Agenda - 01-15-2008-3c - Laserfiche WebLink

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the easement. Phase II of the project will be pursued at a later date. The County applied for a grant from the NC Agricultural Development and Farmland Preservation Trust Fund to complete the second phase of the conservation easement. The Breeze farm is located within the Little River 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. Two creeks flow through the farm on the way to nearby South Fork Little River - a principal source of drinking water for Durham County. ERCD Staff and the County Attorney have worked with the owners to prepare an agreement that meets the owner's needs and the County's interests. The conservation easement conforms to federal guidelines pursuant to the federal Farm and Ranch Land Protection Program, which will contribute funds to this project. Colonel Breeze has swell-established conservation plan that is implemented with assistance from the Orange County NRCS field office. Colonel Breeze also has along-standing forest management plan for the wooded portion of property. The property includes the farmhouse and farm office (both ca. 1870), and several agricultural outbuildings clustered within an "Existing Farmstead Area" located close to Schley Road as shown on the attached Site -Map. All future non-agricultural development rights will be extinguished through the conservation easement. Future farm activities will continue in accordance with a Conservation Plan prepared for this farm by the Orange County Soil & Water Conservation District. ERCD will monitor the property on an annual basis. A copy of the draft easement is attached. FINANCIAL IMPACT: The fair market value of the conservation easement is $540,000, which was determined by an appraisal. The purchase price for the easement is $442,800, which is 82% of the appraised value. Mr. Breeze intends to donate 18% of the value ($97,200) and take advantage of federal and state tax benefits available for easement donations. The County would pay $230,710 (52% of the total purchase price) and $212,090 (48%) would be paid with a grant from the federal Farm & Ranch Land Protection Program. Including survey and other transaction costs, the total cost of the project (without the 18% donation) is approximately $450,000. The County's share of the total cost will be approximately $237,910 ($230,710 plus closing costs), and would come from existing funds budgeted from the $3.0 million in alternative financing (Lands Legacy Conservation Easement Fund) approved by the Board of Commissioners in FY 2002-03 and previously appropriated. The Lands Legacy Conservation Easement Fund will have approximately $570,000 remaining after this purchase for future easements. The Budget Office will bring a Capital Project Ordinance for this project forward in an upcoming budget amendment. RECOMMENDATION: The Manager recommends that the Board adopt 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 February 28, 2007.