CONSERVATION EASEMENTS

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CONSERVATION EASEMENTS

• George F. Smith
• Christopher D. Clark
• University of Tennessee

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• BASICS
• POTENTIAL CONSEQUENCES
• LANDOWNER
• EASEMENT HOLDER
• COMMUNITY

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SOME BASICS

• Property Ownership is a Collection of Individual
  Rights

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• Rights Can Be Separated
• Right-of-Way
• Lease
• - Easement

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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.

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LAND TRUSTS

• Private, Non-Profit Organizations
• Hold Property or Interest in Property in Trust
• For the Public Good

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OWNERSHIP

• Deep Pockets
• Generous Landowners

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CONSERVATION EASEMENT

• Alternative to Ownership

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CONSERVATION EASEMENT

• LEVERAGE FUNDS
• FLEXIBLE
• Rights Granted
• Area
• Duration
• WIN WIN - WIN

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LANDOWNERS VIEW

• PRESERVE LAND USES
• INCOME
• POSSIBLE TAX BENEFITS
• PROPERTY TAXES
• INCOME TAXES
• ESTATE TAXES

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AGENCY or TRUSTS VIEW

• MAINTAIN DESIRABLE LAND USES
• AT LOWER COST THAN OUTRIGHT PURCHASE

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COMMUNITYS VIEW

• SERVE PUBLIC INTEREST
• PRESERVE PUBLICLY DESIRABLE LAND USES

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GROWTH

• 1950 about 50 land trusts
• 2003 over 1,200
• 1988 290,000 acres
• 2003 over 5 million acres

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FLEXIBILITY MAY BE LIMITED

• AGENCY or TRUSTS INTERESTS
• TAX BENEFITS
• PERPETUITY

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UNDERSTAND EASEMENTS TERMS

• AGRICULTURAL USE
• FUTURE DECISIONS
• PUBLIC ACCESS

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LANDOWNER

• LONG TERM FLEXIBILITY
• INFRASTRUCTURE
• FUTURE BORROWING POWER
• COMPATIBLE STABLE PARTNER
• IMPACTS OF INCREASED PROPERTY VALUES

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TRUST or AGENCY

• ENFORCEMENT COSTS
• MANAGEMENT PLANS
• IMPACTS OF SURROUNDING DEVELOPMENT
• NATURE IS DYNAMIC
• INSTITUTIONS ARE DYNAMIC

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COMMUNITY

• MISUSES
• IMPACTS ON OTHER LANDS
• TAX REVENUES
• CHANGING VALUES
• MODIFY OR INVALIDATE TERMS ?

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• POPULAR
• PRESERVE LAND USES
• INCOME TAX BENEFITS
• PUBLIC USE VALUES
• NEW, UNTESTED INSTRUMENT
• TAILOR TO SPECIFIC CASE
• FLEXIBLITY
• COMPETENT PROFESSIONAL ASSISTANCE

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FARM AND FORESTLAND PRESERVATION WITH
CONSERVATION EASEMENTS

• http//economics.ag.utk.edu/
• pubs/policy/SP646.pdf

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COMMENTS?QUESTIONS?