Conservation
Investor Program
An
Innovative Solution
In situations where it is
not financially feasible for a land trust to purchase a property or
an easement on a property and no conservation buyers exist or UOL is
not interested in planning and carrying out a limited development, a
viable alternative is the utilization of conservation investors. A conservation
investor may be defined as an individual, corporation, partnership,
limited partnership, or limited liability corporation that acquires
a key conservation property and works collaboratively with a non-profit
land trust to protect the property's unique values.
What Is A Conservation Investor?
A conservation investor is
an individual or group of people which has the capacity to invest substantial
amounts of money in real estate and has an interest in preserving the
scenic, agricultural, historic or wildlife values of a property, in
addition to protecting and enhancing one's own property values (if the
conservation investor's property is located near the investment property).
The goal of the conservation investor is to generate a financial return
on the investment that is proportional to the accompanying investment
risks, while structuring the investment so that important land conservation
is achieved. In other words, their objectives are to simultaneously
"do well" and "do good". The goal of Utah Open Lands is to permanently
protect a threatened property, and, in certain cases, a conservation
investor may be the only viable option.
How the Program Works
Generally, a conservation investor acquires
property, donates a conservation easement to Utah Open Lands, and either
sells a portion of it to development, leases it for agricultural purposes,
or retains it for appreciation purposes. In other cases, the "charitable
investors" may invest in a working farm, fishing preserve, or ranch with
deed restrictions to allow only agriculture, forestry, or recreation
uses. In return, the investors receive a percentage of the operation's
income and tax benefits (for example, through depreciation of capital
assets, deductions for business expenses or deductions for mortgage
interest payments may be realized), in addition to the comfort of knowing
they have played an instrumental role in conserving open land.