Christine Hoekenga
The city of Prineville, Ore. just became the first government entity to shell out a pile of cash under Measure 37, a state “takings” law passed by voters in 2004. The law is designed to compensate landowners when zoning and other land use restrictions reduce their property values. City manager Robb Corbett handed over the landmark $180,000 check on Sept. 12th.
The recipients? Eighty-year-old Grover Palin and his wife Edith, who purchased property with a view of downtown Prineville in 1963 and planned to build their retirement home. At the time, there were no construction restrictions on the lot, but the city’s regulations have changed. Last year, after telling the couple they could not build their dream house, the city council agreed to pay them $47,000.
The Palins then upped the ante by proposing to build a hotel on their property, which increased their projected losses and more than doubled their payment. The city opted not to protest the couple’s new claim and instead signed the check, saying “if government comes in and regulates the use of property, then the property owner should be compensated.”
In November, Oregon voters will decide on another measure (this time, number 49) that would modify the law, clarifying private landowners’ rights to build homes and limiting large developments.
Read the Statesman Journal’s coverage of the Palins’ windfall here, or read more about Measure 49 here.
Check out HCN’s coverage of Measure 37 here and here, or get a perspective from one of our “writers on the range” here.