Agenda - 11-19-2013 - 4a - Laserfiche WebLink

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recognized as a large, undeveloped woodland corridor that serves as an important wildlife reservoir. DEAPR Staff and the County Attorney are working with the owners to prepare an agreement that meets their needs and the County's interests. The conservation easement would allow them to live on their property with residential uses restricted to a defined "Residential Envelope" and "Agricultural Envelope." The easement will prohibit future subdivision, prohibit future house sites, and preserve the mixed hardwood forest and stream corridor in their natural condition. All future development rights will be extinguished. DEAPR staff would monitor the property on an annual basis. A copy of the draft easement is attached. FINANCIAL IMPACT: The landowners, Brian Dobyns and Katherine Bliss, intend to grant a permanent conservation easement to Orange County. The easement would reduce the property's market value by $157,000 (as determined by an appraisal). The owners intend to donate 25% of the easement value, which is considered a "bargain sale." Hence, the proposed purchase price for the easement is $117,000 (75% of the easement value). The cost to the County would be the $117,000 purchase price plus an estimated $8,000 in transaction costs, including the easement survey, title search and closing fees. Those funds ($125,000 total) would come from existing funds budgeted in the Conservation Easements Capital Project approved by the Board of Commissioners for FY 2013 -14. 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 portion of its development rights) would not lower the property value to a level that is less than present use value ($57,430). The owners will take advantage of the NC Conservation Tax Credit program — available for easement donations — before the program expires December 31, 2013 due to legislation enacted by the NC General Assembly in 2013. The owners will also qualify for enhanced federal tax incentives for easement donations, which are also due to expire at the end of 2013. RECOMMENDATION(S): The Manager recommends the Board adopt and authorize the Chair to sign the resolution approving the acceptance by Orange County of the conservation easement and authorize the Chair and the Clerk to sign the conservation easement agreement, subject to final review by staff and County Attorney, with a closing and recordation of the document expected to occur on or about December 15, 2013.