Chapter 18G.10
TRANSFER AND PURCHASE OF DEVELOPMENT RIGHTS PROGRAM

Sections:

18G.10.010    Purpose.

18G.10.020    Definitions.

18G.10.030    Participation in the Program.

18G.10.040    Administration of the Program.

18G.10.050    Sending Site Eligibility Criteria.

18G.10.060    Receiving Site Eligibility Criteria.

18G.10.070    Uses Allowed on a Sending Site.

18G.10.080    Documentation of Sending Site Restrictions.

18G.10.090    Development Rights.

18G.10.100    Letter of Intent.

18G.10.110    Development Right Certificate.

18G.10.120    Interlocal Agreements.

18G.10.130    Transfer Process.

18G.10.140    County Receiving Site.

18G.10.150    Development Rights Bank.

18G.10.160    Amenity Funding.

18G.10.170    Exemption from Surplus Provisions.

18G.10.010 Purpose.

The purpose of the Transfer and Purchase of Development Rights Program is to permanently conserve resource lands such as forestry and agriculture, rural lands, recreational trails, open space and habitat areas through acquisition and extinguishment of the development rights on those lands which are designated as "sending sites." All other rights of ownership, including the right to continue operation of farming, forestry, recreation and other uses permitted within the zone, may continue.

This market-based technique encourages transfer of development from places where the community would like to see less development, like farmland, to places where communities would like to see more development, like in cities and towns.

Development rights from a sending site may be transferred to a receiving site where they could be used to increase the intensity of development. For example, a site that receives development rights may be able to increase the number of dwelling units (density), increase the height of buildings, or increase building size. Development rights may also be purchased, and then extinguished, for the sole purpose of land conservation.

Once the development rights are transferred or purchased from a sending site, a conservation easement is recorded to restrict the type of activities that may take place on the land to ensure permanent conservation of rural and resource lands.

(Ord. 2013-87s § 1 (part), 2013)

18G.10.020 Definitions.

Definitions for terms used in the Development Regulations are located in Chapter 18.25 PCC. Terms unique to this Chapter are included below.

"Certificate" is a form of currency that displays how many development rights are available for sale and use.

"Conservation easement" means a legal agreement between a landowner and a land trust or government agency that permanently limits uses of the land in order to protect the land's conservation values. It is recorded on the title of the property. It allows the landowner to continue to own and use the land and to sell it or pass it on to heirs. Conservation easements are placed on a sending site at the time development rights are transferred from the property or are extinguished. The conservation easement prohibits any further development of the property, except as specified within the provisions of the conservation easement, but allows resource uses such as farming and forestry to continue.

"Conversion rate" means the relationship between the number of development rights allocated to a sending site (typically a specified number of single-family dwelling units) and the amount of density credits available on the receiving site (which may be extra single-family units, multi-family units, commercial square footage, or flexibility in development standards).

"Density credit or development credit" is the Transfer of Development Right (TDR) commodity used on receiving sites.

"Development Rights Bank" means an entity that exists to purchase certificates from the owners of designated sending sites for the purpose of future resale to the owners of designated receiving sites.

"Interlocal agreement" means a written agreement between Pierce County and another jurisdiction that describes the development rights transfer process between the County and the other jurisdiction.

"Non-transferable development rights" means development rights that are purchased and which are extinguished and are not available for transfer to a receiving site.

"Program" means the Transfer and Purchase of Development Rights Program established pursuant to Chapter 18G.10 PCC.

"Purchase of Development Rights (PDR)" means the purchase and extinguishment of the right to develop or build on a sending site for the purpose of conservation rather than transfer to a receiving site.

"Receiving site" means land where the procurement of development rights facilitates a permissible change in the allowed intensity of development on the property pursuant to this Chapter and all other controlling policies and law.

"Sending site" means land where landowners may sell their development rights either directly to a receiving site owner, a Development Rights Bank, or a TDR investor in exchange for placing a conservation easement on the property.

"Sending site application" means an application that a sending site landowner must file in order to be eligible for consideration for designation as a sending site.

"TDR Administrator" means the County employee assigned to administer the Transfer and Purchase of Development Rights Program and to provide support to the TDR Technical Oversight Committee as set forth in PCC 2.101.040.

"TDR Technical Oversight Committee" means the Transfer of Development Rights Technical Oversight Committee established pursuant to Chapter 2.101 PCC.

"Transfer of Development Rights (TDR)" means the transfer of the right to develop or build from sending sites to receiving sites.

(Ord. 2013-87s § 1 (part), 2013)

18G.10.030 Participation in the Program.

The provisions of this Chapter apply throughout unincorporated Pierce County as follows:

A.    Optional Participation.

1.    Public and private land may participate in the Program as a sending site if the land meets the Sending Site Eligibility Criteria set forth in PCC 18G.10.050.

a.    In addition to meeting the Sending Site Eligibility criteria, public land shall also meet at least one of the following criteria:

(1)    The land is Tribal land;

(2)    The land is Department of Natural Resource land; or

(3)    The TDR Technical Oversight Committee determines that the land is under imminent threat of development, that the land is highly valued as conservation land, and that acquiring the development rights would not materially diminish the value of available private development rights.

2.    Land in Pierce County, or outside Pierce County when an interlocal agreement with the County is established, may participate in the Program as a receiving site when the land meets the Receiving Site Eligibility Criteria set forth in PCC 18G.10.060. (Note: Mandatory participation in the Program is required for certain lands as set forth in PCC 18G.10.030 B.)

3.    Conservation Futures Property acquired pursuant to Chapter 2.97 PCC may participate in the Program as follows .

a.    Any property type eligible for Conservation Futures purchases shall be eligible for purchase of non-transferable development rights.

b.    Transfer of development rights from a Conservation Futures property to a receiving site may be allowed if the Sending Site Eligibility criteria set forth in PCC 18G.10.050, are met.

c.    Land encumbered by a conservation easement created prior to the original effective date of the Program, November 1, 2008, shall not be eligible to participate in the Program.

B.    Required Participation.

1.    Urban projects proposing increased density pursuant to PCC 18A.15.020 E.1.b. shall obtain development rights as a County Receiving Site as set forth in PCC 18G.10.060.

2.    Properties eligible for increased density as the result of a Comprehensive Plan amendment pursuant to Chapter 19C.10 PCC shall obtain development rights as a County Receiving Site as set forth in PCC 18G.10.060, except that plan amendments in the 2015 update that result in residential development opportunities in zones that had previously prohibited residential use are exempt from participation.

C.    Land encumbered by a conservation easement created prior to the original effective date of this Program, November 1, 2008, shall not be eligible to participate in the Program.

(Ord. 2016-33 § 1 (part), 2016; Ord. 2015-86 § 1 (part), 2015; Ord. 2015-40 § 7, 2015; Ord. 2013-87s § 1 (part), 2013)

18G.10.040 Administration of the Program.

A.    Administrator. A Transfer and Purchase of Development Rights Administrator (TDR Administrator) supports the Transfer and Purchase of Development Rights Technical Oversight Committee (TDR Technical Oversight Committee) to administer the Program. Specific duties of the TDR Administrator are described in Chapter 2.101 PCC.

B.    Committee. A TDR Technical Oversight Committee, established pursuant to Chapter 2.101 PCC, administers and implements the Program in conjunction with the TDR Administrator and the Planning and Public Works Department (PPW).

C.    Bank. The TDR Administrator shall be responsible for managing the Development Rights Bank, as set forth in PCC 18G.10.150, with advice and direction from the TDR Technical Oversight Committee.

(Ord. 2017-12s § 2 (part), 2017; Ord. 2013-87s § 1 (part), 2013)

18G.10.050 Sending Site Eligibility Criteria.

A.    Sending sites shall contain a public benefit, and the preservation of that benefit, by transferring development rights to another site, is in the public interest. A sending site may be presumed to contain a public benefit if it meets at least one of the following criteria:

1.    The site has a land use designation of Agricultural Resource Land (ARL), Rural Sensitive Resource (RSR), or Forest Lands (FL).

2.    The site is located in the rural area and is zoned as rural residential (Rural Separator, Rural 10, Reserve 5, Rural 20, Rural 40, Rural Farm, or Rural Sensitive Resource); defined as Open Space Land pursuant to RCW 84.34.020; and used for agricultural operations.

3.    The site is identified in the Pierce County Comprehensive Plan, including community plans, or the Pierce County Park, Recreation and Open Space (PROS) Plan, as a regional trail or associated public purpose.

4.    The site contains habitat for a federally listed endangered or threatened species. Such determination shall be in writing from the Washington State Department of Fish and Wildlife, United States Fish and Wildlife Services, or from a federally recognized tribe.

5.    The site is designated as Recreational Conservation Lands which are located in an urban growth area, or are designated as urban or rural shoreline, and meet all of the following:

a.    The site is threatened with probable development within the next ten years;

b.    The site comprises a significant part of the inventory of available open space in an area or community; and

c.    The site provides the public with passive recreational opportunities or active recreational opportunities such as golf, baseball, softball, soccer or other sports or activities not requiring intensive development of the land.

6.    The site is identified as eligible sending sites by an interlocal agreement with the County.

B.    If a sending site consists of more than one lot, the lots shall be contiguous. For purposes of the Program, lots divided by a street are considered contiguous if the lots would share a common lot line if the street was removed, although this provision may be waived.

C.    The owner of a potential sending site shall resolve any outstanding Code violations, including any required abatement, restoration, or payment of civil penalties. In limited instances, outstanding Code violations may be allowed if the TDR Administrator or TDR Technical Oversight Committee determines that the owner has made a good faith effort to resolve the violations and the proposal is in the public interest.

D.    For sites on which the entire site or a portion of the site has been logged in accordance with a Class II, III, or IV Forest Practice, as defined in Chapter 76.09 RCW, within six years prior to application as a sending site, the applicant shall provide an affidavit of compliance with the reforestation requirements of Chapter 76.09 RCW.

FIGURE 18G.10.050-1 – Sending Site Process

(Ord. 2013-87s § 1 (part), 2013)

18G.10.060 Receiving Site Eligibility Criteria.

A.    A site that receives development rights from a Sending Site is a Receiving Site.

B.    Receiving Sites may be located in the County, or another jurisdiction, when there is an interlocal agreement with the County.

C.    Development rights may be acquired by a receiving site as follows:

1.    By purchasing development rights from a certified sending site(s);

2.    By purchasing development rights from the Development Rights Bank, or if insufficient credits are available from the Bank, then also;

3.    By providing funds to the Development Rights Bank to cover the cost of procuring the required development rights.

FIGURE 18G.10.060-1 – Receiving Site Process

(Ord. 2013-87s § 1 (part), 2013)

18G.10.070 Uses Allowed on a Sending Site.

In general, uses on a sending site shall be allowed as follows, and shall be consistent with the uses allowed in the underlying zone classification in accordance with Title 18A PCC, Development Regulations – Zoning.

A.    Uses allowed on a sending site shall be limited to non-residential uses that directly relate to the conservation values of the property, and which are supportive of the criteria under which the sending site qualified. Other development is allowed only when development rights have been reserved for such within the provisions of the Conservation Easement.

B.    Uses described in Chapter 18A.33 PCC, under the Resource Use Type, are generally permitted on a sending site.

C.    The following site specific limitations also apply, as applicable, to a sending site:

1.    For a sending site zoned Agricultural Resource Land (ARL) or other rural property conducting farm activities, the conservation easement shall permit agricultural uses consistent with Title 18A PCC, Development Regulations – Zoning.

2.    For a sending site zoned Forest Land (FL), forest management activities are allowed. A forest stewardship plan, approved by the County or an organization authorized by the County to approve such plan, shall be attached to the conservation easement. The forest stewardship plan shall not impose standards that exceed Chapter 76.09 RCW;

3.    For lands that are habitat for a federally-listed endangered or threatened species, the conservation easement shall protect the habitat and allow for restoration, maintenance or enhancement of native vegetation, while allowing farming and forestry activity on other portions of the site if the parcel is used for timber harvests or agricultural uses; or

4.    For Recreational Conservation Lands, the conservation easement shall permit uses compatible with open space values.

D.    After conveyance of a sending site's development rights, the property shall be maintained in a condition consistent with the public benefit by which the sending site qualified, in perpetuity.

E.    When only a portion of a sending site's development rights have been transferred or purchased, the remaining developable portion of the site may be developed or subdivided consistent with Title 18A PCC, Development Regulations – Zoning, and any other applicable development regulations.

(Ord. 2013-87s § 1 (part), 2013)

18G.10.080 Documentation of Sending Site Restrictions.

A.    Deed restrictions documenting the conveyance of development rights shall be recorded with the Pierce County Auditor on all applicable parcels and notice shall be placed on the title of the sending site indicating that a development right transfer has occurred.

B.    A conservation easement granted to, and accepted by, the County, or other appropriate land management agency, shall be required for the sending site.

1.    The conservation easement shall include the legal description of the conservation area and a corresponding map.

2.    The conservation easement shall identify limitations on future development consistent with this Chapter.

C.    Any development rights reserved for future development shall be identified in the conservation easement. All development rights not explicitly reserved in the conservation easement shall be converted to certificates, transferred, or extinguished through the conservation easement.

(Ord. 2013-87s § 1 (part), 2013)

18G.10.090 Development Rights.

A.    The number of development rights a sending site is eligible for under the Program is determined by applying the sending site density, as set forth in PCC 18G.10.090 B. below, to the area of the sending site. The area of a sending site is determined by the Assessor-Treasurer's tax parcel records, or by a survey prepared and stamped by a surveyor licensed in the State of Washington.

B.    For the purposes of calculating development rights, the following sending site densities shall apply:

1.    Sending site density calculations shall be consistent with the base density established in the applicable Residential Density and Lot Dimension table for the underlying zone in Title 18A PCC, Development Regulations – Zoning, except as otherwise specified in 2. through 4. below.

2.    Agricultural Resource Land (ARL) land located within the Mid-County or Alderton-McMillin Community Plan areas, and within 1,000 feet of an incorporated area's urban growth boundary, shall have a density of one unit per acre. If the sending site is bisected by the 1,000 foot urban growth boundary line, the sending site parcel shall have one development right per acre only for the portion of the site located within 1,000 feet of the urban growth boundary. The sending site shall have one development right per five acres for the area located outside of the 1,000 foot urban growth boundary

3.    ARL sending sites in the Mid-County Community Plan area that were zoned urban or Rural Separator (RSep) prior to the ARL zoning shall have the same amount of development rights to transfer as allowed under the previous zoning. For example, an ARL parcel zoned as Moderate Density Single-Family (MSF) prior to February 1, 2004, the effective date of Ordinance No. 2004-87s, shall have a density right of six dwelling units per acre.

4.    Sending sites zoned ARL, which are located in either the Mid-County or Alderton-McMillin Community Plan areas that do not meet the criteria of 18G.10.050 B.2. or 3. above, shall have a base density of one dwelling unit per five acres.

C.    Generally, one development right is granted for each dwelling unit, based on the density as calculated above in PCC 18G.10.090 B., that a sending site commits to a conservation easement.

D.    Any portion of a sending site that is developed, or is reserved for future development, shall be subtracted from the calculation.

E.    Any fractions of development rights that result from the calculations shall be rounded to the nearest whole number.

F.    A sending site may be entitled to one development right for every legal lot created on or before the original effective date of this Program, November 1, 2008, if that number is greater than the number of development rights determined under subsection A. of this Section.

G.    Each sending site shall have at least one development right.

H.    The TDR Technical Oversight Committee may consider development constraints and existing conditions when determining available development rights.

I.    Notwithstanding any other provision of this Chapter, the TDR Technical Oversight Committee may increase the number of development rights derived from a sending site, provided that such conversion rate shall be generally applicable to all sites in a zone, planning area or other designated geographical area, and follow the procedures established by the Committee.

1.    Such increase shall, in the judgment of the TDR Technical Oversight Committee, be necessary to the effective and efficient operation of the Program.

2.    The decision of the TDR Technical Oversight Committee, if appealed, shall be reviewed by the County Council, which may recommend modifications through an adopted resolution.

J.    All transferable development rights acquired from a qualified sending site shall be available for transfer through the Program, unless matching funding sources bar such use of the development rights.

(Ord. 2013-87s § 1 (part), 2013)

18G.10.100 Letter of Intent.

A.    Following review and approval of the sending site application, the Department shall issue a Letter of Intent for the proposed sending site conservation easement.

B.    The Letter of Intent shall contain a determination of the number of development rights calculated for the sending site pursuant to PCC 18G.10.090, Development Rights.

C.    A Letter of Intent may be used to market development rights to potential buyers, but the Letter of Intent shall have no value and cannot be transferred or used to obtain increased development rights within receiving areas.

D.    A Letter of Intent shall be valid for two years. The County may require additional review and fees if more than two years elapses between the issuance of the Letter and the submittal of documents associated with the conservation easement.

(Ord. 2013-87s § 1 (part), 2013)

18G.10.110 Development Right Certificate.

A.    Upon acceptance of a conservation easement, the County issues a Development Right Certificate(s) to the sending site owner following review of the sending site permit file and a site inspection.

B.    Upon recording of a conservation easement, the County converts development rights acquired from sending sites to a Development Rights Certificate. The Certificate may be sold or transferred to eligible receiving sites.

C.    Certificates may be transferred pursuant to PCC 18G.10.130, Transfer Process, and used by receiving site landowners.

(Ord. 2013-87s § 1 (part), 2013)

18G.10.120 Interlocal Agreements.

A.    Before transferable development rights may be used in other jurisdictions, the County and the other jurisdiction must first execute an interlocal agreement and get approval of the agreement from the County Council.

B.    At a minimum, each interlocal agreement shall include the following information:

1.    Description of the legislation that the receiving jurisdiction adopted or will adopt to allow the use of development rights.

2.    Identification of receiving area(s).

3.    Documentation of the applicable sending site use restrictions.

4.    If the jurisdiction is to receive amenity funds, the interlocal agreement shall set forth the amount of funding and the conditions subject to that interlocal agreement.

5.    The interlocal agreement may also indicate that priority should be given to acquiring development rights in specified geographic areas.

C.    The agreement may specify the development credit of a converted development right in terms of dwelling units, floor area, height, or other applicable development standard that a jurisdiction chooses, and any combination thereof.

(Ord. 2013-87s § 1 (part), 2013)

18G.10.130 Transfer Process.

A.    Development rights may be transferred to more than one receiving site, and a receiving site may accept development rights from more than one sending site.

B.    The determination of the number of development rights a sending site has available:

1.    Is valid for transfer purposes only;

2.    Shall be documented as transferable development rights in a Development Right Certificate; and

3.    Shall be considered a final determination not to be revised due to subsequent changes to the zoning of the sending site.

C.    Transferable development rights may be transferred, sold, or purchased in whole increments only.

D.    Transferring development rights from the County to another jurisdiction shall be completed using the application and review process of the other jurisdiction. The transfer shall be subject to an interlocal agreement with the County, as set forth in PCC 18G.10.120, Interlocal Agreements.

E.    The County, together with another jurisdiction, may establish by interlocal agreement general procedures for facilitating and completing transactions to transfer development rights from unincorporated Pierce County to that jurisdiction.

F.    Development rights that have been acquired and which have been extinguished by the County, or other qualified agency, are not transferable.

G.    Development rights from a County sending site may not be utilized in another jurisdiction without first considering the recommendation of the TDR Technical Oversight Committee relative to the transaction. Further, any such transfer into a participating jurisdiction shall not be allowed if the jurisdiction timely objects, after sufficient notice, through official action of its governing body; provided, the terms of this subsection may be altered by the terms of the participatory interlocal agreement between the jurisdiction and County.

(Ord. 2013-87s § 1 (part), 2013)

18G.10.140 Unincorporated Receiving Sites.

A.    Sites located in the unincorporated area shall be required to secure development rights from the Development Rights Bank or an eligible sending site in the following instances:

1.    The site contains an urban project which proposes increased allowable density using the provisions of PCC 18A.15.020 G.1.b.; or

2.    The site has received a Comprehensive Plan amendment, pursuant to Chapter 19C.10 PCC, and the amendment results in increased allowable density on the site.

B.    Table 18G.10.140-1 provides the development right conversion rate for County Receiving Sites.

1.    Required development rights for an urban growth area amendment, which has a map amendment component, shall be based only on the map amendment component.

2.    Acquisition of development rights is not a precondition for the Comprehensive Plan amendment approval.

3.    The required development rights shall be acquired before the County issues permits for any development on the Receiving Site.

4.    For approved amendments that result in the expansion of the urban growth area and are being proposed for annexation, the County and affected city or town shall enter into an interlocal agreement, as set forth in PCC 18G.10.120, Interlocal Agreements.

a.    The agreement shall require the transfer of development rights prior to the issuance of any permits by the city or town.

b.    The developer shall submit a development right certificate, or other proof of the transaction, to the Planning and Public Works Department (PPW) at the time of building permit application and prior to recording binding site plans, short plats, large lots, or final plats.

C.    The following formula shall be used to calculate the number of development rights needed by a County receiving site, based on the increased density allowed. Development Rights Required = (FD – OD) / Conversion Rate.

1.    FD = Final Density on site resulting from an increase due to Comprehensive Plan amendment or density incentive.

2.    OD = Original Density allowed on site before the change that increased allowable density. The original density is based on the maximum allowed in Residential Density and Lot Dimension tables of Title 18A PCC, Development Regulations – Zoning, using gross site acreage.

3.    Example: A landowner on a one acre site with a maximum density of 4 dwelling units per acre is approved for a Comprehensive Plan amendment allowing 14 dwelling units per acre. Development rights required = 14 – 4 / 5 = 2

4.    Site owners may request to vary from the Conversion Table, Table 18G.10.140-1, because of infrastructure improvements.

a.    The owner shall provide:

(1)    A description of the infrastructure improvement,

(2)    The party who will be making the improvements,

(3)    The cost of the improvement,

(4)    The estimated time of completion,

(5)    The proximity of the infrastructure improvements to the application site, and

(6)    A request to raise or lower the required development rights beyond the established conversion rate.

b.    The TDR Technical Oversight Committee may raise the amount of required development rights beyond the established conversion rate if the County or State has made, or is planning to make, significant infrastructure improvements near the receiving site.

c.    The TDR Technical Oversight Committee may lower the required development rights below the established conversion rate if the receiving site landowner has made or is required to make significant infrastructure improvements near the receiving area.

d.    For transactions described in b. and c. above, when funds are owed to the Development Rights Bank for costs of procuring the required development rights, the required payment shall be based upon the determination of development rights required by the TDR Administrator in consultation with the TDR Technical Oversight Committee.

D.    The TDR Technical Oversight Committee may periodically adjust the conversion rates, subject to the procedures set forth in PCC 2.101.020, to reflect prevailing market conditions to affect a viable market. The Committee shall avoid, to the extent practicable, disparities between the price of development rights or credits available for purchase from the Development Rights Bank and prevailing market prices for development rights or credits which a developer may purchase on the private market.

E.    The County, in consultation with the TDR Technical Oversight Committee, may waive or modify the development right requirements if it is determined by the Prosecuting Attorney's Office that strict application of the requirement in a specific situation would result in an unconstitutional taking of property or a violation of the property owner's right to substantive due process. Modifications made under this provision shall be no greater than necessary to avoid the taking or substantive due process violation. The Committee shall provide written documentation supporting each application of the provision.

Table 18G.10.140-1. County Development Right Conversion Table

Final Density

units/acre)

Conversion Rate

(per acre)

1

1.0

2

1.5

3

1.9

4

2.2

5

2.6

6

3.0

7

3.3

8

3.5

9

3.8

10

4.0

11

4.3

12

4.5

13

4.8

14

5.0

15

5.3

16

5.6

17

5.8

18

6.1

19

6.4

20

6.7

21

6.9

22

7.2

23

7.5

24

7.7

25

8.0

Note: This Table is simplified to show whole numbers. The full table with fractional densities is incorporated herein by reference and may be found at the Department of Planning and Public Works.

(Ord. 2017-12s § 2 (part), 2017; Ord. 2013-87s § 1 (part), 2013)

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.

(Ord. 2013-87s § 1 (part), 2013)

18G.10.160 Amenity Funding.

Amenity funds help mitigate the effects of added density and they are a method for attracting an incorporated city or town to take part in the Program. Amenity funds are most often used for additional transit facilities, parks, roadway and sidewalk improvements, public art installations and the construction of community facilities. Sometimes these types of funds come directly from the County. However, the burden of amenity funds also sometimes falls on the developer.

A.    Amenity funding may be available from Pierce County to a city or town as an incentive to enter into and utilize the Program.

B.    Amenity funding shall be described in the interlocal agreement and may differ between jurisdictions based upon unique needs.

C.    Expenditures by the County for amenities to facilitate development right sales shall be authorized by the interlocal agreements. Amenity funding shall not exceed the value of the increased development right it is intended to offset, nor shall amenity funding be available if the sending and receiving sites are each located within the same city or town.

D.    The County shall not expend funds on amenities in a city or town before execution of an interlocal agreement.

E.    Amenities may include the acquisition, design or construction of public art, cultural and community facilities, parks, open space, trails, roads, parking, landscaping, sidewalks, other streetscape improvements, transit-related improvements or other improvements or such other amenities that may be agreed to in the TDR agreement.

F.    Public transportation amenities shall enhance the transportation system. These amenities may include capital improvements such as passenger facilities if the improvements are within a designated receiving area or within 1,500 feet of a receiving site. These amenities may also include programs that reduce the use of single occupant vehicles, including transit pass programs.

G.    Road fund amenities shall enhance the transportation system. These amenities may include capital improvements, such as streets, sidewalks, street landscaping, and bicycle lanes, if these improvements are within a designated receiving area site or within 500 feet of a receiving site.

H.    All amenity funding provided by the County to facilitate the transfer of development rights shall be consistent with Federal, State, and local laws.

I.    The timing and amounts of funds for amenities paid by the County to each participating city or town shall be determined by an interlocal agreement.

J.    A city or town that receives amenity funds from the County is responsible for using the funds for the purpose and according to the terms of the governing interlocal agreement.

K.    To facilitate timely implementation of capital improvements or programs at the lowest possible cost, the County may make amenity payments as authorized in an interlocal agreement to a city or town before completion of the required improvements, as applicable.

L.    Pierce County is not responsible for maintenance, operation, and replacement costs associated with amenity capital improvements in other jurisdictions unless expressly agreed to in the interlocal agreement.

(Ord. 2013-87s § 1 (part), 2013)

18G.10.170 Exemption from Surplus Provisions.

Transfer of development rights by the County may be completed consistent with Pierce County's needs and in accordance with the criteria of this Chapter. The transfers are exempt from Pierce County real and personal property surplus provisions. (Ord. 2013-87s § 1 (part), 2013)