Agenda - 08-21-2012 - 7a - Laserfiche WebLink

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002 Orange County Agricultural Preservation Board, having enrolled his farm in the Voluntary Agricultural District program in 2010. The Thompsons intend to grant a conservation easement on the core areas of the farm that include the prawn ponds and cropland used to produce feed for the prawns. The easement will exclude an existing home site and a small portion of the farm located across Allie Mae Road. The conservation easement will also exclude the strip of land along Back Creek, which is being considered for a separate conservation easement by the NC Clean Water Management Trust Fund (CWMTF). All other non - agricultural development will be prohibited by the conservation easement. Future farm activities will continue in accordance with a Conservation Plan prepared for the farm by the Orange NRCS /Soil & Water Conservation District. A copy of the draft deed of conservation easement is attached. The conservation easement would be held by the Black Family Land Trust, but the County Attorney recommends that if that organization ever ceases to exist or is no longer qualified to hold the conservation easement, then Orange County would assume those duties and responsibilities through its Lands Legacy Program. Orange County is identified in the deed of conservation easement as a back -up easement holder (or "grantee "). Thompson farm is located within the Back Creek Protected Watershed, which the County identified as a priority watershed for acquiring farmland easements in a dual effort to protect prime farmland and drinking water quality. Back Creek forms the western boundary of the property before it flows southwest into the Graham - Mebane Reservoir — a principal source of drinking water for Alamance County. The conservation easement conforms to federal and state guidelines from the federal FRPP and state ADFP Trust Fund, which will contribute matching funds to complete this project. FINANCIAL IMPACT: The purchase price for the easement is $120,500, which is 97 percent of the appraised value ($124,000) as determined by an appraisal. Funds for the easement purchase would come from three sources: $45,000 from the federal Farm & Ranch Land Protection Program, $45,500 from the North Carolina Agricultural Development and Farmland Preservation Trust Fund, and $30,000 from Orange County through its Lands Legacy program. The County would also pay up to $6,000 in transaction costs, including the boundary survey and closing costs. The County's share of funds ($36,000) would come from existing funds budgeted for the Lands Legacy Program. The subject property is enrolled in the Present Use Value taxation program, so the conservation easement would not lessen the amount of property taxes paid to the County. The decrease in the property's market value caused by the conservation easement would not lower the property value to a level that is less than present use value. RECOMMENDATION(S): The Manager recommends that the Board authorize the County's contribution of $36,000 toward the purchase of a permanent conservation easement for the Thompson farm in Cedar Grove, and authorize the Chair and the Clerk to sign the conservation easement agreement, subject to final review by the staff and County Attorney, with a closing and recordation of the document expected to occur by September 30, 2012.