New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 86 - TRANSFER OF DEVELOPMENT RIGHTS REAL ESTATE MARKET ANALYSIS REPORT › Subchapter 2 - MARKET ANALYSIS REPORT › Section 5:86-2.7 - Sending zone analysis

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The sending zone
				analysis section of the market analysis report shall contain at least the following:
1. A range of values realistically attainable at
				the given time and market conditions;
2.
				An analysis of the extent and types of development authorized by the base zoning of
				the sending zone and its physical characteristics as provided in the draft
				development transfer element prepared pursuant to
				40:55D-141. Said analysis shall
				include, but not be limited to:
i. Consideration
				of the sending zone's topography, publicly or privately held open space,
				configuration, existing development patterns, transportation access, environmentally
				constrained areas and other appropriate characteristics; and
ii. All major subdivision and site plan
				applications involving land in the sending zone that were approved by the
				appropriate land use board during at least the preceding two-year period;
3. An analysis of land values in the
				sending zone at base zoning, given the physical characteristics set forth in (a)2
				above, which shall include the following:
i. An
				evaluation of the past and current demand for real property at the base zoning;
				and
ii. A value estimate that identifies
				a range of market values in the sending zone at base zoning and a discussion of how
				the estimate was determined. The valuation shall be submitted on a per unit of
				development basis. The method of valuation shall be chosen at the analyst's
				discretion taking into consideration the base zoning and the characteristics of the
				sending zone; and
4. An
				analysis of what land values in the sending zone will be after the transferable
				development rights have been severed and the TDR deed restriction has been imposed
				(market value restricted), which shall include the following:
i. An evaluation of the proposed TDR deed
				restrictions and their effect on property in the sending zone, the sending zone's
				adaptability for alternative uses that are not in conflict with the TDR deed
				restrictions and other items which are significant to the valuation of the sending
				zone;
ii. Consideration of the sending
				zone's authorized density and use as encumbered by the TDR deed restrictions
				provided in the draft development transfer element pursuant to
				40:55D-141. The analysis shall consider
				the following:
(1) The ability to establish the
				use consistent with applicable statutes, regulations and ordinances;
(2) The physical possibility of establishing the
				use;
(3) The probability or likelihood
				of establishing the use; and
(4) The
				economic feasibility of establishing the use; and
iii. A value estimate that identifies a range of
				market values of the lands in the sending zone once the required deed restriction is
				imposed and a discussion of how the estimate was determined. The method of valuation
				shall be chosen at the analyst's discretion taking into consideration the
				characteristics of the sending zone.