Title
Resolution to Approve the Purchase of Development Rights on the Lloyd and Betty Guenther Property in Lodi Township and Appropriate Funds in the Amount of $866,014.00 (8 Votes Required)
Memorandum
Attached for your review and action is a resolution to approve a purchase agreement for the purchase of development rights on the Lloyd and Betty Guenther farm in Lodi Township.
On March 2, 2015 (R-15-063), City Council approved a grant application to the NRCS - Agriculture Conservation Easement Program (ACEP) for the Purchase of Development Rights (PDR) on two properties owned by Lloyd and Betty Guenther in Lodi Township. Subsequently, on September 21, 2015 City Council approved the acceptance of grant funds (R-15-1140) in the amount of $381,220.00 towards the purchase of the development rights on the two tracts.
Guenther Farm, Lodi Township
The property consists of two tracts totaling approximately 255 acres (a 75 acre tract and a 175 acre tract) and is located along Textile Road in Lodi Township. The deeds to the properties are held by Lloyd and Betty Guenther. An application to participate in the Program was received from the deed holders in January 2015.
This farm is considered large enough to sustain agricultural production and is in a location that will encourage additional farmland preservation activities. The property is in active agriculture.
Purchase Agreement:
An appraisal was completed for the development rights on the property in February 2016.
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 ACEP and 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 dis...
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