ORD-2019-024 Resolution of Approval – Conservation Easement on Cedar Grove Windy Hill Farm and Approval of Budget Amendment #10-A

Browse Search

2 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 protect a farm located just 1/3 mile from Cedar Grove Rural Crossroads Historic District (listed on the National Register of Historic Places). 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 $117,600, which was determined by an appraisal by Kirkland Appraisals, LLC. DEAPR worked with the Eno River Association to identify the following funding sources: Orange County (Lands Legacy) $ 65,700 (44%) Eno River Association $ 15,000 (10%) NC Agricultural Development and Farmland Preservation Trust Fund (ADFP) $ 39,655 (26%) Landowner Donation $ 29,400 (20%) $149,755 (acquisition + transaction) The purchase price for the conservation easement is $88,200, which is 75 percent of the appraised value ($117,600). The landowner will donate 25 percent of the easement value ($29,400), 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 ($49,700 purchase price plus $16,000 for appraisal, survey and closing costs), ADFP ($39,655 purchase price plus stewardship), and Eno River Association ($15,000 stewardship). The County's approximate share of funds ($65,700) would come from existing funds budgeted and approved for the Lands Legacy program (Land Legacy Fund). The Cedar Grove Windy Hill Farm 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. There would be no decrease in the property's market value caused by the conservation easement (and extinguishing of a portion of its development rights) since it would not lower the property value to a level that is less than the current present use value. With this allocation, approximately $2.3 million remains available in the Lands Legacy Capital Project. The following Budget Amendment #10-A provides for the use of the above mentioned funds, and amends the following Capital Project Ordinances: Lands Legacy Capital Project (-$65,700) - Project#20011 Revenues for this project: Current FY 2018-19 FY 2018-19 FY 2018-19 Amendment Revised Alternative Financing $2,639,857 $65,700 $2,574,157 From General Fund $42,697 $0 $42,697 Donations $1,000 $0 $1,000 Appropriated Fund Balance $9,337 $0 $9,337 Total Project Funding $2,692,891 ($65,700) $2,627,191