July 14, 2009
Londonderry.net
Why I opposed the Conservation Commission’s purchase of the Estey and Mack Easements
by Tom Freda
In the last few months, including the last two months of my term on the Londonderry Budget Committee, I have publicly raised concerns over the Estey and Mack conservation easement purchases. My reasons follow.
This past February, the Londonderry Conservation Commission (LCC) voted to purchase an easement over 75 acres of land from the Estey family for $1,028,600, based upon a real estate appraisal that was completed in January 2007. Mike Speltz of the LCC, after initially denying that this land had declined in value as much as other real estate due to the recession, conceded that the Estey land could have declined by as much as 30% percent or about $300,000. Mr. Speltz stated at the LCC hearing approving the sale that he believed the LCC was “morally obligated” to go forward with the purchase at the 2007 price, despite not being legally required to do so. Moreover, the LCC minutes of March 24, 2009 note that “Harold Estey in particular has made it clear that he would forego any deal if another appraisal were required”. At the Town Council hearing, Mr. Speltz claimed that seeking a current appraisal would “compromise” the good faith that the owners placed in the LCC and urged them to approve the sale as is. (By the way, by not having a current appraisal, the Town cannot qualify for a Federal grant, per the LCC, thus making Londonderry’s taxpayers bear the entire costs).
This month the LCC is rehearing a proposal to purchase another easement over 26 acres of land owned by Andy Mack for $900,000.00. The original proposal at the LCC public hearing was to purchase the easement for just $900,000. The final agreement still has a sale price of $900,000, but gives Andy Mack the right to withdraw two house lots (up to 110% the size of a regular lot) out of the 26 acres. Based on the appraisal, the value of those two lots could be as much as $114,400, but according to the agreement, there is no provision for Mack to repay the Town in the event he exercises these withdrawal rights.
From just these two purchases the LCC is paying more than current market value for the easements, perhaps as much as $414,000 more. Both deals follow by just a few months the voters’ decision to cut about $300,000 of money out of next year’s budget. Both deals follow the Town Council’s request to Town workers to agree to a pay freeze, due to the economy and tax burden faced by all Londonderry residents.
Under these circumstances, can we continue to let one unelected town commission overspend taxpayer funds, while at the same time asking Town employees to accept a pay freeze (which the voters approved in prior years) and cutting services to the rest of the Town just to hold down the tax rate? Can we continue to afford to have the individuals in charge of selecting and negotiating the purchases on behalf of the Town discouraging the Town Council from obtaining a current appraisal for the simple reason that Harold Estey may walk away from the deal? Isn’t it time that the individuals who select which space is going to be purchased, act to achieve the best deal for the taxpayers, and not worry about their relations with the sellers, who have consistently defined their idea of being treated “fairly” as simply getting more for their land.
When it comes to Open Space, Londonderry’s taxpayers have been generous. Not only has the Town bonded $8,000,000 in funds for the LCC, but since 1997 have directed that all proceeds from the Land Use Change Tax go directly to the Conservation Fund instead of the General Fund. Over the 10 years from 1997 thru 2007, the LCC has received over $1,900,000 in current use taxes, averaging $190,000 in tax revenue each year that could have been used for a variety of programs or tax relief. (Taxes that could have gone to the Town, instead directed to open space funding: Putting to rest that notion that LCC spending does not affect the tax rate). Currently, per LCC records, there are 26,958 acres of land in Londonderry and as of April 2007, 2,694.56 acres (about 10%) are protected from development and can be used by individuals for recreation. Londonderry’s town long-term debt stands at approximately $23,000,000, $8,000,000 of which, or approximately one third, is due to open space bonds, due and payable thru 2026.
Now, given the economy and fiscal restraints that we all must live under, isn’t it time for the burden of fewer taxpayer dollars fall equally on the LCC and its plans just as they have fallen on the Towns employees, taxpayers and other projects. The LCC can no longer remain immune from the basic economic reality that their goal of protecting 25% of Londonderry simply cannot be achieved thru taxpayer supported easement and land acquisition. They have under their stewardship 2694 acres of land. The Town’s limited resources should be devoted to maintaining these acres and not for further acquisition.
It may be too late to stop either the Estey or Mack deals from going thru. But later this month, the LCC will submit their request for future bond funding to the Capital Improvement Plan (CIP). What that application states will say much about whether or not the LCC has a grasp on the economic conditions we all face. Hopefully, they will understand that we cannot this coming budget season ask employees to accept pay freezes, job losses and expect taxpayers to bear additional tax burdens, while at the same time the LCC continues to seek millions to pursue its goal of protecting 25% of town land unabated. If however, that is the LCC’s plan for next year, then its simply time for the current members of the LCC to go.