Warwick Township’s TDR Program (Lancaster County, PA) Local Government Academy TDR Workshop Wednesday, August 6, 2008 Daniel L. Zimmerman, Township Manager Warwick Township (Lancaster County)

Warwick Township (Lancaster County, PA) Introduction- Contextual Information Pre-1998 TDR provision was established in Receiving area was less concentrated and posed the potential for the creation of significant traffic problems. Little infrastructure within the receiving area was provided. Concurrently, in the late 1990’s, Warwick Township was the 3 rd fastest growing municipality in Lancaster County Decision was made to revise the existing TDR program. The size of the receiving area was reduced. A basic market plan was developed. In developing such, it was determined that township investment in basic infrastructure was needed to create a vibrant, competitive market.

Warwick Township (Lancaster County, PA) Revised TDR Program Objectives Preserve large tracts of viable, contiguous farmland Enhancement of the tax base by diversifying the potential for development Compliment the other strategic objectives of the municipalities within the region; particular care was exercised in ensuring that the commercial ventures within the receiving area were not competitive with the existing commercial market in Lititz’s historic downtown By accomplishing such, we hoped to create a network of support Such support would be measured by the level of participation; participation is completely voluntary

Warwick Township (Lancaster County, PA) Key Recommendations h Simplify h Establish a market plan that is considerate to landowners, farmers, developers, realtors, and the community h Provide good customer service h Establish partnerships

Warwick Township (Lancaster County, PA) Sending area = Agricultural zone 2 gross acres = 1 TDR (100 acre farm = 50 TDRs) Purchase price is based on the appraised value of the farmland at the time the TDRs are sold TDR Program is done on a voluntary basis Zoning Officer calculates the number of TDRs assigned to each farm. Receiving area = Campus Industrial zone Campus Industrial Zone permits a10% base line lot coverage under Zoning Ordinance. Purchase of one TDR entitles an increased permitted lot coverage of 4,000 sq. ft., up to a maximum of 70% lot coverage (Purchase of 10 TDRs = 40,000 sq. ft. of impervious area allowed)

Warwick Township (Lancaster County, PA) Program Details Program is tracked with a Geographic Information System (GIS) The Agricultural Security Area is recorded through the Lancaster County Agricultural Preserve Board Warwick Township brokers TDRs between farm owners and applicant/developer in Campus Industrial Zone The Township partners with the Lancaster County Agricultural Preserve Board and Lancaster Farmland Trust Warwick Township donates to the Agricultural Preservation Fund Infrastructure built to support receiving area Township Solicitor prepares legal documents TDR Conveyance is real estate interest and must be in accordance with the Township Code.

Warwick Township (Lancaster County, PA) Legal Documentation The following agreements should be recorded as part of your TDR purchase transaction: 1. Declaration of Restriction of Development 2. Agreement to Sell Agricultural Conservation Easement and Transferable Development Rights 3. Deed of Transferable Development Rights TDR Conveyance is a real estate interest. The sale of TDRs is done by the open bidding process, similar to any real estate interest by municipalities.

Warwick Township (Lancaster County, PA) Warwick Township Zoning Map

Warwick Township (Lancaster County, PA) Preserved Farms – 2, acres * 1, acres have been preserved since acres have been preserved through the TDR Program. 344 acres are pending preservation. *(this figure is comprised of farms within the ASA) Transferable Development Rights To date, Warwick Township has purchased 348 TDRs and has sold 103 TDRs. A total of 472 TDRs have been purchased and 181 TDRs have been sold through a cooperative program with the Lancaster County Ag. Preserve Board and the Farmland Trust. The Township intends to sell 156 TDRs before the end of Currently, four farms are pending preservation. Based on the number of acres to be preserved, a total of 172 TDRs could be purchased through the cooperative program. Agricultural Security Area (ASA) – 3, acres Agricultural Zone (Sending Area) – 7,005 acres Campus Industrial Zone (Receiving Area) acres

Warwick Township (Lancaster County, PA) Traditional Agriculture, Preserved Farms And CAFOs

Warwick Township (Lancaster County, PA) This news article appeared in the July 13, 2002 issue of the Lancaster New Era. The article highlights the specifics of Warwick Township’s TDR program and how such resulted in the building of the Heart of Lancaster Hospital complex. Win-Win Situation: The building of a new community hospital and the preservation of valuable farmland Such is illustrative of the efforts undertaken by the Township to inform the public of the positive aspects of the community’s TDR program

Warwick Township (Lancaster County, PA) Another example of public education; such explains the cyclical nature of a TDR program The Importance of Public Education: Positive PR is essential to a successful TDR program Public understanding is critical to gaining public support As public support increases, increased funding can be earmarked for further farmland preservation

Warwick Township (Lancaster County, PA) Campus Industrial development 141 TDRs 40 TDRs

Warwick Township (Lancaster County, PA) TDRs & Commercial/Industrial Tax Base Enhancement Generated Revenues (19 properties): Additional Annual School Tax Revenues (15.2 mills) = $544,000.00; Such is significant given the realization of increased revenue without incurring additional student costs Additional Annual Municipal Tax Revenues (.274 mill) = $9, → = $

Warwick Township (Lancaster County, PA) The program is voluntary. A municipality may secure a bond to buy an initial stock of TDRs. Instead of zoning limitations, a development restriction is placed on a revised deed, and recorded. Not everyone may wish to participate. The program requires considerable municipal involvement, and understanding (the establishment of TDR unit value, education on both senders and receivers of TDRs, consideration of local real estate market conditions, stockpiling, monitoring purchase and sale, etc.) TDRs are legal - s. 603, 605, of the P.M.P.C. There are several municipalities in Pennsylvania that have TDR provisions in their zoning ordinance. There is a significant amount of literature and technical assistance available. Very few municipalities, however, actually engage in active TDR programs. In Lancaster, there are only two (Manheim and Warwick Township). TDRs compensate sending area landowners with the value of lost potential development for the subject property, and offer receiving area landowners greater development potential. The program is entirely dependent on there being a legitimate market (both a buyer and seller) for the TDRs. It is also subject to the same market risks (being a surplus / shortage of one or both variables). A key criteria is ensuring that the receiving area has a reasonably low permitted density / need for down­ zoning so that there is a demand to buy TDRs. The TDR program is reasonably straightforward.Developers may be reluctant to engage in the purchase of TDRs, or engage in this form of bonusing if there is a perceived fear that the process will take too long, or cause public opposition. The sale of TDRs is subject to property taxes. TRANSFER OF DEVELOPMENT RIGHTS - POINTS TO CONSIDER

Warwick Township (Lancaster County, PA) TDR Preserved Farms The end result……. 52 TDRs 75 TDRs 45 TDRs 47 TDRs

Warwick Township (Lancaster County, PA) QUESTIONS? Contact Information: Daniel L. Zimmerman, Township Manager Warwick Township (Lancaster County)