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HomeMy WebLinkAboutAgenda - 02-09-2006-10aORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 9, 2006 Action Agenda Item No. /Q-Q SUBJECT: Potential Agricultural Activities on Lands Legacy Properties DEPARTMENT: ERCD PUBLIC HEARING: (YIN) No ATTACHMENT(S): Staff Report, with Maps INFORMATION CONTACT: David Stancil, 245-2598 PURPOSE: To receive a report from staff on the potential (current and future) for agricultural activities on certain Lands Legacy properties. BACKGROUND: Over the past several years, Orange County has acquired a number of properties through the Lands Legacy Program for future parks or open space that are (or have previously been) in agricultural production, primarily in the production of grass/hay. In some cases, these properties have been acquired and "land-banked" for a future park or open space purpose that is not yet programmed for construction. Some of the lands have continued to have grass/hay in production, under the continuation of existing arrangements. Staff has created a report evaluating these properties that looks at the possibility of raising revenue from these activities toward maintenance and stewardship of the land (or other purposes). This may also provide an opportunity for local farmers to gain income from agricultural production on these lands, on a temporary basis, until future parks are built. Many of the properties in Lands Legacy are in agricultural conservation easements, where the farmer retains ownership and the ability to conduct farm operations, and are thus not available for lease. The report identifies four properties as having the potential for agricultural activity. Two of the properties (the future New Hope Park at Blackwood Farm and the future Millhouse Road Park) currently are in grass/hay production, and could remain so in the next several years until facilities are designed, funded and built.. The attached report outlines these properties, the current and potential uses, the potential and process for future contractual (leased) fields arrangements, and a general projection of revenue that might be generated using current lease rates. A number of other ideas, such as alternative agriculture and the use of biosolids application, need additional research,. Information on biosolids and the potential application on these properties is being gathered from OWASA and will be provided at the meeting. FINANCIAL IMPACT: The report estimates that the County could potentially generate $990 - $1,550 per year in leasing of lands, if contracts can be agreed to at current projected rates. There are staff costs associated with administering the contracts, and there may be periodic costs of field preparation that the County may be asked to share in. RECOMMENDATION(S): The Manager recommends that the Board receive the report and provide direction to staff on whether to implement lease arrangements for 2007. Due to the fact that field preparation and planting is currently underway for 2006 growing season, it is recommended that the County implement any changes to existing practices at the end of the fall growing season. 3 Over the past several years, Orange County has acquired properties for fixture park or open space use that are or have previously been in agricultural use, primarily in the production of grass/hay. In some cases, these properties have been acquired and "land-banked for a future park or open space use that is not yet programmed for construction. In order to pursue the possibility of raising rrevenues from these activities toward maintenance and stewardship of the land, and in the interest of providing air opportunity for local farnxers to gain income from agricultural production orx these lands, the following report is proposed to address the temporary use of County-owned lands for agriculture. A. Lands Legacy Properties That May Be Suitable for Temporary Agricultural Production Since its inception in April 2000, Orange County's Lands Legacy Program has acquired (by both fee-simple purchase and conservation easement) 1600 acres of the County's important natural and cultural resource lands, as well as future park sites. Over half of this acreage is in conservation easements, which remain in private ownership with the County having generally acquired the non-agricultural rights in the propertyt. The remaining 770 acres are owned by the County in fee-simple (or outright). Many of these lands are future park sites or lands that will be part of planned County nature preserves. Some of the future park sites include lands that were formerly in agricultural use, although all had ceased to be working farms in the traditional sense at the time of acquisition. It is these lands that are the focus of this assessment - lands acquired for future park use that were formerly (and in some cases may still be) in agricultural use. There are currently four County-owned Lands Legacy properties that meet this criteria. The report assumes that other lands that are forested or are not / have not been in In these cases, the property owner retains the right to conduct agricultural operations or perform other activities as long as they are in keeping with the legally-binding easement (such as farm structures and occasionally a few house lots for family members) Easement provisions run with the land and are perpetual. The County's holding of these easements to date does not provide for input on the type of farm or the agricultural activities that occur on the land, as per the easement language. February 9, 2006 40 agricultural use will not be cleared and farmed, and these are not included in the report. The properties assessed in this document include: ? Future New Hope Park at Historic Blackwood Farm (New Hope Church Road and NC 86) ? Future Millhouse Road Park (Millhouse Road, just north of Chapel Hill) ? Northern Park / Northern Human Services Center - East Tract (NC 86 North across from Northern HS Center) ? Future Twin Creeks/Moniese Nomp Park (Old 86 near Eubanks Road) The following sections will briefly examine the current status of these properties, the potential areas for agricultural use and the compatibility with other activities and long- term property uses. It should be noted that in each case, the agricultural opportunities are of a temporary nature, as future park uses will eventually require other non-agricultural uses of some or all of the lands. Subsequent sections focus on the possible process for leasing of lands for agricultural use, farm management practices, and the likely responsibilities of the County and the producer. 1, Future New Hope Park at Historic Blackwood Farm This 152-acre parcel was acquired in late 2001 as a future park site to be land-banked until such time as funds were available to construct the park. The action to purchase the property noted that the site was intended to be used as a low-impact recreation park, retaining and integrating scenic, historic, natural and agricultural components already present on the site. As noted, there are no funds for construction of the park at this time, although the creation of the master plan for the site is slated to begin in the spring of 2006. The Historic Blackwood Farm was the site for the Orange County Agricultural Heritage Festival in September' 2003, the concluding event in the "Orange County 250" anniversary celebration. The property is generally retained in its original state and is not yet accessible to the public. It includes the following attributes: ? The Blackwood farmhouse, some portions of which date to 1827, which was used as a residence by the previous owners (Nannie and Mary Blackwood) and now houses two staff members of the County's Environment and Resource Conservation Department, ? Several outbuildings, including a large barn, which have been (or are being) weatherproofed and stabilized. ? A tluee-acre pond, with an earthen dam that was rebuilt in 2003. ? A long scenic vista from New Hope Church Road, widely considered one of the most majestic in the County. ? A forested area containing an identified Natural Heritage site and an adjoining cemetery 2 ? A number of fields (including the "vista" field along New Hope Church Road) that continue to be planted in grass and harvested for hay. The Historic Blackwood Farm has a number of different agricultural fields, totaling about 45 acres. Moving clockwise from the largest field: ? The Vista Field (New Hope Church Road to the farmstead, 24 acres) ? The Pondview Field (west of the farmstead to the pond and forest, 6 acres) ? The I-40 Field (physically separated from the remainder of the site by the forest, 5 acres along I-40) ? The Northwest Field (across and north of the pond, 5 acres) ? The Orchard Field (located behind fruit trees in the northeast corner of the site, 2 acres), and ? The East Field (near the house along the driveway, 3 acres) There are other areas near the farmstead that are loosely harvested in conjunction with the above fields, To date, in exchange for upkeep, general field maintenance and planting and management advice and assistance, the County has continued an existing arrangement with a local fanner, who plants and harvests hay. 2. Future Millhouse Road Park (Millhouse Road, north of Chapel Hill) This site was acquired by Orange County in December 2004, working in conjunction with Duke University, the Town of Chapel Hill and an adjoining neighbor on the joint acquisition of lands on Millhouse Roadjust north of Chapel Hill and across from the new Town of Chapel Hill Operations Center. The lands owned by Julia Blackwood and other family members were purchased by the three parties, with Duke acquiring the lands 60 bordering the Blackwood Division of Duke Forest to the rear and the County acquiring 69 acres along Millhouse Road including former farm fields, farmstead, and lands adjoining the Orange County MSW Landfill. Snom. aou ? _ The Future Millhouse Road Park (Julia Blackwood property), viewed from the southwest The land was acquired as a future park site that would primarily feature hill-size playing fields for soccer and other sports. The potential for low-impact recreation (trails) in the wooded western portions of the site were noted, along with the potential use of the brick Blackwood residence and outbuildings. There are no funds for construction of recreational facilities or creation of a master plan at this time, so the site is land-banked for future park use. Orange County ERCD staff, with assistance from Recreation and Parks, manages the property - conducting maintenance work and monitoring the property and its boundaries on a regular basis. Mrs. Julia Blackwood continues to live in the residence under an arrangement with the County through late 2006. To address space needs at other buildings, including the Planning and Agricultural Center, ERCD is slated to move its offices to the Blackwood farmhouse on an interim basis, until a long-term office location is completed.. The Millhouse Road Park site has a faun field area of approximately 10 acres that is open and available for cultivation. An additional seven acres has partially grown up in vegetation over the last several years and could be cleared and placed again into cultivation, for a total of 17 acres. The site is currently in hay production, continuing an arrangement Mrs. Blackwood had with a local farmer. As at the New Hope Park at Blackwood Farm property, this fanner is allowed to harvest the hay that is grown in exchange for upkeep and for keeping the 4 /J fields mowed The County has retained this arrangement to date, to keep the fields managed and in cultivation, 3. Northern Park / Northern Human Services Center - East Tract (NC 86 North across from Northern HS Center) In 2004, the County acquired 12 acres on the east side of NC 86 across from the Northern Human Services Center. This land was acquired to provide a large septic field for the new wastewater system at the Northern Human Services Center (land adjacent to the Center on the west side of the road was unsuitable or was planned for other uses). The site has not been improved and is not publicly accessible at this time. The existing house on the site was in considerable disrepair at the time of County purchase, and is being deconstructed. Approximately 7 acres in the rear of the 12-acre site will be used for the wastewater field.. The land is largely cleared and was in cultivation at some point in the last decade or so. Because of the layout of the wastewater field, it may be impractical to conduct agricultural activities on the five remaining acres at this site. However, until construction occurs, opportunities may exist and staff is exploring further the possibility of agricultural use on the site as it relates to the timing of the wastewater field. 4. Future Twin Creeks Park (Old 86 near Eubanks Road) Orange County acquired the 193-acre site now known as Twin Creeks (Moniese Nomp) in 2001 as the site for a future district park and educational campus. The Board approved 5 a master plan for this site in 2005. Of the total site, 149 acres were part of the former loin Henry Cate faun, out of operation since the late 1970's. Although the property has grown up over the years to the point where most of the site is vegetated, there were historically several areas of the site that were used for agriculture. The primary sites were: ? The Old 86 Meadow (5 acres +/-) ? The Northern Meadow (4 acres +/-), and ? The Farm Fields (25-30 acres) None of these areas is currently in cultivation. The Old 86 Meadow is located at the entry point to the future park, and is planned to be retained as a meadow both as the visual entranceway and a potentially a Piedmont prairie meadow restoration. This meadow is mowed once per year for maintenance. The Northern Meadow is located north of the farmstead and contains rocky outcroppings. Because of the rocks here, agricultural activity would be limited. The portion of the property that would be most productive for agriculture, and was most recently used for agriculture, is the area of former farm fields in the south central portion of the site (where the playing fields are planned). This area has now grown up in 10-20 year old early succession forest cover (pine and sweetgum). Phase 1 of the park will construct two playing fields in the southernmost portion of this area. This phase is currently projected for construction during 2008, pending necessary approvals. Future phases containing the remaining fields have not yet been programmed. 6 mte Cate rarm (now Twin Creeks), in the late-1940's 0 If funds permit, pre-grading of the future (Phase 2) playing fields has been suggested, to prepare them for quicker implementation in the next phase. If pre-grading does not occur, it is possible that the remainder of the former fann fields / future playing field area could be cleared to enable agricultural activity, until such time as the additional fields are constructed. This would require harvesting of the pine and sweetgum for pulpwood, and preparation and replanting of the area for production. B. Potential for Contractual A14ricultural Production and Revenue Generation The following table summarizes the four sites described above, with their activities and a preliminary feasibility assessment. As the table above and previous sections indicate, two of the four sites are currently in agricultural production with no inuninent plans for park construction, making continued agricultural practices possible. The Northern Park East Tract may have some acreage that are suitable for agricultural use, but a preliminary assessment is that it may be impractical to weave farm operations around the layout of the wastewater system for 5 acres of fields. There may, however, be very short-tern possibilities depending on the timing of the wastewater, system. Twin Creeks Park has former farm fields of approximately 25 acres, but these fields now contain 10 to 20-year old early succession tree cover. The young trees could be harvested for pulpwood and the fields prepared, reseeded and planted, but with construction of the first phase of Twin Creeks Park slated for 2008, any activities may be of a short-temp nature. Given the time needed to harvest and replant and the short window of activity, reintroducing agr'icultur'e on a large scale at this site may not be cost- effective. However, if the future phase fields are not pre-graded, this area may be available for agriculture as noted above. Some small-scale gardens may be another option for further consideration. In summary, two of the County-owned sites are currently in agricultural use, and may have the potential for continued activity (perhaps through a lease arrangement). The other two sites could have some potential for agricultural use, but would need further research 0/0 or clearing,. In addition, alternative agricultural activities might be feasible on some portions of the land-banked future park sites. Leasing of Land for Grass (Hay) Production One of the most common and simple agricultural lease arrangements for fields not otherwise in cultivation is grass (or hay) production. Hay is currently grown at the Blackwood Farm and Millhouse Road sites through arrangements with local farmers that pre-date the County's ownership. These arrangements have been continued for upkeep, mowing and to keep the land in production, but do not provide the County with additional income. To achieve revenues to help fund management and upkeep of the sites, the County might lease these fields to a farmer in exchange for the ability to raise, harvest and sell hay. Based on comparable leases and information from agricultural agencies, it is estimated that a projected lease rate to a farmer for hay production should range from $18-25 per acre per year 2. In this case, the lessee (farmer) would be responsible for the field preparation, seeding and harvesting of the hay. If there are additional stipulations on how the harvesting is to occur, or special events to be worked around, this may lessen the lease rate. Conversely, if the County as lessor assumes some responsibilities for field preparation and costs associated with same (liming and fertilizing the fields, for example), a higher rate of lease per acre may be possible. (Note: some farmers may be unwilling to relinquish this responsibility or portion of the process). In our climate, given a good growing season, a farmer may be able to generate two spring/summer harvests and one fall harvest, for a total of three per year. A general rule of thumb, given good conditions, is that an acre of land will yield four tons of hay per year (subject to change), As an informational note, most farmers in hay production in this area have gone to "square-baling" of hay. A square bale of hay brings $2.50 to $5.00 per bale3 in revenue for the average farmer, depending on quality and fluctuating market prices. However, it is important to note that there are costs involved in leasing land for any agricultural activity, including uncertainty of having a farmer interested in the lease, administration costs of the contract, and other factors. Forestry Another way to obtain revenue from future park lands would involve placing them in forestry. It is unlikely that a lessee would choose to participate in forestry activity, so this would be a choice made by the County as property owner, This might involve a forest management plan (one exists for the New Hope Park at Blackwood Farm property), ' Based on current prices, subject to change The price of hay fluctuates due to market, demand, weather and other factors, This is a concur estimate 8 /l planting and eventual harvest, However', forestry requires a longer-term commitment, with optimal harvesting of'pines in 15-25 years and hardwoods in 40-50 years, Any lands that are planned or envisioned for potential park use would be unlikely candidates for forestry, although the wooded areas of these sites that are not planned for conversion to recreational facilities may be an option. Managed forest areas offer an opportunity to be examples of demonstration plots of sustainable forestry practices, for example, yielding both forestry products and environmental education possibilities. This concept has been discussed by staff as a possible activity at both the New Hope Park and Millhouse Road Park sites for areas already wooded, and it is anticipated that the fixture master plans for these sites may also address this concept, Leasing for Row Crops, Dairy and Animal Operations (Organic and Traditional) The potential may also exist for planting these lands in row crops, such as corn or other commodities, Some lands in the County are leased for this purpose and produce crops that are suitable for both animal and human consumption, This requires a larger commitment of the land and involves other practices, making this a more complicated endeavor. However, it is conceivable that such an arrangement might be of interest to a local farmer, More complicated still would be dairy and animal operations. Introducing a dairy or animal operation is possible, though it is unlikely that a lessee would be interested in starting such a facility on these sites, or that the County would be willing to commit the resources to such an arrangement, Permit requirements, intensive activities, potential off- site impacts and other best management practices would need to be addressed in such a case. Organic crop/animal operations are a fast-growing segment of the agricultural industry, and the potential for organic operations of this type may be more feasible than traditional agriculture in today's climate. Alternative Agricultural Options A wide variety of other options would also exist for these sites, too many to adequately address here. This could include concepts such as: ? Community gardens ? Demonstration plots for new, non-traditional crops ? Horticulture and plant nurseries ? Becoming part of an agricultural community of fauns working in conjunction with each other (modeled on the hitervale community near Burlington, Vermont) 9 hr addition to these options, fertilization of the fields for certain crops could involve an / b1 assessment of the use of biosolids application (from OWASA, for example). Note. Infoi°mation on the potential use of Class A biosolids from OWASA is being gathered and will be presented at a later time. Implementation of Contractual Arrangements on Lands Legacy Properties If the County decides to pursue a contractual arrangement for agricultural operations on lands, a process might include: o Soliciting area farmers (via a mailing to a master list of farmers maintained by one or more agricultural agencies) to submit a proposal for lease of the lands o Reviewing the proposals and selecting one that appears to best meet the needs and interests of the County o Entering into a lease (which would be approved by the Board) with a farmer. The lease would delineate the areas to be farmed, the rental rate, and any events or times of other activity (festivals, etc.) that would need to be worked around. Protected Revenue of Contracted Agricultural Operations Based on this preliminary assessment, lands at two properties could be leased for agricultural purposes - the New Hope Park at Blackwood Farm (45 acres in fields) and the Millhouse Road Park (10-17 acres). Until further research determines otherwise, it is assumed that the remaining land at the Northern Park East Tract is not practical to be placed in agriculture due to the wastewater system design and installation. It is also assumed that the pulpwood harvesting at Twin Creeks is problematic because of the projected construction activity within the next three years on the former farm fields (future playing fields). Based on the current going lease rates in the area for hay production, the following revenue projections may represent what the County could receive in lease payments for a year. 11 1 ' r New Hope Park at Blackwood Farm 45 acres $810 to $1,125 Mill house Road Park 10-17 acres $180 to $425 TOTAL 55-62 acres $990 - $1,550 In this scenario the County would lease the fields, as they are, with the farmer responsible for seeding, fertilizing and harvesting the fields. 10 103 Staff has not attempted to explore lease rates for other types of agricultural activities (such as those mentioned in the previous section), These options may result in very different lease rental rates. The County's cost would include staff time for administering the contract, and may include periodic costs of non-amoral field preparation (such as lime or special plantings for wildlife). Conclusion Currently local farmers, in a continuation of a pre-existing arrangement, conduct agricultural use at the New Hope Park and Millhouse Road Park sites and harvest hay in exchange for upkeep and maintenance of the fields. Since this is a service and not a bid process, there may be two approaches (or more) that could be used. 1. Negotiate with the farnmer currently providing the service to see what lease rate could be agreed to. If this is not productive the County could then offer a lease option as outlined below. 2. Undertake the lease solicitation process identified above, sending a mailing to a master list of farmers noting the opportunity, reviewing and selecting the offer that best meets the County's needs and presenting the lease for approval, or 3. Continuing the present arrangement There may also be other options that the Board may wish to identify. Due to the fact that it is now February, and field preparation should be underway at this time, any changes to the current arrangement may need to be introduced at the end of the fall 2006 growing season. In considering the options above, the Board may wish to consider the following factors: ? It is possible that no farmers will show interest in leasing the land for production, or that no lease arrangement will be satisfactory to both parties. In this case, without the current arrangements in place, the County will need to implement a new management plan of its own for the property. ? If there are special provisions, farm techniques or special events to be worked around, this may impact the ability to lease the land as well as the rental rate. ? Agricultural land lease rates are subject to market fluctuations and may change. The rental rates shown above are a range based on the best available information. ? Special attention will be needed in any lease arrangement that ensures that the County's Environmental Responsibility Goal is adhered to and that eco-friendly farm practices are adhered to. ? The agricultural use should reflect compatibility and consistency with the future park uses of the property. ? The potential for biosolid applications on these and other County lands should be explored further, as an adjunct to this report. 11 New Hope Park at Blackwood Farm Fields q - ? ?5 ? r ? ?,? ? r9 S.;,i }i ?'4.C? T "z 14 yak. `<,t q / A1}y?o t;fti'} t # '''? -? YxTt ?"ki v lb?;?.?r'kT'tW } n } .? 7 a ro i- r Y?%t {" vas \ F \+ ;}1t ? y .F?.,, or v 3'k 1 ? 1 t "F k Cr`1 14>pt? t t 4 ?r ,(?, * v I. 5 ! 9 w Fr x t t hy, ri ?F r 1;: Z 1-a"i^ ?'s??? ''F t}? 1` F 4.Ahe.?1K ,¢ x. p ryT.Pr„a c t ?i.7.I'`R+{, ;'fir}Pt}t 1'1 a l'ib' AS "e iS4 11 r i '? 7 1 +? + a. k: t' $"3h? ?' Ll u«s f 7i rt ??F iP .i +?, k ? 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Q+'?IyR dkx 6r 3 r ?'Sv #` '-2 y .4'r?i' ?'? .n'rn? /:^? ? ?a it } rJ f? o??r ? aF p ,swJ tl, r b t???v?r,yy` fv p,tr$ •'{ 4r c i? ????? ? t < ; 1A ?y r r C r a Y fb 7 ?7 91 f ? iF Trr` O.T f ? +?".?i'G' i 'd t y a t d ?vY f? r f ? o` 3 ?rlr'f ! r`???T. •y Iw?? ,ice ?.? r Y, _ r i q- a e Yv? > t t x3, T'? ems. y Em., MMIN m N Actively Fanned Fields 10.01 sores 50 0 50 100 Feet v ActivelX Farmed Fields and Wooded Areas -16.69 acres ® Mulhouse Road Park property Orange County Environment & Resource _2003 OfihDphOFO Conservation Department ;? . ? MN I 02/02106 O