Baltimore County Land Preservation: A Status Report and Call to Action

Baltimore County Land Preservation: A Status Report and Call to Action Prepared by: Baltimore County Land Trust Alliance October 2014

The Baltimore County Land Trust Alliance (BCLTA) is a voluntary coalition of The Gunpowder Valley Conservancy, Inc.; The Long Green Land Trust; The Manor Conservancy, Inc.; and The Land Preservation Trust, Inc. Collectively the land trusts hold easements on more than a third of the land preserved in the County, and have worked with many other property owners to identify the land preservation program that best suits their needs. Land trusts are the grass root, on the ground partners who have the local contacts needed for a successful land preservation program. BCLTA works to increase the professionalism of Baltimore County s land trusts and to increase the funding for and pace of land preservation BALTIMORE COUNTY LAND TRUST ALLIANCE MISSION STATEMENT: To protect Baltimore County s natural, agricultural, scenic and historic resources for today and generations to come. To increase the quality and pace of land conservation. To improve the effectiveness and professionalism of conservation practitioners. 1

Executive Summary Land Preservation Matters in Baltimore County Baltimore County is a national leader in land preservation. We are well on our way to creating a legacy for future generations. It s a legacy of working farms, forests and open space. The County boasts one of the largest blocks of preserved land adjacent to a major metropolitan area. But much remains to be done. Land Preservation is important for the residents of Baltimore County - Baltimore County residents recognize the importance of land preservation for the economic, environmental and quality of life contributions made by our farms, forests and open spaces. Land Preservation provides recreational opportunities and improves our quality of life. Land Preservation is important for our economy - Preservation is an investment in our agricultural economy and reduces the future cost of government services. The County has been highly successful in leveraging state and federal dollars to match the County contribution to preservation The need is great - State and local funding for Land Preservation has declined in recent years. Policies enacted at the state level and the real estate crisis associated with the Great Recession have led some policy makers to believe that land preservation is not a high priority at this time. Nothing could be farther from the truth. Today there are 8,952 potential lots that could be built on 51,401 acres in the RC-2 zones of the County. Our family farmers are willing and anxious to preserve their farms, but absent a robust and consistent preservation program they have no choice but to sell for development. The time is now - This is the time to invest in land preservation and create a legacy for future generations. An optimistic agricultural community committed to the longterm future of farming combined with reasonable land prices allow us to maximize the effectiveness of our investments. Consumer s demands for local foods, nationwide efforts to combat obesity and our commitment to improving the health of the Chesapeake Bay are among the reasons to make this investment now. Land trusts are essential partners in land preservation Baltimore County is home to five land trusts the Land Preservation Trust Inc., The Gunpowder Valley Conservancy Inc., the Long Green Land Trust, The Manor Conservancy Inc., and The Caves Valley Land Trust Inc. Together these land trusts hold easements on 19,228 acres, or one third of the preserved land in the County. They have accepted a perpetual role for the stewardship of those properties. They assist all landowners interested in preserving their property, helping residents to determine the preservation program that best suits their needs. Working with the expertise and commitment of the local land trusts we have the opportunity to increase the pace and quality of preservation in Baltimore County. 2

Part 1 Why is Land Preservation Important to Baltimore County Today Land Preservation is an Investment in a Strong Agricultural Economy. Large blocks of permanently preserved farmland provide the certainty farmers need to invest in the future of agriculture. Agriculture is a major industry in Baltimore County encompassing traditional and non-traditional operations. The County s rich equestrian heritage is reflected in the fact that it contains the State s largest equine cluster. In 2010 1,540 equine operations had an equine inventory valued at more than $100 million. Baltimore County is home to the second largest wine grape acreage in the state, the fourth largest sheep industry sector, sixth largest vegetable production sector, and the seventh largest forage and beef cattle sectors. Together Baltimore County farms had $68,423,000 in sales in 2007. Specialty farm operations including wineries, creameries, organic farms and bison farms are opening and expanding. Consumers are increasingly demanding local foods. The scope and diversity of Baltimore County s agricultural industry combined with ready markets, excellent soils, and a dedicated and educated agricultural workforce position Baltimore County to be an agricultural powerhouse. Land Preservation is Sound Fiscal Policy. Baltimore County has historically supported policies that encourage the compact development that saves significant public funds. Investments in agricultural preservation make those policies permanent. Laws and policies can change from administration to administration but conservation easements preserve the property in perpetuity. Reduced Cost of Public Services - The cost of development for new schools, roads, water and sewer systems and related infrastructure in Maryland were estimated in the 2012 Plan Maryland Report. Table 1 Percentage Reduction in Infrastructure Costs Due to Implementing Smart Growth Policies % Reduction Associated with Smart Growth Policies Community Roads Miles and Costs 71% General Roadway System Miles and Costs 20% Water and Wastewater Costs 3% School Construction Costs 20% Nitrogen loading total 76% Reducing local road construction costs for future development by 71% and school construction costs by 20% are significant public cost savings for the County. 3

Success in Leveraging State and Federal Funds - Baltimore County has used limited funding strategically to maximize state matching funds received from the Maryland Agricultural Land Preservation Foundation (MALPF). On average 40% of the cost of a MALPF easement is paid for by County funds with a 60% state match. More than $30 million in Maryland Rural Legacy funds have been awarded to Baltimore County s Land Trusts. The County s commitment to the Rural Legacy Program, as evidenced by its willingness to fund a County Rural Legacy Program has been a significant factor in the state s decision to invest so heavily in our Rural Legacy Areas. Optimization Study to Maximize Benefits - Baltimore County has historically funded its own Agricultural Protection Program that buys the best of the best of the County's land resources for the least cost. In 2006 DEPRM teamed with the Conservation Fund to create a land preservation model tied to a Geographic Information Model to select properties that represent the optimum mix of agricultural and natural resource values for the best possible price. Land Preservation is Good Environmental Policy Virtually all farms in Baltimore County are a mixture of prime and productive soils, forests and streams. Land preservation preserves all of these attributes. Water Quality - Maryland farmers have adopted more measures to protect water quality than any other state in the Chesapeake Bay Watershed. Maryland s agricultural community is in compliance with all 2013 milestones for the bay for Nitrogen, Phosphorus and Sediment reduction. From state of the art manure management systems to riparian buffers on streams Baltimore County farmers are working to improve water quality, and meet the Bay milestones. Placing these improvements on preserved farms mean that the farm and the improvements will be protected. Nitrogen Loading - An analysis by the American Farmland Trust has shown that farms in Baltimore County on average load 60% less pounds of nitrogen per acre than development when wastewater and storm water are combined. Maryland Department of Planning has shown that there is an eight-fold difference between new developments in dense areas on sewage treatment plants with advanced nitrogen removal than disbursed on septics. Forest Preservation - Private landowners own the vast majority of woodlands in the County. Many preservation easements require forest management plans. These plans direct a landowner in the best way to manage their forest, Resulting in the continued health of the forests. Forests pay a vital role in water and air quality. 4

Land Preservation is Needed Now - Some Baltimore County officials have stated that the County will no longer purchase any easements in RC- 2 zones. The County has chosen not to fund County Rural Legacy easements despite the availability of funds in the adopted County Budget. The stated reason for this change in policy is that SB 236 will prohibit development in rural Baltimore County and eliminate the need for conservation easements. SB 236 required Baltimore County to adopt a tier system to limit future development that is served by individual septic systems. Tier 4 is the most restrictive designation allowing only minor subdivisions. Much of northern Baltimore County outside of the URDL is designated as Tier 4. SB 236 does not prohibit development. It does not limit minor subdivisions (3 units or less) in any way. It does not apply to existing platted major developments. The study Modeling Residential Development in the Baltimore Metro Region completed by David Newbury of the Department of Agricultural and Resource Economics at the University of Maryland College Park examined the excess-zoned capacity in Baltimore County under the Septic Bill. The study determined that there are 8,952 potential buildable lots in minor subdivisions in RC-2 alone. There are 51,401 acres currently zoned RC-2 with subdivision potential. These lots exist because any RC-2 lot that existed prior to November of 1979 has the right to subdivide one time. Also Baltimore County accepted over 20 grandfathered major subdivisions when they established their septic system map allowing an additional 300+ homes in the rural areas. There are more than 8,900 potential lots that can be developed on 51,401 acres of land in rural Baltimore County with NO CHANGE IN ZONING. SB 236 is not permanent. While preservation is forever, state laws are not. This state mandate could be changed by any future legislature. Evidence HB0106, sponsored by 25 delegates this past session, to repeal the act. Additionally, SB 236 allows County s to seek an exemption to allow additional major subdivisions in Tier IV areas. The Tier IV designation is not intended to apply to all property in perpetuity. Only conservation easements are designed to outlive a specific permitting or regulatory requirement. When agricultural easement programs and local planning policies work together in a mutually- reinforcing fashion, they advance the cause of effective farmland protection as well as the related public goals of efficient land use, wise use of funds and political accountability." (American Farmland Trust). 5

Part 2 What has been accomplished to date in Baltimore County Land Preservation and What Role do Local Land Trusts Play Baltimore County Land Preservation Progress Baltimore County is one of the top 10 counties in the nation for the total acres of preserved farmland. The County has currently preserved 62,000 acres. Most impressively approximately a third of that total has been through donated easements from landowners who receive a fraction of the value of the donation in income tax benefits. Additionally the County has leveraged its purchased easements and its contribution to MALPF easements (approximately 40% of the MALPF payment) over the years. As a result, approximately 1/3 of the total acres have been preserved using County funds, 1/3 using state funds and 1/3 are donated easements. Land trusts are largely responsible for the success of the Maryland Rural Legacy Program and for volume of donated easement. They also work with landowners interested in the MALPF or Baltimore County purchased easement programs. Figure 1 - Total Baltimore County Acres Preserved by Program Baltimore County Land Trusts Baltimore County is home to 5 land trusts that work to preserve the farmland, forests, historic and natural areas of the county. These land trusts are The Caves Valley Land Trust Inc., The Gunpowder Valley Conservancy Inc., The Long Green Land Trust, The Land Preservation Trust Inc. and The Manor Conservancy Inc. Together the land trusts hold easements on 507 properties protecting 19,228 acres. The land trusts have a perpetual and significant responsibility to steward and enforce these easements. Land preservation is serious business and needs both continuity and professional support to fulfill this responsibility. 6

Figure 2 - Baltimore County Acres Protected by Land Trust The land trusts help property owners determine the best way to preserve their land. They have been highly successful in using all conservation programs in the preservation tool bag. Land Trusts hold easements: Donated to the land trust: When a property owner donates an easement the owner often receives a substantial income tax benefit. It is the job of the land trust to determine if the property has conservation value worthy of protection. Once the easement is placed on the property the land trust assumes the responsibility of monitoring and enforcing the easement in perpetuity. Baltimore County land trusts hold 267 easements protecting 5836 acres with no co-holds. Donated to the land trust and MET: These easements receive both a federal and state income tax credit. The responsibilities for determining the conservation values and stewarding the easements are shared by the land trust and MET. The land trusts in Baltimore County and MET co-hold 102 easements protecting 3,322 acres. 7

Designating these forests and agricultural lands as easements not only preserves Maryland s heritage and working landscapes for future generations, but protects water quality within tributaries that lead to the Chesapeake Bay, Governor Martin O Malley January, 2014 after the Board of Public Works approved the purchase of 2 easements in the Piney Run Watershed Purchased by Baltimore County Rural Legacy: Baltimore County funds a local Rural Legacy Program to compliment the Maryland Rural Legacy Program. All easements purchased under the Baltimore County Rural Legacy program are co-held with the land trust and Baltimore County. There are 36 purchased Rural Legacy Easements protecting 2,898 acres in this program. Rural Legacy Area. Purchased by Maryland Rural Legacy Program: Baltimore County land trusts are the most successful Rural Legacy areas in the State receiving more than $33 million in Rural Legacy grants. These easements are purchased at no cost to the county. Baltimore County includes 5 Rural Legacy Areas; Long Green, Piney Run (administered by LPT), Coastal (administered by Baltimore County but co-held by the Gunpowder Conservancy), Gunpowder and Manor. Map 1 - Baltimore County Rural Legacy Areas Administered by Land Trusts OTHER EASEMENTS Local land trusts also hold a small number of easements purchased by the Baltimore County Agricultural Preservation Program, a sister program to the Maryland Agricultural Land Preservation Program; easements purchased by donations from individuals and private 8

foundations; regulatory easements required as part of the zoning and subdivision process; and easements funded by the Federal Farm and Ranch Preservation Program. Baltimore County property owners are committed to land preservation. Nowhere is this commitment more evident than in the number of donated easements held by the local land trusts. Land Trust Donated No Co-hold Table 2 Acres Held by Land Trusts by Type of Easement Donated Co-held MET Purchased Baltimore County Rural Legacy Purchased Maryland Rural Legacy Other Long Green 266 337 881 139 337 1960 Gunpowder 82 96 660 616 98 1550 LPT 3727 1056 1240 5261 0 11285 Manor 1246 716 117 717 0 2787 Caves 524 1,107 0 0 0 1,631 TOTAL 5845 3,312 2898 6733 435 19,213 Total Table 3 - Number of Easements Held by Land Trusts by Type of Easement Land Trust Donated No Co-hold Donated Co-held MET Purchased Baltimore County Rural Legacy Purchased Maryland Rural Legacy Other Long Green 15 7 12 4 1 39 Gunpowder 6 4 9 10 3 32 LPT 206 41 12 64 0 323 Manor 37 33 3 8 0 81 Caves 2 17 0 0 0 19 TOTAL 266 102 36 86 4 494 Total Current Work: Baltimore County land trusts continue to work with landowners to increase the pace and quality of land preserved in the County. At this time they are working on: Donated Easements - 10 donated easements. These easements range in size from 10 to more than 150 acres. Last year the land trusts worked with property owners to permanently protect 84 acres at no cost to the county. DNR Purchased Easement - 1 easement to be purchased by the Maryland Department of Natural Resources (DNR) under state -side Program Open Space (POS). This is the first time land trusts have worked with the state to use stateside POS funds to purchase an easement. The land trusts are uniquely positioned to assist DNR in identifying properties, and this represents a huge potential to preserve additional property at no cost to the county. This easement is valued at $995,000. Rural Legacy - All 4 areas have pending Rural Legacy Applications into the state. It is anticipated that approximately $1,500,000 in state funding will result from these applications. 9

Monitoring - Continued monitoring responsibilities. To date this year the land trusts have monitored more than 30 easements. Contact with Property Owners Most easement violations occur when new owners purchase the property and are unaware of the terms of the initial easement agreement. A key role of the land trusts is to reach out to new owners and maintain contact with existing owners. Professionalism of Land Trusts Land trusts have accepted the responsibility of stewarding the easements in perpetuity. They need to operate in a professional manner to be sure that they can meet this responsibility. BCLTA is one avenue for the land trusts to obtain professional assistance in easement drafting, stewardship and enforcement. Part 3 What is the Current Status of Funding for Land Preservation The Baltimore County Government has long recognized the importance of the agricultural economy and has taken many measures to support agriculture including complementary zoning, funding the Baltimore County Center for Maryland Agriculture, and establishing a goal of at least 80,000 acres of preserved agricultural land. Recently the dollars budgeted to fund land preservation programs has dropped dramatically, both as an absolute number and in relation to surrounding counties budgets. This unfortunate drop in funding is occurring at the same time as land values have decreased making this the optimum time to purchase easements at minimal cost to the County. Funding History. There are two primary funding sources for the County Land Preservation Funds. The first is the agricultural transfer tax. This is the tax paid when agricultural land is developed. The second source is the amount approved by voters for bond funding. Every other year Capital Project Bond issues are on the ballot. Bonds are not always issued, but the amount approved is used as a basis for county land preservation funding. If the bonds are not issued a corresponding amount of money is allocated from General Funds. Table 4 shows the history of Baltimore County Bond funding from 1996 2012. The County continued its commitment to land preservation through the worst of the recession, but reduced the bond authorization in 2012 to $1,000,000. This is reflected in the adopted 2014 capital budget includes $1,575,000 for funding of easements in FY 2014 and $0 in 2015. This total of $1,575,000 includes $1,000,000 in Capital Bonds and $575,000 in agricultural transfer tax. 10

Table 4 Baltimore County Land Preservation Bond Funding Approved 1996 2012 (in millions) 1996 1998 2000 2002 2004 2006 2008 2010 2012 1 2 3 4 5 6 Voters support for land preservation - Voters support of all bond issues decreased during the recession. Chart 1 shows the support for selected bond issues in Baltimore County. School Construction has always received the greatest support. Economic Development has received the least support. Support for land preservation has actually increased more rapidly than support for either school construction or economic development (see Attachment B). Chart 1 Support for selected bond issues Baltimore County 2006-2012 11

Land Preservation has taken a disproportionate hit in the Capital Budget - The total bond funding for the County has remained relatively stable between 2006 and 2012, approximately $250 million total (for each two year period). However in the same time period the funding for land preservation dropped from $6 million to $1 million and the funding for school construction for was increased from $72.5 million to $148.8 million. Land Preservation has taken a disproportionate hit in the budget. Chart 2 Bond issues Baltimore County 2006-2012 Surrounding Counties Provide Financial Support for Land Preservation: While Baltimore County has reduced the funding for preservation, surrounding jurisdictions have increased or maintained their funding. Baltimore County is devoting by far the smallest percentage of their capital budget of any county in the region. Table 5 compares the percentage of the capital budget devoted to land preservation in surrounding jurisdictions. note; the total capital budget is much larger than the bond funds because of the inclusion of pay-go items and state and federal matches. County Table 5 - Land Preservation Funding Surrounding Counties Property Tax Rate ($ per $100 of assessed value) 2012-2013 Transfer Tax County Transfer Tax Income Projected FY 2014 Land Preservation Budget as Percentage of Transfer Tax 12 Income Tax Rate 2013 % Total Capital Budget FY 2014 Land Preservation Budget FY 2014 % of Capital Budget Baltimore 1.1 1.50% $50,000,000 3.15% 2.83% $732,042,112 $1,575,000 POINT two percent Carroll 1.018 0.00% N/A N/A 3.05% $64,383,128 $2,608,300 4% Harford 1.042 1.00% $5,600,000 117% 3.06% $162,362,865 $6,256,219 3.8% Howard 1.014 1.00% $12,000,000 416% 3.20% $920,800,000 $50,000,000 5.4 % SOURCES : Property Tax Rate Maryland Department of Assessment and Taxation Current Property Tax Rates All other information Counties proposed or adopted FY 2014 budgets available online

Part 4 What can Baltimore County do to Support the County s Preservation Efforts Need for continued funding by Baltimore County The land trust s success in obtaining donated easements and purchased Rural Legacy Easements is due to Baltimore County s historic commitment to provide county funds for its own purchased easement program. While these easements have preserved only 10% of the total land preserved in the county they are essential to leveraging other funding and filling in the void when State or Federal funding is not available. At this time we urge the County to: Restore Funding for the Baltimore County Rural Legacy Program and County Agricultural Preservation Program increase the amount of funding budgeted in the future and spend existing funds. Value the easements based on the approved point system that takes into account the natural resource and agricultural value of the properties. Continue Funding the Baltimore County Land Trust Alliance - Baltimore County has provided funding for the Baltimore County Land Trust Alliance. The Alliance provides support to the Gunpowder Valley Conservancy Inc., the Land Preservation Trust Inc, the Manor Conservancy Inc, and the Long Green Land Trust. Collectively these organizations have been partners with Baltimore County in our efforts to preserve our farms and open space. The current grant specifies that the land trusts need to make additional efforts to become self sufficient, and the indication is that there will be no additional funding when this grant is expended. Work with the Administration to Efficently Spend the Funds Available - Working with property owners to obtain voluntary permanent preservation easements requires trust on both sides of the transaction. It is a blow to the integrity of the land preservation programs when we misrepresent the funding availability to the property owner. In order to conduct accurate and honest negotiations with property owners we need the county to maintain a consistent position regarding the purchase of easements. Baltimore County is a national leader in land preservation. Working with the expertise and commitment of the local land trusts we can increase the pace and quality of land preservation in the County. 13

Land Preservation Important to the County - Important For the County 11-05-1996 Question J Bond for Farmland - $1,000,000 (passed 73%) 11-03-1998 Question I Bond for land preservation projects, open space - $3,000,000 (passed 71%) 11-07-2000 2 year dedicated property tax increase to purchase farmland - $2,000,000 (passed 73%) 11-05-2002 Question J Bond to purchase farmland development rights - $4,500,000 (passed 73%) 11-02-2004 Question H- Bond for agricultural and rural land preservation - $3,777,000 (passed 73%) 11-07-2006 Question H Bond for agricultural and rural land preservation - $6,000,000 (passed 76%) 11-04-2008 Bond for agricultural and rural land preservation - $6,000,000 (passed 68%) 11-02-2010 Question I Bond for agricultural and rural land preservation - $5,000,000 (passed 64%) 11-06-2012 Question H Bond for agricultural and rural land preservation - $1,000,000 passed 68% 14

Baltimore County Land Trust Alliance Ann H. Jones, Executive Director 1114 Shawan Road Cockeysville, MD 21030 annholmesjones@gmail.com 410-690- 8420 15