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CEA 04-19-12 Meeting AgendaFrederick County Conservation Easement Authority TO: Conservation Easement Authority FROM: Eric R. Lawrence, CEA Secretary � SUBJECT: April Meeting DATE: April 11, 2012 The Frederick County Conservation Easement Authority will be meeting on Thursday,_ April 19, 2012 at 8:00 a.m. in the Board of Supervisor's Executive Session Meeting Room in the County Administration Building, 107 North Kent Street, Winchester, Virginia. The Conservation Easement Authority will discuss the following agenda items: AGENDA 1. Welcome and Introductions 2. February 23, 2011 Meeting Minutes 3. Fundraising Efforts a. www.GlFT.org —Give $1. for Frederick's Tomorrow b. GIFT program Facebook page c. Establishing matching fund source 4. Tax Credits and Easement Donation handout information 5. Next meeting date (May 24, 2012) 6. Other Please contact the Planning Department (540-655-5651) if you are unable to attend this meeting. CIO Frederick. County Planning Department, 107 North Kent Street, "Winchester, VA 22601 (540-665-5651) MEETING MINUTES OF THE FREDERICK COUNTY CONSERVATION EASEMENT AUTHORITY Held in the Executive Session Room of the Frederick County Administration Building at 107 North Kent Street in Winchester, Virginia on February 23, 2012 at 8:00 a.m. PRESENT: Diane Kearns, Chairman; Ron Clevenger; Robert Solenb.er; John Marker; Gene Fisher, Board of Supervisors Liaison; and Charles Triplett, Planning Commassara Liaison. ABSENT: Elaine Cain, Treasurer; and Todd Lodge. STAFF PRESENT: Eric R. Lawrence, CEA Secretary; Candice Perkins, Senior l? anner; and Bev Dellinger, Secretary 111. OTHER: Kelly Hopkins, Conservation Partners; and Ellen PUBLIC MEETING: 1. Welcome and Introductions Everyone introduced themselves to two 2. November 17,201 On a motion by 2011 were unad 3. Presentation from Minutes der and second ad by Mr. issioner of the Revenue. , the minutes of November 17, ;;. illy Hopkins Conservation Partners, who is filling in for Mr. M�- ,Hopkins stated W-6 Ahe basN;end legal requirements for holding a conservation easement, wh Wor, they are persd governmental or a privately owned trust, are the same. She handed out a' folder prepared by -.,,Conservation Partners, named "Benefits to Virginians of Purchasing Land Pr ion Tax redits" containing information about tax credits and quality standards. Also included p the f6lder are pamphlets named "Conservation Easement Donors and Their W Professional Adswas'°', "Easement Donor's Guide", "Introduction to Conservation Easement Donations in Vigra", and a CD named "Your Land Legacy". The summary template talks about what you have to know about an easement. What are the restrictions? What do you want to hold back for your own? What is the responsibility of the community to make sure the stewardship is done properly? Conservation Partners has "Quality Standards" and every time they help someone do a conservation easement, they not only review the deed of easement against their Quality Standards template, they also review the appraisal. Ms. Hopkins stated you will hear a lot of bad things about appraisals and that's what is causing Conservation Easement Authority Page - 170 - February 23, 2012 the IRS to come in and devalue or eliminate the deduction all together. The State of Virginia, within the last two years, has instituted a transfer fee when somebody sells tax credits and the State is enforcing that stringently. Audits are definitely on the rise. Ms. Hopkins stated that Conservation Partners does educational outreach each year, not only for appraisers, but also for people who prepare deeds. Ms. Hopkins stressed that when the CEA does get into holding conservation easements, the CEA must understand the importance of our template and we must understand that the deed is something that can cause scrutiny. Conservation Partners helped the Virginia Department of Forestry with their template, which is an ,qcellent example, and they will be happy to help us. Mr. Jim McLaughlin, Taylor Cole's partzxer Who works in Utah, will help us set up a template at no charge. Ms. Hopkins further talked about helping us by Conservation Partners has relationships with banks 1 lien on the property, the bank has to agree that th property to make sure their loan to value is prot b have a couple of banks who feel that if Conse„t the numbers come out right, they're comfortablO loan. Farm Credit has been very good about doing 1 this and they understand how the appraisal process y There are several very large cases th q over -valued appraisal. Some appra comparisons are not done properly. Or They may forget to address enhanceme in making sure their- ry ,W. Everyone on theirAIk of to make sure t etho Conservation Partners, who thoy hive worked with'. 27 farmers or anyo%thinking' tabs care of tax credits, and b ' ain sales, A ich,; the what th s has had right. Nils help do §i na going to allow ire_ c Many banks won't al ertri&s is part of the f dinatih-g, refinancing bi real Y understand they're recorded. Lions. If there is a [evaluation of the lbw that, but they recess; as long as cr dying a bridge the importance of challenged'ni ffinow and that is because of an r wbe missing scae' of the methodology and I*Mge of thecomps and adjust it improperly, sirrvatzoz'a�rttaers tries to educate the appraisers doing rht and what they're doing wrong. of their appraisals reviewed by a national expert of experienedid CPA's, accountants, attorneys and appraisers ho'''�are�wledgeable about easements and will be able to help placing an easement on their property. Conservation Partners aanage the profits for people. They have also been involved in bounty may give a small percentage donation toward a rOF, the Department of Forestry or someone else may pick up Ms. Hopk &` tated thaaf, she would be happy to come back and talk to other groups or donors as to how Conse-0-d a Partners can help design a program that works for then. They will be involved as little��7ar'as much as we want. People can save a lot of money buying tax credits and that is the way that Conservation Partners gets paid. They don't charge anything extra for the consulting work they do. They want to put all their efforts toward finding more people to do conservation easement work. They have sold over $115,000,000 in tax credits since they opened in 2002 and they have never had a devaluation or a successful challenge on any of their easements. Conservation Easement Authority Page - 171 - February 23, 2012 Chairman Kearns asked Ms. Hopkins how advanced funding works. Ms. Hopkins explained they don't give out money like a grant program. They advance the amount and when the donor sells their credits, it is paid back. The advanced funding amount has been increased from $10,000 to $15,000. Mr. Solenberger asked Ms. Hopkins about their fees. Ms. Hopkins used an example of a property, with no houses, that's worth $1,000,000. Typically the average in Virginia is a 30% reduction in value, so the value would be $700,000 and the tax credits $300,000. Virginia gives you 40% of that, so the tax credits would be $120,000. Conservratian_Partners will sell your $120,000 tax credit at a rate of 6%, Virginia charges a transfers „of 5%, so that's 11% of what the buyer pays. Last year, buyers paid $b cents on the dollar that'; a 14% discount. Given this example, the donor would net $90,000. Mr. Solenberger asked Ms. Hopkins if a property,pwner is interested iu _ easement, but he wants to know ahead of time about it, how do yow�liandle that? Ms. Hopkin .-- ed that Wesley Woods is one of the few appraisers in Virginia who ywill give you a preliminary, t%zch is usually about $500. He already has the comps in the area i t he war -in. But whateve-cornxty you're in, if you call her, she'll tell you which appraiser w4k,,- lxa :-caunty. Ms. Hopkins stated if we're intere Front Royal. She doesn't have all i months. She'll let Chairman Kearns 4. Fundraising Efforts a. WWW.GIF'T'.®rt Chairman Kear'a b. Establishing nig Chairman Kearns is is the appf gy be right for I for F'redi e anything doing an outre enation yet, but Tomorrow:` t report on G1 FT. they have one planned in within the next couple of .mods th ft.glead a mepltxg with Mr. Richard Shickle, Chairman of the rs': ^_airarz Keasked Mr. Shickle if this would be a good time for a percage of the County's rollback taxes. Mr. Shickle doesn't feel that t,6 time _Nc,-wit1, however, talk to people about when they feel the timing eauest. S. CEAM­-Onbershlp -= Chairman> earns stated.,', re are four individuals who are interested in becoming CEA members and two of Ttin, ,are here today, Ms. Lisa LaCabita and Mr. Jeff Green. They briefly spoke about themselves. s �31- aabita stated that since there are three other people interested in becoming a member, she w©" defer to one of them. Mr. Green currently holds two easements in Frederick County and has worked with Conservation Partners, which was a very positive experience. Chairman Kearns thanked Ms. LaCabita and Mr. Green for their interest and for coming to the meeting. After a brief discussion, Mr. Solenberger made a motion to appoint Mr. Green to the Conservation Easement Authority. Mr. Marker seconded the motion and the vote was unanimous. Conservation Easement Authority Page - 172 - February 23, 2012 6. Next Meeting Date March 22, 2012 7. Other Chairman Kearns stated she attended a meeting of the Shenandoah Advisory Council last week. Along with Mr. John Gavitt's easement on Hogue Creek, Potomac Conservancy has closed on one easement and waiting to close on a second easement, close to Mr. Gavitt's property. This is due largely to Mr. Gavitt talking to his neighbors. They're working on a potential function with Shenandoah Catty and Frederick County to be focused on the Cedar Creek area. Chairman Kearns .,©u' -;members a brochure that Shenandoah County created showcasing the arts, agxculture <: lodging available in Shenandoah County to people who may not be aware of what Shenandoah County has to offer. It's titled "Unique Lodging Open House" and is scheduled for March 25 21I2� This is a one day open house, with each one being an individual dent. This is being prom by Shenandoah. County partnering with Virginia Living and She as doah CaV'ems. The Shenandoah RC&D, an agency which had `` government that totally got cut this year, is putting Basically, it's a half day clinic for eve who own pre levels of conservation. There being no further business, the meeting eivig funding from the federal "Women in Land" type seminar. id educating them on the different f:NOR Chairman Eric R. Lawrence, CEA Secretary Conservation Easement Authority Page - 173 - February 23, 2012