The afternoon sunlight softens in the Upper Arkansas valley and the mountains subtly change hues, settling on a deep indigo. Being surrounded by beauty and wildlife is inspiring and precious, and the Land Trust of the Upper Arkansas realizes that now is the time for its best work.
“The clock is ticking,” said Hayden Mellsop, president of the LTUA.
Executive Director Andrew Mackie said LTUA’s priority is keeping large, agricultural areas intact, and in the Upper Arkansas “there aren’t that many left.” Chaffee County doesn’t have the large 3,000-acre or more ranches that a county such as Custer has, he said. Landowners may own that much property but not in contiguous pieces. “We’re trying to protect the most important parcels,” Mackie said en route to Portland to attend the nation’s largest gathering of conservation leaders.
Photo credit: Bill Donavan – Dangerous Circus
“There’s a real concern about how much ranching you can lose before it doesn’t become a viable industry. How many acres can you lose before you say, it isn’t worth it to ranch? We’re in favor of anything that keeps ranches going. It’s private land that provides public benefits.”
The LTUA works with local landowners to create conservation easements. It aims to preserve viewscapes, keep wildlife corridors intact and prevent the landscape from being carved into two-acre parcels from one town to the next. Another priority for the group is to patchwork together pieces of property that the Department of Wildlife identifies as critical winter habitat for elk and other wildlife.
Last year, Keep it Colorado, part of the Colorado Conservation Partnership, designated the Upper Arkansas Valley one of 12 key viewscapes that is largely unspoiled and worthy of protection. The group also upped the ante, saying the direction of growth and development in the valley is critical in the next 10 years. “We’re not trying to stop development,” Mackie explained. “We’re trying to have a balance between development and protection.”
Previously, land trust members worked with whomever approached them. Since Mackie came onboard in April, he sees the group as more proactive. “We are looking at some strategies, at properties that could be important, letting landowners know. My goal is to start doing that.”
Mackie wants to approach these landowners about the options, potentials and benefits to them as well as Colorado residents.
Photo credit: Bill Donavan – Dangerous Circus
Our enchanting valley feeds our bodies and souls, and attracts tourist to enjoy the views, float the Arkansas River and relish our natural resources. Studies have shown that conserving land in communities attracts jobs, enhances property values and saves billions in government costs, according to Land Trust Alliance. It’s certainly memorable and uplifting, watching a playful herd of elk on a snowy day, listening to birdsong under trees at sunrise or tracking a storm as it hovers over the majestic Collegiate Peaks.
Famed architect Frank Lloyd Wright wrote, “Study nature, love nature, stay close to nature. It will never fail you.”
LTUA is talking with 15 to 20 landowners in the valley about easements, with the levels of interest a wide range, Mellsop said. His work with LTUA is personal. He loves to fly-fish, bike, hike and ski. He’s also a realtor, making his living selling houses to clients who will move here, thus impacting our natural resources even more. Teaming with the LTUA is “balancing out my karmic ledger,” he said.
The idea of conservation easements has been slower to take off within the local ranching community compared to Gunnison or Custer counties. A misunderstanding that an easement means the public has access to the property could be one reason. This isn’t the case, unless this additional provision is requested by the landowner.
A new generation of ranchers, however, is committed to their lifestyle and open to the option of conservation easements, Mellsop said. Some like the idea of leaving a legacy for their children and the community. Others would rather avoid costly estate taxes that are assessed at development value rather than agricultural value. Mackie said the estate taxes are “kind of a death blow” to children who want to continue ranching. “Faced with such a tax load, they’re forced to sell,” he said.
A Senate bill to amend the tax code to exempt certain farmland from estate taxes was introduced by former Sen. Ken Salazar, D-Colo., in August of 2007, but didn’t make it out of committee. A House version of the bill also died.
Creating a conservation easement is a serious decision for landowners and a lengthy process. Mackie’s team spends a lot of time explaining the process to interested parties. Landowners must sign a letter of intent, retain legal counsel and hire an accountant. Landowners must then pay for a specialized, and usually costly, appraisal. One local landowner’s appraisal cost $4,000.00, Mellsop said.
This appraisal determines the value of the property after the development rights are removed. The difference in the value of a property today on the open market and the newly appraised value is the donative value. This value is key as the government offers tax credits on this amount. Landowners can sell the tax credits through a broker at about 85 cents on the dollar, Mellsop said. Colorado law allows ranchers to sell tax credits and use the money as they like. Some make improvements on property, others send their kids to college.
Photo credit: Bill Donavan – Dangerous Circus
The next requirement is a baseline survey, which inventories every plant and animal on the property, taking a snapshot in time. If landowners have water rights, these rights must be part of the easement. “This is non-negotiable,” Mellsop said.
The Internal Revenue Service then takes a look at the intention of the landowner and the public benefit. If endangered species are spotted on the land, there’s more of a chance the IRS will give the deal the green light.
Once landowners agree to a conservation easement and sign on the line, there’s no going back. Landowners are making a decision for their children, grandchildren and any future landowners in perpetuity. Land trust members tour the property once a year, ensuring the terms of the easement are met. Low-impact activities, such as guided fishing, are likely permitted. Others, such as motocross riding, are not.
“It’s a great expression of private property rights,” Mackie said. “It’s their choice.”
Disadvantages for ranchers considering easements could be the upfront costs and significant lowering of their land’s worth. If a rancher borrows money from a bank as running capital, the drop in value that a conservation brings could possibly affect this arrangement. Another argument against conservation easements is it lessens the county’s tax base.
Karin Adams, broker/owner of Southwest Centennial Corporation, agrees that land trusts serve a purpose and are sometimes wise choices. She also said, “There’s such a limited amount of land in Chaffee County to develop.”
A developer must set aside 5 percent to 25 percent of land purchased for open space, depending on factors such as whether it’s commercial, she said. More land is likely taken out for a road. “Every time there’s a land trust, it makes for less and less affordable housing,” Adams said.
Chaffee County planner Kim Antonucci said the implications of affordable housing and open space is a fairly complex association that can’t be linked without a “substantial study identifying the relationship.”
Generally, the higher the density, the greater the open space requirement. For the standard development of one unit per two acres, 5 percent of open space is required in Chaffee County. But the open space requirements do not consider the design, which is sometimes figured without long-range planning.
And the design is crucial. Open space can appear as an afterthought in an applicant’s plan, such as a long, thin strip of land in an area that doesn’t do a whole lot of good.
One alternative for a developer is the Rural Open Space Incentive. This is a subdivision that – in exchange for two-thirds open space – the applicant undergoes an expedited review process. Planned Unit Developments are negotiable, but the county may require up to 25 percent of open space.
Three big accomplishments by LTUA to date are the Chubb Park, Moyer Ranch and Game Trail easements. The Chubb Park easement is a key entry piece into the valley on Trout Creek Pass with more than 500 acres protected and limited hunting access allowed. LTUA holds 175 acres of a more than 3,000-acre easement on Moyer Ranch in Lake County that includes senior water rights, fishing access on more than one mile of the Arkansas river, and hunting access to other portions of the ranch.
The Game Trail easements north and west of Buena Vista are a classic example of landowners with smaller parcels coming together with a common vision. It’s a collection of 40- to 80-acre pieces joined to create a larger, protected space, specifically for elk migration and wintering. This easement of 400 to 500 acres allows elk to winter on the valley floor, then move up to higher country, following their traditional migratory patterns.
Ideally, Mellsop would like to see upfront costs minimized for landowners creating conservation easements. He also wants the county to establish a fund to advance landowners, then be reimbursed when the deal closes.
Mellsop encourages anyone who is uncomfortable with the rate of change in our valley to support fund-raisers and back businesses that contribute to LTUA. And, most importantly, he wants to “make people aware they can make a difference.”
LTUA is offering a free workshop on conservation easements on Thursday, Oct. 29, 6 p.m., at the Salida Community Center. For information, please call (719) 539-7700.
Very well written – pros and cons highlighted. Hopefully this will cuase landowners to check into it further.
We put our property north of Buena Vista into a conservation easement about ten years ago. We retained the right to build three more houses, if we or the next owners wish, on the lower portion of it. The appraisal and attorney fees for the easement were very moderate. In return, we have the assurance that the property, which is invaluable wildlife habitat, will never be turned into a creekside condo development, and will have a land trust organization to protect it in perpetuity. We also got a very welcome tax credit for six years from the federal government.
I hope this article will encourage more ranchers in the Valley to consider protecting their land through a conservation easement.