Transferable Development Rights

1. Transferable Development Rights A Program for Agricultural Land Preservation in Southeast Lee County Presented to the Lee County Board of County Commissioners October 26, 2009 James C. Nicholas University of Florida

2. Transferable Development Rights • TDR – a way to provide alternate economic use of lands that still can be farmed or sold for preservation. • TDR allows the owner of the land not to be developed to sever and sell a specified number of development rights to others for them to use on land suitable for development.

3. There is a sending area – • Where development is sent from • A receiving area • Where development is sent to

4. Sending Area Receiving Area

5. The Experience with TDR • About 130 TDRprograms have been reported in the United States • 39% or 51 programs are considered to be successful

6. Why such poor record? • TDR programs are not easy • Most TDR programs have little if any public support • Many local governments will not do what it takes to have a successful TDR program. • But there are many TDR programs that do work.

7. Why do so many TDR programs fail? • No designated receiving areas • Use of TDR in receiving areas is not by right, but required further approvals • Local governments undercut the program by approving development without TDRs.

8. Some Successful Experiences • Montgomery County, Maryland • Central Pine Barrens of Long Island (Suffolk County) • Collier County, Florida

9. Montgomery County,Maryland Agricultural Preservation TDR

10.  Washington

11. Ex-Urban Agricultural Preservation Areas Active Agriculture Rural Non- Agriculture Germantown Gaithersburg Urban Potomac Silver Spring Bethesda

12. Montgomery County • Adopted agricultural zoning – THE SENDING AREA • Enforcing minimum lot size of 25 acres in • agriculturally zoned acres. • Provided for “infill” development in the urban areas – THE RECEIVING AREAS • Also purchased conservation easementson agricultural land from general funds.

13. The TDR Program • Sending Area Property Allowed • 1 Dwelling Per 25 Acres, plus • 1 TDR Per 5 Acres • A TDRhas sold for as much as $40,000. Today none are available. • Montgomery County would not rezone in the Sending Area and the ONLY way to increase density in Receiving Areas is with TDR.

14. Open Space Preservation • 93,252 acres protected from development by purchase of easements. • An additional 40,000 acres protected from development by Transferable Development Rights. • 42% of Montgomery County’s land area protected from development (133,252 of 316,800 acres).

15. The Central Pine Barrens of Long Island, Suffolk County, New York

16. Long Island Pine Barrens 55,000 acres 47,000 acres

17. The Sending Area

18. The Central Pine Barrens • Sandy low fertility soil along the center of the island. • Under that sandy soil is a sole source aquifer that serves 750,000 people. • And a habitat forthreatened orendangered species

19. The Program • Allocated one “development right” to each buildable lot within the preservation Area (no change in zoning or permitted use). • Did not provide for any development infrastructure within the preservation area • Authorized increases in development in the Compatible Growth areas.

20. Commission created “Pine Barrens Credit Clearing House” to design and implement a TDR program, to be known as “Pine Barrens Credits” or PBC. • Worked with land owners to calm their fears and with builder/developers to create interest and to design a program of value to them. • Obtained funds from the NY Assembly ($8M) to offer to buy PBCs, thereby assuring that value.

21. The Credit Clearing House • Purchased a number of PBCs from individuals at an average price of about $12,000. The rights purchased were resold and the proceeds paid back to State of New York • The PBCshave sold at prices of $80,000 and higher (2009).

22. Collier County

24. Rural Fringe Area

25. Sending Areas Receiving Areas

26. Collier County

27. Lee County’s DR/GR Area • Gathered 991 land sales • May 2004 • November 2008 • 385 inside the DR/GR • 606 outside the DR/GR • 104 usable sales in DR/GR • 176 usable sales outside DR/GR

28. Lee County’s DR/GR Area

29. Land Sales in & around DR/GR

30. Price per Acre

31. Price per Lot as Lot Size Decreases

32. Price per Acre as Density Increases

33. In the DR/GR . . . • It would appear that there would be an economic return from increasing density • This would indicate that a TDR program would be economically viable

34. DR/GRTDRs • Types of Land:

35. Potential TDRs

36. Potential Use of TDRs 5,300 TDRs created and 5,900 used

37. DR/GRTDRs • Analysis of sales data indicate • TDR should sell for as much as $16,000 • Range is from $6,000 to $18,000

38. Options for Property Owners • A voluntary program is envisaged, no one will have to participate • Continue with the status quo and see what happens • Sell TDRs and keep farming or sell the land • Seek approval for ranchette development, if land and market are suitable

39. How to Make a TDR Work • Engage Stakeholders • Identify a Sending Area – the area from which development is to be transferred • Establish the Remaining or Residual Uses Available to Sending Properties • Identify Receiving Areas • Estimate TDR Values and Allocate Values to Sending Properties

40. Make TDR Work Cont. • Make TDR Use By Right in Receiving Areas This Counters the Lack of Willingness to Have Increased Density Nearby and Gives Real Use Value to TDR • Make it All Part of a Comprehensive Plan All of these have been done