Historic Reise Farm Puyallup, Pierce County, Washington Request for Proposals

Historic Reise Farm Puyallup, Pierce County, Washington Request for Proposals

Background and Information Thank you for your interest in the historic Reise Farm, located near the city of Orting in Pierce County, Washington. The property available under this Request for Proposals is part of a larger historic 120- acre farm that has been conserved by PCC Farmland Trust, a nonprofit land trust organization committed to preserving threatened farmland of the Northwest for sustainable agricultural production. Approximately 38 acres of this property will available for lease and eventual purchase to a qualified farmer at its agricultural value, as part of an effort to ensure that farmers in the Puget Sound region have access to affordable land. PCC Farmland Trust (PCCFT) has purchased the historic Reise Farm through the support of Pierce County s Conservation Futures program, and support of private donors. Our goal is to find a tenant who can be ready to sign a three-year lease as early as January 1 st, 2013 for the 2013 production year and will be ready to purchase the 38 acre property in 2016. History of Farm The historic Reise Farm is located at the intersection of Military Road and State Hwy 162, between the cities of Puyallup and Orting. The Reise family first located to this property in 1903, when Otto Reise Sr. moved his dairy cattle and hops business from Whatcom County to the Puyallup Valley. In the late 1920s, Otto sold his dairy cattle and planted 20 acres of berries, and expanded his business to include certified seed potatoes. In 1927, the Reise Farm was one of the first in the valley to purchase bulbs from Holland, and by 1935 the entire farm was devoted to bulbs and tulips. By the mid-1950s, the current property was part of a larger 200 acre operation, which again included dairy cattle, as well as bulbs, silage, hay, and grain production. Wilmer Reise eventually took over the family farm business, producing Christmas trees and bulbs for many years. In the early 1990 s, Wilmer began leasing the farm to a local farming family, who have been producing corn, pumpkins, beans, and blueberries on the property since. Property Description The portion of the historic Reise Farm property currently available for lease by the Trust is 38 acres, approximately 30 of which are tillable, with the remainder in farmstead, forested uplands, and the headwaters of Ball Creek. The entire 38 acres have excellent prime farmland soils, the majority of which are Puyallup fine sandy loam, with some areas of Sultan silt loam along the Western property edge and Ball Creek; power and active irrigation water rights are available for the entire property. The property has one well (to be shared with tenant farmer on southern property portion through lease period, with negotiable split at time of purchase), which is located on the northern 38 acres. The available 38 acres also has one barn, two storage sheds, and existing drainage ditching. No home is available on the property, but there are many housing opportunities in the nearby vicinity. As the property has been in conventional production in recent decades, the majority of the property will require at least a three year transition period using organic productive methods before organic certification can be achieved. It may be possible to obtain organic certification on portions of the property sooner than the three year transition timeline based on an affidavit provided by the previous tenant farmer on historical application of prohibited substances to specific areas. 2

Due to the soils and location, this property has potential for the establishment of a commercial, diversified farming operation. The location offers exceptional market access in a region supportive of local, sustainable food. Neighboring farms in the Puyallup Valley enjoy thriving CSA business and direct sales via growing farmers markets in Tacoma, Puyallup, and the Seattle metro area. In addition, the property is fronted by a half mile of the Pierce County Foothills Trail, which is used by thousands of cyclists, walkers, joggers, and inline-skaters every year. For the Farmland Trust, the long-term feasibility of conserving this property depends on transferring the property back into farmer ownership within a negotiated time frame. Our goal is to work with farmers with experience and demonstrated interest in becoming the owner of the property. For this reason, while we are offering this property as a 3-year lease beginning in 2013, with the opportunity to negotiate the full fee purchase of the property at the end of the 3-year period. We expect the purchase price to be highly competitive with fair market farmland prices in the Valley at the time of sale. Conservation Restrictions At time of purchase, the historic Reise Farm will be sold to a farmer subject to a perpetual organic agricultural conservation easement. Prior to sale, the following key terms of the perpetual easement will also be reflected in terms of the lease. The conservation easement will have the following components: Organic Agricultural Production: the easement and lease on this property will require the property be managed under certified organic production within a negotiated time frame. Maintained in Agricultural Production: the easement and lease will require the property is maintained in active agricultural production, including maintenance of active water rights, and ongoing, active production of food, fiber, or forage. Property Access: Once the property is purchased by a farmer, PCC Farmland Trust will work closely with the new property owner to arrange mutually agreed-upon time to both monitor the conservation easement, and to arrange voluntary restoration and community education events. Farmstead complex and improvements: With prior notification to the Trust, the easement will allow for agricultural improvements to the property, including to the existing barn, sheds, and water systems. Other allowable improvements include fencing, stock watering stations, corrals, hoop houses, and greenhouses, among others. At the time of sale, the Trust will work with the property buyer to identify the location of building envelopes for any permanent construction (including a potential future home site), and all permanent improvements will be restricted by a percentage cap on total impervious surfaces on the property. The attached publication, PCCFT Organic Agricultural Conservation Easements - FAQs, provides additional information on PCC Farmland Trust s perpetual conservation easements. Please contact our office for additional questions or detail. Open Houses PCC Farmland Trust is hosting two open houses at the farm to allow potential buyers to see the property while preparing their offers. These will be held on Thursday, October 18 th, from 5 pm to 7 pm, and Monday, October 22 nd, from 2 pm to 4 pm. If you are unable to make either of these dates, 3

let us know and we will try to agree on another time when you can see the property. Please RSVP to Hilary Aten (hilary.aten@pccfarmlandtrust.org) if interested in participating in the open house. The property is located at 11810 State Route 162, Puyallup, WA 98374. This farm is private property owned by PCC Farmland Trust, and is currently in production under an existing lease. Please do not attempt to visit the property unless accompanied by a representative of PCC Farmland Trust. Lease Rate The lease rate of the 38 acres is $250 per acre per year ($9,500 annual payment) for the 2013 production year. The payment structure (i.e. quarterly vs. annual payments) can be negotiated as needed. This rate is based on competitive lease rates in the Puyallup Valley and Orting area, and includes utilities. Terms The lease will be offered as a three-year term. At the completion of this term, PCC Farmland Trust will enter into negotiations with the tenant farmer towards a full fee purchase of the property. At the time of sale to the farmer, the property will be subject to PCC Farmland Trust s conservation easement. Buyer Selection PCC Farmland Trust will select a proposal from a farmer that best fits the following criteria: Price: (a) Willingness of the buyer to meet our asking lease rate; and (b) Demonstrated ability to pay lease on time according to a negotiated schedule, and/or proof that all necessary financing has been, or can be, secured as consistent with the farmer s proposal. Full Acreage: Only proposals for lease of the full 38 acres available will be considered. Farm Enterprise: The farming enterprise described in the buyer s proposal is: (a) well suited to the size, soils and configuration of the historic Reise Farm; (b) well adapted to local markets for farm products and will contribute to the local farm economy; (c) likely to encourage long-term commercial use of the farmland; (d) likely to succeed in achieving organic certification at the end of the transition period; and (e) economically feasible. Farming Experience: Demonstrated farming experience and training that relates to the proposed farm operation. Food, Fiber, & Forage: PCC Farmland Trust will only consider proposals based on the production of food, fiber, or forage, with a plan to achieve organic certification over time. Community Benefits: Because the Reise farm is located in a densely populated area, priority will be given to proposals that demonstrate a desire and commitment to provide the community with additional opportunities or services, or a willingness to collaborate with PCC Farmland Trust and other local organizations to provide additional community 4

benefits, including engagement in voluntary on-farm restoration and public education events, in addition to the agricultural uses of the farm. Requirements of Proposals If you are interested in submitting a proposal on this property, we will need the following by November 1 st, 2012: 1. Documentation that you can finance the lease rate and/or purchase price. This can be a farm business balance sheet, documentation of an operating loan, or a letter from your banker stating that the bank intends to lend you the necessary capital for a purchase, or any combination of such materials that will assure us that you have the financial resources to meet the terms of the lease, or to complete a purchase. 2. Your business and proposed farm plan. Please give a detailed three-year plan and a broader picture of the ongoing direction of your farming operation. Please include your planned production types, equipment plan, marketing plan, and ten-year vision for the farm business, including any changes and improvements over time. We realize that this is a short timeframe to come up with this kind of information, but the more information you can provide the better. 3. Your qualifications that indicate that you can successfully execute your business plan; please include your education, work experience, and internships relevant to your organic farming experience. In addition, please include at least three references and contact information; strong agricultural references are preferred. 4. Any other information that you think is important for us to consider. Please send your proposal and related materials, either via email or USPS, no later than November 1st to: Email to: Hilary Aten, Conservation Project Manager hilary.aten@pccfarmlandtrust.org USPS: PCC Farmland Trust Attn: Hilary Aten 1917 1st Ave., Level A-100 Seattle, WA 98101 If you have any further questions about the farm and our process, or would like to request additional materials, please contact Hilary Aten or Melissa Campbell (Conservation Director) at (206) 547-9855. If you cannot make the deadline, but are interested in the farm, contact us anyway so that we know that you are interested; we will keep you informed of the progress of the farm. We look forward to hearing from you. Attachments: Property Site Map Property Soils Map Organic Easement FAQ 5

Property Site Map 38 acres Site Map Legend: Area for lease Scholz Farm (conventional) Other private property Foothills Trail Railroad (active) Scholz Farm Scholz Farm Well Parcel lines Restoration area

Map Unit Name Pierce County Area, Washington (Reise Farm north 40 acres) 47 9' 4'' 47 8' 48'' 5221760 5221840 5221920 5222000 5222080 5222160 5222240 122 14' 37'' 122 14' 37'' 557360 139th Ave 120th St 557360 557440 557440 Jennifer Ct 47F 557520 557520 Map Scale: 1:3,570 if printed on A size (8.5" x 11") sheet. 557600 138th Street Ct 42A 557600 557680 557680 Meters 0 45 90 180 270 Feet 0 150 300 600 900 Property Soils Map Military Rd 557760 557760 31A 557840 557840 557920 557920 42A 42A 558000 558000 122 14' 1'' 558080 558080 122 14' 1'' 5222240 5221760 5221840 5221920 5222000 5222080 5222160 47 9' 4'' 47 8' 47'' Natural Resources Conservation Service Web Soil Survey National Cooperative Soil Survey 9/20/2012 Page 1 of 3

Map Unit Name Pierce County Area, Washington (Reise Farm north 40 acres) MAP LEGEND Area of Interest (AOI) Soils Soil Ratings Political Features Area of Interest (AOI) Soil Map Units Puyallup fine sandy loam Sultan silt loam Xerochrepts, 45 to 70 percent slopes Not rated or not available Cities Water Features Transportation Streams and Canals Rails Interstate Highways US Routes Major Roads Local Roads MAP INFORMATION Map Scale: 1:3,570 if printed on A size (8.5" 11") sheet. The soil surveys that comprise your AOI were mapped at 1:24,000. Warning: Soil Map may not be valid at this scale. Enlargement of maps beyond the scale of mapping can cause misunderstanding of the detail of mapping and accuracy of soil line placement. The maps do not show the small areas of contrasting soils that could have been shown at a more detailed scale. Please rely on the bar scale on each map sheet for accurate map measurements. Source of Map: Natural Resources Conservation Service Web Soil Survey URL: http://websoilsurvey.nrcs.usda.gov Coordinate System: UTM Zone 10N NAD83 This product is generated from the USDA-NRCS certified data as of the version date(s) listed below. Soil Survey Area: Pierce County Area, Washington Survey Area Data: Version 7, Jul 19, 2012 Date(s) aerial images were photographed: 7/24/2006 The orthophoto or other base map on which the soil lines were compiled and digitized probably differs from the background imagery displayed on these maps. As a result, some minor shifting of map unit boundaries may be evident. Natural Resources Conservation Service Web Soil Survey National Cooperative Soil Survey 9/20/2012 Page 2 of 3

Map Unit Name Pierce County Area, Washington Reise Farm north 40 acres Map Unit Name Map Unit Name Summary by Map Unit Pierce County Area, Washington (WA653) Map unit symbol Map unit name Rating Acres in AOI Percent of AOI 31A Puyallup fine sandy loam Puyallup fine sandy loam 32.8 70.6% 42A Sultan silt loam Sultan silt loam 10.3 22.2% 47F Xerochrepts, 45 to 70 percent slopes Xerochrepts, 45 to 70 percent slopes 3.3 7.1% Totals for Area of Interest 46.4 100.0% Description A soil map unit is a collection of soil areas or nonsoil areas (miscellaneous areas) delineated in a soil survey. Each map unit is given a name that uniquely identifies the unit in a particular soil survey area. Rating Options Aggregation Method: No Aggregation Necessary Tie-break Rule: Lower Natural Resources Conservation Service Web Soil Survey National Cooperative Soil Survey 9/20/2012 Page 3 of 3

Organic Agricultural Conservation Easements - FAQs HOW DOES THE CONSERVATION EASEMENT PROCESS WORK? An organic agricultural conservation easement is a voluntary legal agreement between a landowner and a conservation agency. Landowners can sell or donate an agricultural conservation easement to a qualified conservation organization or government body. In either case, it is necessary to determine the value of the easement to establish a price or to calculate tax benefits that may be available under federal and state law. The value of an agricultural conservation easement is generally the fair market value of the property minus its agricultural value, as determined by a qualified appraiser. In general, more restrictive agreements and intense development pressure result in higher easement values. When property eventually changes ownership, it remains subject to the restrictions of the easement. WHAT ARE THE BENEFITS OF AN ORGANIC CONSERVATION EASEMENT? Permanently protects farmland to ensure that organic food can continue to be grown. Enables future buyers to purchase the land at agricultural value. Can provide farmers with tax benefits, including property and estate tax reductions. Organic certification ensures that no harmful pesticides, fertilizers, or animal hormones enter waterways or negatively affect wildlife. ARE THERE DRAWBACKS? Easements permanently restrict the uses permissible for the property, and hence the land s market value. Any non-agricultural development or division not addressed at the time of the easement will not be permitted. Monitoring and enforcing conservation easements require a serious commitment on the part of the easement holder Landowners are required to provide notice when making significant improvements to their property. WHAT IS THE DIFFERENCE BETWEEN A DONATED AND PURCHASED EASEMENT? Donated easements are treated as charitable gifts and landowners can deduct a portion of the easement value from their federal tax fillings. Purchased easements generally use government or non-profit land trust money to make up the difference between the appraised market value and the agricultural value. WHAT ARE THE EASEMENT RESTRICTIONS ON PCC FARMLAND TRUST FARMS? All conservation easements are tailored specifically to each property. In general, the Trust s easements require 1) farmland properties are enrolled in the Current Use Taxation Program 2) in certified organic production 3) annual stewardship visits 4) periodic events and educational farm tours. WHAT ARE THE TRUST S ONGOING LAND STEWARDSHIP RESPONSIBILITIES? PCC Farmland Trust develops a stewardship plan for each property and actively monitors and stewards each farm on an annual basis. pccfarmlandtrust.org