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HomeMy WebLinkAboutord2000-018WHATCOMCOUNTY COUNCIL AGENDA BILL NO. 2000 -173 CLEARANCES ungmaror: Eracuave a fwe Imhof Dto /d Date Receivedin C tmci(Opce R - W L S APR 1 1 2000 WHATCOMI COUNTY COUNCIL Agenda Doh 4118 Assignedto: Intro ,ivicon Hmd.. SEPA review completed? ( 511 Finance Committee; Council Dept Head DVDept Requested Dale: Prosernrar hdL4 4 l0 Purchming/Budget ®ps camea s 400 Zuuu Supplemental isuaget Request n5 SEPA review required? ( ) Yes ( ) NO Should Clerk schedule a hearing ? ( ) Yes ( x ) NO SEPA review completed? ( ) Yes ( ) NO Requested Dale: Supplemental #5 requests funding: From the Conservation Futures Fund: (f) To appropriate $750,000 to Parks for purchase of timber rights¢om Goodyear Nelson Hardwood Lumber Co., Inc. Indicate those who should receive a copy after Couxilaction List spechic rrawes to the right 2000-173 1118/2000: inftWuced Ordinance or Resolution Number 5/2/2000: Adopted Gi, Hcmg opposed, Ore. #2000 -018 (Ihis ftem Omar a= 009 SPONSORED BY: Consent PROPOSED BY: Executive INTRODUCTION DATE: 4/18/00 ORDINANCE NO. 2000 -018 AMENDMENT NO. 5 OF THE 2000 BUDGET WHEREAS, the 2000 budget was adopted November 23, 1999; and, WHEREAS, changing circumstances require modifications to the approved 2000 budget; and, WHEREAS, the modifications to the budget have been assembled here for deliberation by the Whatcom County Council. NOW, THEREFORE, BE IT ORDAINED by the Whatcom County Council that the 2000 Whatcom County Budget Ordinance #99 -083 is hereby amended by adding the following additional amounts to the budgets included therein: ADOPTED this 2 day of May , 2000. APPROVED AS TO FORM: WHATCOM COUNTY COUNCIL WHATCOM COUNTY. WASHIN( Chair ) Denied P men, County Executive Civil Deputy Pr utor Date:.s�p"'00 hwundhsupp2000_5 Expenditures Revenues Net Effect Conservation Futures Fund Parks 750.000 0 750.000 Total Cons Futures Fund 750,000 0 750,000 Total Add'I Supplemental 750.000 0 750.000 ADOPTED this 2 day of May , 2000. APPROVED AS TO FORM: WHATCOM COUNTY COUNCIL WHATCOM COUNTY. WASHIN( Chair ) Denied P men, County Executive Civil Deputy Pr utor Date:.s�p"'00 hwundhsupp2000_5 WHATCOM COUNTY Summary of the 2000 Suoolemental Budaet Ordinance No. 5 Department/Fund Description Increased (Increased) Net Effect to Expenditure Revenue Fund Balance (Decrease) (Increase), Decrease Conservation Futures Fund Parks To provide $750,000 to 750.000 0 750.000 purchase timber rights from Goodyear Nelson Hardwood Lumber Co., Inc. Total Cons Futures 750,000 0 750,000 Fund Total Add'I Suppl 1 0 750.000 0i uns anmum $6 is irom Generai Fund suppiememai reserve daiance in zwu. Whatcom County Budget Modification Request Department Parks 6 Recreation Requested by Roger A. DeSpain The following budget modification is requested: (check one) — Budget Transfer' A—,' Budget Supplemental" Source: (Accounts to transfer FROM or funding source for supplemental) can Center Axt Number Descnptm Amount 17500 2910.1000 Conservation Future Fund 750,000.00 Balance Accounts to Increase: $750,000.00 Calf Center Acct Number Description Amount 17500 7320 Purchase Timber Rights 750,000.00 $750,000.00 Purpose of Transfer or Supplemental: (If more room is necessary attach additional sheet.) Goodyear Nelson Hardwood Lumber Co. Inc. - Purchase Timber Rights. Authorizations: Department Head Date 3 °? UU Executive's Office Date Date Posted By Transfers affecting salaries, benefits or capital accounts must be authorized by the County Execduve: Transfers affecting other objects do not need Executive approval Supplemental budget requests, it approved by the Executive will be forwarded to the County C ncil (or autWor zatio`ti audget modification.xls 2/24/99 Be WHATCOM COUNTY o� ROGER A. DESPAIN PARKS & RECREATION Director 3323 Mwnt Baker Highway ROBERT I- BUNNETT Beningham WA 982269522 Reveation & Senior Services Supervisor [ABBY B. SIMKINS Parks Operations Supervisor To: Pete Kremen, Whateom County Executive Whatcom County Council i From: Roger A. DeSpain, Parks and Recreation Director Subject: Purchase of Timber Rights from Goodyear Nelson Timber Date: March 10, 2000 The Whatcom Land Trust has informed my office today with great news. They have been successfully in receiving a $500,000.00 donation towards the purchase of Goodyear Nelson timber rights. If you recall, this is the timber on the land Whatcom County received through a land transfer from the Department of Natural Resources 12/29198 (see Attachment "A7- Map). I have been worried about various funding sources to purchase these timber rights over the past two years (see Attachment B - News Article). Facts and Background: Whatcom County received 214 acres of land, originally owned by Goodyear Nelson Timber through a DNR's Trust Lands Transfer. Using the Trust Lands Transfer there were no costs for the land to Whatcom County. Based on the land appraisal for Nesset Farm Park three years ago, which abuts this property, was at $3,200 per acre. This would place the Goodyear Nelson land cost at approximately $685,000.00. Goodyear Nelson retained the timber rights in this transfer, which they valued at 2.4 million dollars. If they were to•cut all the timber they own, the result would be in a clear cut of approximately 200 acres. In June of 1999, Parks and Recreation retained the services of International Forestry Consultants, Inc. They conducted the timber crews for establishing the timber values. International Forestry, Inc. placed the total timber value at $1,700,000 (see Attachment "C" - Report). They divided the total into two parts; harvest units and retention area to allow us to look at other options for purchase. Memo to Pete Kremen, County Executive and Whatcom County Council Page 2 March 10, 2000 Over the past two years Whatcom Land Trust and Parks and Recreation have negotiated with Goodyear Nelson Timber, Inc. to bring the final cash out total to $1,250,000.00. This is $450,000.00 less, which Goodyear Nelson Timber's believes is their operational costs for the harvest. Whatcom County's Conservation Future Fund will.be over 2.1 million dollars after April 30i6. These funds have been used to purchase timber rights in the past. Whatcom Land Trust has been successful in obtaining a donation of $500,000.00 from an anonymous donor. There is a restriction with these funds that no timber harvesting other than park development can occur. Whatcom Land Trust requires a conservation easement be placed on the Goodyear Nelson Land. This easement is consistent with other park lands, Nesset Farm Park, Canyon Lake Community Forest, Teddy Bear Cove, Chuckanut Mountain, and Squires Lake Park. If Whatcom County were to purchase the entire Goodyear Nelson land and timber, the cost would have been $2,384,800. The total cost to Whatcom County by the offset of the land transfer, anonymous donation is $750,000.00, or a savings of $1,634,800. Recommendation: To allow $750,000,00 of the Conservation Futures Fund to be used with the Whatcom Land Trust's $500,000.00 donation to the purchase of the Goodyear Nelson Timber rights for a total of $1,250,000.00. R A. D. Enclosure ATTACMENT "A" 1al W ci IAI e 4 co 11 ` i ! / O� Also V 1i � •_� � ' L� 00' �i'• 14 _ pig _ p _ r to �:• o � 194 W Park threatened wtatoxn and the WlNregn Isrid icon nuut mice S1T5 malgn bJ Me eM of amrch re pmvaLL of a 20Haoe lomhcr Ignwst¢ad ri me eortRegi Regional arre South Fort Hegiehml Part lormer homestead county land Nessel farm New park in danger of being treeless BY AffBREY WHEN THE BEW NGHAM HERAJJD Whatcom County and the Whatcom land Trust must come up with 51.25 million by the end of March to save the tees on 204 acres of county forest intended to be Pan of a 602 -acre park near Acme The former homestead along the South Fork of the Nooksack River was pan of a land swap between the state Department of Natural Resources and the Goodyear Nelson Hardwood Lumber Company Inc. three years ago. But the land that Goodyear Nelson traded way contained more trees and older trees Nun the land they got, so the company kept timber ,fights to two properties — including the former homestead. "It wasn't our idea to have the timber reserve there. but in trying to accomplish a land exchange with tire state, you pretty much take their tcnns: said Paul Kreger, resource manager for Goodyear Nelson. ?hey told me that they had calked to the county and treeless r— m<d ban Pays At they were going to get a piece of Property with ntrmps on ii Whatcom County Parks and Recreation Director Roger De- Spain said county offcists knew We company had the right to some logging on the property, which is north of the cowry- owned Nesset Farm, but did not Initially realize the extent of that logging. 'What 1 drought would be some and what (the DNR) thought would be some and what the tim. her company thought would be some were very, very different' DeSpain s iid.'B they were to log everything they own, it would be a stump park.' Dick Olsen, Baker District manager for the DNR, said the Goodyear Nelsons timber rights were clearly spelled out in the land -trade agreement but the value of those rights was not He said the negotiations with Goodyear Nelson almost fell apart as it was and the DNR could not have gotten the land for the cowry without reserving wn. ber rights "They wanted the property however they could get it, and this was the best we could do,' Olsen said So county and Iard Trust offi cials suned negotiating with Goodyear Nelson to buy the tbry her rights, and agreed to pay the company $125 million. T s a bargain in my cmm- ion Kriegel saki.'O ar inventory slowed S22 million worth of mn- ber there Kregel expected so close the deal and get the S 1.25 million in the first week of December, but county and Land Trued officials thought they had until This spring. Kriegel said the company will go ahead with logging if it does trot get paid by the end of March He said he is eager to complete the sale because the timber rights wBl reven to the DNR on Dec. 91, 2002, and the company would have to sun logging the land soon to finish by then. 9bati not something we want to do, but we have commit- ments,' he said. '1 expected to have the money th December.' Land Truitt Conservation Direr tor Gordon Scott said the Uvst is asking private foundations and individuals to supplement county Conservation etatures ew money to help buy the limb righrs, but has not yet stt a for raising goal. Scott said the property cc tairis nearly 6.000 fm of hours along the South Fork of t Nooksack River, a series of w, lands and Pond Creek, which home to cuttl xon out and fee cool, clean water into the sou Fork at a critical point for salmi spawning. County officials plan to bun the public road to the Nun Farm through the property, a may build parking there for t farm 'Ifs a very important backdr to the Nesset itself; Scott sa We think it would be a much b Let experience for the public come through a complete for, rather Nan a complete clear ct Reach Aubrey Cohen at acenor bellmilh.gannen.cum or 715.22W %Gah�C ATTACHMENT "B" ATTACHMENT "C" APPRAISAL MERCHANTABLE TIMBER GOODYEAR NELSON WHATCOM COUNTY PARKS JUNE 17, 1999 PREPARED FOR Whatcom County Parks Dept. Bellingham, Washington June 25, 1999 INTEWINTIONAL FORESTRY CONSULTANTS, INC. .s. INTERNATIONAL FORESTRY CONSULTANTS, INC. ! N =F 0 1729 208th Street S.E. 0201 Bothell, WA 98012 U.S.A. (4251398-8830 FA% (125) 3980930 June 25, 1999 Mr. Roger DeSpain Director Whatcom County Parks and Recreation Dept. 3373 Mount Baker Highway Bellingham, WA 96226 -9522 Re: Goodyear Nelson Timber Dear Mr DeSpain: Attached is the Umber appraisal report for the Goodyear Nelson Property in sections 15 and 16 T37N R5E along the Nooksack River. In my opinion the total fair market value of the merchantable timber is Harvest Units: S 755,000 Retention Area: S 9351000 Total Area: $1,700,000 If you have further questions, please do not hesitate to call. Sincere!Y, Thomas M. Hanson President TABLE OF CONTENTS - page LETTER OF TRANSMITTAL t PART I INTRODUCTION TABLE OF CONTENTS ............................................................... ............................... 1 APPRAISER'S CERTIFICATION .................................................. ..............................3 SUMMARY OF SALIENT FACTS AND CONCLUSIONS ............. ............................... 5 Dateof Appraisal: .............................. q ...... m ... M ........ M ..................... ... M ...... 5 Description of Property ..................................................... ............................... 5 Assessment and Taxes ........... .............. .. ............ : ..................... .................. .... 5 Indications of Value: .............. m ......................... m ...... M ........................... M ... M— ..... 5 Conclusion of Value: ... m ..... m ... m ..................... -- ...... ......... M .............. m ....... 5 PHOTOGRAPHS OF SUBJECT- ... m ...... m ....... mm ..................... ..... m ................ m ......... 6 ASSUMPTIONS AND LIMITING CONDITIONS ............................ ..............................7 REFERENCES............................................................................ ............................... 8 Date of Opinion of Value, .... m— ........ ........................ m ............... MM .............. M ...... 9 Purpose of the Appraisal .................................................. ............................... 9 Function of the Appraisal ................................................. ............................... 10 Property Rights Appraised.. ................. .................. mm ..... M ... —M—m .......... M ......... m 10 Property Location and Description ................................... ............................... 10 FACTUALDATA .......................................................................... ............................... 11 LegalDescription ............................................................. ............................... 11 Statement of Ownership and History of the Subject Property ......................... 11 Assessment and Taxation ................................................ ............................... 11 Inspection of the Subject Property ................................... ............................... 11 Page 1 INTFRNATIONAI FORF.RMY C.ONSIII TANTS. INC. RegionalAnalysis ............................................................. ............................... 11 Neighborhood Analysis .................................................... ............................... 11 Merchantable Timber ....................................................... ............................... 12 Timber Harvest Conditions ............................................... ............................... 12 HIGHEST AND BEST USE ANALYSIS ....................................... ............................... 13 THE APPRAISAL PROCESS ...................................................... ............................... 14 Income Capitalization Approach ....................................... ............................... 14 Timber.................................................................. ............................... 14 Summary.............................................................. ............................... 16 Sales Comparison Approach ............................................ ............................... 16 Timbervalue ......................................................... ............................... 16 C. Summary .......................................................... ............................... 19 DISCUSSION AND RECONCILIATION OF VALUES .................. ............................... 20 PART IV ADDENDA Addendum I— Maps Addendum 11— Timber appraisal calculations Addendum III — Comparable sales Addendum IV — Qualifications of appraisers Page 2 INTFRNATIONAI FORFSTRY CONS11I TANTS. INC. APPRAISERS CERWICATION I certify that, to the best of my knowledge and belief, the reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Apprisal Practice of the Appraisal Institute. I certify that the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. I certify that to the best of my knowledge and belief: • The statements of fact contained in this report are We and correct • The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions and conclusions. • 1 have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event • My analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. • I have made a personal inspection of the property that is the subject of this report • No one provided significant professional assistance to the person signing this report Page 3 INTFRNATIONAI FORFSTRY r.ONSIII TANTS, INC. My conclusion of value for the subject timber property is Harvest Units 1 and 2 -$755,000 Retention Unit $935,000 Total Property $1,700,000 Respectfully submitted, INTERNATIONAL FORESTRY CONSULTANTS, INC. Thomas M. Hanson ACF William B. Wallace MF, ACF, RPF Certified Appraiser- General #270 -11 WA- LL- AW- B670BZ INTFRNATIONAI FORFSTRY CONSIII TAMS. INC SUMMARY OF SALIENT FACTS AND CONCLUSIONS Saxon Parcels: Harvest Units 1 and 2 - Retention Unit Date of Appraisal: The merchantable timber on the property is appraised as of June 17, 1999. Description of Propertv: The property appraised is the merchantable timber on sections 15 and 16 Township 37 North Range 5 East in Whatcom County Washington, owned Goodyear Nelson Lumber Co. Assessment and Taxes The property is Classified Forest Land. Tax on timber is paid as an excise tax at the time of harvest Indications of Value: Income Capitalization Approach Parcel HARVEST UNITS1 AND 2 —$ 632,592 Parcel RETENTION UNIT— $ 789,457 Sales Comparison Approach Parcel HARVEST UNITS 1 AND 2 — $ Parcel RETENTION UNIT— $ 937,350 Conclusion of Value: Parcel HARVEST UNITS 1. AND 2— $ Parcel RETENTION UNIT— $ 937.350 Entire Property— $1,700,000 Page 5 INTFRNDTIONA1 FORFSTRY CONCNI T4NTS INr..