Introduction to Transfer of Introduction to Transfer of Development RightsDevelopment Rights

Forterra

• Forterra is Washington’s largest independent land conservation, community-building, and stewardship organization

• Conserved over 175,000 acres using market-based approaches

• Experience with 9 TDR programs in WA

Creating Great Communities, Conserving Great LandsCreating Great Communities, Conserving Great Lands

Forterra

Forterra’s role in the Skagit TDR Project• Technical advisor• Strategic guidance • Assist with design of the market study

The Big Picture

Farming, forestry and fishing have defined this region for over 100 years.

Habitat & Ecosystem Services

What is TDR?

Transfer of Development Rights (TDR) is:

• A market-based real estate tool

• Connects conservation with growth

• Flexible and can be applied to address local conditions

Basics of TDR

Property Rights

Physical groundPhysical groundAgricultureAgriculture

Timber rightsTimber rights AccessAccess

• Property rights are more than just physical Property rights are more than just physical propertyproperty

• Development potential can be separated and Development potential can be separated and transferredtransferred DevelopmenDevelopmen

tt

Basics of TDR

Development Rights

$ Dollars

Sending Area Receiving Area

Development rights

severed from property &

Conservation Easement Recorded

The Basic Ingredients

1. Sending Sites1. Sending Sites• Supply of development Supply of development

rightsrights

2. Receiving Sites 2. Receiving Sites • Demand for development Demand for development

rightsrights

3. The Marketplace3. The Marketplace• Where and how transactions Where and how transactions

occuroccur

1. Sending-site landowner• Development rights removed• Receives $ for transferring

development rights• Retains ownership• Retains other property rights• Conservation easement

How TDR WorksHow TDR Works

2. Receiving-site landowner• Buys development rights• Receives a value-added incentive

• (Density, FAR, height, parking, etc.)(Density, FAR, height, parking, etc.)

How TDR Works How TDR Works

3. The Marketplace• Policy objectives• TDR program regulations• Information clearinghouse

How TDR Works How TDR Works

• Clear conservation goals• Tangible benefits• Transparent• Simple transaction process• Appropriate incentives• Understanding of the market

Keys to program successKeys to program success

• Conservation: What types of land does the county want to conserve?

• Growth: Where and how does the county want to encourage growth?

• Context: What are the current development pressures on lands?

• Administration: How involved does the county want to be?

• Market: How does the program encourage participation?

TDR in Skagit County

TDR in Skagit County

““The Envision Skagit 2060 Citizens Committee has developed this vision and set of recommendations for what we believe today’s Skagit County residents want Skagit County to be like in 2060—and what we should do now to help bring that about.

“The essence of our recommendations is to steer new growth into… cities to avoid development in rural farmland, floodplains, forest lands and wildlife habitat. We cannot continue to sprawl as we have and preserve what the people of Skagit County most value.

TDR in Skagit County

Envision Skagit is a start…•Protect Ag, Forest, environmental resources, and rural character•Transfer to urban areas•Complement the Farmland Legacy Program

• Kittitas County wants to retain its rural cultureKittitas County wants to retain its rural culture

• Interested in market-based options not regulatingInterested in market-based options not regulating

• Adopted its TDR program December 2009Adopted its TDR program December 2009

Example: Kittitas County

Kittitas County

TDR Program Goals

• Primary goals: Primary goals: • Conserve working landsConserve working lands• Promote development in areas Promote development in areas

appropriate for growthappropriate for growth

• Objectives: Objectives: • Growth is responsibly planned Growth is responsibly planned • Property rights are protectedProperty rights are protected• Rural landowners are fairly Rural landowners are fairly

compensatedcompensated

• The county is home to 900 farms covering nearly 200,000 acresThe county is home to 900 farms covering nearly 200,000 acres• Drivers: grass hay, cereal grain, and livestockDrivers: grass hay, cereal grain, and livestock• Timothy hay industry: est. $30 million annuallyTimothy hay industry: est. $30 million annually

• Kittitas County has153,000 acres of private forestlandsKittitas County has153,000 acres of private forestlands• Harvest volumes have declined since 2000Harvest volumes have declined since 2000• Still,13 million board feet harvested in 2007Still,13 million board feet harvested in 2007

Facts and figures

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2009

Growth Has OccurredGrowth Has Occurred

Kittitas County Population Growth (1900-2009)

2000-2009

+20%

Sources: US Census Bureau, WA Office of Financial Management

30,000

35,000

40,000

45,000

50,000

55,000

60,000

65,000

2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

Low Projection High Projection

Growth Is ExpectedGrowth Is Expected

+8%

+37%

Estimates: WA Office of Financial Management

Kittitas County Population Growth (2010 - 2030)

Program Development

Established Established Goals and Goals and

ScopeScope9/079/07

9/079/07 1/101/10

Community Community outreachoutreach

10/07–2/0810/07–2/08

Draft Draft Recommendations Recommendations

Report 4/08Report 4/08

Public Public

CommentsComments4/08-5/084/08-5/08

Presentations Presentations to BOCCto BOCC

4/08-5/084/08-5/08

Additional Additional outreach / researchoutreach / research

5/08-7/085/08-7/08

Final Report & Final Report & RecommendationsRecommendations

7/087/08

Market Analysis Market Analysis SupplementSupplement

9/089/08

Updated Updated ReportReport5/095/09

Presentation Presentation to BOCCto BOCC

5/095/09PublicPublic

CommentsComments5/095/09

Conservation Conservation Workshop Workshop

1/101/10

PublicPublicWorkshopsWorkshops

9/099/09

TDR Program TDR Program AdoptedAdopted

12/0912/09

20082008 20092009 20102010

Program Framework

•Irrigated Farms

•Working Forests

•CCitiesities

•UUrban Growth Areasrban Growth Areas

•PPlanned Communitieslanned Communities• Master Planned ResortsMaster Planned Resorts• Planned Unit DevelopmentsPlanned Unit Developments

•AApproved Rural Developmentpproved Rural Development• RezonesRezones• ClustersClusters

Sending SitesSending Sites

Receiving SitesReceiving Sites

• 1500-acre forested & range, family-owned property

• Forterra purchased 24 TDR credits from 480 acres

• Ranch continues operation, pine forest conserved

• TDR Credits remain for sale

Transfer Example: Parker Ranch Transfer Example: Parker Ranch

Photo: Yakima Herald-Republic

www.cascadeland.org

Thank youThank you

Taylor CarrollProgram ManagerPolicy Department

(206) 905-6939tcarroll@forterra.org

New Map1Tacoma

Puyallup River

Prime Farmland

Puget Sound

New Map2Tacoma

Puyallup River

Prime Farmland?

Puget Sound

New Map3Tacoma

Puyallup River

Puget Sound

TDR in the Central Cascades

• King County• Bellevue• Black Diamond• Issaquah• Normandy Park• Redmond• Sammamish• Seattle

• Kitsap County• Bainbridge Island• Port Orchard

Communities throughout the region are investing in TDRCommunities throughout the region are investing in TDR

• Kittitas County• Ellensburg

• Pierce County• Tacoma

• Puyallup

• Snohomish County• Arlington

• Everett

• Mountlake Terrace

• Snohomish