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
1255 acres Berlin: 17 landowners 25 parcels possible 579 acres 500 will make this Boylston: 9 landowners project a success 23 parcels 487 acres Your land could be Northborough: 16 landowners the difference 17 parcels 225 acres
• 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 ownership 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 Malone CR, Boylston Garfield Woods, Berlin Mt. Pisgah, Northborough Devine CR, Berlin
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 50 acre, undeveloped parcel with hayfield, some wetlands, some steep slopes Fee Conveyance of +/- 42 acres, excluding 4 house lots
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
A CR allows you to retain specific rights for yourself: Retained Rights Extinguished Rights • Title/Ownership • Right to develop land • Right to restrict public access • Right to build structures within the portion • Right to farm • Others depending on the level • Right to sell/Transfer title of protection desired and (subject to CR) approved • 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 Estate Tax Gains Tax Create a Take part in lasting something legacy 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 Enhanced Easement Tax Credit • Deduction of 30% of • Deduction of 50% of adjusted gross income adjusted gross income • Carry-forward period for • Carry-forward period for tax deductions = 5 years 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 or 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 Towns 1. Provide information 1. Provide information 2. Project partner 2. Project partner 3. Property steward 3. Property steward 4. Project management 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- owned 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 Skip Duggan Project Manager & Berlin Conservation Commission Northborough Open Space Committee E. gsp3@charter.net E. adavies@svtweb.org P. 774-614-1066 P. 978-443-5588 x121 Mia McDonald Christa Collins Northborough Conservation Agent Director of Land Protection, E. mmcdonald@town.northborough.ma.us Sudbury Valley Trustees P. 508-393-5015 E. ccollins@svtweb.org P. 978-443-5588 x115 Joe McGrath Boylston Conservation Commission & Walter Bickford Boylston Storm Water Committee Berlin Board of Selectmen E. jmcgrath@boylston-ma.gov E. walter.bickford@charter.net P. 508-869-2456 P. 978-838-2420
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