18G.10.150 Development Rights Bank.
The Development Rights Bank is an account and recordkeeping tool for the Program that tracks the purchase and transfer of development rights, the encumbrance of properties with a conservation easement related to either a Transfer of Development Rights (TDR) or Purchase of Development Rights (PDR), the conversion of development rights to certificates, and the banking and selling of development rights.
A. Purchase of Development Rights.
1. The purchase of non-transferable development rights shall be valued at prices not to exceed fair market value.
2. The value of the non-transferable development rights shall be the difference between the value of the land minus the residual value of the land after development rights have been extinguished. The value shall be determined by an appraisal furnished by the TDR Administrator and made available for the review by the landowner.
3. In purchasing development rights from Recreational Conservation Lands, prioritization shall be given to sites that meet the following criteria, in descending order of priority:
a. Sites threatened by imminent development;
b. Sites where development will have a negative impact on infrastructure, services or environment of adjacent neighborhoods or communities; and
c. Development of the site will significantly reduce the inventory of Recreational Conservation Lands in the surrounding areas.
B. Sale of Development Rights.
1. The price of development rights sold by the Development Rights Bank shall be set by the TDR Technical Oversight Committee. Such price shall be presumptively equal the current fair market value of the development right. However, the Committee may adjust such price based on consideration of such factors as the Committee believes relevant, including the prevailing market rates for development rights and the effect such density credit price may have on the development rights market.
2. All offers to purchase transferable development rights from the Development Rights Bank shall:
a. Be in writing;
b. Include a statement that the development rights will be used only inside an identified, eligible receiving area;
c. Include the number of development rights to be purchased; and
d. Include the location of the receiving site and the required date of completion.
3. Development rights may be optioned. The option shall include a minimum of a 10 percent down payment and shall be valid for no longer than two years.
4. Payment for purchase of development rights from the Development Rights Bank shall be in full at the time the development rights are transferred, unless otherwise authorized by the TDR Technical Oversight Committee.
5. Once transferred to a receiving site, development rights are converted to density credits or development credits.
6. Development rights and subsequent conversion to density credits or development credits are not real estate and the sale of such under this Chapter are exempt from the requirements of Chapter 2.110 PCC, Property Management.
7. Development rights and credits shall be sold in whole increments.
8. Development rights shall be sold for cash through escrow.
C. Funds from the Development Rights Bank may be used to facilitate the Program. These expenditures may include, but are not limited to, executing development rights purchases and sales, amenity funding to other jurisdictions pursuant to an enacted interlocal agreement, establishing and maintaining internet web pages, marketing, procuring title reports and appraisals, and reimbursing the government agency or other organization for administering the Development Rights Bank fund.
D. Development rights acquired from qualified sending sites using Development Rights Bank funds shall be deposited and available for sale through the Program. The development rights shall not be available if matching funding sources bar such use of development rights.
E. All funds from the sale of transferable development rights from the Development Rights Bank shall be available for acquisition of additional development rights, to administer and promote the Program and Development Rights Bank, pursuant to the process identified in this Chapter, or to retire debt issued for purchases of development rights.