Title
Resolution to Approve the Purchase of a Conservation Easement on the St. John’s Property in Northfield Township, Approve a Participation Agreement with Washtenaw County Parks and Recreation Commission and Northfield Township, and Appropriate $465,693.00 (8 Votes Required)
Memorandum
This resolution approves the purchase of a conservation easement on the St. John’s property located in Northfield Township. The resolution also approves a participation agreement with Washtenaw County Parks and Recreation and Northfield Township and appropriates up to $465,693.00 for the purchase from the Open Space and Parkland Preservation Fund.
On November 6, 2023 (R-23-405), City Council approved a grant application to the USDA-NRCS - Agriculture Conservation Easement Program (ACEP) for the St. John’s property. On July 1, 2024 (R-24-274), City Council approved the acceptance of grant funds in the amount of $338,100.00 under an agreement with NRCS to be applied toward the purchase of a conservation easement on the property.
St. John’s Farm, Northfield Township
The farm’s two tax parcels are approximately 80 acres in total, of which 70 acres will be covered by the conservation easement. The property sits at the intersection of E. Northfield Church and Sutton Roads in Northfield Township. It is one half mile west of the Ehnis property and adjacent to 240 acres of land protected with existing Greenbelt conservation easements. The property scored in the 55th percentile 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 relatively large size of the property, high quality of the farm soils, close proximity to other protected properties, extensive road frontage and associated scenic value, plus its ability to meet the goals of and thus leverage funds from the Washtenaw County Parks and Recreation Commission, Northfield Township, and USDA-NRCS.
An appraisal for a conservation easement on the property was completed in October 2024, which determined the fair market value to be $574,000.00. This appraised value was lower than the estimated value used for the grant application. ACEP grant awards are based on a percentage of the appraised value, so the grant amount has been reduced to reflect 49% of the purchase price.
Proposed Project Budget
Purchase Price $574,000.00
Washtenaw County $114,774.00 20.0%
Northfield Township $57,400.00 10.0%
ACEP Grant (Reimbursement) $281,286.00 49.0%
City of Ann Arbor $120,540.00 21.0%
Other Costs $63,867.00
Estimated Due Diligence: $32,500.00
Estimated Closing Costs: $7,500.00
Endowment: $23,867.00
City Funds Appropriation $465,693.00
City and ACEP purchase price share plus Other Costs. The ACEP grant is a reimbursement paid back to the City after purchase.
City Final Costs $184,407.00
Estimated final costs after federal grant reimbursement.
The Ehnis and St. John’s easement projects are the first to be recommended for funding under Northfield Township’s own Farmland Preservation Millage passed by voters in 2022.
The Greenbelt Advisory Commission recommended this purchase at its February 6, 2025 meeting. Approval of the resolution is recommended by staff.
Staff
Prepared by: Rosie Pahl Donaldson, Land Acquisition Supervisor
Reviewed by: Derek Delacourt, Community Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, Chapter 42 of Ann Arbor City Code establishes the Greenbelt District and authorizes the City to purchase land and conservation easements on property within the district with Open Space and Parkland Preservation Millage proceeds;
Whereas, Chapter 42 of Ann Arbor City Code authorizes City Council to enter into agreements for joint acquisition of land and easements in the Greenbelt District with other government agencies; and
Whereas, The fair market value for the conservation easement was determined by an appraisal as required by Section 1:321 of Ann Arbor City Code;
RESOLVED, That City Council approves the purchase of a conservation easement on the St. John’s property in Northfield Township;
RESOLVED, That approval of the purchase is contingent upon the approval by the City and all entities participating in the purchase of the following:
• The appraisal;
• An environmental site assessment of the property;
• A survey of the property;
• Conveyance of good and marketable title to the conservation easement; and
• Agreement to the terms and conditions of the conservation easement;
RESOLVED, That the Mayor and City Clerk are authorized and directed to execute a purchase agreement for the property, after approval by the City Attorney and City Administrator;
RESOLVED, That the Mayor and City Clerk are authorized and directed to execute a participation agreement with the Washtenaw County Parks and Recreation Commission and Northfield Township for purchase of a conservation easement on the property, after approval by the City Attorney and City Administrator;
RESOLVED, That $465,693.00 is appropriated for this purchase from the Open Space and Parkland Acquisition Fund fund balance to the FY25 Parks and Recreation Open Space And Park Acquisition Millage Fund;
RESOLVED, That all amounts appropriated herein are without regard to fiscal year; and
RESOLVED, That the City Administrator is authorized to take all appropriate action to implement this resolution, including executing all other documents necessary to complete this purchase after approval by the City Attorney.