Rensselaer Land Trust Inc

“SEE NOTE 4”

“NOTE 4 LAND HELD FOR CONSERVATION AND EASEMENTSConservation EasementsThe Organization accomplishes its land conservation objectives, in part, by accepting donations of interests in real property primarily in the form of conservation easements. Conservation easements are perpetual agreements between the Organization and private landowners through whom the landowners agree to abide by certain restrictions designed to preserve the open space or conservation value of their land. These agreements are binding on all landowners. Contributions or purchases of conservation easements are recorded as Program Service Expenses under the expense category Conservation Easements when acquired.Upon accepting a conservation easement, the Organization assumes a perpetual obligation to monitor, normally on an annual basis, the affected property to ensure that the landowners comply with the restrictions in the easement. Further, the Organization is perpetually obligated to enforce provisions of the easements in the event of a violation to the terms of the easement. Enforcing an easement violation could involve costly legal or other expenses. Although conservation easements are real property rights, they possess little or no market value due to a resale market that is essentially limited to the owner of the fee title of the restricted property. Because of this limited market and due to the obligations inherent in easement ownership, the Organizations easement holdings are recorded at $1 each in permanently restricted net assets. The Organization has 15 conservation easements in Rensselaer County protected in perpetuity totaling 856 acres of land.Land Held for ConservationThe Organization capitalizes conserved land at cost, if purchased, or at its appraised fair market value if received as a contribution. In addition to accepting conservation easements, the Organization accepts fee title to conservation properties that are held by the Organization in furtherance of its mission. All properties have been donated free of restrictions on their use or disposition. The donors of such property have established the fair market value through an independent appraisal of those properties. The Organization has EIGHT fee owned land preserves totaling 394.66 acres of land.”