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HomeMy WebLinkAboutItem 6: Oregon Watershed Enhancement Board Grant Application ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: Oregon Watershed Enhancement Board Grant Application for Acquisition of Ridgeline Trail Property Meeting Date: October 8, 2007 Agenda Item Number: 6 Department: Public Works Staff Contact: Carolyn Weiss www.eugene-or.gov Contact Telephone Number: 682-4909 ISSUE STATEMENT The Intergovernmental Relations Committee was not unanimous on the approval of a grant application to the Oregon Watershed Enhancement Board for Ridgeline Trail property acquisition. As such, the issue is referred to the City Council for a final decision. BACKGROUND On August 22, 2007, the Intergovernmental Relations Committee authorized a grant proposal to the Oregon Department of Forestry for funding from the United States Forest Service, Forest Legacy nd Program. The request was for the 2 phase of funding in an ongoing acquisition program for the Ridgeline Trail corridor. The request was based on a 25% City match that would have committed up to $1,678,750 in City funds. These funds would come from the 2006 Parks and Open Space bond measure and potentially system development charge funds. Following additional conversations with Forest Legacy Program personnel, City staff learned that the Forest Legacy Program application would be more competitive if a 50% match is proposed, as opposed to the minimum 25% match. Therefore, City staff proposes that the Forest Legacy match be increased to 50% and offset the extra cost to the City by applying for an additional grant from the Oregon Watershed Enhancement Board (OWEB). The funding proposal for the total anticipated costs of $4,415,000 is as follows: 25% - from the City of Eugene = $1,103,750 25% - from the OWEB grant = $1,103,750 50% - from the Forest Legacy Program = $2,207,500 It should be noted that if the Forest Legacy funding is granted and the OWEB funding is not granted, the City’s options would be to: 1) determine if other matching funds could be found; 2) increase the City’s match to the full 50% of $2,207,500; or 3) withdraw the request to Forest Legacy. If Forest Legacy funding is not granted, but the OWEB funding is, the City would need to determine if other matching funds could be sought to purchase the parcels, or withdraw the request to OWEB. L:\CMO\2007 Council Agendas\M071008\S0710086.doc RELATED CITY POLICIES ?A Parks and Open Space Bond Measure was passed by Eugene voters on November 7, 2006. ?The PROS Project and Priority Plan was adopted by the council on May 22, 2006. ?Rivers to Ridges Metropolitan Regional Parks and Open Space Study was endorsed by the council on March 12, 2003. COUNCIL OPTIONS Option A: Approve the OWEB grant request and associated matching fund plan. Option B: Deny the OWEB grant request and associated matching fund plan. Option C: Provide staff with alternate direction. CITY MANAGER’S RECOMMENDATION The City Manager recommends Option A: Approve the OWEB grant request and associated matching fund plan. SUGGESTED MOTION Move to approve the OWEB grant request and associated matching fund plan. ATTACHMENTS A. Memo to IGR Committee concerning the Forest Legacy grant application B. Memo to IGR Committee concerning the OWEB grant application C. Additional background information and discussion regarding the Forest Legacy and OWEB grant applications D. Map showing potential parcels in relation to Ridgeline Trail corridor E. Map showing finalized parcels included in Forest Legacy application FOR MORE INFORMATION Staff Contact: Carolyn Weiss Telephone: 682-4909 Staff E-Mail: carolyn.j.weiss@ci.eugene.or.us L:\CMO\2007 Council Agendas\M071008\S0710086.doc ATTACHMENT A Public Works Parks & Open Space Division City of Eugene 1820 Roosevelt Blvd. M Eugene, Oregon 97402 EMORANDUM (541) 682-4800 (541) 682-4882 FAX www.ci.eugene.or.us Date: August 15, 2007 To: Intergovernmental Relations Committee From: Carolyn Weiss, Parks and Open Space Planning Manager Subject: Forest Legacy Grant Application Source/Purpose: Public Works staff requests authority to submit a grant application to the Oregon Department of Forestry (ODF) for funding from the United States Forest Service, Forest Legacy Program. nd The request is for the 2 phase of funding in an ongoing acquisition program for the Ridgeline Trail corridor. The first phase was awarded funding in FY 2007 for purchase of the 24-acre Evans parcel. The current request is a continuation of phase one and would provide funding support for the acquisition of three additional properties along the Ridgeline Trail corridor. Additional phases of this project are anticipated for the future. While there has been no official announcement of the application deadline as was promised by ODF, City th staff learned by visiting the ODF website on August 7 that the application deadline is September 1, 2007. Funds Requested: The acquisition costs of all three parcels, totaling 313 acres, that are included in this application are estimated to total $4,675,000. The Forest Legacy funding request is for 75% of the total costs, or $3,506,250. These costs are estimates and will be further refined once appraisals are completed. These costs may also be reduced as a result of partial land donations by participating property owners. Match Required: Based on a 25% minimum matching requirement, City funds in the amount of $1,168,750 will be required. These dollars will come from 2006 Parks and Open Space Bond funds. Description: The Intergovernmental Relations Committee supported the two previous Forest Legacy applications and also supported lobbying efforts to amend state law to allow the State of Oregon to fully participate in the Forest Legacy Program by allowing Forest Legacy funds to be used beyond the UGB. Participating in this round of Forest Legacy funding is particularly important as the City of Eugene is well positioned for a successful application. Contributing factors include: The City was successful in its advocacy to revise state law regarding what lands qualify for Forest ? Legacy funding. In prior years, only lands located inside an urban growth boundary were eligible for grant funds. This law has been revised, thanks to the lobbying efforts of the City of Eugene and other jurisdictions and organizations, to include lands outside the UGB such as Eugene’s Ridgeline Trail corridor. Eugene is currently identified as the top priority area for land conservation based on the ODF ? Assessment of Need. Eugene was successful in its 2005 Forest Legacy Application which resulted in the purchase of the ? 24-acre Evans Parcel in west Eugene. This parcel is a key acquisition for the Ridgeline Trail corridor as it connects city-owned Wild Iris Ridge to the West Eugene Wetlands. Eugene was successful in its 2002 Forest Legacy Application and was awarded funding for the ? acquisition of two parcels on the Ridgeline Trail corridor. Unfortunately, the Oregon State Legislature refused to allow the Oregon Department of Forestry to participate in the Forest Legacy Program and the funds were lost. One of the parcels that was included in that successful 2002 application is included in this current application. The criteria for funding through the Forest Legacy Program require that property owners are willing sellers, and the parcel is acquired at the appraised value of the property. The criteria does not allow the rd possibility to bridge the gap between appraised value and a higher asking price through a 3 party. Pending ongoing negotiations with property owners, the following parcels are proposed for acquisition through the Forest Legacy Program at this time: (see attached map): Reynolds Property,80 acres, outside UGB, approximately $1,025,000 ? Gaudia Property, 40 acres, outside UGB, approximately $500,000 ? Meisen Property, 193 acres, outside UGB, approximately $3,150,000, formerly awarded funding in ? 2002 Forest Legacy application. Time Period: If awarded, funding would become available in federal FY 2009. Continuation Plan: The acquisition of these three properties is part of a larger, ongoing acquisition program to expand the Ridgeline Trail system. Operational expenses are anticipated to be minimal until the trail system is developed. Relation to City Priorities: The expansion of the Ridgeline Trail system and acquisition of these properties are supported by the Parks, Recreation, and Open Space Comprehensive Plan, adopted in 2006, and the 2006 Parks and Open Space Bond Measure. Relation to Other Jurisdictions: Expansion of the Ridgeline Trail system is supported in the regional planning document Rivers to Ridges which was endorsed by the City of Eugene, City of Springfield, Willamalane Parks and Recreation District, and Lane County. All three potential property acquisitions are under Lane County jurisdiction. ATTACHMENT B Public Works Parks & Open Space Division City of Eugene 1820 Roosevelt Blvd. M Eugene, Oregon 97402 EMORANDUM (541) 682-4800 (541) 682-4882 FAX www.eugene-or.gov Date: September 21, 2007 To: Intergovernmental Relations Committee From: Carolyn Weiss, Parks and Open Space Planning Manager Subject: Oregon Watershed Enhancement Board Grant Application for Ridgeline Property Acquisition Source/Purpose: Parks and Open Space staff requests authority to submit a grant application to the Oregon Watershed Enhancement Board (OWEB), for funding to acquire additional property along the Ridgeline Trail corridor. This grant will be used to offset the match for City funds that is required for a grant application to the Forest Legacy Program. In August, the Intergovernmental Relations (IGR) Committee approved the grant application to the Forest Legacy Program for select parcels along the Ridgeline Trail corridor. Up to three parcels will be included in the Forest Legacy application. The same three parcels would be included in the OWEB application. The IGR Committee previously approved our request to submit up to 4 properties to the Forest Legacy Program with the required 25% match minimum, or up to $1,678,750 in matching funds for the Forest Legacy Program. After additional conversations with Forest Legacy Program Staff, we believe our application will be more competitive if we provide a 50% match as opposed to the minimum 25% match. We are therefore proposing that we increase our Forest Legacy match to 50% and offset the extra cost to the City by applying for this OWEB grant. The application deadline is October 15, 2007. Funds Requested: The acquisition costs of the three parcels, totaling 427 acres, are estimated to be $4,415,000. These costs are estimates and will be further refined once appraisals are completed. These costs may also be reduced as a result of partial land donations by participating property owners. Match Required: The Forest Legacy Program requires a match of at least 25% and we are proposing a 50% match (including City and OWEB funds). The 25% match in City funding would come from 2006 Parks and Open Space Bond funds and potentially System Development Charges. The funding proposal for the total anticipated costs of $4,415,000 is as follows: 25% - from the City of Eugene = $1,103,750 25% - from the OWEB grant = $1,103,750 50% - from the Forest Legacy Program = $2,207,500 It should be noted, if the Forest Legacy funding is granted and the OWEB funding is not granted, the City of Eugene would be responsible for the full 50% match for a total of $2,207,500. If Forest Legacy funding is not granted, but the OWEB funding is, we would need to determine if other matching funds could be sought to purchase the parcels, or withdraw our request to OWEB. Description: In August, the IGR Committee approved the grant application to the Forest Legacy Program for select parcels along the Ridgeline Trail corridor. At that time, there were four potential properties being considered for inclusion in that application. Since that time, we have reduced the number of properties to three, to keep the matching fund amounts within a manageable level. The same parcels included in our application to the Forest Legacy Program would be included in this application to OWEB. The intention of this grant application is to reduce the amount of funding required by the City as matching funds. By leveraging federal, state, and local resources, we can maximize the amount of matching funds provided which will strengthen our overall applications. The criteria for funding under the Forest Legacy Program and OWEB require that property owners are willing sellers, and the parcel is acquired at the appraised value of the property. The criteria does not rd allow the possibility to bridge the gap between appraised value and a higher asking price through a 3 party. Pending ongoing negotiations with property owners, the following parcels are proposed for acquisition through the Forest Legacy/ OWEB Grant programs: Gaudia Property, 40 acres, outside UGB, approximately $500,000. ? Meisen Property, 193 acres, outside UGB, valued at approximately $2,500,000. (the property owner ? has agreed to a 25% donation which brings the cash needed down to $1,875,000) Gonyea Property, 194 acres, outside the UGB, with a cost of approximately $2,040,000. ? Time Period: If awarded, funding would become available in April 2008. Continuation Plan: The acquisition of these three properties is part of a larger, ongoing acquisition program to expand the Ridgeline Trail system. Operational expenses are anticipated to be minimal until the trail system is developed. Relation to City Priorities: The expansion of the Ridgeline Trail system and acquisition of these properties are supported by the Parks, Recreation, and Open Space Comprehensive Plan, adopted in 2006, and the 2006 Parks and Open Space Bond Measure. Relation to Other Jurisdictions: Expansion of the Ridgeline Trail system is supported in the regional planning document Rivers to Ridges which was endorsed by the City of Eugene, City of Springfield, Willamalane Parks and Recreation District, and Lane County. All three potential property acquisitions are under Lane County jurisdiction. ATTACHMENT C Additional Background Information October 4, 2007 Information and Discussion regarding the Forest Legacy grant application: st August 21 follow-up email from Brenda Wilson Since sending you the grant application request, there has been a recent development in another possible Forest Legacy piece of property for inclusion in this application. Parks has been working with another property owner along the Ridgeline Corridor owned by the Gonyea family, or the DAG Trust. The initial response from the property owner was that they did not want to participate in this Forest Legacy application. However, Parks has just been contacted again by the property owner who indicated that they are indeed interested in participating. This is an exciting development, and Carolyn wanted to provide you with the relevant information pertaining to this site. This site is also shown on the attached map. This property is 194 acres, outside the UGB, with a cost of approximately $2,040,000. Parks will spend the next couple of weeks crafting the application. They are working towards an application with the highest chance of success while prioritizing key Ridgeline Trail connections. Staff response to questions from Councilor Bettman on August 16, 2007 Q1. Can you show us a map of the parcels in relation to the entire Ridgeline "corridor" with delineation of what is publicly owned and what is not? A: See map attached to email. Q2. Are Forest Legacy funds useable on the Wildish property adjacent to Buford and Mt. Pisgah? If not; why not? A: In short, Forest legacy funds are usable on this property, however, there are some issues concerning this piece of property for inclusion in the Forest Legacy Program application at this time. The Nature Conservancy is currently taking the lead on the Wildish acquisition project. Nature Conservancy staff indicate that the property is not currently positioned to be included in this application as negotiations with the current property owner are still very preliminary (there must be a willing seller) and the question of who would be the eventual owner of the site is still unresolved. Potential future owner’s include Lane County, City of Springfield, Willamalane Parks and Recreation District, or Oregon State Parks. Q3. This property averages out to 15 K per acre which seems astronomical for property outside a UGB with constrained development potential and no services. Why is it so expensive? A: Although the costs laid out in the memo are estimates only and actual costs will be based on appraisals, recent sales activities in the area indicate that lands zoned F2, such as the Gaudia and Reynolds properties, are selling for approximately $12,500 per acre. Additionally, a majority of the Meisen property is designated as "marginal lands" which allows for a greater density of development (either 10 or 20 acre homesites), which has been shown to increase the value above traditional F2 zoned land. Q4. I thought "connectivity" was a key component of parcel priority (and these are so far afoot;) how do they connect to other or adjacent ecosystems? A: As illustrated on the attached map, three of the four properties are directly on the ridgeline trail corridor as shown in the PROS Comprehensive Plan. All four of the properties are also directly adjacent to or nearly adjacent to other Parks and Open Space property holdings. Although the Meisen property is not on the proposed alignment, it is a significant property for the Ridgeline Trail system for several reasons. Besides the site being well documented for its significant natural resource value for its oak habitat and the presence of one federally listed endangered and two rare plant species, this property provides for an alternate connection from Willamette Street to Lorane Highway. This is an area where there are significant challenges in the connectivity of the Ridgeline Trail corridor due to the amount of development that has already occurred and large property holdings held by one owner that may or may not work with us. The Meisen property would also provide a connection from Willamette Street to Blanton Road. Q5. The state legislature enabled using Forest Legacy outside the UGB but I don’t remember that the PROS bond measure applied outside the UGB. I understand a match is required but I don’t think voters thought they were paying to acquire land outside the city; didn’t they assume they were paying for city parkland? Was there a line item in the measure to make these acquisitions outside the UGB and basically inaccessible to Eugeneans for the foreseeable future? Aren’t there higher priorities for the more than 1 million match? A: The Parks and Open Space Bond Measure (20-110, also attached to the email) includes funding for the purchase of land “for the preservation of natural open spaces near the Ridgeline Trail” corridor. This is made clear both in the ballot measure language and in the informational tabloid (also attached to the email) that was mailed to all city residents. Additionally, although most of the Ridgeline Trail corridor lies outside Eugene's UGB, it is considered city parkland by the Parks and Open Space Division who provides maintenance and management of the property for the use and enjoyment of the citizens of Eugene. All of these properties provide a significant step towards realizing the long-term vision of a connected Ridgeline Trail system as set out in the PROS Comprehensive Plan, and the regional open space planning document, Rivers to Ridges. Q6. Are there other sources of funds that can be used for the match besides PROS? A: In addition to Parks and Open Space bond funds, a portion of the purchase price can be paid with System Development Charge funds. Q7. Have any of the parcels been logged? Clear-cut? How long since? Will they be logged if acquired and to what extent? A: All four sites, including the DAG Trust property, have existing or potential high quality oak habitat according to mapping work by The Nature Conservancy. All sites have probably been logged to some extent, but not recently. It has been over 50 years since the Meisen property was logged, and it's been managed solely for conservation for over a decade. The Gaudia and Reynolds properties have probably been logged more recently, but the oaks have been retained. If acquired, no logging of the site is planned but there may be some thinning of existing fir trees to facilitate continued restoration of the oak habitat. Information and Discussion regarding the Oregon Watershed Enhancement Board grant application: Staff response to questions from Councilor Bettman Q1. I am wondering how much money was allocated to ridgeline acquisiton in the PROS bond? City staff are acquiring about 200 additional unanticipated acres at Golden Gardens, and this 50% match for land outside the UGB I am wondering the impact on the PROS funds and what portion will be used up for land outside the UGB and how much was delineated as outside the UGB in the measure? A: The 2006 Parks and Open Space Bond Measure (20-110, also attached to the email) includes funding for the purchase of land “for the preservation of natural open spaces near the Ridgeline Trail, Willamette River and Gillespie Butte". The informational tabloid (also attached to the email) that was mailed to all city residents identifies $7,750,000 for the above mentioned purpose. While there is no specific indication in the bond measure for how much of this land is to be acquired inside or outside of the urban growth boundary, most of the Ridgeline Trail and Willamette River corridors lie outside Eugene's UGB. The proposed properties provide a significant step towards realizing the long-term vision of a connected Ridgeline Trail system as set out in the PROS Project and Priority Plan, and the regional open space planning document, Rivers to Ridges. If both Forest Legacy funding and OWEB funding are approved, the City's match would be $1.1 million dollars. If OWEB funding is not approved, the City's match would be $2.2 million. Both scenarios are well within the available funding provided by the 2006 bond measure. Additionally, system development charge funds can also be directed towards these acquisitions. Q2. How will it effect the city’s ability to purchase Amazon Headwaters? A: I don't see that there is a direct effect on the acquisition of the Amazon Headwaters property. However, funds spent on the matching component of the Forest Legacy and OWEB grant applications would not be available for other projects. Staff response to question from Councilor Taylor Q1. If it affects the Amazon Headwaters acquisition, I would like to withdraw my approval. Will there be enough money left for the Headwaters? A: As mentioned previously we do not see this as having any direct impact on Beverly or Green. However, expenditure of these funds will reduce the amount of total funds we have for other future acquisition purposes. Since the amount that may be needed for Green or Beverly has yet to be determined we cannot answer the question regarding sufficiency of available funds.