Conserving Our Natural Heritage

Partnerships are preserving open space and farmland

By: Louise Handelman

When Deborah and Erik-Jan Walson bought their 18th-century farmhouse in Lawrence
eight years ago, they were surrounded by pristine countryside.
Not any more. "It just breaks my heart to see the development," Ms. Walson
said. Nor is the encroachment limited to the land across the road. Developers
have approached them to buy their acreage for subdivision.
That won’t happen for the Walsons, their children or any future owners of the
property. To maintain what Ms. Walson calls "a little paradise," the family
worked with the Delaware & Raritan Greenway a Princeton-based, non-profit land-conservancy
organization to establish a conservation easement for 16 acres of their farmland.
A conservation easement allows a landowner to retain ownership, but limits the
development potential of the property. If the ownership of the property changes,
the easement remains intact, thus preserving the open space.
Preserving open space is a hot topic locally, especially in light of former
Gov. Christie Whitman’s open space initiative, funded by State Question One
in 1998. The goal of the program is to protect 1 million acres of open space
over 10 years.
This statewide plan has, in turn, spurred counties and municipalities to introduce
additional open space initiatives. But governments aren’t the only interested
parties. Non-profits, such as the D & R Greenway, Friends of Princeton Open
Space, Stony Brook-Millstone Watershed Association and The New Jersey Conservation
Foundation, have stepped up their efforts. And they are joined by concerned
private citizens and real estate professionals who view land conservation as
a pressing problem. Through this mutual concern, effective partnerships are
formed.

Photo by Frank Wojciechowski Homeowners Deborah and Erik Jan Walson are happy their childrn will enjoy "a little paradise" since the couple has fought for a conservation easement. From left are Sinclair, 1, Margaux, 5, and Christopher, 4.

Linda Mead, executive director of the D& R Greenway, confirmed the recent surge
of interest in land preservation. In 1999, the group closed on 12 open space
contracts, double the previous year’s figure. In addition, 50 landowners are
presently in some stage of negotiations, with the combined value of these properties
totally more than $10 million.
"More and more people are coming to us, asking, ‘What are our options as private
citizens?’ They care about their land, and many have had offers from developers,"
Ms. Mead said.
The D & R Greenway explains to them the various land protection programs available.
One option, which the Walsons chose, is a conservation easement, where landowners
retain their property, but subdivision and development are prohibited. In the
case of an easement, the D & R Greenway, or another agency, acts as a steward
for the property, and is responsible for monitoring and defending the restrictions
with all future owners. If desired, the property owner can retain development
rights to portions of his property, such as around the house; and he can guarantee
that certain acreage will remain for farm use only.
Alternative land preservation measures involve a shift of ownership. A fee
simple acquisition transfers the deed of ownership through a sale or a gift
to another entity, such as the D & R Greenway, and the land use is restricted.
The land may also be transferred to a public agency to add to a public park
system.

Photo by Mark Czajkowski The D&R Greenway has stepped up efforts to preserve open space, according to Linda Mead, executive director. Sharing the Greenway¹s mission is Michael D. Henderson, superintendant, Morristown National Historical Park.

Another option involves a reserved life estate or remainder interest, where
the property owner deeds the land to a body, such as the D & R Greenway, via
a sale or gift, but retains the use of the property during his or her lifetime.
A final alternative is a bequest. In this case, the property deed is transferred
only at the time of death.
Funding for these purchases comes from a variety of sources. For example, the
D & R Greenway makes purchases through a combination of municipal and county
moneys, private donations and state Green Acres grants. Separate state funding
exists for the preservation of farmland.
All these alternatives, besides guaranteeing the preservation of natural beauty
and resources as well as farmland financially benefit the landowner. In terms
of a conservation easement, landowners realize a significant reduction in property
value for inheritance tax purposes. This savings may mean that future generations
of the family can retain the property, rather than being forced to sell to pay
taxes. It may also mean a lower local property tax.
An outright donation of property or a gift of a conservation easement to the
D & R Greenway, or some other non-profit or government organiza tion,carries
the usual tax savings for charitable gifts for federal and state income taxes,
in addition to estate/inheritance taxes.
Moreover, a so-called "bargain sale" offers further financial advantages. A
bargain sale is a sale at less than fair market value, and this lower cash amount
means a lower capital gains tax. The difference also qualifies as a tax deductible,
charitable contribution, which can be spread out over six years. Added to which,
the individual realizes lowered estate taxes and the elimination of property
taxes.
Ms. Mead believes that these benefits make land preservation a viable financial
alternative to selling property to a developer. "The landowner may get fewer
dollars with a bargain sale, but he gets it quickly and gets the tax deduction.
Therefore, he makes out about as well, especially given the contingency clauses
that may be involved with selling to a developer," she said.
Andy Brown, a Princeton University alumnus and Montgomery resident, has a deep
personal interest in open space through his enjoyment of the outdoors hiking,
swimming, fishing and sailing. And he actively advocates for land preservation
through his membership on the board of The Friends of Princeton Open Space.
"Nobody wants the area to be more citified. They don’t want it denser. They
chose Princeton for a reason," he said.
And as the manager of the land and new homes group at GMAC/Gloria Nilson Realtors,
Mr. Brown knows how to implement his philosophical ideas about green space in
a way that is financially worthwhile.
"I mostly focus on landowners and farm owners specific individuals who can
buy large pieces of land and want to preserve them," Mr. Brown said.
And preserve them they have, as he has helped broker agreements, guaranteeing
their properties will not be subdivided, and instead remain farmland in perpetuity.
Mr. Brown has also personally invested to guarantee open space. He bought 50
acres in Montgomery and is working with the township to ensure that the property
will remain a single-family residence. His motivation for preservation was primarily
philosophical, but, as he added pragmatically, "The idea was not to lose any
money."

A D&R Greenway land preservation map marks the 12 open space regions the group has closed on.

Mr. Brown is positive that the eventual outcome will benefit all and swiftly.
"Municipalities with government (open space) organizations in place can respond
quickly. They have planning in place," he said, referring to his decision to
interact directly with Montgomery officials, in particular, Lori Savron, open
space coordinator and assistant planner. And he is convinced that more communities
need to take this kind of proactive stance: "They need to see it’s in their
financial well-being."
Ms. Savron, who has held her position for a little over a year, said that Montgomery
has an aggressive open space program. In particular, she mentioned the Pathways
Plan, which would establish a pedestrian and bike route linking areas of open
space. "We’re working hard in getting grants, working with Green Acres, with
the county," she said, adding that her office is also busy updating the open-space
element of the Master Plan and managing and monitoring easements.
Ms. Savron praised individuals and non profit groups, as well as other local
governments, for their efforts in land preservation. "Partnerships are key,
working with groups such as The New Jersey Conservation Foundation and with
other municipalities," she said. As an example of a successful partnership,
she mentioned the effort to protect the Sourland Mountains. This venture has
brought together towns such as East Amwell, Hopewell and Montgomery, in addition
to county organizations.
Mr. Brown concurred that joint efforts are the key to future preservation.
"Partnerships are the only way to go. Open space benefits everybody," he said.
Ric Weidel, president of Weidel Realtors, with administrative offices in Pennington,
also emphasized the importance of collaboration among private citizens, non
profits and state agencies in maintaining farmland and green space. He believes
that state and municipal agencies must make funds available to buy development
rights from individuals. Not only will this preserve the land, but in terms
of farming, it will preserve an otherwise vanishing way of life.
Mr. Weidel has implemented such measures on his own farm in Hopewell. "Farming
is difficult. By preserving the land, someone beyond myself can farm it and
preserve a lifestyle for the community," he said. The idea is catching, since
his father and neighbors have followed suit.
In addition, Mr. Weidel pointed out that land preservation has financial benefits
to communities not just the private landowners. "Land preservation is a valuable
estate-planning tool," he said. "But it also helps the community at large by
keeping municipal taxes lower. More development means an increase in taxes,
and also an increase in utility needs, services and schools."
Not that Mr. Weidel is against development all together. What he seeks instead
is balance. And, he believes, the decision regarding this balance ultimately
rests with the property owner. "We are proponents of seeing private ownership
of preserved land so that people in the future can enjoy property," he said.
Ironically, many people don’t associate real estate businesses with a fervent
belief in land preservation, and it’s a misconception that Mr. Weidel would
like to remedy. "Most of the time, preservation-minded people see us as the
enemy. It’s important to realize that real estate professionals such as ourselves
are involved in promoting and living it," he said, referring to land preservation.
That real estate professionals, municipalities, non profits and private citizens
are all getting on the conservation bandwagon speaks to the strength of the
message. Now that state and municipal dollars are there, partnerships are being
formed to leverage these dollars more effectively, and now that private funding
is on the rise, mountains need not be moved literally and figuratively to make
way for housing developments.
But if the time is ripe for open space, and if disparate parties agree that
the concept benefits all, the need for action remains timely. As Mr. Brown stated:
"We need to act now before it becomes a crisis. Whatever people do today, will
be a bargain in 10 years. Land is one of the few things you can’t build again."
Louise Handelman is the former editor of The Packet Magazine. She has written
a series of profiles of local architects.