Preserving Quality of Life Calvert County, MD by yki36928


									Preserving Farm and
Forestland in Calvert
    County, MD
        Overview of Presentation
•   Why preserve land?
•   Can we preserve land and protect land equity?
•   What State programs are available?
•   How does the County program work?
•   What options are there for selling TDRs ?
•   Are we being successful?
•   Who to contact for more information?
• To preserve farm and forest industries.
• To have local fresh food and other farm
  and forest products.
• To preserve the rural character of the
• To protect environmental and cultural
Calvert County early 1970’s
     Population Growth & Land Preservation/Growth
                 Management Initiatives
80,000                                               PAR
                                        Mandatory    1995
70,000                                   Cluster
                                                                     20 acre w/
60,000                                                               TDR buy-
                                                                     back 2003
                                                             10 acre w/
40,000                                                       TDR buy-
30,000                                   1988                  back,
                                                           leveraging &
20,000                     County
                5 acre      TDR
10,000          zoning      1978
         9 70

                    9 75

                            9 80

                                      9 85

                                             9 90

                                                    9 95

                                                              0 00

                                                                       0 05
Dunkirk   Owings

                     North Beach/
                                 Calvert County Zoning
                   Chesapeake Beach

                                         Farm and Forest Districts

                                         Rural Community District
             Prince Frederick

                         St. Leonard
                                         Town Center



         Current Situation in Rural Area
not developed,
not preserved
                                             P ar
                                            Ope ks &
                                               n Sp
                                        us         ac e          preserved
                                         ert W      etla
                                              Op         nds
     34%                                           en
  Low density

       107,000 total acres in Rural Area (76% of total land area)
Can We Preserve Land and Protect
Land Equity?

What Factors Affect Land Value?
 h Topography
 h Farm Productivity
 h Road Access
 h Adjacent property uses and views
 h Market pressures
 h Allowable zoning density
 Land preservation programs separate the
“development rights” associated with zoning
from the “residual or farm value.” Thus
owners can sell the development potential,
without selling their land.
                 Average Per Acre
             Development Rights Values
                                                       TDR Values
             2001   2002   2003   2004   2005   2006
Development Right values have grown steadily, particularly in the last
few years, mirroring the increase in land values. The highest price thus
far is $11,000 per Development Right.
  What Programs Are Available?
• State Programs
  – Maryland Agricultural Land Preservation Foundation
  – Rural Legacy
  – Maryland Environmental Trust
• County Program / Transferable Development Rights
  for Residential Density or Forest Conservation
  – Private Market
  – County Purchase and Retirement Fund
  – County Leveraging and Retirement Fund
                 ACCESS *
MALPF Program
• Created in 1977
• One of first state farmland preservation
  programs in the country
• First easement purchased in 1980
• By June 2006, over 250,000 acres protected
  on approximately 2,000 farms
• Lump sum payment for easement
• State Installment Purchase Agreements
MALPF Program
• State-County partnership program.
• MALPF’s primary purpose is to preserve
  productive agricultural land and woodland
  in Maryland to provide for the continuing
  production of food and fiber for the citizens
  of Maryland.
• Two-step program: five-year district is a
  precondition to be eligible to sell a
  perpetual easement to the Foundation.
MALPF Program
• Property eligibility is based on 3 criteria:
   – Location – must be located outside of a 10-year
     water and sewer service area.
   – Size – must be 50 acres or larger or, if smaller,
     be located contiguous to already preserved
   – Productive Soils – must have 50% or more
     USA soils classification Class I, II, and/or III
     and/or Woodland Group 1 and/or 2.
  Rural Legacy
• State began program in 1997
• Encourages local governments and private
  land trusts to identify Rural Legacy Areas and
  to competitively apply for funds
• Easement and fee simple purchase
• Calvert County has two Rural Legacy Areas:
  North Calvert & Calvert Creeks
• Protected 1,635 acres in Calvert County
  Rural Legacy

• Easement does not grant public access. Owners
  who offer public access get higher ranking &
  easement value if it is offered.
• Lump sum payment for easement
• Property must be located within a designated
  Rural Legacy Area: North Calvert or Calvert
• Owner needs to indicate interest to be on
  eligibility list
Rural Legacy
• Partnership among State, County and local
  land trusts.
• American Chestnut Land Trust
• Battle Creek Nature Education Society
• Calvert Farmland Trust
• Cove Point Natural Heritage Trust
• Southern Calvert Land Trust
Environmental Trust
• Preserved 900 properties
  totaling over 115,000 acres
• Preserved over 700 acres in Calvert County
• Owner donates perpetual conservation easement
• Benefits – tax deduction & estate planning
• No deadline; however, if owner wants to donate in
  a particular year, must submit by September. For
  appreciated property, donations by an IRS
  qualified farmer/rancher made in 2007 allow up to
  100% of Adjusted Gross Income for up to 16
  years (MET Tax Benefits handout)
County Agricultural
Land Preservation
•   Established in 1978
•   Preserved over 17,600 acres
•   Original goal to preserve 20,000 acres was met
•   New goal: preserve 40,000 acres
                How Does the
            County Program Work?
• Owners enroll into an Agricultural Preservation District,
  a 5-year commitment.
• Owners apply to “certify” the number of development
  rights they have.
• Benefits: sell the “development rights” and retain the
  “residual or farm value” of land, which usually includes
  the ability to have a farm house, and up to three lots,
  depending on farm size.
• The “development rights value” + “the residual value”
  can meet or exceed the market value of the land.
Three options for selling Development Rights

      1. Transferable Development
             Rights - TDRs

                       5 TDRs per Additional lot

            Farm and Fores t                        fer
                                             Trans zones in Rural
          and Rural Community             Community and Res   idential
                Dis tricts               Districts and in Town Centers .

   Farmers sell their development rights to developers who can
   build more houses on lands that they are developing.
What about the Receiving Areas?

We’ve had dozens of successful projects, from single-family projects to
multi-family--some of the nicest housing communities in the County.
Forest Conservation TDRs

• 95% of Maryland was forested in the
  early 1600s. By 1950, Maryland’s
  forest cover had fallen to 46%.
                     (MD DNR 2006)

• Calvert County had the highest
  percentage of loss in the State
  between the years of 1985 – 1990
  with more than half due to new
  residential and commercial
  construction activities.
Forest Conservation TDRs

• State law adopted in 1991
• Objectives of the law:
  –   Minimize the loss of forest land
  –   Ensure that the best forests are retained
  –   Identify the best areas for reforestation
  –   Establish long term protection for these
      forested areas
Forest Conservation TDRs

• To meet the Maryland Forest
  Conservation Act, developers
  (mainly commercial) and
  governments often need to mitigate
  forest loss on their site by replanting
  or by permanently preserving
  existing forest elsewhere.
Forest Conservation TDRs
• APD owners willing to reserve lands
  permanently for forest retention may sell
  Forest Conservation TDRs from those
  properties. Covenants allow timber
  harvests and tree clearing only with an
  approved Forest Management Plan.
  Covenants prohibit building, grading,
  road/utility line siting or construction.
• A plat must be recorded to denote the
  Forest Retention Area.
Three options for selling Development Rights

          2. Purchase and Retirement
                 (PAR) Fund

                              Development Rights

         Calvert County purchas and retires up to 10
         development rights from willing land owners thus
         preserving the land and reducing residential density.

     This option reduces the number of houses to be built in Calvert.
Three options for selling Development Rights

       3. Leveraging and Retirement
               (LAR) Fund

                             Development Rights

       Calvert County agrees to purchas and retire all of the
       development rights as per an installment purchas e
                                  o                     t
       agreement. The County als pays tax- free interes on
       the money until the end of term of the agreement.
    This option reduces the number of houses to be built in Calvert.
      How Does One Apply to the
         County Program?
• Owner submits an application to the Agricultural Preservation
  Advisory Board (APAB) for an Agricultural Preservation
  District (APD).
• APAB reviews application based on the standards in the
  “Rules and Regulations.”
• If approved, County prepares a recording form for the owner
  to sign and County records it in the land records.
• Owner may apply to the County Commissioners to certify the
  number of development rights.
• An owner may sell Development Rights via the private TDR
  market or the County’s Purchase and Retirement Fund or
  Leveraging and Retirement Program.
What is the Process to Sell TDRs?
• For the private TDR market, the owner of the TDRs
  and the buyer negotiate the price.
• Dept. of Planning & Zoning, keeps a list of willing
• An attorney, paid for by the buyer or seller, prepares
  a title certification and prepares the Recording of
  Covenants and the Conveyance of Development
  Rights forms.
• Documents are reviewed by the County Attorney.
  DP&Z approves for recording.
• Owner records Conveyance in the land records.
 What is the Process to Sell TDRs?
• For the PAR Fund, owner submits application.
• APAB reviews applications and submits a ranked list
  based upon criteria to the County Commissioners.
• County Commissioners approve ranking and set a
  price per TDR.
• County makes offers based upon available funds.
• TDR owner responsible for hiring an attorney to
  prepare Covenants & Conveyance forms.
• Documents are reviewed by the County Attorney.
  DP&Z approves for recording.
• Owner records Conveyance in the land records.
 What is the Process to Sell TDRs?
• For the Leveraging and Retirement Program, owner
  submits application.
• APAB reviews applications and submits a ranked list
  based upon criteria to the County Commissioners.
• County Commissioners approve ranking and set a
  TDR base price, which increases/decreases based
  upon an APD’s characteristics.
• County makes offers based upon available funds.
• County Attorney’s Office prepares Installment
  Purchase Agreement, Purchase & Sales Agreement,
  Covenants & Conveyance forms.
• County records Covenants & Conveyance documents
  in the land records.
   How Does One Apply to the
       State Programs?

• MALPF Program – Contact County Staff
• Rural Legacy – Contact County Staff
• Maryland Environmental Trust – Contact
  MET Staff
       Are We Being Successful?

• Transferable Development Rights (TDRs): over
  12,220 acres preserved
• County Purchase of Development Rights Programs:
  5,450 acres preserved
• MALPF: over 4,650 acres preserved
• Rural Legacy: over 1,630 acres preserved
• MET: over 710 acres preserved
Over 24,700 acres have been preserved.
We are over 60% towards our goal of 40,000 acres.
For More Information:
Maryland Agricultural Land
Preservation Foundation Program
(410) 841-5860
For More Information:
Rural Legacy
   For More Information:
Maryland Environmental Trust
  For More Information,
      Please Contact
Jenny Plummer-Welker at
  410-535-1600 x 2333 or

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