ORD-2012-002 Budget Amendment #5-C - Conservation Easement Dennis & Linda Brooks

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complement assistance from the Orange Soil and Water Conservation District that will restore vegetative stream buffers, fence cattle from all streams, and provide an alternative source of water with separate funding from the NC Conservation Reserve Enhancement Program (CREP), the USDA Farm Services Agency, the Upper Neuse Clean Water Initiative, and the Town of Hillsborough. CREP will require there be a permanent riparian buffer easement held by the State of North Carolina. The two-pronged conservation project will eliminate a considerable source of nutrients from entering Sevenmile Creek and Hillsborough's water supply. It would also restore and protect 8,000 linear feet of stream buffers along Severimile Creek and Rocky Run. The planned agricultural and watershed protection conservation easement area is depicted on the attached site map. A draft deed of conservation easement is also provided. FINANCIAL IMPACT: The purchase price of the conservation easement is $655,000, which was determined by an appraisal of the fair market value by Kirkland and Associates. DEAPR has worked with the Eno River Association and other project partners to identify the following funding sources: Orange County (Lands Legacy) $ 312,928 Eno River Association (Healthy Forests Grant) 252,843 Upper Neuse Clean Water Initiative (City of Raleigh) 54,000 NC Conservation Reserve Enhancement Program 18,800 Town of Hillsborough 6,157 Landowner donation 10,272 $ 655,000 The total cost of the Brooks conservation easement is approximately $657,000, which includes transaction costs but excludes a $10,272 landowner donation. The County's share of the cost is approximately $325,0,00 — the $312,928_to purchase the -County's easement plus survey and closing costs. County funds would come from existing funds budgeted for the Lands Legacy program and previously appropriated. This project would exhaust the remaining $131,976 allocated for conservation easement purchases. The subject property is enrolled in the Present Use Value taxation program, so the acceptance of 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 (and extinguishing of a portion of its development rights) would not lower the property value to a level that is less than present use value ($681,242). Budget Amendment #5-C provides for the receipt of $331,800 in grant and partner funding, and the use of existing County funds of $324,328 ($190,352 from the Lands Legacy Capital Project for Conservation Easements transferred to the Conservation Easements Capital Project), and $133,976 in available funds within the Conservation Easements Project. See amended Capital Project Ordinances below: