Orange County NC Website
3C <br /> ISSUE PAPER <br /> ALLOWING DENSITY BONUSES FOR OPEN-SPACE DEVELOPMENTS <br /> Background <br /> The Rural Character Study Committee has recommended the use of Open-Space Developments <br /> as a means to protect the County's natural, agricultural, and visual resources. The Committee has also <br /> recommended incentives for property owners/developers who choose to protect open space within their <br /> development projects. The primary incentive recommended is a density bonus. However, some citizens <br /> have argued that density bonuses are not necessary for Open-Space Developments. They argue that the <br /> natural tract"yield"should be the density of development allowed,and that-there are incentives inherent <br /> with the Open-Space Development style(design and service efficiency,lower infrastructure costs,etc.)that <br /> make density bonuses unnecessary. <br /> The Case for Density Bonuses <br /> Because Open-Space Developments represent something new and different for many developers <br /> of conventional subdivisions, proponents of density bonuses argue that incentives are needed to open the <br /> door and make developers and financial institutions willing to change from the old style. <br /> The Rural Character Study Committee density bonus is part of a sliding scale, where the greater <br /> the open space preserved, the greater the density bonus. The bonus is coupled with a proposed <br /> "disincentive"for conventional subdivision development-an increase in the minimum required lot size for <br /> conventional development from one acre to two acres.Property owners/developers who opt for Open-Space <br /> Developments can "regain" or even emceed the maximum one-acre density, depending on the amount of <br /> open space protected. Beginning at a starting point of 20% open space and 0.8 lots per acre, developers <br /> would realize a density bonus of 0.1 lots per gross acre for every additional 10% of open space protected. <br /> At 40% open space, the development density would equal the one-acre lot maximum density. The scale <br /> stops at 70% open space, which allows 1.3 lots per gross acre in the development. <br /> Studies to date have indicated that density bonuses must be of a substantial lot yield in order to <br /> generate response from the development community.Bonuses in the range of 10-15%in some jurisdictions <br /> have not generated use of this development style. <br /> The Case Against Density Bonuses <br /> Opponents of density bonuses base their case on three factors: (1) that the natural carrying <br /> capacity of the tract should not be altered; (2) that there are ample incentives for Open-Space <br /> Development use without density bonuses; and (3) that the needed bonus is so great that it turns rural <br /> projects into projects with urban scale. <br /> The first factor relates to the "yield plan". This concept ties project density to the site's natural <br /> capacity. A conventional subdivision design is done to generate the number of lots that could be created <br /> and served with adequate sewage disposal sites. That number then becomes the density for the Open- <br /> Space Development design.This means that tracts with severe environmental constraints will have a lower <br /> density than tracts with few constraints. <br /> Open Space Development design,by its very nature, produces compact form. Roads are shorter, <br /> utility line expansion less necessary, and previously unusable corners of the tract are buildable. Service <br /> provision is also thus more efficient, covering more houses in less time or distance. Opponents of density <br /> bonuses assert that these incentives,once realized by the development community,will produce the desired <br /> increase in Open-Space Development style. <br />