Title
Resolution to Approve the Purchase of Development Rights on the Rogers Revocable Trust Property in Lodi Township, Approve a Participation Agreement with Washtenaw County Parks and Recreation, and Appropriate Funds, Not to Exceed $378,367.00, from the Open Space and Parkland Preservation Millage Proceeds (8 Votes Required)
Memorandum
Attached for your review and action is a Resolution to Approve the Purchase of Development Rights on the Rogers Revocable Trust Property in Lodi Township, Approve a Participation Agreement with Washtenaw County Parks and Recreation, and Appropriate Funds, Not to Exceed $378,367.00, from the Open Space and Parkland Preservation Millage Proceeds
On November 10, 2016 (R-16-430), City Council approved a grant application to the NRCS - Agriculture Conservation Easement Program (ACEP) for the Purchase of Development Rights (PDR) on the Janet Rogers Revocable Trust Farm in Lodi Township. Subsequently, on September 18, 2017, City Council approved the acceptance of grant funds in the amount of $190,120.00 towards the purchase of the development rights on the tract (R-17-344). These funds will be reimbursed to the City by NRCS-ACEP after the project closes. Washtenaw County Parks and Recreation approved the contribution of funds in the amount of $60,000.00, or 15.5% of the Fair Market Value, towards the purchase of the development rights on the tract. Lodi Township has also agreed to contribute $1,000.00 towards the purchase.
This decreases the City of Ann Arbor’s share of the purchase price to $136,880.00, or 35% of the Fair Market Value.
Janet Rogers Revocable Trust Farm, Lodi Township
The farm is approximately 80 acres and is located along Textile Road in Lodi Township. The property is considered large enough to sustain agricultural production and is in a location that will encourage additional farmland and agricultural preservation activities. It is adjacent to two existing Greenbelt easements and would create a contiguous protected area of more than 230 acres. It is also approximately one-half mile from a third Greenbelt easement. The property scored in the top 40% of all Greenbelt applications in the scoring system developed and approved by the Greenbelt Advisory Commission. The protection of this property is a priority for the Greenbelt Program due to the size and quality of the farmland, proximity to other protected properties, and possibility to leverage funds from federal and other local sources of funding. The property also meets the priorities for the Greenbelt, Washtenaw County Parks and Recreation, Lodi Township, and ACEP Programs.
Participation Agreement:
An appraisal was completed for the development rights on the property in January 2017, and updated in October 2017, which determined the Fair Market Value of the development rights to be $388,000. This resolution approves a participation agreement with Washtenaw County Parks and Recreation and an appropriation of funds not to exceed $378,367.00, from the Open Space and Parkland Preservation Millage Proceeds.
The Greenbelt Advisory Commission recommended the purchase of the development rights on this tract and participation agreement with Washtenaw County Parks and Recreation at its December 7, 2017 meeting. The Greenbelt Advisory Commission recommended to move forward with the Purchase and the Agreement due to the quality of agricultural areas on the property, the property’s proximity to other protected land protected through the Greenbelt Program, and the opportunity to leverage the City’s funds through partnership with the federal NRCS ACEP Program, Washtenaw County Parks and Recreation, and Lodi Township. Approval of the resolution is recommended by staff.
Project Budget:
Purchase Price:
Appraised Fair Market Value: $388,000.00
Washtenaw County Amount: $60,000.00 (16%)
Lodi Township Amount: $1,000.00 (0.3%)
ACEP Grant Amount: $190,120.00 (49%)
(to be reimbursed to the City after closing)
City portion of purchase price: $136,880.00 (35%)
Other Costs:
Estimated Due Diligence: $20,000.00
Estimated Closing Costs: $7,500.00
Endowment: $23,867.00
Total Other Costs: $51,367.00
Appropriation of Funds Needed at Closing:
Purchase Price: $136,880.00
Other Costs: $ 51,367.00
ACEP Grant Amount: $190,120.00
Total Funds Needed at Closing: $378,367.00
Total Final City Costs:
Funds Needed at Closing: $378,367.00
Reimbursement from ACEP: $190,120.00
Total City Costs: $188,247.00
Staff
Prepared by: Ruth Thornton, Greenbelt Program Manager, The Conservation Fund
Reviewed by: Derek Delacourt, Community Services Area Administrator
Approved by: Howard Lazarus, City Administrator
Body
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, The Fair Market Value for the development rights was determined by an appraisal as required by Section 1:320 of the Ann Arbor Code;
Whereas, The City has secured a NRCS ACEP grant in the amount of $190,120.00 for the purchase of the development rights on the Janet Rogers Revocable Trust Property, which will be reimbursed to the City after closing;
Whereas, Washtenaw County has matching funds available for the purchase of the Janet Rogers Revocable Trust Property;
Whereas, Lodi Township has matching funds available for the purchase of the Janet Rogers Revocable Trust Property;
Whereas, Sufficient funds are available in the Open Space and Parkland Preservation Millage Proceeds for the expenditure; and
Whereas, The Greenbelt Advisory Commission approved a motion recommending approval of the purchase of development rights on the Janet Rogers Revocable Trust property and participation agreement with Washtenaw County Parks and Recreation at its December 7, 2017 meeting;
RESOLVED, That City Council approve the purchase of the development rights by Farmland Development Rights Easement on the Janet Rogers Revocable Trust Property in Lodi Township, subject to the approval of the appraisal by the City and satisfactory environmental site assessment;
RESOLVED, That City Council authorize and direct the Mayor and City Clerk to execute all documents necessary to complete the purchase of development rights after approval as to form by the City Attorney;
RESOLVED, That City Council approve participation with Washtenaw County Parks and Recreation in the purchase of development rights on the Janet Rogers Revocable Trust property located in Lodi Township for the reasons stated above;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the Participation Agreement defining each party’s interest in the acquisition of the development rights of the property and, if required, any supplemental documents necessary to document the appropriation of funds for the purchase of the development rights on the Janet Rogers Revocable Trust property, after approval as to form by the City Attorney; and
RESOLVED, That $378,367.00 be appropriated for the purchase of the development rights on the Janet Rogers Revocable Trust property from the Open Space and Parkland Preservation Millage Proceeds for the life of the project without regard to fiscal year.