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To preserve in perpetuity areas in the county that have environmental, agricultural, aesthetic, cultural, scientific, historic, scenic or low-intensity recreational value and to protect existing and future sources of potable water.
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The Land Bank owns about 5,000 acres or 4.5% of county lands, and 30 of its 39 preserves are open to the public. In addition, the Land Bank has acquired 48 Conservation Easements (CEs) which enhance conservation values on private property. Unlike when new preserves open to the public, CEs are often celebrated quietly so you may not hear about them.
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The 1% Conservation Area real estate excise tax (REET) is paid by the purchasers of property, per the enabling legislation RCW 82.46.070. Over the life of the program, 60% of the Conservation REET has been paid by buyers outside San Juan County, and in 2022-23, two-thirds of the Conservation REET was paid by buyers purchasing homes costing more than $1M.
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If voters reauthorize the Conservation Area REET, it will extend for another 12 years, from 2026 through 2038. Our Conservation Land Bank will continue preserving additional land as well as proactively stewarding our preserves, including planting trees along streams and wetlands for water quality protection, thinning forests to reduce risks of catastrophic wildfires, creating more wildlife habitat and investing in soil amendments for farmland to sequester carbon and improve growing conditions.
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If the Conservation REET isn’t renewed and the REET funding sunsets in 2026, the program will be drastically scaled back, and our quality of life will be impacted. The Land Bank would no longer qualify for matching grants and there would be no further acquisitions. Land Bank Commissioners would need to consider which properties to recommend for resale. Staffing would be limited to a few people, and stewardship activities would be stripped down to minimal maintenance instead of proactive management for wildlife habitat and climate resilience.
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First, the similarities: Both organizations are focused on preservation of special places in the islands, and both were started decades ago (the Land Bank in 1990, the Preservation Trust in 1979) by concerned islanders with foresight to set aside natural areas to balance growth and development. Both organizations are eligible for state grants and are powered by local citizen volunteers and staff who care deeply about our community.
The differences:
The San Juan County Conservation Land Bank is a public program supported by the 1% REET paid by property buyers at closing, plus grants and partner funds. Like state parks, the lands are public lands belonging to all of us, and most preserves are open to the public.The San Juan Preservation Trust is a private non-profit organization. It obtains most of its funding from private donations, in addition to some grants and partner funds. The Preservation Trust owns preserves that are open to the public on each of the main islands, while many SJPT-protected lands are either closed to the public or open only with special permission.
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SJC Code Chapter 2.120 created the “citizens conservation land bank”, a fitting name for a program created by citizens. Over time the program was referred to as the
“Land Bank”, and in 2021 the word “Conservation” was brought back into the logo. -
No. The cost to buy and maintain property during this inflationary period rose for the Land Bank just as it did for everyone else. Despite the higher costs, the additional REET revenue from 2020-2022 enabled the Land Bank to continue preserving land as well as investing in significant stewardship projects. The REET income is now back down to pre-pandemic levels.
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The Land Bank’s costs to administer the Conservation Area Fund have averaged less than 6% of revenues over the life of the program, significantly lower than the 10% allowed by San Juan County Code 2.120.090.
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Though the larger preserves are frequented by tourists, the smaller preserves are often virtually empty. Land Bank signage is discreet, parking areas are intentionally kept small, and camping is not allowed. Like other spectacular places to live, the natural beauty that draws residents here also entices visitors, but residents benefit year-round with enhanced quality of life.
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No. Parks departments prioritize recreation such as camping, and include facilities such as concessions, cabins, restrooms/showers, which doesn’t align with the Land Bank’s mandate. State Parks does not necessarily want, nor is it able to acquire more land here. It relies on the legislature for statewide budget appropriations.
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No. According to San Juan County Code Chapter 2.104, Land Bank property is under the jurisdiction of the Land Bank Commission and “may be disposed of by sale or through a trade only upon a recommendation of the land bank commission and ratification by the County council.” The Land Bank Commission consists of seven (7) appointed volunteer Land Bank Commissioners representing the three county districts.
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No. RCW 82.46.070 dictates that monies raised from the Conservation Area REET are used exclusively for the acquisition and maintenance of conservation areas. So if the Conservation Area REET is used to purchase a conservation property that’s later resold, the proceeds from that sale shall be used exclusively for the acquisition and maintenance of conservation areas.
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The current REET allocation is dictated by state law: Counties may adopt up to a 1% a Conservation REET and may adopt a fixed 0.5% Housing REET, but only those counties with a full 1% Conservation REET imposed by January 1, 2003, are eligible for the Housing REET.
Allowing the Conservation REET to sunset (and with it, the Housing REET) with the hope that the state legislature will raise the limit for a Housing REET and remove the requirement for a 1% Conservation REET imposed by January 1, 2003, is risky. More than 100 housing bills were proposed in the 2024 WA State legislative session and only a few made it to the governor’s desk.
Despite the Housing REET being half the Conservation REET, the Housing REET is raising more funds than the Conservation REET. This is because that there are a lot more matching opportunities for affordable housing than there are for conservation: The conservation REET is generating about 1:1 in matching funds, whereas the Housing REET is generating more than 3:1 in outside funding!
Our local housing groups are counting on the continuation of the Housing REET through 2030and are supporting the continuation of the Conservation REET. Read the letter
General FAQs
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Director Bormann has shared a map at public meetings which identifies target areas for future conservation based on a myriad of factors including wildlife habitat, connectivity with existing preserves and expected resilience to climate change. Acquiring these key properties depends solely on willing sellers, and through planning and prioritization, the Land Bank is poised to take advantage of these opportunities as they arise.
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In a recent presentation to the commissioners, Director Bormann hypothesized that at most the Land Bank may be able to add 2,000 acres to its current holdings of 5,000 acres. The actual achievable amount will depend on many factors.
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The Land Bank considers a Conservation Easement (CE) at the outset of evaluating a property, depending on the willingness of the property owner.
When the Land Bank was first created, it was thought that Conservation Easements would be more cost-effective than buying land. The Land Bank soon learned that Conservation Easements aren’t always a bargain: A CE can cost up to 75% of an outright purchase and they rarely attract grants or partners. It can end up costing the Land Bank more to purchase a CE than purchasing the property outright.
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The Land Bank secures appraisals except in cases where the Land Bank’s investment costs are clearly below market value due to either the generosity of the seller or large contributions from grants and/or partners. The county code also provides an alternative formula for the Land Bank to use in determining value without an appraisal.
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No, in fact the Land Bank has been extremely savvy in its purchases: For every dollar the Land Bank has spent to buy property, it’s been able to leverage more than a dollar in partner funds and grants, effectively cutting acquisition costs by more than half.
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No. In any real estate transaction, the buyer relies on information provided by their broker, who in turn relies on information provided by the seller’s broker who’s the only person with firsthand knowledge of competing buyers or offers. In the case of the Zylstra Lake purchase, the November 2015 The Journal of the San Juan Islands reported “Staff from Windermere Real Estate of San Juan Island confirmed that there are developers interested in buying and developing the property if it is not sold to the Land Bank, which is zoned for around 50 homes”.
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The Land Bank is successfully fulfilling a strategy of acquiring properties adjacent to already-conserved land to maximize wildlife habitat and increase habitat diversity: 10 of 11 properties purchased since 2019 expand existing Land Bank preserves. A side benefit of this strategy is that management costs are often reduced.
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Seven (7) appointed volunteer Land Bank Commissioners representing the three county districts recommend specific investments in acquisition and stewardship. The County Council accepts or rejects the budget, but it doesn’t have the ability to modify it. The program was set up this way so that the citizens would be the ones who drive conservation priorities.
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After reviewing maps, photos and hearing staff input in public meetings, Land Bank Commissioners utilize a scoring system to evaluate properties and determine which ones rise to the top. Commissioners then make site visits to the top contenders before reconvening to discuss their opinions, also during a public meeting.
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Presentations regarding potential properties to buy are made during monthly public meetings of the Land Bank Commission which are recorded, in-person and on Zoom. The ensuing discussion, evaluation and scoring of properties takes place in monthly public meetings. As negotiations are often long and drawn out, the project is discussed multiple times in public meetings prior to entering a contract.
The only time closed-door discussions happen regarding potential purchases is when confidentiality is needed to discuss price and terms of an offer or counteroffer where public discussion would enhance the likelihood of increased price. RCW 42.30.110 allows for executive session in these circumstances.
You can review the Land Bank’s meetings, agendas, minutes, background materials and recorded meetings here: https://sjclandbank.org/about/agendas-minutes/ The meetings typically provide two public comment periods.
In short, you can be fully engaged in the Land Bank’s decision-making process from anywhere with an internet connection.
Acquisitions FAQs
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The Land Bank IS actively stewarding our public lands! Read the Land Bank’s monthly stewardship reports and you’ll see how much the small stewardship staff is accomplishing with the help of volunteers and partners, from planting new trees to cleaning up beaches to improving trails. As the program evolves, the Land Bank is spending a growing portion of its revenue on stewardship. In 2013 the percentage spent on stewardship was about 30%, and by 2023 that had risen to nearly 50%,
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No. The annual revenue from Conservation Futures (CF) is around $360K, whereas the Land Bank’s stewardship costs were $2.2M in 2023. Further, a minimum of 75% of the CF revenue is required to be spent on acquisition of conservation areas.
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No. In 2022, the Land Bank borrowed from its own stewardship fund to purchase the Glenwood Inn property, now the North Shore Preserve. Interfund loans are permitted by San Juan County Code 3.44.010 Interfund loans.
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It hasn’t been feasible to create a fund large enough to steward our preserves in perpetuity without continued REET funding. Interest rates are lower than they were in 1990 when this goal was set, and the government funds that the county is permitted to invest in have a low rate of return. The continuation of the one-time REET paid by buyers to help fund stewardship has been preferable to an annual property tax.
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The Land Bank projects that by the end of 2026 the stewardship endowment fund balance will be about $7.5M. In addition, a few partner stewardship endowment funds exist for designated preserves. While significant, these funds are insufficient to cover stewardship costs in perpetuity.
Stewardship FAQs
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RCW. 82.46.075 allows counties with a full 1% Conservation Area real estate excise tax (REET) to collect a 0.5% REET for affordable housing. San Juan County voters adopted the Affordable Housing REET in 2018, and it’s since raised $13M for the Home Fund, preserving and providing for 132 homes across 10 affordable housing projects.
Affordable housing groups have used the Home Fund to leverage grants and donations, raising an additional $34M — that’s $47M total going to affordable housing!
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If the 1% Conservation Area REET fails to be reauthorized by voters and it sunsets in 2026, the 0.5% Affordable Housing REET will also end in 2026.
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By tying the Affordable Housing REET to the Conservation Area REET, the WA State legislature recognized that conservation balances development. As development increases and home prices continue to rise, the two REETs work to conserve the best land as well as support the continued supply of affordable housing.
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The Land Bank can partner in projects that achieve both conservation and affordable housing goals and has already helped facilitate several affordable housing projects.
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The law dictates that monies raised from the Conservation Area REET are used exclusively for the acquisition and maintenance of conservation areas. Compatible residential uses could be caretaker or farmworker housing, depending on restrictions imposed by grants and partners.
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With few exceptions, the Land Bank conserves land in rural areas where high-density housing isn’t allowed, and the cost of new infrastructure is high.
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Buyers pay the 1% Conservation Area REET at closing so there’s an upfront investment, i.e. $5,000 for a $500,000 home. But over the long term, conserving land rather than developing it lowers property taxes for all of us because, unlike residential uses, forests, farmlands, and open space properties contribute more tax revenue than they require in public services. In turn, the Open Space Taxation Act provides tax breaks for these beneficial land uses.
A Cost of Community Services Study (COCS) completed in in San Juan County in the early 2000’s concluded what hundreds of similar studies across the nation have shown: “While building more homes increases the County’s total tax collections, the added revenues don’t cover the cost of additional required services… the effect is to increase taxes, or reduce services, for existing taxpayers.”
75% of Land Bank properties purchased were already in low tax programs such as Designated Forest land. For example, prior owners of 1575-acre Turtleback Mountain paid less than $1,000 per year in property taxes.
There are currently 7,650 undeveloped parcels in the county, with the potential of 2,000 more by subdivision. The Land Bank purchases at most a few properties a year. Some of those are larger properties that could be subdivided for development, however as explained above, new residential development costs all of us in the community.
If the 1% Conservation Area REET fails to be reauthorized by voters, and it sunsets in 2026, the 0.5% Affordable Housing REET that funds the Home Fund will also end in 2026, which will have a negative impact on availability of affordable housing.
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A healthy community provides both places for people to live and places to experience nature. Natural areas, wildlife habitat, clean water and affordable housing are all important to our quality of life in the islands. Beautiful vistas, beaches and quiet walks in the woods should be available to people of all means and are especially important to those living in apartments or on small lots.
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No. RCW 82.46.070 dictates that monies raised from the Conservation Area REET are used exclusively for the acquisition and maintenance of conservation areas. So if the Conservation Area REET is used to purchase a conservation property that’s later resold, the proceeds from that sale shall be used exclusively for the acquisition and maintenance of conservation areas.
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The current REET allocation is dictated by state law: Counties may adopt up to a 1% a Conservation REET and may adopt a fixed 0.5% Housing REET, but only those counties with a full 1% Conservation REET imposed by January 1, 2003, are eligible for the Housing REET.
Allowing the Conservation REET to sunset (and with it, the Housing REET) with the hope that the state legislature will raise the limit for a Housing REET and remove the requirement for a 1% Conservation REET imposed by January 1, 2003, is risky. More than 100 housing bills were proposed in the 2024 WA State legislative session and only a few made it to the governor’s desk.
Despite the Housing REET being half the Conservation REET, the Housing REET is raising more funds than the Conservation REET. This is because that there are a lot more matching opportunities for affordable housing than there are for conservation: The conservation REET is generating about 1:1 in matching funds, whereas the Housing REET is generating more than 3:1 in outside funding!
Our local housing groups are counting on the continuation of the Housing REET through 2030and are supporting the continuation of the Conservation REET. Read the letter