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Home My WebLink AboutAgenda - 12-04-2000-8i ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 4, 2000 Action Agenda Item No. g- I _SUBJECT: Farmland,_Preservation Trust Fund Grant Application DEPARTMENT: ERCD PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Farmland Preservation Trust Fund David Stancil, 245-2590 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968.501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To authorize staff to submit a grant application to the N.C. Farmland Preservation Trust Fund. BACKGROUND: The Farmland Preservation Trust Fund is one of three State trust funds for land preservation. The Farmland Trust Fund is administered by the Conservation Trust for N.C. on behalf of the N.C. Department of Agriculture, and this year has $1.7 million to disburse. The deadline for grant submittal is December 10, 2000. The Trust Fund provides funds to local governments and non-profits for the acquisition and transaction costs of purchasing conservation easements for farmland. A requirement for grant submittal is a written agreement from a willing seller stating their intent to sell an easement if terms are worked out. A farmland easement pilot project is also one of the objectives for the 2000-01 Lands Legacy Interim Action Plan. In 1999, the County discussed a possible easement with a farmer for potential inclusion in this program, but was unable to reach agreement in time for grant submittal. This year, another farmer has indicated interest in selling the County an easement on 70 acres, and the potential seller is prepared to sign the required letter of intent. The grant funds will enable the County to pursue the purchase. FINANCIAL IMPACT: In order for the County to be eligible for grant funding, it must provide a 50 percent match. The total expected cost of the easement is $315,000, with $108,000 from the County and $107,000 requested from the Farmland Preservation Trust Fund. Funding far the County match is included in the Lands Legacy capital project. To date, $371,452 in pay-as- you-go funding has been approved and remains unallocated in the Lands Legacy project. If the Board approves the grant submission and County match, $263,452 will remain unallocated in the project. RECOMMENDATION(S): The Manager recommends that the Board authorize staff to submit the grant request, in accordance with the December 10 deadline. 2 CONSERVATION TRUST i FOR NORTH CAROLINA TO: County Governments with Farmland Preservation Programs August, 2000 Soil and Water Conservation Districts Qualified, private, nonprofit conservation organizations FRpM: Charles E. Roe, Executive Director Conservation Trust for NC SUBJECT: Guidance to apply far pant award from the North Carolina Departmern of A,gxiculttilre and Consumer 5ervice's Farmland Preservation Program The Conservation Trust far North Carolina is contracted by the N.C. Department of Apiculture and Consumer Services to assist in administering the Farmland Preservation Trust Fund grrant program far fiscal year 2040.01, as for the previous two years. Tk-e N.C. General Assembly in its 2000 session appropriated $1,540,000 to the Farmmland Preservation Trust Fund for the acquisition of permanent agricultural conservation easements for purpose of protecting rural lands, principally used for agricultural purposes, and particularly in the vicinities of urban growth areas and near high-priority waterways and other environmentally sensitive areas. In the two previous years, from total appropriations of 5750,000 in 1998 and 1999, twelve grants wore awarded to qualifiied counties and nonprofit, land conservation organizations to protect parts of twelve faints through acquisition of agricultural conservation easements--both by purchase of non agriailtural development rights (generally by "bargain sales" at considerably less than the appraised values) or by covering transactional expenses for donated conservation easements. Although the N.C. General Assembly has tripled the amount available for farmland preservation grants this year, it is anticipated that many grant requests will be received and few grants will be awarded for large portions of the actual non-agricultural development value of farms, particularly in urban growth fringe areas. The largest single grant award made in 1999 was for $125,000, but the fans owner voluntarily donated the bulk of the non agricultural development value of the farm, which was appraised in excess of 52 million. In 1998 and 1999 the highest match ratio for grar-t awards was 1:1 (SO percent) in which the county provided the balance of the easennent purchase price with local funds. The General Assembly in its 2000 session amended the enabling statute for the North Carolina Farmland Preservation Trust Fund (G.S. 106-744(c)) to establish minimum matching requirements fe7r applicant counties and private, nonprofit conservation organizations. The n~mum amount of gents from the Farmland Preservation Trust Fund far purchase of agricultural conservation easements, including transactional costs, is nvw seventy percent (70%) for nonprofit conservation vrgani~~tions and for counties UNLES5 a courriy has formally adopted a countywide farmland protection plan (defined by the statutory amendment, SEE ATTACHMENT). Note that for those counties that have adopted farmland protection plans, those that aze designated "enterprise tier one, two, ar three" (based on economic criteria) are exempt from any local match requirement; and those counties with a 3 comprehensive farmland protection plan that are designated "enterprise tier four or five" counties must provide a fifteen percent (15%) match to a state farmland preservation grant award. (See the attached list of current County Enterprise Tiers as dewed by the NC Department of Commerce.) According to the legislative. history of the amendment, the iuo~terrt of the General Assembly is for donated value of a conservation easement to count toward the applicant's match requirement. Thus, if the conservation easement is conveyed for less than the full appraised vaLre of the restricted development potential., the donated value will wont for the match requirement. UNLESS GRANT' APPLICANTS CAN DEMONSTRATE THAT THF~Ili COUNIY HAS ADOPTED A COUNTYWIDE FARN1LArID PROTECTION PLAN, NO STATE FARMLAND PRESERVATION GRANT WILL BE AWARDED IN THIS CYCLE FOR MORE THAN 70% OF THE TOTAL VALUE OF THE CONSERVATION EASENIEN'r. HOWEVF,>~ THE MODEST AMOUNT OF STATE FUNDS AVAn ABLE THI5 YEAR W1ZL t ?Nt 1~t'-Y ALLOW FOR ANY GRANT AWARD IN EKCESS OF 50°/v OF THE TOTAL VALUE OF THE EASEM~NT- Eerdosed are instructions, guidelines, and application forms by which your agency or organiz~.tion, if eligible, may apply for grant funds from the North Carolina Farmland Preservation Program. These guidelines and the enabling statute, as amended, define the qualifications of eGgrbility to receive a grant. Also enclosed is additional resource information. ALL APPLICATIONS MUST BE 5UBNIITTED TO THE CONSERVATION TRUST AND POSTMARI~D NO LATER THAN DECEMBER 10, 2000. The Conservation Trust will make recommendations to the Commissioner of Agriculture, who will make final decisions on grant awards in January or February, 2001. If the entire sum of available great funds for the 2000-0 l fiscal year is not exhausted by that set of awards, applications submitted later than December 10 will then be considered. If you have questions, please contact the Conservation Trust at 919-828-4199 or ctrrc~~rtrindspring. com . Enclosures: (1) Guidelines for the NC Farmland Preservation Grant Program (2) Application Instructions and Application (3) Enabling statute and 2000 amendment, NCGS 106-735 through 744, Article 61 "Preservation of Farmland" (4) "Protecting Your Legacy: Conservation Options for Agricultural Lands" pamphlet (available in quantities from the NC Department of Agriculture and Consumer Services, instructions on back Page) (5) "Preserving Famnland Through Voluntary Agricultural Districts: Guide for Citizens and Local O1~cials" CTNC pamphlet (6} `~rotectir-g F~ ~ Farmland ~ ~ Triangle" Region T]COG pamphlet (~ Sample Agricultural Conservation Easement adopted :6rom the American Farmland Trus~- model. easement for use in North Carolina. (which maybe downloaded from the CTNC vnternet web site: RESOURCES)