Transferable Development Rights Edmonton, Alberta

Transcription

1 Transferable Development Rights Edmonton, Alberta Rick Pruetz, FAICP I. TDR Background II. Success Factors III. Program Design

2 TDR Market-based Works with zoning code TDR encourages voluntary redirection of growth From sending areas To receiving areas TDR Basics

3 Sending site owners can choose not to use TDR Or choose TDR Record easement restricting development Create number of TDRs allocated by code Sell TDRs as compensation for preservation

4 Receiving area developers can choose non-tdr option Don t buy TDRs Build at or below baseline

5 Or choose TDR option: Buy TDRs Exceed baseline density limits Achieve more profit

6 Benefits to Landowners Continue to own land Income from activities allowed by easement Compensation: liquidate development value with little cost, effort and risk Property tax reduction typical Better than restriction without chance of compensation Improves confidence in long-term viability of farmland and rural uses Montgomery County: counteract impermanence syndrome 92,000 acre Agricultural Reserve downzoned Over 60,000 acres now under permanent easement

7 Achieve development levels not otherwise allowed Build public/political support for development formats typically challenged When TDR works, developers increase income despite TDR cost because Meeting consumer demand Additional revenue from additional development Efficiencies of compact infrastructure and scale Collier County RLS Smart growth new town allowed in return for preservation surrounding land (56,000 acres so far) Benefits to Developers

8 Benefit to Communities Communities implement preservation as well as development goals with little of no reliance on taxes New Jersey Pinelands One million acres Regional plan designated areas for growth and preservation 60 jurisdictions conformed zoning 23 jurisdictions created receiving areas for regionwide inter-jurisdictional transfers 58,900 acres preserved

9 Comparison of Tools Compensate Optimal Growth Pattern Permanent Cheap Simple Zoning No Maybe No Yes Yes Cluster Yes No Yes Yes Yes PDR Yes Yes Yes No Yes TDR Yes Yes Yes Yes Maybe

10 TDR History: US 1968: New York City Landmarks Preservation Law 1978: Penn Central v. NYC: U.S. Supreme Court validated TDRs 2010: Over 240 programs 34 states Preserved over 435,000 acres

11 Where used in US?

12 US TDR program goals Of 247* TDR programs: 82 environment & farmland 77 environmental 46 farmland 20 historic preservation 22 other (housing, infrastructure, urban design, revitalization) * Some communities have multiple programs

13 Non-US TDR Programs Australia China France India Italy Japan Mexico Canada: Vancouver Toronto Image: SeeVancouverHeritage.com

14 King County, WA: 141,400 acres New Jersey Pinelands: 58,900 Collier County, FL (RLS): 54,962 Montgomery County, MD: 52,052 Palm Beach County, FL: 35,000 Calvert County, MD: 13,896 Queen Anne s Co., MD: 11,176 Sarasota County, FL: 8,200 Pitkin County, CO: 6,976 Boulder County, CO: 5,900 San Luis Obispo County, CA: 5,463 Blue Earth County, MN: 5,360 Howard County, MD: 4,525 Payette County, ID: 4,200 Miami-Dade County, FL: 4,145 Charles County, MD 4,089 Rice County, MN: 3,850 Douglas County, NV: 3,728 Collier County, FL (RF): 3,519 Chesterfield, NJ: 2,272 TDR Success Factors Compared top 20 US programs with 10 mostcited features

15 Top Ten TDR Success Factors 1 Demand for Bonus Development 2 Customized Receiving Areas 3 Strict Sending Area Regulations 4 Few Alternatives to TDR 5 Market Incentives 6 Certainty of TDR Use 7 Strong Public Preservation Support 8 Simplicity 9 Promotion & Facilitation 10 TDR Bank

16 Success Factor 1 Demand for Bonus Development Developers must want to exceed baseline If not, communities have at least four options: A) Downzone Not just to create demand To meet all land use goals San Francisco, CA Calvert County, MD

17 Success Factor 1 Option B Promote Smart Growth Density Allow and encourage compact, pedestrian- friendly neighborhoods Work with developers Chesterfield, NJ

18 Success Factor 1 Option C Tie TDR to Future Growth Upzoning applications are common in US Require TDR for development resulting from up-zonings Livermore, CA: General plan amendments identify areas right for future upzonings

19 Success Factor 1 Option D Demand for Bonus Development Other than Density Bonus Building floor area Floor area of individual DU Less than required density Acres developed Land coverage Permit quotas Exceed parking limits

20 Success Factor 2 Customized Receiving Areas Type A: Infill areas Can achieve redevelopment plus open space preservation Reluctance since revitalization often of equal or higher importance Livermore, CA exempts downtown South Lake Tahoe, CA: TDRs used to rebuild core also restore alpine meadows

21 Success Factor 2 Customized Receiving Areas Type B: Expanding Urban Edge Adjacent to jobs, schools, infrastructure Often planned for conversion from rural to urban Change to urban zoning can include TDR requirement for units in excess of maximum density of former zoning Disadvantage: Also adjacent to existing neighborhoods

22 Type C: Satellite Communities, New Towns & New Villages Promotes public support by proximity of sending and receiving areas New towns combat NIMBY-ism by isolating new growth from existing residents Success Factor 2 Customized Receiving Areas Source: Montgomery County

23 Success Factor 2 Customized Receiving Areas Type D: Rural sites Not ideal land use But rural development can preserve land if it is likely to occur with or without TDR Blue Earth County, MN: 40 acres preserved per 10-acre bonus lot Calvert County, MD: One unit per four acres with TDR

24 Success Factor 2 Inter-Jurisdictional Type E Type E-1: Implement regional goals State Imposed New Jersey Pinelands Bi-State Tahoe Regional Planning Agency requires acceptance of inter-jurisdictional transfers of some marketable commodities

25 Type E-2: Implement regional goals voluntarily Seattle, WA accepts TDRs from land under King County Per agreement, King County funds some improvements in Seattle Primary motivation: protect green infrastructure, habitat and rural character miles beyond city limits King County TDR saved 141,000 acres to date Success Factor 2 Inter- Jurisdictional Type E

26 Boulder County, CO Cities voluntarily agree to accept TDRs from land under County jurisdiction to implement greenbelts, community separators Warwick, Orange County, NY Annexed land zoned Annexation District (AD) AD baseline is maximum density of prior Town zone Bonus for compensating amenities or cash-in-lieu of $50,000/BDU 25% to protect Village watershed needs within Town 30% Town discretion 45% Village discretion Success Factor 2 Inter- Jurisdictional Type E 3 Sub-Regional

27 Success Factor 3 Strict Sending Area Regulations Owners motivated by constraints: terrain, lack of infrastructure, location Strict sending area regulations: Implement plan Show commitment to preservation (Montgomery Co.) Of 20 leading TDR programs All but 2 limit zoning to 1/5 acres or less Environmental regulations also help (Dade County, FL)

28 Success Factor 4 Few Alternatives to TDR Many programs fail when developers can get bonus development by: Project amenities Other approval methods Requesting exceptions Alternatives hamstring TDR Of 20 leading programs, 17 allow few ways to circumvent TDR New Jersey Pinelands Commission reviews land use decisions of 60 jurisdictions to ensure application of TDR

29 Success Factor 5 Example: TDR allocation ratio Assume Developers will pay $10,000 per bonus dwelling unit One bonus unit per TDR Sending area owners will accept $2,000 per preserved acre Allocation ratio of one TDR/ five acres should satisfy all parties Allocation rate might not equal onsite density limit - Montgomery County Market Incentives

30 Success Factor 6 Certainty of Ability to Use TDR Minimize discretion - developers dread Delays Cost increases Last-minute project changes Possibility of disapproval Of 20 leading programs, 14 offer reasonable certainty Collier County RLS

31 Success Factor 7 Strong Public Preservation Support Public support: Allows elected officials to adopt workable programs Minimizes exceptions over decades needed for completion Of 20 leading TDR programs, 13 also had PDR, TDR bank and/or voter-approved conservation taxes

32 Success Factor 8 Simplicity Simplicity builds support needed from diverse constituency: landowners, developers, preservationists, homeowner organizations and general public Of 20 leading programs, 13 are simple - Blue Earth County, MN Sometime complexity is inevitable: landowners devised complex allocation formula in Collier County, FL RLS

33 Success Factor 9 TDR Promotion & Facilitation Help developers and landowners use TDR Remind public of program benefits New Jersey Pinelands program Facilitates transfers Conducts research Provides curricula and programs to schools Organizes hikes, canoe rides, wildlife watching opportunities

34 Success Factor 10 TDR Bank TDR banks public entity buys and sells TDRs Land trusts and others can also perform intermediary role Of 20 top programs, only 4 had official banks but banks produced great results King County, WA bank alone preserved over 90,000 acres Palm Beach County, FL banked TDRs from land purchased with bond and sells them for price adjusted annually ($50,000)

35 Cash in Lieu Compliance assurance Targeted preservation Leverage other revenues and/or supplement PDR funding Can simplify administration Berthoud, CO: Preserve one acre or pay cash in lieu No TDRs to allocate, issue, track or retire Developers choose whatever is easiest (appeals most to small projects) Use proceeds to match state grants Compliance via Cash in Lieu of TDR Used by Over 20 US Communities

36 Top Ten TDR Success Factors 1 Demand for Bonus Development 2 Customized Receiving Areas 3 Strict Sending Area Regulations 4 Few Alternatives to TDR 5 Market Incentives 6 Certainty of TDR Use 7 Strong Public Preservation Support 8 Simplicity 9 Promotion & Facilitation 10 TDR Bank

37 Prerequisites General Plan designates areas for future upzoning Elected officials willing to adopt TDR overlay on future upzonings TDR Overlay establishes Baseline: Maximum density of previous zoning Bonus Development: Everything above baseline TDR Requirement: Each bonus DU or 1,000 sf of bonus floor area requires specified TDRs or Cash in lieu (Livermore $15,000) TDR Program Design: One Option Phase One: Plan- Consistent Mechanism

38 Receiving Area Details TDR Demand Increased TDR units not affected by dwelling unit quota TDRs usable for this and/or to exceed baseline But City Council exempted downtown from TDR overlays Source: Marc Roberts, Livermore CDD

39 Sending Area Decisions Sending area size Location: Livermore is inter-jurisdictional Easement requirements TDR allocation rates that create viable market Livermore increases TDR allocation for property owners willing to exceed minimal preservation Foregoing a house on existing parcel Removing existing house TDR Program Design: One Option Phase One: Plan- Consistent Mechanism Source: Marc Roberts, Livermore CDD

40 TDR Program Design: One Option Phase One: Plan- Consistent Mechanism Facilitates adoption: No need to adopt densityincreasing plan-amendments Reduces controversy: TDR receiving areas already approved by adopted plan Avoids time and expense of extra studies No change in upzoning process or criteria Ordinance automatically accommodates future planning/zoning changes Can put a workable preservation tool in place in less than one year Source: Marc Roberts, Livermore CDD

41 Future general plan updates Identify more areas to be upzoned Facilitated by Phase One successes These become receiving areas when upzoned Using general plan update Reduces controversy: Decisions occur in the general plan process Saves time and expense: Infrastructure/environmental analysis done for the general plan Encourages jurisdictions to Plan for community as a whole Implement preservation as well as development goals of the general plan TDR Program Design: One Option Phase Two

42 More Information Website: BeyondTakingsAndGivings.com TDR program profiles TDR news TDR studies TDR-Less TDR Revisited TDR-Ready Communities TDR Turns 40