<?php $nav = "http://" . $_SERVER['HTTP_HOST'] . "/du_includes/navigation.php"; include($nav); ?>

Articles


 

A Quiet Victory

 

Localities are getting a new tool, Transfer Development Rights, to protect open space and steer development where they want it.

 

By Bob Burke

 

Overshadowed by the chronic political gridlock over transportation funding, Virginia's General Assembly has passed some notable legislation this session to help local governments manage growth. Most significant is a bill that would give localities a new tool for shifting development to districts where key infrastructure already exists.

 

The concept is the transfer of development rights, or TDR – and it has the potential to reduce sprawl and the expense of building expensive infrastructure in undeveloped areas. For example, instead of developing 100 empty acres, a builder could "buy" those development rights from the landowner and use them in a higher-density project in an already developed area. Once sold, those development rights are gone for good, protecting open spaces while still giving the landowner a chance to profit.

 

Virginia’s version of TDRs, which started as legislation from Richmond-area Republican Sen. John Watkins, R-Midlothian, won easy passage in the General Assembly. The concept is used already in other parts of the country – Montgomery County, Md., most notably, has a widely praised TDR program in place.

 

But the TDR program that Virginia localities will be able to adopt is fairly modest. The program is voluntary for all parties – localities can use it if they choose to, crafting their own local version that publicly identifies both a “sending area” and a “receiving area.” Landowners in the designated areas aren’t required to use it, and won’t be forced to transfer development rights if they choose not to.

 

One reason it’s so modest is that lobbyists for the development and homebuilding industries wanted it that way. In previous years, TDR bills in the General Assembly died quickly. “Our industry had been the impediment to the enactment of those types of local authorities in the past,” says Michael Toalson, executive vice president for the Home Builders Association of Virginia. This year, instead of killing the bill outright, Toalson and other industry lobbyists got involved in weaving in limits.

 

Previous TDR bills, says Toalson, left open the possibility that the program could become mandatory, failing to guarantee that subsequent government actions would not strip away development rights that had already been acquired. The new legislation addresses those issues, he says. “What we tried to do is craft a statute that would work.”

 

The legislation also gives developers some measure of certainty in the process. Once a proposal to transfer development rights is found to be in compliance with the local ordinance, the deal is done. No approval by local politicians is needed. “[That] is designed to create an efficient application process, and hopefully eliminate some of the political opposition to changes in local landscapes,” Toalson says.

 

Of course, now comes the interesting part: seeing how many localities actually adopt a TDR ordinance, how they craft it, and what response it gets from residents and the private sector.

 

Mark Flynn, director of legal services for the Virginia Municipal League, says localities will have to decide if it’s worth it to forego the traditional process, which would likely include specific proffers from a developer. “The question is, if somebody uses the TDR process, there isn’t any conditional rezoning going on for the increase in density,” he says. “I think that’s the real test of this bill.”

 

Despite the law’s modest dimensions, Flynn thinks it can have a significant impact. “In the localities that do it, it’s going to really change the dynamics of growth patterns,” he says. Zonings come and go, but land that goes through the TDR process will stay that way, he says.

 

One key element missing from the law, all sides agree, is the ability to “bank” development rights. Under the new authority the transfer of development rights has to go from one specific property to another. Which means that without such an agreement, a property owner couldn’t sell his development rights until he had a buyer, and vice versa. Other TDR programs allow the banking approach, which means landowners could sell their rights and developers could buy up as many as were available depending on their needs.

 

“To really make the system work you need that,” says Trip Pollard, an attorney with the Southern Environmental Law Center, who was also involved in drafting the legislation. “That was part of the discussion, and we couldn’t get everyone to sign off.” 

 

Toalson says he’s open to supporting a banking authority, and says it didn’t get done this year because of the complexity of the issue and the lack of time. “My hope would be that this is just the first phase of a TDR program” that would eventually allow banking of TDRs. “That’s another piece that we’re all committed to come back to the table” to work on, he says.

 

The negotiations were a nice change from the normally contentious exchanges between warring sides, Toalson says. “It’s one of the first experiences I’ve had, when I was sitting at a table with representatives of the environmental community, local governments and us, where we didn’t immediately run to the corners.”

 

Pollard says the legislation’s success after so many years of rejection “shows clearly that transportation and land-use issues are at the forefront of public discussion and political debate now. I think it does show that there’s potential for agreement on some of these issues.”  

 

Bacon's Rebellion News Service

March 31, 2006

 

 

 

 

Contents

 

Road to Ruin page

 

About Road to Ruin