The document discusses non-contiguous parcel clustering, a planning technique used in New Jersey that allows development rights from one parcel to be transferred to a non-adjacent parcel for higher density development, with the sending parcel preserved as open space, and provides a case study of this technique being used successfully to preserve farmland in Mount Olive Township. While simpler than traditional transfer of development rights programs, non-contiguous clustering requires careful implementation to avoid undermining land use goals if not linked to a municipality's preservation objectives.

1. Move It, Buster!
Planning for
Non-Contiguous Clustering
in New Jersey
Development Transfer Case Study
Mount Olive Township,
Morris County, NJ
Prepared by Banisch Associates, Inc.
111 Main Street, Flemington, New Jersey 08822 908 782 0835

2. Non-Contiguous Parcel Clustering in NJ
 First authorized in 1996, it allows a
municipality to approve “planned
developments” consisting of two or more
different parcels
 Allows one parcel to be preserved while its
density is transferred and developed on a
different, noncontiguous parcel.
 Requires no calculation of the transferable
development potential of multiple-owner
sending areas and receiving areas.

3. Non-Contiguous Parcel Clustering in NJ
 Development rights from the sending
parcel(s) are transferred to and combined
with the development rights at the receiving
parcel(s).
 Receiving parcel is developed at a higher
than otherwise permitted while sending parcel
is preserved, for example, as farmland or
open space.
 Noncontiguous parcel clustering is simpler
than TDR involving only a few, or even two,
parcels.

4. Transfer of Development Rights in New Jersey
Municipal Land Use Law Article 15.
40:55D-113 Burlington County Transfer of Development Rights Demonstration Act.
40:55D-114 Legislative findings.
40:55D-115 Definitions.
40:55D-116 Transfer of development programs; Office of State Planning assistance.
40:55D-117 Preparation for ordinance adoption.
40:55D-118 Sending and receiving zones.
40:55D-119 Recordation of permitted uses; effect of use variances.
40:55D-120 Submission to county board, Pinelands Commission.
40:55D-121 County board’s responsibility; Office of State Planning review.
40:55D-122 Recordation; tax assessment.
40:55D-123 Review by municipal agencies.
40:55D-124 Repeal of ordinance.
40:55D-125 Development Transfer Bank.
40:55D-125.1Solid waste facility buffer zone; definitions.
40:55D-126 Development easement.
40:55D-127 Equitable interests.
40:55D-128 Farm benefits.
40:55D-129 Annual report.

5. Residential Cluster Definition
per N.J.S.A. 40:55d-7:
 “Residential cluster” means a contiguous or
noncontiguous area to be developed as a
single entity according to a plan containing
residential housing units which have a
common or public open space area as an
appurtenance.

6. Planned Developments
(N.J.S.A. 40:55D-65c)
c. Provide districts for planned developments; provided that an ordinance providing for
approval of subdivisions and site plans by the planning board has been adopted and
incorporates therein the provisions for such planned developments in a manner consistent
with article 6 of P.L.1975, c.291 (C.40:55D-37 et seq.). The zoning ordinance shall establish
standards governing the type and density, or intensity of land use, in a planned development.
Said standards shall take into account that the density, or intensity of land use, otherwise
allowable may not be appropriate for a planned development. The standards may vary the
type and density, or intensity of land use, otherwise applicable to the land within a planned
development in consideration of the amount, location and proposed use of open space; the
location and physical characteristics of the site of the proposed planned development; and the
location, design and type of dwelling units and other uses. Such standards may provide for
the clustering of development between noncontiguous parcels and may, in order to
encourage the flexibility of density, intensity of land uses, design and type, authorize a
deviation in various clusters from the density, or intensity of use, established for an entire
planned development. The standards and criteria by which the design, bulk and location of
buildings are to be evaluated shall be set forth in the zoning ordinance and all standards and
criteria for any feature of a planned development shall be set forth in such ordinance with
sufficient certainty to provide reasonable criteria by which specific proposals for planned
development can be evaluated.

7. Mount Olive Township
Morris County, NJ
 Project Name: Newfane Associates, Inc.
 Nature of Application: Residential Major
Subdivision
 Date initiated: March 1993
 Description of parcels:
 Lot 32: 28.91 acres
 Lot 59: 55.40 acres
 Lot 36: 86.85 ac.
 Conventional Zoning: residential one acre lot
requirement

10. Newfane Proposal
 Transfer eligible qualifying density from Lot
59 to Lots 32 and 36.
 Develop Lots 32 and 36 as a 104-lot
residential cluster (20,000 sq. ft. lots served
by central water and sanitary sewerage).
 Dedicate Lot 59 to the Township for open
space and/or active recreation use.

11. Step 1: Qualifying Map
to determine total density
 Conventional layout qualifying map based on
one-acre lots for all three tracts to determine
total dwelling unit yield
 Includes streets, stormwater basins, protected
critical slopes and freshwater wetlands
 Detailed engineering not provided at this step
 Result: Total of 109 residential lots (ultimately
reduced to a total of 104 residential lots)

13. Step 2: Planning Board Approves Density
 A slightly modified overall density of 104
residential lots was established on the
qualifying map
 Lot 32 : 20 residential lots
 Lot 59 : 25 residential lots
 Lot 36 : 59 residential lots

14. Step 3: Submission to Township Council
for open space consideration
 Planning Board reported to the Township Council -
evaluated the proposed open space dedication per
standards
 Township Council approval required developer to:
 provide water and sewer to open space lot if required by
Township
 secure any/all permits from NJDEP on open space lot
 provide $75,000 cash contribution within 6 months of filing
final subdivision plats to improve open space lot for active
recreational use
 submit title insurance policy in the amount equivalent to fair
market value of property

16. Step 4: Planning Board hearings on
Preliminary Major Subdivision
 Preliminary Major Subdivision approved (103 residential lots)
with stipulation:
 “The transfer of development credits will occur
simultaneously with the first final subdivision approval of a
part, if this project is phased, or final approval of the entire
project, if it is not.”
 Conditions on developer regarding Lot 59 open space lot:
 convey Lot 59 to the Township within 60 days of filing of
plats
 cash contribution of $75,000 for recreational use (payment
in stages linked to CO’s)
 secure NJDEP Letter of Interpretation for Lot 59
 off-site road improvements

17. Step 5: Planning Board hearings on
Final Major Subdivision
 Planning Board approved Final Major Subdivision for
project (known as Oak Hill I and II) and the transfer of
development credits from Lot 59 to other tracts.

20. Pros and Cons of
Noncontiguous Clustering
Pros
 Easy to set up. Does not require detailed
investigations required for TDR
 Can be designed to reward preservation of targeted
properties
Cons
 Not a true development transfer program, since no
sending and receiving areas are designated
 If it does appear to be TDR-like, it may run afoul of
the lawful use of TDR in NJ.
 Ad hoc planning, not a comprehensive policy
response.

21. Noncontiguous Clustering
Handle with Care…
 Without linkage to local goals and policies,
noncontiguous clustering can actually interfere with
planning and zoning objectives
 With too much linkage, it may appear as TDR
 However, targeting for desired results can be a viable
strategy
 For instance, allowing noncontiguous clustering only
where the preserved lands are targeted for
preservation.
 In this way, farmland, parkland, greenways or other
desired preservation can be advanced