Transferable development rights

TDR is a legal mechanism offered in some local government jurisdictions as a form of development control.

In the United States, TDR are also a way to avoid constitutional takings issues caused by rezoning areas that would otherwise eliminate a significant amount of value from the property.

The procedure offers landowners financial incentives or bonuses for the conservation and maintenance of the environmental, heritage or agricultural values of their land.

It is also useful in communities that have the opportunity to purchase the rights from an area of high conservation interest but do not have a development project that can receive higher density at the time.

The terminal owners possessed air rights which could be used as a TDR to build higher than the conventional zoning allowed on their other properties.