OFFICE|100BrownFarmRoadNE|Olympia,WA98516-2302|360.489.3400|www.nisquallylandtrust.orgMAIL|1420MarvinRoadNE|SuiteCPMB243|Lacey,WA98516-3878|staff@nisquallylandtrust.org

Dedicated to acquiring and managing

critical lands to permanently benefit the water,

wildlife, and people

of the Nisqually River Watershed. Nisqually Land Trust

MEMO

To: AshleyVonEssen,WRIA11LeadEntityCoordinator; NisquallySalmonHabitatWorkingGroup; AmberMoore,PugetSoundPartnership; ElizabethButler,RecreationandConservationOffice-SRFBGrantsManager,and SalmonRecoveryFundingBoardTechnicalCommittee

From:JoeKane,NisquallyLandTrust

Date:8/8/2016

Re:AmendmentRequestsforWhitewaterReachProtectionProject#15-1238

Requests:

• ScopeChange:Expandtheprojectscopetoprotectanadditional2.65acresand760shorelinefeettototal43.2acresand4,280shorelinefeetbyincludingacquisitionoftheentireHartproperty,andafforddemolitionofstructuresincludedintheHartacquisition.TheprojectwillalsotargetprotectionoftheBridges,Wood/Park,andSchmauderpropertiesasoriginallyproposedintheSRFBgrantapplication.

• CostIncrease:Increasetheprojectagreementamountby$255,963ofSRFBfundingand$82,800ofsponsormatchtototal$735,963inordertoacquiretheentireHartproperty;coverdemolitioncostsforstructuresontheHartproperty;andmeethigher-than-expectedappraisedpropertyvaluesontheBridges,Wood,andSchmauderproperties.

OriginalBudget RequestedBudgetIncreaseSRFBFunds: $300,000(76%) $555,963(76%)SponsorMatch: $97,200(24%) $180,000(24%)Total: $397,200 $735,963

• TimeExtension:Extendprojectenddateto12/31/2019toallowtimeforallacquisitionanddemolitiontaskstobecompleted.

OriginalProjectDescription:

NisquallyLandTrustproposestoacquireuptofourparcelsalongtheThurstonCountysideoftheNisquallyRivermainstemintheWhitewaterReach.Thesepropertiesareadjacenttolands

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ownedandmanagedbytheLandTrustandtheCityofYelm.Thegoalofthisprojectistoprotectnaturallyfunctioninghabitat-formingprocesses;existinghigh-prioritysalmonandtroutrearinghabitats;andanimportanttransportcorridorthatisusedbyallsalmonidspeciesintheNisquallyRiver.

TheLandTrustwillfirstseektoacquirethetopthreepriorityparcelsthattotalnearly35acres,includingsevenacresofriparianhabitat,eightacresofforestedwetlands,and2,480linearfeetofrivershoreline.Ifthereissufficientfunding,anadditionalsevenacreparcel,including3.5acresofriparianhabitatand1,320linearfeetofrivershoreline,willbeprotected.Theseparcelsarefourofthetenunprotectedparcelsthatareequaltoorgreaterthanfiveacresalongthisreachoftheriverthattotalover40acresand3,800linearfeetofrivershoreline.

Justification:

ScopeChange:TheLandTrustisworkingcloselywiththelandownersofallofthepropertiesincludedinthisproject.Inthecourseofthisproject,theHartpropertywaslistedforsaleinanactivemarketandtheLandTrustengagedinnegotiationstopurchaseit.Whileouroriginalproposalwastoacquire7acresofthispropertyandleavetheremaining2.65acresandthestructureswiththelandowner,thelandownerwasinashort-salesituationandunabletoacceptanofferforaportionoftheproperty.Also,acquiringtheadditional2.65acresandthestructuresgreatlyincreaseslong-termprotectionforthisentireproperty,includingasubstantiallengthofrivershoreline,inparticularbyremovingthethreatofsignificantfurtherdevelopmentofthehomesite.Acquiringtheentireparcelprotects2,080linearfeetofshoreline,whichis40%moreshorelinethanoriginallyproposed.Theproposedscopechangeincludesdemolitionofthestructuresontheproperty,andtheLandTrustwillmanagethepropertytomaintainandincreaseriparianforesthabitat.TheLandTrustclosedonthisacquisitiononJuly8,2016.

Property ProposedAcres

ActualAcres

ProposedShoreline

ActualShoreline

EstimatedValue

AppraisedValue

DemoCosts

Bridges 15 15 580ft. 580ft. $85,000 $130,000 $0

Hart 7 9.65 1320ft. 2080ft. $52,000 $250,000 $30,000

Schmauder 4.9 4.9 940ft. 940ft. $51,250 $110,000 $0

Wood/Park 15 13.65 680ft. 680ft. $90,000 $125,000 $0

BudgetIncrease:TheLandTrustcommissionedappraisalsforallfourpropertiesinthefallof2015,whichresultedinvaluessignificantlyhigherthanpreviousprojectcostsindicated.Thesehigherlandvaluesarereflectedinthe7/27/2016revisedbudget,whichincludesincreasedSRFBrequestsandmatchforlandacquisition.TheHartpropertyacquisitioncostincludesanadditional2.65acres,includingasmallhouseandoutbuildings.Inaddition,therevisedbudgetincludesarequestfordemolitionand

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cleanupcostsfortheHartproperty.Thebudgethasbeenadjustedtoreflectactualcostsforappraisals,appraisalreviews,andsurveys.

TheLandTrustproposesthattherequestforincreasedSRFBfundingfortheprojectbemetwithpotentialunusedfundsfromotherLandTrustprojectsfundedinthe2015grantcycle.TheLandTrustwillmaintainthematchratiointhecurrentgrantagreement,andifnecessarytosecurethetargetproperties,wearewillingtouseLandTrustreservefundsinadvanceofSRFBfundsbeingavailable.Weanticipateahighlikelihoodofunusedfundsremaininginatleasttwo2015projectswhentheyarecompleted:• 15-1232,MashelEatonvillePhaseIIIConservationEasement:$129,370inPSARfunding.Afterinitialnegotiationsthelandownersuspendeddiscussionofgrantingtheproposedeasement,inpartduetoadisputeovertheexistinglandboundary.TheLandTrustwillmakeonemoreattemptatcontinuingthenegotiationsbutwillendtheprojectifitdoesnotreceivewhatitconsidersagood-faithcommitmenttoachieveanagreement;suchacommitmentseemsunlikely.

• 15-1233,MashelShorelineProtectionPhaseIV,nowincorporatedinto14-1480,MashelPhaseIV&BusyWildShorelineProtection.Grant15-1233included$724,165inPSARfundingtowardpurchaseof372acresintheMiddleReachoftheMashelRiver.Aftertheprojectwasproposedthepropertywassoldtoanotherbuyeraspartofamuchlargercommercial-timbertransaction.Thenewownerhasindicatedwillingnesstocompleteaconservationtransactionbutatasmallerscalethanoriginallyproposed:ThefirstownerhadrequiredtheLandTrusttoacquireaportionofadjoiningcommercialtimberlandsalongwiththecoreconservationpropertybeingtargeted,butthenewownerpreferstosellonlytheconservationportion,whichshouldresultinaloweracquisitioncost.

TimeExtension:TheLandTrustwouldliketoextendtheprojectenddatetoallowforcompletionofallacquisitionactivitiesanddemolitionandsitecleanuptasks.Acquisitionactivitieshavebeenslowedforavarietyofreasons,includingtitleissues,thedeathsoftwoownersandownershiptransferoftheirpropertytoanestate,andtheneedfortheLandTrusttosecureadditionalfundingtocompleteacquisitionofallfourproperties.

Property EstimateClosingDate EstimatedDemolitionDate

Bridges 10/1/2016 NA

Hart 7/8/2016 Endof2018

Schmauder 6/1/2017 NA

Wood/Park 4/1/2017 NA