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HomeMy WebLinkAboutORD-2011-016 Conservation Easement for Sykes Dairy Farm and Budget Amendment #9oRp-a°ll- o1Co ORANGE COUNTY BOARD OF COUNTY COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 3, -2011 Action Agenda Item No. ~ ' Q, SUBJECT: Resolution of Approval -Conservation Easement for the Sykes Dairy Farm; and Approval of Budget Amendment #9-A DEPARTMENT: Environment, Agriculture, Parks PUBLIC HEARING: (Y/N) No and Recreation (DEAPR) ATTACHMENTS INFORMATION CONTACT: Resolution of Approval David Stancil, 245-2510 Location Map Rich Shaw, 245-2514 Site Map Brent Bogue, 245-2751 Draft Conservation Easement PURPOSE: To consider a resolution to approve the purchase ~of and acceptance by Orange County of an agricultural conservation easement for the Sykes .family dairy; and approve Budget Amendment #9-A. BACKGROUND: The acquisition of agricultural conservation easements to protect prime farmland in Orange County is a Longstanding goal of the Board of Commissioners, and is a priority of the Lands Legacy Program. Since completing the County's first agricultural conservation easement in 2001, Orange County has protected 1.,563 acres of prime farmland and riparian buffers with conservation easements. In April 2009, Orange County, in cooperation with the Orange NRCS/Soil and Water Conservation District Office, applied for matching grant funds from the federal Farm and Ranch Land Protection Program (FRPP). A portion of those grant funds will be used to purchase a conservation easement to protect approximately 160 acres of the Sykes farm. The Sykes .farm is located north of Bradshaw Quarry Road in .:southwestern Orange County (Bingham Township). It is one of just eight dairies in the county. The farm is operated by Jeff Sykes, who along with his late brother John, took over the dairy from their father, Vernon Sykes. Today the family owns the farm as the Sykes Family Limited Partnership. The farm is located in the Cane Creek Protected Watershed, which the County identified as a priority watershed for acquiring agricultural easements in a dual effort to protect prime farmland and drinking water quality. Turkey Hill Creek flows through the farm and drains to Cane Creek Reservoir - a principal source of drinking water for Carrboro and Chapel Hill. The Sykes family intends to grant a conservation easement on 160 acres of their 300-acre farm, including the main dairy operation (accessed from Oak Grove Church Road), cropland, and extensive pastures. About 90% of the 160 acres is in active agricultural production. The proposed conservation easement area is depicted on the attached site map. /~...,r.,.~,ri.~fo~-! fnr fhic nrniarf• Through FY 2009-10 Prior Years ProjeOcu{ lose FY2010-11 Amendment May 3, 2011 Amendment FY 2010-11 Revised Walters Easement $725,000 $725,000 0 Vol a Easement 73,100 73,100 $31,000 31,000 Cheek Easement 580,000 580,000 0 McPherson Easement 68,000 68,000 0 Ward Easement 444,750 444,750 0 Llo d Easement 219,000 219,000 0 Keith Easement 116,000 116,000 0 Fickle Creek Farm Easement 277,658 (277,658) 0 McKee Easement 612,000 612,000 0 Latta Easement 601,400 601,400 0 Tate Easement 333,750 333,750 0 Lee Farm Easement 306,250 306,250 0 Breeze Farm Easement 450,000 450,000 502,000 502,000 Underwood Easement 2,000 2,000 0 S kes Farm Easement 10,000 $510,000 520,000 Unallocated 2,231,179 143,697 1,704,906 246,000 136,576 Total Costs $7,040,707 $ 4,952,605 $1,162,526 $264,000 $1,189,576 RECOMMENDATION(S): The Manager recommends that the Board adopt the resolution approving the acceptance by Orange County of the conservation easement and authorize the Chair and the Clerk to sign the conservation easement agreement, subject to final review by staff and County Attorney, with a closing and recordation of the document expected to occur on or about June 30,2011, and approve Budget Amendment #9-A. Sykes Dairy Farm _ Sykes Dairy Farm -Conservation easements held by Orange County - Conservation easements held by others Orange County parkland & open space Non-county parkland & open space - Reservoirs & lakes ---- Streams Parcel boundary 0 Subdivisions 0 0.1250.25 0.5 Miles I ~ I i 1 4~pv r w Orange County ~ ERCD Q 5/13/2009 ~.. Proximity to Conservation Lands and Non-Agricultural Development i' /,, , A t `~ ~ ~ h ,_~ lam; ~~ ;~ i ~ ~ ~ ,~ r ,: ~ ^ ~. U~ ~ ~ • OP~ ~ ~ ` \,~\ ! • ~,~ j a `~t M ~~,` ~+, ,~. .i ~ ~. i ~ ~ ~`~ t ~ ' '` ~\ ~ .• ., ,, \ ~ ~~ ~o ~~ • Site dap Sykes easement `S,}~~C@g A9n~ltural boundary (160 acres) ~a'~ Farm use (130 acres) - 100 YR Flooq Forest (30 acres) _ ""~ Streams plain Sykes property boon ry (288 acres ~ bo a da Parcel and ry - ~ - eu~ldn9 footprints r ,d im .~ rtn i~- ~' i . ~ ~!i n li I ~~ ~\ .%\ ,~ ~ ~~ .~~ ~~ ~\ ~r ~ ~~ f~~ ~! ,T I ~~.,, o zso 52n 1,040 Feet D~n9e Coun ~...~. r ~RCD rY $~»zons e, a Sykes Agricultural Conservation Easement Draft #3 CLEAN 7 This instrument prepared by and return to: John L. Roberts, Office of the Orange County Attorney Box 8181, Hillsborough, NC 27278 Revenue Stamps: NORTH CAROLINA COUNTY OF ORANGE WARRANTY DEED OF AGRICULTURAL CONSERVATION EASEMENT This Deed of Agricultural Conservation Easement (hereinafter "Conservation Easement") is granted on this _ day of , 201 1, by SYKES FAMII~Y LIlVHTED PARTNERSHIP, a North Carolina limited partnership, having an address of 5704 Vernon Road, Mebane, NC 27302, (referred to as "Grantor"), and ORANGE COUNTY, NORTH CAROLINA, having an address. of Post Office Box 8181, Hillsborough, NC 27278 (referred to as "Grantee") and the UNITED STATES OF AMERICA ("United States") acting by and through the United States Department of Agriculture, Natural Resources Conservation Service (hereinafter "USDA", "United States", or "NRCS'.') acting on behalf of the Commodity Credit Corporation as a third party beneficiary; as its interest appears herein. The Grantor and Grantee are collectively referred to as "The Parties". The designation Grantor and Grantee as used herein shall include said parties, their respective heirs, successors and assigns, and shall include singular, plural, masculine, feminine or neutral pronouns as required by context. The United States is providing $264,000 toward the purchase of this Conservation Easement, which amount represents fifty percent of the appraised fair mazket value of the rights conveyed by this Conservation Easement ("Easement Value"). Grantor is donating five % of the Easement Value and the remaining 45 % of the Easement Value is provided by the Grantee, for a total cash consideration of $ 500,000. Page 1 of 20 Sykes Agricultw•al Conservation Easement Draft #3 CLEAN 9 The Grantor and Grantee agree that the current agricultural use of, and improvements to, the Protected Property are consistent with the conservation purposes of this Conservation Easement. The Grantor intends that the Conservation Values of the Protected Properly be preserved and maintained, and further, Grantor intends to convey to Grantee the right to preserve and protect the agricultural and other Conservation Values of the Protected Property in perpetuity. The conservation purposes of this Conservation Easement are recognized by, and the grant of this Conservation Easement will serve, the following clearly delineated governmental conservation policies: (1) Sections 1238 H and 1238 I of the Food Security Act of 1985, as amended, which authorizes the Farm. and Ranch Lands Protection Program, administered through the United States Department of Agriculture, Natural Resources Conservation Service, which provides funds for the acquisition of Conservation Easements or other interests in prime, unique, or other productive soils for the purpose of limiting conversion to nonagricultural uses of the land; (2) North Carolina General Statute 139-2 et seq., which provides that "it is hereby declared ...that the farm, forest and grazing lands of the State of North Carolina. are among the basic assets of the State and the preservation of these lands is necessary to protect and promote the health, .safety and general welfare of its people... it is hereby declared to be the policy of the legislature to provide for the conservation of the soil and resources of this State;" (3) North Carolina General Statute 106-583 et seq., which states that "It is declared to be the policy of the State of North Carolina to promote the efficient production and utilization of the products of the soil as essential to the health and welfare of our people and to promote a sound and prosperous agriculture and rural life as indispensable to the maintenance of maximum prosperity;" (4) The Uniform North Carolina Conservation and Historic Preservation Agreements Act, North Carolina General Statute 121-34 et seq., which provides that conservation agreements are "interests in land" which maybe effective "perpetually;" which provides for the enforceability of restrictions, easements, covenants or conditions "...appropriate to retaining land or water areas predominantly in their natural, scenic, or open condition or in agricultural, horticultural, farming or forest use...;" and which provides for tax assessment of lands subject to such agreements "on the basis of the true value of the land and improvement less any reduction in value caused by the agreement;" (5) The establishment of the North Carolina Agricultural Development and Farmland Preservation Trust Fund established in 1986 (N.C.G.S. 106-744(c) as amended) to preserve important farmland in North Carolina; Page 3 of 20 Sykes Agricultural Conservation Easement Draft #3 CLEAN 11 Grantor hereby voluntarily grants and conveys to the Grantee all development rights for the Protected Property, except as otherwise reserved and provided by the terms of this Conservation Easement, that aze now or hereafter inherent in the Protected Property. The parties agree that such development rights are now terminated and extinguished, and may not be used on or transferred to any other property adjacent or otherwise, nor used for the purpose of calculating permissible lot yield of the Protected Property or any other property by anyone or any entity, including the Grantee. 2. Statement of Purpose It is the primary purpose of this Conservation Easement to enable the Protected Properly to remain in agricultural use by preserving and protecting its agricultural soils and agricultural viability and productivity. Except as specifically permitted herein, no activity that would impair the actual or potential agricultural use of the Protected Property shall be permitted. To the extent that the preservation and protection of the natural, historic, recreational, habitat or scenic values referenced in this Conservation Easement are consistent with the primary purposes stated above, it is within the purpose of this Conservation Easement to also protect those values, and no activity that would significantly impair those values shall be permitted. As authorized in the Uniform Conservation and Historic Preservation Act, N.C. Gen. Stat. § 121-34 et seq.; this Conservation Easement is perpetual; it restricts the Grantor's Protected Property in perpetuity; and it is enforceable by Grantee against the Grantor, its representatives, heirs, successors and assigns, lessees, agents, and licensees. 3. Rights and Responsibilities Retained by Grantor Notwithstanding any provisions of this Conservation Easement to the contrary, the Grantor reserves to and for himself and his successors all customary rights and privileges of ownership, including the rights to sell, lease, and devise the Protected Properly provided such transaction is subject to the terms of this Conservation Easement and written notice is provided to Grantee, together with any tights not specifically prohibited by or limited by this Conservation Easement, and consistent with this Conservation Easement.. Unless otherwise specified below, nothing in this Conservation Easement shall require the Grantor to take any action to restore the condition of the Protected Property after any natural disaster or other event over which he had no control. Grantor understands that nothing in this Deed relieves him of any obligation or restriction on the use of the Protected Property imposed by law. 4. Right to Farm Grantor retains the right to farm, or to permit others to farm the Protected Property, consistent with the Conservation Values of the Protected Properly and in accordance with applicable local, state and federal laws and regulations. Subject to the terms of this Conservation Easement, farming, grazing, horticultural and animal husbandry operations are permitted only if conducted consistent with Best Management Page 5 of 20 Sykes Agricultural Conservation Easement Draft #3 CLEAN 13 livestock and wildlife or to fence offthe perimeter of the Protected Property without any further permission of Grantee. (b) Structures & Improvements -There aze several structures existing on the. Protected Property as of the date of this Agricultural Conservation Easement, as shown on Exhibit A. Existing structures, including agricultural structures and existing improvements, may be repaired, reasonably enlarged and replaced at their current locations within the "Farmstead Area," as shown on Exhibit A, without further permission from the Grantee. New buildings, including barns, sheds and other structures and improvements to be used primarily for agricultural purposes (including the processing or sale of farm products predominantly grown or raised on the Protected Property) may be built on the Protected Property without any further permission of Grantee provided they are located in the "Fazmstead Area," as shown on Exhibit A. Structures, improvements, roads as described in Pazagraph 12, and other impervious surfaces located in the "Farmstead Area," shall not exceed 15 percent of the "Farmstead Area" or result in exceeding the total 2 percent impervious surface limit on the Protected Property. Impervious surface shall be defined as any material which covers land and inhibits the percolation of water directly into the soil, including, but not limited to, buildings, roofing, the azea covered by permanent or nonpermanent structures, macadam and pavement, concrete, paved and stone driveways, roads, and parking areas, including both existing and proposed structures which are either permanent or temporary. Any new buildings, structures or improvements proposed for locations outside the "Farmstead Area" shall be for agricultural purposes only and may be built only with the advance written permission of the Grantee. The Grantee shall give such permission within a reasonable time if it determines that the proposed building, structure or improvement would not diminish or impair the Conservation Values of the Protected Property or otherwise be inconsistent with this Conservation Easement. (c) Farm Support Housing - No more than one (1) single - or multi-family -dwelling to house farm tenants, employees or others engaged in agricultural production on the Protected Property may be built on the Protected Property without any further permission of the Grantee, provided the dwelling is less than 1,000 square feet in floor size and it is located within that area identified and mazked as the "Farmstead. Area" identified on Exhibit A. Nothing about Orange County's participation in or the signing of this Deed of Easement constitutes approval of the permitting of this residential dwelling. At the time that construction of such structure is to commence, Grantee shall be notified so that its records can be updated. (d) Single-Family Residential Dwellings - No residential dwellings exist on the Protected Property as of the date of this Conservation Easement. One (1), but not more than one, single-family residential dwelling, not exceeding 3,500 squaze feet in floor area, together with reasonable appurtenant structures, such as gazage and sheds, maybe built within the area identified as "Future Residential Envelope" on Exhibit A. Nothing about Orange County's participation in or the signing of this Deed of Easement. constitutes zoning or subdivision approval or the permitting of this residential dwelling and its appurtenant structures. All Page 7 of 20 Sykes Agricultural Conservation Easement Draft #3 CLEAN 15 requirements of agricultural viability of the Protected Property, the restrictions on future development, the impervious surface limits on the Protected Property as described in Paragraph 7(b) of this Conservation Easement, the necessity of a Conservation Plan, and the prohibition on activities that are described in this Conservation Easement. It is understood that notice of this Conservation Easement will be included in any instrument recorded that subdivides, partitions or otherwise divides parcels. 9. Conservation Practices As required by Section 1238 I of the Food Security Act of 1985, as amended, the Grantor, his heirs, successors, or assigns, shall conduct all agricultural operations on the Protected Property in a manner consistent with a Conservation Plan prepared in consultation with NRCS and approved by the Orange County Soil and Water Conservation District. This Conservation Plan shall be developed using the standards and specifications of the MRCS Field Office Technical Guide and 7 CFR Part 12 that are in effect on the date of execution of this Conservation Easement. The Grantor may, however, develop and implement a Conservation Plan that proposes a higher level of conservation and is consistent with the NRCS Field Office Technical Guide standards and specifications. NRCS shall have the right to enter upon the Protected Properly, with advance notice to the Grantor, in order to monitor compliance with the Conservation Plan. In the event of noncompliance with the Conservation Plan, NRCS shall work with the Grantor to explore methods of compliance and give the Grantor a reasonable amount of time, not to exceed twelve months, to take corrective action. If the Grantor does not comply with the Conservation Plan, NRCS will inform Grantee of the Grantor's non-compliance. Grantee shall take all reasonable steps (including efforts at securing voluntary compliance and, if necessary, appropriate legal action) to secure compliance with the Conservation Plan following written notification from NRCS that (a) there is a substantial, ongoing event or circumstance of non- compliance with the Conservation Plan, (b) NRCS has worked with the Grantor to correct such. noncompliance, and (c) Grantor has exhausted his appeal rights under applicable NRCS regulations. If the NRCS standards and specifications for highly erodible land are revised after the date of this Grant based on an Act of Congress, MRCS will work cooperatively with the Grantor to develop and implement a revised Conservation Plan. The provisions of this section apply to the highly erodible land conservation requirements of the Farm and Ranch Lands Protection Program and are not intended to affect any other natural resources conservation requirements to which the Grantor may be or may become subject. 10. Forest Management Everywhere on the Protected Property, trees maybe removed, cut and otherwise managed to control insects and disease, to prevent personal injury and property damage, to remove non- native species, for pasture restoration, for firewood and other non-commercial uses, including construction of permitted improvements and fences on the Protected Property, so long as done in Page 9 of 20 Sykes Agricultural Conservation Easement Draft #3 CLEAN 17 Provided, however, that the storage of agricultural products, byproducts (including the composting of biodegradable material for on-farm use) and agricultural equipment used on the Protected Property is allowable, so long as such storage is done in accordance with all applicable government laws and regulations and in such a manner so as to not impair the Conservation Values of the Protected Property. The land application, storage and placement on the Protected Property of domestic septic effluent and municipal sewage sludge or liquid generated from such sources for agricultural purposes may be undertaken only if in accordance with all applicable federal, state and local laws and regulations. 14. Water Rights Grantor shall retain and reserve the right, consistent with federal, State and local laws and regulations, to use any appurtenant water rights sufficient to maintain the agricultural productivity. of the Protected Property. Grantor shall not transfer, encumber, lease, sell or otherwise. separate such water rights from title to the Protected Property itself. 1 S. Natural Resource Restoration and Enhancement Activities Notwithstanding any terms contained within this Conservation Easement, Grantor may engage or contract others to engage in any activity designed to repair, restore, or otherwise enhance the natural resources found or once present on the Protected Properly, that aze consistent with the Conservation Values of this Conservation Easement and subject to the written approval of Grantee and the Natural Resources Conservation Service. 16. Signs No new signs shall be permitted on the Protected Property except interpretive signs describing activities and Conservation Values of the Protected Property, signs identifying the owner of the Protected Property and the holder of the Conservation Easement, and signs giving directions or proscribing rules and regulations for the use of the Protected Property. All signs permitted on the Protected Property shall conform to applicable Orange County zoning, subdivision and building code regulations. 17. Ongoing Responsibilities of Grantor and Grantee Other than as specified herein, this Conservation Easement is not intended to impose any legal or other responsibility on Grantee or the United States, or in any way to affect any existing obligation of the Grantor as owner of the Protected Property. Among other things, this shall apply to: (a) Taxes -The Grantor shall continue to be solely responsible for payment of all taxes and assessments levied against the Protected Property. If Grantee is ever required to pay Page 11 of 20 Sykes Agricultural Conservation Easement Draft #3 CLEAN ~ 9 limitation, the right to bring proceedings in law or in equity against any party or parties attempting to violate the terms of this Conservation Easement. Except when an ongoing or imminent violation could irreversibly diminish or impair the Conservation Values of the Protected Property, Grantee shall give the Grantor written notice of the violation and thirty (30) days to cure the violation, before commencing any legal proceedings. Grantee may obtain an injunction to stop a violation or a threatened violation, temporarily or permanently. The parties agree that a court may issue an injunction or order requiring Grantor to restore the Protected Property to its condition prior to the violation, as restoration of the properly may be the only appropriate remedy. In any case where a court finds that a violation has occurred, Grantor shall reimburse Grantee for all its expenses incurred in stopping and correcting the violation, including but not limited to reasonable attorneys' fees. The failure of Grantee to discover a violation or to take immediate legal action shall not bar it from doing so at a later time for that violation or any subsequent violations. In any case where a court finds no such violation has occurred, each party shall bear its own costs. In any case where the court finds that there was a complete absence of a justiciable issue of either law or fact raised by the losing party, the court may award a reasonable attorney's fee to the prevailing party as provided by applicable law. To the extent required by law, the preceding sentence does not apply to the United States should the United States become the Grantee under this easement. Under this Conservation Easement, the United States is granted the right of enforcement in order to protect the public investment. The Secretary of the United States Department of Agriculture (the Secretary) or his or her assigns, on behalf of the United States, may exercise this right of enforcement under any authority available under State or Federal law if the Grantee or NCDACS fails to enforce any of the terms of this Conservation Easement, as determined in the sole discretion of the Secretary: 19. Transfer of Conservation Easement Subject to the contingent rights of the United States of America as specified in Paragraph 18 and other pertinent paragraphs herein, and with timely written notice to and approval of the United States Department of Agriculture, Grantee shall have the right to transfer the Easement created by this Deed to any public agency, provided the agency or organization expressly agrees to assume. the responsibility imposed on the Grantee by this Deed and has the necessary authority to hold and administer conservation easements. 20. Transfer of Property The Grantor agrees to incorporate by reference the terms of this Conservation Easement in any deed or other legal instrument by which they transfer or divest themselves of any interests, including leasehold interests, in all or a portion of the Protected Property. Grantor shall notify Grantee in writing at least thirty (30) days before conveying the Protected Property, or any part thereof or interest therein. Failure of Grantor to incorporate by reference the terms of this Conservation Easement in an instrument of transfer or conveyance or to notify Grantee of a transfer or conveyance shall not impair the validity of this Conservation Easement or limit its enforceability in any way. Page 13 of 20 Sykes Agricultural Conservation basement Draft #3 CLEAN 21 proceedings. Grantor and Grantee agree that the Conservation Easement is a currently vested real properly right with a value equal to the proportionate value the Conservation Easement has to the unencumbered value of the fee, as of the date of this grant. If the Conservation Easement is terminated or modified and any or all of the Protected Property is sold or taken for public use, then, as required by Section 1.170A-14(g)(~ of the IRS regulations, Grantee shall be entitled to the proportionate value of the Conservation Easement, which has been predetermined at sixty percent (60 %) of the Protected Property's unrestricted value, subject to any applicable law which expressly requires for a different disposition of the proceeds. If this Conservation Easement is terminated or modified by condemnation action or eminent domain, Grantee and the United States shall share, 47 % to Grantee and 53 % to the United States, Grantee's proportional value of the Conservation Easement. All condemnation-related expenses incurred by the Grantor and Grantee shall be paid out of any recovered proceeds prior to distribution of the net proceeds as described herein. 24. Interpretation This Conservation Easement shall be interpreted under the laws of the State of North Carolina and the laws of the United States, resolving any ambiguities and questions of the validity of specific provisions so as to give maximum effect to its conservation purposes. 25. Perpetual Duration; Severability The Conservation Easement created by this Deed shall be a servitude rnnn;ng with the land in perpetuity. Every provision of this Deed that applies to the Grantor or Grantee shall also apply to their respective agents, heirs, executors, administrators, assigns, and all other successors as their interests may appear. Invalidity of any of the covenants, terms or conditions of this Conservation Easement, or any part thereof by court order or judgment shall in no way, affect the validity of any of the other provisions hereof which shall remain in full force and effect. 26. Merger The Parties agree that the terms of this Conservation Easement shall survive any merger of the fee and easement interest in the Protected Property. 27. Notices Any notices required by this Deed shall be in writing and shall be personally delivered or sent by first class mail to the Grantor and Grantee respectively at the following addresses, unless a party has been notified in writing by the other of a change of address: To the Grantor: To the Grantee: To the United States NRCS: Page 15 of 20 Sykes Agricultural Conservation Easement Draft #3 CLEAN 2 3 Moreover, Grantor hereby promises to hold harmless and indemnify the Grantee and United States against all litigation, claims, demands, penalties and damages, including reasonable attorney fees, arising from or connected with the release or threatened release of any Hazardous Materials on, at, beneath or from the Protected Property, or arising.from or connected with a violation of any Environmental Laws by Grantor or any other prior owner of the Protected Property. Grantor's indemnification obligation shall not be affected by any authorizations provided by Grantee or the United States to Grantor with respect to the Protected Property or any restoration activities carried out by Grantee at the Protected Property; provided, however, that Grantee shall be responsible for any Hazardous Materials contributed by Grantee to the Protected Property after the date of this Deed of Conservation Easement. "Environmental Law" or "Environmental Laws" means any and all Federal, state, local or municipal laws, rules, orders, regulations, statutes, ordinances, codes, guidelines, policies or requirements of any governmental authority regulating or imposing standards of liability or standards of conduct (including common law) concerning air, water, solid waste, hazardous materials, worker and community right-to-know, hazard communication, noise, radioactive material, resource protection, subdivision, inland wetlands and watercourses, health protection and similar environmental health, safety, building and land use as may now or at any time hereafter be in effect. "Hazardous Materials" means any petroleum, petroleum products, fuel oil, waste oils, explosives, reactive materials, ignitable materials, corrosive materials, hazardous chemicals, hazardous wastes, hazardous substances, extremely hazardous substances, toxic substances, toxic chemicals, radioactive materials, infectious materials and any other element, compound, mixture, solution or substance which may pose a present or potential hazard to human health or the environment. 32. Entire Agreement This instrument sets forth the entire agreement of the parties with respect to the Conservation Easement and supersedes all prior discussions, negotiations, and understandings or agreements relating to the said easement. 33. .Recording Clause Grantee shall record this instrument and any amendment hereto in timely fashion with the Office of the Register of Deeds of Orange County, North Carolina, and may re-record it at any time as may be required to preserve its rights under this Conservation Easement. TO HAVE AND. TO HOLD this Deed of Conservation Easement unto Grantee, its successors and assigns, forever. Page 17 of 20 Sykes Agricultural Conservation Easement Draft #3 CLEAN 2 5 ACCEPTANCE OF PROPERTY INTEREST BY THE UNITED STATES OF AMERICA The Natural Resources Conservation Service, United States Department of Agriculture, an agency of the United States Government, hereby accepts and approves the foregoing Deed of Conservation Easement, and the rights conveyed therein, on behalf of the United States of America_ By: J. B Martin, Jr. State Conservationist NORTH CAROLINA COUNTY OF WAKE I, , a Notary Public of County, North Carolina, do hereby certify that J. B. Martin, Jr., State Conservationist, Natural Resources Conservation Service, United States Department of Agriculture, personally appeazed before me and acknowledged the due execution of the foregoing instrument on behalf of the United States of America_ Witness my hand and official stamp or seal this My commission expires: _day of , 2011. Notary Public Page 19 of 20 ~~'~' ~Zd~~~O~.~ -3-3 - i / ~'~ ~. The Board adopted a resolution, which is incorporated by reference, authorizing the execution of a HOME Consortium Agreement for the fiscal year beginning July 1, 2011 e. Communitv Development Block Grant Proqram - Adoption of Section 3 Plan and Equal Emplovment and Procurement Plan The Board adopted and authorized the Chair to sign the Section 3 Plan and Equal Employment and Procurement Plan for two FY 2010 Community Development Block Grant Awards. f. Consolidated Housinq Plan Annual Action Plan/HOME Proaram The Board adopted a Resolution, which is incorporated by reference, approving the FY 2011-2012 Consolidated Housing Plan Annual Action Plan; and adopted a Resolution, which is incorporated by reference, approving the proposed HOME Program Activates for 2011-2012 and authorized the Manager to implement the program. ~ Leqal Advertisement for Quarterlv Public Hearinq - Mav 23 2011 The Board approved the legal advertisement for items to be presented at the joint Board of county Commissioners/Planning Board Quarterly Public Hearing scheduled for May 23, 2011. h. Expansion of Reqional Partnership Workforce Development Board (WDB) The Board approved and authorized the Chair to sign the Regional Consortium Partnership Agreement; the Resolution Designating the Regional Partnership to encompass Montgomery and Moore Counties; and the State and Local Area Memorandum of Agreement. The Board also authorized staff to continue its research and return in the fall with additional assessment of future implications and options for realignment more favorable to county needs. VOTE ON CONSENT AGENDA: UNANIMOUS 6. Items Removed From Consent Aqenda - NONE 7. Public Hearinqs - NONE 8. Reqular Aaenda a. Resolution of Approval - Conservation Easement for the Svkes Dairv Farm• and Approval of Budaet Amendment #9-A The Board considered a resolution to approve the purchase of and acceptance by Orange County of an agricultural conservation easement for the Sykes family dairy, and approve Budget Amendment #9-A and authorize the Chair and the Clerk to sign. Department of Environment, Agriculture, Parks, and Recreation Director Dave Stancil said that he is pleased to come on the nearly 10`h anniversary of the first agricultural conservation easement to share about this project for the Sykes Dairy. This is one of eight remaining dairies in Orange County. He gave some background information. Land Conservation Manager Rich Shaw made a PowerPoint presentation. Agricultural Conservation Easement Sykes Dairy Orange County Lands Legacy Program Federal Farm & Ranchland Protection Program ~ Agricultural Conservation Easement Sykes Dairy •Former W.V. Sykes dairy •5618 Vernon Rd •Holstein cows •Milk production •Cropland •Permanently protected farmland •Cane Creek watershed •Landowners compensated (PDR) -$500,000, which is 95% of the appraised value. Fifty-three percent of that payment will be paid from the federal government through the Farm and Ranchland Protection Program and 47% will come from the County. The Sykes will be donating 5% of the value. •Orange County / Federal cost share •12~h farm with Lands Legacy The conservation easement is 160 acres in the forward part of the property. It is prime farmland and it is helping to protect the water supply watershed. The Manager's recommendation is that the Board adopt the resolution, including the acceptance by Orange County of the conservation easement with the closing and recordation of the document expected to occur on or about June 30, 2011; and to approve Budget Amendment #9-A, which is incorporated by reference. Rich Shaw introduced the Sykes family that was in the audience. ORANGE COUNTY BOARD OF COMMISSIONERS RESOLUTION Approval of Agricultural Conservation Easement between Orange County and the Sykes Family Limited Partnership WHEREAS, agriculture in Orange County is an important facet of the economy and time honored way of life in the County; and WHEREAS, Orange County has an adopted goal promoting the preservation of farmland in the County; and WHEREAS, one component of the Lands Legacy Program is the acquisition of conservation easements on prime farmland within water supply watersheds; and WHEREAS, the Sykes dairy farm includes approximately 160 acres in the Cane Creek protected watershed, consists entirely of prime agricultural soils, and is located in an agricultural community with good access to farm markets; and WHEREAS, Orange County intends to accept an agricultural conservation easement that would help to conserve the natural and scenic values of this farmland; and WHEREAS, a matching grant was awarded to Orange County from the federal Farm and Ranch Land Protection Program to help purchase the conservation easement; and WHEREAS, a conservation easement on this 160 acres would ensure the preservation of this farmland for future generations and help to compensate the owners for this long- term commitment; NOW, THEREFORE, BE IT RESOLVED that the Orange County Board of Commissioners does hereby 1) accept on behalf of Orange County the agricultural conservation easement to protect prime farmland owned by Sykes Family Limited Partnership; 2) approve the execution of this conservation easement agreement with Sykes Family Limited Partnership, in accordance with the terms of the proposed easement agreement, subject to final review by staff and the County Attorney; 3) authorize the Chair and the Clerk to sign the easement agreement on behalf of the Board, with a closing to occur on or about June 30, 2011; and 4) authorize County staff to sign any and all closing documents upon consultation with the County Attorney. This the 3rd day of May, 2011. A motion was made by Commissioner Foushee, seconded by Commissioner Hemminger to adopt a resolution approving the acceptance by Orange County of the conservation easement and authorize the Chair and the Clerk to sign the conservation easement agreement, subject to final review by staff and County Attorney, with a closing and recordation of the document expected to occur on or about June 30, 2011, and approve Budget Amendment #9-A. VOTE: UNANIMOUS b. Bus Route 420 (Hillsborouqh to Chapel Hill) Service Chanqes The Board considered approving changes of Route 420 as proposed by Triangle Transit and Orange Public Transportation (OPT). Planning Director Craig Benedict introduced AI Terry, Orange Public Transportation Manager. He said that this item has to do with bus route 420, which is a route between Hillsborough and Chapel Hill. This route was first initiated by OPT and the ridership was so good that it was picked up by Triangle Transit, which provided part of the funding. Two entities were hired to run the route - Chapel Hill Transit for peak service in the morning and afternoon and OPT for the midday service. This route has been doing well since 2008. The bad news is that Triangle Transit no longer wants to fund the midday service, which was about four routes that OPT was running. Triangle Transit was funding 50% of those midday routes. There were four routes midday and this will be pulled back to two. There will be some financial implications to this, but these have not been completely sorted out. The timeframe for the changes are that