    [From the U.S. Government Printing Office, www.gpo.gov]

                                             FY 1992 FINAL PRODUCT Task 93
                                                  Conserv. Easement Program

                      Conservation Easement Program

                                  Final Report

                      To the Virginia Council on the Environment
                   Virginia Coastal Resources Management Program
                               Grant #NA270ZO312-01
                            From The Nature Conservancy
                                  February 15, 1994

                                                  1. -
                          Rec'd. by Dept. of
                        Environmental Quality

                            FFR <22 1994
                            Public & Inter-        i                                                                               4
                        governmental Affairs

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                            Overview of Results

                            The Nature Conservancy has successfully completed all tasks of the Conservation
                            Easement Program. The final work products -- including a set of computer mapping
                            products, a final concept plan for seaside farm properties, and the conservation
                            easement manual -- are enclosed with this report.

                            A summary of results for the eight tasks of the program are as follows:

                            1.      Develop Conservation Easement Document. With reviews and comments by
                                    Conservancy attorneys, public agency officials, researchers, landowners and
                                    conservation practitioners, the Conservancy revised and developed a "state of
                                    the art" conservation easement for waterfront farms. The easement specifies
                                    the necessary measures for controlling inappropriate development and land
                                    uses. In addition to the required seaside farm conservation easement
                                    document, the Conservancy also developed conservation easement standards
                                    for seaside village properties. Ile seaside farm easement is explained in
                                    layperson's language in section four of the Conservation Easement Program
                                    manual; the legal document is included as an appendix in the manual.

                            2.      Identif
                                          y Priorijy Tracts in the Project A      The Conservancy developed a
                                    ranking system for priority tracts. Priority rankings were based upon:
                                    (1) key developability factors (e.g. water access, waterfrontage, acreage,
                                    soils); (2) prograrnmatic values; and (3) opportunity to secure a conservation
                                    easement. The Conservancy ranked over 30 properties on the Northampton
                                    County seaside. A large majority of the highest priority parcels are located in
                                    an area the Conservancy calls the "Broadwater Macrosite." Section three of
                                    the manual describes the Broadwater Macrosite in greater   detail.

                            3.      Develop and AMIy a Financial Analysis Model. With pro bono assistance
                                    from a national development company, the Conservancy developed a financial
                                    model to analyze the revenues and costs associated with compatible develop-
                                    ment of seaside farms.' The model takes into account the "time value of
                                    money" by analyzing cash flows over a period of years. The model is further
                                    explained and illustrated in the appendix of the manual. Using this financial
                                    analysis, the Conservancy has been able to demonstrate that low-impact
                                    development is an economically viable alternative for waterfront farms.

                            4.      Contact and Meet with Owners of at Least 20 Priorily Tract . Over the course
                                    of the program, the Conservancy contacted and met with the owners of 24
                                    priority tracts on the Northampton County seaside. 19 of these parcels are
                                    located in the Broadwater Macrosite.

                                    During the course of the landowner contact initiative, the Conservancy:
                                    acquired 4 properties; presented options to acquire 2 additional properties; and
                                    is engaged in negotiations on 5 other properties.

                                  Without exception, all of the landowners contacted have expressed interest in
                                  working with the Conservancy -- over time -- under the conservation easement
                                  program, providing that they can eventually achieve a fair economic return for
                                  their property. The Conservancy expects the new Conservation Easement
                                  Program manual to be a tremendous help in working with Eastern Shore
                                  landowners.

                           5.     Secure Baseline Data and Maps for at Least 10 Prioriv Tracts. The Conser-
                                  vancy secured aerial photos, environmental conditions data, and baseline maps
                                  for over 30 priority tracts, all located in the Broadwater Macrosite. Under the
                                  grant, the Conservancy also developed computer mapping capability. The
                                  Conservancy's land planning consultant assembled a comprehensive data set
                                  for a large (approximately 10 square mile) planning area called the North
                                  Broadwater Macrosite. This data -- including landforms, topography, tree
                                  lines, roads and buildings, and property boundaries -- has been scanned and
                                  digitized into the computer mapping system acquired through the grant. A
                                  report on the Geographic Information System (GIS) computer mapping project
                                  is enclosed.

                           6.     DevelQ Land Use Plans and Financial Analyses for at Least 10 Prigdty
                                  Tracts. Working with its land planning consultants, the Conservancy
                                  developed a land use concept plan for a large area of the North Broadwater
                                  Macrosite extending from Green's Creek to Phillips Creek, encompassing 16
                                  different properties. A separate report on the Green's Creek - Upshur Creek -
                                  Phillips Creek Seaside Farms concept plan in enclosed. This land plan will
                                  serve as a model for future Conservancy planning efforts. The Conservancy
                                  developed land plans and financial analyses for 7 other priority parcels under
                                  the Conservation Easement Program grant.

                           7.     Secure Conservation Easemtnt Restrictions on at Least 10 Priori1y Tracts.
                                  The Conservancy completed the necessary steps to assure permanent conser-
                                  vation easement restrictions for a total of 10 properties for which plans have
                                  been developed under the grant. These properties are:

                                          Mt. Pleasant Farm
                                          Mill Creek Farm
                                          Blankenship Farm
                                          Lorish-Terry Property
                                          Terry Brothers Seafood Property
                                          J.N. Bell Property
                                          Standard Products Property
                                          Phillips Creek Farm
                                          Major Farm
                                          Piscopo Property
                                          Jay Property

                                   The Conservancy now owns title to each of these properties. Under its non-
                                   profit charter, the Conservancy is obligated to manage these seaside farm and
                                   village properties for the purposes described in the Conservation Easement
                                   Program. The purposes of the easement are thus assured by means of Conser-
                                   vancy ownership. The Conservancy will retain and record a conservation
                                   easement upon the sale or transfer of the properties, using the conservation
                                   easement legal document as presented in the appendix of the manual (with
                                   certain amendments appropriate for seaside village parcels). A conservation
                                   easement will be secured under one or more of the following scenarios:

                                   A.     The Conservancy may transfer some or all of these holdings during
                                          1994 to the new Virginia Eastern Shore Sustainable Development
                                          Corporation, as part of the Conservancy's commitment to provide
                                          $500,000 worth of land towards the capitalization of the corporation.
                                          The land transfer to the corporation would include a perpetual
                                          conservation easement retained by the Conservancy.

                                   B.     The Conservancy may transfer some or all of the holdings into a new
                                          limited liability company, which may be formed in partnership with one
                                          or more major landowners in the area. The land transfer would include
                                          a perpetual conservation easement to be retained by the Conservancy or
                                          provide that an eventual land transfer by company would include a
                                          conservation easement.

                                   C.     Tle Conservancy may retain portions of the acreage and convey
                                          settlement area parcels to individual buyers or conservation-minded
                                          investors. In this event, the Conservancy would retain and record a
                                          conservation easement on the properties conveyed, and would provide
                                          reciprocal legal assurances on the lands retained by the Conservancy.

                                   D.     The Conservancy may sell one or more of the properties outright to
                                          conservation-minded investors, and retain a conservation easement.

                                   In addition to the above properties, the Conservancy expects to secure
                                   conservation easements on four other properties for which plans have been
                                   developed under the grant. The Conservancy is now negotiating with the
                                   owners of these properties, including:

                                          Goshen Farm
                                          Pittsfield Farm
                                          Custis Farm
                                          Wilson Property

                                   Between 1985 and 1992, the Conservancy had acquired and resold eight
                                   Eastern Shore properties subject to conservation easements. The Conservation
                                   Easement Program has significantly increased the Conservancy's capacity to
                                   secure additional easements on priority seaside farm and village properties.

                          8.     Develop Conservation Easement Program Manual and Plans for Program
                                 Ex
                                   12ansion. The Conservancy has completed and printed 2000 copies of
                                 "Partners in Protection -- Virginia's Eastern Shore Seaside Farms -- A
                                 Conservation Easement Program." This professionally-developed, full-color
                                 manual was specifically designed to continue and advance the work of the
                                 Conservation Easement Program. The manual was deveioped for three key
                                 audiences: landowners, potential seaside farm buyers, and conservation
                                 practitioners working in other coastal and riverine areas. Even prior to its
                                 publication, the Conservancy has received requests for copies of the manual,
                                 including Conservancy state offices, bioreserve project offices, the ACE Basin
                                 Task Force, and other land conservation organizations. The manual will be
                                 used in training sessions at the Conservancy's annual bioreserve conference, as
                                 well as workshops on sustainable development and coastal ecosystems.

                                 Moreover, the Conservancy has hired a full-time Director of Land Programs to
                                 continue the Conservation Easement Program work. Peter Rowe, an experi-
                                 enced Norfolk attorney has moved to the Eastern Shore and begun work in this
                                 position. In addition to having served as a member of the Virginia Marine
                                 Resources Commission and as President of the Virginia Wildlife Federation,
                                 Peter is uniquely qualified for the program. Peter was the first person to
                                 purchase a Conservancy seaside farm subject to a conservation easement.

                          Finances

                          100% of the budgeted funds for contractual expenses and equipment for the program
                          were expended or contractually committed as of December 31, 1993. In addition,
                          Conservancy professional staff provided hundreds of hours of in-kind support for
                          completing the above tasks.

                          Enclosures

                                        Conservation Easement Program manual

                                        Report on computer mapping project

                                        Greens Creek - Upshur Creek - Phillips Creek Seaside Farms
                                        Concept Plan

                                        Final financial report and invoices

                                                Conservation Easement Program
                                             Geographic Information System (GIS)
                                                   'Computer Mapping Project

                          Under the Conservation Easement Program grant, the Conservancy has developed
                          Geographic Information System (GIS) computer mapping capability which is suitable
                          for detailed, site-scale land.use planning for seaside farms and villages.

                          Hardware and Software

                                        Gateway 2000 486DX2-66 computer, with 16 Mb RAM, 424 Mb hard
                                        drive, 1.44 Mg 3.5" DD drive, VESA local bus video, ATI Ultra Pro
                                        H image display board, DOS 6.0 and Windows 3.1

                                        17" Nanao flexscan monitor

                                        Erasable optical drive unit with interface card and cartridge

                                        Altek 36" x 48" +/- 0.010 AA lite line digitizer with manual operation
                                        base

                                        HP PaintJet XL 300 color printer with 11" x 17" paper tray

                                        MIPS (version 3.33) and TNT-MIPS (version 4.2) computer mapping
                                        software with printer support

                          North Broadwater Macrosite - Computer Mapping Project

                          The initial computer mapping project encompassed the seaside farms and villages in
                          the northern half of the Broadwater Macrosite. This area contains the Conservancy's
                          highest priority tracts on the seaside of the Virginia Eastern Shore, including a
                          number of properties for which conservation easement plans, are being developed.
                          The area extends for approximately five miles along Hog Island Bay and the
                          Machipongo River -- from Phillips Creek to the village of Willis Wharf.

                          The Conservancy's land planning consultant -- Paradigm Design -- collected
                          geographic information for the planning area. Six vector data sets have been digitized
                          -- at a very fine scale (1" = 8009) -- which is necessary for site-level land use
                          planning. This scale picks up individual tree lines, small buildings and driveways.

                          The digitized data sets, and their sources, include:

                                        Landforms            USGS 7.5 minute series quads; streams and
                                                             marshes were updated using aerial photos

                                          Tree Cover           Aerial photos at 1"     800'

                                          Topography           USGS quads

                                          Roads                USGS quads as geo-reference controls for main
                                                               roads; aerial photos to pick up smaller roads and
                                                               driveways

                                          Property Lines       County tax maps

                                          Buildings            Aerial photos

                           These data sets are displayed on the enclosed map. Other data was analyzed using
                           existing manual maps, and will be digitized in the future as separate data layers:
                           soils, flood hazard areas, and watersheds. All digitized data sets will be provided to
                           the Commonwealth of Virginia in digital format as MIPS files.

                           A North Broadwater Macrosite Composite Map (enclosed) was produced, which
                           plotted all of the data sets together.

                           Using the GIS data sets, a composite site map was also produced for a designated
                           portion of the North Broadwater Macrosite, an area encompassing the Green's Creek,
                           Upshur Creek and Phillips Creek Seaside Farms. Using the data sets and maps, sup-
                           plemented by site visits, a detailed land use concept plan for this area was developed
                           by the Conservancy under the Conservation Easement Program (see separate report).
                           This concept plan will serve as a model of future seaside farm plans to be developed
                           by the Conservancy.

                           Based upon this concept plan, an even more detailed site land use plan was produced
                           -- using the computer mapping capability -- for a sub-section of the Greens Creek,
                           Upshur Creek, Phillips Creek Seaside Farms called Nassawadox Farms (see section
                           three of Conservation Easement Manual). Nassawadox Farms is an assemblage of
                           four properties which are now owned or under option by the Conservancy. To
                           produce this map, Paradigm Design used the above data sets, and plotted a new
                           composite layer that isolated the Nassawadox Farms planning area. For the detailed
                           site plan, new data layers showing proposed roads, trees and buildings were then
                           plotted onto the base map. This plan an illustrates the high-level of resolution which
                           the GIS computer mapping system can produce for detailed, site-level planning on the
                           seaside farms.

                           Long Term Computer Mapping Benefits

                           As the Conservancy continues to implement the Seasid   e Farms Conservation
                           Easement Program over time, the GIS computer mapping capability Will provide a
                           number of important benefits in contrast to manual cartography and site design.
                           These benefits include:

                                         The ability to produce base maps and site plans at a substantially lower
                                         cost per site, thereby enhancing the Conservancy's long-term
                                         conservation easement capacity.

                                         The ability to expand and modify site plans easily, without requiring
                                         costly redrawing of the maps.

                                         The ability to produce three-dimensional "birds-eye" views of the
                                         landscape from all directions, thereby providing an invaluable site
                                         planning perspective that far surpasses traditional two-dimensional
                                         planning maps. (Three dimensional maps can be produced manually,
                                         but at a high labor cost).

                                         The ability to import data from the Natural Heritage data base, from
                                         extensive GIS databases being developed by the Commonwealth, the
                                         LTER progarn and others into our computer mapping system -
                                         augmenting our information about the landscape and allowing us to
                                         share land use planning data with state and county agencies.

                                         Eventually, the GIS system will allow the Conservancy and its research
                                         partners to do analysis and modeling of alternative land uses and their
                                         impacts on the coastal watersheds. The Conservancy is now developing
                                         a comprehensive watershed research program in the Upshur Creek
                                         watershed.

                           In summary, with the new GIS computer mapping capability, the Conservancy will
                           produce better conservation planning products and enhanced long-term conservation
                           easement capacity for the seaside farm and villages.

                                                  L

                                                                    S5

                                                                          Composite  Base

                                                    Map was funded, in part by the Virginia Council on the Environment's
                            VIRGINIA                -tal R         t Program through Grant #NA27OZO312-01
                                                      't@
                                                   1,e N0          mospheric Administration, Office of 'Ocean
                                                    Coastal Resource Management, under the Coastal Zone Management Act
                                                    W as amended.

                                     PREPARED FOR 1@

               Green's Creek-Upshur Creek-Phillips Creek
                        Seaside Farms Concept Plan

                          Conservation Easement Program
                           Northampton County, Virginia

                                Greens Creek - Upshur Creek - Phillips Creek Seaside Farms

                           DescAption

                           The expanse of farmland, forests, wetlands and human settlements which include the
                           Greens Creek, Upshur Creek and Phillips Creek Seaside Farms encompasses
                           approximately 1,900 acres. An estimated 700 acres are in farmland, 800 acres in
                           forests, 370 acres in wetlands, and a small amount of acreage includes working farm
                           facilities and residences.

                           L4wation

                           The area extends for almost three miles along the Seaside Road (Route 600), and is
                           bisected by Brownsville Road (Route 608). The properties extend westward to U.S.
                           Route 13 at the northwest. The area is bounded by the town of Nassawadox at the
                           southwest. The Nature Conservancy's 1400 acre Brownsville Farm adjoins the area
                           towards the east, as does the Machipongo River and Hog Island Bay.

                           Ownerships

                           The Seaside Farms include three family farms now in private ownership -- Woodlands
                           Farm, Custis Farm and Lewis Farm -- along with ten other land parcels and three
                           residential parcels.

                           Status

                           The Nature Conservancy has secured a conservation easement on Woodlands Farm,
                           has acquired or optioned five parcels which form an assemblage called Nassawadox
                           Farms, is negotiating to acquire two other parcels, and has had positive contacts and
                           discussions with all of the remaining owners.

                           Zoning

                           Under the current Northampton County zoning ordinance, part of the area is zoned
                           "Agricultural" and part is zoned "Rural Residential." The current ordinance would
                           allow an estimated 640 new residential units to be developed within the area
                           primarily 20,000 square foot lots in the rural residential district, along with five-acre
                           and one-acre lots in the agricultural district. In contrast, the Conservancy's concept
                           plan provides for a substantially lower overall density of development (approximately
                           75 total dwelling units) in order to assure protection of the coastal waters, along with
                           clustering of residential settlements in order to preserve farmlands, forests and the
                           area's rural character.

                                  Greens Creek - Upshur Creek - Phillips Creek Seaside Farms
                                                                 Concept Plan

                             Planning Overview

                             The Conservancy worked with Paradigm Design, its land planning consultant, to
                             develop a Geographic Information System (GIS) computer mapping program for the
                             North Broadwater Macrosite, including the Greens Creek - Upshur Creek - Phillips
                             Creek Seaside Farms. Using the GIS data, the Conservancy developed a base map
                             and overlay maps showing various environmental conditions for the area. Additional
                             mapping data was also collected, and several on-site evaluations were conducted by
                             Conservancy staff and land planners. The Conservancy held a two-day planning
                              charette" with its planners and other consultants to develop the following concept
                             plan for the Greens Creek - Upshur Creek - Phillips Creek area. This concept plan is
                             designed as a holistic and comprehensive approach to sustainable development.

                             Goals

                             The Conservancy seeks to create a working model for conservation and compatible
                             development in the Broadwater Macrosite, its highest priority area on the Eastern
                             Shore mainland. The Greens Creek, Upshur Creek & Phillips Creek Seaside Farms
                             provide an ideal location for the prototype. The farms include the required physical
                             characteristics for such a program. Moreover, the Conservancy has substantial land
                             holdings in the area, as well as excellent relationships with all major landowners.

                             The Conservancy's goal is to demonstrate a successful pilot initiative for conservation
                             and compatible economic development which:

                                            Conserves the coastal ecosystem.

                                            Maintains productive farmland, retains a viable farming community and
                                            provides a working demonstration of sustainable agriculture.

                                            Supports compatible human uses and employment opportunities.

                                            Provides a demonstration of sustainable nature tourism and education.

                                            Maintains the area's rural character, historic resources and traditional
                                            settlement patterns.

                                            Provides a diversity of housing opportunities.

                                            Serves as a community model for good land use.

                                            Provides economic values for landowners and the community.

                            Proposed Land Uses -- Concept Plan

                            The enclosed draft concept plan for the Greens Creek - Upshur Creek - Phillips Creek
                            Seaside Farms envisions an array of human uses showing how people can live and
                            prosper in harmony with nature. Creative planning and conservation easements will
                            provide for the following uses, which represent a vision of the seaside farms of the
                            future:

                                          Conservation and use of productive farmlands
                                          Working farms with sustainable agriculture and value-added production
                                          Sustainable nature tourism and education programs
                                          Residential settlements, with low density on the waterfront
                                          Appropriate wastewater treatment demonstrations
                                          Applied scientific research programs and facilities
                                          Historic preservation
                                          Affordable rural homes
                                          Forest conservation, planning and management
                                          Network of hiking trails and interpretative areas
                                          Demonstration of compatible water access and use
                                          Design guidelines which reflect indigenous architectural patterns

                            Farmland, Forest and Wetland Conservation Areas

                            Under the seaside farms concept plan, the vast majority of the acreage would be set
                            aside as farmland, forest and wetland conservation areas. All of these areas would be
                            assured protection either by Nature Conservancy ownership or by perpetual
                            conservation easements.

                            Lodge

                            A site in a location with good deepwater access would be serve as a lodge facility for
                            "Eastern Shore Experience" nature tourism, education programs and professional
                            conferences. Five-day and weekend programs would be offered, including workshops
                            in natural history and sustainable development. The facility would include a meeting
                            building which is authentic to the place, plus simple cottages of appropriate character
                            within walking distance. All facilities would be designed be in scale with the
                            surroundings.

                            The meeting house facility would be designed to accommodate 12 people, expandable
                            to 24. Four cottage units would provide a total of seven bedrooms.

                            The lodge would also include a trail system linked to seaside farm settlement and
                            interpretative areas, as well as a dock, parking area and storage barns.

                              Settlement Areas

                              The seaside farms concept plan seeks to maintain and enhance the economic value for
                              both the landowners and the whole community. Rather than allow conventional
                              development patterns which would destroy the area's rural character, subdivide
                              productive farm fields, and degrade the coastal ecosystem, the plan provides for
                              clusters of residential settlements which are consistent with the Eastern Shore's
                              traditional settlement patterns. Seaside farm residents would be living within a
                              permanently protected landscape. A network of trails would link the settlement areas
                              to the lodge, interpretative areas and sustainable development programs. Four major
                              types of settlement areas are proposed -- town settlements, historic home settlements,
                              farm settlements and wilderness settlements. The approach serves as a model
                              demonstration of the local comprehensive plan and sustainable land use.

                              1.      Town Settlements

                                      Description    Town clusters of 12 to 19 residential units, in or adjoining
                                                     town. Residential units organized around a green, framed by
                                                     trees, with private views in rear. Some duplex units to provide
                                                     more affordable housing.

                                      Market         Retirees, families with children, others who want an easy walk
                                                     to town and access to larger community of people, yet also want
                                                     to have access to adjoining protected open spaces, Broadwater
                                                     Macrosite amenities.

                                      AreNtecture    Eastern Shore town design guidelines. Units facing a green,
                                                     front porches, fences. Pedestrian-scale streets.

                                      Places         Two clusters adjoining town of Nassawadox

                                      Nurnber        22 single  family units; 8 duplex units (26 total residential sites)

                                      Size           Half-acre

                                      Price          $50,000 for single family parcel; $25,000 for duplex

                              2.      Farm Settlements

                                      Descripfion    Farm clusters of four residential units, integrated into part of a
                                                     working Eastern Shore farm which is deploying new sustainable
                                                     agricultural programs. Located at end of clarnshell driveway,
                                                     landscaped with mature trees.

                                     Market         Persons attracted to the farm environment, fewer neighbors,
                                                    surrounding rural open spaces, access to Conservancy programs.

                                     Architecture   Based upon traditional Eastern Shore farm cluster -- farm house,
                                                    guest house, and other outbuildings, all of which would be
                                                    designed as functioning residential units.

                                     Places         Custis Farm and Nasswadox Farms

                                     Nwnber         Five clusters, totalling 20 residences

                                     Size           One acre residential parcels

                                     Price          $75,000,

                             3.      Histodc_ Home & Farm Settlements

                                     Description    Historic Eastern Shore homes, along with surrounding acreage,
                                                    allowing two or three additional guest houses. There may be
                                                    an occasional historic home with a pattern of outbuildings that
                                                    would form a cluster of residences or serve some other
                                                    appropriate use, such as an education or research facility.

                                     Market         A person interested in historic preservation, seaside farm
                                                    ownership, and Broadwater Macrosite programs.

                                     ArcNtecwe      Based upon the original historic home and outbuildings.

                                     Places         Woodlands Farm and others

                                     Nwnber         Three

                                     Size           Historic house plus 10 to 40 surrounding acres

                                     Price          $300,000 to $600,000

                             4.      Wilderness Settlements

                                     Descripfion    Much greater privacy, near waterfront or some focal point, in a
                                                    location which provides a salt marsh or wilderness experience,
                                                    surrounded by Conservancy-owned lands. Each site would
                                                    allow for one to three residential units with secluded views.
                                                    Sites to be retained under single ownership. Private driveway
                                                    into the area, private dock or screenhouse where suitable.

                                    Market         Nature Conservancy supporters.

                                    Archilectm     More rustic design integrated into existing landscape with little
                                                   disturbance; designed to minimize impact of views from water.
                                                   A traditional Eastern Shore hunting lodge may be one prototype,
                                                   or smaller cottages with cedar siding.

                                    Places         Suitable secluded locations on seaside farms.

                                    Ayw&r          Four locations, totalling six parcels

                                    Size           Five to fifteen acres

                                    P@ice          $125,000 to $600,000

                             Other Uses

                             In addition to the conservation areas, settlement areas and lodge, the seaside farms
                             concept plan provides for other compatible uses which meet the environmental,
                             economic and community goals. Among these uses are:

                                            New sustainable agriculture areas and facilities, which might include
                                            small greenhouses, designated plots for sustainable crops, and a farm
                                            office.

                                            Existing working farm facilities.

                                            Lmations for affordable rural homes.

                                            Conservation and sustainable development research conducted on the
                                            farms, including a comprehensive watershed research program. The
                                            Virginia Coast Institute could have its headquarters facility in the area.

                                            A community facility at a special waterfront location for educational
                                            programs, community oyster roasts and other gatherings.

                                            Boat storage and a nearby ramp for landowners.

                                            A network of hiking trails and interpretative areas available to all
                                            landowners, including cross-farm trails linking the farms to the town of
                                            Nassawadox and to Brownsville.

                             A homeowners association, with Conservancy participation, would oversee
                             management of the common areas and facilities.

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                                                   VIRGINIA EAST'ERN                       SHORE          BIOSPHEAE               RESERVE
                                                                                    NASSAWADOX            FARMS
                                                                                   The Nature Conservancy

                                                                                      DRAFT CONCEPT PLAN
                                                          PREPARED FOR THE NATURE CONSERVANCY - PREPARED BY PARADIGM DESIGN - FEBRUARY 1994

                                Green's Creek - Upshur Creek - Phillips Creek Seaside Farms
                                              Plan to Secure Conservation Easements

                           The Greens Creek - Upshur Creek - Phillips Creek Seaside Farms assemblage
                           includes a total of 16 different ownership parcels. These properties include three
                           family farms now in private ownership -- Woodlands Farm, Custis Farm and Lewis
                           Farm -- along with ten other farm parcels and three residential parcels.

                           The Nature Conservancy plans to secure conservation easements over all of these
                           properties according to the following plan:

                           1.      The Conservancy has already secured a conservation easement on the largest
                                   and most critical property in the assemblage -- Woodlands Farm. Woodlands
                                   Farm is a 616 acre farm which extends from Route 13 to the Machipongo
                                   River along the northern border of the area. Woodlands is one of only two
                                   properties with deep water access, and the only parcel which combines deep
                                   water access with substantial upland acreage. This property was acquired by
                                   the Conservancy and resold at the Conservancy's cost with a perpetual
                                   conservation easement.

                           2.      The Conservancy has acquired five other key parcels. These properties
                                   include the 25 acre Thomas' Wharf tract -- which is the other parcel with deep
                                   water access, and which adjoins Woodlands Farm. In addition, the Conser-
                                   vancy has acquired four parcels totalling 329 acres which comprise the
                                   Nassawadox Farms assemblage along Phillips Creek and Brownsville Road.
                                   The Conservancy has an option to acquire an additional 40 acre parcel in this
                                   assemblage, and is negotiating to acquire two other parcels.

                                   The Conservancy's ownership assures   the perpetual conservation of these
                                   properties as part of the seaside farms buffer zone; a conservation easement
                                   will be provided under one or more of the following scenarios, depending
                                   upon the outcome of current negotiations with key landowners:

                                   A.     Ile Conservancy may transfer some or all of these holdings during
                                          1994 to the new Virginia Eastern Shore Sustainable Development
                                          Corporation, as part of its commitment to provide $500,000 worth of
                                          land towards the capitalization of the corporation. The land transfer
                                          would include a perpetual conservation easement retained by the
                                          Conservancy.

                                   B.     The Conservancy may transfer some or all of the holdings into a new
                                          limited liability company, which may be formed in partnership with one
                                          or two other major landowners in the area. As in the case above, the
                                          land transfer would include a perpetual conservation easement to be
                                          retained by the Conservancy.

                                 C.     The Conservancy may retain portions of the farm acreage and convey
                                        settlement area parcels and common areas to individual buyers or
                                        conservation-minded investors. In this event, the Conservancy would
                                        retain a conservation easement on all of the properties conveyed, and
                                        would provide reciprocal legal assurances to the buyers.

                          3.     Finally, the Conservancy has had positive contacts and discussions with all of
                                 the remaining landowners. It is currently negotiating with two of the three
                                 major owners to determine their interest in participating in the proposed
                                 concept plan for the area (e.g. by forming bi-lateral partnerships, a limited
                                 liability company, or other means). The third owner now lives on the family
                                 farm property, and has expressed a willingness to work with the Conservancy
                                 at a future date. Under any implementation scenario, the Conservancy will
                                 secure ownership or conservation easements on all properties which participate
                                 in the concept plan.

                                Green's Creek - Upshur Creek - Phillips Creek Seaside Farms
                                                            Financial Analysis

                            The.Conservancy seeks to design land use plans which maintain economic value for
                            owners of seaside farms, while protecting ecological values with conservation
                            easements. To meet this goal, the Conservancy analyzes the financial results of
                            alternative seaside farm plans. It looks for a compatible development plan which
                            protects the natural resources, maintains prime farmland, preserves the area's rural
                            character, and also produces an adequate economic return.

                            The Conservancy's preliminary financial analysis indicates that an economically viable
                            conservation and compatible development plan can be implemented for the planning
                            area as illustrated in the enclosed draft concept plan.

                            The financial analysis includes estimates of revenues and expenses. Revenues would
                            be earned from the resale of parcels located in settlements on different areas of the
                            farm. The remainder of the property -- over 90% of the land -- would be protected
                            as farmland, forests and open space, subject to a permanent conservation easement.

                            The expenses are associated with the costs of the land and interest; the costs of
                            various improvements to the property -- such as clamshell drives, farm roads, a
                            network of trails, etc.; and property taxes, marketing and administration.

                            The difference between revenues and expenses is the cash flow. Cash flow is
                            negative in the early years -- that is, expenses exceed revenues -- due to the up-front
                            cost of land acquisition and improvements.

                            Projected sales of 56 land parcels, generally located in clustered settlement areas,
                            would occur over a period of eight years. Most of the land parcels command
                            premium prices because they are surrounded by protected open space and part of the
                            Conservancy's conservation easement program. The Conservancy has also developed
                            tentative plans to provide for some additional lower-cost units.

                            The "internal rate of return" calculates the return on investment from the stream of
                            cash flows over the eight year period. The investment of funds made in the first two
                            years begins to yield positive cash flow in subsequent years. The estimated internal
                            rate of return is 7%.

                            The financial analysis indicates that a compatible development plan can be
                            implemented on the Green's Creek - Upshur Creek - Phillips Creek Seaside Farms
                            which achieves conservation and sustainable development goals. The plan yields a
                            reasonable economic return to landowners, while maintaining the neighborhood's rural
                            character, keeping prime farmland in production, and protecting the coastal
                            watershed.

                                                                    NORTH BROADWATER MACROSITE - PHASE 1
                                                                                                     Cash Flow

                                                              I# DUs Amount          Year 1         Year 2        Year 3        Year 4       Year 5        Year 6       Year 7        Year 8       TOTALS

               EXPENSES
                 Improvements
                     Improved Roads (feet)               4800                 $40                    $96,000       $96,000                                                                          $192.000
               -Clamshell Drives - new (feet)            9500                 $10      $47,500       $47,500                                                                                         $95,000   1
                     Clamshell -- upgrade (feet)         75001                 $5      $37,50                                                                                                        $37,500
                     Farm Roads (feet)                  100001                 $5      $50,000                                                                                                       $50,000
                     Causeway Improvement                     2          $25,000       $50,000                                                                                                       $50,000
                     Trails (feet)                      16800                  $3      $25,200       $25,200                                                                                         $50,400
                     Landscaping (units)                    56             $2.500      $35,000       $35,000       $70.000                                                                          $140,000
                     Electricity (feet)                 28000         ---      $3      $21,000       $21,000       $42,000                              1                                            $84,000
                     Docks                                    3        __$2:5]-000     $75,000                                                          1                                            $75.000
                     Screenhouse                              1        __$35,00@       $35,000                                                                                                       $35,000
                     Boat Storage & Ramp                      1          $40,000       $40,000                                                                                                       $40,000
                     Thomas Wharf Facility                    1          $50,000       $50,000                                                                                                       $50,000-
                     Survey/Engineering                     56             $2,0001   $112,000                                                                                                       $112,000
                     Site Planning                            1          $48,000       $48,000                                                                                                       $48,000
                     Subtotal Improvements                                           $626,200       $224,700-      $208,000             $0            $0           $0            $0           so   $1,058,900.
                 Contingency (% of Improvemts)                                 5%      $31,310       $11.235       $10,400              $01           $0           $0            $0           $0     $52,945
                 Marketing                                                             $20,000       $20,0001      $20,000       $20,0001       $15,000      $10,000       $10,000      $10,000     $125,000-
                 Property Taxes
                     Commons                                                   1%        $9,163        $9,163         $9,163        $9,163       $9163        $9,163        $9,163.      $9,163      $73,304..
                     Unsold Parcels                                            1%      $22,080       $38,028       $27,278       $16,528         $8,778        $5,278       $2,2781      $1,210     $121,45811
                     Subtotal Property Taxes                                           $311243       $4 191        $36,441       $25,691        $17,941      $14,441       $11,441      $10,373     $194,76211
                 Land Purchase                                                       $85ZOOO        $8q&PqO        $852,000     $852,000                                                           $3,408,000
                 Mortgage Interest                                           6.0%                   $153,360       $102,240      $51,1201                                                           $306,720

                 TOTALEXPENSES                                                      $1,560,753     $1,308,486    $1,229,081     $948,811        $32,941      $24,441       $21,441      $20,373    $5,146,327

               CASH FLOW                                                             -$344,583      -$842,316     -$137,911     $142,359      $758,229      $341,729     $294,729      $170,797     $383,033,

               CUMULATIVE CASH FLOW                                                  -$344,583    -$111861899  -$1,324,810    -$11182,451     -$4241222     -$82,493     $212.236      $383,033
               INTERNAL RATE OF RETURN                                                                                                                                                                    6.8%

                                                                                                                                                                                                BROADVVTRCash Flow

                                                                           NORTH BROADWATER MACROSITE - PHASE 1
                                                                                                                Cash Flow

                                                                         DUs   Amount          Year 1         Year 2         Year 3         Year 4          Year 5         Year 6         Year 7         Year 8         TOTAL!

               REVENUES
                  Land Sales Income
                      Woodlands Manor & Waterfron                   1     .3   $575,000        $575,000                                                                                                               __@575 00
                                                                                                                                                                                                                                0
                      Greens Creek Wilderness                       1      3,  $600,000                                                     $600,000                                                                     $600,000-
                      Lodge Site                                    1      4   $500,000        $500,000                                                                                                                  $500,000
                      Insitute "Campus"                             1      4   $300,000                                                                     $300,000                                                     $300,000
                      Upshur Creek Wilderness                       1      3   $500.000                                      $500,000                                                                                    $500,000
                      Farm Cluster Lots                           16      16   j75 000                        $150,000       $225,000       $225,000        $225,000       $150,000       $150,000         $75,000     $1,200,000
                      Affordable Rural Lots                         2      2.   $25  1 000                     $25,000         $25,000                                                                                     $50,000
                      Town Settlement                               I     _-I-i
                         Single Family Lots                       22      22 $50,000                          $100,000       $150,000       $200,000        $200,000       $200,000       $150,000       $100,000      $ I'l 00,000
                         Duplex (haff lots)                         8      8 $25,000                           $50,000         $50,000         $50,000        $50,000                                                    $200,000
                      Phillips Creek Wilderness                     3      3   $125,000        $125,000       $125,000       $125,000                                                                                    $375,000
                      Subtotal                                    56      68                 $1,200,000       $450,000      $1,07@,000     -$1,-07-5,0-0-0- $775,000       $35-0-,0-0-0-  $300,000       .$175,000     $5,400,000
                  Lease Income
                      Farmland Leases                                                            $16,170       $16.170 ___A16,17Q              1 q,1 LO         16170        $16,170         16,17Q.      $16,1 0            9      0
                      Subtotal                                                                   $16,170       $16170          $16,170         $16,170       $1 170          $16,170        $16.170         $16,170      $129,360
                  TOTAL REVENUES                                                             $1,216,170       $466,170, $1,091,170         $11091,1701      $791,170       $366,170       $316,170       $191,170      $5,529,360

                                                                                                                                                                                                                   BROADWTRCash Flow
                                                                                                                                                                                                                              2MIA994

                                                                                                                     NOAA COASTAL SERVIMS CTR LIBRARY

                                                                                                                     3 6668 14112702 9