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Land Entity White Paper November 30, 1999 <br />11. Donation with Reserved Life Estate <br />A landawner may wish to donate land to a public entity or land trust, but retain the use of <br />all or a part of it during their lifetime or the lifetime of #he immediate famiiy. <br />12 Charitable Grft Annuity or Charitable Remainder Trust <br />A landowner may wish to donate a property to a governmental entity in return for an <br />annuity or fixed payment to fund retirement instead af cash sale. Such an arrangement may have <br />significant tax benefits for tandowners who have held property for long periods and can be an <br />effective estate-pIanning tnol. <br />13. Insta![ment Purchase <br />An installment purchase is simply a purchase spread over a term of years to benefit both <br />purchaser and seller. An interest rate is built into each installrnent payment and one of the <br />benefits of selling to a public entity is that the interest may be tax exempt, further increasing the <br />seller's retwrn. <br />14. Ralling Optiort <br />A rolling option is a series of optians ta buy portions of a property and thus extend the <br />puxchase over a period of years. Rolling optians are frequently used by pubiic entities that do <br />not have sufficient funds far a fair market purchase, but can expect an annual appropriation for a <br />portion of the sales price. Generally, the least attractive portion of the property is soid first so <br />that there is incentive for the public entity to aomplete the full purchase once the rolling option <br />period begins. <br />15. Right of First Refusal <br />Through a right of first refusal a Iandowner agrees to inform the public entity af their <br />intention to sell a property to another party, but providing the public with the opportuttity to <br />match the best offer. A right of first refusal would not bind the public entity to acqaire, but <br />would give it the Qpportunity to purchase if c}esired. <br />16 Bridge Financing/Land Trusr <br />A number of land trusts, such as the Trust for Public Land, acquire lands for public <br />entities and then resell to the public agency on terms that are beneficial to t,he public. Often a <br />land trust can move quickly and creativeiy to acquire property, particularly where the owner <br />must sell the property within a shart time frame or the property is thrcatened with development. <br />R-4