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As you are probably aware, the Countryside Program has for six years been involved in encouraging Conservation Development, which provides a density neutral alternative to the traditional subdivision. In Conservation Development, the same number of homes that would normally be permitted by zoning is rearranged on a site on smaller lots, thereby freeing up land for conservation of open space, natural resources, and historic structures and landscapes. This approach has been found to be very successful in situations where the land is owned by a developer, and where technical issues such as local zoning and wastewater disposal can be resolved.

Lately, however, we have been in the position of assisting landowners with planning before the decision is made to sell to a developer. When a landowner engages in early planning, we find that many more options are available for the future of the land.

One of these options is limited development. In limited development, a less desirable portion of the site is allocated for a small amount of development, providing some income to the landowner. The remainder of the land is placed under conservation easement, granting the landowner the associated estate and income tax benefits as a result. The two often work together to create a realistic financial solution, which also meets family needs for conservation of critical areas of the property.

There are several other benefits that arise from this arrangement. The lots that are created, because they are usually substantially fewer than would be allowed by zoning, can often meet County size requirements for on-site wastewater disposal systems. These lots carry a sizeable sale premium because they are associated with permanent open space. Often, a small number of lots can be developed by the landowner him or herself with limited engineering assistance, eliminating the need for a developer “middleman”. Both benefits help to give the landowner a better development value. From the community’s standpoint, a sizeable piece of open space is retained in perpetuity, while upholding property values. And the impact of the development on the local environment is greatly reduced.

Limited development arrangements provide much flexibility in design and real estate market. For example, a 100-acre property, zoned for three-acre lots, might allow for a standard subdivision of 28 homes. A conservation development arrangement would provide the same 28 homes on 1-1/2 acre lots, leaving at least 50 acres in open space. A limited development approach could instead provide 10 lots on 30 acres, leaving 70 in open space. Another approach, especially in areas where the market is strong for conservation properties, would be to provide two 30-acre “exclusive estate lots”, with 40 in open space. An appraisal analysis often finds that while sale to a developer of course yields the maximum return to the landowner, the combined effect of tax benefits and income in a limited development arrangement can yield a sizeable financial return.

Limited development arrangements can also be very flexible in resolving family needs in estate planning. For example, in a situation where three siblings with differing financial needs must divide up equal shares of a farm, one child could receive a small number of lots to sell, one child could receive the tax benefits from a conservation easement on the remainder, and the third child could receive the remainder of the land, under conservation easement, to continue farming.

As we continue our work on conservation estate planning assistance to landowners, we are learning more about the importance of early planning in the landowner’s decisionmaking process. With the recent receipt of grants from the Cleveland Foundation and the GAR Foundation, we hoping to ensure that as many landowners as possible have access to early planning assistance.