Agenda - 12-05-2016 - 4-a - Resolution of Approval – Conservation Easement for Persimmon Hill Farm

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2 periodically. DEAPR staff will monitor the property on an annual basis. A copy of the draft easement agreement is attached along with maps showing the property outlined in red. FINANCIAL IMPACT: The owners of Persimmon Hill Farm intend to donate the conservation easement to Orange County. The cost to the County would be approximately $5,000 in transaction costs, including a title search and closing fees. Those funds would come from existing funds budgeted in the Conservation Easements Capital Project. 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 (extinguishing of portion of its development rights) will not lower the property value to a level that is less than the present farm use value. The owners intend to take advantage of enhanced federal income tax deduction for farmland easement donations, which the US Congress made permanent in 2015. SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated with this item. RECOMMENDATION: The Manager recommends 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 December 15, 2016.