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HomeMy WebLinkAboutS Warranty Deed of Conservation Easement - Michael M. Hughes and Dale A. Morgan 201312190002911440 S/INS Bk:RB5734 :9:426 12!19/2013 04:16:43 PM 1120 FILED Deborah B. Brooks Register of Deeds, Orange Co,NC Recording Fee: 546.00 NC Real Estate X: '$.00 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 CONSERVATION EASEMENT This Deed of Conservation Easement(hereinafter "Conservation Easement") is made on this _jj!�day of December,2013 by MICHAEL M. HUGHES and DALE A.MORGAN,having an address of 8112 Orange Grove Road,Chapel Hill,NC 27516(hereinafter"Grantor") and ORANGE COUNTY,NORTH CAROLINA, having an address of Post Office Box 8181, Hillsborough,NC 27278 (hereinafter "Grantee"or"the Grantee"). The designation Grantor and Grantee as used herein shall include said parties,their heirs, successors and assigns,and shall include singular,plural, masculine, feminine or neuter pronouns as required by context. RECITALS . A. The Grantor is the sole owner in fee simple of certain real property located in Bingham Township, Orange County,North Carolina, and described on Exhibit A and Exhibit B hereto,which is incorporated herein by reference. The tract of land comprises approximately 11.18 acres, and is hereinafter referred to as"the Easement Area." The Easement Area includes buildings and other improvements, which are shown on Exhibit C,attached hereto and incorporated herein. B. The Grantee is a body politic and corporate, a political subdivision of the State of North Carolina,with powers prescribed in Chapter 153A of the North Carolina General Statutes. Page 1 of 15 Il���l�l���l��ll����l��lllilllli Illllillliilli 865734 427 2120 C. To the extent practicable, the Grantor and Grantee wish to maintain the Easement Area as a combination of woodland and open space suitable as habitat for the native flora and fauna of the North Carolina Piedmont, and to protect the water quality of Collins Creek and other perennial streams that flow through this land and eventually to the Haw River and Jordan Lake. The grant of this Conservation Easement will further said wish, and will serve the following "Conservation Purposes,"as such that term is defined in Section 170 (h)(4)(A) of the Code: The Easement Area contains a natural area that has not been subject to significant development, which provides a"...relatively natural habitat of fish, wildlife, or plants, or similar ecosystem,"as that phrase is used in P.L. 96-541, 26 UCS 170(h)(A)(ii), as amended, and in regulations promulgated thereunder. The Easement Area contains complex natural communities including: bottomland hardwood forest dominated by hardwood wetland trees; Collins Creek and three feeder streams; upland forest dominated by beech, oaks, hickories, and large pines; a diverse forested habitat for several species of birds; and natural depressions in low-lying areas that provide breeding sites for salamanders, a community ranked "globally rare"and"very rare in the state" by the North Carolina Natural Heritage Program. It is a primary purpose of this Conservation Easement to protect the undeveloped nature of the Easement Area and, in doing so,to support and help protect the natural area and wildlife habitat associated with this area. The Easement Area also contains an intact segment of Collins Creek, which the State of North Carolina identifies on its list of"303(d) impaired streams."It is a specific objective of Orange County in its 2030 Comprehensive Plan, to reduce the number of 303(d) impaired streams by minimizing impacts of non-point and point source pollution. Another primary purpose of this Easement is to protect the undeveloped nature of the Easement Area and, in doing so, helping to protect the water quality associated with Collins Creek. The Easement Area also contributes to the open space and rural character of this section of Bingham Township. It is a further purpose of this Conservation Easement to help to protect the rural character and open space of Bingham Township. The natural habitat of the Easement Area,and its contribution to the protection of Collins Creek water quality, as well as the open space and rural character of Bingham Township are collectively referred to as the "conservation values" of the Easement Area- The Grantor and Grantee agree that the current uses of and improvements to the Easement Area are consistent with the conservation purposes of this Conservation Easement. The conservation purposes of this easement, notwithstanding anything to the contrary contained herein, are also recognized by, and this Conservation Easement will also serve, the following clearly delineated governmental conservation policies: Page 2 of 15 RB5734 428 3120 (1) the Orange County Board of Commissioners' goal (adopted June 21, 1999)to identify and coordinate the preservation of the County's most significant natural areas; and (2) the Land Use Element of the Orange County Comprehensive Plan (adopted November 18, 2008) with its goal of"Land uses that are appropriate to on-site environmental conditions and features, and that protect natural resources, cultural resources, and community character." (3) the protection of similar Orange County properties designed to protect conservation and open space values through conservation easements granted to the Grantee and others in the immediate vicinity of the Easement Area; and (4)NCGS § 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"; and (5)Article 17 of the North Carolina General Statutes NCGS l I3A-240-241, entitled Conservation, Farmland and Open Space Protection and Coordination, otherwise known as the "Million Acre Initiative," which states that the State of North Carolina shall encourage, facilitate,plan, coordinate, and support appropriate federal, State, local, and private land protection efforts so that an additional one million acres of farmland, open space and conservation lands in the State are permanently protected by December 31, 2009; and (6)the North Carolina Conservation Tax Credit Program, authorized by NCGS § 105-130.34 and 105-151.12 et seq., which provides for state income tax credits for donations of land that are useful for fish and wildlife conservation and other similar land conservation purposes; and (7) the Clean Water Management Trust Fund, authorized by NCGS § 113A-251 et seq., which finances projects to acquire land and interests in land, including conservation easements for the purposes of providing environmental protection for surface waters and urban drinking water supplies; and (8) the Soil and Water Conservation Districts Act, authorized by NCGS § 139-1, et seq_, which provides for the preservation of farm, forest and grazing lands; and (9) the special use assessment of farm and forestland as set forth in NCGS § 105- 277.2 et seq., which allows for lower property tax rates for land enrolled in active agricultural uses. Page 3 of 15 RB5734 429 4120 D. The characteristics and conservation values of the Easement Area,its current use and state of improvement, are described in a report entitled "Baseline Documentation Report for the Hughes-Morgan Conservation Easement," dated December 2013 (hereafter "the Baseline Report") prepared by Orange County DEAPR for the Grantor,of which a summary is attached as Exhibit D to this Conservation Easement. The Grantor worked with the Grantee to ensure that the report is a complete and accurate description of the Easement Area as of the date of this Conservation Easement. It will be used by the Grantor and Grantee to assure that any future changes in the use of the Easement Area will be consistent with the terms of this Conservation Easement. However,the Baseline Report is not intended to preclude the use of other evidence to establish the present condition of the Easement Area if there is a question about its use. E. The Grantor and Grantee have the common purpose of conserving the above-described conservation values of the Easement Area in perpetuity, and the State of North Carolina has authorized the creation of Conservation Easements pursuant to the terms of the North Carolina Conservation and Historic Preservation Agreements Act,N.C. Gen. Stat. § 121-34 et seq., and G.S. § 153A-176 and G.S. § 160A-266 - 279, which provide 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 uses," and which provide for tax assessment of lands subject to such agreements "on the basis of the true value of the land and improvements less any reduction in value caused by the agreement"; and the Grantor and Grantee wish to avail themselves of the provisions of those laws. NOW, THEREFORE, the Grantor, as an absolute gift of no monetary consideration, but in consideration of the facts recited above and of the mutual covenants, terms, conditions and restrictions contained herein, hereby gives, grants and conveys unto the Grantee, its successors and assigns, forever and in perpetuity for the benefit of the people of North Carolina, a Conservation Easement over the Easement Area of the nature and character as follows: With the exception of those rights retained herein, Grantor conveys to Grantee all development rights that are now or hereafter allocated to, implied, reserved or inherent in the Easement Area, and the parties agree that such rights are terminated and extinguished, and may not be used on or transmitted to any portion of the Easement Area, as it now or hereafter may be bounded or described, or to any other property. 1. PURPOSE. As outlined in the Recitals above,the purposes of this Conservation Easement are to ensure that the Easement Area will be retained forever, predominantly in its natural, forested, and open space condition; to protect native plants and animals, or plant communities on the Easement Area, while allowing certain limited uses on the Easement Area that are compatible with and not destructive of the conservation values of the Easement Area; and to prevent any use of the Easement Area that will significantly impair or interfere with conservation values or interests of the Easement Area. Page 4 of 15 RS5734 430 5120 Grantor will not perform, nor knowingly allow others to perform, any act on or affecting the Easement Area that is inconsistent with the purposes of this Conservation Easement. However,unless otherwise specified below,nothing in this Conservation Easement shall require the Grantor to take any action to restore the condition of the Easement Area after any act of nature or other event over which Grantor had no control. Grantor understands that nothing in this Conservation Easement relieves her of any obligation or restriction on the use of the Easement Area imposed by law. 2. EASEMENT AREA USES. Any activity on, or use of,the Easement Area inconsistent with the purposes of this Conservation Easement is prohibited. The Easement Area shall be maintained in its natural and open condition and restricted from any development that would impair or interfere with the conservation values of the Easement Area. Without limiting the generality of the foregoing,the following is a listing of activities and uses which are expressly prohibited or which are expressly allowed. Grantor and Grantee have determined that the allowed activities do not impair the conservation values of the Easement Area. Additional retained rights of Grantor are set forth in Paragraph 3 below. 2.1 Subdivision and Conveyance. The Easement Area is a portion of one tax parcel(herein"parcel"),which is described in Exhibit A and Exhibit B. The Easement Area itself may not be further divided, subdivided or partitioned to establish additional parcels.Any future conveyance of the fee simple interest in the Easement Area shall be subject to this Conservation Easement. Grantor agrees for themselves,their successors and assigns,that in the event they transfer the Easement Area, such transfer is subject to the Grantee's right of ingress, egress,and regress over and across the Easement Area for the purposes set forth herein. 2.2 Construction. No permanent structures exist on the Easement Area at the time of this Conservation Easement. The Grantors' reserve the right to construct or reconstruct new structures and other improvements described in subparagraphs (a)through(c)below. Any construction or reconstruction not permitted below is prohibited. Furthermore,there shall be no constructing or placing of any outdoor lighting, utility pole, utility tower, conduit or line on or above the Easement Area. Before undertaking any construction or reconstruction that requires advance permission,Grantor shall notify Grantee and obtain written permission from the Orange County Department of Environment,Agriculture, Parks and Recreation or a successor department. All construction or reconstruction is subject to Orange County zoning regulations and must be consistent with permits required by and issued by Orange County under its laws and ordinances for such construction activities. (a) Fences—Fences may be built on the Easement Area to identify property boundaries and thereafter repaired and replaced without any further permission of Grantee. (b) New Structures and Improvements—Grantors have the right to construct no more than three(3)small pedestrian bridges to cross over streams within the Easement Area. No other structures may be placed or constructed on the Easement Area. Page 5 of 15 RB5734 431 6120 (c) Pedestrian Trails—Pedestrian trails may be constructed as long as such trails be of a natural surface,not be more than six(6') feet wide, and located at a minimum distance of thirty (30) feet from the top of the bank of the Collins Creek. 2.3 Utility Services and Septic Systems. Construction, maintenance, repair or improvement of electric, gas, water facilities, sewer lines and/or other public or private utilities, including telephone or other communication services is prohibited within the Easement Area. 2.4 Agricultural, Grazing and Horticultural Use. Agricultural, grazing,and horticultural uses of the Easement Area are prohibited. 2.5 Timber Harvesting and Forest Management. Commercial timbering of trees on the Easement Area is prohibited. Trees may be removed, cut and otherwise managed to control insects and disease, to prevent personal injury and property damage, to remove non- native species, and/or to salvage wind-thrown timber for firewood and other non-commercial purposes, including for construction of permitted improvements and fences on the Easement Area. Such management activities must be pursuant to a written Forest Management Plan or Forest Stewardship Plan prepared by a North Carolina registered forester,the selection of whom is mutually agreed upon by Grantor and Grantee and which management activities must be agreed to in advance by Grantee and Grantor. 2.6 Recreational Use. Consistent with the purpose of and the limitations contained in this Conservation Easement, Grantor shall have the right to engage in and permit others, whether or not for consideration,to engage in recreational uses of the Easement Area, including, but not limited to, hiking, picnicking, and other recreational uses that require no buildings, facilities, surface alteration or other development of the land. Hunting is prohibited except as authorized in Section 2.13 of this Conservation Easement. Grantor reserves the right to promulgate and enforce reasonable rules and regulations for all activities incident to recreational use of the Easement Area, including but not limited to the right to prohibit any recreational use that would permit destruction of other significant conservation values of the Easement Area. 2.7 Excavation. There shall be no filling, excavation, dredging, mining or drilling; no removal of topsoil, sand, gravel, rock,peat,minerals or other materials; and no change in the topography of the land in any manner except as necessary to allow a) the construction of the improvements permitted herein,b)the maintenance of hiking trails permitted herein, c)the combating of erosion or flooding, and d)to enhance the plant and animal ecosystems native to the locality. 2.8 Destruction of Plants. Grantor shall have the right to cut and remove diseased trees, shrubs, or other plants, to cut and remove invasive (usually non-native)trees, shrubs and other plants, and to cut firebreaks. Grantor shall also have the right to cut and remove trees, shrubs, or other plants to accommodate the activities expressly allowed under this Page 6 of 15 RE5734 432 7120 Conservation Easement. There shall be no additional removal, harvesting, destruction or cutting of native trees, shrubs or other plants. Furthermore, except to accommodate the activities expressly permitted in this easement,there shall be no use of fertilizers,plowing, introduction of non-native animals, or disturbance or change in the natural habitat in any manner. 2.9 Water Quality and Drainage Patterns. There shall be no pollution of surface water, natural water courses, lakes, ponds, marshes, subsurface water or any other water bodies, nor shall activities be conducted on the Easement Area that would be detrimental to water purity or, except as specified herein,that could alter the natural water level or flow in or over the Easement Area. There shall be no alteration, depletion or extraction of surface water, natural watercourses, lakes, ponds, marshes, subsurface water or any other water bodies on the Easement Area. Diking,draining, filling or removal of wetlands is prohibited. 2.10 Signage. No signs or billboards or other advertising displays are allowed on the Easement Area except as otherwise permitted herein and as follows: signs authorized by Orange County zoning regulations whose placement,number and design do not diminish the scenic character of the Easement Area may be displayed to identify the conservation values of the Easement Area,to identify the Conservation Easement,to give directions, to advertise or regulate permitted uses on the Easement Area and prescribe rules and regulations for educational use of the Easement Area, to advertise the Easement Area for sale or rent, to post the Easement Area against trespassers, and to identify the Grantor as fee simple owner of the Easement Area, and to identify the Grantee as holder of the Conservation Easement. 2.11 No Biocides. There shall be no use of pesticides or biocides, including but not limited to insecticides, fungicides, rodenticides, and herbicides, except as approved by Grantee to control invasive species detrimental to the conservation values of the Easement Area. 2.12 No Dumping. There shall be no storage or dumping of trash, garbage, abandoned vehicles, appliances, or machinery, or other unsightly or offensive material, hazardous substance, or toxic waste on the Easement Area. There shall be no changing of the topography through the placing of soil or other substance or material such as land fill or dredging spoils, nor shall activities be conducted on the Easement Area that could cause erosion or siltation on the Easement Area. 2.13 Predator Control. Grantor shall have the right to control, destroy, or trap predatory and problem animals that pose a material threat to humans by means and methods with prior written approval of Grantee. The method employed shall be selective and specific to individuals, rather than broadcast, nonselective techniques. 2.14 Commercial Development. Any commercial or industrial use of or activity within the Easement Area is prohibited. This restriction on use shall not be construed to prohibit use of the Easement Area for recreational, educational and scientific purposes, as long as such activities are undertaken on a noncommercial basis. Page 7 of 15 Il���l�l���l��lj������lfllllll I Nlllllf illf I lfl R66734 433 9120 2.14 Development Rights. Grantor conveys to Grantee all development rights that are now or hereafter allocated to, implied, reserved or inherent in the Easement Area, and the parties agree that such rights are terminated and extinguished, and may not be used on or transmitted to any portion of the Easement Area, as it now or hereafter may be bounded or described,or to any other property. 3. ADDITIONAL RIGHTS RETAINED BY GRANTOR. Grantor retains the following additional rights: (a) Existing Uses. The right to undertake or continue any activity or use of the Easement Area not prohibited by this Conservation Easement. Prior to making any change in use of the Easement Area, Grantor shall notify Grantee in writing to allow Grantee a reasonable opportunity to determine whether such change would violate the terms of this Conservation Easement. This determination by Grantee shall be made in writing. (b) Transfer. The right to sell, give,mortgage, lease, or otherwise convey the Easement Area is subject to the terms of this Conservation Easement. 4. GRANTEE'S RIGHTS AND RESPONSIBILITIES. To accomplish the purposes of this Conservation Easement, the following rights are granted to Grantee and the following responsibilities are reserved to Grantee by this Conservation Easement: (a) Right to Protect. The right to preserve and protect the conservation values of the Easement Area and enforce the terms of this Conservation Easement. (b) Right of Entry. Grantee, its employees, representatives, and agents and its successors and assigns,have the right, after reasonable advance notice to Grantor or with Grantor's prior verbal consent, to enter the Easement Area for the purposes of: (a) inspecting the Easement Area to determine whether the Grantor, her representatives, assigns, heirs and successors are complying with the covenants and purposes of this Conservation Easement; and (b) monitoring and research as described below. (c) Monitoring and Research. The right, but not the obligation, to monitor the native plant and wildlife populations, plant communities and natural habitats on the Easement Area. Grantee agrees that all monitoring activity, inventory and assessment work or other natural resource research conducted by Grantee or at Grantee's direction or with Grantee's permission shall be reported to Grantor. Grantor agrees that all monitoring activity, inventory and assessment work or other natural resource research conducted by Grantor or at Grantor's direction or with Grantor's permission shall be reported to Grantee. (d) Management of Exotics and Invasive Species. The right, but not the obligation, to control, manage or destroy exotic non-native species or invasive species of plants Page 8 of 15 RB5734 434 9120 and animals that threaten the conservation values of the Easement Area. Grantee will consult with Grantor prior to implementing any such control activities. 5. RESPONSIBILITIES OF GRANTOR AND GRANTEE NOT AFFECTED. Other than as specified herein,this Conservation Easement is not intended to impose any legal or other responsibility on the Grantor, or in any way to affect any existing obligation of the Grantor as owner of the Easement Area. Among other things, this means: (a) Taxes—The Grantor shall continue to be solely responsible for payment of all taxes and assessments levied against the Easement Area. If Grantee is ever required to pay any taxes or assessments on its interest in the Easement Area,the Grantor will reimburse Grantee for the same. (b) Upkeep and Maintenance—The Grantor retains all responsibilities and shall bear all costs and liability of any kind related to the ownership, operation, and upkeep and maintenance of the Easement Area, including the maintenance of adequate comprehensive general liability insurance coverage. Grantee shall have no obligation for the upkeep or maintenance of the Easement Area. Grantor will remain responsible for upkeep, maintenance, and repairs to any impoundments located on the Easement Area. (c) Liability and Indemnification—Grantor agrees to indemnify and hold Grantee harmless from any and all costs, claims or liability, including but not limited to reasonable attorneys' fees arising from any personal injury, accidents,negligence or damage relating to the Easement Area, or any claim thereof, unless due to the negligence of Grantee or agents of Grantee, in which case liability shall be as provided by law. In addition, Grantor agrees to maintain liability insurance covering the Easement Area with the limits as follows: (i) $200,000 per person for personal injury or death, up to $200,000 per occurrence; and (ii) $200,000 per occurrence for property damage; and warrant that Grantee is and will remain a named insured on property insurance policies covering the Easement Area. Grantor shall provide Grantee with a certificate of insurance coverage on the effective date of this Conservation Easement and within 10 days of each insurance renewal date. 6. ACCESS. No right of access by the general public to any portion of the Easement Area is conveyed by this Conservation Easement. However,the public has the right to view the Easement Area from adjacent publicly accessible areas such as public lands, roads and waterways. 7. ENFORCEMENT. The Grantee shall have the right to prevent and correct violations of the terms of this Conservation Easement. (a) With reasonable advance notice provided to the Grantor or with the Grantor's prior verbal consent,the Grantee shall have the right to enter the Easement Area for the purpose of inspecting for compliance with the terms of this Conservation Easement. The Grantee shall have the right to prevent violations and remedy violations of the terms of this Conservation Easement through judicial action,which shall include, without limitation, the right to bring Page 9 of 15 RB5734 435 10/20 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 Easement Area, the Grantee shalt give the Grantor written notice of the violation and thirty(30) days to cure the violation, before commencing any legal proceedings. The 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 the Grantor to restore the Easement Area to its condition prior to the violation, as restoration of the property may be the only appropriate remedy. In any case where a court finds that a violation has occurred, the Grantor shall reimburse the Grantee for all its expenses incurred in stopping and correcting the violation, including but not limited to reasonable attorneys' fees. 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 law. The failure of the 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. (b) Grantee shall not bring any action against Grantor for any injury or change to the Easement Area caused by third parties, or resulting from causes beyond the Grantor's control, including, without limitation, fire, flood, storm and naturally caused earth movement, or from any prudent action taken in good faith by the Grantor under emergency conditions to prevent, abate, or mitigate significant injury to life, damage to the Easement Area or harm to the Easement Area resulting from such action. 8. TRANSFER OF EASEMENT. The Grantee shall have the right to transfer, assign, convey, or otherwise to co-hold the Conservation Easement created by this Deed to any public agency or private nonprofit organization that, at the time of transfer, is a qualified organization under Section 170(h)of the U.S. Internal Revenue Code, as amended and under NCGS 121-34 et seq.,provided the agency or organization expressly agrees to assume the responsibility imposed on Grantee by this Deed. If the Grantee ever ceases to exist or no longer qualifies under Section 170(h) of the U.S. Internal Revenue Code, or applicable state law, a court with jurisdiction shall transfer this Conservation Easement to another qualified organization having similar purposes that agrees to assume the responsibility imposed by this Conservation Easement. 9. TRANSFER OF EASEMENT AREA. The Grantor agrees to incorporate by reference the terms of this Conservation Easement in any deed or other legal instrument by which it transfers or divests itself of any interest, including leasehold interest, in all or a portion of the Easement Area. The Grantor shall notify the Grantee in writing at least thirty (30) days before conveying the Easement Area, or any part thereof or interest therein. Failure of Grantor to do so shall not impair the validity of this Conservation Easement or limit its enforceability in any way. 10. AMENDMENT OF EASEMENT. This Conservation Easement may be amended only with the written consent of Grantor and Grantee. Any such amendment shall be Page 10 of 15 Il���l�l�l��l�llj������flllilii I lilill illlll III RB5734 436 11/20 consistent with the purposes of this Conservation Easement and shall comply with Sec. 170(h) of the Internal Revenue Code, or any regulations promulgated in accordance with that section. Any such amendment shall also be consistent with the Uniform Conservation and Historic Preservation Agreements Act, N.C. Gen. Stat. § 121-34 et seq., or any regulations promulgated pursuant to that law. Grantor and Grantee have no right or power to agree to any amendment that would affect the enforceability of this Conservation Easement. 11. PROCEDURE IN THE EVENT OF TERMINATION OF CONSERVATION EASEMENT. If it determines that conditions on or surrounding the Easement Area change so much that it becomes impossible to fulfill the conservation purposes of this Conservation Easement, a court with jurisdiction may, at the joint request of both the Grantor and the Grantee, terminate or modify the Conservation Easement created by this Deed in accordance with applicable State law. If the Conservation Easement is terminated and the Easement Area is sold, then as required by Section 1.1 70A-14(g)(6) of the IRS regulations, the Grantee shall be entitled to a percentage of gross sale proceeds or condemnation award (minus any amount attributed to new improvements made after the date of the conveyance, which amount shall be reserved to Grantor),equal to the ratio of the appraised value of this Conservation Easement to the unrestricted fair market value of the Easement Area, as these values are determined on the date of this Conservation Easement, subject to any applicable law which expressly provides for a different disposition of the proceeds. All termination related expenses, including reasonable attorney fees, incurred by the Grantor and the Grantee shall be paid out of any recovered proceeds prior to distribution of the net proceeds as described herein. 12. PROCEDURE IN THE EVENT OF CONDEMNATION OR EMINENT DOMAIN. Grantor and Grantee recognize that the partial sale of this Conservation Easement gives rise to a property right, immediately vested in the Grantee,with a fair market value equal to the proportionate value that the Conservation Easement bears to the value of the Easement Area prior to the restrictions imposed by the Conservation Easement. Accordingly, if any condemnation or eminent domain action shall be taken,on all or part of the Easement Area, by any authorized authority, said authority shall be liable to the Grantee for the value of the property right vested in the Grantee at the time of the signing of this Conservation Easement. If condemnation or a taking by eminent domain of a part of the Easement Area or the entire Easement Area by a public authority renders it impossible to fulfill any of the conservation purposes of this Conservation Easement on all or part of the Easement Area, this Conservation Easement may be terminated or modified accordingly through condemnation proceedings. Grantor and Grantee agree that this Conservation Easement is a currently vested real property right with a value equal to the proportionate value of the Conservation Easement to the unencumbered value of the fee, as of the date of this Conservation Easement. If the Conservation Easement is terminated or modified and any or all of the Easement Area is sold or taken for public use, then, as required by Section 1.170A-14(g)(6) of the IRS regulations, the Grantee shall be entitled to a percentage of gross sale proceeds or condemnation award (minus any amount attributed to new improvements made after the date of the conveyance, which Page 1 I of 15 RB5734 437 12120 amount shall be reserved to Grantor), equal to the ratio of the appraised value of this Conservation Easement to the unrestricted fair market value of the Easement Area, as these values are determined on the date of this Conservation Easement, subject to any applicable law which expressly provides for a different disposition of the proceeds. If,however, after the condemnation or eminent domain proceedings, a court of jurisdiction does not include in the just compensation awarded as a result of the taking, the amount of the Conservation Easement value, then the Grantor shall not be responsible to share any proceeds awarded. All condemnation related expenses, including reasonable attorney fees, incurred by the Grantor and the Grantee shall be paid out of any recovered proceeds prior to distribution of the net proceeds as described herein. 13. INTERPRETATION. This Conservation Easement shall be interpreted under the laws of North Carolina,resolving any ambiguities and questions of the validity of specific provisions as to give maximum effect to its conservation purposes. 14. TITLE. The Grantor covenants and represents that she is the sole owner and seized of Easement Area in fee simple and have good right to grant and convey this Conservation Easement; that the Easement Area is free and clear of any mortgages not subordinated to this Conservation Easement, and that the Grantee shall have the use of and enjoy all the benefits derived from and arising out of this Conservation Easement, subject to any easements or encumbrances of record. 15. NOTICES. Any notices required by this Conservation Easement shall be in writing and shall be personally delivered or sent by first class mail,to Grantor and Grantee, respectively, at the following addresses, unless a party has been notified by the other of a change of address. To the Grantor: To the Grantee: Michael Hughes and Dale Morgan Orange County Dept. of Environment, 8112 Orange Grove Road Agriculture, Parks and Recreation Chapel Hill,NC 27516 P.O. Box 8181 Hillsborough,NC 27278 16. ENVIRONMENTAL CONDITION. The Grantor warrants that she has no actual knowledge of a release or threatened release of hazardous substances or wastes on the Easement Area. 17. SEVERABILITY. If any provision of this Conservation Easement is found to be invalid, the remaining provisions shall not be altered thereby. Page 12 of 15 RB5734 438 13120 18. PARTIES. Every provision of this Conservation Easement that applies to the Grantor or Grantee shall also apply to their respective heirs, executors, administrators, assigns, and all other successors as their interest may appear. This Conservation Easement shall not be construed to benefit or to create any rights in any third parties, including but not limited to the general public. 19. RE-RECORDING. In order to ensure the perpetual enforceability of the Conservation Easement, the Grantee is authorized to re-record this instrument or any other appropriate notice or instrument. 20. MERGER. The parties agree that the terms of this Conservation Easement shall survive any merger of the fee and easement interest in the Easement Area. 21. SUBSEQUENT LIENS ON PROPERTY. No provisions of this Conservation Easement should be construed as impairing the ability of Grantor to use the Easement Area as collateral for subsequent borrowing, provided that any mortgage or lien arising from such a borrowing is made subordinate to this Conservation Easement. 22. EXHIBITS AND DOCUMENTATION. (a) Map of Easement Area. Exhibit A is a map of the surveyed Easement Area. (b) Existing Conditions. Exhibit C is a GIS map and sketch showing the configuration of the Easement Area and surrounding property. (c) Baseline Documentation Report. The parties acknowledge that the Baseline Documentation Report, a copy of which is on file at the offices of the Grantee, accurately establishes the uses, structures, conservation values and condition of the Easement Area as of the date hereof. A summary is attached as Exhibit D. 23. ENTIRE AGREEMENT. This instrument sets forth the entire agreement of the parties with respect to the Conservation Easement and supersedes all prior discussions, negotiations, understandings or agreements relating to the Conservation Easement. If any provision is found to be invalid, the remainder of the provisions of this Conservation Easement, and the application of such provision to persons or circumstances other than those as to which it is found to be invalid, shall not be affected thereby. 24. ACCEPTANCE AND EFFECTIVE DATE. As attested by the Clerk of the Grantee and the signature of its authorized representative affixed hereto,the Grantee hereby accepts without reservation the rights and responsibilities conveyed by this Conservation Easement. This Conservation Easement is to be effective the date recorded in the Orange County Registry of Deeds. TO HAVE AND TO HOLD, this Grant of Conservation Easement unto the said Grantee its successors and assigns, forever. Page 13 of 15 RB5734 439 14120 IN WITNESS WHEREOF,the Grantor and Grantee, intending to legally bind themselves, have set their hands on the date first written above. GRANTOR: *lAeWl� ichael M. Hughes Dale A. Morgan Accepted: GRANTEE: ORANGE COUNTY, N RTH C OLINA By: B acob , Orange un Bo of ommissioners ATTEST: By: _ 6#ak-� Donna S. Baker, Clerk to the Board of Commissioners Page 14 of 15 RB5734 440 15120 Acknowledgments NORTH CAROLINA COUNTY OF ORANGE I, if `t JAI , a Notary Public in and for said County and State do hereby certify that rc and A, r personally appeared before me this day and duly acknowledged the execution of the fore one Conservation Easement. Witness my hand and official stamp or seal this the /� day of December, 2013. 4q 0is A", WAYn,I`c s', O 4 w ,y N o S ' N ary Public rO N o tar 's printed or typed name) My commission expires: NORTH CAROLINA COUNTY OF ORANGE r L.4 � , a Notary Public of the County and State aforesaid, certify that Donna . Baker personally came before me this day and acknowledged that she is Clerk to the Board of Commissioners for Orange County, North Carolina and that by authority duly given and as the act of said County,the foregoing instrument was signed in its name by the Chair of said Board of Commissioners and attested by her as Clerk to said Board of Commissioners. +i��clny ha �a'��Weicial stamp or seal this the day of December, 2013. NOTARY O` L °- PUBLIC =_� ` �} Nota Public eve / st (Notary's printed or typed name) My commission expires: Page 15 of 15 885734 AA'! �srze / -W.F Hk6 RWERM'A*% '423 4 PAUL CRUX OLtg R.25 RAGE 15 G�s - -- ---------- C pa-TP"dmw%W LIZ mesk, 90n OK_PAGE somaw,CI1RaH TABU 601 77. JAI 2f J; v Al tmf at AN:!AU� v a w .1- ..A— Mull Prf9 I -o. wElow CIlwt TABLE fm o." sr el TIiIS � W-,q - -, p MAP IS NOT A CERTIFIED SURVEY xk-� AND HAS NOT BEEN REVIEWED BY A wn. 6 LOCAL GOVE RNEMENT AGENCY FOR COMPLIANCE WITH ANY APPLICABLE LAND DEVELOPMENT REGULATIONS. MIME F"n�li EXH181T A CONSERVATION EASEMENT ON LOT 5 OF 7HE FEW CREEK SUBMSM TrIF PRCP5FITY CW Nat F,01'Agr5 OR RECORDATION WCHAEL M. HUGHES BINGHAM TOWNSHIP -- ORANOE COUNTY"OQTfl CAK?0NA kIr a,oA4D qpcme %mm I8.20,3 MTD x EXHIBIT B RB5734 442 17120 BEING all of that certain tract labeled"Conservation Easement Area" containing 11.18 acres, more or less, as shown on the map attached hereto as Exhibit A prepared by Charles S. Wagner, PE,PLS to which map reference is hereby made for a more particular description of the same. The same being an 11.18 acre portion of Lot 5 as shown on the plat entitled"Final Plat Fern Creek Subdivision"prepared by Mary E. Ayers,PLS, and recorded in Plat Book 84, Page 133 of the Orange County Registry. Orange County PIN: Part of 9840-51-3908 l Hughes-Morgan THIS MAP IS NOT A CERTIFIED SURVEY Conservation Easement ! AND HAS NOT BEEN REVIEWED BY A LOCAL GOVERNEMENT AGENCY FOR Exhibit C COMPLIANCE WITH ANY APPLICABLE Site Map ! LAND DEVELOPMENT REGULATIONS. i 1 j Hughes-Morgan property boundary 1 Easement area(11.18 acres) Existing roadway Parcel boundary 1 � i �•� - Buildings ��, i •••^—• Streams • FFRN CRje�K N -.�. 4t : . .: ..N*... ::'�•':::...�:: w g �• :: ::...s Mtitiwwi ' S 0 1 inch = 369 feet A per— G � i / !• Dept.or Environment,Agn.&m. ,p•••- Parks 8 eis WRecreation 12!1712013 �. GC 220K; :Igishomelgisprajatll '� land_resources%NatResCE Hugh".mxd Il���l�l���l��lj������f Illlf Illlllf Illlllllllll RB5734 444 19120 Exhibit D Summary of Baseline Documentation Report Hughes-Morgan Conservation Easement Orange County DEAPR(December 2013) This is a summary of the Baseline Documentation Report for a Conservation Easement to be granted to Orange County,North Carolina(Grantee)by Michael Hughes and Dale Morgan(Grantors),having an address of 8112 Orange Grove Road,Chapel Hill,NC 27516. Background Michael Hughes and Dale Morgan are owners of a 29.26-acre parcel of land(PIN 9840513908),a portion of which(11.18 acres)will be subject to the conservation easement. The property is located east of Orange Grove Road(SR 1006),approximately one-half mile south of the intersection with Teer Road(SR 1101)in southwestern Orange County(Bingham Township). Hughes and Morgan purchased this land as part of a 57-acre tract in 1999(Deed Book 2008/28)and subsequently sold off four lots as part of the Fern Creek subdivision. They reside in a temporary dwelling located on Lot 5 of the subdivision(outside of the Easement Area),and they plan to construct a long-term residence in the near future—also outside the Easement Area. Along with the family's residence and outbuildings,Lot 5 includes a forested area and a segment of Collins Creek. The subject 11.18-acre portion of Lot 5(hereinafter, "the Easement Area")is entirely forested and includes approximately 1,200 linear feet of Collins Creek,a perennial stream that originates in Orange County and flows into Chatham County and to the Haw River. Collins Creek is one of only four water bodies within Orange County's jurisdiction with water quality designated as"impaired"by the State of North Carolina. The County's 2030 Comprehensive Plan includes a specific objective to reduce the number of State-listed impaired streams by minimizing impacts of non-point and point source pollution. The conservation easement will help protect Collins Creek from pollution- Conservation Values The Easement Area has important conservation values that will be protected by the Conservation Easement. Those values are described below. 1) Natural area and wildlife habitat: It is a primary purpose of the conservation easement to conserve the undeveloped nature of the property and,in doing so,to support the natural area and wildlife habitat associated with this area. The Easement Area contains complex natural communities including: bottomland hardwood forest dominated by hardwood wetland trees; Collins Creek and three feeder streams;upland forest dominated by beech,oaks,hickories,and large pines;a diverse forested habitat for several species of birds;and natural depressions in low- lying areas that provide breeding sites for salamanders,a community ranked"globally rare"and "very rare in the state"by the North Carolina Natural Heritage Program. 2) Surface water quality: It is a primary purpose of the easement to protect the undeveloped nature of the Easement Area and,in doing so,helping to protect the water quality associated with Collins Creek. The Easement Area contains an intact segment of Collins Creek,which the State of North Carolina identifies on its list of"303(d)impaired streams."It is a specific objective of Orange Page 1 of 2 RB5734 445 20120 County in its 2030 Comprehensive Plan,to reduce the number of 303(d)impaired streams by minimizing impacts of non-point and point source pollution. The land's natural and wildlife habitat and its contribution to the protection of Collins Creek water quality,as well as to the open space and rural character of Bingham Township are collectively referred to as the"conservation values"of the Easement Area. Easement Summary The purposes of this conservation easement are to a)ensure that the Easement Area will be retained forever,in its predominantly natural,forested,and open space condition;b)to protect native plants and animals,or plant communities on the Easement Area,while allowing certain limited uses on the Easement Area that are compatible with and not destructive of the conservation values of the property;and c)to prevent any use that will significantly impair or interfere with conservation values of the Easement Area. No permanent structures exist on the Easement Area and no subdivision of the Easement Area is allowed.The owners reserve the right to construct or reconstruct only structures and improvements that are specified in conservation easement agreement,including fences to identify property boundaries,natural surface trails,and up to three small pedestrian bridges to cross over streams. Any construction or reconstruction not permitted by the conservation easement is prohibited. Commercial timbering of trees within the Easement Area is prohibited. Trees may be cut and removed to control insects and disease,to prevent personal injury and property damage,to remove non-native species,and to salvage wind-thrown timber for firewood and other non-commercial purposes,including for construction of permitted fences and bridges within the Easement Area. Forest management activities must be in accordance with an approved Forest Management Plan or Forest Stewardship Plan All other development rights that are not specified and authorized in the deed of conservation easement will be extinguished by the conservation easement. List of Attachments(included gnly in the full Baseline Documentation Report) A. Vicinity Map G. Natural Heritage Area site B. Aerial Map(2012 photo) descriptions and maps C. Site Map(Exhibit C) H. Survey Plat D. Soils Map I. Easement Area Description E. Haw River Watershed Map J. Photos of the Easement Area F. Topo and Hydrologic Map Page 2 of 2