CONSERVATION EASEMENTS

CONSERVATION EASEMENTS George F. Smith Christopher D. Clark University of Tennessee • BASICS • POTENTIAL CONSEQUENCES –LANDOWNER –EASEMENT HOLDER –COMMUNITY SOME BASICS • Property Ownership is a Collection of Individual Rights Rights Can Be Separated –Right-of-Way –Lease - Easement CONSERVATION EASEMENT • Legal, Voluntary Agreement That Restricts Development. • Holder “Acquires” Only The Rights Relevant To Its Goals. • Landowner Retains All Other Rights. • Runs With The Land. LAND TRUSTS • Private, Non-Profit Organizations • Hold Property or Interest in Property in Trust • For the Public Good OWNERSHIP • Deep Pockets • Generous Landowners CONSERVATION EASEMENT • Alternative to Ownership CONSERVATION EASEMENT • LEVERAGE FUNDS • FLEXIBLE –Rights Granted –Area –Duration WIN – WIN - WIN LANDOWNER’S VIEW • PRESERVE LAND USES • INCOME • POSSIBLE TAX BENEFITS –PROPERTY TAXES –INCOME TAXES –ESTATE TAXES AGENCY or TRUST’S VIEW • MAINTAIN DESIRABLE LAND USES • AT LOWER COST THAN OUTRIGHT PURCHASE COMMUNITY’S VIEW • SERVE PUBLIC INTEREST • PRESERVE PUBLICLY DESIRABLE LAND USES GROWTH • 1950 – about 50 land trusts • 2003 – over 1,200 • 1988 – 290,000 acres • 2003 – over 5 million acres FLEXIBILITY MAY BE LIMITED AGENCY or TRUST’S INTERESTS TAX BENEFITS “PERPETUITY” UNDERSTAND EASEMENT’S TERMS –“AGRICULTURAL USE” –FUTURE DECISIONS –PUBLIC ACCESS LANDOWNER • LONG TERM FLEXIBILITY • INFRASTRUCTURE • FUTURE BORROWING POWER • COMPATIBLE & STABLE PARTNER • IMPACTS OF INCREASED PROPERTY VALUES TRUST or AGENCY • ENFORCEMENT COSTS • MANAGEMENT PLANS • IMPACTS OF SURROUNDING DEVELOPMENT • NATURE IS DYNAMIC • INSTITUTIONS ARE DYNAMIC COMMUNITY • MISUSES • IMPACTS ON OTHER LANDS • TAX REVENUES • CHANGING VALUES • MODIFY OR INVALIDATE TERMS ? • POPULAR –PRESERVE LAND USES –INCOME &TAX BENEFITS –PUBLIC USE VALUES • NEW, UNTESTED INSTRUMENT –TAILOR TO SPECIFIC CASE –FLEXIBLITY • COMPETENT PROFESSIONAL ASSISTANCE “FARM AND FORESTLAND PRESERVATION WITH CONSERVATION EASEMENTS” http://economics.ag.utk.edu/ pubs/policy/SP646.pdf COMMENTS? QUESTIONS?