Article IX — TRANSFER OF LAND USE COMMODITIES

• A. Purpose and Intent. The provisions of this article set forth the requirements for regulating the transfer of land use commodities outside the city limits in conjunction with other provisions of this city code, the city's general plan, community plans and plan area statements. This article regulates, in an orderly fashion, growth and development within the city limits. The overriding purpose is to prohibit the transfer of tourist accommodation units and commercial floor area outside the city limits without the city receiving a benefit (i) economically, (ii) socially, and/or (iii) environmentally. The approval of the transfer of a land use commodity does not give the recipient thereof a right to develop a project.

• B. Applicability. No person shall construct a project or commence a use or activity which requires a transfer of land use commodities outside the city limits unless (a) approval of the transfer is obtained in accordance with this chapter; (b) the parcel the land use commodities are being transferred to is eligible to use the land use commodity; and (c) the project, if any, on the sending parcel is approved by the city. The council may in its sole discretion approve, approve with conditions or deny the transfer of land use commodities outside the city limits.

• C. Description.

  1. The transfer of land use commodities is a market-driven program involving willing sellers and willing buyers. The Tahoe Regional Planning Agency (TRPA) regulates the rate and timing of growth by, among other means, creating land use commodities in the Lake Tahoe Basin. Such commodities include: commercial floor area (CFA), tourist accommodation units (TAUs), residential development rights (RDRs) and residential units of use (RUU). Each is required for some aspect of the development of residential, commercial, industrial, public service facilities and tourist properties and the commodities can be transferred by private and public buyers.

  2. In developing this article, the city council has reviewed the transferability of land use commodities outside the city limits to develop appropriate standards, criteria, and land uses that reflect the long range needs of the city in light of current and future development, economics and environmental standards and to ensure that proper standards are crafted and adopted to address in particular the development and maintenance of TAUs and CFA. The transfer of additional TAUs and CFA outside the city limits will have a significant impact on the ability of the city to implement the goals of the general plan and the planning of the city. The goal is that prior to the transfer of CFA and TAUs outside the city limits there be specific findings made of economic, social or environmental benefits by the city council of benefit to the city.

Applicant shall fulfill the conditions of approval prior to the transfer of the TAUs or CFA or a bond or other security acceptable to the city shall be filed with the city to ensure the completion of said conditions of approval.

• D. Definitions.

"City"

means the city of South Lake Tahoe.

"City council" or "council"

means the governing body of the city.

"Commercial floor area (CFA)"

consists of the right to construct or retain built commercial square footage as authorized in Chapter 18, Table of Primary Uses, of the TRPA Code of Ordinances.

"Land use commodities"

means tourist accommodation units, commercial floor areas, residential development rights and residential units of use as defined herein and by the TRPA Code of Ordinances.

"Receiving parcel"

means a parcel outside city limits within the Tahoe Basin region that receives a land use commodity from the sending parcel.

"Residential development right (RDR)"

means the right to develop a residential use which is attached to certain parcels in the Tahoe Basin region in accordance with Section 21.6 of the TRPA Code of Ordinances.

"Residential units of use (RUU)"

represent legally existing residential units, as verified by TRPA.

"Sending parcel"

means the parcel or property within the city limits that is transferring the land use commodity outside the city to another area in the Tahoe Basin region.

"Tahoe Basin region" or "region"

includes Lake Tahoe, the adjacent parts of Douglas and Washoe Counties and Carson City, which for the purposes of the compact shall be deemed a county, lying within the Tahoe Basin in the state of Nevada and the adjacent parts of the counties of Placer and El Dorado (including but not limited to the city of South Lake Tahoe) lying within the Tahoe Basin in the state of California, and that additional adjacent part of the county of Placer outside of the Tahoe Basin in the state of California which lies southward and eastward of a line starting at the intersection of the basin crestline and the north boundary of section 1, thence west to the northwest corner of section 3, thence south to the intersection of the basin crestline and the west boundary of section 10; all sections referring to township 15 north, range 16 east, M.D.B. & M. (Tahoe Regional Plan Compact).

"Tahoe Regional Planning Agency (TRPA)"

means the bi-state (California and Nevada) agency created by the Tahoe Regional Planning Compact by the United States, and as may be amended from time to time.

"Tourist accommodation units (TAU)"

means one bedroom, or a group of two or more rooms with a bedroom, with or without cooking facilities, primarily designed to be rented by the day or week and occupied on a temporary basis, as defined in the TRPA Code of Ordinances. (Ord. 1013 § 1; Code 1997 § 32-64)

1. Commercial Floor Area (CFA) Transfers.

   • a. Transfers of CFA from within the city limits to outside the city limits may be approved by city council if the council finds the transfer of CFA will benefit the city (i) economically, (ii) socially, and/or (iii) environmentally. The benefits to the city may include, but are not limited to, the payment of a mitigation fee to the city, environmental benefits to sensitive lands and providing low and moderate income housing. In addition, all transfers shall be conditioned on the development or redevelopment of the sending parcel or the restoration of the sending parcel to its natural condition.

   • b. The council in making its findings on the benefit to the city of transferring CFA outside the city limits shall consider, but is not limited to, the following:

     • i. The offset of lost tax opportunity of sales taxes, property taxes and tax increment (as applicable) for at least the next 30 years.

     • ii. In determining a mitigation fee, the council shall consider the impact of the receiving parcel's development on the city's economy, including impacts on businesses and jobs in the city.

     • iii. If the sending parcel transferring the CFAs is located in a redevelopment plan area.

     • iv. Whether the sending parcel contains environmentally sensitive land that the city desires to preserve.

     • v. The social benefits including the provision of low and moderate income housing, infill projects, priority to services and transit, environmental and sustainable buildings and other social benefits to the community.

     • vi. The transfer of CFA must be found to be consistent with the goals and policies of the city's adopted general plan.

2. Tourist Accommodation Unit (TAU) Transfers.

   • a. Transfers of TAUs from within the city limits to outside the city limits may be approved by the city council if the council finds the transfer of TAUs will benefit the city (i) economically, (ii) socially, and/or (iii) environmentally. The benefits to the city may include, but are not limited to, the payment of a mitigation fee to the city, environmental benefits to sensitive lands and providing low and moderate income housing. In addition, all transfers shall be conditioned on the development or redevelopment of the sending parcel or the restoration of the sending parcel to its natural condition.

   • b. The council in making its findings on the benefit to the city of transferring TAUs outside the city limits shall consider, but is not limited to, the following:

     • i. The offset of lost tax opportunity of transit occupancy taxes, sales taxes and property taxes for at least the next 30 years.

     • ii. In determining a mitigation fee, the council shall consider the impact of the receiving parcel's development on the city's economy, including impacts on city businesses, hotels and motels, housing and jobs in the city.

     • iii. If the sending parcel transferring the TAUs is located in a redevelopment plan area.

• iv. Whether the sending parcel contains environmentally sensitive land that the city desires to preserve.

  - v. The social benefits including the provision of low and moderate income housing, infill projects, priority to services and transit, environmental and sustainable buildings and other social benefits to the community. 
  
  - vi. The transfer of TAUs must be found to be consistent with the goals and policies of the city's adopted general plan. 
  

• (Ord. 1013 § 1; Code 1997 § 32-65)

All transfers of land use commodities outside the city limits are subject to the following conditions and shall not be finalized until the applicant demonstrates the following:

• a. Prior to the transfer of any TAUs or CFA outside the city limits, approvals shall be issued by the city for the sending parcel to be developed or redeveloped or the restoration of the sending parcel to its natural condition and/or any other projects conditioned by the transfer.

• b. If the transfer of TAUs or CFA to the receiving parcel has not been completed within 36 months of city approval, the transfer shall be void. The applicant may request one 12-month extension from the city council.

• c. Any and all conditions of approval, imposed by the council for the transfer shall be complied with prior to the transfer of the TAUs and/or CFA to the receiving parcel. In lieu of complying with the conditions of approval, the council may, in its sole discretion, allow the applicant to submit an adequate surety, performance bond or other financial security acceptable to the city, to secure the completion of the conditions of approvals.

• (Ord. 1013 § 1; Code 1997 § 32-66)

RDRs and RUU may be transferred outside the city limits subject to approval of city council. The city council may require a fee in its sole discretion for the transfer in order to offset the loss of property tax revenue.

(Ord. 1056 § 1 (Exh. A); Ord. 1013 § 1; Code 1997 § 32-67)