Selectboard Approves $125,000 for Bean Farm
Contingency Reflects Concerns Raised by
Town Treasurer Mary Mead,
by Nancy Wood,
With complete text of October 25 Memo from Treasurer Mary Mead.
November 18, 2010, pages 1,4 & 5.....

At the November 8 meeting, the Selectboard approved the disbursement of $125,000 from the Charlotte Conservation Fund to help conserve the former Norman Bean farm on Hinesburg Road. The request for the funds was from the Charlotte Land Trust, the Vermont Land Trust (VLT) and Clark Hinsdale, who represented the landowner, Nordic Holstein LLC.
The approval was conditional; a trail easement must be granted to the town from VLT within 60 days of the closing of the sale of the conservation easement. There was lengthy discussion about the potential location of a trail and when it would be transferred from VLT to the town. According to Selectboard Chair Charles Russell, the questions asked by the Selectboard and the final contingency related to a public trail reflected the concerns raised in a memo to them on October 25 by Town Treasurer Mary Mead. In particular Mead pointed out that public access, specifically trails, is not included in some parcels conserved using town funds, and in other cases the easements are held by the Vermont Land Trust, not the Town of Charlotte.
Clark Hinsdale said “sometimes the VLT writes pre-approval letters” to guarantee the transfer of a trail easement, and he added that he was glad to do it now or later. He also said he knew that the trail situation was a “sensitive point” and that his intention was for the town to have a trail. He said there are three possible ways to get from the proposed trail site to East Charlotte.
The $125,000 from the Charlotte Conservation Fund is 20% of the $617,300 cost of the conservation project. Other funding sources are $331,300 from the Vermont Housing and Conservation Board (VHCB), $21,000 from the Charlotte Land Trust, $1,000 from landowner funds, and $139,000 difference between the $589,000 appraised value of the easement and the $450,000 that the Hinsdales are accepting for the sale – a contribution of 23%. The VHCB share includes federal funds for farm conservation as well as state property transfer tax revenues. According to the application for the Charlotte funds, “The allocation from the Conservation Fund will go directly to the easement purchase. The fund allocation is essential for the viability of the project.”
The four members of the Selectboard present at the meeting – Jenny Cole, John Owen, Winslow Ladue and Chair Charles Russell – voted to approve the $125,000 from the Conservation Fund for the Bean farm project. Ed Stone was absent.
To date there has been no public discussion by the Selectboard of Meads’s memo, which she said is one of the reasons she released it to the local media for publication. Russell said it would be on a meeting agenda soon, related to the budget, but it hadn’t been discussed yet because he understood that Mead had more information to come. In her memo, which summarized the use of Conservation Funds to that date, Mead said, “I am concerned that the Summary of Projects Funded by the Conservation Fund shows a tendency for projects to be funded without reasonable protections of the interests of Charlotte taxpayers.” She concludes, “I suggest that the Selectboard hold off assessing the taxpayers for more money for this fund until (1) we can figure out a way to get a better return on our investment and (2) until the reserves are spent down in a responsible manner.”
Russell pointed out that the original intent of the Conservation Fund was not to provide public access or trails. He said that in 1996, when the fund was first authorizeby the voters at Town Meeting, there was a motion from the floor that would have required public access on all conserved lands. The motion was voted down.
Frances Foster, who chairs the Charlotte Land Trust board, said, “The focus of the Conservation Fund has historically been the preservation of open space in the form of significant agricultural lands and natural areas. These are the two critical pieces of the fund and the language in the guidelines for the use of the fund matches that of the Town Plan. When the fund was started and when it was renewed in 2007, trail easements were not a significant consideration in terms of the fund use. While trail access is a nice benefit, it is not the main focus of the fund. To my knowledge, there was not even a Trails Committee when the Conservation Fund was started. As we move forward in the use of the fund, perhaps trail access will be a greater consideration.” She added, “I feel that the preservation of significant open space in the Town of Charlotte benefits all Charlotters. Many of us love living in Charlotte because of the beautiful open space, and expenditures from the Conservation Fund have greatly contributed to keeping this land open.”
Below is the full text of Town Treasurer Mary Mead’s October 25 memo to the Selectboard:

Memo: Concerns regarding the Conservation Fund
To: Select Board, Town of Charlotte
From: Mary Mead, Treasurer, Town of Charlotte

Introduction:
As Treasurer I have three fiduciary concerns regarding the Conservation Fund that I feel the Selectboard should address before making a decision on whether and how much the Conservation Fund should be funded in the next tax cycle. My overriding concern is whether the Town of Charlotte is getting a reasonable return for investment on the projects that have already been funded, and therefore, whether the Selectboard is properly appropriating the taxpayers’ money. The second concerns the way in which the projects financed through the Conservation Fund are being presented to the town and managed for the benefit of the taxpayers. The third concerns whether the Town of Charlotte should continue to add to the fund at the present rate given the amount of money presently in the fund.
Background:
On Town Meeting Day in 1996, we voted to “authorize the Selectboard to increase the tax rate by no more than $0.02 for a ten year period to establish a Conservation Fund.” We voted again in 2006, using the same language, to continue for another ten years. In 1997, that $0.02 equated to approximately $65,500, by 2006 it was up to almost $131,000. Now we are up to an annual deposit of approximately $185,000. Currently, the Conservation Fund is approximately $664,000 with another $185,000 to be deposited when taxes are collected in November. The purpose of this fund was to “assist in achieving maximum protection of valued town natural and agricultural resources as identified and prioritized in the Charlotte Town Plan. It is envisioned that Conservation Fund dollars will be combined with other public and private funds to protect locally significant natural resources.” A Conservation Fund Advisory Committee was established by the Selectboard to advise the board on the best use of the Conservation Fund monies. The Advisory Committee is made up of a representative from the Charlotte Land Trust, Recreation Committee and the Conservation Committee. The Advisory Committee created an application for funding that included a property description, a description of the uniqueness of any resources on the land, including wildlife habitat, wetlands, scenic viewsheds, streams, agricultural soils, historic sites, etc. The application also asks for a description of the public benefit to be derived from the project and the future use of the land. This would include any proposed trail easements, agricultural uses, recreational uses, scenic preservation, municipal uses, etc. And it is this “public benefit” piece that seems to be missing.
Since 2002, the Town of Charlotte has invested $607,000 for 10 projects. The following brief Summary of Projects shows three trends that should trouble the Selectboard as they each suggest that the Town may not be getting the benefits the Conservation Fund was designed to yield. First, you can see that the size of the grants from the Conservation Fund have increased both relative to other sources of funding for these projects and in raw terms. Second, increasingly the Conservation Funds have been supporting the transfer of land to private entities (such as the Nature Conservancy) with no legal responsibility to manage that land for the benefit of Charlotte taxpayers. Third, and most important, few of these projects have resulted in increased access to these areas for Charlotte residents. Some of these projects have resulted in decreased access for town residents. Parking access has not been created, promised trails have not been created, and in some cases trails that had previously existed have not been maintained.
Concerns Regarding Management of Conservation Funds
I am concerned that the Summary of Projects Funded by the Conservation Fund shows a tendency for projects to be funded without reasonable protections of the interests of Charlotte taxpayers.
In many cases, the town only gets a limited executory interest in the land in exchange for its money. In some cases, for example, the town has not even reserved “executory interests” in exchange for Conservation Funds. This means that the grantee or receiver of these funds can sell or profit from the lands bought with Charlotte tax money since the town has relinquished any future or present rights. In other cases, the language of the donation is such that it has not bound the grantee (typically VLT or the Nature Conservancy) to create or maintain public access, although there is a “Grant of Trail Easement.”
I am concerned that the sums of money requested seem to be increasing.
I am also concerned that the process for presenting projects appears to be that the discussion with the Selectboard is a request for funding and the details of the legal arrangements between the town and the grantees is not presented at the same time.
Concerns Regarding the Continued Funding of the Conservation Fund at the Present Rate:
As of late November, the Town of Charlotte Conservation Fund will have approximately $850,000. I suggest that the Selectboard hold off assessing the taxpayers for more money for this fund until (1) we can figure out a way to get a better return on our investment and (2) until the reserves are spent down in a responsible manner.

Summary of Projects Funded by the Charlotte Conservation Fund:
As part of my duties as a Treasurer I have begun an unofficial audit of how the Conservation Funds have been used since 2002. I have based this on information available through public documents. The results appear below. This is only a partial and preliminary summary and is meant to generate discussion and to reveal areas of further inquiry. These discussions may be to look into the change in taxes accruing to the town from these projects, a review of the benefits promised to the actual state of the project and a review of the process the Advisory Committee uses to evaluate the contracts it makes with the grantees of the Conservation Fund.
Galbreath Property:
April 2002 - Galbreath sells 25.34 acres on east side of Route 7 to Vermont Land Trust, sale price is $70,000 (assessed value is $50,400).
November 2002 - VLT transfers Grant of Development Rights to Champlain Valley Greenbelt Alliance.
December 2002 - VLT sells 25.34 acres to town for $30,000.
Pierce Property:
October 2002 - Pierce sells Grant of Development Rights to VLT for $380,000, for a total of 170 acres; 72 acres are in Charlotte. VLT transfers Grant of Executory Interest to the development rights to town for $30,000. Pierce sells farm to Roland Ayers (170 acres) for $173,560.
Johnson Property:
June 2003 - Johnson sells Grant of Development Rights to Charlotte.
Land Trust on 26.2 ac, total payment to Johnson is $80,000, of which the Town pays $32,500 directly to Johnson - there is no access, no executory interest.
Knowles Property:
October 2003 - Knowles sells development rights on 97 acres to VLT for $348,900 and a trail easement to VLT for $26,600. The language in the trail easement document discusses a “corridor” along the side of Ferry Road- map is on file at VLT stewardship office in Montpelier: “Holder of trail easement has the right, but not the obligation, to construct a trail.” There is no trail, holder is VLT. Town pays $10,000 for Grant of Executory Interest in the development rights.
DeVos Property:
March 2004 - DeVos sells development rights to VLT for $485,000 on 190 acres total, 70 acres in Charlotte. Grant of Executory Interest in development rights of the 70 acres to town from VLT for $30,000.
Hinsdale Property:
July 2004 - Grant of Development Rights 87.9 acres, Route 7, Higbee and Thompson’s Point Roads from Hinsdale to VLT for $430,000. Grant of trail easement from Hinsdale to VLT – corridor along Route 7, north from State Park Road to Higbee Road, map of “corridor” at VLT stewardship office in Montpelier. Holder has the “right” but not the “obligation” to construct a trail, and no trail exists. Town is granted Executory Interest in the development rights and pays $60,000 to VLT.
Titus Farm Property:
September 2005 - Titus Farm on Spear Street sells development rights to VLT for $245,000. Trail easement granted from Titus to VLT -“corridor” along portion of Guinea Road, map of “corridor” at VLT stewardship office. Holder has the “right” but not the “obligation” to construct a trail; there is no trail. Executory interest in development rights granted to town; town pays $49,500 to VLT.
Hinsdale Mt. Philo Road Property:
February 2008 - Hinsdale sells 40-acre lot to Ross at corner of Mt. Philo Road and State Park Road for $460,000 (assessed value is $240,000). Ross sells development rights to Charlotte Land Trust for $150,000. Granting of a trail is discussed; town pays $70,000 to Ross at closing. There is no trail easement in the deed, no executory interest. Seller receives $460,000, buyer spends $240,000.
Burleigh Farm Property:
Jan 2009 - Burleigh sells 123 acres to Nature Conservancy and receives $500,000.
Jan 2009 - Nature Conservancy transfers a Grant of Development Rights, Conservation Restrictions and Public Access Easement to the Vermont Housing and Conservation Board on the 123 acres.
Jan 2009 - VHCB transfers a Grant of Executory Interest in the Development Rights and Restrictions on 123 acres to the town.
February 2009 - Burleigh sells Grant of Development Rights and Conservation Restrictions on 72.5 acres to Vermont Land Trust, Vermont Agency of Agriculture, Food and Markets and the Vermont Housing and Conservation Board for $400,000.
February 2009 - The Vermont Land Trust transfers a Grant of Executory Interest on the Development Rights on 72.5 acres to the Town.
The town pays Vermont Land Trust $135,000 and pays the Nature Conservancy $145,000 for a grand total of $280,000.
The trail exists on a map, although there is no parking area and no signage marking the existence of the trail for the public.
Raven’s Ridge:
May 2010 - Ed Everts and Deborah Davis donate 66.6 acres to the Nature Conservancy. The town gives $15,000 towards the conservation of “Raven’s Ridge,” a 350+ acre parcel in Monkton that abuts the Everts/Davis land in Charlotte, but there is no public access across the Everts/Davis piece to the conserved land in Monkton.
A parking area on the Monkton side is discussed; at this time it does not exist. At the time funding was being requested, this project was advertised as the “creation of a 365-acre natural preserve, open to public access. The preserve will provide wonderful trails, beautiful views of the Adirondacks and Champlain Valley and educational opportunities...” In reality, public access does not include dogs, horseback riding, mountain biking, camping or any kind of motorized vehicles such as ATVs and snowmobiles. Further troubling about this project is the fact that Charlotte taxpayers’ money went to preserve land in a different town.