Easement Criteria Evaluation Project: Mill Branch Mitigation Bank and Ricky Wilson Ranch northwestern Denton County, Texas Project Address: Off of Wait Road in northwestern Denton County, Texas Coordinates: approx. SE Corner: 33.37142, -97.34717 approx. NW Corner: 33.38835, -97.36371 Proposed Easement Size: The acreage along the streams is being designed as a Wetland Mitigation Bank by Riverbank Ecosystems under lease to the rancher (Grantor.) 600 acres of pastures, and grass-lined intermittent streams. There may be a fair amount of native grasses present. Stream reaches are fairly incised, but will be redesigned as part of the mitigation work. Site is in the headwaters of Clear Creek. EASEMENT EVALUATION 1. Which of the IRS qualifying criteria applies to this project? Outdoor Recreation and Education Values Natural Resources Conservation Values Open Space Conservation Values for Scenic Enjoyment Open Space Conservation Values Pursuant to Federal, State or Local Government Conservation Policy Historic Conservation Values Explain: 1. Preservation of Natural Resource Conservation Values is the primary criterion for the easement establishment. 76 acres of intermittent ranch stream will be enhanced and restored within the Mitigation Bank. Within the adjoining ranch acreage, 524 acres of ranchland will be preserved in an active cattle ranch. 2. 76 acres of the site is being placed under a conservation easement pursuant to a federal government conservation policy. Wetland Mitigation Site to be placed under a Conservation Easement as required by USACE Guidance for Mitigation Banks. 2. How far is the property from Connemara headquarters? – within 70 miles of Allen, Texas. Also, site is located about 5 miles southeast of Leo Ranch easement. 3. How large is the property? - 600 acres total as owned by Grantor. The proposed 76-acre Mitigation Bank within this acreage consists of riparian buffers along the three water courses. Property is adjoined on the north, east and west by other active cattle ranches. 4. Is the landowner willing to endow funds to maintain the property in perpetuity? Explain: Yes. Stewardship endowment to CCF is being negotiated. Riverbank Ecosystems as the Bank developer proposes to cover the donation of an endowment for both tracts. D:\106749282.doc Easement Criteria Evaluation Project: Mill Branch Mitigation Bank and Ricky Wilson Ranch northwestern Denton County, Texas 5. Does the property provide open space that is valuable to a community due to its proximity to developing areas or because it helps define a community’s identity? Explain: Possibly. A majority of the lands in the area are still part of large tracts, but ranchettes are developing along FM 455 to the south. 6. Does the project further and/or is it consistent with local government’s conservation plans or policies? Explain: Yes. USACE conservation plans for mitigation banking. 7. Does the property buffer, add to, or otherwise help protect or improve already protected areas? Explain: No protections are currently on these reaches of water way, especially headwaters of tributaries along this creek. The ranch streams are currently incised, so enhancements and realignment of tributaries using geomorphologic design within the proposed Bank will serve to enhance the vegetative nature of this segment of rivers and creeks, and add to water quality improvements for downstream. 8. Is the property under probable threat from future development? Explain: Not in the foreseeable future. Landowner has not plans for selling off tracts for ranchettes. 9. Does the project represent a prudent financial investment in conservation? Explain: Yes. Even though this is a profit-centered endeavor, the protection of river and creek corridors under conservation easements will assure future riparian corridor sustenance and water quality protection. D:\106749282.doc Easement Criteria Evaluation Project: Mill Branch Mitigation Bank and Ricky Wilson Ranch northwestern Denton County, Texas 10. Is the project of sufficient size to provide public benefit and are its resource values likely to remain intact, even if adjacent properties are developed? Explain: Yes. Protection of this parcel will aid in future riparian corridor sustenance and water quality protection, even if adjoining tracts are broken into ranchettes. Connemara will be actively pursuing conservation easements on other large tracts in the area. This area contains many large tracts with quality stands of native tallgrass prairie. 11. Will the project initiate or serve as a precedent that may lead to additional easement projects? Explain: Yes. See above. D:\106749282.doc Easement Criteria Evaluation Project: Mill Branch Mitigation Bank and Ricky Wilson Ranch northwestern Denton County, Texas OTHER ISSUES Potential Presence of Hazardous Materials? (Any potential reason for concern?) Low probability of haz. wastes on the property. Grantor and previous owners have only used property for grazing. Land Management Uses (overgrazing, erosion, trespassing, evidence of future violations (i.e. 4-wheelers, etc.): Streams are showing considerable erosion from previous grazing activity. Ranch land will be rotationally grazed, and stream corridors will be fenced off from cattle. Concerns for Stewardship in the Future? Y N If yes, why? (i.e. distance from office, terrain, difficulty for access, etc.) No. Stewardship endowment is part of the granting of the Mitigation Bank. OTHER CRITICAL INFORMATION Mitigation Bank will involve Riverbank Ecosystems obtaining a land-use lease from the rancher, who is to be the Grantor. As part of the banking instrument, Riverbank Ecosystems will be required to annually monitor the wetlands for at least 5 years or until the Performance Criteria are met. CCF will rely on these annual reports for qualitative and quantitative data concerning the mitigation status during the first 5 years, other than performing at least one independent site visit each year to assure the organization and the USACE that stream development and site management activities are consistent with the easement language. Following the achievement of minimum success on the stream enhancement parcels, Riverbank Ecosystems will not be required to continue monitoring activities after minimum success is reached. The rancher will take over management of the mitigation tracts along with his ranch tracts, and CCF will continue to perform at least one site visit each year with the generation of a monitoring report for submittal to the Grantor (the rancher) and possibly to the USACE as third-party enforcer. CCF should not be required to monitor the continued survival of the plantings for the USACE after the 5-year period. No educational or public recreational activities are being proposed for the site, but language will be included in conservation easement to allow for educational field trips. D:\106749282.doc Easement Criteria Evaluation Project: Mill Branch Mitigation Bank and Ricky Wilson Ranch northwestern Denton County, Texas Conduct research on the property to determine location, acreage, and relationship to surrounding land and water uses, etc.; Conduct research on the landowner, including how the property is owned; Contact and meeting with the landowner; Visit the property; Identify the property’s conservation resources; Obtain natural resource and cultural inventories; Obtain board or committee approval to proceed, as required. Obtain a copy of the landowner’s deed and mortgage deed (if any); Identify zoning ordinances or regulations that apply to the property Identify a property’s designation, if any, in local or regional governmental plans; Obtain maps of the property (various types may be specified); Obtain or taking photos of the property; Identify boundaries or obtaining a boundary survey; Identify any liens, encumbrances, easements or restrictions; Identify ownership of mineral rights; Complete a preliminary evaluation for hazardous waste; Obtain a title abstract and, if necessary, title insurance; Obtain mortgage subordination (for conservation easements); Send a letter documenting the landowner’s need to obtain his or her own legal counsel and financial advice; Provide the landowner with an explanation of the land trust’s stewardship fund policy; Complete any written letters of understanding about the purpose or use of the property; Obtain an appraisal (ordered by landowner or land trust, depending on type of transaction); Obtain legal review by the landowner’s counsel; Obtain legal review by the land trust’s counsel; Complete the criteria sheet and/or fact sheet for use in board review; Obtain full board review and approval; Sign and record of the deed or conservation easement; Thank the donor; Complete (by the donor) IRS Form 8283 and sign by the land trust (if a donation); Prepare and distribute press releases; Organize files and securing safe storage for originals of key documents; Post boundary markers; Organize baseline data and establishing monitoring schedules and responsibilities (for conservation easements); and Develop a management plan (for properties in fee). 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