Current through Register Vol. 56, No. 18, September 16, 2024
(a)
The analyst shall provide a value estimate that identifies a range of raw land
value a developer is willing to pay per unit of development in the receiving
zone, and discusses how the estimate was determined, including a demonstration
that at least the following factors have been taken into consideration:
1. The infrastructure needs in the proposed
receiving zone identified in the Capital Improvement Program and Utility
Service Plan developed pursuant to
40:55D-140 and the effect of said
needs on development potential in the receiving zone. The discussion shall, at
a minimum, include:
i. The availability and
need for infrastructure; and
ii.
The cost of providing needed infrastructure, including consideration of who
will bear the cost of providing said infrastructure;
2. The costs associated with demolition,
reconstruction or reuse of the existing built environment, if the receiving
zone includes areas that could be redeveloped or brownfields;
3. The effect of including the number of
affordable housing units proposed in the draft development transfer element in
the receiving area;
4. The costs
associated with any impact fees that the municipality has established pursuant
to statute in the receiving zone; and
5. The costs associated with the site plan,
subdivision, and TDR credit utilization processes set forth in the
municipality's development transfer plan element, if said costs are deemed to
be above and beyond typical costs associated with attaining development
approvals.
(b) An
analysis of sending zone transferable development rights and receiving zone TDR
credit values shall include at least the following:
1. A range of values realistically attainable
for the sale of transferable development rights at the current time and market
conditions;
2. An estimated range
of transferable development right values, which is derived from the difference
between the base zoning market value and the market value restricted and
reported as a per unit of development value. If available, past comparable
sales may also be used in determining a range of transferable development right
values;
3. An estimated range of
TDR credit values based on either a conversion of the above per unit of
development right value and the transfer ratio or past comparable sales of
credits.
4. A discussion of the
rights represented by the value estimates and resultant changes in the
authorized density and use of the unrestricted versus the restricted
property;
5. A discussion of the
market conditions that would cause deviation from the estimated average TDR
credit value; and
6. A summary of
major points, which support the transferable development rights and TDR credit
value ranges.
(c) Given
the analyses of the receiving and sending zones conducted pursuant to
5:86-2.6 and 2.7, the report shall
address the viability of the transfer of development rights program and shall
include, but not be limited to, the following:
1. An opinion as to whether the receiving
zone can accommodate the number of TDR credits that will be generated based on
the number of transferable development rights allocated in the sending zone and
the transfer ratio;
2. An opinion
as to whether existing or anticipated future market demand supports the
proposed use and density in the receiving zone;
3. An opinion as to whether the market in the
receiving zone can bear a value for the TDR credits that "is likely to" provide
most sending zone property owners with the market value of the transferable
development rights;
4. An opinion
as to whether the purchase of all of the TDR credits that will be generated
from the sending zone is economically feasible given the past, current and
anticipated future market demand for the density and use proposed in the
receiving zone;
5. An opinion of
whether the estimated range of transferable development right and TDR credit
values, taking into consideration any fees associated with the transfer process
set forth in the municipality's development transfer plan element, are
reasonably likely to result in participation by sending area
landowners;
6. An opinion as to
whether the transfer ratio, set forth in the municipality's development
transfer element, supports both the sending and receiving zones, including:
i. Consideration of what land value a TDR
credit represents in the sending zone;
ii. Consideration of the varying uses and
densities that can be achieved by using TDR credits in the receiving zone;
and
iii. If the transfer of
development rights program includes multiple municipalities, differences in
land values among the participating municipalities shall be reflected in the
transfer ratio set forth in the municipality's development transfer element and
shall be a consideration in the market analysis report; and
7. An analysis of whether the
proposed sending and receiving zones are of an adequate size and distribution
of ownership to prevent either zone from having an unfair market
advantage.
(d) For a
transfer of development rights program to be deemed viable, the results of the
real estate market analysis shall ensure that there is a reasonable basis for
concluding that the proposed system will succeed in transferring development
potential from the sending zone to the receiving zone. If said conclusion
cannot be made, the community shall investigate modifications to the transfer
of development rights program so that will be successful in transferring
development potential.
