§ 35.454

The provisions of this Chapter shall apply to eligible Naples Townsite sender lots and designated receiving sites along the South Coast of Santa Barbara County.

The Section provides definitions of terms and phrases used in this Chapter that are technical or specialized, or that may not reflect common usage. If any of the definitions in this Section conflict with definitions in other sections of this Development Code or other provisions of the County Code, these definitions shall control for the purposes of this Chapter.

Amenity funds. A percent of the revenue collected from TDR Authority sales of Transferable Development Credits that are set aside to fund infrastructure and park/recreational enhancements in receiving site neighborhoods as both an incentive and reward for accepting increased density.

Base density. The number dwelling units allowed on the receiving site under the property's current zoning.

Conservation easement. A legal deed restriction recorded on the title to the property that severs in perpetuity the right to develop dwelling unit(s), commercial, and/or industrial facilities on said property.

Development right. One of the rights associated with land ownership that entitles a landowner to develop his property in compliance with the local government Comprehensive Plan and zoning regulations. For purposes of this Chapter, a development right is limited to principal permitted uses (i.e., uses that do not require the approval of a Conditional Use Permit or Minor Conditional Use Permit in compliance with Section 35.472.060 (Conditional Use Permits) that entail physical alteration of real property including residential, commercial and industrial uses; however open space, grazing and agricultural crop production are expressly excluded.

Grid lots. Legal lots recognized under the Official Map.

Inter-jurisdictional agreement: A legal agreement to transfer development potential between the County and a Participating Entity. The agreement articulates the conditions tied to the transfer of development rights to ensure that both jurisdictions mutually benefit.

Naples lots. One or a combination of: (a) grid lots; or (b) reconfigured lots resulting from lawful mergers, line adjustments and re-divisions approved by the County in connection with rezoning of all or part of the Naples Townsite pursuant to Coastal Land Use Plan Policy 2-13.

Naples Townsite. The area encompassed by the Official Map.

Neighborhood Enhancement Projects. Infrastructure and park/recreational enhancements constructed in receiving site neighborhoods as an incentive or concession to approving receiver sites which are in addition to any developer impact fees or mitigation otherwise required in compliance with the California Environmental Quality Act.

Official Map. The Official Map of Naples approved by the Board on October 3, 1995, and filed for the record on December 19, 1995, in Book 99, at Pages 4 through 9 of Maps.

Participating Entity. A governmental organization having land use authority within Santa Barbara County (e.g., incorporated Cities, University of California, California Division of Fairs and Expositions, United States Government, etc.) that has entered into an inter-jurisdictional agreement to participate in the Transfer of Development Rights program.

Pre-screen. A preliminary application and non-binding advisory determination of the appropriate density for a potential receiver site.

Receiving site. Legal lot(s) the County (or Participating Entity) has determined to be appropriate for increased development density with the purchase of transferable development credits.

Rural and Urban areas. Rural and Urban areas as designated on the Comprehensive Plan maps.

Sending site. Legal lots identified by the County pursuant to Section 35.454.050 (Sending Sites), the underlying development rights to which, at the landowner's discretion, may be severed and sold to the TDR Authority.

South Coast. The unincorporated area located east of Highway 101 at Gaviota, south of the ridge of the Santa Ynez Mountains, and west of the Ventura County line.

TDR Authority. The Transferable Development Rights Authority established pursuant to Section 35.454.090, which may be a governmental agency, or a non-governmental agency such as a local land trust or national conservation organization, established and given authority by the County to buy transferable development rights and sell transferable development credits.

Transferable Development Credit. A certificate which grants one additional dwelling unit above base density, on specified receiving sites, that can only be purchased from the TDR Authority.

Transferable Development Credit Density Bonus. The number of additional units above base density that can be built in association with a County approved receiving site project with the purchase of transferable development credits.

Transferable Development Rights. Development rights, as defined in this Chapter, from sending sites that can voluntarily severed from the associated with the property's ownership at the initiation of the landowner and sold to the TDR Authority.

The Department and Director shall have principal responsibility for administration of Transfer of Development Rights under the provisions of this Chapter. Except or unless otherwise noted, the provisions

of this Chapter are expressly applicable to the County. Terms, conditions and procedures applicable to Participating Entities shall be clarified through inter-jurisdictional agreements.

A.

Sending site eligibility. Properties that meet all the criteria listed below shall qualify as eligible sending sites:

1.

Lots within the Naples Townsite that the Board prioritizes for transfer in compliance with goal number one of Subsection 35.454.010.C.

2.

If lots have not received approval for rezoning from their current agricultural designation pursuant to Coastal Land Use Plan Policy 2-13, then only the development rights that correspond to the lot arrangement shown on the Official Map shall be transferred. If rezoning occurs as provided under Coastal Land Use Plan Policy 2-13, then the development rights associated with the rezoning and lot reconfigurations (if any such lot reconfigurations are concurrently approved) shall be subject to transfer.

3.

All eligible Naples lots shall be ranked as to their priority for transfer by resolution of the Board. The rank shall determine the order by which the TDR Authority purchases transferable development rights from sending sites.

B.

Allocation of transferable development rights to sending sites. Each eligible Naples lot shall be entitled to one transferable development rights. Each transferable development right shall represent the legal right to build a primary and secondary dwelling unit on a legal lot which can be voluntarily severed from the rights associated with the property's ownership at the initiation of the landowner. Sending site transferable development rights shall only be sold to the TDR Authority.

C.

Sending site application process.

1.

Application. Landowners of lots that meet the eligibility requirements under Subsection 35.454.050.A and desiring to sell their transferable development rights shall file with the Department an application containing two copies of a preliminary title report no older than six months concerning the lot.

2.

Notice of eligibility. Following submittal of an application, the Department shall prepare a written notice to the applicant that confirms the lot(s) as those the Board has approved, the lots priority rank, and a

statement of the number of transferable development rights that can be allocated to each approved Naples sending lot.

3.

Issuance of sending site certificate. Following recordation of a conservation easement(s), a certificate allocating transferable development rights shall be issued to the owner(s) of the property by the Department. A transferable development rights certificate shall be issued for each transferable development rights assigned to a legal lot as determined by Subsection 35.454.030.B that has a recorded a conservation easement. The certificate shall include a full legal lot description and its respective priority ranking.

4.

Sending site transferable development rights. Sending site transferable development rights shall only be available for purchase by the TDR Authority, in order of their respective prioritization, after a certificate allocating transferable development rights has been issued to the lot owner(s) by the Department.

5.

Record of conservation easement. As a condition prerequisite to the TDR Authority's purchase of transferable development rights, evidenced by certificates issued pursuant to this section, a conservation easement shall be recorded as a deed restriction on the property's title (or equivalent legally enforceable mechanism). The conservation easement (or equivalent legally enforceable mechanism) shall be reviewed and approved by County Counsel prior to its recordation or execution. The easement (or equivalent legally enforceable mechanism) must sever, in perpetuity, the development right(s) from ownership of the property.

35.454.060 - Receiving Sites

A.

Receiving site eligibility.

1.

Unincorporated County sites. Unincorporated properties that qualify as eligible receiving sites to exceed base zoning density through the purchase of transferable development credits as defined in Section 35.454.030 (Definitions) of this Chapter must comply with all the following criteria:

a.

The site must be located within the County's South Coast Housing Market Area as delineated in the County's Housing Element.

b.

The site must be within an Urban area as designated on the Comprehensive Plan maps.

c.

The developable footprint of the site must have less than 30 percent slope.

d.

The developable footprint of the site must not be located in a designated flood or geologic hazard area.

e.

The developable footprint of the site must not be under agricultural production or contain any land rated as Class I or Class II in the Natural Resource Conservation Service land use capability classifications.

f.

The developable footprint of the site must not be located in an environmentally sensitive habitat area.

g.

The developable footprint of the site must not be located in a culturally or archaeologically sensitive area.

2.

Participating Entity sites. Properties within the land use authority of a Participating Entity that qualify as eligible receiving sites to exceed base zoning density through the purchase of transferable development credits, as defined in Section 35.454.030 (Definitions) of this Chapter, shall be determined by the Participating Entity in accordance with the terms and conditions of the inter-jurisdictional agreement.

B.

Receiving site application process/determination of density bonus. The processing of applications for receiver site designation and award of density bonus shall be expedited to the maximum extent feasible. The following procedure shall be used to approve receiving sites and identify the density bonuses obtainable on eligible receiving sites through transferable development credit purchases.

1.

Landowners seeking designation of their properties as eligible receiving sites must file an application with the Department. The application must include the lot(s) Assessor's Parcel Number(s), current property ownership, preliminary title report not more than six months old, current zone designation and evidence supporting that the site meets the eligibility criteria.

2.

The Department shall, within 30 days of the date an application is accepted as complete, notify the applicant if the site is an eligible receiving site based on the criteria of Subsection 35.454.060.A.

3.

Sites that are determined to be eligible receiving sites shall require a pre-screen by the Commission, upon recommendation of the Director, to set: (a) the base density, and (b) the maximum allowable density obtainable on the site with transferable development credit purchases. The applicant must submit a

preliminary draft conceptual plan and processing fee for the pre-screen analysis. The Director shall evaluate the application and report its findings to the Commission in the form of a recommendation as follows:

a.

The matter shall be considered by the Commission at a noticed, public hearing with notice provided in the time and manner required for Development Plans in compliance with Section 35.472.080 (Development Plans).

b.

The base density shall represent the number of dwelling units allowed on the property under its existing zone designation;

c.

The Director shall recommend an assignment of maximum density based upon neighborhood compatibility and existing surrounding land uses. This preliminary staff study shall serve as an initial assessment in an eventual environmental review in compliance with the California Environmental Quality Act to achieve final receiving site approval in compliance with Subsection B.4, below.

d.

The Commission may accept, reject or modify the recommendation of the Director. The Commission's determination of maximum density is not vested "by right" to the property; rather, it shall only represent a maximum number of additional units not be exceeded with transferable development credit purchases. The actual additional transferable development credit density granted to the property shall be determined in compliance with Subsection B.4, below.

e.

The action of the Commission to determine the maximum density is final subject to appeal in compliance with Chapter 35.492 (Appeals).

4.

Following the determination of density in compliance with Subsection 35.454.060.B.3, the applicant may submit a development application seeking a density less than or equal to the maximum density determined in compliance with Subsection 35.454.060.B.3. The application shall encompass all permits required for the project as specified in this Development Code and shall include, at a minimum, a Development Plan that provides details on the physical attributes of the project and environmental data necessary to conduct an initial study evaluation.

a.

The matter shall be considered by the Montecito Commission at a noticed, public hearing with notice provided in the time and manner required in compliance with this Development Code. All permit applications associated with the proposed project, as well as the related environmental documents, shall be noticed and heard concurrently.

b.

If and when the development application is approved or conditionally approved, the Department will calculate the transferable development credit density bonus which shall reflect the number of transferable development credits available to the project based on the difference between the previously determined base density and the project density as approved by the County. The following criteria shall apply in calculating the transferable development credits density bonus:

(1)

One transferable development credit shall equal one additional dwelling unit above base density.

(2)

The vested transferable development credit density bonus shall be an option in addition to State density bonus law for receiving site applicants to achieve greater density. Where a receiving site applicant has requested a density bonus under both State housing law and this Transfer of Development Rights program, and such request exceeds the maximum allowable density obtainable on the site with transferable

development credit purchases, State density bonus awards must be made before determining whether transferable development credits can be granted under this Transfer of Development Rights program.

c.

Affordable units required under the Inclusionary Housing Policy of the County's Housing Element shall only apply to the base density of the receiving site that is determined in compliance with Subsection 35.454.050.B.3.b.

5.

Within the 30 calendar days following the County's final action on the project, the Department shall issue to the receiving site applicant transferable development credit certificates for each of the additional dwelling units, obtainable through transferable development credit purchase, that are granted by the Commission. The issuance of transferable development credits by the County to projects that may be appealed to the Coastal Commission may also be appealed to the Coastal Commission. If the project and/or the issuance transferable development credits is appealed to the Coastal Commission, the County shall not issue the transferable development credit certificates until the Coastal Commission takes final action.

6.

The receiving site applicant shall be allowed to purchase, only from the TDR Authority, a commensurate number of transferable development credits that are granted by the Commission for each receiving site.

7.

The Department shall only grant authority to construct (e.g., Coastal Development Permit, Land Use Permit, or Zoning Clearance, and Building Permits) to a receiving site applicant for a project with additional units that have certificates possessing official TDR Authority approval as indicated in Subsection 35.454.090.E. The TDR Authority approval shall be evidence to in-whole payment(s) by the receiving site applicant for the transferable development credit(s).

The Transfer of Development Rights program shall require the TDR Authority, subject to agreement between the County and TDR Authority pursuant to Section 35.454.100.A, to allocate amenity funds, as defined in Section 35.454.030 (Definitions), as both an incentive and reward for accepting increased density in receiving site neighborhoods.

A.

Upon recommendation of the Montecito Commission, amenity funds may only be allocated by the TDR Authority for infrastructure enhancements in neighborhoods with receiving sites built at greater densities than would normally be allowed under the zone designation. The designated use of Amenity Funds, if any, shall:

1.

Be made in conjunction with the receiver site application process pursuant to Section 35.454.060.B.;

2.

Not exceed a maximum allocation of 10 percent of the value of the transferable development credits that are approved for a particular project;

3.

Only be used to fund projects benefiting the area where the receiver site is located; and

4.

Shall be in addition to any developer impact fees and mitigation required in compliance with the California Environmental Quality Act.

B.

The TDR Authority, upon the recommendation of the Montecito Commission (or Participating Entity, as the case may be), shall allocate a maximum of 10 percent of the revenue received from the purchase of transferable development credits for a particular project into an enterprise fund managed by the TDR Authority (for receiver sites within unincorporated areas) or the Participating Entity (for receiver sites within incorporated municipal jurisdictions), the monies in which shall be expressly and solely pledged to plan, design, construct, install and administer infrastructure and park/recreational enhancements in receiving site neighborhoods.

C.

For receiver sites outside of the land use jurisdiction of the County, Participating Entities shall establish their own process and procedures for receiving and allocating Amenity Funds subject to the terms and conditions set forth in the Inter-Jurisdictional Agreement pursuant to Section 35.454.100.

A.

Purpose. The County shall create a TDR Authority. The purpose of the TDR Authority shall be to:

1.

Act as the sole intermediary between transferable development rights/transferable development credit sellers and buyers to facilitate the market between the often disparate values of sending site transferable development rights and receiving site transferable development credits;

2.

Manage a fund for continued land preservation with the Transfer of Development Rights program;

3.

Hold and/or transfer conservation easements to a third party trustee;

4.

Manage and allocate amenity funds;

5.

Maintain records of all commodity transactions; and

6.

Facilitate the drafting of inter-jurisdictional transferable development rights agreements between County and Participating Entities.

B.

Administration of the TDR Authority. The County shall designate, by resolution of the Board, the entity which shall be empowered and authorized to serve as the TDR Authority. The entity designated by the County shall be a non-profit organization, among whose purpose it is to conserve open space and/or natural resources of the conservation easement, preferably with experience in administrating TDR programs and conservation easements. The designation may be changed from time to time at the convenience of the Board and shall be formalized by written agreement between the County and the TDR Authority which stipulates the terms and conditions of participation, including, at a minimum, compliance with the provisions of this Chapter.

C.

Voluntary participation. The purchase and selling price of transferable development rights and credits shall be mutually agreed-upon by the TDR Authority and the seller/buyer of such rights and credits. The valuation methodology shall be established under rules approved by the Board pursuant to Section 35.454.090.J, and neither the TDR Authority, nor the seller/buyer of the transferable development rights or credits shall be obligated to participate in transactions if one or both parties find the valuation inappropriate. For the specific purpose of transferable development credits, the maximum price for each

such credit shall calculated as a percentage of land value, sufficiently discounted to induce participation, and shall be established in connection in Section 35.454.090.J.

D.

Conservation easements. As part of each transaction involving the purchase of development rights, the TDR Authority shall record a conservation easement on the title of the sending site property (or equivalent legally enforceable mechanism). The conservation easement (or equivalent legally enforceable mechanism) must sever, in perpetuity, all rights to develop or use the property except for open space, grazing and agricultural crop production. The TDR Authority shall hold, or transfer to a third party trustee (the "Trustee") the conservation easement from said property (or equivalent legally enforceable mechanism). The Trustee shall be designated by the Board and shall be a conservation organization, among whose purposes it is to conserve open space and/or natural resources of the conservation easement.

E.

Sender site priorities. The TDR Authority shall obtain transferable development rights from sending sites in order of priority as set forth by resolution of the Board in Subsection 35.454.050.A.3. In so doing, the TDR Authority shall be required to purchase transferable development rights from lots with higher priority

ranking before purchasing transferable development rights from lots with lower priority ranking. As an example, and by way of illustrative purposes only, if the preservation of bluff lots is selected by the Board as the top priority and the overall estimated development right value of such lots is $115 million, the purchase of development rights shall be restricted to bluff lots until the amount of funds on deposit with the TDR Authority exceed this threshold. Once funds exceed the amount of $115 million, development rights can be purchased from the next highest priority category. In the event no secondary priority is selected, any lot at Naples would be eligible.

F.

Transferable development credit seller authorization. The TDR Authority can be designated as the sole seller of transferable development credits and shall be allowed to sell transferable development credits to applicants of approved receiving sites as determined in Section 35.454.060 (Receiving Sites) or other interested parties.

G.

TDR Authority expenditures of funds. The TDR Authority shall only use the revenue collected from the sales of transferable development credits in the following ways:

1.

Purchase transferable development rights from Naples sending sites.

2.

Allocation of amenity funds.

Cover administrative and overhead costs.

4.

Repay investment contract obligations made with the TDR Authority.

5.

Purposes explicitly agreed to by any contract between the County and the TDR Authority.

H.

TDR Authority management of investment funds. The TDR Authority Board, in addition to buying transferable development rights and selling transferable development credits, may seek to attract private capital and public loans or grants to capitalize the TDR Authority's revolving fund for continued land preservation.

I.

Facilitate inter-jurisdictional agreements. The TDR Authority shall serve to facilitate and negotiate with Participating Entities the terms and conditions of any inter-jurisdictional agreement involving the transfer of transferable development rights and/or transferable development credits. The TDR Authority Board shall, prior to finalization of an inter-jurisdictional agreement, seek Board approval of the conditions put forth.

J.

Adoption of rules. The TDR Authority Board shall adopt bylaws or operating guidelines that include rules for the transaction of business and shall keep a public record of its resolutions, transactions and investments. The bylaws and rules adopted by the TDR Authority Board shall be subject to review and approval by the Board of Supervisors.

35.454.100 - Inter-Jurisdictional Agreements

A.

Purpose. The County and any jurisdictions that voluntarily participate in the County's Transfer of Development Rights program shall enter into an inter-jurisdictional agreement. The purpose of such an agreement shall be to ensure that each jurisdiction can condition development right transfers such that both parties mutually benefit.

B.

Key components. A binding inter-jurisdictional agreement between the County and Participating Entity shall address at minimum the following components:

1.

Specific sending sites mutually-agreed upon by the County and the Participating Entity from which to transfer development rights.

2.

The ways by which the Participating Entity interfaces with the TDR Authority; at minimum these shall include:

a.

The terms by which the Participating Entity and the TDR Authority negotiate to determine the transferable development rights purchase price.

b.

The terms by which the Participating Entity agrees to transfer funds to the TDR Authority.

c.

The terms by which the Participating Entity uses the TDR Authority, if at all, to sell density credits in its jurisdiction.

3.

The process by which the TDR Authority pays receiving site amenity funds, if any, to the Participating Entity; this shall address at minimum:

a.

The amount of money the County is to pay the Participating Entity.

b.

The purposes for which the money will be used and how it will be expended.

c.

The timeframe for the Participating Entity to exercise the County's funds.

4.

Notification process for the Participating Entity and County to inform each other.

5.

The effective date and duration of the agreement.

6.

The conditions that would terminate the agreement.

7.

The situations that constitute Participating Entity and/or County negligence.

A.

Functional Separation. The TDR Authority's designation and appointment Section 35.454.090 shall be subject to and contingent upon the TDR Authority's acceptance of the provisions of Section 35.454.090 and other such terms as the parties may agree to including, but not limited to, liability and indemnification.

B.

Applicable Law. Nothing in this chapter shall abrogate, limit, expand or otherwise affect any powers, rights, or duties granted to, or imposed on, the Board by Division 3 of Title 3 of the Government Code or any other applicable law.

C.

Severability. If any section, subsection, clause or provision of this Chapter is held invalid, the remainder of this Chapter shall not be affected by such invalidity.

DIVISION 35.6 - Montecito Site Development Regulations CHAPTER 35.460 - ROAD NAMING AND ADDRESS NUMBERING