MARYLAND AGRICULTURAL LAND PRESERVATION FOUNDATION

MINUTES

March 28, 2006

 

 

TRUSTEES PRESENT:

 

Daniel Colhoun, Chairman

Vera Mae Schultz, Vice Chairman

Howard S. Freedlander, representing Treasurer Kopp

Jerry Klasmeier, representing Comptroller Schaefer

Pat Langenfelder

Judith C. Lynch

Dr. James Pelura

Shirley W. Pilchard

Robert F. Stahl, Jr.

Joe Tassone, representing Secretary Scott, Maryland Department of Planning

Christopher H. Wilson

Doug Wilson, representing Secretary Riley, Maryland Department of Agriculture

 

OTHERS PRESENT:

 

Bill Amoss, Harford County, Program Administrator

Gail H. Bates, Delegate, Howard County

Joan M. Becker, Attorney at Law, Howard County

Tim Blaser, Frederick County, Program Administrator

Anne Bradley, Frederick County, Agricultural Preservation Planner

Tammy Buckle, Caroline County, Program Administrator

Yates Clagett, Prince George’s County, Program Administrator

James A. Conrad, MALPF Executive Director

Carol Council, MALPF Administrative Officer

Will Doane, Harford County, Planner

John R. Dulin, Landowner, Queen Anne’s County

Rama Dilip, MALPF Secretary

Nancy Forrester, Assistant Attorney General, Maryland Department of General Services

Stephanie Jordan, Reporter, Delmarva Farmer, Talbot County

Joy Levy, Howard County, Program Administrator

Carla Martin, Kent County, Program Administrator

Craig Nielsen, Assistant Attorney General, Maryland Department of Agriculture

Barbara Polito, Anne Arundel County, Program Administrator

Charles Rice, Charles County, Program Administrator

Ralph Robertson, Carroll County, Program Administrator 

Daniel Rosen, Planner, Maryland Department of Planning

Donna Sasscer, St. Mary’s County, Program Administrator

Rad Sakhamuri, Queen Anne’s County, Planner

Martin Sokolich, Talbot County, Program Administrator

Mr. & Mrs. Jerry Stambaugh, Landowners, Carroll County

Donna Landis-Smith, Queen Anne’s County, Program Administrator

Elizabeth Weaver, MALPF Administrative Officer

Susan Wilson, Landowner, Frederick County

 

 

Daniel Colhoun, Chairman, called the meeting to order at approximately 9:05 a.m., at the Maryland Department of Agriculture building, Annapolis, Maryland.

 

The Board met in open session to discuss policy issues between at 9:00 a.m. and 9:30 a.m., at which time the regular business meeting began.  For March, Delegate Gail H. Bates and Ms. Joan M. Becker, Attorney at Law in Howard County, made a presentation to the Board on the issue of the 25-year termination clause.

 

Mr. Colhoun welcomed Delegate Bates and Ms. Becker and stated his appreciation for their attendance at the MALPF Board meeting.

 

Delegate Bates informed the Board that she had been in touch with Mr. James Conrad, MALPF Executive Director, on this particular issue.  Delegate Bates had spoken to Mr. Conrad in December 2005 and informed him of her interest in introducing the bill to solve what she identified as problems, at least in Howard County, and probably elsewhere.

 

Delegate Bates stated that a number of people who entered the MALPF program 25 years back have a clause in their easement contract stating that the easement is “in perpetuity,” but allowing the option to petition for release from the easement.  She noted that some people who had entered the program in the beginning are now seriously considering the option of petitioning for release.  Delegate Bates did not feel that releasing program participants from their easement was good for the program.  Therefore, she expressed her interest in trying to find a solution that would encourage them not to petition for release.

 

Delegate Bates commented that the farmers who came into the MALPF program early on have less flexibility with their easements.  They were offered children’s lots, which is problematic.  Howard County has changed dramatically.  There are rarely situations where an entire family can live on the farm.  Children’s lots are less desirable than unrestricted lots.  Delegate Bates is proposing to allow those grantors eligible only for family lots to exchange them for unrestricted lots at a lower density in return for waiving the termination clause in their easement.

 

Delegate Bates introduced Ms. Joan Becker as a Zoning Attorney who will be making a presentation to the Board.

 

Ms. Becker introduced herself and stated that she is an attorney in the Howard County.  She has been associated with a law firm for 18 years and has now been practicing independently for the last 6 years.  Ms. Becker’s primary practice is real estate law.  She also lives on a farm that is in the County’s preservation program.  She has represented a number of people owning farms in Howard County.  Ms. Becker expressed her concern that many of the farmers under the State program believe that the time period of the program’s easement is 25 years with an automatic release.  Ms. Becker has read the document and understands the legal implications.  The document does say that, after 25 years, they can petition the Board for release, but there is no guarantee that they will be released.

 

Ms. Becker commented that there are certain properties primarily in some of the densely populated counties like Howard, Baltimore, and Carroll where many preservation properties are surrounded by development.  It has become increasingly more difficult for the landowners to continue farming and make profit.

 

Ms. Becker stated that Howard County government had a meeting in August 2005.  At that time, County officials were working on re-certification, and the intent at the time of meeting was to find what could be done to help Howard County to live up to its land-use goals, particularly agricultural preservation.  A Task Force was created out of this meeting.  After ten months, the Task Force decided not to change any County regulations at all.

 

The first easement settled in October 1980.  Ms. Becker commented that there are number of properties that are completing 25 years in May 2006.  The reason for coming up with the proposed bill is to give an opportunity to people having children’s lots an option to convert them into unrestricted lots.  It recognizes the fact that we do not have the traditional family farm any more, and it is difficult to have people continue to live on the farms, especially if they want to create lots for more than two children.

 

Ms. Becker met with Mr. Conrad on this issue.  Ms. Becker believed that 60% of the original grantors are still the easement holders.  In the proposed legislation, she is suggesting that these 60% the original grantors will have a one year option period to consider their individual situations – if they wanted to retain family lots, they can do so; but, if they wanted to convert to unrestricted lots, they could do so at a density of 1 lot per 50 acres in exchange for a perpetuity clause and that will close the door permanently on a possible release from the easement on many farms.  Because the average farm is about 130 acres, this would result in no more that two or three unrestricted lots on those eligible to participate in this proposed transaction.

 

When she discussed this with Mr. Conrad, Mr. Conrad felt it would be a windfall to the farmer; it is something the easement did not originally provide, and he felt it would have a negative effect on the program.  Mr. Conrad had commented that when the farmer had originally signed the easement agreement, the farmer did not think about the fair market value of what an unrestricted lot would be.  The bill provides that we will be willing to exchange lots at the fair market value.  So the State’s investment is not affected.

 

Doug Wilson, representing Secretary Riley, Department of Agriculture, wanted to know the proposed date at which the Fair Market Value of the lot would be determined for purposes of repayment to MALPF.

 

Ms. Becker responded that it would be fair market value of the lot at the time the farmer sold the easement.  The landowner would pay back the fair market value of the lot from the time he or she sold the easement however many years ago.  Instead of a release payback of $1,000 or $1,500 per acre, depending on whatever the State paid, the release payback based on the fair market value of the lot at the time the easement settled could be between $25,000 and $30,000 or more, depending on the location and the date of settlement.  The Foundation would have revenues from the paybacks coming back into the program to purchase more easement acreage.

 

Ms. Becker stated that obviously the location of any released lot would have to be subject to approval to avoid any negative impact upon farming operations.  We are all talking about a limited number of lots in exchange for which landowners would sign a new agreement with a perpetuity clause.  Ms. Becker felt this action to be very significant for the State.  The exchange of family lots for unrestricted lots has been successfully working in Howard County.  The county has had people amending their easement agreement within the one-year window of opportunity the county provided.  Ms. Becker believed this would be a step in the right direction to resolve a difficult issue.

 

When Ms. Becker spoke to Mr. Conrad in December 2005 to ask about his concerns and recommendations, she was informed that bills were passed in 2003 to change lot rights and make the easement explicitly perpetual. Ms. Becker did not want to reinvent the wheel. Program participants since 2003 should continue with the requirements under their easements. This is just a window of opportunity to lock the earlier grantors under the easements with the 25-year termination clause into a perpetual agreement and giving them an incentive to do so. From the standpoint of cost, the Foundation would have additional revenue coming in as a result of this. Additionally, transfer tax would be generated for land preservation. In the case of children’s lots, no transfer tax is generated.

 

Ms. Becker stated that when the policy was amended in 2003, the State program release provision required a five-year time period before a family lot could be transferred without restriction.  She was aware that the Foundation amended the statute to allow a release where none had been possible under the previous wording.  However, Ms. Becker expressed her concern that when early participants entered the State program, there was no five-year restriction on the transfer of family lots in the commercial marketplace.

 

Also, the county requires a separate subdivision.  When a son or daughter of the farmer wants to continue in the farming operation, and the farmer does not have a home on the property, the farmer goes to the bank for a mortgage for constructing the home. The bank will not make a mortgage loan because the lot is not separately subdivided. If the lot cannot be separately subdivided from the larger farming property, there is an issue of mortgaging the whole farm. This does not happen in Howard County as the County requires a separate subdivision. Other counties do not necessarily require separate subdivision for children’s lots which can create this problem in securing loans.

 

Mr. Colhoun wanted to know if Delegate Bates would like to sum up the presentation.  He also encouraged Board members to ask questions, if they have any.

 

Delegate Bates stated that she had been in touch with Mr. Conrad since December 2005 and had expressed her interest in introducing legislation allowing the landowners to trade family lots for unrestricted lots.  She felt somewhat frustrated because Mr. Conrad did not recommend ways to achieve this objective, but simply opposed her ideas.  Delegate Bates stated that it is not their intention to spoil the MALPF program.  If any of these farms get out, at least in Howard County, there will be houses built on the properties.  The demand for development properties is that great.  Delegate Bates was concerned that if any of these farms got out of the program, there will be more development.  That is why she is suggesting a bit of 'give and take.’  She brought the attention of the Board members to the proposed text of the legislation circulated with the agenda item.  The proposal attempts to give an opportunity to exchange restricted children’s lot for a limited number of unrestricted lots that could indeed be sold off.  She stated that she would like to have the Board’s support.

 

Mr. Doug Wilson stated that he is not sure if the Board can act on their proposal in this particular year.  The State has 23 partners.  Major state policies always have full discussions along with Farm Bureau and others.  The proposal is quite a significant change.  Mr. Doug Wilson wanted to know if while developing the legislation they talked to any of the other partners since the issue is a statewide issue.  Whatever decision is made for Howard County will have an effect in other 22 agricultural land preservation programs in the State.

 

Delegate Bates responded that they have not.  They were hoping to get some direction from Mr. Conrad, and they had plans to talk to Senator Clark.  It was only last week that Mr. Conrad had suggested bringing the proposal to the Board.  Delegate Bates stated that she would have preferred to have this discussion with the Board back in December 2005, rather than having it at the end of the legislative session.

 

Mr. Doug Wilson stated that he would like to defend Mr. Conrad.  Individual legislators come to program staff and the program’s legal counsel all the time.  The Foundation creates problems when legislators are told if we like or do not like an idea.

 

Delegate Bates stated that she understands the situation, but would have desired to have had feedback in January 2006, rather than having the idea still opposed at the end of February 2006.  If she has the support of the Board, she would like to work with the Board on the possibility of amending the legislation for next year.  They may still be able to buy another year with some of the program participants interested in terminating their easements if they thought that something will happen.

 

James Pelura, Board member, wanted to know if the constituents she spoke to would consent to the plan.  If this is a constituent problem, then she does not need the Board’s support.  She will need the support of other delegates and senators.  The Board will administer whatever legislation the delegates and senators successfully pass.

 

Delegate Bates stated that she really did not want to destroy the present proposal and wanted it to go through the Foundation and the Board. She believes that there are at least one or two farms in Carroll County that are facing similar problems and is sure that there are others in the State.

 

Joe Tassone, representing Secretary Scott, Department of Planning, expressed his concern about the idea that this would preclude a domino effect.  He believed it seemed unrealistic to think that all landowners inclined to exercise their 25-year option to request termination will accept this as an alternative.  He personally did not feel the effort would be successful as it would be contrary to the intent of the provision in the easement.  A termination request can be successful only if profitable agriculture is impossible on the farm in question.  On the one hand, the Foundation may have a certain number of landowners trying to get out of the program.  On the other hand, there also might be number of landowners who will take advantage of the six unrestricted lots, though they have no intent of leaving the program.  These unrestricted lots will multiply enormously the number of residential subdivisions in the areas in which the State has invested a great deal of money to protect agricultural resources.

 

Mr. Tassone was also concerned that the proposal will be contrary to the recent six-year MALPF Task Force effort resulting in a reduction of lot exclusion allowances from ten to three with much tighter guidelines.

 

Delegate Bates responded that under these easements there are quite a number of children’s lots.  You may end up with less development under this alternative proposal.  The choices made by landowners will depend on the individual family situations, and the option could only be exercised by the original easement sellers.  Originally the children’s lots were 1 lot per 20 acres.  This option would be 1 lot per 50 acres with a cap of six lots.  Many farms have fewer than the 300 acres necessary to get all six lots.  We are not looking at a massive amount of additional development.  Whether it would effectively stop the domino effect, she can’t say.  She believed the proposal is one option to consider.

 

Shirley Pilchard, Board member, commented that being a delegate, she knows how busy the delegates are at the end of the legislative session.  She was concerned with trying to push something through the General Assembly this late in the session.  Ms. Pilchard was afraid that late legislation may not be thoroughly evaluated, and it may not be possible to correct poorly conceived proposals.  Ms. Pilchard stated that she liked the general concept but would like to study it more.

 

Delegate Bates appreciated the comments and stated that they were trying to do something as the easements were nearing completion of 25 years.  If she gets an idea that the Board will be willing to work with them on the concept, maybe something can be done in the next session.

 

Mr. Colhoun concluded the session and stated that the Board is always willing to sit with elected officials and look at what could be improved in the program.  He thanked Delegate Bates and Ms. Becker for coming and sharing their thoughts.

 

Howard Freedlander, representing Treasurer Kopp, commented that he and Mr. Jerry Klasmeier, representing Comptroller Schaefer, would like to know about the progress of the Western Regional Park.

 

Ms. Becker commented that making progress has been very frustrating but there has been progress.

 

Ms. Joy Levy, Program Administrator, Howard County, wanted to clarify about the way the county program is set up.  The County program, in 1993, changed lot rights to eliminate owner and child lots and, only have unrestricted lots at a density of 1 lot per 50 acres.  All the remaining pre-1993 family lots could be exchanged for unrestricted lots at the 1:50 density ratio.

 

Mr. Colhoun commented that discussions may be held in the coming months and thanked Delegate Bates and Ms. Becker for attending the meeting.

 

Daniel Colhoun, Chairman, called the regular business meeting to order at approximately 9:35 a.m., at the Maryland Department of Agriculture building, Annapolis, Maryland.

 

The Chair asked the guests to introduce themselves.

 

 

     I.     APPROVAL OF MINUTES/ADDITION OR DELETION OF AGENDA ITEMS:

 

A.                  APPROVAL OF MINUTES OF THE REGULAR MEETING OF FEBRUARY 28, 2006

 

Motion #1:         To approve the minutes of February 28, 2006, with amendments (subject to showing the changes to Mr. Clark, of the Soil Conservation District in Calvert County).

 

Motion:             Chris Wilson                  Second:            Howard Freedlander

Status:              Approved

 

Mr. Conrad gave an update on Federal Farmland Ranch Protection Program.  MALPF is still working with the State’s program manager at NRCS to try to resolve the issues.  The pending easements that are in the NRCS office in Annapolis have not moved forward since December 2005.  The Foundation is going through a process where it is going to seek approval from the Board of Public Works to replace federal money with state money.  Whether or not MALPF actually follows through by substituting State for federal funds will depend on which allows MALPF to move quicker to settle these easements – whether breaking the logjam at NRCS will get us more quickly to settlement or applying the new allocations when approved by the Board of Public Works.  The Foundation still has meetings arranged with NRCS to discuss the stalemated process.  Mr. Conrad wanted to keep the program administrators aware that the Foundation has received the Request for Proposals (RFP) for FY 2006, and the program administrators will be contacted soon.  MALPF is going to apply for the 2006 RFP from the Federal Farm and Ranchland Protection Program.  The amount of money slated for Maryland is approximately 3 million dollars.  Obviously, MALPF does not get all of the funding, but would share it with other Maryland applicants.  MALPF has always received the largest share of Maryland’s allocation.  Mr. Conrad believed the Foundation would finally find a way to work out these issues with NRCS, but the issues are complicated and the resolution is not going to be easy.

 

Mr. Conrad stated that there will be an impact on the funding because of the problems with FRPP.  The Foundation will have to pull money from wherever it can find it possibly including from next year’s allocation.  He promised to keep the program administrators informed about the decision of the Foundation and the progress being made on this issue.

 

Mr. Colhoun stated that he was concerned that the landowners’ money has been held up in the FRPP review process and shared with the Board members that he had asked Mr. Conrad to be in touch with Mr. Doug Wilson to work out a way to use State funds to expedite the settlement of the pending easements.

 

Mr. Doug Wilson commented that the issues about the title review requirements, revising the language of the deed of easement, and having to go to the farmers to re-sign a new deed of new easement are very disturbing.  The Foundation may be able to deal with the new requirements that are being implemented concerning the appraisal system.  We still will have to address the “after” appraisal issues.  The Foundation is looking at everybody that currently has federal dollars committed to their pending easement.  It is trying to replace them with State and county dollars.  This is being done trying to limit the impact on the program.  The Foundation is at risk for 4 million dollars of federal money to be swapped unless Mr. Conrad and Mr. Robertson can work magic during the next 30 or 60 days.  Once we ask landowners to sign the State easements without the federal language, if NRCS then moves the pending easements forward towards settlement, the Foundation cannot reverse itself and put the federal language back in the easement.  If MALPF can meet the new requirements being imposed on its FRPP funding, we will put all federal money we have to replace now from the FY 2004 award plus the grant funds from FY 2005 towards the future offers, probably in our FY 2007 easement acquisition cycle.  It is quite possible that, when the Foundation begins its easement offer cycle next month, it will not be using the federal money commitments.  It will put the funds to the FY 2007 easement acquisition cycle.  The appropriation for next year through transfer taxes will be 70 million dollars of state money.  It will be far easier to match $10 to 12 million federal funds than today.  The Foundation’s plan is to take the 16 to 17 clients with pending easements with federal commitments and settle them as soon as DGS is ready.  For six of them, DGS already has the check issued and is ready to settle.

 

Mr. Conrad pointed out that there are also issues where properties have settled, but MALPF has not yet received reimbursement on the federal funds commitments, and the Foundation is not sure if it is going to be reimbursed on them.  The Foundation also has to decide how much money it is willing to spend to leverage the federal funds, because NRCS is going to be adding requirements.  The additional requirements will cost money; currently the Foundation has not budgeted for such requirements.  Citing an example of proposed NRCS requirements, Mr. Conrad stated that deed of easement language may be required that would compel the Foundation to have phase one environmental assessments done on any FRPP properties.  On FRPP properties, the Foundation may also be required to comply with Federal yellow book appraisal standards with the appraisals completed within 12 months of settlement.  This requirement will raise the cost of a single property’s appraisal from approximately $1,200 to $3,000 or $4,000.  So every time the Foundation receives a federal grant, the Foundation will have significant additional costs, not just in terms of the additional administrative hassles, but in terms of actual expenditures.

 

Mr. Doug Wilson added that, in FY 2007, the Foundation could have as many as 100 FRPP-funded properties.  The extra appraisal costs could easily be $300,000.  Environmental assessments could be $10,000 per property, or a total of $1,000,000.  So MALPF will be spending more than a million dollars off the top in administrative costs to utilize the federal money under the current system.

 

Mr. Colhoun wanted to inform the program administrators that MALPF staff and Maryland Department of Agriculture is very well aware of the constraints, problems, and the pressure that is on the jurisdictions to settle these pending FRPP-funded easements being held up in the process, and everyone is trying hard to break through the stalemate.  Our ultimate objective is to serve the customer.  The villain in this situation may be the federal funds.

 

Ms. Tammy Buckle, Program Administrator, Caroline County, wanted to know if applying for the federal money in FY 2006 is worth the problems involved.

 

Mr. Doug Wilson said that the changes may apply only to the FY 2006 application, not the FY 2004 and 2005 federal funding.  If that is the case, the Foundation may have to spend an extra $200,000 to get that $3 million, we don’t know for sure at this point.  That is still a lot of money.  On the other hand, we may have a total of $9-12 million of federal funds available for matching, and we may have to spend a million dollars to secure those funds.  We don’t know which properties will have federal matching in the first place.  The federal program manager picks the properties.  When MALPF hires DGS to do the appraisals, DGS does not know which properties will have federal matching funds; therefore, DGS does not know which properties will require MALPF appraisals and the federal standard before and after appraisal.  Currently not every appraiser we use is trained in yellow book appraisal standards which are the standards that will have to be used when federal funds are involved.  Those administrative problems create additional problems.  For example, using a before and after appraisal is to determine the easement value simply does not work with our current easement value formula.  Mr. Conrad stated that the Foundation would be restricted to using 50% of the difference between before and after appraisal as the maximum federal funding that could be applied to an easement.  So the amount of federal money we can put in to each individual easement will be less.  This would imply that the federal funding will be spread out over a larger number of easements, raising our administrative costs.  So there are a number of administrative issues involved.

 

Mr. Doug Wilson said that the person we relied on to negotiate the cooperative agreements and to process the federal funds committed to our easements may or may not have received approvals from the national headquarters with all the policy issues that the Foundation has had in the past.  There is no written record, apparently, to support either conclusion.  So now the federal government is saying that our FY 2004 deed of easement has still to be approved by its office.  When we got the deeds back from NRCS signed from all of the FY 2004 commitments to date, it would be logical to conclude that the deed of easement had been approved, particularly because MALPF had included all of the federal language required to be in the deed of easement by the FY 2004 cooperative agreement.  It is possible that NRCS did not get the necessary federal approvals it needed to obtain.  However, Mr. Conrad noted that there is also no proof that NRCS did not get the necessary approvals.  At this moment the federal government is saying that it wants additional and different language in the MALPF deed of easement, and if MALPF does not comply, no more funding will be forthcoming from that federal grant.

 

Ms. Buckle expressed her concern about the perception at the county level about the program in general.  Caroline County had 13 applications.  There were 11 rejections, and 2 offers were accepted.  Those two are now pending settlement and hung up in the FRPP stalemate.  So, Ms. Buckle commented it is not clear that it is worthwhile for the landowner to accept federal funding or just not participate in FRPP funding, and take the standard MALPF funding allocation.

 

Mr. Doug Wilson commented that 10 million dollars is still 10 million dollars.  If we forgo the money, some people’s easements will not be funded.

 

Mr. Conrad stated that, even if we may secure future federal funding and the process starts working again, those with federal funding commitments may find that it will take longer to go to settlement with federal funds compared to going through the regular program.  NRCS may insist on a title review above and beyond what DGS does – which is one of the best.  Further, there may be additional reviews of the appraisals and the language in individual deeds of easement.  Certainly, securing phase one environmental assessments will take additional time.  None of these requirements have been made clear yet, though they have been discussed.

 

Mr. Tassone wanted to know if the law precludes the Foundation from using state money to buy easements which are valued from a different system other than prescribed in the law.

 

Mr. Conrad clarified that the Foundation will set the easement value according to its own statutory requirements; however, the Foundation will likely be required by the federal government to get a separate additional appraisal to meet federal requirements.  That appraisal would not determine MALPF’s easement value, but would be used to determine the maximum amount of money the federal government would put into our easement.  So all the appraisal would be used for would be to calculate the federal contribution.  This appraisal cannot be done at the time the Foundation secures the appraisals used to set its value.  The federal appraisal has to be done within 12 months of the time of settlement.  The Foundation values are set on July 1 of the year of application.  The Foundation usually does not make offers until 9 months after that, making meeting the 12 month requirement next to impossible.

 

Mr. Freedlander wanted some additional explanation on this subject for the Board of Public Works.  Ms. Forrester said that she would be setting up a meeting soon to brief the Board of Public Works about this issue, if it is felt that a briefing would be necessary.

 

Mr. Conrad briefed the Board about the major legislations in the current session.  The bills HB 2, 90, 460, and 769 are moving through the process.  Mr. Colhoun and Mr. Conrad will be attending hearings on some of this legislation in the Senate.  The relocation bill, HB 90, has been slightly amended.  The amendment says that the original house which has been relocated elsewhere on the property cannot be approved to be a tenant house after the main house has been relocated.  If it is not been adapted to an alternative agricultural use, it has to be demolished.  The Agricultural Stewardship bill, HB 2 has passed.  The House has now scheduled a hearing for the Senate version of the bill, SB 5.  The two major amendments are:  1) Priority Preservation Areas are voluntary element rather than required element, and 2) the two certification program – Priority Preservation Area and regular certification program – are collapsed into a single program to reduce the administrative burden.  It also says that only new money would go to counties which certify Priority Preservation Areas, rather than withdrawing existing MALPF money from counties which do not certify Priority Preservation Areas, with the exception of the possibility of losing some agricultural transfer taxes resulting from combining the two certification programs and any failure of counties now certified to continue certification by successfully establishing Priority Preservation Areas.

 

 

    II.     DISTRICT /EASEMENT AMENDMENTS

 

A.                  QUEEN ANNE’S COUNTY

 

1.            17-01-07            Dulin, John R. & Betty L.                            145.825 acres

Request for acreage exchange of easement property

 

Mr. and Mrs. Dulin are the original grantors of the easement.  The current request is for an acreage exchange of easement property for non-easement property.

 

The Dulins are requesting an acreage exchange of 1.022 acres of easement property for 4.6 acres of non-easement property (see attached map).  The purpose of the exchange is to allow the landowner to create an additional lot on withheld acreage for subsequent sale.

 

When the property (Parcel 12 on attached map) entered the program as a district, an 8-acre area was withheld for “future financial security.”  (At district establishment, the Foundation District Staff Report stated that the area was zoned agricultural and the allowed density was one dwelling per 20 acres.)  According to Queen Anne’s County, the current zoning ordinance allows the creation of four “sliding scale” lots on an 8-acre area that was withheld from the district.  However, the perc test indicated the area could only support three lots under the current configuration.  The addition of a 1.022-acre area currently under easement would allow the creation of four lots due to the improved percability of the land.  If the Foundation denies the request, the landowner would have the ability to place the fourth lot on withheld acreage on an adjacent easement property (Parcel 13 on attached map).  (At district establishment on the adjacent property, the landowner withheld four acres, which currently has one “sliding scale” right associated with it.  The County has indicated that a total of four lots could be created on the area contained in Parcel 12 and 13.)

 

The landowner had originally requested an equal acreage exchange of two areas of 1.022 acres each.  The local advisory board recommended that the landowner instead place 4.6 acres of the withheld portion back under easement.  The landowner has agreed to this condition.

 

According to the County, both areas, i.e., the 1.022-acre area to be removed from the easement and the 4.6-acre area to be added to the easement, are comprised of Class II soils.  The request was approved by the local agricultural advisory board and conforms to local zoning regulations.

 

Foundation staff requested that the County explain the “sliding scale” rights process during the meeting.  The County’s letter to the Foundation states that, under the Zoning Ordinance, “one new lot can be created using sliding scale for every one hundred acres or part thereof.”  The Foundation’s deed of easement states that “No development rights from the above described tracts(s) or parcels(s) may be transferred to another area, or to another person, or to a political sub-division.”  The Foundation should be assured that, in keeping with the intent of the easement, the rights associated with the easement property are not being used to create density elsewhere.

 

Foundation staff recommends approval of the request with the condition that a deed restriction will be placed on the adjacent property (Parcel 13) which extinguishes the right to develop the withheld portion at any time in the future.  Denial of the request would result in a high probability of the development of a lot on Parcel 13.  An additional lot on the area withheld from Parcel 12 would have less adverse impact on the agricultural operation of the farm than the addition of a single lot on Parcel 13.  Additionally, the approval should be conditional on a favorable review of the impact on the value of the easement by the Office of Real Estate, Department of General Services.

 

Mr. Dulin and Ms. Rad Sakhamuri were present at the meeting to answer any questions from the Board.  Ms. Sakhamuri explained the “sliding scale technique” for the benefit of the Board members.  The sliding scale technique allows landowner to create lots without creating open space.  Queen Anne’s County requires 85% open space to create any lot.  The open space was required by 1987 zoning, and there were many properties that were caught with the open space requirement.  In 1993, the County updated its zoning ordinance and introduced the sliding scale technique whereby a farmer can subdivide off a lot for every 100 acres.  If a farmer wants to create a lot for himself or for his children, he does not have to go through the requirement of 85% open space to support the lot.  The sliding scale technique has been used in the County since 1993.

 

Ms. Sakhamuri stated that this easement property had come into the program after 1993, and she was not aware about the information presented to the Board at the time of application.

 

Mr. Dulin stated that the land that he wanted to exchange is of the best area that would perc and meets county standards.  The land in the green area of the map did not perc and did not have suitable land separations to meet the county standards.  The proposed lot on the other hand would meet county standards.

 

Ms. Sakhamuri stated that the landowner had left out a five-acre parcel, and the Foundation had asked her if Mr. Dulin would be willing to put an easement on the 5-acre parcel.  Mr. Dulin is subdividing the 3 lots on the land that were left out.  Mr. Dulin was willing to put an easement on the five acres in exchange for the 4 lots.

 

Mr. Tassone wanted to know how the sliding scale rights are calculated in relationship to the lots by acreage.  For example, you can get 1 lot per 20 acres or you can get 1 lot per 8 acres if you cluster.  He wanted to know if the sliding scale rights are in addition to those rights created by clustering.

 

Ms. Sakhamuri responded in the affirmative and stated that the cluster density ratio is 1 for 8 and the sliding scale is 1 lot for every 100 acres or less than 100 acres.  For anything more than that, for every 100 acres there is one additional lot.  Citing an example, Ms. Sakhamuri stated that if a landowner has 98 acres, he will get 12 lots for 96 acres and for the 2 remaining acres the landowner can draw on the sliding scale which means that the landowner can get 13 lots.  It is not a cluster technique but a sliding scale technique.

 

Mr. Bill Amoss, Program Administrator, Harford County, wanted to know if it has been recorded anywhere how many lots are associated with the withheld acreage so it can be taken into account when appraisals have to be done.

 

Ms. Sakhamuri stated that the property became an easement property awhile ago, and she does not have any evidence to confirm how many lots were taken out at that time.  It was mentioned in the staff report that 8 acres were left out for “future financial security.”  She believed that the program administrator at that time would have informed the Board and the landowner about many lots could have been developed on 8 acres.

 

Mr. Conrad wanted to know if anyone has checked to verify the appraisals to see how many lots were actually appraised at the time of the easement taking into account the withheld acreage and to find if there has been any discrepancy.  Ms. Sakhamuri stated that she did not verify the appraisal, but she did check in the files to see if there was any evidence on what was the intent of withholding the 8-acres and whether the information was relayed to the Foundation or not.  The financial security objective was definitely mentioned in the staff report that was presented to the Board.  She was not aware of the number of lots that were conveyed by that withheld acreage.

 

Mr. Colhoun commented that in the staff memo circulated with the agenda material, staff has recommended approval conditional on a favorable review of the impact on the value of the easement by the Office of Real Estate, Department of General Services.  Mr. Colhoun believed the answer will come from DGS Office.

 

Mr. Tassone commented that the withheld acreage policy was enacted by the Foundation in response to one of the recommendations from the Task Force.  One of the questions that the Task Force failed to answer was how to handle a property with 10 development rights.  Withholding acreage means 3 lots could be withheld, leaving 7 rights to be purchased. How do you make sure that the appraisal is done right; but more importantly, how do we deal with the issue that 5, 6, 8, 10 years from now, when somebody wants to sub-divide the withheld acreage?  The rights they have are relative to the original acres of property and the way the county interprets sub-division and development regulations at that time.  The only solution the Task Force could think of was to put a deed restriction on the withheld acreage limiting the development to what was assigned to it by the process of coming into the MALPF program.  But nobody would go for that.  So the Foundation had to figure out with each county how to fix that distribution of development rights between the withheld acreage and the easement property.  Mr. Tassone believed that Mr. Amoss’s question was relevant and is something that the Foundation still should address.

 

Mr. Amoss stated that, in Harford County, if there is withheld district acreage for financial security purposes, the county requires the landowner to plot the acreage and inform them of how many development rights are associated with it.  In Harford County, landowners can cluster.

 

Ms. Sakhamuri stated that this case before the Foundation is not part of a cluster subdivision.  The sliding scale does not require any restriction of open space; it is using a different technique.  The County does not count easement acreage in terms of open space.

 

Mr. Doug Wilson commented that it is correct to have DGS have a say that the action, if approved, does not invalidate the appraisal and the payments.

 

Ms. Forrester stated that it looks like the Foundation is receiving nine acres in exchange for one acre.  Ms. Sakhamuri confirmed that this was the case.

 

Ms. Weaver, Foundation staff, wanted to know if there is going to be a deed restriction.

 

Mr. Dulin felt that he is already giving the Foundation quite a lot.  He stated that he had spoken to Ms. Joy Levy who was the Program Administrator of the county when he entered the program.  He was told at the beginning that there would be no problem.  Mr. Dulin stated that he is only asking the Foundation to shift the line.  He supports the MALPF program.  When he bought the farm, he put it into land preservation.  There was no hesitation; there was no problem of development rights.

 

Mr. Colhoun commented that the Board is trying to resolve a larger issue and that Mr. Dulin should not feel that the Board is picking on him.  The issue is a state-wide issue and that is the reason the Board and administrators are discussing it in detail.

 

Ms. Levy, Program Administrator, Howard County, stated that she was the Program Administrator in Queen Anne’s County when Mr. Dulin’s application had come up.  At the time of Mr. Dulin’s entering the program, the Task Force’s recommendation had not been made.  What Mr. Dulin did was a standard practice at that time.  There was nothing unusual in Mr. Dulin’s application or situation.

 

Motion #2:         To approve the request as recommended by the staff with the condition that a deed restriction on easement be placed on parcel 12 and 13 and DGS resolve the question about the lots versus the appraisal.

 

Motion:             Joe Tassone                  Second:            Robert Stahl

Status:              Approved

 

Ms. Buckle commented that the swap requests come to the Board all the time and are approved without a question.  Mr. Dulin has given several acres for 1.022-acre area.  She wanted to know the reason why this request is treated differently.

 

Ms. Weaver explained that in this case there was a concern about where the extra density is coming from.  The staff report at the time the property came in as a district mentioned density as 1 lot per 20 acres.  So there was a question as to if the density was 1 per 20 how can we put three lots here?

 

2.         17-99-12C         Leager, James C. & Kay L.                          192.27 acres

Request for the exclusion of up to 2 acres for an owner’s lot on easement property.

 

Mr. and Mrs. Leager are the original grantors of the easement.  The current request is for the release of up to two acres for an owner’s lot for their personal use.

 

There are no pre-existing dwellings on the property.  No other lots have been requested for this property.  The Leagers do not own any other district or easement properties.

 

According to Queen Anne’s County, the proposed lot is to be located along the perimeter of the property.  The lot will be accessed through an existing farm lane that runs along the edge of the property.  The lot location follows the guidelines of the Foundation’s approved lot location policy.  The landowners have applied for a perc test.

 

The request was approved by the local advisory board and conforms to local zoning regulations.  If approved, there will be a required payback of $925.00 per acre to the Foundation.

 

Staff recommends approval of the release of one acre plus such minimum additional acreage if required by the County Health Department, not to exceed 2 acres total based on the provisions of the deed of easement and in accordance with Agricultural Article, Section 2-513(b), Annotated Code of Maryland, which grants an allowance of a maximum lot size of up to 2 acres if required by regulations adopted by the Department of the Environment or the county.

 

Ms. Donna Landis-Smith, Program Administrator, was present to answer any questions from the Board.  Ms. Smith informed the Board, that, prior to the farm being put in an easement, there was an old dwelling that was destroyed.  The proposed location is a much better location on the farm.  Mr. Leager is going to improve the farm lane to meet the county regulations.

 

Motion #3:         To approve the request of James and Kay Leager for the exclusion of up to 2 acres for an owner’s lot on easement property.

 

Motion:             Doug Wilson                  Second:            Pat Langenfelder

Status:              Approved

 

3.         17-86-21            Clark, Sr, David M. & June K.                       211.00 acres

Request for the relocation and release of a pre-existing dwelling

 

Mr. and Mrs. Clark are the original grantors of the easement.  The current request is for the relocation and release of an existing dwelling on the easement property.

 

According to Queen Anne’s County, the Clarks intend to remove the existing dwelling and replace it at another location on the property.  The Clarks have submitted two possible locations for the replacement dwelling.  The replacement site will be determined once the land in the proposed locations has been perced.

 

Both proposed relocation areas are located along the road.  The existing dwelling is located in the middle of the property and is accessed by a long driveway.

 

The soils map attached with the agenda item indicates that the soils on the sites are comparable.  The areas of the proposed relocation sites are currently used as cropland.

 

The farming operation consists of an annual rotation of wheat, corn, and soybeans.

 

In a letter to the Foundation, the Clarks indicated that they intend to return the area where the dwelling is currently located to agricultural use.  A letter to the Foundation from the Soil Conservation District Conservationist indicated that the area could be restored for use as cropland.

 

According to Donna Landis-Smith, Queen Anne’s County Program Administrator, either proposed lot locations will improve the agricultural operation because both are located along the road, while the current dwelling is located in the middle of the property.

 

The proposed relocation site will be accessed directly off the road.  The request was approved by the local advisory board and complies with local zoning regulations.

 

Additional information attached to the request included photos of the existing dwelling and the proposed site, along with a copy of the Foundation’s lot relocation regulations.

 

Foundation staff recommends approval based on the condition that the existing dwelling will be demolished and the area where the current dwelling exists will be returned to agriculture within 60 days of the issuance of a use and occupancy permit for the replacement dwelling, or sooner, if required under county law.

 

If the Foundation approves the request, the Clarks must enter into a written agreement with the Foundation, to be recorded among the county land records, describing the terms and conditions of the Foundation's approval.

 

Ms. Smith, Program Administrator, was available to answer any questions from the Board.

 

Mr. Doug Wilson wanted to know if the county had a preference as to which lot is preferred.  Ms. Smith responded that the county and the landowner would prefer the first choice because it is located in the corner of the farm, but the landowner was not sure if it would perc.  The second choice is along an existing farm lane that goes up to the pre-existing dwelling.

 

Motion #4:         To approve the request by David and June Clark for the first choice for the relocation and release of a pre-existing dwelling if it percs.  If the first choice does not perc, the approval is for the second choice.  The approval is subject to the landowners signing a pre-existing dwelling Relocation agreement.

 

Motion:             Doug Wilson                  Second:            Pat Langenfelder

Status:              Approved

 

B.         CARROLL COUNTY

 

1.         06-89-28Ae        Talbert, Harold T.                                            70.0 acres

Re-review of a request to acknowledge a dwelling that existed prior to easement sale

 

At the February 28, 2006 Board of Trustees meeting, the Board reviewed a request by Mr. Talbert to acknowledge a dwelling that existed prior to easement sale.  Mr. Talbert’s daughter and son-in-law were present at the meeting and stated that it was Mr. Talbert’s intention to have the dwelling, if it is recognized, to stay as the principal dwelling on the property, and to possibly cancel an approved child’s lot for his son, Michael.  The Board tabled the request until an agreement could be drawn up by Mr. Talbert or more information could be provided about the dwelling and Mr. Talbert’s intentions for Michael’s child’s lot.

 

Since the February 28 Board meeting, Nancy Forrester, Assistant Attorney General, and William Beach, DGS Appraiser, have reviewed the appraisal and discussed this issue.  Ms. Forrester and Mr. Beach both agree that the dwelling was probably physically located on the property prior to the appraisal.  The reason the appraisals do not reflect its existence is because the appraisers were instructed to view the property as having only one pre-existing dwelling.  They have both stated that they have no objection to acknowledging the dwelling with the following stipulations:  1) the dwelling may not ever be subdivided from the property; 2) if the dwelling is allowed to be replaced in the future, the Foundation will have to approve its location and its size.

 

William Powel, Carroll County, has informed staff that Mr. Talbert is in the process of writing a letter that will relinquish the 1.0 acre child’s lot that was approved for his son, Michael on January 25, 2005.  That letter will be provided to the Board at the meeting.  Although this is a separate issue, staff is requesting a formal response from the Board at this time.

 

The Carroll County Advisory Board has approved this request.

 

Foundation staff recommends approval of the request to recognize the trailer as a pre-existing dwelling with the following conditions:  1) the dwelling may not ever be subdivided from the property; and, 2) if the dwelling is allowed to be replaced in the future, the Foundation will have to approve its location and its size.  Foundation staff further recommends the Board accept Mr. Talbert’s offer to relinquish the 1.0 acre child’s lot that was approved on January 25, 2005, for his son, Michael Talbert.

 

Mr. and Mrs. Stambaugh, daughter and son-in-law of Mr. Harold Talbert, and Mr. Ralph Robertson, Program Administrator, were available at the meeting.  Mr. Robertson stated that he has the un-signed letter from Mr. Talbert relinquishing the child’s lot.

 

Mr. Robertson wanted to know the reason behind the limitation in the size of the dwelling.

 

Ms. Forrester commented that there is a concern about the character of the farm as it existed when the Foundation purchased the easement.  The reason is not to limit the size, and the Foundation does recognize the trailer.

 

Mr. Robertson stated that he vividly remembers the house burned down because it was next to his farm.

 

Mr. Conrad commented that the rescinding the approval for the child’s lot is not the same as relinquishing the right.  The right for the child’s lot still remains.  If Mr. Talbert still wants to come back and ask the Foundation for a child’s lot, that right is still available.  All that is being done is just rescinding an earlier approval.

 

Mr. Conrad stated that what the Foundation is creating here is not a tenant house but it is like a tenant house.  It is non-sub-dividable.  We have size restrictions on tenant house approvals.  The Foundation is not asking for size restrictions, but just asking for size review.  The Foundation is not saying that the house is restricted to a certain size.  Part of the concern is how we are handling tenant houses, and there have been lots of issues in Howard County with a house that was called a tenant house and was not a tenant house.  So, while this is not a tenant house, there is concern that the Foundation should know what becomes of the dwelling over the period of time.  It is only a recommendation, and the Board has the option to include or not to include the language of the recommendation.

 

Motion #5:         To approve the request by Harold Talbert to acknowledge a dwelling that existed prior to easement sale with no restriction on the size of the dwelling.

 

Motion:             Robert Stahl                  Second:            Chris Wilson

Status:              Approved

 

Mr. Tassone wanted to confirm the possibility that, since the pre-existing dwelling is now recognized, the landowner has the right to request it to be re-located on the property.  Mr. Conrad agreed.

 

Mr. Colhoun commented that he does understand the issue of redesignating the existing house as the tenant house when a relocation request is made, and he knows that there have been instances when people have wished to designate the main house as tenant house because they want to build a larger house.  He did not feel that was the case in this present request.

 

Ms. Council, Foundation staff, stated that the Foundation also needs a motion to accept the withdrawal of the approval for the child’s lot for son, Michael Talbert.

 

Motion #5a:       To approve the relinquishing of the original approval for the child’s lot.

 

Motion:             Joe Tassone                  Second:            Pat Langenfelder

Status:              Approved

 

Mr. Colhoun thanked the Stambaughs for their patience and for attending the meeting.

 

2.         06-00-06e          Weber, Jr., John & Elizabeth                      114.336 acres

Request for up to 2.0 acres for a child’s lot for their daughter, Heidi L. Biden

 

Mr. and Mrs. Weber are the original grantors of the easement.  The current request is for the release of up to two acres for a child’s lot for the personal use of their daughter, Heidi L. Biden.

 

According to Carroll County, the proposed lot is to be located in woodland, along the property’s boundary.  The proposed lot will have right-of-way access via a farm lane that exists on a contiguous property that is also owned by Mr. and Mrs. Weber.  Impact to the overall farm operation will be minimal.  The location and access for the lot conform to the Foundation’s recently approved Lot Location Guidelines.

 

The request was approved by the local advisory board.  The request conforms to local zoning regulations.  If approved, there will be a required payback of $3,000.00 per acre to the Foundation.

 

Staff recommends approval of the release of one acre plus such minimum additional acreage if required by the County Health Department, not to exceed two acres total based on the provisions of the deed of easement and in accordance with Agricultural Article, Section 2-513(b), Annotated Code of Maryland, which grants an allowance of a maximum lot size of up to two acres if required by regulations adopted by the Department of the Environment or the county.

 

Mr. Ralph Robertson was available to answer the questions from the Board.  Mr. and Mrs. Weber conveyed their regret in not being able to attend the meeting.

 

Mr. Robertson briefed the Board members about the location of the lot.  The lot is on the edge of the farm and is next to a wooded area.  He confirmed that the location and access for the lot conform to the Foundation’s recently approved Lot Location Guidelines.

 

Motion #6:         To approve the request by John and Elizabeth Weber for up to 2.0 acres for a child’s lot for their daughter, Heidi L. Biden.

 

Motion:             Shirley Pilchard             Second:            Pat Langenfelder

Status:              Approved

 

C.         WASHINGTON COUNTY

 

1.         21-02-03            Clark, Billy L. & Dorothy L.                            75.27 acres

Request for up to 2.0 acres of district property for a child’s lot for their son, Clinton L. Clark.

 

Mr. and Mrs. Clark are the original owners of the district property.  There are two pre-existing dwellings, and there have been no previous requests for lot exclusions.  Mr. and Mrs. Clark do not own any other district or easement properties.

 

According to Washington County, the proposed lot will be located in what is currently Class II pastureland and will have minimal impact on the farm operation.  The lot will have access to Mercersburg Road via a right-of-way that currently serves as a seasonal-access farm lane along the property boundary.  The landowners have located the proposed lot several hundred feet away from the road and adjacent to a dwelling that exists on an adjoining property even though they were informed of the Foundation’s recently approved Lot Location Guidelines.  In accordance with the Guidelines, in order to further minimize the interference with the beef cattle operation, the preferred location of this lot is adjacent to Mercersburg Road, with direct access.  The Program Administrator and the landowners were not available at the meeting.

 

The local agricultural advisory board has approved this request.  The request conforms to local zoning regulations.  If approved, there will be no payback for the lot as this is district property.

 

Staff recommends approval of the release of one acre plus such minimum additional acreage if required by the County Health Department, not to exceed 2.0 acres total in accordance with Agricultural Article, Section 2-513(b), Annotated Code of Maryland, which grants an allowance of a maximum lot size of up to 2.0 acres if required by regulations adopted by the Department of the Environment or the county.

 

Mr. Conrad informed the Board that the request does create some degree of clustering and briefed them about the access to the lot.

 

Motion #7:         To approve the request by Billy and Dorothy Clark for up to 2.0 acres of district property for a child’s lot for their son, Clinton L. Clark.

 

Motion:             Joe Tassone                  Second:            Robert Stahl

Status:              Approved

 

Mr. Freedlander wanted to know that since the agenda items have already been distributed to the Board members, was it necessary for Mr. Conrad to read the introduction of each agenda item before the Board starts discussing the specific issue.

 

Mr. Colhoun commented that many times the agenda packet reaches the Board members at different times and the Board members don’t always get to read all the details.  He felt Mr. Conrad’s reading the pertinent points is advantageous to the Board members as every Board member has not got the chance to study the agenda items as much as some of the Board members do.

 

Mr. Conrad stated that he is flexible and can do whatever the Board wants.

 

Mr. Tassone commented that he goes through the agenda packet very carefully and writes down his comments, but, frequently when the item comes up on the agenda, he does not always remember his comments.  So when Mr. Conrad reads out the introduction, it helps Mr. Tassone to think about it.  Mr. Tassone agreed with Mr. Colhoun that Mr. Conrad can read the pertinent points especially when the staff memo is very long.

 

Mr. Conrad stated that he will try to be as brief as possible.  Mr. Conrad continued to proceed with the next item on the agenda.

 

2.         21-97-07            Clark, Ray & Geneva                                     101.0 acres

Request to relocate 5.82 acres that were withheld from the district.

 

Mr. and Mrs. Clark are the original owners of the district property.  There are two pre-existing dwellings and there have been no requests for lot exclusions.  The Clarks do not own any other district or easement properties.  The landowners had applied in the FY 2006 easement acquisition cycle, but have withdrawn their application in order to make this request.

 

At the time of district establishment, the landowners withheld 8.6 acres for the four (4) future lots for their children.  At this time, they are requesting to relocate 5.82 of the 8.6 acres in order to cluster all of the lots on the southernmost portion of the property.  Mr. Conrad commented that, based on a prepared sub-division plat, the relocation will result in a total of five lots.  All the proposed lots have direct access.  Staff would like to make following comments:

 

1.       The proposed location is a better location for the lots – it has better access, and it is clustered.

2.       There is an extra lot.  The earlier rule applied when they withheld the acreage.  So there was no limitation at that point as to how many lots could be created.  The district was created in 1997.

 

According to Washington County, both areas consist of Class II cropland.  All of the proposed lots will have direct access to either Barnhart Road or Mercersburg Road.  The relocation will create lessen the disturbance to the overall farm operation.  The relocation is in accordance with the Foundation’s recently approved Lot Location Guidelines.  (Please note:  the landowners’ ability to withhold a potential to develop four lots pre-dates the Foundation’s policy on withheld acreage.)

 

Foundation staff recommends approval of the request to relocate 5.82 acres that were withheld from the district because it meets the Foundation’s Lot Location Guidelines and will cause less impact on the overall farm operation.

 

Mr. Conrad noted that the colored aerial map locates an exclusion in the middle of the property.  It is a cemetery and was excluded when the district was created.

 

Mr. Tassone wanted to know the location of the 8.6 withheld acres.  Ms. Council located the lot in the ADC map.

 

Responding to a question, Mr. Conrad stated that the property is a district and there is no appraisal impact on the value of the property.  The lot down (lot 1) on the corner of the property is a previously approved lot.  That already exists, and there is no creation of an additional lot.

 

Ms. Council stated that it does create an additional lot.  The one down in the corner is a piece of the 8.6 acres that was originally withheld.  Since it was withheld the lot has been sub-divided from the farm and has been developed.  There is a child living on that lot.  Originally the area along the edge was to have three lots.  By moving the acre, they are going to create four lots.  It does create one extra lot, but this is a district and the property has not been appraised.  All five lots will be taken into consideration next year when the Clarks re-apply for an easement.  Since the Clarks have completed five-year district commitment, they also have an option to terminate all or a portion of the district.

 

Mr. Stahl stated that the earlier discussed request from Dulin was a recently established district which meant that they could not have terminated their district if the Board decided not to approve their request.  This present request is on a district that is older than five years, and it could be terminated anytime.

 

Mr. Conrad wanted to know if the Clarks have applied for family lots or unrestricted lots in the application.  Ms. Council said that she is not aware, but can find it.

 

Mr. Tassone commented that the acreage that the Board is considering to be moved was withheld for providing lots to the children.  So he wanted to know how the request is related to any subsequent request for children’s lots.

 

Mr. Doug Wilson commented that the landowners have a choice of withdrawing from the district and coming back at a later date.

 

Mr. Craig Nielsen, Assistant Attorney General, Department of Agriculture, commented that the landowners are not entitled automatically to sell an easement.  If the Board sees someone who is purposefully working against the intent of the program, the Board can always decide not to buy the easement.

 

Mr. Tassone wanted to have Mr. Nielsen’s opinion about making distinctions on requests like the present one in the context of a district versus an easement.  Mr. Tassone believed that the two have to be treated equivalently.

 

Mr. Nielsen stated that a district is a restriction on the use of the land and, in principle, both the district and the easement have to be treated same.  Mr. Nielsen stated the question will be whether they should be allowed to sell an easement.  If the children are already living there, should the landowners get another set of children’s lots?  The Board has the discretion to make a decision in the interest of the program.

 

Mr. Stahl commented that the Board can say that it is not going to take that into account, but the reality is different and cannot be discounted.  Mr. Tassone stated that it can be recognized and maybe the Board can preclude it.

 

Ms. Council stated that conveying their intention of withholding the acres for their children does not bind the Clarks to use the acres for their children.  At the time of district establishment, the Foundation did not have any policy on withheld acreage.  As in the case of Mr. Dulin, the Clarks could have said that they are withholding acreage for future financial security.  The Foundation would not interfere with the landowner’s intention.  So in this case, the Clarks are not bound by the Foundation to use the withheld acres for their children.

 

Mr. Doug Wilson commented that he understands Mr. Tassone’s comments but wanted to support Mr. Stahl’s comments.  In April if the Foundation rejects Mr. Clark’s application, he can turn around the next day and withdraw from the program.  Why should the Foundation preclude a client from turning against the program by creating more road blocks and more administration for something he is entitled to do in a variety of ways?  When the Clarks apply for an easement, theoretically the lots are valued based on local zoning allows and the Board can clearly ask the Clarks their intention – for example, if three of the kids have moved into houses on the withheld acreage, asking their intentions concerning child’s lots would make sense.

 

Mr. Tassone commented that he has no problem with the location of the lots based on the staff memo, but he has concerns about the children’s lots.

 

Motion #8:         To approve the request by Ray and Geneva Clark to relocate 5.82 acres that were withheld from the district.

 

Motion:             Robert Stahl                  Second:            Doug Wilson

Status:              Approved

 

D.                  RURAL LEGACY EASEMENTS

 

Mr. Conrad wanted to brief the Board members about the Rural Legacy Easements.  MALPF has a Memorandum of Understanding with certain land trusts where MALPF is a co-holder of Rural Legacy easements.  We have a Memorandum of Understanding (or MOU) with the Land Conservation Trust and Long Green Valley Conservancy for MALPF to co-hold Rural Legacy easements.  There is a requirement in Rural Legacy that any purchase of easements by the state with a land trust has to have a state or a county co-holder of that easement.  It also makes sense for the landowner, because, if there is any discounting taking place on any of these transactions, landowners can claim an income tax credit for the bargain sale if a state agency is an easement co-holder.

 

There used to be a choice between MALPF and the Maryland Environmental Trust to act as an easement co-holder.  Maryland Environmental Trust is no longer co-holding.  The other co-holder is MALPF’s counterpart at the Department of Natural Resources, the Rural Legacy Program.  Rural Legacy has transformed itself into an easement holding entity as well as a funding agency.  The reason the Land Conservation Trust and Long Green Valley Conservancy are asking MALPF to co-hold is because some landowners prefer having a Board making decisions about their requests made up of majority of people who have a farming background and understand farming operations.

 

MALPF holds these properties as a matter of courtesy.  MALPF has the ultimate responsibility of monitoring these easements and making sure that they continue to work in the future, though MALPF’s land trust partners provide monitoring services.  We do not count these properties in our totals.  They are counted in the acreage totals of the Rural Legacy Program, even though MALPF does have some responsibilities.

 

Some additional material, including the deed of easement of the Weber property, was distributed to the Board members.  Mr. Conrad recommended that both the items be approved subject to review of the final deed of easement by Nancy Forrester, Assistant Attorney General, Department of General Services, or Mr. Nielsen before they go to settlement.  While reviewing the deed of easement, he did notice some potential issues, such as who has the right to go onto the property.  In the deed of easement, the monitoring entity is the Rural Legacy Board; Mr. Conrad believes that the responsibility should be given to MALPF and to the Land Preservation Trust.

 

Both the properties are in different parts of Baltimore County.  Mr. Dan Colhoun is on the Piney Run Watershed Rural Legacy Board.

 

Mr. Colhoun stated that he will be abstaining from the next two agenda items and requested Ms. Vera Mae Schultz to chair the meeting.  Ms. Ann Jones, Administrator on behalf of the Land Preservation Trust, could not be present.  Mr. Colhoun offered to substitute for her in case the Board has any questions.

 

1.         Miller, Benjamin G., & Catherine A.                                      175.27 acres

PINEY RUN RURAL LEGACY AREA

Request to co-hold Rural Legacy Easement

 

On February 23, 1999, the Foundation’s Board of Trustees approved the concept of co-holding Rural Legacy conservation easements, but reserved the right to review and approve specific conditions on a case-by-case basis.

 

The proposed Rural Legacy easement on a property located within the Piney Run Watershed Rural Legacy Area in Baltimore County was attached for review and consideration of Board members.

 

The proposed easement follows the already approved model easement.  The easement is in the Piney Run Watershed Rural Legacy Area of Baltimore County and will be co-held with the Land Preservation Trust.

 

2.         Weber, Adam H. & Jennifer                                                111.493 acres

The Long Green Valley Rural Legacy Area

Request to co-hold Rural Legacy Easement

 

On February 23, 1999 the Foundation’s Board of Trustees approved the concept of co-holding Rural Legacy conservation easements, but reserved the right to review and approve specific conditions on a case-by-case basis.

 

The proposed Rural Legacy easement on a property located within the Long Green Valley Rural Legacy Area in Baltimore County and co-held with the Long Green Valley Conservancy is attached for review and consideration of the Board members.  The proposed easement follows the already approved model easement.

 

Motion #9:         To approve the request for approval to co-hold Rural Legacy easements for Benjamin and Catherine Miller (with the Land Conservation Trust) and Adam and Jennifer Weber (with the Long Green Valley Conservancy) pending the final easement review by Ms. Nancy Forrester or Mr. Craig Nielson.

 

Motion:             Robert Stahl                  Second:            Howard Freedlander

Abstained:         Dan Colhoun

Status:              Approved

 

Mr. Dan Colhoun took over to chair the remainder of the meeting.

 

 

   III.     AGRICULTURAL PRESERVATION DISTRICT PETITIONS

 

Mr. Conrad presented the district petitions.

 

A.         GARRETT COUNTY

 

1.         11-06-01            Sunny, Bonnie J., & Herman H. Steiding       121.31 acres

 

This is a 121.31 acre parcel located in the community of Swanton.  There is 1 dwelling.  The farm has 23.5 cropland, 23 pasture, and 67.8 woodland acres.  The landowners are in the process of acquiring a Forest Stewardship Plan.  The primary farming operation is beef and cattle.  It has 81.2% qualifying soils.  It is owner operated and is not part of a larger operation.

 

Staff recommends the landowners acquire a Forest Stewardship Plan.

 

2.         11-06-02            Petersheim, Paul N. & Naomi R.                    65.00 acres

 

This is a 65.00 acre parcel located in the community of Gortner.  There is no dwelling.  The landowners are withholding three acres for future expansion of a produce stand.  The area being withheld falls within the guidelines of the Foundation’s withheld acreage policy.  It has 26.4 cropland, 2.6 pasture, and 36 woodland acres.  The primary farming operation is dairy and vegetable.  It has 90.2% qualifying soils.  The property is in the process of acquiring a Forest Stewardship Plan.  It is owner operated and is not part of a larger operation.

 

3.         11-06-03            Miller, Ray E & Rachel A.                              62.77 acres

 

This is a 62.77 acre parcel located in the community of East Oakland.  There is no dwelling.  The landowners are withholding three acres for future expansion of existing agricultural tourism business.  The area being withheld falls within the guidelines of the Foundation’s withheld acreage policy.  It has 56.4 cropland and 6.37 pasture acres.  The primary farming operation is dairy and agro-tourism.  The property has a Soil Conservation Plan.  It is owner operated and is not part of a larger operation.  It has 99.41% qualifying soils.  It has a Soil Conservation Plan.

 

4.         11-06-04            Swartzentruber, Abner C. & Miriam A.           122.99 acres

 

This is a 122.99 acres parcel located in the community of Oakland.  There is 1 dwelling.  It has 71 cropland, 21 pasture, and 29 woodland acres.  The primary farming operation is dairy.  It is owner operated and is not part of a larger operation. It has 61.29% qualifying soils.

 

Staff recommends the landowner acquire a Forest Stewardship Plan.

 

Mr. Nielsen commented that, since the Department of Agriculture enforces the Nutrient Management Program, the Foundation should at least request the landowners to answer the question as to whether they have a Nutrient Management Plan on their farm.  Mr. Nielsen added that he is involved with enforcing the Nutrient Management Program as a part of the Department, and MALPF is also part of the Department of Agriculture.  The requirement is a state law.  The ideal thing would be to make the requirement of Nutrient Management Plan an eligibility requirement to participate in this program.  He is currently asking the Board to consider asking the landowners whether they have complied with a Nutrient Management Plan or have plans to acquire a plan because it is required by another unit of this Department.

 

Mr. Colhoun clarified that Mr. Nielsen is asking the Board to adopt a policy to ask the landowners whether they have or will adopt a Nutrient Management Plan.

 

Mr. Conrad reminded the Board that the Foundation recently had Ms. Louise Lawrence, Office of Resource Conservation, talk about this requirement at the June 2005 Board meeting.  The Board and the Foundation had agreed that, when we have more time, we would address the issue.  Mr. Conrad wondered if it would be more advantageous if reviewing and adopting such a policy were to be done more systematically when we have more time rather than just developing it in the course of reviewing the district applications.

 

Mr. Colhoun said it is an interesting and an important issue, but wondered if the Board would like to consider a policy of this nature without close study and more detailed recommendations.  He added that he was willing to appoint a committee to get some details to the Board.

 

Mr. Stahl commented that he has concerns that, without having told people about the requirement, we use such a requirement as part of an enforcement action.  This would discourage the people coming into the program.  Mr. Stahl stated that he understands that the requirement is a State law and the landowners are required to do it.  However, he believes, if the Board asks the landowners as a part of the land preservation application, it would hurt the program.  Without having come out with a formal policy that everyone is aware of, he would be very cautious with this approach.

 

Mr. Tassone stated that, even if nothing bad happens, at the very least it creates an awkward situation.

 

Mr. Conrad commented that, though it is an unrelated issue, he wanted to remind everyone that the district approvals should be subject to finalization of any pending legislation.  If the legislation goes through, the Foundation would be willing to hold the recordation of the district agreements until the effective date of legislation, which is July 1, 2006.  The Foundation will take it to recordation subject to the counties determining the term period of the district for each county.  If landowners want to go ahead and record it now, it would be a 5-year district agreement, and the Foundation will be happy to do that.  If the landowners would like us to hold them until July 1, 2006, the Foundation would like to make it consistent with whatever decisions the counties make about the time frame of the District Agreement.

 

Ms. Buckle stated that an easement requires a Soil Conservation Plan.  If landowners have a Soil Conservation Plan, they are already required to have a Nutrient Management Plan up to date.  Ms. Buckle believed the two should be working together depending on how well NRCS and the extension office are working together.

 

Mr. Stahl commented that there are many landowners who are not directly associated with the actual operations of the farms.  Suddenly we are making the owner of the property responsible for ensuring that whoever works on the farm has a Nutrient Management Plan in place.  Many of the landowners are not even aware of the Nutrient Management Plan requirements.  He voiced his concerns to Ms. Lawrence during the June 2005 Board meeting.  He felt that this action would create a negative feeling about the program and believed the Board needs to be very cautious.

 

Motion #10:       To approve the requests of Bonnie Sunny and Herman Steiding, Paul and Naomi Petersheim, Ray and Rachel Miller, and Abner and Miriam Swartzentruber to establish agricultural land preservation districts on their respective properties.

 

Motion:             Joe Tassone                  Second:            Vera Mae Schultz

Status:              Approved

 

B.         CAROLINE COUNTY

 

1.         05-06-01            Griffith, Margaret A. & Charles M.                 125.77 acres

 

This is a 125.77 acre parcel located in the community of American Corner.  There is 1 dwelling.  The farm has 65.267 cropland and 59 woodland acres.  The landowners have a Soil Conservation Plan and a Forest Stewardship Plan in place.  The primary farming operation is field crops.  It has 99% qualifying soils.  It is not owner operated and is part of a larger operation.

 

2.         05-06-02            Smith, Brian J. & Penny L.                            86.22 acres

 

This is an 86.22 acre parcel located in the community of Greensboro.  There is no dwelling.  It has 21 cropland and 29.92 woodland acres.  The primary farming operation is soy, corn and timber.  It has 100% qualifying soils.  The property has a Soil Conservation Plan.  It is not owner operated and is part of a larger operation.

 

Staff recommends the landowners acquire a Forest Stewardship Plan.

 

3.         05-06-03            Smith, Brian J. & Penny L.                            73.86 acres

 

This is a 73.86 acre parcel located in the community of Greensboro.  There is no dwelling.  The landowners are withholding five acres.  The area being withheld falls within the guidelines of the Foundation’s withheld acreage policy.  It has 9.8 cropland, 3.4 pasture, and 38.24 woodland acres.  The primary farming operation is corn and soy.  The property has a Soil Conservation Plan.  It is not owner operated and is part of a larger operation.  It has 100% qualifying soils.

 

Staff recommends the landowners acquire a Forest Stewardship Plan.

 

4.         05-06-04            Griffith, Charles M. & Margaret                       48.18 acres

 

Mr. Conrad pointed out the correct acreage is 48.18 acres and not 73.86 mentioned in the staff report.

 

The 48.18 acre parcel is located in the community of Williston/American Corner.  There is 1 dwelling.  It has 2 cropland and 21.2 woodland acres.  The farm has 21.6 acres CRP and 2.2 acres in CREP contract.  It is not owner operated and is part of a larger operation.  It has 100% qualifying soils.  While the property does not meet the minimum size criteria, it is contiguous to a MALPF preserved property.  It has a Soil Conservation Plan.

 

5.         05-06-05            Leishear, Donald L.                                       93.01 acres

 

This is a 93.01 acre parcel located in the community of Federalsburg.  There is no dwelling.  It has 71.6 cropland and 6.8 woodland acres.  The primary farming operation is vegetables and crops.  It has 100% qualifying soils.  The property has a Soil Conservation Plan.  It is owner operated and is part of a larger operation.

 

6.         05-06-06            Leishear, Donald L.                                       63.40 acres

 

This is a 63.40 acre parcel located in the community of Federalsburg.  There is no dwelling.  It has 61.7 cropland and 1.7 woodland acres.  The primary farming operation is vegetables and field crops.  It has 100% qualifying soils.  The property has a Soil Conservation Plan.  It is owner operated and is part of a larger operation.

 

Ms. Tammy Buckle, Program Administrator, was available to answer questions from the Board.

 

Ms. Schultz commented that Charles and Margaret Griffith property (05-06-04) has CRP acreage.  She wanted to know if the Foundation can assume that there is a rental agreement which means that we can purchase an easement on that property.  Ms. Buckle confirmed that it is a CRP rental.

 

Motion #11:       To approve the requests of Charles M. and Margaret A. Griffith, Brian J. and Penny L. Smith, and Donald L. Leishear to establish agricultural land preservation districts on their respective properties.

 

Motion:             Joe Tassone                  Second:            Pat Langenfelder

Status:              Approved

 

 

Mr. Colhoun asked Mr. Conrad to brief the Board about the activities of MALPF staff on the statewide MALPF funding meetings.

 

Mr. Conrad stated that the Foundation had a number of Board members accompanying MALPF staff for these meetings and appreciated their participation.  Ms. Schultz just recently visited Garrett County with Ms. Council and Mr. Conrad.  They stayed overnight and attended Garrett and Washington County Commissioner meetings.

 

Mr. Conrad commented that the meetings were very dynamic.  In some counties the MALPF staff made presentations to Farm Bureau or Soil Conservation group.  He appreciated everyone’s efforts.  He also stated that he looks forward to hearing any comments if the visits had helped in generating more applications in the county.

 

Mr. Colhoun encouraged the program administrators to give feedback about the meetings and wanted to know if they have a feel of the impact or if they want the Board to do anything more.  Mr. Conrad requested program administrators to forward any news articles published in the local paper as a result of these meetings.

 

Ms. Council stated that Mr. Tom Lawton of Somerset County had given her a call.  Mr. Conrad and Ms. Council had gone to Somerset County, and around 40 landowners had come for the meeting.  It was very impressive because Somerset County does not have lot of activity in the program.  Mr. Lawton had called Ms. Council and stated that he now has more work than he can handle.  Mr. Conrad shared with the Board members that, in some counties where there is not much activity, a lot of landowners turned up – for example, Prince George’s County, Somerset County, and Garrett County.

 

Ms. Pilchard commented that she had spoken to Ms. Katherine Munson, Program Administrator, Worcester County.  Ms. Pilchard was scheduled to attend the meeting with Ms. Council, but unfortunately could not make it as she was not well.  Ms. Munson had informed Ms. Pilchard that the County already has eight applicants.

 

Mr. Doug Wilson wanted to update the Board members about the conference committee report on the operating budget related to MALPF.  Around a month ago, Mr. Doug Wilson had briefed the Board members about the proposal to cut the bonds that were going to the Tri-County Council that support its three-pronged approach to the Tobacco conversion program.  This will not impact the buy-out or the infrastructure grants, but would affect the portion that is budgeted for assisting local governments in land preservation over $2 million.  These bonds were eliminated.  The General Assembly did that because it intended to cover those funds out of the MALPF budget, with the understanding that MALPF had so much money in FY 2007.  The intention was to take money off the top and give a direct grant to the Tri-County Council, which will in effect replace $2+ million cut from bond funding.  What this really means is that eighteen of MALPF’s jurisdictions are paying for the other five to run what is in effect a separate, though related, land preservation program.

 

When it went to the conference committee, the Senate approved the language taking MALPF money.  The House originally did not.  At the end of the day, the Senate’s position prevailed, and there will be a clause requiring MALPF Board to give a direct grant to Tri-County Council for FY 2007 amounting to over $2 million to use for land preservation activities.  That money will go into land preservation, but will be outside our normal formula.  Just because somebody stops growing tobacco, we still want them to stay in agriculture.  What we don’t want them to do is to grow houses.  One of the tenets of the whole conversion program is to retain as much land as they can in agriculture.  They want to augment the extra land preservation activities in Southern Maryland.  The Tri-County Council would give grants to five counties to use either in their own local program or to be used as matching funds or direct funds coming back to MALPF.  So this funding is leveraging more dollars in the end for Southern Maryland.  They also give bonuses to former tobacco farmers who took the buyout and who are coming into a land preservation program.

 

In the big picture, the funding is going for the same purposes as MALPF would use it.  What needs to be watched are future endeavors to tap into MALPF programs dollars for special needs.  Mr. Wilson is not aware of any formal opposition to the language that was in the operating budget from any of the jurisdictions.  This step has helped Tri-County Council to create more room in the state-wide bond budget which would allow legislators to give out more bonds for various local projects, especially in an election year when politicians are particularly concerned with funding special projects in their districts.  For MALPF, it will not have any impact until FY 2007 allocation.  It does not affect the current year’s allocation.

 

Mr. Colhoun wanted to know if the bill is attempting to take funds away from MALPF, or is there going to be additional funding authorized separately under the Agricultural Stewardship bill.

 

Mr. Doug Wilson believed all funding related to increased or new spending will be changed in the Agricultural Stewardship bill.  The amendments to the bill have changed the bill from being simply advisory on funding requirements to mandate funding commitments in certain areas.  The Agricultural Stewardship bill sets up voluntary Priority Preservation Areas by counties which would have the incentive of leveraging any new funding for MALPF, presumably from general funds.  So it does not directly affect MALPF’s current dollars.  There are other places in the Agricultural Stewardship bill where it says to the Governor, "you must fund certain programs in the government at certain levels."  Soil Conservation Districts and MARBIDCO are two such examples.  If the bill comes out that way with funding mandates, the Governor has to decide whether or not to sign a “mandated spending” bill, which means the Chief Executives have less say about how dollars are allocated in the budget.  Mr. Doug Wilson believed the bill will come out with mandatory spending requirements, and the Governor will have to decide if he will sign the bill, veto the bill, or let it pass without his signature.

 

Mr. Conrad stated that the proposed funding for MALPF, Priority Preservation Areas, the Installment Purchase Agreement Program, and the Critical Farms Program is included in the bill as a statement of intent, which means that it is up to the Governor and the General Assembly whether there is any available money for funding these programs out of the general funds or not.

 

Mr. Doug Wilson commented that the only other cut the Department of Agriculture sustained was that the Department lost about $1- 1.2 million in new cover crops funding.  The Department overall has still received an increase of about $3 million; the Department had proposed nearly $5 million.

 

The Agricultural Stewardship bill recommended a $3 million dollar increase in general funds increase over the Bay Restoration funds already in place, which are funds from the septic and sewer tax.  The Governor had put in a more aggressive program on Bay Restoration.  The legislature cut it back to $3 million.  In this case, we had the legislature cutting a program back.

 

There being no further business, Mr. Colhoun asked for a motion for adjournment of the meeting.

 

Motion #12:       To adjourn regular session.

 

Motion:             Joe Tassone                  Second:            James Pelura

Status:              Approved

 

The regular session of the Board meeting was adjourned at approximately 11:40 am.

 

 

Respectfully Submitted:

 

 

 

_________________________________

Rama Dilip, MALPF Secretary

 

 

 

_________________________________

James A. Conrad, Executive Director