Catawba Lands Conservancy

“In 2016, two conservation easements held by the Conservancy (CLC) were technically modified in part and terminated in part as a result of eminent domain actions filed in the Superior Court of Gaston County, North Carolina by the North Carolina Department of Transportation (NCDOT) in connection with a bridge widening project (the Project) involving bridge #203 (the Bridge) over Stanley Creek on State Road 1125 (Willowside Drive) in Gaston County. CLC holds conservation easements on two tracts on the east and west sides of Willowside Drive in the vicinity of the Bridge. Under North Carolina law, NCDOT has what is generally called a quick take authority, meaning that when the NCDOT files an action, the taking occurs upon the date of filing, allowing the NCDOT to proceed with the work while the parties to attempt to resolve the value of the property interest taken. So in this case, the two actions filed against CLC as owner of a conservation easement on the properties affected by the project constituted the date of the taking, although CLC did not receive any compensation during 2016 for the value of the interest taken. NCDOT, having settled with the fee owners of the two properties prior to instituting a lawsuit, did not file eminent domain actions against the property owners. We are reporting these NCDOT takings on our 2016 Form 990 as both temporary easement modifications (due to part of the taking on both properties being a temporary construction easement) and partial easement terminations (due to part of the taking on both properties being a permanent right of way), and as to the easement on the Duncan Property as a permanent modification (due to part of the taking on the Duncan Property being a permanent drainage easement). A brief description of each action follows.Duncan Property CLC holds a conservation easement dated 12/23/05 and recorded in Book 4186, page 904 in the Gaston County Public Registry (the Duncan CE) on an approximately 101-acre tract (the Duncan Property) owned by Hugh M. Duncan, Jr. and wife Jill H Duncan (Duncan) and fronting on Willowside Drive. NCDOT filed its action against CLC as holder of the Duncan CE on May 16, 2016 (court file no. 16CVS1840). The NCDOT taking involved CLCs conservation easement on the following portions of the Duncan Property: (i) a .087-acre portion taken for a permanent right-of-way (the ROW) consisting of an approximately 9-foot wide strip of frontage approximately 421 feet along Willowside Drive ; (ii) a .119-acre portion taken for a permanent drainage easement (the Drain Easement) ; and (iii) a .067-acre portion taken for a temporary construction easement (to expire upon completion of the project) (the TCE). Amount deposited by NCDOT with Clerk of Court based on appraised market value of interest taken: $275.Rankin PropertyCLC holds a conservation easement dated November 3, 1999 and recorded in Book 3010, page 728 in the Gaston County Public Registry (the Rankin CE) on an approximately 70.55-acre tract (the Rankin Property) owned by Richard E. Rankin and wife Sarah Park Rankin and fronting on Willowside Drive. NCDOT filed its action against CLC as holder of the Rankin CE on May 16, 2016 (court file no. 16CVS1833). The taking involved CLCs conservation easement on the following portions of the Rankin Property (i) a .061-acre portion taken for a permanent right-of-way the ROW) consisting of an approximately 10-foot wide strip of frontage approximately 259 feet along Willowside Drive ; and (ii) a .11-acre portion taken for a temporary construction easement. Amount deposited by NCDOT with Clerk of Court based on appraised market value of interest taken: $500.”

“The land stewardship staff inspects each property encumbered by a conservationeasement to ensure compliance with the provisions in the easementdocument. Staff assesses current conditions and compares findings to thosedocumented by the Baseline Documentation Report. Staff evaluates the status ofreserved rights which may have been exercised since the last site visit. Staff assesses impacts to the conservation values associated with changes in land use onthe easement property and adjacent properties, notes potential trespass issues andsafety hazards, and makes observations on the condition of the boundary and thesignage. The staff makes additions to the species list (flora and fauna), documentsnew findings and communicates with the appropriate government entity. Specialattention is given to the evaluation of plant or animal species that may be state orfederally listed (endangered, threatened, species of concern, etc.). Staff evaluatesconditions in Natural Heritage Areas and inspects significant historical and/orcultural features conserved by the conservation easement. Post monitoring, anarchival quality report is generated by the staff and includes written observationsand photographs as appropriate; copies of the report are stored on and off site perConservancy policy.”

“Conservation easements received as a gift are recorded at the estimated change in the market value of the associated property before and after the imposition of theeasement. At that time, the Conservancy also records a like amount as an expensesince the conservation easements have no future economic benefit to the Conservancy.Donated conservation easements amounted to $551,963 and $423,650 for the yearsended December 31, 2016 and 2015, respectively.”