Lancaster County, Pennsylvania

VI. Purchase and Resale
VII. Agricultural Land Preservation Fund
VIII. Appendix

VI. Purchase and Resale

A. Intent.

Lancaster County may, as a last resort preservation measure, acquire farms located in established Agricultural Security Areas on a competitive basis in the open market. The intent of purchase is to place a perpetual conservation easement, once acquired, and to resell the farm, as restricted, to the highest bidder. The purchase and resale method is intended to be limited to those farms which are offered for sale, on which development pressure or the prospect of a change of the use of the property are very high and whose location and productive capability are such that the property's continued agricultural use is important to the continued viability of the area.

B. Minimum Eligibility Requirements.

The following criteria are prerequisite to land being eligible for purchase and resale:

1. Land must be located in an established Agricultural Security Area within Lancaster County. Where a farm property is divided by an Agricultural Security Area boundary, the entire property may be considered to meet this criteria.
2. The property must be at least ten (10) acres in size and be in agricultural and open space use.

C. Monitoring the Farmland Market.

The Agricultural Preserve Board shall monitor the market availability of qualified land in Agricultural Security Areas through direct contacts with landowners, references from members of the Agricultural Preserve Board, public sale notices, and real estate advertisements.

D. Procedures.

1) Purchase Action: When a qualified farm is on the market, the Agricultural Preserve Board may:

• Review the circumstances of the impending sale of the property.
• Determine the extent to which conversion would contribute to adverse impacts on the viability of the Agricultural Security Area.
• Determine the availability of funds for purchase.
• Initiate an appraisal of fair market value and agricultural use vale of the property, if circumstances are favorable to purchase.

2) Purchase: A decision to pursue 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.

3) Offer to Landowner: An assignable offer to buy shall be communicated to the landowner; a price which may not exceed the appraised fair market value.

• Lancaster County may assign its rights without limitation.

4) Settlement: If the offer is accepted, settlement shall be conducted at a time and place which is mutually suitable to the parties. Settlement costs, taxes, insurance, and any required survey costs shall be divided between buyer and seller as agreed.

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

6) 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 the public sale, it may schedule subsequent public sales until a price is received which reflects at least the current agricultural use value.

7) 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 purchase by the County and any sale shall not interfere with the terms of the lease.

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

VII. Agricultural Land Preservation Fund

A. Intent

There is established a Lancaster County Agricultural Land Preservation Fund, a public capital fund. Fund sources may include both public and private funds. Public expenditures of the fund shall be limited to the costs of agricultural property interests and directly associated costs of the conservation easement program. The Fund may not be utilized for operating expenses of the Agricultural Preserve Board. The Fund is administered by the Lancaster County Agricultural Preserve Board.

B. Fund Sources

1. Public: Public funding sources may include governmental general appropriations, tax revenues, proceeds from the sale of bonds for the purpose of agricultural land preservation, and grants and transfers from governmental sources. Township, Lancaster County, Commonwealth, and Federal funding is encouraged. Township public funds may be earmarked or used exclusively within the respective source Township.
2. Private: Private funding sources may include gifts, donations, bequests, fund raising proceeds, grants and transfers of money, or property from private sources.
3. Interest: The Agricultural Land Preservation Fund shall be invested and interest shall accrue to the Fund, excluding Lancaster County General Fund appropriations.
4. Fund Source Accounts

• Upon receipt of public funds from County, State and/or Federal governmental sources, funds shall be placed in a "Countywide Account".

• Upon receipt of public funds from Township sources, funds shall be placed in a "Targeted Account" to be allocated for expenditure only in the Agricultural Security Area in the respective Township.

• Upon receipt of funds from private sources, funds shall be placed in either the "Countywide Account" or a "Targeted Account" depending upon the declared wishes of the donor. For the purpose of source allocations, Targeted Accounts may include accounts targeted to a designated Agricultural Security Area or Areas or to the Agricultural Security Area of a specified Township. Upon the recommendation of the Lancaster County Agricultural Preserve Board and approval by the Lancaster County Board Of Commissioners, a Targeted Account applicable to the specified farm property within an Agricultural Security Area may be established.

C. Installment Payment Funds

• Intent: Installment payment funds are established at the County in order to encumber and invest committed funds for which recipient landowners have elected annual installment payments for a period which may vary according to the wishes of the landowner.

The full consideration of any transaction for which installment payments of five years or less have been elected shall be placed in the fund, less the amount of any first installment to be paid at settlement. This amount shall be invested and annual installment payments shall include the interest accrued and shall not be returned to County General Funds at the end of each budget year.

• Equal annual installment payments shall be made on or before January 20^th of each year.

A landowner may enter into an Installment Purchase agreement for twenty (20) years at an interest rate to be negotiated between the landowner and the Agricultural Preserve Board. On or before January 20^th, the landowner will receive annual interest payments that are tax exempt. Principal will be paid in one lump sum at the end of twenty (20) years. The landowner will also receive a security representing the Installment Purchase Agreement. The landowner may sell or assign this Agreement.

D. Public Expenditures

All public expenditures from the Lancaster County Agricultural Land Preservation Fund are subject to approval by the Agricultural Preserve Board and the Board of County Commissioners and will be made in accordance with approved disbursement procedures.

• Any purchase of conservation easements using State funds or joint State and County funds shall also be approved by the State Agricultural Land Preservation Board.

• Expenditures shall be limited to interests in qualified agricultural land and associated costs within designated Agricultural Security Areas.

• The annual appropriation to the Lancaster County Agricultural Land Preservation Fund by the County Commissioners shall be available for the calendar year in which the appropriation was made and or the subsequent calendar year.

• The annual allocation of state easement purchase if needed. Funds to Lancaster County shall be available for the calendar year in which the allocation was made and for the subsequent calendar year, if needed.

Information and Sample Forms Available Upon Request

• Brochure of the Ten Most Asked Questions About Farmland Preservation in Lancaster County
• Brochure of Agricultural Security Areas
• Brochure of Conservation Easement Sale
• Brochure of Conservation Easement Donation
• Sample Conservation Easement - Perpetual
• Sample Right of First Refusal Agreement
• Sample Conservation Easement Sale Application
• Sample Subordination Agreement and Release Form
• Financial, Tax and Estate Planning Benefits
• Lancaster County Townships' Effective Agricultural Zoning
• Map, Lancaster County Agricultural Land: Policy Protection and Preservation Status

VIII. Appendix

Lancaster County Agricultural Preserve Board Farmland Ranking System

A. Introduction

The Farmland Ranking System is to be used to rank and prioritize applications for conservation easement sale. Goals and purposes: 1) Preserve farms to help create Urban Growth Boundaries; 2) Preserve farmland in large blocks; and 3) Preserve farms in agricultural areas where none has been preserved. (Note: If an application is within a proposed or official Urban Growth Boundary, the application will not be accepted.)

The following Farmland Ranking System shall take effect on January 1, 1998. Until then, the ranking system approved in August of 1989, as amended, shall be used.

Farmland Ranking System

1. Factors

• Land Evaluation
• Soils: The sum of the acreage in each relative value productivity unit times the acreage in each unit divided by total farm acres. Maximum score is 100. The total score for the soils is multiplied by .4 to represent 40% of the overall LESA score.

Development Potential	Maximum Points
Extent of Non-Agricultural Use in Area	40

Zoning

30

Proximity to Public Sewer and Water Service

20

Amount of Road Frontage		10
Farmland Potential Factors		Maximum Points

Size of Farm

50

Farm Product Sales

20

Stewardship

10

Historic, Scenic, Environmental Qualities

5

Percentage of Harvested Cropland, Pasture and Grazing Land		15
Clustering Potential		Maximum Points

Proximity to a Farm with a Conservation Easement

60

Consistent With County Important Agricultural Areas Map

10

Percentage of Land Adjacent to the Farm in an Agricultural Security Area

10

Proximity to a Farm with an Easement Sale Application		20
Development Potential		Maximum Points

1. Extent of Non-Agricultural Use In Area (1 Mile Radius)

Intensive development adjacent or in the immediate vicinity (10 lots or more/commerical, industrial or residential uses)

40

Intensive or extensive scattered development within ½ mile radius (20 lots or more/commercial, industrial, residential uses)

25

Scattered non-agricultural development within 1 mile radius (20 lots or more)

10

No significant non-agricultural development in area

0

2. Zoning

Residential, commercial, industrial zoning adjacent or within ¼ mile

30

Residential, commercial, industrial zoning ½ mile

15

Agricultural or rural zoning (not effective agricultural zoning) within ½ mile

10

Effective agricultural zoning covering ½ mile radius

0

3. Proximity to Public Sewer and Water Services (Existing and Planned)

Existing service area adjacent or within ¼ mile

20

Existing or planned service area within ½ mile

15

Existing or planned service area within 1 mile

10

No existing or planned service within 1 mile

0

4. Amount of Road Frontage

Extensive developable road frontage (1/4 mile +)

10

Moderate limited road frontage (less than ¼ mile)

5

Severely limited by lack of road frontage (less than 200 feet)		0
Farmland Potential		Maximum Points

1. Size of Farm Proposed for Easement Purchase

100 acres or more

50

75-99 acres

35

40-74 acres

20

Less than 40 acres

0

2. Farm Product Sales

Gross annual receopts fo $65,000 or more

20

Gross annual receipts of $25,000 to $64,999

15

Gross annual receipts of less than $25,000

0

3. Stewardship of the Land

SCS soil and water conservation implemented on a minimum of 50% of the tract

10

No SCS Plan

0

4. Historic, Scenic, Environmental Qualities

Features favorable to preservation (significant but undocumented historic features, moderate localized scenic contributions, and/or limited but recognized environmental features favorable to preservation

5

No significant features

0

5. Percentage of Harvested Cropland, Pasture and Grazing Land

Over 75%

15

50% -74%		5
Clustering Potential		Maximum Points

1. Proximity to a Farm with a Conservation Easement

Adjacent

60

Within ½ mile

30

More than ½ mile

0

2. Consistent with County Important Agricultural Areas Map

Within Area

10

Outside Area

0

3. Percent of Land Adjacent to the Farm in an Agricultural Security Area

50% or more

10

Under 50%

0

4. Proximity to a Farm with an Easement Sale Application

Adjacent

20

Within ½ mile	15
More than ½ mile	0

Final Ranking Score	Maximum Points
Soils
Maximum Score =	100
Adjustment Factor =	x .4
Maximum Ranking Points =	40
Development Potential
Maximum Score =	100
Adjustment Factor =	x .2
Maximum Ranking Points =	20
Farmland Potential
Maximum Score =	100
Adjustment Factor =	x .2
Maximum Ranking Points =	20
Clustering Potential
Maximum Score =	100
Adjustment Factor =	x .2
Maximum Ranking Points =	20
Total Maximum Ranking Points =	100

I. Statement of Purpose
II. Agricultural Security Areas
III. Conservation Easements -- Donations
IV. Conservation Easements -- Sale
V. Right of First Refusal Agreements