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HomeMy WebLinkAbout02/16/1999, C4 - AUTHORIZATION OF APPLICATION FOR GRANT FUNDS FROM THE STATE AGRICULTURAL LAND STEWARDSHIP PROGRAM council °°� i agenda uepont C4 CITY OF SAN LUIS O B I S P O FROM: Ken Hampian,Assistant City Administrative Officer Prepared By: Neil HavWi,Natural Resources Manager`�'1 1 SUBJECT: AUTHORIZATION OF APPLICATION FOR GRANT FUNDS FROM THE STATE AGRICULTURAL LAND STEWARDSHIP PROGRAM CAO RECOMMENDATION Adopt a resolution authorizing submittal of a grant application to the California Department of Conservation in the amount of$300,000 in support of the acquisition of conservation easements on agricultural properties south of the Airport Area DISCUSSION In 1996 the State Legislature established the Agricultural Land Stewardship Program(ALSP)as the State's primary farmland protection program. This program makes State funds available to local governments and nonprofit organizations to acquire conservation easements on prime, unique or other important agricultural soils for the purpose of limiting or preventing the conversion of such sites.to nonagricultural uses. The City of San Luis Obispo has been in communication with a number of landowners within the Greenbelt area, as part of its Greenbelt program. One of the most challenging parts of the Greenbelt is south of the Airport Area This is due to the high property value expectations of landowners, and the perception that the area will ultimately be developed for urban uses. City staff have,however,had discussions with several landowners in the area south of the Airport which lead staff to believe that offers to purchase development rights on farming lands in that area may be favorably received. The ALSP recognizes that there are difficulties associated with the concept of purchasing development rights and therefore allows applications for general areas without a specific commitment by a given landowner to a purchase arrangement. Therefore, staff is recommending approval of this grant application without identification of a specific property. The grant, if successful, would provide funding support for City efforts in this area, which would serve to preserve prime farmland in agricultural use. ALSP regulations require that a proposal provide for acquisition of an easement or other interest in land in perpetuity. Higher priority will also be given to proposals which help to create or to buffer large tracts of viable agricultural land, and on proposals which link to other programs or efforts that complement farmland protection objectives. Staff feels that these criteria will give a proposal for conservation of this area a high priority,due to its location,and to the existence of City actions such as the Guidetti Ranch easement,which complements the ALSP. The ALSP has a five percent matching requirement. The City currently has monies available in special funds which will more than meet the match and would have the effect of making the proposal more competitive. The application deadline is March 1, 1999, with notification to successful proposers expected to be made by April 30, 1999. As a land purchase for conservation purposes,this project is exempt from both CEQA and NEPA. C4-1 FISCAL IMPACT The grant,if successK will have a beneficial fiscal effect by providing outside finding support for this project. Special fund monies are available to add to any grant amounts received,and the project can be sized to accommodate differing levels of grant awards. Staff estimates that $350,000 would be sufficient to purchase the development rights over about 70 acres of prime farmland in the area. No General Fund monies are expected to be needed for the project. ALTERNATIVE The Council could decide to not authorize the application. This is not recommended as the application itself does not constitute a commitment on the part of the City or of any landowners. Assuming that discussions with one or more landowners are successful, the grant funds will significantly assist in obtaining the fiords necessary for the project. Attachments Resolution Grant Program Summary Project Location Map C4-2 RESOLUTION NO. . RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO AUTHORIZING APPLICATION FOR GRANT FUNDS FROM THE CALIFORNIA DEPARTMENT OF CONSERVATION'S AGRICULTURAL LAND STEWARDSHIP PROGRAM FOR THE SOUTH AIRPORT AREA AGRICULTURAL CONSERVATION PROJECT WHEREAS, the Legislature of the State of California has established the Agricultural Land Stewardship Program within the Department of Conservation, and through said program is providing assistance to conserve important agricultural land resources that are subject to conversion pressures; and WHEREAS, the City of San Luis Obispo intends to acquire agricultural conservation easements on one or more of the properties within the project area in concert with cooperating landowners for the purpose of conserving priority agricultural land resources; and WHEREAS, the City Council certifies that any easements obtained will meet the eligibility requirements set forth in Public Resources Code Section 10251 and incorporated herein by reference; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Luis Obispo hereby: 1. Authorizes the filing of an application for grant assistance from the Agricultural Land Stewardship Program for the above project; and 2. Appoints the City Administrative Officer as agent of the City to conduct all negotiations, execute and submit all documents, including, but not limited to, applications, agreements, amendments, payment requests and so on, which may be necessary for the completion of the aforementioned project Approved and adopted this 16th day of February, 1999. On motion of . seconded by and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this day of , 1999. Allen K. Settle, Mayor ATTEST: APPROVED AS TO FORM: Lee Price, City Clerk /Jeffn6y G. Jo nsen, City AttomN-3 Department of conservation Agricultural Land Stewardship Program Grant Application Manual Fiscal Year 199!1-99 Chapter 1: THE ALSP GRANT PROGRAM The Department of Conservation's Agricultural Land Stewardship Program (ALSP) provides grants to local governments and qualified non-profit organizations for • voluntary acquisition of conservation easements on agricultural lands that are under pressure of being converted to non-agricultural uses; • temporary acquisition of agricultural lands as a phase in the process of placing an agricultural conservation easement; • restoration of and improvements to agricultural land already under easement; and • agricultural land conservation planning and policy projects. The ALSP is designed to work in concert with local planning and zoning strategies to conserve agricultural land. The Program was created by the Agricultural Land Stewardship Program Act of 1995, contained within Division 102 of the Public Resources Code (Sections 10200 to 10277) and the Revenue and Taxation Code(Sections 421.5 and 422.5).' This Grant Application Manual is intended to serve as a reference in understanding the provisions of the ALSP, and includes instructions for the submission of applications for grant funding. ALSP Jurisdiction The ALSP's enabling legislation provides the Department of Conservation with statewide jurisdicfion to work with local governments and non-profit organizations to conserve agricultural land resources through the use of agricultural conservation easements. In addition, the State Coastal Conservancy is vested with responsibilities for carrying out agricultural projects in the coastal zone (as defined in Section 30103 of the Public Resources Code), including the acquisition of agricultural conservation easements. The ALSP does not after the Conservancy's responsibilities for the administration of state or federal funds that are allocated for the purpose Of preserving coastal agricultural lands. For ALSP projects within the coastal zone, the Department of Conservation will consult with the Conservancy in developing the Department's policies, priorities, and procedures for the allocation of funds (Public Resources Code Section 10225). 'The Codes are available on the intemet at httpJ/www.leginfo.ca.govlcalaw.html, or upon request to the Department of Conservation. Chapter 1: Introduction C44 Department of Conservation Agricultural Land Stewardship Program Grant Application Manual Fiscal Year 199899 Application Eligibility Eligible Applicants The ALSP may award grants to cities, counties, and private non-profit organizations. Nonprofit organizations must • have among their defined purposes the conservation of agricultural lands, • hold a tax exemption as defined under Section 501(c)3 of the Internal Revenue Code, and • further qualify as non profit organizations under Section 170(b)(1)(A)(w) or 170(h)(3) of the Internal Revenue Code(Public Resources Code Section 10221). Non-profit applicants must provide documents verifying their agricultural land conservation purpose, and their 501(c),3 status. Non-profit applicants must also certify that ALSP finding would present no conflict of interest on the part of the Board or its meml?rs, and provide documentation of the organization's ability to carry out the proposed protect(see page 41). Eligible Projects Agricultural Conservation Easement Acquisition Projects Agricultural conservation easement projects are considered eligible for grant funding if they meet the following criteria(Public Resources Code Section 10251): • The parcel proposed for conservation is expected to continue to be used for, and is large enough to sustain, commercial agricultural production. The land is also in an arra that possesses the necessary market, infrastructure, and agricultural support services, and the surrounding parcel sizes and land uses will support long-term commercial agricultural production. • The applicable city or county has a general plan which demonstrates a long-term commitment to agricultural land conservation. This commitment shall be reflected in the goals, objectives, policies, and implementation measures of the plan, as they relate to the area of the county or city where the easement acquisition is proposed. • The grant proposal is consistent with the city or county general plan, and the governing body of the city or county, by resolution, approves the grant proposal. • Without conservation,the land proposed for protection is likely to be converted to non- agricultural use in the foreseeable future. Chapter 1: Introduction C4-5 Department of Conservation Agricultural Land Stewardship Program Grant Application Manual Fiscal Year 199&99 Fee Title Acquisition Projects In addition to agricultural conservation easements, grant funds may be used in certain cases to obtain fee title (full purchase of title)to agricultural lands. In such cases, the following conditions must be met • A grant recipient must agree, upon acquisition of the property, to encumber the land with an agricultural conservation easement subject to Public Resources Code Section 10262 (Public Resources Code Section 10239(a)). • The grant recipient must sell the fee title subject to the easement to a private landowner within three years of the acquisition of the fee title(Public Resources Code Section 10239(b)). • The grant recipient must reimburse the ALSP Fund by an amount equal to the fair market value of the land less the value of the easement and associated transaction costs within 30 days after the sale of the restricted fee title (Public Resources Code Section 10239(c)). Policy/Planning Projects Policy and planning projects related to agricultural land conservation and the utilization of agricultural conservation easements may also be considered (e.g.,the consideration of agricultural conservation easements as a local mitigation of agricultural land conversion, the delineation of agricultural lands with the greatest local priorities for conservation, etc). No more than ten percent of total available grant funds may be applied toward land improvement and policy/planning purposes combined (Public Resources Code Section 10230(c)). Before proceeding with the application process, prospective applicants for policy/planning grants are encouraged to contact the ALSP staff(916-324-0850, or alsp@consrv.ca.gov), to discuss the preliminary details of the proposal. Land Improvement Projects Up to ten percent of total available grant funds may be applied toward land improvement and policy/planning purposes combined (Public Resources Code Section 10230 (c)). Use of these grants shall be limited to the improvement of lands protected by agricultural conservation easements. If a proposed project includes the use of grant funds for land improvement,that component shall be evaluated with respect to the extent to which it satisfies one or more of the following (Public Resources Code Section 10246): • The improvement will enhance the agricultural value of the land protected by the easement, and promote its long-term sustainable agricultural use,such as water supply development and revegetation of eroding streambanks. • The improvement will increase the compatibility of the agricultural operations with sensitive natural areas. • The improvement will demonstrate new and innovative best management practices which have the potential for wide application. Chapter 1: Introduction C"-` Department of Conservation Agricultural Land Stewardship Program Grant Application Manual Fiscal Year 1998-99 • The improvement includes the financial and technical involvement of other agencies. • The improvement is part of a coordimated watershed management plan or the equivalent Ineligible Projects Projects are considered ineligible if they fail to meet all of the efigibTi dy criteria described under Eligible Projects, and if any of the following apply: • The local government applicant has acquired, or proposes to acquire, the agricultural conservation easement through the use of eminent domain, unless requested by the owner of the land (Public Resources Code Section 10232). • The acquisition of the agricultural conservation easement would restrict husbandry practices on the land (Public Resources Code Section 10$38). The applicant and seller of the agricultural conservation easement do not agree to restrict the use of the land in perpetuity, subject to review after a 25 year period (Public Resources.Code Section 10237). • The proposed easement is part of a local governments condition placed upon the issuance of an entitlement to use of a specific property(Public Resources Code Section 10237). Chapter 1: Introduction C4-7 U _ 70 ,•.......... .............. . ......... .. \ 162 10 ' III ,.� _;: ---- / — W j,q e °� Project Area .. � \ � COUNTY AIR �� '•\ 1 _ .. l u ..... I �....Sc �� ` .. . -� ... 1 •.. - -^ 17 189 V. /BO 1 l / . ...• .. v.: IW- ' as `� \ ae`� •. -_/. a �� . .. � � h 1" o � B78 ° Baa `�• �Y&�.d Iyye� r� � �- \ � 0aa ``•,• 1. ._. .. ....�t0 4""� J J / i 4 .y a n:. _ I I Oy. I v a4. 4 Q as dP S• O _ O 11 d n Q A 0 1/1)^,1,1/\\)1 GIcJ`•'-�1/ '7//-�� �a[[[,,,���(((///���a I`•�•'•��``\ \ , � � FIN 800 CALIFORNIA DEPARTMENT OF CONSERVATION AGRICULTURAL LAND STEWARDSHIP PROGRAM SOUTH AIRPORT AREA AGRICULTURAL CONSERVATION PROJECT Application by the City of San Luis Obispo, CA. General Location Map Pismo Beach Quadrangle 1"=2,000' C4-8