Historic Dahlstrom Ranch Conservation Easement Finalized

A conservation easement of historic proportions was purchased in the heart of the Texas Hill Country only a short drive from the Capitol of Texas. Hays County, the City of Austin, and the Hill Country Conservancy (HCC), with funding from the federal Natural Resources Conservation Service (NRCS), came together to purchase a conservation easement on the historic Dahlstrom Ranch, a 2,254-acre privately-owned holding located outside of Buda. This rare collaboration between a private landowner, county, federal agency, and city took shape in 2007 and will be the first private land preservation agreement of its kind. The privately-owned ranch will have the unique distinction of providing a 384-acre area for public education and nature programs proposed by a public access committee led by the National Parks Service and managed by Hays County.

“Through this conservation easement, Gay Dahlstrom, in partnership with Hays County, as guided by Precinct 2 Commissioner Jeff Barton, NRCS, HCC, the City of Austin and many others, has ensured that a majestic piece of the Texas Hill Country will not only survive, but allow our native wildlife and natural resources to thrive,” said David Braun of Braun & Associates, attorneys for Gay Dahlstrom. “Gay is an exceedingly modest and private person, but today she and her family have set a proud and important example for all conservation-minded Texas landowners.” The family’s history on the property dates back five generations. The Dahlstrom Ranch on Onion Creek has played an impressive role in Hays County’s heritage. The property also plays a key role in the area’s overal well-being thanks to its abundant aquifer recharge. The historic ranch features an impressive system of caves and sinkholes that directly convey clean water to the aquifer. Also, following a reduction in livestock grazing in 2005, the ranch’s wildlife habitat and native grasses have staged a welcome comeback.

In recent years, the Dahlstroms, like many other Texas families, were faced with the decision on whether to begin selling off their land to developers in order to pay estate taxes. Gay Dahlstrom chose to preserve the family’s heritage and legacy, retaining Braun & Associates to guide her through the process of obtaining a conservation easement that enabled her family to keep the ranch intact. This contract between property owner and conservation organization, while providing critical tax incentives, also allows the owner to protect the water resources, wildlife habitat, natural character, and other conservation values of the land. A conservation easement restricts the amount and type of development allowed on the property, and conveys the right to enforce these restrictions in perpetuity, while preserving the right to traditional agricultural uses and limited residential use.

“This partnership provides multiple benefits, keeping this land intact for the family’s ongoing use and enjoyment while preserving the unique caves and other karst features of the ranch and furthering enhancement of its ecology and wildlife”, said Frank Davis, Director of Land Stewardship at HCC.

“I am very pleased we are able to partner with Hays County and Hill Country Conservancy on this important project,” said City of Austin Mayor Lee Leffingwell, a longtime supporter of the use of voter-approved bonds designated for the acquisition of open space.  “As our region continues to grow, it is important that we lead in the effort to protect our natural resources, and acquisitions like this one ensure we are doing our part to protect and enhance our environment, particularly our water quality, and the heritage of the Aquifer region and Texas Hill Country.”

Gay Dahlstrom’s son, Jack Dahlstrom Jr., has plans for ecotourism and nature and wildlife-related art exhibits on the property, with the ultimate goal to further the community’s understanding of, and respect for, the area’s heritage and environment. The Dahlstrom family has a long-term plan for continuing to restore the land and its native wildlife. “At the end of the day, my mother did this because she loves this land and appreciates all that it has given us,” said Jack Dahlstrom Jr. “Now, it’s our family’s turn to give back to the land, and we appreciate the efforts of everyone who worked so hard to help us make that happen.”

America’s Largest Landowner Announces Renewable Energy Venture

Ted Turner has announced a strategic alliance with Atlanta-based Southern Company to pursue development of renewable energy projects in the Southwestern United States, including his New Mexico land holdings. Turner is the state’s largest landowner.

“I’ve always been passionate about developing renewable energy, and I’m excited to join forces with Southern Company to explore our renewable energy potential,” said Turner, who will pursue the venture through Turner Renewable Energy.

“Southern Company’s experience in power project development, construction and operations, and customer relations help make this a strong alliance, and I look forward to working together,” he added.

Turner Renewable Energy and Southern Company will focus on developing and investing in large scale solar photovoltaic projects in the Desert Southwest with the goal of further commercializing the technology and making it more cost competitive.

“This alliance unites our common goal to explore and develop new renewable energy projects,” said Southern Company CEO David Ratcliffe. “We have said for some time that renewable energy should play an increasing role in this country’s energy mix and that Southern Company would seek opportunities to expand our renewable portfolio where it makes sense. This is evidence of that commitment.”

Land Report 100: No. 62 Clayton Williams Jr.

OF THE COUNTRY’S 100 LARGEST LANDOWNERS, FEW ARE AS COLORFUL AS CLAYTIE.

A passionate approach to land stewardship is but one of Clayton Williams’s claims to fame. The diehard Texas Aggie is a born entrepreneur whose many pursuits have ranged from insurance salesman to banker, farmer, rancher, real estate developer, big-game hunter, philanthropist, conservationist, and, at one pivotal point in his career, front-running gubernatorial candidate. And like any self-made man, he can ride out tough times with the best of them—even down to his last bullet.

Williams’s trailblazing traits date to his colorful forebears, who mixed it up with the likes of Kit Carson, Billy the Kid, and Geronimo. The native Texan was born in Alpine in 1931 and raised in Fort Stockton. After attending Texas A&M and fulfilling his military obligations, he cut his teeth selling life insurance in Mineral Wells. But fate called him back to West Texas, where in a Fort Stockton coffee shop he learned about a farm for sale. He struck a deal with its owner to form an oil and gas partnership, and the cornerstone of his career was set. From that small start, his financial empire eventually grew to include a host of companies, from cow-calf operations to a safari company to several entities bearing the ClayDesta moniker, a nod to himself and wife Modesta.

It was in Modesta that the wildcatter found a soul mate who shared his love of the land and sense of adventure. In his book Claytie: The Roller-Coaster Life of a Texas Wildcatter, Mike Cochran describes Williams’s run as “an exciting mix of hard work and great fun, building pipelines and drilling wells one day and branding calves and working cows the next—all embellished with a spectacular marriage. Claytie and Modesta really are bigger than life.”

After an unsuccessful run for governor of Texas in 1990, Claytie turned his considerable energies on going public with Clayton Williams Energy Inc. (CWEI). With an estimated net worth of $100 million, his name was added to the Forbes Four Hundred. Today, he is a fixture on the Land Report 100 and ranked No. 62 in 2009 with 146,655 acres. During the past decade, CWEI has drilled 167 horizontal wells, mostly in the Austin Chalk formation as well as the Cotton Valley Reef in Texas, in Louisiana, in Mississippi, and in New Mexico.

“Claytie is, by all measures, one of a kind,” says Cochran. “He’s an absolutely wonderful character. With his ranch he’s been really innovative and was recognized nationally for some of the innovations to trap water and to get the best use of the land.”

Library: Working Dogs of Texas

Both the author and the photographer are valued contributors to The Land Report, and there’s no doubt in my mind that landowners from coast to coast will be able to identify with this book. So let’s begin by getting two misconceptions about this book off the table.

First off, Working Dogs is not a tribute to hunting dogs. Yes, there are great chapters on curs and feists, pointers, retrievers, and the fearless breeds that track wild hogs. The authors even tail a pack of hounds that are bona fide man-hunters à la Paul Newman in Cool Hand Luke. But at its core, Working Dogs is about the countless ways man’s best friend has been bred and trained to serve different masters, which is why this book is such a compelling volume.

“The one thing these dogs all have in common is that each has a job to perform,” Wyman Meinzer says. “It might be highly specialized task that requires enormous amounts of training like search and rescue or detector dogs. It could be a more traditional one such as herding cattle or guarding against predators. It could even be as important as providing friendship to an elderly person.” To that end the final chapter is titled “The Caretakers.”

The second element that needs to be dismissed is that Working Dogs of Texas suffers from geographic limitations because of its focus on the Lone Star State. On the water, in the woods, on ranches and farms, and at border checkpoint and international airports – Chappell and Meinzer covered an enormous amount of terrain researching this compelling project.

Available online at Amazon.com

For Sale: 19,079-Acre Pineywoods Mitigation Bank in East Texas

One of the largest wetland mitigation banks in the nation is on the market. Located in Angelina, Jasper, and Polk Counties, the Pineywoods Mitigation Bank is currently the largest wetland mitigation bank in Texas and is fully permitted with the US Army Corps of Engineers.

The Pineywoods Mitigation Bank is the result of six years of cooperation between The Conservation Fund and GMO Renewable Resources, entities that have spent more than $2 million extracting all of the permitting and execution risk out of the project.

A contiguous block of 19,079 acres of valuable habitat, the bank is located in the middle of the Neches River basin and provides a corridor between the Davy Crocket and the Angelina National Forests. Its large size and the concentration of sensitive wetland habitat on 13,000 acres are two of its many distinctions.

The Conservation Fund and GMO Renewable Resources seek to sell the bank as a whole to a buyer who can fully focus on the monetization of the $85 million in potential credit value. The estimated net present value of the wetland mitigation credits is about $40 million with an 18% discount rate.

“Pineywoods Mitigation Bank is truly a unique piece of property managed for the conservation of natural resources while providing mitigation opportunities,” says Tom Margo, Director of Real Estate Sales at AFM Real Estate, the listing broker. The owners recognized the importance of this area and put a plan in place focused on conservation and enhancement. All of the necessary approvals and permits are in place, a rare find for a property of this size and with these characteristics.”

The timeline for the bidding process is as follows:
• Indicative offers due September 1, 2009.
• Binding offers with deposit due November 1, 2009
• Closing prior to December 31, 2009.

For additional information, go to the Pineywoods Mitigation Bank website. For details of the sale, review the following letter from GMO Renewable Resources. For more information about AFM Real Estate, visit their website.

Crescent Resources Files for Chapter 11 Bankruptcy

Charlotte-based Crescent Resources filed for bankruptcy protection in Austin on June 10 listing assets and liabilities in excess of $1 billion. Founded in 1969, the developer is owned by Duke Energy and Morgan Stanley’s real-estate fund unit and has interests in 35 residential and commercial projects in 10 states, including country-club communities, mixed-use developments, and Class A office space in the Southeast and Southwest.

Crescent lost $420 million in 2008, according to the Charlotte Observer, and will seek protection from as many as 10,000 creditors.

The company issued the following press release at its website:

Crescent Resources announced that, as part of its ongoing strategy to reduce the company’s debt level and improve its capital structure, Crescent Resources, LLC and certain of its subsidiaries have filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court in the Western District of Texas, Austin Division.

The company intends to operate its continuing businesses without any significant interruption during the restructuring process. In addition, the company has obtained a Debtor-in-Possession financing facility of $110 million from a group of its existing lenders, which will provide sufficient funds to operate its ongoing business activities.

Crescent also announced today that Arthur Fields, chief executive officer of Crescent Resources, has retired from the company and will continue to work with the company in an advisory capacity. Effective immediately, Andrew Hede, Crescent’s chief restructuring officer, will also serve as chief executive officer. Mr. Hede, a managing director with Alvarez & Marsal North America, LLC, has more than 15 years of financial restructuring and business experience. Mr. Hede has worked with numerous companies, including national and regional homebuilders and real estate developers, to develop and implement financial and operational restructurings and recapitalization strategies.

“We have been in active discussions with our lenders and other stakeholders as we work towards an agreement that will bring our capital structure in line with the current economic environment,” said Andrew Hede. “Those discussions are continuing, and we are pleased with the ongoing support we have received from our lenders. We believe this process will lead to a stronger financial foundation for the company and its stakeholders and that it will better position us to serve our customers and partners over the longer term.

“Despite the unprecedented challenges facing the real estate industry, we believe Crescent’s underlying business model is solid, and our assets remain very attractive. We are encouraged that our lenders have agreed to provide additional funding to support our continued operations and allow us to maintain the high level of service and amenities our customers have come to expect. We intend to reach an agreement on our new capital structure and emerge from bankruptcy quickly,” Hede continued.“

On behalf of the Board and all the employees of Crescent, I would like to thank Art for his tremendous service to Crescent and the entire real estate industry over his long and successful career,” continued Mr. Hede. “He was instrumental in building Crescent into one of the leading real estate development companies in the country, and we are pleased that he will continue to serve as an advisor to the company.”

“Crescent Resources has the best assets and more importantly the most dedicated and passionate employees in the industry. I am confident that this restructuring will position the company better for the future,” said Mr. Fields. “It has been a privilege to work with such a talented team. I can move on secure in the knowledge that Crescent will build on its track record as one of the leaders in the real estate industry.”

As part of its Chapter 11 filing, the company is seeking Court approval to make certain payments and to maintain key agreements with employees, customers, vendors and partners of continuing operations to ensure the company can maintain its commitment to delivering a high level of amenities and services.

About Crescent Resources

Crescent Resources, LLC, is a land management and real estate development company with interests in 10 states in the southeastern and southwestern United States. Based in Charlotte, Crescent Resources is a joint venture between Duke Energy and Morgan Stanley Real Estate Fund. Established in 1969, Crescent creates mixed-use developments, award-winning country club communities, single-family neighborhoods, apartment and condominium communities, Class A office space, business and industrial parks and shopping centers. Visit www.crescent-resources.com for more information.

Read the complete announcement at the Crescent Resources website, June 10, 2009.

Partner Profile: Holistic Management International

Peter Holter and the fine folks at Holistic Management International (HMI) are valuable partners of The Land Report. We believe in their mission, and once you learn more about them we think you will be supportive as well.

HMI is a non-profit based in Albuquerque that dates back to 1984. Its goal is to restore damaged grasslands while positively impacting land health and productivity. HMI has done this with public land, communal lands, and on private property not just in the U.S. but around the world.

Recently, while on a call with Peter, he told me about an HMI client in West Texas. In 1999, Chris and Laura Gill and their family bought the Circle Ranch in Hudspeth County. They considered the 32,000-acre, high-desert property an investment, and they wanted to improve it through increased wildlife habitat, health, diversity, and number.

After exploring a wide variety of tools to improve their ranch, the family found what they consider to be a sound process by utilizing a planned grazing approach advocated by HMI.

“I was anti-cattle and thought desert grasslands could best be restored by de-stocking,” Gill says. That changed when he learned about HMI planning and practices. Holistic Planned Grazing is “all about getting animals to the right place at the right time for the right reason.” The right reason is to improve desert grassland ecology by concentrating cattle herds, rather than dispersing them, which is the norm in conventional desert range management.

“This intense grazing,” Gill explains, “must always be followed by long-enough periods without grazing to allow complete plant and soil life recovery.” This high-concentration, long-recovery is better for plants since it mimics the natural behavior of large herds of wild herbivores in the presence of their predators, who existed on grasslands and high deserts for millennia until humans arrived.

Gill reports strong, positive results from using planned grazing over the past decade. The animals usually graze about half the ranch, moderately, as the rest recovers from grazing during the previous year. “We have experienced huge gains in stocking rate and range productivity,” while at the same time, achieving “consistent improvements in habitat, which we measure by changes in forage production.”

Bottom line? Thanks to Holistic Management, the Circle Ranch almost tripled its forage production over five years. These Texas landowners increased productivity and wildlife habitat 35 percent or better on an annual basis.

For Sale: 1.2 Acres for $12.5 Million

Every now and then, a listing comes along that is a flat-out jaw-dropper. Some, like the Bell Ranch at nearly 500 square miles, defy comprehension because of sheer size. At 186′ x 300′ this residential lot in the Dallas suburb of Highland Park takes the prize for price: $10+ million per acre.

Go ahead and take a closer look at 4500 Lakeside Drive. I walked it myself. Took about two minutes. Can’t make it to Dallas? Check out the website of the brokerage with the listing: Allie Beth Allman & Associates.

P.S. No ag exemption.

For Sale: Val Kilmer’s New Mexico Ranch for $33 Million

Val Kilmer, star of Top Gun, Tombstone and Willow, has put his 5,970-acre Pecos River Ranch on the market for $33 million. John Watson of Orvis/Cushman & Wakefield has the listing.

The Pecos River Ranch features more than five miles of frontage on its namesake river. Kilmer’s 5,550-square-foot adobe home as well as an 1,800-square-foot caretaker’s home, additional guest homes, barns, garages, and outbuildings are included in the sale.

The ranch is located 8 miles from Pecos, 22 miles from Santa Fe, and 90 miles from Albuquerque.

Kilmer, who is rumored to be considering a run for governor of New Mexico, has owned the property for nearly 15 years. He previously listed portions of the ranch for sale in 2006, but found no buyers.

For Sale: Bell Ranch Gets Bigger

The biggest ranch on the market in America just got bigger. The heirs of William Lane, who assembled New Mexico’s Bell Ranch 40 years ago, have elected to include an additional 40,100 acres of canyon country and pastureland in the offering, which now totals 290,100 contiguous deeded acres or 453 square miles. Carrying capacity for the ranch is 5,000AU.

The new price for the Bell is $103 million – $99 million for the land and $4 million for the livestock and equipment – or $341 per acre, according to the Orvis/Cushman & Wakefield website. The price represents a 22 percent reduction below the original asking price. Contact John Watson or Rye Austin at 888-541-4300 for additional details.

Property Details include:

290,100(+/-) deeded acres in northeastern New Mexico featuring Bell Mountain, a dramatic butte punctuating the landscape.

Located east of Santa Fe primarily in San Miguel County.

The Canadian River flows through the ranch for over 13 river miles.

Ranch is adjacent to 9,600-acre Conchas Lake with lake house and boat storage.

Carrying capacity for cattle operation is 5,000AU.

Headquarters includes general manager residence, ranch offices, stables, barns, garage and storage facilities.

10,832-square foot, 8-bedroom Hacienda with swimming pool and tennis court.

Four cowboy camps across the property.

Bell Ranch airfield has storage for 100LL avgas and a large hangar for its 8,200′ x 75′ lighted dirt airstrip.

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