Land Use & Zoning

In South Dakota, 'transferable development rights' (TDRs) differ from traditional zoning in that TDRs:

ATransfer zoning classifications between adjacent parcels
BCreate a market mechanism allowing development density to be shifted from protected sending areas to designated receiving areas✓ Correct
CAllow developers to transfer building permits between projects
DEnable cities to transfer development authority to counties

Explanation

TDRs create a market-based system where development rights from protected areas (farmland, open space, historic areas) can be sold and transferred to designated receiving areas where more density is desired. The sending area gets permanent protection; the receiving area gets additional development capacity.

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