Presentation on theme: "Transfer of Development Rights Policy"— Presentation transcript:
1 Transfer of Development Rights Policy Environmentally Sensitive Lands Oversight CommitteeJune 7, 2012
2 Stages of TDR Program 2050 policies adopted by Commission contain a TDR program2050 required codification of programZoning Code codified 2050 TDR policyTDR program implementation process requiredCommission directed staff to develop processImplementation process considerations
3 Commission DirectionESLOC to consider program elements and make a recommendation(s) to the CommissionPricing MethodologiesPilot Program ImplementationRevenue Distribution Amendment
4 Today’s Presentation Overview of TDR program Introduction to 2050 frameworkIntroduction to TDR policiesChronology of eventsDiscussion of current proposal
5 Transfer of Development Rights Basics One TDR unit represents the right to build one housing unit.The basic concept of a TDR program is to transfer the development right from one property to another with the purpose being to preserve environmentally sensitive lands.Lands with the most sensitive habitats are assigned relatively high transfer rates to lands with lesser environmental value.
6 Sarasota County’s TDR Program Sarasota County’s transfer of development rights program is designed to effectuate Village, Hamlet, and Settlement development anticipated in the Sarasota 2050 plan while augmenting the purchase of environmentally sensitive lands and protect our most valuable habitats and habitat corridors.Open Space (1000 acres)Greenway RMAOff Site TransferOpen Space (1000 acres)Greenway RMAOff Site Transfer
7 County-owned TDRsInvolves shifting development rights from one private property to another private property seeking to develop at a more intensive level with the result being preserved lands.Sarasota 2050 policy established the ability for publicly- owned TDRs to be derived from publicly acquired lands.The County currently owns many acres of land acquired by the County through programs such as the Environmentally Sensitive Lands Protection Program (ESLPP) that have the potential of producing publicly-owned TDRsIt has been estimated that the County may havethe ability to establish close to 10,000publicly-owned TDRs.
9 Village/Open Space RMA Sarasota 2050 PolicySarasota 2050 establishes Resource Management Areas (RMA) for both sending and receiving TDRs.Village/Open Space RMAGreenway RMA
10 Sarasota 2050 Policy Villages Hamlets Greenway Sarasota 2050 Figure RMA-3Village/Open Space RMALand Use MapVillages Hamlets Greenway
11 TDR Policies - Zoning Code Sarasota County Zoning Regulation SecSec b3 states that TDRs shall only be from County designated sending sites to so designated receiving sites.Sec c2 qualifies those lands eligible to be designated a sending site for publicly-owned TDRs as those acquired by the County after July 7, 2002.Sec c4iii states that the County Commission shall set the price for publicly-owned TDRs based on current market values and any recommendation of Planning & Development Services.Sec c5 provides that all revenue from the sale of publicly-owned TDRs shall be allocated to the Environmentally Sensitive Lands Acquisition Program.
12 ChronologyJan. 2011: County Commission initiates discussion and establishes Board Assignment BA11005 ‘ESLIPP Development Rights’.Mar. 2011: Board Assignment Report Presented.Background on TDR Program provided.Inventory of potential County-owned TDRs provided.Long-term cost of preserved land management raised.County-owned TDR valuation methods discussed.County Commission requested:further information on TDR valuation methodsa separate report on land management costs
13 Chronology continuedApr. – Sept. 2011: Firm of Hettema Saba LLC hired to analyze and report on a suggested method for the County to set a price on County-owned TDRs.Sept. 2011: Report on Land Management OperationsOct. 2011: Hettema Sabe report presented with recommendations for County-owned TDRs:That TDR pricing be percentage based.That it be tied to the receiving site enhanced value.That it be calculated on actual unit selling prices.That the percentage range be 1.5% to 3.5% of unit sale.County Commission request:further information on TDR valuation methods used byother jurisdictions.
14 TDR Pricing Methodologies Method One: TDR price based on county acquisition cost of sending site.Method Two: TDR price based on receiving site enhancement value.Method ‘A’: TDR price based on future market conditions of receiving site enhanced value.Method ‘B’: TDR price based on market conditions both current and future of receiving site enhanced value.
15 TDR Pricing Methodologies Method One is based on the value derived from the sending site.Hettema Saba example: $6,615Gross Av. County Cost: $5,128Method TwoReceiving SiteMethod OneSending SiteMethod Two is based on the value added to the receiving site.Hettema Saba example: $3,438 representing a percentage of the enhanced value added to the receiving site by the TDR.
16 TDR Pricing Methodologies Method ‘A’ is based on the value added to the receiving site collected as a development is constructed to allow for changing market conditions.Method ‘A’ & ‘B’Receiving SiteMethod ‘B’ is based on the value added to the receiving site partially collected with the establishment of the sending and receiving sites, and the remaining portion when the resulting unit is sold.
17 TDR Pricing Methodologies Other Jurisdictions FindingsOther jurisdictional methods for pricing publicly-owned TDRs:35 jurisdictions contacted30 respondedKing County of Washington State had incorporated the ability to sell publicly-owned TDRs within their program and had sold them.King County bases the TDR price on individual site appraisals for each sending site.There may be other TDR programs in existence that incorporate the selling of publicly-owned TDRs, however the selling of publicly-owed TDRs is not a common practice.
18 TDR Pilot Program Identify all eligible ‘sending zone’ lands acquired Quantify potential TDRs from said acquisitionsDetermine plausibility from relevant acquisition documentation.Select acquisition(s) with minimal complications
19 TDR Pilot Program (continued) Calculate TDRs derivable utilizing ground verified habitat dataDetermine the actual county cost per TDRPrepare a draft conservation easement document.Board declares ‘surplus TDRs’Hold for potential implementationPromote pilot program throughCounty’s web site
20 TDR Revenue Distribution 2050 (Policy TDR 1.2)“proceeds of any sale shall be used to purchase additional environmentally sensitive lands”Zoning Code (Section c.5)“The revenue from the sale of Development Rights from the TDR bank shall be allocated to the Environmentally Sensitive Lands Acquisition Program”
21 TDR 2050 Policy Amendment 2050 policy Zoning Code policy Only purchase of real property/CEZoning Code policyReferences the “program”The “program” includes managementCurrently program revenue allocated90% Acquisition 10% Management
22 TDR 2050 Policy Amendment2050 amendment would create consistency with Zoning CodeAuthorize use of a % of any TDR revenue for managementRecommended proportion = same as program (90% acquisition: 10% management)
23 TDR Program Implementation Recommended ActionThat County policy for the value of a publicly-owned TDR be up to 5% of the end unit sales price collected in two payments, with the 1st at initial establishment of sending/receiving sites and the 2nd at the time of actual unit sales.That a pilot program be initiated in accordance with the steps provided within the staff report dated May 23, 2012.That a proposed County-initiated Comprehensive Plan amendment be prepared that modifies policy TDR 1.2 to allow for a portion of sales revenue from County-owned TDRs to be used for land management costs associated with those lands being preserved, pursuant to Sarasota County Code Section
24 Commission DirectionESLOC to consider program elements and make a recommendation(s) to the CommissionPricing MethodologiesPilot Program ImplementationRevenue Distribution Amendment