RURAL POLICY SUB-COMMITTEE'S RECOMMENDATIONS TO THE
GROWTH MANAGEMENT STUDY COMMISSION

FINAL REPORT
DECEMBER 12, 2000

Governor's Charge

In Executive Order 2000-196, Governor Bush asked the Commission to consider:

"Development of a state rural policy that includes mechanisms for rural economic development and the continued viability of agricultural economies while protecting the unique characteristics of rural areas. Such mechanisms may include a program of innovative planning and development incentives, economic incentives, and other measures, such as incentives to reward best management practices, providing cost-efficient delivery of public services, and a statewide system for transferring or purchasing development rights through a rural lands stewardship program".

Rural Policy Sub-Committee Questions Assigned by Chairman:

1. How can we preserve the State's agricultural heritage and promote rural economies in the face of escalating growth?

2. What factors should be the guiding principles for future development of rural areas?

3. Determine the best methods that can be utilized to meet these guiding principles by considering all relevant topics.

Overview

The Rural Policy Sub-Committee recognizes the long-term value of retaining rural lands for agriculture, open space and conservation uses. A thriving rural economy with a strong agricultural base, healthy natural environment, and viable rural communities is an essential part of Florida's present and future vision. Rural areas also include the largest remaining intact ecosystems and best examples of remaining wildlife habitats as well as a majority of privately owned land targeted by local, state and federal agencies for natural resource protection.

The growth of Florida's population and the demand for low density and moderately priced housing to serve it create increasing pressure to develop rural lands. Florida's growth management policies have not successfully controlled, and have in many instances accelerated rather than reversed this trend. Further, current land use policies designed primarily for urban situations, have dominated comprehensive planning in Florida. Rural infrastructure needs have been widely ignored and rural counties have struggled, without adequate infrastructure support, to comply with the requirements of the state's current growth management laws.

There is a direct relationship between land values and the ability of rural landowners to keep their properties in agricultural production. Florida's agricultural economy is land rich and cash poor. The value of agricultural lands as collateral for borrowed capital needed to support agricultural operations is based in large part on the underlying development rights for non-agricultural uses. These underlying development rights have been reduced over time as a byproduct of ineffective land use policies.

As the alternative uses of rural lands are reduced, so to is the asset value and options available to rural residents to diversify the rural economy and accommodate rural oriented development. The unintended consequence of Florida's current growth management process, which has primarily focused on downzoning as a means of controlling rural density, has resulted in diminished private property rights and decreased land values. Declining land values encourage the conversion of agricultural land to other uses. There is little objective evidence to suggest that policies that encourage conversion of rural lands from working forestry or agriculture to widely dispersed very low density residential tracts in itself achieves any protection for habitat or ecosystems.

Regulatory controls do not stop growth or permanently assure the protection of habitats or ecosystems. Where permanent protection and management has been achieved, this has occurred primarily through programs such as voluntary land and conservation easement acquisition programs, and incentives based on cooperation by landowners.

Even with the best efforts at urban infill, the pressures for development will impact almost every rural county. Florida lacks a comprehensive growth management policy, which proactively and realistically addresses both the pressures of population growth and the unique characteristics and multiple needs of rural Florida.

Vision

The Sub-Committee suggests the following vision for the future of rural Florida:

"A thriving rural economy, with economically robust agriculture, a healthy natural environment, effectively protected ecosystems and complimentary, viable rural communities containing well-planned, clustered patterns of development surrounded by extensive areas of open space."

Rural Policy Sub-Committee Questions

1. How can we preserve the State's agricultural heritage and promote rural economies in the face of escalating growth?

a) By changing the emphasis of Florida's growth management and comprehensive planning process so that it:

1. Addresses the different needs of both urban and rural areas,

2. Is primarily based on incentives and applies constraints that are constructive and known to work well,

3. Restores rural land values and the ability of landowners to obtain economic value from their property and respects private property rights, and

4. Takes maximum advantage of the flexibility provided by existing Florida Statutes relating to innovative planning and development strategies within rural areas.

e) By coupling and coordinating improved environmental protection with a more viable agricultural economy to the benefit of rural areas and the State as a whole.

f) By assisting rural communities in developing and diversifying local economies.

2. What factors should be the guiding principles for future development of rural areas?

The guiding principles for future development of rural areas should be restoration and maintenance of the economic value of rural land, identification and protection of ecosystems, habitats and resources that are areas of compelling state interests, promotion of rural economic development, maintenance of the viability of Florida's agricultural economy, control of urban sprawl, and protection of the character of rural areas of Florida.

3. Determine the best methods that can be utilized to meet these guiding principles by considering all relevant topics.

The challenge of reforming Florida's Growth Management laws is to change the entire dynamic of government's relationship to rural land and its intrinsic property values. We must design a two-fold system which offers economic rewards and regulatory incentives to help keep land in agricultural production. At the same time, we must both allow and offer incentives to clustered, compact urban development in the rural setting. The Sub-Committee proposes the following changes in Florida's Growth Management Statutes, Policies, and related laws to meet these guiding principles:

Restoration and Maintenance of the Economic Value of Rural Land and

Control of Sprawl

Local decisions about the most appropriate location and type of growth that occurs in rural areas should be part of a program of planning and development incentives for the consolidation of development into discrete clustered patterns that provide ample open space for agriculture, recreation and regional environmental protection. Such a program will require:

· Criteria for the identification of areas in which innovative planning and development strategies may best be applied

· Guidelines for the implementation of innovative planning and development strategies within rural areas

· Taking full advantage of provisions of the Florida Statutes which allow flexibility in planning and development decisions, such as section 163.3177(11).

· A process which assures that innovative planning and development strategies comply with applicable local plans and development regulations

· Allow local governments in rural areas to restore property values and control sprawl through innovative growth patterns based on clustering and traditional community design

· Assignment of a special overlay of transferable density allocations for rural property to be used for the implementation of clustered development in appropriate locations and innovative planning and development strategies.

Promotion of Rural Economic Development

· Acquire development rights from lands intended to remain in agriculture in the long term, allowing landowners to reinvest payments for those development rights in the rural economy.

· Ensure adequate funding for infrastructure in rural towns, including but not limited to water, sewer, roads and telecommunications, and providing for mobility between rural and adjacent urban areas.

· Resubmit SB 1934/HB 1951, the Rural Heritage Act version as of April 4, 2000

· Amendment of the revenue sharing provisions of Chapter 212, Florida Statutes, to provide a disproportionate increase in the allocation of state revenue to rural counties in recognition of their inherently lower ad valorem tax base.

· Legislative adoption of a resolution urging Congress to lift the inheritance tax on agricultural and conservation lands.

· Consider other initiatives to support rural communities in economic development such as:

directing Enterprise Florida and OTTED to include rural communities in their out reach efforts for expanded and improved economic development; establishing a technology outreach program to support rural local governments, farmers and small businesses in taking advantages of Internet and other technology advances; supporting and further publicizing the Main Street Program (Florida Department of State); offering technical assistance and other support services for small business development and entrepreneurism in rural areas; providing tools to rural communities for fiscal impact analysis of planning, development and economic development decision-making; encouraging environmentally sensitive ecotourism and heritage tourism in rural areas; capitalizing on and enhancing the sustainability features of rural areas, including local food productions, environmental resources and the potential for distributed energy resource technologies.

Identification and Protection of Areas of Compelling State Interests

Clearly identify, map where appropriate, and prioritize State involvement in land use decisions upon those areas with compelling state interests. Maps should be developed to a high degree of accuracy, and should not impose additional regulatory burdens. The state should invest sufficient resources to assure the development of the degree of accuracy required.

Identify ecosystems, habitats and resources that merit overriding state protection as compelling state interests and acquire an interest in those lands in either fee or easement through fair compensation payments leveraged by appraisals which reflect the natural resource values.

Dedicate a new, source of additional revenue for public purchase of conservation and agricultural easements, prioritized on clearly identified areas of compelling state interests. It is suggested that initial funding to start the program be provided in an amount of at least $__ million annually.

· Easements could include sustainable yield timberland easements, unimproved pasture easements, wildlife management, etc.

· Prioritize different levels of conservation easements with varying levels of protections. Establish simplified statutory easement forms easily understandable and suited for use by a wide variety of property owners.

· Agricultural easements vested to DACS; high habitat, species, wetlands value easements vest in DEP/TIITF

· Scientific information on resource values and the relative pressure for conversion of valuable natural resource lands should guide the priorities for using public money for acquisition and less than fee mechanisms.

· Develop bridge mechanisms involving incentives or payments to property owners in exchange for services to maintain and enhance wildlife values on property prior to and in anticipation of eventual state fee or easement acquisition.

Develop a collaborative process between cities and counties for designating "urban growth areas" with review by DCA in collaboration with DEP WMDs, FWCC and DOT, and final approval by the Florida Land and Water Adjudicatory Commission (Governor & Cabinet). Criteria for approval of the areas would be based upon the avoidance of conflicts with clearly identified resources and interests of statewide significance. Within such areas:

· Local government land use decisions would be exempt from DCA review

· The DRI process would not be applicable

· Enhanced and prioritized infrastructure support and funding would be provided

Maintenance of the Viability of Florida's Agricultural Economy and

Protection of the Character of Rural Areas

Develop incentives which reward landowners for good stewardship of land and natural resources.

Recognizing and rewarding the natural resource values of rural property will counter the current tendency to convert land to other economic activities for which a higher value is assigned. Incentives could include:

· Appraisal of land based on natural resource values; purchase appraisals should reflect the value of wildlife habitats, unique ecosystem components, and the benefits of natural system productivity.

· Funding for land acquisition, with title vested in either fee or easement, should be sufficient to assure that inclusion of property on land acquisition lists or in mapped designations of compelling state interests enhances, rather than reduces, land values.

· Resource conservation agreements which compensate or provide other incentives to landowners for specific services to enhance wildlife or habitat values of land

Where appropriate, promote the use of best management practices or whole farm plans, developed by agricultural producers in conjunction with regulatory agencies and local governments, to replace the appropriate permitting processes for agricultural operations, in order to remove or reduce the financial and bureaucratic obstacles to keeping land in agricultural production.

Long Term Implementation

The Rural Policy Subcommittee acknowledges that full implementation of the above recommendations - statutorily or otherwise - is a multi-year task and encourages the Florida Department of Community Affairs and the Florida Department of Agriculture and Consumer Services to enter into a Memorandum of Agreement which provides for the development, in conjunction with the Florida Association of Counties, Florida Legislature, and other affected agencies and interests, a process including pilot programs for continued implementation of a comprehensive planning strategy for rural Florida.