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Item 9 MEMORANDUM May 13, 2005 TO: Planning and Zoning Commission FROM: Ken Baker, AICP, Planning Director SUBJECT: Discussion Item – Amendment to the Zoning Ordinance – Creation of a Southlake Conservation and Development Program. ____________________________________________________________________________________ In an on-going effort to implement several recommendations of the Southlake 2025 Plan and in conjunction with the other amendments to the Zoning Ordinance, staff is proposing the creation of a Southlake Conservation and Development Program. The program, together with the Rural Conservation Subdivision District and a future Employment Center District would implement the Purchase of Development Program as proposed in the Southlake 2025 Plan. Attached with this memo is a draft copy of the proposed Section 49 – Southlake Conservation and Development Program of the Zoning Ordinance 480, as amended. Please review the attached document for a discussion at your May 19, 2005 regular meeting. Please feel free to give me a call if you have further questions. ACTION NEEDED: None at this time. ATTACHMENTS: Proposed Section 49 – Southlake Conservation and Development Program. City of Southlake Department of Planning 49-1 SECTION 49 SOUTHLAKE CONSERVATION AND DEVELOPMENT PROGRAM 49.1 RELATIONSHIP TO THE COMPREHENSIVE MASTER PLAN The Southlake Conservation and Development Program (CDP) implements the following recommendation of the Southlake 2025 Plan – Phase II: • Create a Purchase Development Rights (PDR) program as a voluntary open-space protection technique that compensates a landowner from limiting future development on the land. Consider allowing developers developing under the EC district to use purchased development rights from areas designated Rural Conservation Subdivision and apply the rights to the Employment Center 1 (EC- 1) district. 49.2 PURPOSE AND INTENT The purpose of the Southlake Conservation and Development Program is: • To protect open space and preserve a portion of Southlake’s agricultural environment and rural character; • To preserve in perpetuity unique or sensitive natural resources such as groundwater, floodplains, wetlands, streams, steep slopes, woodlands, wildlife habitat, and agricultural/ranching areas; • To offer an incentive for the preservation of open space; • To compensate landowners for limiting future development on their land; • To provide an option for utilizing the free market system for financing open space preservation, thus avoiding direct cost to the taxpayers; • To provide an option for preserving open space in exchange for more intense development in the EC-1 or EC-2 zoning districts. 49.3 DEFINITIONS Conservation Easement - A voluntary and permanent deed restriction that limits development of property for the purpose of protecting and preserving a portion of Southlake’s natural resources, including agricultural and ranching areas. The landowner retains title to the property and the easement applies to all subsequent owners. Development Rights - The rights to subdivide and develop land for any and all residential, commercial, and industrial purposes and activities that are not incidental to agricultural use. Qualifying Party – An organization approved by the city to hold conservation easements. Qualifying parties may include neighborhood associations, land trusts, conservation commissions, governmental entities, or other organizations pursuant to Section 170(h) of the Internal Revenue Code of 1986, as amended. 49-2 Receiving Site – The property to which development rights are transferred. Sending Site – The property from which development rights are transferred. 49.4 APPLICABILITY The CDP is voluntary and open to all landowners in Southlake. All properties in the city of at least 5 acres are eligible to sell or donate development rights, regardless of land use or zoning designation, except properties under the ownership or control of the Corps of Engineers, State of Texas, or City of Southlake. 49.5 GRANTING DEVELOPMENT RIGHTS In order for development rights to be granted, the following minimum criteria must be met: a. The applicant or applicants must agree to place the property in question in a permanent conservation easement at the time development rights are sold or donated; b. The applicant or applicants must have good, marketable, fee simple title to the parcel of land upon which the conservation easement is proposed to be imposed; c. The site of any non-conforming use shall be excluded from the parcel of land upon which the conservation easement is proposed to be imposed; d. The parcel of land in question must be at least 5 acres in size; e. All landowners of the parcel shall agree to maintain a Plan for Management of Protected Open Space, approved by the Planning & Zoning Commission, and shall implement the plan according to the approved schedule. 49.6 VALUE OF DEVELOPMENT RIGHTS The price of development rights is determined on the private market between the buyer and seller. This price is determined through an evaluation of the development potential of the sending site and transferring the gross potential revenue on to the receiving site. The increased development potential of the receiving site would be determined through a hypothetical purchase of vacant land in the amount of the transfer price from the sending site. The development intensity on the receiving site would then increase by a factor of the development potential of the hypothetical vacant site bought with the transfer price. The price is expected to fluctuate based on market conditions and development potential of the sending and receiving sites. Note: Staff will discuss various methods of determining the value of the development rights’ transfer in detail at the meeting on May 19, 2005. 49.7 PURCHASE OF DEVELOPMENT RIGHTS PROCEDURE The purchase of development rights procedure allows a landowner to sell or donate the development rights on a parcel of land to a developer or other entity, such as a conservation organization. The land is placed in a permanent conservation easement and 49-3 the development rights are either extinguished or transferred to a property selected by the developer in the EC-1 or EC-2 zoning districts. a. In order for development rights to be granted, a completed application shall be submitted by the landowner on the approved application form by the deadline established by the Planning & Zoning Commission. The landowner or a duly authorized representative of the landowner may apply. All landowners shall sign the application. The following information shall be included in a completed application: 1. Adequate identification by deed reference of the parcel of land to be considered for the conservation easement. 2. A map of the property at a scale of at least 1"=600' showing the land area to be considered for the program, as well as any contiguous acreage under the same ownership to be excluded, or a copy of a recorded plat of record, if any. 3. A United States Department of Agriculture (USDA) Natural Resources Conservation Services Soil Map and a land conservation plan for the parcel under consideration. 4. A statement by the landowner agreeing to allow inspection and appraisal of the parcel of land. 5. A list of any and all liens and encumbrances on the parcel of land and a letter from the holder of each evidencing willingness to subordinate his or its interests to the conservation easement. 6. Existence of any surface or mineral leases or easements. 7. A Plan for Management of Protected Open Space. 8. A filing fee, in an amount established by regulation adopted by the Planning and Zoning Commission. 9. All other information requested on the approved application form. b. Staff will review the application and, if complete, the application will be forwarded to the Planning & Zoning Commission for approval. If approved, the applicant may then proceed to sell or donate the development rights. c. When an agreement has been reached between the landowner of the development rights and the buyer, the landowner shall inform the city of the pending sale or donation. d. At the time of the sale or donation, the landowner shall record a conservation easement on the property from which the development rights are being sold or donated. The conservation easement shall be recorded in the appropriate county’s real property records and a copy of the easement shall be provided to the city. If the conservation easement is not held by a qualifying party, the landowner may lose certain tax benefits. e. After execution of the conservation easement, the development and use of the property on which the conservation easement is recorded shall comply with the conservation easement. 49-4 f. Executed conservation easements will be forwarded by the city to the appropriate appraisal district for reappraisal. If development rights are transferred, the city will also request the appraisal district to reappraise the receiving site. 49.8 QUANTIFYING DEVELOPMENT RIGHTS a. Development rights are expressed in dollar value. The dollar value is transferred from the sending site to the receiving site. In order for a developer to use development rights, the dollar value is converted to square footage of property by determining the square footage of property that may be purchased in the receiving area for the dollar value of the development rights. Next, the allowable floor area for the square footage is determined. This floor area is added to the allowable floor area on the receiving site. 49.9 USE OF DEVELOPMENT RIGHTS IN EMPLOYMENT CENTER ZONING DISTRICTS a. A request for use of purchased development rights in the EC-1 or EC-2 districts must meet all of the following criteria: 1. Does not exceed the limitations on density or intensity allowed by the zoning district with purchased development rights. An increase above the intensity or density allowed without PDRs shall only be gained through the use of PDRs. 2. The proposal complies with all applicable development regulations, unless that regulation is modified by the use of PDRs. 3. It is in accordance with the provisions of this chapter. b. A site plan application for a subdivision using purchased development rights shall contain a statement describing the development proposed, the existing zoning classification of the property, the amount of development rights used, and a notation of the recording number of the conservation easement recorded with the appropriate county. A final plat application for a subdivision using purchased development rights shall include a notation of the amount of development rights used and the recording number of the conservation easement recorded with the appropriate county.