Agenda - 05-16-2017 - 4-b - Resolution of Approval – Conservation Easement for Lick Creek Property; and Approval of Budget Amendment #9-A

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2 DEAPR Staff and the County Attorney have worked with the Eno River Association and the landowners to prepare an agreement that meets their needs and the County's interests. There are no structures on the 30-acre property, but the easement will allow the construction of a cabin in a designated upland portion of the property. All other development rights will be extinguished through the conservation easement. DEAPR and Eno River Association 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. The planned conservation easement would be held jointly by Orange County and the Eno River Association. The Eno River Association secured matching funds for this project from the City of Raleigh's Watershed Protection Program (Upper Neuse Clean Water Initiative). FINANCIAL IMPACT: The easement purchase price is $71,250, which is 75 percent of the easement value ($95,000) as determined by an appraisal by Kirkland and Associates. The landowners will donate 25 percent of the easement value ($23,750), meaning they will forgo that amount and, instead, will be eligible for federal income tax benefits. DEAPR worked with the Eno River Association to identify the following funding sources: Orange County (Lands Legacy) $ 34,125 (36%) City of Raleigh (Upper Neuse Clean Water Initiative) 37,125 (39%) Landowner donation 23,750 (25%) $ 95,000 Funds for the easement purchase would come from Orange County ($34,125 purchase price plus $8,500 for boundary survey and closing costs) and the City of Raleigh's Watershed Protection Program ($37,125 purchase price plus $16,280 for easement stewardship costs). The County's share of funds ($42,625) would come from existing funds budgeted and approved for the Lands Legacy program (Land Legacy Fund). The Gledhill's 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 portion of its development rights) would not lower the property value to a level that is less than the current present use value. The owners intend to take advantage of enhanced federal income tax deduction for easement donations, which the US Congress made permanent in 2015. With this allocation, approximately $3.0 million remains available in the Lands Legacy Capital Project. This Budget Amendment #9-A provides for the use of the above mentioned funds, and amends the following Capital Project Ordinances: