Dorothy English of the TV commercials. Former Oregon House Speaker Lynn Lundquist, now a lobbyist for the Oregon Business Association, was a vocal opponent of Measure 37. Like many experienced lawmakers he could not figure out where the money to pay for it would come from.
Last week Lundquist announced he has filed a claim for compensation under Measure 37. He owns about 300 acres of land zoned for farm use in Crook County. He grows mint and grain. Lundquist wants to subdivide part of the 300 acres into 33 nine-acre lots which he estimates will be worth about $4 million.
Under Measure 37 as its proponents interpret it, the county must either pay Lundquist the difference between the land's market value as agricultural land and the $4 million it may be worth subdivided or waive the zoning and let the subdivision proceed.
"I thought this was an opportunity I probably should not forego," Lundquist told The Oregonian.
It's hard not to be sympathetic. It's difficult to make a living farming 300 acres. Since the passage of Oregon's landmark land use laws in 1973, the solution to Lundquist's dilemma has been selling his 300 acres to some neighbor who will continue to farm it. This long-standing policy prevents the development of uses incompatible with agriculture which could jeopardize even more agricultural land.
The problem for farmers like Lundquist is the value of land used for agriculture is far less than the same land subdivided. Measure 37 represents a new attitude of a generation of Oregonians and many new arrivals who do not share the attitudes toward growth and sprawl and the often incompatible effects it has on neighboring properties that Oregonians held in the late 1960s and early 1970s. This new generation is unwilling to wait for urban growth to reach their land. They want their money now.
This raises the question that has been studiously ignored since the 1970s. Why is Lundquist's land worth his estimate of nearly $4 million?
The reason for the higher value of subdivided land is the public investment in infrastructure that makes subdivided land salable -- publicly financed investments in streets and roads make the land accessible. The taxpayers provide schools, police and fire protection. As rural subdivisions become more dense, taxpayers provide water and sewers, parks and playgrounds. In rural eastern Oregon, the public provides electricity. The public provides or promises basic services consumers demand.
In recent years, property tax limitations reduced the amount of this public development subsidy from general property taxes. But the public costs have not gone away. They are increasingly financed with fees and systems development charges on new construction. Without this public investment, agricultural land is worth just what it can bring in from the crops it grows.
Measure 37's proponents argue the government gets increased property taxes from the increased value of the land. That is misleading. Property taxes don't even pay the construction and operating costs of that public investment. The public never gets a return on its money the way private investors get a return on their money. The public investment is considered a "public good" for the benefit of all. In exchange, the public claims the power to "reasonably regulate" land use.
Measure 37 radically moves the goal posts for "just compensation" to a standard much lower than the U.S. Supreme Court requires for "taking" private property, but provides no money to pay the claims.
Despite Measure 37's approval by 60 percent of the voters, I suspect Oregonians will not tolerate cities and counties waiving zoning and permitting incompatible uses in their neighborhoods very long. That will bring up the inevitable question over how to pay compensation claims. The first choice will certainly be a tax on the difference in value between the agricultural value of Lundquist's 300 acres and the $4 million he claims he can make subdividing it. If the public no longer has the power to "reasonably regulate" land use, it deserves a return on the investment that makes subdivided land so much more lucrative to the private owner.
That is the way former Gov. Tom McCall wanted to pay compensation claims in 1973. But Oregon's development and real estate lobbies were obstinately opposed and the compensation issue reached a stalemate and festered -- until now.
Lawmakers should forget efforts to "fix" Measure 37. They should let the courts decide whether it is so badly written that it is "unconstitutionally vague." Lawmakers should spend the interim between legislative session studying ways to raise the money to pay off these compensation claims if Measure 37 passes constitutional muster. The issue cannot be swept under the rug for another 30 years.
Editorial -- The downside of Measure 37
| The (Albany) Democrat-Herald | February 28, 2005 |
Measure 37 has prompted a rash of land divisions and development proposals in central Oregon. This will destroy part of the appeal of that area, but that's the price of freedom.
Bend, Redmond and Sisters all are expanding at a great clip. People want to move there by the thousands. Land prices have skyrocketed as a result.
Measure 37 allows landowners to petition for a waiver of regulations that prevented them from splitting up their farms into smaller lots. The Oregonian reports that even Lynn Lundquist, a former legislator who had opposed the initiative, now has filed a Measure 37 claim so he can split his 300-acre farm into 33 nine-acre lots.
Real estate agents report that even as additional building lots become available, it's not likely to be enough to fill the demand.
All this is bad news if you liked the Oregon high desert the way it was -- remote, grand in its expansive scenery, sparsely settled, wide open, a place where people could go to be left alone.
That will change. Mansions and lesser houses are going to dot the landscape, traffic will increase along with strip malls and boutiques, and what used to be a remnant of the American West will gradually turn into something else, something more modern and bustling. (more...)
Editorial -- Fix flawed measure: AG's opinion says claims not transferable
| The Register-Guard | March 4, 2005 |
A new opinion by Oregon Attorney General Hardy Myers underscores the urgent need for the Legislature to reform the legal abomination known as Measure 37. (more...)
Editorial -- Opinion would wipe out M37
| The (Albany) Democrat-Herald | March 3, 2005 |
Hardy Myers has issued an opinion on Measure 37 that plainly goes against the intent of this initiative. Surely that's not what an attorney general should do if he's interested in representing the people of his state. (more...)
Letter -- Measure 37 has rural opponents
By Mona Linstromberg, Veneta
The Register-Guard | March 5, 2005 |
I take issue with those who lump all Measure 37 opponents in the category of city dwellers, considering there are several Oregon farm bureaus participating in the Measure 37 legal challenge.
I live in rural Oregon and own 40 acres of timbered property bought in 1973, prior to meaningful land use regulations. As a fourth generation Oregonian, I support the land use laws and have no problem with not being able to subdivide my property -- probably to the relief of my neighbors, who bought their 40 acres knowing that none of us could subdivide our properties.
It is not just rural families who want to share a homesite with family members who are seeking personal benefit under this measure. In Veneta, a demand has been filed by a property owner residing in California who owns 27 acres of land in a floodplain that is the drainage for much of Veneta's wetlands. This property has an assessed market value of $247,000 but receives a forest deferral, assessing property taxes at $130 per year. This demand seeks a waiver of regulations for development in the greenway subzone and floodplains, or $500,000 compensation. If this property is developed without regulation, I shudder for those property owners downstream who will bear the brunt of future flooding.
So whose property rights should we be concerned with?
Measure 37: News
Much ink spilled over Measure 37
By David Bates
The (McMinnville) News-Register | March 5, 2005 |
Time for a pop quiz, so get out your pencils and choose one of the following answers to finish the statement, "Measure 37 is ...."
a) A collision between two radically different visions of how cities should grow.
b) A positive result for the construction industry.
c) A truly radical moment in Oregon history.
d) A harbinger of the end of the United States.
OK, so it was a trick question. Measure 37 is all of these things, according to articles that have been published recently in a variety of sources -- the national press, a trade magazine and the alternative press. (more...)
Land use opinion clouds new law
By Joe Harwood
The Register-Guard | March 2, 2005 |
Property rights Measure 37 may not be the windfall some landowners had hoped, if an opinion the state issued Tuesday withstands a possible legal challenge.
In the opinion, Oregon's attorney general appears to prohibit property owners who win exemptions from land use restrictions under Measure 37, from transferring those rule waivers to a new owner.
A backer of Measure 37 labeled the state opinion as "beyond absurd." (more...)
State says waivers on land can't be sold
The nonbinding legal opinion on Measure 37 could hinder some development if altered property for sale is labeled nonconforming
By Laura Oppenheimer
The Oregonian | March 2, 2005 |
New state opinions on Measure 37 may limit development opportunities under the voter-approved property rights law.
The Oregon attorney general's office weighed in Tuesday on a list of questions about how the measure works, including one of the most controversial: Applicants who have planning rules waived cannot pass along their new development rights when they sell the land, state officials wrote in a formal opinion that backs up earlier statements.
Practically, this means only current owners of Measure 37 property could build new homes or businesses -- and they would be required to sell the structures as nonconforming uses. That designation makes lenders and insurers wary, and calls into question the ability to replace structures damaged by fires or natural disasters. (more...)
Only thing developed by Measure 37 is a headache
As claims grow, residents and officials agree the new law has made Oregon's once-predictable land rules about as clear as mud
By Laura Oppenheimer
The Oregonian | March 6, 2005 |
Crook County is suing itself.
Bankers and developers shy away from land deals.
Seminars distribute conflicting messages.
Three months into Measure 37, people on both sides of the new property rights law agree on one thing: Oregon is a state in chaos.
Some counties regularly dole out exceptions to planning rules while others let Measure 37 applications pile up, waiting for state guidance on how to respond.
And even as applicants sketch building plans and pick fabric samples, questions multiply about their ability to build. State officials say waivers aren't transferable to future owners; bankers have become skittish about financing Measure 37 properties; and sewer and water service for such development could be a mirage.
For the time being, Oregon -- long considered the national model for controlled growth -- has lost its sense of predictability. Land-use rules haven't always been popular, but they've been relatively consistent for everybody, from small businesses to suburban families to corporate farms. (more...)