Transfer of Development Rights, or TDR as they are commonly known, have been used in New Jersey and throughout the country to preserve vast areas of farmland and open space.  The Borough of Fanwood, with the support of the New Jersey Department of Community Affairs, is pioneering a new way to use the TDR concept that could hold the key to both preserving historic neighborhoods and encouraging revitalization in underutilized commercial and industrial areas in New Jersey.

TDR is a “smart growth” planning approach that encourages growth away from areas with important natural or community resources (“sending districts”) to places where growth and development are more appropriate (“receiving districts”).

Our TDR plan is unique in New Jersey.  Fanwood is using TDR to preserve the inherent charm and character of an existing historic neighborhood in our community by transferring the currently unused development potential from properties in our Historic Preservation District to properties in the Borough’s commercial and industrial corridor, which is located along South Avenue (NJ Route 28). 

Fanwood, like so many of New Jersey’s older boroughs, towns and cities, has a history that predates the Revolution.  In the 300 years since colonists built the first homes in our town, we have grown to a population of about 7,000 people residing in a mix of about 2,500 households. The character of our neighborhoods defines our small town. 

Those neighborhoods include a variety of housing styles and historic buildings that our residents want to preserve. However, development pressures from a “hot” real estate market and the increasing cost of maintaining and preserving these homes are threatening these important historic resources.

The TDR solution we are planning to use would permit our residents to reap some of the financial benefits of the current market by voluntarily selling some, or all, of the development potential of their properties to property owners or developers in the commercial “receiving” area of the borough.  In so doing, families in our Historic Preservation District would receive substantial financial benefit, their neighborhoods would be preserved and enhanced, and additional development potential, along with the ability to attract significant new tax ratables, would be transferred to our South Avenue commercial district.

This plan is being designed with the technical guidance of Stan Slachetka, Assistant Division Manager of the Planning Division of  T & M Associates of Middletown, New Jersey, and the co-author of the “The Redevelopment Handbook: A Guide to Rebuilding New Jersey’s Communities.”  Our effort is being funded through a demonstration grant of $120,000 from the NJ Department of Community Affairs and an additional $40,000 from the New Jersey TDR Bank. The team also includes Jeffrey Donohoe Associates, which is undertaking a real estate market analysis to confirm the financial viability of the program, and Scanlon Communications, which is undertaking the community outreach and public information program that is required as part of the project.

Gaining community support for innovative planning programs is essential.  Borough officials, staff and our professional consultants are committed to developing a plan that reflects the values and the vision of our residents.  That means we will be continually improving the plan based on the input of our residents.  A program like this can only be successful if the ultimate plan meets the needs and desires of the residents we serve.

To achieve community acceptance of such an innovative planning program we have been hosting community “visioning sessions” that are designed to fully understand the needs and desires of residents in both the sending and receiving districts, as well as the community at large.

            At the conclusion of those sessions the plan will be refined so that it accurately reflects the will of our community.

            From there, our planning board will consider adoption of the TDR plan element in our master plan and the borough council will consider adoption of a TDR ordinance.

            This is a complicated process that has relied heavily on the input of professional planners and redevelopment experts, the guidance of the staff at Department of Community Affairs and the unwavering support for innovation on the part of Commissioner Susan Bass Levin.