Title
Resolution to Approve Participation Agreement with Ann Arbor Township for the Purchase of Development Rights on the Edward C. and Muriel Pardon Farm and Appropriate Funds, in the Amount of $145,154.50 from the Open Space and Parkland Preservation Millage Proceeds (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 Edward C. and Muriel Pardon, husband and wife, tax parcel ID numbers I-09-06-400-003 and I-09-07-100-002 in Ann Arbor Township. The resolution also approves an appropriation of funds for 50% of the remaining purchase price, after grant funds are allocated, and a due diligence costs contribution in the amount of $3,175.00, for a City contribution of $145,154.50 from the Open Space and Parkland Preservation Millage Proceeds.
Edward and Muriel Pardon applied to the Ann Arbor Township Land Preservation program in 2007. Ann Arbor Township applied for Federal Farm and Ranch Land Protection Program (FRPP) grant funds in 2010, and the Township was subsequently awarded an FRPP grant in the amount of $272,824.00. Ann Arbor Township has been the lead agency in the negotiations with the landowner.
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 $556,783.00. Thus, after the grant funds, the City’s contribution toward the purchase price would be $141,979.50. The City’s contribution also includes an additional allocation of $3,175.00 to cover a portion of due diligence costs. A detailed budget for this purchase of development rights is included later in this memorandum.
The easement parcel is 74.17 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 far...
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