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LAND TRUSTS THROUGHOUT THE UNITED STATES have helped protect over 4 million acres of land. Some of this land was acquired through outright purchase, but much of it is protected through a relatively new tool called the “conservation easement.” There are now over 1200 land trusts nationwide and the beginnings of a world-wide land trust movement.
What Is a Land Trust?
A land trust is a private, nonprofit organization which works with willing landowners to protect land through donations, easements and bargain sales (sales of land at less than market value). Land trusts protect forests, farm land, watersheds, wetlands, wildlife habitats, trails, scenic vistas, geologic formations and places of historic and cultural value. Sometimes land trusts acquire land for later sale to public agencies which may not have the immediate funds to buy property.
Private land trusts in every state of the union are providing permanent protection for valuable environmental resources. Unlike government agencies, land trusts can work closely and confidentially with landowners and can act more quickly. In fact, many government agencies, such as the California Coastal Conservancy, are working successfully with local land trusts to achieve public conservation goals.
Why is this happening? Polls show that a majority of Americans, regardless of political affiliation, have a strong interest in conservation issues. A lot of people believe that conservation is too important to leave to politics and politicians. Also, many property owners feel more comfortable talking about their land with a private land trust than with a government agency.
Few of the lands donated for conservation purposes are pristine wilderness areas. Most acquisitions involve some form of restoration and long-term management program. Conservation easements can be compatible with residential and commercial uses, and may even allow hunting, fishing, farming and controlled timber harvesting.
Most land trusts are small local organizations with only a board of directors and a few volunteers, although the most successful land trusts eventually must acquire large staffs and big budgets. Most serve a single community, but some work within entire watersheds, counties, regions or states. The Nature Conservancy and the Trust for Public Land are two of the best-known national land trusts.
Land trusts acquire some lands through outright acquisition. As government money becomes more scarce, land trusts are increasing their fundraising efforts, targeting major private and corporate donors for funds. Some land trusts re-sell land to public agencies which they acquired at bargain prices, using the higher resale value to fund more purchases. Many land trusts also raise money through membership programs. The Sonoma County Land Trust raises funds for open space acquisition through a voter-approved county-wide 1/4 cent sales tax surcharge.
What Is a Conservation Easement?
One of the most powerful tools that land trusts use is the conservation easement. A conservation easement is a partial real estate interest which limits a property’s use to protect a resource for public benefit, such as a forest, farm land or wildlife habitat. It does not necessarily confer the right of public access. Unlike zoning, which can change, conservation easements are permanent.
The easement document is a legal agreement between the landowner and the land trust. The agreement is recorded with the deed and runs with the land. It is binding on the present and all future landowners. The landowner still owns the property and can sell it or bequeath it to heirs. But the land trust owns the easement and is responsible for its long-term stewardship, enforcing its provisions and correcting any violations.
Conservation easements are usually donated by landowners, who may receive significant property, income and estate tax benefits. But the easement donation must provide a clear public benefit to qualify as a tax-deductible charitable donation. For instance, the IRS does not usually allow tax benefits for easements given as a condition for development. However, many landowners are motivated only by their desire to protect forests, farm land and wildlife habitats for future generations.
How Do Conservation Easements Affect Property Values?
Conservation easements are relatively new. The techniques used to appraise them have been adapted from the field of condemnation or “eminent domain” practice. This practice was built on a collection of legal decisions which attempt to give property owners “just compensation” when their property is taken for public purposes. However, there are times when a public taking can provide special benefits to a property which outweigh the taking.
An easement can cause a loss in market value when it prevents or limits some economic use of the property, such as subdivision, development, leasing or other form of income production. There must be an immediate and well-supported market for this economic use. It can’t be merely speculative. Also, there is usually no loss in property value when a developer donates an easement as a condition for development approval.
However, many conservation easements protect elements which have no traditional economic use, such as wetlands, views, public access and wildlife habitats. These clearly have “conservation value” but no traditional “market value.” Land trusts across the nation are discovering that some buyers actually pay more for conserved land. Conserved land can raise the value of adjacent properties and enhance property values throughout a large area.
Conservation easements are strictly managed and monitored by local land trusts, who maintain endowment funds, assume liability and use staff and volunteers to enforce the easements in perpetuity. Many property owners prefer this kind of managed public use as an alternative to uncontrolled trespassing on their property.
There is much controversy regarding the valuation of conservation easements, even within the appraisal profession. Some claim that any easement-encumbered property has to be worth less than if there were no easement. But others point to the reality of the market place – many conserved properties actually sell for more. The only clear case for a loss in market value is when the easement prevents or limits an immediate economic use. When the easement does not clearly limit a current economic use, it may be difficult or impossible to support any loss in market value.
It’s true that some easement donors are motivated by big tax breaks rather than conservation. However, many easement donors don’t have the big income needed to benefit from big tax breaks. Many donors have a strong emotional attachment to their land and want to protect it beyond their lifetime. Some donors would actually prefer that their donation not decrease the value of their estate.
How Do I Get in Touch With a Local Land Trust?
There are several local land trusts on the Mendocino Coast, each with different goals and areas of interest. They can provide confidential answers to your questions about donating land or conservation easements. They can give advice or provide information on estate planning as well as legal and tax issues. All welcome your memberships and donations, publish newsletters, host special events and provide volunteer opportunities. If you’re interested in conservation and want to make a real difference, give them a call.
The Anderson Valley Land Trust PO Box One Yorkville, CA 95494 707-895-3150
The Anderson Valley Land Trust has been developing a restoration plan for the 303-square mile Navarro River watershed. Their goal is to improve water quality and the salmon fishery in the Navarro River.
The Coastal Land Trust PO Box 590 Mendocino, CA 95460 707-937-2709
The Coastal Land Trust, which is focused on the Albion River watershed area, is working on coastal access and geographic information system (GIS) technology, and has developed an educational program on estuaries of the Mendocino Coast.
The Comptche Land Conservancy PO Box 293 Comptche, CA 95468 707-937-4084
The Comptche Land Conservancy is working to develop a forest greenbelt around the community of Comptche.
The Mendocino Land Trust PO Box 1094 Mendocino CA 95460 707-937-0901
The Mendocino Land Trust was formed in 1976 to help protect Heider Field in the village of Mendocino from being developed and has worked on coastal access. MLT recently hired a half-time Executive Director and has expanded their area of operations to all of Mendocino County.
The Pacific Forest Trust PO Box 858 Boonville, CA 95415 707-895-2090
The Pacific Forest Trust is dedicated to the conservation of private forest lands in the Pacific Northwest, with a primary focus on California, Oregon and Washington.
The Redwood Coast Land Conservancy PO Box 1511 Gualala, CA 95445 707-785-3327
The Redwood Coast Land Conservancy is developing a coastal trail in the community of Gualala and is working on coastal access in Southern Mendocino County.
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Chet Boddy, Real Estate Appraisal, Sales and Consulting
43300 LR Airport Road, #59, Little River, CA 95456
707-937-4011, office
707-937-4818, fax
chet@chetboddy.com
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Copyright © 2002 Chet Boddy, All Rights Reserved
Chet Boddy is a Certified General Real Estate Appraiser, Realtor“ and real estate consultant who has lived on the Mendocino Coast since 1976. Look for this and other real estate columns on Chet’s web site at www.chetboddy.com
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