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Transfer of Development Rights <br />The conveyance of development rights by deed, easement, or other legal instrument <br />authorized by local law to another parcel of land. <br />Purchase of Options <br />A contract conveying the right to buy or sell designated property within a stipulated <br />period and at a specified price. <br />Certificates of Participation <br />Lease - purchase arrangements that allow a government to pay for a property over time. <br />Purchase - Leaseback Agreements <br />An arrangement where the purchaser agrees to lease the agricultural land back to the <br />seller or another party for a specific time to continue farming. Income generated from <br />lease arrangements can be used to pay down debt, offset operations and maintenance <br />costs, or generate money for future land acquisitions. <br />Short -term Debt Instruments <br />Promissory notes and bond and tax anticipation warrants. <br />Tax Incentives <br />These incentives take the form of rebates, lowered property tax rate, credits or <br />deductions for leaving privately owned open space or natural resource areas <br />undisturbed. <br />• Open -space deferral — a reduction in property taxes on certain lands maintained <br />in an undeveloped or natural state. <br />• Land donations or gifts — tax incentives taking the form of rebates, lowered rates, <br />credits, or deductions. <br />• Conservation plan deferral — tax credits awarded upon the submission and <br />approval of a long -term conservation plan. <br />• Bargain sale — you sell your property sold to a government agency or non - profit <br />organization below fair market value (FMV). The difference between the sale <br />price and FMV is considered a charitable donation and is therefore tax <br />deductible. <br />Open Space Acquisition Funding and Protection Strategies — Draft October 2001 13 <br />