What Does This Mean, What is the Potential Impact on Our Farmers and Our County Budget?
A Purchase of Development Right (PDR) program permits a landowner to voluntarily sell his development rights to a governmental agency or a land trust. The agency or trust pays the farmer the difference between the agricultural value of the land and the land’s potential development value. For example, if a farmer’s land is worth $2000 an acre for agricultural use and $5000 for development, the farmer can sell his development rights for $3000 an acre, assuming this is the agreed-to negotiated price. When the sale occurs, a legal document called a conservation easement is created. This easement restricts the use of the land to farming, open space, or wildlife habitat. The farmer retains private ownership of the land and can sell it, hold it or pass it on to heirs. There are several benefits and drawbacks to PDR programs:
Benefits—It is a volunteer program. No one is forced to sell his development rights. It permanently protects the land from development (Although some easements have clauses that allow the landowner to repurchase the development rights under specific circumstances). It converts land equity to cash. It helps keep farmland affordable for the next generation. Finally, protected farmland helps local governments balance their budgets by contributing more in tax revenue than it demands in community services.
Drawbacks— Since the program is voluntary, it is sometimes difficult to protect large contiguous blocks of land because a landowner surrounded by other protected farms may not want to sell his development rights. The program is expensive, and it cannot meet farmer demand; for every farmer who has participated in a PDR program, there are six more waiting to sell their development rights. Finally, property owners/farmers must pay taxes on the sale of development rights
A Transfer of Development Right (TDR) program is a market-based farmland protection program. Governmental agencies establish sending areas (land to be protected) and receiving areas (land to be developed). Landowners in areas known as “sending areas” sell their development rights to developers who use them in the receiving areas (incorporated towns and municipalities in Maryland) to build at higher densities than allowed under existing zoning. There are several benefits and drawbacks to TDR programs:
Benefits—TDR gives equity compensation to landowners whose land is zoned for agriculture. It promotes private financing of land protection rather than public financing. Finally, it ties farmland conservation to growth management, downtown revitalization and infrastructure efficiency by directing growth to appropriate areas (This promotes the idea of building what should be built and saving what should be saved).
Drawbacks—TDR programs are very complicated to develop and administer. It requires a great deal of "buy-in" from farmers; homeowners accepting increased density in their area; and, developers, who pay for TDRs. Finally, it relies on an active real estate market to maintain the balance between land protection and compensation. Without land to develop, a TDR program does not work.
As food for thought, a PDR program can complement and/or enhance a TDR program because it helps to establish a floor price for TDRs. If farmers do not get enough money from developers via the TDR process, they sell their development rights to the County instead.
Ways to Approach 11,000+ acres in our Countryside Preservation Areas:
Among options for Talbot is what I call an Installment Purchase Agreement (IPA). An IPA is an innovative payment plan offered by a handful of Maryland jurisdictions with active PDR or easement programs. By using IPAs, local governments can leverage preservation funding while lands are still available and offer landowners financial advantages that developers cannot duplicate. At settlement, the landowner grants the jurisdiction a permanent agricultural conservation easement in exchange for an IPA. IPAs spread out payments so that landowners receive semi-annual, tax- exempt interest over a term of years (typically 20 to 30). The principal is due at the end of the contract term. Jurisdictions can purchase zero-coupon U. S. Treasury bonds to cover the final balloon payments. “Zero Coupon Bonds” do not generate regular interest income. Instead, they yield a lump sum when the bond matures. Because zero coupon bonds cost a fraction of their face value, the public entity leverages available funds. Landowners also can sell or securitize IPA contracts at any point to realize the outstanding principal.
The advantages of an IPA program to the landowner are:
• Tax-exempt interest semiannually for up to 30 years on the full value of their sale. They pay no federal or state income taxes on such interest;
• Deferral of taxes on capital gains—landowners entering into IPAs may defer recognition of capital gains until they actually receive the principal amounts of such purchases;
• Better estate planning—by deferring recognition of capital gains indefinitely, selling landowners create the opportunity for IPAs to pass to their estates, where federal estate taxes paid may reduce or eliminate any capital gains taxes that would ultimately be due by the heirs;
• Charitable deduction—landowners can realize deductions that are equal to the difference between the appraised value of the lands or easements sold and the prices the county.
IPAs are an excellent way for Talbot County to increase its return on investment. By pushing implementation costs into the future, and at the same time realizing costs savings by acting immediately, the return on investment is increased, thereby improving the financial position of the County. I support the Committee studying possible use of PDR’s in Talbot and hope they will consider the IPA approach I have discussed above. We can and should preserve what lands we have IF we truly believe in the words most folks around Talbot say to me all the time: “we must retain our rural character and quality of life”. I believe our majority is committed to this solgan – I know I am and I know who we can do it. IPA’s is one tool we should consider using and soon.
Owen Wormser
Saturday, February 23, 2008
Our County Council has Asked Planning and Zoning Staff to form a Committee to Consider Purchase Development Rights (PDR’s)
Wednesday, February 20, 2008
Easton Memorial Hospital: Fight or Flight?
Do We Really Want our Hospital to Remain in or Adjacent to Easton? Are We Willing to Fight the Good Fight or Will Apathy Once Again Reign Supreme in Talbot County?
How is it possible that local residents who are members of our community and members of the Board of Directors of Easton Memorial Hospital could cave in to pressures from the likes of Shore Health executive management and University of Maryland Medical System (UMMS) and "agree" to “STUDY” the future disposition of our hospital in Easton? This is probably the worst contrived and conceived notion I have been in direct contact with in more than 50 years of professional and business experiences. This effort, were it to continue down its intended and stated path, must be guided by planning principles that make sense for the citizens of Talbot County – first and foremost, for the Mid Shore as a whole, and for the business prospects of Shore Health System (SHS) and UMMS as well.
What results have emerged as a result of going directly to University of Maryland Medical System (UMMS)? It would be good to hear them describe their business plans and health care delivery vision for the future.
If they are (or could be persuaded to) be interested in including a research arm, or an advanced Veterans Affairs full-service clinic, or a wellness center, or a medical or allied health school, cardiac, oncology, “other similar centers, or medical entities that would not only create a regional medical center but a true center of excellence. Why shouldn't we talk with Senator Mikulski (D-MD), who is an appropriator, and Senator Cardin (D-MD), who is from Baltimore and would more than likely be interested in supporting funds to expand UMMS’ capabilities, as well as location. A big plus is that Senator Cardin is a health care expert. It is nearly too late - but not quite - to put in an "ask" for an appropriation this year. I think the House deadline is March 18th, but I can't recall the Senate's, their’s is not too much later. Congressman Jack Murtha has populated his hometown, Johnstown, PA, with more health care facilities, schools, and other job-creating entities that you can count. This approach could engage Governor O'Malley, who could also take credit for enhancing UMMS, Talbot County, and surrounding counties, if Cardin likes the idea. This approach would also create jobs, possibly new higher education, or some new destination center (diagnostic, cardiac, oncology, gerontology, or whatever UMMS wants), like the Cleveland clinic, and ensure local and quality health care delivery for the Eastern Shore as well as Talbot County.
The position of Shore Health System on issues regarding a possible relocation of Easton Memorial Hospital is suspect at best in my mind. Due to non-attribution the following quoted material is extremely important for all to know in my view. [quote] “I think you will find that the reaction of most in the audience reflects what you (re: speaking to an Easton Memorial Hospital Administrator) will hear from others in the community as time goes forward.
In any event, it seemed reassuring to hear stated that (1) any decision to relocate the hospital will be made by the local SHS board, and not by the University of Maryland Medical System or its directors (a face value statement I do NOT accept); and, (2) the SHS board intends that any relocation of the hospital will occur in Talbot County, at a site yet to be determined, and that a Queen Anne’s County site is "off the table."
I suspect all of us would like to rely on those assurances, but regrettably we continue to get conflicting signals.
In the Star Democrat it was reported recently that the chairman of the board of Chester River Health System (Mr MacLeod), who right now is in face-to-face negotiations with UMMS, has been provided with a vision for the future of our hospital that is different from what described by SHS management recently. Specifically, Mr. MacLeod states that, based on what he has been told by UMMS, "they have a vision for an Upper Shore health care system with a new hospital somewhere in northern Talbot County or Queen Anne’s."
So apparently UMMS has advised Mr. MacLeod that, contrary to what we heard from SHS management not so very long ago, a Queen Anne’s County site is not "off the table," and to the extent a site in Talbot County is selected it will be "somewhere in northern Talbot County." It seems that UMMS is not interested in other sites in or adjacent to Easton, even though we were advised by SHS management other such sites are under consideration.
So you must forgive me if I, and likely others, remain dubious about what we have been hearing and NOT hearing about the future of Easton Memorial Hospital. I think most of us find it rather unlikely that the SHS board in fact will have autonomy in deciding where to relocate the hospital, given the political and financial muscle of UMMS. Regrettably, since the merger agreement will not be made publicly available, there is no way to reassure Talbot citizens that the ultimate decision in fact will be a local one.
Mr. MacLeod’s comments about the future of CRHS, as part of the UMMS system, sound eerily familiar. He assured the Chestertown mayor that "without question, this hospital will be here" if the merger goes through. Mr. Dillon of course made precisely the same statement in his last interview, stating that there is "no sense on the board of replacing or abandoning Memorial Hospital."
But we learned from SHS management several weeks ago that all of this depends upon what is the meaning of "hospital". We were given no assurance that what most of this community would consider the "hospital" to be – that is, the 125 acute care medical/surgical beds – in fact – will remain in or around Easton as part of a realignment. I suspect that if Mr. MacLeod were pressed, he too would admit that the "hospital" that supposedly will remain in Chestertown would not necessarily be the equivalent of what Chestertown residents consider their "hospital" to be.
So while SHS willingness to talk about the subject surely is appreciated, it appears that significantly conflicting versions of future plans and intentions continue to circulate. One way to address this would be to lift the veil of secrecy that covers the "search committee," at least to the extent of divulging the membership of that group. Failing that, I think much more candor is needed if we are to be persuaded that we can rely upon the statements of intention that we heard last night.” [end quote from attendee at the Avalon]
So, if we get motivated and engaged, as we must, assuming we want our hospital to stay in Easton’s town limits, what should be said? Here are my suggestions as talking points, you fill in the blanks where needed:
A. Devastating (and unnecessary) economic impact: over 780 jobs and more than $170 Million dollars into our community annually.
o Largest employer in Easton and Talbot County, vital to local economy.
o Moving existing service centers such as our Cancer Center, Diagnostic Center, among several others is a total waste of time, scarce resources, and would be devastating to our elderly and disabled users of these excellent centers.
o Current basis for larger existing medical and health business community.
o Critical magnet for downtown business through hospital personnel and visitors.
o Facing the challenges of globalization on local economy, Talbot County, and Easton in particular, should maintain business sectors such as healthcare.
o Town has already lost Black & Decker and cannot afford to lose Hospital.
B. Health and safety.
o Large and growing senior population requiring frequent and urgent medical care - the “oldest” average population among MD counties.
o We built and need a centrally located medical facility due to our widely dispersed county population centers, e.g. Tilghman Island, Windy Hills, Wye Mills, Town of Queen Anne, et al.
o How many Talbot citizens would die in an ambulance contending with beach traffic in its attempt to get a patient to the new location instead of “their hospital”? Moving Easton Memorial Hospital out of Eaton to a site along the north border of Talbot County will ensure emergency response times for Talbot citizens will be much worse than at present.
o Why force local citizens to commute for medical care rather than use present or adjacent convenient facilities?
o Opposed by doctors who reportedly have largely been co-opted.
C. History & importance to community.
o Easton Memorial Hospital was built over 100 years ago in a former location in downtown Easton by local patrons and sustained by continuing generous support from all segments of community, to meet its needs. Does management not recognize this history?
o Current hospital management has denied the County, towns, and citizens information and input into this major public concern, despite the community’s longstanding support.
o What happens to the $50-70M in foundation funds raised by Talbot citizens in good faith to sustain support and sustain our hospital?
o Why were millions just spent on new hospital facilities while contemplating a new location?
o The Town of Easton supported the requested hospital road closing, over constituent objections. Why did hospital management not inform and consult with Mayor and Council then about plans to relocate?
D. Business and growth management sense.
o Easton has the largest population concentration in area—if there weren’t a hospital already, it would be logical place to put one!
o Should expand as needed on a proximate site in Easton town limits – already owned property along Oxford Road, Black & Decker property, Gannon farm/Lowes property, or east side of hwy 50 in growth area. Town and County Councils could provide incentives such as extended sewer and water service.
o Existing hospital can be modernized and continue to be used rather than substantially deserted.
o Should be a convenience to move between existing and any new facilities, for patients and doctors.
o Need to be near large, existing local network of medical and health facilities—and the doctors who live here, not in Queen Anne’s.
o Major institutional development should always be on public water and sewer.
o Location on farm fields of Queen Anne’s or on Talbot County’s with Queen Anne’s border would be totally counter to “smart growth”, with obvious drawbacks re: roads, traffic, and other public infrastructure and services.
o Queen Anne’s requirements will be met by new Anne Arundel medical facility already underway on Kent Island and Johns Hopkins-affiliated Chester River Hospital.
o Obviously, if more is needed in Queen Anne, it should be a satellite facility with suitable emergency arrangements, including helipad for transfer to Easton Memorial, Anne Arundel or Chester River—not a whole new, costly and duplicative hospital.
o This would be an absurd waste of public and private money—at a time when the State is facing acknowledged, oncoming fiscal challenges.
o Cannot expect continued financial support from Talbot citizens who are disregarded by current hospital management.
E. The politics should all fall strongly in opposition.
o County Council is strongly and unanimously opposed to any move out of the Easton immediate area and will do all in its power to stop this course.
o Our town governments and local organizations can be expected to oppose Easton Memorial Hospital leaving Easton as well.
o Citizens can be expected to mount a grass-roots “save-our-hospital” effort. Note the success of the community in resisting closure of Dorchester General.
o The new Democratic leadership in Annapolis is likely will not be sympathetic to a precipitous and wasteful proposal to replicate hospital facilities.
o Easton Memorial has a “Certificate of Need” precisely because of the well recognized “need” for Talbot County to have a readily accessible hospital. The Maryland State certification process should not be disregarded.
How is it possible that local residents who are members of our community and members of the Board of Directors of Easton Memorial Hospital could cave in to pressures from the likes of Shore Health executive management and University of Maryland Medical System (UMMS) and "agree" to “STUDY” the future disposition of our hospital in Easton? This is probably the worst contrived and conceived notion I have been in direct contact with in more than 50 years of professional and business experiences. This effort, were it to continue down its intended and stated path, must be guided by planning principles that make sense for the citizens of Talbot County – first and foremost, for the Mid Shore as a whole, and for the business prospects of Shore Health System (SHS) and UMMS as well.
What results have emerged as a result of going directly to University of Maryland Medical System (UMMS)? It would be good to hear them describe their business plans and health care delivery vision for the future.
If they are (or could be persuaded to) be interested in including a research arm, or an advanced Veterans Affairs full-service clinic, or a wellness center, or a medical or allied health school, cardiac, oncology, “other similar centers, or medical entities that would not only create a regional medical center but a true center of excellence. Why shouldn't we talk with Senator Mikulski (D-MD), who is an appropriator, and Senator Cardin (D-MD), who is from Baltimore and would more than likely be interested in supporting funds to expand UMMS’ capabilities, as well as location. A big plus is that Senator Cardin is a health care expert. It is nearly too late - but not quite - to put in an "ask" for an appropriation this year. I think the House deadline is March 18th, but I can't recall the Senate's, their’s is not too much later. Congressman Jack Murtha has populated his hometown, Johnstown, PA, with more health care facilities, schools, and other job-creating entities that you can count. This approach could engage Governor O'Malley, who could also take credit for enhancing UMMS, Talbot County, and surrounding counties, if Cardin likes the idea. This approach would also create jobs, possibly new higher education, or some new destination center (diagnostic, cardiac, oncology, gerontology, or whatever UMMS wants), like the Cleveland clinic, and ensure local and quality health care delivery for the Eastern Shore as well as Talbot County.
The position of Shore Health System on issues regarding a possible relocation of Easton Memorial Hospital is suspect at best in my mind. Due to non-attribution the following quoted material is extremely important for all to know in my view. [quote] “I think you will find that the reaction of most in the audience reflects what you (re: speaking to an Easton Memorial Hospital Administrator) will hear from others in the community as time goes forward.
In any event, it seemed reassuring to hear stated that (1) any decision to relocate the hospital will be made by the local SHS board, and not by the University of Maryland Medical System or its directors (a face value statement I do NOT accept); and, (2) the SHS board intends that any relocation of the hospital will occur in Talbot County, at a site yet to be determined, and that a Queen Anne’s County site is "off the table."
I suspect all of us would like to rely on those assurances, but regrettably we continue to get conflicting signals.
In the Star Democrat it was reported recently that the chairman of the board of Chester River Health System (Mr MacLeod), who right now is in face-to-face negotiations with UMMS, has been provided with a vision for the future of our hospital that is different from what described by SHS management recently. Specifically, Mr. MacLeod states that, based on what he has been told by UMMS, "they have a vision for an Upper Shore health care system with a new hospital somewhere in northern Talbot County or Queen Anne’s."
So apparently UMMS has advised Mr. MacLeod that, contrary to what we heard from SHS management not so very long ago, a Queen Anne’s County site is not "off the table," and to the extent a site in Talbot County is selected it will be "somewhere in northern Talbot County." It seems that UMMS is not interested in other sites in or adjacent to Easton, even though we were advised by SHS management other such sites are under consideration.
So you must forgive me if I, and likely others, remain dubious about what we have been hearing and NOT hearing about the future of Easton Memorial Hospital. I think most of us find it rather unlikely that the SHS board in fact will have autonomy in deciding where to relocate the hospital, given the political and financial muscle of UMMS. Regrettably, since the merger agreement will not be made publicly available, there is no way to reassure Talbot citizens that the ultimate decision in fact will be a local one.
Mr. MacLeod’s comments about the future of CRHS, as part of the UMMS system, sound eerily familiar. He assured the Chestertown mayor that "without question, this hospital will be here" if the merger goes through. Mr. Dillon of course made precisely the same statement in his last interview, stating that there is "no sense on the board of replacing or abandoning Memorial Hospital."
But we learned from SHS management several weeks ago that all of this depends upon what is the meaning of "hospital". We were given no assurance that what most of this community would consider the "hospital" to be – that is, the 125 acute care medical/surgical beds – in fact – will remain in or around Easton as part of a realignment. I suspect that if Mr. MacLeod were pressed, he too would admit that the "hospital" that supposedly will remain in Chestertown would not necessarily be the equivalent of what Chestertown residents consider their "hospital" to be.
So while SHS willingness to talk about the subject surely is appreciated, it appears that significantly conflicting versions of future plans and intentions continue to circulate. One way to address this would be to lift the veil of secrecy that covers the "search committee," at least to the extent of divulging the membership of that group. Failing that, I think much more candor is needed if we are to be persuaded that we can rely upon the statements of intention that we heard last night.” [end quote from attendee at the Avalon]
So, if we get motivated and engaged, as we must, assuming we want our hospital to stay in Easton’s town limits, what should be said? Here are my suggestions as talking points, you fill in the blanks where needed:
A. Devastating (and unnecessary) economic impact: over 780 jobs and more than $170 Million dollars into our community annually.
o Largest employer in Easton and Talbot County, vital to local economy.
o Moving existing service centers such as our Cancer Center, Diagnostic Center, among several others is a total waste of time, scarce resources, and would be devastating to our elderly and disabled users of these excellent centers.
o Current basis for larger existing medical and health business community.
o Critical magnet for downtown business through hospital personnel and visitors.
o Facing the challenges of globalization on local economy, Talbot County, and Easton in particular, should maintain business sectors such as healthcare.
o Town has already lost Black & Decker and cannot afford to lose Hospital.
B. Health and safety.
o Large and growing senior population requiring frequent and urgent medical care - the “oldest” average population among MD counties.
o We built and need a centrally located medical facility due to our widely dispersed county population centers, e.g. Tilghman Island, Windy Hills, Wye Mills, Town of Queen Anne, et al.
o How many Talbot citizens would die in an ambulance contending with beach traffic in its attempt to get a patient to the new location instead of “their hospital”? Moving Easton Memorial Hospital out of Eaton to a site along the north border of Talbot County will ensure emergency response times for Talbot citizens will be much worse than at present.
o Why force local citizens to commute for medical care rather than use present or adjacent convenient facilities?
o Opposed by doctors who reportedly have largely been co-opted.
C. History & importance to community.
o Easton Memorial Hospital was built over 100 years ago in a former location in downtown Easton by local patrons and sustained by continuing generous support from all segments of community, to meet its needs. Does management not recognize this history?
o Current hospital management has denied the County, towns, and citizens information and input into this major public concern, despite the community’s longstanding support.
o What happens to the $50-70M in foundation funds raised by Talbot citizens in good faith to sustain support and sustain our hospital?
o Why were millions just spent on new hospital facilities while contemplating a new location?
o The Town of Easton supported the requested hospital road closing, over constituent objections. Why did hospital management not inform and consult with Mayor and Council then about plans to relocate?
D. Business and growth management sense.
o Easton has the largest population concentration in area—if there weren’t a hospital already, it would be logical place to put one!
o Should expand as needed on a proximate site in Easton town limits – already owned property along Oxford Road, Black & Decker property, Gannon farm/Lowes property, or east side of hwy 50 in growth area. Town and County Councils could provide incentives such as extended sewer and water service.
o Existing hospital can be modernized and continue to be used rather than substantially deserted.
o Should be a convenience to move between existing and any new facilities, for patients and doctors.
o Need to be near large, existing local network of medical and health facilities—and the doctors who live here, not in Queen Anne’s.
o Major institutional development should always be on public water and sewer.
o Location on farm fields of Queen Anne’s or on Talbot County’s with Queen Anne’s border would be totally counter to “smart growth”, with obvious drawbacks re: roads, traffic, and other public infrastructure and services.
o Queen Anne’s requirements will be met by new Anne Arundel medical facility already underway on Kent Island and Johns Hopkins-affiliated Chester River Hospital.
o Obviously, if more is needed in Queen Anne, it should be a satellite facility with suitable emergency arrangements, including helipad for transfer to Easton Memorial, Anne Arundel or Chester River—not a whole new, costly and duplicative hospital.
o This would be an absurd waste of public and private money—at a time when the State is facing acknowledged, oncoming fiscal challenges.
o Cannot expect continued financial support from Talbot citizens who are disregarded by current hospital management.
E. The politics should all fall strongly in opposition.
o County Council is strongly and unanimously opposed to any move out of the Easton immediate area and will do all in its power to stop this course.
o Our town governments and local organizations can be expected to oppose Easton Memorial Hospital leaving Easton as well.
o Citizens can be expected to mount a grass-roots “save-our-hospital” effort. Note the success of the community in resisting closure of Dorchester General.
o The new Democratic leadership in Annapolis is likely will not be sympathetic to a precipitous and wasteful proposal to replicate hospital facilities.
o Easton Memorial has a “Certificate of Need” precisely because of the well recognized “need” for Talbot County to have a readily accessible hospital. The Maryland State certification process should not be disregarded.
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