Arlington farmers and developers discuss TDR
Published on Fri, Nov 7, 2008 by By Beckye RandallRead More Local News
As development policies go, the Transfer of Development Rights (TDR) may be one of the most confusing and cumbersome ideas out there. But in its potential to save valuable rural agricultural land while offering fair compensation to farmers and providing for future growth, it's also a powerful tool in the policymakers' toolbox.
At a meeting held October 30 at Arlington's Pioneer Hall, farmers, developers and city planners tried to hammer out some of the differences that have kept the TDR idea from being successfully implemented yet.
Transfer of Development Rights programs vary from county to county, but the basic idea behind TDRs is this: farmers in the designated "sending area" are encouraged to sell the development rights to their property, preserving its use as agricultural. A developer who buys the farmer's TDRs can apply the certificates to property in the "receiving area," within the city's urban growth boundary, for bonus density, often earning four to ten times the zoned density allowance.
Theoretically, the farmer would be compensated for the difference between the value of his land for agricultural use and the developed value. The developer would be able to build more units on his urban property by purchasing the TDRs.
However, Arlington's program is different. Noel Higa is a local planner and developer whose company, Ronin Northwest, owns much of the acreage in the receiving area. "This is not about bonus density," he said. "The property in the receiving area is simply zoned MPN-Master Planned Neighborhood-and has no base density. If we want to build, we are required to purchase TDRs."
"This program has to make sense for everybody," Higa continued. "Everyone needs to win."
But there are many sticking points, according to Bill Blake, the City of Arlington's assistant director of community development. There has been no agreement between the city, county and property owners that determines the value of TDRs, how the credits are calculated, or what types of property qualify for the designation.
Developers who wish to purchase TDRs are concerned about infrastructure responsibility in the receiving areas as well as the underlying costs of the program.
"If we want to save our farmland, we have to be creative," said Blake.
Arlington mayor Margaret Larson agreed. "I'm the biggest TDR cheerleader in the state," she said. "We've been working on this for four years, and I have not lost my passion or dedication to the program."
County councilman John Koster admitted that some of the current problems are a result of the county's early involvement in the TDR process. In 2006 the county paid the Barlond family $2.1 million to save 71 acres of farmland from further development. Barlond had already sold some of his farmland that had been given lot status, resulting in the Sky Valley Ranch development.
Some locals feel the county overpaid in a crisis reaction, and the deal drove up the price that other farmers now expect to get for the development rights from their lands.
"If I could unfire one bullet, that would be the one," Koster told the 70-plus people in attendance at the Arlington meeting. "But you can bet the county is out of the buyer's market now."
Arlington's TDR program has been in effect for two years and not a single credit has been bought or sold. The distressed status of the housing market may have a lot to do with that. "Nobody is developing anything anywhere," Higa noted.
But when market conditions improve, Higa and his firm have a good idea what they'd like to see on the 330-plus acres Ronin Northwest owns off Burn Road. "We are interested in creating a neighborhood that lends itself to a sense of community."
The firm is also developing plans for Haller Point on the Graafstra property near the downtown core. Higa is convinced a similar mix of single- and multi-family residential, light commercial and retail uses would also work well on the Burn Road acreage. Specs for Haller Point average about 12 dwelling units per acre.
Comments made at the recent meeting ranged far and wide. Some farmers want TDR credits to be based on total acreage, not lots. Some want floodways included as farmland for TDR purposes, and there were questions about selling development rights in stages rather than all at once.
Among those who want to use the TDR method for development, there were suggestions to reduce the area needed to establish a receiving area (currently 75 acres) and to establish fair criteria for evaluating TDR certificates.
After the meeting Blake said the city will review the suggestions and comments made at the meeting and try to incorporate needed changes into the current program.
"We can adopt changes fairly quickly," said Blake, "and hopefully create a collaborative effort that benefits everyone."
For Mayor Larson, the goal is clear. "I want to make sure Arlington's front porch doesn't turn into urban sprawl. We need to preserve the farmland of the Stillaguamish Valley for future generations."
At a meeting held October 30 at Arlington's Pioneer Hall, farmers, developers and city planners tried to hammer out some of the differences that have kept the TDR idea from being successfully implemented yet.
Transfer of Development Rights programs vary from county to county, but the basic idea behind TDRs is this: farmers in the designated "sending area" are encouraged to sell the development rights to their property, preserving its use as agricultural. A developer who buys the farmer's TDRs can apply the certificates to property in the "receiving area," within the city's urban growth boundary, for bonus density, often earning four to ten times the zoned density allowance.
Theoretically, the farmer would be compensated for the difference between the value of his land for agricultural use and the developed value. The developer would be able to build more units on his urban property by purchasing the TDRs.
However, Arlington's program is different. Noel Higa is a local planner and developer whose company, Ronin Northwest, owns much of the acreage in the receiving area. "This is not about bonus density," he said. "The property in the receiving area is simply zoned MPN-Master Planned Neighborhood-and has no base density. If we want to build, we are required to purchase TDRs."
"This program has to make sense for everybody," Higa continued. "Everyone needs to win."
But there are many sticking points, according to Bill Blake, the City of Arlington's assistant director of community development. There has been no agreement between the city, county and property owners that determines the value of TDRs, how the credits are calculated, or what types of property qualify for the designation.
Developers who wish to purchase TDRs are concerned about infrastructure responsibility in the receiving areas as well as the underlying costs of the program.
"If we want to save our farmland, we have to be creative," said Blake.
Arlington mayor Margaret Larson agreed. "I'm the biggest TDR cheerleader in the state," she said. "We've been working on this for four years, and I have not lost my passion or dedication to the program."
County councilman John Koster admitted that some of the current problems are a result of the county's early involvement in the TDR process. In 2006 the county paid the Barlond family $2.1 million to save 71 acres of farmland from further development. Barlond had already sold some of his farmland that had been given lot status, resulting in the Sky Valley Ranch development.
Some locals feel the county overpaid in a crisis reaction, and the deal drove up the price that other farmers now expect to get for the development rights from their lands.
"If I could unfire one bullet, that would be the one," Koster told the 70-plus people in attendance at the Arlington meeting. "But you can bet the county is out of the buyer's market now."
Arlington's TDR program has been in effect for two years and not a single credit has been bought or sold. The distressed status of the housing market may have a lot to do with that. "Nobody is developing anything anywhere," Higa noted.
But when market conditions improve, Higa and his firm have a good idea what they'd like to see on the 330-plus acres Ronin Northwest owns off Burn Road. "We are interested in creating a neighborhood that lends itself to a sense of community."
The firm is also developing plans for Haller Point on the Graafstra property near the downtown core. Higa is convinced a similar mix of single- and multi-family residential, light commercial and retail uses would also work well on the Burn Road acreage. Specs for Haller Point average about 12 dwelling units per acre.
Comments made at the recent meeting ranged far and wide. Some farmers want TDR credits to be based on total acreage, not lots. Some want floodways included as farmland for TDR purposes, and there were questions about selling development rights in stages rather than all at once.
Among those who want to use the TDR method for development, there were suggestions to reduce the area needed to establish a receiving area (currently 75 acres) and to establish fair criteria for evaluating TDR certificates.
After the meeting Blake said the city will review the suggestions and comments made at the meeting and try to incorporate needed changes into the current program.
"We can adopt changes fairly quickly," said Blake, "and hopefully create a collaborative effort that benefits everyone."
For Mayor Larson, the goal is clear. "I want to make sure Arlington's front porch doesn't turn into urban sprawl. We need to preserve the farmland of the Stillaguamish Valley for future generations."
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