Conservation Easements - a basic overview

Conservation Easement Definition 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 3 Land Registration, Lisa Ting, UNMELB

Current Use Assessment Program Voluntary 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 privately owned 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 Parc el

Ridge Road North Area A Area restricted by the Conservation Easement Reserved Right to subdivide one or two lots in the future within Area A Unrestricted (Existing buildings) CE’s Do Not Have To Include The Entire Parc el

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 i nclude: 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.

Income Tax Deduction Full or Partial Gift Charitable contribution tax deduction raised from 30% to 50% of Adjusted Gross Income (AGI) for each tax year Increased number of years to carry over charitable contribution from 6 to 16 years Farmers and woodlot owners who earn 50% or more of income from agriculture or timber in the year of the gift can deduct up to 100% of AGI and 15 year carry forward

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

In 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  (603)

Proposed Smith Conservation Easement 78 acres - Rochester, NH Strafford Rivers Conservancy

Estimated Project Budget Expenses 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 Value Appraised Fair Market Value = $328,000 Value 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,  (603) Questions & Answers