Land of the Free

(4 of 4)

Such failures offer lessons. Free land alone is not enough. Struggling towns need to attract folks who bring incomes with them or will commute to a larger city for work. And the towns are not above a little salesmanship. So Ellsworth, where Wild Bill Hickock once roamed and locals insist they know more about Wyatt Earp than his biographer does, promotes itself as "the wickedest cow town in the West." Prowers County, Colo., appeals to bird watchers with its 400 species. Atwood, Kans., tells hunters about its bountiful wild turkey, pheasant and deer. Six counties in northwestern North Dakota share a website prairieopportunity.com and play up the area's high-speed Internet access.

But for all the effort, the fate of these rural towns may have more to do with their proximity to a large city than anything they can do for themselves. Last October the Center for Rural Affairs in Lyons, Neb., published a study on land giveaways that concluded, "The most successful projects are those towns close to and within easy commuting distance of larger cities." That's where the jobs are, pure and simple.

The first real success was scored by Hendrum, Minn., less than 30 miles from Fargo, N.D. Since launching its land giveaway in 1994, Hendrum has added 18 homes--not exactly a boom but the first construction in at least a decade. "It has brought a lot to our town," says John Kolness, head of the local economic-development authority. Land values are rising, he says, and Main Street is picking up. The population decline has slowed significantly, and the town still offers free land to folks who will build on it.

Minneapolis, Kans., started a successful program in 1999. But it wasn't until Marquette enjoyed huge success with its program in 2003 that word spread, inspiring copycats. Marquette, within an hour's drive of Salina and Hutchinson, bought 50 acres of wheat field on the west side and began laying streets and utilities. All 82 lots have been taken; 23 new homes are finished or being built. The city's population, which had been falling, is now 650--up from 527 a year ago--and 45 kids have been added to the elementary school, says Mayor Piper. The giveaways "saved our school and rekindled a lot of pride in this town."

Jose Carillo, 35, is so convinced that land values are coming back in Marquette that after building his own house on a free lot, he took another and is building in hopes of selling quickly for a profit. "This is a great opportunity," he says. For the town too. --With reporting by Sarah Sturmon Dale/New Richland, Pat Dawson/Chugwater, Rita Healy/Denver, Chris Maag/Whiting, Marguerite Michaels/Chicago and Eric Roston/Washington