DNRC outlines land-banking program, fund balance and acquisition challenges

Seth Goodwin, land section supervisor with DNRC’s Real Estate Management Bureau, presented an overview of the land banking program, its statutory history and recent performance. He told trustees the program—created after HB 223—has supported 679 sales totaling more than 90,000 acres and 23 acquisitions totaling over 98,000 acres, and that the current land-banking fund balance is ‘‘over $40,000,000.’’

Goodwin explained statutory constraints, including rate-of-return and net-revenue tests and a 10-year limit on holding proceeds before they must be deposited into the permanent trust. He said cabin-site sales tend to produce higher rates of return and complicate replacement of like-value lands. ‘‘We have a current balance of over $40,000,000 with $5,500,000 anticipated to move to the permanent fund by the end of 2028 if not designated for an acquisition prior to that time,’’ Goodwin said.

Public commenters and trustees asked whether the program is meeting its original intent and whether DNRC should seek legislative changes to address market competitiveness and appraisal limits. Kevin Farron of the Montana Wildlife Federation urged the board to prioritize spending the fund to increase public access and noted urgency because some dollars could revert to the permanent fund if not committed. Commissioner Brown pressed DNRC on competitiveness in the current market; DNRC staff said it is frequently unable to match multiple private bids above appraised value and that no legislative proposal is currently under development by the agency.

DNRC staff said they have developed internal metrics to quantify gains in public access but have not yet tested them on an acquisition. Commissioners asked for further analysis and options to make the program more effective as a complement to the land exchange process.