Tree Farmer - March/April 2010 - (Page 9)

Cos., in May 2007. The property covers 1,660 acres of steep, rolling topography of northern hardwood forest — maple, basswood, yellow and paper birch, and red oak — with a 26-acre lake and a population of deer, wolves, bobcat, lynx, fox, owls, and ruffed grouse. A 25-kilometer world-class cross-country ski trail system that is also ideal for hiking and mountain biking meanders through Sugar Hills Forest. As part of the agreement, Rajala restricted most of the property from motorized use. “This easement was not large in terms of acres,” says Norton, “but it is a very significant piece of land biologically, and I think, because they are a truly locally based private company, this was from the heart. The Rajalas really wanted to leave that legacy.” John Rajala, co-owner of Rajala Cos., says they contemplated developing the property prior to the agreement. “We didn’t want to do that, but we were forced to consider it because we needed to monetize the non-timber values of the property,” he says. “Fortunately, at the same time we were approached by the Trust for Public Land, TNC, and the Conservation Fund. This was a good fit for us because it allows us to productively grow quality timber on every acre and still make it affordable by separating the recreational values and allowing us to be paid for those so we can afford to continue to handle the carrying costs for the timber value of the property.” and nearly 19,000 acres of wetlands that once belonged to Boise Cascade Paper Co. before being sold to Forest Capital Partners in October 2007. The conserved lands adjoin some 440,000 acres of state-owned land, resulting in a protected area approaching 500,000 acres in size. Eighty-one of Minnesota’s Species of Greatest Conservation Need (a state-specific listing of endangered and threatened species) will benefit from the project, including Canada lynx, gray wolf, American woodcock, and several songbirds. The Largest Project The MFLP’s largest working conservation agreement to date is with Blandin Paper Co., a subsidiary of UPM-Kymmene of Finland, and it is expected to close in July 2010. At nearly 188,000 acres, the agreement covers all of the company’s industrial forestlands. It is the largest conservation agreement ever taken in Minnesota and the largest in the United States to have no development rights associated with it. “All companies are under pressure from shareholders and analysts to maximize the return on assets,” explains Joe Maher, general manager at Blandin Paper Mill. “Forestland is a large asset that’s sitting on the books, and an easement is basically a real estate transaction, but we’re not selling the actual land; we’re selling many of the rights that go with it. What really appealed to the company and to myself is that our forestland is going to be here as a working forest forever. Besides ourselves, there are 20-some companies that buy wood out of our forestland, so it’s good economically. It’s good for the region and for the public that the land won’t be subdivided and it won’t be developed. It will always be open now for public access for recreation. So, as a steward of the land, I think the company likes that idea, too.” Tom Duffus, upper Midwest director at the Conservation Fund, initiated con- servation agreement discussions with Blandin 10 years ago, and he calls the local managers of the Blandin property stellar. Maher admits it took a little talking to explain the agreement to the Finnish owners at UPM-Kymmene. The process of negotiating the agreement was a “cultural challenge,” according to Duffus, because in Finland there is no concept of conservation agreement. “But this is a very forwardthinking, large pulp and paper/forest products company,” Duffus says, “and as soon as they were able to hear directly what the opportunity might be, they seemed to understand fully how an agreement might fit into the company’s best interests.” Follow the Money Initial funding for the Blandin agreement came from a $7 million grant from the Blandin Foundation (unrelated to Blandin Paper Co.) and another $2 million from the R.K. Mellon Foundation. A new source, the Outdoor Heritage Fund, provided the remaining funding needed to complete the transaction. The fund is part of legislation passed by Minnesota voters in November 2008 — the Clean Water, Land, and Legacy Amendment — which “dedicates funding to protect our drinking water sources; to protect, enhance, and restore our wetlands, prairies, forests, fish, game, and wildlife habitat; to preserve our arts and cultural heritage; to support our parks and trails; and to protect, enhance, and restore our lakes, rivers, streams, and groundwater by increasing the sales and use tax rate beginning July 1, 2009, by three-eighths of 1 percent on taxable sales until the year 2034.” Approximately one-third of the funds generated by the new amendment ($80 million in 2010) will go to the Outdoor Heritage Fund, which helps protect wetlands, forests, and wildlife habitat. In 2009, the legislature granted a two-year appropriation of $36 million to the Minnesota DNR for First Large Project The first large project — the Koochiching-Washington Forest Legacy Project — involved the cooperation of local snowmobilers, who were concerned that trails would be closed if the land was sold to private investors. By collaborating with the snowmobile clubs, MFLP was able to build the support to protect more than 51,000 acres of forest, including 13 lakes, 90 ponds, 43 miles of rivers and streams, Tree Farmer MARCH/APRIL 2010

Table of Contents for the Digital Edition of Tree Farmer - March/April 2010

Tree Farmer - March/April 2010
Contents
Cover Story
Create a Recreational Trail
A Life Spent in the Woods
Ties to the Land
Public Policy
Wildlife Matters
From your Committees

Tree Farmer - March/April 2010