saving land in western virginia spring 2012
DESCRIPTION
Saving Land in Western Virginia Spring 2012TRANSCRIPT
I n W e s t e r n V I r g I n I a s p r i n g 2 0 1 2
Saving Land
westernvirginialandtrust.org
Landowner speciaL edition
Look inside for information on how to protect your land and keep it in the family!
Saving Land
LANDOWNER SPECIAL EDITION
Nellie Jennings and Nancy Byerlepose before Sharp Top Mountainin Bedford County on Mrs. Jennings conserved farm.‘
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Two longtime Bedford County neighbors in the rolling foothills of the Kelso community just southeast of the Peaks of Otter have protected their land with conservation easements held by the Virginia Outdoors Foundation. Nancy Byerle and Nellie Jennings first learned about conservation easements by receiving copies of the Western Virginia Land Trust’s landowner special edition of Saving Land in Western Virginia, WVLT’s newsletter. “I read the ‘Ten Steps to Completing a Conservation Easement’ and that really got me interested,” said Jennings. She then contacted Bedford attorney and WVLT advisory council member Robert Lambeth to get started. The ladies, whose homes are separated by a field, live at what was once known as Peaksville. Both have lost their husbands and both want to leave the land as it has been for generations. Neither has children but they have ensured that their farms will remain for others. They talk on the phone every day. “This is a unique place and it has beautiful views of Sharp Top and other mountains,” Byerle said. Her 203-acre farm has been in her family since Civil War days. She is arranging for Mark Arrington, a good farming
neighbor, to buy the place, and he has three children. He has cut hay on the farm for years and she trusts him.She and her late husband, M.P. “Jimmy” Byerle, lived nearby and he worked for Piedmont Label in Bedford. “I couldn’t stand to see it subdivided,” Byerle said. “There really wasn’t anything else we could do with it.” When her great-aunt Rosa Arrington died at a remarkable 99 ½ years, Byerle stopped teaching school and bought her farm. Rosa Arrington, “a legend and an asset in the neighborhood,” operated a store at Peaksville for many years. Byerle lives in an old home on an adjoining 14-acre tract, also under easement. She’s pleased that several other neighbors have easements and she’s often asked about her land-saving action. “I tell them it’s a good thing,” she added. Nellie Jennings saved her 330 acres on the Kelso Mill Road. Her late husband, Wallace Jennings, helped his father milk almost 100 Holsteins for a long time. Her husband’s parents bought the farm when they married in 1919. Her home is much older than that. The couple arranged their easement before Jennings’ death two years ago because “we wanted to keep the farm from being developed.” She’s “well satisfied” with the action. “I think people need to save
Two Bedford neighbors save their beautiful views
by George Kegley
The Jennings farm
The Peaks of Otter rise above Nellie Jennings’ farm
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In the twenty years I traveled the islands of the Caribbean and ports of the Mediterranean as a boat captain, I could clearly see the changes to these special places. Once idyllic beaches became covered end to end with resorts and the subsistence farms and fisheries that the locals
depended on were lost or depleted so few could support their families in a traditional manor. Populations in these little islands continued to grow exponentially (as has our worlds population, but it is more visible on a small island) while foreigners bought up all the best land and beaches for their resorts. These changes were clearly not sustainable. And it has caused huge cultural changes for the islanders. Now they have more stuff but also a culture of greed and drugs. Now they have daily cruise ship visits and hawk Asian-made tee shirts and trinkets but have lost touch with their own culture and
It’s always a bittersweet occasion when an opportunity for personal advancement comes with the departure of a friend. Roger Holnback has been executive director at WVLT since 2001, which encompasses my entire time here. I arrived in the fall of 2006, family,
furniture, pets and the kitchen sink all packed in a U-Haul, moving back to southwest Virginia after 16 years spent in the Shenandoah Valley, North Carolina and finally Maryland. Roger had just hired me as the new project manager at WVLT. You’ve all read over the years in this publication, in the newspaper and elsewhere of WVLT’s accomplishments while Roger was in charge—thousands of acres of land conserved with dozens and dozens of conservation easements, donations of land at the Peaks of Otter and along the Blue Ridge Parkway, national accreditation, numerous state awards and an overall raising of awareness of our conservation mission in the community.
The Western Virginia Land Trust was organized sixteen years ago “to promote for the benefit of the general public the preservation, protection, and conservation of natural and cultural resources.” To achieve this goal our mission includes the education of landowners and the general public to
encourage and create open space easements as well as to solicit the essential donations which enable us to carry out our goals. This “Special Edition” of Saving Land is just one tool we use to explain the many advantages of placing one’s land in a conservation easement. It is also a way of expressing our sincere appreciation to all of our landowners who have contributed so much to the quality of life in southwestern Virginia—thank you so much! We publish this annual special issue to help potential easement donors learn more about the popular option for landowners who want their land to remain rural or agricultural after they’re gone. With a conservation easement, you can make sure
that your wishes for the land are carried out forever. Please take time to read through these materials to see if a conservation easement might be right for you. It’s totally voluntary—after all, your land belongs to you, and you’re free to do with it as you choose. More than 350 landowners in our region have chosen to permanently protect their land with an easement. If, after reading this guide, a conservation easement interests you, please call the staff at the Western Virginia Land Trust at (540) 985-0000 to learn more. And one more important thing — over the years, many of you may have been working with our now-retired executive director, Roger Holnback. On behalf of the Board of Directors and Advisory Commission, I’d like to publicly tell Roger—again—how much we appreciate his service to WVLT over the last 10-plus years. Roger retired in February, but he’s been replaced by his very dedicated and capable assistant, David Perry. Our new director is a native of Blacksburg and has been working with the land trust since 2006. He truly values preserving the beauty of our part of the state and I know you’ll enjoy working with David!
Roger Holnback
From the President
Sandy Light
From the Director From the Outgoing Director
continued page 18continued page 17
David Perry
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WVLT Trustee Janet Scheid of Vinton and former Executive Director Roger Holnback of Roanoke County were both honored at the Roanoke Valley Cool Cities Coalition’s 2012 Affiliates Conference & Cool Citizen Awards, held at the Claude Moore Education Complex in Roanoke on March 14. Scheid, who also chairs the land trust’s stewardship and strategic planning committees, was honored for her “ongoing efforts to support energy conservation and greenhouse gas reduction in Roanoke County and the region.” Scheid is a founding member of the land trust and served as its president from 2008-11. Holnback, who retired from the land trust in February after 10 years with the organization, was recognized for leading “the Land Trust to preeminent status in Southwest Virginia,” and it was mentioned that his work to conserve Carvins Cove Natural Reserve and Mill Mountain Park was noteworthy. The Cool Cities Coalition also said, “The work of the Land Trust supports preserving tree cover that helps fight C02 buildup and climate deterioration.” According to their website, the “Roanoke Valley Cool Cities Coalition is THE local organization in the Roanoke Valley that is tackling energy policy and the difficult problem of global warming through education, outreach, and community actions.”
44 NEWSWestern Virginia Land TrustPromoting the conservation of western
Virginia’s natural resources – farms, forests, waterways, and rural landscapes.
722 First St., SW, Suite LRoanoke, VA 24016-4120Phone/fax (540) 985-0000
www.westernvirginialandtrust.org
BOARD OF TRUSTEESSandy Light, President
Stephen M. Claytor, Vice PresidentF. Fulton Galer, Treasurer
Whitney H. Feldmann, Secretary
Lynn M. DavisWalter M. Dixon, III
Lucy R. EllettPeter M. FellersRobert H. Hunt
George A. KegleyJames L. Kermes
Kenneth L. LanfordJ.W. “Bill” Mason
John H. Parrott, Jr.Janet Scheid
Daniel C. SummerlinJames M. Turner, Jr.
Advisory CouncilLiza T. Field
William M. HackworthTalfourd H. Kemper
Robert B. Lambeth, Jr.Barbara B. LemonStephen W. LemonJeanne M. Martin
John B. Williamson, III
StaffDavid C. Perry
Executive Director
Cover photo: Nellie Jennings (left) and Nancy Byerle pose on Mrs. Jennings’
farm near Sharp Top in Bedford County. Credit: David Perry.
WVLT Trustee, Former Director Honored
Join WVLT at Botetourt Wine Trail Concert April 28 Join the Western Virginia Land Trust at the second annual Wine Trail of Botetourt County Summer Concert Series on April 28 at the Daleville Town Center. From 12-6 PM, WVLT will be pouring beer as the crowd listens to the sounds of Seldom Scene with the Farewell Drifters and Tony Furtado. For more information, visit www.botetourtwinetrail.com/concert.html. Come on out, enjoy some great music and beautiful views, and support the land trust!
April 28- 12noon-6pm Seldom Scene
with The Farewell Drifter and Tony Furtado DALEVILLE TOWN CENTER
May 19- 5pm Beggar’s Circus
FINCASTLE VINEYARD AND WINERY
June 16- 6pm Solrevolt
VIRGINIA MOUNTAIN VINEYARDS
August 11-5pm The Fat Daddy
Band BLUE RIDGE VINEYARD
September 15- 12noon-6pm TBA
DALEVILLE TOWN CENTER
Janet Scheid is presented her award by Cool Cities’ Mark McClain.
Roger Holnback (l) is presented his award by Roanoke City Councilman Bill Bestpitch.
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The fourth annual Race for Open Space will be held on June 2, 2012 at Green Hill Park, in Roanoke County, VA, west of Salem. The event is a partnership with Roanoke County Recreation, Parks and Tourism. You asked for it: New this year is the 5K Classic race, which will complement our 3K run/walk by providing a venue for runners seeking a bigger challenge! The 5K Classic will begin at 8:30AMand the 3K Run/Walk will begin at 8:45 AM. Packet pick-up will be held at Fleet Feet Sports on Franklin Rd. in Roanoke on Friday, June 1 from 4-7 PM, and will begin at 7:30AMthe day of the race. The entry fee is $20 in advance and $25 the day of the race. All proceeds benefit the land preservation efforts of the Western Virginia Land Trust. Every participant will receive a 100 percent organic cotton t-shirt and a biodegradable BioGreen water bottle.
Age group and overall winners in each race will also receive awards. In addition, everyone who fundraises and brings in $100 or more will receive a special prize, and the top overall fundraiser will receive a prize pack. For more information or to register, visit the race website at westernvirginialandtrust.org/race, call (540) 985-0000 or e-mail [email protected].
NEWSFourth Annual Race for Open Space is June 2
Leave a Legacy with the Western Virginia Land Conservation Fund
Did you know that when the Western Virginia Land Trust accepts a conservation easement, it’s agreeing to permanently uphold and defend the landowner’s wishes for his land? As they say, forever is a mighty long time, and that’s why WVLT established the Western Virginia Land Conservation Fund at the Foundation for Roanoke Valley two years ago. We estimate that the land trust needs about $250,000 in a dedicated reserve to monitor and, if needed, legally defend conservation easements in a court of law. This level of financial wherewithal is also required for WVLT to maintain its national accreditation with the Land Trust Alliance. Thanks to generous gifts from several lead donors, we currently have more than $84,000 invested with the Foundation for Roanoke Valley—about one-third of our goal. But we still have a long way to go to meet our goal. Won’t you please consider a tax-deductible gift to the Western Virginia Land Conservation Fund? A contribution to the fund can be made
in your will, designated in a life insurance policy, made through the sale of stock, or by cash or check. Please help WVLT make sure that the land we protect will remain beautiful, green and rural—forever. For more information, contact David Perry at [email protected] or (540) 985-0000, or Foundation for Roanoke Valley Executive Director Alan Ronk at [email protected] or (540) 985-0204.
Your Land, Your Choices
Decisions you make about your land will shape our landscape for generations to come. The Western Virginia Land Trust hopes that you will be interested in options to conserve our scenic and rural places while meeting your personal goals and potentially enhancing your financial security. The information in this magazine is of critical importance if any of the following apply to you:
• Youwanttopreservesomethingspecial about your land• Youwanttokeepyourlandinthefamily• Youcanuseadditionalincomefromyour land without selling it• Youcanuseasubstantialincometax deduction• Youareconcernedaboutestatetaxes
The Western Virginia Land Trust (WVLT) is a private, nonprofit organization formed to promote the conservation of western Virginia’s natural
resources—farms, forests, waterways and rural landscapes. We work with property owners to identify and protect all the conservation values on their land, such as open space (forest and farmland), wildlife habitat, water resources, or outdoor recreation.
Conservation easements can be used to accomplish these goals by limiting intensive develoPMent while keeping land in private hands and providing landowners with substantial tax benefits and even cash compensation. A conservation easement is a flexible and voluntary tool that lets you determine the legacy of your land. After reading this magazine, if a conservation easement seems like a natural fit for you, or if you just need more information to see if one might work for you, please call us at (540) 985-0000 or check out our website at westernvirginialandtrust.org. You can also attend one of the free evening landowner workshops in your area—see the schedule of events on page 7 or the back cover.
Landowners featured in this issue.
TesTimonial
“I did a conservation easement because it’s the right thing to do.”- Tom Kirlin
Tom signed a conservation easement with the Western Virginia Land Trust and the Mountain Castles Soil and Water Conservation District on his property along Sinking Creek in Botetourt County.
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The Western Virginia Land Trust does not provide legal or tax advice. You are strongly encouraged to consult with your advisors on estate planning and tax matters related to the donation of a conservation easement and have an attorney assist you in drafting and the review of your easement throughout the process.
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TesTimonial
“When we’re gone, we want our land to be
used in a similar fashion. We hate to see land
cut up, with houses all over in a nice rural
community.”
- Debbie Bright
Debbie and husband Larry donated a conservation easement on their Floyd County farm.
If you’d like to learn more about conservation easements, staff will be more than happy to come out to your property or home and discuss your land conservation options with you. Typically, meetings last a few hours and involve staff viewing the property by foot or farm vehicle, and sitting down to learn more about your goals for your land and your specific situation. Land trust staff can direct you to qualified legal assistance, financial advisors and appraisers to help you with drafting a conservation easement, in addition to identifying the best holder of your conservation easement (typically, the Virginia
Outdoors Foundation or the Western Virginia Land Trust).
We’re also happy to mail information to you, including sample draft easements or a copy of our informative DVD for landowners, Your Land, Your Choices. Landowners are encouraged to visit the WVLT website for more information at www.westernvirginialandtrust.org. Just give us a call at (540) 985-0000 or send e-mail to Roger at [email protected] or Dave at [email protected].
Want to know more?Call to schedule a meeting with WVLT staff or request more information
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Attend a conservation workshop in your community!The Western Virginia Land Trust has scheduled ten informative workshops this spring for anyone who would like to know more about conservation easements. The workshops will be held from 6:30-8 PM and are free and open to the public. A schedule is below. For more information or directions, contact Roger Holnback at [email protected] or (540) 985-0000.
Spring 2012 Landowner Workshop Schedule
Date County Location 3/29/2012 Franklin County Rocky Mount Main Library4/3/2012 Bedford County Bedford Welcome Center4/5/2012 Craig County Craig County Farm Bureau in New Castle4/10/2012 Botetourt County Fincastle Library4/12/2012 Montgomery County* Blacksburg Library4/19/2012 Roanoke County Bent Mountain Fire and Rescue5/1/2012 Floyd County Floyd Country Store
* Generously sponsored by the Hawk’s Ridge Fund of the Community Foundation of the New River Valley.
A conservation easement is a voluntary, deeded agreement that permanently protects land from subdivision and commercial develoPMent. If you’ve ever heard a friend, neighbor, or family member say they’ve “put their land into the land trust,” they mean they’ve donated a conservation easement to an organization like the Western Virginia Land Trust. Why is it called a “donation”? It’s because the IRS considers a conservation easement to be a charitable gift that you give to a land trust, just like a check you’d write for a child’s FFA fundraiser or the volunteer fire department. The land trust that accepts the easement agrees to enforce the terms of the easement so that your wishes for your land are carried out—forever!
An easement protects your peace of mind by preserving the scenic, agricultural, natural or historic qualities of your land while improving your financial security through tax benefits and tax credit sales.
Easements are: Voluntary: Conservation easements are completely voluntary and initiated by landowners who wish to forever protect and preserve the land they love.
Private: Conservation easements do not require public access, and landowners retain total control of who visits their property. You still own your land and can sell it, leave it to your heirs, or give it to someone else.
Permanent: Conservation easements permanently protect land. You decide what special elements of your land get preserved forever.
Flexible: Traditional rural land uses such as hunting, fishing, farming and forestry are very compatible with conservation easements. The agreements are as individual as the lands they protect and the people who own them.
Financially Beneficial: Donating a conservation easement can provide significant financial benefit to landowners and their heirs:
• Virginiastateincometaxcredits,whichcan be sold• Federalincometaxdeductions• Estatetaxreductionsandexclusions• Reducedpropertytaxes
Donating an easement creates a permanent legacy, and such a decision should not be made in haste. WVLT’s experienced staff will be happy to meet with landowners and their families, at no cost or obligation, to discuss all aspects of conservation easements.
Conservation Easements8
TesTimonial
“My husband and I count ourselves as fortunate to have made a small contribution to the future and to have maintained one more permanent view from the Blue Ridge Parkway.”- Jeanne Martin
Jeanne and husband Robert signed conservation easements with the Western Virginia Land Trust, the Virginia Outdoors Foundation, and the Blue Ridge Soil and Water Conservation District to protect their property along the Parkway in Franklin County.
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Ten Steps to Completing a Conservation Easement
Continued on page 10
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These are the typical steps involved in donating a conservation easement. While these steps show the typical procedure, there are some situations where the steps vary depending on the easement holder. The process may take anywhere from a few months to more than a year to complete. The landowner can change his or her mind about the easement at any time until the easement deed is signed and recorded at the courthouse.
Step 1: Consideration of Easement Often the first step in completing an easement is a phone call to the Western Virginia Land Trust. The landowner and land trust staff discuss the landowner’s goals, their wishes for their land, and potential easement holders. Afterwards, the landowner usually consults with family and their attorney or financial advisor.
Step 2: Site Visit Staff from the potential easement holder and the landowner meet and view the property. During this visit, staff analyzes the land’s features and resources.
Step 3: Preliminary Agreement The landowner secures a knowledgeable attorney to help them with their conservation easement. (WVLT can provide a list of attorneys on request.) The landowner and their attorney reach a preliminary agreement with the easement holder on the proposed terms of the easement, called a draft easement. If there is a mortgage on the property, the landowner or their attorney will need to contact the lender to arrange for the lender’s agreement.
Step 4: Requirement for Title Opinion and Letter of Intent The landowner’s attorney provides a preliminary 60-year title opinion (“certification of title” or “title report”) to the easement holder. This is a search done at the courthouse by a title company to show that the landowner has clear title to the land. In addition, the landowner submits a letter to the easement holder stating their desire to donate the easement.
Step 5: Staff Research Staff completes research on the property, including obtaining information on its designation in the county’s comprehensive plan, potential inclusion of the property in various state plans, presence of endangered species, and other information. Staff also creates a variety of maps and obtains deeds and recorded plats of the property.
Step 6: Board Approval Each draft easement proposal must be approved by the easement holder’s board of directors. The board may accept the draft easement, accept it subject to changes, or reject it. Following a meeting of the board, staff will inform the landowner of the board’s action. If the board conditions approval on modifications to the proposed terms of the easement, the landowner must consider and agree to the changes in order to proceed. Board approval does not obligate the landowner to complete the easement. The landowner may have a limited amount of time from the date of approval, such as two years for a Virginia Outdoors Foundation easement. However, if the landowner proposes a change in any terms of the easement that would result in a less restrictive easement than that approved previously, the easement will need to be reapproved by the board.
Step 7: Follow-up site visit Staff makes a return visit for documentation of the property, photographing key features and natural and open-space resources, as well as all structures and any areas of particular mention in the draft easement. Staff labels all photos and completes a photo point map showing all key property features, roads and structures.
Step 8: Baseline Documentation Report Staff details the features of the property around the time of the easement is recorded in a document called a Baseline Documentation Report (BDR). The BDR may include: a summary sheet, topographic map showing the boundary of the property, aerial map, county tax maps, available survey plats and photographs keyed to a map. The landowner reviews the information, then signs and returns an acknowledgment attesting to its accuracy in describing the land and structures at the time of the donation.
10 Step 9: Finalizing Easement Draft The attorney for the landowner produces the final signature-ready easement. The landowner then signs the easement. If there is a mortgage on the property, the lender will sign the easement as well. Then it is sent to the easement holder for recordation at the courthouse.
Step: 10 Recordation The easement holder signs the easement and records it in the Clerk’s Office of the County Circuit Court. A copy of the recorded easement is sent to the landowner and/or their attorney.
Frequently Asked Questions
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Virginia Outdoors FoundationThe Virginia Outdoors F o u n d a t i o n ( V O F ) , W V L T ’ s p r i m a r y conservation partner, is a state foundation that holds most conservation easements in Virginia. Landowners who donate a conservation easement to VOF have the benefit of the state’s resources and authority behind their easement. A VOF easement also provides an extra level of protection for the land from eminent domain takings. However, if an easement with VOF is not the best fit for you or your property, there are many other potential e a s e m e n t h o l d e r s , including the Western Virginia Land Trust (see “What organizations can hold my conservation easement?” in Frequently Asked Questions on this page). WVLT staff can help you find the best fit for your situation.
For more information on the Virginia Outdoors
Foundation, visit:
virginiaoutdoorsfoundation.org or call their Blacksburg office at (540) 886-2460 or
their Staunton office at (540) 886-2460.
Will I still own my land after I do a conservation easement?Yes! The land is still yours, and you are free to sell it, give it away, or do most anything you want with it. What you’ve given up is the right to develop your land in ways that are forbidden by the easement.
Does a conservation easement give the public access to my land?No. You still decide who visits the property. You can welcome anyone you wish or post the property, just as you can today.
Can I still leave the land to my children? Yes. In fact, a conservation easement may reduce or eliminate inheritance taxes, and keep your heirs from having to sell the land to pay the taxes on it.
What if there is a mortgage on my land? You can still place a conservation easement on the property, but the lender must agree.
What size properties qualify for conservation easements? It depends. Some very small properties qualify for conservation easements if they protect an important resource, such as a wetland, a view from the Blue Ridge Parkway, or endangered species habitat.
Can I change my mind after calling about a conservation easement? Yes. Although conservation easements are permanent once you sign and record the agreement at the courthouse, you are free to change your mind at any point before then.
What organizations can hold my conservation easement?The Virginia Outdoors Foundation (VOF) holds most of the conservation easements in Virginia. The Western Virginia Land Trust also holds conservation easements. In addition, several other public and private agencies may also hold easements, including:• Anycityorcountygovernment• VADept.ofForestry• VADept.ofConservation&Recreation• VADept.ofGameandInlandFisheries• WildTurkeyFederation
11• TroutUnlimited• DucksUnlimited• TheNatureConservancy
…and others. The staff at the Western Virginia Land Trust can help identify the best conservation easement holder for your property, based on your goals for your land, its size, current land use, natural resources that are present, and other factors. Because a conservation easement is permanent, finding the right easement holder is an important part of the process.
Why is it called “donating” a conservation easement?The IRS considers signing a conservation easement to be a charitable gift, just like you might make to your church or a little league baseball team. What you’re “giving away” are the rights to develop your land in certain ways, such as putting more than a certain number of houses on it, or subdividing it more than a certain number of times.
Is a conservation easement the same as “putting my land in the land trust?”Many people use these terms interchangeably, and they mean the same thing—signing a conservation easement with a local land trust.
What kind of expenses will I have when protecting my land with a conservation easement? There are costs associated with conservation easements. These will vary depending upon the property involved, the complexity of your easement, and who the easement holder is. For example, the Western Virginia Land Trust requires a contribution to our stewardship fund of around $8,000 to ensure that
the organization has the funds to monitor and defend your easement in the future. Generally, you can expect to pay for a special appraisal of your property, as well as your attorney’s and financial advisor’s fees for reviewing your easement. For most people, these expenses will run in the range of $5,000 to $10,000. WVLT does not charge for its assistance, but if WVLT will be the holder of your easement, we require a one-time contribution to our endowment fund to help offset the costs of enforcing your easement forever (a mighty long time!). But remember, the financial benefits of an easement – often hundreds of thousands of dollars in sellable tax credits–far outweigh the upfront expenses. Additionally, the Virginia Outdoors Foundation manages a state fund that can assist landowners with direct conservation expenses with priority given to family farms and based on financial need.
How long does it take to complete a conservation easement? Usually a few months and sometimes a year or more. Don’t panic—this doesn’t mean months of hard work. Many landowners want to proceed slowly and deliberately with such a major decision, and there can be a wait between some of the steps in the process (see “Ten Steps to a Conservation Easement” on page 9).
How do I get started or find answers to more questions? Call WVLT at (540) 985-0000. We’ll provide confidential assistance with no pressure — just the facts to help you make the best choice for your family and your land. Remember we make no money from assisting you—just the satisfaction of helping local landowners make educated decisions.
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TesTimonial
“We are honored to work with the Land Trust to preserve the environment for the future and for those citizens downstream. What a fine organization. They don’t just talk about the environment. They do something about it.”- Sky Preece
Sky signed a conservation easement with WVLT and the Mountain Castles Soil and Water Conservation District to protect creek frontage and wetlands on his Botetourt County land.
12 What’s the Fine Print in a Conservation Easement?
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Each agreement is unique, but all share some general starting points. Following is a summary of what’s included in a sample easement. Remember, some points are negotiable as long as they serve a worthwhile conservation goal, and many landowners request more specific terms to craft a document that will meet their needs and protect some unique resource on their land. Keep in mind that conservation easements only restrict the specific activities mentioned in the document. If you don’t see a right or an activity specifically restricted in the easement, you aren’t giving it up.
1. Division - Usually, properties up to 100 acres will be preserved as undivided tracts, those between 100 and 200 may be divided once, and then one division is permitted for every additional hundred acres, up to a point. Large tracts may also be preserved with no divisions, or fewer than the maximum allowed.
2. Buildings and Structures – Typically a maximum of one single-family home is permitted on each parcel, along with associated outbuildings such as garages, sheds, barns and other farm structures. Provisions for ‘secondary dwellings’ such as cabins or guest cottages are frequently allowed. There are usually size limits placed on all dwellings. If your easement allows you to divide your land, each parcel can contain a home and associated structures. Easements may also be drafted to preserve land with fewer or no buildings. And if your easement protects important views, such as Blue Ridge Parkway or Appalachian Trail overlooks, there may be further restrictions on where building can take place.
3. Industrial or Commercial Activities Agriculture, forestry and equine activities are permitted, along with temporary outdoor activities that do not permanently change the appearance of your land, as well as indoor businesses within permitted buildings (house, barn, etc.). A wide range of agribusiness options are available, such as a winery that uses grapes grown on the property or a produce stand to sell what’s grown on the farm. Depending on the terms of your easement and your goals, certain commercial or industrial activities may be prohibited to protect the character of the land.
4. Forest Management - Timber harvests must include best management practices (BMP’s) to control erosion and protect water quality, and a forest management plan is required before commercial timbering begins. Logging provisions can specify management plans to protect scenic forests, animal habitat, or other specific resources, and personal uses such as firewood cutting are not restricted.
5. Trash - There are no restrictions against brush piles, composting, farm machinery storage or other agriculture or wildlife management practices, but large amounts of trash, refuse or junk will not be permitted on your land. You will not be responsible for cleaning trash brought in by floodwaters or other situations beyond your control.
6. Signs - You can still post your land and have signs to show your address, advertise the sale or lease of your land or goods or services produced there or direct visitors, but billboards and other large signs are not permitted. There may be a limit on the size of the signs allowed on the property.
7. Riparian Buffer – A buffer zone of grass or trees alongside creeks and rivers, usually a minimum of 35 ft. in width, may be required to protect water quality. Depending on the situation, fencing to keep cows and livestock out of the water may be required. Fortunately, the local Soil and Water Conservation District can often help pay for the construction of fencing, wells and remote waterers so that livestock still have access to clean water without polluting our streams.
8. Alternative Energy Structures - A conservation easement will usually allow for the construction of alternative energy structures such as wind turbines or solar panels. There may be guidelines that limit their size, number and placement.
9. Grading, Blasting, Mining - You can still construct private roads and utilities to serve permitted structures. Farm roads and ponds are also allowed, but mining and other earth removal is prohibited. This does not in any way restrict cultivation (except possibly alongside streams or creeks).
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10. Inspection - The easement holder may visit your property annually after giving reasonable notice. Inspections only deal with the terms specified in the easement — things that are simple and obvious to monitor.
11. Notification - You or your estate will need to notify the easement holder within 60 days of any transfer or sale of the land, so the easement holder can contact the new owners.
12. Enforcement - When you sign a conservation easement, the easement holder has the obligation to enforce its terms to protect your property. If there are
violations of the easement at any time in the future, they must be stopped and corrected and, if need be, enforced in a court of law. Essentially, easement terms assure that your land will always stay pretty much the way it is now. The only rights you give up are those specifically listed in your easement. If your general goal is to preserve your land but you don’t like a specific provision listed above, don’t assume that an easement can’t work. When a landowner and a land trust have mutual goals to protect the land, easement terms can often be arranged to preserve what is special about the property as well as meet the owner’s unique needs and circumstances.
Cash for ConservationVirginia tax credit sales offer landowners new options
The primary reason landowners donate conservation easements is to preserve natural, scenic, agricultural or historic resources of their land forever. Many want to establish a legacy for their children and grandchildren. Most value the peace of mind from knowing that their land will always be protected from develoPMent. However, landowners can’t ignore the value of their property. For many rural landowners, real estate is their primary asset and permanent reduction in its value can’t be taken lightly. Fortunately, there are many financial benefits to donating conservation easements. Remember, the IRS considers a conservation easement to be a charitable gift because you’re giving away the ability to do certain things with your land—and that has a value! A certified appraiser must determine an easement’s value (the basis of all tax advantages) by showing the difference between what land is worth before being conserved and what it’s worth after being placed under easement. For example, if a $500,000 farm were worth $300,000 if the owner gives up the right to turn it into a subdivision, the easement value would be $200,000.
1. State Tax Credit Virginia offers easement donors a tax credit worth 40% of their easement value. This credit can be applied against state income tax for up to ten years. (Using our example above, 40% of $200,000 equals $80,000 in tax credits.) As a result, many easement donors won’t have to pay state income tax for ten
years. However, even after eliminating state income taxes for ten years, many easement donors would still have significant tax credits unused. Since 2003, the unused tax credit can be sold. Any owner of Virginia land who donates land or an easement for conservation purposes is entitled to a tax credit worth 40% of their gift. Any portion of the tax credit may be sold or given to other Virginia taxpayers. This credit may even be sold by out-of-state residents who donate conservation easements on Virginia property. WVLT is not directly involved in the sale of conservation tax credits, but can provide a list of brokers upon request. Prospective easement donors should also consult their own financial and legal advisors.
2. Federal Income Tax Deduction The donation of an easement is treated as a charitable gift and the value of the easement may be deducted from the donor’s income for purposes of calculating income taxes. In recent years, the amount of the deduction that may be claimed and how long it can be carried forward have varied as Congress has let tax provisions expire and then renewed them at a later date. For the most up-to-date information on the current federal income tax deduction, contact the land trust at (540) 985-0000.
3. Estate Tax ReductionEstate taxes often surprise heirs as land values increase. In some cases, a landowner’s heirs must sell
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Cash for Conservation, continued from page 13
Requiring a conservation easement to be placed on a property can be stipulated as a term of the landowner’s will. Though this seems like an easy provision to make, it’s critical that a knowledgeable attorney and the receiving land trust help craft such language. Conservation
easements granted through wills can help reduce or eliminate inheritance taxes, but do not provide any benefits to heirs through other federal or state tax incentives. Before considering this option, please contact WVLT or your legal counsel for more information.
Saving Land Through Wills
The Western Virginia Land Trust will hold a continuing education workshop for attorneys, CPAs, and other professionals on May 3, 2012. The workshop will cover the basics of conservation easements including legal and financial aspects and the appraisal process. The live session will be held from 9AM– 12 PM at the Roanoke Higher Education Center, and it will be simulcast over the internet and archived for future viewing. CLE credit will be awarded and each participant will receive course materials and a certificate of completion. The cost
is $179 per person, and everyone must preregister by April 27. Presenters include attorneys Robert Lambeth and Stephen Lemon, CPA Fulton Galer, appraiser Sam Long, and conservation easement donor David Hurt.
You can register online at www.westernvirginialandtrust.org/cle. To request a mail-in registration brochure, call the Land Trust at (540) 985-0000 or e-mail [email protected].
Continuing Education Workshop—Live and Online
the property just to pay estate taxes. By donating an easement, landowners can reduce these taxes in two ways: First, the estate will have been reduced by the value of the easement (smaller estate value means less — or perhaps no — estate tax due). Second, the executor of the estate may elect to exclude up to an additional 40% of the remaining value of their land from estate taxes, up to $500,000.
4. Reduced Real Estate Taxes The Code of Virginia requires local jurisdictions to assess land protected by a conservation easement
only for the value of its permitted uses. In other words, if your land values are going up due to
residential subdivisions, your land assessments should not go up if an easement prevents such use. In addition, if your county offers land-use taxation, a conservation easement guarantees that your property qualifies. If you now qualify for land-use taxation, a conservation easement probably won’t make any more difference in your real estate tax bill today. But as times and land values change, it could mean big savings in the future.
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TesTimonial
“I hope my example will encourage others to take similar action to add their support
to preserve the beauty of the valley
which surrounds us.”-Ned Yost
Ned donated a conservation easement to WVLT and the Virginia Outdoors Foundation to protect his historic McDonald’s Mill property in Montgomery County.
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17 I’ll miss Roger’s passion for saving land. He genuinely loves to meet on the farm with a landowner and talk about his property, its history, what the family hopes to do with it and how WVLT can help. I’ll also miss his sense of humor and his amicable management style. He has mentored me in the details of land preservation, which stretch across such topics as tax law, ecology, land use, biology, forestry, political science and many more. For the opportunity to work at WVLT and for his tutelage, I owe him my thanks. As WVLT’s fourth director, it’s vital that I look ahead and tackle the many challenges that face our organization. Like most non-profits, money has become a struggle, and while WVLT is in a better position than many, increasing the breadth and depth of our revenue streams is vital. Private foundation grants that we once relied on have dried up, and we depend almost exclusively on the support of our local donors and businesses. Bringing more donors and businesses into the organization is essential. At the board’s direction, I’ll also be working to make WVLT more relevant to the citizens in the counties we serve, by reaching out to elected officials, conservationists and other residents to identify their local conservation priorities and form county chapters or advisory groups. We plan to take a more active role with the public schools, and offer more outreach programs to the general public such as environmental film screenings followed by discussions. And we also want to emphasize that conservation is a tremendous driver of economic development—just ask anyone whose job has brought them here from another area what they think of the scenery! But in the end, WVLT will continue to do what it does best—serve as Western Virginia’s local land trust. Our bread and butter will always be meetings with farmers over the kitchen table, drafting and recording conservation easements, and enforcing those agreements into perpetuity with annual site visits and keeping good relationships with our landowners. With the help of you—financial supporters of WVLT, conservation easement donors, elected officials and others—we can make sure that western Virginia is just as beautiful, clean and vibrant for our children’s children as it is today. I thank the WVLT Board of Trustees for placing their confidence in me to make this dream a reality. Now let’s go save some land!
Director from page 3the land so the next generation will be able to enjoy farm land like we do.” Jennings said she’s been surprised by the amount of positive feedback she’d received. “I was in the CVS a while back and someone came up to me and said how pleased they were that we had protected the farm,” she said. Lambeth said it was a pleasure to work with the Jennings. “Wallace Jennings was one of the area’s best farmers and took great pride in the appearance of the farm. I’m pleased that both farms will continue as open space.”
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Jennings from page 2
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Don Alouf
The Alouf property - south fork of the Roanoke River
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history. They survive, but to what end? What is their quality of life now and what does the future hold for their descendants? When talking to groups I often have started my presentation with the story of how I learned about sustainability and my passion for the conservation work at WVLT. When I came to Roanoke on business back in 1996, I found myself in a wonderful place that was not as yet lost to sprawl and inappropriate development. We had the Appalachian Trail and the Blue Ridge Parkway, we had the Jefferson National Forest, we had the Clean Valley Council and were starting a greenways program. We had tens of thousands of acres of farms and forest around us still in private hands, with families that had held onto those tracts for generations. But I was raised in New Jersey where dairies and truck farms had yielded to suburban sprawl back in the 50’s and 60’s. I had experienced unsustainable growth there and in the islands. I could see the writing on the wall. So I acted. I started volunteering with the Appalachian Trail protecting its viewsheds, and then was offered a full time position in Harpers Ferry when the business I came to town
for closed. Then WVLT called. What a great opportunity and what great timing for me, as I hadn’t as yet signed a lease in Harpers Ferry. I got to stay in Roanoke and play a meaningful role in protecting southwest Virginia. I could play a part in preserving our special places, farms and forests for our children and grandchildren. With a great board and co-workers like David Perry, the land trust has made a real difference. 85,00 acres and counting--WOW! But WVLT is not done, and while leadership shifts into the capable hands of David Perry, the organization will continue to do great things and build on the foundation that Rupert Cutler and I helped lay. And I will be around, continuing to advocate for a more sustainable future for southwest Virginia. And I will continue to support WVLT financially, as I know all too well how much it depends on its local members and friends to keep the doors open. So remember a healthy WVLT is critical to a sustainable quality of life for us all, and please play your part and give. Be a part of WVLT reaching 100,00 and someday 500,000 acres of protected private and public lands.
Outgoing Director from page 3
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Don Alouf, a retired Salem oral surgeon, saved 150 acres of pasture and mountainside in Montgomery and Floyd counties with a conservation easement for the benefit of his two sons. His conservation easement, recorded in 2011, is held by the Virginia Outdoors Foundation. WVLT’s former executive director, Roger Holnback, met with Alouf in 2007 and helped get him started on the conservation easement process. Alouf bought the tract, in the Piedmont community south of Shawsville and Alleghany Springs, in 1982 and he’s been clearing brush, building fences and making improvements ever since. Located at the foot and side of Hale’s
Mountain, near the headwaters of the south fork of Roanoke River, the land is about one-third pasture and two-thirds wooded mountainside. Alouf remodeled a 1900 house with parquet floors and built a swimming pool. His sons, Greg and Steve, both Salem doctors, built a plank fence. Two very old iron gates mark the entrance. “I want my place to remain like it was…I want to protect the land,” Alouf said. His easement permits construction of two houses. One-third of the Alouf property is on the south side of the mountain in Floyd County and the remainder is in Montgomery County. A neighboring farmer grazes cattle on the cleared land to keep the pasture under control. Alouf also
Don Alouf protects mountain land in two counties
The Alouf home
Cows in the pasture on the Alouf farmDon Alouf
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By George Kegley
nonProfiT org.U.s. PosTage
PaidWytheville, va
PermiT no. 172
722 First Street, SW, Suite LRoanoke, Virginia 24016-4120Phone/Fax 540/985-0000
1-800-359-6608 Serving the Roanoke and New River Valleys
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The Western Virginia Land Trust has scheduled ten informative workshops this spring for anyone who would like to know more about conservation easements. The workshops will be held from 6:30-8 PM and are free and open to the public. A schedule is below. For more information or directions, contact David Perry at [email protected] or (540) 985-0000.
Attend a conservation workshop in your community
Date County Location
3/29/2012 Franklin County Rocky Mount Main Library
4/3/2012 Bedford County Bedford Welcome Center
4/5/2012 Craig County Craig County Farm Bureau in New Castle
4/10/2012 Botetourt County Fincastle Library
4/12/2012 Montgomery County* Blacksburg Library
4/19/2012 Roanoke County Bent Mountain Fire and Rescue
5/1/2012 Floyd County Floyd Country Store
Spring 2012 Landowner Workshop Schedule
P o s t O f f i c e B o x 5 4 4 • 1 9 0 W e s t S p r i n g S t r e e t • W y t h e v i l l e , V i r g i n i a 2 4 3 8 2To l l F r e e P h o n e 8 0 0 . 3 5 9 . 6 6 0 8 • P h o n e 2 7 6 . 2 2 8 . 6 6 0 8 • F a x 2 7 6 . 2 2 8 . 2 5 8 4w w w . w o r d s p r i n t . c o m
d e s i g n p r i n t m a i l
2 9 5 I n d u s t r i a l D r i v e • C h r i s t i a n s b u r g , V i r g i n i a 2 4 0 7 3To l l F r e e P h o n e 8 0 0 . ? ? ? . ? ? ? ? • P h o n e 5 4 0 . 3 8 2 . 9 1 1 1 • F a x 5 4 0 . 3 8 2 . ? ? ? ?w w w . w o r d s p r i n t . c o m
c h r i s t i a n s b u r g p r i n t i n g
* Generously sponsored by the Hawk’s Ridge Fund of the Community Foundation of the New River Valley.