Resolution 6527 - Laserfiche WebLink

VIII. Conclusions and Recommendations The major findings of each section are summarized below. SUMMARY OVERVIEW OF TRANSFER OF DEVELOPMENT RIGHTS A developer pursuing a project on any site will consider several issues in determining how much density to provide. These considerations include market demand for the product, physical characteristics of the site, the cost of the site and the allowable development per the zoning code. If the developer chooses to develop the site at a density below that allowed by zoning, there is no reason to explore acquiring additional development rights. If the developer chooses to consider higher density, he will evaluate whether the increased value of the development justifies the costs of the additional development rights. With higher density of development, the cost of land per square foot of building area is lower. However, the construction cost is often higher, particularly when parking must be provided in a structure. At the same time, a higher density project may support higher rents because of secure parking, project amenities, and potentially better views. Cities find TDR attractive as a means of improving the economic feasibility of redevelopment in targeted receiving areas, where the City has already determined that it wants to encourage greater housing or non-residential density, such as in a downtown or near major transit facilities. Everett has 4 zones (B-3, BMU, E-1 and MUO) that provide for a density bonus using TDR, if the City and County agree to develop an inter- jurisdictional program. This report identifies the viability of TDR in these zones. There are established purchase and transfer of development rights programs in the region that provide experience in valuing development rights. Snohomish County has some experience with purchased development rights from rural areas, but no experience to date with redemption of those rights in urban areas. There has been a more active market in King County. A rural TDR credit equals two additional receiving site dwelling units, while an urban TDR equals one additional receiving site unit. There are many more transactions at the sending ends than actual redemptions at the receiving sites. The value of development rights as purchased in the private market is much lower than the price paid through the public programs at the sending end. Based on current market data, a sending site rural TDR credit is worth$15,000. ZONING ANALYSIS Residential development is allowed in single family, multifamily and commercial zones. Allowable density in multifamily zones ranges from 20 units per acre in the R3L zone to 58 units per acre in the R-4 zone, and is unlimited in the R-5 zone. Allowable densities in the commercial zones vary from 29 units per acre in the B2-B zone to 58 units per acre in the C-1 and B-2 zones, and are unlimited in the Broadway Mixed Use zone and the EYERETT TRANSFER OF DEVELOPMENT RIGHTS STUDY FINAL REPORT PROPERTY COUNSELORS PAGE 3