Information about The Champion Lands Deal

HOWARD DEAN, MD. Governor
State of Vermont
OFFICE OF THE GOVERNOR
Montpelier 05609
Tel.: (802) 828-3333
Fax: (802) 828-3339
TDD: (802) 828-3345
January 28,1999
Honorable Michael Obuchowski

Speaker of the House
Vermont House of Representative
15 State Street
Montpelier, Vermont 05602

Honorable Peter Shumlin, President pro-tempore,
Vermont Senate
115 State Street
Montpelier, Vermont
05602

Re: Deed restrictions Vermont will hold on the "Champion Lands"

Dear Speaker Obuchowski and Senator Shumlin,

The Champion land deal is a unique opportunity for Vermont. For $4.5 million, Vermont is buying a guarantee forever of two things on the "Champion lands": (1)public access and (2) that the woods will be used as a working forest and an economic resource for the Northeast Kingdom. This is important because if Vermont does not participate in this deal we run the risk of seeing that land carved into private preserves, cutting Vermonters off from the land.

The Champion land sale, by closed private bid, could have been devastating to Vermont and the Northeast Kingdom. Across Lake Champlain in the Adirondack mountains many prime areas of back-country real estate is closed off; limiting, fishing, and other outdoor uses are allowed only to those who pay huge fees. New York State, in fact, is paying over $25 million to obtain lands and easements from Champion as part of this same land deal to prevent more land from being taken out of public use. Similarly, the Conservation Fund's purchase of the Champion lands in Vermont, with Vermont's participation serves the same purpose as New York’s purchase in New York.

The deal is structured in three parts. Subject first to Vermont Housing and Conservation Board's (VHCB), a public agency, mortgage and then, once approved by VHCB, the easement restrictions, approximately 85,000 acres, will be resold to timber investors. This land will continue in its traditional uses with economic benefits. Approximately 22,000 is being given to Vermont by a private foundation. This land will be held by the Department of Fish and Wildlife and is also subject to VHCB's easements described above. The Conservation Fund is selling approximately 26,000 to the United States Fish and Wildlife Service. Vermont's $4.5-million appropriation gives us great say in how these lands will be managed, as explained later in this letter. We first set forth below how the requested appropriation will work to guarantee access and a working forest.

The VHCB will hold a mortgage on these properties until such time as we are satisfied that the easements described below are in place and are working. VHCB will hold permanent, enforceable conservation and public access easements on 107,000 acres of land currently owned by the Champion International Corporation. In other words, for about $42 an acre, Vermont will guarantee forever public access as exists including hunting fishing, trapping and other traditional forms of recreation, as well as guarantee sustainable timber harvesting as described in detail below. VHCB will not release the mortgage it will hold on this property until specific deed restrictions which run with the land in perpetuity are in place. These easements will be enforced as set forth by existing statute, 10 V.S.A. ch.15, by VHCB, the Vermont Land Trust and, if necessary , by the Vermont Attorney General. The easements shall be held jointly by VHCB and the Vermont Land Trust. These easements are strong assurances that the land will continue to be open and to be used as it is today. Specifically, we seek the appropriation of $4.5 million to the VHCB to buy the protections set forth below.

Purposes of the VHCB Purchase of Easements.

1. The working forest lands, approximately 85,000 acres, shall remain in timber production through a "working forest" easement which also provides perpetual public access. The lands shall be privately owned and managed for sustainable production and harvesting of timber and other forest products. This is guaranteed in two ways. First, the easement language will require sustainable timber practices which will meet the economic objectives of timber investors and allow harvesting of net growth, once the forest is restocked. Second, these lands will be enrolled in the forest land category of the Current Use Program, which requires the forest to be managed.

2. A fundamental and long-term goal of this deal is to provide an economic engine for the value-added forest products industry in the Northeast Kingdom. By creating a sustainable forest resource through “working forest” easements, private enterprise is assured that a high quality timber resource will exist in the region.

3. The perpetual public access easement shall require public access for hunting, fishing, trapping hiking, snow shoeing, cross-country skiing and other recreational uses.

4. The public access easement shall guarantee the network of snowmobile trails will remain, at least as extensive as today's network throughout the lands. VHCB will require that the owners of the land work cooperatively with VAST and local snowmobile groups to maintain the snowmobile corridors.

5. The Champion Lands have a vast network of roads. Public access will continue on these roads as it has existed. We understand that VAST uses these roads in part as its trail network. That will continue. Horseback riding, bicycling, cross-country skiing and other recreational uses, at least as extensive as what exists today will also continue.

Assurances On Other Important Issues

We have been asked about certain other important issues regarding this land deal. We set forth below Vermont's policy to address questions about camps on public lands, the tax implication of this deal, and federal ownership.

1.Camp Leases - The Agency of Natural Resources will extend the current five-year leases for camps on the proposed state lands for the life of the lease holder for up to fifty years (and not less than twenty years). The Federa1 Government has agreed to follow the State's lead on this policy. No changes will occur for camps leased on the privately held portion of the Champion lands.

2. Taxes -The Dean Administration will propose a one-time appropriation of
approximately $260.000 to cover a transition year when these lands are sold. The
Administration is committed to making certain that the communities affected by this land sale are made whole during the transition. Further the Dean Administration supports ongoing appropriations of approximately $50.000 to hold harmless the communities and county from any reductions in revenue caused by this land deal. This appropriation is needed due to the unique nature of the Northeast Kingdom and the amount of land involved. These lands make up approximately one third of Essex County.

3. Federal Ownership -Because of Vermont’s financial commitment to this deal,
Vermont has an opportunity to work with the U.S. Fish & Wildlife Service to manage any lands. Hunting and fishing are required activities on these lands. Further, the USF & WS has agreed to work cooperatively with Vermont and Vermonters on issues such as trapping and management of the Nulhegan Deeryard. (Of course trapping will continue to occur under State law on 107,000 acres of the Champion lands and will continue to be managed on the federal acres.) We of course cannot dictate policy on the portion of the lands the Conservation Fund chooses to sell to the Federal Government. We can, however, play an important role as a partner in this deal, to guarantee Vermont and Vermonters will participate in the management of those lands.

Vermont could not afford to buy all of the so-called Champion lands. Only because of the unique structure of this deal, and our opportunity to buy and control easements on the land, can Vermont assure far more public access to land, and substantially greater benefit to the economy of the Northeast Kingdom, than would have been provided by another private purchaser. We look forward to discussing this important purchase of easements with you at any time.

Sincerely,
Howard Dean, M.D. Governor

Darby Bradley
President
Vermont Land Trust

Gustave Seelig
Executive Director
Vermont Housing and Conservation Board

cc:
Senator John Bloomer
Representative Matt Dunne
Representative Sally Fox
Representative Walter Freed
Representative Robert Helm
Senator Vince Illuzi
Representative John LaBarge
Senator Richard McCormack
Senator Elizabeth Ready
Representative Mary Sullivan
Representative John Tracy