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Commissioners set FY2026 transferable development rights fee-in-lieu at $5,280 per TDR
Summary
Economic Development staff recommended setting the FY2026 fee-in-lieu at 120% of FY2024 fair-market value ($5,280); commissioners approved the increase and staff noted fee-in-lieu activity has recently exceeded TDR transfers on the open market.
The St. Mary's County commissioners on Sept. 23 set the FY2026 transferable development rights (TDR) fee-in-lieu at $5,280 per TDR, equal to 120% of the county's FY2024 average fair-market value of intermediate transfers as required by county ordinance.
Department of Economic Development staff explained the fee-in-lieu formula in the county zoning code: the fee is 120% of the average fair-market value paid for TDRs in arm's-length intermediate transactions in the previous fiscal year, as calculated by the DED director. Staff said the DED did not record intermediate-market transfers in FY2025; the most recent available fair-market value data were from FY2024, producing a recommended fee-in-lieu of $5,280.
Presenters reported that in FY2025 Land Use and Growth Management certified five TDRs available for transfer (2.55 acres) and that the county processed eight fee-in-lieu agreements representing the equivalent of 137 TDRs, resulting in $665,959.74 in fee-in-lieu payments under the then-current $4,861.02 per-TDR figure. Commissioners asked whether the low number of TDRs on the market and relative ease of paying the fee-in-lieu had contributed to increased fee-in-lieu transactions. DED staff said the fee lags market activity and that the county maintains a TDR listing to facilitate private purchases, but acknowledged the fee-in-lieu offers an alternative when TDRs are unavailable.
Commissioners approved the director's calculation and set the FY2026 fee-in-lieu at $5,280 per TDR by motion and voice vote.
