GIFT OF FARMLAND GROWS IN TIME

CIRCLING THE HILL

GIFT OF FARMLAND GROWS IN TIME

—By Danielle Schollaert

How are Dunteachin Drive, Tim's Court, Honey Drive, and Meadow Pond Drive--roads that wind through an Ellicott City development--connected to McDonogh? The street names tell a story: a story of love and loss, a story of tragedy and treasure, a story that proves the remarkable power of a planned gift.

The love of farming came naturally for John H. Nicolai, Jr. ’54 who grew up on his family’s 89-acre dairy and chicken farm in Howard County, MD—a piece of land they had owned since 1875. When he entered McDonogh in the eighth grade as a scholarship student, he was an active member of the 4-H Club.

After graduation, John studied Dairy Science at Cornell University, where he met his future wife, Sarah. The couple lived in Howard County, and he briefly taught science and social studies while serving as a 4-H Extension Agent before continuing his studies at the University of Maryland. From there, John taught at North Carolina State University, Raleigh and the University of Kentucky, Lexington College of Agriculture.

In 1969 while living in the midwest, the Nicolais welcomed their first and only child, Timothy. When Tim was seven, the family returned to Howard County and John again worked as a teacher before resuming a career in farming with his father. When his father died, John was given the title to 56 acres of the homestead which he renamed Dunteachin Farm. His goal was to create a profitable business raising chickens that Tim, then a sixth grader at McDonogh, could inherit. John’s mother grew strawberries on the remaining parcel of land.

John Nicolai, Jr. ’54 shown at Dunteachin’Farm in an article published in the Howard County Sun in February, 1984.

Like his father and grandparents, Tim took to the farm and spent his free time tending the strawberry fields and feeding the animals. He also started a lawn mowing company and planned to study agriculture in college. Tragically, on September 9, 1986—his senior year at McDonogh—Tim was killed in an automobile accident. His family was devastated.

Tim Nicolai ’87 is remembered in a yearbook dedication.

A LOVE FOR MCDONOGH

McDonogh held a special place in John’s heart and he had a deep appreciation for the opportunities the School provided. He was connected to his classmates, participated in social gatherings, and was engaged with his alma mater as a parent. After Tim’s death, John often visited campus and met with Alumni Director John Sieverts ’63. During one of his meetings with Sieverts, John indicated his intent to name McDonogh as the ultimate beneficiary of a significant portion of his family’s assets—specifically Dunteachin Farm. With no other heirs and a deep love for the School, it was a logical decision.

As the real estate market expanded and the demand for land in Howard County grew, discussions about John’s gift intentions developed. The land was extremely valuable and John received a $6 million offer in September 1988 for residential construction. John had lost interest in farming and had no source of income so the deal was quite attractive.

After consulting with members of McDonogh’s Board of Trustees and outside advisors, Sieverts and Associate Headmaster Jim Dawson ’64 introduced John and Sarah to the idea of a planned gift known as a Charitable Remainder Unitrust (CRUT) to achieve their philanthropic and financial goals. Under the arrangement, the Nicolais would receive income for life if they funded an irrevocable trust from the sale of their farm, with McDonogh ultimately as the sole beneficiary. John and Sarah thought this was a perfect way to make a significant gift to McDonogh while protecting themselves financially during their lifetime.

With the details complete, the Land Use Committee of McDonogh’s Board of Trustees assumed responsibility for the sale of the farm and planned to offer it as 119 building sites. However, the plan hit a roadblock when in May 1990, with site work underway and six offers in hand, Howard County imposed an 18-month moratorium on all residential construction. The value of the land dropped to nearly nothing. The timing coincided with a nationwide construction recession, further affecting the value of Dunteachin Farm. Despite the setbacks, the School slowly moved forward—partially developing the land by installing key underground utilities and designing the building plans and road layout—as they awaited the market’s rebound.

AN EXTRAORDINARY OUTCOME

In January 1993, after several years of extensive planning, engineering, and predevelopment efforts, the School, under the direction of Jay Ghingher ’62, President of the Board of Trustees, solicited offers for Dunteachin Farm. Within months, the property was sold and the net proceeds, minus development expenses and McDonogh’s interest, were used to fund two CRUTs. Per the terms of the agreement, the Nicolais received monthly income from the trust throughout the course of their lives.

John passed away in 2011 and his trust was transferred to Sarah. Upon her death in 2021, McDonogh became the sole beneficiary. With careful fund management and advantageous market conditions, the trust increased significantly in value, despite 30 years of income payouts. In the end, the Nicolais’ planned gift—the result of a series of thoughtful and heartfelt conversations in the 1980s—was worth $5 million. It will benefit the School and students for generations to come.