Planning staff briefs commission on transfer-of-development-rights option for preserving open space and encouraging affordable housing

City planning staff briefed the commission on Transfer of Development Rights (TDRs), a planning tool that lets property owners sell development rights from a designated “sending” area to developers in a designated “receiving” area to concentrate growth and preserve open space, farmland or historic resources.

Staff explained the typical TDR process: adopt an ordinance, designate sending and receiving areas, set conversion and tracking mechanisms for development credits, and approve receiving-area development that uses transferred credits. Staff said Utah law allows TDR programs and noted other Utah jurisdictions have used the tool for farmland and open-space preservation.

Commissioners raised practical concerns: the city would need discipline on future zone changes in sending and receiving areas to preserve the program’s integrity; the market must produce willing buyers and sellers for credits; and the city should avoid taking on valuation responsibilities. Staff said the city would record transfers and could rely on private-market valuations while maintaining administrative tracking of credits.

Commissioners also noted alternatives to TDRs, including conservation easements, purchasing development rights, density bonuses and planned development overlay zones. Several commissioners said TDRs could help preserve open space without direct taxpayer purchases, but that the city should proceed cautiously and maintain consistent zoning in affected areas.

Staff said the briefing satisfied a requirement in the city’s moderate-income housing plan to study a range of tools and that the item would be tracked pending state-level housing-policy developments.