Farmland and Open Space Preservation Board

In 2003, Ann Arbor Township voters overwhelmingly supported a 20-year millage to fund a Farmland and Open Space Preservation Program. With 80% support, voters emphatically stated that certain areas of the township should be kept undeveloped forever. We are pleased to provide the following report on the program’s first ten years, with a look ahead to the second ten.

After the successful vote, the township Board of Trustees appointed a seven-member Farmland and Open Space Preservation Board to implement the program. The Trustees also hired local land preservation consultant Barry Lonik to serve as staff to the Preservation Board. Together everyone worked to educate landowners, attract applications, apply for matching funds and bring land preservation projects to fruition.

The first completed project was in November, 2006 on the Kapp farm, located on the east side of Nixon Rd. between Warren Rd. and Pontiac Trail. The Kapp family farm was acquired in 1931, as is prominently displayed in shingles on their barn. The Kapps ran a dairy operation from 1935 to 1995 and now raise cattle in addition to cash crops.

Since then eight other projects have closed, creating two large blocks of contiguous protected land. The west block, totalling 620 acres, is located south of Joy Rd. (the township’s northern boundary) and includes land on both sides of Whitmore Lake Rd. and US-23. (An additional 30 acres was protected by the local nonprofit Legacy Land Conservancy with funding support from the township before the millage was approved.) The east block, totalling nearly 300 acres, is located south of Pontiac Trail on both sides of Nixon Rd. Coupled with the 153 acre township farm property—acquired by donation after clustered residential developments were approved—the east block totals about 450 acres. The total amount of protected land in the township’s agricultural preservation area (north of the US-23/M-14 freeways) stands at 1,110 acres.

In all of these projects, township funds have been used to purchase the landowner’s ability to divide the property into smaller parcels for residential development. We call this purchasing development rights, or PDR. In exchange for payment, landowners sign a permanent deed restriction called a conservation easement that is recorded at the Washtenaw County Register of Deeds and runs with the property in perpetuity.

The township has been successful in attracting matching funds from a federal grant program as well as the City of Ann Arbor Greenbelt program and Washtenaw County Parks. Landowners have also agreed to sell development rights at less than the value determined by an independent real estate appraiser. So far about $3.2 million of township millage funds have been expended; more than twice that amount has been matched by other sources. About 16% of the protected lands are natural features (woods, wetlands, streams). The administrative cost to operate the program is about 13% of total expenditures, meaning 87% of millage funds have been used for acquisitions.

Four of the nine properties protected by township millage funds have changed ownership since the PDR projects were completed. Two of those were purchased by organic farmers. Green Things Farm is located on the west side of Nixon Rd. between Warren Rd. and the freeway, operated by Nate Lada and Jill Sweetman. Kim Bayer now owns the property located on both sides of Whitmore Lake Rd. and US-23 south of Joy Rd.; she is leasing some of it to Tantre Farm (which has been planting fruits and nuts) while some areas are being planted with native grasses and undergoing wetland restoration.

At the program’s outset, the township set a goal of protecting 2,000 acres in the agricultural preservation area. Ten years in, we are more than halfway there. The Preservation Board is currently developing a brochure for the owners of eligible properties with information on the process and benefits of PDR. With that a new round of outreach to landowners will commence.

The Preservation Board meets every other month on the fourth Monday at 7:30 p.m. The meetings are open to the public except for the discussion about current applications. For more information on the township’s land preservation program, or if you would like to become a member of the Preservation Board, please contact township supervisor Mike Moran at (734) 663-3418 or consultant Barry Lonik at (734) 223-2321.

Preserved Lands Map with List of Properties and Testimonials

Protected Lands Map February 2022 (link to pdf)

Testimonials

Dale & Karen Kapp. The 148 acre Kapp family farm on the east side of Nixon Rd., acquired in 1931, was the first conservation easement purchased with Township millage funds in 2006. The Kapps used proceeds to purchase several other farm properties through a “like-kind exchange,” and to invest in their farm operation. “My parents wanted to keep our property as a farm. The conservation easement was the means to accomplish that.”

Catherine Braun. Along with her late husband Charles, the Brauns sold a conservation easement on 286 acres on the west side of Whitmore Lake Rd. in 2010. They used the proceeds in part to purchase an adjacent 74 acre property owned by the Pardons, which was conserved that same year. At the time Charlie said, “I do not want to see this farm developed, as it was my great grandfather’s farm and I like the idea of it staying as it is.” The land is being farmed by their sons Ken and Bruce.

Ken & Shirley Koch. The Kochs sold a conservation easement on their 40 acre farm near the southeast corner of Earhart Rd. and Warren Rd. in 2019, the same year they marked 150 years in family ownership. “We wanted to preserve the farm from future development as the family farm is becoming a thing of the past because people have lost their connection with where and how their food is produced.”

Green Things Farm. Owners Nate and Jill Lada bought their 63 acre farm on the west side Nixon Rd. in 2012 after the conservation easement had been purchased from the previous owners, an investment group. Nate and Jill started their operation leasing a plot on the nearby Township Farm property on Pontiac Trail and were ready to make the jump to owning their land. Green Things “provides nourishment and quality of life to its farmers and community members, through the thoughtful production of organic produce and agricultural events.” Because of the conservation easement we were able to afford more land and much closer to town which we hope helps to maintain fresh food access to the community without having to travel far. We were able to be a part of creating the easement at the time of sale, which allowed us to build a home on the property–which is essential for the kind of diverse market farming we do.

Cloudberry Farm. Owners Cindy Stiles and Eric Kaldjian acquired their 120 acre property on the south side of Warren Rd. in 2016 and sold the conservation easement in 2018. Cindy spent Summers on a farm in Iowa as a child, while Eric grew up little more than a mile away from the property and rode his bicycle nearby as a boy. They are restoring a portion of the land that was historically farmed to sustainable organic agriculture (already producing eggs, honey and maple syrup) and maintaining and enhancing its natural features. “The conservation easement has allowed us to convert the development value in the land into resources for building the farm and restoring the land.”

Ann Arbor Township Farm

Ann Arbor Township Farm (Previously known as Tilian Farm Development Center)

Ann Arbor Township owns 153 acres of preserved farmland located at 4400 Pontiac Trail, resulting from a unique development deal between a residential home developer and the Township. In exchange for clustering residential homes, the rest of the parcel was perpetually preserved for farming. Approximately 40 acres are adjacent to a small barn and have been operated for 10 years as a farm business incubator for small farm operations using organic practices. The project and property has been known as the Tilian Farm Development Center.

Launched in 2011, Tilian provided access to land, equipment, knowledge, markets, storage, networks, community resources, and business planning to new and beginning farmers. Several of the farm businesses that started at Tilian still operate in the Township, such as Green Things Farm Cooperative, Seeley Farm and Slow Farm.

The over-arching goal for township-owned preserved farmland: The township farm serves as a valuable land and infrastructure resource for local, small farms – and our goal is to keep it active and contributing to this growing local community need.

During 2020, the Township sought proposals for farms and organizations to operate on all or part of the 40 acres devoted to farm business incubation. Today there are 4 farm businesses operating on the Township preserved farmland, including Marilla Field and Flora and Good Neighbor Farm.

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In the future years, the Township may again open a request for proposal process to place additional farm businesses on the land if there are openings. For reference, the 2020 Request for Proposals document is linked here. Proposals may be by individual farm operators or a collective of farm operators including non-profit organizations, LLCs or other business structures. Preference will be given to applicants that will continue organic practices.

Landowners Interested in Preserving Your Land

Getting Started
Owners of undeveloped natural and agricultural parcels of five acres or more may submit an application to the township land preservation program at any time with no cost or obligation. The property is scored on systems established in township ordinance and ranked with other nominated properties. If the township’s Farmland and Open Space Preservation Board (appointed by the elected Board of Trustees) decides to proceed, the township commissions and covers the cost of an appraisal to determine the value of the “development rights.”

How Do I Find Out More?
Contact the township’s land preservation consultant Barry Lonik at (734) 223-2321 or BLonik13@aol.com. Barry has 30 years of experience and has staffed the township program since inception. He is available to speak or meet with you to provide more details at any time free of charge.

Frequently Asked Questions (FAQs)

What Are Development Rights?
Landowners have the ability to divide their property into smaller parcels for the construction of houses, called the “development rights.” The township land preservation program seeks to maintain agricultural and open space land by purchasing those rights. The independent real estate appraiser hired uses recent sales of similar nearby properties to determine the value of the subject property. One report compares unrestricted properties (the “development value”) and one compares properties that have conveyed “conservation easements” (the “agricultural value”). The township program pays the difference between the two appraised values. Landowners can decline to proceed if the value is not acceptable.

What is a Conservation Easement?
In exchange for payment for development rights, a landowner signs a permanent deed restriction called a “conservation easement.” The easement defines the permitted uses (e.g., agriculture, forestry, recreation) and the prohibited uses (e.g., division, residential development, surface mining), and runs with the land in perpetuity. The township is charged with ensuring easement terms are being upheld, generally by an annual monitoring visit done with the landowner’s consent.

What Costs are Involved?
In addition to the appraisal, a boundary survey and an environmental assessment (to determine if there are dumps or hazardous materials on the property) are commissioned. All of these costs are borne by the township. The only cost to the landowner is for the recommended review of documents by an attorney of your choosing.

How Have Landowners Used the Proceeds of Sale?
Ann Arbor Township landowners have used the proceeds from selling development rights to purchase land in our area or elsewhere, purchase new farming equipment, pay down or pay off debt and invest in other forms. Sale of development rights is subject to capital gains tax but that can be deferred if other income-producing property such as farmland is purchased and other guidelines are met. Legal counsel is recommended for such transactions.

What Happens to the Property Tax Assessment?
Ann Arbor Township has taken the initiative to reward conservation easement properties with reduced property tax assessments. Unlike other properties, those with conservation easements do not become “uncapped” when a property changes ownership so a new owner’s assessment will not increase. (The same is true if it stays in the current ownership.) In addition, the property’s taxable value assessment (on which property taxes are based) will decrease in the year after the easement has been recorded. The township is also committed to continuing reductions in subsequent years.

Can I Sell My Property?
Yes! Six of the conserved properties in Ann Arbor Township have sold from the original grantor. The easement runs with the deed so any future owner must abide by the agreement and its restrictions.

Can the Public Use My Property?
Conservation easement properties generally remain privately owned (one small property was purchased by Washtenaw County Parks) and the landowner’s ability to restrict public access does not change. The one possible exception is if Washtenaw County funds are involved, in which case there is a requirement for one possible annual visit for educational programming (such as a farm tour) with notice and approval by the landowner.