Frenzied real estate market imperils land conservation in Washington, Idaho | National News
There is a 1,000 acre ranch in Northern Idaho, a mix of wood and livestock land, that borders a “precious lake” with water that replenishes the Spokane Aquifer.
“It is living space. It’s water, ”said Dave Schaub, executive director of the Inland Northwest Land Conservancy. “According to our analysis, it is a climate-resistant country. It is one of the more climate-resistant areas in our region. “
In other words, it’s the type of property ripe for maintenance, but a feverish real estate market means the ranch that isn’t for sale is unlikely to be preserved.
“The price for similarly sized properties in Kootenai County is shocking,” said Schaub. “I have spoken to some large donors for nature conservation who are moving far away from the property due to the price of the property.”
This reality creates problems for regional and state-wide land conservation efforts, a fact that became apparent during Spokane County’s final round of nominations for Conservation Futures. The county program, which is based on a voter-approved property tax, has acquired nearly 9,000 acres of natural land since 1994. The program accepts property nominations approximately every five years. After this period has expired, the district and the public assess the lands and classify them. The district then tries to buy the top-ranked packages.
In 2016, the district received 38 nominations. 2010 36 nominations. This year the district received eight.
“We were kind of in this Goldilocks real estate lot, which has these beautiful big lots, vacant lots near the urban areas that were pretty affordable,” said Paul Knowles, the county’s park planner. “The Conservation Future Program has really been able to have this significant impact on land conservation and recreation in this area. This Goldilocks era seems to be disappearing. “
Agent Craig Soehren is a commercial real estate agent who helped sell the 31-acre Sister of the Holy Names property on the Spokane River in 2017. This property, which spans 4,500 feet of shoreline, was purchased with County Conservation futures money and was one of the “highlight deals” of his career.
That sale would be more difficult now, but still possible, he said.
There are mutliple reasons for this.
Firstly, land costs more money today than it did in 2017. At the same time, the income from the levy on which the program depends can only grow by 1% per year, according to state law. Meanwhile, real estate prices have increased by 20% or more per year.
“Do the math,” Knowles said.
Spokane County also conducted two assessments for each potential property. The county then uses these two ratings to establish a margin of negotiation that cannot exceed the higher of the two ratings. How much the county can pay is limited according to the terms of the program.
Private buyers have no such limit.
“What you now notice is that the market is exceeding the evaluation criteria,” said Soehren, “because it is such a dynamic market.”
Ultimately, large plots of land that took months or years to sell and that are more suitable for nature conservation are bought up, for example large, undeveloped plots of land.
“People get offers for real estate without even being offered for sale,” said Soehren.
That makes a slower process like that of the county less attractive. The fastest time the county can close on a property with the Conservation Futures program is between 12 and 15 months, Knowles said. It often takes longer.
This is where nonprofits like the Inland Northwest Land Conservancy and the Dishman Hills Conservancy can come in handy, Schaub said. Because they are more maneuverable, they can buy land quickly and hold it until the county has the funds to take over the property.
Even so, costs remain an issue.
“The raw land market has changed dramatically,” said Jeff Lambert, executive director of Dishman Hills Conservancy. “Not only has it accelerated, but the fair market values are approaching twice what they were two or three years ago.”
These increases mean that regionally popular natural areas such as Saltese Uplands and Waiki Springs can no longer be preserved, Schaub said.
The real estate reality has forced Schaub and others to think more strategically and to choose when and where to get land. In some cases, this means opting against it.
One example is the Rathdrum prairie.
“The pace of development there is so fast that private land protection cannot make a difference,” said Schaub.
Tax-financed nature conservation could have more effect here. Unlike Washington, Idaho has no future conservation program.
In recent years, King County has been aggressively trying to offset the rise in property prices, said Jon Snyder, outdoor leisure and economic development advisor to Governor Jay Inslee.
“Now they have this huge war chest,” he said.
However, due to the 2001 voter-approved initiative led by Tim Eyman, state law limits property tax revenue to growth of more than 1% per year. That said, if Spokane property prices rise, the county will have to lower the tax rate.
“That’s what blows people away,” said Knowles. “Real estate costs are rising, but the real tax rate is falling.”
That cap can be lifted through a local voting initiative or at the state level, Knowles said.
Efforts are underway to urge lawmakers to exempt 14 future conservation programs across the state from the 1% limit, said David Patton, Northwest regional director of the Trust for Public Land. This bill is sponsored by MP Sharon Wylie, a Vancouver Democrat. The bill would not increase the tax rate, but leave the choice to the district governments.
“Right now, it’s really important that these programs are as effective as possible,” said Patton.
Regional conservationists remain concerned that the market will have a long-term negative impact on the north-west of the country.
“It’s meaningful and scary to be honest. Scary because really important opportunities are being lost, ”said Schaub. “It’s hard for philanthropy to compete with any kind of market.”