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The farm is located within the Back Creek Protected Watershed, which the County identified <br />as a priority watershed for acquiring farmland easements in a dual effort to protect prime <br />farmland and drinking water quality. Two creeks flow through the farm on their way to nearby <br />Back Creek - a primary source of drinking water for Alamance County. <br />The Tates intend to grant a conservation easement on approximately 78 acres of their 81- <br />acre farm, including the family home place, a tenant house and several farm buildings. The <br />family residence was built in 1883 by Hurley Tate's grandfather and is surrounded by several <br />farm structures. A three-acre portion with frontage on Lynch Store Road will be excluded <br />from the easement. Other farm buildings are located south of the road. A survey of the <br />property is underway, which will determine the exact size of the easement area. <br />ERCD Staff and the County Attorney have worked with the owners to prepare an easement <br />agreement that meets their needs and the County's interests. The easement also conforms <br />to federal guidelines pursuant to the federal Farm and Ranch Land Protection Program, <br />which will also contribute funds to this project. <br />The easement would permanently protect this property for farm use. The property includes <br />the Tate residence, a tenant house and farm buildings clustered within a "Farmstead Area" <br />shown on the attached site map. Future farm activities will continue in accordance with a <br />Conservation Plan prepared for this farm by the Orange County Soil & Water Conservation <br />District. All future non-agricultural development rights would be extinguished through the <br />conservation easement. ERCD will monitor the property on an annual basis. A copy of the <br />draft easement agreement is attached. <br />FINANCIAL IMPACT: The fair market value of the conservation easement is $417,000, <br />which was determined by a recent appraisal. The purchase price for the easement is <br />$333,750, which is 80% of the appraised value. The Tate's intend to donate 20% of the <br />value ($83,250) and take advantage of federal and state tax benefits available for easement <br />donations. The County would pay $125,250 (30% of the total purchase price) and $208,500 <br />(50%) would be paid with grant funds from the federal Farm and Ranch Land Protection <br />Program (FRPP). <br />Including survey and other transaction costs, the total cost of the project (without the 20% <br />donation) is approximately $325,750. The County's share of the total cost will be <br />approximately $135,750 ($125,250 plus closing costs), and would come from existing funds <br />budgeted from the $3.0 million in alternative financing (Lands Legacy Conservation <br />Easement Fund) approved by the Board of Commissioners in FY 2002-03 and previously <br />appropriated. The Lands Legacy Conservation Easement Fund will have approximately <br />$980,000 remaining after this easement purchase, most of which is encumbered for <br />remaining easements that are projected to close in 2007. The Budget Office will bring a <br />Capital Project Ordinance for this project forward in an upcoming budget amendment. <br />RECOMMENDATION: The Manager recommends that the Board adopt the resolution <br />approving the acceptance by Orange County of the conservation easement and authorize the <br />Chair and the Clerk to sign the conservation easement agreement, subject to final review by <br />staff and County Attorney, with a closing and recordation of the document expected to occur <br />on or about September 28, 2007.