Birch Ridge Update - 2010

[webmaster]

Dear Friends of Birch Ridge!

I have copied into this email a summary of a message sent to each person who has pledged a donation to the Birch Ridge project. (So some of you will get the same info twice.) It is a good summary of 2009 and where we are going in 2010. However, it does not include one bit of very late breaking good news: the NH Land Community Heritage Program (“LCHIP”) has awarded $200,000 to New Durham for the Birch Ridge Project. We will be working with the Town staff, the owner, and the Forest Society to take the next steps.

What follows is from the message to the pledge donors:

We are pleased to bring you the good news that the Birch Ridge conservation project is alive and continues to move forward with the full commitment of everyone involved. We remain optimistic that the goal of getting Birch Ridge into permanent conservation status will be achieved preserving this irreplaceable tract of resources for all of us to enjoy.

We have several important topics to update you on with this letter including:

What we can do to help the cause succeed.
Our activities and challenges in 2009.
Land valuation issues.
Opportunities and challenges in 2010.



What help is needed to have the Birch Ridge Project Succeed?

Additional private pledge funds are certainly needed. No dollar amount is too small to help push this project forward. Also, if you would like to increase your pledge and spread it over a period of years, we may be able to arrange that as well through the Forest Society.

The commitment from the Town of New Durham to ultimately pass a bond issue to support this project is also crucial. It is going to take a combination of our Private Pledge’s, a Town bond, and two or more Government Grants to raise all the funding required. We are working with the Town Selectmen to determine what is the best strategy to keep the bond issue moving forward during this difficult time. The Selectmen are considering several options to keep the Town Meeting March 2009 commitment to consider a bond issue of up to $1,000,000 in front of the voters. A bond issue may not be on the ballot for the March 2010 Town Meeting, but most likely the 2010 warrant will include an article ensuring that the town will consider a bond at a future date.

The purchase of the Birch Ridge property is a fantastic financial decision for the Town and all Taxpayers. The cost of services study done last year clearly showed that the development proposed will cost a great deal more in town services dollars than any potential tax revenue generated. There is actually a significant argument to be made that the ultimate cost of infrastructure cost (roads, police, fire, and many others) will far exceed the cost of services study.

While it is never easy to vote for a bond issue, Town taxpayers will actually be getting a windfall because of the private and Federal funds that will provide likely two thirds or more of the cost of acquiring this land.

It is also important for us to help educate voters that the cost of acquiring this land is a one time cost for a limited period of years. The additional costs to taxpayers, if this land is part of a large scale development, is a never ending escalating cost and therefore tax bill.



2009 Activities and Challenges ( continued in next reply)

[webmaster]

2009 Activities and Challenges (continued)

The most significant event of the year was having the March 2009 New Durham Town Meeting direct the Board of Selectmen to bring forth a proposal at the 2010 Town Meeting to bond up to $1,000,000 to conserve Birch Ridge. The challenge remains, as outlined above, to get either a bond initiative on the 2010 Ballot or a an extension of the 2009 commitment to bring forward a bond issue at a later date.

The Forest Society worked hard on several grant proposals aimed at securing Federal or State funds. While the project did make the list of worthy projects for the National Oceanic and Atmospheric Administration’s Coastal and Estuarine Land Conservation Program, no funding was made available for Birch Ridge, due to Congressional cuts in the size of the fiscal 2009 program.

Red Oak Ridge, the current owners, lost some focus on Birch Ridge while they were preoccupied with other investments and we missed the opportunity to apply for a Forest Legacy Grant this summer. Through the efforts of several people, along with the active support of members of the Board of Selectmen, Red Oak is now fully engaged as an active partner in pursuing government funding options. In October the Town of New Durham, with the full cooperation of Red Oak, applied for a $200,000 grant from the New Hampshire Land and Community Heritage Program (LCHIP). Results of this competition will be announced in mid-January. We are optimistic that our grant application is being favorably received. [As noted earlier, the town was indeed awarded a grant!] A successful LCHIP award would demonstrate to the town’s voters that their support of the proposed town bond in March would move the project forward.

Land Valuation Issues

One of the key issues for the project is predicting the current value of the Birch Ridge property. As you may recall, a credible current valuation is required to obtain any Federal, State, or Local public funding. All of us, as private pledge donors, will insist on this as well. The last appraisal came in at $4,040,000 but that of course was before the events of 2009. It is possible, or even likely, that a new appraisal will come in significantly lower, but the valuation can only be fully known after a new, fully supported appraisal is done. This is a costly and time consuming process that will only be done if we are in a position to purchase the land.

The prudent planning position for us to assume is that we will need to raise $4,000,000 to achieve our goal of acquiring the land and meeting transaction expenses, including a new appraisal and a major surveying effort. It is also prudent to assume that roughly half of this sum will have to come from non-federal sources, given that most grant programs have a match requirement. Assuming the town agrees to fund $1,000,000, we will likely need $1,000,000 in private funds as well.

Opportunities and Challenges in 2010

Acquiring the necessary funding from us private donors, the Town of New Durham bond, and other State and Federal grant sources remains the key to this project.

Actively engaging a broad segment of New Durham Town voters to support a bond issue at the appropriate time is the second and equally important activity for the coming year.

Birch Ridge is the single largest tract of recreational land in the Town of New Durham. It has provided nearly unlimited recreation activity for residents for decades. While everyone is interested in keeping taxes under control, many are equally interested in maintaining the outdoor recreation opportunities that Birch Ridge has provided and can provide for generations to come. One of the primary goals of this project is to have this property conserved with guaranteed access for hikers, snowmobilers, and hunting as well as other activities.

We need to do more to communicate the value of this unique property with it’s recreational opportunities to the entire Town.

Certainly there will remain many financial pressures on everyone as 2010 unfolds. We continue to be optimistic that a successful conclusion can be achieved for this worthy project. Many people have asked if a lower purchase price can be obtained for the land. That may well be possible but we are only going to find that out when we are in a position to put a credible offer with firm funding on the table for the current owner.

Success will require a combination of funds from all sources to be in a position to get Birch Ridge into conservation.

Thanks for your support.

We thank all of you who have given of your time as well as your financial commitment to the Birch Ridge project. It may well be possible that success could come to us quickly if a few key pieces fall into place.

Best regards,


Pat Decker and Lou McGrew

[webmaster]

Birch Ridge Update, February 12, 2010

Dear Friends of Birch Ridge,

We continue to enjoy success in our effort to conserve Birch Ridge. The owner, Red Oak Ridge, LLC is working with the Forest Society to come up with a concrete proposal. It is safe to assume that the town winning the $200,000 LCHIP grant convinced the owner that the town is dead serious about making this project happen.

The New Durham Board of Selectmen placed two important articles related to Birch Ridge on the March 10, 2010 Town Meeting Warrant:

• A request that the Select Board propose a conservation funding bond at the 2011 Town Meeting
• A $10,000 budget item to defray transaction costs (legal, title checks, etc.)

Until we have a definite conservation proposal from the owner (and until the economy shows signs of improving!), it seems premature to place a proposal for a conservation bond on the Town Meeting Warrant. As was the case last year, voters will ask the Board of Selectmen to propose a conservation bond at the following town meeting in 2011.

Nonetheless, given the progress we have made, the Board is asking voters to approve a $10,000 increase in the budget so that we can continue to advance the project by tackling due diligence tasks such as title research, review of legal documents by the Town Attorney, and inspecting the property for other issues. This will allow the town to support these tasks in the near term, without having to squeeze these costs into an already tight budget.

Perhaps most importantly, these two warrant articles, one aimed at the near term, and one looking out longer term, will allow the town to demonstrate its commitment to additional funding sources, including both private donors and conservation organizations and agencies.

But….these articles will do no good at all, unless we come to Town Meeting and vote for them!Please set aside March 10 to attend Town Meeting at 7 PM at the Elementary School.

Other important dates:

February 18, 7:00 PM at the Library: Candidates Night. Please attend and learn the candidates’ views on the Birch Ridge Project.

[webmaster]

From: W Patrick Decker
Sent: Thursday, August 05, 2010 2:44 PM
To:
Subject: Termination of the Birch Ridge Project

Thank you for your generous support of the Birch Ridge Project. Unfortunately, the Project as we had envisioned it, has been effectively terminated by the current owner's unwillingness to accept a fair market price for the land. The Forest Society this week sent a letter to Gruss & Company, the owner's of the Birch Ridge property, informing them that the Town of New Durham and the various grant agencies that have awarded and/or considering grants must be informed that it is not possible to arrive at purchase terms that will be acceptable to purchase the land using any public funding. The grant agencies will then withdraw their awards and use the funds now obligated to us on other projects.

This action is the result of the Forest Society attempting to negotiate a purchase and sale agreement with Gruss over the past several weeks. The critical issue, which could not be agreed upon, was the price for the property. The Birch Ridge project, as you know, has been steadily gaining momentum with several grant agencies over the past several months. Because of this increase in activity and momentum it became essential that a current fair market value for the property be established. The Forest Society had an updated preliminary appraisal done by the same company that did the detailed appraisal the first time. This new appraisal came in with a current value for the purchase of the property at about $2.6 million. This valuation would almost certainly be the outcome of a detailed appraisal, which would be required if public funds were to be used for a purchase. This information was presented to Mr. Gruss and he responded that he would not consider anything less than a price of $4 million. This response effectively makes a deal to purchase the entire property impossible using any public funds. This outcome is unfortunate because the funding that has been assembled, or identified as reasonably possible, would come very close to the $2.6 million valuation of the most recent appraisal.

There has also been another potential proposal "floated" by Gruss to develop 7 estate lots and then sell a conservation easement on the remaining acreage. The preliminary appraisal also considered the valuation of such and easement which came in at less than $900,000. Again, this information was shared with Mr. Gruss and he rejected it.

The idea of a 7 estate lot proposal was shared with me several weeks ago. After looking at a conceptual plan of where the lots would be developed, I told Mike Speltz of the Forest Society, that I personally would not support such a proposal. This proposal would effectively position 7 developed sites of 20 acres each all along Birch Ridge, above the south shore, and then place the remaining land in a conservation easement. Having walked, skied and snow shoed all of this land for many years, my assessment is that the conservation issues regarding run off and water quality could be easily compromised as well as the recreational value of the remaining property. At this point the concept of seven estate lots is just interesting background information since nothing will be done with this proposal given the rejection of the valuation by Mr. Gruss and the fact that Gruss has not even discussed this concept with the Town.

The termination of the Project closes the current chapter of our conservation effort for Birch Ridge but in no way eliminates the risk of future development proposals. We must all pay close attention to further activity or proposals which are brought to the town for development of the property and be prepared to insure that all appropriate environmental and town regulations are vigorously enforced. We will continue, with your support, to seek a conservation outcome for the entire property.

Thanks again for your support of the Birch Ridge Project.

Best Regards,

Pat Decker & Lou McGrew

[Nixon's Head]

so in layman's terms?

[EagleTwo]

Originally Posted by Nixon's Head

so in layman's terms?

They said it was worth $4M. Group felt $2.6M. Group walked away from deal.

Same as if you tried to negociate a price for goods and couldn't agree with the seller. You walk away.

Most betting is that they will wait a VERY long time for that price.

[ken]

From the ND website:

There will be a special meeting at 7 PM August 17 at the Elementary School regarding the status of the Red Oak Conservation Initiative. Call 859-7171 for more information.

I called and this meeting will address the breakdown in negotiations due to the difference between fair market value and what the owner is wanting. Sounds like the meeting is just reiterating what has already been posted above in the previous weeks.

[webmaster]

The email below was sent a few days ago by Paul Raslavicus, the chairman of the ND Planning Board. Paul is also an MMLA member and lake resident.

Subject: Re: Informational joint Board of Selectmen/Panning Board Meeting on Red Oak/Birch Ridge

On Aug 11, 2010, at 10:10 PM, Paul Raslavicus wrote:


This is to let you know that the BOS and Planning Board will hold an informational meeting on the status of the Red Oak Development project on Tuesday, August 17 at 7 pm at the New Durham School. It should be formally posted at the Town Hall by tomorrow and be in print as well, but I thought I would let you know as soon as possible. So please use your communication channels, including e mails and the MMLA web site to spread the word so that as many taxpayers as possible can attend. The meeting is scheduled for 1 hour).

[Nixon's Head]

sorry I just want to be sure, so are they building there or not?

[EagleTwo]

Anyone who is interested in learning about the status should attend the public hearing tonight at the ND school.

But to answer your question, there are no currently approved plans to build on the property. That does NOT mean there never will be. Just that they have never submitted a formal plan into the approved Planning Board subdivision process.

If or when they do this, what it will include, etc will play out over the next years.

The fact remains that the land is owned by a private party who has an interest in making a profit from the land. As such, it remains a threat to the quality of life at the lake as we now know it.