Conservation Easements- a basic overview

Conservation EasementDefinition

Voluntary legal agreement between a landowner and conservation

organization (easement holder) that permanently limits certain uses of the land in order to protect conservation

values.

Conservation Easements and the Bundle of Rights of Land

Ownership

XXXX

\\\\\\\\\\\

Before CE After CE

Source: “Land Administration Lecture 3Land Registration, Lisa Ting, UNMELB

Current Use Assessment

ProgramVoluntary

Reduced tax rate

10 acre minimum

Not permanent!

Voluntary

Perpetual

Public access optional

Involves a qualified “holder” of the conservation easement (land trust, municipality, state or federal agency).

Conservation Easement Characteristics

Easement Holder Responsibilities

Baseline Documentation

Annual Easement Monitoring

Enforcement

Record Keeping

New Landowner Contact

Volunteer monitors on the Cochecho River

Land remains privatelyowned

Restricts subdivision, residential or commercial building, and mining

Can be financial benefits to landowners

Flexible – customized to each parcel

Conservation Easement Characteristics

Ridge Road

North

Unrestricted(Existing buildings) Unrestricted

Area restricted by the Conservation Easement Traditional Approach

CE’s Do Not Have To Include The Entire Parcel

Ridge Road

North

Area A

Area restricted by theConservation Easement Reserved Right

to subdivide one ortwo lots in the futurewithin Area A

Unrestricted(Existing buildings)

CE’s Do Not Have To Include The Entire Parcel

Qualifying Conservation Purposes

Meets at least one of these requirements:

Significant natural habitat and natural resource protection

Open space purely for scenic enjoyment from public road way or waterway

Public recreation or education

Historically important land or a certified historic structure.

Conservation Easement Project Costs can include:

• Survey • Appraisal • Legal Fees • Title Search• Land Trust Agent Fees • Stewardship Fund Contribution

Benefits of Conservation Easements

• Property remains in private ownership

• Can be used on publicly-owned lands

• Encourage farm and forest management

• Executory interest (backup) easement holder arrangements add enforcement strength

• Development rights may be gifted or sold at full value or at bargain price

• Donating (gifting) CE value may provide significant income tax benefits

Fishing on the Cochecho River with our friends from Great Bay Trout Unlimited.

CE’s protect trees, farms, rivers…land that is valuable for:CE’s protect trees, farms, rivers…land that is valuable for:• wildlife habitat preservationwildlife habitat preservation• agriculture to provide local foodsagriculture to provide local foods• protecting our drinking water suppliesprotecting our drinking water supplies• outdoor recreation such as hiking, fishing, & kayakingoutdoor recreation such as hiking, fishing, & kayaking• ecological plant and animal diversityecological plant and animal diversity• the tourism and forest products industry andthe tourism and forest products industry and• preserving the rural character of our community preserving the rural character of our community

for both current and future generations.for both current and future generations.

In summaryIn summary……

• Conservation easements are voluntary• They are perpetual• FMV of the dev. rights can be donated or sold • Land often remains in private ownership• Local, state and federal regulations still apply• The benefits to our community…immeasurable.

We will now switch to a brief overview of the Dr. Alex Smith Project.

Anna Boudreau, Executive Director Strafford Rivers Conservancy PO Box 623, Dover, NH 03821 (603) 516-0772

Proposed Smith Conservation Easement78 acres - Rochester, NHStrafford Rivers Conservancy

Estimated Project BudgetExpenses

Conservation Easement FMV $328,000

Transaction Costs $14,420

Appraisal $3,000

Stewardship Contribution $11,800

Total $357,220

Income

Landowner expenses paid $3,000

Easement donation value by landowners $28,000

Costs paid by the SRC $600

Total $12,600

Remaining costs $325,620

CONSERVATION EASEMENT ValueAppraised Fair Market Value = $328,000Value of “Donation” = - 28,000 Negotiated Purchase Price = $300,000

Being mindful of the current demands on the city’s conservation fund, the family decided that the 9.7-acre parcel across the street (R 236-9) should not be considered for protection at this time.

** UPDATE **

The Strafford Rivers Conservancy PO Box 623, Dover, NH, 03821 (603) 516-0772

Questions & Answers