East Lyme — The Board of Selectmen unanimously voted Wednesday to approve contributing $350,000 to preserve a 166-acre parcel at the headwaters of the Niantic River that would be owned by a Massachusetts nonprofit organization.

The selectmen's vote is the first step in the process. The proposal next will go to the Board of Finance, and if approved by that board, to residents.

The parcel proposed for open space, with an entrance by Goldfinch Terrace and Cedarbrook Lane, is north of Interstate 95 and near the town's border with Waterford.

Under the proposal, the town would contribute $350,000 for the parcel, owned by KSK Associates LLC, while a state grant would fund $500,000 of the purchase. The remainder of the $1.225 million acquisition price for the parcel would be funded by the New England Forestry Foundation. The state and the town would hold conservation easements on the property, while the foundation would own it.

Stephen Harney, the town's Board of Finance chairman, is the managing member of KSK Associates. He said he will recuse himself from the finance board's discussion and vote.

If the deal is approved by the finance board and residents, the selectmen passed a resolution Wednesday that stipulates the town would pay $350,000 for the easement, only if the $500,000 from the state grant and $375,000 from private and public funding by the New England Forestry Foundation were firmly in place at the time of the property's closing.

The resolution also states that the terms of the conservation easement must be satisfactory to the town attorney and Board of Selectmen. The Planning Commission has to review and submit a report on the parcel.

Whitney Beals, the foundation's director of land protection, said the foundation would develop a sustainable forest management plan for the land and establish a management committee that would include representatives from town boards and the East Lyme and Niantic Land Conservation Trust to provide input. The preserved open space would include public trails.

The selectmen voted 5-0 to approve moving the proposal forward to the Board of Finance. First Selectman Mark Nickerson has recused himself from the discussions and vote due to a personal conflict.

In discussions, the selectmen said they believe this parcel is worth preserving as part of an area the town is interested in as contiguous open space. The value of preserving the parcel was recognized in letters sent to the property owner five years ago from town commissions, they said.

The selectmen also discussed at length what it means for the town to hold a conservation easement on a property, rather than own it outright.

Selectman Marc Salerno said he felt there may be more value in the town owning the property, but the proposal in front of the selectmen is for the town to hold a conservation easement on it. He favored letting the voters decide.

k.drelich@theday.com

Twitter: @KimberlyDrelich