Longest Private Stretch of Pigeon River Protected

A 360-acre property, the second largest undeveloped parcel in Koehler Township, Cheboygan County, will now be placed in permanent protection thanks to a creative agreement reached by the property’s owner and the Little Traverse Conservancy.

In order to ensure that his beloved land escaped future development, Dr. Boyd Banwell was willing to sell the land to the Little Traverse Conservancy at a discount for the mutual benefit of the seller and the Conservancy. Dr. Banwell will retain a life lease, or “reserved life estate” on the property, and the Conservancy receives a substantially reduced price. The property includes 2.9 miles of Pigeon River frontage – the single longest stretch of privately-owned land along the entire river. The land is bordered by Mackinaw State Forest land to the northeast and also adjoins the Conservancy’s Agnes Andreae Preserve to the north. An ecologically-diverse mix of habitats are found within the large property.

“The protection of the Pigeon River Watershed has become a priority for the Little Traverse Conservancy,” said land protection specialist Ty Ratliff. “This is an exceptional opportunity to add to existing protected lands and make a significant impact on watershed protection for the future.” The land provides outstanding wildlife habitat for many species. Thick stands of aspen are ideal for grouse, turkey, woodcock, and deer. Bear and coyote tracks are found in abundance and large individual red pine and red oak are testament to the wild nature of the land. “Dr. Banwell has been carefully managing wildlife on the land over the past 10 years,” Ratliff said.

Pigeon River country is home to the state’s only elk herd and many other wildlife species including black bear, bobcat, and deer. State wildlife managers’ concerns over the ecological integrity of the forest have grown as private parcels surrounding the forest come under increased development pressure, fragmenting important wildlife habitat. Last year, the Conservancy worked with the Cudlip Family who placed a conservation easement on their 480 acres with one mile of Pigeon River frontage.

Dr. Banwell came to the Conservancy more than a year ago as he was considering his estate planning. “He already had an existing offer for the property that far exceeded what the Conservancy paid,” said Tom Lagerstrom, Associate Director for the Conservancy. “But he believed there was a way to keep the land protected and provide him with the income he needed.

Lagerstrom and Ratliff noted that Dr. Banwell has deep roots in northern Michigan. “Boyd grew up here, loves the area, and has kept that deep love of the outdoors and the North Country as a guiding force in planning for the future of this land,” Ratliff observed. Lagerstrom added that “Boyd is planning for the future of his land for himself, his heirs, and the public.”

The protection of the property will occur through a conservation tool known as a reserved life estate (see below). While the property has been sold to the Conservancy and will be protected as a nature preserve, Dr. Banwell retained a life lease on the land, allowing him to exclusively use it for the remainder of his lifetime. In addition, he retained a 20-acre parcel for his four children.

The Conservancy needs to raise approximately $700,000 for the purchase over a seven-year period, allowing donors to stretch their charitable contributions over a number of years. The Conservancy is seeking contributions for the remainder. For more information about this project, please contact Ty Ratliff at the Conservancy or at tyratliff@landtrust.org.

A Conservation Tool to Consider: A Reserved Life Estate

A reserved life estate is a simple concept, and one more conservation option to consider for the future. In essence, a reserved life estate involves the donation or discounted sale of real or personal property to the Conservancy in such a way that allows the donor or donors to enjoy the continued use of the property for the remainder of their lives. At the time of the gift, the property is deeded to the Conservancy and the donor or seller receives a life lease allowing them full and private use of their home or property. Upon their death, the lease is ended and the Conservancy assumes full management of the property.

A reserved life estate that is donated or sold at a discount may be tax deductible, and also removes an appreciated asset from the estate of the donors, avoiding possible estate taxes on the asset.

When making a gift of a reserved life estate, donors may request how the property be used by the Conservancy in the future. For example, a donor may wish to have their land dedicated as a nature preserve upon their death. Or a donor may have a reserved life estate on their home and request the Conservancy sell the home upon their death and place the proceeds into the Endowment or Land Acquisition Fund to protect other land in the future.

In the case of Dr. Boyd Banwell, he agreed to sell his property to the Conservancy at a discounted price and retain the use of it for the remainder of his life. Boyd and his heirs will be able to continue to use the land as a nature preserve and hunting area for the rest of his life. Because of the private use of the property, he will also be responsible for taxes, maintenance, and insurance on the land and his cabin. However, Boyd’s primary objectives have been accomplished: he can continue to enjoy the property for the remainder of his life, it will not become a tax dispute among his family when his estate is settled and finally, the property will be permanently protected and enjoyed by the public for years and years to come.