Regulatory Tools

Urban Growth Boundary, Large Lot Zoning, Performance Zoning, Bonus/Incentive Zoning, Conservation Overlay Zoning, Voluntary Agricultural Districts

Voluntary Land Acquisition Tools

Ownership Retention Strategies

Conservation Easement, Purchase of Development Rights (PDR), Transfer of Development Rights (TDR), Lease, Management Agreement, Mutual Covenants, Limited Development Techniques, Technical Assistance Programs

Title Transfer Strategies

Sale Options, Donation Options, Agreements and Other Options

Acquisition Method

Benefits

Drawbacks

Fee Simple Acquisition

Usually the sale of land at full market value. Ownership and responsibilities are transferred completely to the buyer.

~ The most straightforward acquisition method.

~ Provides agency with full control over future of property.

~ Most expensive.

~ Buyer assumes full responsibility for care and management of property.

~ Loss of revenue when land is removed from tax rolls.

~ Capital gains issues for seller.

Acquisition Method

Benefits

Drawbacks

Land is purchased at less than fair market value. The difference between the bargain sale price and the land's fair market value becomes a donation.

~ Reduced acquisition costs.

~ Seller may qualify for tax benefits for charitable donation.

~ May offset capital gains.

~ Difficult and time-consuming to negotiate.

~ May still be costly to acquire land.

Acquisition Method

Benefits

Drawbacks

A percentage of purchase price is deferred and paid over successive years.

~ Possible capital gains tax advantages for seller.

~ Complicates budgeting and financing of acquisitions.

Acquisition Method

Benefits

Drawbacks

Right of First Refusal

Agreement giving conservation agency the option to match an offer and acquire the property if the landowner is approached by another buyer.

~ Agency can gain extra time to acquire funds for purchase.

~ Resource may be lost if offer can't be matched by conservation agency.

~ Some landowners are unwilling to enter into this kind of binding agreement.

Acquisition Method

Benefits

Drawbacks

Several parties share ownership in a parcel of land, with each owner's interest extending over the entire parcel.

~ Changes to property cannot be made unless all owners agree.

~ Property management can be complicated.

Acquisition Method

Benefits

Drawbacks

Owner grants full title and ownership to conservation agency.

~ Resources acquired at very low costs to the agency.

~ Agency may receive endowment for long-term land stewardship.

~ Donor may qualify for income tax deductions, estate tax relief, and property tax breaks.

~ Landowner loses potential income from sale of land.

~ Receiving agency must accept responsibility and long-term costs of land management.

~ Stewardship endowments may make donations cost prohibitive for landowner.

Acquisition Method

Benefits

Drawbacks

Land is donated to a conservation agency at the owner's death through a will.

~ Reduces estate taxes and may benefit heirs with reduced inheritance taxes.

~ Allows owner to retain full use and control over land while alive; ensure its protection after death.

~ No income tax deduction for donation of land through a will

~ Requires careful estate planning by the landowner.

Acquisition Method

Benefits

Drawbacks

Owner retains rights to use all or part of the donated land for his or her remaining lifetime and the lifetimes of designated family members.

~ Allows owner to continue living on and using the property during his or her lifetime while ensuring the land's protection.

~ Allows designation of family members to remain on land.

~ Tax benefits may be limited; some types of open space may not qualify.

~ May delay transfer of title to the conservation agency for a long period of time.

Acquisition Method

Benefits

Drawbacks

Nonprofit Acquisition and Conveyance to Public Agency

Nonprofit organization (such as land trust) buys a parcel of land and resells it to a local government or other public agency.

~ Nonprofits can often move more quickly to purchase and hold land until the public agency is able to buy it.

~ Could reduce acquisition costs for public agency.

~ Local government must be willing to purchase land and assume management responsibilities.

Acquisition Method

Benefits

Drawbacks

Federal, state, and local agencies form joint partnerships to own and manage land.

~ Sharing the responsibilities and costs of acquisition and management can protect larger or more expensive properties.

~ Can foster regional cooperation to preserve open space.

~ Partners must agree on management strategies in order to reduce potential for conflict.

~ Agency budgets and acquisition criteria may restrict acquisitions.

~ Slower response time: acquisition opportunities may be lost due to agency procedures.

~ May remove land from tax base.

Acquisition Method

Benefits

Drawbacks

Strategy used by public agencies and private organizations to accomplish projects serving mutual goals. For example, some government grant programs could be matched with both private contributions and public funds.

~ Partners share benefits, responsibilities, and costs of acquisition and management.

~ Creates a coalition of support for protecting diverse resources.

~ Brings diverse sources of knowledge and expertise to solve resource protection issues.

~ More complicated property management and decision making.

~ Conflicts in acquisition criteria and funding priorities must be resolved.

Acquisition Method

Benefits

Drawbacks

Agency or private organization acquires land, places protective restrictions or covenants on the land, then resells or leases land.

~ Proceeds from sale or lease can offset acquisition costs.

~ Land may be more attractive to buyer due to lower sale price resulting from restrictions.

~ Management responsibilities assumed by new owner or tenant.

~ Complicated procedure.

~ Owner retains responsibility for the land but may have less control over the property.

~ Leases may not be suitable on some protected lands.

Acquisition Method

Benefits

Drawbacks

Land is purchased and reserved for later use or development. Land could be leased for immediate use (i.e. agriculture or athletic field) or held for eventual resale with restrictions. Local government functions as a land trust. Many programs are funded through real estate transfer taxes.

~ Local government proactively identifies and purchases resource land.

~ Lowers future preservation costs by working as a defense against future increases in land prices, speculation, and inappropriate development.

~ Expensive. Requires large upfront expenditures.

~ Public agency must have staff to handle land trust functions of acquisition, management, lease, or resale.

~ Real estate transfer tax for land acquisition would require local enabling legislation.

Acquisition Method

Benefits

Drawbacks

Land Exchange

Land may be exchanged for another parcel that is more desirable for resource protection.

~ Lower acquisition costs.

~ Scattered properties can be exchanged for a single, larger parcel.

~ Complicated process; not widely known and rarely used.

~ Subject to IRS regulations.

~ Property owners must be willing to participate, and properties must be of equal value.

Acquisition Method

Benefits

Drawbacks

Government transfers excess land to another agency that can assume resource protection and management responsibilities.

~ Resource protection and management with little additional expenditures.

~ Excess property may not be suitable for resource protection.

~ Obtaining fair market value for the property may be agency's priority.

Acquisition Method

Benefits

Drawbacks

Eminent Domain

Government uses authority to take private property for a public purpose, and pay the landowner fair market value.

If the landowner is unwilling to sell, government can condemn the land, providing fair market value compensation.

~ Can be used if other techniques are not working, or to resolve an emergency situation.

~ An extreme measure; should only be used as a last resort.

~ Controversial: can alienate the public and owners who are unwilling to sell.

~ Potentially expensive.