<html><head><style type='text/css'>p { margin: 0; }</style></head><body><div style='font-family: Arial; font-size: 12pt; color: #000000'><P>John:</P>
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<P>Thank you for forwarding the sample of a CR. I've been reading Small's series of books on "Preserving Family Lands" and your doc will no doubt flesh out some of the principles and guidelines he discusses. Also, my wife Sarah has a paralegal background, and will be working closely with me as we meet with various professionals and entities to design our conservation easement or restriction. </P>
<P> </P>
<P>Look forward to seeing you in Jan. Thanks again for the detailed email.</P>
<P> </P>
<P>John</P>
<P><BR>----- Original Message -----<BR>From: "John O. Mirick" <jmirick@mirickoconnell.com><BR>To: masschestnutorchards@masschestnut.org, "Roy" <Roy@Najecki.com><BR>Sent: Wednesday, December 2, 2009 9:47:02 AM GMT -05:00 US/Canada Eastern<BR>Subject: Re: [MassChestnutOrchards] Conservation Easements and Conservation Restrictions<BR><BR></P>
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<P class=MsoNormal><SPAN style="FONT-SIZE: 11pt; COLOR: #1f497d; FONT-FAMILY: 'Calibri','sans-serif'">John:</SPAN></P>
<P class=MsoNormal><SPAN style="FONT-SIZE: 11pt; COLOR: #1f497d; FONT-FAMILY: 'Calibri','sans-serif'"></SPAN> </P>
<P class=MsoNormal><SPAN style="FONT-SIZE: 11pt; COLOR: #1f497d; FONT-FAMILY: 'Calibri','sans-serif'">To illustrate what is involved in a Massachusetts Conservation Restriction (CR), I am attaching a recorded copy of one of the CRs that our Princeton Land Trust received. </SPAN></P>
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<P class=MsoNormal><SPAN style="FONT-SIZE: 11pt; COLOR: #1f497d; FONT-FAMILY: 'Calibri','sans-serif'">The section on “Purpose” is important. Massachusetts Department of Recreation and Conservation (DCR) and local town must be convinced that CR confers a public benefit. In Princeton, that’s not usually a concern because every drop of surface water in Princeton ends up in a reservoir. In other areas, approval may not be automatic, particularly if the town in which the land is located sees the CR has primarily benefiting the landowner by reducing the landowner’s real estate taxes (for example, a CR on an buildable lot adjacent to the donor’s house).</SPAN></P>
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<P class=MsoNormal><SPAN style="FONT-SIZE: 11pt; COLOR: #1f497d; FONT-FAMILY: 'Calibri','sans-serif'">“Prohibited Uses” is pretty much dictated by the Mass DCR, and has been expanded in recent years in response to problems that DCR has encountered. Generally, I find that potential donors are in agreement with DCR’s list of prohibited uses.</SPAN></P>
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<P class=MsoNormal><SPAN style="FONT-SIZE: 11pt; COLOR: #1f497d; FONT-FAMILY: 'Calibri','sans-serif'">The section of “Permitted Uses” has some room for negotiation. In a CR that is intended to allow a seed orchard, we’d probably want to make an explicit statement.</SPAN></P>
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<P class=MsoNormal><SPAN style="FONT-SIZE: 11pt; COLOR: #1f497d; FONT-FAMILY: 'Calibri','sans-serif'">A CR needs a surveyed plan (so that boundaries can be determined and maintained).</SPAN></P>
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<P class=MsoNormal><SPAN style="FONT-SIZE: 11pt; COLOR: #1f497d; FONT-FAMILY: 'Calibri','sans-serif'">A CR is a <U>permanent</U> gift. For IRS charitable deduction purposes, an appraiser determines the value of the land without a CR, and the value of the land with a CR. The decrease in value is a charitable gift, provided that the donee meets IRS regulations. Gifting a CR to a qualified charitable organization also usually results in a lower assessment of the land for real estate taxes, although tax assessors are not automatically required to accept the opinion of the appraiser (nor is the IRS, for that matter).</SPAN></P>
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<P class=MsoNormal><SPAN style="FONT-SIZE: 11pt; COLOR: #1f497d; FONT-FAMILY: 'Calibri','sans-serif'">In contrast to the permanence of a CR, an easement can be <U>temporar</U>y or <U>terminable</U>, according to the terms of the easement. For example, an easement can be for a specific time (say, 30 years), and can be subject to specified conditions of maintenance (say, remove all brush and saplings other than chestnut trees in excess of 1” diameter). At least in theory, an easement may also qualify for a charitable deduction, but the appraisal process if trickier because (usually) the easement is not a permanent gift.</SPAN></P>
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<P class=MsoNormal><SPAN style="FONT-SIZE: 11pt; COLOR: #1f497d; FONT-FAMILY: 'Calibri','sans-serif'">Incidentally, the donee organization does not participate in the valuation of any gift (CR or easement). The donee organization does sign IRS Form 8283 to acknowledge receipt of the gift.</SPAN></P>
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<P class=MsoNormal><SPAN style="FONT-SIZE: 11pt; COLOR: #1f497d; FONT-FAMILY: 'Calibri','sans-serif'">Hope this helps rather than burying you under esoteric legal principles. Good subject for discussion at January meeting.</SPAN></P>
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<P class=MsoNormal><SPAN style="FONT-SIZE: 11pt; COLOR: #1f497d; FONT-FAMILY: 'Calibri','sans-serif'">John</SPAN></P>
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<P class=MsoNormal><B><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: 'Tahoma','sans-serif'">From:</SPAN></B><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: 'Tahoma','sans-serif'"> masschestnutorchards-bounces@masschestnut.org [mailto:masschestnutorchards-bounces@masschestnut.org] <B>On Behalf Of </B>j. meiklejohn<BR><B>Sent:</B> Tuesday, December 01, 2009 8:38 PM<BR><B>To:</B> Roy; masschestnutorchards@masschestnut.org<BR><B>Subject:</B> Re: [MassChestnutOrchards] Conservation Easements</SPAN></P></DIV></DIV>
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<P><SPAN style="COLOR: black; FONT-FAMILY: 'Arial','sans-serif'">Roy,</SPAN></P>
<P><SPAN style="COLOR: black; FONT-FAMILY: 'Arial','sans-serif'"></SPAN> </P>
<P><SPAN style="COLOR: black; FONT-FAMILY: 'Arial','sans-serif'">Thank you for these leads. I'd definitely be interested in seeing the manual providing no one is in pressing need for it prior to our January meeting. I could look it over, copy what I need and bring the manual to our next mtg. In 2010 my wife and I plan to create a CE for our property, part of which will be for a planned MA-TACF seed orchard. If Jamie and the powers that be approve, you may send the manual to:</SPAN></P>
<P><SPAN style="COLOR: black; FONT-FAMILY: 'Arial','sans-serif'"> J. Meiklejohn</SPAN></P>
<P><SPAN style="COLOR: black; FONT-FAMILY: 'Arial','sans-serif'"> 183 Silver St.</SPAN></P>
<P><SPAN style="COLOR: black; FONT-FAMILY: 'Arial','sans-serif'"> Granville, MA 01034</SPAN></P>
<P><SPAN style="COLOR: black; FONT-FAMILY: 'Arial','sans-serif'"></SPAN> </P>
<P><SPAN style="COLOR: black; FONT-FAMILY: 'Arial','sans-serif'">In the meantime, can you send me the link for the on-line CE manual for MA created by the Audubon Society?</SPAN></P>
<P><SPAN style="COLOR: black; FONT-FAMILY: 'Arial','sans-serif'"></SPAN> </P>
<P><SPAN style="COLOR: black; FONT-FAMILY: 'Arial','sans-serif'">Thanks,</SPAN></P>
<P><SPAN style="COLOR: black; FONT-FAMILY: 'Arial','sans-serif'">John</SPAN></P>
<P><SPAN style="COLOR: black; FONT-FAMILY: 'Arial','sans-serif'"><BR>----- Original Message -----<BR>From: "Roy" <Roy@Najecki.com><BR>To: masschestnutorchards@masschestnut.org<BR>Sent: Tuesday, December 1, 2009 7:53:45 PM GMT -05:00 US/Canada Eastern<BR>Subject: [MassChestnutOrchards] Conservation Easements<BR><BR>Last night the Narragansett Bay Research Reserve had a free 2-hour workshop <BR>at RI Dept of Environmental Management HQ in Providence on the subject of <BR>Conservation Easements. A 24-page manual was provided that has a checklist <BR>of what a good conservation easement should contain, along with a sample <BR>C.E. The appendix has a list of resources, including an on-line <BR>conservation easement manual for Massachusetts created by the Audubon <BR>Society.<BR><BR>I have a spare copy of the manual for MATACF (who should I mail it to?). <BR>Another workshop is scheduled for Dec 10th. <BR>http://www.dem.ri.gov/news/2009/pr/1105091.htm<BR><BR>Roy<BR>Glocester RI <BR><BR><BR>_______________________________________________<BR>MassChestnutOrchards mailing list<BR>MassChestnutOrchards@masschestnut.org<BR>http://mrsgale.fates.org/mailman/listinfo/masschestnutorchards</SPAN></P></DIV></DIV><!--[object_id=#mirickoconnell.com#]-->
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