Valuation

Pronatura and WiLDCOAST conducted a central Baja California peninsula land valuation analysis in order to determine appropriate financial conservation easement costs in the Laguna San Ignacio Wetland Complex. The analysis included: (1) a market value survey; (2) environmental services payments; and (3) negotiation guidelines. The analysis resulted in a acre easement cost ranging from $8 to $100.

The principal factors determining the land market value were land speculation, coastal location, economic and development potential, public services, size, and access. The high-end market value range was primarily driven by commercial real estate and industrial land speculation. The highest market value, $8,100 per acre was found at La Unica in Bahia de Los Angeles. La Unica is a property located in the coast with a beautiful scenic view that has a tremendous economic potential. Some small parcels also showed a very high market value, but these lands were extremely rare and not representative of the market value. The lowend of the market value range was characterized predominantly by land transactions involving land speculators and local community members. Land speculators paid as low as $8 per acre to local property owners.

Even though an overwhelming majority of the ejido members in the region are not interested in selling their parcels, ejidatarios in the Ejido San Ignacio and Ejido Emiliano Zapata have received offers from Mitsubishi/ESSA and ESSA representatives met with the Ejido San Ignacio to discuss the possibility of buying 21,000 coastal acres. Because of this offer, the LSICA proposal also considers the option of purchasing land as an alternative for conservation in the Laguna San Ignacio Wetland Complex.

The National Forestry Commission has established price points for environmental service payments ranging from $8 - $20 per acre. Five annual payments, totaling $100 ?$250, are made to qualified property owners participating in the Environmental Service program. A piece of property must meet strict guidelines in order to qualify for the program. Property owners are paid for proper management and conservation of important ecosystems and biodiversity. The LSICA, utilizing CONAFOR criteria, established conservation easement costs ranging from $8 to $100 per acre.

Long-term local stakeholder buy-in is an essential element in conservation easement success. The LSICA and the Ejido Luis Echeverría structured a funding scheme that addresses financial supra and socio-political considerations. An annuity payment of at least $25,000 is conditioned on the ejido's fulfillment of the terms and conditions of the conservation easement. The conditional nature of the annuity payments fosters long-term compliance. Additionally, the LSICA will provide additional incentives including legal and technical assistance, the introduction of government conservation programs, and local institutional capacity building.