2011-098 DEAPR - Alois Callemyn Survey Sykes Farm Conservation Easement $9,375

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ORANGE COUNTY BOARD OF COUNTY COMMiSSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: August 18, 2009 Action Agenda Item No. SUBJECT: Acceptance of Grant from the Federai Farm and Ranch Land Protection Program for Purchase of Aqricultural Conservation Easement _ DEPARTMENT: Environment and Resource Conservation PUBLIC HEARING: (Y/N) No ATTACHMENT Cooperative Agreement INFORMATION CONTACT: David Stancil, 245-2590 Rich Shaw, 245-2591 PURPOSE: To consider accepting a federal grant from the US Department of Agriculture's Farm and Ranch Land Protection Program for the purchase of an agricultural conservation easement on a farm in Orange County. BACKGROUND: The acquisition of agricultural conservation easements to help preserve prime farmland is a longstanding goal of the Board of Commissioners and a priority of the Lands Legacy Program. During the first eight years of the program, Orange County has helped to protect 1,550 acres of privately owned farmland and natural areas with permanent conservation easements. In May Orange County applied for federal matching funds from the federal Farm and Ranch Land Protection Program (FRPP) to purchase conservation easements on Orange County farms. ERCD was notified on June 29 that the County was awarded $327,383 to acquire an easement on a farm in southwestern Orange Counfy (Bingham Township). Details about the proposed conservation easement will be negotiated and brought back for Board for its consideration and approval at a futu.re meeting. For now, FRPP requires that Orange County enter into a Cooperative Agreement with the US Commodity Credit Corporation in order to obligate federal funds for use by the County. The Cooperative Agreement is similar to ones signed by the County in 2002, 2004 and 2005. FINANCIAL IMPACT: The Cooperative Agreement would obligate $327,383 in federal funds and require an equal share of local match ($327,383) for the County's purchase of a conservation easement. Up to one-half of the local match ($163,691) may be in the form of a landowner donation. Recent practice is for the County to have the landowner donate up to 25 percent of the easement value, which the landowner can then use #o obtain state and federal tax benefits. With the landowner donation, the County's share of the purchase price is expected to be no more than $200,000. There would also be an estimated $10,000 in transaction costs for an appraisal, boundary survey, legal fees and title insurance. The total anticipated cost to the Gounty would, therefore, be $210,000.