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
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Overview of TDR program
Introduction to 2050 framework
Introduction to TDR policies
Chronology of events
Discussion of current proposal
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.
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.
Off Site
Transfer
Open Space
(1000 acres)
Greenway
RMA
County-owned TDRs
 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 publiclyowned 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
Sarasota 2050 Policy
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
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.
Chronology
Jan. 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
Chronology continued
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.
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
Method Two
Receiving Site
Gross Av. County Cost: $5,128
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 One
Sending Site
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 ‘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.
Method ‘A’ & ‘B’
Receiving Site
TDR Pricing Methodologies
Other Jurisdictions Findings
Other jurisdictional methods for pricing publicly-owned TDRs:
35 jurisdictions contacted
30 responded
King 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.
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
TDR Revenue Distribution
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 2050 Policy Amendment
2050 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
TDR 2050 Policy Amendment
• 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 Program Implementation
Recommended Action
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.
Commission Direction
ESLOC to consider program elements
and make a recommendation(s) to the
Commission
• Pricing Methodologies
• Pilot Program Implementation
• Revenue Distribution Amendment