Landmark legislation creates regional market

for Transfer of Development Rights

Seattle, May 14, 2009 – A new regional market will encourage the transfer of development rights between counties, cities and towns in the Central Puget Sound region. Once implemented, the program will facilitate the conservation of tens of thousands of acres of farms and forests while also creating more housing choices and commercial opportunities in our communities.

The Cascade Land Conservancy and a number of supporters spearheaded the passage of the legislation in the recent 2009 Legislature. It was signed into law today by Gov. Chris Gregoire at the Conservancy’s annual Conservation Awards Breakfast.

Crafted with the guidance of a citizen’s Policy Advisory Committee—a diverse group of stakeholders convened by the Department of Community Trade and Economic Development—the law will increase the potential for significant conservation of working farms and forests, assist with the cleanup of Puget Sound and promote the wider use of a sophisticated development tool for the enhancement of the region’s towns and cities.

“The challenges we face in keeping our environment healthy are significant, which makes the work of such groups as the Cascade Land Conservancy even more important,” Gregoire said. “Washington’s population continues to grow by about 100,000 people a year. I see the growth in our state clearly affecting the health of our beloved Puget Sound, and our other natural resources. I want our children and grandchildren to grow up with a love of the outdoors. That’s why together we must act now to protect our resources and quality of life that makes our state so great.”

The new legislation:

•    Requires the state Department of Community, Trade and Economic Development to establish a regional Transfer of Development Rights program in central Puget Sound, including King, Kitsap, Snohomish and Pierce counties and the cities and towns within these counties.
•    Fosters voluntary county, city and town participation in the program so that interjurisdictional transfers occur between the counties, cities and towns, including transfers from counties to cities and towns in other counties.

“We are working with our partners to move development rights off tens of thousands of acres of farms and forests and into our cities and towns that can better accommodate our growth,” said Gene Duvernoy, President, Cascade Land Conservancy.  “We are working with regional and national leaders to make better investments in our communities.  We know that we must balance our environmental, economic and community needs.  For too long, they have been at odds.  We need all three for any one to prosper.”

“This is a proud moment for the Cascade Land Conservancy,” said Bruce Williams, Chair of the Board of the CLC.  “This organization has the zeal, the professionalism, the sophistication to achieve even greater things in the future. We have work still to do, but this is a great day for the Conservancy, for the environment and for the future of this region.”

The creation of a regional market for TDR credits will allow them to be bought and sold on a much larger scale.  Transferring development rights is seen as a key tool in the effort to slow the conversion of rich farmland and productive forests in the region.  TDR is effective because it is driven by market forces, meaning landowners get a fair price for selling development rights and developers are able to benefit from the higher densities achievable with their purchase.

Conserving farmland and forestland gives future generations options and choices, and helps guide and maximize public investment. Protecting natural services as basic as clean air, clean drinking water and floodwater control is an extraordinary bonus.

In 2007, the Legislature approved a measure to begin studying a regional TDR market.  The Conservancy, CTED, the citizen’s policy advisory committee and other stakeholders have been working since then to refine the legislation signed today.  In addition, the Legislature appropriated $3 million in the capital budget for pilot projects that demonstrate the feasibility of TDRs in conserving small family forests.

Several hurdles remain to be cleared. With severe budget restrictions, the bill was passed without any state funding. Implementation is subject to the availability of outside funds, which the Conservancy, in partnership with the Puget Sound Regional Council, CTED and King, Pierce and Snohomish counties, is currently pursuing.

Other actions by the 2009 Legislature supported by the Conservancy:

•    Allowed land trusts and other non-profit groups to compete for Washington Wildlife and Recreation Program grants. The program was also funded in the state capital budget at $70 million, a commitment to conservation and the environment despite severe revenue shortfalls.

•    Expanded the compensating tax exemption for land in conservation to Pierce and Snohomish Counties. Previously, forest land in the counties was taxed when it was converted to other uses even if that conversion was to a conserved status.


“I know the Cascade Land Conservancy has been one of the most ardent supporters of this program,” Gregoire said. “Thank you for your work to protect the health of our state.”

Two key supporters of the bill also were present at the Conservation Awards Breakfast.

“Transfer of Development Rights is a way to let the free market help preserve farms and forests, while making our communities more livable and efficient,” said Rep. Geoff Simpson, the prime sponsor of the bill in the House. “This bill saves taxpayers untold millions in wasted infrastructure expenses. Why build more roads, sewers, water lines, schools, fire stations, libraries and criminal justice facilities when we just can squeeze more efficiency out of the ones we already have? That’s why I sponsored HB 1172 and have worked for years to increase the use of TDRs in Washington.”

“House Bill 1172 creates a new approach for how we develop in which everybody wins,” said Sen. Fred Jarrett, (D-Mercer Island), who sponsored the bill in the Senate. “Instead of ‘taking’ from some and ‘giving’ to others, this bill creates the opportunity to share the benefits of development fairly.”