On March 7^th, 2009 the Board of Directors held a special meeting at the Abingdon Library to review the new changes to the Harford County Transferable Development Rights (TDR) program, learn from knowledgeable sources what makes a good program work, and examine its potential role in a future program. 

The presenters and panel of the mini-seminar consisted of Peg Niland, HLT Director, who has had extensive and successful use preserving land with TDRs in Calvert County; Charles Day, Deer Creek Watershed Association and co-author of a proposed revision of Harford’s program; Pat Barth, Friends of Harford and expert on Maryland and nation-wide successful programs; Val Twanmoh, Special Assistant to Senator Barbara Mikulski for Harford County and an attorney with hearing examiner experience; and Bob Ward, Ward Homes, representing the building industry.

What is a TDR Program?   The simple definition: Transferring the right to develop from a designated preservation area to a more suitable location with infrastructure to support development.

Why is it so important to land preservation?  TDRs can be thought of as a way to reduce or eliminate of development in areas that a community wants to save and the increase of development in areas that a community wants to grow. In a traditional TDR program, the areas that the community wants to save are designated as "sending areas" and the locations that the community wants to grow are designated as "receiving areas.” Successful programs have many benefits:

•         Offers an incentive for preservation of prime agricultural and forestry land.

•         Provides reimbursement to the landowner who voluntarily agrees to place agricultural and forestry use covenants on the land.

•         Utilizes the free market system for financing agricultural and forestry preservation, thus avoiding direct cost to the taxpayers.

•         Guides development away from prime agricultural and forestry lands on which viable farming and forestry endeavors are practical.

•         Promotes and preserves the identity of intact rural agricultural communities where working farms and managed woodlands predominate,

•         Minimizes potential conflicts between agricultural and non-agricultural land use by providing for a functional separation of the two.

What does a successful TDR program look like? The criteria for successful programs, like those common to Montgomery and Calvert Counties:

•         TDRs make economic sense to developers.

•         Elected officials were willing to adopt significant downzoning of farmland to preserve agricultural land or maintain the demand for TDRs.

•         Large or multiple receiver areas provide bonus density for using TDRs that significantly exceeds base zoning density, and there is a market demand for higher density.

•         The demand for TDRs was carefully balanced with the total supply of TDRs.

•         County policy requires the use of TDRs for increasing zoning density in receiving areas.

•         TDRs were combined with other land preservation tools.

•         Permanent easements restrict TDR sending sites for agricultural, forestry or open space.

•         The TDR program has broad public support.

How does a successful TDR program benefit the Landowner?

•         Benefits: sell the “development rights" and retain the “residual or farm value" of land, which usually includes the ability to have a farm house and a few lots, depending on farm size.

•         The “development rights value”+ “the residual value" can meet or exceed the market value of the land.

•         Selling a few TDRs at a time provides cash for repairs, equipment, and operations while providing income tax savings.

From the Developer’s perspective:

•         Lower land cost per building unit

•         Lower engineering, site development and infrastructure costs

•         Avoids public scrutiny of density increase requests

•         Free market makes for easy TDR acquisition -  [Note:  This is where land trusts come into the picture]

•         Promotes positive public relations through partnership with farm and land conservation communities.  [Again, land trusts must be involved for this benefit]

How Land Trusts benefit:

•         Easiest preservation tool to use

•         Not dependant on federal, state, or county funding

•         Can custom purchase from landowners to meet their financial needs and tax consequences

•         Marked up resale price brings in more funding resources for future land purchases

•         Establishes a cooperative relationship with developers that often expands beyond the transaction

Unfortunately, our Harford County plan meets few of the essential criteria for a successful program.  There were discussions about a provision that would allow a qualified land trust to purchase, hold and then sell TDRs, which resulted in a board resolution not to participate in the Harford County Transferable Development Rights program as currently written.  A copy is available upon request.