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Gallatin County, Montana--Purchase of Development Rights Program

$10 Million General Obligation Bond Referendum
A local coalition breaks new ground in launching land conservation program.

"TPL's research department did a wonderful job in identifying our bond capacity and supervising a detailed poll of the county's willingness to vote for a $10 million open space bond. When the poll showed strong support, we received training from folks at TPL on how to run a campaign. We followed their advice and won." -- Ray Rasker, Director, Northwest Office The Sonoran Institute

Even the state of Montana--Big Sky country--is not immune to suburban sprawl. In Gallatin County development is transforming the open landscape, as more and more subdivisions crowd the valley's fertile farmland, mountain peaks, and river corridors. Population growth here is well outpacing the national average; more than 17,000 acres of farmland have been divided and developed in the past decade, threatening the community's agricultural heritage and quality of life.

With their land values on the rise, farmers face mounting property and inheritance taxes. Sometimes subdividing part of the farm is the only way they can afford to pass any land on to the next generation. In the process, the farming way of life slips away and the county budget is stretched: consider that of every property tax dollar collected on agricultural land, the county spends just $0.25; but for every tax dollar collected on residential development, the county pays $1.45 in public services such as roads, schools, and police protection.

Two years ago the county commission took action, creating a 16-member Open Space Task Force, later formalized into an Open Lands Board. Charged with finding solutions to the county's disappearing farmland, this independent citizen body explored a wide range of possible preservation and funding options, both regulatory and incentive-based. Among those considered were: community-supported agriculture, purchase of development rights (PDR) from willing landowners, a right-to-farm statement, community-generated planning, good neighbor policies, and support for state and federal legislation directed at preserving open space.

Local leaders decided that one of the most viable options was to purchase development rights on active farmland. By selling off their development rights, farmers can get an infusion of cash and still retain ownership of their land and be eligible for some estate- and income-tax breaks. Borrowing is the only large-scale financing option available to local governments in Montana for such a program. By passing a bond, the county would be eligible for federal, state, and private matching funds.

In November 2000, Gallatin County voters approved the $10 million Open Space Bond with a 59 percent margin, creating the state's first countywide purchase-of-development-rights program. With this money and the potential for $2 to $5 million in matching funds, the county hopes to protect 12,000 to 18,000 acres of agricultural land--about equal to what has been lost over the past decade. The measure's success was attributed to a thorough and democratic process led by a diverse coalition of local interests. Farmers, ranchers, conservationists, and other community leaders studied the options carefully and sought public input before a measure was drafted. Public support was confirmed by a poll, and the county commissioners unanimously referred the measure to the ballot.

Organizing the effort were Commissioner Bill Murdock, the Sonoran Institute's Ray Rasker, and Open Land Board members like Carmen McSpadden, Archie Alexander, and rancher Mike Lane. At the table from the planning phase through the campaign was the Trust for Public Land. A look at TPL's participation in this groundbreaking endeavor follows.

• Research -- The Open Lands Task Force considered myriad potential land conservation techniques and funding options. TPL's research team helped the group investigate each option, outlining implementation steps, financing potential, and the impact on taxpayers.
• Polling and strategy -- TPL directed the polling process, designing a survey and testing various conservation mechanisms and funding options. Results showed strong support for a $10 million bond and a program designed to preserve Gallatin County's agricultural heritage while keeping land in private hands. With research and poll results in hand, TPL advised the campaign on strategy and communications.
• Funding -- TPL helped pay for the poll and raise money for the campaign.

With few options available to local governments in Montana, Gallatin County voters broke new ground by passing the purchase of development rights program. Proponents did their homework, reached out to their community, and won support for their plan. Now that the measure has passed, TPL continues to help local leaders implement the program and secure key properties from willing sellers.