HomeMy WebLinkAboutTDC Update
DATE: January 26, 2015
TO: Deschutes County Board of Commissioners
FROM: Nick Lelack, Director
Peter Gutowsky, Planning Manager
Todd Cleveland, Environmental Health Specialist III.
RE: Transferable Development Credit (TDC) Advisory Committee / Recommendation
I. BACKGROUND
TDCs, which include Pollution Reduction Credits (PRCs), are associated with the Regional
Problem Solving and Groundwater Protection projects in southern Deschutes County. TDCs,
which have been in place since 2003, are deeded restrictions on future property development.
They are acquired voluntarily in designated areas for the preservation of water quality and open
space. The acquisition of TDCs is one option for developers of new parcels in the Newberry
Neighborhood in the city of La Pine. Similarly, PRCs, which were added to the program in 2006,
certify the placement of a nitrogen reducing septic system in qualifying areas. They may be
purchased as an alternative option to allow Newberry Neighborhood development. Revenue
associated with TDCs and PRCs, together with Newberry Neighborhood land sale proceeds and
other revenue sources, provide financial assistance to South County residents in implementing
actions which reduce the amount of nitrates potentially entering the groundwater and therefore
protecting the source of drinking water in the area.
In addition to funding sewer feasibility studies on an as-needed basis, financial assistance from
this program has enabled rebates to be paid to South County property owners who have
installed nitrogen-reducing septic systems. Low interest cost-deferred loans have also been
made available to property owners to fund complete septic system replacement for those who
may not otherwise qualify for project financing.
II. TDC ADVISORY COMMITTEE
Reconvening the TDC Advisory Committee was a high priority of the Board of County
Commissioners (BOCC). It directly relates to one of their FY 2014/2015 Goals and Objectives:1
County Goal: Robust Economy
o County Objective #4: Support land use policies that promote beneficial utilization of the
land for economic growth
1 http://www.deschutes.org/Finance/Budget-and-Finance/Budgets/FY-2015-Proposed-Program-Budget.aspx. Page
12.
-2-
CDD Department Measure: Reconvene the TDC Advisory Committee to determine if
changes are needed to facilitate economic growth in La Pine’s New Neighborhood in
conjunction with groundwater in rural southern Deschutes County.
Deschutes County Code (DCC), Chapter 11.12 codifies the TDC Program.2 DCC 11.12.040
specifically addresses the TDC Advisory Committee’s purpose, duties, and membership.
Members are selected by the Community Development Department (CDD) based on the
knowledge and expertise that each member may contribute to the development of the TDC
program.
CDD received commitments from the following members:
Table 1 – TDC Advisory Committee
Bob Baggett, Oregon Department of Environmental Quality
Dennis Pahlisch - Pahlisch Homes
Ed Criss, Deschutes Co. Planning Commissioner – South County Region
Jon Jinings, Oregon Department of Land Conservation and Development
Judy Forsythe, Deschutes County Citizens Action Group
Kate Fitzpatrick, Deschutes River Conservancy
Michael Bentz, Myco Excavation
Monte Dammarell, South County Resident / Property Owner
Rick Allen, Interim La Pine City Manager
Ted Scholer, Retired Realtor
Vic Russell, Excavation / Finley Butte Aggregate
III. RECOMMENDATION
The TDC Advisory Committee convened on August 21 and conducted a total of five meetings.3
On December 18, members reviewed a matrix of options and identified their top two choices
(Attachment). Table 2 summarizes their recommendations.
Table – TDC Advisory Committee Recommendations
Majority Recommendation
Status quo
Reconvene TDC Committee in 24 to 36 Months
Other Observations
TDC/PRC program does not work for Vic Russell
Pahlisch Homes, as the primary builder of the Neighborhood Planning
Area, expects equitable treatment.
o If the program stays in place, other developers should meet
their share of the TDC/PRC obligation
o If the program is terminated, Pahlisch should be compensated
to offset their acquired PRCs
Attachment:
Matrix of Options
2 http://www.deschutes.org/County-Code.aspx?F=chapter+11.12.pdf
3 http://www.deschutes.org/Community-Development/Regional-Projects-and-Resources/Transferable-Development-
Credit-(TDC)-Advisory-Com.aspx