Home Join 1000 Friends
Building Better Communities
  Join 1000 Friends

Affordable HousingFlorida PlanningHistoric PreservationLegal AdvocacyNatural ResourcesPublicationsSmart Growth LinksSpecial ProgramsTransportationWater Resources
Charlotte County Transfer of Development Units
Fact Sheet
March 2007
  • The necessary first step for a comprehensive TDU program is the compilation of data on the natural resources. TDU programs must begin with the assessment of sound and defensible science and data. Such an assessment should be based on data and analysis of components such as, groundwater resources, flowway connectivity, adequate stormwater retention and treatment, and restoration of key hydrologic and habitat corridors. After this information has been collected and compiled, then it should be analyzed, perhaps in a serious of overlays, to determine the areas where resources are located and in need of protection through good planning. The environmentally sensitive areas should then be designated as Sending Lands, where more protection is provided. The less sensitive areas would be classified as Receiving Lands, with fewer restrictions and the potential intensification of development through purchase of Sending Lands credits.
  • Another key ingredient for a successful TDU program is to have the Charlotte County Commission not only understand the program, but also fully support the necessity of transferring units from one part of the County to another, in order to protect natural resources and ensure proper growth management.
  • Support needs to be unanimous for a TDU program to be viewed in a positive manner by the community. With the Commission supporting the program, your community will be more likely to show a willingness to participate in the program.
  • Beyond understanding the resources to be protected, the community must also understand the mechanisms of the program. Assurances must be given that a TDU program will create a flexible and equitable process for allowing appropriate development, while protecting not only the necessary natural resources but also protecting property owners' rights. Encouraging the community to participate in the TDU planning process is a good way to create understanding and avoid potential feelings of distrust.
  • A good educational program is integral to TDU programs' success, which details the overall ideas of how the community will benefit from the program.
  • An important principle to keep in mind is that for a TDU program to work, Charlotte County needs to send a consistent message that density increases will only occur on lands identified as appropriate for such development and only through the purchase of development rights as dictated by the TDU program. Thus, TDUs are seen as an incentive for property owners because it is understood that participation will allow for greater density on the designated Receiving Lands. In addition, to preserve sufficient road capacity and infrastructure, the County should refrain from arbitrary increases in density. The goal is to ensure that capacity is not given away piecemeal outside of the TDU program, because if there isn't capacity left, the program will be inordinately constrained and likely to fail. If the County allows amendments, rezones or variances to increase density, property owners will not utilize TDUs. They will simply ask, and feel entitled to, increases in density as a right without TDR participation.
  • Another key ingredient for a successful TDU program is a market for the product. There must be those motivated to sell their TDUs and there must be an interested buyer. Incentives are important, but will only go so far. There must be a demand. Within Charlotte County, the demand seems solidly established, based on recent development requests and approvals. It is obvious that there are property owners who desire to increase the density on their land. Based on this assumption, you may want to revisit your TDU program to ensure there is the ability to readily purchase TDUs though an easily utilized process that provides an incentive for program participation.
  • One area where Charlotte County could be proactive in ensuring the program is "user-friendly" is to explore the creation of a TDU bank to be facilitated by the County. Unlike real estate, TDUs do no have a traditional fair market value and often have no known or guaranteed price. Valuation of TDUs is generally based on the scarcity of open land, the number of rights per acre in the Sending Areas, and the demand for housing and other development in the Receiving Areas. TDU banks, usually created by government entities, resolve the valuation and marketability issues of implementing TDU programs. TDU banks can set minimum purchase prices, guarantee loans that use TDUs as collateral, and purchase TDUs outright. The traditional model of establishing a TDU bank entails seed money to buy the first TDUs prior to their sales. This money has usually been supplied by the local governments in other areas where TDU banks have been established. In addition, the record keeping of TDU transactions that would result from a bank administering the TDUs would be a measure to gauge the ultimate TDU sales figures and the progress of the program through its implementation.