Title
Resolution to Approve the Purchase of Development Rights on the Daniel E. and Amy Hornback Farm in Salem Township; Appropriate Funds, Not to Exceed $199,367.00 from the Open Space and Parkland Preservation Millage Proceeds and Approve Participation Agreement with Salem Township and Washtenaw County Parks and Recreation Commission (8 Votes Required)
Memorandum
Attached for your review and action is a resolution to approve the purchase of development rights on the farm owned by Daniel E. and Amy Hornback in Salem Township. The landowner has agreed to make a 10% donation toward the purchase price. The total city contribution will not exceed $199,367 from the Open Space and Parkland Preservation Millage Proceeds.
The Resolution also approves a Participation Agreement with Salem Township and Washtenaw County Parks and Recreation Commission. Each party is contributing 20% toward the acquisition.
Hornback Farm, Salem Township
The farm is approximately 73 acres and is located along Pontiac Trail and Brookville Road. A portion of the property is currently in agricultural production. The remainder of the property contains high quality woodlands and Fleming Creek. The deed to the property is held by Daniel E. and Amy Hornback. An application to participate in the Program was received from the deed holder earlier in 2012 and Mr. and Mrs. Hornback have confirmed their interest in participating in the program. The property is in close proximity to other properties already protected by the Greenbelt and other applications received by the Greenbelt Program and other local land preservation programs.
Purchase Agreement:
An appraisal was completed for the development rights on the property in March 2012, and the fair market value was determined to be $321,000 for approximately 73 acres. The landowners have agreed to make a donation of 10% of the fair market value, or $32,100.00.
The attached resolution approves the Purchase Agreement for the Sale of Agricultural Land Development Rights on the farm. The Purchase and Sale of the development rights is contingent on the following:
A. Approval of the appraisal by the City for the establishment of a fair market price for the development rights;
B. Conveyance of good and marketable title to the development rights;
C. An environmental site assessment acceptable to the City of Ann Arbor in its sole discretion;
D. Agreement to the terms and conditions of a Grant of Easement for the Development Rights.
Project Budget:
Appraised Value = $321,000.00
Landowner Donation = $ 32,100.00
Purchase Price = $288,900.00
Purchase Price:
Purchase Price = $288,900.00
Salem Township = $ 64,200.00
Washtenaw County = $ 64,200.00
City = $160,500.00
City Costs:
Purchase price = $160,500.00
Due Diligence = $ 10,000.00
Closing Costs = $ 5,000.00
Endowment = $ 23,867.00
Total City costs = $199,367.00
Conservation Easement:
The easement is made pursuant to section 36111 b of the Natural Resources and Environmental Protection Act (MCL 324.3611Ib; MSA 13A.3611Ib) and Chapter 42 of the Ann Arbor City Code. The easement is for the purpose of preservation of the Property's agricultural use and natural features on the property, including the protection of prime, unique or important soils, by preventing any use that would significantly impair or interfere with the agricultural value.
The Conservation Easement will include provision to allow pre-scheduled interpretive and educational public hikes to be scheduled at the property, in collaboration with Washtenaw County Parks and Recreation programs.
Participation Agreement:
The City will be the Grantee on the Conservation Easement and will be responsible for monitoring and enforcing the conservation easement. Salem Township and Washtenaw County Parks and Recreation will contribute $64,200.00 each toward the acquisition of the conservation easement.
The City's share is from the Open Space and Parkland Preservation Millage proceeds.
The Greenbelt Advisory Commission recommended participating with Salem Township and Washtenaw County Parks and Recreation, and the appropriation of funds at it's April 5, 2012 meeting.
Attachment: Location Map
Staff
Prepared by: Ginny Trocchio, The Conservation Fund
Reviewed by: Sumedh Bahl, Community Services Area Administrator
Approved by: Steven D. Powers, City 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, Purchase of Development Rights may be funded through the Open
Space and Park Land Preservation Millage Proceeds;
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, There are sufficient funds in the Open Space and Parkland Preservation Millage Proceeds available for the expenditure; and
Whereas, The Greenbelt Advisory Commission supports approval of the purchase of development rights on the Hornback farm and expenditure of funds at its April 5, 2012 meeting;
RESOLVED, That City Council approve the purchase agreement to be subject to the approval of the appraisal by the City; environmental site assessment approved by the City at its sole discretion; conveyance of good and marketable title to the development rights by Farmland Development Rights Easement;
RESOLVED, That City Council authorize the Mayor and City Clerk to execute all documents necessary to complete purchase of development rights after approval as to form by the City Attorney;
RESOLVED, That the Mayor and City Clerk are authorized and directed to execute the Participation Agreement defining each party's interest in the acquisition and if required, any supplemental documents necessary for the appropriation of funds for the purchase of the development rights for the Hornback farm, after approval as to form by the City Attorney; and
RESOLVED, That $199,367.00 be appropriated for the purchase of development rights for the Hornback farm in Salem Township from the Open Space and Parkland Preservation Millage proceeds for the life of the project without regard to fiscal year, include closing, incidental and endowment costs.