Without the pressure of Proposition 2, a takings initiative that failed at the ballot box earlier this month, the city of Ketchum is taking time to review proposed changes to its transfer of development rights system, with an eye to offering incentives for the preservation of historic buildings.
The Ketchum City Council discussed the TDR system during a Nov. 15 workshop.
The program is intended to encourage preservation of Ketchum's historic and "heritage" properties, which are disappearing fast in light of development pressures.
"Once you opt in, you are agreeing to keep your building the way it is in perpetuity," said City Planner Beth Robrahn.
The Ketchum Planning and Zoning Commission earlier in October recommended a system that prioritizes the preservation of historic buildings or "heritage" sites. Heritage sites are places or buildings that have local significance but are not necessarily 50 years or older.
"We wanted to detach from strict preservation guidelines," Robrahn said. "It's more like being able to designate the Lane Mercantile as well as ... the Christiania, which isn't 50 years old but is an institution in town."
In the TDR system, certain sites are designated "sending areas" and have development rights to sell. Property owners in "receiving areas" can buy those rights to create greater density in other parts of town.
Although the system is voluntary, TDRs are permanent and the "sending" property that sold its rights is deed-restricted in perpetuity.
Heritage and historic sites are for now in "sending" areas of the commercial core. Other sites outside the core may be included in the TDR map at a later time. The Ernest Hemingway House is an example of a heritage site outside the core.
"The criteria for receiving sites has evolved through the master plan process," Robrahn said. "What areas in town make sense to have taller buildings or more density? What are the common elements of those areas? That's where the criteria fell out from."
The city at first considered using floors as measurements of developable area.
The P&Z, however, has recommended multiplying the lot area by a ratio of 1.5 to calculate the amount of development right a property owner could sell to another property owner.
The 1.5 number was based on the previous 1.4 floor area ratio allowance, which is a measurement for a building's volume in relation to its lot. The number was made 1.5 to simplify mathematical calculations.
Real estate broker Dick Fenton told the council that for the system to work, TDRs have to provide value.
"TDRs have to give as much income as if a building were torn down and replaced with the maximum FAR," he said.
Attorney Gary Slette, who often represents property owners in land-use issues, suggested prioritizing properties.
"Not all sites are equal to one another," he said. "Maybe you need to prioritize sites, characterize it objectively on the basis of age. That would control the supply issue."
Staff will refine the list before bringing it to the P&Z on Dec. 7. The council will then review it again and hold public hearings before enacting changes.
