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NAR Update - Checkerboard Land Use Patterns

By
Real Estate Agent with 1st Action Real Estate
11-18 checkerboard land use
nar
Back on November 8, I passed along some information regarding the Land Use, Property Rights & Environment Committee meetings in Orlando. It provided information on several of the items we discussed including the Global Climate Change PAG report, Expansion of the Clean Water Act jurisdiction and the Dept. of Homeland Security Border Fence Issue.

An issue I was totally unaware of, sadly so because I have been a lifelong resident of Western States, is the issue of Checkerboard Land Use. Dating back to the 19th century, the Federal government granted railroad companies every other square mile of land for 20 miles on either side of railroad routes creating a checkerboard pattern of land ownership - particularly in western states.
checkerboard
This picture, borrowed from a 2001 study by the Wyoming Oil & Gas Industry, illustrates the difficulty of working in the checkerboard environment - remember, every other square mile for a 40 mile wide swath across the heartland of the country. This can make it difficult for the public to get to federal land, parks or recreation facilities for example, without crossing private property, or for private landowners to access their property without crossing federal lands. It also makes development and management of these lands different - public lands have different management standards than private - and this challenge to use and development can have a real devaluing effect on a parcel, the oppostite of the original intent of the program. This effect may ripple out through an entire community and can negatively impact local real estate markets, land use and tax basis.

To give you some idea of the scope of this problem - Nevada is our 7th largest state encompassing some 70,745,600 acres. The federal government controls 60,863,345 acres, or 86.1%. 11.5% is privately owned, 1.6% is tribal, .04% is state owned and .04% is local. Of that 11.5% of privately owned land, 63% of that is in a Checkerboard land pattern. And while Nevada might be the largest impacted state, the federal government owns over 553,000 square miles, or 47% of the 11 states west of the Rockies, excluding Hawaii and Alaska. In Utah, where 64% of land is federally owned, the state government has been trying to work out some sort of equitable compromise since the mid-80's. In New Mexico, which has about 6.3 million acres of checkerboard land scattered across 5,000 tracts, it took over 40 years to negotiate the exchange of 340,000 state acres in the White Sands Missile Range. All they wanted to do was consolidate some parcels to blow up in exchange for other contiguous parcels that could have been developed or used for other purposes. 40 years.

The negotiations get even trickier when  dealing with tribal lands which are subject to multiple owners, conflicting jurisdictions and include the coordination of services across these chasms. Further, the federal government is supposed to make payments to states in lieu of taxes for all these public lands. However, these payments are either not made at all, not made in a timely manner, or don't accurately reflect the loss of tax revenue. In one recent case in Elko, NV, one section was developed into 13 X 40+ acre parcels. Previous taxes paid by the federal government was $28/yr. on that section. Just by creating the parcels, taxes on the section increased to $2,500/yr. Homes have been built on three of the parcels bringing tax revenue to over $7,400/yr. Lets see, increase local revenue and utility, decrease federal spending and oversight, improve local land use, enhance protection of endangered species, expand private property rights - naw, that'll never fly.

Congress already has the authority and direction from the Federal Land Management and Policy act of 1976 to consolidate the public lands. The problem, according the experts, is that the agencies that can accomplish this are underfunded thus rendering them unable to deal with more than the cursory day to day management of the vast tracts of federal and. In cases where private land owners have pursued consolidation, the government has forced them to pay all the associated costs, usually making it impractical to proceed. Both parties agree that consolidation of these parcels would result in improved access for both public and private use, local and state tax bases would improve as the land was developed to it's highest and best use, and management of eco systems would be uninterrupted contributing to a healthier wildlife environment.

Congress created this problem - albeit over 100 years ago, but we need their help to fix it today. Successful resolution of the Checkerboard land use issue is a public benefit as well as a benefit to private, state and local governments. NAR has been pursuing this as a legislative resolution for years - way to many years according some locals involved in the fray. They are encouraging expanded actions by NAR to encourage congress to make this a priority for the public land management agencies as well as provide their full cooperation in time and shared funding for any private land- owners willing to work with them.

You can find more information by searching the www.Realtor.org database or by visiting one of the following sites:
http://volokh.com/posts/1214914572.shtml
http://www.bqaz.gov/PDF/Northern_WP2_LandUse_3.pdf
http://www.consbio.org/what-we-do/science-assessment-for-the-sierra-checkerboard
http://www.bus.ucf.edu/wp/content/archives/Checker11-20-01.pdf
Gene Wunderlich - Selling Southwest California Homes including Temecula, Murrieta & The Southern California Wine Country
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'NAR Update - Checkerboard Land Use Patterns'
THE OPINIONS IN THIS COMMENTARY ARE STRICTLY GENE WUNDERLICH's PERSONAL OPINION. WHILE ANY REASONABLE &/or RATIONAL PERSON SHOULD AGREE, THESE VIEWS MAY NOT REFLECT THOSE OF ACTIVERAIN, COLDWELL BANKER RESIDENTIAL BROKERAGE OR ANY  LOCAL, STATE OR NATIONAL ASSOCIATIONS.

Comments (3)

Anthony Stokes-Pereira
Better Homes and Gardens Rand Realty - Nanuet, NY
Realtor

Hi Gene;

Great information I thank yoy for sharing.........................

Nov 18, 2008 07:24 AM
Mike Saunders
Retired - Athens, GA

Gene - in some areas certain private investors and groups have taken advantage of this scheme to, in effect, control access into certain public lands, therefore getting the enjoyment of those lands to themselves at the expense of the federal government and ultimately the taxpayers.

Nov 18, 2008 10:52 AM
Gene Wunderlich
1st Action Real Estate - Murrieta, CA
Realtor & Legislative Liaison

I know. It's a real mess. It doesn't appear that anybody is winning from this scheme any longer. Some areas are restricting access to public lands including parks and recreation facilities, in other areas farmers can't easily get from one piece of their land to another or find their riparian rights restricted. Seems the time has come to address this century old problem. Heck - even back then congress was screwing up and doing things that had unintended consequences. Just imagine what they'll be dealing with in 100 years with the Obama legacy? Yowza

Nov 18, 2008 11:01 AM