Landowner Benefits

  • Land equity is retained as owners capitalize on their development potential without the time, expense and risk of developing the property
  • Ownership of the property is maintained even as development potential is sold. On farmland, the sale of development potential may create capital for projects to improve the agricultural viability of the parcel
  • TDR creates an additional preservation option for landowners, and because the TDR credit price is market-driven, there exists the potential for higher development potential values than public land conservation programs can provide
  • TDR provides an alternative to losing land equity, which could result from future downzoning or regulation
  • As development potential is transferred out of agricultural or environmentally sensitive areas, incidents of conflict with adjacent residential uses are minimized
  • Landowners who transfer development potential are eligible for grants for soil and water conservation projects

Municipal Benefits

  • Transferring development away from agricultural, historic, and environmentally or socially important areas can help maintain the character of the community
  • TDR provides a real alternative to either building out with sprawl-type development, or enacting politically volatile downzoning.
  • Growth can be targeted where it is desired and where appropriate infrastructure exists
  • With private money fueling preservation, critical agricultural, environmental or historic resources can be protected with little public investment
  • Receiving areas can be designed to attract a desirable mixture of residential and commercial ratables
  • Receiving area development can be used to provide for municipal infrastructure needs
  • With TDR, municipalities have greater control over design standards in receiving areas
  • Participating municipalities may receive priority for state funding, streamlined permitting and technical assistance

Developer Benefits

  • TDR receiving areas are designated and design standards pre-approved by the municipality. As such, developers can anticipate the municipal blessing of projects, reducing the need for litigation to achieve development approvals
  • Development in pre-planned TDR receiving areas can create a more predictable and expedient development approval process (at the local and state level)
  • With municipal design guidance, developers can anticipate spending less on planning and architectural services
  • Concentrating development in compact receiving areas can reduce the cost of providing infrastructure
  • Well-planned receiving area neighborhoods appeal to potential buyers
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