Chapter 18.82
TRANSFER OF DEVELOPMENT RIGHTS

Sections:

18.82.010    Purpose and intent.

18.82.020    Authority.

18.82.030    Applicability.

18.82.035    Designated sending sites.

18.82.040    Designated receiving sites.

18.82.050    Use of transferable development rights.

18.82.060    TDR transfer process.

18.82.090    Documentation of restrictions.

18.82.010 Purpose and intent.

(1) The purpose of the transfer of development rights (TDR) program is to implement a market-based tool to permanently preserve land with important public benefits, such as farmland, forestland, open space, and wildlife habitat, through the acquisition of transferable development rights from those lands (“sending sites”) and the subsequent transfer of those rights to lands more suitable for development (“receiving sites”), and thereby help the city achieve its growth management objectives.

(2) The TDR provisions supplement land use regulations, resource protection efforts and open space acquisition programs and are intended to increase residential and commercial development density in the Manhattan Village subarea by:

(a) Providing incentive process for rural property owners of farmland, forestland, open space, and wildlife habitat to preserve lands with a public benefit;

(b) Providing an administrative review process to ensure that transfers of development rights are evaluated and administered in a fair and timely manner in accordance with other city goals and policies; and

(c) Providing an incentive to urban property owners in the Manhattan Village subarea to redevelop property to create a vibrant urban village. (Ord. 888 § 2 (Exh. A), 2012).

18.82.020 Authority.

This chapter is adopted pursuant to RCW 36.70A.090, Comprehensive plans – Innovative techniques, which states, “A comprehensive plan should provide for innovative land use management techniques, including, but not limited to, density bonuses, cluster housing, planned unit developments, and the transfer of development rights.” (Ord. 888 § 2 (Exh. A), 2012).

18.82.030 Applicability.

(1) All new development on a site identified as a receiving site pursuant to NPMC 18.82.040 shall have the option to acquire certified transfer of development rights to increase the development potential of the receiving site.

(2) The development potential of a sending site, as determined by site certification pursuant to Chapter 21A.37 KCC, may be transferred and credited to a receiving site only when the transfer is approved in accordance with this chapter and the King County-Normandy Park TDR interlocal agreement. (Ord. 888 § 2 (Exh. A), 2012).

18.82.035 Designated sending sites.

(1) Pursuant to the King County-Normandy Park TDR interlocal agreement, the county and city have identified the near-shore and shoreline properties surrounding Vashon Island in King County as the TDR eligible “sending site area” as identified in the TDR sending map in the Normandy Park-King County TDR interlocal agreement. TDR credits from this area may be used for increased residential density and commercial development capacity in the Manhattan Village receiving site.

(2) Transferable development rights acquired from eligible sending sites shall be transferred to eligible receiving sites through the TDR transfer process described in NPMC 18.82.060.

(3) After completion of the transfer of a sending site’s development rights, the sending site property shall be maintained in a condition that is consistent with the criteria in this chapter under which the sending site was qualified by means of a TDR conservation easement.

(4) Sending sites shall be qualified and certified by King County pursuant to Chapter 21A.37 KCC. (Ord. 888 § 2 (Exh. A), 2012).

18.82.040 Designated receiving sites.

(1) Eligible receiving sites shall be any:

(a) Single property or assemblage of coterminous property located in commercial, mixed-use, and R-7.2 zones within the boundaries of the Normandy Park commercial areas;

(2) Except as provided in this chapter, development of a receiving site shall remain subject to all use, lot coverage, height, setback and other applicable requirements of the Normandy Park Municipal Code. (Ord. 1054 § 7, 2023; Ord. 888 § 2 (Exh. A), 2012).

18.82.050 Use of transferable development rights.

(1) Transferable development rights may be purchased to achieve TDR-based incentive densities identified in this section, on receiving sites identified in NPMC 18.82.040; other development standards and design regulations still apply.

(2) Receiving Site Incentives.

(a) Bonus Density.

(i) For every one TDR used, a density bonus is permitted:

(A) A 10 percent increase in the unit count (rounded up to the next full unit) for any type of housing developed to meet the city’s housing capacity requirements;

(B) A 10 percent decrease in required minimum parking spaces including those realized through NPMC 18.25.010;

(C) A 10 percent increase in the unit count (rounded up to the next full unit) in areas developed under an approved development agreement framework in Chapter 18.105 NPMC.

(3) Modification of Receiving Site Incentives.

(a) The city manager is authorized to recommend that the city council and King County adopt a revised incentive table to address changing economic conditions or to further refine the receiving site incentives.

(b) The city manager is also authorized to recommend that the city council and King County adopt receiving site incentives for sending sites not currently identified in NPMC 18.82.035.

(c) The incentive table shall not be revised more than once in a calendar year.

(d) The city manager may base the recommendation of a revised incentive table on the following economic analysis:

(i) The expected marginal value of the receiving site incentives; and

(ii) The prevailing cost per square foot or unit of residential development and the impact of the acquisition of TDRs on a project’s marginal returns; and

(iii) The appropriate regional costs of development per square foot or unit of residential development; and

(iv) Consistency with the conservation principles and purpose and intent of an interlocal agreement with King County and this chapter.

(e) Once adopted by the council and King County, the modified receiving site incentive table shall be used for calculation of receiving site incentives. Within 14 days of adopting a revised incentive table, the city shall mail notification to property owners with an active TDR certificate letter of intent following adoption of a revised incentive table.

(f) If adoption of a revised incentive table is requested by a developer or private property owner, the burden of preparing the economic analysis shall be on the developer or private property owner.

(g) The city manager shall keep a log of modified receiving site incentives and shall periodically report the modifications to the city council. (Ord. 1054 § 8, 2023; Ord. 888 § 2 (Exh. A), 2012).

18.82.060 TDR transfer process.

(1) All transferable development rights shall be transferred into the city pursuant to the terms of the Normandy Park-King County interlocal TDR agreement.

(2) Receiving site landowners must acquire transferable development rights that originate from certified sending site properties in accordance with NPMC 18.82.030, to achieve the TDR incentive densities described in NPMC 18.82.050.

(3) Permit application may be submitted prior to the applicant acquiring TDRs; however, prior to the issuance of any permit related to construction or development activity, including clearing and grading, for any project that uses a TDR, the applicant shall provide the city with a TDR certificate issued in the applicant’s name that indicates the requisite number of TDRs have been acquired.

(4) TDRs must be acquired by:

(a) Purchasing TDRs from certified sending site landowners; or

(b) Transferring development rights from certified sending sites owned by a receiving site owner; or

(c) Purchasing from another buyer previously purchased, but unexecuted, TDRs from a certified sending site; or

(d) Purchasing TDRs from the TDR bank.

(5) All receiving site projects using TDRs must be in accordance with all other applicable laws and regulations.

(6) The maximum number of sending site TDR allowed for use in the Manhattan Village receiving area shall not exceed 75 TDRs. (Ord. 888 § 2 (Exh. A), 2012).

18.82.090 Documentation of restrictions.

(1) TDR certificates issued to sending site landowners pursuant to an interlocal agreement with King County shall have a conservation easement restricting the deed that is recorded with King County and notice placed on the title of the sending parcel.

(2) Upon approval by the city of a building permit using TDR credits, the city shall execute and deliver to the county a TDR extinguishment document indicating the total number of TDRs used in the building project, TDR certificate number associated with the TDRs used, and the project name and location. (Ord. 888 § 2 (Exh. A), 2012).