Open Space Preservation Alternatives for Property Owners

If you own properties that meet one or more of these specific criteria, then you should consider protecting your land as open space:

• Property that is sub-dividable
• Property that is adjacent to or near existing open space or park land
• Property used for farming of any kind
• Property that features wetlands, streams, steep slopes or scenic views
• Property that has historic features or remains

Remember: you can protect your property as open space and still continue to own it, live on it, farm it, sell it or bequeath it. In addition, the rapidly rising value of property can make preservation an attractive financial consideration with regard to capital gains and estate taxes. Mendham Township will help owners understand their preservation options; please contact Mendham Township Administrator Steve Mountain (973-543-4555 or smountain@mendhamtownship.org).  And of course, property owners should consult with their legal and financial advisors. 

Briefly, here are descriptions of some options for preserving property:

Sale of property

You can sell your property to a conservation or government agency. The price could be “fair market value” (determined by appraisals) or “bargain sale” (less than fair market value, with the difference becoming a tax-deductible donation). Sales can also be done in installments, spreading payments and deductions over a period of years. If a seller or seller’s family wishes to remain living on the land, that option is available as well.

Donation of property

There are many examples of generous donations of land for open space, especially among individuals who have owned and farmed land in Mendham Township for decades and, even, generations. It is possible to donate land and still retain use of it, continue living on it and continue to receive income from it. It also is possible to reduce estate taxes by including a land gift in your will. If you are considering a gift – now or in a will – it is important to contact Mendham Township ’s Administrator to discuss the details of the gift long before the actual transfer of title.

Conservation easements

A conservation easement is a recorded deed restriction on the use of all or part of a piece of property that has an identifiable conservation value (such as a wildlife habitat, open space, scenic views or historic interest). Property owner may sell or donate a conservation easement and continue to live on the land as well as continue current uses of it. Generally, enforcement of the conservation easement is the role of the organization to whom the easement was sold or donated.

Remainder interest

Landowners wishing to reduce the size of their estate may consider a remainder interest arrangement in their wills.  With a remainder interest, the owner retains the right to live on the property, which doesn’t get transferred to the charitable or government agency until the owner’s death. An owner wishing to preserve the land for open space should specifically state this restriction in his/her will.

Farmland preservation

A statewide program administered on the county level is New Jersey ’s farmland preservation program.  For parcels of farmland (including forest, cropland and livestock operations) of at least 10 acres, owners can sell development rights and continue to live on and/or farm the property.  Information about farmland preservation is available from the New Jersey Department of Agriculture, the New Jersey State Agriculture Development Committee or the Morris County Agriculture Development Board. Again, Mendham Township Administrator Steve Mountain can put you in touch with these agencies.