Land-Preservation Program Experiences Growing Pains

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A land-preservation program in Central Kentucky is experiencing some growing pains.

In April, the first group of landowners signed agreements to take $4.5 million in exchange for placing 1,572 acres into conservation easements as part of the purchase of development rights (PDR) program. Three of the farms are Thoroughbred operations.

Since then, a lawsuit has been filed by Prominent Petroleum Inc. and Castle Rock Stud against the plan's managers, the Lexington-Fayette Urban County Government and its Rural Land Management Board. The suit alleges the program is unfair and unlawful, and uses an arbitrary formula to compute what development rights are worth.

Jamie Schloss, the principal in both PPI and Castle Rock Stud, was among the first group of landowners that applied to qualify to be paid for giving up his development rights. He is now at odds over the amount he was offered in return for those rights.

Schloss' suit details Fayette County's zoning changes, which raised minimum lot sizes from 10 to 40 acres. It says the value of his land in 10-acre tracts could reach $7.7 million, and in 40-acre tracts could be worth $3.3 million. He was offered $1,541,312, but says he deserves $2,880,000. Though Schloss said he does not want to develop the land, the suit says "Castle Rock has a contract with PPI to develop the property."

With horse farms in the area selling for as much as $11,000 an acre, owners could be accepting less to keep their land for agriculture use.

Col. Horace N. Davis, who owns Bluegrass Heights Farm with his wife, Kathi, and his mother, Marian, is among the landowners who signed a contract with the PDR program. He said he has turned down offers to develop his farm, but cost wasn't Davis' main concern when he applied.

"We're pretty excited about it," said Davis, whose farm has been in his family since 1901. "We're trying to draw the line so (development) doesn't jump over our heads and go on."

Davis' farm is at the boundary of Fayette County's urban service area. Across the street from Bluegrass Heights is the former site of Glenridge Farm where Real Quiet was foaled. That property is currently being developed.

Davis is slated to receive $270,720 for the development rights to 94.35 acres of his 278-acre farm. Davis said the remainder of the property is already in conservation and/or preservation easements.

Schloss' suit also contends the land management board made some decisions in private meetings which should have been public. The attorney general has ruled that the board violated the Open Meetings Act. By Kristin J. Ingwell

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