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encumbered shoreline 2), and activities that are permitted on
encumbered shoreline 2 (e.g., alteration of trees to provide
views of Lake Michigan, construction of foot paths to the Lake
Michigan shoreline, and certain construction of overlook decks,
patios, or boat houses). Deed 2 generally states that
petitioners are liable for any cost incurred by LTC to enforce
conservation easement 2 and allows conservation easement 2 to be
terminated “If subsequent, unexpected changes in the Property, or
nearby property, render the Purpose of this Conservation Easement
impossible to achieve”. Deed 2 states that LTC
may transfer or otherwise assign this Conservation
Easement only to a qualified conservation organization
which agrees to enforce this Conservation Easement in
accordance with the regulations established by the
Internal Revenue Service governing such transfers and
the laws of the State of Michigan. If Grantee ceases
to exist, Grantee’s rights and obligations under this
Conservation Easement shall immediately vest in the
following entities in the following order to the extent
they evince an intent to accept this Conservation
Easement: (a) The Nature Conservancy, (b) the Michigan
department of Natural Resources, or (c) any other
appropriate organization which qualifies under Section
170(h)(3) of the Code, has conservation purposes, and
is qualified to accept and hold this Conservation
Easement either voluntarily or through an award of such
right by a court of competent jurisdiction under the
doctrine of cy pres.
Deed 2 does not restrict petitioners’ right to develop any part
of the property not covered by conservation easement 2.
Petitioners obtained from Frame an appraisal of conservation
easement 2 and attached to their 1993 return a letter from Frame
stating that he had appraised conservation easement 2 at a fair
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