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2 <br /> The planned agricultural conservation easement would be held by Orange County. The <br /> easement would enhance the protection of this Century Farm. The easement would expand <br /> and complement assistance from the Orange Soil and Water Conservation District that will <br /> restore vegetative stream buffers, fence cattle from the stream, and provide an alternative <br /> source of water with separate funding from the NC Conservation Reserve Enhancement <br /> Program (CREP). CREP will require a permanent riparian buffer easement held by the State of <br /> North Carolina which totals approximately 1.5 acres for the 70-acre property. <br /> The planned agricultural conservation easement area is depicted on the attached site map. A <br /> draft deed of conservation easement is also provided. <br /> FINANCIAL IMPACT: The value of the conservation easement is $244,000, which was <br /> determined by an appraisal by Shackelford and Associates. <br /> DEAPR identify the following funding sources: <br /> Orange County (Lands Legacy) $131,000 (51%) <br /> NC Agricultural Development and Farmland <br /> Preservation Trust Fund (ADFP) $ 64,000 (25%) <br /> Landowner Donation $ 61,000 (24%) <br /> $256,000 (acquisition + transaction) <br /> The purchase price for the conservation easement is $195,000, which is 75 percent of the <br /> appraised value ($244,000). The landowner will donate 25 percent of the easement value <br /> ($61,000), meaning they will forgo that amount and, instead, will be eligible for federal income <br /> tax benefits. <br /> Funds for the easement purchase would come from Orange County ($119,000 purchase price <br /> plus $12,000 for appraisal, survey and closing costs) and ADFP ($64,000 purchase price). <br /> The County's approximate share of funds ($131,000) would come from existing funds budgeted <br /> and approved for the Lands Legacy program (Land Legacy Fund). <br /> The Spring Crest Farm property is enrolled in the Present Use Value taxation program, so the <br /> conservation easement would not lessen the amount of property taxes paid to the County. <br /> There would be no decrease in the property's market value caused by the conservation <br /> easement (and extinguishing of portion of its development rights) since it would not lower the <br /> property value to a level that is less than the current present use value. <br /> With this allocation, approximately $2.17 million remains available in the Lands Legacy Capital <br /> Project. The following Budget Amendment #10-B provides for the use of the above mentioned <br /> funds, and amends the following Capital Project Ordinances: <br /> Lands Legacy Capital Project (-$131,000) - Project#20011 <br /> Revenues for this project: <br /> Current FY 2018-19 FY 2018-19 <br /> FY 2018-19 Amendment Revised <br /> Alternative Financing $2,574,157 ($131,000) $2,443,157 <br /> From General Fund $42,697 $0 $42,697 <br /> Donations $1,000 $0 $1,000 <br /> Appropriated Fund Balance $9,337 $0 $9,337 <br /> Total Project Funding $2,627,191 ($131,000) $2,496,191 <br />