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HomeMy WebLinkAboutAgenda - 10-12-2010 - 2ORANGE COUNTY BOARD OF COMMISSIONERS WORK SESSION AGENDA ITEM ABSTRACT Meeting Date: October 12, 2010 Action Agenda Item No. SUBJECT: Triangle Land Conservancy Request for Funding DEPARTMENT: DEAPR PUBLIC HEARING: (YIN) No ATTACHMENT(S): Letter from TLC President Map of Property Chapel Mill News Article INFORMATION CONTACT: David Stancil, 245 -2510 PURPOSE: To discuss a request from Triangle Land Conservancy for funding assistance from the Lands Legacy Program in the amount of $50,000 for a 2010 property tax bill on land acquired in May 2010. BACKGROUND: In May of this year, Triangle Land Conservancy (TLC) completed a multi -year negotiation with the Zeist Foundation in Atlanta to acquire 613 acres of land along new Hope Church Road and Old NC 10 in Chapel Hill and Eno townships. The property in question, now known as "Brumley Forest ", was owned by George and Julia Brumley, who died tragically in a 2003 airplane crash. Title to the land transferred to the family's private foundation in Atlanta. The landholding was one of the County's largest privately -held properties. George Brumley, who served on the TLC Board prior to his death, had purchased the property along with his wife in the late- 1990's. Stoney Creek, a major tributary of the Eno River, runs through the property and is one of several conservation values (including identified prime forest) present on the site. In the early 1990's, the property was the subject of a proposed large mixed -use development (University Station), which was eventually withdrawn. TLC undertook to purchase this property and over a multi -year period accumulated $4,050,000 in grant funds, private donations, and funding from the City of Raleigh's Upper Neuse Clean Water Initiative. The property was purchased as part of a bargain sale, with the private foundation contributing about half of the appraised market value. As is standard practice, TLC will apply for property tax exemption in January 2011, but because the sale took place in mid -year of 2010, a property tax bill for 2010 (and rollback taxes from the use value tax status) was generated. A total of $216,000 in rollback taxes were paid by the buyers and sellers at the closing. As a result, TLC was left with a prorated share of property tax 2 of $50,000. TLC as a non - profit entity does not qualify for use value taxation, and it is this amount that has been requested from the Lands Legacy Program by the TLC President. The County did consider participating in the purchase of the Brumley Forest property in 2008, but opted against becoming a funding partner due to the cost of the proposed purchase. The Board at that time did indicate a willingness to consider funding assistance in some smaller capacity if the land were acquired. A map showing the potential conservation values of the property is attached, and representatives of TLC will be present to discuss their plans for the Brumley Forest property. If interested, the Board may wish to discuss a financial interest in the property in exchange for the funding, consistent with past practice. FINANCIAL IMPACT: Triangle Land Conservancy is asking for a "grant" of $50,000 from the Lands Legacy Program to help offset the cost of property taxes and use value rollback taxes (three years, prorated). The Lands Legacy Fund has an unencumbered available balance of $270,568 at present, with an additional $370,765 available and unencumbered from the Lands Legacy Opportunities Fund (pay -as- you -go funds from 2000 - 2006). Another option could be Payment -in -Lieu funds (pending review by the County Attorney), if the site will provide public access for recreation and open space. The site falls within the Chapel Hill Township District for payment -in -lieu funds, which has a balance of $73,184. The Conservation Easement Fund (unencumbered balance $287,897) would not be available for this project unless the Board wishes to try and purchase a conservation easement of part of the property. Purchase of an easement would be an option for all of the potential funding sources (if public access if allowed). This would allow the County to hold a financial interest in the property, and may be a condition of funding the Board may wish to consider. RECOMMENDATION(S): The Manager recommends that the Board discuss the request from TLC, receive additional information if desired, and provide direction to the Manager and staff. r ac •TRIANGLE LAND CONSERVANCY f September 9, 2010. Commissioner Valerie Foushee Chair, Board of Orange County Commissioners 200 South Cameron Street PO Box 8181 Hillsborough, NC 27278• Dear Chairperson Foushee; I write to respectfully request that Orange' County award Triangle Land Conservancy (TLC) a grant of $50,000 from its Lands Legacy Program to help cover some of the costs of TLC's May 2010 acquisition of the 613 -acre Brumley Forest at the intersection of New Hope Church Road and Old NC 10 (please see enclosed map). Triangle Land Conservancy raised $4,05D,000 to purchase this traet which was identified as a prime forest area in A Landscape with Wildlife. Part 2 (Haven, Ludington. and Hall, 1999} —from private donors, the NC Clean Water Management Trust Fund, and the City of Raleigh through the Upper Neuse Clean Water Initiative. The $4;050,000 purchase price was an approximately 50% bargain sale of the-appraised $8,890,000 value, which means that the seller (The Zeist Foundation) contributed $4,840,000 in,property value. Owned by George and Julia Brumley until their tragic deaths in a2003 airplane crash, title to the land transferred to the Brumley family's private foundation in Atlanta, and it was one of the county's largest privately -held properties. Triangle Land . Conservancy purchased it because of its conservation values, including protection of water quality (a major tributary of the Eno River runs through it), healthy outdoor recreation, and wildlife habitat. As with our other conservation lands, Triangle Land Conservancy will apply for property tax exemption in January 2011, but we are faced with a pro -rated property tax liability of $50,000 for 2010 because the property was taken out of present use value taxation when the,owner sold to TLC. As a nonprofit conservation organization, Triangle Land Conservancy does not qualify for present use value. Although TLC cannot apply for present use value taxation, the land management for this 613- acretract•will not change under TLC's ownership. We will keep it in'trees, manage for wildlife, and eventually invite the public i&-visit and hike. So the property will not require more county , services than it needed under the previous owner. In addition, Orange County received $216,000 in rollback property, taxes whet; TLC purchased the land. This is $2161*000 that the .county would not have collected if the property remained in present use value. Thank you very much for your consideration cf TLC's grant request Orange County's Ieadership in conservation is inspiring, and I am grateful for a long history of TLC and Orange County partnering to protect water quality, wildlife habitat and healthy lifestyles.l would be happy to discuss the matter more fully and to make a presentation if it is helpful. Sincerely yours, Kevin Brice ' President Cc: Frank Clifton, Orange County Manager - P.S. I invite you and all county commissioners to a celebration, of the Brumley Forest acquisition on Monday October 11 at 1:30 at the property. We will recognize the project's funding partners at this event 1101 Haynes Street • Suite 205 • Raleigh NC 27604 T919.833.3662 F919.755.9356 www. tri angleland.org Hillsborough Y A" 0 rel)lurham Old Nc' rough Rd JQ Old boron ?,d .0 vu 9 COO CIO J It Legend Weaver 0 OBrumley Property Brumley Property CWIVITF Projects County Boundary Open Space Lands Chapel Hill Municipality Carrbord Location Map 41'ac The property is less than 2 miles from TRIANGLE LAND Hillsborough and less than 5 miles from The Town CONSERVANCV 0 0.20.4 0.8 1.2 1.6 2 of Chapel Hill and the City of Durham. The =30000r-= Miles property could provide a critical trail connection George and Julia Brumley and wildlife corridor between Jordan Lake, Duke Family Nature Preserve Forest, and Eno River State Park. chapelhillnews.com 0 %.,hipel Hm"'News A close whidow R1 Published: Sep 29, 2010 02:00 AM Modified: Sep 27, 2010 11:14 PM Sale to preserve forest HILLSBOROUGH - The Triangle Land Conservancy has purchased Brumley Forest, the second - Story Tools largest remaining undeveloped ._: Printer Friendly M Email to a Friend parcel in Orange County. eR Enlarge Font AR Decrease Font no del.icio.us Digg it Less than 20 years ago, the 613 - acre forest was being considered More News for a major planned community • No time for complacency development. The property will • Pets need teeth cleaned become one of the conservancy's • AGENDAs newest public nature preserves. ■ Hillsborough names new chief of police • Carolina North incubator abandoned The conservancy purchased the Advertisements property for just over $4 million - less than half the appraised value Most Popular - through a bargain sale price from the seller, The Zeist Foundation, as well as backbone • Stories funding from the N.C. Clean • Emailed Water Management Trust Fund; City of Raleigh's Upper Neuse Last 24 Hours Clean Water Initiative; and the Pearson Stewart Land Opportunity Fund established • Chapel Hill's Greenbridge edifice a 'game - though TLC's recent Our Water, changer' Our Land capital campaign. • Town employees protest treatment • Friends rally for farmer after fall George and Julia Brumley of • Ribbon cut at Greenbridge Chapel Hill had owned the land • Finding pets, and saving them since the late 1980s. George Brumley III was a conservancy Last 7 Days board member in 2003 when a plane carrying him and Julia, their two children and several • Chapel Hill workers speak out against town probe other family members crashed • Chapel Hill's Greenbridge edifice a 'game - into a mountainside in Kenya, changer' killing all on board. • Town employees protest treatment • Sale to preserve forest After their deaths, the land was • Friends rally for farmer after fall passed to The Zeist Foundation, an Atlanta -based family foundation started by George Last 24 Hours Brumley's father. 1. Finding pets, and saving them Conservation of Brumley Forest benefits the public in three ways, Last 7 Days according to the conservancy: by protecting wildlife habitat, 1. Sale to preserve forest connecting people with nature and, most importantly, by 2. Grandmothers' blessing safeguarding clean water. 3. Finding pets, and saving them 4. Town employees protest treatment http:// www. chapelhillnews .com/2010 /09/29/v- print/59810 /sale -to- preserve - forest.html 10/5/2010 chapelhillnews.com 7 Brumley Forest contains more than four miles of streams and 20 acres of wetlands, with 261 acres providing 300 - foot -wide buffer areas along the sides of those streams. By keeping this land forested, the conservancy says it is safeguarding the water quality of Stony Creek, the Eno River, and ultimately, Falls Lake, which provides drinking water to more than 400,000 people in the Triangle region. Over the next five years of planning and fundraising, the conservancy will develop the property into a publicly - accessible nature preserve. 5. Marvel, the mustangs Mortgage Rates Hit 3.75% Fixed $160,000 Mortgage for $547/mo. No obligation. Get a Free Quote Now. MortgageRefinance.LendGo.com Moms Asked to Return to School Grant Funding May Be Available to Those Who Qualify. www.SeeCollegeDegrees.com /Grants Super Cheap Car Insurance - $15 / Month Get Discount Car Insurance Quotes Online - Plans from $15 / Month. Low - Income - Car -Insu ra nce. com Ads by Yahoo! With interpretive signage and a broad range of trails meandering through a variety of habitats, TLC will develop a unique educational environment for teaching families and children the value of conservation, habitat and water quality protection. All rights reserved. This copyrighted material may not be published, broadcast or redistributed in any manner. © Copyright 2010, The News & Observer Publishing Company A subsidiary of The McClatchy Company IA-,. http:// www. chapelhillnews .coml2010 /09l291v- printl59810 /sale -to- preserve - forest.html 10/5/2010