1. Options for TDR in Puyallup
Presentation for:
Options for TDR in Puyallup
Puyallup City Council
February 13, 2018

2. Overview Objectives TDR recap Policy questions for council input
Infrastructure financing opportunities

3. growth
In 2016 Pierce was the fastest growing county in the United States. The county gained 11,785 new residents. Growth remains strong as economic vitality of region flourishes.

4. New Map1 Tacoma Puget Sound Puyallup River
What will this growth look like?

5. New Map3 Tacoma Puget Sound Puyallup River
Future land use in Puyallup River valley if farming areas are built out to suburban densities. Is this the kind of community we want? If not, then let’s explore options for achieving a more sustainable vision for growth and keeping our working lands working to support our communities.

6. Tacoma Puget Sound Puyallup River Conserved Prime Farmland May 2014
TDR Brownbag

7. = TDR and Zoning Development rights
Potential for residential development Can be traded =
10 Development Rights
100-acre farm
1 house per 10 acres

8. TDR overview Real estate tool Gives landowners choices
Market-based solutions
Real estate tool
Gives landowners choices
Can sell the development potential from property to a developer who can achieve higher density in an area where it’s desired
100% voluntary, market- based, respects private property rights

9. Ingredients for success
Clear conservation priorities (supply)
Market for growth (demand)
Policy linking TDR to growth
Incentives
Business model

10. Sending areas
In-city
+ Conservation benefits for community
+ Can allow farming to continue on designated ag land
Credits tend to be expensive
Dilutes conservation potential
Doesn’t give the city access to funding through the regional infrastructure financing program
Higher administrative complexity
Policy questions
Sending areas Receiving areas Incentives Administration

11. Sending areas
County
+ Conservation benefits for community (protection of farms that supply farmers markets/grocery stores/restaurants; lands of ecological importance)
+ Flood control benefits
= County preference is for ILA
Conservation is “out there” (outside of city)
Doesn’t give the city access to funding through the regional infrastructure financing program
Policy questions
Sending areas Receiving areas Incentives Administration

12. Sending areas
Regional
+ City can access new revenue for infrastructure
+ City has discretion to prioritize conservation
= County preference is for ILA
= City can choose alternative to ILA
Conservation is “out there” (outside of city)
Complex tool (but help is available)
Policy questions
Sending areas Receiving areas Incentives Administration

13. Receiving areas
Downtown Regional Growth Center
Was focus of TDR project work
South Hill Regional Growth Center
Growth potential
Any area seeking upzone
Zoning changes from R-5 to 4:1, e.g.
Other commercial areas (e.g. River Road)
Policy questions
Sending areas Receiving areas Incentives Administration

14. Incentives
Additional density
Units
Building height / FAR / additional square footage
Setback reductions
Cost savings
Parking requirement relaxation
Property tax exemptions
Policy questions
Sending areas Receiving areas Incentives Administration

15. Administration
Continuum of involvement:
City-run program
Light touch (County program) – City process permits, in coordination with county TDR program
Hands on/staff intensive (In-City program) – recruit participants, provide market info, connect buyers and sellers, operate a TDR bank
Public-private partnership
City retains permitting role
Partner leads marketing, outreach, deal-making
Can be cost effective depending on scale of program
Policy questions
Sending areas Receiving areas Incentives Administration

16. Regional TDR
Cities need infrastructure to support growth Public improvements are expensive

17. LCLIP
TDR
TIF + =
LCLIP
Land Conservation and Local Infrastructure Program Financial incentive for cities to use TDR Forterra designed LCLIP to give cities access to new revenue to support growth

18. LCLIP
Time
Increment
Base Assessed Value
Incremental
Assessed Value $
LCLIP start
LCLIP end
(25 years later)
City retains a portion of county’s share of property tax revenue on new construction City commits to accepting TDR credits Puyallup: 73 to 364 credits Program runs up to 25 years

19. LCLIP
City retains a portion of county’s share of property tax revenue on new construction City commits to accepting TDR credits Puyallup: 73 to 364 credits Program runs up to 25 years

20. LCLIP City Tax Revenue Growth without LCLIP
New Property
Tax Revenues
Counties retain at least 25% of new revenues
Cities can retain up to 75% of new county property tax revenues accruing from new development in a defined area
City Tax Revenue Growth with LCLIP
City Tax Revenue Growth without LCLIP
City can spend revenue on public improvements. Infrastructure can include parks, transportation, streetscapes, utilities, security, maintenance. Works with LIFT

21. LCLIP Adopted: Seattle In the process: Tacoma Tukwila Shoreline
Bothell
Mountlake Terrace

22. LCLIP
Feasibility study: How much revenue? How many credits? Where to use it? When to start? What are the risks?

23. questions
Contact: Nick Bratton Morgan Shook