Tuesday, October 30, 2012

Burling on the Uses and Abuses of Property Rights in Saving the Environment

James S. Burling (Pacific Legal Foundation) has posted The Uses and Abuses of Property Rights in Saving the Environment, 1 Brigham-Kanner Property Rights Conference Journal 373 (2012).  The abstract:

While freedom and property may be inseparable, the temptation to sacrifice one or the other to seemingly more critical societal goals is ever present. In the past century, the environmental-related limitations on property have progressed from zoning to advance the social welfare, to utilitarian conservation to preserve the human environment, and more lately to the preservation of the environment for its own sake. With each step, property rights have been impacted further. From the imposition of zoning, to regulatory restrictions on the use of property, and to the mechanism of conservation easements, the control of property by the owners of property has diminished. If freedom and property are truly interrelated, there may be troubling implications on the future of freedom.

Matt Festa

October 30, 2012 in Conferences, Conservation Easements, Environmental Law, Environmentalism, History, Property, Property Rights, Scholarship, Zoning | Permalink | Comments (0) | TrackBack (0)

Wednesday, October 10, 2012

Conservation Easements Again: Golf Courses as Natural Habitat?

Some of the most questionable conservation easements are those covering golf courses. A recent summary judgment ruling from the Tax Court highlights the concerns that arise. RP Golf LLC owns 277 acres in Platte County, Missouri where it has two private golf courses. It placed a conservation easement over the golf courses and claimed a $16,400,000 tax deduction (yep that’s $16.4 million to agree not to subdivide its golf courses).

To qualify for tax deductions, conservation easements must have a qualified “conservation purpose” as defined in § 170(h)(4)(A) of the Internal Revenue Code. RP Golf claims that its conservation easements meet two different purpose requirements: (1) open space and (2) natural habitat.

Deductions are allowed for conservation easements that protect open space where such preservation is pursuant to a clearly delineated Federal, State, or local governmental conservation policy. I.R.C. § 170(h)(4)(A)(iii)(II). Missouri does have a general policy to promote open space, but the policy enables counties and the state park board to acquire property rights to protect open space in counties where the population exceeds 200,000.  Mo. Ann. Stat. § 67.870. As Platte County has fewer than 100,000 residents, the court concluded the golf course conservation easements were not acquired pursuant to a conservation policy.

Deductions are also permissible where conservation easements protect relatively natural habitat of fish, wildlife or plants. Perhaps somewhat audaciously, RP Golf contends that its conservation easements protect “relatively natural habitat.” It is always a challenge to determine what is “natural” these days and the court found that there disputed material facts on this issue (thus making it inappropriate for summary judgment).

This little cases raises a lot of issues regarding what we protect for whom along with what we consider natural in our increasingly developed world.

- Jessie Owley

October 10, 2012 in Caselaw, Conservation Easements, Land Trust, Property, Property Rights | Permalink | Comments (0) | TrackBack (0)

Tuesday, October 9, 2012

The True Value of Conservation Easements

As regular readers know, I am obsessed with fascinated by conservation easements. Lately, I have been particularly intrigued by valuation concerns. Where a landowner donates a conservation easement on her property, she can receive some favorable tax benefits at the local, state, and federal levels. On federal taxes, landowners can deduct the value of the conservation easement from their taxes in the same way they make deductions for other charitable contributions. This, of course, leads to valuation problems. Without an active conservation easement market, it is hard to figure out what their worth should be. Landowners want high appraisals because it increases the tax deductions. The IRS, however, has been increasingly skeptical of these deductions (especially following some 2003 Washington Post exposes about The Nature Conservancy).

This issue seems particularly salient where conservation easements (including historic facade easement) appear simply to replicate existing land use laws. In such cases, there is a strong argument that the value of the conservation easement should be zero and the landowner should not receive a tax break. Indeed, the landowner does not seem to have lost anything in the transaction. She does not change her behavior and property sales may not even be affected. The Tax Court seemed to agree with this reasoning in the recent Foster Case, where the IRS denied a tax deduction for a historic facade easement. The Tax Court upheld the IRS' finding because, inter alia, the restrictions on the property mirrored those already embodied in local law.

It is not uncommon for conservation easements to replicate or even to conflict with local zoning and land use laws. Proponents of conservation easements point out that conservation easements protect against future actions -- futures where land use codes or other laws could change but the restrictions would still remain in place. While I see there point, something still rubs me the wrong way when we pay people to do things they were going to do anyway. How can we figure out the best way to quantify the public benefit here?

- Jessie Owley

 

October 9, 2012 in Conservation Easements, Historic Preservation, Land Trust, Servitudes | Permalink | Comments (0) | TrackBack (0)

Friday, August 17, 2012

Heintzelman, Walsh, & Grzsekowiak on Open Space Referenda

Martin D. Heintzelman (Clarkson--Business), Patrick J. Walsh, and Dustin J. Grzeskowiak (Clarkson--Business) have posted Explaining the Appearance and Success of Open Space Referenda.  The abstract:

To guard against urban sprawl, many communities in the United States have begun enacting policies to preserve open space, often through local voter referenda. New Jersey sponsors such municipal action through the Green Acres Program by providing funding and low interest loans to towns that choose, through a referendum, to increase property taxes and spend the money raised on open space preservation for the purposes of conservation and/or recreation. Understanding which factors contribute to the appearance and success of these measures is important for policy makers and conservation advocates, not only in New Jersey, but across the United States. Although previous literature has examined this issue, this is the first study to account for spatial dependence/spatial autocorrelation and to explore dynamic issues through survival analysis. The traditional two stage model from the literature is extended by incorporating a Bayesian spatial probit for the first stage and a maximum-likelihood spatial error model in the second stage. A Cox – proportional hazard model is used to examine the timing of referenda appearance. Spatial dependence is found in the second stage of the analysis, indicating future studies should account for its influence. There is not strong evidence for spatial dependence or correlation in the first stage. The survival model is found to be a useful complement to the traditional probit analysis of the first stage.

Matt Festa

August 17, 2012 in Conservation Easements, Development, Environmentalism, Local Government, Politics, Property, Scholarship, Sprawl | Permalink | Comments (0) | TrackBack (0)

Friday, July 13, 2012

Korngold on Governmental Conservation Easements

Gerald Korngold has posted a new article on SSRN. Governmental Conservation Easements: A Means to Advance Efficiency, Freedom from Coercion, Flexibility, and Democracy. It already looks to be an important piece for conservation easement junkies like me. Korngold explores conservation easements held by government entities. Depending on the jurisdiction, (1) government entities, (2) land trusts, and (3) tribes can hold conservation easements. I agree with Korngold that the character of the agreements and the concerns surrounding them vary by holder. Most writing on conservation easement has focused on holder (2) – and largely considering donated conservation easements. I have been working this summer on a project examining holder (3) and this article examining holder (1) provides lots of food for thought in framing that work and in considering where and when conservation easements are a good idea. Korngold’s abstract is below:

Over the past twenty-five years, courts and commentators have recognized and upheld conservation easements as an important vehicle to preserve natural and ecologically sensitive land, focusing primarily on easements held by nonprofit organizations (NPOs). During the same period, courts and commentators have supported property rights of owners against governmental land use regulation. This paper maintains that these two independent developments militate for the increased use of consensual conservation easements by governmental entities to achieve public land preservation goals. Governmental conservation easements can realize the benefits of efficiency, consent and free choice, and conservation, while avoiding the coercion implicit in public land use regulation. Moreover, governmental conservation easements have advantages over private easements in some situations: governmental easements may be more easily modified or even terminated to address future changes in conservation values and community needs; as with public land use regulation, governmental easements must be transparent and are subject to democratic, participatory processes that NPOs do not have to follow; and properly functioning governmental ownership may be best able to discern and represent the public interest when making acquisition, modification, and termination decisions about conservation easements. I suggest that both NPO-held conservation easement activities and legitimate public land use regulation are valuable and should continue, but argue that increased use of governmental conservation easements can bring significant benefits as well.

Jessie Owley

July 13, 2012 in Conservation Easements, Scholarship, State Government | Permalink | Comments (0) | TrackBack (0)

Thursday, June 21, 2012

In the Conservation Easement versus Mortgage Battle...

the mortgage wins. Because I am a conservation easement nerd savvy academic, I have Westlaw alert me every time a case mentions the term "conservation easement." For years, this yielded very few cases and I only received alerts once a month or so. Lately, I have been getting them daily. Many of these cases come from the tax court and have to do with valuation issues, one line of cases however explores mortgage subordination.

Conservation easements are nonpossessory interests in land that restrict a landowner's use of her property with a goal of yielding a conservation benefit. Many landowners donate conservation easements (i.e. voluntarily restrict the use of their property). Such donations can yield significant federal tax deductions. For a conservation easement (or historic preservation easement) to qualify for a charitable tax break, the restriction must be perpetual. The IRS, Tax Court, and others have acknowledged that it is well nigh impossible to ensure perpetuity of these things. Instead, the IRS has explained that it will consider a restriction to be perpetual if when the restriction is terminated, the beneficiary gets the proceeds. Basically, when a conservation easement is terminated (for any variety of reasons/methods), the holder of the conservation easement will get cash for its porportionate value. Ideally, the holder then uses that money to protect other lands. If your conservation easement doesn't have a provision detailing this procedure, the IRS (in theory) will disallow your deduction. To ensure that the holder will be able to get the proceeds from a land sale, the conservation easement holder must have primary rights to the proceeds. That is, other restrictions on the land must be subordinated (everyone else gets in line behind the conservation easement holder when proceeds from the sale are passed out). This is why the IRS requires any mortgages on the land to be subordinate to the conservation easement.

There have been a few cases from the tax court exploring this issue and most of them seem to involve historic facade easements. In Kaufman v. Commissioner (134 T.C. 182 Apr. 2010), the Tax Court concluded that a facade easement did not qualify for a tax deduction because it wasn't really perpetual because there was a non-subordinated mortgage encumbering the property. The landowners argued that the lack of subordination did not necessarily mean that the holder would not get its proceeds, but the court didn't care. There was a possibility that the facade easement holder would  not be able to receive the proportionate share.

Last week in Wall v. Commissioner (T.C. Memo. 2012-169, June 2012), the Tax Court reached a similar result even though the conservation easement (again a facade preservation easement) declared that it all exisiting mortgages were subordinate. The court did not take the conservation easement at its word and instead looked at the text of the mortgage subordination. The two banks involved executed documents appearing to subordinate the mortgages (based on the title and opening provisions of the documents), but a closer reading revealed that the banks still were claiming that they had "prior claims" in the event of any foreclosures or eminent domain proceedings. The presumption that the mortgages get first dibs at the moola stems mostly from the fact that they encumbered the land prior to the facade easement.

However, I think the main lesson here is that there is almost a presumption against the restrictions being perpetual and any possibility that the proportionate proceeds won't get paid to the conservation easement holder mean no tax deduction.

Jessica Owley

June 21, 2012 in Caselaw, Conservation Easements, Historic Preservation, Land Trust, Mortgages, Property, Real Estate Transactions, Servitudes | Permalink | Comments (0) | TrackBack (0)

Thursday, May 24, 2012

Nolon on Regulatory Takings, Property Rights, and Sea Level Rise

John R. Nolon (Pace) has posted Regulatory Takings and Property Rights Confront Sea Level Rise: How Do They Roll.  The abstract:

Under the Beach and Shore Preservation Act, the State of Florida is authorized to conduct extraordinarily expensive beach renourishment projects to restore damaged coastal properties. The statute advances the State’s interest in repairing the damage to the coastal ecosystem and economy caused by hurricanes, high winds, and storm surges. The effect of a renourishment project conducted under the statute is to fix the legal boundary of the littoral property owner at an Erosion Control Line. Plaintiffs in Walton County v. Stop the Beach Renourishment, Inc. claimed that the statute took their common law property rights to their boundary, which would, but for the Act, move gradually landward or seaward, maintaining contact with the water. The Florida Supreme Court disagreed and the U.S. Supreme Court granted certiorari in Stop the Beach Renourishment, Inc. v. Florida Department of Environmental Protection to determine whether the state court reinterpreted Florida’s common law as a pretext for upholding the statute against the plaintiffs’ taking claim and, if so, whether that reinterpretation constituted a “judicial taking.” The Court ultimately decided that the Florida court’s interpretation was correct and that there was no regulatory taking. A majority of the Court could not agree as to whether a state court’s interpretation of state common law could constitute a “judicial taking.”

This article discusses greenhouse gas emissions, global warming, sea level rise, and the ferocity of coastal storms associated with climate change. It explores the tension between these movements in nature and the policy of the State of Florida to fix property boundaries, which under common law would move landward as sea level rises. The property rights and title to land of littoral landowners are described and the effect of the Beach and Shore Preservation Act on them discussed. The article contrasts the Florida coastal policy regarding beach and shore protection with the policies and programs of federal, state, and local governments that use other approaches such as accommodating rolling easements, prohibiting shoreline armoring, requiring removal of buildings, purchasing development rights or the land itself, and imposing moratoria on rebuilding after storm events. These may be less expensive and more realistic approaches to long-term coastal erosion and avulsive events and the inevitability of sea level rise as the climate warms and worsens. The article concludes with a recommendation that the framework for federal, state, and local cooperation in coastal management be revisited and strengthened so that the critical resources and knowledge are brought to bear on this critical issue. It suggests that strengthening those ties, rather than radically restructuring the relationship between state and federal courts, is a more productive method of meeting the needs of a changing society.

This is the latest in a series of articles by Prof. Nolon addressing how local land use law can be used to manage climate change, including  The Land Use Stabilization Wedge Strategy: Shifting Ground to Mitigate Climate Change; Land Use for Energy Conservation: A Local Strategy for Climate Change Mitigation; and Managing Climate Change through Biological Sequestration: Open Space Law Redux.  The article also discusses Stop the Beach and our favorite Texas Open Beaches Act "rolling easement" case Severance v. Patterson, and offers some solutions toward an integrated federal-state-local framework for coastal management.

Matt Festa

May 24, 2012 in Beaches, Caselaw, Climate, Coastal Regulation, Conservation Easements, Constitutional Law, Environmental Law, Environmentalism, Federal Government, History, Judicial Review, Local Government, Property Rights, Scholarship, State Government, Supreme Court, Sustainability, Takings, Texas, Water | Permalink | Comments (0) | TrackBack (0)

Friday, May 18, 2012

Jessica Owley is a Land Use Prof (welcome!)

Owley_jessicaWe are absolutely thrilled to welcome Professor Jessica Owley to the Land Use Prof Blog.  She's a law professor at the State University of New York's law school at Buffalo, and with her Ph.D. in environmental science and policy, she is involved in lots of interdisciplinary programs and activities.  Many of you already know her for her cutting-edge scholarship on conservation easements and other topics, or for her helpful involvement in various professional service activities.  She did some outstanding guest-blogging for us last year, but for those of you who may not be familiar with her blogging or her copius scholarship, here's her faculty bio:

Jessica Owley is an Associate Professor at the University at Buffalo Law School where she teaches environmental law, property, and land conservation. She joined the UB Law faculty after serving as assistant professor at Pace Law School from August 2009 to July 2010. She received her PhD in Environmental Science, Policy, and Management from the University of California-Berkeley in 2005, shortly after completing her JD at Berkeley Law in 2004.

Before entering academia, Owley practiced in the Land Use and Environment Law group at Morrison & Foerster in San Francisco. Prior to private practice, Owley clerked for the Honorable Harry Pregerson of the Ninth Circuit Court of Appeals and the Honorable Dean D. Pregerson of the Central District of California. Owley is a member of the California bar and admitted to practice in the Northern, Southern, and Eastern Districts of California and the Ninth Circuit.

Professor Owley's teaching interests are in the areas of property, environmental law, administrative law, and Indian law. While her general research is on land conservation and property rights, her current scholarship focuses on using property tools for conservation in the context of climate change.

The reference in the title is to Jessie's important guest post last year acknowledging that she really is a land use prof.  That epiphany speaks to a larger truth about our field, which is that property, land use, environmental law, and local government law are all part of the same web of related issues for legal analysis, study, and policy conversations.  We're delighted to welcome Prof. Owley on board, and we're looking forward to providing you with an even better forum to keep you interested in the broad array of important issues that constitutes land use.

Matt Festa

May 18, 2012 in Conservation Easements, Environmental Law, Property, Scholarship, Teaching | Permalink | Comments (0) | TrackBack (0)

Monday, May 14, 2012

Owley on Neoliberal Land Conservation and Social Justice

Jessica Owley (Buffalo) has posted Neoliberal Land Conservation and Social Justice, Interational Union for Conservation of Nature Academy of Environmental Law e-Journal, 2012.  The abstract:

Private land conservation programs in North America tend to convey the greatest benefits to those who are already relatively well off in terms of land, wealth, and quality of life. For example, conservation easements — the fastest growing method of land protection in the United States — reward landowners with cash payments and tax breaks. At the same time, these programs tend to focus protected land in areas with low population densities. These benign sounding programs can hamper social services by reducing tax revenues and preventing the development of socially desirable amenities like affordable housing. This article describes the emergence of conservation easements as a land protection mechanism, situating it within the worldwide trend of neoliberal conservation and emergence of new environmental governance systems dominated by private actors. Specifically, this article examines the social justice concerns of conservation easements including questionable use of public funding, inequitable distribution of environmental amenities, and concerns about democracy and accountability. Rethinking conservation easement placement, use, and enforcement along with reducing or removing the tax breaks associated with them would alleviate, but not erase, some of the environmental justice concerns.

I have good reason to think that we might be hearing more from Prof. Owley soon.  Stay tuned!

Matt Festa

May 14, 2012 in Affordable Housing, Conservation Easements, Environmental Justice, Environmental Law, Local Government, Politics, Property, Scholarship | Permalink | Comments (0) | TrackBack (0)

Wednesday, February 22, 2012

Changed Circumstances and Conservation Easements in New Jersey

 

Conservation easements are an important tool in the conservationist’s toolkit—created by state legislation and supported by substantial federal and local tax benefits to encourage private lands to be used for conservation purposes in perpetuity.  Nevertheless, developers have asked courts to release conservation easement based on various legal principles including that of changed circumstances. These perpetual easements have been conveyed voluntarily and the benefits of the conveyance have accrued to the donor, and any successors in interest, which include expansive federal and state tax benefits as well as potential vested zoning rights.

Developers are asking courts to ignore the independent enforceability of the contractual agreement that established these conservation easements.  These easements are contractually created enforceable property rights, independent of any additional consideration. See e.g.  N.J.S.A. 18:B-3. Conservation easements are supported by valid consideration, entirely separate from more traditional municipal grants of development rights.  In exchange for donating the conservation easement to a municipality or charitable land trust, the landowners receive above mentioned substantial tax benefits from both the federal and state governments.  A changed circumstances claim is insufficient to nullify this independently created contract obligation.

In New Jersey the legislature created the statutory backstop for conservation easements in 1979 via the Conservation Restriction and Historic Preservation Restriction Act. Prior to this legislative enactment conservation easements were of dubious enforceability given the common law’s hostility to perpetual negative easements in gross (a.k.a. conservation easements). See Restatement (Third) of Property (Servitudes) § 1.6.  The New Jersey statute established a framework for enactment as well as removal of such encumberments. N.J.S.A. 13:8B-1 et seq. These removal procedures are clearly set forth in the Act; the release of a conservation easement may only be accomplished (1) under the statute; (2) with a public hearing; (3) after providing notice by publication; (4) with the Commissioner of New Jersey Department of Environmental Protection’s approval; (5) if it is in the public interest; and (6) recognizing the negotiated terms of the conservation easement itself.

Despite the independent enforceability of individual conservation easement contracts and various state statutory frameworks, developers are asking courts to be released from these easements—resulting in an economic windfall for the developer.  These developers actively entered into, or purchased the land subject to, conservation easement and its limited provisions for extinguishment. They have also benefitted from generous local and federal tax deductions.  Conservation easements—and the proper channels for their release—must be upheld as tools of conservation as intended by legislatures and traditional contract law and not used as an economic subsidy for developers when circumstances change.

 Susan Kraham

February 22, 2012 in Conservation Easements, Development | Permalink | Comments (1) | TrackBack (0)

Monday, February 20, 2012

The Value of Habitat

If the government condemns land that is a habitat for an endangered or threatened species, should the land be valued differently than a developable piece of property in an active real estate market?

  According to the Supreme Court, the default rule is that “just compensation” for condemned is the “fair market value” of the property. United States v. 50 Acres of Land, 469 U.S. 24, 25 (1984).  With regard to habitat land, however, “fair market value” may be very difficult, if not impossible, to ascertain as habitat land, by definition, has been essentially taken off the market.  Despite this diffuculty, there are valuation techniques available that can be used to value habitat land based on market principles.  For example, as suggested by the Uniform Appraisal Standards for Federal Land Acquisitions, one could (1) determine the theoretical best economic use of the habitat land; and (2) then determine how much land used for that purpose would go on the open market.

But it is hard to see how compensation based on a hypothetical use of the land truly constitutes “just compensation.’’  The purpose of using land for habitat conservation is not to make money, but to protect endangered or threatened species.  If this purpose is taken into account, then it could be argued that the only “just compensation” is to replace the habitat.  Under this replacement theory, if the government takes habitat land, the government would have to provide enough money to purchase replacement habitat property.  This is similar to the statutory remedy provided by CERCLA or Superfund, which allows the government to recover natural resource damages including the cost of replacement.  42 U.S.C. § 9607(f)(1) (2006).

 One can certainly imagine scenarios where replacement costs of habitat land could get very expensive.  For example, the government condemns habitat land located in a desolate area Mohave Desert, market value $100,000, and the only available replacement habitat land is a commercially developable parcel land located adjacent to the Las Vegas Strip that is worth $5,000,000.  Would paying for the replacement land in this instance be “just compensation” or merely a windfall for the property owner?  And what if there is no other adequate replacement habitat land?  Would the government be prohibited from taking the property at all?

In the end, how to best value condemned habitat land will vary dependingon the facts of the situation.  One would hope, however, that the government and the courts do not overlook the unique qualities of habitat land when deciding what comprises “just compensation.”

Susan Kraham

February 20, 2012 in Conservation Easements, Eminent Domain, Land Trust, Property, Takings | Permalink | Comments (1) | TrackBack (0)

Thursday, January 26, 2012

Owley on Exacted Conservation Easements and Enforcement Concerns

Jessica Owley (Buffalo) has posted Exacted Conservation Easements: Emerging Concerns with Enforcement, Probate & Property, Vol. 26, No. 1, p. 51, 2012.  The abstract:

Enforceability of exacted conservation easements is uncertain. Legislators, activists, and academics did not contemplate the proliferation of exacted conservation easements when enacting, advocating for, and writing about state conservation easement statutes. Despite this early oversight, exaction has become one of the most common ways that conservation easements come into being. Enforceability of exacted conservation easements is a threshold question of analysis for the continued use of the tool. Assessing the validity, and thus legal enforceability, of the exacted conservation easements involves examining the state’s conservation-easement statutes and state servitude law as well as the underlying permit scheme.

This article presents a roadmap for investigating the enforceability of exacted conservation easements and makes three suggestions for improvement. First, states should address exaction in their state conservation-easement acts. Second, drafters should increase the precision and detail of the agreements, acknowledging and explaining the nature of the exaction and the underlying permitting law. Third, to clarify the elements and uses of exacted conservation easements to both agencies and citizens, government agencies that use exacted conservation easements should promulgate regulations related to their use. Such regulations should include ensuring that permit issuers retain third-party right of enforcements. This will keep the permitting agency involved even if it is not the holder of the exacted conservation easement.

Uncertainty in enforceability of exacted conservation easements calls into question their use as a method of land conservation. Furthermore, the questionable validity of exacted conservation easements indicates that the permits relying upon such exactions could be ill advised and potentially in jeopardy.

 

This accessible piece builds on some of the concerns outlined in her recent Vermont Law Review piece, The Enforceability of Exacted Conservation Easements.

Matt Festa

January 26, 2012 in Conservation Easements, Environmental Law, Scholarship, Servitudes, State Government, Sustainability | Permalink | Comments (0) | TrackBack (0)

Monday, January 23, 2012

Farmers Take Back Land Slated For Housing

On Morning Edition today, NPR ran a story about farmers who sold land for development repurchasing it for agriculural use.  Here's the summary:

Over the past half-century more than 20 million acres of U.S. farmland were transformed into housing developments. With new home construction all but stopped, farmers in many areas are buying or leasing land once slated for development and planting crops on it.

Jim K.

January 23, 2012 in Agriculture, Conservation Easements, Density, Development, Housing, Mortgage Crisis | Permalink | Comments (1) | TrackBack (0)

Wednesday, January 18, 2012

Nelson Symposium--Digging up some Dirt (Law)

Michael Allan Wolf sends along information about the 11th Robert Nelson Symposium at the University of Florida School of Law: “Digging Up Some Dirt (Law): How Recent Developments in Real Property Law Affect Landowners and Local Governments.”  From the description:

“Digging Up Some Dirt (Law): How Recent Developments in Real Property Law Affect Landowners and Local Governments” will welcome national and state experts to explore the impact on landowners and local governments of recent and proposed changes in the law of adverse possession, eminent domain, easements and mortgages.

Here is a link to the brochure.  You can register at the website.  Looks like a timely and interesting event with an excellent lineup of speakers, including Carol Brown (UNC), Ann Marie Cavazos (FAMU), Alex Johnson (UVA), Jessica Owley (Buffalo), and Professor Wolf (UF).

Matt Festa

January 18, 2012 in Conferences, Conservation Easements, Eminent Domain, Local Government, Mortgages, Scholarship, Servitudes | Permalink | Comments (0) | TrackBack (0)

Thursday, January 12, 2012

Jeff Foxworthy Puts a Conservation Easement on His Farm

Proving that he is, indeed, smarter than a fifth grader, comedian Jeff Foxworthy has placed a conservation easement on 1,000 acres of his farm in west Georgia.  From the article in the Atlanta Journal-Constitution:

“As someone who grew up in Atlanta and watched it explode, I thought, ‘Wouldn’t it be cool if this could be here forever and nobody could develop it? ‘ ” said Foxworthy in a phone interview today from the property, which is based in Harris County between LaGrange and Columbus, about 100 miles south of downtown Atlanta. “It’s my escape. It’s my farm. I can drive through the gate and not have to be Jeff Foxworthy. Just Jeff.”

The land, which Foxworthy purchased in 2003, was being eyed as a possible golf course, he said. It was originally part of Cason Callaway’s 40,000-acre Blue Springs Farm, which was established as an agricultural experiment in the 1940s to promote better farm practices. The easement allows Foxworthy to maintain private property rights and the ability to live on the land. He also receives a tax break.

Foxworthy has spent most of his comedic career helping folks decide whether or not they were rednecks.  It's good to see him putting his success to good use in the land conservation arena.

Jamie Baker Roskie

January 12, 2012 in Agriculture, Conservation Easements, Georgia | Permalink | Comments (0) | TrackBack (0)

Monday, November 14, 2011

Halperin on Incentives for Conservation Easements

Daniel I. Halperin (Harvard) has posted Incentives for Conservation Easements: The Charitable Deduction or a Better Way, Law & Contemporary Problems, Vol. 74, p. 29, Fall 2011.  The abstract:

Therefore, to give greater assurance that the public benefit of the gift will be consistent with the claimed deduction, the donee should be required to certify that it has selected the easement consistent with its mission and it has both the resources to manage and enforce the restriction and a commitment to do so. Moreover, it is inappropriate to measure the charitable deduction by the supposed loss in value to the donor from the imposition of the easement. The focus should be on actual benefit to charity. Therefore, eligibility for a charitable deduction for a conservation easement should be contingent on certification – by a public agency or, possibly, an IRS-accredited land trust – that the public benefit from the contribution is equivalent to the claimed deduction.

In fact, the recent changes to various tax-expenditure programs – placing caps on the expenditures and requiring the participation of expert agencies – indicates that Congress is less enamored than it once was with open-ended tax expenditures administered solely by the Treasury Department. This suggests a cap on tax credits for the contribution of conservation easements. Even if the program is open-ended, Congress should mandate participation of an expert agency such as the Bureau of Land Management, which is more capable of evaluating the public value of an easement.

Matt Festa

November 14, 2011 in Conservation Easements, Environmentalism, Federal Government, Land Trust, Real Estate Transactions, Scholarship | Permalink | Comments (0) | TrackBack (0)

Tuesday, October 4, 2011

Owley on the Enforceability of Exacted Conservation Easements

Jessica Owley (Buffalo), one of our excellent erstwhile guest bloggers, has posted The Enforceability of Exacted Conservation Easements, forthcoming in 36 Vermont Law Review (2011). The abstract:

The use of exacted conservation easements is widespread. Yet, the study of the implications of their use has been minimal. Conservation easements are nonpossessory interests in land restricting a landowner’s ability to use her land in an otherwise permissible way, with the goal of yielding a conservation benefit. Exacted conservation easements arise in permitting contexts where, in exchange for a government benefit, landowners either create conservation easements on their own property or arrange for conservation easements on other land.

To explore the concern associated with the enforceability of exacted conservation easements in a concrete way, this article examines exacted conservation easements in California, demonstrating that despite their frequent use in the state, their enforceability is uncertain. The three California statutes governing conservation easements limit the ability to exact conservation easements. California caselaw, although thin, indicates that courts may be willing to uphold exacted conservation easements even when they conflict with the state statutes. This examination of the California situation highlights California-specific concerns while providing a framework for examining exacted conservation easements in other states.

This article illustrates not only challenges of enforceability that arise with exacted conservation easements, but uncertainty in their fundamental validity and concerns about public accountability. This exploration illustrates that enforceability is not straightforward. This raises significant concerns about using exacted conservation easements to promote conservation goals, calling into question specifically the use of conservation easements as exactions.

This piece adds to Jessica's series of articles that explore the limits of conservation easements from an environmental perspective.

Matt Festa

October 4, 2011 in Conservation Easements, Environmental Law, Environmentalism, Local Government, Property Rights, Scholarship, Servitudes, State Government, Sustainability | Permalink | Comments (0) | TrackBack (0)

Thursday, September 29, 2011

McLaughlin on Conservation Easements and Merger

Nancy McLaughlin (Utah) has made another fine contribution to our understanding of the use of long-term land protection devices with her essay Conservation Easements and the Doctrine of Merger, 77 J. Contemp. Probs ___ (forthcoming 2011).  Here's the abstract:

Conservation easements raise a number of interesting legal issues, not the least of which is whether a conservation easement is automatically extinguished pursuant to the real property law doctrine of merger if its government or nonprofit holder acquires title to the encumbered land. This article explains that merger generally should not occur in such cases because the unity of ownership that is required for the doctrine to apply typically will not be present. This article also explains that extinguishing conservation easements that continue to provide significant benefits to the public through the doctrine of merger would be contrary to the conservation and historic preservation policies that underlie the state enabling statutes and the federal and state easement purchase and tax incentive programs. 

Jim K.

September 29, 2011 in Conservation Easements, Property, Property Rights, Real Estate Transactions, Scholarship | Permalink | Comments (0) | TrackBack (0)

Wednesday, July 20, 2011

Owley & Rissman on Distributed Graduate Seminars

Jessica Owley (University at Buffalo School of Law) and Adena Rissman (Wisconsin-Madison, Dept. of Forest & Wildlife Ecology) have posted Distributed Graduate Seminars: An Interdisciplinary Approach to Studying Land Conservation, forthcoming in the Pace Environmental Law Review (PELR).  The abstract:

Adapting to the many changes associated with climate change is an increasingly important issue and nowhere more so than in efforts to conserve private land. Interdisciplinary distributed graduate seminars conducted in Spring 2011 at six universities investigated whether current land conservation laws and institutions appear up to the task of protecting land in the context of change and avenues for improving the adaptive capacity of such institutions.

Distributed graduate seminars are courses coordinated among multiple universities. They begin with a core of interested faculty who organize graduate students at their universities to collect or analyze dispersed data. This article gives a brief introduction to distributed graduate seminars and then details the experience and insights gained conducting such a seminar for land conservation and climate change. The distributed graduate seminar offers advantages by allowing for the synthesis of diverse data, the integration of multiple disciplinary perspectives, and the person-power enabled by student research. For students, the distributed seminar provides opportunities to engage with a broader academic community, benefit from new perspectives, and contribute in a meaningful way to a large endeavor.

Their seminar is a great idea, and an ambitious way to take advantage of the inherent interdisciplinarity in the land use field.  The paper is part of the forthcoming PELR special issue from the Practically Grounded conference on teaching land use and environmental law.  More to come. 

Matt Festa

July 20, 2011 in Conferences, Conservation Easements, Environmental Law, Scholarship, Teaching | Permalink | Comments (0) | TrackBack (0)

Tuesday, June 28, 2011

Conservation Easement Outlines

For those interested in conservation easements, if you haven't seen Jessica Jay's  work its worth checking out. She is a practitioner who teaches Land Conservation Law at VLS during the summers and gave a great lunch lecture today on "When Perpetual is Not Forever: The Challenge of Changing Conditions, Amendment & Termination of Perpetual Conservation Easements."  There is a lot of ink on this subject and she does a great job keeping up-to-date on how states and the IRS manage and might manage amendments to conservation easements. Here are a couple of her helpful outlines:

Conservation Easements and Tax Benefits Outline

Conservation Easement Drafting Guidance Outline

Kat Garvey

June 28, 2011 in Conservation Easements, Lectures | Permalink | Comments (1) | TrackBack (0)