HomeMy WebLinkAboutres2002-040WHATCOM COUNTY COUNCIL AGENDA BILL
NO. AB2002 -337
CLEARANCES
Initial
FDale,
Date Received in Cmmd[ Office
Antonio Date
Assi n toed :
Originators Kra i9 0
/
1 L �� L f
AUG 3 " 2002
s I �,SttI'iNee 1C'f I�� 4
_ic�_oz
Natural ResourcelCouncil
Division I[vud Sylvia Goodwin
Dept Head: Hal H. Hart
Prosecutor: Karen Frakes
Purchasing /Budget
Executive:'�t�
SUBJECT: Resolution establishing Whatcom County's Agricultural Purchase of Development Rights (PDR) Program Guidelines.
ATTACHMENTS: Resolution and Program Guidelines
SEPA review required? ( ) Yes ( x ) NO
SEPA review completed? ( ) Yes ( ) NO
Should Clerk schedule a hearing ? O Yes, ( x) NO
Requested Date:
SUMMARYSTATEMENT:
Whatcom County, in conjunction with its Purchase of Development Rights Advisory
Committee, recently developed recommendationsfor the creation of a Purchase of
Development Rights program to preserve county agricultural land. Council, after
I eview of the PDR Advisory Committee's proposal directed PUS staff to develop a
PDR program. Program Guidelines have been developed to provide PDR
administrators direction for program implementation. A resolution authorizing the
use of the Program Guidelines and the Program Guidelines are attached.
Distribution Request
Indicate those who should receive a copy after Council
QC °on'
f. &(speck names to the right
ADS Facilities Management
ADSFinance
ADS Human Resources
ADS Info Services
Assessor
Auditor
Cooperative Extension
District Court
Executive
Pete Kremen
Health
Hearing Examiner
Jail
COUNCIL ACTION TAKEN:
2002 -337 9110/02: Amended ands
approved 5 -2, Nelson, Crawford
opposed, Res. #2002 -040
Relin
Related File Numbers:
Juvenile
Parks
Planning
Had II Hart
Prosecutor
Karen Frakes
Public Works
Sheriff
Superior Court
Treasurer
other
Ordinance or Resolu 'on Number /�
(this item): RES ' Z • V f%
SPONSORED BY: Planning
PROPOSED BY: Planning
INTRODUCTION DATE: 9/10/02
RESOLUTION NO. 2002 -040
ESTABLISHING WHATCOM COUNTY'S AGRICULTURAL PURCHASE OF
DEVELOPMENT RIGHTS (PDR) PROGRAM
WHEREAS, Whatcom County has been blessed with rich lands well -
suited for agricultural production; and
WHEREAS, persons and families belonging to the farming communities
of Whatcom County have skillfully developed these lands into productive
farms; and
WHEREAS, these productive farms have long served and still serve as
a crucial component of the economic and cultural life of Whatcom County;
and
WHEREAS, farming activity throughout the County has given rise to
and is dependent upon a complex web of support services and businesses,
the continued vitality of which is of great importance to both agriculture and
the broader community; and
WHEREAS, the people of Whatcom County treasure this rich
agricultural heritage and are willing to take necessary and appropriate
measures to promote its continuance as a vital part of this community now
and in the future; and
WHEREAS, maintenance of a healthy agricultural economy has positive
ecological implications, inasmuch as farming that employs good cultural
practices provides abundant open space and a productive landscape in and
upon which not only domestic animals but also wildlife thrive; and
WHEREAS, economic pressures have long beset agriculture as low
commodity prices force farmers to strive for further efficiencies in production
that generally result in more extensive use and intensive management of the
land under production; and
WHEREAS, farmland and forest represent large parts of our landscape
where the prospects are greatest for good cultural practices under which
various threatened and endangered species can thrive; and
WHEREAS, Ordinance #92 -002 enacted a property tax levy known as
the Conservation Futures Tax as authorized by RCW 84.34.230 to provide a
funding source to assist in acquiring open space, wetlands, farm and
agricultural land, and timber land; and
WHEREAS, it is the intent of Whatcom County to apply these funds in a
way that promotes and enhances the economic and ecological viability of
existing farms rather than replacing them with publicly -owned open space;
and
WHEREAS, the acquisition of conservation easements, including
development rights, on farmland is one way of advancing the purposes of the
Conservation Futures Fund, and of sustaining and promoting on -going
agricultural activity through fair compensation to owners of such land; and
WHEREAS, Resolution #2001 -049 authorized the creation of a
Purchase of Development Rights Steering Committee with the charge to
develop a PDR program for Whatcom County by April 30, 2002 and
authorized the County Executive to expend up to $30,000 for outside
contract assistance in preparing the PDR program; and
WHEREAS, Resolution #2001 -049 also committed the Council to
expend a fair and significant share of the Conservation Futures Funds for
acquiring interest in agricultural lands; and
WHEREAS, the Purchase of Development Rights Steering Committee
met regularly from September 2001 through April 2002 and forwarded a
recommendation in May of 2002; and
WHEREAS, Council reviewed the Purchase of Development Rights
recommendation from the PDR Steering Committee and requested PDS staff
to develop a Purchase of Development Rights Ordinance; and
WHEREAS, Council held a public hearing on September 10, 2002 to
take public comment on the Agricultural Purchase of Development Rights
Program; and
WHEREAS, the Purchase of Development Rights Ordinance authorized
the creation of Program Guidelines and required that all purchases be
conducted in compliance with rules and procedures as included in Program
Guidelines.
NOW THEREFORE, BE IT RESOLVED that the Council adopts the
Program Guidelines as attached hereto; and
BE IT FURTHER RESOLVED that the Purchase of Development Rights
Oversight Committee and Administrator will conduct all business in
compliance with these Program Guidelines as hereto attached; and
BE IT FINALLY RESOLVED that proposed changes to the Program
Guidelines will require a review and recommendation from the Purchase of
Development Rights Oversight Committee to Council, whom shall consider
such changes at a regularly scheduled Council meeting.
APPROVED this 10'h day of September, 2002.
ATTEST: WHATCOM COUNTY COUNCIL
WHATCOM COUNTY, WASHINGTON
Dana Brown -Davis L. Ward Nel o , Co cil Chair
Clerk of the Council
APPROVED as to form:
M&
figs Karen Fr es, Civil Deputy Prosecutor
WHATCOM COUNTY
PURCHASE OF DEVELOPMENT RIGHTS
PROGRAM
PROGRAM GUIDELINES
Approved by Whatcom County Council
September 10, 2002
TABLE OF CONTENTS
I. INTRODUCTION ........................................................ ...............................
II. PDR PROGRAM OBJECTIVE AND PRINCIPLES ... ...............................
III. ELIGIBILITY CRITERIA ........................................... ...............................
IV. SITE SELECTION CRITERIA ................................... ...............................
V. OVERVIEW OF PDR PROGRAM PROCEDURES ... ...............................
VI. CONSERVATION EASEMENTS ............................. ...............................
VII. OPERATIONAL PROCEDURES FOR ACQUIRING CONSERVATION
EASEMENTS................................................................. ...............................
VIII. CONSERVATION FUTURES FUND ...................... ...............................
APPENDIXA .................................................................. ...............................
......13
......19
......21
I. INTRODUCTION
These Program Guidelines are authorized under WCC Title 3.25A and serve as rules
and procedures for administering the Whatcom County Agricultural Purchase of
Development Rights Program.
The Guidelines serve two functions:
A. To provide an overview of the farmland preservation process for the property
owner. Specifically, this information can be found in Section V.
B. To establish the rules and operational procedures that the PDR Oversight
Committee and the Administrator must follow when operating a Purchase of
Development Rights program.
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II. PDR PROGRAM OBJECTIVE AND PRINCIPLES
Responding to the loss of County farmland, Whatcom County Executive initiated the
development of a Purchase of Development Rights (PDR) program in September of
2001. A PDR Advisory Committee comprised of farmers, citizens and conservation
organizations were instructed to assist County staff in developing a proposal for County
Council consideration.
A. Objective
In conjunction with other tools for protecting farmland, the Whatcom County
Purchase of Development Rights Program will contribute to sustaining the
farming enterprise in Whatcom County.
Principles
The PDR Program is to provide a strategic tool to protect critically located County
farmland.
Contribute to the Preservation of the County's Agricultural Land
Base
Encourage the retention of a critical mass of agricultural land to sustain the
farm - related businesses and activities that are necessary to support the
agricultural industry in Whatcom County. The PDR Program emphasis will
be:
a. Provide a buffer to encroachment of the agricultural core;
b. Consolidate and protect large areas of agricultural land; and
C. Address unique and regionally important farming activities outside
the agricultural core that are under pressure of development.
2. Develop Effective Program Design
Create a voluntary tool for the preservation of productive agricultural land
in the County that will:
a. Provide farmers with the market based economic value for
agricultural land without selling the land;
b. Support and promote ongoing agricultural activity by offering an
attractive option for farmers and landowners; and
C. Provide for ongoing monitoring and enforcement.
Leverage Program Impact and Efficiency
Enhance and support a coordinated approach to the preservation of the
agricultural land that will:
a. Create community support for agricultural preservation initiatives;
CADOCUments and Settings Wdminisirdto6l_ocal Settings \Temp \Program Guidelines Appendix A 9- 10 -02.dm
b. Complement and foster other County programs and policies to
preserve farming and agricultural lands; and
C. Leverage other public and private fund sources and provide or
increase property owner incentives.
CADocuments and SettingsWdministrdtcAl -ocal Settings \Temp \Pmgram Guidelines AppendixA 9- 10- 02.doc
III. ELIGIBILITY CRITERIA
A. PDR Target Areas
Twelve target areas have been identified to receive priority consideration for PDR
Program participation. These priority farmlands are located within designated
areas of Everson, Beard Road, Ten Mile Road, east Hemmi Road, Laurel, south
Custer, north Custer, Stein Road, west Lynden, north Lynden and northeast
Lynden, as shown in Appendix A. Preservation of these areas can establish a
perimeter of PDR farmlands against development encroachment into large blocks
of agricultural lands.
B. PDR Program Eligibility
Applications for PDR acquisition will be limited to the twelve PDR target areas
during the first two selection rounds (over a period of 1 year to 18 months).
Following the completion of two rounds, the eligibility criteria will be reviewed to
determine whether to purchase land outside the target areas. Two factors will be
important in this decision: 1. Availability of funding to expand the program and 2.
Advancement of PDR Program objectives. PDR target areas will continue to
receive preference over other farmland through weighted selection criteria.
All applicants for PDR Program participation must be within an Agriculture or
Rural zoning designation. Properties located in Urban Growth Areas are ineligible
to participate in the program.
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IV. SITE SELECTION CRITERIA
All valid applications will be reviewed to determine if the acquisition of development
rights will promote the PDR program's goals and priorities. Selection criteria have been
developed to guide, but not control, the review and assessment of eligible properties
during each selection round. The selection criteria awards up to 120 points. In all
selection rounds, valid and accepted offers on eligible properties of greater points shall
be considered for purchase with available funds before properties receiving lower
scores. The criteria which will be used to evaluate the applicants area as follows:
A. Enlarges or Buffers Preserved Farmland - 30 Points
Does farmland provide or enlarge a buffer between farmland and other uses?
Priority will be given to farmland providing the largest or contiguous buffers,
which help protect the integrity of the farm and farmland area from conflicting
non - agricultural use.
Maximum Points ( "a" rates highest, "c" lowest)
6 pts 1. Farmland buffers other agricultural land from direct development
pressure from Lynden, Everson, Bellingham and Ferndale UGA.
4 pts 2. Property size greater than or equal to 20 nominal acres.
8 pts 3. Land adjacent to existing farmland conserved by a public property
interest or farmland proposed for conservation.
a. Adjacent to conserved farmland or land proposed for conservation
b. Within 1,500 feet of conserved farmland or land proposed for
conservation
C. Within 2,500 feet of conserved farmland or land proposed for
conservation
6 pts 4. Size of potential combined (parcels) area conserved.
a. 120 acres within a 1/4 mile radius
b. 80 to < 120 acres within a 1/4 mile radius
C. 40 to < 80 acres within a 1/4 mile radius
6 pts 5. Number of existing development rights offered under current zoning
by the applicant for acquisition.
B. Long -Term Resource Value - 15 Points
To obtain points for long -term resource value, the application should provide information
on the farmland's long -term resource value. Evidence of long -term resource value may
include, but is not limited to, characteristics such as:
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1. Existing infrastructure (i.e.
irrigation,
drain tile,
maintain ditches, electricity,
etc.).
2. Percent of prime soil.
3. Percent of parcel farmed.
4. Active farming.
5. Farm conservation plan.
6. Economic productivity /farmland income per acre.
7. Water rights.
8. Other.
C. Threat of Conversion - 30 Points
Is the farmland threatened by immediate conversion or potential development?
Maximum Points ( "a" rates highest, "c" lowest)
8 pts 1. Imminent conversion sale.
7 pts 2. Surrounded by more intensive uses (e.g. Laurel).
8 pts 3. Proximity to UGA, incorporated city limits, or rural zone.
a. Adjacent to higher density zones
b. 1/4 to 1/2 mile from higher density zones
C. > 1/2 to 1 mile from higher density zones
7 pts 4. Proximity to state highways.
a. Fronts a state highway
b. Within 1,500 feet of state highway intersection
C. Within 2,500 feet of a state highway
D. Bargain Sale /Opportunities to Leverage Funds - 15 Points
A discounted price or other fund sources allow the County acquisition of
development rights at less than full market value:
1. 50% or less of full value.
2. 50% to 65% of full value.
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3. 65% to 80% of full value.
E. Special Considerations - 10 pts
The farmland provides strategic value towards the protection of other farmland in
the County and /or contains other site - specific characteristics not addressed
above, such as:
1. Heritage /historical significance.
2. Unique /specialty crop or sustains crop with unique soil requirements.
3. Farming activity is regionally significant.
4. Multiple conservation values (e.g. viewshed).
5. Other.
F. Bonus Points - 20 pts
Within the designated target area, PDR participation by one or more applicants
will result in the preservation of a significant amount of the farmland preserved in
the target area.
1. 90% or more farmland preserved.
2. 75 to < 90% of farmland preserved.
3. 60 to <75% of farmland preserved.
4. 50 to < 60% of farmland preserved.
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V. OVERVIEW OF PDR PROGRAM PROCEDURES
A. Selection Round Announcement
Step 1: The County shall begin each selection round by giving notice in one
newspaper of general circulation in each area where eligible lands are
located which may be acquired. The notice shall include the properties
eligible to participate in that selection round, the application process and
applicable timeframes and extensions.
The Administrator may identify each property with potential development
rights within the twelve target areas and provide written notification to the
property owners.
B. Application and Ranking
Step 2: Voluntary pre - application screening. Interested property owners may meet
with the County PDR Program Administrator (Administrator) to review their
eligibility and special circumstances, if any.
Step 3: Application. An owner of land eligible for PDR Program participation
submits and application for County acquisition of development rights. The
application must be submitted on the form provided by the County, on or
before the closing of the selection round.
Step 4: The Administrator reviews each application for completeness, determines
if the subject property meets minimum eligibility criteria and assigns a
preliminary score based upon the PDR site selection criteria.
Step 5: Upon closing of the selection round, the PDR Oversight Committee
reviews PDR Program applications and prioritizes proposed development
rights acquisition utilizing the selection criteria. Recommendations for
development right acquisition are prepared and forwarded to County
Council to approve, deny, or recommend modification.
Step 6: County Council confirms, denies or modifies the ordered list of parcels for
PDR acquisition and forwards the list to the Administrator for action.
Step 7: The Administrator estimates the number of appraisals that can be initiated
based on available funds and chooses the top ranked parcels from the
County Council's list of parcels. The property owner is notified in writing of
eligibility status.
Step 8: Property owners disputing their ranking may request a reconsideration of
their ranking to the PDR Oversight Committee within 14 days after
receiving written notice. The Committee shall review the reconsideration
request at the next regularly scheduled meeting. Special consideration will
be given if applicant modifies the original offer to include a bargain sale.
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The PDR Oversight Committee may, at its discretion, change the site's
rank, recommend the site for subsequent selection rounds, or deny the
request.
C. Title
Step 9: The Administrator initiates a title search. Closing is conditioned on the
resolution of all unapproved title exceptions, within the County's sole
discretion, which may require the receipt of subordination agreements or
payoff letter.
D. Negotiation and Appraisal
Step 10: The Administrator or designee initiates the informal negotiation process
with the property owner. At this time, the property owner may indicate a
minimum expected value. However, the application may be denied if the
administrator and the Oversight Committee determine the minimum value
to be unsupportable.
Step 11: The Administrator commissions an appraisal by a County authorized
appraiser to appraise the development rights value of the land proposed
for development rights sale. The development rights value is the difference
between the market value of full ownership of the land excluding buildings,
and the agricultural value.
Step 12: The appraiser submits the completed appraisal to the Administrator and
the Oversight Committee for their review.
Step 13: The Administrator or designee meets with the property owner to review the
appraisal, state the offer, review the conservation easement provisions,
agreement terms and conditions, and to answer the property owner's
questions.
Step 14: If the property owner believes that the farmland has not been adequately
appraised, the owner may, within the time allowed in the selection round
schedule, commission an appraisal at the owner's expense.
E. Offer to Purchase Easement and Agreement
Step 15: A written offer to purchase development rights based on appraised value is
made to the property owner following approval by the County Council.
Step 16: Within 30 days, the property owner accepts, rejects or makes a counter
offer. Counter offers will be reviewed and evaluated by the Oversight
Committee and the County's authorized appraiser.
Step 17: Property owners desiring to sell their development rights sign a Purchase
and Sale Agreement.
F. Adjacent Property Owner Notification
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Step 18: Neighboring property owners are notified that adjacent land is in the
process of being preserved.
G. Approval
Step 19: Review materials are presented to County Council for their review and
approval, rejection, or recommendation for modification.
Step 20: Review materials are sent to other participating entities for partially or
wholly funded conservation easements several days prior to any deadline.
I. Settlement
Step 21: Settlement will occur following County Council approval of transaction
terms and is contingent upon a title search and any other evidence, such
as a land survey, that may be necessary to establish clear title.
Step 22: Payment will be in full at time of settlement unless the County and
property owner agree to an installment sale.
Step 23: Checks are requested from the Finance Manager and settlement is
scheduled within a week or two of approval. Federal money is dispersed
according to federal regulation.
J. Recording
Step 24: The conservation easement will be recorded at the County Auditor's office.
The County or its designee will monitor the properties under easement at
least annually to ensure compliance with the easement.
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VI. CONSERVATION EASEMENTS
A. Description
A conservation easement is a legally binding document, which is recorded by the
County Auditor, forever restricting the property to agricultural and directly
associated uses, and for which compensation may be paid. As an easement in
gross in perpetuity, restrictions are binding upon the owner and future owners,
and run with the land.
B. PDR Program Conservation Easements
At the time of acquisition of development rights from a participating property, a
conservation easement is placed on the property permanently restricting
development of the site and protecting /preserving the agricultural values
associated with the site. The conservation easement must be signed by both the
property owner(s) and the County Executive or his /her designee and recorded
with the property records for the property.
Conservation Easement Requirements
Conservation easements shall be on a form approved by the Whatcom
County Prosecuting Attorney and shall meet the following basic
requirements:
a. The deed shall be in recordable form and contain an accurate legal
description setting forth the metes and bounds of the farmland area
subject to the easement (See Appendix B);
b. Restriction is granted in favor of Whatcom County, or if designated
by the organizations as defined in RCW64.04.130;
C. Restriction is granted in perpetuity, and shall bind existing and
future property owners; and
d. Unless specifically provided for, nothing in the restrictions shall be
construed to convey to the public a right of access or use of the
property, and the owner of the property, his /her heirs, successors
and assigns shall retain exclusive right to such access or use
subject to the terms of the easement.
Filing
After the conservation easement is signed and notarized, it must be
recorded with the Whatcom County Auditor's Office.
C. Conservation Easement Conveyance
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Conservation easements may be either donated or sold, or a combination of
both.
Conservation Easement Donation
a. A donation of a total parcel will not be subject to eligibility except as
below in section c. Partial parcel donation shall be considered
under the same rule as for development rights sales.
Notwithstanding the eligibility of the property, acceptance of a fee
interest or partial donation is within the discretion of the County
Council.
b. Whatcom County will accept voluntary donations or bequests of
agricultural development rights as perpetual easements in gross if
meeting eligibility criteria (except target area criteria) and within the
discretion of the County Council.
C. All properties offered for development rights donation must meet
the following minimum eligibility criteria:
1. The PDR Oversight Committee will consider each offer on a
case by -case basis, considering the property's consistency
with current and future land uses, and
2. The farm property must be at least 10 acres in size, and
3. Be in agricultural use or has not been irrevocably devoted to
a use inconsistent with agricultural uses, and that has a high
potential for returning to commercial agriculture, and
4. Consist primarily of productive agricultural soils (APO soils)
and,
5. Cannot be located within an Urban Growth Area.
2. Conservation Easement Sale
a. Whatcom County will purchase perpetual conservation easements
on qualified properties in accordance with the policies and
procedures of the Whatcom County Agricultural Purchase of
Development Rights Program, with Federal, State, County, and /or
private funds and any combination thereof.
b. All properties offered for conservation easement sale must meet
minimum eligibility criteria as contained in Section III.
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VII. OPERATIONAL PROCEDURES FOR ACQUIRING
CONSERVATION EASEMENTS
A. Selection Schedule
In the first and second selection rounds, eligible farmland within the twelve target
areas shall be eligible for purchase. Following the first two selection rounds, the
County Council will be determine whether other County farmland will be eligible
to participate in the PDR Program. (See Section III A &B).
B. Selection Round Announcement
Each selection round shall begin by providing notice in one newspaper of general
circulation. Application opening and closing dates will be determined by the PDR
Oversight Committee. The Committee shall have the discretion to extend
selection round deadlines and will provide public notice of the extension.
C. Application and Ranking
Property owner(s) voluntarily submits an application(s) to the County
during a publicized open selection round. The application must be
submitted to the County on the form provided by the PDR Program on or
before the closing date stated in the relevant selection round notice.
Applicants are to include at a minimum:
a. Name(s) and address(es) of the property owner(s) of the site;
b. Legal description and parcel number(s);
C. Copy of the property deed and title;
d. Total acreage of farmland to be included in the PDR Program;
e. Current land use and APO soils;
f. Number of dwelling units;
g. Description of the farming operation;
h. Other information necessary to evaluate property eligibility; and
i. Acknowledgement of intent to grant to Whatcom County a
conservation easement in a form provided by the County.
2. The Administrator shall review each application to determine
completeness and eligibility.
3. Upon closing of the application period, applications meeting all minimum
eligibility criteria shall be evaluated and scored by the administrator and
Oversight Committee according to the site selection criteria. (See Section
IV)
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4. The PDR Oversight Committee shall provide the County Council with a
recommended list, ranking all eligible applications for acquisition during
the selection round. County Council shall make the final prioritization of the
parcels.
5. The Administrator shall then arrange appraisals of eligible farmland
applicants in the priority order determined by the County Council.
D. Appraisal
Appraisals for
eligible properties
shall be conducted to determine
the value of
development
rights of parcels
in the order of its acquisition
priority until
acquisition funds are expended in
the selection round.
The appraisals are to be made by an independent appraiser qualified to
appraise agricultural land for development rights purchases. An appraiser
is deemed qualified if he or she possesses a State of Washington
certification as a real estate appraiser, MAI designation by the Appraisal
Institute (or equivalent), and at least five years agricultural lands appraisal
experience. Appraisers shall supply a narrative report, which contains
information as required by the Uniform Standards of Professional
Appraisal Practice (USPAP) and as specified in any contract with the
County.
2. An appraisal report is an objective report of market facts. The appraisal
report must estimate both the unrestricted fee market value, less the value
of buildings, and the agricultural value, of which the difference is the
development rights value.
3. Both values shall be based primarily on an analysis of comparable sales. If
comparable sales data is not available for agricultural lands, the appraiser
may use local farmland rental values or capitalized production values to
determine the agricultural values of the land.
4. The value of the buildings or other improvements shall appear in the
appraisal report; however, this value will not be considered in determining
the development rights value.
5. The appraiser shall report whether the subject property has any land use
restrictions, public or private and /or physical attributes, which limit the
developmental capability of the land.
6. The appraiser shall be advised that conservation easements are
perpetual. The perpetual nature of the easement shall take precedent over
any agricultural zoning status.
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7. The appraisal shall be in writing and may be discussed with the owners
prior to the submission of written offers.
8. If the property owner believes the property has not been adequately
appraised, the owner may, within the time allowed in the selection round
schedule, request that a review appraisal be made at the owner's
expense. This appraisal must be completed in accordance with the
guidelines set forth herein. If the review appraisal is not completed within
the allotted time, the application will be delayed to the following selection
round. If a review appraisal is completed, the appraisals are worked
through a formula to determine a new offer.
9. The maximum value of development rights purchased by the County shall
be no more than the easement value contained in an appraisal report. The
easement value is the difference between the farmland's market value and
its agricultural value.
E. Title and Survey Issues
1. The Administrator shall request a title report confirming that applicant is
the owner of the property and has unrestricted legal right to transfer the
development rights (i.e. there must be clear title to transfer the property).
The title report will be provided to the County Attorney for review.
2. All encumbrances (including but not limited to: liens, mortgages and
judgments) against the property must be subordinated, satisfied or
removed prior to development rights acquisition. Mortgage and /or lien
holder subordination and releases may be required acknowledging that a
conservation easement will be placed on the property and subordinating
their interest in the property to the deed restriction.
3. At settlement for a County or joint development rights purchase, the PDR
Oversight Committee shall provide a title insurance policy issued by a title
insurance company authorized to conduct business in Washington State
by the Washington State Office of Insurance Commissioner. The cost of
such title insurance shall be a cost incident to the development rights
purchase and is a reimbursable expense from the County's Conservation
Futures Fund.
4. It is the property owner's responsibility to survey (or provide a legal
description that meets specific standards) any exceptions from the
easement and any graveyards or cellular towers that may be located on
the property. It is the property owner's responsibility to provide a legal
description for any commercial operation on the farm that is not incidental
to the overall farming operation, in order to exclude it from the easement.
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Surveys
shall be
conducted
by a licensed surveyor in accordance with
state and
federal
regulations.
F. Development Rights Value and Purchase Price
The maximum value of development rights purchased by the County shall
be no more than the easement value contained in an appraisal report. The
easement value is the difference between the farmland's market value and
its agricultural value.
2. Development rights may only be purchased in perpetuity.
G. Recommendation of Development Rights Purchases by the PDR
Oversight Committee
1. The PDR Oversight Committee, in making recommendations concerning
applications and purchase offers, shall consider the following:
a. Evaluation according to the site selection criteria.
b. Consistency with County Comprehensive Plan (Rural and
Agriculture zoning designations).
c. Cost relative to total allocations and appropriations.
d. Proximity to other land subject to agricultural protection easements.
2. Upon receiving the recommendations of the PDR Oversight Committee
and the Administrator, the County Council shall review the
recommendations and shall take final action to authorize or deny
proposed purchase terms and offers.
3. If a farm is approved for development rights purchase, the Administrator
will meet with the property owner and review the terms, conditions and
amount of the County's offer. A written offer will be provided to the
property owner. Written notice shall also be provided to farmland not
approved for development rights purchase during the current application
round.
4. Within 30 days of receipt of a written offer from the County an applicant
must indicate in writing which of the following actions they intend to
pursue:
a. Accept the offer.
b. Reject the offer.
1. Reject offer outright
a. no further action
b. participate in next round
2. Submit a counter offer within 90 days of written notice of
offer by the County.
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C. Failure to notify the County within 30 days shall constitute rejection
of the offer.
5. If the offer is accepted, the Administrator shall prepare a Purchase and
Sale agreement. USDA Funds must be paid as lump sum. The method of
payment shall be specified from the options listed below:
a. Lump Sum
b. Installment Purchase Agreement (IPA)
C. Like -Kind Exchange
d. Or a combination of the above
6. For development rights purchase utilizing the Installment Purchase
Agreement (IPA) program, the County Council at settlement shall provide
an opinion of legal counsel that the County's obligations to make
installment payments of principal and tax - exempt interest over time are
legal, valid, and binding. And that such payments are a general obligation
of the County for which its full faith, credit, and taxing power are pledged.
Interest paid by the County is exempt from federal income taxes.
7. All Agreements of Sale and Conservation Easements require the County
Council's approval.
H. Grant of the Agricultural Protection Conservation Easement
Before the purchase of development rights can be finalized, a conservation
easement in a form approved by the County Attorney and consistent with the
policies of the PDR Program guidelines, must be placed on the property
permanently restricting development of the site and preserving its agricultural
values.
The principal interest of the County is to ensure that agricultural lands are
preserved and subsequently stewarded in a manner that maintains and enhances
their farmland values. There may be some instances where there is a public
interest in another public entity or non - profit organization to hold the conservation
easement, for continued stewardship and protection of the land. The County will
consider:
The preferences of the donor or seller;
2. Administrative, monitoring, and enforcement issues associated with the
conservation easement and the resources available to address these
issues;
3. Requirement of Federal, State or County funding sources utilized to
purchase development rights.
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Development Rights Purchase Recommendations /Submission
Requirements
1. County Council: Each recommendation for development rights purchases
with County funds, State funds, Federal funds or a combination of funds
shall be presented to the County Council at a regularly scheduled public
meeting.
2. Letters of Notification: Letters of notification for development rights
purchases will be sent to adjoining property owners by the Administrator.
3. All eligible applications not selected for PDR Program participation may
choose to be reviewed during the next application round or withdrawn.
Within 30 days following receipt of written notice from the county, the
property owner must notify the administrator in writing requesting review in
the next selection round.
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VIII. CONSERVATION FUTURES FUND
A. Intent
This fund was established in 1992 to be used solely to acquire right and interests
in open space land, farm and agricultural land, and timber land, so as to protect,
preserve, maintain, improve, restore, limit the future use of, or otherwise
conserve the property for public use and enjoyment.
B. Fund Sources
This Conservation Futures Fund is funded by a real property tax applied to all
real property within Whatcom County at a rate of six and one - quarter cents per
$1,000 of assessed valuation.
C. Fund Source Accounts
Council shall annually consider an allocation of Conservation Futures Fund to be
placed in a Purchase of Development Rights Account.
D. Installment Payment Fund
1. The intent of installment payment funds, which are established by the
County, is to encumber and invest committed funds for which recipient
property owners have elected annual installment payments for a period,
which may very according to the wishes of the property owner.
2. The full consideration of any transaction for which installment payments of
five years or less have been elected shall be placed in the fund, less the
amount of any first installment to be paid at settlement. This amount shall
be invested and annual installment payments shall include the interest
accrued.
3. Annual installment payments shall be made on or before January 201h of
each year.
4. A property owner may enter into an Installment Purchase Agreement for
fifteen (15) to thirty (30) years at an interest rate to be negotiated between
the property owner and the County. The property owner will receive semi-
annual interest payments that are tax exempt. Principal will be paid in one
lump sum at the end of term. The property owner will also receive a
security representing the Installment Purchase Agreement. The property
owner may sell or assign this Agreement.
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E. Public Expenditures
All public expenditures from the Conservation Futures Fund are subject to
approval by Whatcom County Council and will be made in accordance with
approved disbursement procedures.
2. Expenditures from the PDR Program Account shall be limited to interests
in qualified agricultural land participating in Whatcom County's Agricultural
Purchase of Development Rights Program.
3. The annual appropriation to the PDR Program by the County Council shall
be available for the calendar year in which the appropriation was made
and or the subsequent calendar year.
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APPENDIX A
Target Areas
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