Ameya Preserve, Part III

Montana State Land for Sale


By David Nolt, 12-21-07

 
 

Editor's Note: This is the third installment of a series about the proposed Ameya Preserve development near Livingston, Montana.



 
  The signature rock face on Wineglass Mountain towers near a state section which is critical elk winter range within Ameya Preserve property. The DNRC is considering selling two sections isolated in Ameya as part of the pilot land banking program. Photo courtesy of Ameya Preserve.
One of the most critical and controversial issues surrounding the Ameya Preserve is the potential sale of two state sections of land isolated within Ameya property. As in much of the West, a lot of property around Livingston is owned in the checkerboard legacy of the railroad land grants, and there are numerous situations where state or federal land is completely surrounded by private property.

In 2003 the Montana Legislature initiated the Montana Land Banking Program, partly to deal with this sort of issue. The intent of the program, according to the Department of Natural Resources and Conservation (DNRC), is “for the state to dispose of tracts of land that generally do not have legal access, generate substantially less income for the trust than their relative value or are difficult for the Department to manage, and to purchase replacement property with legal access, potential for increased Trust revenue and consequently is more efficient to manage.” The program was recently extended in the Montana Legislature until October 2011.

Over the last two years the land banking program generated $10,669,498 in sales revenue from 19,189 acres sold in Montana, while the state spent just over $9 million acquiring 24,294 acres. The estimated annual income from lands purchased between July 2006 and July 2007 was around $154,000. The actual income from lands sold was about $25,000.

State Sections 18 and 20 in Township 03 South, Range 09 East comprise 1,270 acres, and future phases of development at Ameya hinge on the acquisition of these sections. Land eligible for the land banking program must first go through an environmental review before going to the Montana Land Board for a vote. The lands are open to a public auction, although property owners with land surrounding sections for sale have the first bid and a chance to match any leading bid.

Dokken is pledging to protect about 900 acres in the two sections while developing about 300 acres. If he is not able to purchase the sections, Dokken says it is the environment that will suffer.

“We will have to find a different, and frankly, less environmentally friendly location for some of our home sites [if unable to purchase the sections],” the developers say. “We will also have to find a new area to put a secondary access road, which would actually have a greater impact on the elk. But if we decide not to purchase the state land, it will not stop our plans for Ameya Preserve, only change them, although not necessarily for the better environmentally.”

In August 2006 the DNRC released an environmental assessment (EA) on the potential sale of Sections 18 and 20. The EA was widely criticized as inadequate for lacking significant public input and for not taking into account the public value of the elk winter range traversing the two parcels and other natural resource values. This prompted DNRC to go back to the drawing board to create a new alternative that included deed restrictions limiting development on the two sections

On July 19, 2007 the Park County Commission held a public meeting with the Park County Planning Office. Wade Dokken and Ameya’s legal counsel, Joby Sabol II, also attended. At the meeting Park County Land Use Planner Mike Inman said his planning department had serious concerns over the sale – concerns which were not addressed in the EA.

“We see potential conflicts with what the state is proposing as a sale,” Inman told the commissioners. “…The development seems to contradict the vision and goals of Ameya itself.”





Inman cited geologic fault lines running directly through the state sections, steep, forested chutes that can become “fire ladders” in the event of a wildfire and the potential for flooding from the 25 acres of ponds the developers plan to create. Knowing all this, Inman said he had difficulty understanding how the DNRC wrote under “Human Health and Safety” in the EA, “No impacts to human health and safety would occur as a result of the proposal.”

“This puts us and potential developers in conflict right off the bat,” Inman said.

Inman also referenced a recent statement made by Mary Sexton, director of the Montana DNRC, indicating counties in the state could be penalized for allowing development in the wildland urban interface, which is expensive and dangerous to defend from wildfires.

After Inman’s testimony, Sabol – visibly upset – called Inman’s testimony “off-point” and said the planners appeared to be “confused.” Sabol said the DNRC was only examining the sale, not potential development. Still, Inman contented, he did not see how the planning office could in good faith not comment on environmental and human health and safety issues concerning the sale of state lands to a developer intending to put homes on the property.

Jim Barrett, of the Park County Environmental Council, referenced the Montana Environmental Policy Act – which the land sale must comply with – and recommended the DNRC provide a “reasonable range of alternatives.” In the original EA, the DNRC only proposed two options: sell or don’t sell.

The Ameya team left the meeting frustrated with the commissioners and planning office, and the commissioners left frustrated with the developers and the DNRC. The meeting was the first confrontation between the developers and the county over the land sale and proved to be symbolic of what the relationship between the Ameya team and many Park County locals has become.

DNRC first published a scoping notice soliciting public comment on the proposed sale of Sections 18 and 20 in a square-inch block of copy in the classifieds of the Livingston Enterprise on March 24, 2006 and announced the proposed land sale. The comment period would close in just over two weeks on April 10, 2006. Many said the placement of the ad and length of the comment period were an insufficient scoping effort. On several other land sales through the program, the DNRC published scoping announcements in multiple papers and allowed comment periods of 30 days.

 
  The Bullis Creek drainage and Ameya Preserve property as seen from the Paradise Valley floor. Photo by David Nolt
On April 6, 2006 Montana Fish, Wildlife & Parks (MFWP) Wildlife Biologist Tom Lemke submitted a letter to the DNRC emphasizing the wildlife value of the state sections, especially the elk winter range on Section 18. Lemke was involved in the planning process for Phase One and has consistently told the developers that the Bullis Creek drainage is not the best place for development when considering impacts on wildlife.

“We are still maintaining that the long-term approach on the subdivision – from a wildlife perspective – is not very prudent,” Lemke says. “We’re concerned that when you throw that many people and homes on the landscape – regardless of how it’s designed – there is a high potential for wildlife conflict. You are, in effect, turning an amenity into a liability.”

Lemke calls the Bullis Creek drainage – where the majority of Phase One will be – “one of the most diverse wildlife habitats on the whole ranch.” He argues it would be better to shift the development to where other phases are tentatively planned to be. Lemke says initial construction activity on the property is already dispersing the elk, and he is worried further construction and the development itself could “alter wildlife use and distribution in significant ways.”

This would seemingly undermine a major aspect of the Ameya vision, and Dokken disputes Lemke’s claim regarding the Bullis Creek habitat. Dokken says it's not even close to being the top habitat on the property. Dokken also says building envelope design and deed restrictions on pets and fences will decrease conflict with wildlife. But Lemke says the sheer numbers of wildlife in the area and number of homes planned for Ameya all but guarantee such conflict.

Bill Orsello, a member of the executive board of the Montana Wildlife Federation and a participant in the rule-making process for the Montana Land Banking Program, said two of the biggest issues in establishing the program were how to appraise potential sale properties and also how to deal with environmentally sensitive land.

The group compromised on appraisal by requiring sale properties to be appraised both with and without public access. As for sensitive lands, one of Orsello’s biggest concerns, the group punted. Staffers at the DNRC asked those who were concerned about the environmental issue to trust the agency when they said the intent of the program was not to sell wildlife habitat. Orsello says the DNRC told him they would only try to sell “low hanging fruit.”

The biggest issue for Orsello in the Park County sale is the elk wintering range, which is in short supply across the state.

“There is nowhere we can point to and say we have a surplus of winter range, especially with public access,” Orsello contends. “There are no bargains out there on winter range. The state loses even in the best-case scenario that the landowner is tolerant to elk … Giving up winter range is probably one of the worst ideas they have out there. The state is actively trying to buy winter range around Montana. To take land that we already own and sell it is just poor policy and it’s contrary to the negotiated rules we have.”

The DNRC opened a new comment period on the third alternative of the EA on June 29, 2007. The initial comment period ended on July 16, 2007, and, once again, the DNRC received criticism on the length of the comment period and the fact that it included the Fourth of July holiday. The DNRC later extended the period to July 23, 2007. Many said the amended EA still did not address critical issues concerning the environment and public health and safety. The release of the new amended environmental assessment is due soon. In it, the agency will be including more alternatives to the outright sale, and another public comment period will follow.

The file on the sale contains a fair amount of comments, the lion’s share of which raise concerns about the sale or are in outright opposition. Several surrounding landowners expressed concerns about the sale, and groups like the Northwest Section of the Montana Wildlife Society, the Park County Rod & Gun Club and the Headwaters Sportsman’s Association all are urging the DNRC not to sell the property to the developers.

There is an underlying concern among the land sale’s critics that the DNRC attempted to fast-track the sale of sections 18 and 20 to Dokken. All sales in the land banking process are open to a public auction. Because he owns the surrounding land, Dokken is the most likely buyer if the DNRC sells the property. Still, the majority of discussions around the sale seem to center only on Ameya, and Dokken’s repeated claims of owning 11,000 acres give the appearance that he feels entitled to the public land.

On September 13, 2007, DNRC area manager Garry Williams, DNRC Trust Lands Unit Manager Craig Campbell, School Superintendent Linda McCullough and a representative for Montana Land Board Member John Morris held an “information-gathering session” in Livingston in response to opposition letters to the Bullis Creek land sale.

At the meeting, Park County Commissioner Jim Durgan asked the state representatives why all discussion of the sale focused on Ameya, and Durgan even went so far as to question whether deal-cutting was going on. Montana Gov. Brian Schweitzer sits on the Montana Land Board, and he attended a Democratic fundraiser Dokken hosted on his property in August 2006.

When asked about the relationship between the Governor and Dokken, Schweitzer spokeswoman Sarah Elliott referred to Dokken as merely an “acquaintance,” yet someone in the governor’s office called the developer to alert them of the inquiry soon after.

Also at issue is an exploratory water test well illegally drilled on State Section 20 by Allied Engineering. At the September meeting Allied’s Doug Chandler emphasized he called the DNRC as soon as his firm realized where they had drilled. Chandler called it a mistake and blamed it on “a young man that logged the holes … and put them in the wrong spot," though several at the meeting raised major doubts about the possibility of such a miscalculation in the age of sophisticated GPS positioning.

There is also the inherent issue of fair valuation for the land. If public sections – especially environmentally important ones- are auctioned off at bargain prices, it stands to reason developers could capitalize on this to the detriment of the land and public access. The state sections within Ameya are currently valued at about $3,000 an acre, though the DNRC will reappraise the sections if they decide to sell.

Land eligible for the land banking program is appraised based on the cost of undeveloped land, which varies greatly across Montana. Take, for example, two sales through the program in 2006: 1,600 acres in eastern Montana’s Treasure County sold for $368,000 – a paltry $230 per acre. Land in Flathead County carries a significantly different price tag: 85 acres sold there for $6.4 million – more than $7,500 per acre.

The disparity between prices in eastern and western Montana accurately reflects the demand for land in each region. But it's inherently difficult to value the environmental significance of a given piece of property - and of course it's true market value is also related to what a buyer might want to do with it. How the DNRC will judge all that remains to be seen.

(Correction: This story initially stated that the land banking program would sunset in October 2008, but the Montana Legislature recently extended the program until October 2011. The error has been corrected, our apologies.)

Editor's Note: This is the third installment of a series about the proposed Ameya Preserve development near Livingston, Montana. (Click here to read Part I, click here to read Part II, here for Part IV and here for Part V.



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