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<br />DEAPR Staff and the County Attorney have worked with the landowners to prepare an
<br />agreement that meets their needs and the County's interests. The easement will allow for
<br />one future residence and one farm workers' residence. All other non-agricultural
<br />development rights will be extinguished through the conservation easement. Future farm
<br />activities will continue in accordance with a Conservation Plan prepared for this farm by the
<br />Orange NRGS1Soil & 1lllater Conservation District. DEAPR staff will monitor the property on
<br />an annual basis. A copy of the draft deed of conservation easement is attached.
<br />The conservation easement conforms to federal guidelines pursuant to the US Department
<br />of Agriculture's USDA} Farm and Ranch Land Protection Program, which will contribute
<br />federal funds to this project. The USDA is in the process of reviewing the appraisal, deed of
<br />easement, and other documents required for grant program approval.
<br />FINANCIAL IMPACT: The fair. market value of the conservation easement is $538,000,
<br />which was determined by an appraisal. The purchase price for the easement is $500,040,
<br />which is 95°/° of the appraised value. The Sykes family intends to donate five percent of the
<br />value x$38,040} and take advantage of federal and state tax benefits available for easement
<br />donations. The County would pay $236,000 ~45% of the total purchase price} and $264,000
<br />X50%} would be paid with as grant from the federal Farm & Ranch Land Protection Program.
<br />Including survey and other transaction costs, the total cost of the project without the five
<br />percent donation} is approximately $524,400. The County's share of the total cost will be
<br />approximately $256,000 the $236,000 plus survey and closing costs}, and would come from
<br />existing funds budgeted in the Lands Legacy Conservation Easement Fund, approved by the
<br />Board of Commissioners in FY 2002-03 and previously appropriated.
<br />The subject property is enrolled in the Present Use Value taxation, program, so the
<br />acceptance of the conservation easement would not lessen the amount of property taxes
<br />paid to the County. The decrease in the property's market value caused by the conservation
<br />easement hand extinguishing of portion of its development rights} would not lower the
<br />property value to a level that is less than present use value.
<br />Budget Amendment #9-A increases the project budget to $520,000 from $10,000 existing
<br />funds in the Sykes Easement Project.
<br />Conservation Easements:
<br />Projecfi # 24006
<br />Revenues for this project:
<br /> Throu h FY
<br />9 Prior Years FY2010~11 May 3, 2011 FY 2010-11
<br />
<br />2009-10 Project Close
<br />Amendment Amendment
<br />Revised
<br /> Dut
<br />Sales Tax & $350, 000 x$337, 056} $12, 944
<br />Dedicated Property
<br />Tax
<br />Private Placement 3,000,000 2,409,368 - 59D,632
<br />Grant Funds 3,547,707 2,063,181 $1,162,526 $264,000 586,000
<br />Transfer from Lands 143,000 ~143,D00} 0
<br />Le ac Ca ital Pro~ect
<br />Total Project $'1,040,70? ~$4,952,fi05~ $~~,~G2,52fi~ $264,000 $~,189,51fi
<br />Fundin
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