NCSU Faculty Senate Resolution Hofmann Forest Sale AY

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1 NCSU Faculty Senate Resolution Hofmann Forest Sale AY Whereas, the Hofmann Forest has been owned by the Forestry Foundation and Natural Resource Foundation on behalf of NC State University since 1934 for use by faculty, students, and professional groups for forestry and natural resources education, research, and demonstration purposes; Whereas, the 79,000 acre Hofmann Forest is a complex natural ecosystem almost as large as the city of Raleigh, replete with rare wildlife and plants and sensitive wetlands, and is the fount of three coastal rivers the White Oak, Trent, and New that provide clean water for coastal estuaries and fisheries, freshwater aquifers, and scenic beaches; Whereas, NC State University teaches principles of sustainability, natural resource management, environmental protection, open decision making, community outreach, local economic development, and good governance, which would be repudiated by the sale of the Hofmann Forest; Whereas, there is widespread opposition to the sale from faculty, students, alumni, forestry professionals, environmental groups, local residents in Jones and Onslow county, and newspaper editorials; Whereas, the sale of the Hofmann Forest will be irrevocable and lead to exclusion of the forestry and natural resources faculty, students, and stakeholders from the Forest; loss of current and future teaching and research potential; environmental damage from development; and loss of NC State s reputation and good will; Be it, therefore, resolved that the Faculty Senate recommends halting the sale of the Hofmann Forest, and that NC State University and the Natural Resource Foundation establish an open and collaborative effort to seek external input and analyze diverse options that can lead to retention and management of the Forest. 1

2 Hofmann Forest Purpose Whereas, the Hofmann Forest has been owned by the Forestry Foundation and Natural Resource Foundation on behalf of NC State University since 1934 for use by faculty, students, and professional groups for forestry and natural resources education, research, and demonstration purposes Acquired by Julius Hofmann for School of Forestry for $400,000 as a forestry laboratory, demonstration area and as a source of revenue to help carry on the forestry education work. The Forestry Foundation is to hold this property for the sole interest and benefit of the Forestry Department of State College. Julius Hoffmann, July 17, 1933; Memorandum for President E.C. Brooks The Natural Resource Foundation is organized to operate exclusively for scientific and educational purposes in support of the scientific, educational, research, and outreach missions of the College of Natural Resources at NC State University. The Corporation has a strong history and lineage of forestry and forest products support, largely due to the management of the Hofmann Forest, which is recognized as a unique resource and a primary focus of the Corporation since its inception. NR Foundation Bylaws, Section 8 In April, 2013, the NR Foundation and Endowment Fund of the Board of Trustees of NC State University announced a $150 million pending sale, which released as the contract finally in October as a $145.8 million, plus a $4.2 million gift to university. 2

3 Whereas, the 79,000 acre Hofmann Forest is a complex natural ecosystem almost as large as the city of Raleigh, replete with rare wildlife and plants and sensitive wetlands, and is the fount of three coastal rivers the White Oak, Trent, and New that provide clean water for coastal estuaries and fisheries, freshwater aquifers, and scenic beaches Walker / Hofmann LLC Development Prospectus, November, 2013, Excerpts n.b. = $100 million n.b. ~$300 million; timber harvested = $>$50 million; military easement $50 million; Total = $500 million Water, Wildlife, and Biodiversity Corridors White Oak, Trent, New headwaters Sensitive shell fishing and coastal estuaries and beaches Bears, deer, timber rattlers, lots more Pocosin swamp, pond pine, laurel, briars Planted pine, but most rugged environment in state Sediment Loads Average now = 55 ton / yr; Average after Developed = 2650 tons per year During development = maybe 5,000-10,000 per year This will destroy three crucial coastal rivers for at least a decade 3

4 Hofmann Forest vs. City of Raleigh as a Comparison Imagine it ALL Leveled and Bulldozed from Garner to I-540 in North in Ten Years 4

5 Environmental Impact required for Peace Street and Wade Avenue Bridges: 4 years, 4 meetings, Environmental Analysis, Public Involvement, Agency Consultation; Same for new Train Station 5

6 Whereas, NC State University teaches principles of sustainability, natural resource management, environmental protection, open decision making, community outreach, local economic development, and good governance, which would be repudiated by the sale of the Hofmann Forest. On January 15, 2013, the former Dean Bob Brown wrote re his usual stated intentions that he promoted prior to the sale ( to the Forestry Faculty and NR Foundation list serve): No where has anyone mentioned selling the Hofmann for a development, commercial, residential, recreational, or otherwise. The primary option under consideration is getting a 25 year, 50 year or permanent easement on the Forest, and retaining ownership. The Hofmann will remain a permanent working forest, no matter what option is taken. An easement would guarantee that, and provide significant income to the college. The potential easement is separate from any rental agreements that might come from the Marines - those would be financially minimal in comparison and would be time-limited. The second option is to get the easement, THEN consider selling the forest to a TIMO, REIT, or timber company. Naturally an easement would lower the value of the land. But that would also restrict the Forest to a permanent working forest, retain the Hofmann name, and allow some consideration for continued use of the Hofmann for students and research The third option is to sell Section 10, with or without an easement or sale of the rest of the Forest. Section 10 is the most developable portion of the Forest, and the income from that portion alone may be up to 1/3 the land value of the entire forest. Three days later, Dean Watzin sent a CNR that announced the secret Natural Resources Foundation vote to sell the Hofmann Forest in its entirety. One week later, that was announced to the CNR Alumni: The following letter was ed to College of Natural Resources alumni on January 22, {By Dean Mary Watzin}. I also want to reassure you that any sale of the Hofmann will be consistent with the values of the College, which include retaining the name in recognition of the legacy of the Forest to the College. The goal is to sell the property as a working forest. The College hopes to retain access to the property by faculty and students for teaching and research. The College is currently experiencing significant growth and has strong ambitions. Keeping current programs strong and leveraging new opportunities for the College will only be possible with additional cash flow. A more diversified portfolio of investment could provide a higher and more consistent level of support to the College One week later, Walker Farms, the principal investor, was incorporated in NC as the Hofmann LLC. 6

7 In 2014, Dean Watzin continues to promote ambitious plans that need more funds: Joint Cape Fear Arch/Onslow Bight Meeting, Feb 19, 2014; Minutes of the Meeting; Dean Watzin: n.b.: Sustainability is a way of living that leaves our environment as good or better than we found it for future generations. It is a framework for making choices and requires societal challenges as much as environmental. It requires new tools for quantifying analyzing and visualizing alternative scenarios for the future Freshwater is the number one natural resource issue in the 21 st century Policy, economics, and management research is needed: o Social scientists and economics are just as important as environmental sciences o We need new policy instruments o Need a paradigm shift of shared governance o We need to make a business case for conservation and sustainability o We need to document our success Question: Hoffman Forest: What is the perspective of people at NCSU? Most people support the sale. The protests against the sale have been minor. We have an ambitious strategic plan but we need resources to implement the plan. We will get a more consistent and predictable income from the sale. Was the controversy based on that the agreement was to preclude development? We never said we were selling it with an easement. The buyer will keep it as working lands that is what his primary interest is. We did not know about the prospectus done by the buyer and it has been put aside. What is the nature of the buyers commitment? In the sales agreement it says they intend to work the land. It is true there is no guarantee but this is the right thing for the College of Natural Resources. We tried our best to get a buyer that was committed to keeping it in working lands. 1) There are major, stringent Clean Water Act wetlands permit and Farm Bill laws and restrictions on development and conversion of wetlands. The Hofmann is a wetland. 2) The University and Natural Resource Foundation are under investigation now for noncompliance with the Clean Water Act dredge and fill wetland permit requirements. 3) The University and NR Foundation are working madly now to survey and map the Hofmann ditches and draining and ensure that the buyer CAN develop the property. Or he will be subject to dredge and fill permits and Farm Bill penalties. And Section 6.8 of the sale contract, which says the university / endowment fund knows of no environmental restrictions that constitute a material threat to the property or the use thereof, may be violated. 7

8 Whereas, there is widespread opposition to the sale from faculty, students, alumni, forestry professionals, environmental groups, local residents in Jones and Onslow county, and newspaper editorials; Sale Opponents to Date: 7,000 8,000 letters and signatures; 20,000+ NGO members: 1) Petition from 50 CNR faculty staff 2) Vote of the Faculty of the Department of Forestry and Environmental Resources 3) 1690 individuals who signed the on-line petition ( 4) 1500 likes - Facebook 5) ~4000 letters to Attorney General Roy Cooper 6) Petition from ~100 students at NC State University 7) The North Carolina Division of the Society of American Foresters (640 persons; resolution at annual meeting, January 31, 2013) 8) Wildlands Network, ) NCSU Student straw poll (87%) 10) Onslow County Commissioners 11) Almost Every person blogging on the university and newspaper PR sites 12) MANY who say they are/were donors 13) News: N&O, Technician, Indy Weekly, Jacksonville editorials 14) Cypress Group, NC Sierra Club 15) Croatan Group, NC Sierra Club 16) North Carolina Chapter of the Sierra Club 17) Environment North Carolina 18) NC Conservation Network 19) NC Association of Consulting Foresters 20) Wild South (regional, multi-state) 21) Wake County Audubon Society 22) New Hope Audubon Society 23) Joint letter/policy Alert from Dogwood Alliance, ) Policy Alert from Center for Biological Diversity, ) Lawsuit to stop the sale and perform an Environmental Impact Statement 26) And >70 individual and organizations contributing to lawsuit Google hits on Hofmann Forest 1) December, 2012: 11; only 3 unique 2) March 31, 2014: 1,410,000; only NCSU PR is positive 8

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11 Whereas, the sale of the Hofmann Forest will be irrevocable and lead to exclusion of the forestry and natural resources faculty, students, and stakeholders from the Forest; loss of current and future teaching and research potential; environmental damage from development; and loss of NC State s reputation and good will; Clips from Required License Agreement Proposed, Exhibit 5, Hofmann LLC Sale Agreement; this will essentially freeze faculty and student use at the minimal current use and rapidly disappearing level: 11

12 n.b. Until 2013, we could use any part of the forest with permission of the Forest liaison and manager; the Exhibit designated areas are 176 acres; or 0.2% of the forest 12