During the February 6, 2003 CSLT meeting, Pelee Island landowner Dave Kraus shared his experiences related to the donation of a conservation easement to The Nature Conservancy of Canada on his Victoria Road property.
Dave purchased his 37 acre Pelee Island property in 1995. Features on the property include a wide natural hedgerow, an edge of a natural woodlot, disturbed habitat with restoration underway on a six acre field, and agricultural land still under cultivation.
Dave was approached by The Nature Conservancy of Canada in 1998 to place an easement on the property which is 20 acres agricultural and 17 acres natural habitat. At that time there was a big push on regarding endangered species. Other Pelee Island conservation easements donated to The Nature Conservancy of Canada include Margaret Atwood's 50 acre property and Ben Porchuk's 55 acre property.
The work on the conservation easement was a long process, two years from start to finish and the actual signing. The NCC was very relaxed and easy to deal with. The paperwork was slowly done. Dave sketched a map of the property and thought about what he wanted done and his future plans for the property. Where will it all end up? The easement is for 999 years.
There is the restored area, the laneway, the campground site, and a driveway into the field where there may be a future residence. Agriculture on the property can continue forever but once habitat is restored, it is protected as natural habitat.
On Ben's land, prairie grasses have been planted in 1/4 acre strips over the last two years.
Dave may dig shallows on his property as the property is right on the edge of the former "wet, timbered land" which existed 150 years ago or so.
The original sketch map was done by Dave, then transposed by the NCC.
Other restrictions within the conservation easement include utilities for a cottage only, no excessive outdoor lighting, and firewood which may be removed yearly, up to one cord. There is to be no hunting, no fishing, no moving of soil, and no exotic species to be planted.
Dave said with regard to the legal aspects, the agreement seems restrictive, almost scary in its restrictions, but working with the NCC has been great. There is still the possibility of changing small things as the first landowner with the conservation easement, but this will not be the case for the next landowner.
Dave felt the process was expensive to the NCC as there was a lawyer involved, a legal appraisal that likely cost thousands of dollars as the appraisal determines the worth of the property before the restrictions and after the restrictions. Then Environment Canada approves the appraisals. Dave was given an income tax receipt for the difference.
Dave bought the property for $30,000 in 1995 with the property appraised in 2000 at $80,000. An income tax receipt was received for $50,000 and was used over 2 or 3 years when filing income tax. Dave estimates that he saved $10,000 to $15,000 in income tax due to the $50,000 income tax receipt. Dave could have spread income tax benefits over five years or used in one year. When Dave filed his income tax, the conservation easement was new to his accountant so a lot of questions back and forth.
Dave did not feel his property was worth less. Dave can still do what he wants to do on the property. He can still farm on the property and he can still sell the property as residential property. Dave was encouraged to have a lawyer look at the documents which NCC gave Dave but in the end Dave did not do this as he felt comfortable with the documents.
NCC staff member Graham Buck has monitored the property yearly since the donation of the conservation easement. Dave has not met with Graham during the monitoring.
The property owner has the same goals as NCC - both want to make sure the restrictions are enforcible.
If the landowner is doing something awful, the NCC could take the landowner to court. If something adverse is happening on the property, there would be a stop work order, restoration of site or court appearance. The contract is with three parties - the government, the NCC and the landowner. The conservation easement is registered on the deed and shows up on property tax bills.
The Municipality of Pelee was concerned that the easement would cut down on property taxes. Dave is still paying taxes on a property assessed at $80,000. Taxes on the property have not gone down.
MNR Ecologist Allen Woodliffe checked for Vulnerable, Threatened and Endangered Species on the property. Prairie Rose and Eastern Fox Snake have been identified. A juvenile Blue Racer has been seen on the edge of the property and a female Lake Erie Water Snake has been observed which likely traveled up a drainage ditch.