DIVISION 45
LAND ACQUISITION GRANTS
695-045-0010
Definitions
(1) "Land Acquisition Project" is a project that proposes to acquire an interest in land from a willing seller for the purpose of addressing the conservation needs of priority habitat and species consistent with conservation principles identified by the Board. Interests in land may include a lease, purchase of a conservation easement, or purchase of fee simple title.
(2) "Partners" are persons or entities that have committed funding, expertise, materials, labor, or other assistance to a proposed land acquisition project.
(3) "Management Plan" is a description of the planned future management of a property proposed for acquisition that addresses species and habitat management practices, proposed restoration projects, land uses, public access, and educational or research opportunities on the property.
(4) "Ecoregion" means a large area of land or water that contains a geographically distinct assemblage of natural communities that (a) share a large majority of their species and ecological dynamics, (b) share similar environmental conditions, and (c) interact ecologically in ways that are critical for their long-term persistence.
(5) "Due Diligence Review" is a review conducted by OWEB staff and their contractors of the legal and financial terms of the proposed acquisition of an interest in land. This review includes:
(a) An independent, third-party review by a State Certified General Appraiser of the fair market value appraisal submitted by the applicant;
(b) Review by OWEB's legal counsel of the title, title exceptions, option or lease agreement, and proposed conservation easement, deed restriction, or lease submitted by the applicant, if applicable; and
(c) A review by an independent third party contracted by OWEB of the environmental site assessment(s) submitted by the applicant.
Stat. Auth.: ORS 541.396
Stats. Implemented: ORS 541.375(9)
Hist.: OWEB 1-2005, f. & cert. ef. 2-1-05
695-045-0020
Purpose
The Board is directed under Article XV, Section 4b of the Oregon Constitution and ORS 541.375(9) to allocate funding for land acquisition projects that, in its judgment, further the goal of protecting and/or restoring wild salmonids, fish and wildlife habitat, watersheds, or water quality in Oregon. As funds are available, and at times set by the Board, the Board shall consider grant applications for land acquisition projects using the criteria described in this Division. These rules will guide the Board's consideration of land acquisition grant applications based on the proposed project's ecological and educational benefits, partners, the effect the proposed project will have on the local and regional community, and the financial and legal soundness of the proposed real estate transaction. The Oregon Watershed Enhancement Board will not hold fee title to property under these rules.
Stat. Auth.: ORS 541.396
Stats. Implemented: ORS 541.375(9)
Hist.: OWEB 1-2005, f. & cert. ef. 2-1-05
695-045-0025
Eligible Expenses
Land acquisition project grant awards will only provide funding to assist with the purchase price of an interest in land. Interests in land include fee simple title, conservation easements, and leases.
Stat. Auth.: ORS 541.396
Stats. Implemented: ORS 541.375(9)
Hist.: OWEB 1-2005, f. & cert. ef. 2-1-05
695-045-0030
Ineligible Expenses
Expenses other than the actual purchase price of a property interest are not eligible for reimbursement as part of an OWEB land acquisition grant award.
Stat. Auth.: ORS 541.396
Stats. Implemented: ORS 541.375(9)
Hist.: OWEB 1-2005, f. & cert. ef. 2-1-05
695-045-0035
Required Matching Funds
All applicants shall demonstrate at least 25 percent in secured matching funds for a project prior to the disbursement of Board funds. If a grantee has not demonstrated 25 percent in secured matching funds within 12 months after Board approval of grant funds, or a different time period specified by the Board, the grant award will be rescinded without further action by the Board. Match may include:
(1) A commitment of cash by the grantee for the proposed purchase of fee title, a conservation easement, or the lease of a land interest.
(2) Secured funding commitments from other sources for the proposed purchase or lease of a land interest. Secured pledges must have supporting documentation.
(3) If the proposed purchase of an interest in land will be for less than the appraised fair market value, the difference between the appraised fair market value and the actual purchase price of the land interest.
(4) The following reasonable costs incurred prior to Board approval may also be included as part, or all, of the matching funds for the project:
(a) The cost of an option to purchase fee title or a conservation easement, or to lease a land interest, if it is credited toward the purchase or lease price.
(b) The cost of the fair market value appraisal of the land interest submitted to OWEB, including reasonable consulting fees necessary to complete the appraisal.
(c) The cost of a phase one environmental site assessment. If a phase one environmental site assessment indicates that further investigation is necessary, and OWEB staff request submission of a phase two environmental site assessment, the cost of a phase two environmental site assessment. If further assessment is recommended in the phase two assessment, and OWEB staff request further assessment, the cost of the additional assessment.
(d) The cost of a preliminary title report, exception documentation, and title insurance required by OWEB.
(e) Actual funds raised for a stewardship endowment for the project. Secured pledges must have supporting documentation.
(f) The cost of developing a management plan for the proposed acquisition.
(g) The cost of developing a baseline documentation report when the project proposes to acquire a conservation easement.
(h) The cost of surveying the property to obtain a legal description for title insurance purposes.
(5) The Director shall retain the discretion to determine that an amount identified as match in (d) above exceeds that which is reasonable and exclude the unreasonable amount from counting as match under this section.
Stat. Auth.: ORS 541.396
Stats. Implemented: ORS 541.375(9)
Hist.: OWEB 1-2005, f. & cert. ef. 2-1-05
695-045-0040
Evaluation Criteria
Land acquisition grant applications will be evaluated based on:
(1) The ecological benefits of the proposed project through reference to "OWEB Ecological Priorities for Land Acquisition by Basin" identified further in Section 695-045-0080(1);
(2) The capacity of the property manager to sustain the ecological benefits of the proposed project;
(3) The educational benefits of the proposed project;
(4) The strength of the partners in the project and support expressed for the project;
(5) The effect of the proposed project on the local and regional community; and
(6) The soundness of the legal and financial terms of the proposed real estate transaction.
Stat. Auth.: ORS 541.396
Stats. Implemented: ORS 541.375(9)
Hist.: OWEB 1-2005, f. & cert. ef. 2-1-05
695-045-0045
Application Review Process: Overview
(1) Land acquisition grant applications will be considered by the Board and evaluated according to the rules in this division if all application materials listed in Sections 695-045-0080 through 0120, except those listed in Section 695-045-0120(2)(a)-(g), are submitted prior to the grant application deadline established by the Director. Due diligence application materials, listed in Section 695-045-0120(2)(a)-(g) of these rules, do not have to be submitted with the initial grant application. The submission of due diligence materials by an applicant will be invited by OWEB staff upon the recommendation of the Board Acquisition Subcommittee, or by the OWEB Board after an initial review has occurred.
(2) The processing of all land acquisition project grant applications by the Board will involve the following steps:
(a) Initial review of the proposed project by a Board Acquisition Subcommittee. The Board Acquisition Subcommittee will evaluate the ecological and educational benefits and the proposed manager's capacity to sustain the benefits, partners in and support for the project, and the effect on the local and regional community of the proposed acquisition project.
(b) The Board Acquisition Subcommittee will either recommend proceeding with a due diligence review of a grant application, or recommend that the application be denied, and that no due diligence review of the application should occur. If the Board Acquisition Subcommittee recommends proceeding with a due diligence review of a land acquisition grant application, the Director will undertake a due diligence review once the grant applicant has provided the due diligence materials identified in Section 695-045-0120(2)(a)-(g).
(c) Review by the appropriate Regional Review Team, as defined in OAR 695-005-0020(4), of the ecological and educational value of the proposed acquisition project will occur after the Board Acquisition Subcommittee review.
(d) After a due diligence review of a proposed land acquisition project is complete, the Board Acquisition Subcommittee will synthesize the ecological and educational benefits of a proposed project and the proposed manager's capacity to sustain the benefits, partners in and support for a project, the effect on the local and regional community, the evaluation of the Regional Review Team, and the due diligence review of the project into a funding recommendation to OWEB staff.
(e) OWEB staff will synthesize the following into a staff funding recommendation to the Board:
(A) The ecological and educational benefits of a proposed project, and the proposed manager's capacity to sustain the benefits;
(B) Partners in and support for the project;
(C) The effect on the local and regional community;
(D) The due diligence review of a proposed project;
(E) The evaluation of the Regional Review Team;
(F) The recommendation of the Board Acquisition Subcommittee; and
(G) Information about available funding resources and competing projects.
(f) The Board will make a funding decision on a land acquisition project grant application based on the ecological, educational, and community benefits of a proposed project, the capacity of the proposed manger to sustain the ecological benefits, partners in and support for the project, and the financial and legal soundness of the proposed real estate transaction. The Board will take all information provided by the applicant, reviewers, and staff, as well as competing projects and available funding into consideration when making its funding decision.
Stat. Auth.: ORS 541.396
Stats. Implemented: ORS 541.375(9)
Hist.: OWEB 1-2005, f. & cert. ef. 2-1-05
695-045-0050
Application Review Process: Board Acquisition Subcommittee Review
(1) Initial review of a project will be conducted by a Board Acquisition Subcommittee appointed by the chair(s) of the Board. The Board Acquisition Subcommittee will consist of at least two voting members and one non-voting member of the OWEB Board, and will operate by consensus vote. The Board Acquisition Subcommittee will evaluate the ecological and educational benefits of a project and the capacity to sustain those benefits, partners in and support for the project, and the effect of the project on the local and regional community of the proposed acquisition project.
(2) Staff and the Board Acquisition Subcommittee may request additional information from the applicant, and pose specific questions to be addressed by the Regional Review Team.
(3) Staff will contact any affected tribe(s) prior to the first Board Acquisition Subcommittee meeting and provide them the opportunity to comment on a proposed acquisition project if the acquisition is proposed on or adjacent to tribal lands, including reservation lands, trust lands, or usual and accustom sites.
(4) After considering the written application materials and information provided by staff, the Board Acquisition Subcommittee will either recommend:
(a) Proceeding with the due diligence review of a grant application in preparation for a funding decision by the OWEB Board; or
(b) Recommend that no due diligence review of the application occur, and that the funding request be denied by the OWEB Board. This recommendation will be based on the initial evaluation of the ecological, educational, and community benefits of a proposed land acquisition project by the Board Acquisition Subcommittee.
(5) The Board Acquisition Subcommittee will use an application's consistency with and significance in supporting both the Conservation Principles and priority basin habitat and species identified in "OWEB Ecological Priorities for Land Acquisition by Basin," identified further in Section 695-045-0080(1), as a benchmark when evaluating the ecological benefits of a proposed land acquisition.
(6) The applicant will be notified in writing of the Board Acquisition Subcommittee's recommendation.
(7) If the Board Acquisition Subcommittee recommends that due diligence review of a grant application not occur, and that the Board deny the funding request, the Board Acquisition Subcommittee will provide the reasons for such recommendation for consideration by the Board. The grant applicant will have the opportunity to discuss this recommendation with the Board prior to its final decision on the grant application.
(8) The Board will vote on whether the grant application should be denied funding or deferred so that a due diligence review may occur. If deferred, the application will be scheduled for consideration by the Board at the next regularly scheduled Board meeting at which restoration and acquisition grants will be considered, as long as the applicant's due diligence materials are submitted at least 90 days before the meeting.
Stat. Auth.: ORS 541.396
Stats. Implemented: ORS 541.375(9)
Hist.: OWEB 1-2005, f. & cert. ef. 2-1-05
695-045-0055
Application Review Process: Regional Review Team Evaluation
(1) The geographically appropriate Regional Review Team will evaluate the ecological and educational value of every proposed land acquisition project, and be asked to provide direct responses to questions posed by the Board Acquisition Subcommittee.
(2) In its evaluation of the ecological value of a proposed acquisition, the Regional Review Team will make explicit findings about an application's consistency with and significance in supporting both the Conservation Principles and priority basin habitat and species identified in "OWEB Ecological Priorities for Land Acquisition by Basin," identified further in Section 695-045-0080(1).
Stat. Auth.: ORS 541.396
Stats. Implemented: ORS 541.375(9)
Hist.: OWEB 1-2005, f. & cert. ef. 2-1-05
695-045-0060
Application Review Process: Due Diligence Review
(1) The Director will only conduct a due diligence review of a grant application if it is recommended by the Board Acquisition Subcommittee or directed by the OWEB Board.
(2) If the Board Acquisition Subcommittee recommends proceeding with a due diligence review of a land acquisition grant application, the Director shall undertake a due diligence review in preparation for making a funding recommendation to the full Board. The due diligence review will occur once the grant applicant has provided the due diligence materials identified in Section 695-045-0120(2)(a)-(g). This review will include:
(a) An independent, third-party review by a State Certified General Appraiser of the fair market value appraisal submitted by the applicant;
(b) Review by OWEB's legal counsel of the title, title exceptions, option or lease agreement, and proposed conservation easement, deed restriction, or lease submitted by the applicant, if applicable; and
(c) A review by an independent third party contracted by OWEB of the environmental site assessment(s) submitted by the applicant.
(3) Applicants may, but are not required to, submit their due diligence materials, listed in Section 695-045-0120(2)(a)-(g), with their grant application. If an applicant's due diligence materials are not submitted with the grant application, and an applicant is invited to submit its due diligence materials by the Board Acquisition Subcommittee or Board, OWEB staff must receive an applicant's due diligence application materials at least 90 days prior to the Board meeting at which the application is considered.
Stat. Auth.: ORS 541.396
Stats. Implemented: ORS 541.375(9)
Hist.: OWEB 1-2005, f. & cert. ef. 2-1-05
695-045-0065
Application Review Process: Staff Funding Recommendation
The Director will develop a staff funding recommendation to the Board based on the evaluation criteria listed in Section 695-045-0040 and the information provided by the applicant, information developed by staff during the evaluation of the application, and the information provided by the Board Acquisition Subcommittee, Regional Review Team, and due diligence reviewers. The staff funding recommendation will be to fund or partially fund an application, fund an application with conditions, defer action, or deny funding for an application.
Stat. Auth.: ORS 541.396
Stats. Implemented: ORS 541.375(9)
Hist.: OWEB 1-2005, f. & cert. ef. 2-1-05
695-045-0070
Application Review Process: Board Funding Decision
The Board will make a funding decision on a land acquisition project grant application based on the evaluation criteria listed in Section 695-045-0040. This decision will be based on the information provided by the grant applicant, reviewers, Board Acquisition Subcommittee, and OWEB staff. The Board's decision will be made in the context of program budget and priority considerations.
Stat. Auth.: ORS 541.396
Stats. Implemented: ORS 541.375(9)
Hist.: OWEB 1-2005, f. & cert. ef. 2-1-05
695-045-0080
Application Requirements: Ecological Benefits of a Proposed Acquisition Project
(1) The ecological value of a proposed land acquisition project will be evaluated by reference to "OWEB Ecological Priorities for Land Acquisition by Basin" (Basin Ecological Priorities) adopted by the Board on September 14, 2004, and incorporated in these administrative rules by reference. OWEB's Basin Ecological Priorities can be found on file at OWEB's main office at 775 Summer Street NE, Suite 360 in Salem, Oregon, or on OWEB's website at www.oregon.gov/OWEB.
(2) To enable the Board to fully evaluate the ecological benefits of an acquisition project, an applicant shall provide the following information as part of a grant application:
(a) A map showing the approximate locations and descriptions of the habitat and species the project proposes to protect and/or restore.
(b) An explanation of why the applicant believes acquisition of a property interest is the best method to accomplish the proposed protection or restoration, including an answer to the question: "Why will a change in ownership result in a change in management beneficial to priority habitat or species?"
(c) A description of the relative importance of the site's habitat and species values at the watershed, basin, and ecoregion levels, and how the project relates to other watershed restoration and protection efforts in the watershed.
(d) Reference to current conservation plans that identify the property or habitat and species on the property as protection priorities. Applicants will attach the relevant pages from these plans to the grant application.
(e) A description of how the project will protect and/or restore priority basin habitat and species identified in Basin Ecological Priorities for the basin in which the property occurs.
(f) The approximate number of acres on the property containing priority habitat and/or habitat for priority species identified in the Basin Ecological Priorities. If the number of acres on the property containing priority habitat or species identified in the Basin Ecological Priorities is less than 50 percent of the total property acreage, a description of why the entire property interest is proposed for acquisition.
(g) A description of the project's consistency with one or more of the following Conservation Principles, described in more detail in the Basin Ecological Priorities. The proposed acquisition will:
(A) Protect a large, intact area; or
(B) Stabilize an area "on the brink" of ecological collapse; or
(C) Secure a transition area, protecting it from development; or
(D) Require active restoration to achieve its conservation purpose that would not occur without a change in ownership; or
(E) Protect a site with exceptional biodiversity value; or
(F) Improve connectivity of habitat; or
(G) Complete or complement an existing network of sites in the basin or region.
(h) Two letters from natural resource professionals not affiliated with the applicant or project sponsors explaining how the proposed acquisition will address the priority habitat and/or species and conservation principles identified in the Basin Ecological Priorities.
(i) If applicable, a description of watershed functions or water quality parameters the project proposes to directly affect, and the current condition and trend of watershed functions and water quality in the project area.
(j) A description of whether any water rights are associated with the property and whether portions thereof will be transferred to a protected instream water right as part of the project. If the water right or portions thereof will be transferred instream, a description of the watershed benefits associated with the transfer.
(k) A description of the benefit of the acquisition to the goals of the Oregon Plan for Salmon and Watersheds as listed at www.oregon.gov/OWEB.
Stat. Auth.: ORS 541.396
Stats. Implemented: ORS 541.375(9)
Hist.: OWEB 1-2005, f. & cert. ef. 2-1-05
695-045-0090
Application Requirements: Capacity to Sustain the Ecological Benefits of the Acquisition Project
To enable the Board to evaluate how a proposed land acquisition project's ecological benefits will be sustained, the applicant shall provide the following information as part of a grant application:
(1) Whether the ecological benefits will be protected by contractual limitations on future land uses or depend on affirmative future activities of the landowner not funded by the grant. If the latter, then how the applicant proposes to ensure that the ecological benefits are realized.
(2) If a management plan exists, attach a copy of the plan to the grant application.
(3) A description of the management goals and objectives for the land interest, and, if there is not yet a management plan for the interest, the process and timeframe that will be used to develop a long-term management plan for the land interest.
(4) A description of the entity(ies) that will be responsible for managing the land interest, and their organizational ability to implement the management plan or management goals and objectives for the land interest in terms of staff, volunteer, partner, and consultant qualifications and experience.
(5) A description of how the management entity(ies) will finance ongoing management costs, whether stewardship funding has been raised for the project, and plans to raise stewardship funding in the future.
(6) A description of the entity that will hold title to the land interest. If the proposed titleholder is a different entity than the proposed manager of the interest, a description of the relationship between the interest holder and the management entity.
(7) If restoration of habitat, species, or watershed function is proposed as part of the applicant's management goals and objectives for the project, a detailed description of the applicant's capacity to accomplish the restoration goals. This description should address how anticipated funding for the restoration will be raised.
Stat. Auth.: ORS 541.396
Stats. Implemented: ORS 541.375(9)
Hist.: OWEB 1-2005, f. & cert. ef. 2-1-05
695-045-0100
Application Requirements: Educational Benefits of a Proposed Acquisition Project
Not all proposed land acquisition projects should or will have an educational component. However, a proposed land acquisition project that has strong educational benefits may receive a higher ranking than a comparable project that does not have strong educational benefits. To enable the Board to evaluate the potential for the proposed acquisition to enhance citizen understanding of watershed health, if a proposed project does have an educational component, the applicant should provide the following information as part of a grant application:
(1) A description of any plans for education and outreach regarding the project.
(2) A description of how the proposed acquisition will enhance citizen understanding about watershed health at the local, regional, and state levels.
(3) A description of whether the public will be provided access to the property, and if so, under what conditions.
Stat. Auth.: ORS 541.396
Stats. Implemented: ORS 541.375(9)
Hist.: OWEB 1-2005, f. & cert. ef. 2-1-05
695-045-0110
Application Requirements: Partners, Support for the Project, and the Effect of the Proposed Acquisition Project on the Local and Regional Community
(1) To enable the Board to evaluate the effects of the proposed acquisition on the local and regional community, the applicant shall provide the following information as part of a grant application:
(a) A description of partners in the project, and what they will contribute.
(b) A description of entities that support the proposed acquisition, and documentation of their support.
(c) A description of the current land uses on the property, and the land uses adjacent to the proposed acquisition.
(d) A statement by the applicant regarding the proposed acquisition's effect on the local property tax base, including the amount of property taxes paid in the prior year, and whether the property will remain on the tax rolls, or whether in lieu of payments will be made.
(e) A description of the economic and social effects the project may have on the local and regional economy, community, and agriculture/forestry infrastructure.
(2) Grant applicants will provide a statement as part of their grant application certifying that they have contacted and will consult with any affected tribe(s) on a proposed acquisition project if the acquisition is proposed on or adjacent to tribal lands, including reservation lands, trust lands, or usual and accustom sites.
Stat. Auth.: ORS 541.396
Stats. Implemented: ORS 541.375(9)
Hist.: OWEB 1-2005, f. & cert. ef. 2-1-05
695-045-0120
Application Requirements: Due Diligence Regarding the Terms of the Proposed Acquisition
(1) To enable the Board to review the legal and financial terms of the proposed acquisition of an interest in land, applicants shall submit the following information as part of a grant application:
(a) The names of and contact information for the grant applicant(s), the current owner(s) of the property interest to be acquired, and partners in the project.
(b) A letter from the current owner(s) stating that they are in discussions with the grant applicant about selling or leasing the property interest.
(c) The address, a legal description, and a map of the land interest proposed for acquisition.
(d) A general description of the physical state of the property, including any current or proposed roads and structures and their location, and any legal encumbrances and their approximate location. A statement regarding whether the physical improvements or legal encumbrances may impact habitat or species proposed for protection or restoration on the property.
(e) The contractually agreed-upon purchase or lease price for the land interest, or if one does not exist, the anticipated price for the land interest and the basis for that anticipated price.
(f) The proposed conservation values to be protected by either OWEB's required easement, covenant or deed restriction described in OAR 695-045-0140(7), or the proposed easement or lease to be acquired.
(2) Submission of the following due diligence information at the request of OWEB staff or the Board is required to complete a land acquisition project grant application:
(a) A copy of the written option, purchase, or lease agreement for the proposed acquisition, or evidence that such an agreement exists. If a copy of the option, purchase, or lease agreement is not submitted, the applicant shall submit a brief statement explaining whether the terms of the option, purchase, or lease agreement limit the proposed transfer or lease in any way, or could affect the proposed use of the land interest for the purposes described in section 4(b), Article XV of the Oregon Constitution.
(b) A statement of whether or not the seller or lessor of the land interest is contractually required by the written option, purchase or lease agreement, or other related documents, to donate or transfer funds to the buyer, applicant, or a third party who has assisted with or facilitated the proposed acquisition.
(c) Disclosure of the amount of a contractually required donation or payment is required after an initial staff recommendation has been made on the grant application. Disclosure of the amount is required only if the donation or payment will exceed 15 percent of the purchase or lease price for the land interest. Disclosure of the amount of a contractually required donation or payment exceeding 15 percent of the purchase or lease price must be made to the Board in writing prior to the Board's consideration of the proposed funding request, or the grant application will not be considered for funding by the Board.
(d) A fair market value appraisal of the property interest to be acquired, completed within 18 months prior to submittal of the application to OWEB, in a Self-Contained Appraisal Report form. Summary or Restricted Use appraisal reports will not be accepted. The appraisal must be prepared by an independent State Certified General Appraiser certified by the State of Oregon, who is experienced in appraisals of such properties.
(e) A preliminary title report for the property. If exceptions are listed on the title report, documentation explaining the exceptions, and a map locating the exceptions on the property. A final title report must be submitted to OWEB within 60 days of closing.
(f) A phase one environmental site assessment (ESA) conducted by a qualified third party and complying, at a minimum, with American Society for Testing and Materials (ASTM) standard E1527-00 published in July 2000. If a phase one environmental site assessment indicates that further investigation is necessary, OWEB staff may require later submission of a phase two environmental site assessment. If a phase two environmental site assessment indicates that further investigation is necessary, OWEB staff may require submission of additional assessment information. The Board may require remediation prior to the release of grant funds. The final environmental site assessment report shall name OWEB as a third party beneficiary.
(g) If the grant application requests funding for the purchase of land, a draft of the proposed conservation easement, covenant or deed restriction to be held by OWEB, described in OAR 695-045-0140(7), consistent with the template provided by OWEB. If the grant application requests funding to assist with the purchase of a conservation easement or lease, a draft of the proposed conservation easement or lease, giving OWEB a third party right of enforcement, and including the conservation easement or lease elements provided by OWEB in template form. If OWEB's conservation easement or lease elements are not acceptable, then the applicant must describe what modifications are requested and why.
(3) The Director has the discretion to waive one or more of the submission requirements in this subsection if a functional equivalent that provides the same information for the Board's consideration as the document or information required by the rule is submitted.
Stat. Auth.: ORS 541.396
Stats. Implemented: ORS 541.375(9)
Hist.: OWEB 1-2005, f. & cert. ef. 2-1-05
695-045-0130
Acquisition Prior to Application
Applicants may submit an application for funding for an acquisition of a land interest that occurred prior to Board review of the application. These applications will only be accepted if the acquisition occurred after the preceding grant application deadline. In such cases, applicants must submit the following with their application:
(1) An explanation of the circumstances requiring acquisition prior to Board review of the application; and
(2) A statement acknowledging that the applicant proceeded with the acquisition with the understanding that the Board might not approve funding for the project, and that the prior purchase and any financial consequences to the applicant will not be a factor in the Board's funding decision.
Stat. Auth.: ORS 541.396
Stats. Implemented: ORS 541.375(9)
Hist.: OWEB 1-2005, f. & cert. ef. 2-1-05
695-045-0140
Grant Conditions
(1) The grant agreement will require a title insurance policy ensuring title to the interest acquired is vested in the grantee in an amount equal to or greater than the Board grant award to the grantee. The final title insurance policy must be submitted to OWEB within 60 days after closing.
(2) The grant agreement will require title insurance naming the Board as an additional insured, or require another form of assurance that Board funds will be repaid in the event the grantee is unable to carry out the intended use of the property as a result of a defect in title.
(3) Prior to the disbursement of any grant funds, the grantee must sign a grant agreement with the Board containing such terms and conditions as may be deemed necessary by the Director to ensure that the expected benefits of the project are realized, and that applicable legal requirements and any special conditions of the Board with regard to the particular grant are met.
(4) Grant agreements will include, but are not limited to, provisions ensuring that:
(a) The use of the land interest will be consistent with the purposes specified in section 4(b), Article XV of the Oregon Constitution.
(b) In the event that a property interest acquired with Board funding is used in a manner that is not consistent with the purposes specified in section 4(b), Article XV of the Oregon Constitution, Board funds will be repaid with interest due and payable from the effective date of the grant agreement at the rate provided for in ORS 82.010.
(c) Applicants must submit a report to the Board for not less than twenty (20) years following a grant award at a schedule determined by the Director of OWEB. The report shall briefly describe the use and management of the land interest, and certify that the land interest is being used and managed in a manner consistent with any conservation easement and the purposes specified under section 4(b), Article XV of the Oregon Constitution.
(d) Provisions to cover the conveyance of the property interest consistent with OAR 695-045-0150.
(5) The Board and/or Director may require other grant conditions in grant agreements as appropriate to ensure the project results in expected outcomes or otherwise complies with applicable law.
(6) Grant agreements are subject to legal sufficiency review by the Oregon Department of Justice, which may include a requirement to review all agreements relating to a proposed acquisition, including applicable options, purchase, or lease agreements, even if not earlier submitted to the Board.
(7) Prior to the disbursement of any grant funds, the Board will require execution of a conservation easement or other form of covenant or deed restriction on the use of the land by the appropriate parties to the grant award to ensure that the purposes underlying the Board grant award are accomplished, and that applicable legal requirements and any special conditions of the Board with regard to the particular grant are met.
(8) The Board has the authority to enforce the terms of a conservation easement or other form of covenant or deed restriction to which it is a party should the terms of the agreement be violated.
Stat. Auth.: ORS 541.396
Stats. Implemented: ORS 541.375(9)
Hist.: OWEB 1-2005, f. & cert. ef. 2-1-05
695-045-0150
Conveyance of Property Interest Acquired with Assistance of OWEB Funds
(1) An interest in land acquired with the assistance of a grant from OWEB shall not be conveyed to another party without prior OWEB Board approval of the conveyance. The Board shall use the following criteria when determining whether to approve a conveyance:
(a) Whether the ecological benefits, effect on the local and regional community, and terms of the original acquisition supporting the Board grant award also support approval of the proposed conveyance.
(b) Whether the proposed recipient of the interest in land has demonstrated its ability to hold and manage the interest consistent with the provisions of the original grant agreement and current OWEB rules; and
(c) Whether the proposed recipient agrees to the material terms of the original grant agreement, and any new conditions reasonably set by the Board.
(2) The Board shall not approve a conveyance that results in a profit to any person or entity. "Profit" means, for purposes of this rule, the amount by which the price for the purchase of an interest in land in a subsequent conveyance exceeds the purchase price for the same interest in land at the time the Board funds were used, net of usual and customary closing costs and appraisal costs actually incurred by the seller. If there will be a profit from a proposed conveyance, the OWEB Board may make a finding that no profit will occur, and approve a subsequent conveyance, by requiring payment of the amount of the profit to the Board.
(3) The Board will consider approval of a transfer of an interest in land acquired with the assistance of a grant from OWEB at any regularly scheduled public business meeting once it has received sufficient information from the grantee to evaluate the proposed transfer according to the criteria specified in the rules.
(4) Board funds will be repaid with interest due and payable from the effective date of the grant agreement at the rate provided for in ORS 82.010 in the event that a property interest acquired with Board funding is transferred or assigned without the Board's prior consent.
Stat. Auth.: ORS 541.396
Stats. Implemented: ORS 541.375(9)
Hist.: OWEB 1-2005, f. & cert. ef. 2-1-05
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