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HomeMy WebLinkAboutFarmland Preservation Bond PolicySouthold Town Board - Letter Board Meeting of November 4, 2010 RESOLUTION 2010-888 ADOPTED Item # 5.30 DOC ID: 6349 THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 2010-888 WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON NOVEMBER 4, 2010: WHEREAS, on August 28, 2007, the Town Board of the Town of Southold adopted a Bond Resolution (No. 2007-715) authorizing the acquisition of interests or rights in agricultural lands for an estimated cost of $4 million dollars ("Farmland Bond"); and WHEREAS, at the Biennial Town Election held on November 6, 2007, a proposition for the approval or disapproval of this Bond Resolution was submitted as a Proposition to the qualified voters of the Town, who approved the Bond Resolution; and WHEREAS, a Policy entitled "Town of Southold, New York, Farmland Preservation Bond Policy" was developed to provide guidelines and general parameters for the appropriation of the funding provided under the Farmland Bond to ensure that the funds are used to further the public purpose of preserving bonafide agricultural lands in the Town of Southold. NOW, THEREFORE, BE IT RESOLVED that the Town Board of the Town of Southold hereby adopts the "Farmland Preservation Bond Policy" dated November 4~ 2010. Elizabeth A. Neville Southold Town Clerk RESULT: ADOPTED [UNANIMOUS] MOVER: Albert Krupski .Ir., Councilman SECONDER: William Ruland, Councilman AYES: Ruland, Orlando, Talbot, Krupski .Ir., Evans, Russell Generated November 9, 2010 Page 44 Document last revised 10/27/10 TOWN OF SOUTHOLD, NEW YORK FARMLAND PRESERVATION BOND POLICY On August 28, 2007, the Town Board of the Town of Southold adopted a Bond Resolution (2007-715) authorizing the acquisition of interests or rights in agricultural lands for an estimated cost of $4 million ("Farmland Bond"). At the Biennial Town Election held on November 6, 2007, a proposition for the approval or disapproval of this bond resolution was submitted as a Proposition to the qualified voters of the Town, who approved the bond resolution. The intent and purpose of the Farmland Bond was to create a funding source to enable the Town to acquire and preserve agricultural land that is suitable for farming to ensure the viability of farming in our local economy. Specifically, the Farmland Bond authorizes the Town to do the following: Purchase development rights in agricultural lands and/or purchase the fee title to agricultural lands. Upon removal of development rights from the purchased property, to sell, lease, alienate or otherwise transfer the Town's fee title interest in the underlying agricultural lands. Provide funds for the preparation of any studies relative to the development and use of the acquired agricultural lands. This policy shall provide guidelines and general parameters for the appropriation of the funding provided under the Farmland Bond to ensure that the funds are used to further the public purpose of preserving bonafide agricultural lands in the Town of Southold. Purchase of Development Rights in agricultural lands and/or purchase of fee title to agricultural lands. The process for purchasing development rights and purchase of fee title to underlying agricultural lands is as follows: Upon authorization by the Town Board, the Town Supervisor or authorized designee shall solicit offers for the sale to the Town of the development rights and/or fee title to such underlying agricultural lands as may be recommended by the Land Preservation Committee. Upon the receipt of such offer or offers, the Town Board or authorized designee shall cause an appraisal or appraisals to be made of the market value of both the development rights and the fee title being offered. In the event that the Town Board authorizes the purchase of -1- I1. both the fee title and the development rights to agricultural lands, the appraisal shall set forth the value of the property with the development rights intact, the value of the land utilized for agricultural production (as defined in Chapter 70 of the Town Code) without its development rights; and the value of any area(s) reserved from the Easement area (Reserve Areas), including any farmhouse and any other accessory structures with development rights intact. After the receipt of such appraisal or appraisals, the Town Board shall hold a public hearing on the question of acceptance of such offer or offers. Within 60 days after such hearing, the Town Board shall adopt a resolution accepting or rejecting such offer or offers. If the offer is accepted the resolution shall also set forth the Town Board's determination in accordance with the New York State Environmental Quality Review Act and a declaration that the purchase is necessary to achieve the public purpose of farmland preservation and consistent with this Policy. Sale, lease, alienation or otherwise transfer of interests or rights purchased by the Town in agricultural lands, A. Sale of Acquired Property. Following any purchase by the Town of the underlying fee title and any Reserve Areas of agricultural lands, the Town Board shall proceed with the sale of such lands in accordance with the following procedure: The Town Board shall adopt a resolution pursuant to Town Law §64(2) setting forth its determination that the public purpose of farmland preservation has been achieved and therefore the property is no longer needed for a public purpose and shall direct the Land Preservation Committee to market said property at not less than fair market value. The Land Preservation Committee shall solicit offers of purchase in a manner as directed by the Town Board and shall present any offer of purchase of the property to the Town Board. The Town Board shall make all reasonable efforts to sell the entire fee title interest in the acquired agricultural land, including any Reserved Area, to a single purchaser. 4. The Town shall require that any sale shall be subject to an irrevocable development rights easement over the acquired agricultural land, in a -2- form acceptable to the Town Attorney, except for any designated reserve area(s). The Town Board in its sole discretion may direct a method of sale of the subject property which yields the most beneficial terms in the public interest and may take or direct appropriate measures to effectuate a sale, including but not limited to obtaining one or more appraisals and utilizing a real estate broker to identify potential buyers. 6. Upon receipt of an acceptable offer of pumhase of the property, the Town Board shall adopt a resolution setting forth its determination to sell the property. Said resolution shall be subject to permissive referendum pursuant to Town Law §90. 7. When the fee interest is ultimately sold, the proceeds from the sale must first be utilized to service the Farmland Bond debt. Any remaining proceeds following the satisfaction of the bond debt will be deposited in an account designated by the Town Board, for the future purchase of agricultural lands and any acquisition costs associated therewith. B. Lease of Acquired Property. In the event that the Town is unable to obtain an offer of adequate consideration for the purchase of the property within a reasonable time period following acquisition, the Town Board may adopts a resolution, subject to permissive referendum pursuant, authorizing the lease of all or part of the acquired property pending its sale. Any lease acquired property shall be subject to the following terms: The lease shall be for a term not to exceed one (1) year and shall be subject to termination without cause by the Town Board upon reasonable notice. The lease shall require the payment of the rent amount based upon fair market value and shall include the added obligation that Tenant pay all maintenance and carrying costs for the property and any accessory structures during the term of the lease. The Tenant shall provide the Town with proof of general liability insurance with limits of 2 million dollars naming the Town of Southold as additional insured. The proceeds of the rent shall be used to service the farmland bond debt. -3- III. General guidelines for Farmland Bond Acquisitions A. in addition to the permissible uses stated in Sections I and II above, Farmland Bond proceeds may be used for: 1. The purchase of full fee title to agricultural lands when there is no other reasonable alternative manner in which to accomplish the purposes of the Farmland Preservation Program; 2. The purchase of development rights interests in agricultural lands; 3. Costs associated with acquiring agricultural lands or interests, including, but not limited to surveys, home inspections, environmental site assessments, title search and insurance policy, real estate property taxes; 4. Purchasing agricultural property which may include an existing residential dwelling and to allow for one lot containing the existing residential dwelling (Reserve Area) or if no residential dwelling exists, to allow for one Reserve Area consistent with the Zoning District. 5. Fee title to agricultural lands together with any Reserve Area acquired with Farmland Bond Proceeds, may be sold at fair market value. 6. Costs associated with the preparation of plans and specifications and other studies relative to the development and use of the acquired agricultural lands B. Restrictions on Farmland Bond Acquisitions 1. Farmland Bond proceeds may not be used for expenses to maintain the property 2. Farmland Bond proceeds may not be used to make debt service payments 3. Agricultural lands protected with Farmland Bond Proceeds may not be subdivided to create an additional (second) residential lot 4. The proceeds of any sale must first be used to pay debt service on the outstanding bonds. Once the debt is issued, the authority to borrow will be extinguished and the Town may not re-issue the same debt. -4-