Lexington-Fayette County

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					  Lexington-Fayette County, Kentucky
           Horse Capital of the World
   Site of the 2010 World Equestrian Games

Purchase of Development Rights Program

     A Local and Regional Benefit to the
        Commonwealth of Kentucky
        and for Future Generations
  Service Areas
The Cornerstone of Our
 Community Planning
  Program since 1958

Urban = 85 Square Miles
       (30% of County)

Rural = 200 Square Miles
        (70% of County)
1996 Urban Service Area
Expansion - 5400 Acres
At average density, will result
in over 13,000 dwellings
   Why preserve Rural Farmland in
          Fayette County?
• Agricultural Economic Benefits and Concerns
• Development Pressure on Farmland
• High Cost of Infrastructure as Development Moves
      Away From Urban Areas
• To Protect Cultural, Environmental and Historic
• Maintain International Identity and a “Sense of
• To Protect a thriving Tourism Industry
Development pressure on Farmland
1996 Expansion of the Urban Service Area-
               5,400 acres
     10-Acre Estate Lot Development

  – Between 1990-1998, loss over 4,700 acres of
    Rural Service Area Land
  – Suburban intrusions on Farms (dogs,
     children, trespassing, etc.)
4,700 ACRES FOR 429 HOMES...

4,700 Acres
superimposed on the
Urban Service Area is
greater than 25% of
the Land Inside New
Circle Road
At average density in
the Urban Service
Area 4,700 Acres
would typically result
in over 20,000
residential dwellings!
Agricultural Economic Benefits And Concerns
 •Fayette County ranked #2 in Kentucky farm
    products and generated $354,000,000 in cash farm
    receipts in 2005
 •Fayette County Agriculture supports a
    significant tax base
 •Rural Fayette County has significant related
    infrastructure and services
 •Farming is an industry, incompatible with suburban
 •The land is the farmer‟s 401 K plan
      High cost of infrastructure as
  development moves away from urban
                 areas *
          $1.80                            $1.64
          $1.20                 $0.93
          $1.00                                            Industrial
          $0.80                                            Rural
          $0.60                                            Residential
          $0.40         $0.22
                        Cost per Tax Dollar
*From Study by American Farmland Trust and sponsored by the Bluegrass
Conservancy and the Land & Nature Trust in 1999. A similar study is being done
in Shelby County.
           PDR Protects
Environmental Resources-soil quality,
  water quality, mature trees, etc.
     International recognition-
“Sense of Place” and “Brand Identity”
   of a World renowned landscape
             PDR Protects

   Cultural Heritage-Rural Hamlets

Historic Resources-Historic homes, farm
       buildings, stone fences, etc.
Planning the Solution...

        Rural Service Area
      Land Management Plan

          Adopted April 1999
Rural Service Area Land Management Plan

                •Land Capability
                  •Scenic Areas
            •Environmental Areas
            •Agricultural Patterns
                 •Historic Areas
               •Rural Settlements
              •Aquifer Protection
             •Future Sewerability
Rural Service Area Land Management Plan
Special Plan Element:

      Rural Roadways/Traffic Management:

•Traffic Volumes
•Level Of Service (LOS)
•Capacity at LOS
Rural Service Area Land Management Plan
Special Plan Element:

  Rural Roadways/Aesthetics-roads with scenic
   views of countryside, tree lined roads with
               stone fences, etc.
 Fayette County Scenic Byway information can
 be found at-
Rural Service Area Land Management Plan

Special Plan Element:

  Rural Settlements-the history of these
unique communities and their relationships
     with the surrounding farmland.
Rural Service Area Land Management Plan
Special Plan Element:

   Natural Protection Areas-protect our
   community‟s water source/aquifer.
Rural Service Area Land Management Plan
Special Plan Element:

   Greenway Focus Areas-protection of
  wildlife, vegetation and water quality of
         creek and stream corridors
Rural Service Area Land Management Plan
Special Plan Element:

Business & Industrial Zoning-the locations
of these areas within the Rural Service Area
    and their relationship with farmland
      preservation and potential future
Rural Service Area Land Management Plan
Special Plan Element:

 Future Sewerability-areas that will likely
   have future infrastructure in place for
sewers and how this will help project future
             growth patterns.
Zoning Ordinance Changes:
   August 1998
    • Increased Minimum Lot Size in
      Most of Rural Area from 10 to 40
    • Create “Buffer Category” Zone for
      Areas Designated on Plan
    • Create “Natural Areas” Zone for
      Areas Designated on Plan
    • Special Rural Subdivision
      Standards to Protect Agricultural
 Implementing the Plan

Increase in Minimum Lot Sizes
   in the Rural Service Area
          Linked with

Purchase of Development Rights
       (PDR) Program
         PDR Protects Farms
• All of the $15,000,000.00 Granted by the
  Agricultural Development Board has been used
  for conservation easement acquisition.
• Every State Dollar matched at least 1:1 with a
  Local Dollar
• $6,888,570 also matched with Federal grant
  dollars at 2:1 (local, state and federal) or 1:1
  (local and federal)
• Federal match grants to date are $8,649,454.00
• 141 Farms Protected with over 16,286 acres
PDR Helps Horse Farmers across the
• Protects „Factory Floor‟
•$5 Billion dollar a year industry in
• $650 Million dollars of horses sold at
      Keeneland and Fasig-Tipton in Fayette
      County in 2004
• Fayette County is the breeding capitol and
      sales center in the State.
• 80,000-100,000 jobs
    PDR protects the Tourism

•Tourism in Fayette County generated a $880,190,000.00
economic impact and supported 13,130 related jobs in
•Local tax receipts from Tourism were $14,650,000.00 in
•Fayette County is within one day driving distance of
75% of the U.S. population
•Fayette County draws visitors to the State and the
region as a whole
•Perpetuates unique international recognition as the
Bluegrass State
            Goals of the PDR Program
• Purchase Conservation Easements to Protect 50,000 acres
(out of 128,267 acres in the Rural Service Area) over the next 20
•Protect the Agricultural and Horse economies of Fayette
County by conserving large areas of farm land.
• Conserve and protect the Natural, Scenic, Open Space and the
Historic and Agricultural resources of Rural Fayette County.
• Protect the Tourism Economy of Fayette County by preserving
the Unique Character and „Sense of Place‟ that attracts visitors
from all over the world.
•50,000 acres represents 27% of all the land in Fayette County.
    What is a PDR and how do you
    determine it‟s value?
                                      Future           $$$$$$$$
      FUTURE                          Value
       VALUE                $$$$$$$

                                        P urchased
                                        D evelopment
    USE VALUE                           R ights-

                                        Landowner sells off
                                        their development
                                        rights in perpetuity

                  BEFORE    AFTER
PDR Program - Major Principles
    • Apply on a Voluntary Basis Only
    • All Rural Landowners with 20 or
      more acres, subject to the 40-acre
      rule, are eligible
    • Priority Order of Acquisition to be
      Based Upon Fair and Objective
      Point Ranking System
    • Preservation in Perpetuity (rare
      exceptions permitted)
    • Not Anti-Growth, Pro-Infill and
      Downtown Redevelopment, Pro-
      Agriculture and Rural Preservation
PDR Program - Major Components

     • PDR Ordinance
     • PDR Board
     • Land Evaluation & Site Assessment
       (LESA) Point System
     • Funding
PDR Ordinance
     • Definitions
     • PDR Board Membership and
     • Land Evaluation & Site Assessment
       (LESA) Point System
     • Negotiation & Acquisition
     • Donations of Easements
     • Release/Transfer Provisions
     • Coordination with Comprehensive
Rural Land Management Board Members
     •   Farm Bureau (2 members)
     •   KY Thoroughbred Association (2)
     •   Land Conservation groups (1)
     •   Realtors Association (1)
     •   Homebuilders Association (1)
     •   Neighborhood Council (1)
     •   Historic Preservation (1)
     •   Convention & Visitors Bureau (1)
     •   Chamber of Commerce (1)
     •   At-Large County Ag Agent (1)
     •   At-Large NRCS representative (1)
Rural Land Management Board Duties
      • Duties as a Non-profit, Non-stock
      • Solicit, Acquire & Hold
        Conservation Easements
      • Prioritize Acquisitions
      • Expend Funds for Acquisitions
      • Public Information & Forums
      • Solicit Contributions
      • Establish Administrative Procedures
      • Release/Terminate (perpetuity)
Land Evaluation & Site Assessment
(LESA) - Establishing Priorities
      •Agricultural Factors:
        •Farm Size
        •Road Frontage
        •Batch Applications
        •Soil Quality
        •Farm Activities
        •Agricultural Improvements
Land Evaluation & Site Assessment
(LESA) - Establishing Priorities
       • Environmentally Sensitive Areas
       • Greenway Potential
       • Natural Protection Areas
       • Links to Parks, Etc.
       • Historic/Cultural Resources
       • Scenic Resources
       • Re-consolidation of Subdivided
Land Evaluation & Site Assessment
(LESA) - Establishing Priorities
     •Future Urban Factors:
       • “Minus” Points Applied
       • Proximity to Urban Service Area
       • High Probability of Sewerability
       • Proximity to Federal Highways
         and Interstate Interchanges
       • Exceptions for “Community
         Icons” and Other Major
         Protection Priorities
Evaluation &
(LESA) -


Evaluation &
(LESA) -

Rather than..
Types of Farms Under Conservation Easement:

141 farms including 13 Donated Easements of
464 acres with a total of over 16,286 acres

79 farms are Equine

51 farms are General Agriculture

11 farms are „Other‟ -
      (historic, sod, trees, etc)
      PDR is NOT anti-development
•Encourages planned growth within and along the
     Urban Service Area by establishing critical land
     masses in the Rural Service Area.
•LESA ranking is lower for properties adjacent
     to the Urban Service Area.
•High standard of living and unique sense of place
     are attractive to prospective businesses and
         Results of
Rural Land Management Plan
     And PDR Program

•Maintain Urban & Rural Distinctions
           Results of
  Rural Land Management Plan
       and PDR Program

• Economic Development Tool by Preserving a
  Critical Mass of Rural Land in Perpetuity for
  Agricultural, Horse and Tourism Industries
             Results of
    Rural Land Management Plan
         and PDR Program

•Protect Sensitive Environmental Areas in
   Rural Fayette County
           Results of
  Rural Land Management Plan
       and PDR Program

•Strategy for Enhancement of All Parts of
 Fayette County and Surrounding Counties as a
 Regional Planning Tool
         Results of
Rural Land Management Plan
     and PDR Program

         Regional impact on:
  Kentucky‟s Agriculture Industry
    Kentucky‟s Tourism Industry
  Kentucky‟s Horse Farm Industry
Regional land planning & preservation
 The Fayette County Purchase of Development Rights
Program benefits the entire Commonwealth of Kentucky

A successful model for other states and Kentucky
counties that are considering similar farmland
preservation programs

•Ann Arbor, Michigan – PDR Program now in place
            PDR won the Gold Award
                     for the
        2004 James C. Howland Awards for
              Municipal Enrichment

in the 150,000-500,000 population category
from the National League of Cities

The award was presented at the
National League of Cities Conference
in Indianapolis on
December 3, 2004
  Lexington-Fayette County, Kentucky
Purchase of Development Rights Program

                     Lexington-Fayette County
                        Horse Capital of the World
         Purchase of Development Rights Program
                 For More information Contact:
Maner Ferguson                            Billy F. Van Pelt, RLA, ASLA
Program Manager                           Program Administrative Officer
LFUCG Center                              LFUCG Center
200 East Main St., Third Floor
                                   or     200 East Main St., Third Floor
Lexington, KY. 40507                      Lexington, KY. 40507
(859) 425-2227 fax- 258-3898              (859) 425-2226 fax- 258-3898
email:                 email:
         Or check our web site at

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