1. Introduction to Transfer of Development Rights Presentation for: Skagit County – TDR Stakeholder Committee June 19, 2012

2. Forterra Forterra is Washington’s largest independent land conservation, community- building, and stewardship organization Conserved over 175,000 acres using market-based approaches Experience with 9 TDR programs in WA Creating Great Communities, Conserving Great Lands

3. Forterra Forterra’s role in the Skagit TDR Project Technical advisor Strategic guidance Assist with design of the market study

4. The Big Picture Farming, forestry and fishing have defined this region for over 100 years.

5. Habitat & Ecosystem Services

6. What is TDR? Transfer of Development Rights (TDR) is: A market-based real estate tool Connects conservation with growth Flexible and can be applied to address local conditions

7. Basics of TDR Property Rights Physical ground Agriculture Timber rights Access Access Property rights are more than just physical propertyProperty rights are more than just physical property Development potential can be separated and transferredDevelopment potential can be separated and transferred Development

8. Basics of TDR Development Rights $ Dollars Sending Area Receiving Area Development rights severed from property & Conservation Easement Recorded

9. The Basic Ingredients 1. Sending Sites Supply of development rightsSupply of development rights 2. Receiving Sites Demand for development rightsDemand for development rights 3. The Marketplace Where and how transactions occurWhere and how transactions occur

10. 1. Sending-site landowner Development rights removed Receives $ for transferring development rights Retains ownership Retains other property rights Conservation easement How TDR Works

11. 2. Receiving-site landowner Buys development rights Receives a value-added incentive (Density, FAR, height, parking, etc.)(Density, FAR, height, parking, etc.) How TDR Works

12. 3. The Marketplace Policy objectives TDR program regulations Information clearinghouse How TDR Works

13. Clear conservation goals Tangible benefits Transparent Simple transaction process Appropriate incentives Understanding of the market Keys to program success

14. Conservation: What types of land does the county want to conserve? Growth: Where and how does the county want to encourage growth? Context: What are the current development pressures on lands? Administration: How involved does the county want to be? Market: How does the program encourage participation? TDR in Skagit County

15. “ “ The Envision Skagit 2060 Citizens Committee has developed this vision and set of recommendations for what we believe today’s Skagit County residents want Skagit County to be like in 2060—and what we should do now to help bring that about. “The essence of our recommendations is to steer new growth into… cities to avoid development in rural farmland, floodplains, forest lands and wildlife habitat. We cannot continue to sprawl as we have and preserve what the people of Skagit County most value.

16. TDR in Skagit County Envision Skagit is a start… Protect Ag, Forest, environmental resources, and rural character Transfer to urban areas Complement the Farmland Legacy Program

17. Kittitas County wants to retain its rural cultureKittitas County wants to retain its rural culture Interested in market-based options not regulatingInterested in market-based options not regulating Adopted its TDR program December 2009Adopted its TDR program December 2009 Example: Kittitas County Kittitas County

18. TDR Program Goals Primary goals:Primary goals: Conserve working landsConserve working lands Promote development in areas appropriate for growthPromote development in areas appropriate for growth Objectives:Objectives: Growth is responsibly plannedGrowth is responsibly planned Property rights are protectedProperty rights are protected Rural landowners are fairly compensatedRural landowners are fairly compensated

19. The county is home to 900 farms covering nearly 200,000 acresThe county is home to 900 farms covering nearly 200,000 acres Drivers: grass hay, cereal grain, and livestockDrivers: grass hay, cereal grain, and livestock Timothy hay industry: est. $30 million annuallyTimothy hay industry: est. $30 million annually Kittitas County has153,000 acres of private forestlandsKittitas County has153,000 acres of private forestlands Harvest volumes have declined since 2000Harvest volumes have declined since 2000 Still,13 million board feet harvested in 2007Still,13 million board feet harvested in 2007 Facts and figures

20. Growth Has Occurred Kittitas County Population Growth (1900-2009) 2000-2009 +20% Sources: US Census Bureau, WA Office of Financial Management

21. Growth Is Expected +8% +37% Estimates: WA Office of Financial Management Kittitas County Population Growth (2010 - 2030)

22. Program Development Established Goals and Scope 9/07 9/07 1/10 Community outreach 10/07–2/08 Draft Recommendations Report 4/08 Public Comments 4/08-5/08 Presentations to BOCC 4/08-5/08 Additional outreach / research 5/08-7/08 Final Report & Recommendations7/08 Market Analysis Supplement9/08 UpdatedReport5/09 Presentation to BOCC 5/09 PublicComments5/09 ConservationWorkshop1/10 PublicWorkshops9/09 TDR Program Adopted12/09 2008 2009 2010

23. Program Framework Irrigated Farms Working Forests CitiesCities Urban Growth AreasUrban Growth Areas Planned CommunitiesPlanned Communities Master Planned ResortsMaster Planned Resorts Planned Unit DevelopmentsPlanned Unit Developments Approved Rural DevelopmentApproved Rural Development RezonesRezones ClustersClusters Sending Sites Receiving Sites

24. 1500-acre forested & range, family-owned property Forterra purchased 24 TDR credits from 480 acres Ranch continues operation, pine forest conserved TDR Credits remain for sale Transfer Example: Parker Ranch Photo: Yakima Herald-Republic

25. www.cascadeland.org Thank you Taylor Carroll Program Manager Policy Department (206) 905-6939 tcarroll@forterra.org

26. New Map1 Tacoma Puyallup River Prime Farmland Puget Sound

27. New Map2 Tacoma Puyallup River Prime Farmland? Puget Sound

28. New Map3 Tacoma Puyallup River Puget Sound

29. TDR in the Central Cascades King County Bellevue Black Diamond Issaquah Normandy Park Redmond Sammamish Seattle Kitsap County Bainbridge Island Port Orchard Communities throughout the region are investing in TDR Kittitas County Ellensburg Pierce County Tacoma Puyallup Snohomish County Arlington Everett Mountlake Terrace Snohomish