Current through Register Vol. 56, No. 24, December 18, 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
N.J.S.A. 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
N.J.A.C.
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.
