GILROY
– The city is in the midst of drafting controversial legislation
to preserve its bordering farmlands.
By the end of April, City Council likely will approve a bill
requiring developers to preserve agricultural land in South County
each time they develop certain agricultural land around Gilroy.
GILROY – The city is in the midst of drafting controversial legislation to preserve its bordering farmlands.
By the end of April, City Council likely will approve a bill requiring developers to preserve agricultural land in South County each time they develop certain agricultural land around Gilroy.
Drafting the policy has been a complicated, year-long process that has confused and frustrated many folks on all sides of the debate.
The following is responses from experts – City Planner Cydney Casper and Alex Kennett of the Open Space Authority – to frequently asked questions on the matter:
What is mitigation and do I have to do it?
Mitigation is bureaucratic-speak for reducing the impact of something.
In this case, the impact is the loss of farmland due to growth. As more businesses and homes are built on land that used to grow fruits and vegetables, many worry this former agricultural beltway will get paved over.
In theory, mitigation prevents this from happening by making developers preserve farmland each time they build on farmland somewhere else.
Under the city’s current mitigation proposal, only some developers must mitigate. The conditions are when 10 or more acres of so-called “prime agricultural land” is developed, or when 40 or more acres of so-called “farmland of statewide importance” is developed.
Farmland outside Gilroy’s current boundaries that gets developed must be mitigated. Farmland within Gilroy’s current boundaries must go through the state’s environmental review process to determine if mitigation is required.
How does one mitigate?
There are three ways to mitigate:
• Buy farmland outright
For instance, if a developer builds on 10 acres of prime agricultural land, he or she could purchase 10 acres of prime agricultural land somewhere else. The second piece of land could not be developed.
This is the most expensive option.
• Buy development rights attached to farmland
Instead of purchasing active farmland from a farmer at top dollar, a developer could pay the farmer a percentage (typically between 35 percent and 65 percent) of the land’s market value.
This allows the farmer to continue owning and farming the land. However, the farmer could not develop on that piece of land.
• Pay an impact fee
Instead of options one and two, a developer could pay a fee (typically around $5,000-per-acre) to a land trust, which would bank the land for preservation.
What is a land trust and a land bank?
A land trust is a nonprofit agency that can accept donations of money or land for the purpose of land preservation. Preservation can be done for open space, ag land, wetlands, wildlife, parks and trails, among other things.
The Open Space Authority and the Santa Clara County Land Trust are the two agencies Gilroy would use. The City of Gilroy would not take control of preserved land.
A land bank is any collection of land held for a purpose. The purpose, for instance, may be mitigation.
Are donations to a land trust tax deductible?
Yes. Even donations made because of mitigation can be deducted from one’s taxes.
What can a developer do with the parcel he or she preserved?
A developer can dedicate preserved land to a land trust outright or dedicate the development rights to a land trust. By dedicating the development rights, the developer utilizes the parcel for agricultural purposes.
The one thing a developer cannot do with preserved land is build homes and businesses on it.
Where will preserved farmland be?
Preserved land will be outside Gilroy’s borders within an area called Gilroy’s sphere of influence. The sphere of influence goes north to roughly Masten Avenue in San Martin and south to the Pajaro River. It runs west to Watsonville Road and east to the foothills.
Contiguous parcels on the east side of the sphere of influence may become the preferred area for preserved land. Contiguity is important because it makes farming more economically viable.
Will preserved land ever be rezoned?
Land is preserved in perpetuity, but a government agency always has the right of eminent domain.
Eminent domain allows a public agency to take land from another agency or individual if it is in the best interest of the public. The government must pay a fair price for that land.
So, if in 100 or 200 years, for instance, the federal government says a highway must run through the preserved land, there may be changes to the zoning of the land.
What happens when preserved land gets sold?
If preserved land is sold, all the limitations on development get passed on with the land.
