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September 30, 1982
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COL1J\ITY COUJ\10L
Comite of l l,nraii
Hawaii Counte 13tcil,luig
Hilo, H.ntau 96720
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TO: Takashi Domingo, Chairman
Planning Committee
FROM: Stephen K. Yamashiro, Council Chairman
SUBJECT: A Bill Relating to Establishing a Transfer of Development
Rights System
Our island, the County of Hawaii, is rich and diverse in
natural, cultural and historical resources. Its lands are
relatively unpopulated and undeveloped. I am concerned about our
ability to provide a climate for progress and growth while
preserving those resources that make this island what it is. Recent
planning decisions have been extremely difficult to resolve because
the conflicts we faced had no easy answer. Our. County government
can no longer put up a smoke screen that filters out the interests
of the private sector. if this continues, our free enterprise
system will deteriorate fu_r.ther. This legislation attempts to
mitigate repressive action and provides a positive choice for
everyone.
The attached bill will set up a system called Transfer of
Development Rights (TDR). TDR is a planning and zoning device that
recognizes one's "right to develop" on one property and provides a
means to transfer those rights to another property. The purpose of
TDR is to relocate potential development from critical impact areas
to areas of minimal impact.
The TDR concept recognizes that ownership of land consists of
several rights, one being the right to develop the land within the
limitations applied by zoning. Once these rights are sold, they are
removed from the property and transferred to another. The property
which has sold its rights is restricted to a use which serves the
public benefit. Compensation to the property owner for restricting
the use of the property is derived from the sale of the development
rights. In this manner, the welfare of the public is achieved
through the preservation of valued scenic, historic, and cultural
resources.
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COUNTY COUNCIL
County Of Naumii
Harvair Cnrmly Buil:iruG
Nilo, Hawaii 96720
Takashi Domingo, Chairman
Page 2
September 30, 1982
This bill incorporates a two-pronged approach to the transfer of
development rights. One avenue would establish districts which
would donate or grant these rights to districts which would receive
these rights. Designating these districts would be determined in
relation to the General Plan. The sale and transfer of developments
rights are by private market negotiation on a voluntary basis. The
actual transfer of rights from a granting to receiving property does
not occur until final project approval, thus, ensuring marketability
and discouraging speculation or stockpiling. Upon plan approval,
the granting property is encumbered with a Preservation Easement
outlining restrictions on the future use of the property. 'An
Optional Density Permit is simultaneously issued specifying the
increased allowable density and other conditions placed on the
receiving property.
The second approach grants developmen7 rights to a landowner
affected by downzoning. These rights can be sold or transferred to
another parcel with the same zoning designation. A transfer plan
will be reviewed, heard and approved/denied by the Planning
Commission
The role of government in this. TDR system is essential. The
delineation of granting and receiving districts becomes a crucial
component in the process because it cites where development will
occur. Thereafter, the review and approval of transfer and plans
would be implemented administratively. In addition, it will be
necessary to monitor the free market transfers of development rights
for fluctuations on supply and demand. Sufficient rights for sales
and an equal amount of development area to accommodate those rights
provides a balance in the transfer market..
Although a relatively new concept, I appreciate the
consideration you will be giving this bill.
Att. t 1'ic I