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Managing growth in Montana

How the West was Subdivided


By Dana Green, 3-17-06

Spread across the dry hills west of Missoula, the Goodan-Keil neighborhood perches on a dusty ridge. With over 70 lots just outside of the city's limits, nestled around two winding streets, it looks like a typical aging subdivision in the West.

But Goodan-Keil, as residents and county officials have unofficially dubbed it over the years, never went through the subdivision review process, which includes a host of public meetings and scrutiny by county planning staff.

It's not a planned development, but a piecemeal division of the landscape.

With no zoning in rural Montana counties, that's how a majority of the state was subdivided – with little planning, one exemption and loophole at a time.

In the late 1970s and early 1980s, when developers bought the prime piece of Missoula real estate outside of town, the only requirement under state law was to have the land surveyed, and to file that certificate of survey – a single sheet of paper – with the county.

On the old maps, housed in the county surveyor's office, there is only an anonymous number to indicate a new lot had sprung up. Otherwise, the county and its residents had little to say over how the land was divided.

Just off U.S. 93, due north of the Wye, is another crazy quilt of development: 100-odd lots that come under the fanciful name of Meadows of Baron O'Keefe.

Like Goodan-Keil, the lots came into existence two decades ago, not as a subdivision, but haphazardly divided over time, carved into 10-acre lots and then even smaller ones.

For surveyor Dick Ainsworth, Goodan-Keil and Meadows are both glaring examples of how land got divided in Missoula County, and across the state, over the last two decades of growth.

From Potomac to Frenchtown, with no land use planning and little input from county residents, landowners and developers pretty much divided their land as they pleased.

"We thought no one would create 10-acre tracts, but that's exactly what they did," Ainsworth wryly said. "They did thousands of them across the state of Montana."

Ainsworth, who now works with PCI Consultants, has worked as a land surveyor and land use planner in Missoula County for well over three decades. A former president of the state association of surveyors, he helped craft the state's original Subdivision and Platting Act in 1973 ¬– the first real attempt to create oversight over the rapidly increasing division of land in Montana.

At that time, lawmakers thought that anything down to 10 acres really didn't have to go through subdivision review.

Landowners could legally divide property – no matter where it was located or how far from city infrastructure – into small residential lots.

Eager to maximize the value of their land, Montana landowners didn't stop at 10 acres.

Once the land was divided into 10-acre parcels, developers used a variety of subdivision exemptions on the books, primarily exemptions allowing owners to create new lots for family members, to divide into even smaller parcels.

Legislators quickly learned their lesson. In the next legislative go-round, state lawmakers bumped the minimum lot size to 20-acre tracts. But developers continued to carve up large, rural ranch lands, often prime agricultural property, into small lots.

Twenty years later, Montana subdivision law has changed dramatically.

Today, anything under 160 acres has to go through subdivision review – a big improvement, in Ainsworth's view.

"In retrospect, basing (subdivision review) on lot size was not a very good idea," Ainsworth said. "You shouldn't base land use planning on that. Now you have 20-acre tracts all over the place."

Subdivision exemptions, long used by some landowners to skirt review, have also come under closer scrutiny from lawmakers.

When the subdivision act was first passed, eastern Montana ranchers strongly lobbied for a special exemption from subdivision review. The exemption would allow them to sell off an acre or two if money was tight. Dubbed the "occasional sale," the legal exemption was quickly used as a tool to develop land without oversight.

Landowners could do one sale a year – with no minimum lot size, Ainsworth said.

"They were subdividing and not going through review – one- to five-acre tracts sprung up pretty quickly," he said.

Montana lawmakers also created the family transfer exemption – allowing parents to divide their land among their children without review. Thousands of legitimate family transfers allowed parents to create homes for their children at minimal cost. But with no limits on the number of family transfers possible, the exemption was quickly abused.

"We did thousands of them – people would divide a ranch into 20-acre tracts – do (several) family transfers to divide into 5-acre tracts, all without review," he said. "The day they did the transfer, the sale sign would go up."

In the last 20 years, the Wild West era of development in Montana has largely faded. Over a decade ago, lawmakers sacked the occasional sale exemption. With minimum lot sizes raised to 160 acres, far more land divisions came under the purview of county planners.

Through subdivision review, the public has been given more of a chance to weigh in over how land gets divided.

Denise Alexander, a senior planner with the Missoula City/County Office of Planning and Grants, has seen those laws change up close – creating more work for her staff, but also creating more public oversight.

Up until just last year, "minor" subdivisions in Missoula County – defined by state code as five or fewer lots – didn't have to go through any public process at all.

A major subdivision, larger than five lots, has to go through a lengthy public process in Missoula: Developers must post notices, mail letters to neighbors within 300 feet and hold a neighborhood meeting, and go through a public hearing before the City Council or county commission board.

But on many smaller subdivisions, county planning staff would voluntarily drive out to the building site and post a small sign – the only chance for neighbors to learn about the planned construction before the hammers started flying.

The 2005 Legislature changed the laws – now, all smaller subdivisions involving a previously divided tract of land go through full public review.

Although the change has created more work for county planners, it also gives the public a greater role in the process, Alexander believes.

"People will be notified more of development in their neighborhood – people who live nearby will know a subdivision is going to take place," Alexander said. "There will be a (more thorough) public process."

The family transfer exemption still remains, and some still use it to evade subdivision review.

But state and county officials are now taking a closer look at family transfers: In Kalispell, local officials have suggested a three-year moratorium after a family transfer before a parcel can be put on the market.

Flathead landowners, however, are up in arms over the proposed moratorium. To many Montana citizens, the pendulum of public oversight has swung too far in the other direction – creating an expensive and time-consuming process for Montana citizens who want to do a simple division of their land.

That is the viewpoint of Ainsworth, who believes the process has become completely unwieldy. In Missoula County, he said, it can take up to eight months or more to complete subdivision review.

In the Bitterroot, with a smaller planning staff and a tight county budget, the situation has become even more difficult for small-time development, with waits of two years or more to split off a lot.

"The process has become so onerous, it forces people to try to avoid subdivision review," Ainsworth said. "If you had to spend two years and $20,000, or do a family transfer, what would you do? Are you trying to get something done, or evade the law?"

Ainsworth offered an example of one client, living just went of Missoula's city limits, who hoped to create two lots on his 10-acre parcel for his son and daughter.

Under subdivision review, his client would be required to install a sewer main – in anticipation of future connection to the city's sewer system – and pave a separate driveway to the back lots. The cost: $50,000.

Ainsworth is currently working to find out if a family transfer exemption is legal for his client, and he is unapologetic about using the loophole.

"He's not trying to evade the law," he said bluntly. "He's just trying to avoid spending the money."

Part of the answer, in Ainsworth's view, is that rural areas in Montana desperately need some form of zoning.

In his experience, without some type of land-use planning, Montana citizens are left trying to manage growth – or stop it altogether, if they could – through the subdivision process.

This hurts small developers and costs the taxpayers, he believes.

"We ought to do (land use) planning and zoning on every county in Montana," Ainsworth said. "Then subdivisions would be almost automatic. The public would have already decided where growth belonged and where it didn't."

But state and local officials in the growing West will continue to have to juggle the public need to weigh in on growth with a landowner's ability to maximize the value of his or her land.

"There is good in requiring people to lay sewer and prepare for (annexation)," Ainsworth said. "But somehow you have to balance that with people's ability to pay the costs."



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