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Conducting informal internal appraisals and formal external appraisals to establish and <br />monitor value <br />Using diverse strategies and methods for land or conservation rights acquisitions <br />including conservation easements, land dedications, phased purchases, rights of first <br />offer or refusal, and Transferable Rights and Transferable Credits programs for <br />managing buffer zones and building credits <br />In our study session with Council this year we touched only briefly on the topic of acquisition <br />strategies and options and failed to emphasize that Open Space acquisitions and wayfinding <br />remain our top two priorities. We urge City Council and staff to explore and invest in pursuing as <br />many acquisition or alternative property interest options as possible. <br />Acquisition Tools <br />From Boulder Open Space and Mountain Parks Website: "Success in property acquisition requires that <br />OSMP keeps regular contact with owners of lands targeted for acquisition. In one instance, an <br />acquisition of several hundred acres required more than 10 years of contact before the purchase of a <br />complex series of development rights agreements limited the potential development of hundreds of <br />acres of residential and commercial construction." <br />Real Estate Agent Retainer: <br />How it works: While many large open space agencies have staff dedicated to land acquisitions, this is <br />unpractical or unfeasible for smaller agencies due to cost and infrequency of opportunities. A smaller <br />municipality could extend its reach through an established network of real estate brokers in the area. <br />Real estate brokers tend to be the first individuals with knowledge of potential land coming on the <br />market for sale, and may have relationships with landowners in the area. A municipality could provide <br />a select group of brokers its target acquisition list to either pursue transactions, or to simply keep the <br />municipality abreast of potential target acquisition opportunities. It is typical in the real estate industry <br />for a seller to pay all brokerage commissions/compensation. <br />Advantages: Expands the reach of smaller municipalities' on -staff resources at minimal additional <br />costs, and may result in additional opportunities. <br />Disadvantages: May result in a conflict if multiple brokers identify the same target acquisition at the <br />same time, an event more common in a smaller municipality real estate market. <br />Right of First Refusal/Option Agreement: <br />How it works: The right of first refusal is a contract between the buyer and seller which specifies that <br />the land may be acquired by the buyer at a future date. This gives the municipality the opportunity to <br />match an offered purchase price within a specified time period should a landowner receive a legitimate <br />offer to sell. A purchase option is simply a right that the municipality holds to purchase the land by a <br />specified date at a specified price. A right of first refusal and a purchase option can be either donated <br />to the municipality or sold. <br />Advantages: Keeps the opportunity open, keeps the dialogue going, inexpensive. <br />Disadvantages: Money paid to the seller for the right of first refusal/option is forfeited if the city cannot <br />or will not purchase the land at the specified time and price. <br />Fee Simple Acquisition: <br />How it works: Most acquisitions of open space have historically been fee simple purchases. <br />Advantages: Fee acquisition have the advantage of giving the city full control over the management of <br />the properties' resources, and provide the greatest flexibility for decision making about the best ways to <br />address visitor access, agricultural management, ecological restoration and other management issues. <br />0 Page 2 <br />