[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
























                                                                                                                           0














                                                                                                                       0










                        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.















                                                                                                            S 9 AS]R&E    *ARMS P-LAX
                                                                                                                      ii"don areas
                                                                                                              F-jilpowyation areas
                                                                                                                            lon area
                                                                                                              rats        a lam
                                                                                      wissig
                                                                                                              F"
                                                                                                                 (5clusim"a"40mricimft

                                                                                                                              qZ6,Midv=)
                                                                                                              Affordable rural'homes (10)"         ;V                                                7_1         Ilk
                                                                                                              Lodge for nature,tourism &
                                                                                                                 education
                                                                                                              Working h =-iflattilities
                                                                                                              Sustainable ninculture or
                                                                                                                 facility                                                                            2
                                                                                                              Hiking trills common areas
                                                                     Settlement                                                                                                          7N
                                                        V I S 1 0 N


                                                        To create a successful community
                                                        incluadin       villages and rural
                                                                                                                                                                                                        A
                                                        "Itlem 8=n a landscape of
                                                              en                                                                                                                                    A A
                                                        f
                                                        .anns, forests, marshes, and coastal
                                                        bays -- which is environmentally and
                                                                                     ects
                                                        economically viable, which @e/T
                                                                                                                                                                                                                7
                                                        the goals and culture of the local                                                                                                              e
                                                        Reople, and which serves as a model
                                                        f9r conservation and compatible                       SSAWA
                                                        development.                                                                                                                             F




                                                                                                                                                      A5
                                                                                                                                                                        BI



                                                                                                                                                                                                               Ff



                                                                             A
                                                                                                                                                                        "et, 7

                                                           Ilk
                                                              Town Settlement

                                                        VIRGINIA EASTERN                                                                             S      H 0 R E                            I o s P
                                                                                                                GREEN'S CREEK/ UPSHUR                       -CREEK/ PHILLIP'S CREEK SEASIDI
                                                                                                                                  T h e N a t u r e C o n s e r v a n c y
                                                                                                                                                   DRAFT CONCEPT PLAN
                                                                      11%b mxp@ fancied. in;wn. by the Virsww coonj] Dr. the Far-*=Darnt'l C@Ial ResourcesManegenternPrograrn through Grant ONA,27OZO31241 (if the National Oceanic and Atmospheric Atintiobtration. Office ofomn &a coastal
                                     PREPARED F..OR THE NATURE                                    CONSERVANCY                          PREPARED BY PARADIGM DESIGN FEBRU












                                                               0
                                          @v

                                            0


                                                           0







                                                                                         ?

                                      .14 A S S
                                                               0








                                                                                              FAR    AND'
                                                                                        CONSER      110 1 A

                                      4P







                                   A

                                                                     /- X

                                                          A



                                                              0%






                                                                                                                   4QJ




                                                                                                            V    X

                                                                            13,


                                                                                                       7



                                                J            j



                                               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