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Techniques For Mitigating Urban Sprawl
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Strategy: Natural Resource Preservation  - Land Preservation
Policy Action: Transferable Development Rights (TDR)
Definition:

A TDR separates the value of potential development of land from the value of the current use of that parcel and transfers that development value to another site. A TDR program permits owners of land in development-restricted areas called sending districts to sever the development rights from their property and sell those rights to property owners in specified receiving districts. Landowners who purchase development rights are then able to increase the amount of development that can be built on the receiver site. TDRs can be used to save historic structures from demolition, prevent urbanization of farmland, and preserve unique environmental areas and scenic vistas. Most studies suggest that this market based approach to preservation of open space and historic structures only works well when the reciving site can not readily receive upzonings on a discretionary basis. If density increases are easily received, then there is no market for transfer credits. Case/Example: Montgomery County (MD). Source/Reference: Nelson and Duncan, 1995, pp. 48-49.


Texas Applications

Dallas, Texas

The City of Dallas uses transfer of development rights to provide an incentive to restore landmark buildings or contributing buildings within historic districts. If a landmark building or contributing building within a historic district has been restored within the last 5 years and the restoration exceeds 50% of the pre-restoration value, development rights for a minimum of 20,000 square feet may be transferred to building sites in CA-1(A) or CA-2(A) districts. The maximum floor area ratio may be increased by no more than 4.0 through the development rights transfer process. Accessed August 31st 2007 at: http://www.downtowndallas.org/invest_incen.asp

San Marcos, Texas

The City of San Marcos use transfer of development rights as part of its aquifer recharge, rivers and springs protection ordinances. For each acre of land in the recharge zone permanently set aside as open space, the impervious cover amounts plus residential density bonuses are given to upland sites. For each 5,000 square feet of impervious cover that could be legally constructed on the sending site, but instead is transferred to a receiving site, the following bonuses are allowed: either (1) two single family homes, duplexes or townhouses or (2) three apartment units. Accessed August 31st 2007 at: www.ci.san-marcos.tx.us/departments/planning/docs/Edwards_Ordinance_122302.pdf


Reports and Studies

Robert A Johnston and Mary E Madison . 1997. From landmarks to landscapes: A review of current practices in the transfer of development rights. American Planning Association. Journal of the American Planning Association. 63(1) 365-79.

Daniels, Tom and Deborah Bowers. 1997. Holding Our Ground: Protecting American Farms and Farmland. Island Press: Washington, D.C. 1997.

James, Franklin J. and Dennis E. Gale. 1997. Zoning For Sale: A Critical Analysis of Transfer Development Rights Programs. Urban Institute; Land Use Series: Washington, D.C. Platt, Rutherford H. 1996. Land Use and Society: Geography, Law, and Public Policy. Island Press: Washington, D.C. 1996.

Paul Thorsnes, Gerald P W Simons. 1999. Letting the market preserve land: The case for a market-driven transfer of development rights program 17(2) 256-267.


Links

An excellent summary of TDR use, success and failure issues can be found in this article: Rick Pruetz, FAICP, and Erica Pruetz. 2007. Transfer of Development Rights Turns 40, Planning & Environmental Law, June 59(6) 3-11. Accessed August 31, 2007: http://www.beyondtakingsandgivings.com/images/TDR_Commentary.pdf

A summary of TDR activities in the US completed for the New Jersey New Jersey Highlands Water Protection and Planning Council, New Jersey Department of Agriculture. Accessed August 31, 2007: http://www.state.nj.us/agriculture/sadc/tdrexamplesnation.pdf

Fact sheet description of TDR uses from the Ohio State Universities Extension Service. http://ohioline.osu.edu/cd-fact/1264.html

Description of TDR legal issues and applications in New York State, from the Land Use Library at Pace Law School. Accessed August 31, 2007: http://www.law.pace.edu/landuse/tdr.html

A Report from a workshop on Transfer of Development Rights co-sponsored by the Lincoln Institute for Land Policy and the Regional Plan Association. 1998. Accessed August 31, 2007: http://www.rpa.org/pdf/transferdevelopment.pdf

Conference presentation on the use of TDR in the U.S. at the 2002 National Planning Conference of the American Planning Association. Accessed August 31, 2007: http://conserveland.org/lpr/download/12999/pruetz_tdr.pdf

Elizabeth Kopits, Virginia McConnell, and Margaret Walls. 2005. Making Markets for Development Rights Work: What Determines Demand? Discussion Paper 5-45, Resources for the Future. Washington DC. Accessed August 31, 2007: http://www.rff.org/documents/RFF-DP-05-45.pdf


Page References

Nelson A. C. and J. B. Duncan. 1995. Growth Management Principles and Practices. Planners Press, Chicago, IL.


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