Easement Purchase
 
Excerpts from Freshwater Wetlands Protection in New Jersey:
A Manual for Local Officials (ANJEC, 2004)

 

 

 

Local government, working on its own, with its environmental commission or with a land trust can purchase areas of land or easements to protect wetlands.

As mentioned earlier, an important first step for preservation involves deciding what lands should be acquired, usually by including them in an open space, greenway, stream corridor, or conservation element of a municipal or county master plan. Another important planning option is designating lands as "reserved for public use" on the master plan or an Official Map, if one exists. (N.J.S.A. 40:55D-44)

 

RESERVING LAND FOR PUBLIC USE

 

This option creates an opportunity for a municipality to find the means to acquire land proposed for development. According to the Municipal Land Use Law (MLUL), if an Official Map designating land as "reserved for public use" is adopted when a de­velopment application is received, the developer must leave "reserved" acreage vacant in the site design. The municipality then has one year to arrange for ac­quisition of the reserved area. This option allows municipalities to take positive action toward pro­tecting areas from encroachment.

 

METHODS OF PURCHASE

 

Funding is available to local governments from both public and private sources.

 

Public Sources. In New Jersey the Green Acres Program for land acquisition offers matching grants and low-interest loans to municipal and county governments, and grants to tax-exempt non-profit organizations that qualify as “charitable conservancies”. To encourage open space acquisition, Green Acres has established planning incentive grants. Governments that have a dedicated source of open space funding, and an approved open space or farmland preservation plan can apply for grants in a manner that is similar to a credit line.  The parcels designated in the approved preservation plan are “pre-screened” so that local government does not have to start from scratch in the application process for each purchase.

 

"All acquisition projects submitted for funding consideration are expected to demonstrate conformance with local, county, and state planning goals and should be part of an on‑going process to create a permanent land‑water open space system with interrelated recreation areas, parks, and conservation areas."

(Green Trust Procedural Guide, NJ. Dept. of Environmental Protection, 1987)

 

Green Acres will also provide grants or loans for purchase of perpetual easements if the proposed acquisition is adjacent and beneficial to public land holdings.

 

Receipt of Green Acres funding places obligations on a municipality to insure that all its existing publicly owned open space is protected. Towns must list all open space on an inventory and cannot sell those areas for other purposes. In certain instances Green Acres will allow an exchange for land of equal environmental value.

 

Municipal and County Open Space Tax

Many New Jersey counties and municipalities have established dedicated open space taxes through public referendum.  The revenues from a municipal open space tax can preserve open space directly, can help with debt service on funds that are borrowed to pay for open space, or can serve as matching grants with other sources.  As of 2003, 20 of new Jersey’s 27 counties and 208 of its 566 municipalities had voter-approved open space taxes.  For more information, refer to A Handbook for Public Financing of Open Space in New Jersey, ANJEC, December 2001.

 

Private Assistance. Private foundations can help municipalities with open space acquisition, especially for the planning phase. A number of private, national, and local foundations provide funding for conservation and preservation purposes.

 

Land trusts can assist local government in acquiring land or easements. Because of their private, non‑profit tax exempt status, land trusts can also accept donations of land or easements, and offer donors potential tax benefits.

Land trusts are established to accomplish specific goals such as land conservation, farmland preservation, or habitat preservation. They can be local, state, or national in their scope of operation.

Working with land trusts offers local government many advantages. Land trusts do not have the same constraints as government, so can act more quickly to purchase land and can hold and manage it until a public agency is able to buy it. As private organizations, they can often work more cooperatively with landowners than government can. More options are available to private land trusts. For example, they can make use of the:

 

-          limited development option, where part of a prop­erty can be developed in order to fund preservation of the remainder;

-          double escrow transaction, where the land trust acts as an intermediary between a private seller and a government agency in a bargain sale (buying land below its market value). Land may be encumbered with a conservation easement during the transaction, and the trust has all its expenses covered by the profit it makes as "middle‑man".