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8 2008, Jeffrey Dorfman TDRs in Oconee County: The Issues Jeffrey H. Dorfman The University of Georgia ---PAGE BREAK--- 8 2008, Jeffrey Dorfman Why Manage Growth? Some growth will come to your city or county whether you want it or not. Some growth won’t come to your city or county no matter what you do. Then there is a middle ground you can impact This part will decide your fate ---PAGE BREAK--- 8 2008, Jeffrey Dorfman Economic Benefits of Farm and Forest Lands These lands produce valuable products for consumers, generate jobs and tax revenues 1/6 of all jobs and gross state product in GA These lands attract businesses and families These lands also provide a net surplus to local government finances ---PAGE BREAK--- 8 2008, Jeffrey Dorfman Economic Benefits of Green Space Green spaces increase property values of surrounding land Green and open spaces can provide environmental amenities for free If green spaces contribute to quality of life, you attract people and jobs to community ---PAGE BREAK--- 8 2008, Jeffrey Dorfman Development by Type Many counties and cities think that growth and development mean an increasing tax base and better financial health for the local government. Unfortunately a growing tax base is not enough to guarantee financial health, you must get revenue to grow faster than expenditures. ---PAGE BREAK--- 8 2008, Jeffrey Dorfman Revenues to Cost by Land Use Using results compiled by AFT, the national averages are: Residential: $0.87 Commercial/Industrial: $3.45 Farm/Forest/Open: $2.70 These figures are of revenue for each $1 of expenditures. ---PAGE BREAK--- 8 2008, Jeffrey Dorfman Some Southeastern US Results Revenue:Expenditure Ratios $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 Resid. Comm. Farm/for. Oconee Hall Thomas Carroll Jones Cherokee Union (NC) Leon (FL) ---PAGE BREAK--- 8 2008, Jeffrey Dorfman School Break-even Home Values 0 200 400 [PHONE REDACTED] 1200 3/4 kids 1 kid 2 kids 1000 $ Oconee ---PAGE BREAK--- 8 2008, Jeffrey Dorfman Development Patterns Development patterns have an impact on the cost of service delivery: sprawl is expensive to service. The same growth done more densely and contiguously saves both money, farmland, and provides environmental amenities. New Jersey, South Carolina, California studies ---PAGE BREAK--- 8 2008, Jeffrey Dorfman How to Change the Numbers Cost of service goes down by 50% of land savings (use half the land, save 25%). Avoid leapfrog development. Build where infrastructure already exists (infill is much cheaper than extensive growth). Multifamily is less expensive per unit until density gets very high. Design so service costs are low. ---PAGE BREAK--- 8 2008, Jeffrey Dorfman Transferable Development Rights Sending Area (Farmland, natural area,historic site) Receiving Area Development Rights ---PAGE BREAK--- 8 2008, Jeffrey Dorfman Landowners: retain land & continue traditional uses are compensated for lost development potential participate in the program only on a voluntary basis. Developers: Can build innovative projects Gain certainty over their plans at the cost of purchasing TDRs. Communities: preserve green space at lower cost save on service costs vs. developed land Why use TDRs to preserve green space? ---PAGE BREAK--- 8 2008, Jeffrey Dorfman TDRs can be used to protect resources such as: agricultural land groundwater recharge areas wetlands woodlands road frontage ---PAGE BREAK--- 8 2008, Jeffrey Dorfman TDRs can direct growth to: areas in need of revitalization areas where infrastructure exists other areas where growth is desirable ---PAGE BREAK--- 8 2008, Jeffrey Dorfman A TDR Program needs: well-defined goals significant public input sending & receiving areas formula for allocation & use of development credits incentives review & adjustment process ---PAGE BREAK--- 8 2008, Jeffrey Dorfman Successful TDR programs are: based on market analyses incorporated in zoning code & provide only means to increase density used with other land preservation strategies ---PAGE BREAK--- 8 2008, Jeffrey Dorfman TDR Bank a matchmaker between sellers & buyers a buyer of last resort a means of inspiring confidence in the program a record keeper can be publicly or privately funded ---PAGE BREAK--- 8 2008, Jeffrey Dorfman Possible Other Government Tools Zoning Standards Impact fees Incentives (time, approval, differential fees) PDRs Time Infrastructure ---PAGE BREAK--- 8 2008, Jeffrey Dorfman Jobs, Commuting, and Home 31% if workers in Rural South work in a different county than where they live. 52% of employment growth in metro areas was from in- commuters. 27% of employment growth in rural areas was from in- commuters. jobs ≠ housing growth Source: Mitch Renkow, NC State ---PAGE BREAK--- 8 2008, Jeffrey Dorfman Conclusions A TDR program could have benefits in Oconee County. Need to decide what to protect and what to allow. TDRs will not be a cure-all. ---PAGE BREAK--- 8 2008, Jeffrey Dorfman Other Resources To see similar slides to those printed here and other graphs, reports, and resources on the economics of growth and land use, you can use the web at: www.arches.uga.edu/~jdorfman/ or landuse.uga.edu