1,035 acres going into conservation

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1,035 acres going into conservation

Three new easements preserve farms, wildlife habitat

By Jim Mimiaga Journal staff writer

Wednesday, June 24, 2015 5:30 PM

The Cortez-based Montezuma Land Conservancy signed agreements with three private landowners in May and June to establish 1,035 acres of conservation easements.

The volunteer easements attach development limitations to property deeds in order to preserve open space and agricultural uses in perpetuity. Landowners enjoy significant tax breaks for conservation easements and sometimes are awarded cash payments.

South of Mancos, the Cox family put their 335-acre ranch into a conservation easement. The property represents southwest Colorado's agricultural heritage, and is part of the view shed of the San Juan Skyway along nearby U.S. 160.

The Cox ranch grows hay and grazes cattle, and is owned by three generations of the family. Terry Cox said the easement keeps the property in the family, and preserves a lifestyle for future generations.

"The reason we did it is to save the ranch for open space and ensure that our family and grandkids have a place to go where they can shoot guns, run around, and not see houses," Cox said. "(The easement) came with financial gain which we hope will allow us to buy another piece of dirt to expand our operations."

On top of its agricultural values, the property also provides a critical wildlife habitat corridor between Menefee Mountain and Weber Mountain, both BLM wilderness study areas. The Cox Ranch is also adjacent to more than 1,000 acres already under a conservation easement that includes Weber Creek.

"It's evident Mancos Valley residents care deeply about open space and agricultural heritage, and the Cox family are a great example of this ethic," said Jon Leibowitz, executive director for the Conservancy. "This easement strikes a balance between conserving agricultural lands and wildlife habitat."

On the southern edge of Cortez, Pat and Ann-Marie Owens put their 60-acre hay farm land into a conservation easement through nonprofit conservancy.

The irrigated property has water rights and puts up three cuttings of hay most years. It also has habitat for a mule-deer herd, black bears, mountain lions, geese and a variety of other wildlife.

"The natural beauty and farm and ranch environment is what brought us to Montezuma County," said Ann-Marie Owens. "By placing our small farm in a conservation easement, we will ensure our little plot of open space will never be subdivided or developed and continue to remain a productive hay farm."

Located adjacent to Road H, the property's hayfields and distinctive barns are highly visible to locals and visitors traveling along the San Juan Skyway.

"It's important from a community perspective because of its proximity to Cortez, the new high school, and visibility from the highway," Leibowitz said.

The Owens easement is within MLC's Central Corridors Program, a 1,010-acre area of conservation easements that includes the publicly open Hawkins Preserve and multiple protected farms and ranches. Funding for the program was through a CDOT grant.

On June 8, the MLC closed on a conservation easement that will protect 640-acres between Mesa Verde National Park and U.S. 160.

Since 1998, the MLC has partnered with local landowners to complete 80 conservation easements totaling 39,635 acres in Montezuma, Dolores, and San Miguel counties.

For more information, visit www.montezumaland.org or call (970) 565-1664.

New bill expands tax credits

A new Colorado law was passed on May 6 that benefits landowners with conservation easements.
Senate Bill 206 allows a larger tax credit for easement landowners. Larger landowners can earn up to $1.5 million in Colorado tax credits in a single year. A landowner with a smaller parcel of land will get up to an additional $25,000 in tax credits to help offset the increased transaction costs.
This is a significant increase from the previous formula of 50 percent of the donated value of conservation easement up to a $375,000 credit.
The Colorado individual conservation easement tax credit formula is now 75 percent of the first $100,000 value of the donated value, and 50 percent of any remaining donation up to total credit of $1.5 million.
Tax credits from conservation easements can be sold to those who need the credits, but it has been a challenge to find them.
According to Tax Credit Connection, the bill alleviates the problem of low availability.
They explain that SB206 is retroactive to Jan. 1, 2015. That means landowners will be creating more tax credits this year allowing more people to participate in the process.
Tax Credit Connection anticipates that Colorado will hit or come close to hitting the state's $45 million annual tax cap for 2015 now that SB206 has passed. In the past four years, the largest quantity of tax credits was $27 million.