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Show January 15 03.qxd 12/7/2021 3:30 PM Page 12 THE OGDEN VALLEY NEWS Page 12 Volume VII Issue VII January 15, 2003 OPEN SPACES cont. from page 1 space lands. Individuals and governments should comprehensively consider these benefits when evaluating different conservation and development proposals. Market Value The most direct measure of the economic value of open space is its real estate market value—the cash price that an informed and willing buyer pays an informed and willing seller in an open and competitive market. In rural areas where the highest and best use of land is as open space, this is easily determined by examining market transactions. In urban or urbanizing regions, however, where highest and best use is typically development, the. open space value of land must be separated from its development value. Impact on Municipal Budgets Communities are increasingly recognizing that local population growth and real estate development do not necessarily provide net fiscal benefits to local governments. In other words, providing infrastructure and other services to accommodate new development may cost more than the development generates in property tax and other revenues, especially in rapidly-growing communities along the Wasatch Front. This, combined with decreased intergovernmental transfers of financial aid and increasing citizen resistance to taxes, has led local officials to scrutinize the fiscal consequences of land use decisions. Fiscal Impact Analysis is used to compare the public costs and revenues associated with alternative land uses to determine the fiscal impact of development on local governments. Based on a review of such studies, economists have found that residential development often incurs a net fiscal deficit, while open space lands generate a surplus. For example, a study of six rural New England towns revealed that residential development required $1.13 in municipal services for every $1 of revenue generated. In contrast, open space lands required only $0.29 in services for every dollar of revenue generated. These same lessons are being learned in rapidly-growing Utah Communities. For example, Summit County recently determined that each new house constructed in the county increased county costs by $300 a year above any additional tax revenues. These added costs of development are typically subsidized by existing residents, and over several years can result in substantial increases in property taxes and city service fees. Ironically these higher taxes are too often accompanied by lower quality of life due to reduced municipal service and increased traffic and crime. As one frustrated Cache County property owner put it, “I can’t afford to live here anymore, but I also can’t afford to move.” Enhancement Value The existence of open space may affect the value of adjacent lands. In 1919, the landscape architect Frederick Law Olmstead, Jr. stated that “a local park . . . adds more to the value of the remaining land in the residential area which it serves than the value of the land withdrawn to create it.” Evidence of such “enhancement value” is commonly found in real estate ads that feature proximity to public lands, golf courses, and other open spaces. The relationship between market and enhancement values of open space depends upon land scarcity and the perceived risk of development. In rural areas, where most land is open space and likely to remain so, both market and enhancement value will be low. However, market and enhancement value will be high in urban or urbanizing areas like St. George and the Wasatch Front. Finally, enhancement value private club for members is important for open space advocates since it can partially offset reduced tax revenues from open space lands removed from the tax Ken Turner: #1 in Sales in the Ogden Valley for 2002!!! SOLD ! ! rolls or placed under special reduced-tax designations. Production Value Open space lands are seldom idle, but rather are part of a working landscape vital to the production of goods and services valued by society. Oftentimes, the economic value resulting from these lands is direct and readily measured, as with produce from agricultural lands, livestock from rangelands, and wood products supplied by forests. The monetary returns from production accrue directly to the landowner, and are important in that these returns, in relation to alternative land uses like development, often determine current and future land use. Farming, ranching and logging are economically important to Utah, especially in rural counties. For example, approximately 2,700 Utah landowners own forests of 10 acres or more in size. In conjunction with public lands, the wood products supplied by these lands generate $243 million in annual sales. Utah’s 13,400 farms cover 9.6 million acres and produce over $1 billion in agricultural products each year. While fauns cover roughly l8% of the State’s total land area, only about 10%—or 1 million acres—is considered prime agricultural land. Utah is rapidly losing its productive open space lands. For example, between 1974 and 1992, Utah lost nearly a million acres of farmland to development. Projections estimate that by 2050, the State will have only 0.6 acre of farmland per person, roughly half the area needed for self-sufficiency. Moreover, encroaching development can adversely affect the economic viability of nearby open spaces. For example, as development proceeds, political pressures or the fragmentation of large land parcels may make traditional land uses uneconomical or infeasible. Unfortunately, the loss of open space to development and fragmentation will likely accelerate over the next decade since many rural landowners are approaching retirement age and face increased tax pressures on land values and estates. Impacts from Employment and Tax Revenues In addition to providing market-valued goods and services, open space lands support jobs and related income that are valuable to local, regional and national economies. In 1995, 13.4% of Utah’s jobs were farm or farm-related. Even the State’s limited wood products industry currently employs over 5,000 people. Many of these jobs are located in rural areas with limited employment opportunities. Natural System Value Open space lands support natural ecosystem functions such as groundwater recharge, climate moderation, flood control and storm damage prevention, and air and water pollution abatement. Economists are increasingly recognizing these ecosystem benefits since human life cannot be sustained without them. One way to estimate the value of ecosystem benefits is to calculate the monetary damages that would result if the benefits were not provided, or calculate the cost of public expenditures required to construct infrastructure to replace the functions of the natural systems. For example, in Massachusetts, 8,500 acres of wetlands in the Charles River Basin were acquired to serve as a natural valley storage area for floodwaters. The cost of acquiring the wetlands was $10 million, while the alternative cost of building dams and levees would have exceeded $100 million. Use and Nonuse Values Open space lands are often valued for scenic vistas, solitude, wildlife, and the community character embodied in traditional working landscapes. The subjective value people place on these attributes can be broken into two broad categories: “use value” and “nonuse value.” Use value represents the value people place on a current use of the resource. Three types of use value are recognized: (1) “consumptive uses” such as hunting and fishing; (2) “non-consumptive uses” such as hiking, aesthetics, and camping; and (3) “indirect uses” such as reading books or watching programs on open space-related resources or activities. In contrast to use value, nonuse values consider an individual’s possibility for future use, or their altruism. Two broad types of nonuse value are recognized: “option value” and “existence value.” Option value represents an individual’s willingness to pay to maintain the option of using open space in the future. Existence value represents an individual’s willingness to pay to ensure that some resource exists. Part of the motivation for existence value may be the desire to bequeath the resource to future generations. Expenditures from Open Space Related Activities Activities directly or indirectly associated with open space may generate significant expenditures and provide an important source of revenue for businesses and state and local governments. For example, revenues from hunting and fishing license sales area major source of funding for state wildlife agencies. The fish and wildlife populations supporting these activities rely on habitat provided by open space. Less direct but perhaps more important from an overall economic perspective are expenditures from open space related activities such as hiking, hunting, fishing, bird watching, nature photography, snowmobiling, skiing, and mountain biking. Such expenditures include the purchase of equipment, travel costs, lodging and accommodations, guide services, meals, groceries, etc., as well as attendant service jobs. These expenditures OPEN SPACES cont. on page 13 CLOSE OU T SALE Tecnica Racer Jr. $ Reg. $120.00 Tecnica TJ Jr. $ Reg. $175.00 Tecnica 4 9 95 5 9 95 TS7 or TS10 $ Reg. $295.00 Ken Turner 940-9000 340 S. 7600 E. Huntsville List Price: $259,900 List Date: November 14, 2002 Contract Date: November 26, 2002 Days On Market: 12 Please visit my website@: Ent e r N ort h side & Ba ck of bldg. M on. - Fri. 3 P.M . - 6 P.M . Choose from Tecnica - Duo70, TI4 TC1 or Lange XR7 (Values to 350.00) Gloves - all 1/2 price or less 9995 Over 130 pair new boots CHOOSE FROM Tecnica - Exp. X, TNS, TC3 Lange XR8 & 8.5, Banshee XR9, XR9 Race, Z9, Z9 Race Rossignol Course, Course E, Course K. (Values to 585.00) www.kenturner.org To All My Clients and My Team Of Professionals: Thank-you for making 2002 a RECORD year, #1 Sales in the Ogden Valley! I look forward to helping you with your Real Estate Needs in the future at my new convenient Ogden Valley location: RE/MAX Associated Realtors, 2555 Wolf Creek Drive, Eden. At the Valley Market! 7 9 95 FREE Allsop Boot Carrier with every boot purchase $12 Value CLEARANCE 50% to 70% OFF HURRY FOR BEST SELECTION Suits Parkas Powder Pants Bibs Sweaters Skis Cross Country & More 17995 Used Rental & Demo Boots 1000 - 1500 - 3000 - 5000 Mon. thru Fri. 3 p.m. - 6 p.m. |