Denied

Based on the county's comprehensive plan, Holt County Supervisors denied a perpetual wetland reserve easement, for Melvin Knox's Bar K Bar , LLC, during a Dec. 16 public hearing, at the courthouse in O'Neill.

Supervisor Doug Frahm made the motion, which passed unanimously. Supervisor Dustin Breiner was absent.

The hearing, which lasted more than an hour, was a required step, following a Dec. 13 public hearing in front of the county's planning and zoning board.

That board voted 6-3 in favor of the easement.

Supervisor Doug Frahm referenced information from the Nebraska Department of Revenue, along with Nebraska State Statute 76-2,115, which states, "It is encouraged that property owners do not sign perpetual easements."

Frahm said an easement of this type "could theoretically destroy our tax base."

"This is the first time we've been dealing with this, so we don't know. In the future, it could have a drastic effect, especially when the agency producing the easement is paying more for the ground than its assessed value," Frahm said. "If everybody in the county did this, we would have no money to operate off of because we would to reduce taxes if we approve."

The denial does not mean the easement cannot move forward.

It does mean the assessor does not have to lower the land value to WRP rates.

Based on Frahm's interpretation of the state statute, the easement goes against the county's comprehensive plan.

"We have a resolution stating that conservation easements, and the 30x30 program, we are against. We made that resolution. That makes it in conflict with the comprehensive plan and that's the only requirement we have to fill," Frahm said.

Holt County Assessor Tim Wallinger reported the difference in tax rates would be approximately $1,600.

"If we assess it as grass, it would be $2,600 per year in taxes," Wallinger said.

Under the easement program, taxes would be $1,000.

"If we approve this easement, Tim has to lower the tax base to $500 per acre for WRP ground," Frahm said.

Chairman Bill Tielke asked the Knoxes why they did not choose the 30-year option, available on the application, instead of the perpetual easement.

Knox said, "I don't think there's been a 30-year proposal accepted. In 30 years, you can redo it and get paid again for the same thing. That just makes good business sense."

Tielke questioned if the Knoxes had received a copy of the contract from the Natural Resources Conservation Service.

"We haven't got a copy. It isn't signed up yet. Until they write me a check, I can back out any day I want. When I see what it is, maybe I will, but I have to go through this whole rigamaroll to get to that point," Knox said.

Parameters of the easement are re-evaluated every five years, according to Knox.

Without a contract in hand, Tielke asked how county officials would know if the easement follows the county's comprehensive plan, adding that planning and zoning members should have viewed two exhibits to base a decision.

Frahm said he requested the two exhibits from NCRS but did not receive them.

Planning and zoning board member Gene Kelly asked Knox how long he will have to study the plan before he signs it.

"I don't know if there's a time constraint on any of it," Knox said. "To do the comprehensive plan, on what we can do with the ground, we had to do the contract first."

An audience member, Steve Boshart, asked what criteria planning and zoning used to give a stamp of approval.

Kelly said land improvements were discussed, although the board did not talk about taxation.

"We knew the valuation was going to change," Kelly said, noting he was unaware the tax value would not be lowered if supervisors denied the claim.

"At the end of day, we had no grounds, per se, to deny it for the facts given to us at the time," Kelly said.