The Land Owner’s Perspective Mark Kehke Land Owner with Conservation Easement Chairman, Gallatin Valley Land Trust Managing Director, Pacific Ventures Management

Background/Relevant Experience Personal and Professional Experience with Conservation Easements Background/Relevant Experience

Tejon Ranch

Tejon Ranch Negotiated Environmental Accord with Major Western Conservation Advocates Sierra Club NRDC Endangered Habitat league Planning and Conservation League Audubon Of the 270,000 acre ranch, 240,000 acres converted to permanent preservation. Formed the Tejon Ranch Conservancy, managing: Public Access Habitat Operational Sensitivity

Martis Camp

Martis Camp Negotiated environmental accord with major regional conservation advocates: Sierra Club Sierra Watch League to Save Lake Tahoe Mountain Area Preservation Foundation Over a portion of 2,177 Acres, negotiated easements and restrictions. Formed The Martis Fund - funded by transfer fees, which to date have raised more than $14 Million for: Regional Open Space Conservation Habitat Restoration Affordable Housing

Gallatin Valley Land Trust Chairman of the Board of Directors More than 45,000 acres of Conservation Easements and 80 miles of trails in and around the Gallatin Valley Recently Completed 100th Easement 959 Acres of Prime Farmland Protected from Subdivision and Development Allowed to Continue Operating as a Family Farm and Ranch As It Has Since 1876 Made possible with funding from: The USDA Natural Resource Conservation Service Gallatin County’s Open Space Bond Montana Travelers for Open Land

East Gallatin Preserve

East Gallatin Preserve 86 Acres Fronting on the East Gallatin River Two existing compounds

East Gallatin Preserve Conservation Easement: Process, Challenges, Benefits, Economics and Lessons Learned Process Donated Easement Easement Restrictions Valuation and Appraisal Process

East Gallatin Preserve Master Planned for Four Compounds on 20 Acres Each Four Legal Lots

East Gallatin Preserve 86 Acres Four legal lots Each lot: River Frontage Two Wells Approved Septic Road Access

East Gallatin Preserve Challenges Subordination to Existing Mortgage Easement Negotiations with Land Trust Permitted Uses, Retained Development Rights Costs – Legal And Accounting Fees, Appraisal, Endowment Contribution

East Gallatin Preserve Benefits Economic Tax Savings Permanent Preservation Limited Development Land Management Assistance Best Practices Resources

East Gallatin Preserve Economics Before Value $ 5,600,000 After Value $ 3,850,000 Donation Value $ 1,750,000 Tax Savings $ 875,000 (Approximate) Costs $ 50,000

East Gallatin Preserve Lessons Learned Engage a Good Lawyer Thoroughly Understand: Process, Schedule and Up-front Costs Work with Appraisers and Accountants Early in The Process Be Clear on Goals – Permanent Preservation Economic Permitted Uses Retained Development Rights

Discussion and Questions

Thank You Mark Kehke Contact: MKehke@PacV.com