TDR Ordinance information in Eric Lawrence’s own words

At the most recent Board of Supervisors meeting, the vote on the 2030 Crappy Crony Plan was postponed yet again, and board members acknowledged the need to “revisit” the TDR ordinance. This, of course, means that the same cronies who came up with the ordinance are being instructed to revise it so as to make it more palatable to the general public. The Board of Supervisors and the Planning Commission genuinely believe in the TDR ordinance as a good program.

At the risk of beating a dead horse, I’m writing about that blasted TDR Ordinance and Program again. But this time I’m letting Eric Lawrence, Frederick County’s Planning Director, do most of the talking.

On July 23, 2010 at the Charlottesville Omni Hotel, Eric Lawrence gave a presentation for the PlanVIRGINIA CPEAV’s Planning and Zoning Law Seminar on Transfer of Development Rights. You can watch a video of the presentation here. The Orange County, VA government makes the program agenda available here.

I have done my best to provide a transcript of his presentation and have posted at least the first eighteen minutes (interspersed with my commentary, of course):

I’ll tell you how we developed the ordinance–what it took to get where we are today, but aside from conversations, we haven’t actually had a transfer yet. So I just want to lay that out there.

Part of the process to get to where we are–to get an ordinance–we had to meet with a lot of representatives from our community, whether it be the farmers, the developers. And through those discussions, we found a lot of things–I guess it was an education process. And I am just going to go through a couple slides right now that sort of set the mindset as to how we got to where we are.

What we found is a lot of times a farmer has good productive land, and he is living off that land. He is creating a product; his family thrives off it. He wants to continue to farm, but the argument we’ve heard often is that “I’ve got to sell land, portion of the land or all the land, because I’ve got expenses that I’ve got to cover.

So we said, “Okay, well that’s a problem. Let’s figure out how we can work through that.”

This is incredible. People have to sell things all the time to cover life’s expenses. Sometimes that means selling their electronics, their vehicles, and even their homes. Why is it that the Frederick County government is giving special privileges to some citizens rather than others simply because they are part of a certain industry?

The big thing that we hear all the time is “My farm is my retirement. Don’t devalue it. Don’t downzone it. Leave it alone. I’ve made decisions based on that.” So we take that into consideration as we are going through the program.

The issue is, obviously–and this is an obvious one–but we always point it out to farmers: “If you sell the land to get value to pay your bills, then you can’t be a farmer anymore. Then you’ve sold the opportunity that the farm provides to you. So what can you do to help preserve that land?”

Then we said, “Okay, let’s talk to the developers.” Now, I may be saying things that are obvious, but when we started talking to people, it wasn’t all coming together, so I think it’s important to point out. And obviously a developer’s intent is to create some value out of the land, develop it into something. A lot of times he wants to increase the residential opportunities because there’s the value that he is striving for. And he recognizes the time is valuable. If he feels that today there’s an opportunity to sell land, subdivision or whatever the case is, he doesn’t want to wait what typically is about a two-year process in Frederick County to get through a rezoning exercise and get to the point where you’ve got a blessing from the Board of Supervisors. So time is money. You know, he doesn’t want to go through that lengthy process.

Why not shorten the rezoning process? How about repeal the zoning laws altogether? (Yeah, yeah, too radical…)

And the second bullet up there–the business plan–I think that’s extremely important, and that’s why we think the program we have is going to work properly. In the state of Virginia we don’t do impact fees

Thank God.

but we except proffers. So, not only, if the developer has to go through the rezoning process, you’ve got a time lapse but you also have an expectation to get that rezoning approved, he’s got to mitigate things. He’s got to address transportation, he’s got to address your capital facilities and impacts on your schools and things of that nature. So there’s an intrinsic value that he’ll have to contribute at the end of the rezoning process just through a normal rezoning.

And then we have the County’s perspective. In Frederick County we’ve had a UDA since late ’80s, and we’ve been very proud of our UDA. And what it does is it captures most of our residential development–I’ll say the majority of our residential development. We see about 30% of the residential units are constructed in the Rural Areas of the County. We want to try to reduce that percentage. And obviously the development in the Rural Areas of the County are a by-right. There’s no opportunities to recover any of the impacts on transportation, any of the impacts on your school system, your capital facilities. Those are impacts that are normally mitigated through a rezoning process, but we’re not capturing that in the by-right development of the Rural community.

What do you think real estate taxes are for, genius?

The whole intent of the UDA was to capture the development. That’s where we can better provide services to the community. So, again, the emphasis is “Get the growth.” I mean, there’s a reasonable balance, but “Get as much growth as you can into the UDA where it’s more cost-effective for the County.”

We still have to provide the services, build the schools, but it is still a heckuva lot cheaper if we do it in the UDA then spread it throughout the County.

Prove it.

So we said, “Possible solution? The TDR program.” You’ve heard a lot about it–I don’t know if people did readings before they came in–but everybody– I was looking online the other day and there’s over a hundred TDR programs in existence throughout the country. And everybody has their pros and cons and their own experiences, so I’m going to tell you a little bit about what we encountered reflective of what the state environment is–the state code, the lack of impact fees. And to some degree the lack of impact fees is actually beneficial to a TDR program the way we’ve set it up.

And there’s your solution. (I’m just going to flip through those real fast.) The developer, obviously, if he goes and purchased TDRs, he could avoid the lengthy rezoning process. He could avoid the expense of doing a TIA, of doing preliminary engineering, of having to address the off-site transportation impacts that he would be creating.

And obviously there’s no proffers. So he doesn’t have to worry about the cash proffer which is generally accepted to mitigate the impacts.

Most important here is what I underlined. The non-stop mindset of our Board of Supervisors was “Those houses in the Rural Areas are not contributing to offset the new development impacts that they’ve created.”

That’s because your Development Impact Model is flawed. It does not take into consideration the amount of taxes paid by the property owner to the County and the State such as real estate taxes, personal property taxes, gas taxes, income taxes, sales taxes, meals taxes, and so forth.

So right off the bat–in Frederick County we use a Development Impact Model to sort of assess what the impacts are. We can break it down in the capital side of things, we can break it down in the operation side. But on the capital side, our Model suggests that there’s close to a $25,000 impact on schools–this is capital–schools, fire and rescue, recreation, parks.

Oh, poo. The latest DIM puts that number as less than $18,000 and it still doesn’t take into consideration the property taxes regularly paid by the owner. I guarantee you that the average homeowner in the Rural Areas pays more in property taxes than what he consumes in County services.

And then, that doesn’t even look at transportation.

Seriously, how many roads does the County have to build/maintain without the use of VDOT funds?

And the developer typically will–I don’t know what the real number is because everyone does magic, but typically on the development side they’ll argue that there’s a 5 to 10 to 15 thousand dollar additional transportation contribution they make to get their projects approved. So there’s significant values that you gain as a community through the proffer system. And if you’re in the Rural Areas having development, you don’t get any of that money.

Oh boo hoo.

So the County says, “We’d like development in the UDA.”

Cuz that’s where the money’s at.

“Long term it’s the vision we’d like; it’s the type of community we’d like. And it’s also the more cost-effective to operate the County.”

Sounds like someone’s budget has gotten out-of-hand.

So, let’s talk about Frederick County and our TDR program. I don’t know if people know where we are. We’re at the northern-most part of the state. Interstate 81 runs north-south through us. The City of Winchester is in the middle of us. We’re about 50 miles from Dulles Airport, 70 miles from Washington, D.C.

During the boom that everybody saw, we experienced significant growth in the commuting population. Statistically we are our own MSA. We actually have more people commute into Winchester and Frederick County for employment than commute to Northern Virginia. I suspect over time that’s going to change because of our proximity to the Northern Virginia technologies and things like that.

And it’s much more affordable out where we are.

Not if you central planners get your way.

But we’ve got about 75,000 people based on the Weldon Cooper numbers. In the City of Winchester I think there’s about 25,000. So the ballpark is about 100,000 people in this community. About 89% of our county is still identified through comp. planning as Rural Areas. So that says that our UDA covers–actually the UDA covers about 10% of the county. We have a certain–we call it a SWSA–but it’s a sewer service area for industrial only that stretches a little bit out of the UDA. But you can get a sense (the bottom bullet there), approximately 12,000 acres of Rural Areas land has been developed and lost since 2000.

It’s not lost. The land is exactly where it has always been.

Easy way to get there: 2500 building permits. Our density is one house per five acres. But you can see, just generally speaking…

[He points to the screen to show were the UDA is located and where the industrial area has been stretched up the I-81 corridor. “But we don’t allow housing up there,” Mr. Lawrence says. “But most of our residential growth we try to concentrate in that area of the county.” He points to the area beside the City, east of I-81.]

How did we get to TDR? Well, in the summer of 2008, our Board of Supervisors said (and this is part of the planning, everybody who is part of planning–you get this one), “Okay, I want you to hold a public hearing. Downzone the county. Downzone the Rural Areas of the county. We want to go from instead of one house per five acres, I want a one per ten acre.”

So, we held a public hearing to get input. And let’s just say that before we even opened the doors that night, we knew that we were going to have a problem. There’s a couple people in here that used to work with us, and you know that typically when we hold public hearings we don’t get a lot of people showing up. And when we set out for that downzoning, we filled the rooms, we filled the hallways, the people were standing outside the building. So, the Planning Commission fulfilled their expectation–we held the public hearing, and we didn’t even have to report to the Board of Supervisors. They were all standing in the room. They said, “Don’t bring that to us. We don’t want to see that.” [Laughter]

So what the Board did is say, “Okay, we’re seeing more growth in the Rural Areas than what we want. We’re not going to be able to downzone. There’s obviously not support for that.” Three or four weeks after that meeting, the Board established a subcommittee to do a real intense look at the Rural Areas and try to figure out “What can we do?”

The problem was loss of farmland. The problem was houses that were showing up there. Anybody you talked to said they didn’t like that as a community. How do we get a compromise, how do we find a point to get there?

Um, do we live in America, the land of the free, or not?

So we met for the better part of four months, every other week. We had three Board members, three Planning Commission members, I had folks from my staff, just putting all of our energy into it. We went in through everything–there was a mention about the Toolbox, the VAPA Virginia Planning Toolbox–we went through everything that we could find that’s allowed in Virginia to help manage our growth. And the UDA, obviously, we’re already doing it. And what we found is we hadn’t touched TDRs. So we started talking about the TDRs.

Part of the subcommittee we had developers participate, we had the rural farm bureau, and we had the rural land owners participate. And everyone said, “I think TDRs are where you need to go.” And so we started concentrating on that.

Ultimately we adopted a policy to the Comp Plan for the Rural Areas which included a couple of things we needed to do: health systems was one, but TDRs was the most important through the discussion. And then ultimately we created the TDR ordinance, and it was adopted a couple of months ago.

This is telling. Remember in an earlier post where I mentioned the tighter restrictions on private wells and septic systems? According to Mr. Lawrence, the Board of Supervisors set up the Rural Areas subcommittee to figure out how to impede growth in the Rural Areas. It appears that one way the subcommittee came up with to impede residential development in the area was to make private well and septic systems more expensive and complicated.

Our TDR ordinance says– Okay, in everyone’s ordinance and comp plans you always have to have your purposes and goals, and we were trying to identify them. And we said, “Providing an effective and predictable incentive process for property owners of Rural Areas and agricultural land to preserve their land. Help direct the residential growth to the UDA.” And then “How do we do it most efficiently and effectively? How do we do it so it’s not going to be cost-burdensome on the property owner, on the farming community. How it’s going to look attractive to developers.” So we had some–I guess what I call a common sense approach–but we made sure that everybody knew why we were doing this. “Let’s make it cost-effective. Let’s make it so people want to participate.”

The way we broke it down is we looked at our county. We have an Urban Development Area. We only provide water and sewer service in the Urban Development Area. We have flexible zoning for the Urban Development Area, being that there is one residential zoning district which has performance standards. So, in our UDA if you get your residential performance zoning, you can do single-family houses, townhouses, apartments. We let the property owner figure out what works for his site.

How about you do that THROUGHOUT THE COUNTY since this is AMERICA? Sorry, I’m annoyed.

So we said, “Okay, now let’s look at the Rural Areas. Let’s look at the Sending Areas–well, the areas that we want to protect.”

You mean, what your cronies want to protect and avoid paying taxes on, not what the entire county wants to protect.

We weren’t interested in being selective. It was pretty clear from the elected officials that we don’t want to look to certain regions in the Rural Areas and say, “well that’s a better piece of property to preserve.”

Bullcrap. Isn’t that why you have Limestone areas as a 1:1.5 ratio and Sandstone/Shale areas as a 1:1 ratio?

So what the Board said is, “I want you to look at everything outside the UDA and let that be your Sending Area.” And we whittled it down a little bit. We said, “Okay, it’s got to be RA zoned, Rural Areas zoned. It’s got to be outside of the UDA. Also, outside of our sewer and water service area because sewer and water service area is directed for industrial/commercial opportunities. Obviously you’ve got to show it on your map because that’s the Comp Plan requirement.” And the last two bullets are extremely important. We said, “It’s got to be twenty acres or greater in size” because we didn’t want to nickel-and-dime it. We didn’t want somebody coming in and selling one lot here, one lot there. And when we started looking at the type of subdivisions we were getting in the Rural Areas, there was typically starting at twenty acres. In Frederick County, twenty acres could be cut essentially into a total of four lots. And the last bullet is most important. We said, “Okay, you can’t sell your development rights unless you have an ordinance by-right to actually subdivide your property.” In Frederick County you have to have state road frontage before you can even talk about a subdivision. So that became an important element because we didn’t want to give somebody who has a hundred acres with no access–he can’t do a subdivision, so why give him development rights? We’re not preserving anything. The nature that he can’t do a subdivision because he has no road access inherently already protected that land from growth.

Wow. Landowners with no road access–you’re screwed. Your land has no value. Thank your local government.

We also said, “You gotta keep some densities on the Sending properties.” And this came out of the Board Chair. He said, “Hey, if somebody’s not thinking and they sell all their development rights but the one, what happens with this 300-acre parcel? That means you’re going to have a 300-acre parcel forever.

I bet the conservationists want to bonk the Board Chair over the head for that one.

So the suggestion was, okay, you keep a dwelling right for every house on your property, and for every hundred acres you have to keep a dwelling right. So that forces the property owner today to keep some development opportunities

–albeit not much–

for whether it be for himself or future landowners.

We don’t count anything as far as creating your development right numbers, if your property has easements in it–you don’t get credit for that. If you have floodplain–environmental features–you can’t develop the floodplain, the side of a mountain, wetlands, so we’re not giving you credit for that either as far as selling development rights. And obviously you have to be in good standing with the County before we talk to you. Pay your taxes.

You had better hope the government never designates your land as a “wetland.” Not only could you not develop your property, they won’t give you any imaginary development rights to sell either.

We did find that there was a necessary multiplier. We needed to do bonus densities. We found that we wanted–we needed to do it because we needed an incentive from both the developers and the farmers. Obviously the developer who wants to go out and put a subdivision together–it’s a lot easier if you can go to one property and buy a bunch of rights than have to go to ten different properties to get the total number of development rights that he’s looking for. So we created a three-tiered density bonus. And I’ll show you a map in a minute. You’ll see how we broke it down.

Sending Area #1, which we said, “You can sell two development rights for every one development right on your property.” Does that make sense? 2 to 1? We said, “It’s going to be our Agricultural and Forestral District.” In our community we have a heavy orchard industry, so a lot of our Ag District is orchards. If you drive through the countryside you can actually, without even look at this map, pretty much guess where the Ag Districts are simply because it’s heavy orchard area.

So we said, “Okay, if you’re in an Ag District we want to give you an incentive to sell your rights. We want to keep you in agriculture.”

Why, oh, why is the government meddling in private markets? Didn’t they learn their lesson during the housing boom-and-bust?

We said Sending Area #2 is a strip that runs west of Interstate 81 and east of Great North Mountain. It’s the best soil we have in the county.

Except for your dishwashers when they collect all that limestone.

I’m not going to say all the orchards are there

–because we know they are not–

but a majority of the orchards are running through that area. And unfortunately, it’s the best soil in the county for agriculture, it’s also great soil to get a drainage field on too. So that became one of the challenges. So we said, “Let’s create an incentive for those people to help keep their farm.”

And then, as I noted earlier, the Board didn’t want to exclude anyone from the Rural Areas from the program, so they said, “Everybody else, if you’re in the Rural Areas you can participate in selling your development rights.”

So you can see just on the map, the dark brown is the Area #3 which has a 1 for 1 exchange, the gold is a 1 to 1.5. And then the green is your Ag District which we hope is going to be the one we’re able to save most.

We took it one step further. We said, “Let’s use GIS.” Obviously the way our program is set up, when somebody comes in to see how many development rights they have, we’re going to run through the specifics on their property to come up with a number. What we felt was we ought to use GIS to get a sense. We have a lot of the area identified as Sending Area, but when you run the road frontage requirements, the twenty acre requirements…There is still a lot, but you notice it’s not nearly as much as we had before.

So the red is the areas that could qualify for–and that’s a cursory view, that’s using GIS which ties in tax map data. When you get site specific you might find things you weren’t aware of, but there’s a general snapshot.

The Receiving Areas: well, it’s pretty easy. We wanted it to be within the Urban Development Area. We wanted it to be within what we call our Rural Community Centers. We have a number of Rural Community Centers throughout the county that are just–Susan, in the audience, she helped us with some of these things–they’re just like crossroads that have been there forever. They’ve got a sense of community. Don’t have anything zoning specific for it. But we said, “We’re going to set up the TDR ordinance so that those Rural Community Centers, as we develop ordinances that would work in the land use plans, they could be Receiving Areas.”

More laws. Yay.

And most important, the Receiving Areas had to have public water and sewer and state roads.

So the Receiving Areas became the Urban Development Area which is around the City of Winchester, and then you can see out west, I guess that’s the Gainsboro Rural Community Center. [Shows various maps.] (Same map, just a little more clarification.)

Okay, let’s look at our UDA–our potential Receiving Areas. You probably can’t tell but the UDA has all the pink and the white. Well, when you zoom in, those are the properties that would qualify for accepting TDRs. [Screen shows map of red-colored Potential Receiving Properties.] We’ll get some statistics in a little bit.

From a process perspective, the ordinance sets out how you come through the process. It says, “If you’re the farmer (I’m going to say ‘farmer’ but it’s really landowner), you can submit an application to us. We’ll analyze your property. We’ll tell you how many development rights you have to sell.” That’s the letter of intent. We have a certificate; which once you’re ready to sell it, we’ll issue a certificate which is the letter that you can then go out and market and transfer that ownership of these development rights.

There was talk earlier about legal rights. A fee simple and that sort of thing. Obviously you can’t sell a development right–just like you can’t sell your property unless you have everything cleared–you can’t sell a development right unless it’s gone through and had the title searched and shows that you have the right to sell that development right. I think one of the hurdles that we may come into is obviously a lot of properties have mortgage and liens on them, and that’s going to cause some conflict when you try to sell your development right because you’ve got to clear the lien. You’ve got to have the lien holder authorize you before you can sell that development right.

And just some of the information–this is all in the code that was handed out–but some information that we have as we start tracking TDR letters of intent and sales. What we’re doing in Frederick County is when you transfer that right, when the farmer sells it, we do banking so that the developer can buy it and apply it instantly, or he can bank it and just hold on to a bunch of rights. But as soon as it transfers from that farmer, we require a restrictive deed covenant to go on the property.

There was a lot of discussion whether you say “okay, once these development rights are removed do you do easements, conservation easements? Do you do covenants?” Our elected officials felt that the deed covenant was the appropriate route to go. A lot of it because if you do a conservation easement, who is going to monitor it? If it’s a deed covenant, it becomes a three-way agreement that the County is now a party to. And through the method [?] of the GIS, we can track the property so obviously if we’re doing our jobs and our due diligence when we review subdivisions, we’ll know whether or not there’s any development rights on a property before we do the subdivision. So making us party to the deed covenant helped us enforce it through that method. Normally we don’t enforce covenants; it’s a private matter. But since we’re a third party to it, we can start enforcing it.

Yay! for Big Government!

The Density Bonus, which we found is extremely important, and what we said is, “Okay, when you apply TDRs, you can apply them in the RA zoning within the UDA.” So basically on a property in our Urban Development Area that hasn’t gone through rezoning process, you could buy development rights and essentially develop that property to its fullest extent as a residential subdivision, as an RP zone.

But you could also buy development rights to enhance your residential zoning. And we established caps based on your acreage size–we let you do a 50% bonus on your maximum density. So the table which you have in your package is straight out of the ordinance. It sort of sets that framework.

You’ve got to track–when someone sells that development right, it’s extinguished. Then you track who holds it and then where it’s going to be applied ultimately. We’re going to do that through the GIS. We haven’t exercised a transfer yet, but we’ve set up the GIS so we’ll be able to track all the different exercises.

We put together this little bullet slide–5 steps–to simplify the ordinance for anybody that wants to participate in it. All this stuff is available on our webpage. We want the public to be aware of what’s going on. The first step is your sending property criteria which talks about the process for the TDR application. And I will say that to go through the whole TDR transfer process, we felt it was necessary to do minimal fees. So there’s a lot of different steps where you have to come by department to get authorization, but the total cost is just about $1000.

Of course, the County has to have its fingers in that pot, too.

So the idea is we didn’t want to make it fee cumbersome; we wanted to make it simple for the farming community to come in and make application and get that process going.

One of the challenges we heard is the farming community didn’t want to subdivide their property. They wanted to sell it outright because if they tried to subdivide it, they’d have to front the costs for the drainfield search and all the engineering. They don’t have the money, was the argument. So we said, “Okay, when we do a TDR we’re going to minimize expense to you.”

Wouldn’t it be nice if they did that with the building permit process?

“We want it to be attractive; we want it to be less burdensome.” So we just outlined the various steps as to how you go through the process (and we touched on some of this already.)

The neat thing is when you apply the Receiving Areas–once you purchase your TDR rights in the Receiving Area–you actually just go through a normal subdivision process. It’s not a legislative rezoning but it’s an administrative process where you do what we call “Master Plan.” You do your subdivision design plan. And on your subdivision design plan–in your plats–you just certify where you’re getting those TDR rights from. So there becomes a record of why you’re allowed to do that subdivision.

The application process is pretty simple. What it basically says is “Do you have any liens on your property? How many acres do you have? How long have you owned it? Who is the owner of it?” And we let you tell us. “Do you have any water features that we need to be aware of? Have you done any subdivisions on the property?” We want the property owner to just tell us what they’re aware of so when we do our check, it’s sort of a checks-and-balances so we’re not missing anything from their description for their Sending Area property.

And some of the statistics…When you look at our Sending Area, (I’m going to round up numbers), you’ve got about 100,000 acres in the Sending Area total. And then when you’ve broken it down just using GIS queries. So you can see that there’s approximately 25,000 dwellings that could be transferred. Now I will say that’s before we actually did the properties that actually qualify, so the number is going to be a little bit lower. But you have 25,000 dwellings that could be developed in the Rural Areas of the county as a by-right exercise.

But when you look at the UDA, which is where we want to receive things, we have the potential to receive–we have 5,000 acres under what’s available–but if we receive all those transfer rights, you would actually take the UDA density from what we plan as a 5.5, and if you add the TDR rights you put it at about a 10.8 units per acre. Now I think that’s important to point out because the new UDA state code talks about the targets for our population size community is about 4 to 12 units per acre.

So this insidious crap is coming from the State (who ultimately gets it from the Feds, who gets it from…?)

I will be honest, with our TDR program we didn’t know where we were going to end up until we started doing the numbers, but we felt like “okay, we’re in the target area” so that’s a comfort level with us locally and it also continues to achieve what the UDA state code talks about.

We ran a couple of scenarios. Now these are real properties but I’m not going to tell you where they are. But a three hundred acre farm–it’s got a dwelling on it–it’s in our Sending Area #3, so it’s a one per one transfer. It’s got about 58 acres of environmental features, easements.

Any time you hear the word “environmental,” know that it involves the government taking away property rights.

So when you do the math you have about 54 units that could be transferred. Well, because of the size of the land, because he has a dwelling, he could actually transfer 51 units. So there you go. He can get a certificate that says “I have 51 units I can sell through TDR.”

And then we looked at a couple of examples within our UDA. (I’m sorry, that’s the 300-acre farm. You can see it’s got some floodplain on the west. It’s got some wetlands on the east. You’ve got some little steep slopes in the middle. But you can see it’s a nice piece of land.)

Well, we picked three scenarios where those TDRs could be received and it’s infill development. You’ve got a two-and-a-half acre site. It’s on one of our main road corridors. It’s in the middle of our UDA. It’s targeted for residential growth. Well, it’s RA zoned presently, so that says it has the ability to do one house in its current zoning. But if you transfer those development rights, if you transfer the 51 development rights that we talked about, he could capture all this. But he could also buy 27 development rights.

The end of the story is, he could do 4,000 square foot lots on that property and not have to go through the rezoning. Not have to pay the engineering costs, the transportation impact fee analysis, or any of the proffers. He just has to buy the development rights.

Similar situation, this property is a little bit larger. It’s ten acres in size. Today it is actually zoned for residential development. So that says its underlying zoning gives 5.5 units per acre as a by-right. With TDRs, he could put up to 82 units on the property if he buys TDR rights because he can take 5.5 units, increase that by 50%, so he could actually have a total of 8 units per acre on this property. So he could buy 26 density rights from a farmer. So that 300-acre farm can now be preserved. And basically this comes out to be about 4 – 5,000 square foot lots also.

I don’t know about everybody else’s community, but traditionally we were seeing quarter acre lots–10, 12, 15,000 square foot lots in the Urban Area. They’ve gotten a lot smaller. Actually through our ordinance we’ve allowed for lots as small as 3,750 square feet.

Ha! “We’ve allowed…” Amazing.

We call them “single family small lots.” They’ve got to put a community center or something in once they’ve got to a certain size. But that type of infill is what we think is necessary to achieve UDA standards of the state, but also it’s a better use of land. Minimize the sprawl, pack people in.

Well, there it is.

And I think we’ll see more of that as time goes on.

For the last couple years, I’ll say since 2006, 2007 we’ve seen a lot of the smaller lots come through. And the national builders were coming to Frederick County and they were pursuing a little more flexibility. And they were starting to develop some of these smaller lots. So I think TDR has an opportunity just on what we’ve seen recently.

The third scenario we have is 25 acres. It’s next to town houses. You could actually continue that townhouse development and your density would be relatively consistent with what we already have out there. So, again, you’re saving a 300-acre farm, the developer is getting to continue his townhouses or whatever he wants to do. He doesn’t have to go through the process–it’s a cost-savings for the developer if he buys those TDR rights.

So, the local government makes residential development expensive and time-consuming, and then creates an artificial market to sell artificial “rights” with the promise that residential development will be cheaper and quicker.

One thing that we are working on is we currently don’t have I guess the more traditional TND District. We drafted the ordinance last year, and the TDR program superceded it, so we had to shelve it, and we’re going to dust it off and start up again in the near future. But we set the TDR ordinance up so we adopt the TND, which is going to allow for the residential structures on top of the commercial centers and things like that, you can do transfers into the TND. And obviously, as I noted earlier, we need to create the zoning district for the Rural Community Centers. We’ve already set TDRs up so that they could transfer there. But the Rural Community Centers need to have a zoning that would apply to obviously allow lot sizes consistent with what you see in our community centers which are typically, I’ll say, half acre lots, a little bit smaller sometimes. But right now it’s a one house per five acre density, so we have to clean up the community center zoning.

The conclusion–and this is my conclusion, this is Frederick County’s conclusion–but we think TDRs are a good tool to preserve the agricultural and forestal land, and also to redirect the growth to the UDA. Obviously the success or failure is based on the marketplace. What we think we’ve done is set up a program that can be attractive to both the farming community and the development community. Minimal government involved.

HAHAHAHAHAHA!

Our involvement is basically just tracking it, watching it go through the process, making sure checks-and-balances are being met. But it’s not a legislative approval process. And time will tell.

I’ll note that, I got an email from my office that in today’s paper up in Winchester they had a big article on TDRs. So it’s something that, you know, you need to educate the public. And we went through two years of talking about preserving the Rural Areas, talking about TDRs, and it’s still showing up in the newspapers. So we’re fortunate that our local media still has an interest in it, but also we want to keep talking about it, we want to keep promoting it–talk to our developers and farm bureau and all that and let them be aware of what’s going on. If they like it but there’s a problem, we have good enough communications they’ll let us know where the shortcoming is and we can assess whether it needs to be fixed.

And there’s some resources–the presentations that you’ve seen on TDRs today, they’re all on our webpage. We put a package together because we’re constantly talking to people. All of our applications and stuff are online also.

And I’ve got to comment on two things: Ted McCormack is here, and Ted is the TDR expert in the state. So he’s done presentations on the education and state code aspect. And a lot of the information that you saw in the first presentation is his, so I’ve got to give him credit for that. And then Candice Perkins with my staff, she is the one that spearheaded the actual drafting of the TDR ordinance. She was hoping to come down today but she has a newborn and wasn’t able to travel. But I want to give her credit because she has put a lot of effort and energy into it.

That’s my presentation and I’m certainly available to answer any questions.

What lies beneath the agenda to control growth

A permanent solution to a temporary non-problem

Conservationists, preservationists, agriculturalists and their supporters in local government have been pushing, successfully, for increased government intervention in the real estate market that will likely result in artifically-inflated rural land values and increased traffic congestion in government-designated Urban Areas.

The Conservation Easement Authority (CEA), for example, pushes for tax dollars to be spent locking up land in perpetuity under easements and PDRs (purchase of development rights) which will decrease supply of available land for development, effectively causing prices to rise. For years the CEA has been chock-full of folks who have only one thing in mind: locking up land and giving their agricultural companies special privileges. For example, until 2011, Jim Lawrence of the Valley Conservation Council served on the CEA. Other CEA members include Diane Kearns and John Marker of the Preservation of Rural Life in Frederick County, John Gavitt–a Potomac Conservancy donor and former board member of the Lost Rivers & Cacapon Land Trust, and Shenandoah Valley Battlefields Foundation member C. Robert Solenberger. The Frederick County farmers on the CEA take advantage of tax incentives and receive imaginary, yet sellable, housing development rights courtesy of the TDR program. And let’s not speak of the burden on County services courtesy of their migrant workers and the amount of subsidies these farmers receive from the USDA (courtesy of taxpayers). That is for tomorrow’s newsletter.

The scare tactic used by these special interest groups to justify permanent prevention of land development is that as human populations grow, land is lost forever: Say good-bye to farmland, forests and open spaces.

Except in catastrophic events like meteors hitting the earth or tectonic plates shifting or nuclear facilities exploding, land is not “lost.” Residential development does not permanently encumber land. As we have seen in Detroit, a quarter of the city is nothing more than vacant lots, and the government has spent millions of dollars demolishing tens of thousands of buildings over the years.

There is no rural land crisis in Frederick County. As of November 2009, 7600 acres of Frederick County land was in some form of preservation that prevents further subdivision. The Virginia Outdoors Foundation alone, as of May 2011, holds 23 easements in Frederick County for a total of 4,564.76 acres and two easements in the City of Winchester for a total of 115.27 acres. Also, in the last 15 years, the number of cattle has increased 13% and acreage dedicated to forage has increased 38%. Frederick County is still the number one apple producing and peach producing county in Virginia. 89% of the County is Rural.

The state of Virginia also has no land crisis. According to the Department of Conservation and Recreation’s Virginia Conservation Lands Database, as of August 2009 nearly 15% of Virginia’s land is “currently protected.” The former governor’s goal of preserving 400,000 acres of land was reached, and the current governor has set a new goal of preserving an additional 400,000 acres by 2014. Of the nearly 3.7 million acres preserved in Virginia, 95% is held by the government (federal, state, or local).

And if we look at this from a national level, there is no farmland crisis in the United States. As Randal O’Toole wrote in his November 18, 2009 policy analysis for the Cato Institute titled “The Myth of the Compact City,” less than 40% of the billion acres of America’s agricultural land is used to grow crops, and only about 100 million acres or so of America’s land is occupied by “urban areas.”

Samuel R. Staley, PhD, wrote a January 2000 policy brief published by Reason Public Policy Institute that exposed the fallacy of the argument that residential pressures are destroying agricultural lands. He pointed out that 74% of the decline in cropland had nothing to do with urbanization but rather from “structural changes in the agricultural industry.” In fact, he found that cropland acreage remained stable despite reductions in the amount of land in farms, and agricultural activity was at all-time highs. And most farmland conversion is not to residential development but rather to non-urban uses such as forests, pasture, range land and recreation.

Local government goals are “anti-family”

When I say, “anti-family,” I don’t mean the government is actively trying to hurt families, but rather local government is trying to make it less attractive for families with children to move into the area. Welcome to New Urbanism where children are expensive nuisances.

Take a look at the Comprehensive Plans for the City and the County. Who are they trying to help? Agriculturalists, preservationists, conservationists, retirees, and young professionals. There is nothing in there about helping families with school-aged children. Parents with school-aged children tend to prefer living outside of cities. Young professionals and some retirees may like to live, shop, work, and play in the same area, but parents of children aged 5 to 17 do not. Nearly 19% of Frederick County residents are school-aged whereas only 14% of Winchester City residents are between the ages of 5 and 17 years. If parents liked the city, they’d move there.

As the county government continues to discourage new development of cul-de-sac suburbs segregated from commercial and industrial uses, the style preferred by families with children due to increased privacy and protection from traffic and the general public, many middle class families will be forced to seek such housing elsewhere or settle for a neighborhood with a less desirable design. Also, suburban schools are less expensive per student, and parents typically consider them to be better than city schools.

Besides, most people who live in cities wish they didn’t. According to a 2009 Pew Research Center Study, more than half of all city residents in America would prefer to live in a place other than the city. Apparently mixed-use zoning and high density housing do not appeal to most people.

The City of Winchester is focusing on attracting retirees and young professionals (translation: people with no kids). Do you really think families with children want to live in Cottage Housing? Of course not, and so it is no surprise that Winchester’s Zoning & Inspections Administrator is excited about this style of residential development. Meanwhile, the County of Frederick is focusing on squeezing all future residential growth into 23,000 acres, much of which is adjacent to the City. The idea, they claim, is that educating kids packed in closer quarters will somehow save the County schools money. The County wants higher density housing (which means smaller housing) in the Urban Areas. But when you look at the percentages of children per type of housing (single family, townhouse, multifamily, etc.), townhomes and multifamily housing (ie apartments) are less likely to have children in them than single-family detached units.

It appears that the County of Frederick wants to encourage more squished housing and mixed-use zoning because the hope is that fewer people with school-aged children will find Frederick County as attractive as they did in the past.

On October 12, 2005, the Board of Supervisors voted to adopt the Development Impact Model (DIM) created by TischlerBise. The model effectively doubled the projected fiscal impact of residential development on County services. The DIM is used by the County when it considers land use planning policies and rezoning applications.

According to the Rural Areas Subcommittee and the Preservation of Rural Life in Frederick County, in 2008 (the year for coming up with permanent, costly solutions to temporary non-problems) the magic DIM number was $24,000. That was the projected financial burden of each single-family detached unit on County services. Recognizing that rural character, view sheds and tranquility probably would not be considered sufficient reasons by the general public to lock up land in perpetuity while restricting private property rights in general, the local government and preservationist groups pushed the DIM as the reason why residential development in Rural Areas must be managed (that’s Big-Government-speak for “controlled”).

In the Urban Areas, real estate developers of entire neighborhoods were often required to pay up to $24,000 in proffers to the County government per each new single family home constructed. $19,000 of it was for “school construction costs.”

In the Rural Areas, if Mr. Joe Schmoe builds a house on his 5-acre plot, he is supposedly creating a $24,000 burden on the local government that cannot be recovered through proffers. (But don’t worry, the local government is looking into Impact Fee requirements.)

With tighter restrictions on well and septic systems thanks to the Rural Areas Subcommittee and the Board of Supervisors, can you imagine what effect a $24,000 Impact Fee would have on new housing development in Rural Areas? Of course, this is exactly what the local government wants. The government and it’s cronies do not want Mr. Schmoe to be able to afford to live in the Rural Area unless it is in a specially-designated “Community Center” with clustered housing–tiny lots smashed together and surrounded by massive preservation tracts so as not to ruin the rural character for the special landowners who believe their view sheds and tranquility are more important than private property rights and free private markets.

Thank you, Mr. J.P. Carr and Mr. Stephen L. Pettler Jr.

On May 27, 2010, these two Development Impact Model Committee members wrote a letter to Planning Director Eric Lawrence pointing out what appeared to be a serious flaw in the DIM:

In a nutshell, every penny of the school proffer dollar paid to the county should go to capital improvements to schools, in other words “bricks and mortar.” Right now the amount collected by the County from proffers is insignificant, but in a few years it should cover a significant portion of budgeted school construction costs. For example, if proffers for 600 single-family homes in the amount of $18,494 are collected annually, the total revenues to the county would be over $11 million.

In the stated example, 600 homeowners ultimately pay the proffers through increased new home prices at the time they purchase their homes. Those homeowners are paying to compensate for the impact of moving into their new home in the County up-front and in full.

However, as you [Eric Lawrence] state in your letter, the County does not have a fixed source of tax revenue to fund capital improvements to schools, it merely utilizes a portion of on-going collected tax revenues to pay the capital costs of construction. A homeowner who buys a house with a school proffer incorporated in the price of the home immediately begins paying residential real estate taxes to the County. Those taxes, in part, go toward the funding of capital improvements to schools in addition to the up-front proffer money they’ve already paid to offset the impact to school capital costs. The specific amount paid by any given homeowner toward school capital costs through taxes may be hard to figure (and a reason for this exercise), but revenue from real estate taxes does get allocated to the capital construction costs of schools. As a result, a person buying a new home with a school proffer incorporated into the price is paying twice to mitigate impacts to the school system’s capital budget caused by occupancy of the new home.

According to your letter, the County does not specifically apply a fixed percentage of residential real estate tax revenue toward school capital costs. There is no mechanism to calculate the tax dollars a property owner pays toward capital improvements, there can be no way the DIM can calculate a “credit” for the taxes paid by the property owner to off-set the “debit” paid by way of the proffer on the property. Persons purchasing a new house with a school proffer are paying the proffer without an offset to account for their ongoing payment of real estate taxes.

This situation creates an imbalance where a new homeowner pays the impact cost up front, but still gets an annual bill for the principal and interest cost of school construction via taxes. There has to be an offset in the model or in the taxes that person pays. Otherwise, the DIM does not accurately account for impacted to the County’s capital budget, which is the point of the model to begin with.

Additionally, we note that the scenario regarding school proffers can be applied to any capital costs for which the DIM calculates an “impact” that is off-set by a proffer and for which a portion of taxes collected by the homeowner also funds on an on-going basis.

As we understand the function of the DIM Oversight Committee, it is to determine whether the inputs used in the model are accurate and appropriate. It is our belief that unless the inputs include credits for real estate tax revenues the inputs are faulty.

Well, well, well…

And just so you know, that $24,000 behemoth projection (which is from 2008’s DIM) is over a 20-year-span. If a homeowner with school-aged children pays $1,200 in real estate taxes every year, he would cover the fiscal impact of his new home. Last year, beneath the DIM Oversight Committee’s chart of projected impacts per dwelling unit was this note:

The projected capital expenditures depicted above do not include a credit for future real estate taxes.

This year’s DIM is $17,134 per single-family detached unit. So, any advocates of increased land-use controls still touting the $24,000 number are a good $7,000 too high in scare value. And this new number STILL does not incorporate a “credit” for real estate tax revenue.

Children = suburban sprawl = bad

By pushing the flawed DIM as the reason for curbing growth in the County, the government is exposing what they truly believe the problem is: children. Children are a “fiscal negative” because they cost so much to educate and don’t produce anything of monetary value…and supposedly their parents’ tax payments aren’t enough to offset the costs.

Interestingly enough, with area private schools costing families anywhere between $6,300 – $7500 a year to educate each child (oftentimes less with each additional child enrolled), it would be cheaper for the City of Winchester and the Frederick County government to give a family $7500 each year rather than educate their child in a local public school. Yes, that’s right–the government would save money if it paid families to send their children to a local private school…anywhere from $3,000 to $6,000 a year per child in savings!

But see, if the local government were to provide vouchers, the demand for alternative education would grow. Private schools would have to expand. New private schools would open up to meet the growing demand. And the local governments’ fingers would be out of the pot. Previous public school system employees would apply for employment at private schools, the federal government’s No Child Left Behind monstrosity would be out of the loop, and the governments’ school boards wouldn’t have big piles of cash to play with anymore. (And wouldn’t that be a total bummer for the Winchester School Board members who would like to see term-limits for board members abolished?)

Obviously this idea is radical, so radical that it will likely be relegated to the dustbin of radical ideas, but it is not a new idea. In fact, Milton Friedman, a 1976 Nobel winner for economics, suggested such a thing in 1995. People around the country still suggest it. But government-funded-and-dictated education is too important for Big Government lovers to let go of… It is all about control: like controlling what you do with your land, they want to control how your child is educated. And now the government is lying to you by claiming that children are too damn expensive for the County which is why they need to increase government control over land. When will people say, “Enough is enough?”

Good Ol’ Boys

Christopher E. Collins – BoS, Tr, PC liason
*Charles S. Dehaven – BoS, Tr, WFMPO, FC, SVBF (Board of Trustees)
Gary Dove – BoS, DIM, RAS, NSVRC, EDC
Bill Ewing – BoS, FC 
Gene Fisher – BoS, CEA
Gary Lofton – BoS, RAS, DIM, FC
Richard Shickle – BoS Chairman-at-large, RAS, WFMPO

*Cordell Watt – RAS, former PC, FCFGA, VSAB

*Marjorie H. Copenhaver – CPPC

Carl C. Ay – ADA
Walter Baker – ADA
*James Douglas – ADA, PRL, FCFGA
Jack Jenkins Jr – ADA
*John Marker – ADA, PRL, CEA, VSAB, WG, FCFGA
*Dudley Rinker – ADA, WG
*John Stelzl – ADA

Lawrence Ambrogi – PC, DRRC
Stanley Crockett – PC, IDA, CPPC, RC
Kevin O. Crosen – PC, DRRC
George Kriz – PC, RAS, WG
Philip Lemieux – PC, CPPC, WG
Brian Madagan – PC, WG
H. Paige Manuel – PC, DIM, RAS, CPPC, WG-replaced?
Christopher Mohn – PC, CPPC, WG
*Gary Oates – PC, ADA, Tr, BZ, DRRC, HRAB, CPPC
Roger Thomas – PC, CPPC, DRRC, DIM
Charles Triplett – PC, CEA, 
Greg Unger – PC, RAS, DRRC
June Wilmot – PC, CPPC, DRRC

*Paul Anderson – WG, FCFB (President), FCFGA
Julie Armel – WG
John Bishop – WG, Tr (Deputy Director)
Smith Cooley – WG
Joe Graber – WG
Jim Guilliano – WG
Patrick Hogan – WG
*Diane Kearns – WG, CEA, PRL, FCFGA, VSAB
Herschel Kelly – WG
Rhoda Kriz – WG, HRAB (replacement?)
Dan Martin – WG
Bob Morris – WG
*Nick Nerangis Jr – WG-replaced?
Josh Phelps – WG, DIM, EDC
*Jeff Rezin – WG (replacement?)
Richard Ruckman – WG, former PC
Martha Shickle – WG, NSVRC, RC
Patrick Sowers – WG
Beth Stern – WG
Whit Wagner – WG, DRRC
Richie Wilkins – WG, CEA, FC

* = landowner or relative of landowner or official of company that owns land in Sending Area #1

ADA = Agricultural and Forestal District Advisory
BoS = Board of Supervisors
BZ = Board of Zoning Appeals
CEA = Conservation Easement Authority
CPPC = Comprehensive Plans and Programs (Executive) Committee
DIM = Development Impact Model Committee
DRRC = Development Review & Regulations Committee
EDC = Economic Development Commission
FC = Financial Committee
FCFB = Frederick County Farm Bureau
FCFGA = Frederick County Fruit Growers Association
HRAB = Historic Resources Advisory Board
IDA = Industrial Development Authority
NSVRC = Northern Shenandoah Valley Regional Commission
PC = Planning Commission
PRL = Preservation of Rural Life in Frederick County
RAS = Rural Areas (Study) Subcommittee
RC = Rotary Club of Frederick County
SVBF = Shenandoah Valley Battlefields Foundation
Tr = Transportation
VSAB = Virginia State Apple Board
WFMPO = Winchester-Frederick County Metropolitan Planning Organization
WG = Comprehensive Plan Working Group

The Good Ol’ Boy System of Frederick County

A small group of government officials, appointees, and their citizen cronies are using legal “devices” to inflate their personal land values and squeeze the rest of current and future county residents into a box.

Why would they want to do that? you might ask. Well, you need to understand how these central planners (many of them agriculturalists and/or rural landowners) think. These people honestly believe that their view shed and tranquility are more important than your liberty and private property rights. Because they enjoy looking outside their windows and seeing acres of beautiful rolling countryside, you are not allowed to develop your property beyond what and how they permit you to develop. Never mind that some of them sold parcels of land for millions of dollars to real estate developers that eventually ended up ruining their neighbors’ view shed and tranquility. Some land owners are simply created more equal than others.

The web is thick and tangled so get ready—we are cutting deep and getting technical as we tackle the knot of Planning & Development. We’re going to look at the central planners who are “playing SimCity” with Frederick County residents and businesses. Yes, folks, you are being herded and corralled like cattle.

The Quick ‘n Dirty On What Is Going On

A major component of the 2030 Plan is the TDR program. An important part of the TDR program is the granting of bonus density transfer rights to AFDs by the local government. The key players in the designing, approving, and/or implementing of the 2030 Plan, the TDR program, and the AFD program are long-time cronies, a suspicious number of whom directly benefit from these bonus density rights. They have the potential of raking in tons of cash for development rights that didn’t exist prior to April 2010. The government literally pulls these rights out of thin air and hands them to certain landowners on pieces of paper that can be sold for cash. Let’s hope real estate developers and investors don’t take the bait.

If you didn’t understand the previous paragraph, then you need to read the rest of this post.

And if you want names, click here.

The Plan

Let’s start with the 2030 Comprehensive Plan (or The Plan.) The County defines The Plan as “the guide for future growth of Frederick County.” According to the Board of Supervisors, The Plan reflects their vision statement:

Insuring the quality of life of all Frederick County citizens by preserving the past and planning for the future through sound fiscal management.

Keep in mind that any time county officials try to minimize the importance of The Plan by calling it “just a guide,” they are lying. In the Introduction of The Plan, it states:

The ultimate goal is to make The Plan implementable, and by extension, achieve the Board of Supervisors’ vision for the future of Frederick County.

And once the Board of Supervisors votes approval for it, you had better believe they are going to implement it.

So, how did the County come up with The Plan? Between April 2010 and December 2010, the Planning Commission guided the Comprehensive Plans and Programs Executive Committee (CPPC) in the drafting of The Plan with the assistance of “working groups.”

The CPPC includes the following individuals: George Kriz, Gary R. Oates, Stanley Crockett, June Wilmot, Roger Thomas, Christopher Mohn, Philip Lemieux, H. Paige Manuel, Marjorie H. Copenhaver, and Jim Golladay Jr. The working groups included: Bob Morris, Patrick Sowers, Whit Wagner, Diane Kerns (Kearns), John Marker, Patrick Hogan, Dudley Rinker, John Bishop, Phil Lemieux, George Kriz, Chris Mohn, Richie Wilkins, Martha Shickle, Richard Ruckman, H. Paige Manuel, Stanley Crockett, Jim Guillano, Smith Cooley, Herschel Kelly, Paul Anderson, Josh Phelps, Brian Madagan, Nick Nerangis Jr., Rhoda Kriz, Jeff Rezin, Joe Graber, Julie Armel, Beth Stern, and Dan Martin.

The Plan will influence every aspect of County planning and development down to the very ordinances used to restrict citizens’ lives in some way, shape or form. Welcome, folks, to the Progressive Utopian Plan of “smart growth” and “sustainable development.” (By the way, if you ever hear or read central planners use those two phrases, realize that it is deliberate. The presumption underlying those terms is that any growth or development not conducive to The Plan is stupid and unsustainable.) The obvious but unspoken philosophy of any plan for “smart growth” and “sustainable development” is that sprawl is bad. Period.

What is sprawl?

Sprawl is the development pattern of segregated, large single-family lots far from existing infrastructure. Of course, descriptions like “segregated,” “large,” and “far from” are in the eye of the beholder. A ten minute drive might be far for some, and a one-acre lot may be large for some, and seeing only seven neighbors rather than twenty-five may be segregated to some. But this is not the case for everyone. In fact, this is not the case for many people.

Fixing What Isn’t Broken

According to The Plan:

Most of Frederick County’s land area is rural in character. Of the County’s 266,000 acres, approximately 243,000 acres are rural and located primarily west of Interstate 81. The remaining acreage comprises the Urban Development Area (UDA) where the majority of the County’s future growth is directed.

Translation: The Frederick County government desires to cram most of the future growth into 23,000 acres of space. One local resident has accurately described this goal as building a “city around a city.”

In 2008, the Preservation of Rural Life in Frederick County reviewed available residential lots and found that “over 92% of the lots created in recent years reside within the UDA.” And according to The Plan, “the Rural Areas of the County have traditionally seen 30% of the County’s new residential growth.”

Based on this information, it is clear that 91% of Frederick County’s land (243,000 Rural acres) only absorbs 30% of new growth and sees less than 8% of new residential lot creation. The areas of the county these central planners are trying so feverishly to “preserve” are seeing the smallest amount of growth!

Fighting Sprawl

The County plans on combating sprawl with the creation of what can only be described as a derivatives market, complete with government manipulation of the tax code and bonus features for specially-designated areas.

In 2008, the Board of Supervisors created the Rural Areas (RA) Study Subcommittee “to deal with increasing development pressures in Rural Areas over the last decade.” The members of the RA subcommittee were Richard Shickle, Gary Dove, Gary Lofton, Cordell Watt, H. Paige Manuel, and Greg Unger.

In 2009, the RA subcommittee presented a “Report and Recommendations” to the Board of Supervisors. On April 22, 2009, the Board of Supervisors approved the Report and Recommendations as a policy component of the Comprehensive Policy Plan. The RA subcommittee’s Recommendations included the creation of a Transfer of Development Rights (TDR) program.

Based on a memorandum from Planning Director Eric Lawrence on April 15, 2010, a draft TDR Ordinance was presented to the Board of Supervisors on December 9, 2009:

At the meeting, staff provided an overview of the ordinance and stated that prior to the meeting, staff was made aware of the Model TDR Ordinance drafted by the State Workgroup that included density bonuses. Discussions during the Rural Areas Subcommittee meetings had included the desire to include density bonuses; however under the wording of the TDR language in the Code of Virginia, it was believed that bonuses were not permitted. Staff then revised the draft TDR Ordinance to include bonuses based on where the density right is located. The revised TDR Ordinance was discussed by the Board of Supervisors at their March 10, 2010 meeting. The Board of Supervisors requested minor clarification and additions and with those changes sent the proposed ordinance forward for public hearing. The draft TDR Ordinance has been revised to reflect the Board of Supervisors’ comments.

According to the same memorandum:

The Planning Commission held their public hearing on April 7, 2010, and recommended approval of the TDR Ordinance by a majority vote, with the following revision: If a property is removed from an Agricultural and Forestal District, the development rights remaining will equal what is available for the underlying sending district minus any development rights already sold.

One citizen spoke during the public comment portion of the hearing, Mr. Paul Anderson, a farmer in the Gainsboro District. Mr. Anderson said he was representing the Frederick County Farm Bureau and he spoke in favor of the TDR Program.

Commission members discussed the possibility for high-density development on the receiving properties without the benefit of proffers to offset costs for community services. This impact was compared to the cost efficiency of providing services in designated growth areas. An issue was raised regarding the methods for calculating development rights on a sending parcel. Staff noted the intention to make the TDR Program as simple as possible so that owners of sending properties would not be required to expend large sums of money for surveying or engineering to determine whether or not to sell their rights. A suggestion was made to include criteria specifying that if a landowner is getting the benefits of being in the Agricultural and Forestal District [AFD] such as doubling of density units, and then subsequently the property is removed from the District after selling the development rights, then the remaining available rights will be reduced by the true number that was sold.

The Insidious Foundation of TDRs

Here is how they work:

  1. The government determines and restricts private property rights through zoning.
  2. The government decides how many development rights (ie density) a property has based on government-created zoning ordinances.
  3. The government defines boundaries for Rural/Sending Areas and Urban/Receiving Areas. Private property generally falls into one of those two categories.
  4. The government facilitates a one-way derivatives market for Rural landowners to transfer (sell) their development rights to Urban landowners. Participation in the market is voluntary.
  5. Buyers (Urban landowners/developers) pay for a private property right that inherently belongs to them as free people but has long been restricted by government through zoning laws. (It’s the nature of the beast.)
  6. Sellers (Rural landowners) receive cash for a derivative—development rights—created by the government.
  7. The Rural/Sending Area loses those development rights in perpetuity, and future growth is corralled into the UDA.

The only way this market is not going to crash is if the local government continues to tighten the noose of zoning around the private property rights of the people. Should the government decide to repeal zoning ordinances throughout the county, effectively making TDRs worthless, the house of cards would fall.

On April 28, 2010, the Board of Supervisors voted to adopt the TDR Ordinance and Program. The program breaks down Rural Areas into three categories: Sending Area #1, Sending Area #2 and Sending Area #3. Most rural properties are a part of Sending Area #3 with a density transfer of one TDR density right to one dwelling unit. A strip about six miles wide that runs the length of I-81 is Sending Area #2 with a density transfer of one TDR density right to one and a half dwelling units.

Scattered about the county, but concentrated mostly in or adjacent to Sending Area #2 and/or UDAs, is Sending Area #1. The properties in Sending Area #1 are zoned with a transfer ratio of one TDR density right to two dwelling units. These properties are part of Designated Agricultural Districts.

With a density transfer ratio of 1:2, developers seeking to purchase development rights will likely turn to Sending Area #1 first. These properties have a monopoly on the 1:2 ratio until 2015 thanks to the process of becoming a part of a Designated Agricultural District. Every five years, rural landowners can apply to the Agricultural District Advisory (ADA) Committee in order to have their properties included in or removed from the Agricultural District program. The latest renewal deadline was in 2010, and that ADA Committee included the following individuals: Carl C. Ay, James M. Douglas, Dudley H. Rinker, Walter G. Baker, Gary R. Oates, John Steizl, Jack K. Jenkins Jr. and John R. Marker.

According to the Department of Planning and Development, “Agriculture and Forestal Districts encumber the land.” Properties in these districts are restricted from development even if the land is sold. However, “between renewal periods, land owners may request removal from an AFD based on death of a landowner or good and reasonable cause.” The County decides whether or not the request is good and reasonable.

In response to the question “How do I join a District?” on the Department of Planning & Development’s webpage for AFDs, it states:

Any interested landowner can obtain an Application for the creation of or addition to an Agricultural and Forestal District from the Frederick County Department of Planning and Development. The Districts are renewed every five years; 2015 is the next renewal period. Applicants for the 2015 renewal must be submitted to the Department of Planning and Development by January 29, 2015.

Now, I’m no lawyer but it doesn’t take one to see that the Frederick County government is overstepping its bounds by not allowing people to join these districts except during the renewal period that only comes up every five years.

Here is where the county gets its authority to establish a five-year renewal period:

§ 15.2-4309. Hearing; creation of district; conditions; notice.

[Excerpt] The ordinance shall state any conditions to creation of the district and shall prescribe the period before the first review of the district, which shall be no less than four years but not more than ten years from the date of its creation.

(By the way, has anyone actually seen the Frederick County ordinance for the creation of Agricultural and Forestal Districts? If so, please direct me to it because I have yet to find the darn thing.)

And here is where the County is clearly violating State code:

§ 15.2-4305. Application for creation of district in one or more localities; size and location of parcels.

[Excerpt. Emphasis mine.] On or before November 1 of each year or any other annual date selected by the locality, any owner or owners of land may submit an application to the locality for the creation of a district or addition of land to an existing district within the locality.

For those rural landowners who meet Land Use eligibility requirements, real estate taxes are deferred. The Agricultural and Forestal Districts (AFD) also have the following benefits:

Protection against local laws unreasonably restricting or prohibiting farm structures and farming practices during the term of the district; and Protection against local laws unreasonably restricting or prohibiting farm structures and farming practices during the term of the district; and Protection against eminent domain, such as for roadways, where a public review process is required if a minimum of 10 acres is to be taken from a District, or one acre from one parcel in a District. In addition, should the County ever rescind its Land Use Assessment Program, those enrolled in an AFD would be eligible for Land Use under the State’s program, provided land eligibility requirements are met.

According to the Dept. of Planning webpage for AFDs, the first AFD was created in 1980 and named “South Frederick.” The second district, “Double Church,” was created in 1985, and the third was created in 2007—“Red Bud.” All three were updated during 2010, the renewal year.

With such a program in place for the last thirty years (along with the options of selling or donating conservation easements) one wonders why the local government felt the need to adopt a TDR Ordinance at all. The logical explanation is that the government wants to stack-n-pack the unwashed masses into an area equivalent to 9% of the County while giving rural landowners a new way to put cash into their pockets by selling derivatives.

On the same day that the Board of Supervisors voted to adopt the TDR Ordinance and Program (April 28, 2010), the Board also voted to approve the addition of three new Agricultural and Forestal Districts: Albin, Apple Pie Ridge, and South Timber Ridge.

The 2010-2015 Albin AFD consists solely of properties owned by Fruit Hill Orchard and DTS LC. Both companies are owned by C. Robert Solenberger who serves on the Conservation Easement Authority (CEA). His daughter, Diane Kearns (Kerns) also serves on the CEA, and it was she who made the request for the creation of the Albin District and the Apple Pie Ridge District. (Ms. Kearns also served on the 2030 Comprehensive Plan working group.) The 2010-2015 Apple Pie Ridge AFD properties are owned by BHS LC, KSS LC, Becon Inc, and Fruit Hill Orchard. All of these companies are owned by Mr. Solenberger.

The 2010-2015 South Timber Ridge AFD consists solely of properties owned by Cordell Watt or his company Timber Ridge Fruit Farm.

Because these farmers waited until the deadline to create these districts, should any of their neighbors want to join them, they will have to wait until 2015 to apply.

When presented with this information, one Winchester resident and business owner, who asked to remain unnamed, remarked, “They are raking it in from [the sale of the Walmart lot] and now they can tie up the land forever and get nice, tidy checks for the sale of the property via TDRs and tax deductions into perpetuity. It’s perfect for them!”

He added, “They got their view shed, and now they want to close the door behind them so you can’t get yours or ruin theirs!”

The Comprehensive Crony Plan

Many of the people who worked on components of The Plan and/or voted on The Plan have numerous connections to each other, inside and outside of local government. In fact, most of the people who voted or will vote on The Plan also played a major role in designing it or some component of it.

For example, look at the creators of the TDR Ordinance and Program again—the RA Subcommittee. Richard Shickle, Gary Dove, and Gary Lofton were on the Board of Supervisors at the time. Cordell Watt, H. Paige Manuel, and Greg Unger were on the Planning Commission. For years, many of the planning commissioners had been serving with one another in various government capacities with a good number of the same supervisors. It is no surprise that the TDR Ordinance was easily approved by the Planning Commission and then quickly recommended for approval to the Board of Supervisors in 2010.

And if we look at the Sending Area #1 of the TDR program that is granted a double bonus of density rights, nearly one in three acres is owned by Diane Kearns’ father, C. Robert Solenberger. Both Ms, Kearns and her father serve on the Conservation Easement Authority along with Richie Wilkins, Gene Fisher (Board of Supervisors), John Marker, Charles Triplett (Planning Commission) and four others. Wilkins and Marker also served with Ms. Kearns on the 2030 Comprehensive Plan Working Group. Marker and Kearns are members of the Virginia State Apple Board, and they both belong to the Preservation of Rural Life (PRL) in Frederick County, a group that submitted reports to the local government on growth and development in rural areas. In addition, John Marker’s company M&M LP owns nearly 690 acres in Sending Area #1.

Remember, Sending Area #1 consists solely of Agricultural and Forestal Districts. Initial implementation of the AFD program is carried out by the AFD Advisory Committee. At least five out of the eight Advisory Committee members have direct interests in Sending Area #1. For example, James M. Douglas, another PRL member, is Treasurer of Woodbine Farms which owns 1,189 acres in the South Frederick Agricultural and Forestal District. The Sending Area #1 landowners on the AFD Advisory Committee are Dudley Rinker, Gary Oates, John Stelzl, and John Marker. Rinker, Marker and Oates also served on the Comprehensive Plans and Programs Committee (CPPC) and/or the Comprehensive Plan Working Group (CPWG).

Twenty-eight individuals filled the thirty working group positions. At least sixteen of those individuals hold at least one appointed position in the local government. At least five of them are planning commissioners. In fact, nine commissioners of the 14-member Planning Commission served on the CPPC and/or the CPWG. Take Gary Oates, for example. He is on the Planning Commission, the AFD Advisory Committee, and the CPPC. And he owns over 45 acres of land in The Red Bud AFD, likely qualifying his land for bonus density transfer rights.

Also located in the Red Bud AFD are battlefields owned by the Civil War Preservation Trust (CWPT) and the Shenandoah Valley Battlefields Foundation (SVBF). According to the CWPT’s 2009 Annual Report:

CWPT and SVBF are working closely together to save land at battlefields located in Virginia’s Shenandoah Valley. In 2009 the joint effort between CWPT and the Shenandoah Valley Battlefields Foundation to protect 209 acres at Third Winchester, VA, created a 576-acre swath of protected battlefield land.

Obviously these two groups do not intend to ever allow development on their lands. In fact, they have been taking advantage of the County’s Land Use tax deferral program. And yet they are included in Sending Area #1 with a 1:2 TDR. Is this designation simply a matter of belonging to an Agricultural and Forestal District and not really applicable or do the battlefields really have bonus density development rights?

Hopefully Supervisor Dehaven can answer that question considering he is on the Board of Trustees for the SVBF. Oh, and guess who is also a member of the SVBF? C. Robert Solenberger.

Since a majority of the Planning Commissioners were directly involved in the creation of The Plan, The Plan was inevitably approved by the Planning Commission and recommended for approval to the Board of Supervisors.

Considering many of the people in authority positions are rural landowners with similar ideas for the way the county should be developed, it is no wonder that the TDR Ordinance and the 2030 Comprehensive Plan appear to benefit rural landowners, and especially agriculturalists, at the expense of those people in the Urban Development Areas.

If the TDR program results in frequent TDR sales (and local government hopes it does), rural lands not under restrictive covenants or conservation easements will increase significantly in market value, effectively pricing out many middle class families who tend to prefer single family homes with large yards rather than high density and mixed use zoning. Some long-time “rural” residents may find it hard to keep up with a rising property tax bill.

I do not hold out any hope that the Board of Supervisors will reject the 2030 Comprehensive Plan as it is currently drafted. The goal of The Plan fulfills the vision of the Board of Supervisors, the Planning Commission and all their cronies. It is one, big, happy family.