HomeMy WebLinkAboutAgenda - 08-24-2009-C2ORANGE COUNTY
BOARD OF COMMISSIONERS
AND PLANNING BOARD
QUARTERLY PUBLIC HEARING ACTION AGENDA ITEM ABSTRACT
Meeting Date: August 24, 2009
Action Agenda
Item No. C.2
SUBJECT: Acceptance of the Phase III (Program Implementation Plan) of the Strategic
Growth and Rural Conservation Feasibility Study
DEPARTMENT: Planning and Inspections PUBLIC HEARING: (Y /N) Yes
ATTACHMENT: Final Report INFORMATION CONTACT:
Craig Benedict 245 2592
Glenn Bowles, 245 2577
PURPOSE: To consider accepting the Phase III of (Program Implementation Plan) of the
Strategic Growth and Rural Conservation (SGRC) Feasibility Study.
BACKGROUND: The BOCC retained The Louis Berger Group and the University of North
Carolina — Charlotte Urban Institute (hereafter 'the Consultant') to complete Phase III of the
Transfer of Development Rights (TDR) study. The Phase III study is a continuation of the first
two phases (background data collection and feasibility), which the Consultant completed in the
fall of 2006.
The original contract timeline proposed the completion of work on Phase III to occur in late
2007. Several mitigating factors, however, contributed to the extension of the project including
various delays in scheduling meetings with appropriate stakeholders and advisory groups and
the BOCC suggestion that staff focus on the adoption of the 2030 Comprehensive Plan in 2008.
General comments received during public presentations also prompted more extensive
deliberations.
After the Comprehensive Plan was adopted in October of 2008 the BOCC suggested bringing
back the consultant work product to complete the project. It needs to be remembered that the
acceptance of this final work plan will not implement the program. The final report will,
however, detail facets the County ought to consider when identifying possible ordinance
development to implement the program.
Transfer of Development Rights (now referred to as Strategic Growth and Rural
Conservation) program timeline.
• June through November 2004:
1. BOCC authorizes issuance of RFQ soliciting professional planning consultants to
assist with the development of the program,
2
2. RFQ distributed. Copies of the proposal posted on APA national and North
Carolina Chapter websites. Five (5) responses were received.
3. Interviews of the consultants were conducted in the Link Governmental Services
Center and the BOCC ultimately selects the Consultant to complete the project on
November 22, 2004.
e March 2005 through June 2006:
1. BOCC approves consultant contract for Phases I and II of the project and appoints
the task force to oversee the completion of the project,
2. On June 27, 2006 the BOCC receives the draft report for the TDR Feasibility
Study for Phases I and II and affirms the recommendation of the TDR Task Force
that the process of designing a TDR program should go forward.
e September 2006 through December 2007:
1. On September 19, 2006 the BOCC approves the Phase III contract with the
Consultant,
2. The budget for Phase III is approved and the Consultant is given formal notice to
proceed on December 19, 2006,
3. On December 11, 2007 the BOCC relieved the Consultant of deadlines noted in
the original contract. A this point the consultant was informed that work would be
re- initiated after the completion of the Comprehensive Plan.
BOCC INPUT: The BOCC considered the TDR program, and various administrative design
options, at a May 24, 2007 and a August 27, 2007 BOCC work session.
Under this Program, the County would designate "Growth Areas" and "Conservation Areas" in
its land use planning jurisdiction. Conservation Area property owners could sell a conservation
easement on their property to a Growth Area property owner. Growth Area property owners
could then transfer the easement to the County in exchange for permission to develop those
areas more intensely, within specific guidelines to minimize impacts of the increased
development.
Proposed Growth Areas include properties outside of municipal jurisdictions that are:
1. In Economic Development Districts as zoned by Orange County, or
2. In "urban transition areas" in either the Hillsborough Strategic Plan or the Efland- Mebane
Small Area Plan, or
3. In "rural community nodes" in the Orange County Land Use Element. Excluded from
Growth Areas are properties that are either already protected as open space or historic
or environmentally - sensitive.
Proposed Conservation Areas include properties outside of municipal jurisdictions that are not
in a designated Growth Area. Within the Conservation Areas, properties eligible to participate
are not already protected by a conservation easement and not already developed to their
maximum density by zoning. Conservation Area properties must also be at least one of the
following:
3
1. Adjacent to an already protected property, or
2. Fifty (50) acres or larger, or
3. Historic or environmentally - sensitive.
Other program design guidelines include:
• Change the program name from Transfer of Development Rights (TDR) to Strategic
Growth and Rural Conservation (SGRC),
• A strictly voluntary program,
• Municipalities would not participate initially in the program, and
• The County will not "bank" transferred development rights.
Staff will make recommendations regarding the implementation of the SGRC program at a later
time that may include the following issues and decision points:
1. Revisions to the Comprehensive Plan text to incorporate the SGRC Plan,
2. Revisions to the Land Use Element map,
3. Small Area Plans for the Rural Community Nodes,
4. Recognition of Development Agreements as an part of the SGRC review and approval
process, and
5. Amendments to the Zoning Ordinance text to adopt Conditional Zoning.
FINANCIAL IMPACT: Out of the original Phase III project budget of $49,546.81, there is a
remaining balance of $21,344.65 owed to the Consultant. This amount is a carry over from the
2006 -07 Orange County budget.
RECOMMENDATION: The Manager recommends that the Board:
1. Accept the Phase III Final Report of the Strategic Growth and Rural Conservation study
by the Consultant,
2. Close out the contract by paying the $21,344.65 remaining balance, and
3. Authorize the Planning staff to create an implementation program outline to be
considered in the 2010 -2011 BOCC priorities process.
Orange County
Transfer of Development Rights
Feasibility Study
Phase III Report
PREPARED BY:
THE LOUIS BERGER GROUP, INC. 8.7.2009
UNC CHARLOTTE URBAN INSTITUTE
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
PREFACE
This technical report describes in detail the decision - making processes that led to the
creation of the Strategic Growth and Resource Conservation Plan in Orange County.
The history, research and considerations taken into account in key decisions for the
program are discussed. It is primarily intended for members of the Board of County
Commissioners and the Joint Advisory Board, although members of the public seeking
in -depth information may also benefit from a review of the information.
The primary publication intended for public distribution is the Strategic Growth and
Resource Conservation Plan, which is a four -page document included here as
Appendix A and also available at: www.co.orange.nc.us /planning /TDR files /index.html.
That document describes in a straightforward, concise manner the elements of the
Strategic Growth and Resource Conservation program in the form of a plan that will be
presented for adoption by the Board of County Commissioners.
DISCLAIMER
The adoption of the SGRC Plan and Report signifies the validity of its contents, not an
action to implement the SGRC Program. Additional implementation actions, particularly
the amendment and creation of ordinances, would be required and offer an
additional opportunity for further modification and discussion prior to implementation.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
EXECUTIVE SUMMARY
The Orange County Board of Commissioners;
Steering Committee members; and staff in the
County, The Louis Berger Group, Inc., and
University of North Carolina Charlotte Urban
Institute have produced a program that will aid
the County in conserving natural resources,
directing growth to desirable locations, and
helping to fairly compensate land owners that
would like to both conserve and realize financial
benefits from their property. Based on the success
of the Lands Legacy Program, which
compensates landowners directly for
conservation, the Strategic Growth and Resource
Conservation Program (SGRC) would allow
property owners and private developers to work
together to conserve additional lands with
oversight from the County. The Steering
Committee that guided this project helped in
making key decisions, such as Orange County
government will not operate as a "banker" of
conservation credits but instead serve in a
management role. Furthermore, participation in
the SGRC will be voluntary.
Rural Preservation. Promote the
voluntary placer -rent of
conservation easements of i
farms, water quality protection
lands, historic properties and
wildlife habitat to preserve them
in their farmed or undeveloped
state.
Strategic Urbanization. Provide
incentives for increased
development in the Economic
Development zoning districts,
and the Efland- Mebane and
Hillsborough transition areas and
Rural Community Nodes as
identified in the Comprehensive
Plan and on the Comprehensive
Land Use Plan map.
Monitor Program Performance.
Identify and track appropriate,
cost - effective measures of the
degree to which the program is
meeting the rural preservation
and strategic urbanization goals.
The SGRC Program was created through three significant phases of work that extended
over a period from 2006 to 2009 (page 3 of the Phase IIII report). The first two phases,
collectively known as the Feasibility Study, addressed the legal, administrative, design,
and economic feasibility of such a program in general. Phase III, Implementation,
developed a list of specific action alternatives involving both the Program operation
and Administrative actions necessary to support SGRC (page 36). Appendix A outlines
the SGRC Plan in a brochure -style format that can be easily reproduced and distributed
to interested parties.
The SGRC Program relies on the trading of Conservation Points (CPS) that get
transferred from an eligible Resource Conservation Area to an eligible Strategic Growth
Area. The developer of the latter could then exchange the purchased CPS for density,
impervious cover, or other allowances granted through the SGRC Program. The SGRC
Steering Committee, operating from analyses conducted of Orange County properties,
determined a number of eligibility criteria for Conservation Area properties to ensure fair
operation of the SGRC including minimum acreage size (50 acres) and historic,
agricultural, or natural resource merit (see Chapter 2.2 for detailed Program Design
options). The County's current transition zones and economic development districts are
designated as Strategic Growth areas.
The next steps after this Plan is adopted would be to implement Comprehensive Plan
and Zoning Ordinance Amendments, and consider staffing needs to manage and
market the SGRC Program. This report contains additional Administration guidelines
(Chapter 2.3) and monitoring strategies (Chapter 3).
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
TABLE OF CONTENTS PAGE
Chapter 1. Overview: Strategic Growth and Resource Conservation Program 2
1. l SGRC Program Feasibility Study
1.2 SGRC Program Implementation Plan
Chapter 2. SGRC Program and Administration 5
2.1 SGRC Goals & Objectives
2.2 SGRC Program Design
2.3 SGRC Administrative Design
Chapter 3. SGRC Performance: Measuring Success 25
3.1 The Reason for Measuring Performance
3.2 Initial Benchmarks
3.3 Monitoring Performance
FIGURES AND TABLES PAGE
Table 1 -1.
Contracted Service Process
3
Table 1 -2.
Program Development Process
3
Table 2 -1.
Land Value Statistics for Near -Urban vs. Rural Areas
10
Table 2 -2.
Cross - Correlation of Key Variables for Recently Developed Parcels
10
Table 2 -3.
Unit Thresholds for Residential Subdivision Review Type
19
Table 2 -4.
Residential Planning Flow Process
20
Table 2 -5.
Commercial Planning Flow Process
23
Figure 2 -1.
Recently Developed Parcels, by Land Value per Acre
9
Figure 2 -2.
Average Land Value per Acre for Recent Development, by Density
11
Figure 2 -3.
Density of Recent Development
12
Figure 2 -4.
Land Value vs. Parcel Size for Recent Development
13
Figure 2 -5.
Strategic Growth and Resource Conservation Program Map
16
Figure 3 -1.
SGRC Scorecard
26
APPENDICES
A. Draft SGRC Plan
B. Sample Development Agreements for SGRC Program
C. Ordinance Modifications for SGRC Program Implementation
D. Program and Administrative Design Options Pro's and Con's
E. Sample Conservation Easement Template for SGRC
F. Sample Reporting Figures (MS -Excel native format)
G. Summary of Public Engagement Process
H. SGRC Education and Marketing Plan (to be developed)
I. Program Manager Case Studies (Implementation Phase)
GLOSSARY OF TERMS
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
Chapter I Strategic Growth and Conservation Program
This chapter
1.1 SGRC Program Feasibility Study discusses in brief the
This report is the result of the third phase of Orange County's planning process
development of a Strategic Growth and Resource Conservation used to determine
(SGRC) Program. The first two phases, collectively known as the the feasibility of
creating and
Feasibility Study, were conducted during 2005 and 2006- The operating a
overall purpose of the Feasibility Study was to address and development credit
provide recommendations on several issues critical to the program in Orange
feasibility of an SGRC program in Orange County. Additional County.
detail on the Feasibility Study can be found in the Phase II Report
(www.co.orange.nc.us/planning/TDR files /Phase II Report Final 10.13.06 .r)df).
The major issues addressed in the Feasibility Study were the legal, administrative, design,
and economic feasibility of a Transfer of Development Rights (TDR) program in Orange
County and North Carolina in general. Background legal and economic research was
conducted, as well as interviews with key stakeholders that included developers,
elected officials from municipalities, and Orange County staff. A Task Force of
stakeholders was appointed to assist the consultants in evaluating the results of the
research. Case studies of similar programs in other locations throughout the country
were conducted. Generalized maps of potential strategic growth and rural
conservation areas were created, and various options for how to calculate credits were
offered. In addition, the Feasibility Study evaluated the effects, positive and negative,
that an SGRC program may have on existing programs and services in Orange County.
One important conclusion of the Feasibility Study was that a traditional TDR program
would require additional authority from the state of North Carolina. Consequently, the
charge to Staff and Consultants in the third phase of the process was to develop
recommendations for a Strategic Growth and Resource Conservation Program that
achieves similar objectives as a traditional TDR program, but relies on existing County
authority.
A summary of the SGRC Program development during the first two phases, in terms of
contracting and in terms of results produced, are detailed in the following two tables.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009
Table 1 -1. Contracted Service Process
10.2006
No
Date
Action -
June 23, 2004
BOCC authorizes issuance of RFQ to professional planning consultants to
10.2006
develop a countywide TDR Program.
July 6, 2004
RFQ posted on APA national and North Carolina Chapter websites.
Aug. 13, 2004
Deadline for RFQ responses. Five were received.
Sept. 8 -13, 2004
Interviews at the Governmental Service Center.
Oct. 13, 2004
Finalists (Freilich, Leitner & Carlisle /James Nicholas /J, J, & G and Louis
Yes
Berger /UNC Charlotte Urban Institute) are selected and additional questions
are sent.
Nov. 22, 2004
BOCC selects Louis Berger /UNC Charlotte Urban Institute
Mar. 2005
BOCC approves consultant contract for Phases I and II.
June 23, 2005
BOCC appoints TDR Task Force.
June 27, 2006
BOCC receives the consultant's TDR Feasibility Study draft report and affirms
Yes
the recommendation of the TDR Task Force that the process of designing a
10.2006
TDR program should go forward.
Sept. 19, 2006
BOCC approves contract with Louis Berger /UNC Charlotte Urban Institute to
conduct Phase III of the TDR /SGRC program development.
Nov. 2, 2006
BOCC approves budget for Phase III of consultant contract.
Dec. 19, 2006
Orange County staff give consultant formal notice to proceed with Phase III.
Table 1 -2. Program Development Process
A. Property Values and Market Trend Analysis
10.2006
No
B. Draft Feasibility Decision Flowchart
10.2006
No
C. Public Engagement Process Plan
10.2006
No
D. Legal Assessment
10.2006
Yes
E. Case Studies of Other TDR /SGRC Programs
10.2006
Yes
F. ey, Stakeholder Interviews
10.2006
Yes
Phase 11 - Feasibility Study Concept and Plan
A. Assess Sending Area Potential
10.2006
Yes
B. Assess Receiving Area Potential
10.2006
Yes
C. Determine Overall Economic Viability
10.2006
Yes
D. Assess Issues, Constraints and Opportunities
10.2006
Yes
(legal, administrative, and financial)
E. Finalize Feasibility Decision Flowchart
10.2006
Yes
F. Identify Impacts of SGRC on Existing County Programs
10.2006
Yes
A. Program Design Options
7.2009
Yes
B. Administrative Design Options
7.2009
Yes
C. Implementation Plan
8.2009
Yes
D. Ordinance Development Guidelines
7.2009
Yes
E. Plan Adoption
8.2009
Yes
F. Implementation
Post -2009
Yes
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.20091
1.2 SGRC Program Implementation Plan
Each of the four major categories of the Feasibility Study identified decisions that
needed to be made in order to craft an SGRC program, decisions that were
constrained by legal or other obstacles and the remaining questions and issues that
needed to be addressed. Following are the SGRC Program decisions made during the
Feasibility Study (the program would be unfeasible otherwise):
• Orange County participation only. Municipalities may participate later, once the
program is better established.
• Modify existing zoning ordinances and subdivision regulations in alignment with the
land use authority rights already granted to Orange County. No state enabling
legislation will be sought.
• Minimal government involvement in the SGRC transaction. The County will act as a
facilitator, but not a broker, between buyers and sellers of SGRC credits.
• SGRC credits cannot "float" - that is, the conservation easement protecting the
rural conservation area must occur at the same time as the credits are used in the
strategic growth area.
• The mechanism for carrying out SGRC actions is carried out through conditional
zoning provisions and private developer agreements, the latter being authorized in
N.C. General Statute § l 53A -349.
Following are the SGRC Program decisions left to be determined as part of the
Implementation Plan:
• Criteria and maps delineating rural conservation and strategic growth areas.
• Formulas to determine how credits are calculated in rural conservation and
strategic growth areas.
These decisions, questions and issues then formed the basis for this third phase of the
SGRC program development. The purpose of the third phase was to conduct
additional research and discussion to address the issues and questions raised during the
first two phases, then to formulate a complete implementation plan for an SGRC
Program for the Board of County Commissioners to consider for adoption. In addition,
this third phase addresses how the performance of the SGRC program should be
measured and tracked. This report details the implementation planning process that
has been underway since December, 2006.
An appendix to this report is the actual Implementation Plan that will be considered for
adoption. Additional appendices include proposed changes to the Orange County
ordinances that would be necessary to implement the SGRC program, as well as a
proposed conservation easement and other forms necessary for staff to administer and
track the progress of the SGRC program.
ORANGE COUNTY, NORTH CAROLINA '
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
Chapter 2. SGRC Program and Administration
This chapter
2.1 SGRC Goals & Objectives describes the core
Early in the planning process, Staff and Consultants sought goals and basic
characteristics of
direction from the Board of County Commissioners as to the the SGRC Program,
primary goals for the program, which would then be used to breaking out its
guide recommendations for program and administrative design. characteristics into
The resulting three goals were identified: Program Design and
Administrative
Goal # 1 Design.
Rural Preservation. Promote the voluntary placement of
conservation easements on farms, water quality protection lands, historic
properties and wildlife habitat to preserve them in their farmed or undeveloped
state.
Goal # 2
Strategic Urbanization. Provide incentives for increased development in the
Economic Development zoning districts, and the Efland- Mebane and
Hillsborough transition areas and Rural Community Nodes as identified in the
Comprehensive Plan and on the Comprehensive Land Use Plan map.
Goal # 3
Monitor Program Performance. Identify and track appropriate, cost - effective
measures of the degree to which the program is meeting the rural preservation
and strategic urbanization goals.
The Commissioners also indicated an interest in promoting both residential and non-
residential development in the urbanizing areas of the County. The creation of a
mechanism that would allow nutrient trading or the trade of impervious surface area
values between properties to help lower stream and watershed impacts may also be a
future modification to the general SGRC process. Finally, they signaled a willingness to
allow the program to take several years to mature and establish a track record of SGRC
Program transactions.
Consultants and Staff identified these two additional objectives for success of the SGRC
Program:
Simplicity and Ease of Understanding. The program should be nuanced to
accomplish the Goals while being easy to explain and straightforward for
participants. More complex features can be added to the program as it matures.
Legal Framework. The program should rest upon the existing legal framework of
planning and zoning authority vested in the County by the State of North Carolina,
especially the broader powers granted to county governments in 1973 and
embodied in N.C. General Statute § 153A, especially parts 349.1 to 349.13 that
outline a procedure for creating agreements with private developers. No new
authority is to be requested from the General Assembly.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
2.2 SGRC Program Design
2.2.1 Planning Process for SGRC Program Design
Overview. Planning Department Staff and Consultants worked closely together to
conduct analyses and develop initial program design recommendations. A Working
Group of representatives from selected County Advisory Boards - dubbed the Joint
Advisory Board - provided review and comment on the initial recommendations. The
public was then invited to give feedback on the draft SGRC Program Design at an
informal SGRC Open House. A final draft of the SGRC Program Design
recommendations was then forwarded to the Board of County Commissioners for
public hearing and eventual consideration of adoption. (See Section 2.2.3 for final
draft SGRC Program Design recommendations.)
Analysis of Previous Findings and Additional Assessment. Planning Department staff and
Consultants reviewed the findings from the Feasibility Study and the SGRC Goals set by
the Board of Commissioners. These key program design issues were identified for initial
analysis and deliberation:
• Designation of Growth and Conservation Areas: whether to use mapped areas or a
parcel- specific criteria -based designation
• Eligibility criteria: whether to use any eligibility criteria, and if so, what criteria to use
• Partial participation: whether Conservation Area properties must participate by
placing all undeveloped property under easement or may choose to protect only
part of the property
• Reversal of participation: whether to allow Conservation Area owners to "buy
back" the conservation easement on their property
• Economic Factors: a closer look at the economic factors that influence
Conservation Area sales of conservation easements and Growth Area development
project proposals
• Conservation Points Allocation: fixed formula or merit based? Per acre or per
housing unit? Exclude existing structures or overlook them to provide an extra
incentive?
• Growth Area Development Intensity Bonus & Bonus Limits: fixed formula or merit -
based? One -to -one ratio? Density limits fixed or criteria - based?
• Allowing Commercial uses of Points: define a formula for commercial development
intensity bonuses?
• Incentives for Participation: points allocation /translation bonuses? Downzoning?
Streamlined approval process?
• Growth Area design guidelines: what amenities /buffer or other design requirements
should be specified?
For a listing of all issues and the rationales for and against each available option, please
see Appendix D. Note that administrative design issues and options are included in the
list in Appendix D and are discussed in section 2.3 of this report.
The issues associated with designation of areas and eligibility criteria were tackled first.
Consultants conducted analysis using GIS (Geographic Information Systems) to
evaluate the number and extent of properties that would qualify for SGRC Program
participation under different area designation and eligibility scenarios.
ORANGE COUNTY, NORTH CAROLINA L.
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009
Recommendations were developed for presentation to an SGRC Working Group (see
below for composition of the Working Group.)
Planning Department staff and Consultants then examined the second set of program
design issues, associated primarily with awarding of Conservation Points and Growth
Area Development Intensity Bonuses. Consultants conducted analyses using GIS
(Geographic Information Systems) to evaluate the distribution of Conservation Points
under different points awarding formulas, and the resulting possible impacts on
average sales price of Conservation Points (CPS). Consultants also conducted
interviews and focus group sessions with developers to gain insight into the monetary
value of Development Intensity Bonuses. (See section 2.2.2, Economic Analysis.)
Together with Staff and the County Attorney, recommendations were developed for
each remaining program design issue with an eye towards:
• simplicity and ease of understanding,
• fitting within the legal framework outlined by the County Attorney,
• reflecting County policy objectives for preservation and growth, and
• balancing the monetary value of CPS and Development Intensity Bonuses so they
were in reasonable enough proximity to each other to allow a market to function.
The recommendations on the second set of design issues were then presented to the
SGRC Working Group at its second meeting for their feedback.
Working Group. An SGRC Working Group was formed to review and comment on Staff
and Consultants' initial program and administrative design recommendations. The
Working Group consisted of representatives of several existing Advisory Boards, plus key
staff from the Planning and Environment and Resource Conservation departments, the
County Attorney, and the Consultants. These Advisory Boards were invited to nominate
one or two members to participate in the Working Group:
• Planning Board
• Economic Development Commission
• Agricultural Preservation Board
• Historic Preservation Board
■ Commission for the Environment
■ Affordable Housing Advisory Board
The first Working Group meeting was held on April 23, 2007. Staff and Consultants
presented initial recommendations on designation of Growth and Conservation Areas
and Eligibility Criteria.
The Working Group expressed strong interest in the next set of issues scheduled for
discussion, those related to Conservation Points awarding and Growth Area
Development Intensity Bonuses and Design Guidelines. (See section 2.2.3 for those
issues and recommendations.)
A second SGRC Working Group meeting was held on October 1, 2007. Staff and
Consultants presented initial recommendations on methodologies for awarding of
Conservation Points and Growth Area Development Intensity Bonuses.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7,2009)
Submittal to Orange County Planning Staff. The final SGRC recommendations as
presented in this report were submitted to the Orange County Planning Staff in March,
2008.
2.2.2 Economic Analysis
A successful SGRC Program needs to "balance" potential sending area credits and
receiving area credits in order to ensure that the amount that a developer is willing to
pay for a receiving area credit is comparable to the amount that a sending area land
owner would be willing to accept for his development rights. Moreover, the density
bonus achieved by using SGRC credits must make economic sense to developers, or
they simply won't participate in the program. This section will address directly the
assumption made previously that a density bonus in Orange County will be beneficial
to a developer and will quantify the willingness of developers to pay for additional units
of density. This analysis forms the basis of a later section focusing on achieving the
balance of credits.
Characteristics of Recent Residential Development in Orange County. In determining
how much developers may be willing to pay for density bonuses under the SGRC
Program, we first needed to characterize recent development trends in terms of
location, density and value. Understanding trends in recent development will assist in
predicting how the housing market in Orange County will affect SGRC transactions by
focusing on only the most relevant, recent transactions. "Recent development" is
defined as parcels within Orange County (excluding municipalities and municipal extra-
territorial jurisdiction (ETJ)) that have been built upon from January, 2004 through
February, 2007. This analysis focuses on residential development because data are not
readily available for the few commercial transactions that exist.
Location. Of the 916 parcels recently developed in unincorporated Orange County,
about half are located in "near- urban" areas. Near -urban areas were defined as those
within two miles of a municipal or ETJ boundary, as illustrated in Figure 2 -1. The fact that
the recently developed parcels are split between the two areas, even though the near -
urban area is less than one third the size of the rural area, simply confirms that
development in the proximity of urban areas is more attractive to developers and
home buyers. Existing demand for housing in the near -urban areas is critical to the
success of the SGRC Program. The distinction between near -urban and rural areas is
important because the housing markets in near -urban and rural areas are quite
different - the type and density of housing built, the price of land, and even the
demographics of those who live in the different areas. In addition, using near -urban
and rural areas in analyzing housing trends is a helpful proxy for receiving and sending
areas, respectively.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
Figure 2 -1. Recently Developed Parcels, by Land Value per Acre
,
t AA,
,
! L
f+ .%96
ORANGE COUNTY, NORTH CAROLINA
•.. + i
• �� P i
I � !
i
,
�� ■ t 1 t" ' � i
/ 1
Legend
-_ -� Orange County Boundary
Near Urban Boundary
Municipalities
Land Value per Acre (�)
- 1,988 - 12,141
12,142- 34,049
34,050 - 75.950
— 75,951 - 135,504
- 135.505 - 556.368
Ilk
i
off
t
• i 4L
I
j
■
'
4P
1
—
sow
j
i!
is •
1� ,-
T
■
'4
'�► .�
-
.�
*
0 1.25
2.5
5 Miles '—
ORANGE COUNTY, NORTH CAROLINA
•.. + i
• �� P i
I � !
i
,
�� ■ t 1 t" ' � i
/ 1
Legend
-_ -� Orange County Boundary
Near Urban Boundary
Municipalities
Land Value per Acre (�)
- 1,988 - 12,141
12,142- 34,049
34,050 - 75.950
— 75,951 - 135,504
- 135.505 - 556.368
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final 18.7.20091
Value. The median land value per acre of recently developed parcels near -urban
areas is double that of recently developed rural parcels, $32,000 per acre compared to
$14,000 per acre (Table 2 -1). This finding confirms that there are different housing
markets in the two areas, and that the SGRC Program will need to take into account
the inherent differences in land value when 'setting formulas to convert developable
acres from the rural areas to the near -urban areas.
Table 2 -1. Land Value Statistics for Near -Urban vs. Rural Areas
Area Type
Near -Urban
MIN
0
Land
MAX
556,368
Value ._
Average
38,063
Median
24,576
Std dev
47,943
Size
1.6
Developed
0
556,368
43,081
28,305
50,785
1.5
Recent development
0
556,368
90,141
32,298
130,425
1.5
Undeveloped
0
446,359
22,067
13,241
32,688
2.4
Rural
0
175,267
16,658
11,958
16,127
3.4
Developed
0
175,267
18,567
14,426
16,130
2.8
Recent development
0
127,313
24,743
14,257
27,577
4.1
Undeveloped
0
155,945
12,024
7,517
15,154
6.1
The reason for using land value per acre, rather than simple land value or total value
per acre, is to assess the parcels on a level playing field, without taking into account the
size of the parcel, or the size or value of the house itself.
Moreover, data in Table 2 -2 show that the range and standard deviation of land values
in the near -urban areas is nearly four times that of the rural areas, indicating strong
fluctuations in value in the near -urban areas. Large differences in value are significant
when considering that the SGRC Program must take into account differences in land
value to correctly set formulas that will result in appropriate economic incentives.
To further investigate how much distance from a municipality influences land value, we
ran a cross - correlation between distance, parcel size, land value and total (land +
building) value per acre (Table 2 -2). A value close to one in the table indicates that the
two variables are strongly influence each other, while a value of less than 0.5 indicates
that the two variables are largely independent. A negative value indicates that when
one variable increases, the other decreases. For example, land value per acre is
correlated with total value per acre very strongly, with a value of 0.95, indicating that
when land value is high, total value is very likely to be high. The correlation values
between distance from municipal boundary and land value per acre and parcel size
do not show a strong correlation. This indicates that the variables are largely
independent, and land value is based on additional factors.
Table 2 -2. Cross - Correlation of
Distance from
municipal boundary
1.0
Parcel Size
0.26
1.0
Land Value per acre
-0.38
-0.21
1.0
Total Value per acre
-0.32
-0.17
0.95
1.0
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
Density. Land value per acre is higher for housing developed at higher density, for both
near -urban and rural areas (Figure 2 -2). This finding is an indication that developing at
higher densities may yield a higher return to developers, which is crucial to the success
of a SGRC Program that proposes to increase the density of development in near -urban
areas. If the returns to developing at lower densities were greater than developing at
higher densities, using SGRC as a method to develop at higher densities would not
make sense. Likewise, if housing is currently being built at relatively low densities,
regardless of higher density allowed by zoning, that would indicate that the market for
higher density housing in Orange County is not strong, and a SGRC Program may need
additional incentives to be successful.
Figure 2 -2. Average Land Value per Acre for Recent Development, by Density
500,000
450,000
400,000
350,000
w
a 300,000
m
CL
250,000
A
v
200,000
J
150,000
100,000
50,000
Near Urban
Rural
20 10 8 6 4 3 2 1 1.5 ac 2 ac 3 ac 4 ac 5 ac 6 ac 7 ac 8 ac 9 ac 10 ac > 10 ac
units /ac units /ac units/ac units/ac units/ac units /ac units /ac unit/ac
Recently developed parcels in the near -urban geographies were developed at an
average of 1.5 acres per unit, while those in rural areas were developed at an average
of 4.1 acres per unit. The histogram in Figure 2 -3 illustrates the distribution of both near -
urban and rural development density. Most parcels in the near -urban areas were
developed between one and three acres per unit, likely because current zoning does
not permit development at greater than one unit per acre in most cases. Both near -
urban and rural development experience another peak at one unit per 10 acres or
more, likely because current zoning regulations are less stringent for such large parcels.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
Figure 2 -3. Density of Recent Development
N
m
V
A
a
`o
m
E
Z
Z
00
■ Near Urban
■ Rural
80
80
40
20
n
20 10 8 6 4 3 2 1 1.5 ac 2 ac 3 ac 4 ac 5 ac 6 ac 7 ac 8 ac 9 ac 10 ac > 10 ac
units /ac units /ac units /ac units /ac units /ac units /ac units/ac unit/ac
Density (parcel size)
One issue raised during this analysis was whether large -lot (10 acres or greater)
development can be more beneficial to developers than higher density development,
such as would be produced with the SGRC Program. There is some indication, as
discussed above, that there is a tendency to develop large -lot subdivisions in Orange
County, as evidenced by the relatively high number of 10+ acre parcels developed
recently. This type of development may, however, be the unintended result of a
different approval process for such subdivisions, rather than an indication of profitability
at different densities.
Two findings indicate that it still may be more profitable for a developer to develop at
higher densities. Land value per acre declines as parcel size increases, as discussed
above and illustrated in Figure 2 -4. Figure 2 -4 also illustrates that there are few
properties with a land value per acre higher than expected ( "outliers "). In the figure
below, each dot represents one of the 916 recently developed parcels. Most of the
parcels are clustered near the axes, indicating either a large parcel size with low land
value per acre, or a small parcel size with high land value per acre. Just a few parcels
are farther from the axes, indicating a higher- than - expected land value for parcels that
size. Both of these findings seem to support a more profitable development by
increasing density on any particular parcel.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.20091
Figure 2 -4. Land Value vs. Parcel Size for Recent Development
120
100
80
w
60
a
40
20
0
Land Value per Acre vs. Parcel Size
Recent Development
r
■• • Near Urban
■ Rural
y = 275277) -"
- Trendline (Rural) RZ = 0.7212
■
-Trendline (Near Urban)
y = 293102x'1'1574
RZ = 0.791
■
•
•
N • •
0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000
Land Value per acre
Developer Interest in TDR in Orange County. While the data are helpful in indicating
trends in recent development, the economic analysis would not be complete without a
discussion with developers currently working in Orange County. The conversation with
the developers was intended to gauge their response to the proposed SGRC program,
characterize the current housing market and viability of higher density development,
and assess their willingness to pay for additional density credits.
In general, the developers were supportive of the idea of a SGRC -type program, and
said that it made sense to them. Especially in the 1 -85 corridor (Mebane, Hillsborough
and east of Hillsborough), they do see a market for higher density housing. Their biggest
concern was the additional cost, in terms of time and money, involved in the SGRC
transaction. Working directly with sending area landowners would involve an
additional negotiation for the developers, which they indicated was a primary source
of delays and uncertainty. The developers suggested several alternative scenarios that
could reduce the transactional costs to them, and thus incentivize participation in the
SGRC Program. First, the county could take a more active role in serving as a broker to
match developers and landowners, perhaps acquiring a binding agreement to sell
development rights within a certain price range from landowners prior to negotiation
with developers. Second, there could be third -party brokers, such as land trusts,
nonprofit conservation organizations, or companies specializing in wetlands mitigation,
that the developers could hire to conduct the transaction with the sending area
landowner. A third option would be to pay the county a fee -in -lieu of conservation
credits, which the county could in turn use to fund its own land preservation program.
This alternative would have the advantage of allowing the county to select parcels
most worthy of preservation. An additional complication with this alternative would be
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
the issue of equitably setting the fee, since it will no longer be determined by the fair
market.
An additional concern was whether the SGRC Program could succeed in protecting
the right land in the sending area. A substantial amount of land in Orange County has
soil that is inappropriate for septic systems, making the land essentially undevelopable
anyway. The developers expressed concern that the development rights for this
marginal land would be offered at a lower price than land more worthy of permanent
protection. In addition, the land most in danger of development (i.e. closer to the
municipalities) also costs more. The developers urged the creation of credit formulas
that incentivize the preservation of land that truly deserves it, rather than marginal
(cheap) land far from urban areas.
In terms of the developers' willingness to pay for an additional unit of density in a
receiving area, they generally agreed that they would be willing to pay their per unit
cost for raw land. For example, a particular parcel costs $15,000 per acre, and current
zoning would allow it to be built at one unit per acre (one unit = $15,000). With SGRC
conservation credits, they could build four units on that acre, meaning they would be
willing to pay up to $15,000 for each of the three TDR credits they would need to buy
(land = $15,000, three credits = $45,000; four units = $60,000). The resulting per unit cost
to acquire the land and development rights would be the same as the no -SGRC (or
"base ") option. One developer acknowledged that there might need to be a discount
factor in this equation, to account for the fact that he might have to build a smaller
house (and thus have less profit) due to the smaller lot sizes. The developers
acknowledged that this formula may not be feasible for a development with several
different types of homes.
In summary, the data analysis and discussions with developers indicated that a SGRC
Program is economically viable, and that there would likely be interest from developers
in participating provided that appropriate formulas for credit allocation and reduced
transactional costs are incorporated into the SGRC program and administrative design.
2.2.3 Program Design Recommendations
Designated Growth Areas. Growth Areas are comprised of the following (except as
noted below):
i. Economic Development Zoning Districts;
ii. Parcels in Rural Community Nodes or land within the 10 -year and 20 -year
Transition Areas in the Efland- Mebane area as depicted in the Land Use
Element of the Comprehensive Plan;
iii. Land within the County jurisdiction joint planning areas or Hillsborough Transition
areas as depicted in the proposed Hillsborough Strategic Plan.
Properties are excluded from Growth Areas and are designated as Conservation Areas
if any of these criteria are met:
i. Enrolled in the state's use value tax - assessment program;
ii. Listed on the National Historic Register, or is otherwise designated as a historic
site or as containing a historic structure;
iii. Contains environmentally sensitive features or areas:
1. Water Supply Watershed designated Critical Area;
2. Within 150 feet of the main body or perennial stream of a river;
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
3. A wetland;
4. A Natural Heritage Inventory site;
5. A Prime Rated Forest Habitat area; or,
6. A Wildlife Corridor area.
(See map in Figure 2 -5 below illustrating the application of these area designation
criteria.)
Growth Area Eligibility. All Growth Area properties that are not subject to a
conservation easement, deed restriction or other enforceable agreement prohibiting
development are eligible to participate in the SGRC Program.
Designated Conservation Areas. All land within County land regulatory jurisdiction that
is not designated as Growth Area is designated as Conservation Area.
Conservation Area Eligibility. Not all properties within the designated Conservation
Areas are eligible to participate in the SGRC Program. Eligibility criteria are:
a. Must have unused development potential based on current land development
regulations and absence of any deed restrictions or conservation easements.
b. Must meet at least one of the following additional criteria:
L Is 50 acres or larger
ii. Is adjacent to a publicly -owned park designated primarily for natural habitat
preservation or passive recreation, or to a privately -owned property under a
permanent conservation easement;
iii. Is enrolled in the state's use value tax assessment program;
iv. Contains a National Historic Register site or structure.
v. Is in a Water Supply Watershed designated Critical Area;
vi. Contains land that is within 150 feet of the main body or perennial stream of
a river;
vii. Contains a wetland;
viii. Contains a Natural Heritage Inventory site;
ix. Contains a Prime Rated Forest Habitat area; or,
x. Contains a Wildlife Corridor area;
c. Owners of properties smaller than 50 acres may agree to bundle their acreage
to meet that criteria, provided that all properties in the bundle meet the criteria
for unused development potential.
(See map in Figure 2 -5 illustrating the application of these area designation and
property eligibility criteria.)
ORANGE COUNTY. NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final 18.7.20091
Figure 2 -5. Strategic Growth and Resource Conservation Program Map
Map Legend
Growth Areas
Conservation Areas Eligible Properties
Conservation Areas Ineligible Properties
Watershed Critical Areas (CA Eligible)
Already Protected Properties (CA Ineligible)
Lakes, Rivers
Municipalities
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
Conservation Points. Proposed conservation easements on eligible Conservation Area
properties are assigned Conservation Points (CPS) as follows:
a. One CP per acre is awarded to all participating CA properties;
b. Additional CPS are awarded based on pre- easement tax - assessed land
VnII It-
Tax- assessed land value per acre Additional CPs per acre
$10,000 .....
/
111 ......
$20,000-24,999.99
111 29,999.99
$30,000 a • higher
c. Up to one additional credit per acre is awarded based on actual acreage
meeting any one or more of eligibility criteria b) iii -x above, or containing
steep slopes of 25% or higher.
d. The total CPS assigned to an eligible CA property are the sum of CPS
awarded under steps a, b, and c above.
Development Intensity Bonus. Eligible Growth Area property owners may apply for a
development intensity bonus to be awarded upon conveyance to the County of a
privately - purchased conservation easement on an eligible Conservation Area property.
a. For Residential Development:
i. CPS are translated to Growth Area development intensity bonuses at a
3:1 ratio, meaning for every three CPS assigned to the conservation
easement, 1 additional housing unit may be built in the Growth Area
property.
ii. Alternatively, owners of Growth Area properties 25 acres or larger may
enter into a Development Agreement with the County, which will
negotiate a development intensity bonus taking CPS into account along
with other factors, such as provision of affordable housing or LEED-
certified construction.
iii. The final gross density of projects using CPS may not exceed 15 housing
units per acre.
b. For Non - Residential or Mixed -use Development:
i. Owners of Growth Area properties 25 acres or larger may enter into a
Development Agreement with the County, which will negotiate a
development intensity bonus taking CPS into account along with other
performance factors agreed to by the property owner.
ii. Growth Area properties of less than 25 acres are not eligible at this time
for non - residential or mixed -use density bonuses through the program, but
may be added to the program at a later date.
Design Requirements. Design requirements will be incorporated into eventual SGRC
ordinance provisions based on the County's design guidelines developed for the
Efland- Mebane area. These will apply to all Growth Area properties participating in the
SGRC Program and will serve to ensure that the increased development intensity does
not negatively impact nearby land values or quality of life.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
2.3 SGRC Administrative Design
In addition to the considerations of how the SGRC Program will be operated from the
perspective of the users (participants) of the program, the project team also
considered how SGRC would operate internally. The following two sections illustrate a
process workflow for both residential and commercial properties, highlighting areas that
would be applicable only to proposed projects using SGRC conservation credits. First, it
is useful to understand how residential and commercial planning review processes
operate in Orange County now, described briefly in the following section.
2.3.1 Existing Planning Process
After the initial contact with the Orange County Planning & Zoning Department staff
( "staff "), the developer prepares a description of the location of the site, which staff
then reviews to determine if the site is within a managed area (e.g., critical watershed),
the suitability of the soils for in- ground septic treatment, and if the proposed use "fits"
the existing zoning code. This is a followed by a Preapplication Meeting, which
describes the site in more detail, notably determining the "yield" or number of
residential units (or commercial square feet of floor area) that the proposed
development site could contain. Different requirements will be placed on the
developer depending if the proposed residential subdivision is a minor, major, Special
Use, or Planned Development application, which in turn depends on the number of
units being proposed and if the site is located in an urban or rural area (refer to Table 2-
3).
Table 2 -3. Unit Thresholds for Residential Subdivision Review
Minor 1 5 N/A N/A
Major 6 20 21 79
Special Use Permit 21 40 21 79
Rezoning to Planned Unit 41 80
Development (PUD)
Generally, if the subsequent Application Fee and Application are furnished, then the
staff must review the application and approve or disapprove with comments. Once
approved, the developer then prepares a conceptual site plan, noting important
features of and near the site, but not necessarily having all lot lines surveyed. This
concept plan is then reviewed at a Neighborhood Meeting, a drop -in style meeting of
nearby residents that are notified of the proposal and meeting opportunity by staff. The
Planning Board then reviews the (modified, if needed) concept plan, and can
approve, disapprove, or disapprove unless corrective actions are taken by the
developer. Once the concept plan has gained approval, the developer then must
prepare a preliminary plat (surveyed), present the proposal again at a Planning Board
meeting, at a quarterly public hearing (if the proposal has 20 or more residential units),
and then obtain approval from the Orange County Board of Commissioners. The Final
Plat is subsequently submitted, recorded, and fees submitted by the developer.
ORANGE COUNTY, NORTH CAROLINA SW
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
If the subdivision is classified as a "Minor" subdivision type in Table 2 -3, then it may be
eligible for an optional two -step review process: concept plan - final plat submittals
followed by administrative review only. A "Major Rural" subdivision review may follow a
pre - application conference / concept plan review process followed by a Planning
Board review. A preliminary plat would then be submitted for Planning Board and Board
of County Commissioners review; if approved, the developer would then submit a final
plat for recordation.
Commercial developments typically undergo a slightly less lengthy process, notably
omitting the Neighborhood Meeting requirements, but are still required to be presented
at a quarterly public hearing for official comments. Commercial sites using the
Economic Development District (EDD) designation would also be required to adhere to
the EDD Design Manual specifications, which may be somewhat more costly and time
consuming to meet.
This entire process is likely to take 12 to 15 months or longer, depending on the
preparedness of the developer and his familiarity with the planning process; the
complexity / controversial nature of the proposed development action; and how the
timing of the proposal effort aligns with the required meeting schedule (particularly the
quarterly public hearing meeting). This planning process, while extensive, helps to
ensure that adequate public review of proposals are conducted at a level that Orange
County feels is commensurate with the potential impact of the proposed development
action.
2.3.2 SGRC Planning Process and Agency / Participant Responsibilities
The SGRC Program would influence the development review process at several levels.
The developer and staff would want to know, for example, how SGRC credits would
influence the site yield or if bonus credits could be accommodated. Perhaps most
significantly is the negotiation process between the developer and Resource
Conservation Area participant to reach an agreed -upon price for the conservation
credits.
The flow diagrams on the following pages (Tables 2 -4 and 2 -5) illustrate the planning
process in a step -by -step fashion for both residential and commercial (EDD)
development types highlighting actions led by the developer (red text) and Orange
County staff (green text). Additionally, a pre- review process involving a hypothetical
Resource Conservation Area participant is demonstrated (blue text); and, at the end,
the annual performance report described more fully in Chapter 3 is summarized (purple
text). Any task in the flow diagram that is required uniquely as a part of the SGRC
Program is in bold text.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
Table 2 -4. Residential Planning Flow Process
-. Comments
Taken
A. Orange County Promotes SGRC Program After Approving Work through homebuilders and
Ordinance Revisions reactor associations; distribute
brochure; create on -line, self -
guided presentation on SGRC
program
B. SGRC Ordinance(s) Goes into Effect
Note that the Conditional Use
a. Create new field in Parcel GIS Database to Tag SGRC
Zoning / Permit process would also
Actions
need to go into effect prior to
b. Internal Review with O.C. Staff to Rehearse SGRC Process
initiating SGRC.
C. Landowner (Resource Conservation Area) Expresses Interest to
Orange County
a. Name /Contact Information
b. Parcel(s) Identification and Acreage /Number of SGRC
Credits
c. Known Resources Identified Through a Checklist
d. Information on SGRC Program Provided by OC Staff
D. Validation of Participation Requirements in SGRC Program to
Baseline Report (Figure i) is
Landowner (Resource Conservation Area)
prepared and logged into SGRC
a. Validate Parcel(s) in Resource Conservation Area
database.
b. Validate Resource Information Supplied by Landowner
Participant is logged into the
c. Provide Additional Information to Landowner on SGRC
Resource Conservation Area
Program
Participant database (Figure 2).
1. Developer Call / Visit to Planning & Zoning Department
Initial communication with
developer
2. Locate and Define the Site
verify that the parcel meets
a. Water /Sewer Provision
location requirements and the
b. Inside Strategic Growth Area
intended use fits with land use /
zonin ordinance table
3. Concept Review
Attended by developer, Planning
g. Discuss developer expectations for density and use
Staff
i. Base zoning
ii. Potential with density bonuses (e.g. affordable
housing, LEED)
h. Review the Development Process and Design
Standards with and without SGRC
1. Discuss potential issues that will need to be
addressed in the design
j. Notify Interested Resource Conservation Area
A pplicants
4. Concept Plan Development
In the concept plan for projects
k. Sketch Plan
proposing to use SGRC, it would
I. Location of Notable Features
be wise to have a qualitative
m. Negotiate with Resource Conservation Area
notation identifying any resources,
utilities, roadways, or school
Pa rfici ants
P ()
capacities that would be
negatively affected should the
SGRC o Lion be pursued.
5. Pre - Application Conference
Attended by developer, Planning
n. Explain the review and approval process
Staff
o. Identify remaining problems or issues that will need to
be addressed prior to submittal of an application
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
Table 2 -4. Residential Planning Flow Process (Continued)
ORANGE COUNTY, NORTH CAROLINA
-. Taken
Comments
6.
Initiate the Application Submittal
p. Pay Application Fee(s)
q. Internal Staff Review
i. Approve
ii. Disapprove with Comments
7.
Concept Plan Development
In the concept plan for projects
r. On -Site Visit with O.C. Staff
proposing to use SGRC, it would be
s. Sketch Plan (conventional or flexible)
wise to have a qualitative notation
t. Lot Layouts (not necessarily surveyed)
identifying any resources, utilities,
u. Location of Notable Features
roadways, or school capacities
that would negatively affected
v. Negotiate with Resource Conservation Area
9
G
should the SGRC option be
Participant(s)
pursued.
8.
Neighborhood Informational Meeting
During this meeting, there is an
w. Mailings (Address List from Developers) Sent to
opportunity to explain both the
People within 500' Buffer Around Project
CUP and SGRC process / program
x. Drop -in Style Meeting Format
and how they benefit Orange
County.
9.
Concept Plan Review
Note that no conditional use
y. O.C. Staff Only
requirement will be LESS restrictive
z. Same Review Group as Preliminary Plan Review
than any overlay district
aa. Offer Comments to Developer
requirement already in place.
A CUP essentially requires a
bb. Note CUP Conditions for Approval
rezoning to a Conditional Use
District.
10.
Planning Board Review of Concept Plan
The CUP process would allow
cc. Staff/ Developer Presentations
public boards to attach additional
dd. Public Comments
conditions on approval, especially
ee. Review Concept Plan
design and mitigation measures to
i. Approve
offset negative impacts due to
ii. Disapprove (One -Year Moratorium)
denser land uses.
iii. Disapprove with Corrective Actions
11.
Preliminary Plat Development
The SGRC property appraisal
ff. Roads / Driveway Permit
would be presented at this time,
gg. Erosion Control Review
should the Resource Conservation
hh. Environmental Health Review
Area landowner and developer
ii. Fire Suppression Plan
mutually agree that one is
necessary. At this time, the
jj• Solid Waste Review
developer could pursue a
kk. Lot Surveys Completed
Development Agreement with the
II. Binding Option Signed with R.C.A. Landowner
County as an alternative to the
mm. Easement Language and R.C.A. Strategic
traditional approval process.
Growth Area Shown on Ma
12.
Preliminary Plat Review
nn. O.C. Staff Only
oo. Conduct R.C.A. Review (if initial review older than
two years)
pp. Letter to Developer for Comment (if significant
comments)
qq. Review Signed Binding Option Agreement
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
Table 2 -4. Residential Planning Flow Process (Continued)
Comments
-. Taken
13. Public Hearing (20+ Units)
rr. Formal Public Hearing / CUP Hearing (Required)
ss. Comments
14. Planning Board
Map should note location of
tt. Present Final Easement Language
conservation easement.
uu. Present Map of Resource Conservation Area
Property
vv. Preliminary Plat Review
i. Approve
ii. Disapprove
iii. Approve with Conditions (including SGRC
Transaction)
15. County Commission Meeting
Map should note location of
ww. Present Final Easement Language
conservation easement.
xx. Present Map of Resource Conservation Area
Commission would
Property
approve /disapprove of a
Preliminary Plat Review
yy• ry
Development Agreement at this
i. Approve
stage, if applicable.
ii. Disapprove
iii. Approve w /Conditions (including SGRC
Transaction)
16. Final Plan Submittal
zz. Permits Completed
Notes:
(1) Utilize the log spreadsheets
aaa. Signing Sheets Submitted to County Engineer
provided to track information on
each SGRC transaction and
bbb. SGRC Transaction Completed
inquiry (Figures 2 and 3)
L Payment to R.C.A. Landowner
(2) Important to keep copies of all
ii. Deed Modification to Include Easement
records (e.g., easement, dates
iii. Modify GIS Parcel Layer to Tag SGRC
of meetings) in a dedicated file
Action
for each project to provide an
iv. Record Actions in SGRC Transaction
administrative record.
database (Figure 3)
(3) Development Agreement would
be recorded at this stage if
p licable
Benchmarking and Progress Reporting (Annual)
Notes:
a) Search for Parcel IDs with Recorded SGRC
(1) Inquiries are noted as
Participation
benchmarks in the first two years
of the SGRC program since it is
I) Conservation Parcels
unlikely that many SGRC
ii Strategic Growth Parcels
g
transactions will occur initially.
iii) Develop Mapping of SGRC Active Parcels
(2) Use one -page report format
Overlaid with SG and RC Areas, Town Boundaries
provided for annual reporting
b) Research
(or as requested by Planning
I) Inquiries Regarding SGRC (first two years ONLY)
Board/ BOCC) (Figure 4)
ii) Number of Acres Conserved
(3) May be difficult to get price per
iii) Price Range and Average of Credits
credit information since
Iv) Number of SGRC Transactions
transaction is between third
V) Number of Units Constructed with SGRC Credits
parties.
vi) Number of Units Allowed in SG Parcels Without
SGRC
c) Report
i Presentation to Board of County Commissioners
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
ii) Recommended Adjustments to Program
iii) Comments from Participants
Table 2 -5. Commercial Planning Flow Process
ORANGE COUNTY, NORTH CAROLINA
-. Taken
Comments
A.
Orange County Promotes SGRC Program After Approving
Work through homebuilders and
Ordinance Revisions
realtor associations; distribute
brochure; create on -line, self - guided
presentation on SGRC program
B.
SGRC Ordinance(s) Goes into Effect
Note that the Conditional Use Zoning
a. Create new field in Parcel GIS Database to Tag SGRC
/ Permit process would also need to
Actions
go into effect prior to initiating SGRC.
b. Internal Review with O.C. Staff to Rehearse SGRC
Process
C.
Landowner (Resource Conservation Area) Expresses Interest
to Orange County
c. Name /Contact Information
d. Parcel(s) Identification and Acreage /Number of SGRC
Credits
e. Known Resources Identified Through a Checklist
f. Information on SGRC Program Provided by OC Staff
D.
Validation of Participation Requirements in SGRC Program to
Baseline Report (Figure 1) is prepared
Landowner (Resource Conservation Area)
and logged into SGRC database.
g. Validate Parcel(s) in Resource Conservation Area
Participant is logged into the
h. Validate Resource Information Supplied by landowner
Resource Conservation Area
1. Provide Additional Information to Landowner on SGRC
Participant database (Figure 2).
Program
1.
Developer Call / Visit to Planning & Zoning
Initial communication with developer
Department
2.
Locate and Define the Site
Verify that the parcel meets location
a. Water /Sewer Provision
requirements and the intended use
b. Inside Strategic Growth Area
fits with land use / zoning ordinance
table
3.
Concept Review
Attended by developer, Planning
i) Discuss developer expectations for density and
Staff
use Base zoning
ii) Potential with density bonuses (e.g., LEED)
c. Review the Development Process and Design
Standards with and without SGRC
d. Discuss potential issues that will need to be
addressed in the design
e. Notify Interested Resource Conservation Area
Applicants
4.
Concept Plan Development
In the concept plan for projects
f. Sketch Plan
proposing to use SGRC, it would be
g. Location of Notable Features
wise to have a qualitative notation
h. Negotiate with Resource Conservation Area
identifying any resources, utilities,
Participant(s)
roadways, or school capacities that
would be negatively affected should
the SGRC option be pursued.
5.
Pre - Application Conference
Attended by developer, Planning
i. Explain the review and approval process
Staff
j. Identify remaining problems or issues that will need
to be addressed prior to submittal of an
application
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.20091
Table 2 -5. Commercial Planning Flow Process (Continued)
ORANGE COUNTY, NORTH CAROLINA
-. Taken
Comments
4. Preliminary Plan Development
the SGRC property assessment would
k. Detailed plan developed
be presented at this time, should the
I. Binding Option Signed with R.C.A. Landowner
Resource Conservation Area
m. Easement Language and R.C.A. Strategic Growth
landowner and developer mutually
Area Shown on Map
agree that one is necessary. At this
time, the developer could pursue a
Development Agreement with the
County as an alternative to the
traditional approval process.
5. Initiate the Application Submittal
A new EDD review cycle begins on
n. Pay Application Fee(s)
the first and third Monday of each
o. Staff review application to ensure it is complete
month. If an application is not
complete by the fifth day following
the cycle deadline, the submittal will
need to be resubmitted in a future
review cycle.
6. Preliminary Staff Review /Distribution to Review
A full list of the agencies who may be
Agencies
consulted to review the submittal is
p. Planning Staff conduct internal review
included in the Economic
q. Agencies conduct review and submit comments
Development District Design Manual
to the Planning Department
r. Staff compiles the comments and prepares a
Preliminary Report. The report will be distributed to
the developer and the review agencies prior to
the Development Review Meeting.
7. Development Review Meeting
Attended by developer, Planning
s. Agency comments summarized, conflicting
Staff and review agencies
requirements discussed
t. Conduct R.C.A. Review (if initial review older than
two years)
u. Review Signed Binding Option Agreement
v. Staff will decide to approve or deny application
w. Approval will include all conditions and
requirements necessary to comply with the zoning
ordinance and the EDD Design Manual.
x. Applicant notified in writing of decision to approve
or deny, along with any conditions of approval
8. County Commission Joint Quarterly Public Hearing
Map should note location of
y. Present Final Easement Language
conservation easement.
z. Present Map of Resource Conservation Area
Properly
Following this stage and after
aa. Development Plan Review
Planning Board review and
i. Approve
recommendation Board of
Commissioners would
ii. Disapprove
approve /disapprove of a
iii. Approve w /Conditions (including SGRC
Development Agreement at this
Transaction )
stage, if ap licable.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
Chapter 3. SGRC Performance: Measuring Success
Even though transfer credits have to be applied as deed restrictions (or, sometimes,
covenants) and most transfer credit transactions can only occur as part of at least an
administrative review process, it is possible that this statement can be true. Over time, as
the SGRC program matures and the Orange County staff and elected / appointed
officials that helped to create the program change, the potential for losing track of the
SGRC program is great. Initially, the project team anticipates very few transactions,
which may also create a tendency to stop recording information about the credit
transactions that do occur. Measuring the performance of the SGRC Program allows
Orange County staff, officials, and citizens to determine if the Program is living up to
their expectations, how to change the Program, and further promote it to reach
potential participants.
3.2 Initial Benchmarks
Books have been written; companies started and thrived; many lecture courses have
been taught, and magazines and software programs launched to address
performance measurement. Entering into a detailed discussion is not relevant, nor
should the task of measuring performance be difficult or onerous for Orange County.
Measuring performance simply requires four things to be successful:
• Data, in a format and quantity that is suitable to the task;
• Relationships, between the performance measurement(s) and the goals / objectives
of the program;
• Analysts, that are capable and have the time to prepare and report information to
decision - makers; and
• Reaction, from decision - makers to modify the program that is being measured.
A SGRC scorecard has been created that describes a number of performance
benchmarks that Orange County Planning and Zoning staff will complete as transfer
credits are created and applied. Since the project team anticipates that, like almost all
similar programs, the SGRC Program will begin slowly, the first two years will include a
benchmark to measure how many contacts are made with property owners and
developers inquiring about the Program. The SGRC scorecard is shown in Figure 3 -1.
ORANGE COUNTY, NORTH CAROLINA
This chapter
3.1 The Reason for Measuring Performance
describes how
Orange County will
We really don't know how much transfer credits are selling for,
measure the
or how many have been created or applied in strategic
ongoing
growth areas.
performance and
outputs of the SGRC
During one of the peer conservation program interviews, this w as
Program, and then
one of the responses we received. Not surprisingly, the South
describes ways of
Carolina community that operated this particular development
increasing or
credit program did not advertise it or view it as a success. Other
restraining the
communities did not aggressively report the performance of their
amount of SGRC
programs.
activity.
Even though transfer credits have to be applied as deed restrictions (or, sometimes,
covenants) and most transfer credit transactions can only occur as part of at least an
administrative review process, it is possible that this statement can be true. Over time, as
the SGRC program matures and the Orange County staff and elected / appointed
officials that helped to create the program change, the potential for losing track of the
SGRC program is great. Initially, the project team anticipates very few transactions,
which may also create a tendency to stop recording information about the credit
transactions that do occur. Measuring the performance of the SGRC Program allows
Orange County staff, officials, and citizens to determine if the Program is living up to
their expectations, how to change the Program, and further promote it to reach
potential participants.
3.2 Initial Benchmarks
Books have been written; companies started and thrived; many lecture courses have
been taught, and magazines and software programs launched to address
performance measurement. Entering into a detailed discussion is not relevant, nor
should the task of measuring performance be difficult or onerous for Orange County.
Measuring performance simply requires four things to be successful:
• Data, in a format and quantity that is suitable to the task;
• Relationships, between the performance measurement(s) and the goals / objectives
of the program;
• Analysts, that are capable and have the time to prepare and report information to
decision - makers; and
• Reaction, from decision - makers to modify the program that is being measured.
A SGRC scorecard has been created that describes a number of performance
benchmarks that Orange County Planning and Zoning staff will complete as transfer
credits are created and applied. Since the project team anticipates that, like almost all
similar programs, the SGRC Program will begin slowly, the first two years will include a
benchmark to measure how many contacts are made with property owners and
developers inquiring about the Program. The SGRC scorecard is shown in Figure 3 -1.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
ure 3 -1. SGRC Scorecard
Orange County SGRC Scorecard
Date Submitted:
Submitted To:
As shown in the preceding figure, the following performance factors are included in the
SGRC scorecard:
• Inquiries About SGRC Program (Year 1 and 2 ONLY)
• Number of SGRC Acres Conserved
• Average Price per Conservation Credit
• Low Price for Conservation Credit
• High Price for Conservation Credit
• Units Constructed Using SGRC Credits
• SGRC Credits Extinguished
• Existing Development Allowed
• SGRC Development Allowed
• Variance (Existing v. SGRC Development)
The first six measures are oriented towards measuring effects on Strategic Growth areas;
the remaining measures are dedicated to realizing the effects of the SGRC Program on
Resource Conservation areas. The area for comments at the bottom of the scorecard is
reserved for notes on performance and issues that may have arisen during the course
of the year regarding comments received from participants and staff. The first measure,
ORANGE COUNTY, NORTH CAROLINA •
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
Inquiries about the SGRC Program, may include meetings with developers; baseline
reports prepared for Resource Conservation Area participants; or other contacts with
potential participants. After the second performance report is issued to the Planning
Board and Board of County Commissioners, this measure will be dropped, since the
Program should have "legs" by then and recording inquiries can be time - consuming.
3.3 Monitoring Performance
No performance measurement system works without some time dedicated to its
maintenance and a process for implementing change to improve performance (and
the performance monitoring system). The following sections describe how the
performance of the SGRC Program works, and suggestions for making changes to the
Program, if determined by the Board of County Commissioners and Planning Board.
3.3.1 Performance Reporting
The only times that the Orange County Planning staff should make a record in the SGRC
scorecard are when (A) an inquiry or contact is made about the SGRC Program (first
two years only); (B) when a transfer credit is purchased or sold; or (C) when a transfer
credit is actually applied during the (conditional use) development review / approval
process.
The general steps for monitoring performance are outlined below.
Step 1. Collect Data. Orange County staff (Planning Department) should maintain
records on inquiries (first two years only); when a transfer credit is purchased / sold; and,
at the end of the development review process, note the number of credits extinguished
and amount of development that occurred with the credits as opposed to the
development that would have occurred without the SGRC Program in place.
Step 2. Present to Planning Board. At the beginning of the new fiscal year (July), Orange
County staff will submit the SGRC scorecard to the Planning Board for their review and
comment. The Planning Board and staff will discussion options for modifying the existing
SGRC Program based on the indications provided by the scorecard.
Step 3. Present to Board of County Commissioners and Take Public Comments. The
Board of County Commissioners should have one meeting to discuss the results of the
SGRC Program for the previous year and receive public comments, and a second
meeting (September) to present recommended changes to make the SGRC Program
better serve the community.
Step 4. Making Changes. Orange County Planning staff, county manager, land records,
legal counsel, and other service divisions should have one coordination meeting to
discuss changes. The Orange County Planning staff will follow -up to ensure that these
changes are carried out by the end of the calendar year (December). Education
materials and presentations may have to be modified; any changes to the code of
ordinances may occur at a later time, but within the first three months of the new
calendar year (January - March). This would require another pass through the Board
review / adoption process, and review at a Quarterly Public Hearing.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.20091
3.3.2 Ways to Encourage Additional SGRC Activity
During the performance monitoring process, it is likely that one or more changes to the
SGRC Program will be suggested, particularly to increase or, less likely, to decrease the
amount of participation in the SGRC Program. The following are suggestions on how to
modify the Program to encourage more participation from the development
community and landowners (NOTE: The following are not in priority order).
Option Number 1: Streamline the Planning Review Process. Developer representatives
on the initial Task Force and during external interviews expressed interest in shortening
the development review process that Orange County uses in order to gain interest in
the SGRC Program. In particular, the Quarterly Public Hearing process can add three or
more months onto the review. The project team noted, for example, that Pitkin County
utilizes a "One -Step Special Review" process to review proposed private developments
that make use of development credit transactions. The trade -off is that there is less time
for the public and other stakeholders to review a proposed project, perhaps especially
meaningful in the early stages of the SGRC Program.
Option Number 2: Engage Municipalities in Orange County in SGRC. Any significant
expansion of the SGRC Program is quite likely to require the involvement of Hillsborough,
Chapel Hill, Mebane, or Carrboro. Although the rewards to the towns are smaller,
participating in SGRC still translates into a surrounding area that retains a rural
character.
Option Number 3: Create a SGRC Approval Procedure that is Conducted
Administratively. While the Conditional Use Permit process that is indicated by the
Implementation Plan has benefits, it nevertheless requires a quasi - judicial hearing on its
actions. Creating a mechanism that can approve SGRC transactions by Orange
County staff - under well- managed guidelines - may reduce the risk or perception of
risk that a private developer will invest in a less - established planning process to gain the
desired result. Like streamlining, this option would tend to reduce the amount of public
scrutiny to SGRC- enhanced private development proposals, and is better considered
after the program has become established over a period of time. An additional
drawback is the necessity of ensuring legal sufficiency in any SGRC -type program, a
circumstance that will need to analyzed carefully prior to modifying the program to a
more administratively -owned process.
3.3.3 Ways of Modulating the Rate of SGRC Program Transactions
Although the project team considers the situation highly unlikely, there are conceivable
situations where the public, elected officials, or staff feel that slowing down or adding
more conditions to the SGRC Program is desirable. If the County is suddenly deluged
with more applications from willing senders or receivers than the public review process
can manage or than the current policy boards are comfortable with, there are ways of
slowing down SGRC activity. The following, not in priority order, are measures that, while
enhancing the benefits of the SGRC Program, would likely reduce participation by
Strategic Growth or Resource Conservation participants, or both groups.
Option Number 1: Make Affordable Housing and Environmentally Sound Design
Practices Required. Currently, a Strategic Growth Participant (e.g., private
development interest) can optionally choose to bolster the density in an eligible
proposed development by demonstrating a commitment to either or both affordable
ORANGE COUNTY. NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
housing and environmentally sensitive building or site design practices or certifications,
such as the LEED standard promulgated by the US Green Building Council. By requiring
such participation as a precondition, the number of interested development parties
would be reduced, although the benefits of inclusionary housing practices and energy -
efficient structures would accrue to all of the remaining SGRC transactions.
Option Number 2: Modify Strategic Growth and Resource Conservation Area Extent or
Conditions. By reducing the amount of land eligible to participate in the SGRC
program, there will be fewer participants. For example, increasing minimum parcel size
to something greater than 50 acres would sharply reduce the amount of Resource
Conservation participation, as would limiting the Resource Conservation areas to the
three critical watersheds in Orange County or productive farming operations. The effect
would be to have a more focused conservation program with fewer participants, and
the potential for fewer SGRC transactions.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
APPENDICES
A. Draft SGRC Plan
B. Sample Development Agreements for SGRC Program
C. Ordinance Modifications for SGRC Program Implementation
D. Program and Administrative Design Options Pro's and Con's
E. Sample Conservation Easement Template for SGRC
F. Sample Reporting Figures (MS -Excel native format)
G. Summary of Public Engagement Process
H. SGRC Education and Marketing Plan
I. TDR Program Manager Case Studies (Implementation Phase)
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
A. Draft SGRC Plan
(Please see the following pages, which are intended to print on 1 1 " x 17" sheets.)
ORANGE COUNTY, NORTH CAROLINA
.OGRAM ADMINISTRATION
How Does the Program Work for Growth
Area Landowners /Developers?
inning and
Step 1. Come into the Orange County Planning
to complete
and Zoning Department to get familiar with the
nservation
SGRC planning process and requirements, including
rtion of your
streamlining the development review process and
n size in an
getting "bonus credit" for including affordable housing
d with the
and third -party green building certifications.
;o be eligible,
the property
Step 2. During the development of your conceptual site
I habitat
plan, our staff will work with you to determine how many
ital criteria.
residential units you can place on your property with and
without purchasing Conservation Points (CPs) from a
Conservation Area property owner participating in the
ien someone
SGRC program.
acted us.
;a property
:Ps.
Step 3. If you choose to use CPs from the SGRC
program, we will contact property owners with CPs to
sell. You will then negotiate directly with them on the
is been
price of the CAPs.
will pay
to sign an
Step 4. Once the development project is approved,
nt on that
you must pay the Conservation Area participant prior to
eveloped in
starting construction on any phase of the project.
ajor phases:
Define available options
Determine which options are feasible
aasible options, the County proceeded with phases 3 and 4:
Define how the program would work
• • �• -- Put the clan into effect
STRATEGIC GROWTH &
CONSERVATION PLAN
This Strategic Growth & Resource Conservation
Plan (the SGRC Plan) documents Orange
County's vision for a program that provides
options for preserving some of the County's
rural areas through incentives for strategically -
planned growth in its urbanizing areas. The
Plan presents the SGRC Program goals and
objectives, developed in consultation with the
Board of County Commissioners. The SGRC
Plan also outlines how the program would work
and how it would be administered. Defined
Growth Areas (GAs) and Conservation Areas
(CAs) are illustrated in a map.
The Strategic Growth & Resource Conservation
Plan was the third part of a four -part planning
process undertaken by Orange County beginning
in 2005 (see back page for a description of all four
phases). The planning process was conducted
for the County by a consultant team from Louis
Berger Group, Inc. and UNC Charlotte, with
oversight by County staff, and with input from a
citizen Task Force, a Working Group of County
Advisory and Plannina Boards. and the Dublic.
SGRC PF
gar Urbanizing Transit
lIng are.
►rehens;ve Plan Land
gh strates or Flillsborough Tra s ton
Sic Plan. �d are designated as Conservation
rent program
othenviSe designated
as a historic
)r areas.-
.al Area;
lial stream of a river,,
v, one following ' ".1 1 C(;iIGG
;o RO�H & RE
nAreasinthe SOURGE
Us'a
ire not subject to a conservation
agreement prohibiting development
ible Growth Area pro
ae awarded upon perry owners
the Growth on an eligible Cons to the
wth Area property, ►vation
Y ► e.,
ing Conservation Area
intensity bonus Property
mservation eases at a 3.1 ratio,
i Proper, ment, 1 additional
o larger may
ichhi enter into a
will negotiate a develo ment
ertii;ed her factors such as
f in c building. The
of iver
,nt o an crease in allowable
sit del impervious cover
Y and y other allowances
nay not exceed 15 housing units
'ter into a Developm
e a development ent
intensity bon
Hance factors agreed to us
by the
It this time for non - residential
am, but may be added to the
is will be develo
Ffland -Mebane area. These
GpNSER�gT'
ON CONSERVAT
ION
1)esignated C n
to
t jurisdiction that iusSe�
ion Area (CA). not des
Eligibili
�
eligible to Not all propertiI
i• Must to have Participate in the SG,
unused dev%
i;. Mg ff e°ets and absence o a
a. Is 50 at least one of the
acres or larger,.
b• Is adjacent to
Presenr a publicly -ow
ation or passive
Permanent conservation rec
C. Is enrolled in efvae,S ea.
d• Contains the state's use
e. Is • a National Historic
f ContaiWlterSupply Waterst
a river; and that is within 1
g• Contains a wetland,
�. h Contains a Natural
I• Contains a p Heritage
I' Contains rime Rated ForF
Owners a Wildlife Corridor;
their acrea propert;es smal/erth;
meet the ge t° meet that criten
criteria for unused dev
iv. The prOPWY owner
property is to partici may vohe
the eligibility ate in the,c
tY criteria Wi // apply tc
Conservation eNation Points
i. One CpPe Area Properties pR
A Additional Cacm rs are
based added to a
Tax- assessed pre -ea;
land value per acre
� x,000999.99
$15, 000 _ 14 999.99
19 999.99
$20,000 _ ,
$25,000 _ 24 999.99
$30, 000 —29,999.,9,9
and higher
iii•
Up to one additional CP per acr
°rrriore ofeligibi/ity criteria iii -x
higher.
Watershed Critical
Area
Alreadv p (CA Eligible)
rotected Prnno.�:_
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final 18.7.2009)
B. Sample Development Agreements for SGRC Program
To implement the Strategic Growth and Resource Conservation Plan (SGRC) as part of
the Comprehensive Plan, the County intends to rely on Development Agreements
between the County and the Growth Area landowner and the conditional zoning
provisions of the County's existing land development ordinances. Development
Agreements between county governments and property owners are authorized by NC
General Statute Chapter 153A, Article 18, part 3A (NC G.S. 153A -349.1 et seq), as
enacted in 2005.
Examples of Development Agreements are attached here:
• Orange County, NC and Habitat for Humanity (2009)
• Catawba County, NC and Crescent Resources (2006)
ORANGE COUNTY, NORTH CAROLINA ,
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
C. Ordinance Modifications for SGRC Program Implementation
To implement the Strategic Growth and Resource Conservation Plan (SGRC) as part of
the Comprehensive Plan, the County intends to rely on Development Agreements
between the County and the Growth Area landowner and the conditional zoning
provisions of the County's existing land development ordinances. NC counties are
authorized to use conditional zoning by NC General Statute Chapter 153A, Article 18,
part 2 (NC G.S. 153A -342), as enacted in 2005.
The existing conditional zoning ordinance provisions will need to be modified by the
addition of a few considerations that are particular to the SGRC, specifically:
All SGRC Growth Area applications for conditional zoning must include the
following:
3$ A Conservation Easement Agreement
• placing a permanent conservation easement on all or a portion of a
Conservation Area property, where the Conservation Area property or
portion thereof:
o meets the eligibility requirements of the SGRC program, and
o is in the same river basin as the Growth Area property for which the
conditional zoning application is being made
• between the owner(s) of the SGRC - eligible Conservation Area property
owner and the County
o fully executed and meeting the content requirements for such
o agreements as adopted by the County as part of the SGRC
• A Development Agreement whose execution is contingent upon approval of
the conditional zoning application
• between an SGRC - eligible Growth Area property owner and the
County
• specifying the extension of public utilities and services to be provided
by the County
• specifying the requirements or limitations on any aspect of
development to be provided by the property owner (the developer),
including but not limited to:
■ density or intensity of development,
■ design of buildings and other elements of the proposed development
■ infrastructure or other public facilities
■ impervious cover limitations
■ tree save /planting, other open space
• incorporating by reference a "SGRC Growth Area Concept Plan ", analogous
to those currently required under the County's subdivision ordinance (Sec. 46-
123 of the Code of Ordinances of Orange County)
An option for an SGRC Growth Area application for conditional zoning for
inclusion of third party- certified environmentally sensitive building or site design
practices or standards in the Development Agreement, and the awarding of
commensurate "bonus points" that translate into additional allowable
development density or intensity.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
D. Program and Administrative Design Options Pro's and Con's
The following pages describe a number of options that were considered during the
implementation planning process, and how the project team assessed each option's
strengths and weaknesses. The tables below represent several options that were
considered by the SGRC Task Force during the planning process, but the actual process
recommended by the Task Force and adopted by the Orange County Commissioners
may include different options.
ORANGE COUNTY, NORTH CAROLINA Cm
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (6.22.2009)
Administrative Design Options
Option
For
Against
1. Pre - Certification of CA
■ Creates a "pool" of
■ The baseline
Properties
known, eligible
certification report
Should the Orange County staff
credits available
may have to be done
meet with potential CA property
when developers
all over again if a long
owners and certify their
come in the door
period of time (e.g.,
properties as being eligible for CA
" Reduces pressure on
two years) passes
Points prior to and unassociated
the development
between the original
with any development action
review process by
(pre) certification and
instead of waiting until the SGRC
decoupling the CA
the actual credit
transaction is initiated by a
eligibility from the
transaction occurs
development action?
rest of the
■ May create a false
transaction process
expectation of
readiness on the part
of the CA property
owners
2. Property Valuation
■ Offers one way of
■ Adds additional
Should a third -party property
helping to ensure
complexity and
valuation be done to determine
some equity of
expense to the SGRC
an objective value of the
credit market value
process for both
Conservation Area property and
Sending and SGA
hence the number of credits that
interests
the (conserved) property is worth,
instead of allowing individual
negotiations between
Conservation Area and Growth
Area landowner / developer to
set the SGRC credit rice?
3. Incentives Through Process
■ Initially, this was
" Omitting any part of
Streamlining
identified by
the review process
Should the County review process
developers as a way
would raise questions
be shortened - probably through
of raising more
about its validity, and
the deletion of the Neighborhood
interest in
may be perceived as
Informational Meeting - for viable
participating in a
granting development
SGRC projects, instead of the
SGRC scheme
interest favors at the
SGRC project following the
■ Streamlining
expense of residents
normal review process?
becomes a more
and business owners
viable option IF
■ Should be considered
SGRC SGA design
after the SGRC
standards are part
program has been
of the required
initiated IF transaction
process
activity is low
❑ = Recommended Course of Action
(Note that when both "For" and "Against" columns are shaded, it signifies that a compromise between
the two options has been recommended.)
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
Program Design Options
*Ption
For
Against
1. Designate Conservation
• Easy to communicate
Generalizes some
and Growth Areas by Using
and understand at a
properties that may
Mapped Boundaries
glance which
not be suitable for
properties are
participation with
Should the County have a
Conservation Area,
others that are (not as
map that shows boundaries
Growth Area, or neither
much detail)
for Conservation Areas and
Areas can readily be
® May require imposition
Growth Areas instead of using
aligned with existing
of additional eligibility
criteria to judge eligibility?
zoning or other district
criteria to identify more
designations if
suitable properties
appropriate
■ Easier to determine and
alter to achieve a
"critical mass" Growth
Areas to stimulate
demand
2. Allow Conservation /Growth
■ Gives property owners
■ Creates a
Area Overlap
maximum choice and
"patchwork" of
Should the SGRC Program
flexibility as to whether
conserved and more
allow overlap in Conservation
to conserve, develop at
intensely developed
and Growth Areas instead of
current zoning densities,
properties
having mutually exclusive
or develop at higher
■ Not all areas are suited
Conservation and Growth
densities
to receiving higher
Areas?
density
■ More complicated to
communicate,
understand and
administer
3. Criteria for Designating or
■ a. Use existing plans to guide designation of
Qualifying Growth Areas
Growth Area boundaries
' Builds acceptance for
Requires a more
Should Orange County use
existing zoning or other
the program when it
extensive public input
designations to designate
aligns with already
process for
Growth Areas, and should
established programs
acceptance of higher
criteria (environmentally
density in those areas
sensitive, historic sites, already-
than proposed in prior
conserved places,
programs
■ b. Use criteria to exclude from Growth Area
development zones) to
■ Avoids confusion as to
® Limits amount of land
exclude properties from a
Growth Area?
whether other
available for Growth
restrictions on
Areas
development in these
areas take precedence
over the SGRC program
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
.)ntion For Aqc
4. Adopt Criteria for Selecting or
s Avoids the possibility
a Lose the sense of
Qualifying Conservation Areas
of swamping the
fairness that all are
market with sellers,
included if the entire
Should Orange County use
depressing prices
county isn't eligible
criteria (historic areas / sites, high
" Promotes and
so Reduces the size of the
growth pressure locations, water
recognizes the
market of potential
supply watershed, wetlands, etc.)
varying preservation
easement sellers
to identify eligible Conservation
merit of different
Area properties instead of naming
properties
the entire unincorporated, non-
•Allows prior itization
Growth Area part of the County
of larger parcels or
as an eligible Conservation Area?
parcels with specific
environmental merit
5. Define a Minimum Acreage as
■ Allows fine - tuning of
n More complicated to
• Pre - Condition for Eligibility as
balance between
explain and
• Conservation Area
Conservation Area
understand than a no-
Should Orange County use
and Growth Area
markets
minimum program
a Could create some
minimum acreages of contiguous
Avoids creating
frustration among
property to help determine
fragmented
property owners "in"
eligible Conservation Areas
protected lands and
the Conservation Area
instead of allowing even very
better supports
boundary but not
small properties to participate?
farming & natural
meeting the additional
resource goals
criteria
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final f 8.7.2009)
Option
F• r Again
6. Define Conservation Points
a. Fixed Formula
■ Sense of fairness that all
May not result in the
as a Fixed Ratio to Acreage
vs. Other Options
properties are treated
most important
Should Orange County keep a
the same
environmental
fixed points -to -acre formula
properties being
(e.g., two CPS per acre) to
conserved
calculate Conservation Points
b. Formula that gives more credits to areas with more
instead of applying more
conservation merit soils, habitat, historic sites
■ Creates a market
® Sense of unfairness
complex formulas that respect
the specific conditions of the
advantage for, and thus
that some properties
underlying property?
prioritizes, properties that
receive preferential
have environmental
treatment
merit, or a market
disadvantage for those
that have little existing
development potential
c. Formula that reduces credits allowed due to
existing structures on Conservation Area property
■ Contributes to sense of
■ Misses the opportunity
fairness that properties
to provide a
with existing structures do
participation incentive
not gain an advantage
in the form of extra
over those without
credits
d. Provide allowance (by reducing credits) for future
additional lots on a portion of the property?
■ As in option 6.c. above,
■ May reduce the actual
contributes to sense of
amount of land
fairness, but also, gives
conserved
property owners the
flexibility to choose how
much of their property to
conserve and how much
to develop
7. Define Growth Area Credits
Elements of both were included
recommendations
■ Sense of fairness that all
■ A simple rate won't
as a Fixed Ratio to Acreage
Should Orange County keep a
properties are treated
reflect actual
fixed ratio (x CPS = y additional
the same
conditions on each
housing units) instead of
■ Easier to explain and
Growth Area site that
bonuses based on
understand
could result in more or
development suitability or
less density
performance criteria (e.g., soils,
■May limit all Growth
affordable housing, etc.)?
Areas maximum
appropriate density
increase of the one
area least able to
absorb more density,
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
Option
F• r
Again
8. Allow Commercial
• Provides a means for
i Existing codes' volume
Development Credits*
potential rural residential
restrictions difficult to
Should Orange County relax
density to be converted
calculate and
restrictions on parking, open
to urbanizing area
translate into a density
space, building height,
commercial
bonus
setbacks, or other requirements
development, allowing
- Existing codes provide
to encourage commercial
more density to be
little restriction on
development in Growth Areas
absorbed than just
commercial
instead of only allowing
relying on residential -to-
development intensity
residential -to- residential SGRC
residential transfers
vs. current market
transactions?
• Easier to justify later
demand
once the program is
!i Open space
established and if /when
requirement is most
municipal participation
obvious one to be
occurs
exchanged for
Conservation Points,
but there's no gain to
the County for trading
open space needed
to keep commercial
development livable in
urbanizing areas for
open space needed
to keep rural areas
from being developed
9. Formula for Commercial Use
■ Provides certainty to
Difficult to monetize
of CPs in Growth Areas*
developers that credits
value of lifting
Should Orange County create a
translate to a defined
restrictions, as it may
formula that equates CPs to
degree of change in
change from site to
degree or amount of relaxed /
other restrictions /
site or project to
lifted restrictions instead of
requirements
project
negotiating each commercial
project's development intensity
bonus?
*Note: This applies to Economic Development Districts (EDD) and other, possibly future overlays and zones where
commercial development is allowed.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
10. Install Limits on the Density
Allowable on a Growth Area
Property
Should Orange County provide
density caps on all Growth Area
properties instead of allowing
the market to dictate densities?
11. Apply Additional
Development Restrictions or
Requirements in Growth
Areas
Should Orange County apply
additional site development
guidelines such as design
guidelines or affordable housing
requirements, instead of
adhering to current
development guidelines and
policies for SGRC projects?
ORANGE COUNTY, NORTH CAROLINA
• Keeps intensified
development within
acceptable limits
• Provides certainty to
adjacent /nearby
property owners that
density increase
allowable has a
specified ceiling
• Provides a way to lessen
negative development
impacts that can't be
mitigated or avoided
(whether environmental,
or economic or social
impacts on nearby
properties)
a. Buildina Desian Guidelines
• Ensures that impacts of
intensified development
are mitigated
(transportation
improvements,
aesthetics, buffering)
• Reduces some potential
concerns from local
residents, businesses
about increased density
b. Affordable Housina Rec
May be viewed as an
arbitrary limit, and
provides less flexibility
for developers whose
project's desired
density increase is just
over the limit
Will require re- visiting
periodically to ensure
limits haven't been
eclipsed by market
demand
® A limit would reduce
the amount of
Conservation Points to
be absorbed
■ A limit does not allow
the market to operate
freely if there is a
perceived or real need
for a higher density
n Decreases the value of
credits to developers,
may deter developers
from using credits
uirements
I Elements of both were included in recommendations I
■ Encourages more
affordable housing
options for medium- and
low -wage families
• May incur opposition
from existing, nearby
residents, businesses
about lowering
property values
• May deter
participation from
developers from
monetary and
increased local
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
E. Sample Conservation Easement Template for SGRC
The following sample should be considered a draft presentation of a
conservation easement pending full legal review. This draft was created from
the existing Purchase of Development Rights (PDR) conservation easement used
by Orange County, as well as research into other easement texts.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
STATE OF NORTH CAROLINA
COUNTY OF ORANGE
WARRANTY
DEED OF STRATEGIC GROWTH AND RURAL CONSERVATION PROGRAM (SGRC)
EASEMENT
This Deed of Agricultural Conservation Easement ( "Conservation Easement ") is granted on this
_ day of , 20_, by and
[husband and wife,] having an address of Road, , NC 27_ (referred to as
"Grantors "), to ORANGE COUNTY, NORTH CAROLINA, having an address of Post Office Box 8181,
Hillsborough, NC 27278 (referred to as "Grantee ").
WHEREAS:
PART I. GRANTOR CONDITIONS
(1) Grantors are the sole owners in fee simple, of certain farm Property, more particularly
described in Exhibit A, attached hereto and incorporated herein (the "Property"), which consists of
approximately acres of land, located in Township, Orange County, North Carolina
and identified as that portion of Tract that is not depicted as " " on the plat of property titled
"Property of ," prepared by , Inc., which plat is recorded at
Plat Book � Page _, Orange County Registry (PIN _�. The Property includes buildings
and other improvements, which are shown on Exhibit B, attached hereto and incorporated herein.
(2) Development rights are transferred from sending sites through the issuance of "Sending Area
Credits" pursuant to [cite Orange County code], a process which requires the grant of a conservation
easement restricting development on the Sending Site.
(3) SGRC certificates can be freely sold by the sending site landowner to whom they are issued.
Receiving site landowners who obtain SGRC certificates may use those certificates to obtain density
bonuses or other development incentives pursuant to applicable county regulations.
(4) Pursuant to [cite Orange County code], Grantors submitted an application to obtain a SGRC
Sending Area Certificate on , (hereinafter "SGRC Certificate Application ") for certain
real property (hereinafter "Protected Property") owned by Grantors in fee simple and located in
Township, Orange County in the State of North Carolina, described in a deed to
Grantors, dated and recorded under Orange County Auditor's File No. ,
at Orange County Registry of Deeds. A legal description of the Protected Property is attached hereto as
Exhibit A and incorporated herein by reference as if set forth in full.
(5) The SGRC Certificate Application materials submitted by Grantors are on file with the
County, in the Land Use Records Management System under File No. , and are
incorporated herein by reference as if set forth in full. These application materials detailed existing
conditions on the Protected Property and stated Grantors' intentions concerning future residential
development, if any, to occur on the Protected Property. The Grantors represent that these application
materials reflect existing conditions on the Protected Property as of the date this Easement is executed, as
well as the Grantors' intentions concerning future residential development, if any, to occur on the
Protected Property.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
(6) Pursuant to [cite Orange County code], the County issued a SGRC certificate Letter of Intent
on , a true copy of which is attached hereto as Exhibit C and incorporated herein by
reference as if set forth in full. In the letter, the County agreed to issue Grantors SGRC
Certificates, to be numbered , provided that the Grantors grant a conservation easement
on the Protected Property to Orange County in accordance with the requirements of [cite Orange County
code].
(7) Consistent with the foregoing requirements, and subject to the specific terms of this Easement
contained herein, the Grantors and the County, as Grantee of the Easement, intend and have the common
purpose of retaining the Protected Property for agricultural use by placing restrictions on the use of the
Protected Property, which shall run with the land and bind the Protected Property in perpetuity.
PART II. CONSERVATION VALUES OF EASEMENT PROPERTY
The Property consists or possesses one or more of the following characteristics that make it
suitable for conservation under the Strategic Growth and Resource Conservation Program of Orange
County:
(1) The Property contains productive agricultural land. The majority of the soils on the Property
have been classified as "prime" or "statewide important' soils by the Natural Resources Conservation
Service, United States Department of Agriculture, (also referred to as "NRCS" or "the United States. ") It
is the primary purpose of this Conservation Easement to protect the agricultural soils and agricultural
viability and productivity of the Property.
(2) The Property includes outstanding woodland and/or riparian habitats for a variety of wildlife
species of importance to the Grantors, the people of Orange County and the people of North Carolina.
(3) The Property includes perennial waters, namely , , and
. Said waters flow into reservoirs that provide a portion of the drinking water supply of
the people of Orange County, making the preservation of the property important to the health and welfare
of the general public. Portions of the Property are within the Protected Watershed.
(4) The Property includes structure(s) and/or district(s) listed on the National Register of Historic
Places (NRHP), including ,
and . Said structure(s) and/or district(s) possess historic values that can be
appreciated by the people of Orange County and the people of the State of North Carolina. Furthermore,
the Property contains outstanding scenic qualities that can be enjoyed by the general public, namely the
views along Road (State Road )
The resources, including the agricultural value of soils; wetland and water supply provisions; historic
property value; and wildlife habitat and scenic resources of the Property to be preserved by this
Conservation Easement are collectively referred to as the "conservation values" of the Property.
The specific conservation values of the Property and its current use and state of improvement are
described in a Baseline Report ( "Report") prepared by the Grantee with the cooperation of the Grantors,
and acknowledged by both parties to be accurate as of the date of this Conservation Easement. This
Report, attached as Exhibit E, may be used by the Grantee to document any future changes in the use or
character of the Property in order to ensure the terms and conditions of this Conservation Easement are
fulfilled. The Baseline Report, however, is not intended to preclude the use of other evidence to establish
the present condition of the Property if there is a controversy over its use. The Grantors and Grantee have
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
copies of this Report, and said report will remain on file at the office of the Orange County Planning and
Inspections Department.
The Grantors and Grantee agree that the current use of, and improvements to, the Property are
consistent with the conservation purposes of this Conservation Easement.
The Grantors intend that the conservation values of the Property be preserved and maintained,
and further, Grantors intend to convey to the Grantee the right to preserve and protect the conservation
values of the Property in perpetuity.
The conservation purposes of this Conservation Easement are recognized by, and the grant of this
Conservation Easement will serve, the following clearly delineated governmental conservation policies:
(1) Sections 1238 H and 1238 I of the Food Security Act of 1985, as amended, which authorizes
the Farm and Ranch Lands Protection Program, administered through the United States Department of
Agriculture, Natural Resources Conservation Service, which provides funds for the acquisition of
Conservation Easements or other interests in prime, unique, or other productive soils for the purpose of
limiting conversion to nonagricultural uses of the land;
(2) North Carolina General Statute 139 -2 et seq., which provides that "it is hereby declared
...that the farm, forest and grazing lands of the State of North Carolina are among the basic assets of the
State and the preservation of these lands is necessary to protect and promote the health, safety and general
welfare of its people... it is hereby declared to be the policy of the legislature to provide for the
conservation of the soil and resources of this State;"
(3) North Carolina General Statute 106 -583 et seq., which states that "It is declared to be the
policy of the State of North Carolina to promote the efficient production and utilization of the products of
the soil as essential to the health and welfare of our people and to promote a sound and prosperous
agriculture and rural life as indispensable to the maintenance of maximum prosperity;"
(4) The Uniform North Carolina Conservation and Historic Preservation Agreements Act, North
Carolina General Statute 121 -34 et seq., which provides for the enforceability of restrictions, easements,
covenants or conditions "appropriate for retaining in land or water areas predominantly in their natural,
scenic, or open condition or in agricultural, horticultural, farming or forest use;" and which provides for
tax assessment of lands subject to such agreements "on the basis of the true value of the land and
improvement less any reduction in value caused by the agreement;"
(5) The North Carolina Conservation Tax Credit Program, North Carolina General Statute 105-
130.34 and 105 - 151.12 et seq., which provides for state income tax credits for donations of land that are
useful for fish and wildlife conservation and other similar land conservation purposes;
(6) The establishment of the North Carolina Farmland Preservation Trust Fund established in
1986 (N.C.G.S. 106- 744(c)) to preserve important farmland in North Carolina;
(7) The special use assessment of farm and forestland as set forth in North Carolina General
Statute 105 -277.2 et seq.; and
(8) The zoning of the Property by Orange County as
(9) the Orange County Board of Commissioners' goal (adopted June 21, 1999) to identify and
coordinate the preservation of the County's most significant natural areas; and
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
(10) the Land Use Element of the Orange County Comprehensive Plan (adopted September 2,
1981 as amended) with its goal of conserving and protecting Orange County's significant "Resource
Protection Areas" from adverse development impacts, including natural areas, wildlife corridors and lands
placed by individual property owners into conservation easements; and
(11) the protection of similar Orange County properties designed to protect conservation and
open space values through conservation easements granted to the Grantee and others in the vicinity of the
Grantors' Property; and
(12) Article 17 of the North Carolina General Statutes NCGS 113A -24, entitled Conservation,
Farmland and Open Space Protection and Coordination, otherwise known as the "Million Acre Initiative,"
which provides that the State of North Carolina shall encourage, facilitate, plan, coordinate, and support
appropriate federal, State, local, and private land protection efforts so that an additional one million acres
of farmland, open space and conservation lands in the State are permanently protected by December 31,
2009;
(13) the Clean Water Management Trust Fund, North Carolina General Statute 113 -145.1 et
seq., which recognizes the importance of protecting riparian buffers in conserving clean surface water;
and
(14) the National Historic Preservation Act of 1966 enacted by the National Park Service
(Public Law 89 -665; 80 STAT.915; 16 U.S.C. 470) which states that, "historic properties significant to
the Nation's heritage are being lost or substantially altered, often inadvertently, with increasing
frequency," and that "the preservation of this irreplaceable heritage is in the public interest so that its vital
legacy of cultural, educational, aesthetic, inspirational, economic, and energy benefits will be maintained
and enriched for future generations of Americans." Orange County is a Certified Local Government,
actively participating in the identification, evaluation, and protection of historic properties.
PART III. PURPOSE OF THE CONSERVATION EASEMENT
Grantors and Grantee have the common purpose of protecting the above - described conservation values
and current condition of the Property and preventing conversion of the Property for any use that
diminishes the Conservation Values as stipulated in Part II except as otherwise allowed in this
Agreement. The Grantors agree to create and implement a conservation plan (hereinafter the
"Conservation Plan ") that is developed utilizing the standards and specification of the NRCS field office
technical guide and 7 CFR part 12, and is approved by the local Soil and Water Conservation District;
The Grantee is a body politic existing under Chapter 153A of the North Carolina General
Statutes, and is qualified to hold Conservation Easements under the applicable laws of the State of North
Carolina;
NOW, THEREFORE, for the reasons given and other good and valuable consideration and in
consideration of their mutual covenants, terms, conditions and restrictions contained herein, the Grantors
hereby grant and convey unto the Grantee a Conservation Easement, of the nature and character and to the
extent hereinafter set forth, in respect to the Property as described in Exhibit A;
The terms, conditions and restrictions of the Conservation Easement are as hereinafter set forth:
Grant of Conservation Easement
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009
Grantors hereby voluntarily grant and convey to the Grantee, and the Grantee hereby voluntarily accepts,
a perpetual Conservation Easement in the Property, which easement is an immediately vested interest in
real property the nature and character described herein. Grantors promise that they will not perform, nor
knowingly allow others to perform, any act on or affecting the Property that is inconsistent with the
covenants herein. Grantors authorize the Grantee to enforce these covenants in the manner described
below.
Grantors hereby voluntarily grant and convey to the Grantee all development rights for the Property,
except as otherwise reserved and provided by the terms of this Conservation Easement, that are now or
hereafter inherent in the Property. The parties agree that such development rights are terminated and
extinguished, and may not be used on or transferred to any other property adjacent or otherwise, nor used
for the purpose of calculating permissible lot yield of the Property or any other property.
2. Statement of Purpose
It is the primary purpose of this Agricultural Conservation Easement to enable the Property to
remain in agricultural use by preserving and protecting its agricultural soils and agricultural viability and
productivity. Except as specifically permitted herein, no activity that would impair the actual or potential
agricultural use of the Property shall be permitted. To the extent that the preservation and protection of
the natural, historic, recreational, habitat or scenic values referenced in this Conservation Easement are
consistent with the primary purpose stated above, it is within the purpose of this Conservation Easement
to also protect those values, and no activity that would significantly impair those values shall be
permitted.
[OR]
The purposes of this Conservation Easement are to ensure that the Easement Area will be retained
forever predominantly in its [e.g., natural, scenic, forested, and/or open space] condition; to protect native
plants, animals, or plant communities on the Easement Area, while allowing traditional uses on the
Easement Area that are compatible with and not destructive of the conservation values of the Easement
Area such as [selective timber harvesting, grazing and farming of existing pastures and fields and
hunting]; and to prevent any use of the Easement Area that will impair or interfere with the conservation
values or interests of the Easement Area.
This Conservation Easement shall be perpetual. It is an easement in gross, runs with the land and is
enforceable by Grantee against the Grantors, their representatives, heirs, successors and assigns, lessees,
agents, and licensees.
3. Rights and Responsibilities Retained by Grantors
Subject to the terms and restrictions hereof, the Grantors reserve to and for themselves and their
successors the right to quiet enjoyment of the Property and the right to partake in passive recreation on the
Property. The Grantors reserve to and for themselves and their successors all customary rights and
privileges of ownership, including the rights to sell, lease, and devise the Property, provided such
transaction is subject to the terms of this Conservation Easement and written notice is provided to the
Grantee, together with any rights not specifically prohibited by or limited by this Conservation Easement,
and consistent with this Conservation Easement. Unless otherwise specified below, nothing in this
Conservation Easement shall require the Grantors to take any action to restore the condition of the
Property after any Act of God or other event over which they had no control. Grantors understand that
nothing in this Deed relieves them of any obligation or restriction on the use of the Property imposed by
law.
ORANGE COUNTY, NORTH CAROLINA '
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
4. Right to Farm
Grantors retain the right to farm, or to permit others to farm the Property, consistent with the conservation
values of the Property and in accordance with applicable local, state and federal laws and regulations.
Subject to the terms of this Agricultural Conservation Easement, farming, grazing, horticultural and
animal husbandry operations are permitted only if conducted consistent with Best Management Practices
promulgated by the State of North Carolina and in conformity with a Conservation Plan as required in
Paragraph 9 of this Conservation Easement.
Cattle and other livestock are allowed to exist and to graze on the Property, except within [100] feet of a
stream or other water body —the locations of which are identified and marked on Exhibit B, attached
hereto and incorporated herein. Exhibit B is a copy of a GIS rendering of the Property, the original of
which will be maintained with the Baseline Report at the office of the Orange County Environment and
Resource Conservation Department. [If applicable: Fencing intended to keep cattle and other livestock
out of the 100 -foot stream buffer shall be installed no later than six months after the signing of this
Conservation Easement.]
5. Right to Privacy
Grantors retain the right to privacy and the right to exclude any member of the public from trespassing on
the Property. This Conservation Easement does not create any rights of the public in, on or to the
Property.
6 Right to Use the Property for Customary Rural Enterprises
Grantors retain the right to use the portion of the Property within the "Farmstead Area" (which
contains approximately acres) as identified on Exhibit B. and more particularly described in the
Baseline Report, for otherwise lawful and customary rural enterprises, such as, but not limited to, farm
machinery repair, sawmills, firewood distribution, or educational programs so long as such activities are
consistent with Orange County zoning regulations and permits required by and issued by Orange County
under its laws and ordinances, and are conducted in buildings otherwise permitted under this
Conservation Easement in a manner that is consistent with the conservation purposes of this Conservation
Easement. Conducting customary rural enterprises on any other part of the Property is not permitted
without the advance written permission of the Grantee in each instance. Grantee shall not give such
permission unless Grantee determines that the proposed use will not diminish or impair the conservation
values of the Property.
7. Procedure to Construct Buildings and Other Improvements
The Grantors' rights to construct or reconstruct buildings and other improvements are described in
subparagraphs (a) through (f) below. Any construction or reconstruction not permitted below is
prohibited. Before undertaking any construction or reconstruction that requires advance permission, the
Grantors shall notify the Grantee and obtain written permission. All construction or reconstruction is
subject to Orange County zoning regulations and must be consistent with permits required by and issued
by Orange County under its laws and ordinances for such construction activities.
(a) Fences -- Existing fences may be repaired and replaced, and new fences may be built on
the Property for purposes of reasonable and customary management of livestock and wildlife or to fence
off the perimeter of the Property without any further permission of the Grantee.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
(b) Structures & Improvements — Structures, improvements and other impervious surfaces
located on the Property, including those existing on the date of this Agricultural Conservation Easement,
shall not exceed 2 percent of the total area of the Property.
Existing structures, including existing agricultural structures and existing improvements, may be
repaired, reasonably enlarged and replaced at their current locations within the "Farmstead Area," as
shown on Exhibit B, without further permission from the Grantee. New buildings, barns, sheds and other
structures and improvements to be used primarily for agricultural purposes, including the processing or
sale of farm products predominantly grown or raised on the Property, may be built on the Property
without any further permission of the Grantee provided they are located in the "Farmstead Area."
[if applicable: Existing residential structures and improvements, may be repaired, reasonably
enlarged and replaced at their current locations within the "Existing Residential Envelopes," as shown on
Exhibit B, without further permission from the Grantee. New accessory structures and improvements
may be built on the Property without any further permission of Grantee provided they are located in the
"Existing Residential Envelopes. "]
Structures, improvements and other impervious surfaces located in the "Farmstead Area,"
including those existing on the date of this Agricultural Conservation Easement, shall not exceed
percent of the total area of the "Farmstead Area" or result in exceeding the total impervious surface limit
on the Property of percent. Any new buildings, structures or improvements proposed for locations
outside the "Farmstead Area" may be built only with the advance written permission of the Grantee. The
Grantee shall give such permission within a reasonable time if it determines that the proposed building,
structure or improvement would not diminish or impair the conservation values of the Property or
otherwise be inconsistent with the purposes of this Conservation Easement.
(c) Farm Support Housing -- No more than [one (1)] new single - or multi - family - dwelling
to house farm tenants, employees or others engaged in agricultural production on the Property may be
built on the Property without any further permission of the Grantee, provided the dwelling is less than
1,000 square feet in floor area and is located within that area identified and marked as the "Farmstead
Area" identified on Exhibit B. At the time that construction of such structure is to commence, Grantee
shall be notified so that its records can be updated.
(d) Single- Family Residential Dwellings — residential dwelling exists on the Property
within the Farmstead Area. All appurtenant structures (garage, sheds) shall be contained within the
"Farmstead Area." No new residential dwelling may be built on the Property except for that which is
authorized in Paragraph 7(c) of this Conservation Easement.
(e) Recreational Improvements - Grantors expressly reserve the right to engage in
recreational activities requiring no surface alteration of the land and posing no threat to the conservation
values set herein such as hunting, fishing, hiking, bird watching, etc. and to control access of all persons
for the purpose of hunting and fishing; provided that these activities do not impact the protection and
conservation of any animal habitat or other conservation values of the property. However, under no
circumstances shall golf courses or ranges, airstrips or helicopter pads be constructed, placed or permitted
to remain on the Property.
(f) Utility Services and Septic Systems -- Installation, maintenance, repair, replacement,
removal and relocation of electric, gas, and water facilities, sewer lines and/or other public or private
utilities, including telephone or other communication services over or under the Property for the purpose
of providing electrical, gas, water, sewer, or other utilities to serve improvements permitted herein, and
1
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009
the right to grant easements over and under the Property for such purposes, is permitted. Grantors shall
not permit or grant easements for utility transmission or distribution facilities or systems without the
written consent of the Grantee. Maintenance, repair or improvement of a septic system(s) or other
underground sanitary system that exists on the Property at the time of this Conservation Easement, or the
construction of a septic or other underground sanitary system, for the benefit of any of the improvements
permitted herein, is permitted. All other utilities are prohibited on the Property including, but not limited
to, cellular communication towers or structures.
8. Subdivision
The Property currently consists of one tract / tracts of land. The further subdivision of
the Property, including its partition, is prohibited except as may be required by Orange County to enable
the construction of the farm support dwelling provided for in Paragraph 7(c). In the event a farm support
dwelling is constructed that requires Orange County subdivision approval, the subdivided lot shall, so
long as this Conservation Easement is applicable to the Property, remain in the same ownership as the
parent parcel from which the farm support dwelling lot is divided. This prohibition applies regardless of
how many separately described parcels are contained in the legal description attached as Exhibit A. In
any event, all terms, restrictions, and conditions of this Conservation Easement shall apply to any
subdivided parcel permitted by the terms of this Conservation Easement, including but not limited to the
requirements of agricultural viability of the Property, the restrictions on future development, the
impervious surface limits on the Property as described in Paragraph 7(b) of this Conservation Easement,
the necessity of a Conservation Plan, and the prohibition on activities that are described in this
Conservation Easement. It is understood that notice of this Conservation Easement will be included in
any instrument recorded that subdivides, partitions or otherwise divides parcels.
9. Conservation Practices
As required by Section 1238 I of the Food Security Act of 1985, as amended, the Grantors, their heirs,
successors, or assigns, shall conduct all agricultural operations on the Property in a manner consistent
with a Conservation Plan prepared in consultation with NRCS and approved by the Soil and Water
Conservation District. This Conservation Plan shall be developed using the standards and specifications
of the NRCS Field Office Technical Guide and 7 CFR Part 12 that are in effect on the date of execution
of this Conservation Easement. The Grantors may, however, develop and implement a Conservation Plan
that proposes a higher level of conservation and is consistent with the NRCS Field Office Technical
Guide standards and specifications. NRCS shall have the right to enter upon the Property, with advance
notice to the Grantors, in order to monitor compliance with the Conservation Plan.
In the event of noncompliance with the Conservation Plan, NRCS shall work with the Grantors to explore
methods of compliance and give the Grantors a reasonable amount of time, not to exceed twelve months,
to take corrective action. If the Grantors do not comply with the Conservation Plan, NRCS will inform
the Grantee of the Grantors' non - compliance. The Grantee shall take all reasonable steps (including
efforts at securing voluntary compliance and, if necessary, appropriate legal action) to secure compliance
with the Conservation Plan following written notification from NRCS that (a) there is a substantial,
ongoing event or circumstance of non - compliance with the Conservation Plan, (b) NRCS has worked
with the Grantors to correct such noncompliance, and (c) Grantors have exhausted their appeal rights
under applicable NRCS regulations.
If the NRCS standards and specifications for highly erodible land are revised after the date of this Grant
based on an Act of Congress, NRCS will work cooperatively with the Grantors to develop and implement
a revised Conservation Plan. The provisions of this section apply to the highly erodible land conservation
requirements of the Farm and Ranch Lands Protection Program and are not intended to affect any other
natural resources conservation requirements to which the Grantors may be or may become subject.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
10. Forest Management
Trees may be removed, cut and otherwise managed to control insects and disease, to prevent personal
injury and property damage, to remove non - native species, for pasture restoration, for firewood and other
non - commercial uses, including construction of permitted improvements and fences on the Property, so
long as it is in accordance with the Conservation Plan referenced in Paragraph 9 of this Conservation
Easement and in accordance with a forest management plan prepared by a professional licensed forester
approved by Grantee, such approval to not be unreasonably withheld, that is consistent with the above
referenced Conservation Plan.
Any other cutting, removal or harvesting of trees, including any commercial harvesting of trees, may be
undertaken within the areas identified and marked at "Forest Area" on Exhibit B only if a) the purpose is
for clearing land for cultivation or use by livestock, and b) it occurs outside of the stream buffer described
in Paragraph 4 of this Conservation Easement, and c) it is in accordance with the Conservation Plan and
forest management plan referred to in this Paragraph 10.
Trees may be planted, harvested and removed within the area identified and marked as "Farmstead Area"
on Exhibit B without the advance written permission of the Grantee, so long as done in accordance with
the Conservation Plan and forest management plan referred to in this Paragraph 10.
I1. Mining
There shall be no filling, excavation, dredging, mining or drilling, removal of topsoil, sand, gravel, rock,
peat, minerals or other materials; and no change in the topography of the land in any manner except as
necessary for the purpose of combating erosion or flooding in accordance with the Conservation Plan and
as reasonably necessary for any permitted maintenance, construction or reconstruction on the Property.
Disturbed areas for the purpose of removing soil, gravel, rock, peat, minerals or other materials necessary
for permitted customary agricultural uses on the Property will be limited to 1 acre in total surface area and
will be restored as soon as practicable after the disturbance. Under no circumstances is the drilling for or
exploration for hydrocarbons permitted in, on or to the Property.
12. Paving and Road Construction
Construction and maintenance of farm roads that may be reasonably necessary and incidental to
carrying out the improvements and uses permitted on the Property by this Conservation Easement are
permitted. Other than the existing entrance driveways within the Farmstead Area, as indicated on Exhibit
B no portion of the Property shall be paved or otherwise covered with concrete, asphalt, rock, gravel or
any other impervious material, without the advance written permission of Grantee. Grantee shall not give
such permission unless Grantee determines that the proposed paving, or covering of the soil, or the
location of any such road, will not diminish or impair the conservation values of the Property. Any such
road covered by any impervious material including rock or gravel is subject to impervious surface
requirements in Paragraph 7.
13. Dumping and Trash
Dumping or storage of soil, trash, refuse, debris, ashes, garbage, waste, abandoned vehicles or
parts, appliances, machinery, or hazardous substances, or toxic or hazardous waste, or any placement of
underground or above ground storage tanks or other materials is prohibited. Provided, however, that the
storage of agricultural products, byproducts (including the composting of biodegradable material for on-
farm use) and agricultural equipment used on the Property is allowable, so long as such storage is done in
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
accordance with all applicable government laws and regulations and in such a manner so as to not impair
the conservation values of the Property.
The land application, storage and placement on the Properly of domestic septic effluent and
municipal sewage sludge or liquid generated from such sources for agricultural purposes may be
undertaken only if in accordance with all applicable federal, state and local laws and regulations.
14. Water Rights
Grantors shall retain and reserve the right to use any appurtenant water rights sufficient to maintain the
agricultural productivity of the Property. Grantors shall not transfer, encumber, lease, sell or otherwise
separate such water rights from title to the Property itself.
15. Natural Resource Restoration and Enhancement Activities
Notwithstanding any terms contained within this Conservation Easement, Grantors may engage or
contract others to engage in any activity designed to repair, restore, or otherwise enhance the natural
resources found or once present on the Property, that are consistent with the conservation values of this
Conservation Easement and subject to the written approval of Grantee and NRCS.
16. Signs
No new signs shall be permitted on the Property except interpretive signs describing activities and
conservation values of the Property, signs identifying the owner of the Property and the holder of the
Conservation Easement, signs identifying customary rural enterprises on the Property as provided for in
Paragraph 6 of this Conservation Easement, and signs giving directions or proscribing rules and
regulations for the use of the Property. All signs permitted on the Property shall conform to applicable
Orange County zoning, subdivision and building code regulations.
17. Ongoing Responsibilities of Grantors and Grantee
Other than as specified herein, this Conservation Easement is not intended to impose any legal or other
responsibility on Grantee or the United States, or in any way to affect any existing obligation of the
Grantors as owners of the Property. Among other things, this shall apply to:
(a) Taxes — The Grantors shall continue to be solely responsible for payment of all taxes and
assessments levied against the Property. If Grantee is ever required to pay any taxes or assessments on its
interest in the Property, the Grantors will reimburse Grantee for the same.
(b) Upkeep and Maintenance — The Grantors retain all responsibilities and shall bear all costs
and liability of any kind related to the ownership, operation, and upkeep and maintenance of the Property,
including the maintenance of adequate comprehensive general/farm business policy or homeowners
policy liability insurance coverage. The Grantee and the United States shall have no obligation for the
upkeep or maintenance of the Property. Grantors will remain responsible for upkeep, maintenance, and
repairs to any impoundments located on the Property.
(c) Liability and Indemnification -- Grantors agree to indemnify and hold Grantee and the
United States harmless from any and all costs, claims or liability, including but not limited to reasonable
attorneys' fees arising from any personal injury, accidents, negligence or damage relating to the Property,
or any claim thereof, unless due to the negligence of Grantee or agents of Grantee, in which case liability
shall be as provided by law. In addition, Grantors agree to maintain liability insurance covering the
Property with the limits as follows: (i) $300,000 per person for personal injury or death, up to $300,000
per occurrence; and (ii) $300,000 per occurrence for property damage; and warrant that Grantee is and
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
will remain a named insured on Grantors' Property insurance policies covering the Property. Grantors
shall provide Grantee with a certificate of insurance coverage on the effective date of this Conservation
Easement and within 10 days of each insurance renewal date.
18. Transferability of Development Rights
(a) Development rights properly transferred from a sending site can be applied, pursuant to
[cite Orange County code], to "Receiving Sites" where development is encouraged under the SGRC.
(b) Development rights are transferred from sending sites through the issuance of "SGRC
certificates" to pursuant to [cite Orange County code], a process which requires the grant of a
conservation easement restricting development on the sending site.
(c) SGRC certificates can be freely sold by the sending site landowner to whom they are
issued. Receiving site landowners who obtain TDR certificates may use those certificates to obtain
density bonuses or other development incentives pursuant to applicable county or city regulations.
(d) Pursuant to [cite Orange County code], Grantors submitted an application to obtain
SGRC certificates on , owned by Grantors in fee simple and located in Township
Orange County in the State of North Carolina, described in a deed to Grantors, dated
and recorded at Orange County Registry of Deeds. A legal description of the Property
is attached hereto as Exhibit A and incorporated herein by reference as if set forth in full.
(e) The SGRC Certificate Application materials submitted by Grantors are on file with the
County, and are incorporated herein by reference as if set forth in full. These application materials
detailed existing conditions on the Property and stated Grantors' intentions concerning future residential
development, if any, to occur on the Protected Property. The Grantors represent that these application
materials reflect existing conditions on the Protected Property as of the date this Easement is executed, as
well as the Grantors' intentions concerning future residential development, if any, to occur on the
Protected Property.
(� Pursuant to [cite Orange County code], the County issued a SGRC certificate letter of
intent on ' a true copy of which is attached hereto as Exhibit C and incorporated herein
by reference as if set forth in full. In the letter, the County agreed to issue Grantors
SGRC Certificates, to be numbered , provided that the Grantors grant a conservation
easement on the Protected Property to Snohomish County in accordance with the requirements of [cite
Orange County code].
(g) Consistent with the foregoing requirements, and subject to the specific terms of this
Easement contained herein, the Grantors and the County, as Grantee of the Easement, intend and have the
common purpose of retaining the Protected Property for agricultural use by placing restrictions on the use
of the Protected Property, which shall run with the land and bind the Protected Property in perpetuity.
19. Enforcement
With reasonable advance notice to the Grantors or with the Grantors' prior verbal consent, Grantee shall
have the right to enter the Property for the purpose of inspecting for compliance with the terms of this
Conservation Easement. Grantee shall have the right to prevent violations and remedy violations of the
terms of this Conservation Easement through judicial action, which shall include, without limitation, the
right to bring proceedings in law or in equity against any party or parties attempting to violate the terms
of this Conservation Easement. Except when an ongoing, or imminent violation could irreversibly
diminish or impair the conservation values of the Property, Grantee shall give the Grantors written notice
of the violation and thirty (30) days to cure the violation, before commencing any legal proceedings.
Grantee may obtain an injunction to stop a violation or a threatened violation, temporarily or
permanently. The parties agree that a court may issue an injunction or order requiring the Grantors to
restore the Property to its condition prior to the violation, as restoration of the property may be the only
appropriate remedy. In any case where a court finds that a violation has occurred, the Grantors shall
reimburse Grantee for all its expenses incurred in stopping and correcting the violation, including but not
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
limited to reasonable attorneys' fees. The failure of Grantee to discover a violation or to take immediate
legal action shall not bar it from doing so at a later time for that violation or any subsequent violations. In
any case where a court finds no such violation has occurred, each party shall bear its own costs. In any
case where the court finds that there was a complete absence of a justiciable issue of either law or fact
raised by the losing party, the court may award a reasonable attorney's fee to the prevailing party as
provided by applicable law.
In the event that Grantee fails to enforce any of the terms of this Conservation Easement as determined in
the sole discretion of the Secretary of the United States Department of Agriculture, the said Secretary of
Agriculture and his or her successors and assigns shall have the right to enforce the terms of the
Conservation Easement through any and all authorities available under federal or State law. In the event
that Grantee attempts to terminate, transfer, or otherwise divest itself of any rights, title, or interests of
this Conservation Easement without the prior consent of the Secretary of the United States Department of
Agriculture and payment of consideration to the United States, then, at the option of such Secretary, all
right, title, and interest in this Conservation Easement shall become vested in the UNITED STATES OF
AMERICA.
20. Transfer of Conservation Easement
Subject to the contingent rights of the United States of America as specified in paragraph 19 and other
pertinent paragraphs herein, and with timely written notice to and approval of the United States
Department of Agriculture, the Grantee shall have the right to transfer the Easement created by this Deed
to any public agency, provided the agency or organization expressly agrees to assume the responsibility
imposed on the Grantee by this Deed.
[OR]
Grantee has the right to transfer, assign, convey, or otherwise to co -hold the Conservation
Easement created by this Deed to any public agency or private nonprofit organization that, at the time of
transfer, is a qualified organization under Section 170(h) of the U.S. Internal Revenue Code, as amended
and under NCGS 121 -34 et seq., provided the agency or organization expressly agrees to assume the
responsibility imposed on Grantee by this Deed. If Grantee ever ceases to exist or no longer qualify
under Section 170(h) of the U.S. Internal Revenue Code, or applicable State law, a court with jurisdiction
shall transfer this Conservation Easement to another qualified organization having similar purposes that
agrees to assume the responsibility imposed by this Conservation Easement.
21. Transfer of Property
The Grantors agree to incorporate by reference the terms of this Conservation Easement in any
deed or other legal instrument by which they transfer or divest themselves of any interests, including
leasehold interests, in all or a portion of the Property. The Grantors shall notify Grantee in writing at least
thirty (30) days before conveying the Property, or any part thereof or interest therein. Failure of Grantors
to incorporate by reference the terms of this Conservation Easement in an instrument of transfer or
conveyance or to notify Grantee of a transfer or conveyance shall not impair the validity of this
Conservation Easement or limit its enforceability in any way.
22. Amendment of Conservation Easement
This Conservation Easement may be amended only with the written consent of Grantee and the
Grantors. Any such amendment shall be consistent with the Statement of Purposes of this Conservation
Easement and with Grantee's Conservation Easement amendment policies, and shall comply with Section
170(h) of the Internal Revenue Code or any regulations promulgated in accordance with that section.
Any such amendment shall be duly recorded. Grantee shall give notice of any amendment to and secure
prior written approval from the United States.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
23. Procedure in the Event of Termination of Conservation Easement
If it determines that conditions on or surrounding the Property change so much that it becomes impossible
to fulfill the conservation purposes of this Conservation Easement, a court with jurisdiction may, at the
joint request of both the Grantors and the Grantee and with prior consent of the United States Department
of Agriculture as provided herein, terminate or modify the Conservation Easement created by this Deed in
accordance with applicable law. If the Conservation Easement is terminated and the Property is sold then
as required by Section 1.1 70A- 14(g)(6) of the IRS regulations, Grantee shall be entitled to
percent L21o) of the net sale proceeds (equal to the ratio of the appraised value of this
Conservation Easement to the unrestricted fair market value of the Property, as these values are
determined on the date of this Conservation Easement), subject to any applicable law which expressly
provides for a different disposition of the proceeds. The Grantee and the United States of America shall
divide the resulting proceeds in accordance with the percentage of the purchase price of the Conservation
Easement that each party contributed. The percentages are _% for the Grantee and _% for the United
States of America.
All termination related expenses incurred by the Grantors and Grantee shall be paid out of any
recovered proceeds prior to distribution of the net proceeds as described herein.
24. Procedure in the Event of Condemnation or Eminent Domain
Grantors and Grantee recognize that the partial sale of this Conservation Easement gives rise to a
property right, immediately vested in Grantee, with a fair market value equal to the proportionate value
that the Conservation Easement bears to the value of the Property prior to the restrictions imposed by the
Conservation Easement. Accordingly, if any condemnation or eminent domain action shall be taken, on
all or part of the Property, by any authorized authority, said authority shall be liable to Grantee for the
value of the property right vested in Grantee at the time of the signing of this Conservation Easement.
Due to the federal interest in this Deed, the United States must consent to any condemnation action.
If condemnation or a taking by eminent domain of a part of the Property or the entire Property by
a public authority renders it impossible to fulfill any of the conservation purposes of this Conservation
Easement on all or part of the Property, the Conservation Easement may be terminated or modified
accordingly through condemnation proceedings. Grantors and Grantee agree that the Conservation
Easement is a currently vested real property right with a value equal to the proportionate value the
Conservation Easement has to the unencumbered value of the fee, as of the date of this grant. If the
Conservation Easement is terminated or modified and any or all of the Property is sold or taken for public
use, then, as required by Section 1.170A- I4(g)(6) of the IRS regulations, Grantee shall be entitled to the
proportionate value of the Conservation Easement, which has been predetermined at percent
C2 /o) of the Property's unrestricted value, subject to any applicable law which expressly requires for a
different disposition of the proceeds.
If this Conservation Easement is terminated or modified by condemnation action or eminent
domain, the Grantee and the United States shall share, _% to Grantee and _% to the United States, the
Grantee's proportional value of the Conservation Easement.
If, however, after the condemnation or eminent domain proceedings, a court of jurisdiction does
not include, in the just compensation awarded as a result of the taking, the amount of the Conservation
Easement value, then the Grantors shall not be responsible to share any proceeds awarded.
ORANGE COUNTY. NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009
All condemnation - related expenses incurred by the Grantors and Grantee shall be paid out of any
recovered proceeds prior to distribution of the net proceeds as described herein.
25. Interpretation
This Conservation Easement shall be interpreted under the laws of the State of North Carolina
and the laws of the United States, resolving any ambiguities and questions of the validity of specific
provisions so as to give maximum effect to its conservation purposes.
26 Perpetual Duration; Severability .
The Conservation Easement created by this Deed shall be a servitude running with the land in
perpetuity. Every provision of this Deed that applies to the Grantors or Grantee shall also apply to their
respective agents, heirs, executors, administrators, assigns, and all other successors as their interests may
appear. Invalidity of any of the covenants, terms or conditions of this Conservation Easement, or any part
thereof by court order or judgment shall in no way, affect the validity of any of the other provisions
hereof which shall remain in full force and effect.
27. Merger
The Parties agree that the terms of this Conservation Easement shall survive any merger of the fee
and easement interest in the Property.
28. Notices
Any notices required by this Deed shall be in writing and shall be personally delivered or sent by
first class mail to the Grantors and the Grantee respectively at the following addresses, unless a party has
been notified in writing by the other of a change of address:
To the Grantors: To the Grantee: To the NRCS:
NC 27_
Orange County ERCD State Conservationist
PO Box 8181 4405 Bland Rd., Suite 205
Hillsborough, NC 27278 Raleigh, NC 27609
29. Grantor's Title Warranty
The Grantors warrant that they hold fee simple title to the Property, free from all encumbrances,
except for those exceptions deemed by the Grantee as acceptable and set further in Exhibit D to this
Conservation Easement, and hereby promise to defend the same against all claims that may be made
against it.
30. Subsequent Liens on Property
No provisions of this Conservation Easement should be construed as impairing the ability of
Grantors to use the Property as collateral for subsequent borrowing. Any such liens shall be and remain
subordinate to this Conservation Easement.
31. Subsequent Easements /Restrictions on the Property
The grant of any easements or use restrictions that might diminish or impair the agricultural viability or
productivity of the Property or otherwise diminish or impair the conservation values of the Property is
prohibited. Any such easements or restrictions shall be subordinated to this Conservation Easement.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
32. Grantor's Environmental Warranty
"Environmental Law" or "Environmental Laws" means any and all Federal, state, local or
municipal laws, rules, orders, regulations, statutes, ordinances, codes, guidelines, policies or requirements
of any governmental authority regulating or imposing standards of liability or standards of conduct
(including common law) concerning air, water, solid waste, hazardous materials, worker and community
right -to -know, hazard communication, noise, radioactive material, resource protection, subdivision,
inland wetlands and watercourses, health protection and similar environmental health, safety, building
and land use as may now or at any time hereafter be in effect.
"Hazardous Materials" means any petroleum, petroleum products, fuel oil, waste oils, explosives,
reactive materials, ignitable materials, corrosive materials, hazardous chemicals, hazardous wastes,
hazardous substances, extremely hazardous substances, toxic substances, toxic chemicals, radioactive
materials, infectious materials and any other element, compound, mixture, solution or substance which
may pose a present or potential hazard to human health or the environment.
Grantors warrant that it is in compliance with, and shall remain in compliance with, all applicable
Environmental Laws. Grantors warrant that there are no notices by any governmental authority of any
violation or alleged violation of, non - compliance or alleged non - compliance with or any liability under
any Environmental Law relating to the operations or conditions of the Property. Grantors further warrant
that it has no actual knowledge of a release or threatened release of Hazardous Materials, as such
substances and wastes are defined by applicable Federal and state law.
Moreover, Grantors hereby promise to defend and indemnify Grantee and the United States
against all litigation, claims, demands, penalties and damages, including reasonable attorneys' fees,
arising from or connected with the release or threatened release of any Hazardous Materials on, at,
beneath or from the Property, or arising from or connected with a violation of any Environmental Laws
by Grantors or any other prior owner of the Property. Grantors' indemnification obligation shall not be
affected by any authorizations provided by Grantee to Grantors with respect to the Property or any
restoration activities carried out by Grantee at the Property; provided, however, that Grantee shall be
responsible for any Hazardous Materials contributed after this date to the Property by Grantee.
Nothing in this Conservation Easement shall be construed as giving rise to any right or ability in
Grantee or the United States, nor shall Grantee or the United States have any right or ability, to exercise
physical or managerial control over the day -to -day operations of the Property, or otherwise to become an
operator with respect to the Property within the meaning of The Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended.
33. Entire Agreement
This instrument sets forth the entire agreement of the parties with respect to the Conservation
Easement and supersedes all prior discussions, negotiations, and understandings or agreements relating to
the said easement.
34. Recording Clause
The Grantee shall record this instrument and any amendment hereto in timely fashion with the
Office of the Register of Deeds of Orange County, North Carolina, and may re- record it at any time as
may be required to preserve its rights under this Conservation Easement.
TO HAVE AND TO HOLD this Deed of Conservation Easement unto Grantee, its successors and
assigns, forever.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
IN WITNESS WHEREOF, the Grantors and Grantee, intending to legally bind themselves, have set their
hands on the date first written above.
GRANTORS:
[Typed Name]
[Typed Name]
Accepted:
GRANTEE:
ORANGE COUNTY, NORTH CAROLINA
I' ,
ATTEST:
Orange County Board of Commissioners
By: , Clerk to the Board of Commissioners
Chair
ACCEPTANCE OF PROPERTY INTEREST BY THE NATURAL RESOURCES CONSERVATION
SERVICE
The Natural Resources Conservation Service, an agency of the United States Government, hereby accepts
and approves the foregoing Deed of Conservation Easement, and the rights conveyed therein, on behalf of
the United States of America.
Authorized Signatory for the NRCS
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
Acknowledgments
NORTH CAROLINA
COUNTY OF ORANGE
I, a Notary Public of Orange County, North Carolina do hereby certify that
and wife personally appeared before me and
acknowledged the due execution of the foregoing instrument.
Notary Public
My commission expires:
NORTH CAROLINA
COUNTY OF ORANGE
I, a Notary Public of the County and State aforesaid, certify that Donna S. Baker personally came before
me this day and acknowledged that she is Clerk to the Board of Commissioners for Orange County, North
Carolina and that by authority duly given and as the act of said County, the foregoing instrument was
signed in its name by the Chair of said Board of Commissioners and attested by her as Clerk to said
Board of Commissioners.
Witness my hand and notarial seal this the day of , 20_.
(Seal)
Notary Public
My commission expires:
ORANGE COUNTY, NORTH CAROLINA '
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
EXHIBIT A
PROPERTY DESCRIPTION
ORANGE COUNTY, NORTH CAROLINA '
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
EXHIBIT B
PRESENT CONDITION MAP OF THE CONSERVATION EASEMENT
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
EXHIBIT C
CERTIFICATE OF LETTER OF INTENT TO APPLY FOR CONSERVATION EASEMENT
ORANGE COUNTY, NORTH CAROLINA '
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
EXHIBIT D
PERMITTED EXCEPTIONS
(a) All enforceable easements and rights of way currently depicted in the Orange County Registry; and
(b) Public Road rights of way affecting the Property; and
(c) Current Orange County property taxes and any deferred taxes as provided by law.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009
EXHIBIT E
COPY OF BASELINE REPORT ON PROPERTY
ORANGE COUNTY, NORTH CAROLINA '
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
F. Sample Reporting Figures (MS -Excel native format)
Orange County SGRC Program Rural Conservation Area Baseline Report
Date
Reviewer:
Date
Reviewer.
Participant Information
Name:
Telephone (Work):
Telephone (Home or Cell):
Address 1:
Address 2:
City / Town:
Zip Code:
Email:
Verification Record (Initial
Rural Conservation Area Information .D.- each line)
ParcellD(S):
(separate wtommas) --
Township: Cedar Grove V
Watershed: uttle River
Total Acres: 50
In Sending Area: *Yes Cto
Base Credits:
Bonus Credits 0
Wetlands:
Historic:
Stream:
Total Credits: 0
Additional Comments:
The information shown is true and correct to the best of my knowledge:
Participant Signature Date
Orange County staff can contact me if a purchaser becomes available and to verify information:
Participant Signature Date
ORANGE COUNTY. NORTH CAROLINA • •
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
Orange County SGRC Program Rural Conservation Area Participants
Orange County SGRC Program Transaction Report
Transaction Number
.. 00:
00•
urC seer em@
Gerald Lloyd
Richard Pruetz
Um as @r Telephone
919 -555 -0001
919 -555 -0002
urC aser SUM
1968 Landmark Lane
1972 Southampton Road
secona SM I Suite
Suite 101
Suite 400
urc astir C117y
Hillsborough
Buckingham Township
Purchaser 955
NC
PA
ORANGE COUNTY, NORTH CAROLINA
20001 10001
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
Orange County SGRC Scorecard
Date Submitted:
Submitted To:
ORANGE COUNTY, NORTH CAROLINA •
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
G. Summary of Public Engagement Process
During the first phases of the TDR Feasibility Study, seven meetings of a Task Force
comprised of varied representatives of the Orange County community were used to
gain input. Additional interviews were conducted with developers, farmers, and TDR
program managers from other parts of the country. The third and final phase,
implementation, also used a steering committee, but this committee was comprised of
members of various advisory boards already in place in Orange County. Hence, it was
dubbed the Joint Advisory Board, or JAB. Three meetings were scheduled to be held
with the JAB.
The following are the key public outreach and coordination efforts that were used
during the implementation study.
■ Project Website (4 -6 updates). As in Phases I / II, the project website continued to be
updated, as needed. The website contains relevant information and reports
emanating from the planning process, which have been few since the program
design (and hence administrative design) considered more options than originally
conceived.
■ Public Meetings (1). The current scope of services called for one more of these
open, drop -in style sessions, in addition to the meetings held at the Planning Board
and Board of County Commissioner meetings. The Consultant provided three staff
people and produce a presentation, display boards and handouts to facilitate
discussion at this session.
■ Working Group Meetings (3). There were three meetings of the Joint Advisory Board
(JAB) scheduled. The purpose of the JAB was to bring together members of the
community that are more directly involved in the process and product of any SGRC
Program, and to help provide feedback on very specific issues regarding program
and administrative design. This is in contrast to the purpose of the appointed TDR
Task Force, which brought together a wider variety of stakeholders to examine a
broader range of issues related to TDR feasibility.
• Newsletter (75 copies). The Consultant produced a newsletter to illustrate the
program design and purpose, once the report and project were completed in a
final draft format. Initial newsletters were distributed at a Public Open House, to
steering committee members, elected /appointed officials, etc.
• Miscellaneous Outreach and Coordination. The Consultant conducted five
additional case studies from other, county -based TDR programs around the country
and submitted the summary of findings. The Consultant has interviewed people in
the development business in Orange County for their viewpoints on specific
program and administrative design issues. Frequent telephone calls coordinating
the project occurred throughout the project, typically scheduled on Fridays at
1 lam.
ORANGE COUNTY, NORTH CAROLINA . •
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
H. SGRC Education and Marketing Plan
The County of Orange wants its citizens and private development community to
participate to have the maximum opportunity to participate in the SGRC
Program. Since this Program is relatively new not only to Orange County but to
North Carolina, there is a need to ensure that the appropriate level of
education and awareness is created in the pool of potential participants. The
following are recommended actions that can be undertaken to accomplish
these objectives.
Focus Groups. Focus groups are readily defined as the convening of between 5
and 15 people that have similar backgrounds or interests relative to the given
topic. The meeting duration is typically between two and four hours, and is
facilitated by a staff person. The staff will also need to identify participants and
introduce them to the topic in advance of the meeting. The meeting space is
usually small with a center table, and handouts are kept to a minimal number of
words. Issues are identified during the focus group meeting, and suggestions by
staff are responded to by the participant. Two focus groups are recommended:
one for potential conservation area participants and one for designated growth
area participants. Ideally, these focus groups should convene annually or once
every two years to help update the SGRC Program and gain an awareness of
the perception that the Program has in the minds of its participants and
potential participants.
Website. Orange County maintains its own website, a portion of which has been
devoted to the SGRC Program. Keeping this portion of the website active is
important to the users of the Program, and should be expanded over time to
include tracking information as well as any updates to the program or
administrative designs. Finally, the lengthy URL for the website could be
augmented with an easier -to- remember "mirror" URL address (e.g.,
"OrangeTDR.org ") that forwards the user directly to the correct location of the
website files (www.co.oranae.nc.us /planning /TDR files).
Other Mechanisms. Should an additional awareness of the SGRC Program be
desired, then the publication of a direct mailer postcard, open house, or public
television announcement may be considered.
ORANGE COUNTY, NORTH CAROLINA M70
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.20091
I. Program Manager Case Studies (Implementation Phase)
The Project Team utilized case studies in the initial feasibility phases of work to help
explain key concepts to the Stakeholder Committee and the interested public. During
the development of program and administrative design concepts, a second round of
case studies was conducted that focused exclusively on county- managed transfer of
development right (TDR) programs, especially those that adhered to free - market
approaches with limited government intervention between buyers and sellers of
development rights. The following five TDR programs are reviewed in this section:
Island County, WA; (1 ------- + - F> -,
• Gallatin County, MT;
• Pitkin County, CO;
• Greenville County, SC; and
• Talbot County, MD. r- �- - -:� _ ' .; �.» 1,,,5■
1 —� xs�awk. I �uta±�w u'y"" '� rT, ■�x,� `.
The initial selection of which TDR programs to include in the case studies considered a
number of general characteristics, which are indicated in the table below. The chart at
the right of the table indicates the relative position of Orange County with respect to
these indicators (orange line and orange bar).
Labor Force
64,970
34,872
40,064
10.138
197.809
16,883
Square Ivfrles (Land)
400
208
2606
970
790
269 J,,,
Density (Population /Square Miles of Land)
296
343
26
15
480
126 I
Growth Rate (1990 - 2000)
260/9
19%
34%
18%
19%
i m
Median Household Income
$42,750
545,557
538.235
559,629
541.313
S43.829
College Degree (BA or Higher)
52%
27%
41%
57%
26%
28%
Drove Alone to bYbtk
700/0
74%
71%
51%
82%
79%
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
Supplementing these interviews were descriptions of the TDR programs contained in
one of two compendiums of TDR program developed by Rick Pruetz, AICP.1. 2 Both
works by Mr. Pruetz are seminal in terms of explaining the process of developing TDR
Programs and providing a compendium of cases of TDR programs in effect across the
country.
A number of questions were asked of each of the people that managed or had a
strong understanding of the TDR program:
1. Do you have benchmarks for performance of the TDR program? If so, what are they, how
easy are they to track, and have you met the benchmarks or raised /lowered them over
time?
2. What are TDR credits selling for currently? What degree of density bonus is one credit worth?
How are credits awarded in Sending Areas (e.g., one credit per acre, one credit per unit of
zoning density, or by a merit -based formula ?) What are underlying raw land values ($ /acre)
in your RAs? In your SAS?
3. Have you had concerns expressed from property owners living in or near Receiving Areas,
and, if so, what steps have been taken to allay concerns of increased densities in Receiving
Areas?
4. Have concerns about land prices increasing in Receiving Areas in response to the additional
development potential been an issue in your program, and if so, what have you done to
mitigate or address the effect?
5. How do you handle highly variable land prices in Sending and Receiving Areas (e.g.,
proximity to existing urban areas v. rural; areas provided with public water /sewer)? Are there
adjustments in credit values that are applied, requirements /recommendations for
appraisals? If soils aren't conducive for development (in- ground septic system), then do you
adjust the TDR Sending Area credits accordingly? Do you require a "perk" test on soils? Do
you increase the value (number of credits) in Sending Areas because some have more
intrinsic value to the overall conservation goals of the community (water supply watersheds,
historic properties, active farmland)? If you consider environmental factors in your Sending
Area calculations, how do you account for streams or other features that influence only a
part of a Sending Area in terms of credits generated?
6. Have you encountered any issues with applying conservation easements (e.g., part of a
parcel) or enforcement?
7. What measures in terms of pricing structure, program design, or administrative (review)
process have you implemented to entice more activity in the TDR program (e.g. streamlined
reviews, tax credits for Sending Area participants)?
8. Any additional advice for a new program just starting out?
The following is a brief summary of the highlights of each discussion, preceded by a
brief description of the TDR program in each county and case.
1 Rick Pruetz, AICP, "Saved by Development: Preserving Environmental Areas, Farmland and Historic Landmarks with
Transfer of Development Rights." (Burbank, CA: Arie Press, September, 1997).
2 Rick Pruetz, AICP, "Beyond Takings and Givings: Saving Natural Areas, Farmland, and Historic Landmarks with Transfer of
Development Rights and Density Transfer Charges." (Marina Del Ray, CA: Arie Press, February, 2003).
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
Island County, Washington. Literally a group of islands in Jeff Tate, Assistant Director
the Puget Sound Region of Washington, Island County Planning Department
discontinued its TDR program in 1995 after 1 1 years of (360) 679 -7344
operation. Low participation rates on the development / JeffT @co.island.wa.us
receiving side was the primary reason cited, with the
result that only 88 acres were preserved. In 1998, the
County started another program with significant input from the farming community
called the Earned Development Credit (EDC) Program. This program, like TDR, allows
farmers (and farmland owners only) to create a Farm Management Plan that, when
adopted, guarantees that the farm will stay in use according to deed restriction, and
that the property owner gets 0.2 EDU credits for every acre preserved. The owner can
then sell each EDU credit or, more likely to occur, the owner uses the credit himself to
construct on another piece of property elsewhere that he also owns. There are no
designated Sending / Receiving Areas, although only areas zoned agricultural can
participate (about 80% of the land area of the County).
Notable Features: Unlike the other examples, the EDU credits can be used for non-
residential purposes like churches, country inns, mini - storage facilities, and restaurants,
all of which have varying numbers of credits that would be required to develop the
particular land use. Like the Orange County SGRC proposal, Island County does not
serve as a broker or banker of credits. Unlike the Orange County program, only farmers
can participate in generating EDU credits. Strong design guidelines are integral in
mitigating density concerns from residents.
Issues: The Island County program does not recognize differing development pressures
to adjust its credit ratio, nor does it have established performance benchmarks or a
dedicated tracking mechanism. The free market determines the worth of an EDU credit
to the seller; however, in all cases thus far, the seller and buyer of credits has been the
same person.
Performance:
Years TDR Program in Effect: TDR in effect 14 years; EDU for 10 years
Number of TDR Credits Created: 160
Acres Conserved: 800
Gallatin County, Montana. The Gallatin area is a Tim Skop, Planner
gateway into Yellowstone National Park as well as the Planning Department
Bridger Bowl skiing area, both very popular tourist (406) 582 -3130
destinations. TDR is used to transfer development rights in tim.skoo@@gallatin.mt.gov
only three zoning districts currently, one of which is used
primarily to allow higher densities of development closer to popular ski slopes, thereby
reducing traffic on local roadways. The main incentive for participating in the program
is the high development costs associated with providing roadway access and
infrastructure to remote areas within the County. Clustering development is a
requirement in two of the three zoning districts, with no more than 10% - 15% of
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
available land allowed to be used for development and the remainder preserved
through deed restriction. The application of TDRs is handled through the Conditional Use
Permit (CUP) process, and at least three of six conditions have to be met: effects on
scenic vistas, prime agricultural land, use of woodlands to screen development,
minimizing disturbance to natural features, hillside / creekside development, and
proximity to existing roads and homes.
Notable Features: In Gallatin County, there is no designated sending or receiving area
in the TDR program. Development costs and desirable agglomeration of higher- density
residential uses in prime locations are used to drive participation in the TDR program.
Issues: The County is currently discussing modifications to the TDR program to
encourage more participation, such as waiving environmental reviews for major
subdivisions. The County staff is currently working to expand the program to include
more of the County outside of the three zoning districts where TDR is allowed now. A
number of improvements, such as accounting for the varying importance of land
preservation due to the presence or lack of environmental features and mitigation of
receiving area concerns, are being considered for the TDR program. There are no
benchmarks or comprehensive tracking mechanism in place now to understand or
measure performance.
Performance:
Years TDR Program in Effect: 15
Number of TDR Credits Applied: Unknown
Acres Conserved: Approximately 5,000
Pitkin County, Colorado. Home to the extremely popular
tourist destinations of Aspen, several ski resorts, and Mike Kraemer, Planner
national forests, Pitkin has seen extraordinary Community Development
(970) 920 -5482
development pressures from people wishing to construct michaelk ®co.pitkin.co.us
large homes in the area. As with Gallatin County,
Montana, the Pitkin County program has a focus on preserving scenic areas, especially
those that have had their development potential (and thus value) reduced due to
constraints imposed by land use regulations. While TDR credits can be used to create a
new development right in the Aspen urban growth boundary, the vast majority of
credits are used to allow additional square footage on new or existing homes. In most
of the zoning districts where TDR is permitted, house size is limited to 5,000 square feet. A
TDR credit is worth an additional 2,500 square feet up to the (typical) maximum of
15,000 square feet. Depending on the underlying zoning district, varying amounts of
acreage are required to be preserved in order to generate one credit (10 - 35 acres).
Driving the program are (A) the very desirable location of the area; (B) strong zoning
and rezoning policies; and (C) the Growth Management Quota System which can be
exempted in the presence of a TDR project.
Notable Features: Like the proposed Orange County SGRC program, Pitkin County does
not broker or bank TDR credits, which are traded directly between buyers and sellers. A
ORANGE COUNTY. NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009
one -step special review process for TDR applications is conducted to locate a
developable "envelope" on the target property, and to ensure all conditions are met.
The Pitkin County program does an outstanding job of tracking the TDR program's
progress on a monthly basis, and uses the following benchmarks in an annual report
and assessment to the County Commissioners:
(1) adequate market / transactions;
(2) sufficient incentives to create activity in the program;
(3) are there smooth / efficient provisions in the regulations and process; and
(4) monthly updates are provided on TDR Certificates Issues; credits extinguished;
and acres conserved are recorded.
Issues: The major issue in Pitkin County and the TDR program is the frantic pressure to
develop, particularly to develop very large (in excess of 5,000 square feet) homes. This
pressure has driven the price of a TDR credit to over $300,000. The credit is then used to
simply add another 2,500 square feet of floor space onto a home, new or existing. The
situation has created "instant millionaires ", and has brought into question the transfer
credit ratio. However, the TDR program is not blamed for influencing home prices,
which are seen to be subject to larger economic forces.
Performance:
Years TDR Program in Effect: 11
Number of TDR Credits Applied: 70
Acres Conserved: 5,358
Greenville County, South Carolina. In 1982 Greenville Patricia Webb, Subdivision
created a TDR program in response to the high demand Administrator
for residential development near Paris Mountain, a scenic Planning Department
area in close proximity to downtown. Greenville's (864) 467 -7270
downtown has staged a renaissance in the past decade, pwebb @greenvillecounty.ora
and now contains over three million square feet of office
space, numerous cultural amenities, and more than 60 restaurants3. TDR was originally
created to protect the traffic - carrying capacity of Altamont Road, an approach that
determined the amount of development permissible in the Sending Areas to maintain
an acceptable level -of- service on the road, and to compensate landowners who saw
their land get down - zoned. Eleven principles help shape the TDR program goals,
including that each zoning district has its own method for allocating development
rights. There are no incentives for the program to succeed.
Notable Features: Tying the amount of development back to a specific carrying
capacity of a piece of public infrastructure (Altamont Road) is novel. The program
attempts to compensate landowners who have their properties' potential
development reduced, as well as compensating landowners that have land that is
3 Greenville, SC, USA. 2007 City of Greenville, South Carolina. 29 August 2007. www.areaterareenville.com/
development /dtn mao.aso.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
compromised by steep slopes and other site constraints. The transfer process is handled
almost entirely administratively.
Issues: The TDR program, according to the contact person, has not been a success. The
failure is blamed in large measure on the County's inability to consistently track the
severance of development rights. Deed modifications have proved to be expensive,
and have not been followed- through by county attorneys. The result is that the value of
credits, number of acres actually conserved, and amount of transfer activity historically
is not known, and the staff does not actively promote the program. Site conditions are
not used to adjust transfer ratios, and there are no measures in place to address
concerns about increased density in Receiving Areas.
Performance:
Years TDR Program in Effect: 24
Number of TDR Credits Applied: Approximately 10
Acres Conserved: Unknown
Talbot County, Maryland. Located in a State that is
Martin Long-Range famous for its purchase of development rights program
the 30-year-old Maryland Agricultural Land Preservation Long -Range Planner
y rY g Planning and Zoning Dept.
Foundation, or MALPF), Talbot County supplements that (410) 770 -8030
effort with its own TDR program. Two district types, both msokolich @talbaov.ora
rural conservation districts that together comprise 80% of
the land area in the County, offer TDR credits at the rate of one per 20 acres plus three
additional dwelling units. Sending areas are typically parks, open space, agricultural,
and natural habitat areas. Receiving areas can accept TDR transfers up to one unit per
five acres.
The program is free - market - driven, and land prices have increased in recent years
without any influence of TDR. Current discussions about improving the program include
requiring benchmarks, better tracking through GIS databases, and program incentives
to make TDR more popular and effective. Another change may occur when the
County adopts a greenbelt program currently being considered that would designate
low- density lands surrounding each town / village; TDR would be used to compensate
landowners in the greenbelt areas for down - zoning their properties. The contact noted
that the staff feels as if they are still just getting the program really started, even though
it has been "on the books" for a decade.
Notable Features: Like some of the other cases, Talbot County's TDR program is free -
market- driven, with the County serving in a facilitation, education, and recording
capacity. Adjacent Caroline County has changed their position to be more of a broker
of TDR credits, and this option is being discussed in Talbot County as well. Receiving
Areas were initially assigned to be partitioned among election districts. TDR Receiving
Areas / developers are incentivized to cluster developments and can achieve a higher
density if they do so.
ORANGE COUNTY, NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
Issues: The County laments not having gotten the towns involved at the outset, and now
wonders what motivation the towns have to participate at this point. The septic
capacity of the soils typically limits development to one unit per two acres, which also
hinders the TDR program in achieving meaningful density increases in Receiving Areas.
In one case, a developer constructed their own private septic system and graywater
irrigation system for a 70 -unit development. The recent slow -down in the housing market
has hurt sales of this development and the participation rates in the TDR program
generally.
Performance:
Years TDR Program in Effect: 10
Number of TDR Credits Applied: 75
Acres Conserved: 1,000
Common Findings. Based on the review of these case studies and others, several
important findings can be summarized that would affect both program and
administrative design aspects of the Orange County SGRC program.
1. Create a Tracking Mechanism for Credit Transfers and Program Utilization. Early
benchmarks such as the number of inquiries about the TDR program should be
succeeded by performance measures such as the number of credits created /
extinguished, number of development units (e.g., homes) created, and acres of
land conserved. Pitkin County, Colorado is a standout in this regard, reporting
monthly and annually their figures on TDR participation. Greenville County, South
Carolina staff cited the lack of an adequate administrative procedure and tracking
mechanism as a major flaw with the current program.
2. Don't Get Overly Concerned with Inequity Issues. In all of the cases cited, there was
no adjustment for the "quality" of the Sending Area based on the presence or lack
of natural, scenic, historic or other features. Most of the contacts when asked the
question thought that this would be "a good idea," but none of them were doing it
under the current program structure.
3. A Non - Broker Role Can Work. In all of the cases the County had a fairly limited role
in credit transactions that did not include acquisition of credits for later
extinguishment or sale to development interests. Counties tended towards actions
that included program design adjustments, tracking of participation, education,
and application of conservation easements, covenants, and deed restrictions to
enforce the conservation aspect in Sending Areas.
4. Clustering of Development is Important. Several programs cited that the clustering of
development units - the practice of building homes in close proximity to each other
and leaving areas of the parcel that have important scenic, environmental, historic,
or buffering characteristics undisturbed - was a critical part of the program. Talbot
County, Maryland allows a density bonus for clustering in addition to the TDR bonus.
5. Land Use Conversions from Residential to Commercial Can be Accomplished. The
Island County, Washington program has assigned a number of credits required to
construct a variety of uses that people in the County feel would be beneficial to
them from an economic or convenience standpoint, such as "country" inns,
restaurants, and so forth.
ORANGE COUNTY. NORTH CAROLINA
STRATEGIC GROWTH AND RESOURCE CONSERVATION PROGRAM
Final (8.7.2009)
Glossary of Terms
Conservation Easement, Easement - A conservation easement is a written agreement
between a landowner and an organization that restricts the activities that may take
place on a property in order to protect the land's conservation values. Byers and Ponte, "The
Conservation Easement Handbook." 1998.
Conservation Credit, Transfer Credit - Represents the right to sell or purchase one unit of
transferable density from a Resource Conservation Area to a Strategic Growth Area.
Purchase of Development Rights - An action or program whereby a landowner sells or
donates to a local government or land trust a portion or all of the allowable permissions
to construct or physically alter a parcel of land.
Resource Conservation Area - One or more parcels of land that are eligible to sell or
donate conservation credits in exchange for limiting the type or density of
development that can occur on the parcel(s).
Rural Character - Rural character consists of qualities such as horse farms, lakes,
pastures, farms, estates and undisturbed roadsides. Areas contain mature and natural
landscape with informal placement of trees and indigenous vegetation is characteristic
of the area. Cemeteries and places of historic or architectural significance are
preserved and maintained. Fulton County, Georgia
Special Use Permit - A special permit is a discretionary action by the Board of County
Commissioners which may modify use, bulk or parking regulations if certain conditions
and findings specified in the county zoning regulations are met.
Strategic Growth Area - One or more parcels of land that are eligible to receive one or
more transfer credits to construct at a greater density or different type of development
than could normally occur on the parcel(s).
Transfer of Development Rights (TDR) - (1) TDR is the exchange of zoning privileges from
areas with low population needs, such as farmland, to areas of high population needs,
such as downtown areas. (2) TDR is a device by which the development potential of a
site is severed from its title and made available for transfer to another location. The
owner of a site within a transfer area retains property ownership, but not approval to
develop. The owner of a site within a receiving area may purchase transferable
development rights, allowing a receptor site to be developed at a greater density. state
of California, Office of Planning and Research, General Plan Guidelines, 1987. (3) TDR may also represent a
single transfer credit.
ORANGE COUNTY, NORTH CAROLINA