HomeMy WebLinkAboutOTHER-2025-005-Acceptance of the Agricultural Growth Zone Grant with the North Carolina Department of Agriculture f
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Steve Troxler North Carolina Department of Agriculture N . David Smith
Commissioner and Consumer Services Chief Deputy Commissioner
December 19, 2024
Christian Hirni, Land Conservation Manager
County of Orange
P. O . Box 8181
Hillsborough, NC 27278
NOTIFICATION OF FUNDING OFFER
Dear Christian:
On behalf of Commissioner Steve Troxler and the North Carolina Department of Agriculture and
Consumer Services - Farmland Preservation Division, I am pleased to inform you that $1 ,445,443 .00 for
your project, Orange Local Agricultural Growth Zone, was approved under the Agricultural
Development and Farmland Preservation Trust Fund.
The original agreement packet must be completed and returned to the NCDA&CS, making sure that the
agreements and certain forms have been signed, dated, and witnessed. Since this is a witness agreement,
there are two (2) options to complete the agreement. It is acceptable to have everyone sign the agreement
and submit the scanned copy electronically, or to complete electronic signature documents as provided by
ADFP Trust Fund staff at the signatory ' s request. To return a hand-signed and scanned agreement packet,
or to request a digital/electronic signature agreement packet, email ADFP Trust Fund Grant Specialist
Kelsey Pearce at kelsey.pearce@ncagr. gov.
By completing these documents, you are agreeing to the specific stipulations, the general terms and
conditions and specific reporting requirements . For hand signatures, all authorized representative
signatures must be in blue or black ink. Please use the Agreement Check Off List to ensure all
attachments are included and are in the correct order for each agreement packet.
One fully-executed, original agreement will be returned to you for your records . If you have any
questions about your agreement or any of the forms contained in your offer packet, please call Corey
Hoilman at 919-707-3069, or feel free to send an email to core .hoilmanaamcagr. cov.
I would like to take this opportunity to thank you for participating in the ADFP Trust Fund to conserve
North Carolina ' s farmland and family farm operations ,
ILV ��
Zavid ath
Chief Deputy Commissioner
Enclosures
Email: David. Smith@ncagr.gov
1001 Mail Service Center, Raleigh , North Carolina , 27699=1001
(919) 707=3033 0 Fax (919) 715-0026
An Equal Opportunity Affirmative Action Employer
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Departmental Use Only
AGENCY: 1000
� .` ACCOUNT: 60145046400008-
STATE OF NORTH CAROLINA * 1001012-0000000-2024-000000-
,� �!r: 0000000000.0000-000000-00000
AMOUNT: $1 ,445 ,443.00
COUNTY OF WAKE . TIME PERIOD: 10/1 /2024 - 9130/2027
on ON=
North Carolina Department of Agriculture and Consumer Services
Farmland Preservation Division
Agricultural Development and Farmland Preservation Trust Fund — Government
MEMORANDUM OF AGREEMENT
ADFP TRACKING # : ADFP- 0RA4 71=AGZ-000
This Memorandum of Agreement is hereby entered into by and between the North Carolina Department of
Agriculture and Consumer Services, Farmland Preservation Division, (the "Agency") and County of
Oran e, ("Grantee"), and referred to collectively as the "Parties ." The Grantee ' s federal tax identification
number is 56-6000327 , is physically located in Orange County (District 4), and is further located at P .O. Box
8181 , Hillsborough, NC 27278 .
The purpose of this Agreement is to encourage the preservation of qualifying farmland and to foster the
growth, development, and sustainability of family farms . The Grantee ' s agreement title is Orange Local
Agricultural Growth Zone, This Agreement is funded by State appropriations . Funds awarded under this
Agreement must be used for the purposes for which they are intended.
The Grantee ' s fiscal year ends 6/30 .
Agreement Documents :
This Agreement consists of the Memorandum of Agreement and its attachments, all of which are identified by
name as follows .
1 . This Memorandum
2 . Scope of Work, including Line-Item Budget and Budget Narrative
3 . Terms and Conditions
These documents constitute the entire agreement between the Parties and supersede all prior oral or written
statements or agreements .
I. Precedence Among Agreement Documents :
In the event of a conflict between or among the terms of the Agreement Documents, the terms in the
Agreement Document with the highest relative precedence shall prevail . The order ofprecedence shall
be the order of documents as listed in Paragraph 1 , above, with the first-listed document having the
highest precedence and the last-listed document having the lowest precedence. If there are multiple
Agreement Amendments, the most recent amendment shall have the highest precedence and the oldest
amendment shall have the lowest precedence.
NCDA&CS (State Funds Govt Contract) Rev. 7/14; 12/14; 8/17; 4/2022 , 9,2022
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V. 5 2022
lI. Effective Period :
This Agreement shall be effective on Oct. 1 , 2024 and shall terminate on Sept . 30, 2027 with the option
to extend, if mutually agreed upon, through a written amendment as provided for in the General Terms
and Conditions -as described in Attachment A . Per the Local 'Agricultural Growth Zones (AGZ)
Grantee Duties and Responsibilities document in the attached Scope of Work, a request for an
amendment must be submitted to the Farmland Preservation Director 60 days before the end of the
agreement.
This request must include reasons for not completing the grant and following the timetable of scheduled
activities to complete the grant project . This request must provide proper documentation for the
hardships that delayed completing the grant project and a revised timeline to complete the conservation
easement project. All other required documents, including budget and progress reports, must be current.
Eligible hardships include :
a . Death, severe illness or incapacitation of a landowner;
b . The Grantee has applied for federal funding and has not yet received a funding notification;
c . The Grantee has federal funds under contract and has not yet received approval to release
federal funds;
d . Contractor-related delays associated with the production of required due diligence documents;
e . Environmental issues requiring a Phase II environmental site assessment;
f. Title or domestic issues, including but not limited to concerns that prevent title certification,
boundary line disputes, access or right-of-way issues, bankruptcy, liens, or subordination
refusals .
I
In accordance with 09 NCAC 03M .0703 (4) all Parties agree to maintain, physical or digital, copies
of all pertinent records for a period of five (5) years or until all audit expectations have been
resolved, whichever is longer.
IIl . Grantee ' s Duties :
The Grantee, shall provide the services as described in the attached Scope of Work.
E
IV. Agency ' s Duties ,
The Agency shall pay the Grantee in the manner and in the amounts specified in the Agreement
Documents . The total amount paid by the Agency to the Grantee under this Agreement shall not exceed
$ 11445 ,443 .00.
This amount consists of $ 1 ,445,443 .00 in State funds .
[X] a . The Grantee 's matching requirement is $ 1 ,300, 898 . 70 , which consists of.
In Kind $
Cash $
Other — Cash and In Kind : $ 113001898 . 70
[J b. The Grantee has committed to apply for an additional to complete the project as
described in the Scope of Work. The Grantee shall notify the Agency within 30 days ofnotification
of additional funding decisions . If the funding decision has impacts on the project, the Agency will
need to be notified of the impacts within the 30 days stated above.
F
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NCDA&CS (State Funds Govt Contract) Rev. 7/14: 12/14 ; 8/17; 4/2022, 9, 2022
Page 2 of 8
V. 5 2022
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The total Agreement amount with matching funds is $2,746, 341 .70 .
V. Conflict of Interest Policy :
The Agency has determined that the Grantee is a government agency and is not subject to N. C .G. S . §
143C-6-23 (b) . Therefore, the Grantee is not required to file a Conflict-of-Interest Policy with the
Agency prior to disbursement of funds .
VI. Statement of No Overdue Tax Debts :
The Agency has determined that Grantee is a government agency and is not subject to N.C .G . S . § 143C-
6-23 (c) . Therefore, the Grantee is not required to file a Statement of No Overdue Tax Debts with the
Agency prior to disbursement of funds .
VII. Reversion of Unexpended Funds :
Any unexpended grant funds shall revert to the Agency upon termination of this Agreement.
VIH. Reporting Requirements :
The Grantee shall provide the Agency with progress reports, both financial and programmatic, for due
diligence items .
Due Diligence Items Yearly Budget and Progress Report
Due Dates
Easement Parcel ID Suite 180 days
Legal Conservation Suite 270 days
Final Legal Conservation Documentation Suite 365 days or with final payment request
For prof ects funded through this Agreement, three budget and progress reports are due per contract year
to document due diligence progress, and to track funds spent and match requirements . For easements not
recorded in the first 365 days, the reporting process will repeat itself during each subsequent contract
year.
If the specified items are not submitted at or prior to the reporting deadline, a due diligence extension
must be filed before the reporting milestone has been reached . Each extension pushes out the due
diligence date in three-month increments .
In-kind and cash match shall be a part of the required financial reports, and documentation of the
reported match shall be included with the reports. Documents shall be in the form of individual
timesheets that each employee has signed and approved by the appropriate supervisor, travel logs and
invoices for in-kind match, copies of checks, bank deposits, and fund transfers for cash match. Other
types of documents may be acceptable with the approval of the Agency Manager.
Due diligence items will be completed and submitted via the secure ShareFile Link supplied to the
primary contact by the final date of the reporting period .
The Grantee will remain in compliance with the requirements set forth in this 09 NCAC 03m .0703 ( 14),
including audit oversight by the Office of the State Auditor, access to the accounting records by both the
NCDA&CS (State Funds Govt Contract) Rev. 7/14; 12/14; 8/17; 4/2022 , 9, 2022
Page 3 of 8
V. 6 2022
funding entity and the Office of the State Auditor, and availability of audit work papers in the possession
of any auditor of any recipient of State funding .
IX. Payment Provisions ,
The grantee shall provide the Agency with the appropriate reimbursement request (downloadable at
www . ncadfp . org) and required documentation of performance and expenditures for associated grant
reimbursement . Upon approval by the Agency, payment shall be made within 30 days. Ten percent
( 10%) of the total funds awarded under subsequent Contracts funded through this Agreement shall be
retained by the Agency until both the final performance and financial reports are submitted by the
Grantee and approved by the Agency. All payments are subject to the availability of funds.
The Grantee shall expend funds in accordance with G. S . 143C-&23 (fl )(f2)0) . The Grantee shall
account for any income earned, which may result from any funds awarded under this Agreement, on the
Agency "Request for Reimbursement" form . Eligible uses of income earned are:
a . Expanding the project or program.
b . Continuing the project or program after grant ends; or
c . Supporting other projects or programs that further the broad objectives of the grant program .
i
If this Agreement is terminated prior to the original end date, the Grantee may submit a final Request for
Payment form . All unexpended funds shall be returned by the Grantee to the Agency within 60 days of
the Agreement termination date with a complete final financial report, accompanied by either a final
invoice or a refund of any funds received but not expended. The Agency shall have no obligation to
honor requests for payment based on expenditure reports submitted later than 60 days after termination
or expiration of the Agreement period .
F
Reimbursement requests shall be completed on a "Request for Reimbursement" form furnished to the
Grantee by the Agency. All reimbursement forms must include support documentation, including but not
limited to copies of invoices, individual time sheets and travel logs that have been signed by the
employee and supervisor, salary registers or payrolls that include fringe benefits, hourly rates ofpay, and
signature of the Grantee ' s responsible financial person, cancelled checks and lease agreements . See the
Conservation Easement Contract Grantee Duties and Reporting Requirements document in the Scope of
Work attachment in subsequent contracts for more details on payment provisions . j
Eligible expenditures for payment must be within the effective period noted in the Contracts .
Reimbursement may not be considered prior to the submission and final execution of the Contracts .
All travel reimbursement shall be made in accordance with the current State rates, at the time of the
expenditure, and shall be made in accordance with the "State Budget Manual"
htttjs ://www . osbm , nc ovibudvetlbudL, et-manual
All matching funds, including in-kind and cash, must be spent concurrently with funds provided by the
Agreement. Both types of matching funds expended shall be accounted for on the monthly certified
invoices .
Indirect costs are not allowable expenditures under this Agreement. j
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V. 5 2022
X. Fraud, Waste and Abuse
Grantee, including its employees, contractors, agents, interns, or any subrecipients, shall report
suspected fraud, waste and abuse activities related to any state employee, vendor or sub recipient of state
funds or state resources .
There are three methods for reporting suspected fraud, waste or abuse (FWA) . Grantee can report
suspected FWA directly to the Agency' s Audit Services Division, to any member of the Agency's
management team or through the FWA reporting website below.
N. C . G. S . 143 -748 permits Audit Services to treat all information as confidential. However, if an
individual wishes to remain anonymous, reports can be submitted through the FWA reporting website :
https ://www . neaL) r. gov/divisions/intemal-audit.
Under no circumstances should an individual attempt to personally conduct investigations or
interviews/interrogations related to any suspected FWA act.
Investigation results will not be disclosed or discussed with anyone other than those who have a
legitimate need to know. This is important to avoid damaging the reputations of persons suspected but
subsequently found innocent of wrongful conduct.
It is the Agency ' s policy that employees/contractors/sub recipients/interns will not suffer retaliation or
harassment for reporting in good faith any FWA concerns . ThesAgency encourages openness and will
support anyone who raises genuine concerns in good faith under this policy, even if they turn out to be
unsubstantiated.
Xt. Agreement Administrators :
All notices permitted or required to be given by one Party to the other and all questions about the
Agreement from one Party to the other shall be addressed and delivered to the other Party' s Agreement
Administrator. The name, post office address, street address, telephone number, fax number, and email
address of the Parties ' respective initial Agreement Administrator are set out below. Either Party may
change the name, post office address, street address, telephone number, fax number, or email address of
its Agreement Administrator by giving timely written notice to the other Party.
For the Agency:
IF DELIVERED BY PARCEL CARRIER IF DELIVERED BY ANY OTHER MEANS
Corey Hoilman, Assistant Director Kelsey Pearce, ADFP Trust Fund Grant Specialist
1001 Mail Service Center 2 W. Edenton St.
Raleigh, NC 276994001 Raleigh, NC 27601
Telephone : 919407-3069 Telephone: 919-707-3074
Email : corey .hoilman@ncagr. gov Email : kelsey.pearce a,ncagr. gov
Grants and Contracts email: agr. grants(a,ncagr. gov
NCDA&CS (State Funds Govt Contract) Rev. 7/14; 12/14; 8/17; 4/2022, 912022
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V. 5 2022
For the Grantee:
GRANTEE AGREEMENT GRANTEE PRINCIPAL INVESTIGATOR OR
ADMINISTRATOR - MAILING ADDRESS KEY PERSONNEL
Christian Hirni, Land Conservation Manager
County of Orange
P.O . Box 8181 1020 US 70 W
Hillsborough, NC 27278 Hillsborough, NC 27278
Telephone: (919) 245 -2514 Telephone :
Email : chirni r)oran ecoun ync .gov Email :
Me Supplementation of Expenditure of Public Funds :
The Grantee assures that funds received pursuant to this Agreement shall be used only to supplement,
not to supplant, the total amount of federal, State, and local public funds that the Grantee otherwise
expends for activities involved with specialty services and related programs . Funds received under this
Agreement shall be used to provide additional public funding for such services. The funds shall not be
used to reduce the Grantee's total expenditure of other public funds for such services.
XIII. Disbursements :
As a condition of this Agreement, the Grantee acknowledges and agrees to make disbursements in
accordance with the following requirements :
a . Will implement or already have implemented adequate internal controls over disbursements .
b . Pre-audit all invoices presented for payment to determine:
I
• Validity and accuracy of payment
• Payment due date
• Adequacy of documentation supporting, payment
• Legality of disbursement
c . Assure adequate control of signature stamps/plates ,
d . Assure adequate control of negotiable instruments; and
e . Have procedures in place to ensure that account balance is solvent and to reconcile the account
monthly,
XIV. Outsourcing and Subcontracting, I
I
The Grantee certifies that it has identified to the Agency all jobs related to the Agreement that have been
outsourced to other countries, if any. Grantee further agrees that it will not outsource any such jobs
during the term of this Agreement without providing prior notice to the Agency,
It is the Grantee ' s responsibility to adhere to the following if subcontracting transpires :
a . The recipient or subrecipient is not relieved of any of the duties and responsibilities of the j
original agreement.
b , The subrecipient agrees to abide by the standards contained in this Subchapter and to provide
information in its possession that is needed by the recipient to comply with these standards ,
NCDA&CS (State Funds Govt Contract) Rev. 7/14; 12/14; 8/17; 4/2022 , 9,2022
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XV. N.C.G. S . § 133-32 and Executive Order 24 :
N. C . G . S . § 133-32 and Executive Order 24 prohibit the offer to, or acceptance by, any State employee of
any gift from anyone with a Agreement with the State, or from any person seeking to do business with
the State. By execution of any response in this procurement or Agreement, you attest, for your entire
organization and its employees or agents, that you are not aware that any such gift has been offered,
accepted, or promised by any employee of your organization.
XVI. N.C.G. S . § 1324 . 10 Personal Identifying Information
N. C.G .S . § 1324 . 10(a-h) outlines the use and prohibition of the social security number and/or other
personal identifying information for illegitimate or unlawful reasons . In execution of this Agreement,
you attest, for your entire organization, its employees, agents, and/or contractors, you will protect all
social security numbers and/or other personal identifying information from illegitimate or unlawful
usage according to applicable North Carolina General Statues and Policies set forth.
NCDA&CS (State Funds Govt Contract) Rev. 7/14; 12/14; 8/17; 412022, 9 ,2022
Page 7 of 8
V. 6 2022
XVI. Signature Warranty:
The undersigned represent and warrant that they are authorized to bind their principals to the terms of
this Agreement .
IN WITNESS WHEREOF, the Grantee and the Agency execute this Agreement as an electronic
original, each party will be provided a fully executed copy via electronic mail . It is required that each
party retain a fully executed copy of this agreement .
Grantee : County of Orange
Si ature of Autho ' ed Representative Date
ayl. Aollv�eeA /P
ri ' ed Name Title
it s :
ignature Date
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Printed Name Title
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North Carolina Department of Agriculture and Consumer Services
Date:
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Counter-Signature Authority:
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N. David Smith
Chief Deputy Commissioner
NCDA&CS (State Funds Govt Contract) Rev. 7/14; 12/14; 8/17; 4/20229 912022
Page 8 of 8
V. 5 2022
Scope of Work Attachment Contents for the Local
Agricultural Growth Zones (AGZ) Program :
a . Scope of Work and Map , if provided
b . Local Agricultural Growth Zones (AGZ) Grantee Duties and
Responsibilities
c . Line-Item Budget
d . Conservation Easement Template
e . Survey Requirements and Checklist
f. Appraisal Checklist ( Standard Appraisal Projects Only)
g . PUV Conservation Easement Program Guidelines (PUV
Projects Only)
h . Environmental Audit Requirements and Checklist
i . Baseline Documentation Report Requirements and Checklist
J . Closing Agent Requirements for Easement Programs
k. ADFP Trust Fund Monitoring Policies
1. Conservation Easement Transfer of Entity, if applicable
Scope of Work
The purpose of this agreement is to place perpetual agricultural
conservation easements within the Orange Local Agricultural
Growth Zone ,
Grantee :
County of Orange
Additional Funding Sources (secured or unsecured) :
County
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Attached is a map of the county and its proposed priority zones :
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from nwiilple sources. Source information used er
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times or definitions, resulting in Inconsistencies among
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Your assistance in insuring the accuracy of this
� � 9 e+` Information is appreciated Please report errors,
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1111 ` I Envirorment Agriculhre, Parks & Recreation,
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N. C. Department of Agriculture & Consumer Services
N.C . ADFP Trust Fund
_ Local Agricultural Growth Zones (AGZ)
Grantee Duties and Responsibilities
The .purpose of the Local Agricultural Growth Zones (AGZ) program is to allow counties and
conservation nonprofit organizations to enhance local investments in the acquisition of
agricultural conservation easements by applying for matching funds from the state .
Different regions in North Carolina have varying agricultural landscapes, land use pressures, and
community needs . Local AGZs allow for strategic approaches to farmland preservation at the
community level .
l . Local AGZ grants fund agricultural conservation easement purchase funds and transactional and
due diligence costs . Funds for individual agricultural conservation easement projects eligible
under this grant contract are available on a rolling basis pending the approval of parcel(s),
budget, and secured local funds . The Grantee is highly encouraged to determine the final
easement purchase value through appraisal or tax card and secure local matching funds before
submitting documentation for parcel and budget approval .
2 . All parcels submitted for an agricultural conservation easement under this grant must meet the
program eligibility requirements of the North Carolina Department of Agriculture and Consumer
Services (NCDA&CS) Agricultural Development and Farmland Preservation Trust Fund j
(ADFPTF) . All of the following property eligibility requirements must be met :
• The property must be privately owned ;
• Located within the borders of the State of North Carolina;
• In working lands use (agriculture, horticulture, forestry) ;
L For purposes of determining whether a property is in working lands use,
any of the following is sufficient evidence that the property is in working
lands use : j
1 . A farm sales tax exemption certificate issued by the Department of
Revenue ;
2 . A copy of the property tax listing showing that the property is
enrolled in present-use value ,
3 . A forest management plan dated within 10 years .
• Minimum acreage requirements must follow the present-use value guidelines :
i . Five acres for horticulture;
ii . 10 acres for agriculture (row crops or pasture);
iii . 20 acres for forestry ,
iv . 10 acres for a combination of working lands use .
v . If there are existing easements that have removed the development rights
from the property, those easement areas will be ineligible for the program
and will not count towards the minimum acreage requirements .
3 . To initiate funding from the Local AGZ grant for an agricultural conservation easement project,
the Grantee must submit the AGZ Parcel Approval Form . Below are the requirements for the
electronic AGZ Parcel Approval Form : �
• Title Prescreen
i . Grantees are highly encouraged to submit parcels with no title defects .
Title issues identified in the AGZ Parcel Approval Form may cause the
parcels to be rejected or issues remedied before approval .
• Environmental Prescreen
i . Grantees are highly encouraged to submit parcels with no environmental
issues . Environmental issues identified in the AGZ Parcel Approval Form
may cause the parcels to be rejected or issues remedied before approval .
• Property Eligibility
i . All parcels must meet the program eligibility requirements as detailed in
Section 2 of this contract.
• Parcel Identification
i . Parcel(s) must be identified by Parcel Identification Number(s) (PIN) and
property physical address .
ii . The acreage for each PIN must be listed .
• Proof of Ownership
i . All proposed conservation easement parcels must be under the same
ownership.
ii . General Warranty Deed or Last Will and Testament (if ownership is
through inheritance) are acceptable proof of ownership.
1 . Quit Claim Deeds are not accepted as proof of ownership .
• Landowner Authorization
i . Written authorization must be obtained from all parties with an interest in
the property's ownership to complete an agricultural conservation
easement .
ii . Acceptable written agreements include an option to purchase, landowner
pledge agreement, letter of intent, purchase and sale agreement, or
contract .
• Map of Proposed Conservation Easement
i. Boundary of the proposed conservation easement.
H . Access from a public road or evidence of insurable, unconditional, and
transferable legal right of recorded access . The proposed conservation
easement must be accessible from a public road , or there must be a
recorded right of way to the proposed conservation easement.
in . Identifying the total acreage and the square footage or acreage of the
existing and proposed impervious surfaces and farmstead building
envelopes . Impervious surfaces must not exceed two (2) percent of the
proposed easement area unless the applicant is granted a waiver.
iv . All existing and proposed farmstead building envelopes must be identified
as one of the following:
1 . Current Residential;
2 . Future Residential;
3 . Farm Support Housing;
4 . Other Residential ;
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5 . Recreational and Accessory Structures ;
6 . Farmstead .
v . No more than one residential structure may be located in a farmstead
building envelope for residential use . No more than three farmstead
building envelopes for residential use may be included in one conservation
easement.
vi . If areas are excluded from the easement, they must be identified and
removed from the acreage , and legal access must be shown to those sites .
vile Use the most up-to-date aerial imagery to show current land use .
Ville Include the PINs for each parcel on the map.
ix. Projects funded through the Present-Use Value (PUV) Conservation
Easement Program are required to follow those program rules . Additional
restrictions on boundaries, parcels , and farmstead building envelopes will
apply .
• Easement-Holding Entity Review
i . If the Grantee is not the easement-holding entity for the agricultural
conservation easement, a qualifying entity must be submitted for review
and approval . County governments, Soil and Water Conservation
Districts, and land trusts are qualifying entities under this contract.
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4 . After NCDA&CS approves the AGZ Parcel Approval Form, the Grantee is required to submit a j
budget and proof of secured local easement purchase funds . All budgets and proof of secured
local easement purchase funds will be submitted via ShareFile . Below are the requirements for
the budget and proof of secured local easement purchase funds :
• Agricultural Conservation Easement Purchase Funds j
L Select funding program
1 Standard Conservation Easement Appraisal Process
2 . Present-Use Value (PUV) Conservation Easement Program j
ii . Determine easement purchase value through evidence-based methods
1 . PUV Conservation Easement Program must use a current-year tax
card
2 . Grantees are highly encouraged to order a qualifying appraisal , per
the Appraisal Requirements and Checklist for Conservation
Easement Programs, before submission of the AGZ Parcel
Approval Form . Otherwise, the Grantee may refer to the current
version of the Conservation Easement Application Budget j
Instructions for acceptable estimated easement purchase value j
methods .
iii . Identify all sources of easement purchase funds
l . The full easement purchase value, including cash and in-kind
sources, must be accounted for in the easement purchase line item .
2 . Easement purchase funds from the ADFP Trust Fund and the
qualifying local source must be equal.
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• Transactional and Due Diligence Costs
L All transactional and due diligence costs are based on the current year cost
averages for the Grantee ' s region .
ii . Transactional and due diligence costs shall not exceed 10 percent of the
total Local AGZ grant contract award .
• Secured Local Easement Purchase Funds
i . The Grantee is required to submit confirmation of secured local easement
purchase funds .
H . A qualifying local source of easement purchase funds includes public
funds from a county or municipal government or cash funds from a
private, nonprofit conservation organization incorporated in the State of
North Carolina .
ilia Funds from state government, federal government, public community
college or university system, or private or nonprofit funds from
nonqualifying organizations or entities incorporated outside of the State of
North Carolina do not apply.
iv . The confnmiation of secured local easement purchase funds must be in
writing on entity letterhead and may come from any individual that has the
authorization to transfer cash funds to the closing settlement agent that
will close the agricultural conservation easement.
5 . After final approval of the agricultural conservation easement project, the Grantee agrees to
record the conservation easement within one year. Failure to follow the deliverable timeline is
a breach of the contract, and the Grantee must repay any grant funding received from the
NCDA&CS ADFPTF . If the Grantee fails to record an approved conservation easement
according to the terms and conditions of this contract within the contract period, the Grantee is
responsible for repaying all funds expended .
6 . The deliverable timeline is arranged by six suites of documents and must be submitted in the
order identified below. The first deliverable required is a signed and notarized Easement
Restriction Acknowledgement Form that must be submitted in the first 60 days after final
approval of the agricultural conservation easement project. Grantees are responsible for securing
qualified staff or subcontractors to complete due diligence items . Grantees will supply the
attached checklists to these individuals and will submit the associated qualification verification
form with the appropriate document suite . All items in the suite MUST be approved by
NCDA& CS and other funding partners before continuing to the next suite. Additionally :
• Due diligence items will be completed and submitted via the secure ShareFile link
supplied to the primary contact by the final date of the reporting period .
• If the items are not submitted at the reported deadline, a due diligence extension
must be filed before the report deadline . Each extension pushes out the due
diligence date in three-month increments . Budget and progress reports are still
required every three months if an extension is requested .
4
• A first-year budget and progress report MUST be filed 30 days prior to the end of
year one . if a budget and progress report is not submitted with a due diligence
extension request citing approved hardship, the grantee will be considered in
breach of contract.
• Failure by the Grantee to initiate deliverables on the conservation easement
project, Grantee staff shortages or changes, and Grantee time management issues
are not acceptable hardships and will result in a breach of the contract, and the
Grantee must repay any grant funding received from the NCDA& CS ADFPTF .
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Required Grantee Deliverables Within the First Year
Must be provided in the following order and submitted as a complete suite in Word or PDF
electronic format for upload to the easement ShareFile folder sent to the primary contact.
Deliverables (Documents) Due Date
1 . Easement Restriction Acknowledgement Form Within 60 days after approval
Must be Signed and Notarized
Easement Parcel Identification Suite Part A Within 150 days of approval
1 . Signed Preliminary Title Opinion
2 . Signed Preliminary Title Commitment
Must certify title for a period of at least sixty years
3 . Insured Closing Protection Letter
4 . Copies of Vesting Deeds and Exceptions
5 . Notification of Subordination, Payoff, or Cancellation if deeds of trust,
judgment, liens, etc., are identified
6 . Preliminary Conservation Easement Survey
Easement Parcel Identification Suite Part B Within 180 days of approval
1 . Certified Development Rights Appraisal, dated within the contract
period and less than 3 65 days tprior to closing OR with an appraisal update (An appraisal is not Required for Easement
or recertification of value. Funded through the PUV Program)
2 . GIS Sha efiles of Easement
Land Management Documents Suite Within 210 days of approval and
1 . Environmental Audit, including Hazardous Materials Checklist and no less than 60 days before the
Landowner Interview and Signed Environmental Opinion scheduled conservation easement
2 . Conservation Plan, if applicable recording date
3 . Forestry Plan, if applicable
4 . Preliminary Baseline Documentation Report with applicable
Conservation Plan and Forestry Plan, Environmental Audit, and
Conservation Easement Survey
Legal Conservation Document Suite Within 270 days of approval and
1 . Conservation Easement in final form with all Annlicable Exhibits no less than 30 days before the
2 . Title Commitment with NCDA&CS Legal Affairs approval scheduled easement recordation
3 . Signed Subordination Agreement, Proof of Payoff or Proof of and no less than 30 days before the
Cancellation, if applicable contract end date .
4 . Preliminary HUD (Settlement) Statement
5 . Signed Conservation Easement Closing Check Request Form
Final Legal Conservation Document Suite Due within 20 working days (28
1 . Recorded Conservation Easement calendar days) following the
2 . Recorded Survey recording date of the easement
3 . Final Title Opinion , signed by the closing attorney
4 . Final Title Policy Please note: the release of
5 . Recorded Subordination Agreement, if applicable holdbackftmds will not be
6 . Signed HUD (Settlement) Statement authorized until all documents are
7 . Final Baseline Documentation Report, including applicable Conservation submitted and approved. Failure to
Plan and Forestry Plan, Environmental Audit, and Conservation Easement do 'so may result in the loss of
Survey; includes Signed Landowner and entity Acknowledgement Form grant funds.
8 . Request for Final Payment
6
7 . The Grantee shall provide the Agency with progress reports, both financial and programmatic,
for due diligence items .
Due Diligence Items Yearly Budget and Progress
Report Due Dates
Easement Parcel ID Suite 180 days
Legal Conservation Suite 270 days
Final Legal Conservation Documentation Suite 365 days or with final payment
request.
Three budget and progress reports are due per contract year to document due diligence progress,
track funds spent, and match requirements . For easements not recorded in the first 365 days , the
reporting process will repeat itself during each subsequent contract year.
If the specified items are not submitted at or prior to the reporting deadline, a due diligence
extension must be filed before the reporting milestone has been reached . Each extension pushes
out the due diligence date in three-month increments .
In-kind and cash match shall be a part of the required financial reports, and documentation of the
reported match shall be included with the reports . Documents shall be in the form of individual
timesheets that each employee has signed and approved by the appropriate supervisor, travel logs
and invoices form ind match, copies of checks , bank deposits, and fund transfers for cash
match. Other types of documents may be acceptable with the approval of the Agency Manager.
Due diligence items will be completed and submitted via the secure ShareFile Link supplied to
the primary contact by the final date of the reporting period .
8 . The Grantee will use the selected easement template unless the exception category has been
designated and approved by the Agency . The selection of the appropriate template is based on
partnership funding used to secure the conservation easement, the term of the easement, the 3
valuation method used, and the presence or absence of farmstead building envelopes [pursuant to
N. C .G. S . 106444(b)( 1 ), up to three lots may be created in the easement area; unless clearly
delineated in the preliminary conservation easement survey, the landowner waives the right to
create the three lots] . The easement templates are downloadable at www.ncadf p�org :
0 ADFPTF and County
The Agency legal counsel and Farmland Preservation Director must approve additions,
omissions, or modifications of said template . The final "Conservation Easement" must meet with
Agency approval to remain eligible for funding . 3
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9 . The Grantee shall provide the Agency with the appropriate reimbursement request
(downloadable at www.ncadfp. org) and required documentation of performance and
expenditures for associated grant reimbursement. The Agency shall make payments to the
Grantee on the following guidance .
• No more than $25 , 000 if the grant award is $27, 778 or greater and up to 90% of the
grant if the award is less than $27, 778 before the recording of the " Conservation
Easement. "
• All payment requests must document the purpose of using grant funds and be within the
approved amounts designated in the contract grant budget.
• At the time of a properly recorded "Conservation Easement, " the Agency shall pay the
Grantee no more than 90% of the awarded grant amount.
• The Grantee shall ensure that acreage approved in the AGZ Parcel Approval Form are
placed under an agricultural easement with no more than a 5% variance in recorded
easement acreage without the prior written approval of the Agency.
i . If the variance is greater than 5% of the contracted acres and is greater than the
acres listed above, the additional acreage will be approved under one of the
following scenarios :
1 . The additional acres are included in the original parcels , and the variance is
due to the Conservation Easement Survey updates .
2 . The additional acres are parcels or areas within the original parcels under
the same ownership as the original parcels, are in working lands use, and
are within, adjacent, or contiguous to the original parcels .
ii . If the variance is greater than 5 % of the contracted acres and is less than the acres
listed above, the grant funds for conservation easement purchase will be reduced
proportionally based on the new acreage .
• The division of the funds used to purchase the agricultural easement from matching
resources and Agency resources must be maintained, as noted in the grant contract
budget.
• At no time shall the total payment of grant funding exceed the grant contract value .
• All Grantee payments must have receipts of expenditures to verify the use of funding per
contracted purposes .
• The Agency shall make the payment within 60 days of any grant reimbursement request
by the Grantee with approved documentation.
10 . The Grantee will use the selected conservation easement purchase funding program as
determined in the approved budget.
11 . The conservation easement closing payment request may be submitted in writing using the
Easement Closing Check Request form by the Grantee 30 days before the set closing date,
provided the following items have been achieved :
• All closing documents (conservation easement, HUD statement, title commitment, and
subordination agreement if required) have been reviewed and approved by ADFPTF and
NCDA&CS legal staff.
8
• The Grantee is in "Green " status based on the ADFP Trust Fund Grantee Eligibility
Classification system . This status requires all progress/budget reports, monitoring
reports , audit reports , and other reporting documents to be current with the Agency.
• The Grantee has followed the contractually obligated work schedule as detailed in the
grant contract. If the Grantee fails to maintain the contractual agreement between
NCDA& CS and the Grantee, NCDA& CS ADFPTF shall consider additional measures
to ensure Grantee follows department policies and contract procedures .
• The proposed conservation easement closing date shall be no less than 30 days before
the contract end date . This timeline eliminates the risk of losing grant funds due to the
contract's expiration .
• All involved parties, including ADFPTF, Grantee, landowners, and all funding partners
with a financial interest in the conservation easement, will confirm the closing date .
• The closing check will be submitted to the closing attorney named ul the grant contract,
provided all required information provided by the Grantee is complete approved by
ADFPTF and NCDA&CS legal staff.
• If a contract is at risk of not being completed , NCDA&CS may provide alternatives to
reduce that risk, including revisions of the holdback provisions or the payment delivery
options for services rendered by contractual arrangement .
12 . The Grantee shall also submit a final grant report after closing each agricultural conservation
easement. In the final report, the Grantee shall provide all budget/progress reports, the final
request for payment, and an accounting of the final match claimed by the Grantee to fulfill the 1
match requirement mandated under N. C .G. S . 106=744(c1 ) ( 1 ) . Grant contract budgeting and
payments shall hold back 10% on all line items until ADFPTF receives all required reports and
documentation . The full ADFPTF easement funding allocated for easement purchase may be
submitted at closing, provided the closing attorney holds the 10% in escrow until all recorded
documents and reports, including the recorded conservation easement, recorded survey, final
title opinion signed by the closing attorney, final title policy, recorded subordination
agreement (if applicable), signed HUD statement, and signed baseline documentation report,
have been received and approved by NCDA&CS . The final report and all invoices are due
within 20 working days (28 calendar days) following the closing and recording date of the
conservation easement. If the Grantee fails to provide the final report and required supporting
documentation within the required period, the Grantee may not receive reimbursement and
shall be considered ineligible for reimbursement,
mg of the hold-back percentage provided the following criteria
13 . Grantees may request a lower
have been provided :
• An official request to the Commissioner of Agriculture with reasoning why the 10%
hold-back is an undue burden and a proposed revised holdback percentage .
• The Grantee has no record of infractions or late reports for ADFPTF within the last two
years from the revised hold -back percentage request date.
9
• If an infraction or late report occurs during the grant contract period , the hold-back
percentage shall be reinstated at 10% or higher as a corrective measure .
14 . If the Grantee has not provided all closing documents and progress/budget reports 60 days
before the contract's end date, the Grantee may request in writing on organizational letterhead
a one-year contract extension of the grant to the Farmland Preservation Director.
• Extension requests and all required documentation must be received by ADFP Trust
Fund a minimum of 60 days prior to the contract termination date.
• This request must include reasons for not completing the grant and following the
timetable of scheduled activities to complete the grant project. This request must
provide proper documentation for the hardships that delayed completing the grant
project and a revised timeline to complete the conservation easement project. All other
required documents, including budget and progress reports, must be current. Eligible
hardships include :
a. Death, severe illness or incapacitation of a landowner;
b. The Grantee has applied for federal funding and has not yet received a funding
notification ;
c . The Grantee has federal funds under contract and has not yet received approval
to release federal funds ;
d . Contractor-related delays associated with the production of required due
diligence documents ;
e. Environmental issues requiring a Phase II environmental site assessment;
f. Title or domestic issues, including but not limited to concerns that prevent title
certification, boundary line disputes, access or right-of--way issues, bankruptcy,
liens , or subordination refusals .
All other requests for continuing the conservation easement project shall be determined
on a case-by-case basis . If approved, the project may continue beyond the original
contract end date . If denied, the Grantee must repay any grant funding from the
NCDA&CS ADFPTF . Note : Failure by the Grantee to initiate deliverables on the
conservation easement project, Grantee staff shortages or changes, and Grantee time
management issues are not acceptable hardships and will result in a breach of the
contract, and the Grantee must repay any grant funding received from the NCDA&CS
ADFPTF . All other grant contract extension requests shall follow the protocols outlined
m the NCDA&CS ADFPTF grant contract .
• An emergency request for a fifth contract year may be granted only in the event of
landowner death, severe illness, or incapacitation.
15 . If the Grantee has not provided all closing documents and progress/budget reports 30 days
before the contract's end date, the Grantee may request an emergency contract extension of the
grant to the Commissioner of Agriculture . This request must include reasons for not
completing the grant and following the timetable of scheduled activities to complete the grant
project. All other grant contract extension requests shall follow the protocols outlined in the
NCDA&CS ADFPTF grant contract.
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16 . After recording the "Conservation Easement" in the Register of Deeds Office, the Grantee
shall annually notify the landowner and conduct a monitoring visit to the property to ensure
that the easement agreement is being upheld . If structures are permitted under the easement,
the Grantee shall review plans and monitor construction for compliance with the plans .
Grantee monitoring shall be completed in accordance with the Agency " Conservation
Easement Monitoring Policy and Guidelines " and amendments thereto . The Grantee shall
electronically complete and submit to the Agency the " Grantee Monitoring Report — Perpetual
or Term Easement" to report its annual monitoring findings . The " Grantee Monitoring Report
— Perpetual or Term Easement" is accessed through a portal at www.ncadfp .org . The first
" Grantee Monitoring Report — Perpetual or Term Easement" is due by December 31 of the
following calendar year after the " Conservation Easement" recording and annually thereafter.
17 . The Grantee shall complete all reports in a prescribed format, which the Agency shall provide .
Reports and required documentation must be up-to-date for the Grantee to receive payments .
18 . All publicity and printed material regarding projects or activities supported in whole or in part
by this shall contain the following language : "The project received support from the
NCDA&CS ADFP Trust Fund . " The NCDA&CS ADFP Trust Fund logo (digital versions of
which can be downloaded from the Agency website at www.ncadfp .org) shall be displayed in
all the Grantee's publicity and printed materials relating to this grant .
19 . The Grantee will submit all reports and requested documents electronically unless instructed
differently by Agency staff.
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20 . Noncompliance with Grantee duties will result in an immediate suspension of existing Agency
grant funding . The Grantee shall be ineligible for further Agency grants until the
noncompliance is corrected , and the Agency has acknowledged the correction and is in good I
standing.
The Agency shall use the following guidance in placing a Grantee in noncompliance : 3
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Frequency of Severn . cr ,�onse uen9 , , AllIle
j
Medium
Adverse Actions eeLow Severity High Severity
Severity
High Frequency Medium ' Risk
Medium Frequency Medium Risk
Low Frequency Medium Risk Medium Risk
Definitions :
• High Frequency : Five or more times per reporting period
• Medium Frequency : Three or four times per reporting period
• Low Frequency : One or two times per reporting period
• Low Severity : These adverse actions cause disruptions and delays to the division .
11
• Medium Severity : These adverse actions put grantees out of compliance with the terms of
grant contracts and reporting requirements .
• High Severity: These adverse actions cause significant financial, programmatic, or legal
issues that jeopardize the grantee's status as an eligible grant recipient.
Adverse Actions
• Low Frequency, Low Severity : Low Risk
o Failure to return one or two completed grant contract packets within 10 working
days without staff approval . The reporting period is a grant award cycle.
• Medium Frequency, Low Severity: Low Risk
o Failure to return three or four completed grant contract packets within 10 working
days without staff approval . The reporting period is a grant award cycle.
• High Frequency, Low Severity. Medium Risk
o Failure to return five or more completed grant contract packets within 10 working
days without staff approval . The reporting period is a grant award cycle .
o All grant payments and proposed grant contracts are frozen until reports are filed
and approved . Review of proposed grant requests (RFPs) may continue but no
grant contracts may be offered .
• Low Frequency, Medium Severity: Medium Risk
o One or two late budget and progress reports or monitoring reports in the previous
reporting period. The reporting period is either semi-annually or quarterly for
open contracts, and annually for monitoring reports .
o All grant payments and proposed grant contracts are frozen until reports are filed
and approved . Review of proposed grant requests (RFPs) may continue but no
grant contracts may be offered .
• Medium Frequency, Medium Severity : Medium Risk
o Three or four late budget and progress reports or monitoring reports in the
previous reporting period . The reporting period is either semi-annually or
quarterly for open contracts, and annually for monitoring reports .
o All grant payments and proposed grant contracts are frozen until reports are filed
and approved. Review of proposed grant requests (RFPs) may continue but no
grant contracts may be offered.
• High Frequency, Medium Severity: High Risk
o Five or more late budget and progress reports or monitoring reports in the
previous reporting period . The reporting period is either semi-annually or
quarterly for open contracts, and annually for monitoring reports .
o One or more late budget and progress reports or monitoring reports in the two
previous reporting periods . The reporting period is either semi-annually or
quarterly for open contracts, and annually for monitoring reports .
o All grant payments and proposed grant contracts frozen until reports are filed and
approved . Review of proposed grant requests (RFPs) discontinued, and no grant
contract may be offered .
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• Low Frequency, High Severity : Medium Risk
o Failure to submit the final report and all invoices within 20 working days (28
calendar days) following the closing and recording date of one or two
conservation easement projects . The reporting period is annual .
o Failure to submit the final report and all invoices by the 10th of the month
following the contract's ending date or within 20 working days (28 calendar days)
following the completion of the project for one or two agricultural development
projects or agricultural plans . The reporting period is annual .
o All grant payments and proposed grant contracts are frozen until reports are filed
and approved . Review of proposed grant requests (RFPs) may continue but no
grant contracts may be offered . ,
• Medium Frequency, High Severity: High Risk
o Failure to submit the final report and all invoices within 20 working days (28
calendar days) following the closing and recording date of three or four
conservation easement projects . The reporting period is annual .
o Failure to submit the final report and all invoices by the 10th of the month
following the contract's ending date or within 20 working days (28 calendar days)
following the completion of the project for three or four agricultural development
projects or agricultural plans . The reporting period is annual .
o Material weakness found in audit. Remain at high risk until it is corrected .
o All grant payments and proposed grant contracts frozen until reports are filed and
approved . Review of proposed grant requests (RFPs) discontinued, and no grant
contract may be offered .
• High Frequency, High Severity : High Risk
o One or more late budget and progress reports or monitoring reports in the three
previous reporting periods . The reporting period is either semi-annually or E
quarterly for open contracts, and annually for monitoring reports .
o Named on the North Carolina Office of State Budget and Management (OSBM)
Suspension of Funding List (SOFL) . The reporting period is weekly.
o Failure to submit the final report and all invoices within 20 working days (28 I
calendar days) following the closing and recording date of five or more
conservation easement projects . The reporting period is annual .
o Failure to submit the final report and all invoices by the 10th of the month E
following the contract's ending date or within 20 working days (28 calendar days)
following the completion of the project for five or more agricultural development
projects or agricultural plans . The reporting period is annual .
o All grant payments are frozen . Grantee is not eligible for an ADFP Trust Fund
grant application or contract.
21 . The grant contract budget is attached:
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