ORD-2016-025 Ordinance approving Budget Amendment #10-B related to the Conservation Easement for the Captain John S. Pope Farm

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2 be in accordance with a Conservation Plan prepared for this farm by the Orange Soil & Water Conservation District. A conservation easement would enhance the protection of this historic farm, which is listed on the National Register of Historic Places. According to the National Register, the Pope Farm is one of the best-preserved rural complexes in northern Orange County, exemplifying a mid-sized tobacco farm of the type that prospered from the late 19th century until the 1960s. The complex includes a two-story farmhouse (built 1870-74) and 20 historic outbuildings. The farm was designated a Local Historic Landmark by Orange County in 2012, and is also recognized as a Century Farm by the NC Department of Agriculture and Consumer Services. Finally, the farm is also enrolled in the County's Enhanced Voluntary Agricultural District (EVAD) program. The planned agricultural conservation easement would be held jointly by Orange County and the Eno River Association. The easement would complement the technical assistance from the Orange Soil and Water Conservation District and will also protect stream buffers with separate funding from the Upper Neuse Clean Water Initiative (City of Raleigh). The planned agricultural conservation easement area is depicted on the attached site map. A draft deed of conservation easement is also provided. FINANCIAL IMPACT: The value of the conservation easement is $185,000, which was determined by an appraisal by Kirkland and Associates. DEAPR has worked with the Eno River Association to identify the following funding sources: Orange County (Lands Legacy) $ 87,000 (47%) NC Agricultural Dev. & Farmland Preservation Trust Fund 52,000 (28%) Landowner donation 46,000 (25%) $ 185,000 The purchase price for the conservation easement is $139,000, which is 75 percent of the appraised value ($185,000) as determined by an appraisal by Kirkland and Associates. The landowners will donate 25 percent of the easement value ($46,000), meaning they will forgo that amount and, instead, will be eligible for federal income tax benefits. Funds for the easement purchase would come from Orange County ($87,000 purchase price plus $10,000 for boundary survey and closing costs), the NC Agricultural Development and Farmland Preservation Trust Fund ($52,000), and the Eno River Association (in-kind match). The County's share of funds ($97,000) would come from existing funds budgeted and approved for the Lands Legacy program (Land Legacy Fund). 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 (and extinguishing of a portion of its development rights) would not lower the property value to a level that is less than the current present use value ($61,047).