ZEKIAH WATERSHED RURAL LEGACY AREA
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1 ZEKIAH WATERSHED RURAL LEGACY AREA
2 GRANT AWARDS AND ACRES PRESERVED Since 1998, the County has received 8 grant awards totaling $9.4 million. With those funds, 2,328 acres have been protected on 18 properties. $7.5 million in outstanding grant requests; represents approximately 1,000 additional acres
3 THE CURRENT METHOD FOR DETERMINING EASEMENT VALUE County obtains 2 independent appraisals to establish the Fair Market Value (as though property was being sold in fee) The 2 appraisals must be within 20% of each other, or a 3rd appraisal is needed An Agricultural Value is computed using a formula from the Maryland Agricultural Land Preservation Foundation The Easement Value is the difference between the appraised Fair Market Value and the calculated Agricultural Value
4 COST AND TIME ELEMENT FOR APPRAISALS Each appraisal takes 4-6 weeks to obtain and can run out to weeks if a 3rd appraisal is needed The average cost of each appraisal is $2000 To date, the County has obtained 35 appraisals for the Rural Legacy Program at a cost of $73,750
5 Easement Valuation System (EVS) An Easement Valuation System (EVS) is a method by which the value to be paid for a conservation easement is determined partially by appraisal and partially by a point system for natural resources County and Department of Natural Resources' staff worked together to develop an EVS for Rural Legacy Acquisitions Models were used from other Rural Legacy Areas as well as the County's Ranking System for Agricultural Land Preservation Easement Purchases
6 RURAL LEGACY SPONSORS USING EASEMENT VALUATION SYSTEMS (EVS) 25 of 30 use EVS Agricultural Security Corridor Anne Arundel South Baltimore County Coastal Bear Creek Calvert Creeks Dividing Creek Manor Mattapany Mid-Maryland Frederick Mid-Maryland Montgomery Mid-Maryland Washington Carrollton Manor Coastal Bays Fair Hill Foreman Branch Gunpowder River Huntersville Nanticoke River North Calvert Patuxent River Piney Run Quantico Creek Upper Patapsco Lands End Little Pipe Creek Long Green Valley Lower Deer Creek Valley Upper Patuxent Watershed Montgomery Upper Patuxent Watershed Howard Zekiah Watershed
7 THE EASEMENT VALUATION SYSTEM (EVS) IS DESIGNED TO... Establish a Fair Market Value linked to the most recent appraisals available through the Maryland Agricultural Land Preservation Foundation (MALPF) Pay for easements commensurate with the resource qualities of the land (agriculture, forestry, habitat, etc) Set a minimum easement value of 50% of the Fair Market Value (tied to minimum % of MALPF purchase offers) Set a maximum easement value of 80% of Fair Market Value (tied to historical MALPF easement values)
8 THE PROPOSED EASEMENT VALUATION SYSTEM (EVS) ASSIGNS POINTS BASED ON THE FOLLOWING THREE PROPERTY ATTRIBUTES... LAND EVALUATION (240 Points) Soil Capability (Max 100): points awarded to soils with the least limitations for crop production Soil Productivity (Max 20): assigns points based on capability of soils to produce a certain yield with a specified system of management Property Size (Max 40): compared to average farm size in the County Area Devoted to Agricultural Use (Max 40): crop fields, pasture, farm buildings Forest Resources (Max 40): assigns points for land devoted to forest management
9 NATURAL RESOURCES (120 Points) Stream Buffer Protection (Max 40): vegetated buffers along streams Habitat Protection ( Max 40): number of acres that provide habitat for rare, threatened and endangered species Green Infrastructure/Forest Interior Dwelling Species FIDS Habitat (Max 40): considers the presence of FIDS habitat and its association with a riparian corridor
10 PRIORITY PRESERVATION AREA STATUS (120 Points) Concentration of Conserved Lands (Max 40): assigns points based on number of acres within a one mile radius that are in a preservation program Strategic Preservation Location (Max 15): assigns points to the property if it has adequate road frontage to support a major subdivision Contiguity to Preserved Lands and Easement Properties (Max 65): assigns points based on the number of contiguous acres under permanent preservation
11 EXAMPLE Calculation of Base Easement Value Fair Market Value (average of MALPF Appraisals) $9,000/acre x.50 Base Easement Value $4,500/acre Calculation of Additional Value Additional Points 285 x.10 28% 28% x (FMV) $9,000 = $2,520/acre Easement Value Base Easement Value Additional Value $4,500/acre + $2,500/acre $7,020/acre ************************************************************************* (Maximum easement value of 80% = $7,200)
12 CURRENT POLICY FOR RESERVED DEVELOPEMNT RIGHTS Development Rights can only be reserved at a density of one dwelling per 50 acres There is a $10,000 deduction from the easement value for each development Right reserved Pre-existing dwellings receive the deduction if the right to subdivide them off of the property is reserved
13 PROPOSED POLICY FOR RESERVED DEVELOPEMNT RIGHTS WITH THE EASEMENT VALUATION SYSTEM (EVS) Development Rights can only be reserved at a density of one dwelling per 50 acres The value of the easement will be reduced by 3 times the Fair Market Value for each development right reserved (currently would be $27,000) Pre-existing dwellings receive the deduction if the right to subdivide them off of the property is reserved
14 EASEMENT VALUATION SYSTEMS (EVS) PROS Saves on significant appraisal costs Allows an easement value to be calculated within a few days as opposed to several weeks Acts as a mechanism to prioritize acquisitions based on the value of natural resources Sets a cap on easement value paid (no more than 80% of Fair Market Value) Allows sponsor to revert back to the individual appraisal method, if necessary CONS Dependent on MD Agricultural Land Preservation Foundation Appraisals
15 COMMISSIONER ACTION REQUESTED Approve the proposed Easement Valuation System (EVS) for Rural Legacy Easement Acquisitions as prepared by County and DNR staff which includes the revised deduction for reserved development rights
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