Title
Resolution to Approve Participation Agreement with Ann Arbor Township for the Purchase of Development Rights on the Thomas and Theodore Braun Farm and Appropriate Funds ($350,752.50) (8 Votes Required)
Memorandum
Attached for your review and action is a resolution to approve a Participation Agreement with Ann Arbor Township for the purchase of development rights on the farm owned by Thomas and Theodore Braun, tax parcel ID numbers I-09-05-100-004, I-09-05-400-001, I-09-04-200-003 and I-09-05-100-001, in Ann Arbor Township. The resolution also approves an appropriation of funds for 50% of the remaining purchase price, after grant funds are allocated, for a City contribution of $350,752.50 from the Open Space and Parkland Preservation Bond Proceeds.
Thomas and Theodore Braun applied to the Ann Arbor Township Land Preservation Program in 2009. Ann Arbor Township applied for Federal Farm and Ranch Land Protection Program (FRPP) grant funds in 2009, and the Township was subsequently awarded an FRPP grant in the amount of $673,995.00. Ann Arbor Township has been the lead agency in the negotiations with the landowner. As with any land acquisition deal which the City is involved, a donation was requested from the landowner, however, no donation was received.
Ann Arbor Township is seeking the support from the City of Ann Arbor for 50% of the remaining purchase price. The appraised value of the development rights on the property is $1,375,500.00. Thus, after the grant funds, the remaining purchase price is $701,505.00 and the City's contribution toward the purchase price would be $350,752.50.
The easement parcel is approximately 187.06 acres and is currently in agricultural production. The property is considered large enough to sustain agricultural production and is in a location that will encourage additional farmland preservation and agricultural preservation activities.
Project Budget:
Appraised Value: $1,375,500.00
Purchase Price: $1,375,500.00
FRPP Grant: ($ 673,995.00)
Remaining: $ 701,505.00
Ann Arbor Township Contribution: $350,752.50
City of Ann Arbor Contribution: $350,752.50
Federal matching grant funds are through the Natural Resources Conservation Service, Ann Arbor Township's share is from the Land Preservation millage, and the City's share is from the Open Space and Parkland Preservation Bond Proceeds.
Approval of the Participation Agreement and appropriation of the funds for 50% of the remaining purchase price, was recommended by the Greenbelt Advisory Commission at their July 8, 2009 meeting.
Staff
Prepared by: Ginny Trocchio, The Conservation Fund
Reviewed by: Sumedh Bahl, Community Services Area Administrator
Body
Whereas, Chapter 42 of the Ann Arbor City Code establishes the Greenbelt District and enables the City to purchase development rights on property within the district;
Whereas, Chapter 42 of the Ann Arbor City Code specifically authorizes City Council to enter into agreements for joint acquisition, of land in the Greenbelt District with other government agencies;
Whereas, Purchase of Development Rights may be funded through the Open Space and Park Land Preservation Bond Proceeds;
Whereas, Sufficient funds in the Open Space and Parkland Preservation Bond Proceeds are available for the expenditure;
Whereas, Ann Arbor Township was awarded funds from the Federal Farm and Ranch Land Protection Program (FRPP) for the purchase of development rights on the Thomas and Theodore Braun Farm; and
Whereas, The Greenbelt Advisory Commission supported approval of the Participation Agreement with Ann Arbor Township and expenditure of funds at its July 8, 2009 meeting;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the Participation Agreement defining each party's interest in the acquisition and if required, any supplemental documents necessary for appropriation of funds for the purchase of development rights on the Thomas and Theodore Braun Farm, after approval as to form by the City Attorney; and
RESOLVED, That $350,752.50 be appropriated for the purchase of development rights for the Thomas and Theodore Braun Farm from the Open space and Parkland Preservation Bond Proceeds for the life of the project without regard to fiscal year.