Selliing Development Rights

[two_bit_score]

We are reviewing sell of Development Rights or Conservation Easements. Could anyone provide Pros/Cons while keeping your privacy? I was not sure of the Forum. Thank you, Jim

What are the benefits YOU expect to get from the sale of your development rights?





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[DKCDKC]

Since funds for purchase of development rights - sometimes private, sometimes governmental - is limited, they usually try to target land most at risk for development. In our area, that means they go for land along major highways or with good access, and that is close to installed utilities. My land is not that convenient to either, so they consider me a very low threat for development I guess. I was told it would also depend on how many persons in my area wanted to sell rights. If they could get 1,000 acres or more, that would also get a higher priority.

It is a permanent move. You cannot change your mind at some point in the future and develop. In my case, since my kids say they would never sell the land, I am not that concerned. And, because I own the high ground or hills around my spread, no one else could ever build so they could look in or down on me. I would not like to be surrounded by "little boxes" and, thanks to geography, won't have to. But it is a decision to be entered into very carefully.

 

[sfloggie]

Two bit,
I will answer your question once I am away from work and can think. The reasons have been intertwined in my families thoughts and a degree of public consciences (or lack of).
I will think about them all and give you MY benefits sooner than later.
Jim

 

[sfloggie]

Well said DK.

 

[two_bit_score]

Thanks, Jim. It would help to evaluate your question if we knew what you were expectingout of the deal. There many be a lot of differences between what is involved in your state and mine.

Here is a link to a very goid good document on Texas Conservation Easements.

http://www.tpwd.state.tx.us/publications/pwdpubs/media/pwd_bk_w7000_0022.pdf
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It may not help you, Jim. But it may be of interest to others.


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[tlbuser]

Are you maybe referring to transfer development rights? TDR's give you cash flow now, let's you keep the land, but there will not be any future development on the parcel (depending on how many TDR's you sell). Example, all but 2 of the TDR's were sold off of an 80 acre parcel near me for $400,000.00. This left 2 buildable sites on the parcel. The 80 acre parcel was later purchased from the heirs for $280,000.00 (average lot value is $50,000.00 for the area).

Transfer of Development Rights Programs

http://www.farmlandinfo.org/documents/27746/FS_TDR_1-01.pdf

 

[TCJatko]

One should also consider income tax implications. Done improperly, a considerable amount of your proceeds could go to the tax man.

 

[sfloggie]

Two Bit: I appreciate the Texas document. It was very informative and most , if not all, apply in VA. I sent you a private message that I hope make sense.

TC: If we do it..we would do the PDR instead of a TDR. The TDR would allow (as I read) the county to sell the development rights to a developer whereas the PDR does not allow so. Selling TDR to a developer gives them access to other areas for development, not the place (such as ours) that sold.

An example: In our area there are wetlands called Midigation Wetlands or something close to that. A developer can purchase a portion of this wetland in order to offset filling a like amount of wetland in their development. Sounds crazy to me, but it is a process.

I am still not sure if I want to do anything, as this site and those such as Two Bit and you have made me dig deeper and think "do I want more government".

Thank you,
Jim