Documents and Enforcing Terms and Conditions Navigating Due - - PowerPoint PPT Presentation

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Presenting a live 90-minute webinar with interactive Q&A

Conservation Easements: Structuring Effective Documents and Enforcing Terms and Conditions

Navigating Due Diligence and Development Rights, Overcoming Challenges in Amending and Enforcing Easements

Today’s faculty features:

1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific

WEDNESDAY , MAY 18, 2016

Thomas J. P . McHenry, Partner, Gibson Dunn & Crutcher, Los Angeles William F . (Fritz) Paulus, Esq., Portland, Ore. Brad Raffle, Esq., Founder and President, Conservation Capital, Eugene, Ore.

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Con Conservation servation Easement asement Bas asics ics

RECENT CE DEVELOPMENTS STAFFORD WEBINAR

May 18, 2016

Wh What at is a is a co conservation nservation easement? asement?

Under the Uniform CE Act a CE is:

• A nonpossessory interest of a holder in real property

imposing limitations or affirmative obligations for the purpose of: – retaining or protecting natural, scenic, or open space values – assuring its availability for agricultural, forest, recreational, or open space use – protecting natural resources, maintaining or enhancing air or water quality; – preserving the historical, architectural, archaeological, or cultural aspects of real property

7

Who can hold CEs?

• The grantee, also known as the holder of a conservation

easement, primarily falls into two groups: – Governmental bodies empowered to hold an interest in real property under the laws of this State or the United States – charitable corporations, associations, and trusts having the purpose or power to retain or protect the same conservation values as previously enumerated

• Third-party right of enforcement eligible to entities that

can hold easements but are not named the holder

8

It is valid even though …

• Not appurtenant to an interest in real property
• Can be assigned to another holder
• May impose a negative burden
• May impose affirmative obligations
• The benefit does not need to touch or concern

real property

• There is no privity of estate or contract

9

10

11

CEs Across the USA

http://www.conservationeasement.us

12

Benefits Benefits of

• f

Con Conservation servation Ea Easements sements

• Land stays in private ownership
• Flexible tool that allows for the protection of all or a

portion of a landowner’s property and what property rights are given up

• Working lands easements can allow farming and

forestry but prevent other development

• Cost effective as it extends conservation dollars if fee

title is not needed

14

• Landowner can still exclude public
• Federal income and estate tax benefits for donated

easements

• Some states have state income tax credit programs for

donated conservation easements

• Allows landowners to have a say in the future of their

land

15

Fe Federal deral In Income come Tax ax Considerations Considerations §170(h)

Federal Income Tax Basics

• Under the Internal Revenue Code § 170(h) a donation
• f a conservation easement to a qualified organization

may be considered a deductible charitable contribution for federal income tax purposes – Read Treasury Regulations in § 1.170A-14

• A donation of a “qualified conservation contribution”

is a narrow exception to the prohibition against allowing federal income tax deductions for partial interests in real estate – See IRC § 170(f)(3)B(iii)

17

Federal Income Tax Basics cont’d

• A qualified conservation contribution is a contribution

: – (A) of a qualified real property interest, – (B) to a qualified organization, and – (C) exclusively for conservation purposes.

• IRC § 170(h)(1)

18

Federal Income Tax Basics cont’d

• The term qualified real property interest means any of

the following: – The entire interest of the donor other than a qualified mineral interest – A remainder interest, and – A restriction (granted in perpetuity) on the use which may be made of the real property.

• i.e. conservation easement
• IRC § 170(h)(2)

19

Conservation Purposes under § 170(h)(4)

The preservation or protection of …

• Land areas for outdoor recreation by, or the

education of, the general public;

• Relatively natural habitat of fish, wildlife, or

plants, or similar ecosystem;

• Open space (including farmland and forest land)

where such preservation is: —for the scenic enjoyment of the general public

• r

20

Conservation Purposes cont’d

—pursuant to clearly delineated Federal, State,

• r local government conservation policy, and will

yield a significant public benefit, or

• The preservation of a historically important land

area or a certified historic structure

• IRS will scrutinize claimed deductions where

conservation purposes are lacking or invalid, e.g. reserved rights conflict with stated conservation values or conversation values are questionable such as with a golf course

21

Criticism of the CE Tax Deduction

22

Perpetuity is a Cornerstone of §170(h)

• Contribution not treated as exclusively for

conservation purposes unless it is protected in perpetuity

• Reserved rights cannot be inconsistent with CE

purpose

• Mortgage or deed of trust must be subordinated
• Extinguishment only by judicial proceeding

– unexpected change in surrounding property makes conservation purposes impossible or impractical

23

More about Perpetuity in §170(h)

• Reserved surface rights to mining generally invalidate

perpetual nature of easement – Unless probability is “so remote as to be negligible.”

• However, subsurface mineral extraction is permitted

– so long as removal is not inconsistent with the conservation purposes of donation

• Must immediately vest a property right in donee

– At least equal to the proportionate share of the value of CE as to the whole – If termination occurs, donee must use sale proceeds for consistent conservation purposes

24

App Appraisals raisals

• Typically the before and after method (BAM) is used

– FMV of property before encumbrance—FMV after equals CE value

• USPAP standards typically suffice, but federal “yellow

book” might be required for federally funded projects, and IRS has additional rules for donated easements

• Comparable sales are preferred but unlikely

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• Need “qualified appraisal” if FMV > $5,000
• Can not be completed > 60 days before donation date
• Appraisal summary = IRS Form 8283

– Noncash Charitable Contribution

• Need to attach entire appraisal to Form 8283 if FMV >

$500,000

Some IRS appraisal considerations

27

• Objective assessment of how immediate or likely the

property will in fact be developed if the conservation easement were not in place

• Contiguous Parcel Rule

– for contiguous property of donor or family member – need to value all contiguous properties using before –after method

• Enhancement Rule

– need to factor in increase in value of donor’s other property or of a “related person,” whether contiguous or not

28

29

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En Enhanced hanced Fe Federal deral Conservation Conservation Tax ax In Incentive centive

Percentage Limitations & Carryover

• With all charitable donations there are limitations on

the deductibility of the contribution based on the percentage of the donor’s adjusted gross income – Overall 50% limitation/30% limitation for capital gain property

• Carryover of excess contributions into future tax years

is typically to 5 years

• Special status given to donated conservation

easements and an even more generous limit for a “qualified farmer or rancher” by expanding and extending the deductibility limitations in IRC § 170(b)(1)(E)

32

What is the Enhanced Federal Conservation Tax Incentive?

• Raises the deduction a donor can take for donating a

conservation easement from 30% of their adjusted gross income in any year to 50%;

• Allows qualifying farmers and ranchers to deduct up

to 100% of their income;

• Extends the carry-forward for a conservation

easement donor to take tax deductions from 5 years to 15 years.

• See Consolidated Appropriations Act, 2016

33

Who qualifies as a farmer or rancher?

The term “qualified farmer or rancher” means a taxpayer whose gross income from the trade or business of farming (within the meaning of Section 2032A(e)(5)) is greater than 50 percent of the taxpayer’s gross income for the taxable year.

34

Additional Requirements for Farmers/Ranchers

Special deductibility limitations for farmers and ranchers apply only if the contribution is subject to a restriction that such property remain available for agricultural

• r livestock production

35

Enhance incentive applies only to § 170(h)(2) donations

• Enhanced incentives only apply to conservation

donations that are qualified real property interests under IRC § 170(h)(2): i.e. – Entire interest other than a qualified mineral interest – A remainder interest such as with a life estate; or a – Permanent conservation easement

• Therefore, it does not apply to gifts of land in fee

36

Under the previous rules

• John Smith with an adjusted gross income of

$80,000/year donates a perpetual conservation easement valued by a qualified appraisal at $400,000 to Harmony Valley Land Trust

• At 30% of AGI, Smith could take a $24,000 deduction

for that tax year and the same amount for an additional 5 years for a total of $144,000 in tax deductions over 6 years ($24,000/yr X 6 yrs = $144,000)

• Thus, $256,000 of the value of the conservation

easement is not deductible ($400,000 — $144,000 = $256,000), which is a disincentive for conservation

37

Under current rules

• At 50% of AGI, Smith could take a $40,000 deduction

for that tax year and the same amount for an additional 9 years for a total of $400,000 in tax deductions over 10 years ($40,000/year x 10 years = $400,000)

• This utilizes utilities the entire donated amount and it

allows for $256,000 more in deductions than the previous rule

38

Benefits of the Enhanced Incentive

• Overcomes problem that people such as farmers and

ranchers with lands worthy of conservation are often “land rich but cash poor.”

• Therefore, it allows people with modest income to

take advantage of the charitable income tax deductions that have typically been useable only by taxpayers with higher incomes.

39

Dra Drafting fting Considerations Considerations

• Tailor-made document in most instances
• Typically document is broken down into:

– 1) recitals – 2) conservation purposes – 3) grantor’s reserved rights – 4) prohibited uses, – 5) grantee’s rights, and – 6) standard contract terms

• Draft clear conservation purposes and match recitals

with these purposes and the enabling statute

41

• Define critical terms but avoid using definitions that

run the risk of being obsolete or difficult to interpret

• Articulate why reserved rights are not inconsistent

with the conservation purposes

• If working with a land trust:

– Review land trust’s acquisition policies and – Land Trust Alliance Standards and Practices, particularly Standard 8 (Evaluating/Selecting Conservation Projects), 9 (Ensuring Sound Transactions), and 10 (Tax Benefits)

42

• If IRS charitable deduction is sought, review and

incorporate relevant provisions of § 170(h) and corresponding Treasury Rules into the document – E.g. conservation purposes, mortgage sub, extinguishment, donee’s vested rights etc. – Strict compliance is required or deduction will be jeopardized

43

Baseline Documentation

• Conservation values and condition of protected

property are typically further described in a baseline documentation report

• Includes narrative, maps, photographs that parties

agree provide accurate representations of the property

• Helps with future monitoring and enforcement
• Minimizes disputes about accepted uses
• Typically referenced in CE but not recorded
• IRS requires baseline if reserved rights may impair

conservation values of the property

44

Questions/Discussion

Thank you

William F. (Fritz) Paulus Attorney at Law 1207 SW Sixth Avenue Portland OR 97204 503-224-1773 Tel 503-228-4529 Fax fritz@wfpauluslaw.com

Conservation Easement Amendments

Strafford Webinar May 18, 2016

Thomas McHenry & Anna Korbakis tmchenry@gibsondunn.com akorbakis@gibsondunn.com

<Presentation Title/Client Name>

Overview

• Uncertainty
• Need for and purpose of amendments
• Amendment mechanisms and sample
• Amendment policy
• Charitable trust
• IRS Position
• Consequences of amendment
• Crafting a “conservation-positive” outcome
• Bibliography

47

<Presentation Title/Client Name>

Dealing with Uncertainty

• “It can be difficult to determine when a potential amendment crosses the

line into the territory of unacceptable change.” Jane Hamilton, “Understanding the Debate About Conservation Easement Amendments”, Saving Land, Winter 2014

48

<Presentation Title/Client Name>

• Nearly 40 million acres of land in the U.S. are currently protected by

perpetual conservation easements

• Conservation Easements are written to last “in perpetuity” (except South

Dakota – 99 years)

• But there are new land owners, different land uses (e.g., cell towers and

solar panels), and changing laws to contend with

• Amendments may be necessary to accommodate conservation beneficial

activities, e.g., wetlands restoration, wildlife enhancement

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Need for Amendments

<Presentation Title/Client Name>

Extent of Easement Amendments

• Only 4% of Conservation Easements have been amended (as of 1999)
• 50% at original grantor’s request
• 25% at subsequent grantor’s request
• 25% initiated by land trust
• Use of easement amendments expected to grow

See Land Trust Alliance (LTA) Land Use Standards and Practices 2004, Practice 11I

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<Presentation Title/Client Name>

Purpose of Amendment

• Amendments not routine, but used to:

– Clarify vague language – Correct oversights or errors in original document – Allow an unanticipated but acceptable use – Add new provisions to strengthen the easement – Improve an easement’s enforceability – Restore land burdened by the easement (e.g. wetland restoration) – Ensure consistency with new tax benefit requirements

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<Presentation Title/Client Name>

The restrictive use covenants contained in this Deed shall not be amended without the prior written consent of a) Grantor, so long as Grantor owns any interest in the Property and c) the Grantee (Land Trust). Any such amendment shall be consistent with the purpose of the Easement and shall not affect its perpetual duration. Consent may be withheld only upon a reasonable determination by the party whose consent is required that the proposed amendment would be inconsistent with the purpose of this Easement.

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Sample Amendment Clause

<Presentation Title/Client Name>

Amendment Mechanisms

• Typically spelled out in the easement itself – amendment provision
• Must comply with State enabling statute and federal law and often require

the approval of several parties (including the State Attorneys General and courts)

• “Swaps” generally prohibited – case law and the National Trust for Historic

Preservation suggest that a donor must grant an easement with regard to a “single, immutable” or “defined and static” parcel See Land Trust Alliance (LTA) Land Use Standards and Practices 2004, Practice 11I

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<Presentation Title/Client Name>

Amendment Mechanisms – State Guidance

• FL, IA, IL – holder of a conservation easement can release
• CO, LA, MD, UT – easement can be released, modified or terminated in

the same manner as other easements

• 11 states (including CA) – statute is silent on manner in which an easement

can be modified, subject to the terms of the conservation easement instrument and applicable state law

• 23 states and D.C. adopted the UCEA in whole or in part – easements can

be modified in same manner as other easements but the statute “does not affect the power of the court to modify or terminate a conservation easement in accordance with the principles of law and equity”

• 9 states have unique modification provisions

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<Presentation Title/Client Name>

Amendment Policy

• LTA strongly recommends having an amendment policy in place
• Promotes fairness and consistency
• Sets a high standard for amendment – discourages unnecessary amendment
• Underlying philosophy – change CE for the better

55

<Presentation Title/Client Name>

Contents of Amendment Policy

• Prohibits private inurement and impermissible private benefit (more later)
• Compliance with the conflict of interest policy
• Compliance with funding requirements
• Addresses the role of the board
• Requires neutral or positive conservation outcome (more later)
• Consistent with organization’s mission

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<Presentation Title/Client Name>

7 Principles Guiding Amendments

1. Serves the public interest and is consistent with the land trust’s mission 2. Complies with all applicable law 3. Does not jeopardize the land trust’s tax-exempt/charitable status 4. Does not result in private inurement or confer impermissible private benefit 5. Consistent with the conservation purpose(s) and intent of the easement 6. Consistent with the documented intent of the donor/grantor 7. Has a net beneficial or neutral effect on the relevant conservation values protected by the easement

57

<Presentation Title/Client Name>

Charitable Trust Doctrine

• Donation of easement treated as a charitable trust of which the acquiring

entity (land trust) is a trustee

• Easements can only terminated, or amended contrary to their charitable

conservation purposes, in a cy pres or similar equitable proceeding, i.e. court approval

• However, flexibility provided to amend an easement either by the presence
• f an amendment provision (see sample) or an implied power to amend

consistent with the purpose of the easement

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<Presentation Title/Client Name>

IRS Role

• IRS itself does not have the power to declare an improper easement

amendment or termination null and void or to enjoin a holder from future wrongdoing: proper administration is the province of state courts, while the IRS is charged only with enforcing federal tax laws

• Land Trust must disclose all amendments it enters into during the tax year
• n the IRS Form 990

59

<Presentation Title/Client Name>

IRS Position

• Perpetuity

– Easement must be granted in perpetuity

• Debate: whether the perpetual nature of a conservation easement

prohibits amendment altogether – Amendments must be consistent with or further the conservation purpose of an easement

• “Eligible donee” status

– Entities must have a commitment to protect the conservation purposes

• f the donation and the resources to enforce the restrictions

– Must also operate for exempt, charitable purposes only

• Exclusive conservation purpose

– Amendment must benefit the public at large and cannot confer a non- incidental, private benefit

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<Presentation Title/Client Name>

Potential Consequences

• Loss of title to the easement
• Investigation by the AG and potential civil penalties
• Tax audits and potential loss of tax-exempt status
• Private benefit concerns

61

<Presentation Title/Client Name>

Cases

• Bjork v. Draper, 381 Ill. App. 3d 528 (2008)

– Can’t remove land from the protection of the easement and replace it with land on an adjacent lot (i.e., conduct a “swap”) notwithstanding permissive enabling statute – Amendment provision “…must be interpreted in harmony with the

• ther provisions of the easement.” at 541

– “…no amendment is permissible if it conflicts with other parts of the easement…” at 541

• See also, Hicks v. Dowd, 157 P.3rd 914 (Wyo. 2007)

62

<Presentation Title/Client Name>

Cases (cont’d

• Feduniak v. California Coastal Commission, 148 Cal. App 4th 1346 (2007)

– Estoppel – Public policy – Agency duty – Knowledge – Extent of injury – Laches

63

<Presentation Title/Client Name>

Conservation-Positive Outcome

• Net conservation-positive outcome
• Role of third-party experts
• Documentation
• Court review and approval
• Role of Attorney General

64

<Presentation Title/Client Name>

• Internal Revenue Code §170(h)
• Land Trust Alliance, Amending Conservation Easements: Evolving Practices and Legal

Principles 17 (2007).

• Jane Hamilton, “Understanding the Debate About Conservation Easement Amendments,”

Saving Land, Winter 2014

• Federico Cheever and Jessica Owley, “Enhancing Conservation Options: An Argument for

Statutory Recognition of Options to Purchase Conservation Easements (OPECS),” 40 Harv.

• Envtl. L. Rev. 3 (2016)
• “Amending Conservation Easements: Evolving Practices and Legal Principles,” Land Trust

Alliance Research Report, 2007: www.lta.org/publications

• Land Trust Alliance (LTA) Land Use Standards and Practices 2004, Practice 111
• Nancy A. McLaughlin and W. William Weeks, “Hicks v. Dowd, Conservation Easements,

and the Charitable Trust Doctrine: Setting the Record Straight,” 10 Wyo. L. Rev. 73 (2010)

• Nancy A. McLaughlin and Benjamin Machlis, “Amending and Terminating Perpetual

Conservation Easements,” Probate & Property (2009)

• Nancy A. McLaughlin, “Internal Revenue Code Section 170(h): National Perpetuity

Standards for Federally subsidized Conservation Easements: Part 2: Comparison to State Law,” 46 Real Prop., Trust and Estate Law J. 1 (2011)

65

References

Emerging Markets for Ecosystem Services and Green Infrastructure

"Relevance for Land Trust Conservation Easements"

Strafford Webinar on

Recent Developments in Conservation Easements

Presented May 18, 2016

Brad Raffle, Esq., President, Conservation Capital LLC

http://conservationcap.com 832-331-1802

ENVIRO- ­­ECONOMICS

Historically, land conservation has been a public or philanthropic activity,

• ften providing private tax benefits. It is now becoming also a commercial

activity, in recognition of the many private benefits provided by ecosystems. Public-Private Partnerships are becoming a standard model for protecting nature and its services. Conservation easements are a key part of this business model.

67

Conservation Easements not driven by Tax Considerations

They are a standard tool for assuring that mitigation or ecological service protections will occur

• Required mitigation for past, present or future actions

Voluntary mitigation to demonstrate sustainable development Ecological Services/Green Infrastructure Transactions

68

A Case History

Satisfying mitigation requirements in order to secure a permit under the Endangered Species Act for a new pipeline through habitat of an endangered insect.

• USFWS demand to create a 500 acre ABB habitat mitigation site as a

condition to permit issuance. Pipeline company approaches two mitigation firms Pipeline company hires experts and qualified land trusts Mitigation firms submit 3 candidate sites (along with HCP plans and budgets) Mitigation firm purchases an option on the selected site USFWS approves site Mitigation firm and pipeline attorneys select a land trust and negotiate CE terms

• 69

A Case History (cont’d)

• Pipeline company funds the mitigation firm’s purchase of the selected site

along with an adjacent parcel earmarked for creation of a future for/profit mitigation bank Deed restrictions and CE both enforceable by the pipeline company and USFWS Permit issued and construction commences Sale closes and CE executed Key terms of the CE

• Stewardship Fee
• LT oversight and reporting
• No HCP obligations on LT
• 70

Important differentiators Between Tax-­­driven and Enviro-­­ Economic Conservation Easements

1. 2. 3. No need to satisfy IRS rules Third party enforcement is particularly important Neither the beneficiaries nor the grantor benefit from the easement and usually don't want to be in the chain of title The easement often must provide for on-site restoration and/or cleanup activity A clear nexus is required between the protected land and either a) an adverse impact elsewhere, or b) a benefitting parcel 4. 5.

• 6. An adequate stewardship endowment is essential
• 7. Initial Site selection is critical

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Important differentiators Between Tax-driven and Enviro- Economic Conservation Easements

1. 2. 3. No need to satisfy IRS rules Third party enforcement is particularly important Neither the beneficiaries nor the grantor benefit from the easement and usually don't want to be in the chain of title The easement often must provide for on-site restoration and/or cleanup activity A clear nexus is required between the protected land and either a) an adverse impact elsewhere, or b) a benefitting parcel 4. 5.

• 6. An adequate stewardship endowment is essential
• 7. Initial Site selection is critical

72

Important differentiators Between Tax-driven and Enviro- Economic Conservation Easements

1. 2. 3. No need to satisfy IRS rules Third party enforcement is particularly important Neither the beneficiaries nor the grantor benefit from the easement and usually don't want to be in the chain of title The easement often must provide for on-site restoration and/or cleanup activity A clear nexus is required between the protected land and either a) an adverse impact elsewhere, or b) a benefitting parcel 4. 5.

• 6. An adequate stewardship endowment is essential
• 7. Initial Site selection is critical

73

Important differentiators Between Tax-driven and Enviro- Economic Conservation Easements

1. 2. 3. No need to satisfy IRS rules Third party enforcement is particularly important Neither the beneficiaries nor the grantor benefit from the easement and usually don't want to be in the chain of title The easement often must provide for on-site restoration and/or cleanup activity A clear nexus is required between the protected land and either a) an adverse impact elsewhere, or b) a benefitting parcel 4. 5.

• 6. An adequate stewardship endowment is essential
• 7. Initial Site selection is critical

74

1. 2. 3. No need to satisfy IRS rules Third party enforcement is particularly important Neither the beneficiaries nor the grantor benefit from the easement and usually don't want to be in the chain of title The easement often must provide for on-site restoration and/or cleanup activity A clear nexus is required between the protected land and either a) an adverse impact elsewhere, or b) a benefitting parcel 4. 5.

• 6. An adequate stewardship endowment is essential
• 7. Initial Site selection is critical

Important differentiators Between Tax-driven and Enviro- Economic Conservation Easements

75

1. 2. 3. No need to satisfy IRS rules Third party enforcement is particularly important Neither the beneficiaries nor the grantor benefit from the easement and usually don't want to be in the chain of title The easement often must provide for on-site restoration and/or cleanup activity A clear nexus is required between the protected land and either a) an adverse impact elsewhere, or b) a benefitting parcel 4. 5.

• 6. An adequate stewardship endowment is essential
• 7. Initial Site selection is critical

Important differentiators Between Tax-driven and Enviro- Economic Conservation Easements

76

1. 2. 3. No need to satisfy IRS rules Third party enforcement is particularly important Neither the beneficiaries nor the grantor benefit from the easement and usually don't want to be in the chain of title The easement often must provide for on-site restoration and/or cleanup activity A clear nexus is required between the protected land and either a) an adverse impact elsewhere, or b) a benefitting parcel 4. 5.

• 6. An adequate stewardship endowment is essential
• 7. Initial Site selection is critical

Important differentiators Between Tax-driven and Enviro- Economic Conservation Easements

77

1. 2. 3. No need to satisfy IRS rules Third party enforcement is particularly important Neither the beneficiaries nor the grantor benefit from the easement and usually don't want to be in the chain of title The easement often must provide for on-site restoration and/or cleanup activity A clear nexus is required between the protected land and either a) an adverse impact elsewhere, or b) a benefitting parcel 4. 5.

• 6. An adequate stewardship endowment is essential
• 7. Initial Site selection is critical

Important differentiators Between Tax-driven and Enviro- Economic Conservation Easements

78

asement Sale of Ecological Assets

Post-e

• A. Determine exactly what is being "mitigated" and/or what specific

ecosystem services or conservation values are being protected. Care must be taken to avoid "double dipping"

• B. Stacking
• 1. Same Site Stacking
• 2. Same Acre Stacking

79

asement Sale of Ecological Assets (cont’d)

Post-e

• C. Special CE Drafting Considerations
• Tax Issues

Revenue Sharing Accommodation of Responsible Party Obligations Liability Considerations

80

Evolving Enviro-­­Economic Markets

Carbon (Four creditability criteria)

• Baseline and measurement approach must be specified

Additionality must be demonstrated Permanence must be assured Leakage must be avoided

81

Evolving Enviro-­­Economic Markets (cont’d)

• Water Rights and Supply

Water Quality Habitat and Biodiversity Limited Development

82

Recommendations for Land Trusts

Legal sophistication New business and financial considerations Policy advocacy to encourage carefully regulated ecosystem markets Relationships, don't try to become a for-profit, but use for-profits

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Thank You

Brad Raffle, Esq. Conservation Capital http://conservationcap.com 832-331-1802 brad.raffle@gmail.com

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