Reconciling Development and Conservation:
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1 Reconciling Development and Conservation: Applying Transfer of Development Credits (TDC) Programs in Alberta Guy Greenaway and Kimberly Good Miistakis Institute Alberta Association of Municipal Districts and Counties Fall 2009 Convention November 17, 2009 Edmonton, AB
2 Outline Why a TDC Program Who uses TDC s What is a TDC program Example Scenarios A Glance at Three American Programs Current efforts in Alberta
3 Why a TDC Program?
4 From Transfer of Development Rights: A Flexible Option for Growth in Pennsylvania, Brandywine Conservancy
5 From Transfer of Development Rights: A Flexible Option for Growth in Pennsylvania, Brandywine Conservancy
6 From Transfer of Development Rights: A Flexible Option for Growth in Pennsylvania, Brandywine Conservancy
7 From Transfer of Development Rights: A Flexible Option for Growth in Pennsylvania, Brandywine Conservancy
8 Why a TDC Program? Directs development away from areas where it is not appropriate to areas where it makes best sense Conserves valued landscapes at minimal public expense Avoids win-lose zoning scenarios, ensuring landowners suffer no serious property value reductions in zoning-only approaches Allows large groups of parcels to be conserved in contrast to parcel-by-parcel clustering techniques
9 Who Uses TDC Programs?
10 Who Uses a TDC Program? Americans Some Canadians Municipal governments, and the landowners they represent Communities facing rapid growth, rapid land conversion Communities worried about loss of valued landscapes
11 What is a TDC Program?
12 Quick Background In the U.S. since mid-60s Varying degrees of success Limited activity in Canada First comprehensive, rural attempt Cypress County, 2003 Vancouver, Calgary, Toronto Gaining prominence in Alberta (Alberta Land Stewardship Act)
13 Determine the area to which the TDC program will apply
14 Designate sending (conservation) areas and receiving (development) areas
15 Assign a development credit to each parcel
16 Developers purchase credits from other parcels Development potential is extinguished on sending parcels
17 $
18 $
19 ? $
20 MUNICIPALITY $ $
21 MUNICIPALITY $ $
22 MUNICIPALITY $ $
23 MUNICIPALITY or TDC BANK or BROKER $ $
24
25 (CONSERVATION AREA) (DEVELOPMENT AREA)
26 Features of TDC Programs Municipal planning tool for promoting land conservation in the face of significant land conversion pressure May be initiated by Council, community, developers, conservationists, etc. Supports a community vision
27 Features of TDC Programs Hallmark: Method for deed-restricting development (e.g., conservation easements) Hallmark: Market-based system for transferring credits; may be assisted (e.g., brokered) Successful TDR programs are never lonely, never stagnant!
28 Features of TDC Programs Many ways for determining sending areas and receiving areas Credits may be based on development / conservation potential May be for a region, an entire county, multiple counties
29 Example Scenarios Not Real Examples!!
30 Agricultural / Urban Fringe
31 Valuable agricultural land
32 Valuable agricultural land Allows first parcel out
33 Valuable agricultural land Allows first parcel out Designate as TDC sending area ; 5120 ac Assign credits to parcels 1 credit per 5 ac; total 1024 credits
34 Landowners on 2080 ac offer credits for sale Total = 416 credits
35 Landowners on 2080 ac offer credits for sale Total = 416 credits Credits eligible for transfer to urban fringe receiving area
36
37
38 New development = 240 ac Base zoning = 10 ac lots
39 New development = 240 ac Base zoning = 10 ac lots Zoning with TDC = 2 ac lots
40 New development = 240 ac Base zoning = 10 ac lots Zoning with TDC = 2 ac ac = 24 ac = 100 TDC requires 5 credits / bonus unit
41 Additional lots = 76 Credits needed = 380
42 $3,000 / credit Additional lots = 76 Credits needed = 380 Credits = $3,000 each Units sell for $300,000 each Revenue from 76 lots = $22,800,000 Credits cost = $1,140,000 Additional revenue = $21,660,000
43 Additional lots = 76 Credits needed = 380 Credits = $3,000 each
44 Additional lots = 76 Credits needed = 380 Credits = $3,000 each Units sell for $300,000 each Revenue from 76 lots = $22,800,000 Credits cost = $1,140,000 Additional revenue = $21,660,000
45 Urban fringe
46 Urban fringe Within urban growth area
47 Urban fringe Within urban growth area Rationalization of development standards
48 Urban fringe Within urban growth area Rationalization of development standards Inclusion in the urban area
49 Remaining credits = 644 Land conserved = 1,900 acres
50 Headwaters / New Hamlet
51
52
53
54
55 1 / 40 ac Bonus: 1.5 / 40 ac within 500m of water
56 1 / 40 ac Bonus: 1.5 / 40 ac within 500m of water 7440 ac = 239 credits 4880 ac = 149 credits Total = 388 credits
57
58
59
60 Total Area = 160 ac Developable = 80 ac
61 Total Area = 160 ac Developable = 80 ac Allowable Density = 4 units / ac TDC Density = 10 units / ac Need 2 TDC credits / unit
62 4 units / acre Units sell for $500,000 each
63 4 units / acre Units sell for $500,000 each 1 acre = $2,000,000
64 10 units / acre Units sell for $300,000 each
65 10 units / acre Units sell for $300,000 each
66 $10,000 / credit 10 units / acre Units sell for $300,000 each 1 acre = $3,000,000 2 credits / unit = 20 $10K / credit =$200,000 1 acre = $2,800,000
67 10 units / acre Units sell for $300,000 each 1 acre = $3,000,000 2 credits / unit = 20 $10K / credit =$200,000 1 acre = $2,800,000
68 4 units / acre 1 acre = $2,000, units / acre 1 acre = $2,800,000
69
70
71
72 10 acres in New Town 4 units / acre
73 10 acres in New Town 4 units / acre 40 $500,000 each Total = $20,000,000
74 10 acres in New Town 10 units / acre
75 10 acres in New Town 10 units / acre 100 $300,000 each Total = $30,000,000
76 10 acres in New Town 10 units / acre 100 $300,000 each Total = $30,000,000 Less 200 $10,000 each = $2,000,000 Total = $28,000,000
77 Conservation easements placed
78 Conservation easements placed 3600 ac in Upper Area 2400 ac in Lower Area Total = 6000 acres
79 A Glance at Three American Programs
80 Larimer County, Colorado - Purpose Long term desire to keep two cities separated Different cultures between cities Farmland Viewscapes Important Bird Habitat Airport zone Hiking trails Wildlife Corridors
81 Larimer County Establishing Areas
82 Montgomery County, Maryland - Purpose Significant land use conversion after WWII from agricultural to residential
83
84 Calvert County, Maryland - Purpose
85
86 Current efforts in Alberta
87 Municipal Efforts AAMD&C THEREFORE BE IT RESOLVED that the AAMD&C lobby the provincial government to implement enabling legislation at the provincial level to facilitate and guide the development of a Transfer of Development Rights program that includes the ability to register these rights on the land title. (Fall 2006 Convention) AUMA Encourage use of Transfer Development Credits (TDCs) as a growth management strategy by piloting a provincially supported planning/financial aid program for high growth municipalities to develop a TDC scheme (2007 President s Summit Land Use Planning Paper)
88 Municipal Efforts (cont.) M.D. of Bighorn Amendments made to MDP and LUB to allow Transfer of Subdivision Density (TSD) Area Structure Plan (Carraig Ridge) includes proposed TSD Project with LUS, Miistakis to review policy, and lessons learned for ALSA regs
89 Municipal Efforts (cont.) Beaver Hills Initiative Beaver Hills (geographically shared across Elk Island National Park, and Strathcona, Lamont, Beaver, Camrose, and Leduc Counties) Alberta Research Council carried out a feasibility study to identify MBI s (including TDCs) - positive Background studies provided clearly stated and publicly acceptable goals and objectives identified in the BHI Land Management Framework Strong demand for future development including the Industrial Heartland Inter-jursidictional opportunity
90 Research and Application Miistakis Institute Actively investigating feasibility of TDC tool for Alberta since 2006 Visited programs in Colorado and Maryland Working with M.D. of Bighorn and Beaver Hills Initiative Providing support to Government of Alberta Currently: Developing model applicable provincewide
91 Policy & Legislation Alberta Land Stewardship Act (ALSA) Legal foundation for Land-use Framework and Regional Plans Proclaimed October 2009 Part 3: Conservation and Stewardship Tools deals with TDCs
92 Policy & Legislation Who Can Establish a TDC Program? A regional plan A local authority (with provincial approval) Two (2) or more local authorities (with provincial approval)
93 Policy & Legislation Components a TDC Program MUST Include Designation of conservation lands environment scenic values agriculture (**NEW**) historic resource Identification of those parcels Attributes of the TDC stewardship units Terms of stewardship unit realization or use Designation of development area Other (regs)
94 Policy & Legislation Requirements for Municipalities re: TDCs TDC provisions in MDP, ASP, LUB, IDP, other bylaw For two municipalities: Written agreement re: TDC program TDC provisions in MDP, ASP, LUB, IDP, other bylaw Other (regs)
95 Policy & Legislation Stewardship Units Managing the holding, use, sale, trading, exchange, lease, assignment and disposition of Stewardship Units How created and by whom, types and classes (including TDC credits), attributes of those Units Establishment of a registry Delegating to a Designated Minister, a local government body or a decision maker any authority, function or requirement with respect to the use, imposition or extinguishment of a stewardship unit Stewardship Unit is NOT an interest in land
96 Policy & Legislation The Exchange (subject to Regs.) Province may establish an Exchange Authority to create, hold, issue, approve, verify, authenticate, distribute, modify, suspend or extinguish all or part of a stewardship unit Authority to establish/administer programs Authority to register stewardship units, require reporting
97 Policy & Legislation Next Steps Act proclaimed but Regulations yet to come Much of the meat of ALSA in the Regs Conservation and Stewardship Strategy being developed by Land Use Secretariat (LUS) and IAFE; includes TDCs Conservation and Stewardship Strategy Green Paper currently being developed, which will test the CSS concepts and directions Consultation on the CSS Green Paper early 2010; finalize strategy mid-2010
98 Guy Greenaway and Kimberly Good Phone: s: Web:
ALSA$Tools$and$ Municipali1es$$
ALSA$Tools$and$ Municipali1es$$ An#informa*onal#webinar#series# Transfer of Development Credits Guy#Greenaway# Miistakis#Ins*tute## Planning for Conservation and Development An Overview of the Transfer
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