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Home My WebLink About04/20/2004, C3 - AUTHORIZATION OF APPLICATION FOR GRANT FUNDS FROM THE FEDERAL FARMLAND PROTECTION PROGRAM (FPP) I council Marine Da¢ I ' j acEnba REpoRt ��h (yc3v CITY OF SAN L U IS O B I S P O FROM: Wendy George,Assistant City Administrative Officer Ulf Prepared By: Neil Havlik, Natural Resources Manager SUBJECT: AUTHORIZATION OF APPLICATION FOR GRANT FUNDS FROM THE FEDERAL FARMLAND PROTECTION PROGRAM(FPP) CAO RECOMMENDATION Adopt a resolution authorizing submittal of a grant application to the United States Department of Agriculture, Natural Resources Conservation Service in the amount of $240,000 in support of acquisition of an agricultural conservation easement on a 160 acre portion of the 391 acre Brughelli Ranch on Buckley Road south of the Airport Area. DISCUSSION In 2002 the Congress passed a new Farm Bill, which provided funding to the Natural Resources Conservation Service's Farmland Protection Program (FPP) for five years. The Service has recently announced the availability of grant funds for consideration, and City staff believes that we have a very attractive and competitive project in the Brughelli property agricultural conservation easement. This program makes Federal funds available to State and 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. In April of last year the Council authorized application to, both the Federal and State programs. These were originally unsuccessful, but additional work with the State program staff ultimately yielded a grant of $160,000. Combining that grant with a City match, there is currently$320,000 for this project,leaving$480,000 to reach the$800,000 goal. The Brughelli property is one of the largest single properties south of the Airport Area. It consists of prime soils, about 50 acres of which is currently farmed, and non-prime soils on rolling hills used for livestock grazing. Much of the land now used for grazing was probably dry-farmed in the past, as was the case on many properties in that area. Recently, with the assistance of Jim Brabeck of the Farm Supply Company, the Brughellis indicated their continued willingness to consider sale of a conservation easement on 160 acres forming the northern portion of their property facing Buckley Road (map). Staff believes that a successful transaction with the Brughellis will elicit the interest of other owners in the area in such programs. The application deadline is May 3, 2004. The Brughellis have indicated that they would like to receive $800,000, or$5,000 per acre, for an easement on 160 acres of their property. An appraisal completed in May of last year found a value of$845,000 for such an easement. C3 � 1 Authorization of Application for Grant Funds from FFP Page 2 It is anticipated that it will take between six and nine months to complete the transaction from this time, if the application is successful. Because of our lack of success in the earlier round of applications, the entire project relies more heavily on City funding than was anticipated earlier. Staff anticipates commitment of$105,000 from the City's Airport Open Space Impact Fee fund to this project, with the balance to come from the State and Federal programs and between $100,000 and $300,000 from either a private developer source, the sale of City-owned property, or, as a last resort, the City's General Fund. Staff considers it premature to allocate funds to the project at this time; however, if we are successful in the application we will return to the Council with a detailed transaction scenario. As an easement purchase for conservation purposes, this project is exempt from both CEQA and NEPA. FISCAL IMPACT The grant, if successful, will have a beneficial fiscal effect by providing outside funding support for this City-initiated project. Assuming that the applications are successful, staff will return to the Council as soon as possible for consideration of a formal transaction. 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, and would constitute a reversal of previous direction from the Council. Attachments 1. Project Location Map 2. Grant Program Summary 3. Resolution G:\Staff\HAVLIK\Councilagenda\Brughelli6.'(f ^ tit .q welif .,o Gravel -—————————— -18 Ho�e 0 0 0 Grave P, Park Pumping Mobile m a t Station Par FAM E A 8,,a ark fjN- IJ a-4 Loyee S 10 ......... Wr 112- 10 " % 11 A7 Sh J fil"Ey at a • Easement . %! Area ....... 'db A. N../I 2P I ell 'M r do 4 Crt Yf 7S Cl CITY OF SAN LUIS OBISPO GREENBELT PROTECTION PROGRAM Brughelli Property Conservation Easement Acquisition. Scale 1"=Z0001 ATTACHMENT 2 Chapter 1: The CFCP Grant Program Chapter 1: Grants • o Program Purpose and Authority The Department of Conservation's The CFCP is authorized to work throughout California Farmland Conservancy Program California.Within the coastal zone(as provides grants to local govemments and defined in Section.30103 of the Public qualified nonprofit organizations for Resources Code) the CFCP works in consultation with the State Coastal • voluntary acquisition of conservation Conservancy(Public Resources Code easements on agricultural lands that are Section 10225). under pressure of being converted to nonagricultural uses; • temporary purchase of agricultural lands This Request for Grant Applications details that are under pressure of being requirements and guidelines for grant converted to non-agricultural uses, as a application submission.All applications for phase in the process of placing an funding submitted as of the date of this agricultural conservation easement; publication should conform to the format of • restoration of and improvements to this edition of the Request for Grant agricultural land already under Applications until a subsequent edition of easement;and the Request for Grant Applications is • agricultural land conservation planning published. and policy projects. The CFCP is designed to work in concert with local planning and zoning strategies to conserve agricultural land.The Program was created by the Califomia Farmland Conservancy Program Act of 1995, contained within Division 10.2 of the Public Resources Code(Sections 10206 to 10277) and the Revenue and Taxation Code (Sections 421.5 and 422.5).' Related regulations are located in the Califomla Code of Regulations,Tide 14, Division 2, Chapter 6,Sections 3000 through 3015? 'The Codes are avallabie on the Internet at httpJtwww.legtofo.ca.gov/calaw.htmi,or upon request to the Department of Conservation. 2 Available on the CFCP website: www.consrv.ca.gov/dirptdcp 1-1 ATTACHMENT 3 RESOLUTION NO. (2004 Series) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO AUTHORIZING APPLICATION FOR GRANT FUNDS FROM THE FEDERAL FARMLAND PROTECTION PROGRAM (FPP) FOR THE PROJECT KNOWN AS BRUGHELLI EASEMENT ACQUISITION WHEREAS, the Congress of the United States has established the Farmland Protection Program, administered by the U. S. Department of Agriculture, Natural Resources Conservation Service, and through said program is providing assistance to conserve important agricultural land resources that are subject to land use conversion pressures; and WHEREAS, the City of San Luis Obispo has an active program designed to acquire agricultural conservation easements on one or more areas surrounding the City in cooperation with landownersfor the purpose of conserving important agricultural resources; and WHEREAS, Ercole and Naomie Brughelli have indicated their desire to sell a conservation easement on 160 acres of land on their property, which land meets the eligibility requirements for enrollment in the FPP. BE IT RESOLVED that the City Council of the City of San Luis Obispo hereby: SECTION 1. Authorizes the filing of an application for grant assistance from the Federal Farmland Protection Program for the above project; and SECTION 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. On motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this day of 2004. David F. Romero,Mayor ATTEST: APPROVED AS TO FORM: Lee Price,City Clerk J athwell, City Attorney C3-�