Introduction to Transfer of Development Rights

1. Presentation for: • Skagit County – TDR Stakeholder Committee • June 19, 2012 Introduction to Transfer of Development Rights

2. 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 Lands

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

4. The Big Picture Farming, forestry and fishing have defined this region for over 100 years.

5. Habitat & Ecosystem Services

6. 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

7. Development Basics of TDR • Property rights are more than just physical property • Development potential can be separated and transferred Property Rights Timber rights Access Agriculture Physical ground

8. Basics of TDR Development Rights Development rights severed from property & Conservation Easement Recorded Receiving Area Sending Area $ Dollars

9. The Basic Ingredients 1. Sending Sites • Supply of development rights 2. Receiving Sites • Demand for development rights 3. The Marketplace • Where and how transactions occur

10. How TDR Works 1. Sending-site landowner • Development rights removed • Receives $ for transferring development rights • Retains ownership • Retains other property rights • Conservation easement

11. How TDR Works 2. Receiving-site landowner • Buys development rights • Receives a value-added incentive • (Density, FAR, height, parking, etc.)

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

13. Keys to program success • Clear conservation goals • Tangible benefits • Transparent • Simple transaction process • Appropriate incentives • Understanding of the market

14. TDR in Skagit County • 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?

15. 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.

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

17. Example: Kittitas County • Kittitas County wants to retain its rural culture • Interested in market-based options not regulating • Adopted its TDR program December 2009 Kittitas County

18. TDR Program Goals • Primary goals: • Conserve working lands • Promote development in areas appropriate for growth • Objectives: • Growth is responsibly planned • Property rights are protected • Rural landowners are fairly compensated

19. Facts and figures • The county is home to 900 farms covering nearly 200,000 acres • Drivers: grass hay, cereal grain, and livestock • Timothy hay industry: est. $30 million annually • Kittitas County has153,000 acres of private forestlands • Harvest volumes have declined since 2000 • Still,13 million board feet harvested in 2007

20. Growth Has Occurred Kittitas County Population Growth (1900-2009) +20% 2000-2009 Sources: US Census Bureau, WA Office of Financial Management

21. Growth Is Expected Kittitas County Population Growth (2010 - 2030) +37% +8% Estimates: WA Office of Financial Management

22. Program Development Additional outreach / research 5/08-7/08 Conservation Workshop 1/10 Established Goals and Scope9/07 Updated Report 5/09 Public Comments4/08-5/08 Market Analysis Supplement 9/08 2009 2010 2008 9/07 1/10 Final Report & Recommendations 7/08 Presentation to BOCC 5/09 Community outreach 10/07–2/08 TDR Program Adopted 12/09 Presentations to BOCC 4/08-5/08 Public Comments 5/09 Public Workshops 9/09 Draft Recommendations Report 4/08

23. Program Framework Sending Sites • Irrigated Farms • Working Forests • Cities • Urban Growth Areas • Planned Communities • Master Planned Resorts • Planned Unit Developments • Approved Rural Development • Rezones • Clusters Receiving Sites

24. Transfer Example: Parker Ranch • 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 Photo: Yakima Herald-Republic

25. Thank you Taylor Carroll Program Manager Policy Department (206) 905-6939 tcarroll@forterra.org www.cascadeland.org

26. New Map1 Tacoma Puget Sound Puyallup River Prime Farmland

27. New Map2 Tacoma Puget Sound Puyallup River Prime Farmland?

28. New Map3 Tacoma Puget Sound Puyallup River

29. TDR in the Central Cascades Communities throughout the region are investing in TDR • Kittitas County • Ellensburg • Pierce County • Tacoma • Puyallup • Snohomish County • Arlington • Everett • Mountlake Terrace • Snohomish • King County • Bellevue • Black Diamond • Issaquah • Normandy Park • Redmond • Sammamish • Seattle • Kitsap County • Bainbridge Island • Port Orchard