ORD-2010-095 - Budget Amendment #5-A - Purchase of a Conservation Easement

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2 their property. In 2008 the Eno River Association purchased 179 acres for a nature preserve with assistance from the State of North Carolina and Orange County. The Eno River Association is speaking with other property owners interested in conserving their land. DEAPR Staff and the County Attorney are working with the Volpes to prepare an agreement that meets both their needs and the County's interests. The conservation easement would prohibit future subdivision and ensure that the property remain in its natural, forested condition. All future development rights would be extinguished except for an allowance for nature trails and one small shelter (gazebo). DEAPR staff would monitor the property on an annual basis, in conjunction with the previous easement granted by the Volpes. A copy of the draft easement is provided as an attachment. FINANCIAL IMPACT: Mr. and Ms. Volpe intend have agreed to "sell" the conservation easement to Orange County for the appraised value of $26,000. The estimated cost to the County would be $26,000 plus another $5,000 for transaction costs (appraisal, title search and closing fees). DEAPR is awaiting a decision by the City of Raleigh to contribute up to $5,200 for the project through the Upper Neuse Clean Water Initiative - a program that provides matching funds for projects that will help protect water draining to Falls Lake. Those funds were requested by the Eno River Association. The total cost to the County would be $31,000, up to $5,200 of which would be reimbursed in early 2011 if funds are awarded by the City of Raleigh. The County funds would come from existing funds budgeted in the Lands Legacy Conservation Easement Fund, approved by the Board of Commissioners in FY 2002 -03 and previously appropriated. The conservation easement would diminish the overall market value of the Volpe land holdings by an estimated $26,000 as determined by a recent conservation easement appraisal. Budget Amendment # 5 -A increases the project budget by $31,000 from existing funds in the Conservation Easement Project. Conservation Easements: Project # 20006 Revenues for this proiect: Appropriated for this proiect: Through FY 2009 -10 FY2010 -11 Amendments Dec. 14, 2010 Amendment FY 2010 -11 Revised Sales Tax & Dedicated Property Tax $350,000 $350,000 Private Placement 3,000,000 $31,000 3,000,000 Grant Funds 3,547,707 $322,000 3,869,707 Transfer from Lands Legacy Ca ital Project 143,000 143,000 Total Project Funding $7,040,707 $322,000 0 $7,362,707 Appropriated for this proiect: Through FY 2009 -10 Prior Years Amendment Dec. 14, 2010 Amendment FY 2010 -11 Revised Walters Easement $725,000 $725,000 Volpe Easement 73,100 $31,000 104,100 Cheek Easement 580,000 580,000 McPherson Easement 68,000 68,000