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DEAPR Staff and the County Attorney have worked with the landowners to prepare an
<br />agreement that meets their needs and the Gounty's interests. The easement will aliow for
<br />one #uture 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 NRCS/Soil & Water 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 of
<br />Agriculture's Farm and Ranch Land Protection Program, which will contribute federal funds to
<br />this project. The USDA is in the process of reviewing the appraisal, deed of easement, and
<br />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 $500,000,
<br />which is 95°/a of the appraised value. The Sykes family intends to donate five percent of the
<br />value ($38,000) 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 />(50%) would be paid with a 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 $520,000. 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 (and extinguishing of portion of its development rights) would not lower the
<br />property valus 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 />Project # 20006
<br />Ravani iac fnr thic nrniPCt'
<br /> Through FY Prior Years
<br />Project Close FY2010-11 May 3, 2011
<br />Amendment FY 2010-11
<br /> 2009-10 Out Amendment Revised
<br />Sales Tax & $350,000 ($337,056) $12,944
<br />Dedicated Property
<br />Tax •
<br />Private Placement 3,000,00.0 2,409,368 590,632
<br />Grant Funds 3,547,707 2,063,181 $1,162,526 $264,000 586,000
<br />Transfer from Lands 143,000 (143,000) 0
<br />Le ac Ca ital Pro'ect
<br />Total Project $7,040,707 ($4,952,605) $(1,162,526) $264,000 ~1,189,576
<br />Fundin
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