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"Amended" Calhoun County
Farmland Preservation Program Ordinance
THIS CALHOUN COUNTY FARMLAND PRESERVATION PROGRAM
ORDINANCE, ADOPTED BY THE CALHOUN COUNTY BOARD OF COMMISSIONERS ON APRIL
15, 2003, WAS AMENDED AUGUST 17, 2006, TO PROVIDE FOR GENERAL TOWNSHIP
REPRESENTATION ON THE CALHOUN COUNTY AGRICULTURAL PRESERVATION BOARD AND
TO ALLOW FOR THE USE OF A STATE CERTIFIED APPRAISER IN DETERMINING
DEVELOPMENT RIGHTS VALUES.
An Ordinance creating the Calhoun County Farmland
Preservation Program which preserves productive farmland by acquiring
development rights voluntarily offered by landowners, authorizes the
cash purchase and/or installment purchases of such development rights,
places an agricultural conservation easement on the property which
restricts future development, and provides the procedures and guidelines
governing the purchase of development rights and the placement of an
agricultural conservation easement.
BE IT RESOLVED BY THE CALHOUN COUNTY BOARD OF COMMISSIONERS:
Declaration of Purpose of the Program.
It is the purpose of the Calhoun County Farmland
Preservation Program and this development rights ordinance to preserve
productive farmland in order to maintain a long-term business
environment for agriculture in the county, to preserve the rural
character and scenic attributes of the county, to enhance important
environmental benefits and to maintain the quality of life of county
residents. Further, it is recognized that this ordinance is but one of
several farmland preservation strategies encouraged throughout the
County. Other strategies include agricultural zoning, quarter-quarter
zoning, sliding scale zoning, and various overlay techniques.
Section 1: Definitions
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“Agricultural conservation easement” means a
conveyance via written instrument, in which, subject to permitted
uses, the owner relinquishes to the public in perpetuity his or her
development rights and makes a covenant running with the land not to
undertake development.
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“Agricultural use” means substantially undeveloped
land devoted to the production of plants and animals useful to humans,
including forages and sod crops; grains, feed crops, and field crops;
dairy and dairy products; poultry and poultry products; livestock,
including breeding and grazing of cattle, swine, captive cervidae, and
similar animals; berries; herbs; flowers; seeds; grasses; nursery
stock; fruits; vegetables; Christmas trees; and other similar uses and
activities. Agricultural use includes use in a federal acreage
set-aside program, a federal conservation reserve program, or a
wetland reserve program. Agricultural use does not include the
management and harvesting of a woodlot.
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“Development” means an activity that materially
alters or affects the existing conditions or use of any land in a
manner that is inconsistent with an agricultural use.
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“Development rights” means an interest in land that
includes the right to construct a building or structure, to improve
land for development, to divide a parcel for development purposes or
to extract minerals incidental to a permitted use or as set forth in
an agricultural conservation easement.
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“Development rights ordinance” means an ordinance
adopted under the County Zoning Act MCL 125.201, et seq., as amended.
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“Farmland” means 1 or more of the following:
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A farm of 40 or more acres in single ownership,
with 51% or more of the land area devoted to an agricultural use.
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A farm of 5 acres or more in single ownership,
but less than 40 acres, with 51% or more of the land area devoted to
an agricultural use, that has produced a gross annual income from
agriculture of $200.00 per year or more per acre of cleared and
tillable land. A farm described in this subparagraph enrolled in a
federal acreage set-aside program or a federal conservation reserve
program is considered to have produced a gross annual income from
agriculture of $200.00 per year or more per acre of cleared and
tillable land.
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A farm designated by the department of
agriculture as a specialty farm in 1 ownership that has produced a
gross annual income of $2,000.00 or more from an agricultural use.
Specialty farms include, but are not limited to, greenhouses; equine
breeding and grazing; the breeding and grazing of cervidae,
pheasants, and other game animals; bees and bee products; mushrooms;
aquaculture; and other similar uses and activities.
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“Parcel” means a contiguous quantity of land in
single ownership.
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“Permitted use” means any use expressly authorized
within an agricultural conservation easement consistent with the
farming operation or that does not adversely affect the productivity
or agricultural use of the land. Storage, retail or wholesale
marketing, or processing of agricultural products is a permitted use
in a farming operation if more than 50% of the stored, processed, or
merchandised products are produced by the farm operator for at least 3
of the immediately preceding 5 years. Permitted use includes oil and
gas exploration and extraction, but does not include other mineral
development that is inconsistent with an agricultural use.
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“Single Ownership” means the party or parties
having a freehold estate or fee simple interest in land.
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“PDR program” means a program as defined in the
County Zoning Act MCL 125.201, et seq., for the purchase of
development rights by a county, and specifically includes the Calhoun
County Farmland Preservation Program.
Section 2: Authorization
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Pursuant to the County Zoning Act MCL 125.201, et
seq., the County Board of Commissioners is authorized to purchase the
development rights of farmland throughout the County. Such acquisition
may be by purchase, gift, grant, bequest, devise, covenant or
contract. The County shall only purchase development rights on
farmland that are voluntarily offered for sale by a property owner.
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The County is authorized to enter into installment
purchase contracts, options, and agreements or take receipt of
donations of easements, consistent with applicable law. The County is
authorized to pay interest on the declining unpaid principal balance
at a legal rate of interest consistent with prevailing market
conditions at the time of execution of the installment purchase
contract.
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The County may contract with recognized and legally
established nonprofit land trusts or other experienced and qualified
individuals, parties or entities that would assist the County in the
process of negotiating easements and purchase contracts, establishing
baseline studies and procedures for monitoring, and actual monitoring
of any agricultural conservation easements acquired under this
Ordinance.
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The Calhoun County Planning Department under the
authority of the Calhoun County Board of Commissioners shall
administer the Farmland Preservation Program.
Section 3: County Agricultural Preservation Board
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The County Board of Commissioners shall create a
seven member body under this Ordinance to be named the County
Agricultural Preservation Board. The seven voting members shall be
residents of the county and will be appointed by the County Board of
Commissioners and will include: (a) one County Commissioner, liaison
or designee, (b) three individuals with agricultural interests, (c)
one representative of
township government, (d) one individual with real estate or
development interests, and (e) one individual representing local
natural resource conservation interests.
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Members of the County Agricultural Preservation
Board shall serve three-year terms, with the exception that the County
Commissioner representative shall be designated on an annual basis.
The initial term shall be staggered so that one of the agricultural
representatives and the real estate representative serve an initial
one-year term, another agricultural representative and the local
township representative serve an initial two-year term and the third
agricultural representative and the local conservation representative
serve an initial three-year term. Members may be re-appointed to
successive three-year terms by the County Board of Commissioners. The
County Board of Commissioners shall have the discretion to remove
members for neglect of duty or malfeasance in office or other good
cause. Vacancies due to removal or resignation shall be filled for the
remainder of a term by appointment by the County Board of
Commissioners. Members shall not be compensated for their services
unless so directed by the County Board of Commissioners.
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The County Agricultural Preservation Board shall
oversee the county’s farmland preservation program and shall be
responsible for:
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Establishing selection criteria for the ranking
and prioritization of applications to the program. The selection
criteria must be approved by the County Board of Commissioners prior
to each application cycle.
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Establishing a points-based appraisal formula for
determining the value of the agricultural conservation easements.
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Reviewing and providing oversight in scoring all
applications according to the adopted selection criteria.
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Ranking and prioritizing the top scoring
applications for acquisition and determining whether the development
rights should be purchased.
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Approving the restrictions and permitted uses
under the agricultural conservation easement.
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Establishing the price to be offered to the
property owner and initiating negotiations for the purchase of
development rights and agricultural conservation easement. All
purchases of development rights and agricultural conservation
easements must be submitted to the County Board of Commissioners for
approval.
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Establishing monitoring procedures and overseeing
subsequent monitoring to ensure compliance with the agricultural
conservation easement. Enforcement of the agricultural conservation
easement in the case of non-compliance shall be the responsibility
of the County Board of Commissioners or its designated agent.
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Individual County Agricultural Preservation Board
members shall disclose any potential conflict of interest and may not
vote when a conflict exists. Conflicts of interest include, but are
not confined to, situations where (1) the board member is the
applicant; (2) the member is a close relative of the applicant; (3)
the board member has a close business association or ties with the
applicant; (4) the board member, a relative, or a business associate
could receive financial gain or benefit from the acceptance of the
application; or, (5) other conflicts of interest as defined by law.
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To the extent of available funding and as approved
by the County Board of Commissioners in consultation with the County
Agricultural Preservation Board, the County may contract with
qualified and experienced individuals or entities for consulting or
staffing services.
Section 4: Eligibility for Application
Any property owner may submit an application to the County Farmland
Preservation Program provided it meets the following requirements:
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The property owner has signed the application
indicating that he or she is interested in voluntarily selling the
development rights to the parcel.
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At least 51% of the parcel’s area is devoted to an
active agricultural use and no more than 49% of the parcel may be
devoted to non-agricultural open space consisting of wetlands,
woodlands, or otherwise unusable land.
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If the parcel is located within a city, village or
township that administers a zoning ordinance, the municipality has
also signed the application indicating it’s approval of the
application to the County. The County shall not purchase development
rights under a development rights ordinance from land subject to a
city, village, or township zoning ordinance unless all of the
following requirements are met:
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The development rights ordinance provisions for
the PDR program are consistent with the Master Plan upon which the
city, village, or township zoning is based.
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The legislative body of the city, village, or
township adopts a resolution authorizing the PDR program to apply in
the city, village, or township.
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The property is not designated for commercial,
industrial, or residential uses at densities in excess of 5 dwelling
units per acre under the County, Township, City or Village Master
Plan.
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Agricultural activities are a permitted use on the
parcel under all applicable zoning ordinances.
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The property has an approved and implemented
resource conservation plan that meets USDA-NRCS standards.
Section 5: Criteria for Reviewing and Ranking
Applications
The County Agricultural Preservation Board shall establish selection
criteria for ranking and prioritizing all eligible parcels submitted to
the County Farmland Preservation Program. The selection criteria shall
place an emphasis on farmland that:
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As part of the application procedure for the
specific proposed purchase of development rights, the city, village,
or township provides the county with written approval of the
application.
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Has a productive capacity suited for the production
of feed, food and fiber and has a greater potential for long-term
agricultural production. Specific selection criteria may be based on
soil classifications, parcel size, agricultural income, enrollment in
the Farmland and Open Space Preservation Act, or the implementation of
a soil conservation plan.
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Is under the threat of development. Specific
selection criteria may be based on proximity to public sanitary sewer
or water, the extent of development activity in the municipality or
the amount of road frontage.
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Complements other farmland protection efforts in
the County. Specific selection criteria may include proximity to other
permanently protected farmland, proximity to other protected lands or
surrounding land enrolled in the State Farmland and Open Space
Preservation Act, or inclusion in an agricultural zoning district.
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Has additional matching funds available for the
purchase of development rights provided by a local unit of government,
landowner or private sources.
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Other factors considered important by the County
Agricultural Preservation Board such as unique physical, historical or
environmental characteristics.
Section 6: Application and Selection Process
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Based upon available resources and at the
discretion of the County Agricultural Preservation Board, the county
may on an annual basis conduct a voluntary application and selection
process for property owners who wish to sell development rights under
the County Farmland Preservation Program.
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The County Agricultural Preservation Board shall
begin each application cycle by giving notice at least 90 days in
advance of the application deadline that the county is accepting
applications to the County Farmland Preservation Program. Notification
shall be given in at least one newspaper of general circulation within
the county, through the county Farm Bureau, County Conservation
District, County MSU-Extension Service, local township offices and
other organizations.
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The application may require information to be
filled out by the property owner, the county Conservation District and
the local unit of government.
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All applications shall represent the applicant’s
intent to sell the development rights of the property to the County
subject to mutually acceptable terms. The application will remain
active by way of annual written approval of the landowner, provided
there is no subsequent modification to the scoring criteria or
application that requires additional information. Local cities,
villages, and townships will be asked to sign a letter of continued
support for standing landowner applications, and all applications,
both new and old, will be scored and ranked for each cycle.
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The County Agricultural Preservation Board shall
give notice to each city, village, or township in which an application
for the purchase of development rights has been received, and the
disposition of that application.
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At the close of the application deadline, an
initial determination of eligibility shall be completed by the County
Agricultural Preservation Board or designated staff. The property
owner shall be notified if the application is not eligible for the
program. Each application shall be evaluated and scored according to
selection criteria approved by the County Agricultural Preservation
Board and the County Board of Commissioners prior to the application
cycle.
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The County Agricultural Preservation Board shall
rank parcels according to the selection criteria score but shall also
individually evaluate and prioritize the top scoring parcels. The
County Agricultural Preservation Board may reprioritize the top
scoring parcels based on individual review of each application and
establish a priority on which development rights should be purchased
first based on available funds. The written rationale for
reprioritization of the top scoring parcels shall be included with
each application.
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Agricultural conservation easement value shall be
based upon a price established by the County Agricultural Preservation
Board using a state certified appraiser or points-based
appraisal method, as established in section 10 9
and approved by the County Board of Commissioners.
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The final ranking and prioritization of
applications shall be submitted to the County Board of Commissioners
for their approval.
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Upon mutual agreement to purchase terms by the
property owner, the County Board of Commissioners, and the County
Agricultural Preservation Board, a title search shall be completed
before signing and recording of the agricultural conservation
easement. Any questions or concerns regarding clear title to the
property shall be resolved prior to signing of the agricultural
conservation easement. All individuals, parties or entities with an
interest in the property must be willing to agree to the terms and
provisions of the agricultural conservation easement.
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The County Board of Commissioners shall approve the
purchase of development rights and the agricultural conservation
easement. The County Board of Commissioners may alter the
recommendation by the County Agricultural Preservation Board to
purchase the development rights only if there are insufficient funds,
or upon a finding of fact that the selection criteria had not been
accurately or appropriately applied to a specific application.
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Once the application has been approved for purchase
by the County Board of Commissioners, the county and the property
owners shall sign the agricultural conservation easement and it shall
be legally recorded with the County Register of Deeds office.
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The County shall notify the appropriate local unit
of government of each agricultural conservation easement.
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The agricultural conservation easement will be
monitored in accordance with procedures and guidelines established by
the County Agricultural Preservation Board.
Section 7: Agricultural Conservation Easement
Provisions
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Upon the agreement of the purchase and sale of
development rights by the County Agricultural Preservation Board, the
property owner and the County Board of Commissioners, the County and
the property owner shall execute a perpetual agricultural conservation
easement, approved by the County Agricultural Preservation Board and
the County Board of Commissioners. The agricultural conservation
easement shall contain a provision indicating that the easement runs
with the land and may not be terminated except as provided for in this
Ordinance and the easement.
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Restrictions on that portion of the property
included in the agricultural conservation easement shall include, but
not be limited to, the following:
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Property shall not be divided into parcels less
than 40 acres in size.
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The construction of residences for new owners of
any divisions shall be prohibited.
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Construction of any other buildings, unless they
are built for uses consistent with farming operations shall be
prohibited.
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Commercial or industrial activity that is
inconsistent with a normal farming operation shall be prohibited.
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Excavation of topsoil, sand, gravel, rock,
minerals or other materials that significantly impairs or interferes
with the agricultural values of the property shall not take place
without prior written approval.
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Public access may not be required under the
agricultural conservation easement.
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Permitted uses and retained development rights in
the agricultural conservation easement shall include, but not be
limited to, the following:
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Construction of buildings necessary for and
consistent with agricultural uses.
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The right to construct one additional residence
for an individual essential to the operation of the farm as defined
in MCL 324.36101 et seq., Farmland and Open Space Preservation. Any
structure must be in conformance with all applicable federal, state
and local laws, ordinances and regulations.
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The right to maintain, renovate, add on to, or
replace existing structures. Structure built must be in conformance
with all applicable federal, state and local laws, ordinances and
regulations.
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The right to sell, mortgage, bequeath or donate
the property, provided that any conveyance shall be subject to the
terms of the easement.
Section 8: Duration of the Agricultural
Conservation Easement
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The agricultural conservation easement shall be
permanent and run with the land, regardless of transfers in property
ownership absent an action for eminent domain.
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Upon a court’s determination in eminent domain
proceedings that the repurchase of the development rights from the
County is necessary for a specific public interest, need or purpose,
the party acquiring the property through eminent domain or the
landowner shall pay to the county the fair market value of those
development rights at the time of the repurchase, as determined by a
State Certified Appraiser, or utilizing the points-based appraisal in
section 10, before the termination of the agricultural conservation
easement. The value of the development rights shall be determined as
the difference between the fair market value of the property with all
development rights intact and the value of the property for
agricultural use with an agricultural conservation easement in place.
If the appraiser has a conflict of interest associated with a
potential appraisal, the appraiser shall report the conflict to the
County, and the County shall select another appraiser to complete the
appraisal.
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The County will deposit the proceeds from any
repurchases into the farmland preservation fund and the proceeds shall
be used to purchase additional development rights and agricultural
conservation easements on additional farmland within the county.
Section 9: Determining the Value of the
Agricultural Conservation Easement
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The County Agricultural Preservation Board, with
concurrence of the County Board of Commissioners, shall utilize a
state certified appraiser to determine the value of the development
rights or establish a points-based appraisal method and formula
for determining the value of the agricultural conservation easement
prior to each application cycle. The formula shall establish a Base
Value based on the parcel’s soil characteristics, size and proximity
to other protected farmland. The Base Value shall be increased if the
parcel qualifies for a market value adjustment based on the parcel’s
location within the county and the amount of road frontage. In
determining the market value adjustment, an average of actual vacant
land sales of parcels over 20 acres in size zoned for agricultural
purposes sold during the prior three years shall be determined for
each township. The parcel may also qualify for a premium based on its
proximity to sewer and water as determined by a formula established by
the County Agricultural Preservation Board. The County Agricultural
Preservation Board shall review the points-based appraisal method at
the end of each application cycle, and compare agricultural
conservation easement values relative to actual fair market sales in
the county.
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The property owner may obtain, within a reasonable
time frame, an appraisal of the development rights from a State
Certified Appraiser at the property owner’s expense. The appraisal may
calculate the value of the development rights as the difference
between the fair market value of the property with all development
rights intact and the value of the property for agricultural use with
an agricultural conservation easement in place. The County
Agricultural Preservation Board may establish guidelines, consistent
with state standards, for the State Certified Appraiser to use in
determining the fair market value or the agricultural value.
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The County Agricultural Preservation Board, with
the concurrence of the County Board of Commissioners, shall approve
the price to be offered and paid for the agricultural conservation
easement. If the property owner obtains an independent appraisal, the
County Agricultural Preservation Board may elect to renegotiate the
initial offer based on qualified circumstances.
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The property owner may be paid a cash payment or
offered an installment purchase contract, or a combination of both.
Section 10: Related Costs
The cost of services ordered by the County Agricultural Preservation
Board in relation to the County’s Farmland Preservation Program shall be
paid from all available farmland preservation program funding sources
within the County, including state and federal matching funds, which may
include the cost of appraisal, engineering, surveying, planning,
financial, legal, environmental assessments, title searches, developing
baseline assessments and monitoring easements. The County shall not be
responsible for any expenses incurred by the property owner incident to
this transaction that the County Agricultural Preservation Board has
determined are the responsibility of the property owner.
Section 11: Farmland Preservation Fund
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Available funding for the County Farmland
Preservation Program shall be deposited in a separate farmland
preservation account established by the County Treasurer. Money in
such farmland preservation account may be temporarily deposited in
such institutions or invested in such obligations as may be lawful for
the investment of county money. The revenues from the deposit and/or
investment of the farmland preservation fund shall be applied and used
solely for the purpose of purchasing development rights and
agricultural conservation easements under this Ordinance, making
payments obligated under installment purchase contracts, promoting
farmland preservation programs, or paying for costs of administering
or enforcing the County Farmland Preservation Program.
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Supplemental or matching funds from private sources
or other governmental agencies, including local municipalities, the
State, or Federal Government, may become available to pay a portion of
the cost of acquiring development rights or agricultural conservation
easements, or to supplement or enlarge such acquisitions.
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The County Board of Commissioners, pursuant to the
County Zoning Act, may finance the County Farmland Preservation
Program through one or more of the following sources:
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General appropriations by the County
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Proceeds from the sale of development rights by
the county under Section 9
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Grants
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Donations
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General fund revenue
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Bonds or notes
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Special assessments as permitted by law
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Other sources approved by the County Board of
Commissioners and permitted by law
Section 12: Amendments
This Ordinance may be amended by the County Board of Commissioners
after receiving input from the County Agricultural Preservation Board.
Section 13: Severability
Any provision of this Ordinance which is found by a court of
competent jurisdiction to be invalid, void or illegal shall in no way
affect, impair or invalidate any other provision contained in the
Ordinance and such other provisions shall remain in full force and
effect.
Section 14: Effective Date
This ordinance shall become effective upon publication.
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