The good news is that the farm owner is thinking about selling. You know the owner well. You have developed a relationship with him over the years. His dog knows you—you can knock on his door without fear of losing a limb. But, the old gentlemen is a shrewd businessman. He knows that his land is very valuable. Developers call frequently to offer outrageous amounts of money. His relatives have been reminding him that it is time to plan for the future. Finally, he agrees and is ready to talk. He wants to sell to your park district in order to keep the land green. But he expects a price approaching fair market value and he wants to keep farming for as long as possible.

What should be good news now seems more like bad news. The timing could not be worse. Funds are in very short supply. You have a tax cap and the voters' mood is definitely anti-tax. The prospect of going to referendum sends chills through your board members. You need some help. Who can you turn to?

A land trust may be an answer. A land trust is a not-for-profit organization working behind the scenes to protect important land resources for public benefit. Land trusts use a variety of creative and innovative methods to preserve lands. Their capability to custom tailor solutions to meet specific needs of the landowner and the community has made them very successful. Land trusts are the fastest growing part of the conservation movement and are the vanguard of the trend toward local self-sufficiency and community action to solve land conservation problems.

According to the national Land Trust Alliance there are more than 1,100 land trust organizations—with a combined membership of 900,000—working to save land throughout the country. These groups of volunteers and concerned citizens have helped to conserve more than four million acres of wetlands and wildlife habitat, trails and recreation areas, scenic lands, urban gardens, productive farm land and forest areas. The hallmark of all land trusts is their direct involvement in land transactions, Following are the many land saving techniques employed by land trusts.

Donation
People will give their land for preservation purposes. Often it is a matter of establishing a long-term relationship and then asking at the proper time and in the correct fashion. People are more likely to give property to a local organization that they know and trust, than to a governmental entity.

Bargain Sale
This is part sale and part donation. A property is sold at less than full market value and the owner can claim a charitable contribution for the difference. The owner receives cash and the charitable deduction may offset some of the gain.

Illinois Parks & Recreation * May/June 1996 * 31

Fair Market Purchase
Land trusts with sufficient resources are able to purchase land on the open market. This is necessary when an owner is unable or unwilling to donate the property, to sell it in a bargain sale, or to give a conservation easement.

Bequest
Landowner retains ownership until death. The property then passes to the land trust.

Donation with Life Estate
Some owners are willing to donate their property but wish to retain use during their life. Donation while retaining a life estate enables them to remain on the property for as long as they want.

Land Exchange
This is the circumstance in which a property received as a gift by the land trust is exchanged for another piece of land. Generally, this is land with very little conservation value that is exchanged for land that is worthy of protection.

Land that is acquired by a land trust can be dealt with in a number of ways which include the following:

Conveyance to a Public Agency
The land trust acquires and holds the property until the public agency is ready to purchase it from the land trust. Conveyance to Another Land Non-Profit The land trust acquires and holds property until another non-profit has been established or is able to finance acquisition.

Permanent Ownership and Management
Land trust retains ownership and assumes management responsibilities.

Limited Development
The land trust acquires property, limits future development through restrictive easements and resells or leases back part or all of the property.

How could a land trust help in the example of the farm that your park district wants dearly to purchase? The most direct action would be for the land trust to purchase the property and retain ownership until your park district is ready and able to purchase it from the land trust. In most cases, the land trust

32 * Illinois Parks & Recreation * May/June 1996

The farm example is a real life situation for The Conservation Foundation of DuPage County. The park district looking to acquire the property called seeking help and advice. The Foundation looked into the circumstances and found that this was an especially complicated case because of the extremely high value of the land and the low cost basis that the owner had in the property. The owner and heirs would face massive capital gains and estate taxes.

The Conservation Foundation determined that the most useful thing to do would be to recommend an especially skillfull attorney who is working on structuring a transaction that will avoid capital gains taxes, reduce or eliminate estate taxes, provide a large charitable deduction and allow the owner to retain a life estate. The result to the owner and heirs may be more favorable than an outright sale to a developer. The transaction would utilize something called a charitable remainder unitrust. Yes, it is legal and was intended by Congress to allow local organizations to do beneficial work with funds that would otherwise go to Washington. A charitable remainder unitrust requires the participation of a not-for-profit organization—a role that a land trust can fill.

They're not making any more land. And, in the built-up parts of Illinois, opportunities to acquire park and open space land are becoming fewer and fewer. When opportunities arise, high land costs and lack of financial resources make it difficult to take advantage. Talk with a local land trust. They may be able to help.

Bill L. Davis is director of land preservation and Brook McDonald is executive director for The Conservation Foundation of DuPage County in Wheaton, Illinois

The Conservation Foundation of DuPage County was founded in 1972 by individuals concerned by the rapid pace of development and the impact that it was having on the quality of life for DuPage County residents. The Conservation Foundation, in the role of a land trust, has acted to preserve more than 1, 300 acres of land in DuPage County. Most of this land has been turned over to park and forest preserve districts through prearranged agreements. This role, on behalf of landowners and open space agencies, has not only helped to preserve valuable open space, but also has saved tax dollars.