Urban Economics and Planning

Urban Economics and Planning

Designing an Implementation Model for the Transfer of Development Rights Approach to Preserve Gardens and Urban Green Spaces: A Case Study of Kan’s Gardens of Tehran

Document Type : Original Article

Authors
Ehsan Moayedi 1
Hamidreza Saremi 2
Mojtaba Rafieian 3
1 Master student of Urban Planning, Faculty of Art, Tarbiat Modares University, Tehran, Iran
2 Associate Professor of Urban Planning, Faculty of Art, Tarbiat Modares University, Tehran, Iran
3 Professor of Urban Planning, Faculty of Art, Tarbiat Modares University, Tehran, Iran
10.22034/uep.2024.471662.1524
Abstract
Introduction 
The lifestyle in contemporary cities, especially in large urban centers and metropolises, has led to a disconnection between people and nature, including its key elements. Today, with the rapid growth of urban populations and the inefficacy of restrictive policies and regulations, the first and greatest development pressures from unchecked and unplanned constructions are imposed on gardens, green spaces, and agricultural lands located within city boundaries. The Transfer of Development Rights (TDR) approach represents one of the latest strategies aimed at preserving valuable urban lands at risk of degradation, such as urban gardens and green spaces. This approach emerged as a response to the inefficacy and limitations of urban development plans and seeks to preserve such lands by balancing public and private interests. As a market-driven mechanism, TDR attempts to balance conservation and development by employing a zoning system that enables the transfer of development rights from conservation-worthy areas (sending areas) to development-eligible areas (receiving areas) in a mutually beneficial manner. The concept of TDR has been discussed in Iran over the past few decades; however, due to the absence of necessary institutional and legal frameworks, it has remained largely theoretical without practical implementation. The most recent and significant effort to operationalize the TDR approach has been developing guidelines for transferring the property betterment rights mechanism (development rights) in Tehran, which this study addresses. This research formulates an economic model for a TDR program in the Kan neighborhood of Tehran, with the objective of adjusting the economic balance of the TDR program by calculating the market value of development rights per square meter. It aims to establish the most economically viable density system for allocating and implementing within the identified sending and receiving areas.
Materials and Methods
This study is categorized as descriptive-explanatory research in nature and orientation and applied in terms of objective. For computing and implementing the program, spatial data were described using GIS software, and quantitative analysis of spatial data was conducted by formulating mathematical formulas and calculating the value of each square meter of development rights. In the first step, GIS was utilized to identify and describe the spatial characteristics of the sending and receiving areas, including area measurements and zoning analysis. In the next step, based on the foundational zoning of the detailed plan, guidelines for the transfer of property betterment rights mechanism (development rights), and the program requirements, the base, allowable, and additional densities in both the sending and receiving areas were determined. Subsequently, through supply-demand calculation, loading scenarios for the two regions were formulated, yielding a total of 12 scenarios, of which two were eliminated by balancing supply and demand, leaving the remaining options for economic calculations. In the following step, using residential, commercial, and garden property prices, the market value of each square meter of development rights was calculated by formulating mathematical formulas, and an economic feasibility assessment was conducted using the Cost-Benefit method. For the final evaluation of the options, the Goals-Achievement matrix was applied. The necessary data for calculating this matrix were obtained from the program’s computational steps and by evaluating the achievable demand in the receiving area (Table 4). Ultimately, Scenario 11 was selected as the optimal choice for implementing the Transfer of Development Rights program. It is worth noting that the data used in this research were collected during the period from October to November 2023, and this program’s implementation model was developed based on this data.
Findings
According to the implementation model developed in this research and the selected scenario, Scenario 11, the most economically viable density system in the sending area includes a base FAR (Floor Area Ratio) of 30% for gardens under 2,000 square meters, 45% for gardens between 2,000 and 5,000 square meters, and 30% for gardens over 5,000 square meters. The allowable FAR is set at 240% for all gardens, with an additional FAR of 210% for gardens under 2,000 square meters, 195% for gardens between 2,000 and 5,000 square meters, and 210% for gardens over 5,000 square meters in this area. In the receiving area, the base FAR is established at 240% for residential use and 230% for commercial and administrative use. The allowable FAR is 480% for residential use and 430% for commercial and administrative use, with an additional FAR of 240% for residential use and 200% for commercial and administrative use. The selected scenario, with a profit of 128848251.6 million tomans and a profit rate of 36.65%, enables the creation of 11,530 residential units and 775 service units (commercial and administrative) using transferred development rights. Furthermore, it allows for the construction of 5,254 residential units and 353 service units (commercial and administrative) using the surplus demand generated in the receiving area. The generated surplus demand indicates market competitiveness, and the greater the surplus, the higher the program’s likelihood of success. Therefore, Scenario 11 is also the most favorable in terms of competitiveness. Moreover, in this scenario, there is no change in density relative to the base density, and the mandatory base densities align with the detailed plan, meaning that the customary density rights of landowners in both the sending and receiving areas are respected.
Conclusion
Analysis reveals that the legal framework for urban planning in Iran has yet to establish a stable legal position for Transfer of Development Rights (TDR) programs. The roots of this instability can be traced to legal-property, economic, institutional-social, technical, and regulatory dimensions. Efforts to legislate such programs, specifically the guidelines for the transfer of property betterment rights mechanism (development rights) in Tehran, remain far from full implementation and integration into the urban planning structure of the city. Therefore, to bridge the gap between theory and practice in TDR programs aimed at preserving gardens and green spaces, it is necessary to refine and clarify all these dimensions in an implementation framework for each region within Tehran, ultimately creating comprehensive documentation for the program. With ongoing updates, a comprehensive executive plan for this program can be developed and brought into practice. This study has designed an economic model for the TDR program in the gardens of Kan, Tehran, while future research can explore other program dimensions. In line with the primary research questions, findings indicate that key parameters affecting the valuation of development rights include residential building prices, garden prices, and construction costs. Parameters influencing the economic balance of the program encompass residential and commercial building prices in both sending and receiving areas, property prices, construction costs, and development rights prices. This underscores that property values in a given area play a critical role in determining the economic viability of these programs. Consequently, each square meter of development rights has been valued in such a way that allows garden landowners to gain a similar or comparable profit by selling or transferring their development rights to other areas rather than constructing on their own land. Only under these conditions can landowners be encouraged to participate in the program.
Keywords
Analyzing Market Relations
Development Rights
Gardens
Kan Neighborhood of Tehran
Urban Green Spaces

Subjects

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Urban Economics and Planning
Volume 5, Issue 3
Summer 2024
Pages 198-213

  • Receive Date 14 August 2024
  • Revise Date 21 September 2024
  • Accept Date 26 October 2024