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L,and Entity White Paper <br />5. Lease-Option <br />November 30, 1999 <br />A lease-option agreement permits an entity to lease a property for a period of time with <br />an option to purchase the property during or at the end of the term of the lease. Such an <br />anrangement would permit the entity to determine whether it is in the publie's interest to acquire <br />the property, assess management costs and provide additional time to assemble sufficient funds <br />to connplete the purchase. In many Iease-option agreemenis, sorne or all of the lease payments <br />may be applied ta the purchase price. <br />b Management Agreemertt <br />A management agreement identifies a plan according to which a property will be <br />managed, either by a public entity or the landorvner. It permits a landowner and the public entity <br />to cooperate on managing a specific praperty to meet mutual objectives. White a management <br />agreement does not provide perrnanent protectian, it pxomotes cooperative stewazdship of a <br />proPertY- <br />7. Acquisition o, f Title or Development Rights by Cash Purchase <br />Cash purchase at the fair market value is generally the preferred option for most <br />landowners selling property ta public entities. VVhile in many instances abtaining cash payment <br />yields the greatest return to the landovmer, capital gains and other taxes may significantly reduce <br />net return and make other types af transactions mare attractive. <br />8. Creatiue Public Land Purchase <br />For tands that may be desirable for public acquisition and management, there are a <br />variety of techniyues for creatively interacting with private landowners that are discussed below. <br />The management ofpubIic lands rnay require extensive public resources and payment of <br />properiy taxes or payment in lieu of taxes. <br />4. Donahon or Gif1 <br />Far certain landowners the charitable donation of land to a public entity ar a nan-profit <br />land trust is attractive for taac, family and estate planning reasons. <br />10. Bargaih Sale <br />A bargain sale is a combination gift and sale af a property to a gow.-Imental or nonprofit <br />entity, The landowner receives the benefit of bath eash income and a charnable gift dedactian <br />for the difference between the fair market value anc3 the ba.rgain price. <br />R-3