11/14/09 - A stark indicator of a slow year in real estate sales came into focus at the Land Trust Monday.

The trust collects a 3-percent property transfer fee on all real estate transactions that occur on the island; the fees go toward acquiring open space. How much the trust collects in fees has served as a reliable barometer for gauging real estate sales on the island.

On Monday trustees reviewed the organization’s audit for fiscal year 2009 (ending June 30, 2009), which showed $482,677 in collected transfer fees in 2009, compared to $1,375,608 in FY 2008.

The 2009 number was the result of approximately $22 million in sales, according to trust clerk Heidi Tarbox. The 2008 number resulted from approximately $47,933,000 in sales.

Combined with other lost income, the trust was “75 percent off” compared to 2008, remarked Vice Chair Denny Heinz.

But, there has been an uptick of late. Treasurer Barby Michel reported that the trust had taken in $182,707 in October. (See property transfers, right.)

Trustee Claire Costello noted that the trust had just been able to cover all its various debt service obligations without encroaching up its reserve; she said she expected that to continue to be the case in the coming months.

No fee required

Trustees briefly discussed a request from Island Enterprises, asking for an advisory on a stock sale. Because the amount of stock being sold would be less than a controlling amount, then there would be no requirement to pay a transfer fee, per Section 7 of the Land Trust enabling legislation, explained trust attorney Joe Priestley.