In April 2004, John P. Zawitoski transmitted a portion of a report on farmland preservation in Montgomery County currently in preparation. The excerpt indicates that the TDR program had permanently preserved over 43,145 acres of farmland through FY2003. Developers are estimated to have paid $63 million on TDRs since program inception, which the report views as a significant investment on the part of urban/suburban areas into rural areas.
Over the course of the program, the price paid for TDRs has varied based on supply and demand, economic cycles, developer interest and landowner motivation. TDR prices hovered near $5,000 in the 1980s then rose in the 1990s to $11,000 in FY 1996 before declining to roughly $8,000 in the late 1990s. Between 2001 and the 2003, TDR prices increased to $18,000 each. However these recent increases are attributed to a development boom in the Clarksburg receiving areas. As the demand within Clarksburg decreases, TDR prices are also expected to decline.
In 2001, the County was concerned about the effect of insufficient receiving area capacity on TDR prices. A TDR Task Force was assembled to look into innovative approaches for stimulating the program. The findings of the Task Force’s FY2002 report, not included in Beyond Takings and Givings, contain the following recommendations, which are directly quoted from the excerpt.
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Policy Tools – In order to support the TDR program, the Master plan development process in all areas of the County outside of the Agricultural Reserve, must formally include the creation and/or expansion of TDR receiving zones, whenever any additional density is contemplated. Examples of policy tools are detailed below:
1. Distinguishing between theoretical TDR use in receiving areas versus actual TDR use potentials;
2. Ensuring there is no net loss of receiving areas within the County;
3. Exploring inter-jurisdictional transfers of TDRs;
4. Use of TDRs in affordable housing models; and
5. The Coordination of Government and Non-Profit preservation initiatives.
1. Changing the minimum TDR use requirement in receiving areas, by reducing the use requirement for properties of 20 acres or less to 25% of capacity when the TDR receiving zone density is 10 dwelling units per acre or more and the elimination of the TDR receiving zone capacity is 20 dwelling units per acre or fewer;
2. Allow relief from on-site afforestation when TDRs are used – Balance the goals of the Forest Conservation Law with those of TDR receiving areas to implement an upfront planning process allowing for offsite mitigation;
3. Create TDR receiving versions of the CBD, Planned Development, Transit Station and Mixed Use Zones to use when they have existing or are designated for planned transit access;
4. Allow residential uses by right in certain commercial zones through the use of TDRs.
1. Begin an annual TDR ?countdown? tally and progress report, accounting for all deductions from the total remaining TDRs available for transfer in the RDT zone;
2. Implement an improved and easier to use ?tracking system? to determine TDRs retained for subdivision versus those that are sold;
3. Revision of the methodology used in generating the TDR Status Report; and
4. Conduct a survey of property owners in the RDT Zone to provide information regarding the variety of easement programs available in the County.
In FY2003, the Montgomery County Planning Board approved the TDR Task Force Report. Final approval by the Montgomery County Council was pending as of May 2004. The authors of the farmland preservation report believe that it is important to implement the recommendations of the Task Force so that the County can reach its goal of protecting 70,000 acres of farmland with TDR before 2020.
Montgomery County, with 43,145 acres preserved by TDR, is the most successful program in the country.
© Copyright 2004 by Rick Pruetz
