HomeMy WebLinkAbout2016-434-E DEAPR - Kirkland Appraisals, LLC - update appraisal for Robert & Gail Pope farm property easement DocuSign Envelope ID: 146A2CDF-654F-45A7-9764-5D3E7D0A0B28
[Departmental Use Only]
TITLE Pope CEappraisal update
FY 2016-17
ORANGE COUNTY
CONTRACT UNDER$1,000.00
NORTH CAROLINA
THIS AGREEMENT, made and entered into this 10th day of August, 2016, ("Effective Date")by
and between Orange County, North Carolina, a body politic and corporate organized under the laws of the
State of North Carolina, (the "County"), party of the first part; and Kirkland Appraisals, LLC (the
"Provider"),party of the second part;
WITNESSETH:
For the purpose and subject to the terms and conditions hereinafter set forth, the County hereby
contracts for the services of the Provider, and the Provider agrees to provide the following services to the
County in accordance with the terms of this Agreement, time being of the essence:
The services and/or materials and/or construction (hereinafter referred to collectively as "Services")
to be furnished under this Agreement are as follows: To update a conservation easement appraisal that was
completed by same firm for the Pope farm property (72 acres) as called for by the NC Dept. of Agriculture
and Consumer Services as a condition of a grant from the NC Agricultural Development and Farmland
Preservation Trust Fund. The farm is located 6909 Efland-Cedar Grove Road, Cedar Grove,NC. A written
report is expected by August 31 or sooner.
The term of this agreement rendered shall be from August 15 to September 30, 2016.
Provider represents and agrees that Provider is qualified to perform and fully capable of performing and
providing the services required or necessary under this Agreement in a fully competent, professional and
timely manner to the satisfaction of the County. Provider shall be responsible for all errors or omissions, in
the performance of the Agreement. Provider shall correct any and all errors, omissions, discrepancies,
ambiguities, mistakes or conflicts at no additional cost to the County. Provider agrees that Provider shall not
sub-contract any of the services to be provided in this Agreement, nor shall Provider assign any right or
responsibility granted or required by this Agreement,without the prior written approval of the County.
SPECIFIC TERMS
1. Payment: The County agrees to pay at the rates specified for Services satisfactorily
performed in accord with this Agreement. The amount to be paid by the County shall not exceed Eight
Hundred and Seventy Five Dollars, ($875). Payment shall be made within thirty (30) days of an invoice
properly submitted to County. Should Provider fail to perform its duties under the terms of this Agreement,
County may, without fault or penalty, withhold any payment associated with the work to be performed until
such time as said work is completed.
2. Non—waiver: Failure by County at any time to require the performance by Provider of any
of the provisions hereof shall in no way waive or affect the County's right hereunder to enforce the same, nor
shall any waiver by the County of any breach be held to be a waiver of any succeeding breach or a waiver of
this Non-Waiver Clause.
3. Independent Contractor: The Provider shall operate as an independent contractor, and the
County shall not be responsible for any of the Provider's acts or omissions. The Provider shall not be treated
as an employee with respect to the Services performed hereunder for federal or state tax, unemployment or
workers' compensation purposes. The Provider understands that neither federal, nor state, nor payroll tax of
any kind shall be withheld or paid by the County on behalf of the Provider or the employees of the Provider.
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DocuSign Envelope ID: 146A2CDF-654F-45A7-9764-5D3E7D0A0B28
4. Insurance: Provider shall obtain, at its sole expense, Commercial General Liability
Insurance, Automobile Insurance, Workers' Compensation Insurance, and any additional insurance as may
be required by County's Risk Manager as such insurance requirements are described in the Orange County
Risk Transfer Policy and Orange County Minimum Insurance Coverage Requirements (each document is
incorporated herein by reference and may be viewed at
http://www.orangecountync.gov/departments/purchasing division/contracts.php). If County's Risk
Manager determines additional insurance coverage is required such additional insurance shall be designated
here Professional Liability Insurance (errors and omissions) (if no additional insurance required mark N/A as
being not applicable). Provider shall not commence work until such insurance is in effect and certification
thereof has been received by the County's Risk Manager.
5. Indemnity: The Provider agrees to defend, indemnify, and hold harmless Orange County
from all losses, liabilities, claims, demands, suits, costs, damages or expenses (including reasonable
attorney's fees) arising from bodily injury, including death, to any person or persons or damage to or
destruction of any property caused in whole or in part by any negligent or intentional act or omission on the
part of the Provider in carrying out Provider's duties and obligations related to the Services to be provided in
this Agreement.
6. Termination: This Agreement may be terminated at any time by mutual written agreement of
the parties or by the County upon written notice to the Provider. County may suspend this Agreement upon
reasonable notice to Provider.
7. Entire Agreement and Signatures: The parties have read this Agreement and agree to be
bound by all of its terms, and further agree that it constitutes the complete and exclusive statement of the
Agreement between the parties unless and until modified in writing and signed by the parties. Modifications
may be evidenced by telefacsimile signature. This Agreement together with any amendments or
modifications may be executed electronically. All electronic signatures affixed hereto evidence the intent of
the Parties to comply with Article 11A and Article 40 of North Carolina General Statute Chapter 66.
8. Governing Law and Priority: Both parties agree that this Agreement shall be governed by
the laws of the State of North Carolina and Orange County. Provider shall at all times remain in compliance
with all applicable local, state, and federal laws, rules, and regulations including but not limited to all state
and federal anti-discrimination laws, policies, rules, and regulations and the Orange County Anti-
Discrimination Policy. Any violation of this requirement is a breach of this Agreement and County may
immediately terminate this Agreement without further obligation on the part of the County. This paragraph
is not intended to limit and does not limit the definition of breach to discrimination. By executing this
Agreement Provider certifies that Provider has not been identified, and has not utilized the services of any
agent or subcontractor, on the list created by the State Treasurer pursuant to G.S. 147-86.58. By executing
this Agreement Provider affirms Provider is and shall remain in compliance with Article 2 of Chapter 64 of
the North Carolina General Statutes. In determining the basic services to be provided, should any documents
be referenced in or attached to this Agreement, the terms herein shall have priority in any conflict between
the terms of referenced documents and the terms of this Agreement.
9. Dispute Resolution: Neither party may initiate binding arbitration. Any disputes shall be
resolved by nonbinding mediation. Should either party initiate litigation to settle any dispute involving the
terms of this Agreement such litigation shall be initiated in the General Court of Justice of North Carolina
seated in Orange County,North Carolina.
10. Non Appropriation: Provider acknowledges that County is a governmental entity, and the
validity of this Agreement is based upon the availability of public funding under the authority of its statutory
mandate. In the event that public funds are unavailable and not appropriated for the performance of County's
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DocuSign Envelope ID: 146A2CDF-654F-45A7-9764-5D3E7D0A0B28
obligations under this Agreement, then this Agreement shall automatically expire without penalty to County
immediately upon written notice to Provider of the unavailability and non-appropriation of public funds.
[SIGNATURE PAGE TO FOLLOW]
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DocuSign Envelope ID: 146A2CDF-654F-45A7-9764-5D3E7D0A0B28
IN WITNESS WHEREOF, Orange County and the Provider have signed this Agreement, effective
as of the day first written above.
ORANGE COUNTY PROVIDER
DocuSigned by: p DocuSigned by:
By: Pte- gaut.Ul, By: �.14,v4:1 AAA
Departnie1t61Ervotm495... Title: °°-°°BDD7F3128EDB461...
200 S. Cameron St. Kirkland Appraisals, LLC
P.O. Box 8181 9408 Northfield Court
Hillsborough,NC 27278 Raleigh,NC 27603
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DocuSign Envelope ID: 146A2CDF-654F-45A7-9764-5D3E7D0A0B28
RES-2016-049
ORANGE COUNTY :OARD OF COMMISSIONERS
RESOLUTION
Approval of Agricultural Conservation Easement between
Orange County and the Eno River Association
and
Robert and Gail Pope
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
W EREAS, one component of the Lands Legacy Program is the acquisition of conservation
easements on prime farmland within water supply watersheds; and
WHEREAS, the Captain John S. Pope farm includes approximately 73 acres in the Back
Creek protected watershed, consists of a majority of prime agricultural soils, and is located in
an agricultural community with good access to farm markets; and
WHEREAS, Orange County and the Eno River Association have agreed to collaborate on the
joint acquisition of a conservation easement that will protect the prime farmland and riparian
corridors that exist on the Captain John S. Pope farm with a conservation easement; and
WHEREAS, matching funds have been awarded for this project from the North Carolina
Agricultural Development and Farmland Preservation Trust Fund to help purchase the
agricultural conservation easement; and
WHEREAS, a conservation easement on this approximately 73 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 and watershed protection
conservation easement to land owned by Robert and Gail Pope; 2) approve the execution of
this conservation easement agreement with Robert and Gail Pope, 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 July 31, 2016; and 4) authorize County staff to
sign any and all closing documents upon consultation with the County Attorney.
This the 21st day of June, 2016.
EA,,,,
/2 / Earl McKee, Chair
i
17 q /// ,; 1 '
IL ,, IL.. Orange County Board of Commissioners
I
Donna Baker, Clerk' to the Board
DocuSign Envelope ID: 146A2CDF-654F-45A7-9764-5D3E7D0A0B28
1
ORANGE COUNTY
BOARD OF COUNTY COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 21, 2016
Action Agenda
Item No.
SUBJECT: Resolution of Approval — Conservation Easement for the Captain John S. Pope
Farm; and Approval of Budget Amendment #10-B
DEPARTMENT: Environment, Agriculture, Parks PUBLIC HEARING: (Y/N) No
and Recreation (DEAPR)
ATTACHMENTS INFORMATION CONTACT:
1. Resolution of Approval David Stancil, 245-2510
2. Location Map Rich Shaw, 245-2514
3. Site Map
4. 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 Captain John S. Pope farm; and
approve Budget Amendment #10-B.
BACKGROUND: The acquisition of conservation easements to protect highly important
natural and cultural resource lands in Orange County is a longstanding goal of the Board of
Commissioners, and is a priority of the Lands Legacy program. Since 2001, the County has
partnered with landowners and other entities to protect 2,080 acres of prime farmland and
natural areas with conservation easements.
Over the past four years DEAPR has worked with Robert and Gail Pope and the Eno River
Association on a project to conserve highly significant land and water resources at the
Captain John S. Pope farm, located at 6909 Efland-Cedar Grove Road (Cedar Grove
Township). The Popes raise organic tobacco on this farm, which has remained in continuous
operation by the Pope family since at least 1870.
The 73-acre farm is located in the Upper Eno Protected Watershed, a priority watershed for
acquiring agricultural easements in a dual effort to protect prime farmland and drinking water
quality. The farm drains to the West Fork Eno River, which supplies drinking water for the
Town of Hillsborough and customers of the Orange-Alamance Water System.
Robert and Gail Pope intend to grant a permanent conservation easement that will restrict
future development to protect prime farmland and headwater streams, as well as scenic
views of the historic farmstead from Efland-Cedar Grove Road. All non-agricultural
development rights will be extinguished through the conservation easement. The easement
will prohibit future subdivision and allow for no home sites aside from the existing residence
(ca. 1874). A 2.28-acre portion of the property will be excluded from the easement to allow
construction of a future home on the site of Mr. Pope's parents' former residence in the far
southwest corner of the property along Efland-Cedar Grove Road. Future farm activities will
DocuSign Envelope ID: 146A2CDF-654F-45A7-9764-5D3E7D0A0B28
2
be in accordance with a Conservation Plan prepared for this farm by the Orange Soil &
Water Conservation District.
A conservation easement would enhance the protection of this historic farm, which is listed
on the National Register of Historic Places. According to the National Register, the Pope
Farm is one of the best-preserved rural complexes in northern Orange County, exemplifying
a mid-sized tobacco farm of the type that prospered from the late 19th century until the
1960s. The complex includes a two-story farmhouse (built 1870-74) and 20 historic
outbuildings. The farm was designated a Local Historic Landmark by Orange County in
2012, and is also recognized as a Century Farm by the NC Department of Agriculture and
Consumer Services. Finally, the farm is also enrolled in the County's Enhanced Voluntary
Agricultural District (EVAD) program.
The planned agricultural conservation easement would be held jointly by Orange County and
the Eno River Association. The easement would complement the technical assistance from
the Orange Soil and Water Conservation District and will also protect stream buffers with
separate funding from the Upper Neuse Clean Water Initiative (City of Raleigh).
The planned agricultural conservation easement area is depicted on the attached site map.
A draft deed of conservation easement is also provided.
FINANCIAL IMPACT: The value of the conservation easement is $185,000, which was
determined by an appraisal by Kirkland and Associates. DEAPR has worked with the Eno
River Association to identify the following funding sources:
Orange County (Lands Legacy) $ 87,000 (47%)
NC Agricultural Dev. & Farmland Preservation Trust Fund 52,000 (28%)
Landowner donation 46.000 (25%)
$ 185,000
The purchase price for the conservation easement is $139,000, which is 75 percent of the
appraised value ($185,000) as determined by an appraisal by Kirkland and Associates. The
landowners will donate 25 percent of the easement value ($46,000), meaning they will forgo
that amount and, instead, will be eligible for federal income tax benefits.
Funds for the easement purchase would come from Orange County ($87,000 purchase price
plus $10,000 for boundary survey and closing costs), the NC Agricultural Development and
Farmland Preservation Trust Fund ($52,000), and the Eno River Association (in-kind match).
The County's share of funds ($97,000) would come from existing funds budgeted and
approved for the Lands Legacy program (Land Legacy Fund).
The subject property is enrolled in the Present Use Value taxation program, so the
conservation easement would not lessen the amount of property taxes paid to the County.
The decrease in the property's market value caused by the conservation easement (and
extinguishing of portion of its development rights) would not lower the property value to a
level that is less than the current present use value ($61,047).
DocuSign Envelope ID: 146A2CDF-654F-45A7-9764-5D3E7D0A0B28
3
With this allocation, approximately $3.1 million remains available in the Lands Legacy Capital
Project. This Budget Amendment # 10-B provides for the use of the above mentioned funds,
and amends the following Capital Project Ordinances:
Lands Legacy Capital Project (-$97,000) -Project# 20011
Revenues for this project:
Current FY 2015-16 FY 2015-16
FY 2015-16 Amendment Revised
Alternative Financing $3,251,472 $0 $3,251,472
From General Fund $301,500 ($97,000) $204,500
Donations $1,000 $0 $1,000
Appropriated Fund Balance $9,337 $0 $9,337
Total Project Funding $3,563,309 ($97,000) $3,466,309
Appropriated for this project:
Current FY FY 2015-16 FY 2015-16
2015-16 Amendment Revised
Lands Legacy Program $3,563,309 ($97,000) $3,466,309
Total Costs $3,563,309 ($97,000) $3,466,309
Conservation Easements Capital Project ($97,000) - Project#20006
Revenues for this project:
Current FY 2015-16 FY 2015-16
FY 2015-16 Amendment Revised
Alternative Financing $840,632 $0 $840,632
From General Fund $556,896 $97,000 $653,896
Donations $1,020 $0 $1,020
NC Agriculture Development $135,480 $0 $135,480
Grant
Eno River Association $252,843 $0 $252,843
Upper Neuse Clean Water $54,000 $0 $54,000
Initiative
NC Conservation Reserve $18,800 $0 $18,800
Program
Contribution from Hillsborough $6,157 $0 $6,157
USDA Farmland Protection $936,000 $0 $936,000
Total Project Funding $2,801,828 $97,000 $2,898,828
Appropriated for this project:
Current FY FY 2015-16 FY 2015-16
2015-16 Amendment Revised
Lands Legacy Program $2,801,828 $97,000 $2,898,828
Total Costs $2,801,828 $97,000 $2,898,828
SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact
associated with this item.
RECOMMENDATION: 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 July 31, 2016, and approve Budget Amendment #10-B.
DocuSign Envelope ID: 146A2CDF-654F-45A7-9764-5D3E7D0A0B28
4
ORANGE COUNTY BOARD OF COMMISSIONERS
RESOLUTION
Approval of Agricultural Conservation Easement between
Orange County and the Eno River Association
and
Robert and Gail Pope
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 Captain John S. Pope farm includes approximately 73 acres in the Back
Creek protected watershed, consists of a majority of prime agricultural soils, and is located in
an agricultural community with good access to farm markets; and
WHEREAS, Orange County and the Eno River Association have agreed to collaborate on the
joint acquisition of a conservation easement that will protect the prime farmland and riparian
corridors that exist on the Captain John S. Pope farm with a conservation easement; and
WHEREAS, matching funds have been awarded for this project from the North Carolina
Agricultural Development and Farmland Preservation Trust Fund to help purchase the
agricultural conservation easement; and
WHEREAS, a conservation easement on this approximately 73 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 and watershed protection
conservation easement to land owned by Robert and Gail Pope; 2) approve the execution of
this conservation easement agreement with Robert and Gail Pope, 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 July 31, 2016; and 4) authorize County staff to
sign any and all closing documents upon consultation with the County Attorney.
This the 21st day of June, 2016.
Earl McKee, Chair
Orange County Board of Commissioners
Donna Baker, Clerk to the Board