Fact Sheet #4
Purchase of Development Rights
Purchase of Development Rights (PDR) programs have been used successfully in many areas around the nation. They were pioneered in Suffolk County, New York in 1974 and have since been used across the nation to preserve an estimated 400,000 acres of farmland alone. Programs focused on natural areas and other open spaces have protected additional acreage.
Description
Under a PDR program, a landowner voluntarily sells his or her rights to develop a parcel of land to a public agency or a charitable organization interested in natural resource conservation. The landowner retains all other ownership rights attached to the land, and a conservation easement is placed on the land and recorded on the title. The buyer (often a local unit of government) essentially purchases the right to develop the land and retires that right permanently, thereby assuring that development will not occur on that particular property. The landowner is generally compensated for the value of the right to develop the land through the following formula.
General Approach - Appraisal Method
Appraised Value
for
Development |
Appraised Value
for Agriculture/Conservation |
Appraised Value
of
Development Rights |
Considerations
When considering where PDR fits into a community's land conservation plan, one should consider the cost involved in purchasing development rights on a significant amount of land. In areas with high growth pressure, the cost of a PDR program can be high as the difference between development value and conservation value increases. Used strategically, however, a PDR program can be an effective tool to help maximize a community's conservation efforts. Money for PDR programs can be raised through a variety of means, including bonding initiatives, private grants, and various taxation options. Many communities have found matching dollars from state and federal sources. Additional considerations are noted on the back side of this fact sheet.
Where It Is Working
One of the most successful PDR programs in the country is run by the Agriculture Preserve Board of Lancaster County, Pennsylvania. It has preserved over 23,500 acres of farmland since 1981.
Closer to home, Dunn Township, Wisconsin, located near Madison, initiated a PDR program in 1996. In 1997, the Minnesota legislature passed enabling legislation to explicitly allow local units of government to develop and utilize PDR programs.
The Green Corridor Project was successful in developing Minnesota's first Purchase of Development Rights program. Washington County is currently the only county in the state to use PDR.
Selected State and Local PDR Programs
Washington County, located in the East Metro Region is the first county in Minnesota to adopt and implement a PDR ordinance. In June of 2001, the County purchased four properties totaling 142 acres of key open space and farmland. In June of 2002, the county allocated an additional $250,000 to continue the program.
The Green Corridor Project
is dedicated to helping Washington and Chisago County residents keep the beautiful countryside, farmland, and special natural areas that make this a great place to live. The project is an independent network of the seven local public and private organizations listed on the front of this sheet. For more information, call 1000 Friends of Minnesota or any of the project collaborators.
Fact Sheets in This Series
#1 – The Green Corridor Project…Keeping Open Spaces for Tomorrow
#2 – The Land Protection Toolbox
#3 – Donated Conservation Easements
#4 – Purchase of Development Rights
#5 – Transfer of Development Rights
#6 – Land Acquisition
#7 – Financing Open Space Protection
Funding for this project approved by the Minnesota Legislature: ML1997, Chapter 216, Section 15, subdivision 9(d) as recommended by the Legislative Commission on Minnesota Resources, from the Environmental Trust Fund.