Information about the Champion Lands deal
Champion Lands
Northeast Kingdom, Vermont
Application to the
Vermont Housing and Conservation Board
Co Applicants:
The Conservation Fund
Vermont Agency of Natural Resources
Vermont Land Trust
Champion Lands Page 2
VERMONT HOUSING & CONSERVATION BOARD
149 State Street
Montpelier, Vt. 05602
SUMMARY
Co-Applicant: The Conservation Fund, Vermont Agency of Natural
Resources and Vermont Land Trust
Contact Person: Nancy Bell (TCF)
Mike Fraysier
Carl Powden (VLT)
Tel.# 802-492-3368
802-241-3682
802-472-3208
Project Name: Champion Lands/Northeast Kingdom
Please give a brief summary of the project. Describe the location of the project, the number of acres of land conserved, any historic structures on the property, the amount and form of funding requested, other funding sources, other organizations involved in the project, the project goals, how the goals will be met, and who will benefit from the project.
The Champion lands are the largest undeveloped working forest in the State. The property encompasses 133,289 acres in 14 towns and gores, principally in Essex County. They are Averill, Avery's Gore, Bloomfield, Brighton, Brunswick, East Haven, Ferdinand, Granby, Lemington, Lewis, Maidstone, in Essex County; Burke and Victory in Caledonia County; and Morgan in Orleans County. Approximately 43 percent of the land lies in 10 organized towns. The remaining 57 percent lies within four unorganized towns.
The property has an hourglass shape running south from the Canadian border and just west of the Connecticut River. It is bisected in its "waist" by Route 105. The Champion property borders the conserved John Hancock Timberlands on the northwest and southwest (2 parcels totaling 31,493+/- acres). It abuts The Conservation Fund's 5,000 acre McConnell tract on three sides and adjoins the 2,000-acre Wenlock Deer Management Area, a protected piece of the State's largest deer wintering area of 12,000 acres. The remaining 10,000 acres of deer wintering area is on the Champion lands.
The Champion property has been identified as significant for protection on a State and National level for more than a decade. The Vermont Agency of Natural Resources, the United States Fish and Wildlife Service (USFWS) and The Nature Conservancy have recommended conservation of the highest order for a large portion of this property.
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These holdings contain approximately 90 percent of the Nulhegan River watershed. Thirty miles of the Nulhegan and its major tributaries (third and fourth order streams), as well as 11 miles of Paul Stream and 3 miles of Moose River. The riparian resources on the Champion lands are considered to be of national and statewide significance. The property encompasses the complete shoreline of 15 lakes and ponds. There are 26 Natural Heritage Sites with endangered, threatened and rare species and/or communities. More than 9,000 acres of this tract is above 2,500 feet in elevation. There is an extensive, well-maintained private road system.
In addition to habitat considerations, this property is critically important to recreation and tourism in the region. The land is actively used for hunting, fishing, hiking, snowmobiling, snowshoeing, cross country skiing, canoeing, kayaking, and boating. In addition, there are between 150 and 200 private camps on leased lots spread throughout the property. Many of Vermont's bicycle touring businesses schedule regular trips through the area. The Champion lands are frequently alluded to, although not by name, in every major guidebook and brochure touting the Northeast Kingdom.
In the winter, Island Pond becomes the snowmobile capital of the Northeast. This would not be possible without access to Champion's property. Over 400 miles of snowmobile trails - 10% of VAST's entire statewide network - exist on the Champion lands. This dependence underscores the importance of ensuring continued public access, even as the land moves into new ownership.
Following Champion's sale announcement, the Department of Forests, Parks and Recreation assembled a panel of 31 scientists, land managers and foresters to study the Champion lands and make recommendations. The panel was called the Champion Lands Review Team (CLRT). The Team's December 1997 report, forms the basis for the overall conservation and disposition plan which is herein described. The plan described in this application includes transferring between 39,000 and 48,000 acres to State and Federal ownership. The 85,000 - 94,000 acre balance will be kept in private ownership subject to conservation, trail and public access easements.
The protection and disposition goals for this 133,289 acres are to insure that economic, ecological and public values are secured. Based on the recommendations of the Champion Lands Review Team and the availability and limitations on use of funding, these goals will be accomplished. The breakdown includes 60,000 - 70,000 +/- acres in working forest with perpetual conservation and access easements, 25,000 +/- acres in working forest with perpetual public access and conservation easements augmented with special protection zones, 17,000 - 26,000 +/- acres of the Nulhegan Basin owned in fee by the United
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States Fish and Wildlife Service (USF&WS) - Conte Refuge, and the remaining Nulhegan watershed of 13,000 - 22,000 +/- acres owned in fee by the Vermont Agency of Natural Resources. All lands will allow public access. Limited portions of the property may prohibit particular recreational activities based upon ecological impact considerations. For example, snowmobile trails through critical portions of the deer wintering area may be rerouted in order to lessen the impact on the deer herd.
The acquisition cost is $26.5 million. We are requesting a $4.5 million grant from VHCB to meet a match requirement from an anonymous, non-Vermont foundation of $4.5 million. Additional funding comes from the Freeman Foundation ($4 million) and the Conservation Fund ($13.5 million). The TCF funding will come from internal and external borrowing in anticipation of revenue from fund raising efforts and sales of lands in accordance with the recreation, habitat and timber production goals associated with this project.
TCF and VLT are committed to a joint fund raising campaign for the associated costs of this project including staff costs, closing costs, stewardship endowment and initial carrying costs. The two organizations have also agreed that any proceeds from the sale of lands in excess of the expenses incurred, will be used for additional land conservation in Vermont.
At the present time, the timber resource on this property is severely depleted. Much of the residual mature timber is of low quality. The regeneration is well established. With proper management, the timber resource will again become a major contributor to the region's economy. Given current markets and technology, it will be twenty years or more before thinning operations will begin to restore a level of economic activity that approaches what might have been possible, if earlier management decisions had been different.
The world's demand for timber is constantly growing while the resource dwindles daily. It is very possible that changes in technology and markets may alter the timetable described above. Regardless, the timber-based economic benefits to the region will be minimal in the short term given the current stocking of the Champion lands. The recreational benefits associated with this project will be immediate, ensuring public access, protecting water resources and maintaining the forest for a myriad of sporting uses.
The protection of these lands is significant statewide and nationally. Of the 2.5 million acres of northern forest that have changed hands in the past two months this year, this will be the first tract of this magnitude, to contain a conservation component The Champion lands are a legacy worthy of protection for future generations. VHCB's role is critical to the protection of that legacy.
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Essex County is the most economically impoverished county in the state. Its heritage is a wealth of landscape that has been sold out from under it, load by load. Absent a conservation strategy, these forests will continue to be exploited, the lands will ultimately be parcelized and developed, the shorelines and special places degraded, and public access denied, all at the expense of the rural communities whose livelihood and heritage is integral with this land.
A partnership of conservation organizations, private timber interests, state and federal agencies are working to conserve this land and its values. This is the first and most important step in providing future generations with opportunities that would not otherwise arise locally, regionally, statewide or elsewhere in New England.
This is not only the first chance the public has had to protect the rich natural and cultural resources of these lands, it is almost certainly our last. The real opportunity here lies in a bold vision and commitment to the health and long term stewardship of the natural and human communities. There is no doubt about the importance of the habitat, recreational and timber resources associated with this proposal. The question in play is our willingness to seize the opportunity before us.
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VERMONT HOUSING & CONSERVATION BOARD
APPLICATION FOR CONSERVATION PROJECT FUNDING
Project Name: Champion International
Date: 11/2/1998
Co-Applicants: The Conservation Fund, Vermont Agency of Natural
Resources and the Vermont Land Trust
Address: Nancy Bell, P.O. Box 368, Shrewsbury, VT 05738
Mike Fraysier, 103 South Main Street, Waterbury, VT 05676
Carl Powden, PO Box 625, Hardwick, VT 05843
Telephone Number: 802-492-3368 802-472-3208 802-241-3682
Fax Number: 802-492-3368 802-472-9735 802-244-1481
Contact People: Nancy Bell Carl Powden Mike Fraysier
Status: 501 (c-3) 501 (c-3) Public Agency
Project Location (town and county): This project encompasses 133,289 acres in 14 towns and gores, principally in Essex County. They are Averill, Avery's Gore, Bloomfield, Brighton, Brunswick, East Haven, Ferdinand, Granby, Lemington, Lewis, Maidstone, in Essex County; Burke and Victory in Caledonia County; and Morgan in Orleans County. (See Appendix XI)
Total number of acres conserved: 133,289
Number of housing units: N/A
VHCB Grant Request: $4,500,000
TOTAL VHCB FUNDS REQUEST: $4,500,000
The VHCB requires applicants to make the following contacts in writing to inform appropriate parties of the project: 1) regional planning commission; 2) appropriate municipal officials; 3) the Division for Historic Preservation on all farmland conservation projects, and if the project involves alterations to a building more than 50 years old, or new construction. You may use the attached Summary to make these contacts. Have you made these contacts? If not, why not?
The co-applicants have not made any of the contacts described above, due to the bid process and confidentiality requirements imposed by the seller.
VHCB awards are a matter of public record. The co-applicants would like to be involved in any publicity associated with this project.
1 . ORGANIZATIONAL
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(a) Briefly describe the history and purpose of the organization which is applying
The Conservation Fund is a publicly supported [501(C)(3)] charity whose mission is to advance land and water conservation in America. Since 1986, the Conservation fund has forged creative partnerships with public and private entities to purchase and protect over 1,500,000 acres nationwide in 49 states. The acreages combined fair market value exceeds $700 million. Acquisitions include wetlands, wildlife and endangered species habitats, Civil War battlefields, offshore islands, aquifers, public greenways, river corridors, working forests, and other important open spaces. It has transferred the majority of these properties to federal and state agencies. The Fund has acquired, optioned, or leveraged 15,000 conserved acres in Vermont, in addition to assisting with the Hancock Legacy project of 31,000 acres. The Fund is a registered charity in Vermont. Information on Vermont Land Trust is on file with VHCB.
(b) Will the applicant be holding title to the property? If not, who will be holding title? Is that organization eligible for Trust Fund assistance? Provide the information requested above about that organization as well.
The Conservation Fund will initially take title to the property at closing. All grant money will flow through The Conservation Fund and The Conservation Fund will provide the necessary internal financing. The lands designated "working forest" would subsequently be conveyed to The Conservation Fund and Vermont Land Trust jointly, or to a separate entity controlled by the two organizations. At this time, the expectation is that the State of Vermont will ultimately own a large parcel. Information for all entities is on file with VHCB.
(c) Describe any other entities or organizations that will be involved in the project.
The State of Vermont, The Nature Conservancy, USF&WS Region #5, Conte Refuge, Vermont Land Trust, and The Conservation Fund have been meeting to discuss the Champion lands for almost a year and continue to collaborate. The expectation is that this collaborative effort will continue and that many of those involved will continue their involvement into the foreseeable future.
AMOUNT AND FORM OF ASSISTANCE SOUGHT (i.e. loan, grant, grant/loan combination) Please specify payment terms on the loan. A grant of $4.5 million is sought. This grant will leverage a matching grant of $4.5 million as well as other acquisition funds totaling $22 million.
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3. PROJECT DESCRIPTION On a separate page(s), describe the project and its goals, including the following:
(a) Need - Describe the need for the _project, the urgency of that need, how the need was determined. Please give specific demographic data, local studies, etc.
In October 1997, Champion placed 300,000 acres in Vermont, New Hampshire, and New York on the market. Following Champion’s announcement, Governor Dean expressed his desire to work with interested parties in order to protect the public values associated with the Champion lands. This began a collaborative effort involving the State of Vermont, The Conservation Fund, The Nature Conservancy, USF&WS Region #5, Conte Refuge and Vermont Land Trust. The results of this work are represented in this application,
As it turned out, Champion's announcement was the first of several announcements by pulp and paper companies that they were selling major holdings in the northern forest. In the past two months 2.5 million acres in Maine have changed ownership. In most cases, the public learned of the sale only after a contract had been signed, with little or no opportunity to protect public values in these large, undeveloped properties. All attempts to slow the process and allow the time necessary for commitment of the public funds for protection of the most significant portions of these lands have been unsuccessful.
Fortunately, Champion's process has been somewhat different. After considerable delay, Champion released a prospectus in mid-June beginning a two-stage bidding process. Interested purchasers could bid on all or part of the property. The first bids were submitted in late July. None were accepted. Some of the bidders, including The Conservation Fund, were invited to submit second round bids. TCF was informed in late October that it was the successful bidder for all of the lands in New York, New Hampshire and Vermont. A contract is being prepared and should be signed by the middle of November. There will be a 45 day "due diligence" period for legal and environmental review. The closing on the Vermont lands is expected to occur in late January.
The portion of the funding being sought from VHCB is critical to the success or failure of this project. Not only are TCF and, to a lesser degree, VLT taking substantial risks in pursuing protection of these lands, the state commitment is very important to the foundations that have pledged support for this project. One funding source is requiring an equal match from the state.
Approximately 40,000 acres of this property have state and/or national significance because of their ecological value. The Nulhegan Basin and Yellow
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Bogs have some of the richest natural diversity in Vermont. The Northeast Highlands boreal forest is unique to the Northern Forest region.
Deer
The state's largest deer wintering area is located within the Nulhegan Basin. The Wenlock Wildlife Management area includes 2,000 acres of the 12,000 acre wintering area. The remaining 10,000 acres is on Champion lands. Many local citizens report that the lack of cover on the Champion lands has caused the deer to "yard up" on smaller parcels of private land along the Connecticut River where there is better cover.
Champion entered into a voluntary management agreement with the Vermont Departments of Fish and Wildlife (VFW) and Forests, Parks and Recreation (FP+R), committing Champion to managing the deer yard in accordance with deer biologist's recommendations for the parcel. While justifiably heralded, this agreement is not binding on Champion or future owners. In addition, there is a clause that states that if, during their ownership, Champion has an extreme need for softwood at some time in the future, there is a process which would enable them to harvest without consideration of deer wintering area requirements. (see Appendix VIII)
During the herbicide debate, Champion made it very clear that there will be a severe region-wide shortage of softwood in the relatively near future. This is substantiated by other companies with large, heavily cut land bases in Maine. Maine has the largest portion of the softwood in the northern forest region.
In private hands, the opportunity to capitalize on a very lucrative softwood market is in direct conflict with maintaining the wintering area for deer. Public ownership removes that inherent conflict and will protect all of the habitat values associated with the property for generations to come.
At the present time, the timber resource on this property is severely depleted. Much of the residual mature timber is of low quality. Overall, the regeneration is well established. With proper management, the timber resource will again become a major contributor to the region's economy. Given current markets and technology, it will be twenty years or more before thinning operations will begin to restore a level of economic activity that approaches what might have been possible if earlier management decisions had been different. The world's demand for timber is growing and the resource is dwindling daily. It is very possible that changes in technology and markets may alter the timetable described above. It is also very possible that some practices associated with trying to speed up the natural processes, such as the planting of non-native
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species and intensive approaches including the use of herbicides, would be detrimental to the biological integrity of the property.
Absent easements and public ownership, this resource is severely at risk. A successive owner, faced with a major investment and substantial carrying costs, will bear a tremendous burden with, at best, a minimal income from timber harvesting. Forced to look for revenue, a future owner may consider liquidation of what little remaining timber exists, marketing of exclusive lots for development, especially on the remote ponds, and perhaps the most lucrative option, the leasing of hunting, fishing and access rights.
For generations Vermonters have benefited from the generosity of the majority of landowners, especially the owners of large forest land parcels. Without any expectation of compensation and honoring a long-standing tradition, individuals and corporate landowners like Champion have provided free and, oftentimes unrestricted access to their lands for the full range of recreational activities. The existence of this tradition is not reason for complacency. We need only travel across Lake Champlain to the Adirondacks to see a possible scenario for the Champion land's future. Posted signs abound, indicating exclusive access rights leased to hunting clubs. While we acknowledge the financial challenges and rights associated with ownership, this is not a vision the co-applicants want to see take hold in Vermont, especially on a parcel of this significance. Prohibiting access, however, is a very real possibility as landowners seek a return on investment from property that no longer can even support the annual taxes and management costs from timber revenues and camp leases.
(b) Resource to be Protected - Describe the scarcity or uniqueness of the resource, and future use of the land. Will the Project result in the perpetual use of the resource in the manner described? If so, what legal instruments will be used to do so?
The Champion property has been identified as significant for protection on a state and national level for at least a decade. While much of the attention has gone to the ecological significance of the property, the recreational and economic importance of these lands is substantial as well.
The Nulhegan Basin and Yellow Bogs have some of the richest natural diversity in Vermont. The Northeast Highlands boreal forest is unique to the Northern Forest region. The United States Fish and Wildlife Service (USFWS), the Vermont Agency of Natural Resources, The Nature Conservancy, and most recently, the 31 member Champion Lands Review Team (CLRT) have recommended conservation of the highest order for a large portion of this property.
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The high concentration of outstanding resource values on the Champion lands has led to a level of inventory data and consideration that is unprecedented on any other privately owned property in Vermont. Given the significance of the resource and the magnitude of this request, an extensive appendix has been assembled to accompany this application. Please review the appendix materials (Appendices I - VI) for additional resource value information.
In December 1997 the CLRT, an interdisciplinary group of state, non-profit and private scientists, land managers and foresters produced a report that recommended a conservation strategy based on resource values in specified zones. The group considered four conservation alternatives with a majority of the members supporting the following approach which establishes four zones of protection:
Zone #1 - Highest Ecological Protection - Public Ownership
This zone should be primarily managed for biodiversity values to maintain its unique ecological integrity. Current recreational uses would be allowed to continue with the possibility that some roads may be closed in order to help restore natural processes. Given the biological sensitivity of these lands and the importance of managing for the maintenance of biological values, public ownership is recommended with low impact recreational use allowed. This application anticipates that these lands will be transferred to the USF&WS; Conte Refuge and the State of Vermont. The Vermont Housing and Conservation Board will co-hold easements on the State owned portions of the property.
Zone #1 incorporates the Nulhegan Basin and a major portion of its watershed, including Mollie Beattie Bog, an important natural community identified by the Vermont Non-Game Natural Heritage Program in 1989, and the Yellow Bogs area, a part of a unique wetlands complex identified as nationally significant in the 1990 USF&WS Regional Wetlands Concept Plan. Included in this zone are 16 rare or exemplary natural communities of seven types: black spruce swamp, spruce-fir-tamarack swamp, lowland bog, remote pond, tannic water lake/pond, warm acidic/circumneutral tallus and acidic/circumneutral cliff.
The Nulhegan Watershed has been identified as a Special Focus Area by the USFWS for the Silvio 0. Conte National Wildlife Refuge. More recently it has been the subject of petitions to the Vermont Water Resources Board for Outstanding Resource Waters and reclassification to
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Class A watershed. In addition to the unique riparian and wetland habitats, there are several ponds in this area, most notably Lewis Pond, an ultraoliogotrophic pond with seven rare or threatened plant and animal species. (See Appendix IV USF&WS/Conte).
At this time, any details associated with the ultimate disposition of this property are speculative. The applicants current thinking is that between 39,000 and 48,000 of the total 133,000 acres will be in public ownership. If these plans become reality, the USF&WS Conte Refuge will purchase 17,000 - 26,000 acres and the State will receive ownership of 13,000 -22,000 acres. All lands designated as Zone 1 would be included in these two parcels.
The amount of land expected to be in public ownership is guided by the work of the CLRT, as well as financial requirements associated with available funding sources. The CLRT recommendations and project design are generally consistent with the draft Vermont Lands Conservation Plan (see appendix). The CLRT recommended that Zone 1 should total 37,600 acres. The 11,400 acres of State owned land that are not part of the Zone 1 area will be managed for timber in accordance with any considerations necessary for the maintenance of biodiversity values.
The state's largest deeryard is also contained within this portion of the Champion lands. The state of Vermont already owns 2,000 acres of the 12,000 acre wintering area. The remainder is on Champion lands. Further detail about the deeryard and the threat associated with this portion of the property is addressed in 3(a). Maintaining this critical resource for deer is in direct conflict with managing this portion of the property for timber.
The proposed configuration will result in both state and federal ownership of portions of the wintering area. The State and Conte Refuge have discussed management of these lands and are committed to cooperating in order to maintain this highly significant resource.
Zone 2a: Private Ownership - Natural Areas Established Through Easements
These tracts have been identified by the Vermont Non-Game and Natural Heritage Program as special natural areas. These parcels are smaller parcels that are primarily dispersed throughout the southern portion of the property. They include Ferdinand Bog, West, Mountain Pond, Mud Pond, Dennis Pond, Wheeler Pond, Paul Stream Pond, and an old growth forest
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on East Mountain. Sixteen rare species and six significant natural community types exist in these areas. The report recommends that these areas be managed as natural areas through the use of easements. These parcels total approximately 3,700 acres. Zone 2b: Private Ownership - Easements Prioritized for Biodiversity Protection
This zone is recommended for forest management with a high degree of ecological integrity, the intent being the provision of intact forest corridors connecting public lands owned in fee, as well as protection for the sensitive areas included in the Zone 2a sites. An important attribute of this zone is that it links the Nulhegan Basin and Hancock Forest Legacy land to the north with Victory Basin to the south. These lands contain most of the ponds, lakes, and Heritage sites referred to in Zone 2a. The report recommended that these areas, which will include the lands within Zone 2a, will be privately owned and protected through the use of easements. The CLRT recommendation put 28,812 acres in Zone 2b. The project design proposed in this application will result in a combined acreage of Zones 2a and 2b of approximately 25,000 to 30,000 acres. The Vermont Housing and Conservation Board will co-hold easements on this portion of the property.
Zone 2c: Private Ownership Working Forest Easement
These lands should remain in private ownership with conservation and access easements ensuring sustainable forestry and public recreational uses. While the timber value is in the future on this property, it is a worthwhile investment. The soils are exceptional for growing spruce, fir, and northern hardwoods. The Champion lands have a reputation for producing high quality hardwoods exemplified by low heartwood volumes in sugar maple. The regeneration of these forests is excellent. Most young stands appear to be well stocked and will produce well over time with thoughtful management. The Vermont Housing & Conservation Board and the Vermont Land Trust will hold perpetual conservation easements on these timberlands. The CLRT recommendation treated 64,109 acres as Zone 2c. The configuration proposed in this grant proposal will result in approximately 60,000 - 70,000 acres of Zone 2c managed forest land.
While hypothetical, the configuration proposed in this application is 11,000 more acres of publicly held land than the CLRT recommendation. This is largely the result of funding conditions and availability.
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Recreation
The Champion property is critically important to recreation and tourism in the region. The land is actively used for hunting, fishing, hiking, snowmobiling, snowshoeing, cross country skiing, canoeing, kayaking, and boating. The travel and tourism industry in the Northeast Kingdom has, in recent years, come together as a very effective and collaborative force that is having a substantial impact. An example of their efforts is the magazine "Vermont The Northeast Kingdom" included in the enclosed materials. Many of Vermont's bicycle touring businesses schedule regular trips through the area. The Champion lands are frequently alluded to, although not by name, in every major guidebook and brochure touting the Northeast Kingdom.
In the winter, Island Pond becomes the snowmobile capital of the Northeast. This would not be possible without access to Champion's property. Over 400 miles of snowmobile trails - 10% of VAST's entire statewide network-exist on the Champion lands. This dependence underscores the importance of ensuring continued public access, even as the land moves into new ownership.
Continued public access to the entire property is a priority for the co-applicants, as well as for those who have been involved with us in discussions about this project over the past year.
Timber
Given the description of the ecological and recreational significance of this proposal, it might be possible to overlook the economic significance associated with the timber resources on this property. This is the largest privately held parcel of forest land in the state. It abuts the second largest private ownership of Vermont timberland. The heritage and economy of the region is inseparably tied to the timber industry. In the past, these lands supplied much of the timber for the Ethan Allen furniture mill in Beecher Falls, Essex County's largest employer. There are also three paper mills, numerous sawmills and a veneer plant within close proximity to the Champion lands.
At the present time, the timber on this property is severely depleted and much of the residual mature timber is of low quality. With time and proper management, a high value resource will return. Privately owned land, protected by conservation easements that protect the unique biological values associated with this property, while supporting the production and harvesting of high quality timber, will ensure that these lands continue to play a significant role in the heritage and economy of the region.
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(c) Are any public buildings on the property accessible to persons with physical disabilities in accordance with state and federal accessibility reguIations? Are public buildings adaptable to persons with physical disabilities?
There are no public buildings on this property at this time.
4. TRUST FUND ASSISTANCE
(a) What specific use will be made of the assistance from the Trust Fund? Describe why an allocation from the Fund is necessary for the project's viability. Be specific.
This request is being made in order to assure continued public access to the Champion lands for current recreational uses, including, but not limited to, hunting, fishing, hiking, snowmobiling, snowshoeing, cross country skiing, canoeing and kayaking. In addition, VHCB funds are being sought for habitat protection and to ensure that those portions of the Champion lands that are most appropriate for continued management for timber will be perpetually available for that purpose.
The funding details are not all in place at the time this application is being filed. TCF is anticipating the signing of a contract obligating it to pay $26.5 million for the property. Based on conversations with VHCB staff prior to the submission of this application, we are aware that if the Board decides to award this grant, there is not adequate funding in the Trust Fund to make the full $4.5 million available at the time of closing.
This is an unprecedented opportunity that will never again present itself. Securing this property for future generations will require an equally unprecedented approach. This project will not go forward without State funding. After discussion with the Administration and VHCB staff, we would like to ask that the Board consider the following approach:
1. $2 million in funding from VHCB's FY'99 appropriation,
2. Approval of $2.5 million in additional funding, pending legislative approval of Governor Dean's supplemental budget request.
Governor Dean will be requesting that the Legislature appropriate $5.5 million from the State's surplus to the VHCB Trust Fund with the intention that $1 million be available for affordable housing and $4.5 million available for land conservation. If the Legislature acts favorably, $2 million will be used to restore the $2 million that was used for the Champion closing. The remaining $2.5 million in the
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request will complete the $4.5 million grant for the Champion project. The $2.5 million from the VHCB will be matched with a $2.5 million grant from an anonymous non-Vermont foundation.
The $2 million from VHCB made available at closing will be matched with $2 million from an anonymous non-Vermont foundation. Also available at closing will be a $4 million grant from the Freeman Foundation. The remainder ($18.5 million) of the purchase price will be borrowed from TCF's revolving fund and external sources.
TCF's borrowing anticipates proceeds from the following sources:
1. State of Vermont legislative action authorizing the expenditure of the remaining $2.5 million VHCB grant.
2. A matching grant of $2.5 million from an anonymous non-Vermont foundation.
3. Federal authorization of approximately $7 million for the purchase of the portion of Zone 1 lands intended for purchase by the USFWS Conte Refuge
4. TCF and VLT Fundraising - The confidentiality requirements have made it extremely difficult to solicit additional grant sources and coordinate efforts with other non-profits. Both organizations will be launching an extensive fund raising effort following the announcement of the contract signing. Proceeds from this effort will be applied to the closing and associated costs, staff time, stewardship endowment and initial carrying costs. We estimate that the organizations will need to raise a total of $2 million if the organizations are to recover the costs incurred.
5. Sales of restricted land to private buyers - There is a considerable amount of work that will need to be done before the Zone 2 lands can be placed on the market. We anticipate that it will take at least one year to develop easements, identify sub-division boundary lines, negotiate with buyers and secure any necessary permits. Absent that information, estimating the proceeds from restricted lands sales is highly speculative. For planning purposes and pending more complete appraisal information, we have assumed that 85,000 acres of restricted land will sell for an estimated $100/acre. If correct, the gross proceeds from the resale of restricted land will be $8.5 million.
There has been no substantive discussion of the process for marketing the restricted lands. Following the development of easement conditions, TCF and VLT may elect to invite bids for identified Zone 2
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parcels, following a two stage process. The selection of fee owners may be based upon a combination of price, easement conditions and an assessment of the buyer's commitment to sound stewardship.
The confidentiality requirements associated with this purchase, coupled with public process requirements associated with public purchases, have hampered TCF's and VLT's ability to identify fee owners in advance of closing. The level of risk being taken, as well as the importance of a state role to foundation funding sources, makes the State contribution imperative, if this project is to be successful. The state contribution of $4.5 million will be leveraging a commitment of $22 million dollars for acquisition alone. VHCB is not being asked for any funds to cover the stewardship endowment or the associated acquisition and carrying costs related to this project. TCF and VLT will raise the funds necessary to cover these costs by seeking grants from other sources and from land sale proceeds in accordance with recreation, habitat protection and timber production goals stated in this application. At this time, TCF and VLT estimate that the associated closing and carrying costs will be approximately $6.75 million dollars.
While leveraging $22 million for acquisition, as well as an additional $6.75 in associated closing and carrying costs, the state's contribution of $4.5 million dollars will also be securing a natural, recreational and economic resource of not only state, but regional and national significance.
TCF and VLT have agreed that if they realize any proceeds from land sales in excess of the expenses incurred, these funds will be used to conserve additional land in Vermont.
(b) How does the project further the Trust Fund goals of "creating affordable housing for Vermonters" and/or "conserving and protecting agricultural land, historic properties, important natural areas and recreational lands"? (See 10 V.S.A. Chapter 15, Section 302.) If applicable, how does the project link these dual goals or help to achieve them both?
If successful, this project will protect one of the state's most biologically diverse resources, while securing continued public access for a full array of recreational uses and responsible stewardship of a highly productive timber resource. This is discussed in considerable detail in #3 (b) and #8. Supporting materials are contained in the appendix.
5. TIMETABLE What is the timetable proposed for completion project? For loan requests: What is the repayment schedule to the Trust Fund? What security will be given as collateral?
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Currently, the parties expect a closing as early as January 31, 1999, or as late as July 1,1999.
6. SITE INFORMATION - For Site Specific Projects
(a) Attach site plans showing the zoning, Planned housing sites, open space, significant natural resource features, archeological sites, etc. Please attach a site location map. If the project does not involve the protection of the entire parcel, show what will be protected and what will not.
This application applies only to those lands owned by Champion International Paper Corporation. There are a number of smaller parcels totaling 4,212 acres that Champion International Paper transferred to Champion Realty. These parcels will be marketed separately from the lands described in this application. The properties held by Champion Realty are detailed in the following table:
[this table does n ot contain its formatting]
Town # of Parcels Acreage Significance
Averill 5 603 includes camp lots
on Great Averill
and surrounding
lands
Granby 1 935
Guildhall 4 678 includes the
Sheridan
Mountain oak
stand parcel
Lemington 1 1402 Mount Monadnock
Maidstone 2 80 on Maidstone
Pond
Victory 5 514 in-holdings in
Victory State
Forest
Total 18 4212
(b) Please submit one set of current photographs of the subject property (actual prints) and photocopy the prints for attachment to copies. Color photocopies are appreciated.
(c) What is the present use of the site? Proposed use?
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The property is currently owned by Champion International Corporation. The lands have served as a source of timber for Champion's mills as well as other forest products producers. The lands have been heavily cut. The proposed use is thoroughly described in earlier sections of the application and supported by documents and maps in the appendix. Securing public access, protecting the multitude of ecological resources associated with this parcel and assuring sound stewardship of the forest for a continued supply of forest products from this property are the reasons this grant request is being filed.
(d) How large is the parcel? 133,289 acres
(e) What are its significant features?
This question is addressed in detail in sections #3(b) and #8 of the application. Additional detail is available in the appendix.
(f) If applicable, how many acres of prime soils or soils of statewide importance (as defined by the Soil Conservation Service) does the site contain? Attach a soils map with property boundaries shown.
Forest soils have not been mapped in Essex County. Paul Mulcahey's (TCF/VLT forestry consultant) analysis of the property (see 6 0) below) for TCF and VLT indicated that he felt that much of the property has highly productive soils. This is most true for those portions of the property that are in Zones 2b and 2c.
(g) Is the site recognized on the State or National register of Historic Sites or the Vermont Non-Game and Natural Heritage Inventory? (Consult the Vt. Division of Historic Preservation, the Department of Fish & Wildlife and/or the Vermont Natural Heritage Program.)
This property includes a tot al of 26 Natural Heritage sites. Many of the resources are of national significance as well as statewide significance. A complete list is provided in the appendix.
(h) Is any portion of the site in the floodplain? (See local floodplain zoning regulations or call the Agency of Natural Resources 244-6916.)
Portions of the property are in the floodplain. The acreage has not been determined.
(i) Are there any deed restrictions on the use of the property? If yes, what are they?
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We are unaware of any deed restrictions that would be in conflict with the intent of this grant request.
(i) What is the appraised value of the property? Please submit a copy of an appraisal that was done within the past six months. Have there been other appraisals within the past six months? If so, please explain.
Bob Lamprey completed a limited appraisal for the purposes of determining a range within which TCF could reasonably bid. Based upon timber inventory information supplied by Paul Mulcahey, he estimated the value of the property to be $26,519,335 and felt that anything between $23,919,000 and $29,185,000 would be reasonable. The sale price is $26,535,000. A copy of the letter summarizing his conclusions is contained in the appendix. (See Appendix XII) Mr. Lamprey's approach to an appraisal of this property does not assign a value to the public benefits associated with this property. This is largely because it would be very difficult to arrive at any conclusions based on sales of comparable properties in Vermont. Because Vermont does not have a tradition of marketing access rights, he feels there are no adequate comparables from which to assign a value for that benefit.
While the co-applicants are not qualified to assign a value to the benefits of access and habitat protection, we feel very confident that the public values associated with this project are substantial, and if lost, irreplaceable.
The timber cruise that was done for this property was a 200 point check cruise, stratified for differing cover types and stocking levels. The cruise cost $25,000 ($125/point). The purpose of the cruise was to provide a sampling of the stocking on the Champion land. Given the bid submission date and the number of parcels that came on the market last summer, neither the time nor the manpower existed for a cruise that provided statistical validity. According to Paul, a 5,000 point cruise would be required in order to provide property wide data that could be considered statistically valid on a town by town basis. Such a cruise would cost at least $130,000 and take approximately four months to complete, even if ten people were hired to complete the task.
Mr. Mulcahey is a former Champion employee who then worked for Meadowsend Timberland and is now a timberland investment consultant. When TCF and VLT talked with Paul regarding his confidence in the inventory numbers, he responded that based upon his familiarity with the property and his experience, he had a fair amount of confidence in the results of the cruise for the purpose of assigning values despite the number of plots taken.
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Based on the data available, Mr. Mulcahey concluded that the current stocking is approximately an average of 10.1 cords/acre. Assuming growth equal to .45 cords/acre/yr on the average stocking, it will be at least 20 years before stocking levels will approach a density that would support thinning activities. A parcel this size is not uniform. There are pockets where harvesting would be appropriate in the near future and other areas where a 20 year period is unrealistically optimistic. From a purely timber perspective, much of the land would benefit from treatments such as removing low quality, poorly stocked over story or thinning the thick regeneration, selecting the more desirable trees for release. These activities would oftentimes be considered pre-commercial, providing little or no income, but speeding the time necessary to get to a more profitable harvest.
Speaking as a forester familiar with conservation easements and timber land investment, and not as an appraiser, Mr. Mulcahey stated that he thought the restricted value of the lands identified for sale as restricted forest land (Zone 2c) could be expected to sell for $100 to $120/acre. There are small portions of the property that are more heavily stocked and should bring a better price. Similarly, there are areas where either the stocking or more restrictive easements would cause the restricted value to be lower.
(k) Is there a proposed closing or purchase and sales contract on the property? If so, include a copy. What is the date? Deadline or date of expiration? Is it renewable? Can the deposit be applied to the purchase price? Are there any special conditions?
TCF is expecting to have a signed contract in the near future. The contract will involve land in New York, New Hampshire and Vermont. A copy of the contract will be supplied to VHCB staff following signing.
(l) What were the previous uses of the property? Is there anything on the property or on adjacent property that causes concern about hazardous or toxic materials? If so, what is being done to address these concerns?
This property has been used for timber production and recreation. A limited hazardous materials assessment has been done by Champion and shared with TCF. To our knowledge there are no known hazardous or toxic materials. A hazardous materials assessment will be completed in advance of closing as part of the due diligence process prior to closing.
7. PLANNING
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(a) Is the project in conformance with adopted or proposed local and regional plans and zoning? If yes, how? If not, what is being done to assure conformance?
The goals of the Champion Lands project are to permanently protect the region's outstanding ecological and wildlife resources, to ensure a continuing basis for long-term, sustainable forest resource management, and to maintain traditional recreational uses. This project, with its unique partnership of conservation organizations, private timber interests, and state and federal agencies, is in substantial conformance with regional and local plans. Given the number of towns involved, additional detail regarding conformity to town and regional plans is provided in the appendix. (see Appendix XIII)
The CLRT recommendations and project design are generally consistent with the draft Vermont Lands Conservation Plan. (see Appendix V11)
Due to confidentiality requirements and the sensitive nature of negotiations, the co-applicants have not yet had an opportunity to meet with the affected towns to discuss this project. A series of meetings in the Northeast Kingdom will be scheduled in the near future, following TCF and VLT contacts with selectboard chairs in affected communities, the regional planning commission, members of the timber industry, snowmobile clubs and sporting groups. The results of these meetings will be shared with VHCB staff.
(b) What local and state permits are required? If applicable, where do you stand in both the local permit process and the Act 250 permit process? What steps or obstacles remain before you obtain these approvals?
Not applicable
8. LOCAL/REGIONAL SIGNIFICANCE What is the importance to the community, region, or state of the resource in question, i.e. the parcel of land or the structure(s)?
From an economic, recreational, and natural resource perspective, the Champion lands are of critical importance to the local communities. These lands are considered to be the heart and soul of the Northeast Kingdom. For many Essex County residents, their lives are inseparably connected to these lands. In most of these communities, Champion lands constitute the largest blocks of privately-owned, undeveloped forest land remaining in town. These lands have traditionally provided outdoor recreation opportunities to the public while helping to sustain the local forest-based economy which is so central to the region. (See
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attached LARC recommendation and the draft Vermont Lands Conservation Plan executive summary, Appendices V and VII)
The Champion lands also are of considerable regional significance. This property truly typifies, in both character and land use pattern, the lands that predominate the "Northern Forest" - a 26 million acre region spanning across the northern portions of Maine, New Hampshire, Vermont and New York that is nationally recognized for its unique natural, economic and cultural resources.
Habitats and Biological Significance
These holdings contain approximately 90 percent of the Nulhegan River watershed. Thirty miles of the Nulhegan and its major tributaries (third and fourth order streams), as well as 11 miles of Paul Stream and 3 miles of Moose River, are considered to be riparian resources of national and statewide significance. The property encompasses the complete shoreline of 15 lakes and ponds. There are 26 Natural Heritage Sites with endangered, threatened and rare species and/or communities. More than 9,000 acres of this tract is above 2,500 feet in elevation. There is an extensive, well-maintained private road system.
Approximately 40,000 acres of this property have state and/or national significance because of their ecological importance. The Nulhegan Basin and Yellow Bogs have some of the richest natural diversity in Vermont. The Northeast Highlands boreal forest is unique to the Northern Forest region. Additional detail on the habitat and biological significance of this property is included in sections #3(a) and #3(b) and in the appendix.
Deer
The states largest deer wintering area is also contained within the Nulhegan basin portion of the Champion lands. The state owns 2,000 acres of the 12,000 acre wintering area. The remainder is on Champion lands. The protection of the Champion property will ensure that management choices for this portion of the property will be guided by habitat needs rather than rates of return on investment in a hot softwood market. A more extensive discussion of the significance of the deer wintering area and the threat to this critical resource is contained in #3(a).
Timber
Given the description of the ecological and recreational significance of this proposal, it might be possible to overlook the economic significance associated with the timber resources on this property. This is the largest privately held
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parcel of forest land in the state. It abuts the second largest private ownership of Vermont timberland. The heritage and economy of the region is inseparably tied to the timber industry. In the past, these lands supplied much of the timber for the Ethan Allen furniture mill in Beecher Falls, Essex county's largest employer. There are also three paper mills, numerous sawmills and a veneer plant within close proximity to the Champion lands.
The timber resource on this property is severely depleted. A more detailed presentation of information on current stocking is presented in #3 (a) and #6 (i). Our analysis of the lands designated for continued management for timber indicate that while quality and stocking is low (averaging 10. 1 cords/acre), the land is productive. Projections for the world's demand for timber indicate a high demand for quality hardwood and softwood in the future. With time and proper management, the timber resource will again become a major contributor to the region's economy.
Recreation
The local economy will not experience much economic activity resulting from the timber resource on this property for the next twenty years or so. The merchantable resource is largely gone. It is a necessary and opportune time for the recreational industry to expand and, assuming securing of the Champion property, all of the factors are in place for that to occur. Recreation dollars are generally spent in the rural communities where the resource is located.
What was largely an absentee, extraction based economy which liquidated tens of millions of dollars worth of timber in only 14 years, will transition to a more diverse, local, service based economy. That process has already begun. The timber is gone and with it went a large number of local jobs. As the timber returns, the recreational experience will improve and the forest products from the Champion lands will once again support harvesting, trucking and manufacturing jobs for residents. According to a 1993 study done for the Northern Forest Lands Council, each 1,000 acres of forest land in Vermont supports 1.1 manufacturing jobs and 4.2 travel and tourism jobs.
The public recreation uses of the Champion lands are many and vary seasonally. Hunting, fishing, hiking, canoeing, kayaking, boating, biking, snowmobiling, cross-country skiing, and snowshoeing are the most popular uses. The property is alluded to, mentioned, though not by name, in every major guidebook and brochure touting the Kingdom's resources - "the deep, dark forests of Essex County", "the country's vast forested lands", and Vermont's most "unspoiled region".
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This property is 4 hours, by car, away from Hartford, Connecticut, 3 1/2 hours from Boston, and 2 1/2 hours from airports in Montreal, Burlington, and Manchester, New Hampshire. Millions of people a half day away have access to these lands.
There is an increasing spirit of collaboration among a diverse group of business and cultural interests in promotion of the region and the benefits have begun to appear. An example of the efforts being made, is the publication "Vermont The Northeast Kingdom" published by the Northeast Kingdom Travel and Tourism Association. This publication is included in the packet. State agencies, local organizations, and businesses are just beginning to keep track of consumers, use, and statistics. The tri-county (Caledonia, Essex, and Orleans) Northeast Kingdom Chamber of Commerce has experienced the doubling of inquiries in the last two years. International tourism to the northeast is growing at double the national average.
The broad range of economic values of the Champion lands to the region is evident in the following information.
The many ponds, lakes, and river systems on the Champion lands provide ample opportunity for water-based recreation. A 1996 report entitled Rivers, Recreation and the Regional Economy which was done by the Northeast Natural Resources Center for the Connecticut River Joint Commission, addresses the economic importance of water-based recreation on the Upper Connecticut River. The basis of the study was a survey of New Hampshire businesses that provide goods and services related to water-based recreation. The information can generally be extrapolated for Essex County which is the western watershed of the Upper Connecticut River.
The results from the survey demonstrate the value of the water resource to businesses and its role in the rural economy for the community near the Connecticut River.
The report found that business respondents supported the following six principle conclusions:
1. Water-based recreation in New Hampshire along the Upper Connecticut River is a $26-$31 million business, creating a minimum of 650-750 jobs.
2. Fishing opportunities should be improved.
3. In-stream flow levels needed to be increased, especially for fish.
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4. Increased public investment, particularly for increasing access (specifically for fishing, swimming, canoeing and kayaking), improving water quality and for habitat management.
5. There was overwhelming interest in minimizing environmental impacts associated with increased recreation. Respondents supported the establishment of a management framework to accompany tourism promotional efforts in order to educate tourists and businesses about sustainable recreational use.
6. Increased efforts in marketing and advertising.
Communities in North Country New Hampshire and the Northeast Kingdom are similar in their economy and ideology. This report indicates that water-based recreation has important economic value that could be wisely developed over time. As the forests in Essex County regenerate and wise stewardship dictates management practices, the water quality and scenic values of the myriad streams and lakes will improve dramatically. This will provide the region with a significant marketable niche in the tourist trade.
When water resources are accessible and protected through conservation easement or public ownership, they augment the economy in perpetuity. In addition, these resources will provide healthy fisheries that support another recreation base.
Hunting/Fishing:
Hunting and fishing are extremely popular sports in this area. While the Vermont Department of Fish and Wildlife does not categorize data to give specific hunter numbers for this region, they do know a disproportionate number of people hunt in the Kingdom that purchased hunting licenses elsewhere in Vermont. The vast expanse of forest lures many out of state sportsmen and women as well.
Essex County holds a particular mystique for the hunting community for producing the states largest deer. For many years, record holding bucks have come from Champion lands in Victory and Lemington. Most of the state's largest deer yard, 12,000 acres, is on this property as well.
Additionally, these lands are the core habitat for moose production in the State. The growing moose population is another draw to Essex County. In 1997, 9,000 people paid $10 to have a chance to receive one of 165 hunting permits. Wildlife watching and guide services are becoming increasingly popular.
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Camps
There are between 150 and 200 camps located on leased lots and spread throughout the property. These camp leases have oftentimes been in the same family for generations. The co-applicants will develop easements which allow the owner to continue the practice of leasing camp lots on those portions of the property which will be sold to private investors. The agencies associated with the publicly held lands will determine their own methods for handling the question of camp lots. Our early indications are that no drastic changes will be forthcoming. We expect that the state and federal owners will establish a time period during which lease arrangements will be renewable. At some point in the future it is possible that the practice of renewing camp leases on public lands will need to be discontinued, but that has not been determined at this time. It is probable that some camps will need to be relocated from some of the more sensitive portions of the property to other areas that are less ecologically sensitive.
Camping:
Information from the Vermont Department of Forests, Parks, and Recreation for the Northeast Kingdom's nine state parks show near capacity seasonal use. The three-year seasonal average for day visits is 57,908 people and for camping 63,061 people. This is 13.5% of the total park visits statewide.
Biking:
There are at least a dozen companies that run bicycle tours in the Northeast Kingdom. Of these, Vermont Bicycle Tours of Bristol offers three different five day/five night tours weekly into or through Essex County. The 15-20 people per tour stay at Bed and Breakfasts along the way. Bike Vermont of Woodstock operates weekend trips and 6-day inn to inn tours throughout the biking season. Both organizations filled this season's tours and will add trips to the Northeast Kingdom next year. Additionally, there is increasing mountain bike use of the extensive road network on Champion lands.
Winter Sports:
The most intensive public recreational use of Champion's property is for snowmobiling. Island Pond is billed The Snowmobile Capital of Vermont. The Vermont Association of Snowtravelers (VAST) has more than 400 miles of designated trails on Champions roads. This equals 10 percent of their total trail system statewide. (See Map IX in the Appendix).
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A spokesperson for VAST stated their membership has doubled in the last five years and that the majority of users in the Northeast Kingdom are from out of State, primarily from the other New England States and New York. There is a significant boost to the local economy from this clientele in restaurant and lodging use and accessories purchases.
Other winter recreation in the area includes snowshoeing and cross-country skiing at numerous touring centers and inns, and alpine skiing at Burke Mountain Ski Area.
Summary:
The indivisible link between a healthy natural resource base and a viable recreational economy is obvious. Timber management in upper elevation watersheds has significant impact on water quality in rivers, lakes, and ponds downstream. Maintaining conserved large tract ownership ensures ecological integrity and enhances biodiversity. The opportunities to "get away from it all" are increasingly more rare. An intact, well-managed forest in combination with a large natural area will improve habitat conditions on these lands while expanding economic opportunities for Northeast Kingdom residents.
9. LINKAGE The Vermont Housing and Conservation Board will give highest priority to those applications that address both goals of the Act which established the Trust Fund (10 V.S.A. Chapter 15, Section 302). However, the Board recognizes that in certain cases it may not be practical or even desirable to meet both goals. If this is not a dual goal application, how is the community in which your project is located responding to the other purpose of the Trust Fund? For example: What has the town done to deal with problems of affordable housing for lower income people? Does the town have public or other forms of federally assisted housing? Have they sought community development funds for housing purposes? What does the municipal plan or zoning say about multi-family housing developments? Does it largely exclude them?
Most of the towns within which Champion lands are located have very small populations. According to Ed Stretch of the Gilman Housing Trust, the town of Brighton has 13 units of affordable housing at this time and would like to build additional housing for seniors. Ed is not aware of any resistance to affordable housing efforts within Essex county and reports an increasing number of inquiries from communities seeking assistance.
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10. COMMUNITY SUPPORT How has the community supported the project? Were both public and private community members contacted about the project and involved in planning it? Are they represented on the board of the organization? Please document. Community should be considered in the broadest sense in this question, and should include municipal officials, local and regional organizations.
Due to confidentiality requirements and the sensitive nature of negotiations, the co-applicants have not yet had an opportunity to meet with the affected towns to discuss this project. A series of meetings in the Northeast Kingdom will be scheduled in the near future, following TCF and VLT contacts with selectboard chairs in affected communities, the regional planning commission, members of the timber industry, snowmobile clubs and sporting groups. The results of these meetings will be shared with VHCB staff.
In the broader sense, and considering the state and region-wide significance of this project, there has been extensive inventory and planning work associated with this parcel. That work is well represented throughout this application and the accompanying materials in the appendix.
11. STEWARDSHIP How can the Housing and Conservation Trust Fund Board be assured that its investment will be protected and its goals accomplished in the long run? How will you meet your stewardship responsibilities? What are your plans for funding and keeping your organization active on an ongoing basis? What will happen to the property in the event of your organization's dissolution? In housing projects, how will resident involvement be assured over time?
The conservation easements will be enforced by the Vermont Land Trust which manages a stewardship program for all properties requiring monitoring. Provisions have been made for the continued stewardship of this and other conservation projects in the event of the Trust's dissolution. It is probable that other organizations and/or agencies will be involved in the monitoring of at least portions of this property, especially for those portions of the property that are more biologically sensitive. Discussions are occurring on the topic of additional entities with stewardship and monitoring responsibilities, but nothing has been finalized at this time.
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12. LEVERAGE What form of leverage does the project contain? (i.e.matching funds, fundraising, bargain sales, donations of land or conservation restrictions, volunteer labor, donations of materials, etc.)
The state contribution of $4.5 million will be leveraging a commitment of $22 million dollars while securing one of the state's most significant natural, recreational and economic resources. In addition, there are no funds being sought for stewardship endowment or for what will be very substantial associated acquisition and carrying costs. At this time, TCF and VLT estimate that these costs are likely to be in the $6.5 million dollar range.
TCF and VLT have agreed that any proceeds from land sales in excess of expenses incurred, will be used for additional land conservation in Vermont.
13. BUDGET Please attach a budget for the entire project including, but not limited to the VHCB contribution. The budget should show how each source of funding will be applied to project costs (i.e. VHCB funds - acquisition: Show all sources and uses of funds. The budget should cover the first year and as long a time period as is relevant thereafter.
(a) Describe alternative sources of funding that have been solicited in the past year or which are under past or current consideration, and the likelihood or availability of such sources.
Confidentiality requirements limited the amount of solicitation that could occur. Given our best information at this time, funding from four foundations, coupled with borrowing will ultimately be used to get this project to closing. Contingent upon public process requirements, and favorable legislative action, funds from the USFWS/Conte Refuge and private fee purchasers are expected to make the repayment of loaned funds possible.
(b) Are there any contingencies related to these funds?
An anonymous non-Vermont foundation, which has pledged $4.5 million for the project, is requiring a 1:1 equal match from the State of Vermont.
