I had the luxury of recently attending the RLI National Land Conference in Dallas, TX. Growing up in Rockwall, TX, it was really neat to be at such a big event so close to my original home town.
This conference was really special to me this year as I had an important guest with me. I was fortunate enough to introduce my mother to several of the members. Being a top producing residential broker in the Dallas area for Ebby Halliday Realtors, she greatly enjoyed meeting the different farm and ranch brokers around Texas and seeing what our organization is all about.
Our Colorado chapter was well represented at the conference with 10 of us in attendance. Camaraderie was great, and the networking opportunities that were available were superb. Our chapter is well known, as I had several people from different RLI chapters make comments to me about how respected our Colorado chapter is across the country.
The highlight of the event for me was hearing Dr. Mark Dotzour and K.C. Conway speak during the Economic Outlook session. This was my second time to hear both of these fellows, and both times they've been excellent. Both of them commented that a big driving force for our economy right now is new vehicle purchases, yet there is unfortunately sub-prime lending happening frequently in this industry. With the price of oil being down around $40 a barrel, and the stock and bond market being being extremely volatile, they both think that people will continue to want to purchase real estate as investments in their portfolios. With it being an election year, they both commented there will likely be a lot of buyers sitting on the fence this year with big purchases.
Next year's conference will be in Charlotte, NC the weekend of March 24, 2017. I recommend you put that on your calendar now so that you can plan on attending. I look forward to seeing y'all in Breckenridge on May 5th.
Justin Osborn, Realtor
The Wells Group
May Meeting – May 5 & 6, 2016 – New Location for this Year’s Meeting
The meeting this year will take place at the Beaver Run Resort & Conference Center, Breckenridge
Thursday, May 5th - Membership meeting, marketing session and Cowboy Auction/Reception
Friday, May 7th – Education session – "Mapping Workshop for Ranch Brokers – Impacts to Real Estate". Mapping is the language of the ranch broker! This class will provide you with tools to create, display and produce maps utilizing best practices. Second, it will provide you marketing tools for your website, print and interactive showing tools; and lastly, it will demonstrate the significance of mapping as it relates to your clients and business. The course has been approved for four (4) hours continuing education credit and will be taught by Chapter member and 2015 Land REALTOR® of the Year, Joey Burns.
Deadline for hotel reservations is April 4th, so make your reservation today. Need to call for your reservation, the phone number for Group Reservations is: 800-525-2253. Please reference "Realtors Land Institute"
Registration for the marketing session and/or education session is available online.
National Land Conference, March 12, 2016.
Report from the Government Affairs Committee and presentation by Russell W. Riggs, RLI Government Affairs Liaison, NAR.
The Government Affairs Committee heard an update from Russell Riggs about legislative and regulatory issues that might affect land and ranch brokers in the United States.
Russell reminded us that RLI can call upon NAR lobbyists, research, legislative and regulatory analysis for land issues that might be important to RLI or our members. He also encouraged participation in RPAC to support members of Congress that support our issues and for us to use the Land Use Initiative when we need that service. The LUI is the free NAR regulatory analysis service that can analyze any new local or state regulatory or ballot issue that might affect property rights.
Waters of the U.S. Regulation (WOTUS) - The Clean Water Act regulates navigable waters of the U.S. The EPA/Corps wants to regulated more waters (All waters!) WOTUS regulation was blocked and temporarily stayed by the 6th Circuit. Congress has passed bills to stop WOTUS but those bills have been vetoed by the President. NAR/NAHB have filed an amicus brief in support of Hawkes v. Corps of Engineers along with other legal challenges.
The National Flood Insurance Program is authorized until 2017. NAR is supporting a continuation of the NFIP but with changes that will slow the rate increases in a more gradual way for homeowners, reinstate grandfathering, improve the appeal process, and provide flood map funding.
Unmanned Aerial Systems (Drones). There is a growing demand for many uses including commercial uses, but only if an operator has a Section 333 permit. Concerns are Safety, National Security and Privacy. There are now more people licensed to operate a drone in the U.S. than have pilot’s licenses.
2017 Budget Items: On February 9, 2016, President Obama released his 2017 fiscal year budget, which begins on October 1, 2016. This budget permanently reauthorizes the Land and Water Conservation Fund at $900M. Currently the LWCF budget is $450M for one year. NAR supports the new LWCF, but with some reforms and restrictions. The Conservation Easement deduction tightens eligibility standards and definitions of a deduction.
Positive Legislation! H.R. 1155, the "Searching for and Cutting Regulations that are Unnecessarily Burdensome Act" or "Scrub Act" would establish a commission to evaluate and discard old rules. Russell will keep us posted on what happens with this bill.
George R. Harvey, Jr.
Owner/Broker, The Harvey Team
The Great Colorado Experiment:
Do MMJ businesses affect the value of Real Estate and do they have a negative or positive impact?
When Colorado voters approved Amendment 64 it legalized the possession, use, display, purchase, transport, transfer, and consumption of one ounce or less of marijuana and possession of such plus possession of marijuana accessories by persons twenty-one years of age or older within the State of Colorado (as opposed to federal law). Local municipalities such as counties, cities and other unincorporated areas are using the Colorado Retail Marijuana Code to provide a statutory framework for the regulation of retail marijuana establishments under their jurisdiction.
Local governing bodies are attempting to regulate marijuana operations in the same manner in which they have regulated liquor stores in the past by establishing perimeter requirements between such operations, schools, halfway houses and the like and other types of MMJ businesses. (Example 1000 feet.)
Therefore, reminiscent of Colorado Water doctrine "First in time, first in right", does it stand to reason that MMJ doctrine is "First in line (time), first to the bank"? If you establish your MMJ operation (Building A) and it limits the neighboring property (Building B) of similar value and use due to distance restrictions between such facilities, does this devalue Building B? This seems like legitimate question based on the recent trend we have seen of MMJ buyers paying a premium for commercial space, leased or purchased. (Just try to find available warehouse space in Denver these days.) These businesses make a lot of money folks, as I am sure you are aware!
According to one commercial appraisers opinion, specific trending of one property vs another has not been noted, although he has seen lease rates which appear substantially inflated for warehouse and other property types, even vacant land, where marijuana business is conducted. The more significant problem seems to be sales that fall through because lenders, who are federally regulated and insured, have gotten nervous over the use. (It’s important for people to remember that all aspects of the MMJ business are still against federal law.) Until this changes, when appraising properties with this use, there will be a lot of discussion in the appraisal report regarding benefits vs risks.
Other experts speculate that the quality of the operation has the most impact on neighboring values. In other words, if the MMJ business is a good player and maintains their property by mitigating odors for example, it could possibly increase the value of surrounding properties. Certainly there are plenty of other businesses that you might not want in proximity to your existing business or Real Estate concern such as adult bookstores, halfway houses or a child care facilities. There are examples of small communities allowing marijuana retail stores clear out by the interstate only to have the local downtown merchants protest. "If consumers are going to pull off the highway, at least have them come all the way downtown for a cup of coffee (or an entire pie) while they’re at it!"
The jury is still out on this one ladies and gentlemen, since a discernible pattern has not been established yet. Although no negative impact has been noted, neither has a recorded comparative analysis been done.
Kem Winternitz, ALC
Managing Broker, United Country Timberline Realty, Inc.
The dates for this year’s Open Fences Land Tour are June 9 and 10. David Light with Open Fences is going to be the primary sponsor for our annual land tour. David’s energy and expertise will help our land tour be bigger and better than ever. American Ag Credit will also continue on as a sponsor of the land tour.
Complete submission requirements are printed elsewhere in this newsletter. The submission deadline this year is May 2, 2016. The recipient of this year’s tour will be announced May 5 at our Breckenridge spring meeting. The land tour committee will select the tour that is most beneficial to our Colorado chapter. Submit your application to Maggie Thomas or myself by May 2, 2016.
I encourage all members to attend this year’s Open Fences Land Tour. It is an excellent opportunity to see ranch properties in a different part of the state. It’s also an opportunity to network and hang out for two days with the best land brokers around. We had exceptional land tours all over the state with as many as 75 attendees. With David Light’s and Open Fences commitment, this should be the best land tour yet.
Steve Fleming, ALC
2015 LAND REALTOR of the Year
Justin Osborn presenting Joey Burns the Land REALTOR of the Year trophy at the January meeting.
ALC Course Offerings .... Coming Soon!
The Wyoming Chapter is offering "Land 101, Fundamentals of Land Brokerage" on Thursday/Friday, June 16 & 17th in Casper, WY. The course will be taught by Colorado Chapter member and instructor, Kirk Goble, ALC. Register for the class or download copy of registration form.
The Colorado Chapter will hold the new ALC course, "Mapping and Practical Navigation" on Thursday/Friday, October 6 & 7th , at the Double Tree Hotel in Breckenridge. Not only will you have the opportunity to take the class, but make it a long weekend and check out the fall colors in the mountains. More information and registration will be available on the Chapter website in April.
Chapter’s Annual Land Tour
Submit your properties to be considered for the annual land tour June 9 & 10, 2016.