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Land Entity White Paper <br />November 30, 1999 <br />land trust or purchased by a governmental entity. The easement is a recorded restrictinn in the <br />property deed and therefore applies to all subseyuent owners. The conservation easement is a <br />flexibie instrument that can limit developFnent as much as the landowner desires. A <br />conservation easement is usually granted to a qualified non-profit land trust or government entity <br />that has the respansibiiity af monitoring and enfarcing the terms of the easement. A land trust is <br />either a local organization, or part of a national or statewide organization such as the Nature <br />Conservancy. Except for the fact that the development rights have been limited by the terrns of <br />the easement, the landowner continues to own, use and manage the property. Since the donation <br />of a conservation easement is treated as a charitable gift, the landowner is entitled to a chari#abie <br />deduction on his income tax equal to the difference between the fair market value and the <br />restricted value of the progerty. Since the easement reduces the value of the property, it can be <br />an important tool in reducing estate tax liability for properties that have appreciated rapidly. <br />With the conservation easement, the landowner retains full control over public access and <br />management of the property. <br />2. Purchare of Development Rights (PDR) <br />This technique is utilixed in many states and counties on the east and west coasts. A <br />governmental entiry cauld purchase the develapment rights {aiso known as purchasing a <br />conservation easement} to open land or agricuitural land in order to keep it undeveloped. The <br />conservation easement or development rights would be sold on a vvluntary basis. The value of <br />those rights usuatly varies from 34°/a tQ SO% of the fair market value af the property. The <br />landowner is able to obtain the equity or development value from the property, keep the land <br />open or in productive agriculture, keep it in the family and pass it on to the next generation, and <br />make needed capital investments with the proceeds. When development rights are purctiased, <br />the land is permanently restricted. <br />3. Conservation Buyer <br />A conservation buyer is a purchaser interested in acquiring special property for <br />enjoyment of the natural, agricultural and recreational yualities of the land. Such a buyer is not <br />interested in developnaent and will often donate a conservation easement to protect the land <br />permanently and take advantage of potential income and estate tax benefits available as a result <br />of restricting future development. <br />9. Lease <br />A lease is a short or long-term rental af land for specific puxposes. A lease gives the <br />lessee use or access rights to a property for a set period of time. The landowner receives income <br />and retains ultimate control of the property. While this is generaily a temporary arrangement, it <br />generally costs the lessee significantly less than a conservation easement or acquisition of the <br />land. <br />R - ?.