Agenda - 08-24-2009-C2 - Laserfiche WebLink

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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