MATANUSKA-SUSITNA BOROUGH AGRICULTURE ADVISORY …€¦ · Page 1 of 1 MATANUSKA-SUSITNA BOROUGH ....

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MATANUSKA-SUSITNA BOROUGH AGRICULTURE ADVISORY BOARD

Chairman - Norman Harris (05) Dick Zobel (02) Vacant (06) Jon Olsen (10) Vice Chair - James Skinner (09) Vacant (03) Derylee “Lee” Hecimovich (07) Erik “Moe” Johnson (11) Bruce Bush (01) Jenny VanderWeele (04) Donald Brainard (08) Braden VanderWeele (12)

AGENDA

REGULAR MEETING January 17, 2018 DSJ BUILDING LOWER LEVEL CONFERENCE ROOM 4:30 P.M. I. CALL TO ORDER; ROLL CALL

II. APPROVAL OF AGENDA; PLEDGE OF ALLEGIANCE

III. AUDIENCE PARTICIPATION (Limit to 3 minutes)

IV. APPROVAL OF MINUTES

A. November 15, 2017

V. ITEMS OF BUSINESS

A. Correspondence - none

B. Staff Report

C. PPM Ag Land Sales Subparts Draft

D. Resolution 18-01

1. A RESOLUTION RECOMMENDING ASSEMBLY ACTION, IN THE FORM

OF AN ORDINANCE, TO ESTABLISH A CHANGE IN MSB CODE 23.05.100

CLASSIFICATIONS.

VI. MEMBER COMMENTS (Note: Limit to 3 minutes)

VII. NEXT MEETING

A. February 21, 2018, 4:30 pm – DSJ Building Lower Level Conference Room

VIII. ADJOURNMENT

TO PROVIDE EMAIL COMMENT REGARDING ANY AGENDA ITEM,

PLEASE EMAIL: [email protected]

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Chairman - Norman Harris (05) Dick Zobel (02) Ken Peltier (06) Jon Olsen (10) Vice Chair - James Skinner (09) Vacant (03) Derylee “Lee” Hecimovich (07) Erik “Moe” Johnson (11) Bruce Bush (01) Jenny VanderWeele (04) Donald Brainard (08) Braden VanderWeele (12)

MINUTES

SPECIAL MEETING November 15, 2017 DSJ BUILDING ASSEMBLY CHAMBERS 4:30 P.M. I. CALL TO ORDER; ROLL CALL

Mr. Harris called the meeting to order at 4:30 p.m.

A. Members present and establishing a quorum were:

Dr. Norman Harris, James Skinner, Dick Zobel, Jon Olsen, Erik Johnson, Donald

Brainard.

B. Members Absent and Excused: Derylee Hecimovich, Jenny VanderWeele, and

Braden VanderWeele.

C. Members Absent: Ken Peltier and Bruce Bush.

D. Staff present: Tracy McDaniel, Asset Manager and Deborah Selman, CD Dept.

Admin. Specialist.

II. APPROVAL OF AGENDA; PLEDGE OF ALLEGIANCE

GENERAL CONSENT: Agenda approved without objection.

Mr. Harris led the Pledge of Allegiance.

III. AUDIENCE PARTICIPATION (Limit to 3 minutes)

None

IV. APPROVAL OF MINUTES

A. September 20, 2017

B. October 18, 2017

Mr. Skinner motioned to approve, Mr. Johnson second, minutes approved without

objection.

V. ITEMS OF BUSINESS

A. Staff Report – none

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B. Guest Speakers

1. Katie Sunderland, Manager, Alaska Rural Rehabilitation Corporation

(ARRC).

a. Ms. Sunderland discussed and explained farm loan types and held

a question and answer session.

2. Amanda Swanson, Loan/Collection Officer, Agricultural Revolving Loa

Fund (ARLF), State of Alaska.

a. Ms. Swanson explained several different loan programs and farm

loans and opened the floor to questions and answers.

3. Jeff Curry, Agricultural Program Manager, USDA.

a. Mr. Curry explained federal loan programs, farm loans, and

discussed how USDA works with the state and non-profit agencies

to help farmers/ranchers obtain farm loans and opened the floor to

questions and answers.

VI. MEMBER COMMENTS (Note: Limit to 3 minutes)

Mr. Zobel: Hit on a land mine going through past 20 years. Sold as Ag Land what legally

can MSB do? People doing loans, folks are looking for smaller parcels. Look back at the

old brochures on how MSB sold land, and the next step is estates and homes on ag land

and how can we get food producers? Why aren’t they producing? What is the drawback

to land owners not producing? Mr. Zobel discussed hi ag parcel CCR’s and enforcement

of ag lands by type, ag rights, CCR’s, etc. How different conditions under each sale are.

Mr. Olsen – none.

Mr Johnson – none.

Mr. Brainard: Wished everyone a Happy Holidays.

Mr. Skinner: Stated it was a pleasant and informative session talking with the presenters.

Mr. Harris: Commented on enforcement and how you shouldn’t tell people you’re going

to enforce unless you actually do enforce.

VII. NEXT MEETING

A. January 17, 2018, 4:30 pm

VIII. ADJOURNMENT

Mr. Harris adjourned the meeting at 5:35 p.m.

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AGRICULTURE ADVISORY BOARD Norman Rex Harris, Chairman ATTEST: Deborah Selman, Department Administrative Specialist

Tracy K. McDaniel, SR/WA, Asset Manager Community Development Department, Land and Resource Management

350 E. Dahlia Avenue, Palmer, Alaska 99645 907.861.7864 Direct

Matanuska-Susitna Borough MEMORANDUM TO: Agriculture Advisory Board Members FROM: Tracy K. McDaniel, Asset Manager DATE: January 8, 2018 RE: Staff Report

I hope everyone had a Merry Christmas and Happy New Year. So far, 2018 has started off in full swing with agricultural related questions regarding transfer of property rights. Your packet includes the new draft update of the Agricultural Policy and Procedure Manual (PPM) as we discussed at our October 2017 meeting. I took the document presented at the October meeting and removed the deletions and incorporated the insertions as adopted by the boards previous resolutions. There are grammar changes, formatting changes, and incorporation of language from Title 13 and 23. Please pay close attention to subpart 8, Sales and Subdivision. This is where I made significant changes to the document as far as formatting for clarity and ease of readership. The intent of the boards adopted resolutions remains with further expansion on the homesite and subdivision area of the policy. At the October meeting, I also discussed expanding on the classification of agricultural lands. I have included in your packet Resolution 18-01 that supersedes Resolution No. 15-05. The re-write of the classification expands and updates the agricultural classification for a broader definition of agricultural lands. As always, your input is very important to me and I welcome any comments, suggestions, and changes you may have as we move forward in this endeavor.

PPM Ag Land Sales Subparts - DRAFT – January 8, 2018

TITLE 23 LAND AND RESOURCE MANAGEMENT DIVISION

POLICY AND PROCEDURE MANUAL

Agricultural Land Sales: Agricultural Disposal PART 5 Effective Date: xx-xx-2017

1.1 Authority: 23.05.030 (E)

23.10.070 23.10.150


2.1 Classification. The land shall first be classified per classification procedure as “Agricultural lands.” A. Review by the Agriculture Advisory Board for recommendations to the

Assembly shall occur prior to the Matanuska-Susitna Borough disposition of interest, including but not limited to lease, sale, classification, or establishment of a non-farm business on previously classified and sold borough agriculture property.


3.1 Sale Notice. The offering of borough-owned land in an agricultural disposal will be published containing at a minimum:

A. the date, time and place of awarding/naming the successful bidder/buyer for

the parcel(s) in the disposal; and

B. the period during which bids/applications will be accepted; and

C. a statement of the interest to be conveyed, terms and conditions of disposal, the terms of payment and length of financing, purchaser and borrower qualifications required, contract performance requirements, and any other special conditions or limitations; and

D. maps for each parcel identifying the vicinity where the parcel is located and

the immediate area; and

E. additionally, the following information will also be provided for each parcel:

1. approximate size in acres;

2. minimum sale price; 3. any special reservations and conditions, such as easements or non-

development buffers, which will be imposed upon the parcel at time of conveyance.


4.1 Purchaser qualification.

A. In addition to meeting the qualifications of applicants and bidders required by MSB 23.10.090, in order to be eligible to purchase property in an agricultural land sale, a prospective purchaser must register prior to the sale and must sign a statement worded substantially as follows:

“I hereby acknowledge and affirm that if I am the successful purchaser, I will use the land acquired at this sale for agricultural purposes as required by the sale program set forth in the covenants, conditions, and restrictions; the farm conservation plan, and all agricultural land use district regulations in which boundary the parcel is located and which have been disclosed to me. I further acknowledge and affirm that I will abide by the provisions of applicable federal, state, and borough laws and regulations. I understand that if I am the successful purchaser, I will be required to submit information required by the program and become a cooperator with the appropriate soil and water conservation district. If borough financing is offered to purchase the parcel, I will be required to meet the borough’s lending requirements. I further understand that the classification of the property as “agricultural land” only identifies the land as being “presently or potentially valuable for production of agricultural products” and the borough makes no warranties, either express or implied, nor assumes any liability whatsoever regarding the social, economic, or environmental aspects of the property, to include, without limitation, the soil conditions, water drainage, physical access, availability of personal use wood supplies now or in the future, natural or artificial hazards, which may or may not exist, or merchantability, suitability, or profitability of the property for any use or purpose.”

B. The borough manager may require a prospective purchaser to provide

evidence that would establish the purchaser’s: 1. ability to obtain financing and repay debt, including credit reports

and income verification; or 2. net worth; 3. Evidence of Alaska residency by providing the physical location of

Alaska residence and by submitting a copy of one of the following: a. current Alaska voter registration card issued for more than

30 days; or b. current Alaska driver’s license issued for more than 30 days;

or


c. current Alaska hunting or fishing license issued for more than 30 days; or

d. current year Alaska permanent fund filing receipt; or e. an affidavit signed by two individuals who swear and attest

they have known the individual to be a resident of Alaska for more than the 30 previous days.

4. United States citizenship by submission of a copy of one of the

following: a. certified copy of certificate of birth in U.S. or U.S.

possession; or b. U.S. passport; or c. U.S. Immigration Service issued form for one of the

following: i. certificate of U.S. citizenship; or ii. certificate of naturalization; or iii. U.S. citizen ID card; or d. certification of birth abroad issued by U.S. Department of

State; or e. Native American tribal document; or f. Current voter’s registration card.

C. The manager may provide sale preference for Alaska Veterans.

1. Alaska Veteran’s Preference Auction. A restricted sale in which eligible Alaska veterans have first option to purchase agricultural parcels in a Sealed Bid Auction. A veteran’s preference may only be used once in a veteran’s lifetime.

2. During the first 30 days of a sealed-bid agricultural auction with

property identified to be sold with a veteran’s preference, purchase applications submitted must all include qualifying veteran’s documentation.

a. Applicant must be 18 years of age or older.


b. Form DD 214 (Report of Separation from Active Duty) showing the qualifying length of active duty and the character of the discharge.

c. Veteran must have served on active duty in the Armed Force of the

United States (Army, Navy, Marines, Air Force, Coast Guard; State National Guard units; or Army, Navy, Marine, and Air Force Reserve) or the Alaska Territorial Guard for at least 90 days, unless tenure was shortened due to a service-connected disability.

d. Applicant must meet Alaska residency requirements and include

proof of residency documentation with the application:

i. copy of your valid and current Alaska Driver’s License or State-issued ID card.

AND ONE of the following items:

ii. Alaska Permanent Fund Dividend confirmation of eligibility or

confirmation of receipt of funds;

iii. Employment, unemployment, or military records;

iv. Current and valid occupational licenses issues by the State of Alaska;

v. Income tax records showing employment in Alaska; or

vi. School records.

E. If no bids are received from qualifying Alaska veterans, the manager may open a 30-day bid accepting applications from veterans with United States citizenship. Applications would be required to include submission of documents as outlined in Part 5, Section 4.1, Subsection C, 2.

Comment/Suggestion: Should it be a Sealed Bid Auction…consider, “If no bids are received from qualifying Alaska veterans, the manager may accept application from veterans with United States citizenship for a 30-day period in a Seal Bid Auction. Application would be required…”

F. Following the veteran’s preference timeframe, the sale parcels would be

available to bids from all Alaska residents. Comment: Is this a Seal Bid Auction, Over the Counter Auction???

G. The borough manager will require proof of the authority to conduct

business in the state of Alaska if the prospective purchaser is a corporation, partnership, limited liability company, joint venture, or some


other entity which is not acting in the capacity of an individual, and proof that the individuals have authority to act on behalf of the entity.

H. The borough manager may refuse to approve borough financing based on

the analysis of the prospective purchaser’s ability to repay debt which may take into consideration prior delinquency in payment of taxes, rents, default in payments toward any contracts or loans, or for other good cause.


5.1 Sale Method. Agricultural land sales may be by outcry or sealed bid auction,

lottery, or any other method allowed by borough code. The sales will be conducted according to the relevant procedure for the particular disposal method. Parcels that have been offered in a competitive agricultural disposal program and have not been sold may be placed in an over the counter sale. The method of conducting the sale will change to the over the counter process. However, the terms and conditions attaching to the parcel under the agricultural land sale program and financing qualifications will remain the same as the competitive agricultural land sale program.


6.1 Farm Conservation Plan and Right to Farm statute.

A. Pursuant to all agricultural property sold by the Borough or by transfer of

title of previous sold borough agricultural parcels, which are utilizing borough code to maximize agricultural capability to the extent feasible and practical, all borough agricultural property owners will: 1. Be a cooperator with their appropriate Soil and Water Conservation

District (SWCD), and 2. Provide a Farm Conservation Plan which will be developed with the

assistance of the appropriate soil and water conservation district personnel and reviewed by the appropriate SWCD Board and return to MSB Land and Resource Management Division for approval by the Borough Manager.

a. The Farm Conservation Plan will be included in the case file and

will run with the land until/unless specifically changed and allow for farm visits from the appropriate SWCD personnel for the purposes of assistance in implementation and to provide Farm Conservation Plan information to MSB employees for use in the property case file.

B. Fallow is NOT a farm plan.


7.1 Construction of Real Property Improvements.

A. Each agricultural land sale program has, or will include terms and conditions under which construction of real property improvements will be authorized as outlined in the sale documents for Title 15, Title 13, and Title 23.

B. The designated areas when calculated together may not exceed five acres

in size, except as set forth below. The areas may include home sites, well and septic location(s), and the farmstead areas normally required for yards, driveways, parking, barns, animal pens, outbuildings, and other similar uses.

C. Areas larger than five acres may be authorized by the borough manager

and designated if unusual or large scale real property improvements are necessary for agricultural development of the parcel conveyed.

D. Changes in the location or size of the designated real property

improvement area are subject to approval of the borough manager. The borough manager may approve a change if the change is consistent with the agricultural use of the property.

E. The method for designating and amending the real property improvement

sites will be set out in the terms and conditions of the agricultural land sale program and will be enforced by covenants, conditions, and restrictions.

F. Processing and recording fees may be charged to the owners that request

the designated improvement sites be amended.


8.1 Sale.

A. Borough-owned property 10 acres or greater where 50% or more of the

soils are a class II, class III, class IV, or Natural Resource Conservation Service classified soils of local importance; and where other lands adjoining the property are either classified or in agricultural production, shall be considered for an agricultural classification and an agricultural sale program.

B. Lands sold with an agricultural classification will sell fee simple conveying agricultural rights only from [DATE] forward. 1. Agricultural rights will be valued at 10% of the fair market value.

2. Development rights will be retained to the borough to protect

agricultural use of the property in perpetuity. 3. The Assembly may establish other conditions of sale which are best

designed to promote the agricultural use and development of the subject lands.

C. A parcel sold in a borough agricultural land sale may consist of more than

one parcel of record and is considered to be a single farm unit. D. The terms and conditions of the financing offered by MSB to purchase

agricultural parcels, among other things, prohibits the property from being subdivided or the ownership transferred without the specific consent of the borough during the term of the loan.

8.2 Subdivision.

A. No subdivision is allowed unless the Assembly grants a release from the

terms and the sale for an amount of land sufficient for a farm residence and/or farm related facilities, of no more than five (5) acres, provided that the land is situated so as to conform to all planning, platting, subdivision, and other regulations of the Borough.

B. If Assembly approval is provided for subdivision, all subdivided home sites

shall be sold with the farm unit and not retained separately to alleviate an agricultural rights only property to have no home site


C. The land shall then be sold and granted to the purchaser as fee simple

determined by an estimated fair market value appraisal of the fee estate (land only) minus the estimated fair market value of the agricultural rights (land only) indicated by the fee appraisal.

D. Parcels greater than 40 acres and classified as agricultural property for a

future agricultural sale program will not be subdivided less than 40 acres, unless Assembly approval with the provisions of Section 8.2, A, B, and C above.

F. Upon division of the farm unit, designated real property improvement

areas will remain in the location and size most recently authorized by the borough manager unless amended as provided under the terms and conditions of the agricultural sale program.

8.3 Property classified agricultural land and sold prior to [DATE], shall adhere to the

following subdivision policies.

A. Title 15 (1970-1974). Property classified agricultural land and sold fee simple with deed restrictions shall not be subdivided smaller than 40 acres in size.

B. Title 13 (1974-1994). Parcels classified agricultural land and sold with the agricultural rights only and the Borough retaining the development rights, shall be required to apply to the Borough and receive Assembly approval to subdivide the property. No subdivided parcels may be smaller than 40 acres in size; 1. No subdivision is allowed unless the Assembly grants a release from

the terms and the sale for an amount of land sufficient for a farm residence and/or farm related facilities, of no more than five (5) acres, provided that the land is situated so as to conform to all planning, platting, subdivision, and other regulations of the Borough.

2. The land shall then be sold and granted to the purchaser as fee simple determined by an estimated fair market value appraisal of the fee estate (land only) minus the estimated fair market value of the agricultural rights (land only) indicated by the fee appraisal.

3. If Assembly approval is provided for subdivision, all subdivided home

sites shall be sold with the farm unit and not retained separately to alleviate an agricultural rights only property to have no home site;

C. Title 23 (1994-[DATE]). Parcels classified agricultural land and sold fee


simple with all rights conveyed and subject to recorded covenants, conditions, and restrictions requiring agricultural land use in perpetuity, subdivision is only allowed once after 10 years. No parcels may be smaller than 40 acres, with one 5-acre home site that is required to be recorded.

1. A Notice of Designated Improvement Site(s) shall be filed by the owner

and approved by the borough prior to construction of any improvements on the farm unit and later sub-farm units.

8.4 If Assembly approval is provided for subdivision; the manager shall have the

authority to approve subdivision applications and the recording thereof, as long as sufficient evidence is provided that the result will be enhanced agricultural use.


9.1 Enforcement of Agricultural Use and Program Requirements.

A. The requirements of agricultural use and the terms and conditions of the agricultural land sale programs will be enforced by the instrument that conveys title, the contractual covenants, conditions, and restrictions, or by adoption of an agricultural land use district for the area prior to the sale, or any combination of the methods deemed appropriate for the particular program.

B. A notice will be recorded as a public document, “To whom it may Concern”,

for each property sold by the Matanuska-Susitna Borough with restrictions that run with the land in perpetuity.

C. The requirements of any financing offered by the MSB to purchase the

agricultural parcels will be enforced based on the terms and conditions of the recorded instrument(s).

D. In the event the parcel is located within the boundary of an agricultural land

use district, or such other zoning which may exist, all development, including construction of real property improvements, will conform to the adopted regulations for the district or zone.


CHECK LIST FOR SUBDIVISION Submit an application and fee of $500.

A preliminary commitment for owner’s title insurance to determine status of title by the borough.

The classification of the homesite must be changed from “agricultural” to “residential” in order for the development rights the borough retained under a former Title 13 agricultural land classification programs to be conveyed for the homesite. Any CCR’s related to the agricultural rights sale must be repealed, of record, for the homesite and the farm plan automatically amended to exclude the homesite area.

The homesite must meet borough platting regulations in effect at the time the additional rights are conveyed by the borough.

The buyer must pay cash at closing for the purchase price established for the additional rights conveyed for the homesite by the borough.

The purchase price for the additional rights conveyed in the homesite shall be based on a fee appraisal performed by a qualified fee appraiser under instructions established by the borough. The date of the appraisal shall be based on the date the borough manager approves the homesite purchase request.

The purchase price of the homesite shall be the estimated fair market value of the fee simple estate (land only) minus the estimated fair market value of the agricultural rights (land only) indicated by the fee appraisal.

When the homesite or the land within 100 feet of the homesite perimeter has structural development, an as-built survey will be accomplished and any encroachment or set back violations disclosed will be remedied prior to closing the sale.

All costs to process the request, including but not limited to, those costs for survey, platting, encroachment permits or variances, and fee appraisal, will be paid in advance by the applicant and all title report fees and policy and transaction closing costs will be paid at closing by the applicant.

AAB Reso 18-01 1/17/2018 Page 1 of 2


RESOLUTION NO. 18-01 A RESOLUTION RECOMMENDING ASSEMBLY ACTION, IN THE FORM OF AN ORDINANCE, TO ESTABLISH A CHANGE IN MSB CODE 23.05.100 CLASSIFICATIONS.

WHEREAS, the Agriculture Advisory Board was enacted by

Matanuska-Susitna Borough Ordinance 15-050 to provide advice to

the assembly and manager on agricultural issues; and

WHEREAS, the Borough definition of agriculture under

23.05.150 definitions has changed over time to include the

production and harvest or care of plants, animals, birds, fish,

bees, and other organisms by humans for use in providing food,

fuel, fiber, shelter, clothing, energy, and aesthetics;

classification based on lands valuable for the production of

agricultural crops is not consistent; and

WHEREAS, a fundamental request at the Agriculture Forum and

of the Ad Hoc Committee was that the Borough provide as much

consistency as possible across all Borough-sold agriculture

property; and

WHEREAS, this current resolution shall supersede Resolution

No. 15-05 adopted February 17, 2016.

NOW, THEREFORE, BE IT RESOLVED, that the Matanuska-Susitna

Borough Agriculture Advisory Board recommends the Matanuska-

Susitna Borough Assembly pass an Ordinance that MSB Code

23.05.100 Classifications (A)(1) be changed from “Agricultural

lands” are those lands which, because of soils, location,

physical or climatic features, or adjacent development, are

presently or potentially valuable for the production of

AAB Reso 18-01 1/17/2018 Page 2 of 2

agricultural crops be changed to, “Agricultural lands” are those

lands which, because of soils, location, physical or climatic

features, or adjacent development, are presently or potentially

valuable for the [PRODUCTION OF AGRICULTURAL CROPS] raising and

harvesting crops, grazing, breeding and management of livestock

and dairy. This includes activities such as processing,

cleaning, packing, storing, and distribution of agriculture

produces.

ADOPTED by the Matanuska-Susitna Borough Agricultural

Advisory Board this 17th day of January 2018.

_______________________________ Norman Rex Harris, Chairman

ATTEST: Deborah Selman, Department Administrative Specialist

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