FEBRUARY 2008 BRIEFING
HIGHLIGHTS
Topic: Conservation Easements on
Public and Private Property
On February 28, 2008, private citizens, government officials, nonprofit representatives, and members of the business community gathered at the College of Lake County's Southlake Educational Center in Vernon Hills to learn about conservation easements, an affordable and frequently used tool for preserving natural areas and open space.
The briefing featured speaker Sarah Surroz. Ms. Surroz is Stewardship and Education Coordinator for the Liberty Prairie Conservancy, a nonprofit land trust dedicated to preserving open space and restoring natural areas in Lake County.
Ms. Surroz opened her presentation with some interesting facts about conservation easements. Over 6.2 million acres are under conservation easement in the United States, including nearly 200,000 acres of private land held in conservation easement by the National Park Service.
There are over 1,600 land trusts currently operating in this country. Some land trusts have a local focus, like the Liberty Prairie Conservancy, some have a regional focus like the Conservation Foundation in Illinois, and some work internationally, like The Nature Conservancy. Most land trusts belong to the Land Trust Alliance, a national nonprofit that provides resources and guidelines for operating a land trust.
Ms. Surroz noted that, with land prices in Lake County, IL at around $85,000-$90,000 per acre, conservation easements present a cost-effective alternative to purchasing land for conservation purposes.
Ms. Surroz explained the financial benefits of conservation easements to the property owner and his/her heirs including AGI deductions, estate tax benefits, and potential property tax benefits (depending on where the property is located). While land trusts can provide property owners with specific information on tax benefits and next steps, all property owners who are planning to put a conservation easement on their land must consult with their attorney and accountant.
When investigating the potential tax benefits of a conservation easement, the property owner will work with a land trust to determine whether the land passes certain tests developed by the IRS. For example, a property under conservation easement must provide one of the following benefits:
- protect natural areas (including watersheds)
- protect a scenic view (that can be seen from public land)
- provide a place for the public to enjoy outdoor recreation (only test that requires public access to private land), or
- preserve property of historic value
Ms. Surroz passed out a sample easement to help the group understand how the agreement works. She reviewed the different types of restrictions that can be included in an easement agreement based on the conservation values of the property and the wishes of the property owner.
When an easement is signed, the land trust will develop a baseline document to serve as a detailed record of the existing state of the property. The document will include maps, photos, and resource inventories (e.g. species lists).
Land trust representatives will visit the site once a year to ensure that the property is being managed within the terms of the conservation easement agreement. If the property owner wishes to exercise any development rights included in the agreement (e.g. erecting a barn) the land trust representatives will also oversee the development to ensure it complies with the easement agreement.
Ms. Surroz took many interesting questions from the audience. She closed the meeting by encouraging participants to stay tuned to the Liberty Prairie Conservancy's (LPC) web site for upcoming easement visits. These are annual visits to private properties on which LPC holds a conservation easement (these type of visits are described in the paragraph above). A limited number of people from the general public can join LPC on these visits. It's a great way to see, first-hand, how a conservation easement works, and to visit beautiful natural areas that are usually off-limits to the public.
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