Land development rights Boards weigh pros and cons

“The problem is times
 are changing, and what we have to look at is
in the future.”

George Kaye,
North East town supervisor

HARLEM VALLEY — People who live in the Harlem Valley tend to live here because they like the countryside. With its rolling mountains, lush lakes, babbling brooks and acres upon acres of farmland, there’s much for residents to appreciate and enjoy. Many, if one were to ask, want to keep the area rural — or as rural as possible in today’s world of growing land development pressures.

Conservation easements

That’s why organizations like the Dutchess Land Conservancy (DLC) are critical, purchasing development rights to (or acquiring conservation easements for) farms throughout Dutchess and Columbia counties. But what does that mean, exactly?

According to DLC Senior Land Project Manager Karin Roux, when land has its full rights intact, property owners can make their own choices about where to place houses on the property or how much to subdivide — all subject to local zoning. With a conservation easement, goals change.

“The goal is to keep a farm a farm,” she said, “versus it being sold for development purposes. So actually, you’re selling your right to develop your land, so you get paid for those rights.”

DLC, funding and 

the snowball effect

That arrangement has helped preserve nearly 40,000 acres in  primarily Dutchess as well as Columbia counties through the adoption of 390 conservation easements, according to DLC President Becky Thornton.

DLC, which acts in the role of project manager, has been working hard for those results, ever since it was established 31 years ago in 1985.

“I definitely think it’s becoming more popular and as funding becomes more available it’s enabled us to work with more farmers, and as farmers decide to participate in this type of program they talk to each other and encourage others to do the same,” said Thornton.

In fact, in two recent funding rounds in New York state, one round provided $20 million to purchase land development rights, which enabled DLC to apply for four projects.

“All were awarded, so it’s really exciting,” said Thornton. “We were pretty much applying for one or two projects a year because funding was limited, but now two things are happening: the county is participating again and so is the state, and there are federal programs that have money available as well. Then there are private partners, like Scenic Hudson.”

All of that contributes to a snowball effect, where more projects encourage more farmers to seek conservation easements, and more easements are often granted.

The size of a project can vary from farm to farm. And how much farmers can make by selling their land rights depends on the farm’s size and location. Currently, earnings can range from $3,000 an acre to $9,000 an acre. Sometimes, rarely, farmers can earn $10,000 an acre, and that’s just for the easement value.

“The farms still retain a lot of value once the development rights are sold,” said Thornton. “The farmer still owns the land, still pays taxes, still uses it as a farm. He just can’t develop it. And if he wants to sell it he must sell it to somebody to use as a farm.”

“It’s a voluntary process,” added Roux. “It’s the farmer’s choice, and they’re just exercising their own landowner’s rights when they sell their development rights. The farm stay as an agricultural business and it stays on the tax rolls.”

Ramifications

Which is why it seems towns and villages with farms that sell their development rights have little to lose. But there’s a lot to consider, according to North East town Supervisor George Kaye.

“It’s a mixed bag,” he said. “I can understand for large property owners the advantage of doing so. You’re able to maintain open spaces, able to finance your needs for several years to come. The problem arises in future generations — how is that handled — because those development rights have already been sold. It may affect the sales price when future generations fall into the need to sell the land. I have mixed feelings.”

A number of years ago Sunset Ridge Farm in North East sold its development rights. And at the end of last year, the long-standing dairy and cattle farm Duncandale, south of Millerton, also sold its development rights.

Kaye said he understands the appeal, especially now that the state has loosened its purse strings.

“For years it went underfunded by Albany, and now funds are just becoming available again,” he said. “That’s why some people are now seeking to sell their development rights because there are funds available for it. 

“It certainly preserves open space, and for rural areas such as ours to take that away would be taking away something from the area,” added the supervisor. “The problem is times are changing, and what we have to look at is in the future. 

“Property taxes are always an issue, but if you take away too much from those areas where you have the potential of gaining any type of property taxes you get to the point where there’s no way to increase revenue, yet expenses continue to increase,” Kaye said. “As much as I want to see the agricultural community and the conservancies, it also becomes an issue of where do we make up the lost revenue?”

Benefits

But farms, once placed in conservation easements, continue to pay taxes, stressed both Thornton and Roux. That said, the possibility of losing the land to development pressures could change the region’s landscape forever.

“We can look back at how Dutchess County changed over time,” said Thornton. “There’s nothing wrong with development, but we are strong believers of development going in the right place. Seeing in the past, it would go to where it was the easiest, our farmland. 

“High quality farming soils take years and years and years to create,” she added. “There are issues like food security, and more and more people are focused on buying local and healthy. We want to make sure we have those farm soils here to supply fresh food for people who live in the local community. 

“Also, farms are a huge part of our rural heritage, a huge part of the region’s beauty. Farmers are stewards of open views, especially in our part of the county where we have a patchwork of farms and scenic views that also contribute to the tourism industry,” Thornton said. “So they’re something that benefits the public and helps maintain a high quality of life. And if we protect these farms they are guaranteed to stay protected into perpetuity.”

Case in point

At the May 19 Pine Plains Town Board meeting, Roux was present to personally request an endorsement from the board for a conservation easement for Dutchess Views Farm, a horse breeding and boarding facility for New York state-bred racing thoroughbreds, located on Johnny Cake Hollow Road. The 80-acre farm is owned by Michael Lischin and Anya Sheckley.

“We’re very excited to be able to submit this application. It’s a tremendous farm,” Roux said, adding the New York State Department of Ag and Markets requires an endorsement from the Town Board along with the farm’s application. The Dutchess County Ag Board also has to make an endorsement.

Roux explained that having such a farm in Pine Plains encourages other related industries to come to the area. The farm itself spends more than $200,000 buying hay a year. Then there is the need for veterinarians, feed, horse trainers, farm hands, etc. — business activity that can be generated and executed in the town of Pine Plains.

Board sentiments

Town Councilwoman Sarah Jones praised the project.

“I’m very much in favor of doing it,” she said.

Councilman Don Bartles asked if DLC could negotiate with future landowners to sell the easement. It could not.

“No,” Roux said. “And if DLC were to go out of business, it would assign the easement to another organization able to hold easements or another entity, like a municipality. But we’re very well established and expect to be around a long time. It’s extremely difficult to extinguish a conservation easement.”

Bartles then added that the town’s last property reassessment found there were no negative effects of a property with a conservation easement placed on it.

Roux said some towns lower the assessed value of properties with easements, but there’s no requirement to do so.

“Economic hardship is not a reason,” she said. 

When asked why Dutchess Views Farm was a good candidate for selling its development rights, Roux said it is under threat of conversion to second-home estate lots.

“It’s lovely. Gorgeous,” she said. “The views are very attractive and [development] could take the property out of an ag use, and it’s a very important ag use right now.

“Also, it would allow the landowners to continue to invest in the property,” Roux added.

The state would fund the purchase of the farm’s property rights, if it goes through.

Attorney to the Town Warren Replansky told the board its endorsement would be a “discretionary authority,” not binding the town to any agreement. Once the easement is signed, though, he said it’s “impossible to break.”

There was some hesitation by the board. Councilman Gary Cooper said “it wouldn’t bother me to put this off a month.”

But that’s not possible. DLC’s application is due to the state by Monday, June 13; it must have the endorsement in hand before then.

Jones said the land is similar to Ronnybrook Farm, owned by the Osofsky family. They recently got an endorsement from the Town Board to put some of their land in a conservation easement.

“I think this is the ideal conservation easement,” she said of Dutchess Views. 

Town Supervisor Brian Coons suggested further discussing the issue with the rest of the board, and getting approval, or not, before the 13th.

Calls to Coons for the reason behind the wait were not returned by press time. The pair from DLC said they were thinking positively.

Critical mass

Thornton mentioned the close proximity between Dutchess Views and Ronnybrook farms. She said that’s another bonus, as it lends to a critical mass of farming operations.

“It protects the core area of active farms,” she said, adding having critical mass improves farms’ ability to share resources. That’s helpful if equipment breaks down, hay is not delivered on time or for any other unforeseen emergency.

“It also helps other businesses and farms settle in the area,” said Roux, returning to the point that tractor repair, milking line installation and maintenance, veterinarian visits and other farm-related activities like to cluster around farms. “It’s a large base for business.”

And that’s what farming is — a business. Keeping farmland as farmland is DLC’s primary goal, making sure those businesses can continue for many years to come in Dutchess County and beyond.