Savings of Open Space Preservation
In addition to preserving North Hampton's character and quality of life, preserving open space also saves North Hampton significant tax dollars.
This savings can be demonstrated using the following example. The North Hampton Conservation Commission has recently entered an agreement (funded separately from North Hampton Forever) to purchase a conservation easement for a 65 acre parcel of open space.
Details of the agreement:
 65 acre parcel, was to be subdivided into 20 house lots. $ 450,000 purchase price of conservation easement.
15 year bond at 5% interest.
$ 500,000 assessed value of homes if built.
10 homes built the first year and 10 built the second.
1.5 children per home at $8510 per school student.
Cost of preserving open space:
$ 42,703 per year for 15 years to repay $ 450,000 bond.
Cost if homes developed:
Total cost, 10 homes year 1 and 20 homes for the remaining years.
Only the first three years are shown because years 4 and beyond are the same as years 2 and 3.
As can be seen by comparing the bond cost of preserving open space and the net cost to the town if the land is developed, the Town of North Hampton saves significant tax dollars if the open space is preserved. Inflation is not included in the analysis and would only make the savings greater because inflation will increase the Cost of Development while the Cost of Bond remains constant.
This one parcel of land saves the Town of North Hampton almost $ 950,000 in the first 15 years. Even though the Town pays the cost of the bond, the savings exceed the bond cost.
In this example the payback to the town is immediate. This is because the land would have been developed immediately. If there is a delay between when the conservation easement is obtained and when the land would have been developed, the payback to the town takes longer to occur. However, there is always an eventual though delayed savings to the town.
It should be noted that the above example assumes the Town of North Hampton paid the full $450,000 for the conservation easement. Actually, the Conservation Commission obtained matching funds that reduced the cost to $200,000. As a result, the savings gained from the preservation of the open space significantly exceed what is shown above.
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