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July 20, 2000  

Land Use Meeting

Present:  Dean Culbertson, John Julius, Shirlee Schuette, Jason Weiss, Roger Weihing, Barry Witthuhn, Stan Buman, Jim Ecker, Shirley Schuette.  Paul Tassoul and Ken Zilisch were excused.

PDR/TDR and Farmland Preservation as a Growth Management Strategy

The first presenter was Mike Koles from Winnebago County UWEX.  Mr. Koles spoke on Transfer of Development Rights (TDR). 

Town of Greenville Learning Objectives

·        What is a Transfer of Development Rights program?

·        What are the principles behind Winnebago County’s proposed implementation strategies?

·        How might TDR fit into the Town of Greenville’s implementation strategies?

 

What are Property Rights?

·        Property rights and ownership are legal concepts rooted in social institutions.  They refer not simply to material objects, but to relationships between individuals and institutions in society that govern access to material objects.

 

Property Right Concepts

The courts have defined four very important concepts:

·        Community rights are more important than private rights (Harper, 1923)

·        Regulation of an owner/s use of their property is legal because they receive benefits from having others’ use limited (Harper, 1923)

·        A regulation is legal if it furthers a public purpose and the landowner can make an economic gain off of it (Zealy, 1996)

·        Government doesn’t guarantee the most profitable use (Just, 1972)

 

Regulatory Problems

·        Lack of Permanence

·        Whimsical Democracy

·        Inequitable

·        Compensatory Regulation

A system of regulation whereby a property owner is financially rewarded (i.e. compensated) for the regulation imposed upon him/her”

 

A Bundle of Rights

·        Possess                       

·        Sell

·        Lease

·        Exclude

·        Enjoy

·        Extract Minerals

·        Build a House

·        Grow Crops

·        Air Rights

You have a bundle of property rights

You can split a right away from the bundle

You can split a right into its component pieces

What are Development Rights?

·        The difference between the existing use of a parcel of land and its potential use as permitted by existing law.

 

TDR Rationale

·        Splitting the Bundle

·        Preservation

·        Provide Equity

·        Growth Management

·        Development still occurs

·        Voluntary

·        More Equitable than Strict Regulation

·        Avoid the Takings Issue

·        Cheaper than PDR

 

Basic TDR Elements

  • Sending & Receiving Zones
  • Dual Transfer District v. Single Transfer District

                      Pros & Cons

  • Allocation of Rights

Who gets what – supply & demand; Administration – need to keep track of – GIS a must 

  • Retirement of Rights Administration 
  • Legality – Can’t do incorporated and un-incorporated together

 

TDR Opponents

  • Developers v. Environmentalists
  • Market Based
  • Tax Base Redistribution
  • Inequitable Assignment of Rights – there is no way to give rights out equally

 

Winnebago County Implementation Principles

  • Land Use
  • Density – Number of units per a certain amount of land

      Rural, Rural Transition, Urbanizing

  • Conservation Subdivision
  • TDR

Comments

  • Internal Inconsistencies
  • Most Striking – Rural
  • 8 Implementation Options

Max. and min. lot sizes

Density

Conservation subdivision with open space requirements

Capital improvements plan

Compensatory regulation system

Impact fees

Stormwater planning

  • Market Crap Shoot

            Rapid growth

            Limit size of receiving area

            Limit # of rights

  • Administration

           GIS

           Staff

  • Difficult to Understand
  • Politics

Ground that is left untouched retains water.  The water will not run off like it does once equipment compacts the ground.  Anything can be done with the open space, but be developed.

 

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PDR – Purchase of Development Rights

Ed Minihan, Director of the American Farmland Trust and Chairman from the Town of Dunn spoke on PDR.

The valley area is the third most endangered area for loss of farms. 

PDR is not a regulatory program

  • It is fully voluntary
  • Buyer essentially purchases the right to develop the land and retires rights permanently
  • Landowner retains rights and responsibilities associated with being a landowner. 
  • Sale of development rights is recorded as an easement attached to the deed

      Price is defined as the difference between fair market value and open space value

  Goals and Objectives

  • To preserve farmland and support farm operations
  • Maintain rural character and quality of life
  • To protect environmentally sensitive areas and scenic vistas
  • To create buffer zones around agricultural lands and environmentally sensitive areas
  • To protect the Town from the encroachment of neighboring cities

How Does PDR Benefit Landowners?

  • PDR is voluntary
  • PDR retains property in private ownership
  • PDR compensates the landowner for development value of property making it financially feasible to continue farming.
  • PDR retains land for farming while providing cash assets for estate planning retiring debt and farm improvements
  • PDR keeps farmland affordable for new farmers

It takes money to run a PDR program.  Services are costly for residential land development.

How does PDR Benefit Residents?

  • Provides permanent protection of vulnerable lands and important resources
  • Retains scenic views of open space and farmland
  • Preserves towns rural character and quality of life
  • Reduces the growth of property taxes for public services needed for residential development

In the Town of Dunn, the price paid for PDR lands ran in the range of $800-$2000 per acre.

This week’s questions for the stakeholder group were:

  • What are your impressions of protecting farmland through PDR/TDR?
  • How important is protecting farmland in Greenville?

Public Input

  • Adopt PDR
  • Won’t be able to develop if not in line to be purchased

More information on the Town of Dunn and farmland preservation can be found at:   http://userpages.itis.com/towndunn or www.farmland.org

 

 

 

 

 

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