Loading...
HomeMy WebLinkAboutS ECD - Eno River Association purchase of Eno Confluence property & conservation easement.. ~~F /~3-0~ ~. 3 • This instrument prepared by and return to: Eno River Association, 4419 Guess Road, Durham, NC 27712 Telephone: (919) 620-9099; Facsimile: (919) 477-0448 NORTH CAROLINA ORANGE COUNTY AGREEMENT THIS AGREEMENT is made and entered into as of this the sue` day of December, 2007, by and between the ASSOCIATION FOR THE PRESERVATION OF THE ENO • RIVER VALLEY, INC., hereinafter referred to as "the Association," and ORANGE COUNTY, NORTH CAROLINA, hereinafter referred to as "the County." RECITALS The Association has contracted to purchase a tract of land located in Cheeks Township at the confluence of the East and West Forks of the Eno River consisting of approximately 110 acres of mixed wetlands, woodlands, and fields, which it intends to use in perpetuity for conservation and education purposes, including the preservation of native plant and animal species and habitats, water quality protection, and low impact recreation such as hiking, bird watching and-other recreation and education uses not inconsistent with protection of the conservation values of the property. Reference is hereby made to that deed recorded in Book 1796, Page 466 of the Orange County Registry for a more particular description of the property, Orange County PIN 9856-36-2947. Closing on the purchase of the property by the Association is anticipated to occur prior to December 31, 2007. The Association and the County jointly submitted an application to the Clean Water Management Trust Fund for grant funding to assist in purchasing the property, and have been awarded grant funds in the amount of $685,000.00. In exchange for receipt of these grant funds the Association will convey to the State of North Carolina a Conservation Easement on those portions of the property lying within 300 feet of all streams located on or adjacent to the property. Transfer of funds from the Clean Water Management Trust Fund to the Association and recordation of the Conservation Easement to the State is anticipated to occur in mid to late 2008. Page 1 of 3 Pending receipt of grant funds from the Clean Water Management Trust Fund, and in . order to close on the purchase of the property prior to December 31, 2007, the Association has obtained a loan from The Conservation Fund in the amount of $656,400.00, which is the portion of the aforesaid grant from the Clean Water Management Trust Fund dedicated to the purchase cost. In exchange for receipt of the loan funds the Association will execute a Promissory Note in favor of The Conservation Fund obligating the Association to repay The Conservation Fund upon receipt of the Clean Water Management Trust Fund grant funding. The Promissory Note will be secured by a first lien Deed of Trust recorded contemporaneously with the recordation of the Association's Deed from its Seller. NOW THEREFORE, FOR AND IN CONSIDERATION OF THE BENEFITS TO EACH OF THE PARTIES AS SET FORTH IN THIS AGREEMENT, THE ASSOCIATION AND THE COUNTY AGREE AS FOLLOWS: 1. In recognition of the benefits to the citizens of Orange County of maintaining the property in the foregoing manner as conservation open space, the County agrees to contribute the sum of $250,000.00 toward the purchase of the property by the Association. 2. In exchange for receipt of these funds the Association will convey to the County a Conservation Easement on the entire property, which will be recorded contemporaneously with and following the Conservation Easement conveyed to the State of North Carolina; provided that the Conservation Easement to be conveyed to Orange County shall be executed and recorded no i later than December 31, 2008. 3. Pending recordation of the aforesaid Conservation Easement to the County, in exchange for receipt of the County's funds at closing the Association will execute a Promissory Note in favor of the County obligating the Association to repay the County's funds in the event that the Association fails to execute and record a Conservation Easement acceptable to the County as described above. The Promissory Note will be secured by a second lien Deed of Trust recorded contemporaneously and following The Conservation Fund's Deed of Trust. 4. Upon the recordation of the Orange County Conservation Easement described above, the terms of the Promissory Note shall be deemed to be satisfied, and the County will cancel the lien of its Deed of Trust. IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf by its duly authorized official, to be effective from the day and year first above written. r ~ ~ _J Page 2 of 3 • ASSOCIATION FOR THE PRESERVATION OF THE ENO RIVER VALLEY, INC. ~;~ • ATTEST: Donn S. Baker Clerk to the Board of Commissioners • By' Holly F. Reid, Board of Direc ORANGE COUNTY, NORTH CAROLINA By: Page 3 of 3 • ORANGE COUNTY BOARD OF COUNTY COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 3, 2007 Action Age ~a Item No. SUBJECT: Resolution of Approval -Contribution of Funds for Land Acquisition and Acceptance of Conservation Easement from the Eno River Association DEPARTMENT: Environment and Resource PUBLIC HEARING: (Y/N) Conservation ATTACHMENTS INFORMATION CONTACT: Resolution of Approval David Stancil, 245-2590 Location Map Rich Shaw, 245-2591 Site Map Draft Agreement (County-ERA) Draft Conservation Easement PURPOSE: To consider a resolution authorizing an agreement between the County and the Eno River Association for the County contribution of funds for the purchase of the Eno • Confluence property (110 acres) and the acceptance of a conservation easement for the same property. BACKGROUND: Orange County is collaborating with the Eno River Association on the acquisition and permanent protection of a 110-acre tract of land along the Eno River in northwestern Orange County. The property is located west of Highland Farm Road, approximately one mile south of the intersection with Efland-Cedar Grove Road. The owner is Ms. Joanne Stollings of Burlington. The "Eno Confluence Property" has 2.1 miles bordering the Easf and West Forks of the Eno River, and is recognized as a high priority site for conservation purposes. Sections of the river support aquatic habitat of national significance. In addition, the site includes remains of the former Smith Mill. Acquisition of high-priority lands in the Upper Eno Watershed critical area is identified in the Lands Legacy Action Plan adopted for FY 2006-08. In March 2007, the County and the Eno River Association submitted a joint grant application to the NC Clean Water Management Trust Fund (CWMTF) for state funds needed to purchase the Stollings property. The application included a pledge from Orange County to contribute up to $250,000 for the purchase. On September 10, the CWMTF awarded $685,000 toward the acquisition, including a portion of the transaction costs. The Eno River Association has negotiated a contract to purchase the property, using a combination of State, local government, and private funds. In addition to the CWMTF grant, the Association has been awarded $110,470 from the City of Raleigh through the Upper Neuse Clean Water Initiative. The Association requests $250,000 from Orange County and • will raise the balance of funds from its membership and other private sources. 2 . The Eno River Association intends to acquire the property and manage it for resource conservation and low-impact public recreation and education. Orange County's interests in the property will be represented through a conservation easement granted by the Association to the County, thereby adding perpetual use restrictions intended to protect the future use of the property as slow-impact park and natural area. The State of North Carolina will also hold a conservation easement on a portion of the property within 300 feet of the Eno River corridors. Upon approval by the Board, a closing on the property purchase is expected to occur on December 18, 2007. The conservation easement would be granted to the County by mid- to late 2008 but not later than December 31, 2008 as set forth in the attached agreement between the County and the Eno River Association. FINANCIAL IMPACT: The Association has a contract to purchase the property for $1,104,700 ($10,000/acre) plus option fees totaling up to $259,128 and payable over athree- year period ending October 2009. Funding for the purchase would come from the NC Clean Water Management Trust Fund ($656,400), the Upper Neuse Clean Water Initiative ($110,470), Orange County ($250,000), and $132,110 in private funds raised by the Eno River Association. An additional estimated $13,000 in transaction and other project costs would be paid by the Eno River Association and state Clean Water grant. Because the Association intends to close by December 18, 2007, the option fees will be reduced significantly with an anticipated savings of approximately $190,000. The total • project cost, therefore, would be approximately $1,187,000. The County's portion of the purchase price would be $250,000 (or $2,273/acre). Funds would be paid from the County's 2001 Parks and Open Space bond (Lands Legacy). A total of $5.25 million has been appropriated from this source, with $2.42 million spent thus far. A capital project ordinance will be presented at a subsequent meeting for this purchase. Orange County would be granted a conservation easement in exchange for its contribution of funds for the land acquisition. The attached agreement stipulates that the Eno River Association will grant a conservation easement to the County the sooner of the closing on the NC Clean Water Management Trust Fund grant or December 31, 2008. RECOMMENDATION: The Manager recommends that the Board~approve the resolution authorizing the following: a) the County's contribution of $250,000 toward the purchase of the Eno Confluence property with a transfer of funds for a closing on the purchase expected to occur on or about December 18, 2007; and b) the County entering into an agreement with the Eno River Association that stipulates the Eno River Association will grant a conservation easement to the County on or before December 31, 2008; and c) the Chair and the Clerk to sign said agreement, subject to final review by staff and the County Attorney; and d) the Chair and the Clerk to sign the conservation easement agreement, subject to final . review by staff and the County Attorney. 3 ORANGE COUNTY BOARD OF COMMISSIONERS RESOLUTION Authorization to Accept a Conservation Easement from the Eno River Association for the Eno Confluence Property WHEREAS, Orange County has adopted goals promoting the preservation of natural areas, wildlife habitat, farmland and open space in the County; and WHEREAS, one component of the Lands Legacy Program is the acquisition of conservation easements on lands that include natural areas, wildlife habitat and riparian buffers within water supply watersheds; and WHEREAS, Orange County and the Eno River Association, a private non-profit land trust with similar conservation goals, have agreed to collaborate on the acquisition and protection of riparian buffers and aquatic habitat in the Upper Eno watershed; and WHEREAS, Orange County and the Eno River Association were awarded a grant from the NC Clean Water Management Trust Fund to protect a 110-acre property located at the confluence of the East and West Forks of the Eno River ("Eno Confluence"); and WHEREAS, the Eno River Association intends to acquire the property and grant a conservation easement over the entire property to Orange County, which would protect the • property for future low-impact recreation and educational uses; and WHEREAS, Orange County and the Eno River Association have generally agreed on the language of said conservation easement to be granted to the County; and WHEREAS, the Eno River Association intends to execute a promissory note obligating the Association to repay the County's funds in the event that the Association fails to execute and record a conservation easement acceptable to the County; and WHEREAS, the joint acquisition and protection of this property is exemplary of the County's ongoing collaboration and partnership with the Eno River Association; NOW, THEREFORE, BE IT RESOLVED that that the County agrees to release funds in the amount of $250,000 for the purchase of the Eno Confluence property, which will be owned by the Eno River Association. BE IT FURTHER RESOLVED that the Orange County Board of Commissioners agree to the acceptance of a conservation easement from the Eno River Association, with the understanding that said easement will be granted to the County on or before December 31, 2008. BE IT FURTHER RESOLVED that the Orange County Board of Commissioners agree to execute an agreement with the Eno River Association that stipulates the specific terms of its collaboration on this project. This, the 3rd day of December, 200? Chair Orange County Board of Commissioners Donna Baker, Clerk to the Board • r~