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ORD 96-07 TRANSFER OF DEVELOPMENT RIGHTS 07 ORDINANCE NO. 96- 'AN ORDINANCE of the City of Bainbridge~Island, Washington, establishing a transfer of development rights program; 'adding a new section 18.06.275 and a new Chapter 18.37 of the Bainbridge Island Municipal Code. WHEREAS, the comprehensive plan requires the City to establish a transfer of development rights (TDR) Program for the preservation of agricultural land and the protection of priority wetlands and high vulnerability recharge areas through the use of transferable development rights (TDRs) and as a means of shifting density from designated areas in the Residential Open Space District to either the area designated for urban concentration Or areas designated as small-scale centers; and WHEREAS, the comprehensive plan designates the Critical Areas Overlay District (CAOD) and agricultural land as TDR sending areas and .the Mixed Use Town Center (MUTC) in Winslow (except for Ericksen Avenue south of Wyatt Way) and the Neighborhood Service Centers as the TDR receiving areas; and WHEREAS, wetlands and high vulnerability recharge areas have some protection through the Environmentally Sensitive Areas Ordinance and the Flexible Lot Design Ordinance, while agricultural land is a quickly diminishing resource, having no other means of protection other than the Purchase of Development Rights (PDR) Ordinance, thereby requiring a phased TDR program to focus initially On the preservation of agricultural land; and WHEREAS, the Growth Management Act, RCW .Chapter 36.70A, requires that development regulations be adopted to implement the comprehensive plan; and WHEREAS, a TDR Committee was appointed to recommend a TDR Program and the TDR. Committee transmitted its recommendations to the Planning Commission in a report, dated April 10, 1995, which recognized the urgency in preserving .agricultural land by recommending a bonus program for agricultural land; and WHEREAS, the Planning Commission reviewed the recommendations of the TDR Committee and recommended establishing a phased TDR program which establishes agricultural land as the only TDR Sending Area in the initial phase of the TDR program; now therefore THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON, DO ORDAIN as follows: Draft TDR Ordinance March 7, 1996 Section 1: A new Section 18.06.275 is added to the Bainbridge Island Municipal Code as follows: "Development rights" means the potential for the improvement of real property, measured in dwelling units or units of commercial or industrial space, existing because of the zoning classification of real property. Section 2: A new Chapter 18.37 is added to the Bainbridge Island Municipal Code as follows: 18.37.010 Purpose. The purpose of this chapter is to establish a simple, flexible transfer of development rights (TDR) program that successfully preserves wetlands, high vulnerability recharge' areas, agricultural land and open space, relying on the market place. The program is to be phased, with agricultural land as the only eligible TDR Sending Area for the first year of the TDR program. At the end of the first year, the TDR program will be reviewed to determine whether to expand the program to the other areas designated in the comprehensive plan as sending areas. 18.37.020 TDR Sendinq Area. A. Critical Areas Overlay District. All properties within the Critical Areas Overlay District (CAOD) as designated on the land use map of the city comprehensive plan are established as TDR sending areas. B. Owners of agricultural land. Any owner of agricultural land as defined by Section 16.20.020 of the Bainbridge Island Municipal Code, whether located in or outside of the CAOD, may elect to have the agricultural land designated as a TDR sending area property through the sale or transfer of development rights. C. Property Already restricted from development not eligible. Development rights are not available for real property in the CAOD or agricultural land outside of CAOD that is subject to easements or covenants preventing further development of the real property. D. Government-owned property not eligible. Rea~ property owned by a government agency and located within a TDR sending area is not eligible to transfer development rights. 18.37.030 Calculation of Development Riqhts.. A. Subject to Section 18.37.060, an owner of real property in the TDR sending area is entitled-to sell or transfer one Draft TDR Ordinance March 7, 1996 development right for every unused development right associated with the pr©perty within the TD~ sending area. B. Optional Bonus for Owners Of Agricultural Land. If an owner of agricultural land as defined by Section 16.20.020 of the Bainbridge Island Municipal Code, grants an easement to conserve and forever maintain the agricultural productivity of the agricultural land to the American Farmland Trust, Inc. or other appropriate trustee, as approved by the City of Bainbridge Island, then for every unused development right, the owner of agricultural land may sell three development rights. For example, if a agricultural land has three unused development right, the property owner could transfer or sell nine development rights. C. In calculating available development rights, the area of land divided by the minimum lot area defined by the underlying zone shall be used. The resulting figure shall be rounded down for any fraction of a development right. 18.37,040 Phased TDR Proqram. For one year from the effective date of this ordinance, only owners of agricultural land as defined in Section 18.37,020(B) are eligible to transfer development rights. Any owner of agricultural land using the TDR Program during the firstyear of the program may use the provisions of either Section 18.37,030 (A) or (B). At the end of first year, the ordinance will be reviewed to determine whether to expand the program to the other areas designated in the ~omprehensive plan as sending areas. 18o37,050 TDR Receiving Area. A. The Mixed Use Town Center (MUTC) as designated on the land use map of the city comprehensive plan, except for properties in the Ericksen Avenue Overlay District south of Wyatt Way, are eligible to increase density using TDRs, in accordance with Chapter 18.40 of the Bainbridge Island Municipal Code. B. The Neighborhood. Service Centers, as designated on the land use map of the adopted city comprehensive plan, are eligible to increase density using TDRS in accordance with Chapter 18.66, as amended. 18.37.060 Determination of development riqhts from a TDR Sendinq Area. A. An owner of real property desiring to sell or transfer development rights shall submi't an application for severance of development rights to the Director. The Draft TDR Ordinance B March 7, 1996 Director shall determine the form of the application and .the information required for a complete application. The Director or designee, shall determine the number of development rights available for severance. The Department shall issue a certificate documenting the number of available development rights. 18.37,070 Severance of development riqhts from a TDR Sendinq Area. A. To sever development rights approved by the Department, the property owner shall execute a restrictive easement between the owner and the City or a tax exempt organization or other governmental agency, as approved by the City in a form approved by the Department. The certificate of development rights and the restrictive easement shall be recorded by the owner with theKitsap County Auditor. The owner shall provide a copy of the recorded documents to the Department. When the documents have been recorded and the recorded documents have been received by the Department, the severance is complete. C. The severance of development right is permanent. 18.37,080 Sale, Transfer or Purchase of develoDment riqhts. Once development rights have been severed from a sending area property in accordance with Section 18.37,070, the property owner may sell or transfer the development rights by executing and recording with the Kitsap County Auditor, a Deed of Development Rights, using a deed form provided by the Department. The Deed shall describe the number of development rights being sold or transferred. 18.37,090 Use of a TDR to increase density within the TDR Receivinq Area. A request to utilize development rights within the receiving area must be part of a site plan application under Chapter 18,105. The site plan must indicate the number of TDRs to be used. The application must contain a copy of either a Deed of Development Rights or a contract for the purchase of development rights. The use of development rights shall be reviewed under the provisions of Chapters 18.40 and 18,105. Prior to final approval of the site plan, the appl.icant must provide the Department with a Deed of Development Rights. Draft TDR Ordinance '4 March 7, 1996 The site plan, referencing the Deed of Development .Rights, shall be recorded by the owner with the Kitsap County Auditor. Section 3. Within one year from the effective date of this ordinance, the Department of Planning and Community Development shalI prepare and transmit to City Council a report which evaluates the use and effectiveness of the TDR Program established by this ordinance. The report shall include the number of TDRs sold or transferred from the sending areas and the number used in the receiving areas. Section 4. This ordinance shall take effect and be in force five days from and after its passage, approval and publication as required by law. PASSED by the City Council this 7th day of March , 1996. APPROVED by the Mayor this 8th day of March , 1996. Janet K. West, Mayor ATTEST/AUTHENT I CATE: APPROVED AS TO FORM: Rod P. Kaseguma, City Attorney FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: March 7, 1996 PUBLISHED: March 13, 1996 POSTED: March 13, 1996 EFFECTIVE DATE: March 18, 1996 ORDINANCE NO. 96-07 Draft TDR Ordinance 5 March 7, 1996