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<br />'1"';" <br /> <br />1. Who types of claims can be brougllt under Measure 37? What must the iIIlpaa of the land <br />use regulatioD be to CODstitate . daim ? <br /> <br />Under Measure 37, an owner of property (or an interest in property, such as a lease f may bring a <br />claim against a public ~ enacting or enforcing a land use regulation if. <br />1. The regulation restricts the use of 1he property and <br />2. Such regulation reduces the fair market value of1he property interest. [See Section (1)] <br /> <br />2. Is Measure 37 retroactive? <br /> <br />Yes. Measure 37 applies to bo1h existing and new regulations. [See Section (I)) <br /> <br />3. How is compensation calculated? <br /> <br />According to 1he measure, compensation is equal to 1he reduction in 1he fair market value of 1he <br />property resulting from the enactment or enforcement of1he land use regulation as of1he date the <br />landowner makes a written demand for compensation. [See Section (2)] <br /> <br />Compensation is based on 1he date of acquisition by 1he owner, !!! 1he date of acquisition by a <br />family member, whichever occurred first. <br /> <br />Example: Grandpa Joe bought a farm in 1940. At that time, there was no zoning on 1he <br />property. His son Sam inherited 1he property in 1970, and later sold the farm to his <br />daughter Donna in 1995. Under Measure 37 Donna may make a claim for <br />compensation based on 1he date of her grandfa1her's acquisition in 1940. <br /> <br />o The term "family member" is broadly defined in Section (11) of 1he measure to include <br />grandparents and any "legal entity owned by anyone of combination of 1hose family <br />members or the owner of 1he property." <br /> <br />o How 1his works is not entirely clear. Does 1his family ownership capture every land use <br />regulation in between a grandmother's purchase and her grandson's inheritance? <br /> <br />The measure provides 1hat compensation, and the fair market value of the property (with 1he <br />regulation in place), should be measured as of 1he date of 1he written demand, but it does not set <br />forth any guidelines for calculating the reduction in value. This raises a number of issues: <br /> <br />Issue: The reasonableness of the use allowed at 1he time of acquisition relates to valuation. For <br />example, assume a property owner bought forest property prior to 1he enactment of any zoning. <br />TheoreticaIly, she could have built a shopping maIl, but economicaIly and practically speaking <br />such a use would not have been feasible. Under Measure 37 does the property owner get <br />compensated based on the lost ability to build a shopping maIl? <br /> <br />Issue: The reasonableness of the use allowed at the time of acquisition related to valuation in <br />ano1her way: a monopoly or scarcity effect. At the time the property owner in 1he above <br />example acquired 1he property, all o1her owners of property also had the theoretical ability to <br />build a shopping mall, because no zoning regulations had yet been enacted. Therefore, to <br />compute valuation as if the property owner had exclusive rights to build a shopping center <br />would. be to give 1hat owner a monopoly effect that she did not enjoy at 1he time she acquired <br />the property. For more discussion, see htto://arec.oregonstate.edu/facultv2/measure37.pdf. <br /> <br />2 Corporations and other legal entities are able to make claims under this measure. <br /> <br />1000 Friends ofOregolJ - 2 - Man'h 31, 20llS <br /> <br />~ <br />