Transfer of Development Rights Policy

Environmentally Sensitive Lands Oversight Committee

June 7, 2012

Stages of TDR Program • 2050 policies

– adopted by Commission– contain a TDR program– 2050 required codification of program

• Zoning Code codified 2050 TDR policy

• TDR program implementation process required

• Commission directed staff to develop process

• Implementation process considerations

Commission Direction

ESLOC to consider program elements and make a recommendation(s) to the Commission

•Pricing Methodologies

•Pilot Program Implementation

•Revenue Distribution Amendment

Today’s Presentation

• Overview of TDR program

• Introduction to 2050 framework

• Introduction to TDR policies

• Chronology of events

• Discussion of current proposal

Transfer of Development Rights BasicsOne 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.

Sarasota County’s TDR Program

Open Space (1000 acres)

Greenway RMA

Off Site Transfer

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 RMA

Off Site Transfer

Involves 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 TDRs

It has been estimated that the County may have the ability to establish close to 10,000 publicly-owned TDRs.

County-owned TDRs

County-owned TDRs

Sarasota 2050 establishes Resource Management Areas (RMA) for both sending and receiving TDRs.

Village/Open Space RMA

Greenway RMA

Sarasota 2050 Policy

Sarasota 2050

Figure RMA-3

Village/Open Space RMA

Land Use Map

Villages Hamlets Greenway

Sarasota 2050 Policy

TDR Policies - Zoning Code Sarasota County Zoning Regulation Sec. 11.2.13.

Sec. 11.2.13 b3 states that TDRs shall only be from County designated sending sites to so designated receiving sites.

Sec. 11.2.13 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. 11.2.13 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. 11.2.13 c5 provides that all revenue from the sale of publicly-owned TDRs shall be allocated to the Environmentally Sensitive Lands Acquisition Program.

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 methods– a separate report on land management costs

Apr. – 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 Operations

Oct. 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 by other jurisdictions.

Chronology continued

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.

TDR Pricing Methodologies

Method One is based on the value derived from the sending site.

Hettema Saba example: $6,615

Gross Av. County Cost: $5,128

Method Two

Receiving Site

Method One

Sending Site

Method 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.

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 Site

Method ‘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.

TDR Pricing Methodologies

Other 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.

Other Jurisdictions Findings

TDR Pricing Methodologies

TDR Pilot Program• Identify all eligible ‘sending zone’ lands

acquired

• Quantify potential TDRs from said acquisitions

• Determine plausibility from relevant acquisition documentation.

• Select acquisition(s) with minimal complications

TDR Pilot Program (continued)• Calculate TDRs derivable utilizing ground

verified habitat data

• Determine the actual county cost per TDR

• Prepare a draft conservation easement document.

• Board declares ‘surplus TDRs’

• Hold for potential implementation

• Promote pilot program through County’s web site

2050 (Policy TDR 1.2)• “proceeds of any sale shall be used to

purchase additional environmentally sensitive lands”

Zoning Code (Section11.2.13.c.5)• “The revenue from the sale of Development

Rights from the TDR bank shall be allocated to the Environmentally Sensitive Lands Acquisition Program”

TDR Revenue Distribution

TDR 2050 Policy Amendment2050 policy

– Only purchase of real property/CE

Zoning Code policy – References the “program” – The “program” includes management

Currently program revenue allocated

90% Acquisition 10% Management

• 2050 amendment would create consistency with Zoning Code

• Authorize use of a % of any TDR revenue for management

• Recommended proportion = same as program (90% acquisition: 10% management)

TDR 2050 Policy Amendment

1. That 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.

2. That a pilot program be initiated in accordance with the steps provided within the staff report dated May 23, 2012.

3. 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 94-85.

Recommended Action

TDR Program Implementation

Commission Direction

ESLOC to consider program elements and make a recommendation(s) to the Commission

•Pricing Methodologies

•Pilot Program Implementation

•Revenue Distribution Amendment