How Will the Price for TDR Certificates be Established?
The price will be the amount that a willing buyer will pay and a willing seller will accept. That is the “market price.” The price will be established in the market under the principles of supply and demand. Some communities have created a “TDR Bank” that acts as a “market maker” by purchasing and selling TDR certificates when there is no apparent market. In other rural counties, one of the major problems in creating a viable TDR program is that the certificates have had little or no market value. For example, in Clallum County a recent appraisal of a property with TDR rights valued those rights at zero dollars. Caution: Do not confuse a “TDR Bank” with the San Juan County “Land Bank.” It would not be appropriate to use the San Juan County Land Bank for maintaining a market in TDR certificates without adequate evidence of (1) the value of each certificate, (2) that the property protected by the acquisition of the certificate meets the mission of the Land Bank, and (3) the property rest
