COVER STORY

THIS LAND IS THEIR LAND
DAVID HUNNICUTT AND LARRY GEORGE SAY THE STATE IS USING LAND-USE LAWS TO SCREW THE LITTLE GUYS. MEASURE 7 IS THEIR WAY OF FIGHTING BACK.

BY PATTY WENTZ
pwentz@wweek.com

Like Bill Sizemore, Larry George (above) hosts a morning talk show. His is on 1360 AM from 7 to 8 am.

 


David Hunnicutt

 

Gov. Tom McCall died on Jan. 8, 1983, the 10th anniversary of his famous Senate-floor speech in favor of Senate Bill 100, and the eighth anniversary of the formation of 1000 Friends of Oregon.

 

 

Subdivide and Conquer has been shown on several national PBS stations, but not on Oregon Public Broadcasting. More information on the film can be found at: www.bullfrogfilms
.com/catalog/
sub.html

 

 


"What OIA did is put something in the state constitution that puts a dark cloud over the future of the state and of our communities, over zoning and our neighborhoods, over maintaining quality of life and environmental protections," says Robert Liberty of 1000 Friends of Oregon. "They've spread this ominous cloud without understanding the implications."

 

Bill Moshofsky is the vice president of Oregonians in Action. He works mostly behind the scenes, providing financial support and Republican contacts.

 


For Becky Miller of Oregon Taxpayers United, Measure 7 was personal.

 

OIA used George Advertising, which is run by Larry George's fiancée, Katherine Schiele, for the Measure 2 and 7 campaign.

 

Larry George's annual salary is $47,000.

 

OIA has circulated a petition to require neighborhood approval for any increase in density required by Metro. It will be on the ballot in November 2001.

 

On Saturday, Dec. 2, 1000 Friends of Oregon holds its annual land-use conference in Corvallis. Item
No. 1 for discussion: Measure 7.

 

Oregonians in Action: www.oia.org

 

1000 Friends of Oregon: www.friends.org

 

More than half the land outside of urban growth boundaries in Oregon is owned by the state or federal government. More than 90 percent of the private land remaining is zoned as farm and forest land.

 

 


Sidebar: DETAILS, DETAILS: IS MEASURE 7 THE END OF THE WORLD AS WE KNOW IT?

On a damp evening last month, true believers gathered at Cinema 21 in Northwest Portland. Supporters of the land-use defenders 1000 Friends of Oregon were there to watch Subdivide and Conquer: A Modern Western, a documentary about the immoral, car-centered wasteland of America, a landscape scarred by the greed of developers, speculators and the intellectually lazy. The movie's villains were Phoenix and Houston, Los Angeles and Levittown. The hero: Portland.

In the movie, as a MAX train moved quietly and safely through the Skidmore Fountain area, pedestrians strolled through the car-free zone. Some cities are doing things differently, the narrator, actor Dennis Weaver, intoned.

You could almost hear the audience sigh with satisfaction.

Afterwards, the lights rose and Robert Liberty, the bearded and tweed-wearing executive director of 1000 Friends, stood before the audience. He warned of an enemy that threatened to destroy the Oregon they all loved. Former Gov. Tom McCall's 27-year-old legacy of land-use planning was in danger because of Ballot Measures 2 and 7, which, if passed, would turn Portland into Anytown, USA. Defeating the measures would take money--and a lot of it.

On cue, like ushers in a church, volunteers moved through the rows of the theater, handing out envelopes for donations.

After such a sermon, it seemed inconceivable that Oregon voters would overturn the very thing that makes Oregon different.

On Nov. 7, Ballot Measure 2, which would have allowed people dissatisfied with state agency rules to call for a legislative review, failed. But the so-called takings initiative, Measure 7, passed 53 to 47 percent. In rural counties, the spread was even more stunning. Places like Grants Pass, Powell Butte and Heppner not only passed the measure, they hit it out of the electoral ballpark. Up to 69 percent of the voters there said that if the government takes any part of their land, the government ought to pay for it. The constitutional amendment failed only in the urban counties along the Interstate 5 corridor.

Measure 7 seems like a simple tit for tat, but it isn't. While both the federal and Oregon constitutions require compensation when the government wholly condemns or takes property, to date courts have ruled that a "partial taking" requires no payment to landowners.

In every city in America, zoning laws and property regulations help write the civic contract. In Oregon, such rules have taken on a religious import, based on the land-use tenets set in stone by former Gov. Tom McCall. In 1973, the Republican governor convinced a Democratic Legislature to pass his vision of protecting farmlands, creating open spaces and planning livable, walkable cities. Over the past quarter-century, this vision has defined Oregon more than the rain. Yet on Nov. 7, Oregon voters proved that nothing is sacred.

James Huffman is the dean of the Northwestern School of Law at Lewis & Clark College. He has written extensively about what he considers unfair partial-takings laws. He often butts heads with his more liberal colleagues at the law school, and he supports the concept of Measure 7. Nevertheless, he was shocked that it passed.

"It's really amazing to me that it happened here in Oregon, of all places," Huffman says. "To really go beyond what any court now says is the constitutional requirement, I find remarkable."

While most of the attention during the election was focused on Bill Sizemore's anti-tax, anti-union and anti-teacher initiatives, they all failed. Measure 7 was the sleeper, brought to the ballot by a pair of down-home property-rights zealots that few people had heard of. Yet Measure 7 could ultimately have a greater impact on the state than anything Bill Sizemore ever dreamed up.

In a nondescript Tigard office building, David Hunnicutt leans back in a battered office chair. He is the director of legal affairs for Oregonians in Action, the group that pushed Measure 7.

Hunnicutt is suited up, looking like the lawyer he is, except for his hair, which is buzz-cut survivalist-style. At 35, what's left on his head has gone ghostly silver.

Next to him, Larry George snacks on chocolate-covered hazelnuts. He looks relaxed, in jeans and a pinkish Ralph Lauren shirt. The two come off more like Oregon college buddies than renegades, an image that Hunnicutt is aware of.

"I'm from St. Helens and Larry came from Newberg," Hunnicutt smiles. "We're just good old boys from small-town Oregon."

Oregonians in Action has but one purpose, according to George and Hunnicutt: to unlock the hold that special interests have over private property--especially on the land outside of urban areas, which they believe has been incorrectly zoned for farm and forest use just so city folk can have a pretty view when they drive in the country. Their conversations are peppered with class-warfare rhetoric.

"Our unofficial motto," George jokes, "is that we're here to protect anyone who is getting screwed by the system, by the Man."

To OIA, the Man includes big government, big corporations and 1000 Friends of Oregon, their most direct opponent in the land-use wars.

1000 Friends, which McCall established in 1975 to watch over the planning system he created with Senate Bill 100, epitomizes the urban-liberal dominance over state affairs, according to George.

"We view ourselves as populist libertarians," he says, "and view 1000 Friends as a bunch of blue-blood elitists who want to tell everyone else how to live."

Robert Liberty says that's baloney--that the Friends have more than 5,000 members in every corner of Oregon. The reality, he says, based on the group's history, is that OIA is a fringe group that got lucky with Measure 7.

"They are a right-wing, property-rights organization that is unrepresentative of Oregonians and their quality of life," Liberty says.

For the past decade, OIA has slowly been building a base of grassroots property-rights activists who agree with George, not Liberty.

Larry George joined OIA as executive director in 1992. Son of Sen. Gary George of Newberg, one of the few ultra-conservatives left in Salem, George the younger was raised on politics and farming. A graduate of Oregon State University, he worked briefly in California in food inspection for Smucker's before coming back home at 23 to join OIA.

Where George is the back-slapping politician, Hunnicutt is more reticent. A self-described St. Helens labor Democrat, he says he provides a balance to George's right-wing tendencies. Hunnicutt earned a law degree from Lewis & Clark and went into practice with his father for a few years. He joined OIA after he began representing landowners and became convinced that the government was taking advantage of them.

"OIA was the only group I'd come across that was fighting for landowners," he says.

In 1994, the group made its name after winning Dolan vs. City of Tigard, a case that went all the way to the U.S. Supreme Court. John and Florence Dolan, who own A-Boy Plumbing in Tigard, applied for a permit to expand their store. The city said they would have to create a public bike path on their property to get the permit. The Dolans sued, with the assistance of OIA, and eventually prevailed, winning $1.5 million.

In the past 10 years, OIA has represented, always at no charge, numerous landowners who have been thwarted in their attempts to develop their property.

Beyond the courts, OIA has dabbled in fighting the Endangered Species Act and last year distributed the infamous "salmon-bashing" video that was shot at an Oregon Department of Fish and Wildlife hatchery. The group also used the bloody footage in a series of television commercials paid for by eccentric millionaire Loren Parks.

Today, the group claims a supporter list of more than 6,000 people and an annual budget of around $450,000.

OIA has been slowly building influence at the state level. In 1995, the group supported a regulatory takings law similar to Measure 7 that was vetoed by the governor. In 1998, it sponsored and successfully passed Ballot Measure 56, which requires the government to notify landowners if it makes any zoning change that lowers their property value. In 1999, the group helped pass a number of bills, most of which were procedural tweaks in the administration of the Department of Land Conservation and Development.

Critics point out, however, that OIA has yet to exercise any serious clout. For three sessions it has failed to move its most important agenda--loosening the strict farm and forest-land zoning on rural lands. One of OIAs bills would create a set of "secondary" lands that OIA deems unfit for farming or logging. The second would eliminate the 1995 requirement that anyone who wants to build a house on farmland has to gross $80,000 in farm-related income annually. OIA's work puts it at odds not only with 1000 Friends of Oregon but with the Oregon Farm Bureau.

Still, Jon Chandler, lobbyist for the Oregon Homebuilders Association and a frequent OIA ally, says the group shouldn't be dismissed.

"They've passed ballot measures, they're in the courts, they're in the political process," Chandler says. "They're not backing away from any fights they can get their hands on."

Still, Hunnicutt and George were not prepared for the biggest fight of their careers--pushing Measure 7. It wasn't even their idea.

Measure 7 is the creation of Becky and Stuart Miller, who have been longtime foot soldiers for Bill Sizemore. The two of them penned Measure 7 after an environmental overlay was placed on their land near Fanno Creek. Whether intentionally or not, the measure attacks land use in a different way than unsuccessful prior attempts. Measure 7 says nothing about overturning regulations. Instead, it simply mandates that governments pay whenever a change affects a property's value.

Earlier this year, Oregon Taxpayers United began circulating petitions for the measure along with Sizemore's other initiatives, but OIA saw this as trespassing.

"We've been working in land use for more than 10 years," says George. "This was our issue, and one that is very important to our supporters."

After some behind-the-scenes grappling between OTU and OIA, Sizemore handed the measure over once he had collected most of the signatures.

Measure 7 was a risk to OIA. The group didn't have the funds to mount two full-on ballot measure campaigns, and it had already committed to Measure 2. In the end, Measure 2 fell by
the wayside.

"Explaining administrative rules to the public takes more money than we have," Hunnicutt says.

For the Measure 7 campaign, OIA raised and spent almost $450,000, largely on radio ads that featured land-use planning "victims." In addition, Becky Miller of Oregon Taxpayers United had her own political action committee that raised, at last reporting, more than $365,000. George created a second political action committee that solicited donations from developer Robert Randall and timber baron Aaron Jones to publish a $300,000 "voter's guide." This four-color brochure, which failed to indicate who was paying for it, offered opinions on a number of ballot measures under the guise of objectivity. Mailed to most homes in Oregon, the brochure had a profound effect. Polling shows that support for Measure 7 continually eroded during the campaign until the day the brochure hit.

It still baffles many that Measure 7 passed at all. No one endorsed it. The Association of Realtors, a longtime friend of OIA, stayed neutral, as did Oregon Homebuilders Association. The Oregon Farm Bureau was against it, as were all the major political, environmental and activist organizations in the state.

The opposition, organized by 1000 Friends of Oregon, spent $1.7 million, which may seem like a lot but is nothing compared to the more than $8 million spent to fight Sizemore's measures. Still, the No on 2 and 7 campaign ran hundreds of thousands of dollars' worth of television ads. Measure 7 was opposed by nearly every newspaper in the state as well as Gov. John Kitzhaber. In an emotional press conference, 85-year-old Audrey McCall asked the voters not to throw away her husband's legacy.

Caroline Fitchett, who ran the No on 2 and 7 campaign for 1000 Friends, acknowledges that few thought the measure would pass and as a consequence, forces that would be typically energized to oppose this measure were instead focusing their efforts against Sizemore.

"In the last week of the campaign," she says, "people became aware that this thing could win. There were farmers, activists, teachers and elected officials from around the state calling and emailing with offers to help."

In the last week, Fitchett says, more than $200,000 was collected.

"If that would have happened 10 days earlier, if we had had even another week," she says, "we would have won."

Today, lawyers, politicians and even OIA are trying to sort out exactly what Measure 7 portends. Robert Liberty repeatedly points out that the voters were voting on a ballot title that mentioned nothing about land-use planning. In fact, polling shows that Oregonians are still enthusiastically behind the system.

"I don't know what the voters wanted," he says. "We don't know if they wanted to overturn land-use planning in the state."

Kitzhaber has made it clear that a 53 percent yes vote is no accident and he won't support
a repeal.

Others are suggesting that there is a lesson to be learned, that the signs of a voter backlash against land-use planning have been in place for years. Henry Richmond, the first director of 1000 Friends, says the voters of this state have taken planning for granted. "It was just a matter of time before someone knocked the Oregon land-use plan out of the box," he says. "I think there is a very thin level of understanding of the way many different interests in society are affected and helped by land-use planning."

Others say the voters very clearly understand the effects and they don't like it.

For decades rural Oregon has felt the brunt of environmental regulations. Critics have often made a connection between these rules and the decline in the state's resource-based economy, whether or not this is a fair conclusion. In addition, the split between urban and rural sensibilities continues to grow. Travel anywhere outside an urban growth boundary and you'll hear grumbling about how, on one hand, small forest-land owners have to let timber rot in order to provide buffer zones along streams to protect salmon, but on the other hand, the city continues to dump its sewage into the Willamette every time it rains.

"I believe there are an awful lot of folks who believe that government regulation considers public interest paramount over landowners," says state Sen. Ted Ferrioli, who represents Gresham and points east. "They believe the government has grown too fast and is inequitably administered over urban and rural areas."

Outgoing Metro Council member Jon Kvistad says Measure 7 is a wake-up call.

"If we don't listen to that voice of frustration out there," he says, "I think we're going to lose it all. This is just the first salvo, and if we don't listen, groups like OIA will be more successful and we could see cracks in Oregon's land-use law that could become fissures."


DETAILS, DETAILS
IS MEASURE 7 THE END OF THE WORLD AS WE KNOW IT?

The Measure 7 claims have started.

Last week Jackson Creek Sand Co. filed a $50 million federal lawsuit against the city of Jacksonville because the town denied it a permit to expand its sand and gravel extraction business. The town was trying to limit the mining trucks roaring through its historic downtown. Fine, say the miners--pay up.

While this isn't exactly what Larry George and David Hunnicutt had in mind with Measure 7, the two maintain that fair is fair. Property owners should be allowed to control the use of their land, and if state government action interferes with that, the state should pay.

That sounds straightforward, but it isn't. For one thing, the language in Measure 7 is so vague that there is widespread disagreement on the interpretation of nearly every aspect of the new law, including whether or not it is retroactive for property owners.

OIA will publish its white paper on what it interprets the measure to mean this week. The state attorney general's opinion is due before Dec. 7, the day the measure officially becomes law.

City and county governments are already holding meetings to see what the law means for their zoning regulations and figure out how to pay the claims. Conservation groups are strategizing. Lawyers are offering opinions.

"There is a lot of headless chicken activity right now," observes Randy Tucker of 1000 Friends of Oregon.

Some observers predict that Measure 7 is so confusing it will have to be rewritten and sent back to the voters for approval, much like Bill Sizemore's Measure 47 in 1996. Hunnicutt disagrees, saying that a minor legislative fix to clarify the language and set up a claims procedure is all that is needed at this point.

There is no question, however, that Measure 7 will disrupt the balance between competing and often equally compelling interests that zoning laws and regulations now try to provide.

Case in point: the Widow Hackett.

During the Measure 7 campaign, OIA featured 76-year-old June Hackett as a victim of land-use planning. Hackett owns two adjoining lots near Forest Park. On one lot, sized at less than 2 acres, is the house where she lived with her husband before he died last year. The second, slightly larger lot has nothing on it but trees. For years, her husband wanted to develop and sell off the second lot for retirement income. In 1993, Multnomah County refused his permit application because the second lot had been rezoned, since his purchase, as multiple-use forest land.

"I can sell it," Hackett says, "but who is going to buy the property if they can't do anything with it? It's very pretty but it's just sitting there idle."

Hunnicutt of Oregonians in Action says this is a classic case of regulatory takings, and he says it will be among the first claims OIA files under Measure 7.

"If the county wants open space," he says, "they should buy it straight out."

OIA's critics say that the Hacketts received notification of the zone changes and could have attended several public meetings on the proposal. Others point out that the rezoning saved the area from over-development and may have increased the value of the lot on which the Hacketts' home sits.

"This is a beautiful neighborhood," says neighbor Arnold Rochlin. "It isn't that one [additional] house would make all that much of a difference, but the problem is it becomes one house, then another house and then another. It would be such a shame if that street were to become urbanized."

Whatever happens, Robert Liberty of 1000 Friends is clear on one thing. Any local government that tries to get out of paying the Measure 7 bills by backing off of land-use planning will be sued.

"One of the things 1000 Friends does not have to do is figure out how to cut budgets or raise taxes to pay for this," he says. "But we will be there saying this is what the voters voted on. You must pay for it."

--PW

 

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