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TDC101 Putting the Pieces Together

Steps in Establishing a TDC Program

Regardless of where in the world a Transfer of Development Credits program is being created, the steps in structuring the program’s administration are largely the same. However, at each of those steps, there is a world of possible approaches, depending on the regulatory framework, and the choices of the local government.

This section describes those steps in a general form, outlining at a very high level some of the choices a municipality must make in structuring and operating a TDC program.

Determine a Purpose

Your conservation issue drives your program. Clarify what conservation issue is to be addressed, determine if a TDC program can address the issue, and if it can, make this issue the central purpose of your program. Articulate your overall purpose in your Municipal Development Plan, then program-specific purposes in a TDC Bylaw (or other relevant bylaw).

Consult with the Community

A TDC program lives and dies by its acceptability to the community, more than its technical merit. Identify who might be affected generally and specifically by a TDC program, and gather materials to support engagement conversations (scenarios, market analyses, biological inventories, ag community profiles, etc.). Consult/engage the community at large to raise awareness, lessen misconceptions, recruit topic experts, and test acceptability in target locations. Talk to local developers to determine acceptability, potential incentives, possible locations, early adopters; talk to conservation area landowners to determine acceptability, finalize locations for conservation, and recruit champions. The creation of TDC advisory committees can support all of these goals

Structure the Program Administration

The administration of a TDC program need not be an onerous addition to regular municipal planning duties, but care taken in structuring the administration up front can save headaches later. Start by determining which department will be the lead (Planning? Agricultural services? Protected Areas?), and outline the relationship to / synergies with complementary municipal programs and departments (parks protected areas, ag services board, land use and planning, assessment, economic development, etc.). Make clear the processes for receiving, validating, recording, conveying, and redeeming credits within the program, and then make clear to potential participants where they go to get program information, guidance, support, and resources. Establish measures to track program activity (including used and available credits, title restrictions, etc.), and make that information accessible to potential participants.

Create the Legal Structure

Establishing a clear legal structure smooths the operation of the program, aligns it with the regulatory requirements under the Alberta Land Stewardship Act, and reduces or mitigates the liabilities for all involved. Start by establish the planning framework for the TDC program (role of / potential amendments to the Municipal Development Plan, the Land Use Bylaw, and applicable Area Structure Plans).  Although not required, a specific TDC Bylaw can provide both coordinate both the legal requirements and provide a table on which to place all the program ‘puzzle pieces’, providing a sound basis for securing the necessary approval from the provincial government. Identify who would hold the title restrictions (The municipality? A land trust? The provincial government), and structure the necessary agreements. Create any necessary inter-jurisdictional agreements and plans (such as an Intermunicipal Development Plan in the case of a TDC program that spans multiple municipalities). These are broad guidelines – consult with your legal counsel to ensure your program is legally valid and conforms to your unique regulatory circumstances.

Determine/Designate TDC Conservation Areas

The designation of TDC Conservation Areas is an animation of the program goal. Identify where the community would like to promote conservation of the landscape values reflected in your program goal, relevant supporting information that describes the conservation value and the pressures for conversion, and where landowners would be willing to hold and sell credits. Use this information to explicitly identify the TDC Conservation Areas or the criteria for doing so. Create the process for determining eligibility (e.g., within a certain area, certain land types, application process). Rationalize the TDC Conservation Area goal with the existing zoning (e.g., creating a TDC overlay), and consider whether down-zoning (which happens regularly in American TDR programs) in required/valuable. Determine any desired time frames (e.g., conserve X acres in Y years), or need for minimum parcel sizes. If a TDC Bylaw is created, all of this should be reflected in it.

Establish the Title Restriction Requirements

The reason so many communities in the US have used the TDC tool is it comes with an enduring conservation mechanism attached to the title of the conservation land parcel, setting it apart from virtually all other municipal conservation tools. It gives conservation landowners the peace of mind that the values they sought to protect will persist, and gives credit purchasers the assurance that a future council won’t approve development in the place they ‘paid’ to protect. The form of title restriction (conservation easement, Historic Resources Act designation) needs to be chosen and included in the program design (ideally clearly articulated in a TDC Bylaw). In the case of a conservation easement, determine who will hold the resulting easements (the municipality or another qualified organization). As well, determine at what point in the credit sale/purchase the easement or designation must be secured and attached to the title of the land.

Determine/designate TDC Development Areas

One of the greatest benefits of the TDC tool is that it encourages planning for development and planning for conservation to happen in conjunction, helping support a broad land use vision for a community. Thus, ensure the designation of TDC Development Areas receives the same level of consideration as the designation of TDC Conservation Areas. Similar to TDC Conservation Areas, first consider the overall program goal in designating TDC Development Area possibilities (e.g., avoid areas of conservation value). Extend that to consider broader municipal land and economic development goals (industrial subdivision, affordable housing, walkable communities, etc.). Characterize what ‘ideal’ development area siting is (e.g., proximity to existing infrastructure or development, clustering, certain zoning types, etc.), and reflect that in TDC Development Area designation criteria. Lay out if/how the different development patterns may affect bonusing (positively or negatively). Because developer involvement is voluntary, work with developers to find where TDC program goals and developer goals may mesh.

Enable the Credit Transfer System / Market

There is often confusion around exactly how a market for TDC credits is created, and in particular, the role that the municipality does or does not play in it. The market itself is an open market; anyone with a credit to sell may seek out anyone eligible to buy that credit or vice versa. In the case of a TDC market, the municipality plays a very active role in establishing the parameters of the market, but generally little or no role as a participant in the market. Once the credits are created and the rules of their trading established, the market itself emerges organically, with willing buyers and sellers interacting directly. To catalyze that market, create a credit transfer system. Calculate the available/required credits (how many credits have been created in the TDC Conservation and how many are needed for bonus development in the TDC Development Areas). Develop the process for the actual creation of the credits, and how those credits are issued to landowners. Create a process and mechanism by which credits are redeemed for bonus development (including what kind of bonuses can be secured). Finally establish internal and external protocols by which the municipality tracks credit creation, issuance, conveyance, and redemption. Decide if the municipality will additionally play a role of program promoter, or credit ‘banker’ (purchasing credits for re-sale at a later time).

Monitor the Program

Whether a TDC program has been effective can only be determined if the program is monitored, providing a basis for both measuring success and guiding improvements. Establish a mechanism to track the success of the program. The best way to do this is to define measurable goals and targets for the program. Be careful not to monitor against program activity, rather than the program purpose – your goal is a conservation goal, but the temptation is to measure the number of transactions or the popularity of the program. Therefore, targets should include conservation measures (e.g., number of acres of a certain type or in a certain area to be conserved over a certain time period), NOT transactional measures (e.g., number of transactions, average dollar value of transactions, etc.). Create a process by which monitoring information can be actively used to guide changes future adjustments to the TDC program (current programs that have existed for 20 years rarely look anything like they did at their start).


What is a TDC Program?

The Why, What, How and Who's of TDCs

Miistakis Reports

Government of Alberta


Papers and Reports

Web Resources



Support Organizations and Consultants

American Examples

Did we miss an important resource? If you know of a publication, web site, or other resource that should be here, please contact us.

Also, check out our full list of TDC Resources.