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                                      TABLE OF CONTENTS

                                                                               1
                        Introduction

                    1.  Evaluation of Historic County revelopment              3

                    II. Recent Development Trends                              7

                    III. Baseline Evaluation of Growth Management Options     10

                    IV. Evaluation of Existing County Land Use Management 13

                      V. Discussion of County Zoning Options                  16

                    VI. Recommendations                                       36

                                         INTRODUCTION

                     The following report has been prepared to assist Queen

                Anne's County in evaluating optional means by which.future

                County land use might be managed. .

                     It is prepared at a point in time when the adequacy of

                existing regulatory tools,(e.g. zoning subdivision) by which

                the County influences or shapes its development pattern is

                being called into question.

                     In light of accelerated growth pressures evidenced in

                the westernmost portions of the County (4th & 5th districts)

                over the past ten years, this County reappraisal is more

                than ju8tified.

                     The initial efforts of the County in response to these

                recent development trends and increasing growth management

                concerns has been preparation of a Comprehensive Plan for

                the 4th & 5th districts during the past year. The process

                through which it was developed provided opportunity for

                community discussion of County development and land use

                management issues which in turn triggered a framework of

                adopted objectives and policies. These policies clearly

                suggest that greater sophistication in the County's system

                of managing the form and pattern of future development will

                be required.if they are to be su ccessfully implemented.

                    At present the County is establishing a work program to

                evaluate needs and update its planning framework for

               ,remaining portions of the County which do not appearto be

               subj.ect to the development pressure evident in the 4th & 5th

               districts. These areas are somewhat removed from urbanizing

               forces and the County waterfront. Dominant land uses remain

               agricultural or  agriculturally-related in nature.

                     Planning treatment for these areas, which are more

               typical  of the rural nature of adjacent eastern shore

               counties, will most likely be substantially different both

               in the community objectives proffered for these areas as

               well as in the means by which they are accomplished.

                     Given very different conditions and forces at work in

               these two respective County areas, design of a uniform

               system to manage future land use which recognizes this

               urbanizing/rural dichotomy represents a substantial

               challenge.

                    In the final analysis, establishing a framework for

               managing future land use and development which satisfies the

               needs and interests of residents in both areas will require

               their respective involvement and co-authorship.

              I. EVALUATION OF HISTORIC COUNTY DEVELOPMENT PATTERNS.

                   In order to assess the adequacy of means by which Queen

              Anne's County directs or manages development and use of land

              resources, it is first necessary to assess the climate in

              which current regulatory tools are being applied.

                   Therefore, this section of the report briefly overviews

              past County development trends and to some extent assesses

              the degree to which established plans and ordinances have

              influenced these trends. Sources of information reviewed as

              a basis for this assessment are identified in the appendix

              to this report.

                   Queen Anne's County's community development problems

              and needs identified in the established County planning

              documents are comparable to those identified by most rural

              counties. Consequently, the adopted plan documents do not

              reflect the extraordinary population boom of 39 percent that

              occurred in the County in the last decade. Until the past

              year, the rapid rate of growth in the Kent Island area

              evidenced in the past 15 years in particular had not been

              addressed by any of the existing plans.

                   The plans noted the existence of developmental

              pressures on productive agricultural land and the need to

                preserve the seafood industry. Although historically a

                strong component of Queen Anne's economy, production in the

                seafood industry has declined in recent years. The reasons

                for the decline are both environmental and economic.

                Reduced supplies of seafood as a result of natural and

                man-made events (pollution and a hurricane) have been

                coupled with the loss of industrial processing capacity due

                to the obsolescence of existing plants.

                    Although housing, public facilities, and commercial

                development were discussed generally, again the plans did

                not address the impact of intensive residential and

                commercial development of Kent Island on the County's

                economy and public facilities. The potential. housing

                shortage in the same area, caused by the population

                increases, was not considered. Additionally, the plans did

                not address the lack of adequate community facilities along

                Route 50 and 3.01 in the Kent Island area, nor did they

                clearly project or forecast added facility/source demands

                more recently prompted by substantial growth pressures.

                The population expansion caused by people working on the

                Western Shore of the Bay seeking residences on the Eastern

                Shore was only reflected in the County officials' concern

                for protection of the County's sensitive environmental areas

                and cultural and historical landmarks.

                    To address the problems and needs identified in the

               County plans, Queen Anne's County established a number of

               goals and objectives concerning its historical assets,

               environment, population, economy, land use, housing and

               public services. For example, the land use goal of the

               County is to accommodate an increasing population (a maximum

               average growth of three percent per year), while maintaining

               the characteristics. of a rural environment.

                    The keynote policy embodied in past plans which served

               as the basis for guiding development in Queen Anne has been

               to accommodate an increasing population while maintaining

               the characteristics of a rural environment.

                    For Queen Anne's County this policy meant that new

               residential development would be located in and around

               existing communities. New commerciall industrial and

               instituti onal development was' to be located near existing

               communities or in planned highway locations. Beyond

               community areas, the County's objective was to maintain low

               population densities and to prevent sprawl and

               indiscriminate development from occurring on agricultural

               land or in conservation areas, in what mi  ght be considered

               less servicable patterns.

                    The means by which these policies and objectives were

               implemented were through adopt ion of a zoning ordinance and

               land subdivision regulations.

                   These conventional means of plan implementation,were

               considered adequate in their time and until more recent

               years under increasing growth pressures, were never actually

               tested for their effectiveness in guiding development in a

               manner consistent with the adopted planning framework.

                 II. RECENT DEVELOPMENT TRENDS.

                       Since establishing the framework for planning and land

                 use management previously discussed, a number of forces have
                 .brought about changes wit@hin Queen Anne which have prompted

                 County attention to review and revision of the Planning

                 Program during the past two to three years.

                       Foremost among the  changes was accelerated growth

                 subsequent to .1970 in the 4th and 5th County election

                 district beyond rates previously anticipated.

                       From 1970 to 1980 the County experienced a 38.5 percent

                 population increase, considerably higher than the 11 percent

                 increase in the 60's.

                       Its concentration in the County's fourthand fifth

                 districts has prompted county attention to service delivery

                 system demands. The fourth election district alone

                 experienced a 113 percent growth rate in the 10-year period.

                       Both districts are home to most of the County's 258

                 miles of shorefront. Together with their proximity to urban

                 and urbanizing Western'Shore centers of development,

                 somewhat lower land-costs make these district.s.likely

                 candidates for continued development pressures.

                      'Population projections forthese two..districts prepared

                 in the past years are reflected in Table.l. Table 2

                 identifi-es population growth.trends.from the  -period 1930 to

                                                          TABLE
                                                 POPULATION PROJECTIONS
                                              FOURTH-AND FIFTH DISTRICTS
                                                         1984-2005

                                                                                  School Age
                           Year           Population            Change             Children*

                           1984              14,731                ---                33,344
                           1985              15,120                389                3,432
                           -1986             15,550                430                3,530
                           1987              15,928                378                .3.616
                           1988              16,348                420                3,711
                           1989              16,779                431                3,808
                           1990              17,221                442                3,909
                           1995              19,614             2,393                 4,452
                           2000              22,340             2,726                 5,071
                           2005              25,445             3,105                 5,776

                   School  age' children make up     22.7 percent of the population.
                S3urce:    Greenhorne & O'Mara,      Inc. 1984

                                                                                TABLE 2-
                                                                         POPULATION TRENDS
                                                                    FOURTH AND FIFTH DISTRICTS
                                                                        QUEEN ANNE-S, COUNTY
                                                                             1930 - 1980

                  YEAR                                  FOURTH                  FIFTH         SUBTOTAL        QUEEN ANNE'S           PERCENT  OF
                                                       DISTRICT              DISTRICT                             COUNTY               COUNTY

                  1930                                  2,196                   2,592          4,788              14,571                 33%

                  1940                                  2,094                   2,813          4,907              14,476                 34%
                      POPULATION CHANGE                   -102                   221
                      PERCENT CHANGE                    -4.6%                   8.5%

                  1950                                  2,205                   3,095          5,300              14,579                 36%
                      POPULATION CHANGE                    ill                   282
                      PERCENT CHANGE                      5.3%                  10.0%

                  1960                                  3,114                   3,375          6,489              16,569                 39%
                      POPULATION CHANGE                    909                   280
                      PERCENT CHANGE                    41.2%                   9.0%

                  1970                                  3,832                   3,896          7,728              18,422                 42%
                      POPULATION CHANGE                     718                  521
                      PERCENT CHANGE                    23.1%                   15.4%

                  1980                                  8,177                   4,713          12,890             25,508                 51%
                      POPULATION CHANGE                 4,345                    817
                      PERCENT CHANGE                       113%                  2 11

                  SOURCE: U.S. CENSUS BUREAU

               1980.illustrating the shift in the increas ,ing percentage,of

               County residents located in the westernmost county areas.

                    Until recent update o f the Comprehensive Plan for the

               4th and 5th districts, the projected development pattern

               indicated by the County plans did not reflect the  current

               development pattern on Kent Island. While intensive

               industrial, commercial and residential development currently

               exists throughout the Kent Island area, the County hopes to

               contain future development in other areas to existing

               communities and to retain the agrarian nature of the rural

               areas of the County. The line of demarcation between the

               rapid suburbanization of the Kent Island area and the slow

               growth of the other more rural Queen Anne areas is presently

               slightly east of Grasonville.

                    The Kent Island area is important to the County as an

               industrial and maritime center as well as a residential

               center. Several seafood processing plants, a. number of

               marinas and existing proposed industrial sites are located

               on the Island. Kent Island's present development pattern is

               @linear and related to the right-of-way of Route 50 and the

               narrow and flat configuration of the. Island. The specific

               pattern of development of Kent Island consists primarily of

               strip residential and commercial development reflective of,

               and trending toward, the pattern existing along Route 2 or

               Ritchie Highway in Anne Arundel County.

                    Rapid development of Kent Island along Routes 50 and 8

               has already begun to absorb the communities of Stevensville,

               Grasonville, and Kent Narrows in a patchwork pattern of.

               developing subdivisions, marinas and corridor commercial

               development The County does not expect this area to conform

               to the growth pattern envisioned for the rural portion of

               the County. Because of its present development, however,

               the Island can no longer be considered rural and previously

               established community centers in the area have lost much of

               their definition.

                    At present,. the County expects the growth that is

               occurring in its more rural areas to take place around the

               existing towns and villages. These towns and villages like

               Centreville,Church Hill, and Sudlersville are intended to be

               the centers for modest new residential, commercial and

               industrial development. Provisions of adequate public

               facilities and services, particularly water and sewerage, is

               programmed to reinforce the growth of these towns and

               villages as activity centers. However, increasing

               commercial development along Md. Route 213 along the

               County's Northern border suggest planning assumptions and

               controls even for these areas of the County bear closer

               examination.

                    The work program currently underway for updating the

               comprehensive plan for these areas will provide opportunity

               for re-evaluation of these present policies-

                  III. THE BASELINE FOR EVALUATION OF FUTURE COUNTY GROWTH

                  MANAGEMENT OPTIONS.

                        In order to assess their relative value and

                  suitability for application in Queen Anne, both the existing

                 .subdivision framework as well as alternate, less traditional

                  zoning approaches must be evaluated in  light of the broad

                  complement of objectives the County wishes to achieve.

                       The nucleus for objectives to be achieved through   a

                  County development guidance system  are those enumerated in

                  the recent plan prepared for the 4th and 5th districts.

                  (See-Comprehensive Plan, pages 166 through 178) In addition

                  to serving these plan objectives, Queen Anne's plan

                  implementation framework should achieve.consistency   with

                  statewide planning objectives and programs which clearly

                  influence local land use management options and approaches.

                       A notable example is Maryland's Chesapeake Bay Critical

                  Areas Program and those program criteria currently being

                  prepared by the Critical Areas Commission. The County is

                ..statutorily responsible for implementation of this program

                  at such time as the criteria are promulgatedi, and will

                  therefore need to incorporate these program elements into

                  any future land use management system:approache,s.

                       By the same token, certain needs and/or demands

                  prompted beyond the.Coun.ty-will influence or impact.the

                  ability of the County to sustain local interests. Major

                 examples which in great part have prompted the 4th and 5th

                 district plan update are the influences of resort-bound

                 traffic on the County 50/301 corridor use of land and the

                 exurban population shift from nearby metropolitan areas into

                 these same districts. Although prompted by external forces,

                 both nevertheless place land use planning and service

                 delivery system demands on the County.

                     Finally, any County land use management or development

                 guidance system must be evaluated in light of its local

                 political acceptability, its legal defensibility, its

                 consistency with enabling legislation (Article 66-B of

                 Maryland Annotated Code), and the degree to which it places

                 demands on County fiscal and staff resources; the latter

                 potentially prompted both in establishing the system and

                 attending to its administrative requirements.

                     Although not considered exhaustive, the following list

                 of objectives has been derived from these considerations and

                 review of those contained in the 4th and 5th district

                 Comprehensive Plan. Future preparation of Comprehensive

                 Plans for remaining County districts may well prompt

                 additions or revisions to this list.

                     Taken together these objectives provide a yardstick

                 against which current and future plan implementation options

                 may be tested.

                              GROWTH MANAGEMENT/DEVELOPMENT

                           GUIDANCE SYSTEM EVALUATION CRITERIA

             Existing Community Plan Objectives

                  Maintains rural and marine environment.
                  Preserves historic and cultural heritage.
                  Protects natural resources Countywide.
                  Directs growth to designated centers.
                  Provides for compact and contiguous residential and
                  non-residential uses.
                  Responsive to County service delivery capacity.
                  Responsive to County Capital improvement program
                  constraints.
                  Effectively protects agricultural land.
                  Supports County economic development interests.
                  Addresses County landscape design objectives.
                  Encourages servicable development form.
                  Directs commercial development to existing towns or
                  proposed village centers.
                  Permits broad range and mix of housing.
                  Provides for recreational amenity needs.
                  Supports county transportation system objectives.

             Other objectives:

                  Responsive to Maryland's Chesapeake Bay Critical areas
                  program direction.
                  Relative ease to establish.
                  Reduces development review/approval processing
                  time and information requirements.
                  Mi nimizes development soft costs.
                  Legally defensible.
                  Requires minimum administrative staffing.
                  Receives broad community support.

               IV. EVALUATION OF EXISTING COUNTY ZONING AND LAND USE

               MANAGEMENT.

                    The following sections of this report will identify the

               limitations or shortcomings of existing Queen Anne zoning

               regulations and evaluate the advantages/disadvantages of

               optional and less traditional zoning approaches which might

               be applied within the County against the objectives or

               evaluation criteria identified in the preceding section.

                    Queen Anne's existing zoning ordinance and subdivision

               regulations, adopted in 1964 and 1965 respectively, are the

               chief ineans by which the use and development of land are

               managed. They can generally be considered traditional in

               their construction and as a result their shortcomings are

               .similar in nature to many conventional ordinances.

                    Foremost among the disadvantages with traditional

               zoning is the limited degree to which it serves to implement

               planning objectives. By way of example, preservation of

               productive farmland is a clear objective of Queen Anne's

               established plan and the recent update of the Plan for the

               4th and 5th districts. Yet the zoning forCounty areas

               where farmland is to be preserved does little to restrict

               conversion to residential use. Even the five-acre density

               recommended in the recent plan update will be ineffective

               based on the experiences of U.S. communities in developing

               e-ffective agricultural protection programs.

                  Queen Anne's ordinance contains few mechanisms to

             assurecoordination of zoning policies with County plans or

             other County plan implementation tools. Its provisions in

             the form of use lists are essentially restrictive, involving

             rigid dimension al and area requirements by district,

             providing little flexibility or incentive to assure good

             development design. This,failing is a notable one 'in light

             of the design objectives recently recommended in the 4th and

             5th district plan update.

                  Amendments to the ordinance in more recent years tend

             to establish somewhat more flexible performance standards
             for spLific uses of land; however the basic.o.rdinance

             framework remains traditional or "Euclidian" in nature.

             Therefore flexibility in ordinance administration and

             application in Queen Anne is largely limited to its

             provisions for variances, conditionaluses, and rezonings.

             Their capacity to effectively treat complex and

             often-competing social, economic and environmental issues

             surrounding land development proposals is limited. By

             virtue of public hearing and notice requirements and their

             scheduling before approval authorities (County Commissioners

             and Board of Appeals) they add time and cost to the

             development process.

                  County zoning treatment of land development proposals,

             when located within respective zoning districts where they

             are permitted by right, does little to,assure good

              development design or protection of sensitive natural

              features. Absent any requirements or standards for  review

              of site plans within the ordinance, control over design and

              development of commercial, industrial, or intensive

              residential uses appears to be limited only to the

              requirements or standards of special purpose ordinances and

              codes. These ordinances or codes, including the County

              Stormwater Management Ordinance, Sediment Control ordinance,

              and Building Code, are each limited in scope and designed to*

              treat only those aspects of site development and

              construction over which they have jurisdiction.

                   Their administration and enforcement bears little, if

              any, relationship to County design/landscaping objectives,

              or to the impact any given development may have on County

              .Lacilities-and services.

                   It is important to point out that most ofthese

              criticisms of Queen Anne's zoning ordinance come,at a.point

              in time when it is being tested under fire. In fact few of

             ,these shortcomings were of any consequence or cause for

              concern in its early years of application.

                   However in light of recent and projected development

              trends particularly,on Kent Island and adjacent areas,

              County consideration of options to its traditional zoning

              framework will become increasingly important.

                  V. DISCUSSION OF COUNTY LAND USE MANAGEMENT/ZONING OPTIONS.

                  Overview.

                       In reviewing a wide array of growth management

                  approaches for Queen Anne's County consideration, it becomes

                  clear that zoning as a basic tool has seen substantial

                  change over the years. The "as of right" or self-executing

                  nature of traditional zoning has largely been replaced.

                  Development issues are increasingly being decided at the

                  time development is actually proposed, rather than through

                  the process of adoption of a zoning map and ordinance.

                  Hallmarks of many of these innovative zoning approaches are

                  increased flexibility and administrative discretion, a

                  significant departure from traditional "use lists" or

                  self-executing zoning systems.

                       The most common reasons cited for growing reliance on

                  more discretionary land-use controls are:

                       Demand for land use controls to meet broader public

                       objectives.

                           The "health, safety, and.general welfare"

                           objectives on which zoning was originally

                           based have been expanded to include

                           objectives related to environmental quality,.

                           government fiscal responsibility, expanded

                           housing opportunity, etc. These objectives

                        can be more readily balanced only when

                        development is imminent and applied to a

                        particular site.

                  Increasing interjurisdictional involvement in land

                  development control.

                        Local land use control responsibility is
                        increasingly being shared with State or
                        regional agencies and the federal government.
                        These agencies may exercise direct control or
                        may be involved in local control by setting
                        standards or procedures aimed at achieving
                        wider public objectives. Achieving these
                        objectives often requires sophisticated
                        tools. Queen Anne's consideration of land
                        use management options is timely in
                        anticipation of Maryland's Critical Areas
                        program and County implementation
                        responsibilities.

                  Disillusionment with limited development options.

                        Traditional zoning, by virtue of "use lists"

                        and development standards often inhibits the

                        market's ability to respond to changing

                        conditions and fails to encourage innovation

                        or good design. Flexible zoning approaches

                        permit more refined control, and assessment

                        of a development proposal.

                  Greater sophistication of actors in the

                  development process.

                        The increasing complexity of the land
                        development process has evolved sophisticated
                        builders, lawyers, and administrative
                        officials in response. Their experience with
                        new development approaches and a concerned
                        public has led to new management systems.

                     Traditional zoning approaches have assumed where and

                how growth will occur is predictable.. On the. other hand

                experience indicates such approaches presumed more

                foreknowledge than was available. A movement toward "policy

                oriente d" plans as opposed to mapped plans and flexible

                instead of rigid regulation is perhaps a result of this

                experience.

                     Remaining sections of this chapter identify five zoning

                options for consideration by County officials. A

                limited discussion of each option is designed to highlight

                their associated advantages and disadvantages relative to

                Courity application.

                     The range of techniques or options discussed is limited

                and far from exhaustive. References cited in the appendix

                to this report may provide assistance to County officials

                who wish to pursue investigation of additional techniques or

               ,options for application in Queen Anne.

                   A. Overlay Zoning.

                        An overlay zone is a mapped zone that imposes a set of

                   requirements which are superimposed over the underlying

                   zoning district. In an area where an overlay zone is

                   established, property is placed simultaneously in the two

                   zones, and the land may be developed only under the

                   conditions and requirements of both.

                             overlay zones typically are applied when there is

                   a special public interest in a geographic area that does not

                   coincide with the underlying zone boundaries. Some of the

                   more common uses for such zones relate to special

                   environmental features that restr'ain development.

                   Floodplain zones and wet soils overlay zones are examples.

                   Other uses are to maintain the integrity of historic areas

                   or to provide special standards for specific areas either to

                   guide redevelopment or superimpose design guidelines in a

                   particular area.

                        Uses that are permitted in the overlay district but not

                   otherwise permitted in the underlying district may require

                   approval by the Plan Commission of the "building, site, and

                   operational plans."  This provision adds an element of

                   flexibility not provided in the basic districts.

                        "In Portland, Oregon, a design zone is superimposed on

                   standard zones by the action of the city council on

                   recommendation of the planning commission ... once designated,

               such land is subject to the standard district bulk,.density,

               and use regulations and a review by a committee of the

               planning commission." (Zoning Ordinance, Ch. 33.62, Secs.

               3362 et seq. - 1972)

                     However, the dominant use of overlay zones is for

               preservation of environmentally sensitive areas. Cecil

               County, Maryland, has established greater protection of

               County waterfront through overlay zoning. Queen Anne's

               County might find similar applications useful, in future

               preparation of a local program responsive to     Maryland's

              .Critical Areas 1 aw.

                     The major advantage of overlay zoning is that it adds,a..

               small element of flexibility to traditional zoning and, as a

               result, suffers from few legal impediments.

                     Overlay zones, as distinct from other flexible

               techniques, are site specific, and,    as such, retain most of

               the elements of the familiar zoning    process. But through

               their limited flexibility, they add    an opportunity to

               implement-site-specific public policies, especially with,"

               regard to environmental protection.

                     Overlay zones can.also be used   as a device to.

               incorporate special requirements or    incentives forthe

               construction of low- or moderate-income housing into zoning

               o.rdinance.s. For example, an overlay,z.,one might be applied

               to all residentially designated areas of a defined    density

               or size in order to permit low-income or subsidized housing

               at a higher than usual density. An overlay zone might offer

               additional incentives to build such housing by relaxing

               various restrictions in exchange for developing certain

               types of projects or for providing certain amenities.

                        B. Floating Zone.

                             A floating zone is the  same as a conventional zone

                        except that it is not designated on the zoning map. As a

                        result, when enacted into law through adoption of the zoning

                        ordinance, it "floats" over the community until, upon

                        approval of a landowner's application, it is affixed to a

                        particular parcel by a second ordin ance amending the zoning

                        map. The text normally will describe the conditions to be

                        met for such approval--a certain size parcel, specified

                        topographical conditions, location with respect to street

                        and utilities, and so forth. Once applied, it becomes the

                        same as any other zone, except that other landowners whose

                        property meets the conditions may also apply.

                             Its most common application is for planned unit

                        developments (residential, nonresidential, and mixed) and

                        for shopping centers. It may be used when a community

                        wishes to permit a limited number of a specified use., say

                        regional shopping centers, but does not wish to map their

                        locations in advance. It will usually require unified

                        development of the parcel and site plan review. A developer

                        also may be required to demonstrate need for the development

                        through submission of a market analysis report.

                             Similar application of the floating zone was

                        recommended for use in Queen Anne's 4th and 5th districts

              plan update as a means for creation of. future village

              centers.

                   The legal status of floating zones tends to be based

              not on the concept per se but on the conditions under which

              they can be used. They have been approved by the courts in

              a number of states. Maryland is perhaps most prominent in

              terms of variety of uses handled via floating zones and the

              number of cases upholding their use. Their broad use in

              Maryland and their ready acceptance by the courts are

              probably due in part to the difficulty in justifying

              rezonings to regular districts permitting more intensive

              uses i@nder the rigorous Maryland rule that requires evidence

              of a change in conditions or a mistake in the,original

              zoning.

                   The floating zone device has some potential value in an

              inclusionary land-use program.    Queen Anne might, for

              example, define a low-income housing development as a

              floating zone. The County would prescribe the minimum size,

              density, and location with respect, say, to public

              transportation, employment, and shopping areas, and

              incorporate a site plan review process into the ordinance.

              It might specifically refer to the hous,ing subsidy programs.

              .under which such housing could be built.

                   C. Incentive.Zoninq.

                       Zoning traditionally places restrictions and

                  limitations on the individual use of property. A recent

                  departure from these traditions has been the incentive or

                  bonus device that permits greater or more intensive use of

                  property and hence the opportunity for greater economic

                  return.

                       Essentially, incentive zoning is a trade between the

                  community and the property owner. In exchange for the

                  developer's providing something that the community feels is

                  in its interest, the developer is given a bonus, usually in

                  the form of permission to build in a bulk envelope slightly

                  larger than that normally permitted. Usually this mean  s

                  higher density.  By granting bonuses, communities expect to

                  receive benefits they could not require--more open space,

                  direct access to public transportation or parking, and the

                  use of cluster development designs rather than conventional

                  lot-by-lot development. In return, the developer will get

                  permission to build at a higher density, usually in the form

                  of more floor area or more dwelling units.

                       A major impediment to the effective exercise of other

                  techniques is the vagueness of the criteria for measuring

                  acceptability. In many instances, they are not measures but

                  policies and guidelines. In incentive zoning, like

                  industrial performance standards, the measures typically are

                 numerical. The requirements are spelled out, and the

                 developer can choose to use them or not and knows pretty.

                 much what he will get in exchange. There is little room for

                 arbitrariness in their application.

                      There has been almost no litigation of the concept of

                 incentive or bonus zoning. Th rarity of such challenges

                 probably results from a lack of willing plaintiffs.

                 Developers would have a difficult time alleging that their

                 property is being excessively restricted when they are being

                 offered an opportunity to increase their economic return.

                 Density bonuses might be challenged, however, by neighbors

                 who feel that the increased density  permitted is   excessive

                 in comparison to benefits received in return. Neighbors,

                 might, also challenge, arguing that because such   incentives

                 are available they cannot rely on the certainty  of the use

                 of nearby property; and further, that  they may need to  bear

                 additional public service costs resulting from  higher

                 density development. Another possible challenge may    come

                 from developers who feel that what they-are being asked to

                 accept is less than the benefit received,-and hence may

                 constitute a "taking' without compensation.

                      Developers are likely to respond to incentives that

                 offer opportunities to earn more money or to save money.

                 opportunities for earning more money usually involve

                 permission to increase density and, hence, to have more

                 rentable or salable space or to combine re.sidential with

                   some commercial uses, and, to a lesser degree, to improve

                   design and layout. Opportunities for saving money may come

                   from (1) clustering or concentrating structures and lowering

                   the costs of utility lines and streets; (2) faster

                   processing time, which gives developers a chance to build

                   and sell more quickly; and (3) lowering physical design

                   standards, e.g., narrower streets, thinner pavements, fewer

                   sidewalks.

                       The County might receive in return a wide range of

                   other public benefits: the preservation, perhaps through

                   dedication, of special environments such as wetlands, wooded

                   areas, and steep slopes; the provision of a desired mix of

                   housing costs and types; the staging of the building process

                   in conjunction with the County's capital program, etc.

                   Sufficiently attractive bonuses may give incentive to

                   developers further to internalize development costs as

                   subdivision exactions do now.

                        Incentive zoning has potential value to Queen Anne in

                   increasing the supply of low- and moderate-income housing.

                   A developer might be granted a bonus of additional density

                   tied to the number of subsidized housing units built. In

                   fact, short of establishing requirements for such housing

                   (and the legal question such requirements,rais,e), incentives

                   could be among the most effective tools available.

              D. Impact Zoning.

                   Unlike previous tools discussed, impact zoning is a

              land use management technique designed to establish a

              process for evaluating the relationship between a

              community's available capacities and the potential demands

              on community systems created by a proposed land use. If the

              natural, service, and fiscal systems cannot accommodate the

              demands, then clearly there will be damages or an adverse

              impact. Impact zoning firmly brackets potential development

              between a bottom line of minimum permissible uses and an

              upper. limit determined by the evaluation of a project's

              impact on the community's capacities and explicit goals.

              Within this framework, reasonable growth can occur.

                   Impact zoning also provides positive incentives for

              locating development in areas suitable for it. The impact

              ,zoning process offers methods of encouraging, measuring, and

              monitoring the balance between human needs and the

              capacities of the land.

                   The system has four primary characteristics:

                   - It relates land use demands to land use capacities.

                   - It assesses the consequences of any proposed change

                        in land use.

                   - It is a process as well as a set of products.

                       It provides a legislative and administrative

                framework for land use managementas well as

                       minimal land use controls.

                     Impact zoning also offers incentives.for development

                that fulfills the goals of quality embodied in a community's

                master plan. The community might permit the clustering of

                housing  for example, in return for the guaranteed

                protection of a valued scenic view. By guiding and

                motivating developers to respect community values, impact

                zoning becomes a process of land use management, rather than

                a system of land use control based on a list of prohibitions

                as is characteristic of traditional zoning.

                     The objective of the impact zoning approach is to

                identify the point of leverage at which the public can

                improve the quality of its surroundings. The emphasis   is

                thus on more than merely preventing the degradation of -the

                environment. Impact zoning offers a means of freeing

                private energies to contribute to, not work against, the

                public interest. The result is an equitable and creative

                tension between the private and public sectors.

                     The system works toward these goals by establishing and

                offering optional incentives. Community goals are

                established, and a data inventory is completed. This allows

                the inherent constraints on and opportunities in land use to

                be summarized, and a management plan can.be designed with

              new incentive land use controls. Finally, tools for

              evaluating proposed land uses are developed and instituted.

                   Like traditional controls, impact zoning employs

              districting for the uniform application of standards, but

              there are a number of important differences. First, the

              several districts so defined are based on generally

              described physical and environmental capacity levels. Thus,

              a rural district is defined as one with few if any services

              (such as sewerage, water supply, and roads) and typical

              environmental characteristics, precisely enumerated in the

              definitions section of the code. This district can then be

              compared, according to these predefined standards, to

              village, highway corridor, and flood prone.districts, for

              example, and can be rationally adjusted as conditions and

              service levels change over a period of time.

                   Within all these districts, a minimal level  is allowed

              by right, based on the inherent capacities of each district.

              This establishes a bottom line which identifies for every

              landowner what his basic land development rights are.

              Should he exercise those rights, the necessary municipal

              review should be relatively simple, since.the probable

              impacts will be low. This underlying zone avoids the major

              "taking issue" contention of much zoning today. Beyond this

              minimum, a range of land use types, densities, and impact

              levels are defined. In a rural zone, for instance,

              residential uses--including apartments and townhouses as

                 well as single-family detached housing, ranging in density

                 from one to eight units per acre--may be allowable if

                 certain performance standards are met. The applicant must

                 provide adequate documentation that the uses and densities

                 he is proposing will not exceed existing system capacities

                 and will meet prescribed quality and compatibility

                 performance levels. Should he be able to show that such

                 performance can be met at, say, six units to the acre at,   a,

                 certain mix of unit types, than that mix, at that     density,

                 would be allowed as long as the projected impact remained

                 within the agreed limits.

                      This negotiation process requires a clear

                 administrative and legal framework. The    new master plan

                 provides the basic community guidelines   for qualitative

                 evaluation. The new zoning map provides    a bottom and top

                 line for land use and density negotiations. The     development.

                 of a comprehensive land use management   code establishes the

                 procedures and.sets down the evaluative standards for impact

                 :assessment. Master plan, zoning ordinance and map..

                 subdivision regulations, sign controls, building    code, and

                 other applicable codes are tied together in the packagel

                 eliminating much of the redundancy and contradiction found

                 in incremental subdivision, cluster, PUD, and by-right

                 -zoning regulations. This entity becomes the management

                 ,guide -far both County and deveilaper ,..and 'def ines for them the

                 .rules of capacity and demand assessment.

                   Since the primary emphasis of impact zoning is on the

              dynamics of land use change, it is important that both the

              community systems' capacities and the developer's demands be

              expressed in quantifiable terms. The developer will attempt

              to meet the performance standards that are required by the

              municipality's land development code. Thus, one of the most

              important stages in the impact zoning implementation process

              is the development of design standards and assessment

              methods for evaluating the impact of land use proposals.

                E. Performance Zoning.

                     Performance zoning is an alternative to traditional

                zoning approaches which has received considerable national

                attention, largely as a result of the A.P.A. publication

                Performance Zoning, authored by Lane Kendig, former Bucks

                County, Pennsylvania, and Lake County, Illinois, planning

                director.

                     A recent article in Planning magazine outlines the

                successful experience of Bath, Michigan, and Largo, Florida,

                in modifying and simplifying the A.P.A. model ordinance to

                serve local needs.

                     The Performance Zoning approach has been in place in

                Bucks County, Pennsylvania, for some time.

                     Performance zoning as embodied in the Bucks County

                        model code has four major aspects:

                       preservation of environmentally-sensitive areas is

                        achieved with fixed percentages for the amount of

                        encroachment or disturbance allowed for each

                        specified feature.

                        residential development is governed by density,

                        impervious surface, open space and recreation area

                        ratios, NOT by specifying or prohibiting housing

                        types, such as townhouse, multi-plexes or apartments

                        in residential zones;

                       overlay districts based on the timing of development

                       such as Established Neighborhood, Developing,

                       Historic and Rural Districts, are used to insure

                       appropriate development.

                       confrontation over design and development standards

                       is reduced by establishing specific conditions and

                       requirements at the beginning of the development

                       process, and even prior to land acquisition.

                   As described in Performance Zoning, the concept includes

               a fifth aspect:

                       land use change is not governed by zone but by

                       impact, and buffering of impact, of one use on an

                       adjoining use, using a set of compatibility matrices

                       and buffer options.

                   Recent analysis of the Bucks County experience by an

               Anne Arundel County task force included a Visit to Bucks

               County and led to the following conclusions:

                       performance zoning was successful in protecting

                       sensitive features. However, it was  seen as

                       somewhat arbitrary in both the levels of protection

                       established, and in the actual designation of

                       features, some of which did not need to be

                       preserved. While the Task Force was comfortable

                       with regulations that compelled a rigorous

                       environmental analysis of all proposed land use

                      changes, it felt that this level of analysis was not

                      always needed by the local staff. This sometimes

                      resulted in an inefficient review, and sometimes

                      imposed an unnecessary increase in development cost.

                      the regulations encouraged housing diversity,

                      allowing for a greater accommodation of household

                      needs and better utilization of land.

                      the regulations did not control scattered

                      development. In some instances the problem was

                      worsened by requiring excessive land  acquisition in

                     -order to comply with the development ratios,

                      resulting in a "polka dot" type of  sprawl.

                      in some instances, excessive open space was

                      required, although the deed-restricted transfer of

                      open space land for uses such as farming or n ursery

                      operations is -permitted.

                      the development of non-residentially zoned parcels

                      was sometimes rendered unviable because of

                      environmental constraints. Some wooded sites that

                      were.commercially zoned could not be economically

                      used because of the high percentage of protection

                      required.

                      while the regulations were successful in achieving

                      a better pattern of land planning within a

                      development, they did not guarantee any better

                      quality or durability of development than

                      conventional regulatory systems. Quality and

                      aesthetics remained a function of market demand.,

                      builder/designer sensitivity and price range.

               VI. RECOMMENDED GROWTH MANAGEMENT/ZONING   MODIFICATIONS FOR

                    COUNTY CONSIDERATION.

                    All of the alternative zoning approaches discussed in

               the previous section of this report offer  potential for use

               in Queen Anne's County.

                    Some have greater utility than others. Floating zones,

               overlay zones, and incentive zoning can more readily be

               applied within the context of the County's existing zoning

               structure as additive components, each serving to implement

               a select number of County planning objectives.

                    Their chief advantages include:

                       minimum change to the existing zoning framework
                       their capacity to selectively treat County
                       areas where by virtue of their substantially
                       different characteristics, selective treatment
                       is required. (Kent Island as opposed to other
                       County areas)
                       Relative ease in administration.

                    Disadvantages include:

                       limits on the number of objectives each can be
                       used to achieve
                       Time and effort required to prepare each zone to
                       assure its consistency with the existing ordinance.

                    County application of Impact or Performance Zoning

               treatments have greater potential to treat a broader array

               of relevant County objectives on land use management issues.

               In particular, these tools appear to be more responsive to

               the treatment of management needs in the 4th and 5th

               districts where substantial growth and development has

               occurred and should be expected to continue to occur.

                   The primary advantages of these more systematic

             approaches include:

                   - Greater responsiveness to complex social, economic
                     and environmental objectives and problems through
                     the land use control process.

                   - Wider utilization of the most appropriate planning
                     and development methods for each given situation.

                   - Their treatment of development proposals is
                     responsive to natural and man-built system
                     capacities in Queen Anne.

                   Chief disadvantages include:

                   - Substantial effort required to assemble data on
                     County features and system capacities as a
                     framework for implementation.

                              disruption or community concern caused by
                     more substantial change or replacement of the
                     familiar zoning system.

                     Less development predictability and perhaps
                     uncertainty of County residents about what may be
                     built next door.

                   The following matrix is designed to assess the degree

             to which various zoning approaches address planning

             objectives and land use management needs in Queen Anne's

             County. Required issues or objectives to be met from

             Section III are outlined in the left column with zoning

             techniques or systems provided across the top of each

             page.

                   Each technique is rated according to the degree it

             provides treatment or addresses each respective County

             objective. All objectives are considered equally weighted

             and treatments are rated 1  to 5, five indicating most

             effective treatment.

                  This illustration reflects the fact that specific

             zoning treatments have various strengths and weaknesses.

                  No attempt is made to determine which tool is the right

             one for Queen Anne's. In fact, it is likely no single

             system or approach will fulfill all County needs or

             requirements.   However, its review permits assessment of

             the relative strengths and weaknesses of alternative zoning

             approaches in light of County planning objectives.

                  The assignment of values within the matrix is based on

             the professional judgment of the author.    Objectives were

             derived from the recent plan update for the 4th and Sth

             districts. Other objectives were selected for their broader

             focus on issues like the degree of community support likely,

             or impact on County administrative capacity.

                  The greatest value of this presentation   format is that

             it can be used by County staff to focus the interests and

             thoughts of the County Plan Citizen Advisory.Committee

             concerning growth management needs.

                  By way of example, many of the objectives can. be

             revised or deleted and others added based on their input.

             Perhaps more important, implementation of some objectives

             will clearly be more important to the County than others and

             based on their discussion each can be weighted and each

             zoning approach in turn can be re-evaluated in terms of

             these priorities.

                    Use of this format by the County is recommended for

               several reasons:

                      Through community involvement better focus and
                      guidance to.County staff can be provided in
                      ascertaining those zoning or land use management
                      options likely to derive broadest community
                      support

                      Such an exercise can provide timely guidance and
                      insight to the process of updating the County plan
                      for remaining districts. Foreknowledge of likely
                      means by which the plan will be implemented can and
                      should influence.the process and manner in which
                      the plan is prepared and presented.

                      This process may help the County citizens advisory

               task force gain insight into the relationship between

                      planning objectives and the means by which they

                      may be implemented, thus bridging the gap between

                      planning and implementation.

                                                                         OVt:Kt.AY VLUAT I NG  I NC.ENTI V EI M VA,:T VIA(i UKMAN,:t@
                                            EVALUATION CRITERIA            ZONING   ZONING       ZONING    ZUNING    ZONING

                                           LUC

                                    -Maintains rural and marine
                                    environment

                                    Preserves historic and
                                    cultural heritage

                                    Protects natural resources
                                    countywide

                                    Directs growth Lo designated
                                    centers

                                    Provides for compact 4
                                    contiquo%is residential
                                    nan-residential uses                             44
                                    Responsive to County    service
                                    delivery capacity
                                    Responsive to County capital,
                                    improvement program constrai ts

                                    Effectively protects
                                    agricultural land

                                    Supports County economic
                                    development interests                                        4

                                    Addresses Cu"rtty landscape
                                    design ob)octives                                            4-

                                    Egi@ouraqub sorvLcabla
                                    do volopmas,t  form.                                         4

                                    Directs commercial devel.pn-nt
                                    %(i existing towns or proposed
                                    village cont.r.                                  4-
                                    Permits broad range & mix
                                    of housing.

                                    Provides for recreational
                                    amen i tyncoda                                                        <4
                                    "p ports  county transport,ition
                                    .y.tcm Objectives

                                    Other objectives:

                                    Rusponsive to Md.'s Chusdpeake
                                    Bay Critic  aI Areas program
                                    direction                                                                   A-     .5
                                    Relative ease to establish

                                    Reduces.developm,ent
                                    review/approval processing
                                    time & information requirements
                                    minimizes development soft
                                    costs
                                                                           -4
                                    Legally detensible                     5                     -3
                                    :Requ L re a, minimum .,Adm irils tra t ive
                                    fitaffi nq                             4                     '3
                                    Receives broad community
                                    rupport

              Summary

                   Based on the advantages and disadvantages of the

              planning implementation tools pointed out in the previous

              chapters, it is asserted here that the tools selected

              by Queen Anne's County should be capable of achieving the

              following ends:

                      The control of the location and timing of new

                      development and redevelopment and the provision of

                      the necessary infrastrucure for both in accordance

                      with adopted land use and financial plans and

                      policies.

                      The control of land use interrelationships in order

                      to minimize conflicts between uses (negative

                      externalities) and maximize inter-use benefits.

                      The control of community appearance in the interests

                      of preserving historic or esthetically significant

                      structures and sites, preserving the character of

                      esthetically pleasing old neighborhoods, and

                      encouraging in new development and redevelopment a

                      richness of variety within the bounds of

                      esthetically and functionally harmnonious

                      relationships.

                      The provision of a means of economic compensation

                      where land use controls inequitably restrict

                      development or redevelopment; that is, where use of

                    the police power could reason ably be construed as

                    constituting a "taking" without due compensation.

                    The control of the physical design adequacy of new

                    development, and maintenance of the quality of the

                    built environment.

                    There must be coordination of the implementation

                    tools into an implementation program so that they

                    will be used in a mutually supportive and

                    nonconflicting manner. This may require sacrifices

                    of political and administrative independence and may

                    be made more difficult by failure of administrators,

                    in some cases, to perceive their implemtnation

                    actions as part of a system. Although integration

                    of-the implementation tools into one program is not

                    in itself a criterion for existence of a land use

                    guidance system, it is likely to influence the

                    degree of operational efficiency.

                    The guidance system, in its implementation program,

                    must take into account the influence of federal and

                    state policies and programs in order to take maximum

                    advantage of and minimize conflict with these plans,

                    policies and programs. Most systems tend to ignore

                    levels of government other than the level of the

                    agency proposing the system.

                     Perhaps most important if the guidance system is to

                     receive the political support necessary for it to be

                     effective, it must provide for the full

                     participation of the County's political.

                     representatives, civic and professional groups,

                     citizens' organizations, and individual citizens in

                     the planning, policy-making, and preparation of

                     implementation programs.

                                  APPENDIX I

       Queen Anne's County Comprehensive Master Plan (Julian Tarrant,
            Consulting City Planner, 1965)

       Queen Anne's County Comprehensive Master Plan Draft (Queen
            Anne's County Planning Department, 1975)

       Comprehensive Plan for the 4th & 5th Districts, Queen Anne's
            County, MD, Greenhorne& O'Mara, Ihc., 1985

       Queen Anne's County Subdivision Regulations (1975).

       Queen Anne's County Zoning Ordinance (1964). (Including subsequent
            amendments)

       The Effects of Large Lot Zoning on the Depletion of Agriculature
       Land (Maryland Department of State Planning, 1977).

       Queen Anne's County Rural-Development Report Draft (Maryland
            Department of Economic and Community Development, 1982).

       Reconnaisance Survey of Development Activities, Queen Anne's
            County, MDv Queen Anne's Conservation Association, Inc.
            (William Cohen, Consultant) 1982.

       Mar.yland Automated Geographic Information System (Maryland
            Department of State Planning, 1979.

       Assessment and Management Plan for Shore Erosion Control
            in Queen Anne's and T.lbot Counties, Maryland (Maryland
            Department of Natural Resources and Talbot County Planning
            Department, 1982).

       Administration of Flexible Zoning Techniques, P.A.S. llk'eport #318,
            Mike J. Meshenberg, 1976

       Innovative Zonin_q: A Local Officials Guidebook, U.S. Department
            of Housing & Urban Development, (Rahenkamp, Sachs,
            & Associates, Inc.) 1977.

       Performance Zoning, Lane Kendig, A.P.A. Planners Press, 1980.

       Land Use Planning, Techniques of Implementation, T. William
            Patterson, 1979.,

       Zoning Ordinance, Bath, MI (Simplified Performance Zoning App.roach) 1982

       Cost-effective.Site Planning, National Association of Hpme
            Builders., 1976

                                (cont.)

                                      APPENDIX 1

                                      (cont.)

         Protecting Farmlands,, Frederick Steiner and John Theilacker,
               1984.

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