Lancaster County, Pennsylvania

IV. Conservation Easements -- Sale
V. Right of First Refusal Agreements

IV. Conservation Easements -- Sale

A. Intent.

Lancaster County, through the Agricultural Preserve Board and with the approval of the Lancaster County Board of Commissioners, intends to acquire only perpetual agricultural conservation easements by purchase. Conservation easements may be acquired with County funds from the Agricultural Land Preservation Fund. The County shall be responsible for the monitoring and enforcement of all easements purchased in the County with public funds.

Conservation easements may be acquired only through voluntary sale within established Agricultural Security Areas. Applications for conservation easement sale on qualified land will be received once annually by September 1 and will be evaluated in compliance with Section 14.1(d) (1) (i-iv) of Act 149, as amended, regarding soil quality, likelihood of conversion, proximity to other eased lands, land stewardship, and fair and equitable procedures. An appraisal of appraisals of conservation easement value shall be the sole determinant of the maximum compensable easement value for perpetual easements.

Prior to settlement, the landowner may elect to receive payment in cash at settlement, in installments of principal and interest over a period of up to five years, or in an Installment Purchase Agreement of principal and tax-exempt interest over a period of up to twenty years or a combination of up-front cash and installment payments over time. The value of principal paid in an Installment Purchase Agreement of more than five years must exceed $100,000.00 Bargain sales and the escrow of sale proceeds in a Tax Escrow Account to pay property taxes annually are also options.

B. Description.

A conservation easement is a legally binding document which is filed in the Office of the Recorder of Deeds with the deed of the farm property, restricting its use of agricultural and directly associated uses, and for which compensation is paid. As an easement in gross, restrictions are binding upon the owner and future owners, and run with the land.

C. Conservation Easement Sale Options.

1) Perpetual (Permanent) Easement: This conservation easement is permanent. The value of the easement as appraised is the maximum which can be paid. If a landowner conducts a second appraisal, the maximum value of the easement will depend upon the market values and agricultural values of the two appraisals as defined in Section I.4.

2) Bargain Sale, Federal Income Tax Deduction: Any offer to sell a perpetual easement at a price less than the appraised value may be considered a bargain sale in which the difference between the easement value and the easement sale price may be eligible as a qualified conservation contribution, resulting in a Federal income tax deduction equal to 30% of adjusted gross income annually for a period of up to six years for each property.

3) Tax Escrow Account: The seller may elect to have the Agricultural Preserve Board escrow all or a portion of the proceeds of an easement sale in a property tax escrow account which is an interest bearing account from which disbursements of annual interest are made to the landowner at least 30 days prior to local property tax due dates. All deferred payments must be completed in a 5 year period.

4) Payment Method: Prior to settlement, the seller may elect to receive payment in cash at settlement, in installment payments of principal and interest over a period of up to five years, or in an Installment Purchase Contract of principal and tax exempt interest over a period of up to 20 years, or a combination of up-front cash and installment payments over time. The value of principal paid in an Installment Purchase Contract with tax exempt interest must exceed $100,000.00. The period over which tax exempt interest installments will be made may be specified by the seller prior to settlement, with the interest rate on installments determined by such period.

• A perpetual easement which has been purchased may be reviewed by the Agricultural Preserve Board after 25 years, upon application by the landowner to have the easement extinguished. If the Agricultural Preserve Board (and the State Board if State funds were used in the easement purchase) determines that the land subject to the easement is no longer viable agricultural land, the development rights may be sold, leased, or otherwise encumbered or restricted to the current owner of record of the farmland upon repayment of the original easement purchase price plus the appreciated value of the development rights since the acquisition of the easement by the Agricultural Preserve Board. The appreciated values of the development rights will be determined by appraisal according to Act 149, as amended. The County (and State) will recover interests in the easement through payment as provided for in Act 149, as amended.

D. Minimum Eligibility Criteria.

The following criteria are prerequisite to conservation easement sales:

1) Quality of the Farmland: County program shall consider the quality of the farmland, including USDA-SCS soil classification and productivity. The farmland tract must:

• Be located in an Agricultural Security Area;
• Contain 50% harvested cropland, pasture, or grazing lands;
• Contain 50% of soils in the capability Classes I through IV, as defined by the soil surveys published by the USDA-SCS;
• Farmland tract must be at least ten acres in size. For the sale of an easement involving State money, the farmland tract must be at least 50 acres in size, unless the property is adjacent to a preserved farm or produces a unique high value food crop.

2) Likelihood of Conversion To Non-Farm Use: The County will target easement purchases in Agricultural Security Areas which are under considerable development pressure, and are in close proximity to properties with easement restrictions. In determining the likelihood that a farm will be converted to non-farm use, consideration shall be given to the following factors:

• The development pressures in the Area;
• The financial equilibrium of the farm;
• Suitability for development because of soil capabilities, location, configuration, and access to utilities;
• Pre-existing and perpetual restrictions against development; and
• Location in an area identified by the County Board of the County or Township Comprehensive Plan as desirable for agricultural use.

3) Stewardship of the Land: To determine the extent to which stewardship of the land has been exercised, an applicant farm must demonstrate history of operating under good management practices. The applicant farm:

• May operate under a USDA Natural Resource Conservation Service conservation plan;
• Should not be in violation of any pollution standards.

  4) Planning Map to Guide Easement Purchase: The Agricultural Preserve Board shall prepare a map identifying the important agricultural areas of the County. The scale of the map shall be such that it can be used to locate specific land proposed for easement purchase. The map shall include:

• Designated Agricultural Security Areas;
• Land zoned Effective Agricultural Use;
• Land planned for Agriculture in the County Comprehensive Plan; and
• Prime soils and Farmland of Statewide Importance, SCS Class I, II, and III.
• The Agricultural Preserve board shall encourage the formation of Agricultural Security Areas identified on the map of important agricultural areas of the County.

  5) Procedure For Purchasing Easements: Owners of qualified land may offer to sell a conservation easement by applying to sell before September 1 of each year.

• A separate application shall be required for each farm parcel under separate ownership. The application shall consist of a completed application form, locational maps, a soils report, and a crop report.

6) Application Form: The County will provide an application form. The application form shall ask for the following information:

• Name, address, telephone number of the owner(s) of the property with signatures of all title holders.
• Municipality and County in which the farm is located, and identification of the Agricultural Security Area.
• Total acreage of farm. Number of acres proposed for protection.
• The acreage and types of crops grown on the land proposed for protection.
• Numbers and kinds of livestock on the farm.
• Street location of farm, with directions from the nearest State route.
• Deed reference - book, volume, and page.
• Is there an NRCS Conservation Plan? If so, provide date of Plan.
• Name, address, and telephone number of person to be contacted to view the property.
• Crop Report - The applicant shall provide crop production information for the prior two growing seasons. The report shall be as follows:

Commodity	Area Grown	Yield Per Acre
1.
2.
3.
4.

7) Location Maps:

• A USGS topographical map showing the location of the farm shall be provided.
• A tax map of the farmland proposed for protection, with map reference and tax parcel number clearly indicated shall be provided.
• Palo Alto Zoning Ordinance section 18.55.070, and Chapter 18.83, "Off-Street Parking and Loading Regulations.

  8) Soils Report: A soils report and soils map for the farmland proposed for protection shall be provided, and a table showing the capability class and use of land, as follows:

	Acres Of Cropland	Other	Total Acres
Class I
Class II
Class III
Unique Land
Class IV
Total

Unique land is land other than Class I-IV that is used for the production of specific high value food crops, such as fruits and vegetables. To be evaluated for easement purchase, the unique land must be used for agricultural production of a high value food crop.

The Soils map shall color code soil types as follows:

Class I	=	Green
Class II	=	Yellow
Class III	=	Red
Class IV	=	Blue
Wetlands	=	Cross hatched

9) Evaluation and Ranking Applications:

• The Agricultural Preserve Board shall review each application to determine if it is complete and meets the minimum eligibility criteria.
• The Agricultural Preserve Board shall rank all timely applications, which meet the minimum eligibility criteria, according to the County numerical ranking system.
• The County Board shall then make a determination whether to appraise the farmland tract that is the subject of an application.
• The Farmland Ranking System shall be maintained by the Agricultural Preserve Board, available for public review and based upon the following generalized factors:

• Soils
• Farmland Potential
• Development Potential
• Clustering of Preserved Farms Potential.

 

• The Agricultural Preserve Board shall approve the ranking prior to the disbursement of County funds for appraisals and the purchase of conservation easements. The availability of allocated funds from the Agricultural Land Preservation Fund will be determined.
• Beginning on January 1, 1998, all applications that have been received and accepted by the Agricultural Preserve Board shall be ranked according to the ranking system in the Appendix. Each year all applications will be re-ranked.
• The Agricultural Preserve Board may request a non-profit land conservation organization to acquire an easement for the purpose of transferring the easement to the County or the Commonwealth, or both. The request shall be made in the form of a written Agreement by and among the Agricultural Preserve Board, the County Commissioners, and the non-profit organization. The Agreement shall also state those costs for which the non-profit organization can be reimbursed. The property shall be evaluated according to the Farmland Ranking System before an agreement is finalized. The property in question shall be located in an Agricultural Security Area before the non-profit organization can be reimbursed. Requests to non-profit organizations may occur at any time, but should be limited to urgent situations in which there is a pending sale, bankruptcy, or estate settlement on the property in question.

10) Appraisal:

• Applicants who wish to proceed with an appraisal will post an appraisal deposit of $750.00 with the Agricultural Preserve Board. The deposit is refundable if the applicant accepts an offer less than or equal to appraised value of the easement, and the applicant does not break a Contract of Sale. A deposit will not be refunded if the applicant breaks a Contract of Sale. The deposit is to be held in escrow.
• One or more appraisals shall be conducted on each farm on which an appraisal deposit has been submitted, at the expense of the Agricultural Land Preservation Fund. Applicants who wish to proceed will submit the request form and post an appraisal deposit of $750.00 with the Agricultural Preserve Board. The deposit is refundable if the applicant accepts an offer less than or equal to the appraised value of the easement, or if the applicant accepts an offer that is less than or equal to the difference between the agricultural and non-profit value contained in two appraisals, one conducted by the applicant. The appraisal deposit is to be held in escrow and shall be released upon settlement of the easement. The deposit is not refundable if the applicant rejects the offer of the Agricultural Preserve Board, even if the offer is less than 100% of the appraised easement value. If the applicant accepts an offer and then breaks a Contract of Sale, the applicant shall forfeit the deposit and shall reimburse the Agricultural Preserve Board for the remaining cost of the appraisal.
• Values to be Determined: An appraisal report is an objective report of market facts. For easement purchase, the appraisal report must estimate the market value and the agricultural values. The difference is the easement value.

Both values shall be based primarily on an analysis of comparable sales. If comparable sales data are not available for agricultural value, the County Board, subject to the approval of the State Board, may assign an agricultural value based on crop production.

Buildings or other improvements shall be valued. This value shall appear in the appraisal report.

• Choosing an Appraiser: The Appraiser chosen shall be an independent real estate Appraiser who is qualified to appraise agricultural properties for easement purchase. Appraisers shall be selected by the Agricultural Preserve Board (or by the landowner for a second appraisal) on the basis of experience, expertise, and professional designation.

All appraisals done for the Lancaster County program must be done by a Pennsylvania State Certified General Real Estate Appraiser in accordance with the standards set forth in Act 43 and any future revisions and regulations thereof.

The Appraisal Report: Appraisers shall supply a narrative report which contains the following information and is in the following format:

1. Introduction

• Letter of Transmittal
• Table of Contents
• Certificate of Value
• Summary of Salient Facts and Conclusions
• Purpose of the Appraisal
• Easement Value Definition

2. Description of Property

• Area of Neighborhood Description
• Description of Appraised Property
• Legal Description
• Property Data and Zoning
• Description of Improvements
• Ownership, Encumbrances, Appurtenances
• Photos of Subject Property
• Tax Map of Subject Property
• Sketch of Subject Property
• Location Map
• Soils Map

3. Analyses and Conclusions

• Analysis of Highest and Best Use
• Valuation Methodology: Market Value
• Comparable Sales Data
• Adjustment Grid
• Locational Map of Comparable Sales
• Market Value Estimate
• Valuation Methodology: Agricultural Value
• Comparable Sales Data
• Adjustment Grid
• Agricultural Value
• Easement Value
• Qualifications of the Appraiser

11)Comparable Sales:

Appraisers shall supply information concerning comparable sales as follows:

• At least four comparable sales shall be used for appraisals. If the appraiser cannot obtain sufficient comparable sales data with the same township as the subject, he may use comparable sales from municipalities within the County, after consultation with the County Board. The use of comparable sales which require adjustment of 50% or more is permitted only with the approval of the County Board.
• All comparable sales must be completely described with all pertinent data, i.e., date of sale, purchase price, road frontage in feet, topographical information, soil conditions or any other relevant data. The appraisal must include an analysis comparing the pertinent data for each comparable sale to the subject property.
• The location of each comparable sale used in the appraisal report must be accurately shown on the comparable sales map and sufficiently identified and described as to be easily located.
• For comparable sales used to estimate the farmland value, the appraiser may use sales of land that are confined to agricultural use because of legal restrictions or physical impairments that make the land valuable only for agricultural use. Data may also be gathered from farm real estate markets where farms have no apparent developmental value.
• If comparable sales data are not available for farmland value, the County Board, subject to the approval of the State Board, may assign a farmland value based on crop production or a capitalization of rental income.
• The appraiser shall report whether the subject property has any land use restrictions, public or private, which limit the developmental capability of the land.
• The appraiser shall report whether the subject property is within a flood plain or has any other physical attributes which limit the developmental capability of the land.

  11)Appraising Farms in Effective Agricultural Zones:

Appraisers are advised that, for purposes of this appraisal, agricultural conservation easements are perpetual.

Farms subject to zoning regulations, including effective agricultural zoning which limits residential construction, may be appraised, and easements valued. Since an easement is perpetual, and zoning is subject to change, the element of perpetuity shall be considered for the purposes of an agricultural easement appraisal.

12)Number of Copies: The appraiser shall provide at least one original and two copies of each report to the County Board, each bound with rigid covers.

13)Easement Value and Purchase Price:

Easements may only be purchased in perpetuity. The appraisal report provides the Agricultural Preserve Board with an estimate of the value of the easement purchased in perpetuity, which is the difference between the market value and the farmland value.

• Offers to purchase agricultural easements will be based upon one or more appraisal reports and other factors including but not limited to: the ranking of the property and the value of the easement to the County as determined by the County Agricultural Preserve Board. Lancaster County will not consider an conservation easement for purchase which will use more than $10,000.00 per acres of State funds. Any amount over $10,000.00 per acre will be considered County funds.
• The applicant may, at applicant's expense, retain another independent qualified appraiser to determine the easement value. This appraisal must be completed in accordance with the guidelines set forth herein.
• If the applicant secures an independent appraisal, the easement value shall be the difference between the non-agricultural value and the agricultural value, determined as follows:

1. The agricultural value shall equal the sum of:

• The farmland value determined by the applicant's appraiser; and
• One-half of the difference between the farmland value determined by the applicant's appraiser if the farmland value determined by the Agricultural Preserve Board's appraiser exceeds the farmland value determined by the applicant's appraiser.

2. The non-agricultural value shall equal the sum of:

• The market value determined by the Agricultural Preserve Board's appraiser; and
• One-half of the difference between the market value determined by the applicant's appraiser and market value determined by the Agricultural Preserve Board's appraiser, if the market value determined by the applicant's appraiser exceeds the market value determined by the Agricultural Preserve Board's appraiser.

E. Approval of Easement Purchase By the Agricultural Preserve Board

The Agricultural Preserve Board, in making final funding decisions concerning applications, shall consider the following:

1. Evaluation according to the numerical ranking system;
2. Consistency with County map of priority agricultural areas;
3. Cost relative to total allocations and appropriations;
4. Proximity to other land subject to agricultural easements.

If a farm is approved for easement purchase, the Agricultural Preserve Board, or a representative of the Agricultural Preserve Board, will meet with the applicant to negotiate. Any offer to purchase an easement shall be submitted to the applicant in writing and accompanied by the appraisal report. The offer may be less than or equal to the appraised value of the easement. The boundary description of a property on which an easement offer has been accepted must be accurate to at least one foot of error in closure for every 200 feet in the boundary. Also, the legal description must contain one course and distance referencing a fixed marker to monument of a type commonly placed in the field by a surveyor. If the title search shows an error of more than 1 foot of error for every 200 feet, a new survey shall be done. If a new survey is necessary, the Agricultural Preserve Board shall order and pay for the survey. The new survey will be done to Class A-2 Standards: no more than 1 foot of error for every 10,000 feet in the boundary. If a landowner accepts an offer and a new survey is completed and the landowner then breaks the agreement, the landowner shall reimburse the Agricultural Preserve board for the cost of the survey, and legal costs, including title searches.

If the landowner wishes to withhold a building lot from the easement, the board may reduce the easement price by 10% of the appraised easement value. If the landowner wishes to withhold two building lots from the easement, the Board may reduce the easement by 25% of the appraised easement value. The Board shall not make an offer if the landowner wishes to withhold three or more lots from the easement. If the landowner wishes to withhold a lot on which there is a dwelling, the Board may not reduce the offer from the appraised easement value.

Within 30 days of receipt of a written offer from the County Board an applicant may either:

1. Accept the offer;
2. Reject the offer;
3. Contract for an independent appraisal as set for in I.4. above.

This second appraisal must be submitted to the Agricultural Preserve Board within 120 days of the Board's initial offer to the applicant.

The failure to act within 30 days shall constitute rejection of the offer.

1. If the offer of purchase is accepted, the Agricultural Preserve Board shall prepare a Contract of Sale. The Contract shall specify whether the purchase price is to be paid in cash at settlement, in installments of principal and interest for up to five years, in installments of principal and tax-exempt interest over time, or a combination of up-front cash and installment payments over time. The value of principal paid in installments with tax-exempt interest must exceed $100,000.00. The Contract shall be conditioned upon the approval of the State Board only if State funds are to be used in whole or in part to purchase the easement. Holders of liens, mortgages, or other interests in the property must subordinate their interests before County and/or State funds can be used to purchase an easement on the property. Subordination Agreements or Releases for such interest in the land must be submitted to the Agricultural Preserve Board prior to the scheduling of the settlement date.
2. Settlement shall be scheduled at a time and place convenient to both buyer and seller. At least one day (20 days if County bond proceeds will be used to fund escrow for installment payments) prior to settlement, the seller shall specify the period over which installments shall be paid, with the interest rate on installments determined on that date by the period specified.
3. If circumstances prohibit settlement within six (6) months of acceptance, the Agricultural Preserve Board reserves the right to make null and void the original offer.

F. Requirements of the Agricultural Conservation Easement

• All owners of the subject real estate shall execute a deed conveying the easement.
• The deed shall be in recordable form and contain an accurate legal description setting forth the metes and bounds of the farmland tract subject to the easement.
• For purchases made entirely with State Funds, the Commonwealth of Pennsylvania shall be the sole grantee.
• For purchases made using a combination of State and County funds, the grantees shall be the Commonwealth of Pennsylvania and the County providing the funds under joint ownership as defined in the Act.
• Neither the Commonwealth nor the County may sell, convey, extinguish, lease, encumber, restrict, or otherwise dispose of their interest in the easement without the consent of the other.
• Upon the sale, conveyance, extinguishment, lease, encumbrance, or other disposition of the easement, the Commonwealth and the County shall receive a pro rata share of the proceeds based upon their respective contributions to the purchase price.
• A copy of the deed shall be submitted to the State Board for approval. All instruments and document for the purchase of easements shall be approved by the State Board prior to execution and delivery.
• An easement shall not prevent:
  1. The granting of leases, assignments or other conveyances or the issuing of permits, licenses or other authorization for the exploration, development, storage, or removal of coal by underground mining methods, oil and gas by the owner of the subject land or the owner of the underlying coal by underground methods, oil and gas or the owner of the rights to develop the underlying coal by underground mining methods, oil or gas development or activities incident to the removal or development or activities incident to the removal or development of such minerals;
  2. The granting of rights-of-way by the owner of the subject land in and through the land for the installation of, transportation of, or use of water, sewage, electric, telephone, coal by underground mining methods, gas, oil or oil products lines;
  3. Construction and use of structures on the subject land necessary for agricultural production;
  4. Construction and use of structures on the subject land for the purpose of providing necessary housing for seasonal or full-time employees, or the landowner's principal dwelling provided that only one such structure may be constructed on no more than two acres of the subject land.
• Directly associated uses and defined as customary, supportive and agriculturally compatible uses of farm properties in Lancaster County, Pennsylvania, and are limited to the following:

1. The direct sale to the public of agricultural products produced principally on the farm;
2. Any and all structures contributing to the production, primary processing, direct marketing and storage of agricultural products produced principally on the farm;
3. Structures associated with the production of energy for use principally on the farm including wind, solar, hydroelectric, methane, wood, alcohol fuel, and fossil fuel systems and structures and facilities for the storage and treatment of animal waste;
4. The provision of services or production and sale principally by persons in residence, of agricultural goods, services, supplies and repairs and/or the conduct of traditional trades and the production and sale of home occupation goods, arts and crafts, so long as these uses remain incidental to the agricultural and open space character of the farm and are limited to occupying or adjoining residential and/or principally agricultural structures of the property; limited in site coverage to one-half of one percent of the area of the Property;
5. Structures and facilities associated with irrigation, farm pond impoundment, and soil and water conservation;
6. The accommodation of tourists and visitors within principally family residential and/or agricultural structures of the farm Property otherwise permitted under the law so long as the accommodation of tourists and visitors is undertaken as a part-time or off-season minor or rural enterprise, incidental to the agricultural and open space character of the Property;
7. Other similar uses upon approval by the Lancaster County Agricultural Preserve Board and State Farmland Protection Board.

G. Title Insurance

The County Board shall provide a title report to the State Board upon submission of its recommendation for a purchase of an easement.

• At settlement, the County Board shall provide a title insurance policy issued by a title insurance company authorized to conduct business in the Commonwealth of Pennsylvania by the Pennsylvania Department of Insurance. The cost of such title insurance shall be a cost incident to the easement purchase payable or reimbursable from a County's allocation under the Act.
• At settlement, the County board shall provide an opinion of counsel that the County's obligations to make installment payments of principal and tax-exempt interest over time is legal, valid, and binding, that such payments are a general obligation of the County for which its full faith, credit, and taxing power are pledged, and that interest paid by the County is exempt from federal and Commonwealth of Pennsylvania income taxes.

H. Requirements of the Legal Description

A Class A-2 survey will be required unless the seller can provide a good legal description of the premises. A good legal description is one that accurately defines the perimeter of the property, giving specific courses and distances and angle points, and naming adjacent landowners. If only a portion or a parcel is being protected by easement purchase, a survey is required to establish the boundary of the easement.

I. Statement of Costs

The County Board shall submit a statement of the costs incident to the purchase of the easement to the State Board which may include:

• Easement purchase price.
• County appraisal costs.
• Necessary legal fees for title search, preparation of documents, and attendance at closing.
• Recording fees.
• Survey costs, including a Class A-2 survey.
• Notifications to adjacent landowners.
• Reimbursement to a non-profit land conservation organization which has acquired an easement at the request of the County Board, for the purpose of transferring the easement to the County or the State or both. These costs include easement purchase price, reasonable costs of financing the purchase, appraisal costs, necessary legal costs, recording fees, and survey costs.

Project costs do not include any State or County administrative costs.

The statement of costs shall specify the amount of the State funding requested for the purchase, and the amount of County funds allocated for the purchase.

Summary Report: All conservation easement applications and other documentation shall be done in accordance with the model formats included in the state guidebook and any future revisions thereto. Each recommendation by the County Board submitted to the State Board shall be accompanied by a Summary Report stating the following: (The report shall have the following sections)

1. Description of the farm. Name, location, number of acres, type of farm. Motivation for easement sale.
2. Quality of the farmland. Soil classification, yields, gross income from product sales. How preservation will contribute to the agricultural productivity of the County.
3. Likelihood of conversion to other uses if the easement is not purchased. Discussion of nature and scope of development pressure in the township practices.
4. The nature and scope of conservation practices and best land management practices.
5. Discussion of the purchase price, summarizing the appraisals and negotiations for purchase.
6. How this property compares to other applications, and why this property is recommended.
7. Statement of costs, described in Part IV Section O, above.
8. Certification. The County Board shall certify that the information presented to the State Board is true and correct.
9. Appendix which shall include:
   • Location form.
   • Locational maps.
   • Soils report.
   • Crop report.
   • Evaluation of application.
   • Other relevant documents and information.

J. Change of Ownership

Whenever interest in land subject to an agricultural conservation easement is conveyed or transferred to another person, the deed conveying or transferring such land shall recite in verbatim the language of the easement as set forth in the deed executed in connection with the purchase of the agricultural conservation easement.

The person conveying or transferring land subject to an agricultural conservation easement shall within 30 days of change in ownership notify the County Board and the department of the name and address of the person to whom the subject land was conveyed or transferred and the price per acre or portion thereof received by the landowner from such person.

Notwithstanding any other provisions of law to the contrary, the restrictions set forth in a deed executed in connection with the purchase of an agricultural conservation easement shall be binding on any person to whom subsequent ownership of the land subject to the easement is conveyed or transferred.

K. Public Information

The County Agricultural Preserve Board shall publicize the County program through the publication and dissemination of newsletters, information brochures, annual reports, and press releases, and through public meetings, workshops, and invited presentation.

The County Board shall be subject to the Act of July 3, 1986 (P.L. 338, No. 84), known as the Sunshine Act, and the Act of June 21, 1957 (P.L. 390, No. 212), referred to as the Right-To-Know Law, relating to the inspection and copying of public records.

L. Subdivision Guidelines

For a farm with a conservation easement that involved state funds, subdivision will be permitted subject to the limitations established in Sections 138e.224 and 1238e.225 and other applicable provisions of the Interim Guidelines for Implementation of the Agricultural Area Security Law (25 Pa. Bulletin 5253, November 25, 1995). In most cases, a farm preserved with State funds shall not be subdivided into parcels of less than 50 acres, except no more than two acres may be subdivided for the landowner's principal residence or housing for farm employees.

For a farm with a conservation easement that involved only county funds or was donated to the county or involved county and private funds, the following subdivision regulations shall apply:

• Subdivision Guidelines For Land Subject To An Agricultural Conservation Easement Under The Lancaster County Agricultural Land Preservation Program

Purpose:

The purpose of the Lancaster County Agricultural Preserve Board ("County Board") Subdivision Guidelines are to implement the subdivision provisions of Pennsylvania's "Agricultural Area Security Law" (the "Act") (P.S. S.S. 901-915), as amended, and the Regulations promulgated thereunder by the Pennsylvania Department of Agriculture (the "Regulation"), and to provide for the administration of such Act and Regulations, in conjunction with the present Subdivision Guidelines, as appropriated for Lancaster County, Pennsylvania. The Subdivision Guidelines are intended to preserve as much farmland as possible in integral tracts and to promote viable agricultural enterprises. Special exceptions to the guidelines will be considered by the Board on a case by case basis, depending on the size of the subdivided tract, township zoning, neighborhood characteristics, and other pertinent factors.

General Provisions:

Land subject to an agricultural conservation easement may be subdivided, provided the owner(s) meet(s) the criteria contained in these guidelines. All expenses incurred for such sub-division shall be the sole responsibility of the landowner(s). The burden of proof that any proposed subdivision of land subject to an Agricultural Conservation Easement conforms to and complies with the Act, the Regulations and the present Subdivisions Guidelines shall be upon the applicant(s)/landowners(s).

General Criteria:

The owner(s) of a tract of land subject to an Agricultural Conservation Easement "Property" may subdivide such Property, provided that:

• All farm tracts created by the subdivision are and will remain economically viable for agricultural production, i.e. capable of producing $25,000.00 a year in gross sales of agricultural products; and
• The subdivision is consistent with the Statement of Purpose of the Lancaster County Agricultural Preservation Board Program Guidelines, as amended; and
• The subdivision conforms with County and Municipal planning, zoning and subdivision requirements, and has been reviewed and recommended for approval by the Lancaster County Planning Commission and the appropriate Township Planning Board and the Township Board of Supervisors, pursuant to Pennsylvania's Municipalities Planning Code (Act 170), as amended; and
• If the "Property" is one hundred (100) acres or less, subdivision shall be approved by the County Board only if:
  1. The subdivision involves subdividing an existing dwelling and no more than two (2) acres; and
  2. The remaining land will become a lot add-on to an existing contiguous preserved farm operation.
• If the preserved parent tract is greater than one hundred (100) acres, the subdivision shall be permitted only if:
  1. No new tracts below fifty (50) acres are created and the parent tract remains greater than fifty (50) acres in size; and
  2. The number of subdivided tracts per "Property" does not exceed the number allowed by the following schedule:

• Once a preserved farm has been subdivided, the new parcels and remaining parent parcel may not be further subdivided and the new deeds must reference the prohibition against further subdivision;
• All new parcels and the remaining parent parcel shall continue to be subject to the terms of the original agricultural conservation easement; and
• The subdivision meets the following specific criteria:

Specific Criteria:

The subdivision will not:

1. Cause the reduction of the effectiveness of soil and water conservation projects that have been installed on the land;
2. Eliminate water rights and water access points;

• Fifty percent (50%) of the area in each tract of 50 or more acres resulting from the subdivision must be harvested cropland, orchard, pasture or grazing land.
• Fifty percent (50%) of the soils in each tract of 50 or more acres resulting from the subdivision must be in USDA soil Classes I-IV.
• The owner shall indicate on which subdivided tract the one allowed residential structure may be constructed, if that additional residence has not already been constructed.
• No subdivision of land subject to an easement shall become final until the owner has secured the approval from the 1) Municipality(ies) in which the land is located, 2) The Lancaster Planning Commission, if applicable, and 3) the Lancaster Agricultural Preserve Board.

For Easements Acquired With County or State Funds or Through Donation, the Following Procedures/Requirements Shall Apply:

Landowner(s) shall submit plans for proposed subdivision to the Lancaster County Agricultural Board well in advance of proceeding with detailed subdivision mapping, in order to assure that the subdivision will be consistent with the Act, the Regulations and present Subdivision Guidelines, and so that the landowner(s) can avoid unnecessary expenses. In this regard, landowner(s) is/are advised to carefully consider, prior to the submission of an application for the purchase by the County and/or Commonwealth of the original agricultural conservation easement, the exclusion from the proposed coverage of the easement of any land which the landowner(s) may wish to develop for non-farm purposes in the future.

The applicant(s) shall submit the following information to the Lancaster County Agricultural Preserve Board:

1. A letter of intent signed by the landowner(s) requesting the subdivision review and explaining the reasons for such a subdivision, including a demonstration based on crop and animal production and capacity that the agricultural economic viability of the resulting parcels will not be diminished as a result of the proposed subdivision.
2. Size and soils information for the proposed parcels, which information should be obtained from the Lancaster County Conservation District/Soil Conservation Service Offices.

The applicant(s) shall have the burden of demonstrating, by preponderance of evidence, that the criteria set out in these Subdivision Guidelines, as well as the requirements of the Act and Regulations, have been satisfied. If the applicant fails to do so, the Board shall not approve the application.

Upon receipt of the application, the County Board shall cause to be forwarded written notification thereof to the County Zoning Office, County Planning Office and County Farmland Preservation Office, herein referred to as the "Reviewing Agencies."

Each Reviewing Agency shall have 60 days from receipt of such notification to review, comment and make recommendations on the proposed application to the County Board.

After reviewing the application and the comments and recommendations submitted by the reviewing agencies, the County Board shall approve or reject the application to subdivide within 120 days after the date of its filing unless the time is extended by mutual agreement of the landowner and Reviewing Agencies.

• If the application to subdivide land is approved by the County Board, a copy of the application, along with the comments and recommendations of the Reviewing Agencies, shall be forwarded to the State Board for review and approval or disapproval. When reviewing an application to subdivide land subject to an agricultural conservation easement, the State Board shall consider only whether the application complies with the conditions under which subdivisions are permitted by the approved County program. The State board shall notify the County Board of its decision regarding the application.
• If the application to subdivide is rejected by the County Board, the application shall be returned to the landowner with a written statement of the reasons for such rejection. Within 30 days after the receipt of the statement of rejection, the landowner may appeal the rejection in accordance with 2 Pa. C.C. Ch. 5, Subch. B (relating to practice and procedure of local agencies) and Ch. 7 Subch. B (relating to judicial review of local agency action).

V. Right of First Refusal Agreements

A. Intent.

Lancaster County intends to secure, on a voluntary basis, Right of First Refusal Agreements on qualified farms located in established Agricultural Security Areas. The agreement is intended to provide for the limited possibility of permanent preservation of farm, through County fee-simple acquisition, placement of a perpetual conservation easement and resale as restricted to agricultural use, only if the ownership and use of the farm is jeopardized.

B. Description.

The Right of First Refusal Agreement is an instrument which is recorded with a property deed in the land records and is to be effective concurrent with the ownership of the signer(s) of the agreement and to be renewed by immediate family members who may become successive owners.

In the event that all or a portion of the property may be sold to someone other than an immediate family member or developed or subdivided for non-agricultural purposes, notification by the landowner to the Lancaster County Agricultural Preserve Board will be required. Within 90 days of notification, Lancaster County may exercise the Right of First Refusal by acquiring the property in fee simple at a price which is equal to any bona fide offer plus $1.00 which has been tendered to the landowner or the appraised fair market value if an offer had not been tendered.

C. Minimum Eligibility Requirements.

1) The following criteria are prerequisite to land being eligible for R.F.R. Agreements:

• Land must be located in an established Agricultural Security Area within Lancaster County. Where farm properties are divided by an Agricultural Security Area boundary, the entire property may be considered to meet the criteria.
• The property must be at least ten (10) acres in size and be in agricultural and open space use.
• Sample Right of First Refusal Agreement. (Available upon request).
• Procedures.

  2) Initiation of Agreement: Only a landowner of qualified land in an Agricultural Security Area may initiate a Right of First Refusal Agreement.

  3) Acceptance of Agreement: The Agricultural Preserve Board shall review proposed agreements and make a recommendation for acceptance or rejection to the Lancaster County Board of Commissioners. If accepted, the Board of Commissioners and the Chairman of the Agricultural Preserve Board shall sign the agreement.

  4) Recordation of Agreement: The agreement shall be recorded in the Lancaster County Lands Record. Any cost of recordation will be the responsibility of the Agricultural Preserve Board.

  5) Notification Requirement: The landowner must notify the Agricultural Preserve Board in writing if a bona fide offer is received to purchase all or part of the farm or at least 30 days prior to submitting any development proposal to the Township if the landowner proposes non-agricultural development or subdivision of his farm.

  6) Notification Receipt and Action: Upon receipt of a notification, the Agricultural Preserve Board shall within 60 days:

• Review the notification and circumstances of possible sales or development of the property.
• Determine the extent to which continued agricultural use is jeopardized.
• Determine the availability of funds for purchase.
• Initiate an appraisal of fair market value and agricultural use value of the property if favorable toward exercising the R.F.R. Agreement.

7) Purchase: Within 90 days of notification, a fee-simple purchase of the property shall be subject to an affirmative recommendation by the Agricultural Preserve Board and approval by the Lancaster County Board of Commissioners.

8) Offer to Landowner or Prospective Purchaser: an assignable offer to buy shall be communicated to the landowner or prospective purchaser as the case may be, at a price which exceeds any bona fide offer received by One Dollar ($1.00) or the appraised fair market value, if no offer has been made.

• Lancaster County may assign its purchase rights without limitation.

9) Settlement: Settlement shall be conducted at a time and place which is mutually suitable to the parties.

10) Conservation Easement: Upon settlement, the County shall place and record a conservation easement on the subject property limiting its use in perpetuity to agricultural and directly associated uses.

11) Resale: The property, as restricted, shall be sold at a public sale in the manner prescribed by law. If the Board does not receive a public sale bid or offer, reflecting at least current agricultural use value at a public sale, it may schedule subsequent public sales until a price is received which reflects at least the current agricultural use value.

12) Interim Lease: If the subject property is not sold within a reasonable period, it may be leased for one (1) year. In any event, however, the property must be resold, as restricted, within two (2) years of the purchase by the County and any sale shall not interfere with the terms of the lease.

13) Resale Proceeds: The proceeds from the resale of property shall replenish the Agricultural Land Preservation Fund.

 I. Statement of Purpose
II. Agricultural Security Areas
III. Conservation Easements -- Donations
VI. Purchase and Resale
VII. Agricultural Land Preservation Fund
VIII. Appendix

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