MARYLAND AGRICULTURAL LAND PRESERVATION FOUNDATION

MINUTES

 

January 23, 2007

 

 

TRUSTEES PRESENT:

Daniel Colhoun, Chairman

Vera Mae Schultz, Vice Chairman

Pat Langenfelder

Judith C. Lynch

Dr. James Pelura

Robert F. Stahl, Jr.

Joe Tassone, representing Secretary Scott, Department of Planning

Christopher H. Wilson

Doug Wilson, representing Secretary Riley, Department of Agriculture

 

TRUSTEES ABSENT:

Howard S. Freedlander, representing Treasurer Kopp

Jerry Klasmeier, representing Comptroller Schaefer

Shirley W. Pilchard

 

OTHERS PRESENT:

Bill Amoss, Harford County, Program Administrator

Steven Basht, Landowner, Cecil County

Tammy Buckle, Caroline County, Program Administrator

Alan & Sarah Burkhard, Landowners, Cecil County

Bill Clark, District Manager, Calvert Soil Conservation District

James A. Conrad, MALPF Executive Director

Carol Council, MALPF Administrator

William Doane, Jr., Harford County, Program Assistant

Franklin Dill, Landowner, Kent County

Rama Dilip, MALPF Secretary

Barry Ebersole, Civil Engineer, Kent County

Nancy Forrester, Assistant Attorney General, Department of General Services

Mark Gredell, Gas Storage Engineer/Spectra, Representing Texas Eastern

Diane Hruska, Right of Way Representative, Representing Texas Eastern

John Kahl, Landowner, Garrett County

Carla Martin, Kent County, Program Administrator

Wayne L. Morris, Director, Kent County Department of Water and Wastewater Services

Barbara Polito, Anne Arundel County, Program Administrator

Charles Rice, Charles County, Program Administrator

Daniel Rosen, Planner, Maryland Department of Planning

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

Eric Shertz, Cecil County, Program Administrator

Donna K. Landis-Smith, Queen Anne's County, Program Administrator

Dr. Tien, Division Chief, Water Management Administration, Wastewater Permits Program, State Groundwater Discharge Permits Division, Maryland Department of the Environment

Elizabeth Weaver, MALPF Administrator

 

 

Daniel Colhoun, Chairman, called the meeting to order at approximately 9:10 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 MEETINGS

 

Motion #1:         To approve the minutes of December 12, 2006, with amendments.

 

Motion:             Pat Langenfelder                        Second:  Doug Wilson

Status:              Approved

 

B.         ADDITIONS OR DELETIONS OF AGENDA ITEMS:

                       

II.C                   Calvert County

04-86-05            Gott, Donald T.                          Withdrawn

 

IV.                    Program Policy

 

IV.C.                 Proposed Cooperative Agreement with                 Added

MARBIDCO (the Maryland Agricultural and Resource Based Industry Development Corporation)

 

V.                     Information and Discussion

 

Proposed Bill for the 2007 Legislative Session      Added

concerning MALPF Grants to Counties

 

Mr. Conrad stated that a brief Executive Session is scheduled at the end of the regular Board meeting and requested Board members to stay for a short time.

 

Doug Wilson, representing Secretary Riley, Department of Agriculture, circulated material highlighting the FY 2008 Budget of Maryland Department of Agriculture.  Mr. Doug Wilson commented that there are an additional $2 million the Administration has provided to change the MARBIDCO's budget from $1 million to $3 million.  $1 million are added to the funds MDA allocates to Soil Conservation District Operations.  There are 12 new positions in Soil Conservation and dollars are available to support those positions, primarily implementing and replacing positions lost over last seven or eight years.

 

MALPF funding has been affected by the current estimates of state transfer tax revenues.  Transfer tax revenues are going down.  Our allocations from the summer went from about $44 million to $30 million (a reduction of $14 million).

 

The agricultural transfer tax is estimated to bring in about $8 million this year.  Last year it was about $8.3 million, but current revenues are not tracking very well against the number from last year.  An amount of $18 million is estimated from matching funds.  For FY 2008 the overall budget for easements will be about $70 million ($44 million state transfer tax, $6 million for easements from agricultural transfer tax, $18 million from local government, and $2 million from federal).  $44 million in State funds include $13 million in "over-attainment funds" raised from FY 2006.  There wasn't discussion about moving that money to FY 2009 because the revenues continue to drop.  The new Administration was thinking about trying to flatten the curve from falling revenues.  However, in a press article Governor O'Malley has mentioned that he is not going to adjust the formula for funding land preservation programs.  So the Administration has decided not to adjust the formulas.  That gives MALPF $10 million or $14 million more dollars to fund FY 2008 easements.  The budget hearings at the Senate are in mid February, 2007.

 

James Conrad, Executive Director of the Foundation, informed the Board members that the regular Board meeting will continue to start at 09:00 am for the next few months.  MALPF Committee reports are being drafted, and the Board will need time to discuss these issues.  The plan is to have Board members review the first recommendations from the General Uses Committee in February, 2007, and vote on them in March, 2007.  The Equine Committee will be reviewed in March, 2007, and voted on in April, 2007.  Some time afterwards, Winery Uses Policy will be taken up, though Mr. Conrad expected some delay on that front.

 

Mr. Conrad informed the Board that the interviews for the new hire at MALPF are scheduled for the first week of February, and it is expected the new person to be in place by end of February, 2007.

 

Mr. Conrad reminded the program administrators that the Foundation needs to have the matching funds commitment by January 31, 2007, and ranking provided to MALPF staff.

 

The appraisals are available for three or four counties, and the remaining appraisals are expected shortly.  Once the land rentals report from the agricultural statistics staff is received, MALPF can start making offers in February or March, 2007, to the counties for which the appraisals are ready.

 

Mr. Conrad stated that MALPF office will soon be having a new copier that will help to produce the agenda more quickly.

 

Mr. Colhoun commented that he and Mr. Conrad would like to arrange visits to the counties similar to the past when we promoted the funding available.  He requested the administrators notify the MALPF staff about the local agricultural Board meeting schedules.  The Foundation would like to attend the meetings with one MALPF staff and, if possible, at least one Board member.  Mr. Colhoun believed this exchange is very helpful to all concerned and hoped the visits will commence as the legislative session winds down.  Mr. Conrad will soon be sending a communication on this.

 

 

       II.  DISTRICT /EASEMENT AMENDMENTS

 

A.         GARRETT COUNTY

 

1.         11-05-04      Kahl Farm, LLC                                                 147.54 acres

Request to allow the exercise of natural gas rights on property with a pending easement

                       

Kahl Farm, LLC, a family-owned limited liability company, is the original owner of the district.  The Foundation is ready to go to settlement on the easement, pending the outcome of this request.  The current request is to allow the exercise of the natural gas rights on the property.

 

Under most circumstances, the Foundation requires that an owner or lessees of mineral rights subordinate its interest to the interests of the Foundation for the sale of an easement.  However, legislation passed in the 2003 legislative session (HB 91, copy attached) provides that the Foundation "may not require, in Garrett County or Allegany County, a natural gas rights owner or lessee to subordinate its interests to the Foundation's interest if the Foundation determines that exercise of the natural gas rights will not interfere with an agricultural operation conducted on land in the agricultural district" (§ 2-509 (c) Annotated Code of Maryland).

 

Currently, the gas rights on the Kahl property are owned and operated by Texas Eastern Transmission LP ("Texas Eastern"), a subsidiary of Duke Energy Gas Transmission.  The property is part of the Accident underground natural gas storage field.  The storage field is a natural geological reservoir which is a depleted gas field.  The reservoir is sealed on top by impermeable cap rock.  The sandstone reservoir is approximately 7,000 feet deep.  Texas Eastern injects and withdraws natural gas from the reservoir.  The compressor station is located approximately four miles from the Kahl property.  The gas is injected into the wells over the summer months and withdrawn during the colder winter months to meet peak demands.

 

According to Garrett County's local advisory board, the exercise of the gas rights on the Kahl farm would have a very minimal impact on the farming practices and surface usage of the land because the Accident gas field is used primarily for the storage of natural gas.  The advisory board stated that the storage of gas "would have no impact on agricultural practices whatsoever."  The correspondence from John Nelson, Program Administrator, on behalf of the advisory board, stated that "even if a gas well was to be drilled on the Kahl property, it would be a temporary surface disturbance and after drilling is completed, the only surface impact would be a wellhead which would be no different than plowing around a tree stump."  The advisory board unanimously agreed that exercise of the gas rights would have no adverse impacts on the farming operation and recommended approval of the easement acquisition.

 

According to correspondence from Texas Eastern, the impact of the storage field on farming activity is minimal.  The letter states that "provided there is no deep chisel plowing or removal of cover, normal farming operations are not a concern."  Currently, there are two wells on the site.  While the company has no plans to construct a third well, it is possible that additional wells could be drilled in the future.  According to Texas Eastern, a typical well site is approximately 20' X 50' with a perimeter fence.  Farming along and over pipelines is restricted only during construction.

 

Foundation staff recommends approval because the request is consistent with statute which states that the Foundation may allow the exercise of natural gas rights when it does not interfere with an agricultural operation (§ 2-509 (c) Annotated Code of Maryland).  The Kahls run a beef cattle and hay operation.  The interference to the overall farm operation appears to be not significant.

 

Mark Gredell, Gas Storage Engineer, Spectra, and Diane Hruska, Right of Way Representative, Texas Eastern, were in attendance at the meeting to address questions from Board members.  Additionally, John Kahl, landowner of the property was also available at the meeting.

 

Mr. Kahl stated Texas Eastern operated the gas storage fields since 1962 and has co-existed well with agricultural operations.

 

Pat Langenfelder, Board member, stated that in the correspondence that was circulated to the Board members, it was mentioned that "provided there is no deep chisel plowing or removal of cover, normal farming operations are not a concern."  She understands that Mr. Kahl farms cattle and hay, and that involves normal plowing.  She asked about the reference to "deep chisel plowing".

 

Ms. Hruska stated that the farms with gas wells can grow corn or other kinds of normal crops.  Planting and growing large trees for sale may be a problem.

 

Mr. Gredell stated that the company has two wells on the Kahl Farms and located them on the map.

 

Mr. Conrad asked if there are any agricultural activities or practices in Garrett County that are impacted by the gas storage.  Ms. Hruska stated that she is not aware of any.  Most of the farms farm either hay or corn.

 

Judith Lynch, Board member, stated that at one place the agenda memo indicates "…the impact would be no different than plowing around a tree stump."  In the next paragraph it is mentioned that "a typical well site is approximately 20' x 50' with a perimeter fence."  The pamphlet circulated with the agenda item states that "….the State of Maryland requires a two hundred fifty (250) feet radius."  Ms. Lynch asked for clarification.

 

Ms. Hruska stated that what is mentioned in the pamphlet is the work load area.  Texas Eastern does not allow any permanent structure within the 250 foot radius in those instances.  This does not mean one cannot drill.  The farmers grow hay right up to it.

 

Mr. Colhoun asked if Texas Eastern predicted additional well heads to utilize the underground storage in the future.  Mr. Gredell stated that at this point in time they do not have any plans for additional well heads on the Kahl farms.

 

Mr. Tassone wanted to know about the reference made to the 20' x 50' area with a perimeter fence referred in the agenda memo.  Mr. Gredell believed the reference was misleading.  It does not indicate the perimeter fence around the area but refers to some other equipment.

 

Mr. Tassone commented that if the Foundation approves the request it will mean Texas Eastern will exercise its gas rights on the property.  He wanted to know the scope of the possible things that could be done on the property, with the right, for example, to put in another well.

 

Mr. Gredell commented that another well is a possibility, but it is a very low probability.

 

Mr. Doug Wilson commented that the whole issue is about the subordination of Texas Eastern's rights.  The Foundation spent years working out this particular piece of legislation that gives the Foundation statutory authority.  On the overlay easements, the Foundation has control over what the easement holders can do or cannot do.  In Western Maryland, in this particular region, many of the farms already have well heads, and the companies will not give up their rights.  The statute allows the Foundation to purchase easements without requiring subordination.  The real issue is how it impacts the farm.  The difference between the natural gas in this instance and oil fields, for instance, is that you don't see these things every 20 feet.  He stated that he believes it is legitimate for the MALPF Board to ascertain what the company's control means to the farm.

 

Mr. Colhoun asked Nancy Forrester, Assistant Attorney General, Department of General Services, as to whether the owner of the property needs to come back to the Foundation at a future date to request more well heads or additional commercial activity or does the Foundation need to give that away.

 

Ms. Forrester stated that the energy company clearly has the right to come and do anything that is permitted under its lease.  If it needs to put in 20 well heads, it can do so, though this may not happen.  The legislature has given the authority to the MALPF Board to allow it.  Ms. Forrester wanted to know if an existing well could be returned to agriculture.

 

Mr. Gredell commented that it is possible and stated that it is not likely to have 20 more well heads.

 

Mrs. Schultz, Vice Chairman, wanted to know the ramifications, and also if it is possible to exclude the acreage from the easement.

 

Mr. Doug Wilson commented that there is no reason to do that.  He stated that what we are talking about is a tenth of an acre.  Unless the Foundation excludes all the pipelines, just excluding the acreage around the well head does not make sense.  In the past, the Foundation submitted this issue to the General Assembly.  In this particular region of the State, subordination was a major impediment to the farmers' participation in our program.  Many of the farmers had wells on their property for decades, but could not participate in the MALPF program because of the subordination issue.  The General Assembly decided to take that requirement out and said it was okay to let the farmers not subordinate with this particular utility because of the way it operates.  The General Assembly has given the Foundation a lot of freedom, and clearly if the energy utility started changing the way the dynamics worked, the Foundation could approach the General Assembly and request that the provision be removed.

 

Robert Stahl, Board member, wanted to know how many cubic feet of storage is possible.  Mr. Gredell estimated the storage capacity to be approximately 15.3 million cubic feet.

 

Mr. Stahl wanted to know if the pipelines are currently in place to provide for future demands, or if the possibility exists of adding several more natural gas pipelines into the region.

 

Mr. Gredell stated that there might be a need to redesign, and in some cases, there might be a need to replace a pipeline.  Other than that, he did not foresee adding more pipelines.  If there is an increase in demand in winter months, they will drill larger wells on the second site or increase the size of the pipeline on the already existing right of way.

 

Mr. Stahl asked if it is cheaper to drill a new well or re-bore an existing pipeline.  Mr. Gredell stated that it is cheaper to re-bore an existing pipeline.

 

Mr. Colhoun commented that it is obvious Mr. Kahl wants to preserve his farm for agricultural purposes.  He asked Mr. Kahl if he farms the land or rents it out.

 

Mr. Kahl stated that he is not a hi-tech farmer.  The farm is operated by his family.  They farm cattle, hay, etc.  His great-grandparents bought the farm in 1895.  They also plan to timber part of the farm, and in a couple of years they will be ready to harvest one section of it.  Mr. Kahl's family also plans to plant more crops.

 

Mr. Colhoun wanted to know, at some point in time, if the gas company decides it needs additional wells, if the decision is Mr. Kahl's or if the decision is controlled by the gas company.

 

Mr. Kahl stated that in the end, it is the decision of the gas company.  The gas company has been very good to work with and has accommodated the farming of the property.

 

Mr. Doug Wilson added that the gas company owns the right to put in what they feel is necessary for the operation. MALPF offers the landowner an easement, and it is subordinate in this situation to the interests of the gas company. The General Assembly has given the authority to MALPF to do so, as long as the Board review indicates that, in the big picture, the farming could proceed. MALPF still restricts development on the farm.  Obviously, the farmer cannot have 47 housing units on the farm and so on.

 

Chris Wilson, Board member, asked if there is any financial incentive for the farmer.

 

Ms. Hruska commented that there is no financial incentive, but a small check for a fixed amount is given to the farmer every year for rental of the storage provided.  No royalties are paid.  The reason the farmer is paid a rental is because the gas company owned the mineral rights at the time of purchase.  When the gas agency buys the production fields, they also buy the mineral rights, but still pay them a storage rental fee.

 

Mr. Tassone commented that he understands that probably what the gas company has to do for its purposes is not likely to interfere with the agricultural use of the land, and the interest of MALPF is not compromised.  However, he was concerned about the subordination issue, and he wanted to determine if there was anything MALPF could do to retain control over what the gas company could do.

 

Mr. Doug Wilson stated that this is the reason the General Assembly gave MALPF the authority and allowed MALPF to monitor the situation.  The State may very well invest some money in some properties which did not turn out to be a good deal at the end of the day.  If the situation got out of hand, MALPF could go back to the General Assembly and let it know that it is not working out the way it was originally envisioned, and request a re-review.

 

Mr. Stahl added that this is a regulated industry, through Maryland Department of the Environment, under mining.  Ultimately, the State controls the activity, and this is not an unregulated situation.

 

Elizabeth Weaver, MALPF staff, commented that Texas Eastern was not required to come to the Board meeting because it already has the right to do whatever it wants on the property.  The representatives are present because they want to support the preservation of the farm because it's in the company's best interest.  The company has an incentive to foster a good relationship with the Foundation because it wants to keep these farms in agriculture.  It would like to see more farms in the area enter the MALPF program.

 

Motion #2:         To approve the request of Kahl Farm, LLC, to allow the exercise of natural gas rights on property with pending easement.

 

Motion:             Chris Wilson                              Second:  James Pelura

Abstained:         Joe Tassone

Status:              Approved

 

Mr. Tassone read from HB 91.  "Subordinate its interest to the Foundation's interests if the Foundation determines that exercise of the natural gas rights will not interfere with an agricultural operation conducted on land in the agricultural district."  Mr. Tassone stated that he believes this requires limits, and he did not see the reason as to why the Foundation could not come up with something other than totally subordinating the Foundation's interests.

 

Mr. Doug Wilson stated that he remembered the discussions that took place on this issue ten years ago.  When the issue of limitations was brought up, the utility said that it could not tell the Foundation what would and would not be done in x number of years in the future.  Therefore it would not agree to subordinate its control.  The agricultural community came to the General Assembly and asked it to intervene because the landowners who have leased gas rights on their properties are precluded from entering our program.  The utility will not subordinate any of its operating interests which is why the legislation was passed.  Mr. Doug Wilson reiterated that the General Assembly's intent was to allow the subordination to occur and, if it starts to get out of hand, the Foundation will go back to the General Assembly and let it know that it is not working.

 

Mr. Conrad commented that last year he had visited Garrett County along with Mrs. Schultz and Ms. Council.  There was a growing interest in Garrett County for participation in the MALPF program.  On January 22, Mr. Conrad stated that he again had the opportunity to speak to a gentleman whose property was adjacent to the Kahl property in Garrett County, who is now representing the area in the General Assembly.  There is still a very strong perception that Garrett County properties don't work with the MALPF program.  The gentleman's father's property in Garrett County was turned down for an easement, and he is still upset about it ten years after its occurrence.  Last year when Mr. Conrad visited the County he explained the law to the landowners and the reason why it exists.  The people who were present at the meeting were pleased because they were also under the perception that it was an unresolvable problem.  Mr. Conrad stated that he believed in, and agreed with, the intent of the legislation.

 

Mr. Kahl commented that the land prices are increasing in Garrett County because of Deep Creek Lake.  He has several relatives with family farms in the area, and realtors are buying properties and developing them.  There are many family farms where the children are leaving the farms.  He stated that he believes MALPF is an excellent program to help keep those farms in the family.

 

Mr. Colhoun asked Ms. Forrester if there is any room for having conditions placed on the approval.

 

Ms. Forrester stated that the request is for approval.  The energy company is present at the meeting to cooperate, but it is not going to give up the rights granted under the terms of the lease.  She did not believe it is going to put 20 wells on the property.

 

Mr. Tassone said that he was not involved in the deliberations and drafting the piece of legislation, so he did not know the full scope of what was possible.

 

Answering a question related to past well activity on the property, Ms. Hruska stated that well #1 was installed in 1965.  Well #2 was put installed in 2006.  She did not foresee the chances of 20 additional wells on the property.

 

Mr. Gredell also added that it is customary for the Federal Energy Regulatory Commission to regulate the activity.  If any additional wells need to be placed on the property, there is a long process to apply for approval.  There is a very clear regulatory process that Texas Eastern must follow.

 

B.         KENT COUNTY

 

1.         14-86-03            Dill, Franklin M.                                         194.626 acres

Request to allow wastewater spray irrigation on easement property

 

Mr. Dill is the original grantor of the easement.  The current request is for approval to allow the application of treated wastewater from Worton's wastewater treatment plant.

 

The Foundation approved a policy on wastewater spray irrigation (Attachment A) on October 22, 2002.  In August, 2003, the Foundation approved a similar request from the Town of Cecilton, which was the first request brought to the Foundation since the policy was approved.  The minutes from that meeting are attached with staff memo (Attachment B).

 

MALPF staff coordinated with Maryland Department of the Environment (MDE), Maryland Department of Planning (MDP), and Kent County to ensure that all the conditions of the policy have been met.  (Note:  Worton is not an incorporated town and therefore does not have a separate municipal administration.)

 

Kent County is currently in negotiation with Mr. Dill to use his property for the application of treated wastewater on his farm.  The spray area will cover 81.14 acres.  A daily average of 125,000 gallons (based on annual flow rate data) of treated effluent from the Worton wastewater treatment plant will be sprayed on the fields.  The maximum rate will be 250,000 gallons per day (based on annual flow rate data).

 

Engineers from Kent County's Department of Water and Wastewater Services have designed an irrigation system in consultation with MDE, a Soil Conservation representative, and a representative of the State's Nutrient Management Program, which calibrates the irrigation rates to correspond with the optimal needs of the crops.  The size of the irrigation area is dependent upon the soil characteristics and the crop management plan.

 

Kent County proposes locating the storage lagoon on the easement property.  (The Cecilton project located the storage lagoon on a property adjacent to the MALPF easement property.)  The water will be pumped from the storage lagoon.  The lagoon will store treated effluent during times when weather conditions make it unfeasible to spray the wastewater.  A survey of the lagoon site has yet to be completed.  The proposed lagoon will have a useable volume of approximately 2,000,000 gallons of treated wastewater.  The surface area of the lagoon will be approximately 2 acres.  The depth will vary depending on the topography of the lagoon site.  Kent County estimates that the lagoon depth will vary from 3 to 6 feet when the lagoon is full.  The lagoon berm will be constructed of suitable native soils with a bentonite mat liner to limit the permeability of the berm and bottom.  The lagoon will be constructed with an underdrain to maintain the groundwater level under the lagoon to below the elevation of the bottom of the lagoon.  According to Kent County, the construction of the lagoon will require the same earth moving equipment used to build a typical farm pond and will not interfere with the agricultural operation.  The construction equipment and material will not cross any tillable fields.

 

MDE requires a minimum buffer zone of 200 feet between the wetted perimeter of spray irrigation areas and property lines, waterways, roads, etc.  The buffer area is the unwetted area around the perimeter of the spray area that separates the spray area from surrounding uses.  However, there are no limitations on crops grown in the buffer area.  Additionally, MDE requires a reserve area that is suitable for application of wastewater that is held in reserve should a problem develop on a portion of the initial 81.14-acre spray area.  Wastewater will not be applied to the reserve area unless a problem develops in the initial 81.14 acres.  Should a problem occur, wastewater will be applied to an acre of the reserve area for each acre taken out of the initial wastewater application area.

 

In a letter to the Foundation (Attachment C), Mr. Dill states that the application of the wastewater will increase the productivity of the land.  Mr. Dill wanted to install an irrigation system (standard, non-waste water) when he acquired the property in 1983; however, tests revealed that the aquifers are incapable of producing the required quantity of water.  Mr. Dill's letter states that he will be restricted from growing vegetables.  However, Foundation staff's research indicated that the spraying of the wastewater will prohibit growing crops that are not processed prior to human consumption.  Mr. Dill currently grows corn, wheat and soybeans on the farm, which he can continue to grow after the application of wastewater.

 

Dr. Tien, Division Chief, Water Management Administration, Wastewater Permits Program, State Groundwater Discharge Permits Division, Maryland Department of the Environment (MDE), has analyzed the results of the test of the town's treated wastewater for the presence of heavy metals or other elements that could have a negative impact on the soil.  Dr. Tien found that the application of the wastewater will not have a long term negative impact on the soils of the property (Attachment D).  However, Dr. Tien recommended that the sodium concentration in the treated wastewater be reduced to less than 69 mg. of sodium per liter of water to reduce the specific ion toxicity to field crops.  Dr. Tien further recommended that any future industrial discharge to the system should be reported to the Foundation and an impact analysis completed prior to acceptance of the industrial wastewater.  (Currently, there is no industrial discharge to the wastewater system.)

 

Maryland Department of Planning (MDP) has reviewed the application and determined that the Worton request will not promote development in a way that is inconsistent with the State's Smart Growth objectives.  In correspondence to the Foundation, MDP states that the Department's research shows that the Worton Sewerage Service Area, existing and planned, lies entirely within a Kent County Priority Funding Area (PFA).  Therefore MDP supports the proposed wastewater spray irrigation project because it will support growth in the PFA (Attachment E).

 

Kent County is in the process of updating its water and sewer plan to include the Worton upgrade.  The request will be reviewed by the local agricultural advisory board on January 22.  The advisory board's recommendation will be available at the MALPF Board meeting.  The request is in compliance with local zoning regulations because the application of wastewater is considered a normal agricultural activity.

 

Foundation staff finds that, with the exception of the location of the lagoon on the easement property, the request conforms to the Foundation's policy.  (Note:  The application form and relevant maps, etc. can be found under Attachment F.)  The Foundation does not have a precedent for location of a wastewater storage lagoon on the property.  Staff recommends that the Board of Trustees assign the request to a policy committee for resolution because the Wastewater Spray Irrigation Committee did not consider the issue of lagoons during the development of the policy.  The original request (Cecilton) did not include a lagoon.  Should the Foundation approve the request, approval should be contingent upon the following:

 

1.       MALPF shall be a party to the agreement between the landowner and the County.

 

2.       Any future industrial discharge to the system shall be reported to the Foundation and an impact analysis completed prior to acceptance of the industrial wastewater.

 

3.       The sodium concentration in the treated wastewater shall be reduced to less than 69 mg of sodium per liter of water to reduce the specific ion toxicity to field crops.

 

4.       If it becomes necessary to use the reserve area, Kent County shall consult with MALPF staff to determine the most suitable revised configuration.  MALPF staff shall determine if it is necessary to bring the request back to the Foundation's Board for review.

 

5.       The agreement shall have a provision for renewal as part of the MDE permitting process, which is conducted every five years.  The renewal will be reviewed by MALPF staff.  Any modifications to the agreement must be agreed to by the Board of Trustees.  Should the County or the landowner be found to be in breach of the agreement, MALPF may terminate the agreement.

 

6.       A statement in the agreement which addresses repair of any damage to the soils as a result of an accident or malfunction or other circumstances related to the application of the wastewater.

 

7.       A statement in the agreement that the application of the wastewater shall be conducted in such a manner as to prevent bodily injury or endangerment to human health.

 

8.       Adoption of a Water and Sewer Plan by Kent County that includes the updated Worton wastewater spray irrigation project.

 

Franklin Dill, landowner, Dr. Tien, Division Chief, Water Management Administration, Wastewater Permits Program, State Groundwater Discharge Permits Division, Maryland Department of the Environment, Wayne Morris, Director, Kent County Department of Water and Wastewater Services, Barry Ebersole, Civil Engineer, Kent County, and Carla Martin, Kent County Program Administrator, were available at the Board meeting to answer questions from the Board.

 

Ms. Martin stated that the Kent County Agricultural Land Preservation Advisory Board reviewed the application of Franklin Dill and recommended approval by the Board of Trustees.  The Board based its decision on the following:

 

1.       It is a good opportunity for Mr. Dill because he cannot utilize a traditional irrigation system.

2.       The proposed lagoon does not take away productive land and will not interfere with the operation of the farm.

3.       It will allow growth to occur in a designated growth area where the County would like to see future development.

4.       It helps promote agricultural production.

 

Mr. Dill stated that he always wanted to put irrigation on the farm.  He even tried using the stream or building a pond.  The fields get dry.  There are several farms in Kent County that pump water out of a stream, but he did not have enough water for that.  When Mr. Dill was approached by the County he got interested in the issue.

 

Mr. Dill handed out photographs of his farm to the Board members.

 

Mr. Colhoun stated that from the aerials and photographs provided he saw where the existing pond is, and believed the new storage area would be built in the area that is just downstream from the dam.  They would then need to clear some of the trees to accommodate the lagoon.  Mr. Dill confirmed that Mr. Colhoun was correct.  Mr. Dill stated that he wanted to provide illustrations because he wanted to make sure that everybody could see the exact area.

 

Mr. Stahl asked about the type of irrigation that would be used on the farm.  Mr. Ebersole stated that they are meeting with the irrigation people in the forthcoming week to work out the details.

 

Mr. Stahl asked if it is possible for the lagoon to be excluded from the easement property.

 

Mr. Doug Wilson stated that the MALPF Board approved, as a general agricultural practice, the use of wastewater spray irrigation.  If we remove the concept of wastewater, and if the farmer wanted to use a farm pond in the course of his operations, the Foundation will be fine with it.  We would not get into it at all.  The reason it is called a lagoon is because of the wastewater issue, but it is being used for irrigation.  Mr. Wilson believes the Foundation should treat it as an agricultural operation for holding the water for pressure, etc.  He did not see on what basis the Foundation would exclude two acres from the easement.  The Foundation would never exclude any other pond operation.  Mr. Wilson did not feel the request was any different from any other request to provide normal irrigation on a farm.  It was recognized as an acceptable practice by Maryland Department of the Environment and Maryland Department of Planning.  That is the reason the MALPF Board approved the policy as an acceptable practice.

 

Mr. Stahl asked, if it were sludge, would Mr. Doug Wilson feel the same way.  Mr. Wilson stated that the Foundation allows farmers to apply sludge on their farms.  The Foundation allows the farmers to store any number of other manures on their farms.

 

Mr. Stahl stated that he believes that this is not farm-generated wastewater, or a farm-generated situation.  This is wastewater generated in the priority funding area.  Using the water for irrigation is clearly an agricultural use.  However, storage of such water is different.  Mr. Stahl stated that, although he understands the rationale for having capacity issues for the irrigation, he is concerned that, while it benefits the agricultural site, it also benefits the ability to store wastewater during times when you cannot spray, for example in a very rainy weather.

 

Mr. Colhoun reminded the Board members that the MALPF Board has already agreed with the principle of allowing wastewater spray irrigation on MALPF land.  Unless the Board wants to reverse its decision, he did not see the reason for further discussions on the principle.  He does not want to take a lot of time dwelling on that issue.  He stated that he believed the real issue is about the storage area for this operation.

 

Mr. Conrad commented that there is no legal mechanism to exclude land from an easement property once an easement is placed on the property.

 

Mr. Doug Wilson commented that, if Mr. Dill had a stream next to him and if he wanted to pump water into a pond and use it as needed, the Board would not even be discussing the issue.  Mr. Dill found a place as a resource and he is using it for the agricultural operation.  The reason Mr. Dill is storing it is to have the capacity to pump water onto his farm as there is no other way to do it.

 

Mr. Colhoun wanted to ask the opinion of the technical experts present at the meeting as to why they felt it necessary to have the storage facility on the farm rather than at some other place which is not in agricultural use or under an easement.

 

Mr. Morris stated that, although it is called a storage lagoon, it is actually a reservoir for the irrigation system.  When they first discussed it they realized there has to be some type of device to provide pressure for irrigation.  From the beginning of the project, they included Mr. Dill in the project and worked together through the various scenarios.  It is an agricultural use, and it would be used for the existing agricultural farm.

 

Mr. Colhoun asked whether Mr. Dill would be irrigating through the dry periods because Mr. Morris is calling it a reservoir.  Mr. Morris stated that he would.  Mr. Colhoun asked Ms. Langenfelder if she wanted to provide comments regarding her visit to the farm.

 

Ms. Langenfelder stated that she did apprise Mr. Dill that allowing storage on the farm might be an issue.  She added that Mr. Dill's site for the lagoon seemed perfect to her because it is not used for agriculture.  They are preparing to divert the water away from the proposed lagoon.  The County does not have enough water underground in that area for irrigation.  What Mr. Dill is trying to achieve will enhance his operation.  Ms. Langenfelder understands that the Board may have a problem in allowing a reservoir, but the Foundation does have farms bringing chicken manure onto MALPF property.  That is also storage of something produced somewhere else.

 

Mr. Conrad asked Mr. Dill if on-site storage as compared to off-site storage would make a difference in the flexibility that would be available to Mr. Dill.  Mr. Dill stated that he believed that an on-site storage facility would provide more flexibility.

 

Mr. Stahl stated that he was concerned about the long term precedent issue.  There might be issues when a request comes up for sludge.

 

Mr. Colhoun wanted to know about the location of the pipeline.  He wanted to know if there are other areas along the pipeline route that can act as reservoirs.  He understands that they are trying to have a volume of water within a reasonable distance from where it is going to be used.  Mr. Colhoun wanted to know if there is an opportunity to store somewhere else along the pipeline and achieve the same purpose in the end.

 

Mr. Ebersole commented that there is a storage facility already existing at the plant.  He located it on the map.  As they were developing the design of this project, they were thinking that they could transfer thousands of gallons at high pressure the whole way or they could transfer over 24 hours a day small volumes at pressure uninterrupted off-site.  What they are looking at currently is a kind of buffer.

 

Mr. Colhoun asked about the capacity and if, for their purposes, two acres of storage is necessary versus a smaller amount.  Mr. Ebersole responded that they worked on designing the site before they came up with a number.  The number is somewhere between one and two million gallons.  They took an operational number that provides flexibility to them on the treatment side.

 

Mr. Stahl stated that he was concerned how the MALPF Board could reasonably turn someone down without having a criterion.  He wondered what will happen if the next person from a similar situation comes to the Foundation with a request to spray irrigation sludge.

 

Mr. Tassone commented that the rationale for a storage lagoon is for it to operate as a reservoir.  It would provide water when it is not otherwise available, allowing the landowner to irrigate at will.  Mr. Tassone wondered if it would be a good idea to approve the request with an explicit recognition that there has to be a legitimate purpose for a lagoon.

 

Mr. Colhoun reminded the Board members about the recommendation from the MALPF staff.  MALPF staff has recommended that the Board of Trustees assign the request to a policy committee for resolution because the Wastewater Spray Irrigation Committee did not consider the issue of lagoons during the development of the policy.  Mr. Colhoun asked Ms. Weaver if she would like to offer any comments on the agenda item as she had worked on the item.

 

Ms. Weaver stated that, as she had mentioned in the memo and as pointed out by Mr. Stahl, the Board would be setting a precedent if it approves the request and should therefore be cautious.

 

Mr. Colhoun stated that he believed the committee should be formed quickly and should attempt to answer all the questions including the question of setting up a precedent.  The committee can come back to the Board, and the Board would feel more comfortable in making a decision.

 

Ms. Martin stated that the Kent County local advisory board did consider the question of setting a precedent.  Ms. Martin reiterated that the area where the reservoir is to be located is an area where Mr. Dill cannot till.  It is not productive, and the local board felt that, since it is not taking land out of production, the request was acceptable.  It would have been a very different opinion if the reservoir was put up in a farmable field.

 

Chris Wilson, Board member, was concerned about the nutrients available in the wastewater.  Mr. Morris stated that the nutrient plan will treat the wastewater to ensure the quality of water on Mr. Dill's farm is as required by MDE's regulations and MALPF's requirements under its policy.  Mr. Morris stated that most of the nutrients will be taken out during the treatment process.

 

Mr. Wilson stated that most of the nutrients will be beneficial to the soil, such as nitrogen and phosphorous, but there will also be nutrients like sodium and iron, which are not.  Mr. Wilson wanted to know if the sodium and iron will be treated.

 

Dr. Tien stated that sodium and iron are in high concentrations before being treated.  They will be required to be lowered to an acceptable level to where they would not harm the soil.

 

Mr. Conrad stated that, after listening to all the practices that are adopted (lagoon, irrigation systems etc.), he wanted to know who derives the benefit from having the pond storage on site?  Does it result in more flexibility by the landowner in deciding when to irrigate, or does it result in more flexibility to the county in when to pump wastewater to the pond?  Who controls the withdrawals?

 

Mr. Ebersole stated that they are negotiating the contract.

 

Mr. Conrad wanted to know if there are access issues, if it is explicit as to how they will come on and off the property.  Mr. Ebersole stated that the access will be maintained through the road that already exists on the property.

 

Mr. Colhoun commented that he understands that there are some particles, maybe 10% or so, which will percolate to the bottom.  He wanted to know if there is some arrangement to deal with silting.  Although there is a high amount of liquid, over a period of time there is settlement that takes up storage over a period of time.  There will be a need for maintenance.

 

Mr. Ebersole commented that it has not been addressed.  He believes the amount of solids being put into the lagoon are a bare minimum.

 

Mrs. Schultz wanted to know, if the Board accepts the staff's recommendation to assign the request to a policy committee for resolution, if it will affect the time table.

 

Mr. Dill commented that he would like to have the facility available as early as possible.  Mr. Morris commented that they will advertise and coordinate all the plans, and the goal is to have the plans in place by September, 2007.

 

James Pelura, Board member, commented that irrigation is an agricultural process.  He wanted to know if there are any restrictions on what is possible.  He wanted to know if the water is potable.

 

Mr. Morris commented that some people say that they would drink it, but that he wouldn't drink it.

 

Mrs. Schultz stated that, considering that the request is a potential precedent, she would move to accept staff's recommendation to pass the request to a policy committee to study.

 

Motion #3:         To approve the request of the staff to assign the request to a policy committee for resolution.

 

Motion:             Vera Mae Schultz                      Second:  Robert Stahl

Opposed:          James Pelura, Pat Langenfelder

Status:              Approved

 

Ms. Langenfelder wanted to know if there would be a time frame for the committee to review the request and recommendations.

 

Mr. Colhoun stated that he would like to have the review immediately.  The committee should review the status and report back at the next Board meeting.

 

D.         CECIL COUNTY

 

1.         07-93-01e          Burkhard, Alan and Sarah                          124.684 acres

Request to relocate a pre-existing dwelling on easement property

 

Mr. and Mrs. Burkhard are the subsequent owners of the easement property.  There have been no requests for lot exclusions.  The property has two pre-existing dwellings.  The current request is to relocate one of the two pre-existing dwellings.

 

According to the landowners' attorney, one of the two pre-existing dwellings is an apartment that is located above a barn.  The landowners have used this apartment as a tenant house to serve their thoroughbred horse operation.  The property consists of two separate parcels of record, Parcel 25 which contains the two pre-existing dwellings (main house and apartment), and Parcel 116 which currently has no dwellings.  This request proposes to remove the apartment from Parcel 25 and construct the new, replacement dwelling on Parcel 116.  The proposed relocation area is cropland (not currently being farmed) and is located in an area that will be bordered on three sides by woods, a crop field, and a pond.  Access will be via an existing 11' wide access lane.

 

According to Cecil County, the existing dwelling (apartment) will be torn out, and the building permit for the new dwelling will not be issued until demolition has been completed.  The local advisory board has approved the request as the location of the proposed relocated dwelling is not currently in production and interference to the overall farm operation will be minimal.

 

Foundation staff wishes to point out the following.  1) It appears that the landowners are preparing to convey these two parcels separately; each with a dwelling.  If so, the landowners must seek approval from the Foundation for an agricultural subdivision prior to conveyance.  2) Although the plat indicates a "proposed 1.0 acre exemption" surrounding the proposed relocated pre-existing dwelling, the landowners are not currently asking to exclude the 1.0 acre.  3) Relocation of a pre-existing dwelling usually requires demolition and removal of the existing structure.  In this case, the barn will remain standing and only the area currently used as an apartment will be altered so that it cannot be inhabited in the future.

 

In conforming to the Foundation's Lot Location Policy, the physical location of the relocated lot should be (in priority order from most to least desirable):

 

1.       Along public roadway and (if they exist) clustered with other dwellings;

2.       Along boundary lines, natural boundaries, or the edge of tillable land, and clustered with other dwellings (if they exist);

3.       Clustered with farmstead dwellings and buildings; and/or

4.       Other.

 

From the aerial that was provided, it appears the lot meets the policy guideline #2, because it will be located along a natural boundary (woodsline) and on the edge of tillable land.

 

Foundation staff recommends approval with the condition that the original dwelling be removed by a method that is acceptable to the Foundation within 180 days from the issuance of a use and occupancy permit for the replacement dwelling.

 

If the Foundation approves the request, Mr. and Mrs. Burkhard must enter into a written agreement with the Foundation (copy attached with staff memo), to be recorded among the county land records, describing the terms and conditions of the Foundation's approval.  The agreement will run with the land and bind all future landowners.

 

Mr. and Mrs. Burkhard and Eric Shertz, Program Administrator, were available at the meeting to answer questions from the Board members.

 

Mr. Burkhard stated that, in late 1990s when they invested in the property, they had a goal of horse farming.  He was involved with race horses.  A couple of years later he had health issues which lead to several surgeries.  Mr. Burkhard and his wife decided to downsize the farm.  Their home has several stories and lots of stairways.  When the property was sold to them, it was two separate parcels that were combined.  The price of parcel 116 was significant enough that Mr. Burkhard assumed that the value would allow him to build on it.  They also received several offers to buy that particular lot.  This was the time they contacted Mr. Shertz.

 

Mr. Burkhard stated that he has no problem in signing the agreement, and his daughter can stay somewhere else.  The relocated lot is right along the woodland.  The house will be built in front of the woods.  There is a pond.  Mr. Burkhard stated that lot 116 has its own entrance, and the Burkhards are using an existing lane.  Mr. Burkhard believed his request meets with most of the Foundation's policy.

 

Mr. Doug Wilson stated that when the Foundation originally purchased the easement, the details indicate that the property had two pre-existing dwellings.  The staff report describes one of them as an apartment in a barn.  The County calls it a tenant house.  MALPF's original easement states that there were two pre-existing dwellings, and the appraisals probably dealt with this barn/apartment as a pre-existing dwelling.  Mr. Doug Wilson believed that there are two issues:  the landowner is asking for the relocation of a pre-existing dwelling and, then, the non-demolition of the barn.  Mr. Doug Wilson wanted to know, when the landowner moves to a new place, will the property with a house that Mr. Burkhard will be building be sub-dividable from the farm property?

 

Mr. Shertz confirmed this and stated that the County recognizes parcel 116 as a building lot; it is already approved for subdivision.

 

Mr. Doug Wilson stated that the Foundation will have the same number of pre-existing dwellings.  The landowner will have two independent parcels which could be subdivided for agricultural purposes if the landowners came back and requested for it.  The Foundation will have a farm that has a dwelling on it and that cannot be subdivided.  Mr. Doug Wilson suggested making a conditional motion to that effect.  The Foundation will make sure that the landowners do not have another tenant operation even if it was eligible for a tenant house.  Under the Foundation's policy for tenant houses the Foundation would prefer Mr. Burkhard to go back and use a loft in the barn than to build another structure.

 

Mr. Shertz added that the County favors a lot with a minimum of 100 acres and, therefore, the County will not allow it.

 

Mr. Colhoun wanted to have Ms. Forrester's opinion about Mr. Doug Wilson's recommendation on having a conditional approval.

 

Ms. Forrester suggested mentioning that the relocated house not be sub-dividable and that this provision needed to be added to the standard agreement.  The two parcels are of same size and are approximately 62.5 each.

 

Motion #4:         To approve the request of Alan and Sarah Burkhard to relocate a pre-existing dwelling on easement property with a condition that Foundation amends the standard approval to require the landowner to agree not to subdivide the house from the farm parcel.

 

Motion:             Doug Wilson                              Second:  Judith Lynch

Status:              Approved

 

Mr. Burkhard wanted a clarification of the motion.

 

Mr. Doug Wilson stated that let's assume Mr. Burkhard goes back to the County and builds a house.  Typically in a pre-existing dwelling, Foundation allows an acre around all pre-existing dwellings to be excluded from the easement because the easement is on the farmland, not the dwelling.  Landowners who have a pre-existing dwelling have the right to subdivide that 1.0 acre from the farm to sell it to someone else.  Cecil County regulations will not allow the landowner to do that.  However the County can change that regulation in the future.  The Foundation constantly has problems with farm parcels that get subdivided.  Then people want to buy the farm, and they cannot live on the farm because the house was sold separately leaving no dwelling with the farming parcel.  The Foundation likes the idea of people living on their farms, but at the same time the Foundation does not want people to build more houses.

 

Motion #4a:       To approve the request of Alan and Sarah Burkhard to relocate a pre-existing dwelling on easement property with a condition that Foundation amends the standard approval to require the landowner to agree not to subdivide the house from the farm parcel.  The landowner agrees to restore the barn to be only a barn.  The conditions outlined in the staff report about the conversion of apartment into barn must be complied with.

 

Motion:             Doug Wilson                              Second:  Joe Tassone

Status:              Approved

 

2.         07-86-02es        Basht, Steven and Sabrina                             50.00 acres

Request to swap 1.5 acre of easement property for 1.5 acre of non-easement property

 

Mr. and Mrs. Basht are the subsequent owners of this easement property, which on July 24, 2001, was approved by the Board as a 50.0-acre agricultural subdivision from the 110.033-acre easement owned by Francis Miller.  This parcel contains no pre-existing dwellings.  The current request is to swap 1.5 acre of easement property for 1.5 acres of adjoining non-easement property.

 

The easement contains 1.5 acre that encompasses several farm buildings that are not currently being used as part of the overall farm operation.  In addition to the easement, the landowners also own an adjoining parcel of 3.179 acres that contains a dwelling and 1.5 acres of active cropland.  The landowners are proposing to exchange the two 1.5 acre parcels.  The result of the swap will be that the easement will be 100% cropland and pasture, and the adjoining parcel will contain the entire farmstead.

 

According to the landowners, they wish to use the farm buildings, now located on the easement property, for a commercial venture that may be a violation of the MALPF easement.  Reconfiguring the parcels will avoid this potential conflict, while enlarging the overall farm operation and not reducing the number of acres within the easement.

 

According to Cecil County, the 1.5 acre to be removed from the easement contains .8 acre of class II soils.  The 1.5 acre to be added to the easement contains 1.4 acre of class II soils.  This request has been approved by the local advisory board and meets all local zoning regulations.

 

Foundation staff recommends approval of the request as it will improve the overall farm operation.  If approved, Foundation approval should be contingent on a satisfactory review by the Office of Real Estate, Department of General Services, for a determination of the impact of the proposed exchange on the value of the easement.

 

Mr. Conrad added that if the request is approved, the landowner will be responsible for the expenses incurred as a result of the request.

 

Eric Shertz, Program Administrator, was available at the Board meeting to answer questions from the Board members.  Mr. Basht was not able to attend the meeting.

 

Mrs. Schultz commented that the resulting easement property will have no dwelling, but that currently the property also has no dwelling.

 

Mr. Shertz stated that the home is currently on a separate 3-acre parcel not currently covered by the easement.  Mr. Shertz located the cropland on the color map and stated that the area is not covered by the easement.  Mr. Basht trains retrievers on a recreational basis and wants to extend the operations knowing that it is a use that is currently not allowed by the MALPF Board.  He does not want to put his plans into action till a decision is made.

 

Motion #5:         To approve the request of Steven and Sabrina Basht to swap 1.5 acre of easement property for 1.5 acre of non-easement property.  The approval is contingent on a satisfactory review by the Office of Real Estate, Department of General Services.

 

Motion:             Doug Wilson                              Second:  James Pelura

Status:              Approved

 

Ms. Forrester informed Mr. Shertz that the landowner needs to be aware that the swapping of the property is not a fast process.  It is a low priority item, and the request needs to go through the Board of Public Works review for approval.  The request is also required to be reviewed by the Department of General Services.  Ms. Forrester wanted to make sure that the landowner is aware of this.

 

E.         WASHINGTON COUNTY

 

1.         21-91-14            Howell, William J.                                        141.81 acres

Request for partial termination of 3.0 acres of district property

 

Mr. Howell is the subsequent owner of the district property.  There are three pre-existing dwellings, and no lot exclusions were taken by the original owners.  A 3.0-acre parcel was withheld from the district.  On September 26, 2006, the Board approved the partial termination of 5.0 acres of district property.  The current request is for the partial termination of another 3.0-acre parcel.

 

According to Washington County, the landowner wishes to convey the 3.0-acre parcel to a third party as a buildable lot.  If the request is approved, one (1) development right will be associated with the 3.0-acre lot.  (No development rights were associated with either the 3.0 acres that were withheld from the district or the 5.0-acre parcel that was approved for partial termination.)  The remaining 138.81 acres will consist of 90.5 acres (65%) with class III soils.  Current use of the area is mostly woodland.

 

This request has been approved by the local advisory board and meets all Planning and Zoning requirements.

 

Foundation staff recommends approval of the partial termination because it is consistent with the Foundation's policy on withheld acreage/partial termination (copy attached with staff memo).

 

Carol Council, MALPF staff, informed the Board members that the program administrator was not able to attend the Board meeting.

 

Ms. Council commented that the landowner is asking that the parcel of 2.01 acres also be terminated.  Those 2.01 acres are actually part of the 5.0 acres that have already been terminated, so that request does not need to be addressed.

 

Mr. Conrad asked if Ms. Council was aware if there has been perc test on the land.  Ms. Council was not aware of the perc test being done.

 

Mr. Conrad asked how many lots are likely to remain on the property.  Ms. Council stated that the landowner has not taken any lot and the property is currently a district property.

 

Mr. Conrad asked if the Foundation were to purchase an easement on the property, how many development rights would remain.  Ms. Council stated that Washington County would probably grant three development rights to the property, but she was not sure.

 

Motion #6:         To approve the request of William J. Howell for partial termination of 3.0 acres of district property and require staff to inform the landowner that this action may have an impact on the number of development rights in case the landowner chooses to sell an easement in the future.

 

Motion:             Doug Wilson                              Second:  Chris Wilson

Status:              Approved

 

Mr. Doug Wilson stated that it is an old district and the landowner may terminate the district at any time.  He wanted the landowner to be aware of the impact of his action.

 

Ms. Forrester wondered about the development rights associated with the 3.0 acre parcel.

 

Ms. Council stated that the 5.0-acre parcel that was terminated previously was going to be added to another parcel that already has a dwelling on it.  So there would be no development rights associated with it.  It would only be creating a larger lot.  However, the 3.0 acres that were withheld from the district in the beginning already had a dwelling on it.  Ms. Council believed that the reason Eric Seifarth, the Program Administrator, informed the Foundation that there are no associated development rights is because the dwelling is already in use and is on the 3.0 acre parcel.

 

Mr. Tassone stated that it would be advisable to ascertain how many development rights could be associated with the acreage excluded in the first place, the partial termination that has taken place since then, with this partial termination, and the remaining development rights left on the property.  Mr. Tassone believed it will be important to know how much acreage has been excluded over time and whether the acreage exclusions are in line with the withheld acreage policy.

 

Ms. Council stated that she already addressed this issue because she was concerned with the three different parcels coming out; according to Mr. Seifarth, there is one development right associated with three areas that have been taken out.

 

 

      III.  AGRICULTURAL PRESERVATION DISTRICT PETITIONS

 

A.         Frederick County

 

1.         10-07-01            Smith, Marian                                             124.65 acres

 

This is a 124.65-acre parcel located north east of Rosemont.  It is contiguous to one easement property.  There is one dwelling.  The farm has 40 acres of pasture and 83 acres of woodland.  The primary farming operation is rented pasture.  It has 52.9% qualifying soils.  It is part of a larger operation and is not owner operated.  The property has a forest stewardship plan.

 

2.         10-07-02            Bohrer, Suzanne L. and Shannon B.               26.77 acres

                            

This is a 26.77-acre parcel located in the community of Emmitsburg.  It is contiguous with several easement properties.  There is one dwelling.  The farm has 18.4 acres of cropland, 3.97 acres of pasture, and 3.4 acres of woodland.  The primary farming operation is hay.  It has 93% qualifying soils.  It is not part of a larger operation and is owner operated.

 

Motion #7:         To approve the request of Marian Smith and Suzanne and Shannon Bohrer to establish agricultural land preservation districts on their respective properties.

 

Motion:             Doug Wilson                              Second:  Vera Mae Schultz

Status:              Approved

 

B.         Cecil County

 

1.         07-07-02            Major, Alvin J., Jr., and Jean                         151.97 acres

 

This is a 151.97-acre parcel located north of Court House Point Road in the town of Chesapeake City.  It is contiguous to one MALPF district and one proposed district.  There is no dwelling.  The farm has 86.1 acres of cropland and 56 acres of woodland.  The primary farming operation is row crops.  It has 93% qualifying soils.  It is part of a larger operation and is not owner operated.  The forest stewardship plan on the property is in the process of being developed.

 

2.         07-07-03            Major, Alvin J., Jr., and Jean                         161.00 acres

 

This is a 161.00-acre parcel located north of Court House Point Road in the town of Chesapeake City.  It is contiguous to one MALPF district and two proposed districts.  There is one dwelling.  The farm has 90.5 acres of cropland and 57.8 acres of woodland.  The primary farming operation is row crops.  It has 83% qualifying soils.  It is part of a larger operation and is not owner operated.  The forest stewardship plan on the property is in the process of being developed.

 

3.         07-07-04            Major, Alvin J., Jr., and Jean                       108.373 acres

 

This is a 108.373-acre parcel located south of Court House Point Road in the town of Chesapeake City.  It is contiguous to one proposed district.  There is no dwelling.  The farm has 70.173 acres of cropland and 38.2 acres of woodland.  The primary farming operation is row crops.  It has 90% qualifying soils.  It is part of a larger operation and is not owner operated.  The forest stewardship plan on the property is in the process of being developed.

 

4.         07-07-05            Milburn, John T., Jr.                                     80.114 acres

 

This is an 80.114-acre parcel located west of Little Elk Creek Road in the town of Elkton. It is contiguous to four MALPF easements.  There is no dwelling.  The farm has 58.514 acres of cropland and 21 acres of woodland.  The primary farming operation is row crops and orchard.  It has 100% qualifying soils.  It is not part of a larger operation and is owner operated.

 

5.         07-07-08            Jackson, Robert Leiper                                239.70 acres

 

This is a 239.7-acre parcel located north of Kirk Road in the town of Elkton.  It is contiguous to proposed district 07-07-09.  There are two dwellings.  The farm has 118.4 acres of cropland, 11.9 acres of pasture, and 88 acres of woodland.  The primary farming operation is row crops, hay, and horses.  It has 89% qualifying soils.  It is not part of a larger operation and is owner operated.  The property has withheld 4.0 acres encompassing a commercial use.

 

Staff recommends the landowners acquire a forest stewardship plan.

 

6.         07-07-09            Peterson, Richard                                       27.221 acres

 

This is a 27.221-acre parcel located north of Kirk Road in the town of Elkton.  It is contiguous to proposed district 07-07-08.  There are no dwellings.  The farm has 19.721 acres of cropland and 7.5 acres of woodland.  The primary farming operation is grain.  It has 61% qualifying soils.  It is part of a larger operation and is not owner operated.

 

7.         07-07-06            Maccari, Palmarino and Dorothy                   48.213 acres

 

This is a 48.213-acre parcel located south of Telegraph Road in the town of Elkton.  It is contiguous to one MALPF district.  There is one dwelling.  The farm has 36.013 acres of cropland, 1.4 acres of pasture, 7.2 acres of woodland, and 1.5 acres of wetland.  The primary farming operation is row crops and CRP.  It has 73% qualifying soils.  It is not part of a larger operation and is not owner operated.

 

8.         07-07-07            Birney, Lawrence J.                                     45.927 acres

 

This is a 45.927-acre parcel located south of Brewster Bridge Road in the town of Elkton.  It is contiguous to the Department of Natural Resources Fair Hill Natural Resources Area.  There is one dwelling.  The farm has 32.327 acres of cropland, 9.2 acres of pasture, and 4.4 acres of wetland.  The primary farming operation is row crops and livestock.  It has 83% qualifying soils.  It is not part of a larger operation and is owner operated.  The property has 10.0 acres withheld.  There are 10 possible development rights associated with 10.0 acres.  It is the landowner's intention to provide a building lot for his nephew.

 

Staff recommends approval with appropriate recommendations.

 

Eric Shertz, Program Administrator, was present at the meeting.

 

Motion #8:         To approve the item 1 through 7 of Cecil County to establish agricultural land preservation districts on their respective properties with appropriate recommendations.

 

Motion:             Doug Wilson                              Second: Pat Langenfelder

Status:              Approved

 

Board members wondered about Mr. Birney's plan for the 10.0 acres withheld.  Mr. Shertz commented that the landowner wants to create a lot first.  He understands that he cannot exclude the acreage after the district is established.  The majority of the 10.0 acres will have road frontage.  He does not want to sell himself short by saying that he wants one acre and then finds out that he needs more acreage.  The landowner intends to create lots first and then to establish the boundaries and subdivide the remaining lands to be added to the district or easement.  The landowner perceives a time frame of 6 – 7 months for creation of the lots.

 

Mr. Tassone asked if the landowner intends to sell an easement quickly.

 

Mr. Shertz confirmed this.  The landowner feels he may require more than 2 acres for the lot to accommodate access and that is the reason he is withholding 10 acres.  Mr. Birney wants to make sure that his nephew is well covered.  The question of potential development came up at the County local meeting with the County Agricultural Development and Planning Commission.

 

Mr. Doug Wilson stated that he was concerned that the landowner should not hurt himself in his easement application.  He wanted to make sure that the landowner understands that the approach he is using to achieve his goals may significantly impact any easement application he might submit.

 

Mr. Tassone commented that the Board will be approving an excluded acreage that can accommodate perhaps more than three lots.  He was concerned because this is beyond the MALPF policy guidelines.

 

Bill Amoss, Program Administrator, Harford County, stated that, in the past when Harford County did not want this situation, the County allowed whatever maximum they could allow as per the policy.

 

Mr. Conrad commented that if the landowner takes any discount at all on the property that he puts under an easement, the IRS will look into the adjacent property that he owns and chances are good that the landowner will lose at least some portion of that discount.

 

Mr. Colhoun asked Mr. Shertz if it would help to discuss the issues with Mr. Birney before proceeding further.

 

Mr. Shertz stated that he understands the issue, but Mr. Birney is more comfortable to have the district created as requested.  Mr. Shertz perceived that Mr. Birney wants to participate in the MALPF Program because of the location, size, etc., of this property.

 

Mr. Doug Wilson commented that MALPF's current policy will allow only subdivision to support three development rights.  In a normal situation the request would be turned down because it would support ten development rights.

 

Mr. Tassone explored the possibility of approving the request, but with the condition that the County and the landowner ascertain what would support the three development rights, and MALPF Board would approve the exclusion of that number of development rights.

 

Tammy Buckle, Program Administrator, Caroline County, commented that in the past the County had a situation when the landowners had a 10-acre piece on one side of the road and the remaining 140-acre piece on the other side of the road.  The landowner just had to sign a letter that stated that he would agree that on the 10-acre piece he would not build more than 3 lots.

 

Mr. Shertz commented that if the Board approves the request with that additional requirement, that the landowner would need to sign the agreement anyway, so would understand the condition.  He can check with the landowner.

 

Motion #9:         To approve the request of Lawrence J. Birney to establish an agricultural land preservation district on his property with the condition that the landowner would acknowledge that the excluded acreage would support no more than three development rights.

 

Motion:             Doug Wilson                              Second:  Joe Tassone

Status:              Approved

 

Mr. Conrad commented that Ms. Forrester and Ms. Council will draft the text of what they would like to have and send it to the landowner with copies to the Program Administrator.

 

C.         Charles County

 

1.         08-07-19            Constrander, LLC                                      192.418 acres

 

This is a 192.418-acre parcel located in west of Indian Head-La Plata Road in the town of Ripley.  It is within 2 miles of two MALPF district properties.  There is no dwelling.  The farm has 192.418 acres of woodland.  The primary farming operation is forestry.  It has 52% qualifying soils.  It is not part of a larger operation and is owner operated.  The property has forest stewardship plan.  Nine acres are withheld, representing one development right.

 

2.         08-07-20            Constrander, LLC                                          74.00 acres

 

This is a 74-acre parcel located north of Liverpool Point Road in the town of Nanjemoy.  There is no dwelling.  The farm has 74 acres of woodland.  The primary farming operation is forestry.  It has 76% qualifying soils.  It is not part of a larger operation and is owner operated.  The property has forest stewardship plan.  Nine acres are withheld, representing three development rights.

 

Charles Rice, Program Administrator, was available to answer questions from the Board members.

 

Motion #10:       To approve the request of Constrander, LLC, to establish agricultural land preservation districts on their properties.

 

Motion:             Doug Wilson                              Second:  Robert Stahl

Status:              Approved

 

3.         08-07-21            Posey, David H.                                        60.4236 acres

 

This is a 60.42-acre parcel located southwest of Waldorf-Leonardtown Road in the town of La Plata.  There is no dwelling.  The farm has 60.4236 acres of woodland.   The primary farming operation is forestry. It has 57% qualifying soils.  It is not part of a larger operation and is owner operated.  The property has forest stewardship plan.  137.5 acres are being withheld, representing 45 development rights.  The remaining property has preliminary subdivision plan approval for 40 lots.  The area being withheld does not fall within the guidelines of the Foundation's withheld acreage policy.

 

The landowner plans to sell Charles County TDRs and will not pursue a MALPF easement on this property.

 

Staff recommends approval subject to amending the District Agreement to state that an easement will not be bought on this property.

 

Motion #11:       To approve the request of David H. Posey to establish an agricultural land preservation district on his property subject to amending the District Agreement to state that the Foundation will not buy an easement on the property.

 

Motion:             Joe Tassone                              Second:  Judith Lynch

Status:              Approved

 

 

      IV.  PROGRAM POLICY

 

A.                  Wetland Mitigation Easement Policy – an update by Mr. Joe Tassone

 

Mr. Conrad reminded the Board about the additional handout circulated at the meeting.  It contained comments from Mr. Wally Lippincott, Program Administrator, Baltimore County.

 

Mr. Tassone circulated a one page summary of the Wetland Mitigation Committee.

 

__________________________________________

Recommendations

 

Adopt a policy that the Foundation generally discourages wetland mitigation on MALPF easements and districts, but will consider wetland mitigation proposals from landowners on a case-by-case basis.  Use a 2-step process.

 

Step 1:  Staff and sister agencies would screen applications and provide opinions to the Board accordingly, after determining if the proposed mitigation would:

·         Achieve legitimate resource conservation purposes consistent with NRCS guidelines.

·         Affect limited acreage on a farm, commensurate with both the resource conservation purpose and the Foundation's interest in the production potential of the farm, and

·         Facilitate development that is consistent with state and local plans and policies and the Foundation's goals and objectives.

 

Step 2:  The Board would consider proposals based on the judgment of staff, based on the results of the screening information.

 

When projects meet the above criteria and are approved by the Board, the Committee recommends that the Foundation allow

·         Overlay wetland mitigation easements on approved acreage, which would remain under the terms of the Foundation's easement, which would be adjusted to accommodate mitigation, and

·         Overlay easement payments (i.e., the amount of money paid to the landowner for overlay easements) to be determined by the market, i.e., landowners and developers.

 

Decision Points: Issues not completely Resolved by the Committee

I.                    Some Committee members are not comfortable with the recommended policy to generally "discourage wetland mitigation on MALPF easements and districts."  See report for details attached with staff memo.

II.                  Consideration of the development enabled by proposed mitigation. Not all Committee members feel this should be a criterion for review and approval.  See report for details (attached with staff memo), and issue IV for another point of view.

III.        Some Committee members have concerns about State easements being used to provide a land base for developers' mitigation projects.  See report for details (attached with staff memo).

IV.        Concerns/ suggestions from Program Administrators; concern:  use of mitigation to increase lot yields (in rural areas?).  Suggestion:  with regards to development purpose, simply require landowner to demonstrate substantial public benefits; provide a framework for acceptable types of development, per the Uses Committee's guidelines for allowed uses.

__________________________________________

 

Mr. Colhoun encouraged everyone to read the report and offer their comments.

 

Mr. Tassone stated that one of the decision points about requiring a payback from the landowner is no longer presented in the summary because Craig Nielsen, Assistant Attorney General, Department of Agriculture, felt it to be illegal.

 

Mr. Stahl commented that it is important to focus on whether or not the creation of wetlands is beneficial to the farm and believed the Board's decision has to be whether or not the creation of the wetland on the farm is beneficial to the farm and beneficial to the area.  Philosophically, he differed from Mr. Lippincott's suggestion on the way the criterion of facilitating development is treated.  Theoretically, we are preserving the farm area, but we are also creating an opportunity for additional development in other areas.

 

Mr. Stahl stated that he does not disagree with the comments of Baltimore County Agricultural Land Preservation Advisory Board, "Broadly speaking, we recommend that the Foundation generally discourages wetland mitigation on MALPF easements and districts, but consider wetland mitigation proposals from landowners on a case-by-case basis."  But he disagrees with the statement that "The Baltimore County Advisory Board has a philosophical problem with the purchase of easements to eliminate or discourage development and then if its possible uses permit developers to get more lots or greater yield through mitigation projects on easements."  Mr. Stahl believed theoretically that is the definition of a TDR Program.

 

Mr. Tassone stated that assuming that someone is requesting mitigation on their easement and the development project for which it is required is a residential subdivision on rural land, the developer can get additional lots if they mitigate for the wetlands.  Mr. Tassone believed that Baltimore County is talking about such an issue and not about the idea of a TDR program.  He further believed that the Committee's recommendation on how to review the type of development project that is enabled by the mitigation proposal takes care of that problem.

 

To help the Board members, Mr. Colhoun stated that in the RC 4 zone of Baltimore County, 70% of the tract must be preserved and only 30% developed.  No agricultural easement land can be used to comply with the 70% preserved land requirements.  Therefore, development mitigation will not be allowed on easement land.

 

Mr. Tassone thanked Mr. Colhoun for the clarification.  Mr. Tassone believed that, if the Board followed the Committee's recommendations for types of development, the Board would not support that.

 

Barbara Polito, Program Administrator, Anne Arundel County, wanted to know what Wetland Mitigation banks are.

 

Mr. Tassone stated that Wetland Mitigation banks are reserved land which can be used to meet wetlands mitigation requirement for development.

 

Mr. Stahl commented that theoretically "if the landowner knew to whom he was selling in advance," it is called a Wetland Mitigation Bank.  If you are creating a bank with the 2 acres and you had 2 acres worth of mitigation, theoretically the landowner will come to the Board and inform that he wants to create wetland mitigation because it is good for the farms.  He would say that he wants to do that, but he wants to bank the mitigation credits.  He does not know where the development is.

 

Ms. Polito wanted to know how to deal with such situations.

 

Mr. Tassone stated that it is not something that the Committee discussed.  He was not sure whether the Committee would want to include the evaluation of the development that results as a pre-condition for approving or not approving the Committee's recommendations.  Intuitively his inclination was if somebody wants to do that and they meet all the other criteria, that is fine, but we have to agree on the kinds of development projects for which the credits can be used.

 

Mr. Colhoun stated that approving mitigation on MALPF land should be reviewed by Maryland Department of Planning.  The report contains checks and balances and, based on that, the Board can decide whether to approve or not approve a bank.

 

Ms. Buckle stated that she is a little confused because it looked as if the Committee was focusing more on projects at hand and off site.  Ms. Buckle thought the Committee would focus more on the easement property itself; how many acres are going to be used, where it is going to be placed on the property, is there going to be Soil Conservation Plan, is it going to be in the best interest of the farming operation.

 

Mr. Colhoun believed Mr. Tassone has addressed those checks and balances in his report.  The report gives the Board members and landowners a set of rules.  Mr. Tassone commented that majority of the report addresses the issues raised by Ms. Buckle.

 

Mr. Stahl commented that he has the ultimate respect for what Mr. Tassone has presented in his report.  Mr. Tassone is a planner representing State Planning and has to look at those issues.  As a member of the MALPF Board, Mr. Stahl felt that the Board is trying to encourage agricultural land preservation and MALPF is concerned about the preservation of the farmland.  Now the Board is required to reflect and look at external developments to the mitigation site and whether or not that development project is worthy of mitigation.  This requirement is totally different from what the MALPF Board is charged to do by the State laws.

 

Mr. Stahl strongly believed that the MALPF Board needs to focus on preservation on a case-by-case basis and not to discuss the development implications of mitigation.  This will require lot of Board's time and take it into a different realm.

 

Mr. Tassone commented that he and the other Committee members do recognize the point, and that is the reason they have formulated the recommendation so that the Board won't have to do any of that.  The Board just needs to get an opinion from the Department of Planning and information from the County.

 

Mr. Colhoun stated that he has read the report and Mr. Tassone has clearly outlined the functions of each agency.  The different agencies have to provide the technical information to the MALPF Board, and the Board can decide what it needs to do with the information.

 

Ms. Weaver believed that the recommendations of the Wetland Mitigation Committee are consistent with the recommendations of the policy of Wastewater Spray Irrigation and Water Recharge Committee that resulting growth should take place in the designated growth areas.

 

Ms. Buckle wondered what review criteria would be used and, if a County does not have proper regulations in place, will the State seek to change county zoning, etc., to influence the outcomes.

 

Mr. Tassone responded in the negative and stated that the review process simply represents an opinion from the State.  The decision making process at MALPF Board meeting will have no effect on what the County does.  The Board would like to know what the County is doing so that the Foundation can consider it relative to its own interests.

 

Ms. Buckle wanted to know what the Foundation would do if it did not like what the County is doing.

 

Mr. Tassone said that the MALPF Board would not necessarily turn down any request.  The MALPF Board would seek an opinion which would say that it is or is not consistent with the Foundation's interest or State's Planning Policy, and the MALPF Board would explain its conclusions.  It will be just like the situation where MALPF Board looks at Soil Conservation District's recommendations about acreage and resource conservation purposes.  The Board will state that it looks it is well supported and recommend approval.  According to the Committee recommendations, the sister agencies have no approval or disapproval authority.  It simply presents the information to the Board, and it is ultimately the Board's responsibility to decide.

 

Mr. Stahl stated that this policy would put a tremendous onus on the landowners.  If he was an easement property owner and concerned about a wetland mitigation project, he will have to worry about the developer he is selling to and figure out the whole project.  It is a totally separate issue.  Illustrating an example, Mr. Stahl stated the Board can ask Mr. Posey (Charles County District applicant) to indicate to the MALPF Board where he intends to put his TDRs in Charles County before the Board approves his district application.  The only reason the landowner came to MALPF Board with his request is because it is a requirement in Charles County that a property should be a district to be able to sell a TDR in the County.  It is the only reason the landowner came to MALPF Board.  The MALPF Board approved the request, and, in doing so, the Board gave the landowner 15 TDRs which facilitated development in another part of Charles County.

 

Mr. Colhoun believed that this is a well thought out report and encouraged Board members and program administrators to study the report carefully.

 

Bill Amoss, Program Administrator, Harford County, presented the concerns of the Harford County Advisory Board concerning the MALPF Board's position on Wastewater Spray Irrigation, Wetland Mitigation, and related issues.

 

At Mr. Colhoun's request, Mr. Amoss has put these concerns in an e-mail that is attached to these minutes.

 

Ms. Buckle commented that she has to remind herself that MALPF is preserving the land.  She was involved with Land Uses Committee, and the Committee tried to change the uses to allow farmers to continue to farm.  Policies like Wetland Mitigation, Wastewater Spray Irrigation, Water Recharge, Forest Mitigation, etc., help the farmers to pass the property on to the next generation.  So it is not necessary always a bad thing, but she does see the need for a review process.

 

Mr. Colhoun commented that all the MALPF Board's policies are to develop good solid information to help the Board make good decisions.

 

Mr. Stahl stated that larger projects tend to do more off-site mitigation.  Most types of residential development usually do mitigation on site, projects such as gas pipelines do not have the ability to set aside land where mitigation can be done.

 

Mrs. Schultz remarked that she was glad to hear Mr. Amoss' comments on the Harford County's position.  Mrs. Schultz was a member of the Committee, and she kept asking, how can you pay landowners to preserve the lands for agriculture and forestry in perpetuity and then allow the landowner to take the money to not to allow agriculture or forestry?  Several years ago, the Washington County Soil Conservation District approached her about forest mitigation.  It could occur on easement property, but the landowner would not receive payment for mitigation since he/she had received payment for the easement.  (She didn't know if this is a statewide policy.)  This made sense to her.  How can we take payments for preserving the right for farming and forestry and then take payment for something that doesn't allow farming and forestry practices?

 

Mr. Tassone commented that he understands and has some sympathies for that perspective.  In broad terms the way we define criteria for this process says that what the landowners will be getting paid for is a conservation practice that is consistent with good soil conservation and water quality purposes; in fact, it is a best management practice and is both desirable and appropriate for the farm.

 

Mr. Colhoun asked the Board members and the program administrators to go through the report and mark the comments as to what exactly they feel, like, don't like, and forward to Mr. Tassone.  Mr. Tassone can put it together, and the Committee members can work with this revised document.

 

Mr. Tassone wanted to comment on Mr. Lippincott's recommendation on reviewing the development project enabled by the wetland mitigation.  Mr. Lippincott is recommending putting the onus on the landowner to prove that substantial public benefit will result from the development project.  Part of Mr. Lippincott's idea is appealing to Mr. Tassone, but he did not feel it is a reasonable thing to ask the landowner.

 

B.                  Recertification Request from St. Mary's County

 

St. Mary's County has submitted an application for Certification of a local Agricultural Land Preservation Program and is requesting Foundation approval. Below are some highlights:

 

·         The County continues to commit funding for the Agricultural Preservation Program, allowing the County to participate in matching funds programs including MALPF and Federal Farmland Protection.

·         During the reporting period, the County preserved 5,631 acres of agricultural land and woodlands through the MALPF program.

·         More than 10,509 acres have been preserved through a combination of MALPF, Rural Legacy, MET, Maryland Historical Trust, and other easement programs.

·         The County continues to demonstrate a very strong commitment to preserving its agricultural lands.

 

The staff's review of St. Mary's County's re-certification request, addressing general operations of the program, qualifying expenditures and program development strategies was sent with staff memo.

 

The Foundation staff recommends that St. Mary's County be recertified as the County's local program continues to be successful in supporting viable agricultural operations and preserving agricultural land in perpetuity.

 

Donna Sasscer, Program Administrator, and Dan Rosen, Planner, Department of Planning, were available at the meeting.

 

Mr. Rosen stated that the Department of Planning recommends recertification.  The County has preserved 9,700 acres in eight years through a combination of MALPF, Rural Legacy, and MET.  During that time, the County spent on easements almost $3.5 million of county funds other than agricultural transfer tax.  Mr. Rosen stated the County, in its Land Preservation, Parks, and Recreation Plan (LPPRP), did a thorough job evaluating their program strengths, weaknesses and steps to be taken in future.

 

Mr. Rosen stated that even though the County says preserved 9,713 acres in the eight years, 10,556 were converted to development.  The conversion figure for the "average" Maryland County during that time period was 6,133.  So it can be seen that the conversion rate in St. Mary's County between 1999 and 2006 was about 2/3rd higher than the State average.

 

During the 15-year period from 1990 to 2004, there were eight years when more than half of the lots created in the County were in the rural preservation district.  The County has recommended changes such as creating a County PDR program, improving their TDR program and creating a voluntary overlay zone where landowners voluntarily lower the zoning density.  If the initial steps do not succeed, the LPPRP/Recertification report recommends a reduction in by-right density to 1:15 or lower, or restricting development only to minor subdivisions; and restructuring of the TDR program to eliminate the ability to transfer density to this preservation area.  Mr. Rosen advised that the County should take all these measures as a first resort rather than as a last resort.  In the County's report, the County has mentioned that "A severely underfunded and slow-moving ... PDR ... program has no chance of meeting its intended target acres given the rate of land conversion out of agricultural use.  The land will long be gone if funding levels remain the same."

 

Mr. Rosen mentioned that down zoning in the County did take place, from 1:3 to 1:5.  The County's report said that it "had virtually no effect on the pattern of substantial percentages of new lots being created in the rural zone."

 

Mr. Rosen quoted from the County's report that "at current rates of development and easement purchase, the County will, by 2013, have lost even a pool of farmland sufficient to meet its 60,000-acre goal."

 

Mr. Tassone informed the Board members about the provision in HB 2.  As per HB 2, as of July 1, 2008, all certified counties must have priority preservation areas established in the County Comprehensive Plan.  The Maryland Department of Planning is articulating for each certified county how the department perceives their programs relative to the new requirements in their recertification letters.  This is being done with the idea that, rather than forcing these requirements on everybody as of July 1, 2008, the Department will work together with everyone by slowly moving towards the goal.

 

Mr. Conrad believed that there was an agreement by the Board of County Commissioners to downzone the area that was included in the new approved Rural Legacy area.  Mr. Conrad wanted to know if it has been done.

 

Ms. Sasscer stated that the previous Board of Commissioners did adjust the TDR program in the new Rural Legacy Area.  Zoning allows just one dwelling per five acres, and there is no ability to do one dwelling per three acres using TDRs.  The proposal on downzoning was on the table of the previous Board of Commissioners, but then the elections came up.

 

Mr. Conrad asked if it would be helpful if the recertification letter is sent quickly to the County.  Ms. Sasscer confirmed this.

 

Motion #12:       To approve the recertification request from St. Mary's County.

 

Motion:             Chris Wilson                              Second:  Robert Stahl

Status:              Approved

 

C.         MARBIDCO COOPERATIVE AGREEMENT

Proposed Cooperative Agreement with MARBIDCO (the Maryland Agricultural and Resource Based Industry Development Corporation)

 

Mr. Conrad circulated an updated version of the proposed Cooperative Agreement between MALPF and MARBIDCO intended to define the relationship between the organizations in the development and implementation of the installment purchase agreement (IPA) program.  Since he handed out an earlier version at the December meeting for comments, he has incorporated a number of suggestions and comments from various sources.  With one exception, the changes have been for purposes of clarification and organization.  Some items have been removed as being more appropriately placed in the contract between the IPA Counsel and MARBIDCO.  Some items have been added to clarify the responsibilities of the two organizations.  The one substantive change is that the final provision (G) has been broadened to include a joint examination of all of the statutory requirements and provisions of the MALPF Program and whether any may adversely affect the tax status of IPAs.  If any problems are identified, MALPF and MARBIDCO will work together to find ways to resolve the problems.

 

The MARBIDCO Board of Trustees has given tentative approval to an earlier version of this document.  The Request for Proposals to hire the IPA Counsel through MARBIDCO has not yet been released, but is expected to be issued any day.  The Cooperative Agreement needs to be finalized before a contract is signed with the IPA counsel.  If it is at all possible, Mr. Conrad would like to have the IPA option in place for participants in the 2007 easement acquisition cycle.

 

Mr. Conrad would like the MALPF Board of Trustees to approve this Cooperative Agreement subject to final review by the Office of the Attorney General and the staff and Board of Trustees of MARBIDCO and addressing any concerns that may be raised.  If this review produces substantive change in the text of the Cooperative Agreement, MALPF staff will bring this document back for a final review and approval before it is signed.

 

Motion #13:       To approve the proposed Cooperative Agreement with MARBIDCO (the Maryland Agricultural and Resource Based Industry Development Corporation).

 

Motion:             Doug Wilson                              Second:  Robert Stahl

Status:              Approved

 

 

       V.  INFORMATION AND DISCUSSION

 

A.                  Proposed Bill for the 2007 Legislative Session concerning MALPF Grants to Counties

Delegate David Rudolph, Cecil County

 

Mr. Conrad stated that this is an informational item.

 

Delegate David Rudolph from Cecil County has asked for the MALPF Board to review proposed legislative language and the program change that would result from a proposed bill he is considering to introduce this legislative session.  At Delegate Rudolph's request, Mr. Conrad developed the language with the OAG to enable individual counties to assume obligation for bonds to purchase a large number of MALPF easements in a short period of time and use future MALPF allocations to pay the interest and principal.  It is understood that the bonds cannot be secured by anticipated MALPF allocations, because MALPF cannot guarantee future funding levels, or even that future funding will be available.  However, this would help facilitate the ability of counties to forward fund MALPF easement purchases when properties become available and are less expensive than they will certainly become in the future.  The actual language of this proposal is relatively general and also authorizes grants to county IPA programs to fully enable the IPA county grant legislation already passed in Section 2-510.1.

 

One possible issue created by this legislation is that any county choosing to issue bonds to purchase in one or a few number of years more MALPF easements than it would be able to obtain through the general allocation and the matching funds program would probably not be able to take advantage of leveraging state matching funds in the years that it is not purchasing easements, but rather using its MALPF allocation to service debt.  A similar situation exists now (and will continue to exist, assuming no changes) when counties choose to commit 100% county funds to MALPF offers beyond that available through that year's general allocation and matching funds program:  there is no provision that allows a county willing to commit additional money in one year to use that additional commitment in years when matching fund commitments are not made.

 

There are several possible strategies that Delegate Rudolph is considering for this proposed language.  One is to roll it into the Critical Farms Program legislation that will be provided to the General Assembly as soon as it is reviewed by the Governor's Office.  This strategy could make sense because of the language in the proposed Critical Farms legislation requires changes in the same section of the Code.  It could also be introduced as standalone legislation, or incorporated into a departmental bill that proposes to alter language in this subtitle and section of the Code.  How he chooses to approach the legislation will depend in part on any suggestions and/or comments that may come from the MALPF Board and from the review of the Critical Farms Program Report by the Governor's Office.

 

In addition to a review of this legislation by the Board, any comments or suggestions from county program administrators and/or members of the Advisory Boards would also be welcomed.  Comments or suggestions outside of the Board meeting should be directed to Mr. Conrad.

 

Mr. Doug Wilson commented that when MALPF was created it was the only program of its kind.  MALPF had a formula on how to allocate money, and the County had few extra dollars.  The County committed those extra dollars as matching funds and leveraged additional state funds to purchase easements.  The Counties had the ability to use the agricultural transfer tax revenues either as matching funds or to fund any other agricultural land preservation program they wanted to.  Most of them utilized the agricultural transfer tax to create their own local program to complement the State program.

 

Lately MALPF has had many jurisdictions providing millions of dollars to the Foundation, either as matching funds or as 100% county-funded offers.  If a county had its own program, it could use the same dollars and buy easements for its own program.  Every year MALPF has a couple of jurisdictions that don't bring anything to the table in matching funds.  The county brings only one or two applicants forward to utilize the round one money of the Foundation.  Some counties even forgo their general allocation money.

 

Mr. Doug Wilson stated that, instead of the counties giving money to the Foundation to make 100% county-funded offers, the Foundation is giving the county money to make 100% State-funded offers.  This bill really talks about MALPF giving State funds to the county to fund its own program.  Some people may argue that, if everybody does that, there is no reason for the Foundation to run a State program.

 

Mr. Doug Wilson commented that, while it sounds nice on its surface, what the proposed bill actually does is it displaces what the counties had to do previously:  generate their own revenue, find a way to service their own debts, come up with their own general fund allocation.  The Foundation becomes the grantor of the money.  He believed the bill's use is strictly limited to grants.  The Foundation becomes a grantor of local government programs.

 

Mr. Conrad noted that the proposed bill states "the purchase of agricultural land preservation easements that meet the requirements of this subtitle" which means that counties are purchasing easements through the Foundation.  They want the ability to service their debt.  The bonds would have to be general obligation bonds against their overall revenues in the counties.  They just want an ability to get their general allocation for the years they are not spending their money on MALPF easements.

 

Mr. Doug Wilson commented that they can say this year they have tight general funds in their county, they don't want to take revenues that were originally pledged to service debts.  They would say that they plan to put the dollars in their general funds for social welfare, and they would ask the Foundation for $500,000 (that is what their allocation would be).  Mr. Doug Wilson believed every year this might be an issue as long as MALPF gets funding.

 

Mr. Stahl asked whether this is specifically applicable to County's portion of agricultural transfer taxes.  Mr. Doug Wilson answered in negative and stated that it covers everything.

 

Mr. Stahl was concerned that it makes the Board similar to Rural Legacy Advisory Board, which is just giving out grants.

 

Mr. Conrad stated that the easements are still purchased by the Foundation.  The bond money actually does come to the Foundation, but the Foundation could be asked for grants of a county's general allocation to service that bond debt in the years when the county has no new applications.

 

Mr. Doug Wilson commented that the Foundation's role is to preserve farmland, and this bill facilitates preservation of more land more quickly.  On the other hand, the bill has certain repercussions.  Mr. Doug Wilson was concerned that five years in the future the Foundation's main role may become giving away funds to fifteen counties of the twenty three counties.

 

Mr. Conrad asked Mr. Shertz about the status of discussion about developing a local program and dedicated funding in Cecil County.

 

Mr. Shertz stated that this is the first time he has heard about this particular bill.  He was aware that the Delegate was working on something, but he was not aware of the scope of the bill.

 

Mr. Stahl was concerned that the proposal is coming from one of the smaller, rural and poorer counties.  He can understand if it came from Baltimore County which has more financial resources.  He was concerned that this bill would not be advantageous to the Foundation.

 

Mr. Conrad commented that the original language the Delegate had drafted focused narrowly on the bonds. Mr. Conrad and Ms. Forrester had worked to develop the language of the present proposed bill.

 

Mr. Colhoun recommended Mr. Conrad and Ms. Forrester to work on the proposed bill and did not feel it necessary for the Board to take any action at the moment.

 

James Pelura, Board member, saw the proposed bill as an attempt to use MALPF as a funding mechanism.

 

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

 

Motion #14:       To adjourn regular session.

 

Motion:             Joe Tassone                              Second:  Robert Stahl

Status:              Approved

 

The regular session of the Board meeting was adjourned at approximately 01:30 p.m.

 

 

Respectfully Submitted:

 

 

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Rama Dilip, MALPF Secretary

 

 

 

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James A. Conrad, Executive Director