The Oregon Supreme Court yesterday upheld Measure 37, which voters approved in 2004. It requires the state to either compensate property owners who lose value due to state land use regulations, or to forego the regulations. Outside of urban growth lines, most of the state is zoned for farming or forestry, and this has led to numerous conflicts involving landowners who want to develop some portion of their property, especially in the Willamette Valley. The ruling is good news. It is a blow to the Watermelons (green on the outside, red on the inside) who believe statist intervention in rural land use matters is necessary to prevent the desecration of the countryside. Let those who want to preserve developable land in a pristine state pay for it themselves.

The Washington Farm Bureau will be trying to get on the ballot in this state Initiative 933, which is less sweeping than Measure 37; it would allow compensation to property owners in response to regulations dating back just to 1995, as opposed to any time after they bought the property. Nonetheless, the Oregon ruling may buttress the legal foundations of Washington's I-933 should it qualify for the ballot, be approved by voters, and then face legal challanges. Washington Farm Bureau government affairs director Dan Wood tells the Seattle Times:

....the (Oregon high court) ruling would undercut an argument of the (Washington) initiative's opponents; some had said after (Marion County, Oregon judge Mary) James' (October 2005) ruling that it would be difficult for the Farm Bureau to craft a law that passed constitutional muster. "They've been saying Measure 37 is unconstitutional and our initiative is like Measure 37," (Wood) said. "Now they're caught in a lie twice."....Andrew Cook, a lawyer in the pro-property-rights Pacific Legal Foundation's Bellevue office, said the Oregon court ruling could help I-933 if it passes and is challenged. "Courts do look to other states," he said. "This sets a good precedent for Washington state."

Many legal questions remain on property-rights compensation in Oregon, centering around state and local regulations, ensuring there will be no suddenly huge changes in the rural Oregon landscape. But some necessary economic growth could result, maybe even along 99W from Corvallis into the South Willamette Valley, which is often dotted with family farms for sale.

To help resolve claims against the state which are now expected to to proceed with Measure 37's approval by the court, the legislature will consider setting up a compensation fund.