(1) Before adopting an ordinance or resolution creating one or more local infrastructure project areas, a sponsoring city must:
(a) Adopt transfer of development rights policies or implement development regulations as required by subsection (2) of this section; or
(b) Make a finding that the sponsoring city will:
(i) Receive its sponsoring city specified portion within one or more local infrastructure project areas; or
(ii) Purchase its sponsoring city specified portion should the sponsoring city not be able to receive its sponsoring city specified portion within one or more local infrastructure project areas such that purchased development rights can be held in reserve by the sponsoring city and used in future development.
(2) Any adoption of transfer of development rights policies or implementation of development regulations must:
(a) Comply with chapter
36.70A RCW;
(b) Designate a receiving area or areas;
(c) Adopt incentives consistent with subsection (4) of this section for developers purchasing transferable development rights;
(d) Establish an exchange rate consistent with subsection (5) of this section; and
(e) Require that the sale of a transferable development right from agricultural or forestland of long-term commercial significance or designated rural zoned lands under RCW
39.108.050 be evidenced by its permanent removal from the sending site, such as through a conservation easement on the sending site.
(3) Any adoption of transfer of development rights policies or implementation of development regulations must not be based upon a downzone within one or more receiving areas solely to create a market for the transferable development rights.
(4) Developer incentives should be designed to:
(a) Achieve the densities or intensities reasonably likely to result from absorption of the sponsoring city specified portion identified in the plan under RCW
39.108.080;
(b) Include streamlined permitting strategies such as by-right permitting; and
(c) Include streamlined environmental review strategies such as development and substantial environmental review of a subarea plan for a receiving area that benefits projects that use transferable development rights, with adoption as appropriate under RCW
43.21C.420 of optional elements of their comprehensive plan and optional development regulations that apply within the receiving area, adoption as appropriate of a categorical exemption for infill under RCW
43.21C.229 for a receiving area, and adoption as appropriate of a planned action under *RCW
43.21C.031 for the receiving area.
(5) Each sponsoring city may determine, at its option, what developer incentives to adopt within its jurisdiction.
(6) Exchange rates should be designed to:
(a) Create a marketplace in which transferable development rights are priced at a level at which sending site landowners are willing to sell and developers are willing to buy transferable development rights;
(b) Achieve the densities or intensities anticipated by the plan adopted under RCW
39.108.080;
(c) Provide for translation to commodities in addition to residential density, such as building height, commercial floor area, parking ratio, impervious surface, parkland and open space, setbacks, and floor area ratio; and
(d) Allow for appropriate exemptions from other land use or building requirements.
(7) A sponsoring city must designate all agricultural and forestland of long-term commercial significance and designated rural zoned lands under RCW
39.108.050 within the eligible counties as available sending areas.
(8) A sponsoring city, in accordance with its existing comprehensive planning and development regulation authority under chapter
36.70A RCW, and in accordance with RCW
36.70A.080, may elect to adopt an optional comprehensive plan element and optional development regulations that apply within one or more local infrastructure project areas under this chapter.
