The Transfer of Development Rights (TDR) Administrative Code establishes procedures for the operation of the City's TDR Program. The TDR Program is designed to advance the goals of the State’s Growth Management Act by providing a tool to advance the City’s conservation goals, historical preservation goals, and built environment goals by encouraging the voluntary redirection of development potential away from areas where the City wants less or no development potential, called sending areas, toward areas that the City has designated as suitable for bonus development potential, called receiving areas.
(Ord. 28087 Ex. A, 2012-09-25)
“Baseline development potential”
is the maximum development density or intensity allowed in TDR receiving areas when property owners choose not to use the bonus palette in Title 13 TMC to achieve bonus height.
“Bonus development”
is development that exceeds baseline development potential in accordance with this chapter and the TDR provisions in Title 13 TMC.
“Receiving areas”
are lands designated by this chapter which TDRs can be used in compliance with this chapter and Title 13 TMC.
“Sending areas”
are lands or structures qualified to generate TDRs for use within receiving areas in compliance with this chapter.
“Sending area TDR allocation”
means the number of TDRs that a sending area owner is issued per acre or lot conserved, or per landmark structure preserved.
“TDR administrative procedures”
are procedures in Title 1 TMC that implement this chapter and the TDR bonus provisions in Title 13 TMC.
“TDR manager”
is an employee of the Tacoma Planning and Development Services Department tasked with accomplishing the duties specified by this chapter.
“Transferable development rights (TDR or TDRs)”
are whole or fractional units of development potential transferred from sending areas that can be used in receiving areas to increase development density or intensity in compliance with this chapter.
(Ord. 28087 Ex. A, 2012-09-25; Ord. 28230 Ex. A, 2014-07-22)
The following five categories of land or structures qualify as sending areas:
A. 
Pierce county farm land. Farm land designated as Agriculture Resource Land (ARL) in unincorporated Pierce County situated in Pierce County’s Puyallup Valley (Alderton-McMillin or Mid County Community Planning Areas).
B. 
Pierce county forest land. Forest land designated as Forest Land (FL) situated in unincorporated Pierce County.
C. 
Resource lands in King County and Snohomish County.
D. 
Tacoma habitat. Lands providing high habitat and natural value located within, or in proximity to, designated Open Space Corridors in the Comprehensive Plan, and lands providing exceptional habitat and natural value located within the City and outside of the designated Open Space Corridors.
E. 
Tacoma landmarks. Structures designated as a landmark as identified in the Tacoma Register of Historic Places.
Publicly owned lands are not eligible sending areas. Public or privately owned lands that are currently encumbered by a perpetual conservation easement or a similar instrument are not eligible sending areas.
The City may modify eligible sending areas situated in unincorporated Pierce County or unincorporated King County and Snohomish County through an interlocal agreement or resolution that references Chapter 365-198 WAC. In the event that the City modifies eligible sending areas with an interlocal agreement or resolution, the terms of the interlocal agreement or resolution are controlling.
(Ord. 28087 Ex. A, 2012-09-25; Ord. 28230 Ex. A, 2014-07-22; Ord. 28376 Ex. E, 2016-08-16)
With the sole exception of Tacoma Landmarks, property owners who participate in the TDR Program shall record a conservation easement on the sending area property that achieves the following standards:
A. 
For sending areas situated in unincorporated Pierce County, the sending area must be encumbered by a conservation easement approved by Pierce County.
B. 
For sending areas situated in unincorporated King County, the sending area must be encumbered by a conservation easement approved by King County.
C. 
For Tacoma Habitat, the sending area must be encumbered by a conservation easement approved by the City.
D. 
For Tacoma Landmarks, the sending area must continue to be regulated by the landmark development controls and a conservation easement specific to the sending area property.
All conservation easements used to achieve development bonuses encumber real property pursuant to this chapter and Title 13 TMC must be conveyed in a manner consistent with RCW 64.04.130. The grantee of the conservation easement must be the City or a third party with the express right to enforce the terms of the conservation easement.
(Ord. 28087 Ex. A, 2012-09-25)
Upon recordation of a qualifying easement, TDRs shall be issued to the participating sending area property owners as follows:
A. 
For sending areas situated in unincorporated Pierce County, Pierce County will establish the sending area allocation ratios for the TDRs that are consistent with Pierce County Code 18G.10.040, or any amendment thereof.
B. 
For sending areas situated in unincorporated King County, King County will establish the sending area allocation ratios for the TDRs that are consistent with King County Code 21A.37.040, or any amendment thereof.
C. 
For Tacoma Habitat sending areas:
1. 
For residential zones: one TDR for each forgone parent lot allowed by the property’s current zoning.
2. 
For nonresidential or multifamily zones: one TDR for each 8,000 square feet of potential but foregone floor area allowed by the property’s current zoning.
3. 
In determining development potential for this purpose, the TDR Manager shall make a reasonable estimate of the number of dwelling units or square feet of floor area buildable on the sending area under its current zoning restrictions and all other applicable land use, development standards, and environmental controls (e.g. applicable setbacks, infrastructure requirements, or critical area regulations).
D. 
For Tacoma Landmarks sending areas: the transferable floor area from Tacoma-designated landmarks shall be the maximum square feet of floor area achievable within the area’s zoning and other applicable codes minus the floor area of the designated landmark.
1. 
Designated Tacoma landmarks DCC-Downtown and DCC-City Hall: one TDR per 600 square feet of foregone or unused potential floor area allowed by the property’s current zoning.
2. 
Designated Tacoma Landmarks not within DCC-Downtown and DCC-City Hall: one TDR shall be allocated per 1,200 square feet of foregone or unused potential floor area allowed by the property’s current zoning.
(Ord. 28087 Ex. A, 2012-09-25; Ord. 28230 Ex. A, 2014-07-22; Ord. 28613 Ex. A, 2019-09-24; Subst. Ord. 28986 Ex. E, 2024-11-19)
In zones where Title 13 TMC expresses bonus development in terms of height, the number of TDRs required to obtain a development bonus shall be calculated using square feet of bonus floor area.
As provided in Title 13 TMC, the relevant zoning regulations for each TDR receiving area establish the property’s base height limit development potential and the ability to use TDRs to achieve the property’s maximum development potential. TDRs may be used as follows to achieve the height bonus as provided in Title 13 TMC:
A. 
For sending areas situated in unincorporated Pierce County: one TDR allows 5,000 square feet of bonus floor area.
B. 
For sending areas situated in unincorporated King County: one TDR allows 10,000 square feet of bonus floor area.
C. 
For Tacoma Habitat sending areas: one TDR allows 15,000 square feet of bonus floor area.
D. 
For Tacoma Landmarks sending area: one TDR allows 10,000 square feet of bonus floor area.
Project applicants may use TDRs from one or more sending sites for an individual project. If the project results in unused TDRs, the City’s TDR Manager shall, upon the project applicant’s request, mark the TDR certificate as having a fractional TDR value. Fractional TDRs may be transferred to third parties.
(Ord. 28087 Ex. A, 2012-09-25; Ord. 28157 Ex. A, 2013-06-25; Ord. 28613 Ex. A, 2019-09-24)
The following must occur before the City recognizes a TDR for bonus development purposes:
A. 
For sending areas situated in unincorporated Pierce County: the TDR must be certified pursuant to the Pierce County Code 18G.10.070, or any amendment thereof. For the purposes of this TDR program, the City will honor Pierce County’s transferrable development credits (TDCs) as TDRs on a one to one basis.
B. 
For sending areas situated in unincorporated King County: the TDR must be certified pursuant to the King County Code 21A.37.070, or any amendment thereof.
C. 
For Tacoma Habitat sending areas:
1. 
Prior to recordation of a conservation easement on an eligible TDR sending area, the landowner shall submit an application, application fee and proposed, unsigned easement in compliance with the TDR Administrative Procedures. This application shall include the documentation required by the TDR Administrative Procedures to prove ownership. All lien holders must provide written consent to the recordation of the proposed easement.
2. 
When the TDR Manager and the applicant agree that all requirements have been satisfied, the easement shall be signed and recorded. The grantee may be the City, another governmental entity, or an authorized conservation organization acceptable to the City.
3. 
Upon recordation of the easement, the TDR Manager shall issue to the applicant a specified number of TDRs, each with a serial number. The TDR Manager shall document the issuance and retirement of all TDRs as well as all transfers of TDR ownership in accordance with the TDR Administrative Procedures. TDRs from the same sending area are not required to be transferred or retired as a group. In accordance with the TDR Administrative Procedures, TDRs may be transferred together or individually. Any person, organization or government, including the City, may acquire TDRs and hold them for preservation purposes or resale.
D. 
For Tacoma Landmark sending areas:
1. 
The owners of designated Tacoma landmarks who choose to participate in the TDR program shall submit an application and application fee. This application shall include the documentation required by the TDR Administrative Procedures to prove ownership.
2. 
When the TDR Manager and the applicant agree that all requirements have been satisfied, the TDR Manager shall issue to the applicant a specified number of TDRs, each with a serial number. The TDR Manager shall document the issuance and retirement of all TDRs. TDRs from the same sending area are not required to be transferred or retired as a group. In accordance with the TDR Administrative Procedures, individual TDRs may be transferred together or individually. Any person, organization or government, including the City, may acquire TDRs and hold them for preservation purposes or resale.
(Ord. 28087 Ex. A, 2012-09-25)
Developers who intend to exceed baseline development potential in a TDR receiving area, as identified in Title 13 TMC, shall acknowledge in development-related application materials that they will be required to submit the prescribed number of TDRs at the time the developer submits the building permit application. Preliminary application approval, where applicable, will indicate the estimated number of TDRs required prior to final approval. Applicants are not required to own or control TDRs at the time of submitting the application, and TDRs do not impact a project’s ability to vest to current regulations. Instead, applicants shall submit the prescribed number of TDRs prior to the City’s issuance of building permits.
Developers may obtain TDRs directly from a sending area landowner, from TDR banks, or from any other intermediary.
Final building permit approval shall not be granted until the TDR Manager has provided written documentation of compliance with TDR requirements. The serial numbers of all TDRs shall be recorded on the building permit for all projects using TDRs.
(Ord. 28087 Ex. A, 2012-09-25)
A. 
The TDR Manager shall maintain a TDR registry documenting the ownership history of all TDRs by serial number from the time they are granted to the sending area owner to their retirement in a receiving area development.
B. 
The TDR Manager may adjust the value of a serially numbered TDR to reflect TDRs that have been partially used as contemplated in this chapter.
C. 
Upon the City Council’s request, the TDR Manager shall prepare for City Council an annual TDR report documenting all TDRs issued, transferred and retired. The report may include recommendations on amendments that could improve the effectiveness of the TDR program. If necessary, the TDR Manager may recommend establishing limits on the number of TDRs from any of the sending area categories or other mechanisms designed to maximize achievement of City goals including but not limited to compliance with the requirements of a TDR-based Tax Increment Financing District (as authorized in Chapter 39.108 RCW).
D. 
The TDR Manager shall recommend adjustments in 1.37.060 as market conditions change in a significant manner.
(Ord. 28087 Ex. A, 2012-09-25)