August 22, 2013 The Vision The Project Why Here? The Means How - - PowerPoint PPT Presentation

August 22, 2013

• The Vision
• The Project
• Why Here?
• The Means
• How can your land be a part of the project?
• Benefits of conserving your land
• Examples
• Timeline/Next Steps

Feel free to ask questions!

• To conserve a unique area of history and natural

diversity among the bustle of our ever-growing state

• To create a tangible community asset that will

benefit residents of all three towns and surrounding communities and future generations

• Partnership between Berlin,

Boylston, Northborough and Sudbury Valley Trustees

• To protect 500+ acres of

historically significant and ecologically important land

• To create a lasting legacy for

future generations by working with landowners and leveraging State and local funds

Berlin: 17 landowners 25 parcels 579 acres Boylston: 9 landowners 23 parcels 487 acres Northborough: 16 landowners 17 parcels 225 acres

1255 acres possible 500 will make this project a success Your land could be the difference

• Feasibility: Adding to a large block of already

protected land gives this project a high-likelihood of success

• Quality: Beautiful vistas, working farms, high-quality

wildlife habitat

• Compatibility: these parts of the three towns are not

designated nor appropriate for intensive residential or commercial development

MA DCR Landscape Partnership Program

• Grant for protection of 500+ acres
• Up to $1.5 M for total project costs
• Requires 100% match (donations and discounted sales)
• Conservation done by SVT and Town Conservation Commissions, no
• wnership by State.

Match Funds

• Fundraising and other grants
• Donations and discount (less than fair-market-value) sales
• Conservation Restriction or full property conveyance
• Both are tax deductible charitable donations
• Town funds & conservation of town-owned land

With generosity from landowners interested in making donations and discounted sales, this project can succeed.

• 1. Transfer Ownership (Fee-simple)
• Sell for Fair Market Value (If possible)
• Discounted Sale
• Donate
• 2. Maintain Ownership (Conservation

Restriction or CR)

• Sell for Appraised Value
• Discounted Sale
• Donate

• Right to develop the land or build structures
• Right to sell and/or subdivide the property
• Right to conduct agriculture or forestry
• Right to mine resources
• Right to store and stockpile goods
• Right to run commercial activities
• Right to recreation

All of the bundle = Transferring Ownership Portion of the bundle = Conservation Restriction

Garfield Woods, Berlin Devine CR, Berlin

• Mt. Pisgah, Northborough

Malone CR, Boylston

Transferring Ownership

• Common, simple and straightforward.
• No longer responsible for management

and expense of ownership, including property taxes.

• Reduce value of estate to avoid estate

taxes.

Potential scenarios Fee Conveyance of +/- 42 acres,

excluding 4 house lots

50 acre, undeveloped parcel with hayfield, some wetlands, some steep slopes

Maintaining Ownership (CR)

• Voluntary deed restriction
• Protects property from development
• Adaptable to meet needs and wishes of landowner
• May cover all or a portion of property
• Can be written to protect land for agriculture &

forestry

• Public access is optional
• Must get Municipal and State approval

Extinguished Rights

• Right to develop land
• Right to build structures within

the portion

• Others depending on the level
• f protection desired and

approved

A CR allows you to retain specific rights for yourself: Retained Rights

• Title/Ownership
• Right to restrict public access
• Right to farm
• Right to sell/Transfer title

(subject to CR)

• Right to use the land as

collateral for a loan

• Right to forest
• Right to build structures within

the excluded portion

Conservation Restriction on +/- 45 acres

Includes single house lot in building envelope (i.e., not part of CR), barns and other outbuildings allowed within CR for agricultural uses

Income Tax Property Tax Capital Gains Tax Estate Tax Create a lasting legacy Take part in something great

• Charitable Deduction:
• Made to qualifying entity
• Complete and irrevocable, no reversions
• “True gift motivated by charitable intent not personal gain”
• 5 year carry forward (6 years total)
• This can increase/be enhanced using the additional incentives discussed

in next few slides.

• Other costs associated with conservation

process are often tax deductible

General Donation Tax Credit

• Deduction of 30% of

adjusted gross income

• Carry-forward period for

tax deductions = 5 years Enhanced Easement Tax Credit

• Deduction of 50% of

adjusted gross income

• Carry-forward period for

tax deductions = 15 years

• Allows qualifying farmers

and ranchers to deduct 100% of their income Qualifying farmer: Someone who receives more than 50% of their income from “the trade or business of farming”.

• Conservation Restrictions may be eligible for a

tax credit for half the value of the donation (up to $50,000).

• Property must be ecologically valuable
• If this credit is larger than the tax liability in the

year of donation the state will issue a check for the balance of the credit.

• Ex. Income tax = $10,000 (Credit would eliminate income tax)

Check from State = $40,000

• Transferring property in fee:
• No longer liable for property taxes
• Transferring less than the whole (i.e., CR):
• Property tax adjustment possible with a

reassessment and appeal to town assessor.

• Conservation land can enroll in Ch. 61

programs without the chance of rollback taxes

• r municipal Right of First Refusal

There may also be Estate and Capital Gains Tax benefits when conserving your land.

If you are considering conserving your land you should consult a tax specialist.

SVT

• 1. Provide information
• 2. Project partner
• 3. Property steward
• 4. Project management

Towns

• 1. Provide information
• 2. Project partner
• 3. Property steward

SVT and the Town Conservation Commissions will be partnering on each project. Ownership and management will be determined by the landowners and town on a case by case basis.

• Wrack Meadow

Woods, Boylston

• 12 acres owned outright

by SVT, adjacent town-

• wned land.
• Green Street Meadows,

Northborough

• 52 acres purchased by

Town with CPA funds. SVT to hold CR.

• O’Brien CR, Berlin
• 15 acres owned by Town,

SVT holds CR

• Eager property, Berlin
• Discounted sale of 56

acres, buy and hold, resell to Town with CR retained by SVT.

Berlin Project:

• Donation of Conservation Restriction
• 4 ANR Lots/Street frontage lots
• Property totaling 12.15 acres

• 1. Call SVT or your Town’s Conservation Commission to talk about

your options and to set up a site visit by September 6, 2013

This is not a commitment

• 2. Coordinate with a project partner to obtain an appraisal or

appraisal equivalent by September 30, 2013.

• 3. Work with project partners to negotiate the conservation of

your property.

• 4. Closings on all projects must occur by June 15, 2015

Thank you for coming!

Ashley Davies Project Manager & Northborough Open Space Committee

• E. adavies@svtweb.org
• P. 978-443-5588 x121

Christa Collins Director of Land Protection, Sudbury Valley Trustees

• E. ccollins@svtweb.org
• P. 978-443-5588 x115

Walter Bickford Berlin Board of Selectmen

• E. walter.bickford@charter.net
• P. 978-838-2420

Skip Duggan Berlin Conservation Commission

• E. gsp3@charter.net
• P. 774-614-1066

Mia McDonald Northborough Conservation Agent

• E. mmcdonald@town.northborough.ma.us
• P. 508-393-5015

Joe McGrath Boylston Conservation Commission & Boylston Storm Water Committee

• E. jmcgrath@boylston-ma.gov
• P. 508-869-2456