Title
Resolution to Approve Grant Application to Federal Farm and Ranch Land Protection Program for Purchase of Development rights on Honke Family LLC Property (8 Votes Required)
Memorandum
Attached for your review and action is a resolution to approve the Federal Farm and Ranch Land Protection Program (FRPP) application for the purchase of development rights (PDR) for the Honke Family LLC Property located in Northfield Township.
Grant Application:
Applications to the Federal FRPP program are for funds up to 50% of the appraised fair market value of the development rights to a maximum of $5,000 per acre. Completed applications must be submitted by February 17, 2010. It is anticipated that a request for acceptance of grant funds, if awarded, will be presented to City Council in March 2010.
In May 2009 Council approved a grant application to FRPP for this property (R-09-192). The City applied for grant funds in 2009, but was not awarded funds. The Greenbelt Advisory Commission recommended resubmission of the grant application at its January 13, 2010 meeting.
Estimated Project Budget:
Below is an estimated budget for the project, based on the appraisal completed last year. Due to the deadline for grant applications this year, an updated appraisal has not been completed. If awarded grant funds, an updated appraisal will be completed and a revised budget, along with purchase agreement will be submitted to Council for review and action.
Purchase Price:
Appraised Fair Market Value (2009): $896,000.00
FRPP Request: $448,000.00
City portion of purchase price: $448,000.00
Other Costs:
Estimated Due Diligence: $12,000.00
Estimated Closing Costs: $26,880.00
Endowment: $23,867.00
Total Other Costs: $62,747.00
City Costs:
Purchase Price: $448,000.00
Other Costs: $ 62,747.00
Total City Costs: $510,747.00
Conservation Easement:
The easement is made pursuant to section 36111 b of the Natural Resources and Environmental Protec...
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