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What land is worth saving (complete article from source)
Source: The Vail Trail, by Debbie Buckley
September 19, 2007
Conservation easements are all the rage as a tool for protecting the environment. The Eagle Valley Land Trust holds easements on 16 parcels spanning Eagle County and is currently working to secure a conservation easement on the Gates Ranch in Burns.
So what is a conservation easement? Easements generally grant the use of land for the benefit of the public through a government entity or utility. For example, Holy Cross Electric probably has an easement under the power lines in your neighborhood. Conservation easements differ from regular easements, in that they restrict the use of land. The conservation easement is created through a landowner agreement that permanently restricts the development that a landowner is permitted on the property. The landowner receives a cash payment in exchange for limiting the future use of the property.
Conservation easements frequently include an income-tax deduction, lower property taxes and a lower estate-tax burden on the owner's heirs. Some conservation easements are funded through the generosity of individuals and foundations, while others are subsidized by government agencies.
Conservation easements are ideal for some landowners. Often, the easement is an alternative to bankruptcy, threatened condemnation or new regulatory impacts that will restrict the use of the property. Owners can continue ranching or using their land in a way that does not interfere with the terms of the easement. There is no obligation to allow the public on the land, even if the easement is funded with public tax dollars.
How do conservation easements affect the everyday average taxpayer who does not own land beyond the backyard? On the plus side, they have become a tool for preserving private land for government-owned open space. According to a study conducted by Colorado State University on behalf of Great Outdoors Colorado in April 2007, almost 50 percent of Colorado land is already protected from development by a combination of federal, state, local and private conservation plans. In Eagle County, 80 percent of the land is owned by the government.
One of the negative consequences of conservation easements is the loss of statewide tax revenue. According to a report from the Joint Budget Committee in December 2006, the loss of state taxes due to tax credits from the conservation easements was $193 million since the program’s inception in 2000. Loss of tax revenue is frequently counterbalanced by eliminating or reducing other services, such as the ability to get a driver’s license in Eagle County, senior services or childcare services.
In addition, there is no guarantee that property with a conservation easement will be well maintained. For example, a rancher who receives a cash payment for a conservation easement to alleviate financial difficulties may have problem maintaining the land because of future financial difficulties.
There can also be unintended negative consequences for neighboring ranches and the preservation of our Western heritage. Inflated appraisals for conservation easements on nearby ranches make it difficult for ranching families to hold on to their land and pass the ranch on to future generations. In short, ranching families may have to sell off all or part of the ranch because of inflated estate taxes that are secondary to their neighbors’ inflated appraisals.
In some cases buying land is preferable to an easement. In the case of the Gates Ranch, the county should offer to purchase the property out right instead of purchasing a conservation easement. This purchase scenario would allow public access to the land for the taxpayer, as opposed to a conservation easement that would deny public access to those who are paying for the conservation easement. The Gates family could continue to ranch on the land as caretakers. At the same time the land could also be used for activities such as fishing, hunting and hiking and as a long-term resource for schools and youth activities.
When it comes to conservation easements, elected officials need to choose wisely. Conservation easements can be a good tool to preserve land that is escalating in value at a rapid pace. Land that can still be purchased should be bought for the use of the residents and visitors of Eagle County. Open space money should be saved for the best use of the right properties, in the right priority.
The Gates property is an example of land that is not under immediate threat of development. The Gates Ranch was listed for sale a short time ago. The property was not sold, so apparently it is not attractive to developers and is in no danger of development. The Gates Ranch is an example of a property that should not have a conservation easement purchased by tax dollars because the taxpayer will receive little in return. By contrast, property in Lake Creek or Brush Creek, where development is threatening, would be preferred uses for a government subsidized conservation easement.
Tax revenue, like land, is also a limited resource and must be preserved for services that are embraced by the majority of taxpayers.
Click here for complete article from The Vail Trail
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