Under the present tax rate, undeveloped land out in the swampy boondocks is assessed from $50 to $60 an acre. Farm land carries a little higher assessment and has been set at $340 an acre, while groveland runs from $700 to $900

an acre.

Just how much taxes are able to cut into a land investment is explained by Ieon Ell of Miami Beach, who owns 4,000 acres of land west of Krome Ave.

Ell said he's owned the land for about 20 years and during that time his total payout on taxes has been about $80,000. "I probably should have put my money into something that would show some earnings," he said.

Ell said he hasn't been able to sell the land probably because he prefers to offer it in one huge parcel. "You can cut a tract like that into small parcels and sell it profitably," he commented. "But it would be a shame to break up such a large piece of land," he added.

Hoke Maroon, one of Dade's leading bankers who holds several large tracts, in South Dade, concurs with Ell on the tax situation. However, Maroon said that when he purchased his tracts from 15 to 20 years ago he had a choice of buying in either North or South Dade.

"I should have purchased in North Dade," he said, “because it developed more rapidly. And the price of land at that time was about the same in both areas." Maroon offers another reason why he should have purchased in North Dade. "If you'll check the facts you'll find that the first growth of every city in Florida was toward the north before it started in the south," he commented.

The banker said that when he purchased his tracts land was selling from $125 to $135 an acre. "It's probably worth from $500 to $600 an acre now," he added. Florida Business Research, Inc. of Coral Gables keeps rather extensive records on sales of undeveloped land. Their records date back to 1959 and during that time price averages have been showing some increase.

For example in Township 54 which is just south of the Tamiami Trail the average price per acre in 1960 was $76. In 1962 the average went up to $82, and last year it was $105. Naturally some of the sales were for more money and others less.

Land sales statistics kept by Florida Business Research tell some interesting stories. For example in Township 54, range 39, which is east of Krome Ave. and south of Tamiami Trail, the sales action was rather brisk in 1964. And the average price per acre ran from $450 to $4,430.

However, just across Krome Ave. in Township 54, Range 38, there were few sales and the average price per acre sagged to $200 to $764 an acre.

Since most of the land east of Krome has drainage it commands higher prices because of its development potential. The land west of Krome is awaiting drainage and is expected to increase in value when the canals are sliced through the area.

Florida Business Research has predicted that 1965 will probably be one of the top years in the sale of undeveloped land. Prices haven't taken much of an increase, but there are indications that the story will be different in the next five years.

[From the Miami Herald, Aug. 21, 1966]

ON LAND SALES-SHOWDOWN VOTE FACED BY ILSB

(By Fred E. Fogarty)

Florida's Installment Land Sales Board, the state's regulating agency over the contract land sales industry, may be headed for an explosive showdown at its next meeting on Sept. 2.

After several postponements, an investigative report on certain sales practices of the giant Gulf American Land Corp. reportedly will be placed before the board for possible administrative action.

Biggest problem confronting the board is whether they will be able to muster a quorum in order to vote on the case. It takes three members but absenteeism has been somewhat noticeable at recent meetings.

Complicating matters is the recent resignation of Elmo Robinson of West Palm Beach. Robinson, one of two non-developers on the board, has taken a post with the state comptroller.

A VACANCY ON THE BOARD

Robinson's post hasn't been filled by Gov. Haydon Burns. And efforts to reach the governor's administrative aide last week for information on the pending appointment proved futile.

Adding further to the land board's problems is the fact that Leonard Rosen, chairman of the board of Gulf American, is also on the land sales board.

A land board official said that in most instances when a vote is required on a case involving a company which is connected with one of the board members, the member usually abstains.

Unless Robinson's post is filled by Sept. 2 that will leave only Elliott Mackle, vice president of the Mackle Co.; Jerry Gould, president of Lehigh Acres; and Howard Hirsch, an attorney, as the only voting members.

If one member can't attend the meeting, it means no vote.

MACKLE'S TERM EXPIRES

At the same time there will be another vacancy on the Board on Sept. 19, Mackle, who was appointed to the post when the board was formed under Gov. Farris Bryant, will see his three-year term expire.

Rumor indicates that Mackle, who is board chairman won't be reappointed. And at the same time it has been reported in government circles that Rosen may resign.

If rumors become reality that means Gov. Burns will appoint at least three new members before he leaves office in January. Two of the appointments would be developers and one would not be associated with the industry.

The land sales law in setting up the board has been under fire for several years since it calls for three developers and two outsiders. The theory is that the industry should have one or two developers represented to offer guidance on administrative matters.

Regardless, the meeting of Sept. 2 at Tampa could turn out to be an interesting

session.

ROSEN GETS NEW OFFER

Meanwhile Senate subcommittee hearings in Washington by the House Banking and Currency Committee indicate a need exists for federal controls. Florida has been a major target in recent hearings, mainly because of its world-wide leadership in mail order sales.

The subcommittee, which is headed by Harrison A. Williams (D., N.J.), is reportedly optimistic over the chances of obtaining a federal land sales law. An aide in Sen. Williams' office predicted last week that the bill probably won't have much trouble getting out of committee and onto the floor.

William's office also announced that a new invitation was being extended to Leonard Rosen, board chairman of Gulf American, to testify before the subcommittee.

Rosen, scheduled to testify last week, cancelled out and explained it was due to the "press of business" and "airline problems."

The senator's office said they would be glad to reopen the hearings any time that Rosen can be in Washington.

OTHER STATES ARE CITED

Florida isn't the only state that has received adverse publicity on land sales. Such states as New Mexico, Arizona, California, and Oregon have been cited at various times.

Although the Senate subcommittee hasn't turned up any such cases, one of the flagrant and unusual practices their investigators should try to uncover is an operation called "double-decking."

The word is an industry term which means selling the same parcel twice, or even three times.

The theory among shady operators is that the chances of one of the buyers completing the lengthy payout contract is remote. Therefore, if a buyer cancels out after several years, there's no vacancy problem since a second buyer has also been making payments.

And if both buyers complete the contract, then the company can claim error and offer a nearby property to one of the buyers.

Figures at left on graph indicate year of sales and the figure at right is the average price paid per acre. The figures in the center of each large square indicate the township and range. The area is about 18 miles west of Krome Ave.-Graph by Florida Business Research, Inc.

ITEM 4-SAMUEL T. FREAR EXHIBITS

[From the Eugene (Oreg.) Register-Guard, Emerald Empire, Sept. 12, 1965]

SUBDIVIDING THE WIDE OPEN SPACES

Oregon subdivisions aimed primarily at out-of-state buyers have become a multi-million dollar business. This article is the first of four dealing with the land that's for sale and the people who are rushing to buy it.

(By Sam Frear)

Even with sun and palm trees and ocean beaches, the curses of urbanization become overpowering for many Californians. There are freeways six lanes wide that cross, recross, bisect, intersect and dissect every city. There are cars by the millions. They jam every road, stuff every parking space, choke every intersection.

Even "hideaway" retreats become carnivals of activity. Tents spill over from campgrounds into picnic areas. Everybody, it seems, has a boat, and lakes resemble giant yacht anchorages. There is, for some, the sense of being crowded out of life. Everywhere there are people, people, and more people. There are corridors of hot dog stands, drive-in movies, used car lots, supermarkets, shopping centers and millions of acres of houses and apartments that

seem to sprawl on to infinity. Then there is smog. Not merely a light-gray morning haze, but a choking brown blanket of airborne garbage that makes eyes water, noses itch and lungs burn.

Many Californians find themselves trapped, with nowhere to hide. And then, lo-they discover Oregon! Cool and green and inviting. A soothing antidote for all their woes. Responding to graphic descriptions of friends, or to refreshing multi-color magazine pictures, to carefully worded advertisements-the Californians head northward.

Anyone traveling around Oregon can see it is becoming California's playground. Camping spots on the coast have one California car after another parked at each site. Motels find summer business boosted high by California money.

But there is another aspect to the California invasion of Oregon, one that is apt to escape the notice of native residents. Californians are "buying in." Thousands want to buy for their very own a piece of the "cool, green vacationland" they see advertised so heavily on television. Some, as it turns out, find themselves purchasing a few hot, brown acres instead. But they don't seem to

care.

"It's wonderful." "Marvelous." "Great!"

These comments by California owners of Oregon real estate are typical of hundreds. Their ecstatic praise can be found in register books, in letters, and in personal conversation.

"I'm not much on fishing anymore," says Fred Cairnes of Daly City, Calif., an owner of five acres in Christmas Lake Valley. "But I like the atmosphere, the air is clean, and there's no hustle and bustle."

Mrs. Bert Dela Croce, of Winchester, Calif., owner of 221⁄2 acres that are 100 miles from any town of any consequence, "really likes Oregon. We're tired of traffic and freeways."

“I love this country," says George Marano, waving his arms at thousands of acres covered only by sagebrush. The ebullient chef from Los Angeles gazes joyfully across the scraggly vista. "Here we can find everything we love."

"When L. W. Spencer, a retired telephone company employe from Monterey, Calif., is asked why he bought several acres near Sisters, he merely raises his arms like a swimmer doing a swan dive. "This tells the story," he says. "I want room."

Theodore Linsmeier, 77, a retired carpenter from San Joes who speaks with a slight German accent, owns 22 acres of pine forest land 25 miles west of Klamath Falls. It is quiet, and he likes it that way. "Here," he beams, "we can get away from it all." "I've talked to so many people who have purchased land in Oregon," says Lake County Judge C. W. Ogle, standing in his shirtsleeves on the lawn near a modern courthouse. "And if you have been to Los Angeles you can appreciate what they mean. They are tired of people running over each other. So they can buy 10 acres here in Lake County and it seems awful cheap to them. And then they can say, "This is mine!' And this is important, to oh so many." And, oh so many are buying land in Oregon. Since many buy on contract, there is no way to pin down exactly how many people are buying how many acres, or precisely what they are paying.

Oregon's Real Estate Commissioner, Robert Jensen, several years ago estimated that more than 300,000 acres of Oregon land is being offered for sale or has been sold, primarily to out-of-state residents. But this is a booming business and Jensen now believes this estimate is low. And no wonder:

Christmas Lake Valley, subdivision in the high desert country of Lake County contains about 82,000 acres alone. Meadowland subdivision in Harney County contains some 55.000 acres. Klamath Falls Forest Estates contains another 26,000. These are three of the largest rural subdivisions in Oregon, but there are several hundred smaller ones that add up to another 163,000 acres.

It seems reasonable to estimate that some 400,000 acres of Oregon are now being offered to out-of-state buyers For comparison purposes, this is about the size of Polk County if all rural subdivisions were squeezed together in one unit. It is tougher, however, to estimate how many people have purchased land. Judging by sales in the three subdivisions named above, it appears that there are at least 4,000 to 5,000 out-of-state owners of Oregon. How much have they spent? Nobody knows. About all that can be said for certain is that it's in the millions. All manner of people are buying the land. They are salesmen, retired carpenters, frozen food distributors, electroplaters, stock clerks, mechanics, tech

nicians, gas station operators-in short, people in every known occupation, including movie actors and baseball players. One subdivision even has a teenage boy paying for his lot with earnings from a newspaper route.

Jensen estimates that about 70 per cent of these purchasers buy their property without having seen it. Many of them learned about the land through a radio commercial or a newspaper advertisement.

By mailing a postcard or a coupon, the prospective purchaser obtains a handsome brochure outlining the distinctive merits of the land for sale: "Picture yourself on an Estate of greenness, of beauty, of richness *** with an irresistible power to make you know that the place you have been given was made by God," is how one ecstatic pitch reads.

Another frequently employed sales gimmick is offering prospective purchaser a free plane ride to visit the land. "The whole town is talking about that fabulous all-expense-paid trip to Meadowland Ranches in Eastern Oregon. People are saying 'What's the catch?" *** Why are they offering this trip absolutely free***?" is how a radio commercial in Hawaii begins.

The "catch", of course, is that the vast majority of travelers buy the land they are shown. The plane ride is a very successful sales gimmick.

Just how successful is shown by a lady who purchased land in Central Oregon on the plane ride back to Oakland, Calif.

"The salesman was sitting right behind me," she relates. "The pilot came back and asked if he should land now. The salesman said to wait another 15 minutes as there was still one person on the plane who hadn't purchased yet. They wanted a little more time to work on him. So the pilot went back and a little later an announcement was made that there would be a slight delay in landing at Oakland Airport because of heavy air traffic over the field."

The purchaser generally signs a land sales contract, making a down payment and then, usually in a 62-year contract, pays the balance at 6 per cent interest. What sort of guarantee does the purchaser get that the land will be as represented by the fancy brochures or by silver-tongued salesmen? Only a partial one. Visit the land first, warn the experts.

"Generally speaking, purchasers should examine personally any property they plan to buy, even if this involves travel, inconvenience and expense. Buying sight unseen opens the door to exaggerated description, misrepresentations and deceptions, and it may lead to major dissatisfaction when finally property is viewed." This is from a pamphlet published by the State of California's Division of Real Estate.

"Our best advice," says Jensen, "is to visit the site."

Unless the purchaser can take advantage of the free airplane trips (and veterans of this sales technique report even these are of doubtful value since the tour is accompanied by a high pressure sales pitch) it may be difficult to justify a $400 trip to visit a $395 lot.

So both Oregon and California have special legal protections for the prospective purchaser.

Oregon has a "full disclosure" law-meaning that prospective buyers must be given certain essential information about their property BEFORE they buy. This law was prompted by the concern of the Oregon Legislature in 1963 about promotion of a subdivision in Harney County called Lake Valley.

"Now released for public sale!" advertisements gurgled. "Lake Valley, Oregon. One of the last great unspoiled areas of the West! *** A paradise for sportsman *** For Healthful outdoor living! Hunt! Fish! Swim! Find new happiness in this sun-drenched wonderland where your investment dollar buys unlimited pleasure!"

The ads invited buyers "to the land of snowcapped mountains, waterfalls, rugged lava cliffs, forests, and sage-scented plateaus. Big sky country!"

The trouble is, the swimming isn't too good in Harney County. The nearest fishing was 35 miles away. The nearest boating, 55 miles away. Photos in advertising brochures showed Ice Lake in the Wallowa Mountains, 260 miles away, and Paulina Lake near Bend, 150 miles away.

Today, Lake Valley Estates is deserted. Only by two things is the traveler heading south on Highway 205 from Burns to the Malheur National Wildlife Area made aware that he is approaching the dreamsite of the West.

First, there is a large sign, still fresh and unweathered, that informs the motorist that the flat range of sagebrush is, indeed, the famous Lake Valley, Oregon.