Purchase of Agricultural Conservation Easements (PACE) A new program for Wisconsin

Overview The State Budget signed by Governor Doyle in June includes a new matching grant program to support local purchase of agricultural conservation easements (PACE). The State Budget signed by Governor Doyle in June includes a new matching grant program to support local purchase of agricultural conservation easements (PACE). DATCP is authorized to spend $12 million in bonding for PACE easements. Between $3 and $4 million will be available next year. DATCP is authorized to spend $12 million in bonding for PACE easements. Between $3 and $4 million will be available next year.

Who is eligible for grants? Political subdivisions: city, village, town or county. Political subdivisions: city, village, town or county. Non-profit conservation organizations Non-profit conservation organizations 501©3 501©3 Qualified organization under 170(h)(3) of IRC Qualified organization under 170(h)(3) of IRC Purpose must include the acquisition of property for conservation or agricultural preservation Purpose must include the acquisition of property for conservation or agricultural preservation

What costs are eligible for cost share? Up to 50% of the Fair Market Value of the Easement Up to 50% of the Fair Market Value of the Easement Up to 100% of cooperating entity’s transaction costs: Up to 100% of cooperating entity’s transaction costs: Out-of-pocket expenses for surveys, appraisals, title verification, legal documents, etc. Out-of-pocket expenses for surveys, appraisals, title verification, legal documents, etc. Not staff time or overhead Not staff time or overhead DATCP is directed to promulgate Rules re: allowable transaction costs DATCP is directed to promulgate Rules re: allowable transaction costs

What can be used as “match” for state PACE grants? Federal grants (e.g. Farm and Ranchland Protection Program) Federal grants (e.g. Farm and Ranchland Protection Program) Other state funds* Other state funds* Local contributions Local contributions Private donations Private donations Bargain sale/contribution from landowner Bargain sale/contribution from landowner

What projects are eligible for PACE grants? All of the land subject to the easement must be within a Farmland Preservation Area All of the land subject to the easement must be within a Farmland Preservation Area The purchase of the easement will serve a public purpose The purchase of the easement will serve a public purpose The landowner is a willing seller The landowner is a willing seller

What criteria will be used in awarding PACE grants? DATCP must consider the extent to which the easement: DATCP must consider the extent to which the easement: Preserves/enhances agricultural capacity Preserves/enhances agricultural capacity Protects/enhances state waters or other public assets Protects/enhances state waters or other public assets Conserves important or unique agricultural resources, such as prime or unique soils or soils of statewide importance Conserves important or unique agricultural resources, such as prime or unique soils or soils of statewide importance Enhances on Agricultural Enterprise Area Enhances on Agricultural Enterprise Area

What criteria will be used in awarding PACE grants? Additional criteria Additional criteria The availability and practicality of other methods to protect the land The availability and practicality of other methods to protect the land The proximity of the proposed easement to other protected land The proximity of the proposed easement to other protected land Cost-effectiveness of the easement Cost-effectiveness of the easement The willingness of landowners to convey the easement The willingness of landowners to convey the easement

What terms must be included in the easement? The easement must: The easement must: Prohibit development for use other than agricultural use Prohibit development for use other than agricultural use Continue in perpetuity Continue in perpetuity Provide that the cooperating entity and DATCP are co-holders of the easement Provide that the cooperating entity and DATCP are co-holders of the easement Prohibit the transfer of the easement without 60- days notice to DATCP Prohibit the transfer of the easement without 60- days notice to DATCP

How will the easements’ value and grant amounts be determined? The easement’s FMV must be determined by a professional appraisal provided by the cooperating entity The easement’s FMV must be determined by a professional appraisal provided by the cooperating entity DATCP must obtain a second appraisal for easements estimated at more than $350,000 DATCP must obtain a second appraisal for easements estimated at more than $350,000 Grants over $750,000 (total easement value of $1.5m) must be approved by the Legislature’s Joint Committee on Finance Grants over $750,000 (total easement value of $1.5m) must be approved by the Legislature’s Joint Committee on Finance

Other Requirements DATCP must: DATCP must: Appoint a Council to advise the Department on the PACE Program Appoint a Council to advise the Department on the PACE Program Solicit applications at least annually Solicit applications at least annually Provide for a pre-application process Provide for a pre-application process Enter into a contract with the Cooperating Entity Enter into a contract with the Cooperating Entity