CBP/TRS-190/97
EPA 903-B-97-005
Beyond
Sprawl
Land Management Techniques
to Protect the
Chesapeake Bay
I
I
I
I
for Local Governments
Chesapeake Bay Program
EPA Report Collection
Regional Center for Environmental Information
US EPA Region HI
Philadelphia, PA 19103
-------
Chesapeake Bay
Local Government Advisory Committee
Upon signing the Chesapeake Bay Agreement in 1987, the Chesapeake Executive Council
determined that local governments would be an essential partner to achieving its goals. The Local
Government Advisory Committee (LGAC) was subsequently established to advise the Executive
Council of local government perspectives on the Bay restoration effort and to keep local
governments informed of the activities of the Chesapeake Bay Program.
Since 1988, the LGAC has taken many steps to increase local governments' awareness of the
challenges confronting the Chesapeake Bay clean-up effort, as well as broaden the Bay
Program's understanding of issues that local governments face in addressing these challenges.
The 1995 Local Government Partnership Initiative, adopted by the Chesapeake Executive
Council, established a goal and objectives in order to strengthen the Bay Program's partnership
with local governments.
A commitment of the Initiative was to develop a Chesapeake Bay Program strategy to broaden
the role local governments play in the protection and restoration of streams, rivers and the
Chesapeake Bay. A Local Government Advisory Committee Task Force, representing local,
state and federal governments, led an extensive one year process to develop the strategy. The
result was the development of the Local Government Participation Action Plan. From the input
of over 500 local government officials, the LGAC gained a better understanding of local
activities that contribute to the Bay restoration and protection effort, formulated commitments
that the Bay Program could initiate to better engage local governments, and identified the clear
role local governments can and are playing to significantly support the goals of the Chesapeake
Bay Program.
The LGAC will strive to make every effort to continue to be responsive to the needs of local
governments and to provide the necessary information to help them achieve their resource
protection goals. The LGAC welcomes any comments or suggestions on products that we
produce, including this Handbook. Additionally, we seek your input as to how we, as a
Chesapeake Bay Program committee, can better serve your interests to restore, protect, and
sustain the health of the Chesapeake Bay and its tributaries. Our combined efforts have and will
continue to have a profound effect on the future quality of life for all residents in the Chesapeake
Bay watershed.
Russell Pettyjohn, Chair
Local Government Advisory Committee
Mayor, Lititz Borough, Pennsylvania
-------
Regional Center for Environmental Information
US EPA Region III
1650 Arch St.
Philadelphia, PA 19103
Beyond Sprawl
Land Management Techniques to Protect the
Chesapeake Bay
A Handbook for Local Governments
U.S. EPA Region TIT
October 1997 ^egionsl Comer for Environmental
'
1650 Arch Street (3PM52)
Philadelphia, PA 19103
Printed by the U.S. Environmental Protection Agency for the Chesapeake Bay Program
-------
Beyond Sprawl
prepared on behalf of
the Chesapeake Bay Program's
Local Government Advisory Committee
h
Redman/Johnston Associates, Ltd.
Printed on recycled paper
-------
I
Table of Contents
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Background
Introduction i
Land Use and the Chesapeake Bay Hi
Techniques
Urban Growth Boundaries (UGBs) 1
What UGBs Can Do for a Community 2
Benefits to the Chesapeake Bay 3
Where Should the UGB Be Located? 3
How to Implement a UGB 5
Barriers 7
Models 8
Infill/Community Redevelopment 13
Creativity is the Key 14
Benefits to the Chesapeake Bay 15
Incentives 16
Barriers 16
How to Encourage Infill Development 17
Addressing the Issue of Brownfields 20
Models 21
Transfer or Purchase of Development Rights (TDR/PDR) 25
Benefits to the Chesapeake Bay 26
Incentives 26
Barriers 27
How to Implement TDK 27
General Legal Issues to Consider 33
Purchase of Development Rights 33
How to Implement PDR 35
Models 37
-------
Techniques (cont'd)
Transit Oriented Development (TOD) 43
What TOD Can Do for a Community 43
Benefits to the Chesapeake Bay 44
How is TOD Implemented? 44
Barriers 47
Models 49
Cluster Development 51
What Clustering Can Do for a Community 52
Benefits to the Chesapeake Bay 52
How to Implement Cluster Development 53
Mandatory or Voluntary Clustering? 56
Incentives 56
Barriers 57
Models 58
Traditional Neighborhood Development (TND) 61
What TND Can Do for a Community 62
Benefits to the Chesapeake Bay 63
What Role Can Local Government Play? 63
Barriers 64
Models 65
Financing Options
Financing Local Government Initiatives 69
Introduction 69
Finance as a Land Use Management Tool 69
Getting Community "Buy In" 70
Financing Tools 70
References
Appendices 81
References 87
-------
Background
Introduction
Land Use and the Chesapeake Bay
-------
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Introduction
The Local Role in Protecting the Bay
The Chesapeake Bay, one of the most diverse and productive
estuaries in the world, is a regional and national treasure. The
Bay's resources provide economic, social and environmental value
to over 14.9 million citizens living in its watershed. Local
governments in the Bay watershed play a significant role in the
protection of the Chesapeake Bay. Indeed, many of the more than
1,650 local governments throughout the watershed are
demonstrating their commitment to the protection of local
natural resources and the Chesapeake Bay by developing
programs and completing projects that contribute to the overall
health of the Chesapeake.
The role local governments play in effectively managing land use
is increasingly important as population and the amount of land
consumed by development grow. The watershed's vast land area
drains into tens of thousands of local streams, rivers and eventually
the Chesapeake Bay a very shallow and sensitive estuary.
Therefore, the decisions that local governments make regarding
land use management can either help to protect local natural
resources and the Chesapeake Bay or dramatically harm them.
Current trends in land use development are increasingly affecting
the health of the Chesapeake Bay. Furthermore, local
governments have recognized that these patterns and densities of
development can be very costly, consume valuable resource lands,
and blur the once-distinct character of communities.
The Purpose of the Handbook
Beyond Sprawl - Land Management Techniques to Protect the
Chesapeake Bay is designed to promote more effective measures to
balance the growth objectives and resource conservation goals of
local governments. The Handbook provides "how-to"
information on techniques that local governments can implement
to achieve community goals, preserve local natural resources, and
protect the Chesapeake Bay. The Handbook complements the
Beyond Sprawl video which highlights six land management
techniques by demonstrating their effectiveness in model
communities throughout the watershed. The video gives a brief
overview of urban growth boundaries, infill development/
community redevelopment, transit oriented development,
Introduction « i
The purpose of the
Handbook is to provide
"how-to" information on
six land use management
techniques that local
governments can
implement that achieve
community goals, preserve
local natural resources,
and protect the
Chesapeake Bay.
-------
transfer of development rights, cluster development,
traditional neighborhood development.
and
Providing information to
assist local governments
in their land use
management decisions is
an aim of the Chesapeake
Bay Local Government
Advisory Committee.
The Handbook expands on these land management techniques by
discussing their benefits to both the Chesapeake Bay and the local
governments that utilize them. In addition, the Handbook
identifies the steps local governments might take to implement
the land management practices and tools described herein. Some
details concerning the use of these techniques are further
illustrated by successful local government models that
demonstrate local application.
Although many local governments share similar land
management problems in the Chesapeake Bay watershed, not all
the techniques described in this Handbook will be applicable to
every community. However, the Handbook's techniques will
help to challenge your community to develop its own means to
address the impacts of sprawl growth and development patterns
that are affecting communities and the Chesapeake Bay.
The Chesapeake Bay Program - Making the
Connection
The Handbook is one of many technical assistance products being
prepared for local communities in the Chesapeake Bay watershed.
These technical assistance tools support the Chesapeake Bay
Program's efforts to broaden the role of local governments,
citizens, and the private sector in protecting the Bay. Recently
adopted Bay Program policies, including the Local Government
Participation Action Plan, the Priorities for Action for Land,
Growth, and Stewardship in the Chesapeake Bay Region, and the
Riparian Forest Buffer Initiative, demonstrate the Chesapeake Bay
Program's commitment to protecting the Bay by encouraging and
supporting local decision-makers as they manage the lands in the
Chesapeake Bay watershed.
The Challenge to Local Governments
Local governments are key players in managing how and where
growth occurs and therefore, are the primary audience for the
Handbook. The LGAC realizes that implementing bold,
innovative land management initiatives in a community is a
difficult task. Having the right information, obtaining
community support, and acquiring the necessary resources are real
challenges facing local governments considering any of the
techniques described in the Handbook. We hope that the
information provided in Beyond Sprawl will help local
governments address those challenges.
ii » Beyond Sprawl Handbook
-------
I
I Land Use and the
- Chesapeake Bay
Making the Connection
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
The 64,000 square mile Chesapeake Bay watershed is a vast land
area, over 41 million acres, spanning six states and the District of
Columbia. Pollutants drain off this large land area into over
100,000 miles of interconnected creeks, streams and rivers which
ultimately feed the Chesapeake Bay. The shallow nature of the
Chesapeake it averages 21 feet in depth makes it extremely
susceptible to pollution draining off the land. In addition, the
creeks, streams, and rivers of the Chesapeake provide valuable
habitat to thousands of aquatic species, including striped bass,
herring, migratory waterfowl, oysters and crabs. By taking
measures to conserve land resources, local governments can
protect and sustain the health of local natural resources and the
Chesapeake Bay.
The Chesapeake Bay watershed is recognized as an urbanizing
region. Recent trends indicate that we are moving away from
major urban centers and building larger lots in rural and suburban
areas. From 1990 to 1994, the populations of Richmond,
Baltimore and Washington D.C. dramatically decreased.
The migration to suburban and rural areas has stressed natural
resources and resulted in sprawl patterns of development. Sprawl
development encroaches upon undeveloped land to form
low-density settlements that result in the underutilization of
existing services, create new infrastructure requirements, increase
the amount of impervious surfaces, and encourage a reliance on
the automobile. Consider the following growth and development
trends in Maryland.
21% - The projected population increase by the year 2020.
20% - The decline in city population due to out-migra-
tion to suburban areas between 1970 and 1990.
30% - The increase in number of households by the year
2020 as a result of shrinking household size.
36% - The average increase in the size of lots created in
new development since 1985.
100% - The projected increase in land consumed by devel-
opment by the year 2020 if the current trends continue.
Land Use and the Chesapeake Bay « iii
-------
The Effects of Urbanization
In urbanizing areas, resource lands and environmentally-sensitive
lands are being developed, which removes large amounts of
vegetative cover that act as natural buffers or filters of pollution.
The urbanization process includes grading and clearing existing
vegetation trees, shrubs and grasses and natural swales that
serve as buffers and filtration ponds for rainwater. These natural
areas are replaced by impervious surfaces roads, roofs, parking
lots which lack buffering capacity and allow pollution to enter
streams, drinking water systems, and municipal stormwater
management systems at much higher rates. Additionally, these
impervious surfaces increase erosion and flooding potential
which can damage property. (Vegetative Practices for Nonpoint
Source Pollution Prevention Management, HRPDC)
As levels of imperviousness increase, the effect on a stream
system's integrity is compromised. As rainwater runs off
impervious surfaces, it carries with it pollutants such as oil, grease,
and heavy metals. In addition, the rainwater draining off the
landscape washes fertilizers, pesticides, and herbicides into local
streams. Combined, the flow of nonpoint sources of pollution
affects the health of local natural resources and the Chesapeake
Bay.
Effects of increased imperviousness:
greater contamination of creeks, streams, and rivers,
higher rates of erosion, sedimentation, and channeliza-
tion,
increased pressure on living resources.
As our landscape changes, the amount of effort required to protect
natural resources and the Bay will increase. In addressing that
challenge, local governments may consider implementing some of
the land management techniques in this Handbook. Additionally,
local governments should consider instituting other measures to
preserve the watershed's stream corridors. Creeks, streams and
rivers are the Bay's life-line, providing freshwater, habitat and
other essential elements to the estuarme system. They also
provide environmental, economic, and aesthetic value to the
communities of the Chesapeake Bay watershed.
Consequently, many local governments are focusing on the
protection of their streams as a means to combat the effects of
urbanization, as well as to achieve community goals and preserve
community values. By including streamside forest buffers and
iv « Beyond Sprawl Handbook
-------
I
I
best management practices into current zoning and subdivision
regulations and stormwater management ordinances, local
governments are making strides in their protection of stream
corridors.
Protecting Stream Corridors
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Much scientific information in recent years has suggested that
forested buffers along streams and shorelines help filter sediment
and nutrients from runoff and shallow groundwater before
entering our streams. Forested buffers also enhance streamside
habitat and have economic value. In an urbanizing region,
forested buffers play a large role in helping to protect the health
of streams and water quality.
The Chesapeake Bay Program underscored the importance of
forested buffers in protecting the Chesapeake by adopting the
Riparian Forest Buffer Initiative, which states that all existing
riparian forest buffers should be protected and that an additional
2010 miles should be planted by the year 2010.
Local governments can play a large role in preserving forested
buffers along streamsides by purchasing property and/or
instituting ordinances and regulations that require the protection
of forested buffers from development. Many local governments
throughout the watershed are indeed taking such initiatives in
order to achieve local government goals and help to protect the
Chesapeake Bay.
In addition to developing forested buffer protection programs,
local governments can implement other best management
practices that can protect local stream corridors. These measures
have demonstrated their ability to prevent nonpoint source
pollution from entering waterways, as well as to provide effective
stormwater management.
Best management practices, including the utilization of vegetation
and other natural infrastructure, can also reduce costly
investments in engineered stormwater facilities. By requiring the
use of best management practices in new developments, local
governments can work with citizens and developers to achieve
community resource protection goals.
A combination of both engineered "solutions" and best
management practices is considered the preferred approach to
stormwater management. Best management practices include
proper landscape design and environmentally-sound landscape
Land Use and the Chesapeake Bay « v
-------
management. By setting aside land for the channelization and
detention of stormwater and designing grass swales and detention
ponds in new developments, local governments can achieve water
quality goals, developers can reduce their infrastructure costs, and
citizens can enjoy the aesthetic value of additional open space in
the community.
Local governments can contact their state representatives and local
conservation district representatives to learn more about forest
buffers and best management practices and how they can be
applied.
The Role of Local Government
The role of local government represents those actions local
governments can take or are taking to efficiently manage land
resources and protect the Chesapeake Bay. The role was defined
in a Local Government Participation Action Plan which was
developed by a Bay Program Task Force with the input from over
300 local government representatives.
Role 1: Land Use Management and
Stewardship
Implement and support measures that reduce resource
consumptive and costly sprawl patterns of development by
encouraging the revitalization of existing communities and
promoting sustainable development patterns.
Implement and support measures to protect resource lands such
as agricultural and forested lands to conserve the countryside and
protect "water quality and -wildlife habitat.
Role 2: Stream Corridor Protection and
Restoration
Establish protective measures for the preservation and
conservation of stream corridors.
Implement measures to coordinate and support individuals,
community associations, local conservancies, watershed
organizations, and non-profit/private interests to protect,
enhance, and restore wetlands, forest buffers and stream corridors
important to water quality and fish and wildlife habitat.
vi « Beyond Sprawl Handbook
-------
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Role 3: Infrastructure Improvements
Implement measures to upgrade sewage treatment plant facilities
to improve water quality through the implementation of nutrient
removal technologies.
Implement measures to upgrade, maintain and inspect stormwater
management infrastructure to protect water quality.
Implement measures to encourage the proper use, and periodic
maintenance of septic systems to protect water quality, plant, fish
and wildlife habitat.
Implement measures to provide public access to the Chesapeake
Bay, its tributaries and streams and other parks and greenspaces.
Operate, enhance, and facilitate recycling, household hazardous
waste collection, small business pollution prevention and solid
waste management programs, in support of Bay Program waste
reduction and pollution prevention objectives.
Land Use and the Chesapeake Bay « vii
-------
c
CD
E
d.
"CD
CD
D
03
D-
11
O)
nj a)
CQ T3
3
U
QJ
O
(J
vo scenarios of
E>
U
cx
-3
g
t/;
OC
G
H
growth in the coming years.
^
cc
D.
L/^
3 g . y -g 2 £;"
c K G ' 55
£JTs-S 15
-G S-CX3 G 3 ~?
^ G o o i*
° 2 S 1 T.
_c in G . >>
The Sprawl Development scenario s
landscape may look if we continue
our current patterns of developmi
concerning the rate of land consul
region paint an alarming picture
landscape could become cluttered b
4_>
C
CD
£
Q.
_2
^ ^
'0 ^
rt ^
QJ 4-> "^^
land-consuming development if of
explored. This form of growth is
local natural resources and the Chesa
4J
SI
- 5-
CS S"i~
c
1 CD ^
] ^ *)
vi a, _C P? CD
« S " " o
^ So ^
* 3 T3 Sf J
0 U " ^ "
2 P G u a .
«^ S-S S S
The Alternative Development seen
how our landscape could develop i
combination of the techniques pre
handbook. Growth that occurs in
preserve environmentally-sensitive fe
water quality, and conserve open spa
OJ
rt
OJ
ff
O
Each illustration is intended to st
""8 G
b'S
11
'B
OJ t/>
-T3 ^w
^ 3
§.s
il
_c^ rt
O
^
CD n3
6 S
° 2
i-> U
"^ O-
rt
CD "U
TS g
w X
!^ O
c y*1
o 6
4 i
G
3
O
rt
M-t
O
rt
P-,
1
CD
4-J
land consumed for these uses is not
ve Development
ent scenario.
less land is consumed in the Alternatv
scenario than in the Sprawl Developm
-------
-------
l/l
+->
u
u^
D
> ^
S5-H
eg
II
^ n; # ~
c 3 -8 ^
o a
2^
O- OJ
E
3 ti
^ CD
£>
"
CD
0 3
CU
U
p
a,
2 e o S
£ rt u
11 1 W 0
-
O
Z w
S.
M S
16
O)
03
CD
Q.
03
a:
I/I
D
CD
U
a>
03
c
o
CD
-------
IS.
-------
Techniques
Urban Growth Boundaries
Infill/tommunity Redevelopment
Transfer of Development Rights
Transit Oriented Development
Cluster Development
Traditional Neighborhood Development
-------
Urban Growth
Boundaries (UGBs)
An urban growth boundary (UGB) is a planning tool that provides
guidance for future growth by establishing a dividing line between
areas appropriate for urban- and suburban-level development and
areas appropriate for agriculture, rural, and resource uses.
Communities seeking a means to prevent sprawl development
patterns can utilize urban growth
boundaries to more effectively direct
growth. They provide a legal basis or
justification for local decision-making at the
urban edge. Lands appropriate for future
urban and suburban uses are included
within the boundary, while lands that
should remain rural fall outside the
boundary.
The UGB is typically set for a ten to twenty
year period and should allow for
adequate development opportunities
within the boundary for this time period.
While it is necessary to reexamme the
boundary during this period and possibly
make revisions, it should remain fairly
consistent in order to maintain the market's
confidence in the UGB's effectiveness. Consistency in the
location of the boundary provides local governments with the
knowledge needed to budget for capital improvements and
infrastructure investment within the UGB.
The urban growth boundary, which is also sometimes called a
development service district, defines areas already provided with
public services sewer, water, roads, police, fire, and schools
where growth should occur. If the area within the boundary is
not already served by public services, there should not be any
major physical or financial barriers to extending them within the
twenty year time frame.
Source: Greenbelt Alliance
Urban Growth Boundaries » 1
-------
Boundaries should be
matched with a strategy
for ensuring efficient
and timely development
and providing needed
urban services for that
development.
- Greenbelt Alliance, Fact
Sheet: Urban Growth
Boundaries
What UGBs Can Do for a
Community
Encourage Community Revitalization
Land to be developed in rural areas is limited by the urban growth
boundary and thus, developers seek available sites within the
boundary for development, infill, or redevelopment. The results
are an improved tax base through redevelopment of underutilized
sites and sites occupied by obsolete uses, and infill development
of vacant lots. Infill development promotes better utilization of
existing services, more efficient use of community infrastructure,
and often provides more opportunities for affordable housing.
Urban growth boundaries provide an incentive to reinvest in
existing neighborhoods, thereby revitalizing communities, while
also defining the edges of communities which prevents them from
merging into one another and preserves their distinct identities.
Save Money on Infrastructure Costs
By targeting growth to areas already served by public sewer and
water, infrastructure costs are reduced. Local governments
manage costs for infrastructure by defining the limits of new sewer
and water facilities, roads, schools, recreational facilities, etc.
Areas that possess the necessary public services are utilized and
areas without such services are preserved. Limiting the expansion
of new services and maximizing the use of existing investments
keep taxes lower. Knowing where growth will occur means local
governments are able to engage in long-range capital improvement
planning and makes investments in infrastructure more
cost-effective.
Reduce Traffic Congestion
Compact growth patterns generated by urban growth boundaries
can reduce the number and length of trips and enhance highway
capacity. Longer travel distances to places of employment
accounted for approximately one-third of the increase in vehicle
miles of travel in the 1980s, even without taking population
growth into consideration.
UGBs provide opportunities to enhance existing public transit.
Boundaries encourage higher densities, thereby having a positive
impact on the use of public transportation systems. Studies have
shown that a doubling of density reduces per capita travel by up
to 30 percent.
2 » Beyond Sprawl Handbook
-------
Preserve Farmland
Outside of the boundary, natural resource lands and farming lands
are conserved. Setting the limits on urban expansion gives
landowners a sense of permanence for their agricultural lands
which may encourage them to continue to invest in their farming
operations. Preserving agricultural lands maintains and protects
the economic base for a county in areas best suited for the farming
industry, and also supports a community's rural character in areas
outside of the urban growth boundary.
Benefits to the Chesapeake Bay
While urban growth boundaries serve many purposes for a local
community, they also have a larger effect on the Chesapeake Bay.
By limiting the distances travelled by car, air pollution is reduced
which improves water quality. Additionally, fewer new roads
mean less impervious surfaces which decreases run-off of harmful
pollutants into rivers, streams, and ultimately, the Chesapeake
Bay.
Preserving resource lands from development means habitat for
living resources in the watershed is protected. More forested areas
remain intact that act as buffer systems and protect water quality.
Where Should the UGB Be
Located?
Delineation of the boundary typically focuses on lands directly
surrounding already developed areas. However, making the
decision concerning the boundary can be difficult since its location
can affect the degree to which it accomplishes its purpose. Too
large an area can result in sprawl and high public service costs; too
little can restrict the market for new development. Therefore, a
community needs to establish criteria to guide the delineation of
boundaries.
Criteria to be considered include:
The availability of public facilities and services.
Public facilities include transportation-related facilities, water,
storm and sewer systems, parks and recreation facilities, and
schools. Public services include fire protection, law enforcement,
public health, education, recreation, environmental protection,
and government services. The urban growth boundary is based
Municipalities must be
prepared to provide for
the full range of public
facilities and services
within the UGBs.
Ideally, infrastructure
should precede
development. If not, it
should occur
concurrently.
- Lancaster County Growth
Management Plan
Urban Growth Boundaries « 3
-------
Urban Service Area -
Defines area where
water, sewer, roads and
other urban services
will be extended.
Usually based on
short-term (5 year)
planning horizon.
Urban Reserve - Defines
area that is to be
considered for
development after a
longer period of time
(10-20 years).
on areas that are served by existing services and facilities or that
can be provided with services at a reasonable cost and within a
specific time frame.
The amount of land needed to accommodate regional growth.
When delineating the boundary, there must be adequate buildable
area to meet projected 20 year growth expectations and to provide
opportunities for a variety of housing types and supporting uses.
Providing too large an area can defeat the purpose for which the
UGB is intended. Too small an area can restrict market
opportunities for growth.
Accommodating the mix of land uses needed to foster orderly
and efficient community development.
By encouraging residents to live close to where they work and by
providing convenient retail services, vehicle miles traveled are
reduced and communities become more self-sufficient.
Therefore, to support and offset the costs of residential needs, land
area provided for employment (industrial, office, and commercial)
development should be balanced and where possible, co-located
with land area for residential development. Since high density
residential will not appeal to all residents, land for low density
development should still be allocated when the boundary is
delineated.
The need to protect land from premature and unnecessary
development.
Geographically-compact, urban development patterns minimize
the negative fiscal and environmental impacts of growth. Urban
growth boundaries should be implemented in areas threatened by
"leapfrog" and "strip" development patterns which are more
costly and more environmentally damaging.
The responsibility to protect environmentally-sensitive areas.
The areas within the boundaries should be capable of supporting
urban development without significant environmental
degradation. If environmentally-sensitive lands are prevalent
within the UGB, it may need to be larger to assure their protection
while accommodating projected growth.
4 « Beyond Sprawl Handbook
-------
The necessity to ensure fairness when delineating the
boundary.
Because the boundaries serve as a commitment by the local
government to provide services within specific areas, the
delineation of the boundary must be based on fair criteria. Using
man-made features such as roads may be too arbitrary and thus,
natural features are seen as more just. Physical features such as
stream corridors, wetlands, or forests better define a logical area
for the boundary.
How to Implement a UGB
As a growth management tool, the urban growth boundary
should first be included in a local government's comprehensive
plan. It is a crucial foundation of the land use plan element. It
should also be reflected in the community facilities and/or
sensitive areas protection plan elements. Finally, the zoning
ordinance and map need to be clearly connected to and supportive
of UGB objectives.
Development within the urban growth boundary will occur
gradually. Areas within the UGB that are not to be developed
immediately can be protected with techniques such as adequate
public facilities ordinances, capital improvements plans, sewage
facilities plans, and zoning strategies to phase in growth. Land
within the boundary should be zoned or identified for
development potential at the outset. Areas identified for future
municipal services should not be zoned for development until the
initial growth areas have been developed.
There are basic steps to be followed in establishing an urban
growth boundary. Some jurisdictions utilize a very precise
measure of optimal land area to be contained within the boundary
based on population projections. It is also possible to delineate a
boundary based on less level of detail.
1) Examine the growth issues being faced
A community should determine what problems are to be
addressed by an urban growth boundary. Examples are: 1) growth
that overburdens public services; 2) abandoned urban areas; 3)
high costs for infrastructure construction which may overburden
the taxpayer; or 4) sprawl development that bypasses significant
amounts of developable land.
The major advantage of
the Development
Service District concept
is to map in advance
those areas where the
County will accept a
responsibility for
providing
infrastructure or will
accept the
responsibility for
working with
development interests
of the County to be
sure it is put in place.
- Isle of Wight County, VA
Comprehensive Plan
Urban Growth Boundaries » 5
-------
2) Establish a public participation process
As the comprehensive plan is being developed, it is important to
build consensus on its contents. Public understanding of the
rationale for designating the boundary and the long term benefits
that can be expected is crucial. Public participation will also help
the decision-making process.
3) Determine the boundary's goals
There are specific goals which the boundary can address such as:
a) promoting compact development; b) providing cost-effective
infrastructure; c) preventing traffic congestion on rural roads; or
d) ensuring the economical use of tax dollars in locating
infrastructure and public service delivery systems. By
determining the boundary's goals, its role in the land use plan can
be established.
4) Collect and analyze data
A knowledge of existing conditions is necessary to determine
location of the boundary, acreage to be included, and density
targets. Topics to be studied include:
services provided to the affected area;
demographics;
land use;
natural features with an emphasis on conditions that
limit development;
local policies related to land use and development;
effects of local regulations and actions;
market conditions affecting the sale of properties;
densities established by local jurisdiction.
5) Map the boundary
Enough land must be included within the boundary to allow for
necessary development to accommodate growth during the
proposed period. In choosing the size of the boundary, one must
consider:
projected population;
years of growth to be accommodated by the boundary;
target density for land within the boundary;
amount of land needed to accommodate growth, bearing
in mind the target density;
6 « Beyond Sprawl Handbook
-------
density limits established by existing zoning;
proposed density vis-a-vis infrastructure capacities.
6) Adopt the boundary and
implementation procedures
Once a local government adopts the boundary, it must be
supported by implementation mechanisms. These may include
modifying the comprehensive plan or the zoning ordinance. The
zoning map should be amended to graphically express the
boundary. Public hearings will help to increase awareness of the
boundary and its purpose.
Barriers
Landowners and developers may oppose urban growth
boundaries because it restricts the amount of land available to
develop. Local residents may oppose higher density
developments in their neighborhoods if they are increased
appreciably within the boundary.
Interjurisdictional cooperation is a key element to the success of
an urban growth boundary. Thus, participating towns and
counties need cooperative planning and zoning regulations that
complement the UGB. The delineation process should emphasize
citizen participation. If mechanisms are not in place to encourage
regional cooperation, the boundaries in one community may
adversely affect land use management strategies in an adjacent
community.
Assuring an adequate
urban growth area land
supply for industrial,
commercial, and
residential uses can
greatly ease
apprehensions about
urban growth area
designation.
- Washington State
Department of Community
Development
Urban Growth Boundaries 7
-------
Models
Isle of Wight County, Virginia
Officials in Isle of Wight County recognized that growth in the
Hampton Roads area was affecting the rural character and image
of the County. To address growth management challenges,
development service districts were included in the 1991
Comprehensive Plan. The County selected three development
service districts and highlighted them both in the Plan and on the
Land Use Plan Map.
Development Service Districts
The Land Use Plan Map indicates designation of three strategically
located Development Service Districts which generally coincide
with portions of the major transportation corridors and potential
future Hampton Roads Sanitation District (HRSD) sewer service
areas.
Areas designated as Development Service Districts have served
and are expected to continue to serve as the principal residential,
commercial and employment centers of the County. These areas
comprise the most suitable locations for future growth and
development. Targeting growth in and around these areas
prevents the outward sprawl of development into other County
areas, and concentrates future residential growth in areas where
residents can be economically provided with utilities, services, and
employment. In addition, the impact upon the County road
system is minimized since families have the opportunity to be
located physically close to the jobs and services which they
require. These considerations, plus the need to preserve the open
character of the County's outlying rural areas, indicate that the
areas designated as Development Service Districts should
accommodate most of the County's residential, commercial and
industrial growth through the year 2010.
Why it Works
The major advantage of the Development Service District concept
is to map in advance those areas where the County will accept a
responsibility for providing infrastructure or will accept the
responsibility for working with the development interests of the
County to be sure it is put in place. However, this in no way
8 « Beyond Sprawl Handbook
-------
implies that the full costs of development will be borne by the
general County taxpayer. By providing opportunities for
development in these areas, the County better achieves its resource
protection and its agricultural conservation objectives by reducing
pressure for development in other County areas dominated by
farming activity or sensitive natural resources.
To improve the visual and functional qualities of development
within the Development Service Districts, the County revised its
land use management ordinances to establish performance
standards for landscaping, control of access, lot coverage, and
buffering from adjacent transportation corridors. Commercial
and industrial forms of development within the Development
Service Districts are carefully evaluated to ensure compatibility
with existing and planned residential areas.
Permitted development density and intensity is not uniform
throughout the Development Service Districts. Existing
single-family neighborhoods are buffered from high intensity
non-residential and future high density residential development.
The Activity Centers identified on the Land Use Plan Map are
intended to accommodate higher land use intensities and provide
a focus for development centers within the Development Service
Districts. This designation assures variety in development form
and identifiable commercial and residential centers of activity
within the overall Development Service District area.
Since highest residential densities are encouraged in the areas
designated as Activity Centers, generally lower densities should
be prescribed in other portions of the Development Service
Districts. Finally, it is important to note that residential density
designations within the Development Service Districts are
influenced by the existing development pattern already
established. Creation of zoning districts and standards for
development require focus on a site-by-site level to frame districts
and standards which respect existing neighborhood patterns,
densities, and soil conditions in the absence of central sewer
systems.
For more information, contact: Mary Ann Welton, County of Isle of
Wight Department of Planning and Zoning, 17140 Monument
Circle, Suite 201, Isle of Wight, VA 23397.
Lancaster County, Pennsylvania
In the 1993 Growth Management Plan for Lancaster County,
urban growth boundaries were introduced as a tool to manage
Urban Growth Boundaries * 9
-------
growth and development. The Plan proposed the establishment
of thirteen UGBs, around Lancaster City and each of the twelve
boroughs, where the majority of future growth should occur.
The Lancaster County Planning Commission developed a process
to develop the boundaries called cross-acceptance.
Cross Acceptance Process
INITIAL MUNICIPAL MEETING
Planning Commission Presentation
PLsc 2
INITIATION OF CROSS-ACCEPTANCE PROCESS
Molion lo appoint UGB Commillcc
CROSS-ACCEPTANCE WORKSHOPS
Initial Municipal Meeting
Workshop 1 WorLanop 2 Workshop 3
Consensus of Jala & process Piepare Jrafl UGB Prepare rural laiul use Jcsignalions
P/M.^ 4
PUBLIC PARTICIPATION
Planning C. oniinission Meetings
Plmsc 5
ADOPTION OH
URBAN GROWTH BOUNDARIES
Amend Compienensive Plan
PL,-,- 0
ADOPTION OE IMPLEMENTATION TOOLS
Adopt amendments to zoning orumanee
10 » Beyond Sprawl Handbook
-------
Why it Works
Lancaster County has been able to act as the facilitator for
municipalities as they designate urban growth boundaries. Setting
County-wide objectives helps to create a more cohesive process
for channeling growth into the appropriate areas. Municipalities
are asked to send individuals to meet on a regular basis with the
Lancaster County Planning Commission which helps to ensure
consistency between municipal and County plans.
Public participation has been encouraged through the cross
acceptance process and therefore, support has been generated for
the urban growth boundaries. The needs of residents have taken
into account in the planning process as well. Livable communities
do not occur simply by directing growth; social, physical, and
recreational needs must also be accommodated. The County has
made every effort to set objectives for the urban centers that will
result in livable communities.
For more information, contact: Scott Standish, Lancaster County
Planning Commission, 50 N. Duke Street, Lancaster, PA 17608.
Urban Growth Boundaries » 11
-------
Infill/Community
Redevelopment
Infill development is a planning tool designed to revitalize existing
communities by promoting the development of new homes,
commercial buildings, and public facilities on unused or
underutilized lands in existing urban centers. Community
redevelopment is a planning tool to revitalize neighborhoods by
redeveloping existing buildings and properties that are severely
blighted and diminish the character and function of a
neighborhood. By promoting infill and community
redevelopment, a community can revitalize existing communities,
promote downtown businesses,
provide adequate and affordable
housing on existing infrastructure, and
reduce the consumption of resource j
lands and environmentally-sensitive ,.-::;;l,;;^-' = '
J *sTe'a>W$f -.,.
lands.
In considering the promotion of infill
development and community
redevelopment within a community,
local governments must evaluate the
issues affecting existing neighborhoods,
understand the barriers to redeveloping
those communities, and consider
making changes to current local Infill Housing Project, Vancouver, Canada
government regulations that may impede successful infill
development.
Infill and community redevelopment projects are often small
compared to large suburban developments. Therefore, they may
be less appealing to developers and lending institutions. However,
because of the small nature of most infill and community
redevelopment activities, both small and large developers have an
opportunity to compete in the market. Large development is not
precluded from infill or community redevelopment projects
the potential certainly exists. For instance, where large areas of
public land is being sold, or parcels of land are being consolidated,
or large abandoned buildings are purchased, infill and community
redevelopment projects have the potential to be large
development undertakings. In these cases, where new
development projects can literally change a neighborhood's
landscape, the design of such development should be in keeping
with the character of the existing community.
Infill/Community Redevelopment » 13
-------
Creativity is the Key
Infill and community redevelopment projects do not come free of
development barriers. There are many obstacles that must be
overcome in order to develop a market conducive to successful
revitalization projects. Those obstacles may include: local
government's restrictive land use regulations, which may reduce
the market value of community development; environmental
constraints that can be costly to address before redevelopment can
occur; and, pressing social and economic issues in neighborhoods.
Successful revitalization projects have the support of people and
institutions that are willing to work to get beyond those obstacles.
Consequently, it takes a combination of progressive, motivated
and creative individuals and institutions, including local
governments, developers, lending institutions, and citizens, to
create a climate conducive to successful community revitalization
efforts. Creativity is the key throughout the development of any
infill and community redevelopment project.
Local Governments
Local governments must be creative in their regulations to ensure
that zoning and building codes are supportive of revitalization
projects and community goals. For instance, if zoning requires
single family dwellings in a market that desires multi-family
housing or mixed use development, then zoning must be revised
to create an appealing atmosphere where housing and commercial
infill development projects can thrive. Building codes should be
such that the design of community redevelopment projects is in
keeping with the existing design and character of a neighborhood.
Citizens
Citizens and community organizations, often the catalyst for
successful revitalization projects, must also be creative in creating
a vision for the community. If that vision includes infill
development and community redevelopment, then citizens and
citizen groups can be catalysts for change in order to create an
environment for such development. Citizens can be major
players in encouraging local governments to revise existing
regulations to create a better environment for infill and
community redevelopment. In addition, citizen organizations
and non-profit institutions can be formed to target potential infill
development and redevelopment initiatives and solicit project
funding from local, state, and federal sources.
14 » Beyond Sprawl Handbook
-------
Developers
Developers play a major role in redevelopment efforts; therefore,
their level of commitment and creativity will also be important
to the success of community redevelopment projects. Developers
must creatively design new infill projects, work cooperatively
with neighborhood groups, citizens, and local governments, and
target potential markets.
Lending Institutions
Finally, local lending institutions must be progressive, bold, and
community-oriented in order to support the financial aspects of
developing in older communities. Although federal regulations
require investments by local lending institutions in local
communities, additional support will be needed to implement
comprehensive plans to revitalize urban centers. Lending
institutions can develop partnerships with local governments and
community organizations to foster redevelopment activities.
Progressive and creative local lending institutions can provide the
resources necessary for success in community revitahzation
efforts.
Benefits to the Chesapeake Bay
Reduces Number of Vehicle Miles Driven
Community revitahzation efforts reduce urban sprawl and
decrease the number of vehicle miles traveled. Driving is a major
cause of air pollution that contributes to the water quality
problems of the Chesapeake Bay and affects human health.
Utilizes Existing Infrastructure
Community revitahzation promotes compact urban development
patterns which are served by existing infrastructure. Utilizing
existing infrastructure, including roads, schools, water and sewer
service, is less costly to a local government than providing new
infrastructure to urban fringe developments.
Reduces the Use of Septic Systems
Community revitahzation reduces the number of new suburban
developments that may use septic systems rather than sewage
treatment plants. Failed septic systems are a major contributor of
nutrients to the Chesapeake Bay. Nutrients are still the primary
cause of water pollution to the Chesapeake.
Benefits to the Bay
Reduces air pollution
Utilizes existing
infrastructure
Supports water quality
protection
Cleans-up contaminated
sites
Infill/Community Redevelopment « 15
-------
Land in urban areas
must compete for
development with
comparatively
inexpensive land in the
suburbs, which benefits
from subsidized
highway constructions,
the public's willingness
to commute, and
comparatively lower
local taxes.
- Diane Suchman, Infill
Housing: Opportunities and
Strategies for Inner-City
Neighborhoods
Encourages Clean-ups at Contaminated
Sites
Many abandoned industrial and commercial sites pose a human
health risk and can damage the sensitive Chesapeake Bay
ecosystem. By redeveloping industrial and commercial sites,
developers and government agencies first clean-up any potential
risks to human health and the environment. This
pre-redevelopment clean-up ensures that environmental issues are
addressed, which in turn protects the Chesapeake. Redevelopment
of industrial and commercial properties can lead to both
community revitalization and environmental and human health
protection.
Incentives
Encourages additional public and private investments in
existing urban centers;
Rejuvenates economically blighted communities or com-
munities struggling to build an economic base;
Provides needed housing and encourages home owner-
ship;
Reduces the consumption of resource lands and environ-
mentally sensitive lands on the urban fringe;
Preserves historic structures and existing housing stock;
Revitalizes abandoned commercial and industrial build-
ings; and
Requires environmental clean-ups at contaminated sites.
Barriers
Suburban development has been a profitable and subsi-
dized pattern of development;
Limited population growth in urban centers, therefore,
limited housing and development potential;
Current zoning ordinances permit, and in many cases fa-
cilitate, large lot development which can discourage prof-
itable and marketable development from occurring in
urbanized areas;
Local permitting processes can be cumbersome and
costly, again discouraging new infill development poten-
tial;
Infrastructure may be in disrepair and may require invest-
ment in upgrades to accommodate new development;
16 « Beyond Sprawl Handbook
-------
Limited amount of investment in existing buildings and
public facilities and services which reduces the marketabil-
ity of infill and community redevelopment projects;
Generally lower taxes in suburban areas; and
Community may object to infill development, citing in-
creases in density, intensification of commercial develop-
ment, and reductions in open space.
How to Encourage Infill
Development
1) Educate the community
Educate and inform the community to obtain a broad base of
support for infill development and community redevelopment
projects. First, convene a group of community leaders that
represents diverse interests to discuss the issues, challenges and
benefits of a community revitalization project. Specifically
discuss issues concerning redevelopment, such as loss of park and
open space and potential for higher residential and commercial
densities. Additionally, encourage the group to discuss potential
solutions to these issues in order to develop a consensus-based
strategy for community redevelopment. Gaining a broad base of
support is a critical first step in achieving community
redevelopment goals and objectives. Continue educational efforts
with the community throughout the development process.
2) Prioritize community revitalization
areas
Identify priority redevelopment districts or parcels of land that
support a community vision and achieve a local government
growth and development goal. These areas should demonstrate
the market potential for new development and redevelopment.
Areas can be targeted for redevelopment in a local government
comprehensive plan. The areas can be identified as Planned
Redevelopment Districts and therefore, receive priority standing
in addressing a community's revitalization goal, as well
targeting redevelopment funding.
The potential for infill
housing is greater
where demand for
housing is generally
strong and prices for
housing are high
relative to incomes.
- Diane Suchman, Infill
Housing: Opportunities and
Strategies for Inner-City
Neighborhoods
as
Infill/Community Redevelopment « 17
-------
3) Evaluate current jocal government
redevelopment policies and eliminate
barriers
Evaluate current local government policies and local conditions
to determine if they support or discourage infill and community
redevelopment. Evaluation should include a study of market
conditions in priority locations, a review of local zoning
ordinances and permitting processes, and a characterization of
existing infrastructure. Existing community infrastructure must
be able to accommodate higher densities associated with infill
development.
4) Determine feasibility of infill and
community redevelopment based on the
evaluation
Based on the evaluation, determine if priority infill and
community redevelopment areas can be developed regardless of
current conditions or if revisions to zoning and permitting and
enhancements in a community must occur prior to
initiating an infill development program.
By evaluating local conditions and eliminating
many development barriers, local governments can
set themselves up for successful infill and
community redevelopment projects. For instance,
a zoning ordinance may require large lot development in priority
infill development areas that may actually be more conducive to
multi-family or mixed-use development. These local government
regulations will discourage developers from initiating projects
where the market does not support the types of development
required by law. Therefore, local governments should evaluate
existing zoning regulations to determine if they support
community redevelopment goals and revise them as necessary.
Permitting processes are also barriers to community revitalization
projects. They can often be cumbersome, disorganized, and
costly. By streamlining that process by, for example, developing
a one-stop-shop for all permit needs, a developer may be more
inclined to initiate infill and redevelopment projects.
5) Promote infill and community
redevelopment potential
Marketing infill and community redevelopment potential to local
developers, community organizations, such as neighborhood
IS * Beyond Sprawl Handbook
-------
housing authorities, and lending institutions should be a priority.
Providing necessary information for developers interested in
community redevelopment can enhance the potential for such
projects.
Local governments can do much to promote and support infill
development including: making public investments in and around
priority redevelopment areas; providing adequate information on
locations and market conditions of priority locations; providing
subsidies to counter suburban subsidies in development, by
reducing or eliminating land acquisition fees for foreclosed
properties and discouraging land speculation by taxing vacant land
at higher rates; and assembling several properties through local
government's power of eminent domain to develop one larger
community redevelopment project that may be more attractive to
developers.
Additionally, local governments can provide staff support to assist
developers through the development process and encourage local
lending institutions to support infill and community
redevelopment projects by demonstrating a commitment to
community revitalization.
6) Consider infill and community
redevelopment design standards
Infill development leads to higher densities. To mitigate the
impacts of higher densities in a community, local governments are
developing infill development design standards. These standards
not only mitigate the impacts of higher densities associated with
infill, but also ensure that new development projects are designed
in a manner consistent with the character of the existing
community.
Design standards may include provisions in an ordinance to
require new development elements such as a canopy, bay window,
balcony, deck and other features that increase building front and
front yard activity (Residential Design Strategies). Other design
requirements in priority infill development areas, including
building set backs, buffers, and parking standards, must also
complement existing communities. Local governments
considering an infill and community redevelopment program
should consider complementing that program by developing infill
and redevelopment design standards.
Perhaps the most
troublesome of
potential site problems
is the possibility of
environmental
contamination which
increase a project's risk,
cost, and complexity.
- Diane Suchman, Infill
Housing: Opportunities and
Strategies for Inner-City
Neighborhoods
Infill/Community Redevelopment» 19
-------
The nature of
brownfields
contamination is
usually pollution of soil
and/or the underlying
groundwater by
hazardous waste, oil or
a combination of the
two.
- Alliance for the Chesapeake
Bay - White Paper
Addressing the Issue of
Brownfields
A leading deterrent to infill development and redevelopment,
particularly large scale redevelopment projects, is the risk that an
infill site or redevelopment site may be contaminated with
chemicals detrimental to human health and the environment.
"Brownfields" are defined as properties that are abandoned but
were once used for commercial or industrial purposes. These sites
are often unattractive to developers and the real estate market
because they may be contaminated or perceived to be
contaminated. Although many development barriers exist,
brownfields hold great potential for redevelopment in existing
urban centers. One of the most difficult problems facing urban
centers is the lack of employment opportunities due, in part, to
changes in the region's economy that was once driven by
industrial development and now is moving more towards a
service-oriented economy. Lack of employment opportunities
escalates migration from the urban centers. Therefore, if infill
development and redevelopment are to be successful, then
employment opportunities must grow in those areas to support
new growth.
Providing opportunities for developers to redevelop brownfield
sites is one mechanism that may help promote an urban center's
economy and provide job opportunities to those in the
community.
Many efforts are being made to make brownfield redevelopment
an attractive alternative to suburban development. By reducing
the liability risk to potential purchasers of brownfield properties,
developers are more likely to consider redevelopment as a
profitable alternative to suburban development. Federal and State
programs are being designed to reduce the liability risks to
developers without compromising the environmental and human
health regulations required to ensure a site is safe to redevelop.
Overall, brownfield redevelopment provides an opportunity to
strengthen the economy of existing urban areas while cleaning-up
potential risks to human health and the Chesapeake Bay.
20 « Beyond Sprawl Handbook
-------
Models
Lititz Borough, Pennsylvania
The historic community of Lititz Borough is tucked away in
predominately rural Lancaster County. The community of
nearly 9,000 people is divided by Lititz Run. The Run has shaped
the physical nature of the community, as well as defined its
character. Lititz Borough is considered a model community for
its efforts to maintain a vibrant downtown center that has a
productive mix of residential, commercial, public and industrial
uses. Located in rapidly developing south-central Pennsylvania
area, Lititz has maintained its small town qualities and prospered
economically in light of these growth pressures.
Lititz Borough's success with community redevelopment and
infill development projects that have spurred economic
development and revitalized older neighborhoods make it a model
community. Lititz has put into place several policies that have
helped to preserve its downtown and promote its commercial and
industrial businesses.
Why it Works
Lititz, in coordination with Lancaster County, has implemented
some very effective land use management programs that are
helping to sustain a productive central business district and
preserve the Town's historic district. Two such policies are the
Town's tax abatement program and an urban growth boundary.
The tax abatement program is targeted to commercial and
industrial businesses interested in starting or relocating business
into Lititz. The program provides a tax abatement to all new
businesses for seven years. This incentive has helped to promote
commercial and industrial development downtown in designated
business areas.
The urban growth boundary program, which was established by
the County and adopted by the Borough, is designed to promote
growth and development in a designated area in and around the
Borough which is entirely serviced by existing utilities. The
boundary has encouraged infill development and community
redevelopment and has discouraged sprawl outside the Borough's
corporate limits.
Infill/Community Redevelopment« 21
-------
In addition to the two land management techniques, Lititz
Borough has an active and conscientious citizenry that maintain
and promote its downtown and historic district. Tourism is a
growing business that the Borough supports but is primarily
driven by citizens and civic organizations. This support also helps
to preserve the community's small town charm that attracts both
residents and businesses to the Borough.
Measures of Success
A recent relocation of a major business can be directly attributed
to the tax abatement program. This new business, now a major
employer in the Borough, is an indication of the value of a tax
abatement program in preserving the vitality of small towns
throughout the watershed.
Lititz Borough was recently named an inaugural Gold Chesapeake
Bay Partner Community for its efforts to protect the Chesapeake
Bay and its rivers by effectively managing land use, maintaining
its vibrant downtown and preventing pollution.
For more information, please contact Sue Ann Barry, Borough
Business Manager at Borough of Lititz, 7 S. Broad Street, Lititz, PA
17543
Salisbury, Maryland
The City of Salisbury is the largest city on Maryland's Eastern
Shore. The area is experiencing growth and development
pressure, much of which is locating outside the City's corporate
borders. This sprawl growth and development is converting
prime agricultural land and leaving neighborhoods in the City
vacant and need of redevelopment. The City, in coordination
with the Salisbury Neighborhood Housing Service, Inc. and the
State of Maryland, is working to reverse this current trend to make
the City an attractive and appealing place to live and work.
Salisbury Neighborhood Housing Service (SNHS) is working
with the City to target three neighborhoods within the City for
community redevelopment. The mission of the SNHS is
neighborhood revitalization through homeownership. The
SNHS works with local banks to offer below-market loans and
reduced closing costs to people who want to purchase a home in
one of the three neighborhoods targeted by the organization for
revitalization. In addition, SNHS provides home buyers training
classes, post-purchase seminars, leadership training and other
22 Beyond Sprawl Handbook
-------
programs to promote long range success of the organization's
revitalization strategies.
Why it Works
The neighborhoods of Camden, Church Street and West Side are
areas that are in need of revitalization and thus have been targeted
by the SNHS and the City of Salisbury for redevelopment. The
SNHS program works because it provides reasonable
opportunities for homeownership. Rental properties, which are
predominant in the SNHS target areas, tend to deteriorate over
time, whereas homeownership encourages maintenance and
promotes safer and healthier neighborhoods. Therefore, the
SNHS program is a long-term solution to very difficult
neighborhood deterioration problems. In addition, SNHS
provides services beyond that of low-interest loans that help to
ensure success after a home has been purchased.
Measures of Success
The City of Salisbury, working with the SNHS, has secured
thirty-two mortgages to date. The City and SNHS are working
closely with local banks and city police to secure loans and make
neighborhoods safer to attract new homeowners to additional
homes in the targeted areas.
For more information, contact Cheryl M. Jones, Assistant Director,
114 Baptist Street Salisbury, Maryland 21801-4828
Infill/Community Redevelopment » 23
-------
Transfer or Purchase of
Development Rights
(TDR/PDR)
A transfer of development rights program (TDK) is a land use
management tool utilized by local governments to support the
achievement of overall comprehensive planning
goals. Such community goals include the
protection of agricultural, forested and
environmentally-sensitive lands, as well as historic
sites. Although specific TDK programs will differ
from jurisdiction to jurisdiction, the general
premise of any program remains constant. That
is, TDR programs are designed to transfer the
development potential from certain types of land,
such as valuable resource lands and historic sites,
to areas designated for growth. This differs from
traditional and sometimes controversial zoning
practices that may zone agricultural or other
resource lands at very low densities, such as one
dwelling unit per 30 acres, in order to eliminate
development potential of those lands.
TDR revolves around the idea that ownership of land entails
ownership of a "bundle of rights" (i.e., the right to access; to mine
mineral deposits; to lease land for farming practices; etc.). The
landowner's use of the rights contained in his "bundle" is limited
by many factors, including zoning and land use restrictions,
building code provisions, environmental constraints, and other
public policy restrictions. (Roddewig 1987) TDR establishes a
market driven, incentive based mechanism, by which it becomes
possible to sell development rights without actually buying or
selling the land.
As a planning tool, a TDR program holds promise to achieve the
planning objectives of a community and support its fundamental
zoning structure. It creates an opportunity to achieve community
growth and development goals, promotes more efficient and less
costly patterns of growth, compensates landowners in
preservation areas for lost development potential, and provides
the private sector with incentives to grow in designated growth
areas. A successful TDR program will maintain landowners'
value in their land while protecting vital resources and effectively
implementing land use regulations.
Source: Maryland Office of Planning
Transfer or Purchase of Development Rights » 25
-------
Most TDR programs
are for the sale of
development rights
between private parties
at market prices. Other
programs establish TDR
banks that are financed
by the local
government. Such TDR
banks can help get the
program started, and
serve as a buyer of last
resort, when there is no
apparent development
market.
Benefits to the Chesapeake Bay
Preserves Environmentally-Sensitive Lands
By conserving environmentally-sensitive areas through TDR
programs, lands that serve as natural pollution buffers and habitat
to the Chesapeake's living resources are preserved permanently.
These preserved lands, in turn, protect local and regional water
quality.
Conserves Resource Lands
A TDR program will reduce the development of resource lands,
such as agricultural and forested lands. Consequently, the amount
of septic systems and vehicle miles traveled will increase more
slowly. Reduced vehicle miles traveled affects air quality which
eventually improves the Bay's water quality. The use of septic
systems can affect both drinking water and the water quality of
streams, rivers, and the Chesapeake Bay. Resource lands also
provide valuable habitat to the living resources in the Chesapeake
Bay watershed.
Reduces the Amount of Impervious
Surfaces
By protecting lands from development, local governments and
citizens are reducing the amount of impervious surfaces that cover
the watershed's landscape. This is very important to the health of
natural stream systems and the Chesapeake Bay. Impervious
surfaces (i.e., paved roads, parking lots and rooftops) can drain
pollution directly into stream systems. Studies indicate that the
more impervious surface in a stream basin, the more likely the
health of the stream system will be degraded.
Incentives
Building at higher densities can translate into higher
profit margins for the developer;
Landowners are compensated for growth and develop-
ment restrictions; and
Incentive based planning tool achieves overall commu-
nity growth and development goals.
26 » Beyond Sprawl Handbook
-------
Barriers
Potential for higher taxes in receiving areas due to the in-
crease in services that are needed to accommodate addi-
tional growth and development;
High density development is perceived as unpopular;
Start-up costs to implement a TDR program can be
costly; and
Lack of constituent support for the implementation of
TDR programs.
How to Implement TDR
1) Provide education and outreach
Local government staff should provide extensive educational
outreach to landowners, developers, realtors and elected officials
regarding techniques to protect resource lands. After an evaluation
of those options is completed, and if TDR is the accepted
technique, then outreach should focus on TDR and what it means
to the citizens of the community.
Educating the general public on the TDR program in the context
of a community's overall planning goals and objectives is a critical
first step in developing a successful TDR program. By explaining
the needs, impacts, benefits and value of implementing a TDR
program to all affected stakeholders, including landowners,
farmers, developers, local government officials, and private
citizens, staff will better understand the concerns of those groups
as they enter into discussions regarding the value of TDR in a
community. Stakeholders' participation throughout the process
of evaluating and establishing a TDR is highly encouraged,
particularly when identifying and designating preservation areas
and areas where transfers will take place "receiving areas".
The two most affected stakeholders, the landowner in the
preservation area and the developer, should stay informed and be
asked to participate in the TDR evaluation process. It is likely
that these groups will have the most questions regarding the TDR
program and how it will affect them in pursuing economic goals.
Additionally, these stakeholder groups will provide valuable
information that can contribute to the completion of a
micro-analysis of market forces in the region.
Steps to
Implement TDR
Provide Education
Conduct Micro-analysis
of Market Conditions
Designate Receiving
Areas
Designate Sending Areas
Determine Type of TDR
Determine
Development Potential
Consider a TDR Bank
Provide Resources
Transfer or Purchase of Development Rights » 27
-------
2) Conduct a micro-analysis of market
conditions
A micro-analysis of market conditions and market receptivity to
transfer of development rights should be conducted.
William Masterson, real estate analyst, states that, "TDK programs
succeed only when private-sector economic objectives are met.
Much literature on TDRs focuses on the legal and policy-related
aspects of structuring TDR programs. What usually is neglected
are the market and financial factors that eventually will make or
break the programs." Masterson continues by stating that to
structure a successful TDR program, a market for TDR transfers
must be created.
Therefore, it is critical that a micro-analysis of market conditions
and market feasibility to a TDR program is completed. The study
should include current market trends such as the value of rural
and suburban lands and the volume and profitability of real estate
development activities in the overall market area. In addition, the
current costs of developing subdivisions to the developer, as well
as the hypothetical costs of developing at higher densities, should
also be examined. Finally, evidence should support the "market
acceptance" and compatibility with existing land uses of higher
densities that are caused by TDR programs.
If this evaluation demonstrates that current market conditions can
support a TDR program or adjustments can be made to "create a
market" such as providing adequate infrastructure in "receiving
areas", then a TDR program should be pursued.
3) Identify and designate "Receiving Areas"
A Preservation Area(s) (sending site) should be designated that
supports comprehensive planning goals, such as a goal to protect
contiguous blocks of agricultural, forested and environmentally
sensitive lands from conversion to other land uses. TDRs shoud
be assigned to parcels within the sending area based on a rational
and defensible method.
After a micro-analysis of market forces in the region is completed,
designate receiving areas. Again, these sites should enhance the
marketability of a TDR, as well as help communities achieve
long-term growth and development goals.
The receiving site locations should possess several generic
characteristics in order to adequately support TDR transfers.
First, the receiving sites should have the ability to support
28 » Beyond Sprawl Handbook
-------
development. That is, there should be an adequate supply of land
to support all TDR transfers that may occur. In fact, it has been
suggested that receiving areas should be large enough to handle 30
percent more TDR transfers than are anticipated. By increasing
the size of the receiving areas, a local government can alleviate any
future problems that may emerge due to the lack of land available
in the designated receiving sites for transfers. Lack of land may be
an issue if the receiving areas are limited in their development
potential due to undevelopable lands (environmental constraints)
or if a land owner in a receiving area refuses to participate in the
program (Gottsegen, 1992).
Second, the receiving areas should have adequate infrastructure to
support higher densities that are an outcome of TDR transfers.
An analysis of existing infrastructure in potential receiving areas
will also help to determine the size of a receiving area. For
instance, if there are adequate community facilities, particularly
wastewater treatment facilities, in areas being considered as
receiving sites, those areas can be much smaller since the existing
facilities can support higher densities. As densities in receiving
areas grow, adequate transportation infrastructure must also be
available. Transportation infrastructure to support predicted
growth in a receiving area must also be completed. Infrastructure
availability is important to the viability of a receiving site to
achieve both community growth and development goals and to
create a market conducive to the purchase of TDRs.
4) Identify and designate "Sending Area"
Based on the market analysis, characterization of environmental
impacts, and infrastructure capacity, sending areas can be
designated that are best suited for transfer of development rights.
Identifying preservation areas for a TDR program is often the
easiest step in developing a program, but there are several critical
steps that should be completed in order to identify and designate
those areas.
First, the sending areas should support overall comprehensive
planning goals and objectives. For instance, if a community's goal
is to protect environmentally-sensitive areas and/or agricultural
lands, then areas determined as prime farmland or sensitive
environmental lands should be considered as a sending area. After
these areas are identified they should be mapped. This
comprehensive inventory of identified sending areas documents
the resource and its benefits to the public interest, health and
safety, helps to establish the amount of potential development
A TDR program can be
either mandatory or
voluntary. In a
mandatory program all
land in the sending
area is downzoned to
control development.
In a voluntary
program, existing
zoning in the sending
area remains until a
sale of a TDR occurs in
which case the land is
then downzoned.
Transfer or Purchase of Development Rights * 29
-------
impacted by the TDR program, and can be a basis for the
assignment of development potential (Gottsegen, 1992).
Once general preservation areas have been identified and
inventoried, then specific sending areas should be delineated. This
is a difficult process since landowners have concerns regarding the
impact that development restrictions will have on their equity
interest in their property. It is suggested that in communities that
have a comprehensive TDR program, all areas outside the
receiving site should be considered a sending area. Furthermore,
it is highly recommended that all areas within a community either
fall under the sending area designation or the receiving area
designation. This increases the demand for TDR transfers and
eliminates competition with new development operating outside
the TDR areas (Gottsegen, 1992).
5) Determine type of TDR program
Determine if the program will be mandatory or voluntary. If
mandatory, then sending areas must be downzoned to control
growth. Most TDR programs allow for the sale of development
rights at market prices.
6") Determine development potential and
allocate TDRs
The allocation of development rights from the sending area to the
receiving area is the cornerstone of the TDR program. Therefore,
determining the development potential in a TDR program and
allocating TDRs is a critical next step. Since the two activities are
so closely linked, they may be grouped into one step.
Determining the development potential and establishing an
allocation for a TDR is a difficult activity and extremely political.
The development potential in a TDR program and the allocation
of TDRs will vary from program to program, but there are some
general methods to consider in this process.
When determining the development potential, a local government
can utilize the existing zoning to determine the amount of new
development to occur in a TDR program. Carrying capacity is
another method to determine the amount of development
potential. Essentially, carrying capacity is the capacity of the land
to support development based on the limits as defined by natural
resource limitations, existing infrastructure, and human health
and safety issues. A third option to determine development
potential is to evaluate the community's build out vision. This
method evaluates a community's land use goals and objectives and
30 Beyond Sprawl Handbook
-------
determines the amount of development potential that will help to
achieve that vision.
In allocating TDRs, a local government can utilize the following
three methods: gross lot size; development suitability based on
environmental features; and estimated development value
(Gottsegen, 1992).
Gross lot size is the most widely used method to determine
allocation of TDRs. It distributes TDRs to each property's gross
land area. This is the preferred method because of its simplicity
easy to communicate to the public and easy to implement.
However, this may not be the most accurate and equitable manner
in which to determine the allocation of TDRs. Gross lot size does
not necessarily represent a property's true capacity to develop
because it does not take into account development constraints (i.e.,
environmental restrictions) or market values.
Development suitability is a method that allocates TDRs based on
the actual development potential of a property. A community
interested in utilizing this approach must develop a set of
procedures to clearly lay out how development suitability will be
measured. A recommended approach may be to evaluate a
property's development potential by evaluating the property's
environmental features. This will give the program a better sense
of a property's true development potential.
Estimated development potential is a method which allocates
TDRs by determining the difference between a property's value
for development and its resource value. This requires a
determination of property values and requires an early estimation
of an average TDR allocation value. (Gottsegen, 1992)
7) Consider a TDR bank
A TDR bank may be established to assist in the purchase and sale
of TDRs and to stabilize the market value of a TDR.
A TDR bank is operated by a quasi-governmental body whose
primary purpose is to purchase and sell development rights and
provide administrative assistance related to tracking the transfer
of TDRs. Its functions and value vary based on what services the
bank provides. For instance, TDR banks can provide a range of
services from administrative roles to more active participation
through actual credit and sale purchases of TDRs. Additionally,
the TDR bank may stabilize the value of a TDR, making it
somewhat predictable in the market place and therefore more
appealing to those considering the sale or purchase of development
Transfer or Purchase of Development Rights « 31
-------
TDR has been more
successful in protecting
environmentally
sensitive areas and open
spaces but less
successful in protecting
resource lands, such as
agricultural and
forested lands.
rights. Finally, a TDR bank will support the program in its
infancy by allowing both sellers and buyers of TDRs to analyze
and become more aware of the program, how it works, and how
it may benefit them to participate.
Although there are many benefits to establishing a TDR bank, the
ability of a bank to stabilize the market relative to the value of a
TDR over time and the ability of a bank to serve the community
during natural fluctuations in the housing and office buying
markets may be the most important benefit of establishing a bank.
By setting a TDR purchase value, the bank sets a price standard
that will ensure that developers pay close to that value. This is
important as natural fluctuations in the housing market dictate,
and in some instances undermine, the value of TDRs. A bank will
maintain that value and stabilize the program over time. Extreme
fluctuations in TDR values that may occur in a program that does
not have a bank can harm buyer and seller confidence in the
program.
There may be legal questions that must be addressed before
developing a TDR bank. For instance, does the state TDR
enabling legislation authorize establishment of a TDR bank? If
no clear answer is provided in TDR legislation then zoning and
"police power" case law should be reviewed to determine the legal
basis for the establishment of a bank. Also, does the TDR bank
violate any antitrust laws? These issues should be examined prior
to establishing a TDR bank. (Roddewig and Inghram, 1987)
Obviously there must be an initial source of funding for the bank
to operate. The amount of resources that a bank has to purchase
and sell TDRs is important. However, after initial funding is
secured, the bank can utilize its resources much like a revolving
loan fund where funds from the sale of a TDR can be used again
to purchase a TDR, thereby limiting the amount of capital funds
needed to establish a bank. In 1987, New Jersey voters approved
$20 million for a statewide TDR bank, enabling its programs to
begin buying and selling TDRs. Local governments can also fund
banks through public bond referenda, dedicated taxes for open
space acquisition, and utilization of capital budgets. (Gottsegen,
1992) It has been suggested that a TDR bank be funded at a level
sufficient to allow it to buy and sell at least 25 percent of the
development rights. (Roddewig and Inghram, 1987)
32 » Beyond Sprawl Handbook
-------
8) Provide the program with adequate
resources
Assign adequate planning staff and resources to the TDR program
to ensure its initial and continued success. No direct
appropriations of public funds or passage of a bond measure are
needed to fund a TDR program. However, there is usually an
administrative cost associated with a program's start-up.
Additionally, tracking transactions, both on sending and receiving
sites, can also be administratively costly particularly if local
government staff is unfamiliar with the details associated with
TDR programs.
General Legal Issues to Consider
In many states, TDR programs must be authorized by
state enabling legislation. In Virginia, local governments
do not have the authority to implement a TDR program;
however, in Maryland and Pennsylvania local govern-
ments have the authority to establish TDR programs
based on their generally delegated authority to regulate
land use.
Sending and receiving sites should be based on a well-es-
tablished public purpose that is stated in the comprehen-
sive plan and in the zoning code. If the TDR program
has a legitimate planning basis, there will be less risk of
takings cases and possible compensation.
TDR may be vulnerable to legal action if there is no mar-
ket for development rights. This situation could poten-
tially leave a property owner with reduced value in his or
her land with no way to recoup lost value.
Purchase of Development Rights
(PDR)
An increasingly popular mechanism to preserve agricultural and
environmentally-sensitive land, as well as open spaces, is a
Purchase of Development Rights program (PDR). PDR
programs, established to protect high quality farmland from
conversion to non-agricultural uses, utilize public funds to
purchase the development potential from privately held land.
Typically under a PDR program, the landowner voluntarily sells
the development rights (also known as a conservation easement)
and receives compensation for the development restrictions
Transfer or Purchase of Development Rights * 33
-------
Typically under a PDR
program, the landowner
voluntarily sells the
development rights
(also known as a
conservation easement)
and receives
compensation for the
development
restrictions placed on
the land.
placed on the land. The farmer retains title to the land and can sell
or pass along the land to others, although the use of the land is
limited to farming and open space. The conservation easement
runs with the land either in perpetuity or for a period of time
specified in the easement document (Buckland, J. 1987).
Easements usually restrict any residential development beyond
that of the immediate family and/or farm labor (Daniels, 1991).
The following table lists the many advantages and disadvantes of
developing a PDR program. These issues should be considered by
a local government prior to the development of a PDR program.
PPR Programs
Advantages
Fairness in treatment to property
owner.
Provides permanence. Assurance
of protection is greater than can be
provided by zoning.
Possible reduction in property and
estate taxes which provides greater
security of farming.
Fixed asset (land) can be turned
into liquid asset (cash) and be
reinvested in farm or to pay debt.
Acceptability of voluntary
program to landowners.
Disadvantages
Not based on unique financial
situation of particular landowners
May not achieve critical mass of
farmland due to voluntary nature
of program.
Development rights may cost over
50 percent of fair market value.
Cost may even exceed value of
land as farmland or open space.
Compensation may be paid for
value that landowner did not
create. Increased land value may
be created by public investment in
roads and sewer and water lines
which makes property more
accessible to development.
Landowners may refuse to
participate due to concern that
program administration is too
cumbersome or that sale of rights
forecloses future options to
transfer development rights or sell
at full market value.
Source: Daniels 1991.
34 « Beyond Sprawl Handbook
-------
How to Implement PDR
1) Determine funding strategy
Initial decisions regarding PDR administration are legislative in
nature: how much to spend over time and where to house the
program. Two different funding strategies have emerged.
Programs can exist for a fixed time period with substantial funding
through public expenditure or the program can continue
indefinitely at a more modest level of funding.
2) Target land for easement purchase
After careful consideration has been made of how to fund and
administer the program, it is important to identify priority
lands/areas for participation in the program. Although it may
seem logical to prioritize lands for easements that are under the
greatest growth pressure, it actually may be more efficient and
expedient to prioritize those lands that are under moderate growth
pressure. Land under serious growth pressure is extremely
difficult to purchase because of its value and it may actually be in
areas that have adjacent public services that can support future
growth areas that may be best designated as growth districts.
On the other hand, land under moderate growth pressure may be
less expensive to place in an easement and more suited for
permanent protection.
3) Solicit and rank applicants
In most cases, administrators have utilized a numerical ranking
system to objectively determine which development rights to
purchase and in what sequence. The ranking system typically
features two main criteria the degree of development pressure
and the quality of the farmland.
4) Conduct appraisals
Once applications have been ranked based on the degree of
development pressure and the quality of the farmland,
determining the value of the easements becomes the next step in
developing a program. The most common method is to have the
county or administrative agency hire a qualified appraiser, who
estimates the property's fair market value without an easement
and the agricultural use value subject to the easement. For
example, if the fair market value of a farm is $450,000 and the
agricultural value is $275,000 then the maximum development
rights value would be $175,000.
Although PDR
programs are likely to
remain controversial
because of the sizable
costs involved, they do
offer more permanent
farmland protection
than zoning or
property tax breaks
and provide private
landowners with
compensation in return
for restrictions on
development.
- Thomas L. Daniels
The Purchase of
Development Rights -
Preserving Agricultural and
Open Space
Transfer or Purchase of Development Rights » 35
-------
5) Negotiate and purchase easements |
Negotiating the value of an easement and purchasing that .
easement is the next step. Some administrative overhead exists I
that, in a new program, may be costly.
6) Monitor and enforce PDR program |
Monitoring easements to assure compliance with the conditions .
of the easement is a responsibility of program administrators. I
Easement documents should be carefully constructed to withstand
legal challenges. .
36 « Beyond Sprawl Handbook
-------
Models
Montgomery County, Maryland
Located immediately north of Washington D.C., Montgomery
County sustained rapid growth and extensive urbanization over
the past thirty years. County growth from 1980 to 1990 alone,
the period in which the County TDR program was operative,
jumped from 579,053 residents to 757,027 a growth rate of over
30 percent.
The County Planning Commission, concerned about further
losses of farmland, appointed a task force to explore
protection/preservation options. It recommended the
establishment of a TDR program as the centerpiece of the County
growth management program to protect farmland. A TDR pilot
project was developed for the Olney planning area, at that time a
small, rural area of the County. Encouraged by interest shown in
the TDR concept in this pilot version, the County elected to
establish a program for County-wide application.
Why it Works
Montgomery County's program is considered by many to be the
most successful TDR program in the country. In their evaluation
of programs in 1987, Roddewig and Inghram (APA, PAS report
#401) indicated that the Montgomery County success is
attributable to several conditions they cite as important for a
workable program including:
Sufficient restrictions on development in sending areas to
give rise to TDR sales.
Recognition of the economic and financial conditions
that support a TDR market and determine the value of
TDR's to both sellers and buyers.
A simple and understandable program design that does
not require complex approvals.
Designation of receiving sites with infrastructure needed
to support development and sufficient development de-
mand to make density increases financially attractive to
developers.
Commitment to an educational effort to inform prospec-
tive participants (i.e., farmers/landowners, developers,
realtors, bankers, and attorneys) about the program.
Transfer or Purchase of Development Rights « 37
-------
Based on the current 1997 Montgomery County TDR Status
Report, over the last 16 years since the programs inception, a total
of 6,629 development rights from over 400 properties have been
severed by easements from a land area of 43,993 acres.
Approximately 2,170 TDRs remain attached to the acreage. They
remain attached to the acreage to reflect that an existing dwelling
is on the land, that future residential development is allowable, or
they may be severed and transferred at a future time. Of the 6,629
TDRs that have been severed, only 5,123 have been transferred to
receiving zones by recordation of subdivision plats. Of some
1,506 TDRs that have been severed and perhaps changed
ownership, over half of them have been approved for use on
preliminary plans for subdivision and are expected to proceed to
record plat.
Montgomery County indicates administrative costs for the
program are negligible, although the initial effort to "sell" the
program required a substantial allocation of staff resources. Since
the County has full legislative control over both sending and
receiving areas, developers do not have to cope with a multi-tiered,
multi-government approval process to utilize rights.
For additional information, contact: Montgomery County
Department of Planning, 8787 Georgia Ave., Silver Spring, MD
20910.
Manheim Township, Pennsylvania
Manheim Township is a community located in the rapidly
growing south-central portion of Pennsylvania just north of
Lancaster. The Township has instituted several programs to
conserve the countryside and revitalize communities, including a
purchase of development rights program and incentives to
promote cluster developments . Its proximity to growing urban
communities and access to major highways has increased the
growth and development pressure on existing farmland.
In response to this pressure and its corresponding loss of farmland,
the Township completed a comprehensive land use management
plan, which included recommendations to preserve farmland that
was being lost a rapid pace. In 1990 the Township created a
agricultural district and in 1991 adopted a TDR program as an
amendment to its existing zoning ordinance. The designated
agricultural district serves as the Townships sending area.
Transfers can only occur in these designated areas on parcels ten
acres or more.
38 » Beyond Sprawl Handbook
-------
Why it Works
There are a number of reasons why it is likely that Manheim
Township will continue to be successful in its TDR program.
First, the allocation of transfer credits in the sending areas provides
incentive to participate in the TDR program. Under current
zoning regulations there are strict limitations to development in
the agricultural district. However, the TDR program allocates .73
development rights, less the number of dwelling units existing on
a tract, for each qualified acre. This means that the cost of a
development right will be relatively inexpensive, which is a
benefit for the developer considering purchasing transfers. This
also benefits the landowner who will be compensated for a farm's
development potential which is currently limited due to the
zoning of the agricultural district. Furthermore, the program's
designated receiving areas were substantially downzoned. This is
another incentive for the developer to purchase transfer credits
because it will be able to increase the density in designated
receiving areas. Finally, the Township is very active in facilitating
purchases of development rights. Since the Township administers
a purchase of development rights program, sending sites can
transfer their rights at any time and developers can purchase those
rights from the Township to increase densities in designated
receiving areas.
The Township's location in a high growth area also strengthens
the program because TDR programs are market driven. The
Manheim Township TDR program has the framework for a
successful program. Although widespread use of the TDR
program has yet to occur, it is likely with these provisions in place,
that it will be a successful program.
For additional information, contact: Jeff Butler, Manheim Township
Planning and Zoning, 1840 Municipal Drive, Manheim Township,
PA 17601.
Virginia Beach, Virginia
Virginia Beach is experiencing growth and development pressure
which is compromising the City's ability to maintain its
preservation and open space objectives. In 1986, the City adopted
a comprehensive plan to guide future growth and development
which resulted in the establishment of a "green line" running east
west across the City's geographic center. The Comprehensive
Plan recommends moderate to high residential densities and
commercial and industrial development north of the green line
and retention of agriculture uses and resource conservation south
Transfer or Purchase of Development Rights » 39
-------
of the line. In 1987, agricultural use represented 46,300 acres, most
of which was located south of the green line.
The Agricultural Reserve Program
To achieve the objectives of the Comprehensive Plan, the City
enacted the Virginia Beach Agricultural Reserve Program (ARP)
in May 1995 the first PDR farmland preservation program
adopted in the Commonwealth of Virginia. The goal of the
program is to purchase easements on at least 20,000 acres of the
remaining prime farmland in the rural area of Virginia Beach. The
design and implementation elements of the program were
developed through a cooperative effort of the City and an ad-hoc
group called the Southern Watersheds Committee. This group
was a coalition of local conservation and farm interests and
included representation from the City Planning Commission,
City Council, U.S. Department of Agriculture, Farm Bureau,
specialty crops farming, grains farming, organic farming, and
environmental consulting.
Why it Works
The Agricultural Reserve Program is voluntary and has several
dedicated funding sources. The program is financed through a
dedicated $0.015 property tax, partial revenues of a local cellular
telephone tax, and the payment in lieu of taxes of the U.S. Fish
and Wildlife Service. Combined, these three sources of revenue
provide annual funding of approximately $3.5 million.
Landowners participating in the Program are paid through an
installment purchase agreement of twenty-five years maturity.
The City purchases Treasury Strips, at a fraction of their face
value, which mature in twenty-five years. In the interim, the City
pays the property owner a semi-annual interest payment equal to
the yield of the note. The interest payment is tax free. If the
landowner does not care to wait until the note matures, they may
sell it after one year.
To date, a total of 41 applications for 5,240 acres have been
submitted to the City. Analysis of the first ten easement purchases
reveals the following:
The average market value per acre was $3,227.
The range in value per acre was $1,342 to $5,374.
Of the 1,817 acres in ten applications, the market value
was $5,863,430. The approximate cash cost of purchasing
the Treasury Strips was $1,049,904. The annual interest
40 « Beyond Sprawl Handbook
-------
payment to easement sellers will be about $392,154 until
the strips mature in 25 years.
For additional information, contact: Mary Heinricht, Southeastern
Association for Virginia's Environment, PO Box 6733, Virginia
Beach, VA 23456
Transfer or Purchase of Development Rights » 41
-------
Transit Oriented
Development (TOD)
Transit oriented development (TOD) is a planning tool that
locates growth around a transit system and facilitates alternative
means of transportation. Transit oriented communities offer a
variety of transportation alternatives: walking, bus, light rail,
automobile. In communities based on TOD, automobile use is
diminished in favor of pedestrian movement and activities. There
are well-defined boundaries, moderate to high density housing,
and nearby employment, retail, and service facilities. As
development extends approximately a quarter mile from the
transit station, residents can walk to a neighborhood shopping
center, various services, and jobs in approximately five to ten
minutes. Furthermore, additional employment opportunities
exist within the radius of connected transit stops. A resident living
in the vicinity of a transit station may commute within two or
three transit stops to his employment.
TOD encourages a balance between office, residential, retail, and
recreational use and supports a healthy mass transit system. The
public sector organizes the transit system and sets new zoning
guidelines while development in the area is left to the private
sector, rather than local government.
Transit oriented development is characterized by:
a variety of transportation modes (e.g., biking, walking,
public transit) that reduce automobile dependence, with
an emphasis on public transit;
mixed and diverse land use patterns;
compact development that maximizes efficient use of
land;
housing of a variety of types, densities, and costs; and
an environment conducive to pedestrian activity.
What TOD Can Do For a
Community
Saves Money on Infrastructure Costs
Compact communities require less investment in sewer and water
systems, maintenance costs, and public parking facilities. As
While population in the
Chesapeake Bay
watershed grew by 26
percent between 1971
and 1994, vehicle miles
traveled increased by
80 percent.
Transit Oriented Development « 43
-------
If cities build out the
way they are today,
they'll be what we have
now, without any
possibility for the
pedestrian...Cities need
to add an urban design
element to their
general plans that
begins to stipulate the
way these
neighborhoods are
treated so they really
are pedestrian-friendly.
- Peter Calthorpe, The
Urban Ecologist
commuters rely less on automobiles and turn more to public
transit, demand for and upkeep of roads is reduced. Public
services, such as sewer and water systems, police, fire, and schools,
can also be supplied at a lower cost when serving smaller areas.
Protects Open Space
The high density development of TOD preserves the surrounding
environment and minimizes disruptions to sensitive areas such as
floodplains, wetlands, soils, and steep slopes. A greenbelt or open
space that surrounds a town can separate it from a nearby town
connected by transit.
Encourages Community Revitalization
Transit oriented communities spark economic activity in areas
surrounding stations. Private investment is attracted by the
commercial opportunities afforded by pedestrian traffic and daily
commuters. Vacant or underutilized sites within a quarter mile
ring of the station are redeveloped for commercial and residential
A mixture of residential uses allow people with different
use.
income levels and at different stages in their lives to share
neighborhoods.
Benefits to the Chesapeake Bay
Air pollution harms the health of the Chesapeake Bay and so it
important to take actions to reduce vehicle emissions Transit
usage can reduce the air pollution caused by auto travel.
Automobiles are responsible for approximately 40 percent of
manmade hydrocarbon and nitrogen oxide emissions and 66
percent of carbon monoxide emissions. Additionally, vehicles are
responsible for 20 percent of carbon dioxide emissions leading to
green house gases. (Bernick and Cervero, 1997) Reducing the
vehicle miles traveled is a challenge to local governments with
growing populations. TOD offers an option to decrease the
number and distance of commuter trips.
How is TOD Implemented?
Guiding a community towards transit oriented development is a
long-term commitment for a local government. It requires either
the redirection of growth around an existing transit system or the
commitment to establishing a system. Successful TOD relies on
a strategic plan that sets out a vision for future growth.
44 » Beyond Sprawl Handbook
-------
School,
Open Space, &
Recreation
Transit Oriented Development
Adapted from P Calthorpe, The Next American Metropolis
1) Define area
A community must be of adequate size to support TOD.
Boundaries should ensure compactness of development within the
radius of the transit station. The center of the community and
various focal points should be emphasized. Multiple sites
surrounding the transit station should be assembled by either the
local government or the transit agency in order to provide more
stability for the developer. Developers concerned with
negotiating with several landowners to acquire land for their
project may be less likely to embark on a project. Local
governments can cover these up-front costs through higher
downstream property tax receipts and the economic benefits of
more vital communities created over the long-term.
2) Increase public sector involvement
The transit agency is vital to the success of transit oriented
development. It often owns much of the land around the station
and has much to gain by increased transit usage. The housing
agency, the redevelopment agency, and the regional planning
agency are also important players in the successful
implementation of TOD.
Transit Oriented Development « 45
-------
3) Modify zoning ordinance
Zoning is a key element of successful transit oriented
communities. Higher densities and mixed uses are to be
encouraged in the TOD sector. Allowing for higher densities in
residential properties allows for higher populations in the vicinity
of the transit systems. Mixed use areas attract people at all hours
of the day which contributes to the neighborhood's vitality.
Zoning standards should be lowered to one parking space per
residential unit as opposed to two. The lower parking
requirements would result in lower construction costs, as well as
promoting more compact, pedestrian-friendly development in the
areas formerly required for parking.
4) Consider an
overlay zone
Overlay zones can be used to
designate areas suitable for transit
oriented development. The
transit district overlay zone is
superimposed over other zones
on the zoning map. Requirements
may be modified in the zone to
encourage development around a
transit station. The uses in the
transit overlay zone cannot
contradict those allowed in the
underlying zones, but the overlay
zone can restrict lots to specific
uses.
5) Adjust density
requirements
Transit District Overlay Zone
Density is an important factor in
realistically planning for transit
oriented development. In order to support transit systems,
densities must be of a level to assure adequate rail and bus ridership.
A minimum of 12 dwelling units per residential acre (dua) supports
a rail transit system.
Higher densities do not exclude single family residential
development from the area. Zero-lot-line houses can be developed
at lower densities, but average densities are raised by row houses
and mid-rise apartments. At 12 dua, an area of a quarter mile
46 » Beyond Sprawl Handbook
-------
radius around a transit station can accommodate a population of
3,800. (Bernick and Cervero, 1997) For employment and
commercial uses, it is recommended that floor area ratios should
exceed two.
6) Expedite the permit and review process
Developers will be attracted to a project that is supported by a
fast-track review process. The red tape of development permits
can be a detriment to innovative ideas. Therefore, to encourage
transit oriented development, the permit and review process
should be streamlined.
7) Implement supportive design principles
The preference for lower density development over higher density
projects can be mediated by including amenities, such as
landscaping and open spaces, and using varied heights and building
materials. A balanced relationship between open space and
buildings will give the community a human scale. Public plazas
and civic buildings can become focal points of the transit oriented
community.
Transit-supportive designs:
continuous and direct physical linkages between major ac-
tivity centers
buildings situated near the edge of sidewalks that utilize
varied building heights, textures and facades to make
walking more enjoyable
integration of commercial centers with transit facility
grid-like street pattern that encourages connectedness
minimal off-street parking
provision of landscaping, sidewalks, street furniture, and
building overhangs
conveniently located transit shelters, benches and route
information
open spaces that are convenient to transit
(Bernick and Cervero)
Barriers
Market Demand
TOD may not be feasible if there is a lack of market demand or
availability of conventional financing. As long as single family
Transit Oriented Development » 47
-------
residential remains the preferred housing type of most Americans,
it may be more difficult to locate financing for higher density
housing. Therefore, banks may sometimes be hesitant to provide
financing for developments based on transit centers.
Financial
TOD projects are not always attractive to developers. The
Ballston area in Arlington County, Virginia, which is a model for
transit oriented development, is only 50 percent built out.
Planners hope that additional residential and commercial projects
will utilize the area in the vicinity of the Metro station, but they
must rely on developers to choose these locations.
Public Concerns
Higher densities lead to high-rise buildings which are not always
conducive to a pedestrian-friendly environment. Street level retail
and activities need to be encouraged in order to improve the
pedestrian environment and result in a successful transit oriented
community.
To some, higher density, transit-based development signifies the
need for more schools, the possibility of more congestion, and the
stigma of lower income housing. Residents who fear the effects
of TOD may encourage their local government officials to reject
innovative land use proposals.
48 Beyond Sprawl Handbook
-------
Models
Arlington County, Virginia
Arlington County officials recognized the opportunity for transit
oriented development in the Ballston area with the establishment
of the Washington Metrorail System. The County began
planning in the 1970s for its Metro corridor policies. The 1980
Ballston Sector Plan provides land use and development guidelines
that ensure a mix of commercial, office and residential uses with
density concentrated around the Metro station tapering down to
existing single-family residential neighborhoods.
The Sector Plan
The Ballston Sector Plan creates a district that mixes commercial
development with an equal amount of housing within a quarter
mile radius of the Metro. The district around the station permits
high density development for commercial, office, and apartment
units. Incentives are provided for commercial projects that
include space for residential units.
Why it Works
Arlington County's financial support set the stage for the
involvement of private developers in the area. By issuing
industrial development bonds, the County co-financed a
3,200-car garage three blocks from the Metro station. This action
encouraged developers and lenders to invest in Ballston Common,
a shopping area of shops and restaurants. Office buildings and
hotels soon followed.
The presence of the Metro is a strong incentive for attracting
residents. A survey of commuting habits for Ballston residents
living within 500 feet of the station showed that 69 percent
commuted to work by rail. That figure increased to 88 percent
for residents who worked in Washington, DC. QHK and
Associates).
Although the Ballston area was fortunate to be located along the
Metro corridor in the vicinity of Washington D.C., without the
conscious effort of planners in the County, the "new downtown"
in Arlington may not have been created. The Commercial, Office,
and Apartment district permitted the development of high-rise
Transit Oriented Development « 49
-------
apartments at a Floor Area Ratio that ranges from 3 to 6 depending
on the use and square footage of the site. Heights range from 100
to 246 feet, depending on the development allowed by right or by
bonus. The adjusted development guidelines have allowed the
mixed uses necessary to revitalize the Ballston area and maximize
the use of the transit system.
For more information, contact: Terry Russell, Arlington County
Planning Commission, 2100 Clarendon Blvd, Suite 608, Arlington,
VA 22201.
Bethesda, Maryland
Similar to the Ballston scenario, Bethesda was a suburban center
located on the Washington Metrorail corridor. When transit
arrived in 1984, Montgomery County officials were prepared to
support development in the vicinity of the station. The County
assisted with the consolidation of multiple parcels of land owned
by different owners near the Bethesda station. It then changed
zoning from a 3 Floor Area Ratio (FAR) to a 6 FAR in exchange
for developer contributions to open space and public amenities.
The County also prepared specific design guidelines for the transit
stop area. These included low-rise buildings near the main plazas
and higher rise buildings with tapered designs that allow more
sunlight.
Why it Works
The result of the County's efforts has been a pedestrian-friendly
area surrounding the transit stations that supports office, retail,
and residential development. Restaurants and cultural activities
exist in Bethesda and therefore, residents are drawn to the area in
the evenings and on weekends which keeps it busy at all times of
day.
The County continued to evaluate transit options by assigning a
North Bethesda Task Force in 1993 to consider how a
Transportation Management District would best be implemented.
The Task Force made numerous recommendations as to how best
serve the transportation needs of residents.
For more information, contact: Callum Murray, Maryland-National
Capital Park and Planning Commission, 8787 Georgia Ave., Silver
Spring, MD 20910
50 * Beyond Sprawl Handbook
-------
Cluster Development
DEVELOPMENT CONCEPT
Lots -20
Lot Size -1 6 acres
Open Space -70%
200' Buffered
Setback,
Cluster development, also called open space development, lot
averaging, density averaging, or conservation subdivision, is a
means to protect rural character and minimize impacts on
resource lands. While accepting
the premise that growth will
occur, clustering focuses that
growth into a smaller area of the
tract and preserves the remainder
as open space or farmland.
Although the density of
development permitted by zoning
remains the same, the units are
clustered on a smaller portion of
the site which preserves land and
reduces development costs.
Grouping residential units into
one area requires less investment to
support infrastructure.
Cluster development is relatively
easy to administer, does not
penalize the landowner or the
developer, and is an important tool
to support community efforts to
protect environmentally-sensitive
lands. Landowners are usually
receptive to clustering because it
does not limit the volume of
development permitted on their
property.
CLUSTER DEVELOPMENT CONCEPT
SITE DATA
Forest Cover - 48 acres
Pond -2 acres
Wetlands -2 acres
Farm Field -48 acres
Building Restriction Line
Clustering does not imply
development consisting solely of
townhomes, apartments, or condominiums that may be
out-of-place in a rural setting. Single-family homes can be planned,
but on down-sized lots that are modeled after traditional villages.
Less land is used for lots and more is used for open space or
agriculture.
Cluster development can differ from conventional subdivision in
several ways: street and right-of-way standards can be reduced; lot
sizes are typically smaller; stormwater management can utilize
more natural systems; a broader mix of housing types may be
Alternative Density Concept Plan
Cluster Development « 51
-------
To avoid redistributing
the equity held by
existing land owners,
cluster zoning allows
the same gross density
or overall amount of
development that is
already permitted. The
difference is that
clustering requires all
new construction to be
limited to (typically)
one-half of the parcel
or less.
- Randall Arendt, Cluster
Development, A Profitable
Way to Some Open Space
permitted; a greater percentage of site open space is typically
provided; and in some cases, non-residential land uses may be
allowed.
What Clustering Can Do for a
Community
Applying cluster development in a community preserves open
space without requiring the expenditure of public funds to
purchase the development rights from landowners. The shorter
road network needed to serve the cluster development results in
lower costs for roads, sewer, and water lines. According to
Maryland Office of Planning, approximately $3,500 in site
development costs are saved for every five acre lot downsized to
one acre. Costs can also be lowered through reduced street and
right-of-way standards. In addition, studies have shown that
protected open space increases the value of real estate on adjacent
lots.
Benefits to the Chesapeake Bay
Improves Stormwater Management
The open space that is created through clustering allows
stormwater to be channelized or detained by grass swales and
ponding areas. In this way, the need for curbs, gutters, inlets,
headwalls, and pipes is reduced. Flooding potential is also
minimized.
Local rivers and streams and thus, the Chesapeake Bay, benefit
from land that is preserved. Undeveloped land minimizes runoff
and is more permeable to stormwater than land that is developed.
Preserves Land
Clustering preserves open spaces that provide natural habitat
areas. It also allows for some portion of agricultural lands to
continue to be farmed. Conventional zoning permits all parcels
to be developed and converts open spaces into backyards,
sidewalks, and driveways. These types of developments are
shrinking the supply of agricultural lands and other natural
resource lands. Clustering is a method of mitigating the effects of
growth. It allows the same amount of development as
conventional zoning, but it assures that some portion of open
space remains after development occurs.
52 » Beyond Sprawl Handbook
-------
As open space tracts are preserved in developments utilizing
clustering, a greenway system can be established. Land to be
conserved in several residential neighborhoods can be linked to
form interconnected open space corridors which can be used for
recreational purposes, wildlife habitat, greenways or woodland
conservation.
How to Implement Cluster
Development
1) Review the zoning
ordinance and subdivision
regulations
Local governments should review the
current densities of development
permitted in various zoning districts and
select those districts (usually lower
density districts) where cluster
development should be encouraged or
required.
2) Establish open space
requirements
Since the basic premise of cluster
development is to control the "form" and
layout of development, but not the
volume of development, it is important
to carefully assess standards.
Requirements that are too restrictive may place an unfair burden
on the landowner or developer.
For example, requiring 80 percent of a parcel to be protected as
open space may be overly restrictive if the zoning density permits
one residential unit per acre. Under traditional zoning, a 100 acre
site less land allocated for roads (usually 10 to 15 percent) would
support 90 lots. If 80 percent of the site were to be required as
open space, the developer would have to locate 90 lots on 20 acres
or less, resulting in less than quarter acres lots. Therefore, the
required open space must be adjusted depending on the existing
zoning density of the site. Moreover, very small lot sizes may not
be acceptable in cases where no public sewer and water facilities
are available because drainfields for septic systems may require up
to 10,000 square feet or more per lot.
Cluster site plan from Rural by Design
Cluster Development » 53
-------
3) Pretest standards for open space
required and density permitted
Randall Arendt, in Rural by Design, suggests that the clearest
method of determining density is through the use of "yield plans".
These plans are conceptual sketches of conventional layouts that
express the standard criteria for homes and yards. If the proposed
development area is unsewered, then a significant portion of the
lots may be required to support septic systems. Streets are also
evaluated for their ability to meet standards. The final "lot yield"
determined by application of traditional zoning can provide a
rational basis for determining the number of units to be allowed
in a cluster development.
4) Specify standards for buildings
The location of buildings is a key element of clustering if
protecting rural character is one of the community's goals. There
are several criteria for site selection:
Buildings should not sit on the top of ridge lines.
Open fields should be avoided.
Buildings should be built on least fertile soils.
Buildings should not occur on wetlands, buffers, transi-
tion areas, floodplains, or areas with steep slopes.
Buildings should be clustered in the least visible portions
of the site, such as the edges of fields or in wooded areas.
5) Establish a predictable and reasonable
review process
In order to effectively evaluate a development proposal that
utilizes clustering, standards should be in place to make it
relatively easy for the planning commission or review authorities
to judge site plans. The amount of open space required can easily
be evaluated, but it may take some background in site planning to
have the ability to ensure that the plan achieves its goal of
protecting rural character. The review process should not be so
rigorous, however, that it discourages implementation of cluster
development.
To make the process simpler for developers, there are regulatory
reforms that should occur:
54 Beyond Sprawl Handbook
-------
The special permit procedure section of the ordinance
should be revised to state that all applications that meet
the requirements of a cluster subdivision will be ap-
proved.
Public meetings should be held early in the plan develop-
ment process and comments should be restricted to the re-
view criteria.
Separate design standards should be developed for cluster
subdivisions and should be expressed in clear language.
Arbitrary requirements that limit creative planning
should be eliminated.
6) Establish buffer standards
In cases where the protected open space of the cluster development
is to be used for agricultural purposes, it is necessary to ensure that
residents are not affected by nearby farming operations. To do
this, it is prudent to require 75 to 100 feet or more of buffer
between residential and agricultural uses. Existing woodlands can
serve this purpose or native trees and shrubs can be planted.
7) Revise and adopt zoning and
subdivision regulations
A final step in implementing cluster development programs is to
revise the zoning ordinance and/or subdivision regulation to
establish procedures for the review and approval of cluster
development and set the selected planning standards and/or design
guidelines to permit or encourage cluster development. The
standards/guidelines should establish minimum performance
measures for:
the amount, location and usability of open space to be
provided;
the location of buildings to minimize visual impact to pre-
serve rural character;
buffering between residential properties and incompat-
ible neighboring uses;
the protection of trees, shorelines, and sensitive environ-
mental features including, floodplains, steep slopes or
wildlife habitat; and
the location and design of roadways.
Open space should be preserved in contiguous tracts where
possible. When higher densities of development are permitted
(e.g., greater than one house per 2 acres), a reduction in the
required open space may be required. Clustering can be applied
To retain the maximum
amount of rural open
space one option is to
encourage clustering of
allowable development.
Clustering retains the
same average low
density zoning
allowances, but clusters
several units together
to reduce
infrastructure costs.
- Residential Development
Handbook for Snohomish
County Communities
Cluster Development« 55
-------
to development of as little as three residences, but has greater
benefits when applied to larger development projects. The area of
a tract which is a candidate for cluster development can be as small
as ten acres, but is more appropriate for larger tracts of over 50
acres in size where greater opportunity exists to preserve large
parcels of open space.
Mandatory or Voluntary
Clustering?
Local governments can choose to make rural clustering an option
or a requirement. When clustering is included in the zoning
ordinance, but as a voluntary option, it has been shown that
developers will usually not utilize the option.
Mandatory clustering helps to protect irreplaceable natural
resources. With mandatory clustering, an exemption is usually
made for initial unregulated lot divisions (usually 3 to 5 lots). This
allows landowners a limited amount of development before being
required to provide for open space preservation in their
development plans.
Incentives
Density bonuses may encourage developers to implement the
cluster approach. In such cases, if more open space is provided,
the developer is given the right to subdivide his land into more
houselots than would have been permitted by the base zoning.
For example, a developer looking to subdivide a 100 acre farm
could be allowed to create up to 10 lots (one dwelling unit per ten
acres) if the lots are clustered onto 50 acres and the remaining 50
acres are preserved for farming or open space. The allowance
could increase up to 20 lots (one dwelling unit per five acres) if the
lots are clustered onto 30 acres and the remaining 70 acres are
preserved for farming or open space. Large density incentives
have a greater likelihood of enticing developers to change their
traditional subdivision plans. The following table illustrates how
a density bonus can serve to provide the community with a greater
amount of open space per tract.
56 « Beyond Sprawl Handbook
-------
Density Bonus for 100-acre Tract
Option
A
B
C
Open
Space
Preserved
50%
60%
70%
Number
of Lots
10
12
20
Acres
Saved
50
60
70
Acres
Developed
50
40
30
Density penalties also serve to encourage proposals that utilize
rural clustering. When utilizing penalties, developers are
permitted to build projects at higher densities only if they cluster.
If clustering is not part of the proposal, the developer is allowed
fewer units.
Barriers
Citizens may oppose cluster subdivisions due to their small lots
and high densities as compared to neighboring projects. If the plan
is designed correctly, however, the houses will be "buffered" from
adjacent parcels that may sit on larger lots. Clustering is not an
attempt to increase the number of houses in a project; it simply
reallocates the pattern and distribution of structures and roads. If
citizens understand the technique, they may be more willing to
support it.
Cluster Development« 57
-------
Models
Howard County, Maryland
Due to its convenient location between Washington, D.C. and
Baltimore, Howard County was growing very rapidly which was
threatening its rural character. The County's policy of three acre
minimum lots was not adequate to handle these growth
pressures. Consequently, the County's General Plan was
amended in 1990 to include an integrated package of land use and
growth management policies. Central to this new approach was
the concept of clustering new developments to preserve open
space.
Rural Clustering Zoning Districts
In 1992, the County designated zoning districts that utilize
clustering for developments. In the Rural Conservation district,
residential use is permitted at a density of 1 dwelling unit per 4.25
acres and clustering is mandatory on all parcels greater than 20
acres. In the Rural Residential district, subdivision has already
taken place and clustering is optional, but at the same density as
the Rural Conservation district.
Why it Works
The County designed very specific guidelines that assist the
developers in completing cluster subdivisions. For instance,
cluster lots may be no larger than 60,000 square feet and may be
as small as 33,000 square feet if a shared septic drainfield is used.
Development must be directed to areas that will have the least
impact on agriculture or natural features.
Due to soil qualities and septic drainfield limitations in Howard
County, cluster and non-cluster subdivisions generally generate
the same number of lots. The advantage of the cluster subdivision
is that it requires less costs for improvements such as stormwater
management or road construction.
Measures of Success
Many of the subdivisions in process in Howard County are cluster
subdivisions, even when not mandatory. The 107 acre Walnut
Springs development created 27 lots while retaining 75 percent in
58 « Beyond Sprawl Handbook
-------
a permanent easement and allowing a portion of the land to be
farmed in perpetuity.
For more information, contact: Marsha McLaughlin, Howard
County Department of Planning and Zoning, 3430 Court House
Drive, Ellicott City, MD 21043.
Loudoun County, Virginia
Rural Village Community Design Guidelines
Loudoun County adopted its first rural village policies and zoning
ordinance district in 1991. The ordinance called for clustered
development and stated that, "Such clustered development is
intended to place no greater burden on the natural environment,
the rural road network, public services and facilities than would
be generated by sprawl A-3 and is intended to permit the compact
grouping of homes located so as to blend with the existing
landscape...and to preserve to a greater extent the agricultural,
forestal, and visual character of the landscape." In 1994, the
revised Rural Village Community Design Guidelines were
adopted by the Board of Supervisors as amendments to the
General Plan and the Zoning Ordinance.
Village Characteristics
The rural villages defined in the Guidelines are intended to
provide physical, social, and economic centers for the County.
The villages are a minimum of 300 acres with no less than 80
percent of the gross land being subject to permanent open space
easement. The maximum residential development potential of a
village is no greater than one dwelling unit per three-net acres,
with a density bonus provided if a mix of unit types is developed.
In the village center, up to 300 residential units will be built on a
minimum of 60 acres in a compact manner to encourage
pedestrian use. Compact development patterns include
neighborhoods, civic and business uses, parks, squares, and greens.
It is built on a rectilinear pattern of interconnecting streets,
defined by buildings, street furniture, and landscaping as distinct
places to be shared by pedestrians and cars.
Why it Works
County officials recognized the importance of citizen support for
the new guidelines. Public meetings were held during the process
Cluster Development « 59
-------
of development. Their support allowed the Board of Supervisors
to proceed rapidly with the plan and ordinance amendments.
The clustered lots retain similar value to larger lots because the
purchasers are buying an open space conservation easement along
with their lot.
Measures of Success
Currently, three Village proposals are being processed in Loudoun
County, of which two have been zoned. The Courtland Farm
development has progressed the furthest. The 818 acre site will
utilize approximately 130 acres for its Village. The site is heavily
wooded with deep ravines so developers and the County
cooperated to adapt the grid network system to the topography
and to preserve as much existing vegetation as possible. A forested
area will be preserved in the Village green.
For more information, contact: Pam Bower, Loudoun County
Department of Planning, 750 Miller Drive, SE, Suite 800, Leesburg,
VA 22075.
60 » Beyond Sprawl Handbook
-------
Traditional
Neighborhood
Development (TND)
Traditional neighborhood development is a development pattern
that reflects the characteristics of small, older communities of the
late 19th and early 20th centuries. The focus of the community
shifts from the automobile to the
pedestrian. Emphasis is placed on the
layout of the streets, the building of a
variety of housing types with smaller front
yards, the more judicious use of open
spaces to serve as community focal points,
and the appearance of clearly defined
streetscapes. TND aims to encourage
pedestrian activity residents should be
able to walk from home, to jobs, to
commercial establishments.
The overall area of a project is typically no
more than 400 acres in order to ensure a
ten minute walking radius from any point.
The small area necessitates higher densities
that promote shopping and transit
demand.
Traditional neighborhood development
provides an option for reducing traffic
congestion by creating land use patterns
and circulation patterns that lower vehicle
miles travelled (VMT). This can be
achieved by utilizing the grid system
Traditional Neighborhood Development
Source: Chester County Planning Commission, 1997
which offers a greater number of circulation options that provide
for more direct connections between destinations. Additionally,
TND can be closely linked to transit oriented development which
is centered around a transit system. Both techniques promote
compact development and mixed land uses that reduce automobile
dependence.
Traditional communities are characterized by:
mixed land uses;
grid street patterns;
Traditional Neighborhood Development « 61
-------
pedestrian circulation;
intensively-used open spaces;
architectural character; and
a sense of community.
What TND Can Do for a
Community
Improves Traffic Flow
The traditional neighborhood is patterned on a grid which
provides many routes to each destination. Due to a choice of
routes and mixed land uses, traffic congestion does not become as
intense on these roads as on larger arterial roads that connect
subdivisions to commercial centers. Streets can be narrower
because traffic has more alternatives. The narrower streets are
lined with trees and allow parking along them. This provides a
buffer between the pedestrian and the automobile and makes the
street more pedestrian friendly.
Provides a Variety of Housing Options
Utilizing different lot sizes provides for housing that meets the
needs of a wider number of residents. By building single-family
residents, townhomes and condominiums, backyard "granny"
units, and apartments over stores, a socioeconomic mix is achieved
in the community. Residents of different ages and incomes
become connected as neighbors.
Encourages Alternative Transportation
Modes
The mixed use, compact development of traditional
neighborhood development makes public transportation feasible.
With transportation options, residents can invest less money into
automobile costs. Without mass transit options and with long
commuting times, most families must invest in two cars. An extra
car costs $5,000 annually to operate. (Duany and Plater-Zyberk,
1992)
Creates a Sense of Community
In the traditional neighborhood, there are greater opportunities
to live, work, and recreate in the community. Neighborhoods that
are oriented to the pedestrian promote social interaction and
citizen security. Children can walk to schools and parks.
62 »Beyond Sprawl Handbook
-------
Benefits to the Chesapeake Bay
Traditional neighborhoods allow residents to walk to more
destinations. The reduction in automobile trips decreases air
pollution and slows the demand for new roads. TND can reduce
paved areas on a regional scale, resulting in less stormwater runoff.
The preservation of open spaces is encouraged in the form of parks
and greenways.
What Role Can Local
Government Play?
Educate your constituents
A key obstacle to TND projects is citizen opposition. Many
residents do not fully understand what traditional neighborhood
development implies and are concerned about high density
housing. Local government officials and the people they represent
need to understand the premise of TND before projects are
presented for approval. It is necessary to overcome the perception
that higher density is necessarily more damaging to the
environment. By and large, the density for TND is no greater than
that evident in older portions of a community which many
residents consider the most appealing neighborhoods. In TND
projects, higher density in portions of the site allows for more
overall open space.
Amend regulations
Many existing zoning ordinances are incompatible with the design
of traditional neighborhoods. They require large lot sizes,
setbacks and off-street parking. Traditional neighborhoods favor
small lots and smaller setbacks. Local governments must be
flexible with regulations for developers willing to undertake a
TND project. This includes changing standards for street widths,
curb radii, and yard requirements which would preclude TND.
One option to revise existing regulations is to establish an overlay
zoning district for development in older neighborhoods. In the
overlay zone, design standards are created that encourage
compatible new construction and additions in traditional
neighborhoods. The overlay zone makes exceptions to
development standards that are designed to create modern
suburbs. The new district establishes specifications for building
bulk, building setback, yard requirements, building height and
scale, and/or parking requirements.
Traditional Neighborhood Development » 63
-------
A neighborhood has the
following characteristics:
It has a center and an
edge. The center is
focus of the
neighborhood's public
buildings.
It is compact, usually it
takes only 5 minutes to
walk from center to
edge.
It includes a mix of
activities, e.g.
residences, shops,
schools, workplaces, and
parks.
It consists of inter-
connected streets laid
out in a modified grid
pattern.
It gives priority to
public space.
- New Urban News, Jan-Feb
1997
Protect existing traditional neighborhoods
The style and character of existing traditional neighborhoods are
often threatened by zoning ordinances that would allow new
buildings of different density, form, and scale to be erected in the
neighborhood. A local government should ensure its zoning
ordinance requires suitable lot sizes and setbacks, permits a mix
of uses, allows off-street parking behind or beside commercial
buildings, and ensures new streets are built with similar widths
and curb radii.
Protecting traditional villages does not preclude development.
However, the growth should not obliterate the
pedestrian-friendly atmosphere of the community.
Encourage commercial activity
A local government can pave the way for developers to design
traditional neighborhoods, but to be successful, the plans should
provide for the Village Center from the outset. Amenities, such
as retail and commercial, make the community more attractive
and housing units easier to sell. Between 2 and 30 percent of the
neighborhood should be allocated to commercial activity.
Barriers
Local fire departments have voiced concern over the narrower
streets. They worry that trucks will not be able to fit down the
streets. However, this has not posed a problem in some of the
traditional neighborhoods that have already been constructed.
Obtaining a bank loan can be a difficult process because many
lenders specialize in a specific type of development residential,
office, or retail. The developer may be forced to go to different
sources to finance his project. Local governments that support
TND can educate bankers about the benefits of such development
and encourage lenders to provide financing for projects.
Although providing for amenities such as parks and village greens
can be expensive, this is often offset by the lower costs associated
with narrower streets or shorter water and sewer lines.
64 »Beyond Sprawl Handbook
-------
Models
Norfolk, Virginia
East Ocean View
As the East Ocean View area of Norfolk declined, it caused
problems for the City. Poverty was overwhelming and the area
became known for its crime and deterioration. In 1994, a charette
was led by Andres Duany and Elizabeth Plater-Zyberk to seek a
solution for the 90 acres site along the Chesapeake Bay. The result
was a plan that will transform the area into a new urban
community through the use of traditional mixed-use design.
Why it Works
The plan capitalizes on many of the existing features of East Ocean
View that give it the characteristics of a neighborhood. Mature
trees, streets that can be used as alleys, public squares, and public
Bay frontage are all to be utilized to make East Ocean View an
attractive, pedestrian-friendly community.
A market study for the area indicated that the price range for
houses will be $70,000 to $300,000. Of the total residential
development, 20 percent should be dedicated to apartments and
retirement housing. The mix of housing types and prices will
allow people with a variety of income levels to live in the same
neighborhoods.
Measures of Success
Currently, the City is in the process of clearing vacant properties
and readjusting street alignment to combine a rectilinear grid and
a curvilinear grid into the neighborhood. The redevelopment
phase can next be implemented.
For more information, contact: Lee Rosenberg, Norfolk
Environmental Services Manager, City of Norfolk, 1101 City Hall
Building, Norfolk, VA 23510.
Manheim Township, Pennsylvania
In 1992, Manheim Township established a Planned Residential
Development Article to, "encourage innovative, neotraditional
Traditional Neighborhood Development » 65
-------
residential/mixed use developments so that the growing demand
for housing may be met by greater variety in type, design and
layout of dwellings and by the conservation and more efficient use
of open space". The Township conducted a Visual Preference
Survey to ensure that the guidelines encourage developments that
meet the needs of residents. In order to make the guidelines
clearer, the Article includes both text and illustrations.
Measures of Success
The Millfield Project is a 52.88 acre site that is in Phase 1 of its
development. Phase 1 includes 25 residential units, but the total
amount of units will be 156 at 2.95 dwelling units per acre. Of
those, 38 will be large lot single family, 67 will be small lot single
family, and 51 will be townhouses. As required, 23,400 square
feet is dedicated to commercial uses.
Why it Works
The development standards, which are mandatory, and
development guidelines, which are suggested, are not intended to
be inflexible. They should not restrict creativity and both can be
modified after consideration by the Board of Commissioners and
the Planning Commission.
In negotiations with the Millfield Project developer, cooperation
was required between both parties in applying the standards and
guidelines in order to ensure the best possible project. While some
waivers were granted, the overall intent of the Project to create a
traditional neighborhood will be achieved upon completion.
For more information, contact: Sean Molchaney, Manheim Township
Planning and Zoning, 1840 Municipal Drive, ManheimTownship,
PA 17601.
Annapolis, Maryland
The City of Annapolis, Maryland created a Residential
Conservation Overlay District to protect and promote the
traditional neighborhood design and mixed uses found in the
Eastport neighborhood of the City.
Eastport
Eastport, an historic community begun in the late 19th century,
is located a short distance from downtown Annapolis. Its social
and physical diversity and its small, intimate scale are qualities that
66 «Beyond Sprawl Handbook
-------
create a distinct community for its residents. When development
increased in the neighborhood, the City created a special overlay
zone with standards designed to protect the traditional building
patterns of Eastport.
The Residential Conservation (RC) Overlay
District
Prior to the creation of the RC overlay district, the zoning
regulations in Eastport did not allow for traditional, small-town
type of development. Instead, the regulations were designed along
modern suburban development standards which required large
setbacks for new residential development.
The RC overlay district encourages construction that is
compatible with the traditional building patterns and
relationships in Eastport. The district provides design guidelines
for building bulk, building and side yard setbacks, building height,
scale and massing, facade articulation, accessory structures, fences,
and off-street parking.
Why it Works
The City established an application and review process that
encourages the applicant to meet with Planning staff to discuss the
requirements of the overlay district. The standards are not
intended to prescribe architectural styles, but to help to preserve
the existing traditional pattern of development.
The Planning staff created a brochure that summarizes the design
requirements and the review process in an effort to assist the
applicant.
Measures of Success
The ordinance halted the trend of the 1980s in Eastport that
resulted in new and remodeled houses that were set back from the
street and had garage dominated fronts. Instead, development in
the area now respects the traditional features of the neighborhood
and promotes new construction along the existing scale and
character of the surrounding properties.
For more information, contact: Dirk Hinrik Geratz, Annapolis
Planning and "Zoning Department, 160 Duke of Gloucester Street,
Annapolis, MD 21401.
Traditional Neighborhood Development» 67
-------
Financing Options
-------
Financing Local
Government Initiatives
Introduction
This handbook for local government officials identifies many
useful techniques for managing land use to protect local streams
and the Chesapeake Bay. Financing also plays an integral part in
managing land use, since financing not only provides the means
for implementing plans and ideas, but also offers a powerful tool
for directing land use practices. Financing techniques, such as
those for stormwater management, help protect natural resources
in addition to encouraging managed, well-planned growth.
Clearly there are costs associated with the challenging task of
implementing new techniques, ordinances and programs. "Who
should pay?" and "What is a fair price?" are questions often asked
of local government officials. More and more, we are coming to
realize that the costs of managing pollution that runs off the land,
commonly called nonpoint source pollution (NFS), inevitably
rest with everyone who lives and works in the watershed.
Financing sources depend on a dedicated, reliable source of
repayment, sometimes in the form of special rates, fees, or taxes.
These dedicated revenues reflect the support of those who live,
work or visit the area, acknowledging that their livelihood and
quality of life are intertwined with the health of the Bay.
Finance as a Land Use
Management Tool
Although the costs associated with implementing innovative land
use management techniques is location-specific, it is possible to
identify innovative ways for stakeholders to join together to help
pay for desired environmental projects. These financing ideas
should first consider "free" sources of funds, such as grants.
Although grants may be "free" of the costs associated with
repayment, they demand great responsibility on the part of
recipients to maintain the activities supported by the grant.
Other types of financing include the formation of special districts
which have the ability to collect fees and receive grants and other
types of funding in order to provide some type of service, such as
Financing Options » 69
-------
stormwater management. These districts supplement the services
of local government while providing a specific service to an
identified area within a jurisdiction.
Various loan programs provide another type of financing tool,
including the State Revolving Loan Fund program, the Rural
Development Administration or the capital markets, where they
are usually referred to as a bond. These financing vehicles also
require a dedicated source of repayment and may be repaid with
special fees or rates, and/or dedicated taxes.
Getting Community Buy In3
Because most financing mechanisms require a dedicated source of
repayment, those being asked to repay the obligation must 1)
believe that there is a problem, 2) believe that it is in their best
interest to remedy that problem, and 3) be in a financial position
to help pay to fix the problem. This necessitates a public which
has "bought in" to protecting local streams and the Bay. Local
governments play a critical role in obtaining community "buy in"
by informing community residents of problems and engaging
them in a dialogue to discuss options in which the problem may
be solved.
It would be fair to suggest that an educated public forms an
essential basis for successfully supporting restoration of local
streams, the Bay and other water quality projects. An appendix
lists a number of sources for educational information on nonpomt
source pollution control. The information from these sources can
strengthen local governments' ability to obtain public support for
financing water quality, stream corridor and Bay related projects
and programs.
Financing Tools
In the following pages, a number of financing mechanisms that
could be employed to help pay for implementation of water
quality projects are identified. Many of these mechanisms work
to support the implementation of the growth management
techniques overviewed in this handbook.
Special Assessment District
Description: A special assessment district (e.g., a stream or small
river watershed district or a natural resource management or
beach district) is an independent government entity formed to
70 » Beyond Sprawl Handbook
-------
finance governmental services for a specific geographic area. They
can range in size from a city block to a multi-jurisdictional
arrangement. Special districts focus the costs of enhanced services
on the beneficiaries of those services by separating benefited
taxpayers from general taxpayers. Residents of special districts pay
taxes (usually in the form of increased tax rates) to finance
improvements from which they will benefit. If, for example,
citizens in a certain geographic area were interested in reclaiming
a wetland in their neighborhood or enhancing recreational
opportunities by improving a waterway, a special district could
provide needed structure, management and financing.
Likewise, such a district could be used to fund necessary public
improvements within an urban service area in conjunction with
a designated growth boundary. Additionally, such a district could
also be utilized to support transit alternatives associated with
transit oriented development policies.
Special districts have the power to levy taxes, and collect fees and
special assessments in order to pay for the debt incurred in
developing the water quality project, as well as to pay for on-going
upkeep. Special districts may issue revenue bonds to finance
projects that generate revenues, such as fee-based wetland hunting
preserves, watercraft rental facilities on waterways, or fee-based
improved parkland or beaches. Special districts can issue debt
independent of state or county government, reducing the burden
on general debt capacity.
Capital/Revenue Source: The district is both a capital financing
and revenue generating vehicle. The special district can be
authorized to issue bonds and collect revenues for the purpose of
financing a water quality project.
Actions Needed: State laws define the powers and characteristics
of special districts and how they may be established. Some states,
such as California, Illinois, Texas and Washington, have strongly
supported the formation of special districts for a wide variety of
purposes. Other states have restricted the establishment of special
districts to only a few specific purposes.
Although state enabling legislation varies widely not only
between states but between different types of allowable special
districts within a state, the general steps for forming a special
district and the district's responsibilities can be outlined as follows:
In most cases, landowners petition a governmental body, such as
the governor, the state legislature, or a county executive, to
establish a district encompassing the landowners' properties. After
Financing Options * 71
-------
review and approval of the district, the landowners elect the
district's governing board, which is often comprised of
landowners and business representatives from the district.
Sometimes, district boards may be appointed by governmental
officials. Board members often have staggered terms and may have
restrictions on reelection.
The district's board is responsible for administering the water
quality project proposed for the district. This will require
technical expertise to construct and operate the project,
management skills to administer the ongoing operations, and
political skills to effectively work with local and state public
officials.
The board has the power and responsibility to hire staff, contract
with businesses and manage and maintain the project. In some
states, this includes exercising the power of eminent domain and
using management tools such as public easements and
right-of-ways. The board also levies and collects taxes, fees and
assessments and can accept grants and enter into loan agreements.
The board also issues bonds on behalf of the district.
There are many special districts in the United States. A good way
to learn how to start one is to contact a special district in your
area. Citizens seeking new or enhanced services might find special
districts easier to establish than convincing a local government to
increase its budget for those services.
Stormwater Management Utility
Description: A utility is an enterprise that performs a service and
has the authority to charge fees in relation to that service. For
stormwater management, land owners are assessed a fee that is
based on their parcel size and degree to which their land is
developed. Typically, residential parcels are grouped into size
classes with a common fee within each class. Commercial parcels
are assessed individually and charged a specific fee. Fees are most
commonly collected via existing water bill systems or as a line item
on property tax statements. The revenues are usually held in a
separate fund dedicated to stormwater management activities.
The utility could address stormwater retrofit costs and a portion
of erosion and sediment control program costs. These utilities
could be established within a municipality, a county, or
encompass a whole watershed.
A stormwater management utility can also provide funding for
public stormwater management facilities and improvements
which may be prompted by higher densities of development.
72 » Beyond Sprawl Handbook
-------
Typically, higher densities are associated with a greater percentage
of impervious surfaces. Therefore, a local government may
consider this technique in association with the development of an
urban growth boundary or in identifying appropriate locations
for receiving areas for a transfer of development rights program.
Capital/Revenue Source: Fees could be collected by a single
watershed authority or by each county and municipality. The
former has the advantage of reducing duplication of effort,
whereas the latter may be able to take advantage of existing billing
systems. Each jurisdiction would provide the stormwater services
within their portion of the watershed.
Utilities can generate substantial revenues and represent a new
source of funds. Utility revenues would allow local, county and
state general funds to be released for other uses or to reduce taxes.
Utility's dedicated funds are viewed as being more accountable by
the general public. The rate system is more equitable since it is
based on pollution contribution rather than property value (a tax).
Utilities can generate capital funds (revenue bonds) secured by the
utility's revenue stream.
Actions Needed: Local ordinances and state legislation (if
watershed-based) may be required; rate-payer data bases and
billing systems must be developed, and a public education
program must be established.
A Wetland, Forest or Beach Mitigation
Banking System
Description: To extenuate the impact of development on
wetlands and forests, and to comply with Clean Water Act
(section 404) and Food Security Act ("swampbuster") provisions,
many states have mitigation requirements. A public agency or
private development company is required to, in effect, "replace"
any wetlands or trees that are destroyed by the development
activity. The idea is that wetland, forest and other ecosystem
functions provide benefits to society that we do not want to lose.
For this reason, mitigation of development disturbances is
generally preferred on-site, but may be performed off-site if an
appropriate on-site location is not available or practical.
Carroll County, Maryland uses Forest Conservation banking by
permitting trees to be planted in pre-approved areas throughout
the County. These plantings can be used as credits towards the
requirements of the County's Forest Conservation Ordinance.
Financing Options * 73
-------
When individual mitigation occurs, it is often in a piecemeal
fashion uncoordinated with area or regional natural resource and
conservation plans. Additionally, this piecemeal approach is
ineffective in developing large, connected tracts of recovered
ecosystems. Finally, individual mitigation activities are time
consuming and expensive not only for the developer but for local
and state government.
For these and other reasons, mitigation banking has been
proposed as a means to realize environmental and biological
benefits as well as to save time and money. Mitigation banks
facilitate the administration of a system where appropriate areas
for wetland, forest, or beach restoration or creation (receiving
areas) are matched with developers in need of satisfying off-site
mitigation requirements. These receiving areas are often located
within the same watershed as the impacted or development area
and usually involve large, continuous tracks of land.
A mitigation bank, in addition to coordinating mitigation
activities, could also serve as the regional clearinghouse for sources
of dredged material available for restoration or creation of
mitigation receiving areas. The U.S. Army Corps of Engineers and
other dredging concerns should consider using existing mitigation
banks, or set up a new mitigation bank to distribute material
dredged during their operations.
Local groups and citizens not in a position to establish a mitigation
bank should nevertheless register their local site as a potential
receiving area. If local groups encourage mitigation banks to list
sources of dredged material for their restoration projects, this
encourages banks to add this function to their responsibilities. In
this "way dredged material could be used to restore, enhance or
create receiving sites and improve water quality.
Capital/Revenue Source: Although mitigation banks facilitate
wetlands restoration or creation, they neither provide capital nor
revenue for projects. Mitigation banks can coordinate all involved
parties, from public agencies and private companies to local
community groups benefiting from a restored or created wetland.
If businesses that are required to mitigate off-site use a designated
receiving area in a local community, then that community will be
spared the costs of establishing a restored or created wetland,
although there will be ongoing maintenance expenses that must
be met.
Actions Needed: In most states, the mitigation process is
sequential. The first step is avoiding an impact to a wetland, forest
or coastal area. If the disturbance is unavoidable, the second step
74 « Beyond Sprawl Handbook
-------
should minimize adverse impacts to these areas. The third step
involves compensating for the impact by replacing or providing
substitute environments, preferably on-site, or elsewhere within
the watershed. This third step is where mitigation banks can play
an important role. As a central coordinator and clearinghouse of
information, the bank would develop an inventory of areas that
need restoration or would be suitable for the creation of substitute
environments. The bank could also account for, manage and track
available sources of dredged material which could be used in
restoration or creation activities.
All mitigation banks need a "banking instrument," or
memorandum of understanding, which documents various
agencies' concurrence on the objectives and administration of the
bank. The signatories to the banking instrument may include the
Army Corps of Engineers, U.S. EPA, the Fish and Wildlife
Service, the National Marine Fisheries Service, and the Natural
Resources Conservation Service, as well as state and local natural
resource agencies.
The banking instrument should describe the physical and legal
characteristics of the bank, and how the bank will be established
and operated, including whether it will account for and manage
sources of dredged material. In cases where the establishment of
the mitigation bank requires the filling or altering of a wetland
(Clean Water Act section 404), the banking instrument will be
made part of a Corp of Engineer permit.
A bank sponsor, either a public or private entity, is chosen, or
may even initiate the idea for a mitigation bank. The sponsor is
responsible for the operation and management of the bank, and
the long-term ownership and continued financing, if needed, of
the receiving areas. Many receiving areas, as they mature, will need
little or no support.
State Revolving Fund (SRF)
Description: Local governments can take advantage of a State
Revolving Fund which allows for the financing of private sector
projects that enhance or protect water quality (such as septic
system repair or replacement, erosion control and bank
stabilization, landfill capping, and construction of animal waste
storage facilities)
The SRF was established through the Water Quality Act of 1987
to replace the U.S. EPA Construction Grants Program for
wastewater treatment facilities. All fifty states now have an SRF
program, although the programs vary widely in terms of qualified
Financing Options » 75
-------
borrowers, rates, terms, and more. The objective of the program
is to improve water quality through the use of low-interest loans.
Currently, many SRFs are made available to both the public and
private sector for any project that contributes to cleaner water or
protects water quality.
If your state's SRF program is extended to both the public and
private sectors, private and public/private partnerships can use
and leverage SRF funds to engage in such activities as septic system
repair or replacement, erosion control and bank stabilization,
landfill capping, and construction of animal waste storage
facilities.
Of course, the SRF has always been available to public entities
such as local or state port authorities and solid waste management
departments for water quality projects. SRFs can provide loan
funds for wastewater treatment facility improvements or upgrades
that may be necessary to support growth within designated urban
growth areas. As long as the Intended Use Plan (IUP), which is
filed with the U.S. EPA, identifies certain water quality projects
as eligible under the SRF, public entities should be able to take
advantage of the program now.
Capital/Revenue Source: The SRF makes available capital funds
for the building or establishment of a water quality project. The
project must be able to show it will generate a reliable and steady
stream of revenues which will be used to repay the low-interest
loans. Revenues from water quality projects could come from
special assessment district fees, taxes, license fees and more.
Actions Needed: For public as well as private entities, all that is
needed to ensure access to the SRF is an Intended Use Plan (IUP),
filed with the U.S. EPA, which states that certain water quality
projects can be eligible for the program. An IUP which generally
states that any project which improves water quality is eligible for
the program would automatically make many projects eligible.
An Intended Use Plan (IUP), which is filed with the U.S. EPA,
explains how Federal (SRF Federal Capitalization Grants) and
state appropriations will be used in the program. This plan
identifies the specific types of eligible projects to be funded during
a fiscal year and provides detail about future demand for the
program, program eligibility, and program management and
development.
When any program is made available to private borrowers,
program managers must be prepared for an increase in the volume
of loan applications as well as the unique characteristics in lending
76 « Beyond Sprawl Handbook
-------
to the private sector. One way to address the issues of increased
administration and credit quality is to authorize the program to
use the credit evaluation and administrative services of a financial
institution, such as local banks. Tapping financial institutions
would be an efficient use of resources since these institutions are
in the business of credit evaluation and loan administration.
After establishing rules and procedures with local banks regarding
water quality projects acceptable to the SRF program, a bank
would evaluate a loan application from a private sector borrower
using the bank's own credit guidelines. If the loan application was
approved by the bank, the SRF program would purchase a
certificate of deposit from the bank in an amount equal to the
approved loan. The SRF program would accept a lower rate on
the certificate of deposit, and the bank would pass on the same
rate savings to the loan applicant, thus making available
low-interest loans for a wider variety of water quality projects.
Tax Increment Financing
Description: This technique requires the creation of a special
district when a government-financed enhancement, such as the
creation of a wetland park or an improvement to a facility, benefits
the residents of the special district. From that time on, two sets of
tax records are maintained for the district one that reflects the
value of assets up to the time of the enhancement, and a second
that reflects any growth in assessed property value in the district
after the enhancement.
Tax revenues collected on the increased values of the properties
after the improvement could be diverted to pay for the cost of the
government financed project in the special district. In some cases,
governments issue tax increment bonds for revitahzation projects,
with the bond being backed, in part, by the anticipated increase
in property values resulting from the investment.
This financing mechanism can be used to provide improvements
to support redevelopment and infill development projects targeted
by a community. Additionally, downtown revitahzation
programs are often financially supported with tax increment
financing.
Tax increment financing in a special district differs from a special
assessment district in that property tax rates are increased in a
special assessment district to cover improvements made in the
district. In special districts utilizing tax increment financing, tax
rates may not be increased, but additional revenues are collected
Financing Options » 77
-------
based upon increased assessed property values enjoyed after the
improvements are made.
Capital/Revenue Source: This mechanism is both a capital
financing and revenue generating vehicle. The special district
utilizing tax increment financing can be authorized to issue bonds
and collect revenues for the purpose of financing the desired water
quality project.
Actions Needed: Jurisdictions vary, but enabling legislation is
often required to designate a special district. Timely and accurate
property value assessments must be made and a local authority
must be established to maintain the two sets of tax records.
Small Community Bond Bank
Description: A bond bank is an institution that pools together
offerings of individual bonds issued by communities.
Small-denomination bonds backed by local taxes, park entrance
fees, license fees and other dedicated revenues would be "pooled"
together and offered as a single bond issue to finance a water
quality project. The single issue could be backed by the state or
county, or by bond insurance, if necessary. The single, larger issue
could take advantage of lower interest rates enjoyed by larger
issues. In addition, issuance costs would be spread out over more
issuers which would result in costs lower than any single
community's issue could command. The proceeds of the issue
could be dedicated to specific projects that improve water quality.
Capital/Revenue Source: A bond bank would provide the
capital necessary to construct a water quality project that
generated revenues which would be dedicated to the repayment
of the bonds. Revenues might come from taxes, park entrance fees
or license fees.
Actions Needed: A bond bank must be authorized and
established by the state, although not all bond banks require a state
guaranty for credit enhancement purposes.
Endowment Fund for Water Quality
Projects
Description: An endowment fund (e.g., wetlands and habitat
creation/restoration, tree planting, streambank stabilization, and
other water quality projects) can be used for a wide-range of water
quality projects including wetlands and habitat
creation/restoration, tree planting, streambank stabilization. A
privately run endowment fund can be established through
78 » Beyond Sprawl Handbook
-------
contributions from the private sector (possibly organized through
the Chambers of Commerce). A marketing campaign based on
"successful public/private partnering" could be developed. The
fund would coordinate with state agencies or a mitigation bank to
target high priority areas where habitat restoration or wetlands
restoration or creation would be particularly beneficial.
Capital/Revenue Source: Interest from the fund can be used to
supplement debt service requirements incurred in establishing a
water quality project. Or, as the fund grew, grants or loans can be
made to help establish future water quality projects. Finally, the
fund could be leveraged, perhaps by providing the match funding
necessary for a federal, state or private grant or loan program to
pay for environmental restoration and other water quality
projects.
Actions Needed: There must be a private initiative to establish
and run the endowment fund, and coordinate with state and local
agencies or a mitigation bank to identify desired and needed water
quality projects .
Purchase of Environmental Easements
Description: Environmental easement purchase programs allow
the purchase of easements on farm or forested land by individuals,
land trusts, businesses and other community organizations who
are interested in improving the water quality of an area. The
farmer would be "compensated" for implementation of certain
best management practices while the individual or organization
would be recognized for their environmental stewardship.
The easements would require use of best management practices to
minimize environmental impact as long as the land is farmed or
forested. (This type of easement would not as traditional
conservation easements do protect farmland from future
development).
Required practices could include nutrient management, soil
conservation and water quality plans, integrated pest
management, use of cover crops, animal waste management,
stream fencing, forest buffers, forest stewardship plans, streamside
management plans, and other appropriate best management
practices.
The easement would be in perpetuity and all future farm operators
must use these practices. Applicable practices would continue
through covenants and deed restrictions.
Financing Options » 79
-------
Capital/Revenue Source: Easements are neither a capital nor
revenue source for the watershed, but implemented practices can
reduce polluted runoff from farmlands, thereby realizing
identified water quality goals.
Actions Needed: Legislative authorization of easement
purchases.
Public/Private Partnerships
Description: Public/Private partnerships can be formed to
finance the construction or upgrade of a waste water treatment
plant, park, or other capital asset. Under a tax-exempt lease
arrangement, a public partner finances capital assets or facilities
by borrowing funds from an investor or financial institution. The
private partner generally acquires title to the asset, but transfers it
to the public partner either at the end or at the beginning of the
lease term. The portion of the lease payment that is used to pay
interest on the capital investment is tax-exempt under state and
federal laws. A tax exempt lease can be used as a vehicle to finance
the construction/upgrade of a wastewater treatment plant, parks,
or other capital assets.
Capital/Revenue Source: Tax-exempt leases are a method of
capital financing that could be applied to any project that requires
the building of capital assets, such as waste treatment facilities,
parks, or other capital assets. Since the lease arrangements do not
count against local debt limits, they may be a particularly useful
tool for communities whose debt capacity is nearly exhausted.
Actions Needed: Regulations need to be in place to allow a public
partner to enter into a tax-exempt lease arrangement with private
parties.
80 « Beyond Sprawl Handbook
-------
References
Appendices
References
-------
Appendix A
Sources for information and technical
assistance on nonpoint-source pollution
control and the protection of the
Chesapeake Bay
National Watershed Network: Contact CTIC (Conservation
Technology Information Center) to apply (765-494-9555, West
Lafayette, IN), or apply over the Internet
(http://kyw.ctic.purdue.edu/kyw/kyw.html). Provides
information on ways in which other watersheds are educating
their stakeholders. The network provides a clearinghouse of
information.
National Small Flows Clearinghouse/National Drinking Water
Clearinghouse: The NSFC/NDWC offers many free or low-cost
educational materials and services regarding wastewater and
drinking water treatment issues. Call its toll-free information
hotline at 1-800-624-8301. Its Website is
http://www.nsfc.wvu.edu.
A Guide to Septic Systems and Alternatives: Produced by the
Virginia Water Resources Research Center at Virginia
Polytechnic Institute and State University, Blacksburg in 1992 and
adapted from "A Homeowner's Guide to Septic Systems." The
guide is available for a small fee while supplies last, but this
research center may have other, more recent publications related
to septic system maintenance. Contact: 703-231-8036.
Constructed Wetlands for Wastewater Treatment and Wildlife
Habitat: The EPA's Office of Water released this document (EPA
832-R-93-005) in September 1993. The document is available from
NCEPI (513-489-8190).
Clean Marinas-Clear Value: EPA's Office of Water released a
publication highlighting the economic benefits realized by marina
managers who have implemented environmental management
techniques at their marinas. The guide (EPA 841-R-1996-003) is
available from NCEPI (513-489-8190).
Clean Vessel Act Grant Program: The US Department of the
Interior's Fish and Wildlife Service administers a pump-out grant
program which makes available $40 million in grants to states to
install these facilities.
Appendices » 81
-------
Pollution Impacts from Recreational Boating: a Bibliography and
Summary Review: Rhode Island Sea Grant publication (January
1990) lists 60 citations. Authors: Andrew Milliken and Virginia
Lee.
Finally, the Cooperative Extension Services from all 50 states have
agents that specialize in agricultural nonpoint source pollution
runoff from animals and crops, as well as specialists in the area of
septic systems and other homeowner-related runoff issues.
Contact the USDA Cooperative State Research, Education, and
Extension Service (202-720-3029) for a directory of contacts and
specializations.
82 » Beyond Sprawl Handbook
-------
Appendix B
Sources of information and technical
assistance on land use management and
the protection of the Chesapeake Bay.
The Alliance for the Chesapeake Bay (ACS) is a partnership of
citizens, organizations, and businesses who are working to
mobilize public support for the Bay restoration.
ACE
660 York Road
Balitmore, MD 21212
(410) 377-6270
225 Pine Street
Harrisburg, PA 17101
(717) 236-8825
POBox 1981
Richmond, VA 23218
(804) 775-0951
www.gmu.edu/bios
Chesapeake Regional Information Service (800-662-CRIS)
The Chesapeake Bay Foundation (CBF) is dedicated to the
protection and preservation of the Chesapeake Bay. CBF
accomplishes its mission through education, legislative action, and
scientific study of the Bay.
CBF
162 Prince George Street
Annapolis, MD 21401
(410) 268-8816
Appendices « 83
-------
The Chesapeake Bay Program (CBP) is the cooperative
partnership among the states of Maryland, Pennsylvania, Virginia;
the District of Columbia; the Chesapeake Bay Commission, a
tri-state legislative body; the U.S. Environmental Protection
Agency, representing the federal government; and participating
citizen advisory groups.
CBP
410 Severn Avenue, Suite 109
Annapolis, MD 21403
(800) YOUR BAY
www. chesapeakebay.net/bayprogram
The Land, Growth and Stewardship Subcommittee
410 Severn Avenue, Suite 109
Annapolis, MD 21403
(800) YOUR BAY
The Local Government Advisory Committee
416 Goldsborough Street
Easton, MD 21601
(800) 446-5422
www.chesapeakebay.net/bayprogram/localgov/localgov.htm
Maryland, Pennsylvania, and Virginia each have sources of |
information on land use management decision-making in the
Chesapeake Bay watershed. I
MD Department of Natural Resources
Tawes State Office Building, E-2 I
Annapolis, MD 21401 I
(410) 260-8710
PA Department of Environmental Protection
Rachel Carson State Office Building, 16th floor
Harrisburg, PA 17105-2063 I
(717) 783-2300
VA Chesapeake Bay Local Assistance Department |
805 E. Broad Street, Suite 701
Richmond, VA 23219 I
(804) 225-3440 '
84 » Beyond Sprawl Handbook
-------
Appendix C
The Chesapeake Bay Local Government
Advisory Committee
Chair
Russell Pettyjohn, Mayor, Lititz Borough, PA
Maryland
Gary Allen, Mayor, City of Bowie
Curt Lippoldt, Mayor, Pocomoke City
Margaret Myers, Caroline County Commissioner
George O'Donnell, Queen Anne's County Commissioner
Edward Sharp, Mayor, Takoma Park
Pennsylvania
James Wheeler, PA State Association of Township Supervisors
John Garner, PA League of Cities and Municipalities
Robert Gerhard, Cheltenham Township Commissioner
Harry Stokes, Adams County Commissioner
Virginia
Gloria T. Fisher
Laura Belle Gordy
C. Flippo Hicks, Virginia Association of Counties
Henry Lane Hull
Kathleen Lawrence, VA Dept. of Conservation & Recreation
Hal Parnsh
Washington, DC
William Rumsey, Office of DC Councilmember Linda Cropp
Cheryl Amisial, DC Environmental Regulation Administration
The LGAC would like to take the opportunity to thank the following individuals
for their assistance in reviewing and contributing to this handbook:
Sue Ann Barry, Lititz Borough, PA; Greg Bowen, Calvert County, MD;
Jeff Butler, Manheim Township, PA; Wayne Clapp, Chester County,
PA; Bryan David, Isle of Wight County, VA; Mary Heinricht, Virginia
Beach, VA; Elizabeth Hickey, the Environmental Finance Center;
Cheryl Jones, Salisbury, MD; and Marsha McLaughlin, Howard
County, MD.
Appendices » 85
-------
References
Alliance for the Chesapeake Bay. December 1995. "White Paper -
Brownfields in Maryland."
Arendt, Randall. Fall 1991. "Cluster Development, A Profitable Way to
Some Open Space." in Land Development.
Arendt, Randall. 1994. Rural by Design. Washington, D.C.: Planners Press.
Arlington County Department of Community Affairs. 1980. Ballston Sector
Plan.
Bernick, Michael and Robert Cervero. 1997. Transit Villages in the 21st
Century. Washington, D.C.: McGraw-Hill.
Buckland, J. 1987. "The History and Use of Purchase of Development
Rights in the United States." in Landscape and Urban Planning.
Calthorpe, Peter. 1991. The Next American Metropolis: Ecology, Community,
and the American Dream. New York: Princeton Architectural
Press, Inc.
Chesapeake Bay Foundation. 1996. A Network of Livable Communities.
Daniels, Thomas L. 1991. "The Purchase of Development Rights
Preserving Agricultural and Open Spaces." in Journal of the
American Planning Association.
Duany Andres, Elizabeth Plater-Zyberk and Richard Shearer. Fall 1992.
"Zoning for Traditional Neighborhoods." in Land Development.
Freedgood, Julia. 1991. "PDR Programs Take Root in the Northeast."
in Journal of Soil and Water Conservation.
Gottsegen, Amanda Jones. 1992. Planning for Transfer of Development
Rights: A Handbook for New Jersey Municipalities. Burlington
County Board of Chosen Freeholders.
Greenbelt Alliance. 1996. "Factsheet: Urban Growth Boundaries."
Greenbelt Alliance. 1997. "Factsheet: Infill Housing."
Hampton Roads Planning District Commission. 1992. Vegetative Practices
for Nonpoint Source Pollution Prevention Management
Herson-Jones, Lorraine M. 1995. Riparian Buffer Strategies for Urban
Watersheds. Metropolitan Council of Governments
References » 87
-------
JHK and Associates. 1989. Development-Related Survey II. Washington, DC:
Washington Metropolitan Area Transit Authority.
Kelbaugh, Doug (editor). 1989. The Pedestrian Pocket Book. New York: Princeton
Architectural Press.
Lancaster County Planning Commission. 1993. Lancaster County Growth
Management Plan.
Lincoln Institute of Land Policy. 1995. Alternatives to Sprawl. Washington, D.C.
Makers Architecture and Urban Design. 1992. Residential Development Handbook for
Snohomish County Communities.
Maryland Chapter APA. 1996. "Zoning for Traditional Neighborhood Design in
Annapolis" in Maryland Planner.
Maryland Office of Planning. 1995. Managing Maryland's Growth: Overlay Zones.
Maryland Office of Planning. 1995. Managing Maryland's Growth: Transfer
Development Rights.
Masterson, William F. 1985. "Considerations in Structuring TDK Programs, " Urban
Land.
Mauer, George. 1996. A Better Way to Grow. Chesapeake Bay Foundation.
National Association of Home Builders. 1982. Cost Effective Site Planning.
Washington, D.C.
New Urban News. Jan/Feb 1997. Emmaus, PA.
Okamoto, Paul and Stephen Wheeler. Fall 1993. "An Interview with Peter
Calthorpe." in The Urban Ecologist.
Pizor, Peter J. Sring 1986. "Making TDK Work - A Study of Program
Implementation." in Journal of the American Planning Association.
Redman/Johnston Associates, Ltd. 1991. Isle of Wight Comprehensive Plan.
Redman/Johnston Associates, Ltd. 1994. Transfer of Development Rights Feasibility
Study for Thurston County, Washington.
Residential Development Handbook for Snohomish County Communities. 1992.
Everett, WA.
Roddewig, Richard J. and Inghram, Cheryl A. May 1987. "Transferable
Development Rights Programs: TDRs and the Real Estate Marketplace." in
American Planning Association.
Suchman, Diane R. June 1996. Infill Housing: Opportunities and Strategies for
Inner-City Neighborhoods. Urban Land Institute
88 Beyond Sprawl Handbook
------- |