New law leads to land-value mystery

Inter Lake editorial

The Northwest Montana Association of Realtors has made clear it feels the city of Whitefish has elevated itself above other municipalities in terms of regulations, perhaps with unintended or unforeseen consequences.

The association recently developed a disclosure form for member Realtors and their clients to understand the impacts of the city's newly adopted critical-areas ordinance, a complex law that establishes standards and a review process for construction on slopes and in sensitive drainages with a goal of protecting water quality.

The Realtors' group contends the ordinance creates unknown costs for landowners to determine their property's "allowed use," as judged by the city planning office.

That alone will create uncertainty about the market value of certain properties.

"The burden they placed on individual homeowners will not only affect their property rights, but will have a negative impact on the resale values, tax revenues and economic vitality of Whitefish," association President Cal Scott said in a prepared statement.

Brokers and real-estate agents allege they cannot provide an accurate opinion of a property's value because the ordinance will affect different properties to different degrees.

They further maintain the law allows "considerable discretion of city planning representatives and imposes substantial fees and costs on landowners who try to shepherd their property through the [ordinance's] permitting process."

That "considerable discretion" is troublesome, because the public doesn't really know how the ordinance will be applied over time, in practical terms. How much will it cost for landowners to consult with "qualified professionals" in determining their property's potential use, as required by the ordinance?

That kind of uncertainty definitely can impact property values.

The city is already in a legal tangle with the county over jurisdiction of the two-mile planning "doughnut" around the city.

If the city does not proceed carefully and judiciously in applying its new ordinance, it could find itself faced with additional legal challenges from disgruntled residents.

City leaders can be as confident as they want in the legality of the ordinance, but it just won't seem right if the city is being sued by taxpayers who believe the city has reduced their property values.