CONSERVATION EASEMENT AS PART OF A

$2.2 MILLION DEC FINEFOR A LARGE

FISH KILL

Result of Lagoon Breach

3,000,000 gallons spilled into the Black River

250,000+ fish killed

Strongly scented tide moved through Watertown

Water supplies shut down

River activities shut down

NYS DEC Actions

$2.2 Million Fine for Fish Kill(250,000 x $10 = $2.2 Million±)

$1.5 Million = Environmental Contribution

$700,000 = Cash or Equivalent

Environmental Contributions

• $180,000 = Fishing Rights, Parking Areas and Paths to Black River

• $1,320,000 = Development Rights

Development Rights

• Lowville Area, Lewis County

• Parent Property = 3,269.98 Ac.

• Flood Plain included 602.90 Ac.

• Base Acres for CE = 2,667.08 Ac.

• Assumed NYS FPP Requirements– Land Valuation Only – Standard NYS FPP Ag CE Terms

Before Appraisal

• Market Study– Frequency of Residential Land Sales– Size Ranges of Sales– Price Ranges for Size Ranges– Patterns of Land Purchases– Potential for Interior Subdivisions

Before Appraisal - HBU

• Multiple Economic Units / Lots (81)

• Size Mix Similar to Results of Market Study

• All Roadfront Lots (no interior roads or utilities)

• Considered Amenities

Before Appraisal - Valuation

• Appraised All EUs as Individual Lots

• Gross Value

• Discounts for Subdivision, Marketing– Used Market Study As Basis

• Net Value of Land

After Appraisal

• Appraised Property as Single EU

• 2,667.08-Ac. Tract of Farmland– Devoid of Development Rights– Ag-Related Development Permitted

• Used Sales Approach

• Surveys of CEs and ACEs

• ICA – Ag Values of Soils + Other Retained Rights

Value of Development Rights

• Difference of Before and After Appraisals

• Total Difference > $1,320,000

• Acreage for AgCE Withdrawn Based on Owner’s Priority– Locations to Retain Development Rights– Deducted Difference of:

• Discounted Value of EUs• Ag “After” Land Value

QUESTIONS?