There is much talk and debate about the transfer of development rights (TDR) for the Naples properties, and particularly Santa Barbara Ranch. In concept, this program is about transferring the value of development rights on rural lands to an urban area that is more “acceptable” for development. While this concept is compelling, its application may prove challenging.

A TDR program has the potential to be a viable planning tool for the County of Santa Barbara — as the owner of the largest block of developable property on the Gaviota Coast, I should be considered an advocate. However, TDR is a planning tool with significant limitations in practice, and should be viewed as just one of many tools necessary to maintain the rural nature of the Gaviota Coast. Its limitations result from the enormity of coastal property values (‘sending’ sites) relative to the values within the urban area (‘receiving’ sites), and the lifestyle impacts to the urban area resulting from substantial increases in densities.

In 2006, the county hired Solimar Research Group to evaluate the feasibility of transferring the development rights from Santa Barbara Ranch to South Coast urban areas. After significant analysis of property values, and further review by an independent appraiser, the valuation of the development rights at Santa Barbara Ranch was estimated at slightly more than $200 million. This valuation highlights the enormity of the issue. The upzoning of potential urban receiver sites could result in perhaps more than 1,000 additional housing units beyond existing urban zoning densities. As a result, Solimar concluded that a partial TDR may be possible, but a TDR for the entire value at Santa Barbara Ranch is not feasible.

To reach this conclusion, last year the county appointed a working group to complement Solimar’s efforts and to seek common ground in the implementation of a TDR program. This group consisted of a diverse mix of stakeholders including the Naples Coalition, Environmental Defense Center, county supervisors and planning staff, Santa Barbara city councilmembers, and Santa Barbara Ranch. The first order of business was for us to agree on “core guiding principles” to guide the TDR work product. The working group agreed to a program that would adhere to free market principles, voluntary participation, and the satisfaction of land use policy.

Now, fast-forward to the completion and issuance of the TDR report. The daunting nature of the task of raising $200 million and upzoning identified urban parcels has become so apparent that the report’s findings are no longer complementary to the goals of the participating activist groups. So, true to form, the Naples Coalition and other activists are now attempting to redefine previous agreements made through the working group (it depends on what the definition of “is” is), and to change the rules of the game. Specifically, they now are calling for “forced participation” and multi-year “hold” periods on landowners to provide time to raise the capital needed for TDR to succeed. Frankly, these concepts are flirting with “takings laws,” and will not be accepted by Santa Barbara Ranch nor, I suspect, by any other property owner.

It is painfully apparent why TDR has been talked about for decades, but never been actualized: It’s difficult to make it work in a free market economy.

To put Santa Barbara Ranch in proper context, our landholdings consist of 485 acres, composed of 219 legal lots per the county’s official map. Any of the 219 legal lots may be sold, leased, or financed at any time. Our proposal consolidates the lot count from 219 to 54, thereby extinguishing 75% of the existing lots. We have formed an alliance with neighboring Rancho Dos Pueblos that merges more coastal lots and donates a permanent 3,000-acre conservation easement. This would be the largest private easement dedication on the Gaviota Coast.

Let us use the Naples issue to set a quality standard for how best to manage other development and preservation interests along the entire coastline. There are surely more effective and less complicated ways to maintain the rural character of the Gaviota Coast than an unrealistic TDR program.

California’s population will continue to grow, and the pressure to subdivide open space will continue to increase. There are many family-owned properties along the coast, and as generations pass, the challenges to keeping family holdings intact grow. Estate planning, ever-changing agricultural economics, and spiraling property values each present threats to keeping families on their land and able to prosper. Now, more than at any time in recent memory, we have a window of opportunity to work with these families, seeking solutions together. Let’s seize this moment now, while landowners are tentatively listening and estate plans aren’t set in concrete.

The activist community should reach out in good faith to Gaviota Coast property owners and recognize their existing development rights, and in return call for a cap on their existing zoning densities. This would protect the coastline’s rural character and precious habitat in perpetuity. Talking to landowners is better than fighting with them. The alternative is to be reliant on unrealistic ambition, flawed programs like TDR, and more conflict

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