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Agenda 01/29/2008 Item #10C Agenda Item No. 1 DC January 29, 2008 Page 1 of 19 /"- EXECUTlVE SUMMARY Reeommendation that the Board of County Commissioners (BCC) evaluate and consider the Collier County Planning Commission's (CCPC) 6-1 policy recommendation in support of continually upholding the eurrent programmatic prohibition of Transfer of Development Rights (TDR) severance from illegal Sending Land property within the Rural Fringe Mixed-Use District (RFMUD) OBJECTIVE: That the Board of County Commissioners evaluate and consider the CCPC's policy recommendation in favor of upholding the existing programmatic prohibition ofTDR severance from illegal Sending Land property within the RFMUD. CONSIDERA nONS: --- On November 27. 2007, during the BCC regular meetmg under County Manager's Report Item lOP, staff presented the Board with the requested illegal lot analysis companion with [{)Ur policy options germane to the subject illegal lot issue. A.fter being presented with the potential policy recommendations, tbe Board discussed the various possibilities and came to a unanimous agreement that policy option three (proportional severance of "developable" illegal lots) was the most practical and should be evaluated by the CCPC prior to giving any fOlmal policy direction. On December 20, 2007, during the CCPC regular meeting under Hem 8E, staff presented the aforesaid Board direction to the Planning Commission lor evaluative purposes. After extensive discussion, the CCPC ultimately agrecd with the initial staff recommendation in relation to upholding the existing prohibition of TDR scverance from determined illegal Sending Land lots. The CCPC agreed (6-1) that - from a policy perspective- the existing programmatic administration with respect to illegal lot TDR severance ineligibility should not be reinvented for the benefit of one illegal Jot, i.e., the subject lot at issue does not warrant a drastic policy change. As directed, the CCPC evaluated the subject issue from a policy standpoint and did not delve into the individualized origin of the issue which stems directly from a Public Petition that was initiated by an owner of an illegal lot on September II, 2007 during a BCC regular meeting under Item 6F. The CCPC generally noted that any potential changes germane to RFMUD illegal lot policy reconfiguratiol1 (relative to severance eligibility) should be vetted through the proper public hearing process previous to implementation. In seconding a motion to adopt policy option four (prohibiting illegal lot severance), Plmming Commissioner Mark Strain stated that "the system is not broken, it is not proven to be broken, and a knee-jerk reaction to one absurd request for a 10-foot strip does not designate the need to go forward and change the system at this time." Staff noted on the record that the subject issue began as the above mentioned Public Petition and provided recommended direction with regard to the owner submitting a request for an Official ~. Interpretation (OI) through the Zoning & Land Development Review Department (an OI of this nature would be evaluated by both Zoning and Comprchensive Plmming Department given the Agenda Item No. 10C January 29, 2008 Page 2 of 19 inexorable linkage between the issues as it relates to illegal lots and the RFMUD TOR severance eligibility). If the 01 ultimately aligns with the provided staff and CCPC recommendation, the subject property owner would be eligihle to take thc issue hefore thc Board of Zoning Appeals (BZA) via public hearing. If the cunent recommendation is upheld by the BZA, the suhject property owner has the right to continuaJly pursue this issue within an altemative adjudicative proceeding. FISCAL IMPACT: There is no quantifiable fiscal impact associated with this issue. GROWTH MANAGEMENT IMPACT: The joint staIf and cepc recommendation aligns with cxisting programmatic administration in conjunction with being consistcnt with the letter and spirit of the growth management per ('olllprehcnsi\/c Planning .;talT ln1erpr~lalion. LEGAL CONSiDERATIONS: The County Attomey Of lice has reviewed this Executive Summary and concurs with staff- JAK RECOMMENDATION: That the Board of County Commissioners consider the Planning Commission's policy recommendation upholding the existing programmatic prohibition of TOR severance from illegal Sending Land property within the RFMUD. PREPARED BY: Joe Thompson, Senior Planner, Comprehensive Planning Depmiment Item Number: Item Summary: Meeting Date: Page I of2 Agenda Item No. 10C January 29, 2008 Page 3 of 19 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS iDe Recommendation that the Board of County Commissioners evaluate and consider the Piannl~g Commissions policy reconuilendation in :o,upport of continually upholding the current programmatic prohibition of Transfer of Development Rights (TOR) severance from illegal Sending Land property Nlthlrl the Rural Fringe Mixed Use Dir,;tnct (RFMUD) (.toe Thompson. Ssniol Planner, Compr(~hensive Plai'\ning, CDESi 1129/2008900:00 P,M Prepared By ~Joe ~hompson C;:.:;mmunitv Development & environmental Services Planner Do'lt!~ Appro,"'cd By Comprehensive 17f-<inni:1g 12/26/2007 :2;:42:45 PM i~;ff V:iatzf,CIW -:':'CUi"'iry /:,ttorney ;\ssis:an\':::,<'llJ:1t'y Att,FPev Date :\PPI'oved By :::nut'VV b,UOl'nf:y ':.'Jj'fice i2/?!:wm07 10:55 J\IJ; Marl,:,; ne Stew<olrt Community Development & Environmental Services :::.;;e::>lt!,rE;' Secretary C,~te Community De-v*klpment & Environmental Services Admin. 1i7f2008 10:10 AM Approved By Judy Puig Community Development & Environmental Services Operations Analyst Community Development & Environmental Services Admin. Date Approved By 1/71200810:37 AM Randall J. Cohen Community Development & Environmental Services Comprehensive Planning Department Director Date Approved By Comprehensive Planning 119/20086:47 AM Mike Basi, Ale? Community Development & Environmental Services Principal Planner Date Approved By Zoning & Land Development Review 1/11/20088:07 AM Joseph K. Schmitt Community Development & Environmental Services Community Development & Environmental Services Adminstrator Date Community Development & Environmental Services Admin. 1116/20081:01 PM Approved By tile:IIC:\Agenda Test\Export\99-January%2029, %202008\ I O. %20CO UNTY%20MANAGE... 1/23/2008 Page 2 of2 Agenda Item No. 10C January 29, 2008 Page 4 of 19 OMS Coordinator OMS Coordinator Date County Manager's Offfce Office of Management & Budget 1/17/20088:41 AM Approved By Mark Isackson Budget Analyst Date County Manager's Office Office of Management &. Budget 1/1B/2008 8:35 AM \pproved By James V. Mudd C Qunty Manager Date Board of County Commissioners C-:}unty Man8ge(~, Offtce '1/20/2008 10:59.AM ti le:IIC :\Agenda T est\Export\99-J anuary%2029, %202008\ I O. %20COUNTY%20MANA G E... 1/23/2008 Agenda Item No. 10C January 29, 2008 Page 5 of 19 STAFF REPORT Request that the Collier County Planning Commission, through formal direction from the Board of County Commissioners, evaluate and consider the feasibility of Policy Option 3 as it relates to the potential inclusion of determined illegal Rural Fringe Mixed-Use District (RFMUD) Sending Land property into the TDR program ._---~-~---~._--_._-_._----_._--_.__.__._------_._....,._-_.-,-.~._----_.-- .--_._----_._.~--.~.,.._-_._. ._".-- OBJECTIVE: That the Collier County Planning Commission, through formal direction !Tom the Board of County Commissioners, evaluate and consider the feasibility of Policy Option 3 in relation to the potential inclusion of illegal RFMUD Sending Land property into the TDR program for the purpose of severance participation. BACKGROUND: On September II. 2007 during the BCC regular meeting nnder Pnblie Petition ltcm 6F. M1'. Jim Schulze petitioned the Board to allow his less than lIve acre illegal RFMUD Sending Land property TOR severance eligibility. In Mareh of 2006, M1'. Schulze submitted a severance application fiw the subject illegal lot to Comprehensive Planning Department stalT who denied the petition. The Board directed stalT to research the issue brought fOlth by M1'. Schulze and to come back with a detailed evaluation as it related to illegal lots and TOR severance eligibility. On October 9, 2007 during the BCC regular meeting under the County Manager's Report, Item lOA (Executive Summary attached as Enclosure A) stafT brought the issue of illegal RFMUD Sending Land lots back to the Board as requested for the purpose of providing a detailed background and establishing a staffrecommendation germane to M1'. Schulze's requested Board action, i.c., pem1itting illegal RFMUD Sending Land properties TDR severance eligibility. The staff recommendation was to continually uphold the current prohibition on TDR severance from determined illegal lots. The rationale behind the staff recommendation stems primarily from Land Development Code (LDC) zoning standards. Illegal RFMUD Sending Land lots are properties that were created as lots of record subsequent to the underlying Agricultural zoning standards of one (I) dwelling unit per five (5) acres (as established on October 14,1974). Since the subject illegal property was created in its current form (0.34 acres) after the zoning standards were already in place, there is no residential density associated with the parcel. After extensive discussion between the Commissioners, staff and three registered public speakers, including illegal lot property owner M1'. Schulze, the Board ultimately directed staff to conduct a land use analysis relative to establishing the number of illegal lots within the RFMUD Sending Land. In addition, the Board also directed staff to design and bring back policy options with respect to the potential inclusion of illegal lots into the TDR program for severance purposes. Agenda Item No.1 OC January 29, 2008 Pa~e 6 of 19 On November 27, 2007, during the BCC regular meeting under the County Manager's Report Item lOP (Executive Summary attached as Enclosure B) staff presented the Board with the requested illegal lot land use analysis companion with four illegal lot policy options. Options onc through three were designed to allow illegal lots TDR severance participation (all applicable policy options are provided in the aforesaid Executive Summary titlcd as Enclosure B). Policy option four was also prcsented as the initial staff recommendation previously brought f{)rth at the October 9. 2007 BCe meeting, i.e., as referenced before, staff recommended to uphold the existing prohibition of TOR severance from illegal lots given they do no have any residential density. After bcing presented with the four mentioned policy options. the Board discussed the item and came to a unanimous agreement that policy option three should be evaluated by the cepe prior to giving any lonnal policy direction. As stated in the provided Executive Summary within Enclosure S, option three is designed to allow developable (from a propeJiy si~e and lot configuration perspective) illegal lots proportional or one (I) base credit TOR severance capability. Per Board direction, the recommended option three should allow for proportional TOR severance. [n addition. the Board recommended that only developable illegal lots in existence as of June [9.2002. i.e., RFMUD GMP adoption datc, would have eligibility. GROWTH MANAGEMENT PLAN IMPACT: Inclusion of illegal lots or parcels into the RFMUO's TDR program is inconsistent with the Future Land Use Element (FLUE) of the GMP and would require a GMPA and subsequent LDCAs. LEGAL CONSJDERA nONS: The County Attorney Office has reviewed this Staff RepOli and concurs with staff. - JAK FISCAL IMPACT: There is no quantifiable fiscal impact associated with this issue; however, the required amendments to the GMP and LDC will require extensive staff time, possible legal advertising costs, other attendant costs, and the costs associated with the unknown impacts on other projects which could be deprioritized as a result. RECOMMENDA nON: Staff recommends option 4 as described in the Executive Summary within Enclosure B. Agenda Item No. 10e January 29, 2008 Pa~e 7 of 19 PREPARED BY: Date: JOSEPH THOMPSON, SENIOR PLANNER, COMPREHENSIVE PLANNING DEPARTMENT APPROVED BY: _~__~ Dale: ____~_ RANDALL COHEN, AICP, DIRECTOR COMPREHENSIVE PLANNING DEPARTMENT APPROVED By:_____________________ Dale: ~_____._______ MICHAEL BOSI. AICP. PLANNING MANAGER. COMPREHENSIVE PLANNING DEPARTMENT APPROVED BY: Date: ."--..__._-,._-------_...--_._~_._--~ -~---'------ JOSEPH SCHMITT. ADMINISTRATOR COMMUNITY DEVELOPMENT & ENVIRONMENTAL SERVICES DIVISION Agenda Item No. 10C January 29, 2008 Pa;lie 8 of 19 ENCLOSURE A: October 9,2007 BCC Regular Meeting, Item lOA County Manager's Report EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners continue to uphold the prohibition relative to the severance of Transfer of Development Right (TDR) credits from illegal nonconforming lots or parcels (properties of record that were established after October 14, 1974) within the Rural Fringe Mixed Use District (RFMUD) Sending Land OBJECTIVE: That the Board of County Commissioners (BCC) continues to uphold the aforementioncd prohibition in relation to the severancc of TDR credits from illegal non-conf()m1ing lots or parcels !propeliies of record that were established after October! 4. ! (74) that arc located within the RFMLD." Sending Land. CONSIDERATIONS: On September 11. 2007 during the Bee regular meeting, under Public Petition. Item 6F, Mr. Jim Schulze pctitioned the Board to direct staff to amend the Land Development Code (LDC) to allow for smaller than five acre lots to be eligible for TDR credits specifically any lot created after the established date of October 14, 1974. Additionally, Mr Schulze expressed to the Board that there was nothing in the code that codified the October 14, 1974 date as the date of record for lots to be deemed legally nonconforming. In March of 2006, the respective TDR participant submitted three separate severance applications to the Comprehensive Planning Depatiment (AR-9489, AR-9490, & AR- 9487). Each application represented one property - two of the properties were 2.5 acres and one 0.34 acres. Pursuant to the RFMUD TDR program eligibility criteria defined in the LDC, the subject properties could only be eligible for severance if they were legal nonconforming lots or parcels that were in existence as of June 22, 1999 (date of the "Final Order"). The properties associated with AR-9489 and AR-9490 were detennined to be legal nonconforming and processed accordingly (i.e., the severance instrument was recorded in the public record and the TDR base and early entry credits were issued to Mr. Jim Schulze). The 0.34 acre property connected to AR-9487 - folio number 437240006 - was determined to be an illegal lot which ultimately resulted in staff denying the severance of any TDRs. The impetus behind the creation of this issue stems from Land Development Code (LDC) section 2.03.07 D.4.c.i.a), which states the following: 'TDR credits generated from Agenda Item No. 10C January 29, 2008 PeJje 9 of 19 RFMU Sending Land at a rate of I TDR credit per 5 acres of RFMU Sending Land or, for those legal nonconforming lots or parcels of less than 5 acres that were in existence as of June 22.1999, at a rate of I TDR credit per legal nonconforming lot orparce!." A Background on October 14, 1974 and Legal Nonconforming Lots or Parcels: Unincorporated Collier County was previously divided into two separate plmming districts, the Coastal Area Planning District and the Immokalee Area Planning District (each with their own zoning code and planning commission). The October 14. 1974 date represents when a prior zoning code was adopted that established the minimum parcel size of five (5) acres for the agricultural zoning district within the Coastal Area Planning District. The Immokalee Area Planning District became subject to same size requirements on January 5, 1982 with the consolidation of the two respective zoning codes into a unified unincorporated County zoning code (pursuant to Ordinaocc 82-2). The previously referenced former TDR participant and current Scnding Land owner's subject propertics exist within the North Belle Meade Overlay (NBMO) which is within the abovemcntioned Coastal Area Planning District. The LDC regulates and describes a legal lot ofrecord within the definition section of the Code by providing a definition of what officially qualifies as a legal lot of record. The "lot ofrecord" definition reads as follows: "Lot of record: A lot of record is (1) a lot which is part of a subdivision recorded in the public records of Collier County, Florida; or (2) a lot, parcel, or the least fractional unit of land or water under common ownership which has limited fixed boundaries, described by metes and bounds or other specific legal description, the description of which has been so recorded in the public records of Collier County, Florida, on or before the effective date of this LDC; or (3) a lot, parcel, or the least fractional unit of land or water under common ownership which has limited fixed boundaries, for which an agreement for deed was executed prior to October 14. 1974, if within the Coastal Area Planning District, and January 5, 1982, if presently within the Immokalee Area Planning District prior to May I, 1979." Rationale for Prohibiting TDR Severance on Illegal Lots or Parcels: Given that an illegal lot or parcel (of less than 5 acres) was created after the underlying agricultural zoning district standards of I dwelling unit per five (5) acres were already in place, such properties are not developable per the LDC; as such, these parcels do not contain the development rights which were contemplated as part of the development of the TDR process. Therefore, these rights, because they do not exist, may not be severed and sold to owners of eligible receiving site as compensation for the inability of a sending land property owner to develop their property. Agenda Item No. 10C January 29,2008 Pag€j 10 of 19 The Disconnect Associated with the Creation (Jf Illegal Lots or Parcels: The disconnect associated with the creation of illegal lots or parcels stems from the constitutional separation of two different County government agencics. The Property Appraiser's Office does not verify zoning or LDC regulations previous to issuing two or more folio numbers to a property at the request of the owner. The Property Appraiser's Office allows property owners to split propeliy for the purposes of issuing a new folio number for eaeh parcel notwithstanding that the property may not meet minimum area requirements per LDC standards. COJ1Sequences of Allowing Illegal Lots or Parcels the Ability to Sel'er TDR credit: The inclusion of illegal lots or parcels into thc RFMUD's TOR program would be programmatically counterproductive (()r several reasons. Therc is an estimated 150 less than five (5) acre Sending Land parcels that may be illegal lots or parcels. If these properties wcre to sever TDR credits. each property would be processed as a five (5) acre parccl which would theoretically crcale an additional 750 acres of severable Sending Land. A.s such. the potential TDR yield of 750 acres could generate (JOO credits (redeemable density that should not ,exist per thc existing developmcnt and wning standards L This additional density could vcry easily Ilood the TDR market and drive down the price ofa credit. Further, sincc the RFMUO TOR program has developed ditferently than most TOR programs, inclusion of illegal nonconfomling lots or parcels could disinecntivize private property owner participation if these illegal lots are strippcd of development rights and the rcquisite number of credits is garnered by interested developers. Sending Land owners may opt to develop estate-sized home sites in lieu of attempting to sever TDR credits that aren't marketable based on the flood of credits linked to the theoretical severance of illegal properties. The inclusion of illegal lots or parcels into the TOR program would create a gross inequity with respect to all other agriculturally zoned illegal lots existing outside of the RFMUD. If illegal Sending Land properties were granted the ability to sever development rights, other illegal lot or parcel owners (outside of the RFMUD) could argue for the right to develop based solely upon the fact that illegal Sending properties of record are being granted severable development rights. FISCAL IMPACT: There is no quantifiable fiscal impact associated with this issue. GROWTH MANAGEMENT IMPACT: Inclusion of illegal lots or parcels into the RFMUD's TDR program is inconsistent with the Future Land Use Element (FLUE) of the Growth Management Plan (GMP). The primary purpose of the RFMUD's TDR process is to establish an equitable method of Agenda Item No. 10C January 29, 2008 Pag'!! 11 of 19 protecting and conserving the most valuable environmental lands while allowing property owners to recoup presumed lost value and development potential through an economically viable process of transferring development rights to more suitable lands. Inclusion of illegal lots or parcels into the RFMUD TDR program is inequitable (with respect to allowable development potcntial per LDC regulations) and would directly affect the economic viability of the TDR market in conjunction with potentially stifling propelty owner participation. LEGAL CONSIDERATIONS: The County Attorney Office has reviewed this Executive Summary and concurs with staff - JAK RECOMMENDA nON: The stalf recommendation is two-l()ld. For the reasons stated above, staff recommends that the Board of County Commissioners continue to uphold the aforesaid prohibition relative to the severance oj' TDR from illegal lots or parcels within the RFMUD's Sending Land. Stalf also recommends that the Board providc direction to the County Manager to direct staff to initiate intra-governmental coordination with the Property Appraiser's Office in relation to rcmedying the disconnect as it relates to the creation of illegal nonconlorming lots or parcels. Agenda Item No. 10e January 29, 2008 Pa~ 12 of 19 ENCLOSURE B: November 27, 2007 BCC Regular Meeting, Item lOP County Manager's Report EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners evaluate and consider cach option presented with respect to including less than five acre illegal Rural Fringe Mixed Use District (RFMUD) Scnding Land properties into the Transfer of Development Rights (TOR) Program for thc purposes of programmatic participation relative to TDR sevcrancc OBJECTIVE: That the Board oC County Commissioners (BeC) cvaluatc and consider each option presentcd as guidance towards formulating a policy recommendation in relation to the inelusion of less than live acre illegal RFMUD Sending Land propel1ies into the TDR Program, CONSIDERA nONS: On October 9, 2007. during the BeC regular meeting, under the County Manager's Rep0l1, Item lOA, staff responded to an issuc heard during the September II, 2007 BCC regular meeting under Public Petition, Item 6F. The issue was initiated by Mr. Jim Schulze who petitioned the Board to allow his less than five acre illegal RFMUD Sending Land property TDR program participation as it relates to severing development credit. Staff responded and recommended that the Board continue to uphold a prohibition on the inclusion ofRFMUD Sending Land illegal properties into the TDR program (all less then five acre Sending Land parcels created subsequent to October 14, 1974 - i.e., after the underlying Agricultural zoning district standards of one dwelling unit per five acres was established in the Coastal Area Planning District of the County). Given that an illegal lot or parcel (of less than 5 acres) was created after the underlying agricultural zoning district standards of I dwelling unit per five acres were already in place, such properties are not eligible Cor development per the LDC; as such, these lots do not contain any development rights to be severed under the RFMUD TDR program. After extensive discussion, the Board ultimately directed staff to determine how many less than five acre illegal Sending properties actually existed within the RFMUD. In addition, the Board directed staff to come back with various options that would include potential ways to allow the subject illegal Sending Land properties severance participation via the RFMUD TDR program. Agenda Item No. 10C January 29, 2008 Pag\) 13 of 19 Less than Five Acre RFMUD Sending Land Property Analysis: The RFMUD property analysis began with a GIS query of all privately owned less than five acre Sending Land properties. The total number of the subject properties was 256. After the initial number was gamered, staff used two eliminating factors which allowed for a more accurate evaluation with the intent of producing a precise assessment. All GIS estimated properties were cross referenced with County Property Appraiser records and properties that were noted as five acres by way of official records were eliminated. Also, all less than five acre properties that were previously deemed to be legal non-conforming (LNC) (through individual detemlinations stemming from TDR program participation) were eliminated. After the eliminating factors were applied, the number of pareels being cvaluated decreased to 189. The tinal analysis focused on the subject 189 less th,m five acre RFMUD Sending Land properties. The process for conducting LNC determinations starts with obtaining the respective property card f()r each individual parcel fi"Om the County Property Appraiser. which indicates when the subject parcel was created. The Propeliy Appraiser was able to retrieve 185 property cards (four properties did not have property cards on record). In cases where there is no propeliy card on record, the rcquisitc documentation needed for a LNC detennination is incumbent upon the propeliy owner to produce. Staff primarily relies on the property cards obtained from the Property Appraiser, but if a property owner produccs other evidence attesting to when the respective propeJiy was created, e.g., recorded deed, recorded agreement for deed, then such evidence will be taken into account when making LNC determinations. LNC Determination Results: Upon receiving the 185 property cards from the Propeliy Appraiser, Comprehensive Planning Department staff forwarded the subject property cards to Zoning & Land Development Review Department staff for the necessary LNC determinations. Subject LNC detenninations revealed the following: . 126 parcels deemed LNC (created prior to October 14, 1974) . 51 parcels deemed illegal (created after October 14, 1974) . 8 parcels deemed inconclusive, i.e., insufficient property card information . A maximum of 63 parcels may be deemed illegal (51 parcels deemed illegal plus 8 parcels deemed inconclusive plus 4 parcels without a property card on record) Option 1: Option I would allow the 51 illegal lots (up to a maximum of 63) TDR severance participation on a strictly proportional basis based off of property size. All illegal properties could sever under the same circumstances which would always yield a Agenda Item No. 10C January 29, 2008 PaOO 14 of 19 fractional credit issuance. In addition, all properties would be eligible for complete TDR utilization with respect to base and bonus credit potentiaL For instance. using Mr. Schulze's 0.34 acre illegal property as an example, the following credit structure would be applicable: . 0.34 acre parcel x 0.2 units/acre (I DU/5 acres) = 0.068 base TORs In this arrangement, the subject 0.34 acrc property could potentially yield (if all applicable credits were achieved) up to 0.272 TORs -- comprised of 0.068 base credits and 0.204 bonus credits. Optioll 1 A dvalltages: Option I would afford all illcgal lot owners equitable severancc paJiicipation. Evcry less than live acre illegal lot would only be eligible I"r proportional TDR utilization based solely olf of property size. This option would also pCI111it subject "legal lot owners the ability 10 fully paliicipate in the TDR program in relation to bcing eligible I',r all applicable credits. An advantage to fuIITDR participation deals directly with providing an incentive to subject property <JV./1KTS relative to encouraging environmental restoration and maintenance and COJ1vc)"ancc. Optioll 1 Disadvalltages: From a TDR market perspective. ti-actional credits could be deemed undesirable and would more than likely be difficult to sell to developers and investors who need to obtain TDR credits in whole number increments for redemption purposes. Additionally, there is an established Board directed and LDC codified minimum sale price of $25,000 per TDR credit. If permitted to participate in the TDR program on a proportional basis, illegal lot owners who sever tj'actional credit cannot expect to gamer the aforementioned minimum sale price. Further, staff anticipates having to amend the LDC for the purposes of codifying a policy relative to establishing a proportional minimum sale price based off the issuance of fractional TDR credit. Optioll 2: Option 2 would allow severance pmiicipation by permitting all 51 (up to a maximum of 63) illegal properties the ability to gamer one base TDR credit. Notwithstanding property size, all illegal property being evaluated would be issued one TDR - bonus credits would not be available to illegal lot participants under this potential arrangement. For instance, using Mr. Schulze's 0.34 acre illegal property as an example, the following credit structure would be applicable: · 0.34 acre parcel (and all illegal lots regardless of size) = I base TDR Agenda Item No. 10e January 29, 2008 PalJll15 of 19 Under this arrangement, the subject 0.34 acre property (and all illegal lots regardless of size) would be eligible for I TDR. Option 2 Advantages: Option 2 would also be equitablc in terms of implementation. All illegal lot owners would be given a base TDR credit. In addition, fractional TOR credits would not be an issue and all participating illegal lot owners would have a marketable TDR credit. Option 2 Disadvantages: One potential disadvantage to Option 2 revolves around the future creation of ncw illegal RFMUO Sending Land lots. In theory, a five acre Sending Land property owner could split their property into 20 (each with an individual (olio number) 0.25 acre illegal jots. Instead of severing based ofT of one 5 acre property, with an initial credit yield of 4 TOR credits, the owner has an opportunity to sever 20 TDRs fi-om the newly created illegal lots. Such a situation would become an unquestionable detriment to the TDR program. Should the Board choose this option. careful consideration needs to be Ic)cused on addressing only those illegal lots in existence as of the adoption date of the RFMUO (June 19.2(02) or the day the Board gives fonnal policy direction (in order to deter the widespread creation of additional illegal lots not cUITently in existence lor the purpose of severing more development credit). Option 3: Option 3 would only permit developable illegal lots TDR severance capability. Any illegal lot deemed undevelopable (from a property size and lot configuration perspective) would be ineligible to participate in the TDR program. For example, a ]0 foot wide lot is not developable and would be ineligible for TDR severance. The TDR credit allocation rate for subject developable illegal lots could be proportional or based on a I credit per parcel basis (referenced TDR credit allocation advantages and disadvantages described above in options I & 2). Option 3 Advantages: Option 3 would be consistent with existing programmatic administration as it relates to the severance of less than five acre LNC parcels that have participated in the TDR program. All less than five acre LNC properties granted TDR credits have been developable (based on property size and lot configuration) and all were assumed to be developable lots when the RFMUD overlay was approved. Option 3 Disadvantages: Option 3 would be viewed as a disadvantage to non-developable illegal lot owners. Agenda Item No.1 OC January 29, 2008 Pal.J} 16 of 19 Option 4: Option 4 would uphold the current prohibition of TOR severance from illegal Sending Land lots within the RFMUO. Option 4 Advantages: Option 4 would be consistent with the Growth Management Plan (GMP), and existing Agricultural zoning district standards that have existcd sincc 1974. If illegal lots became purported impediments to future cnvironmental rcstoration and maintenance activitics _ e.g., hydrological rcstoration futurc land managing agencics could purchase these propel1ies l'ia markct rate acquisition. If any ofthc illegal lots were in close proximity to managemcnt activities, they would have value and could be marketcd to interested public agencies. In addition, this option would not create an inequity IDr owners of non-RFMUD illegal lots. and would not give development rights that presently do not exist to the owners of il1egallots. Option 4 Disodvantages: Option 4 would be viewed as a disadvantage by illegal lot owners desiring to sever TDR crcdits. Inherent Issues Associated with the Inclusion of1llega/ Lots into the TDR Program: The inclusion of illegal lots of record into the TOR program would create an inequity with respect to all other categorized illegal lots existing outside of the RFMUD. If illegal Sending Land properties were granted the ability to scver development rights, other illegal lot or parcel owners (outside of the RFMUD) could argue for the right to develop based solely upon the fact that illegal Sending properties of record are being granted severable development rights. For example, an owner of a 1.5 acre property in the Estates (one that was created after Estates zoning standards were established) could argue for the right to develop based off of the illegal lot TDRs. Further, thcre is a fundamental question of appropriateness with respect to the County granting owners of illegal lots development rights they presently do not have (by virtue of processing illegal lots for TDR severance). If development rights in the form of TDR credits are going to be granted to owners of illegal lots, it's logical to suspect certain illegal lot owners will decline TDR severance participation and request the right to develop their property. If granted TDR credits, owners of illegal lots will have the right to sever TDR credits or develop the parcel itself. Illegal Lot Owner Notification: If option I, 2 or 3 is approved, the inclusion of illegal RFMUD Sending Land lots would require a Growth Management Plan Amendment (GMPA) and subsequent Land Development Code Amendments (LDCA). Many owners will not be aware of their Agenda Item No. 10C January 29, 2008 PatJ3l17 of 19 impending TDR eligibility until the formal GMPA process starts and the requisite public hearings commence. As such, each owner of illegal property (including those lots without a property card and ones deemed inconclusive) should be notified following any BCC policy direction regarding illegal lot TDR credit eligibility. Requirements for Including Illegal Lot", into the RFMUD TDR Program (option 1 or 2): . Amend respective sections of the GMP - Future Land Use Element . Develop implementing criteria through amendments to the LDC . Develop and implement various administrative modifications . Project Schedule to devclop and publically vet thc amendments . GMP amendment cycle - transmittal hearings projected for March, 2009 . LDC amendment cycle commencing July, 2009 FISCAL IMPACT: There is no quantifiable tiscal impact associated with this issue; however. the requircd amendments to the GMP and LDC will require extensive staff time. possible legal advertising costs, other attendant costs, and the costs associated with the unknown impacts on other projects which could be deprioritizcd as a rcsult. GROWTH MANAGEMENT IMPACT; Inclusion of illegal lots or parcels into the RFMUD's TDR program is inconsistent with the Future Land Use Element (FLUE) of the GMP and would require a GMPA and subsequent LDCAs. LEGAL CONSIDERATIONS: This Executive Summary is for the purpose of presenting the Board with the background for a policy discussion by the Board, and as such raises no legal issue. This Office will work with staff to implement whatever direction the Board may give. - JAK RECOMMENDATION: Staff recommends option 4 as described; in an alternative scenario whereby option 4 is not acceptable to the Board, staffrecommends option 3. 1.~4~~~~~~~~~~~~~~ determinations that illegal lots created after October 14, 1974 have no development rights based upon zoning criteria. 2. In the alternative, although not supported by County Comprehensive Planning staff, as it would completely disregard standards set forth in the GMP and LDC, the BCC should consider option 3. Agenda Item No. 10C January 29, 2008 PaM 18 of 19 ENCLOSURE B CONTINUED: ; I 'L ~--^ . ; _ t: 1_, i""i, L :"~ORTH LCH3 IN ,?'" =' tJ T H SEt\IDING LAi'JD BELLE i.dElIDE', ,:r X:;;~'"';""'~--""""VX~x. r:-o-- >",v;<(:(>,,:.Yx;'/'~' _;".'>_'~ ')r ,- ,"', X)~,,<',~ _F, '-, ;-'~'-'~"'''\/:)':&-.?).(\/0~y. . . . " '. -, 'It . . ':1 ;'[ ~, --..::H _,-J (.1 . . tlf :~. ! IJJi c' ~~: I" Fi c~ i ..{Pt1 Legend ~c.aj, rLI3g;;!:Lo~, RF. s.e,nOlng L~'~ ~= . Rete/v!:'lg ~3rd r;,= . ~Jtn:':'"a' Lard o 0.5 1 2 MHes _:-.~..--..,---~-, ''-.,...... '-. ENCLOSURE B CONTINUED: IlLEC,AL lOTS IN (NORTH RUR,'H FRIN(3E LE:: :~:)U\F'-, r;~>(:;'::j~:'::\, -X"';.X'>";.")"'; ~;<B:::~;8 <./'.::<::<:::-::< [~~t~ ~:/>~~~ _~_ ",Xj,.A..... ....)( ", ~XX" . ;:~{:0.:../:..;::.~ . .. 9~O_'::-~d>l GATE Bt..VD \II Agenda Item No.1 DC January 29, 2008 PalJj 19 of 19 SENDING LAND MIXED USE DISTRICT) , r:> :> id , " ," ~. ~ ;;'~i 01 >i :~tl l,J " ~, 11 v j;i I .!Y''''DALL~"1LVD I .---. ~_ 61U.,; ~<15"- Legen d I I~_~' R:la:ls z <;! '" <<. 5 tr.. ~ _1"e..;JalLaili F.f . S'Eq~[ng ,-3nd fif-R'i!C'i!h,'l'lg Lalld F.f-N-::JlralL3nli o 0.5 1 "'__:t.~~ 2 Miles