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Transferable Development Credit & Pollution Reduction Credit
ProgramsOregon APA Legal Issues Workshop
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History1960’s and 1970’s 125-square mile area of La Pine subdivided into
over 12,000 lots in 200 subdivisions 1982 La Pine Aquifer Study finds high nitrate levels in
groundwater.1994 Oregon DEQ finds increasing nitrate levels
outside of La Pine.1996 7,000 remained undeveloped County receives a $157,250 Regional Problem
Solving Grant to identify regional problems and evaluate solutions.
La Pine Regional Problem-Solving Project
Engaging citizens in La Pine and local, state and federal
stakeholders in coordinated problem
solving to find “locally appropriate solutions”
Regional Problem Solving Themes
(1996) Groundwater contamination
& water quality threatened by septic systems
High water table
Existing subdivisions with unbuildable lots
Development impacts wildlife, especially deer migration corridor
Extreme wildfire potential
Poor quality roads
Lack of evacuation routes42 Square Mile RPS Boundary
Adopted Comprehensive Plan Goals for Regional Problem Solving
1. To preserve water and air quality, reduce wildfire hazards and protect wildlife habitat.
2. To create a new neighborhood that provides services efficiently, sustains economic development and reduces adverse impacts to groundwater quality in South Deschutes County.
3. To develop an equitable, market-driven system, that reduces the potential development of existing lots in floodplains, wetlands, mule deer migration corridors and areas susceptible to groundwater pollution.
4. To ensure that domestic water derived from groundwater meets safe drinking water standards.
5. To explore innovative sewage treatment and disposal methods.
$5.5M U.S. EPA grant to test innovative septic systems
Wildfire and wildlife impact mitigation programs
Creating a Transferable Development Credit Program
La Pine Regional Problem-Solving Project
544 Acres for about $500,000
Expanded La Pine UUC Boundary
Loaned Sewer District over $1 million to serve the property
Conducted extensive public outreach to create a master plan & TDC program.
TDC Program
County Purchases Federal Land and Expands La Pine Urban Unincorporated Area Boundary
Neighborhood Planning
Area
The Plan
What Could It Look Like?
What Could It Look Like?
Benefits of the New Neighborhood Eliminates need for $200 million dollar rural sewer system.
Keeps Rural areas Rural.
Purchases private property rights.
Provides opportunity for a range of housing types.
Meets Community Facility needs.
Proximity to La Pine Industrial Park.
Accommodates population growth.
Transportation:
Trip lengths shortened.
Average Daily Trips reduced along Highway 97 corridor.
Increased opportunity for walking, biking and transit.
TDC Program Goal
Encourage 1,650 owners of 3,600 “eligible” lots to sell their TDCs based on projected build out of New Neighborhood
AND
Require developers of the La Pine New Neighborhood to “buy” those credits
Neighborhood Planning Area
Transferable Development Credit Program
Definition: A credit given for a restrictive covenant granted to Deschutes County restricting the placement of a septic system on the subject property.
Transferable Development Credit
Sending Area Lot owners can sell TDCs
1 TDC per lot
1.5 TDC per lot in High Priority Deer Migration Corridor Area
Record Deed Restriction
Keep or sell lot
Participation is voluntary
TDCs sold at market rate
TDC Eligible Properties
Legal lot or parcel in the RPS study area
Not greater than 2 acres
Has (or can get) septic approval (more than 2 feet above groundwater)
Undeveloped – no dwelling
Not developed with a sewage disposal system
Transferable Development Credit
Receiving Area New Neighborhood
Developer must turn in 5.5 TDCs per net developable acre
County sells land at a discount
Participation is mandatory to develop
Developer to purchase TDC from a private landowner at market rate or County
Per lot cost determined by # of lots platted per acre
County Kick-Started the Program
Created a bank of TDCs to get the program started by:
Converting foreclosed properties to TDCs
Working with properties who owned multiple lots to sell TDCs
Actively marketed the program to property owners in sending area
ResultsSENDING AREA
43 TDCs from private property owners (35 lots)
97 TDC from County owned lots (76 lots)
Restrictive covenants recorded on 111 lots
3500 lbs of nitrate eliminated per year
RECEIVING AREA
106 TDCs assigned to Quadrant 2c (Pahlisch)
32 acres developed for residential use on La Pine Sewer
TDC Amendments: 2005-2006
• Program worked with low land prices. After land prices increased, the program slowed.
• National Demonstration Project to test innovative septic systems & USGS Groundwater Assessment results parallel to the rising land prices changed program focus to reducing nitrogen loading from existing septic systems
• Convened 17+ member Advisory Committee
• Recommended Amendments to create a Pollution Reduction Credit Program
• BOCC adopts amendments in June 2006
• Pollution Reduction Credits created when an existing system is upgraded (owner would own a PRC to sell to developer), or
• When a Neighborhood Planning Area developer pays into the Groundwater Partnership Fund
Part 1: Create a Pollution Reduction Credit
Transferable Development Credit Amendments
Pollution Reduction Credits
Neighborhood Planning
Area
Transferable Development Credit Amendments
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Neighborhood Planning
Area
Transferable Development Credit Amendments
Developer Obligations
Part 2: Timing of Pollution Reduction Credits
Pollution Reduction Credits obligations recorded on final plat approval for new subdivisions in the Neighborhood Planning Area
Obligations must be met prior to issuing building permits
Transferable Development Credit Amendments
• Number of pollution reduction credits apportioned across the entire Neighborhood Planning Area
• Cost of the partnership fund for paying for credits instead of installing them– $7,500 per credit (about half
the cost to upgrade a septic system)
– Partnership fund set high to create incentive for developers to retrofit instead of paying
– Cost based on data from the La Pine National Demonstration Project and currently available technologies
Resolution Details
Transferable Development Credit Amendments
Transferable Development Program Changes:
(OLD)Transferred Development:Prevents pollution from new
development
(NEW)Pollution Reduction:Reduces pollution from
existing systems
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Tentative Plat for Quadrants 2a, 2b & 2d (2013)
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Neighborhood Planning
Area
Findings and Decision issued November 1, 2013
• Developer obligated to provide 534 Pollution Reduction Credits
• Proceeds will help retrofit standardized septic systems & other groundwater protection programs
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Conclusion
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Neighborhood Planning
Area
• Program has evolved over time due to land prices, National Demonstration Project & USGS Assessment
• City of La Pine will take over planning jurisdiction in early 2014 & maintain the program – primarily PRCs
• Program may change if Goal 11 Exception for sewer is approved & installed
• Should the program be changed for Neighborhoods 3 & 4?
