People who want to invest in land to either “develop” it (as that term is defined in the articles in this Land Development Values series) or to build on it and sell a total package (e.g., a new home on its lot) have to sift through many parcels because everybody wants to try to sell them a property! The process of identifying the parcels that are worth pursuing, therefore, is very time consuming, and land buyers need tools to enable them to quickly weed out the junk and identify those parcels that warrant further consideration. So buyers typically use rules of thumb and formulas for their preliminary screening.

These rules of thumb are designed to provide rough estimates relating to the yield of a site and different cost factors because these are the key aspects in calculating the “right” price they should pay for the land. By defining the price at which the numbers work, land buyers can see within minutes if the seller’s asking price is realistic. If the land parcel is substantially overpriced, the buyers can simply discard the property and move on to better prospects.

Commercial Land Developments
Not surprisingly, the methodology for roughly estimating site yield and improvement costs is not the same for both residential and non-residential land developments. For retail or office parcels, the yield is the amount of potential building space that can be built. This is usually a function of the number of parking spaces that will fit on the parcel and taking into account the overall development limits imposed by impervious coverage and green space requirements set by the zoning ordinance. One rule of thumb might be used to estimate the total amount of land area needed for each car that would be parked on the office property (e.g., square feet for parking space plus drive aisle). Another would approximate the amount of land area taken up by sidewalks and walkways. A third rule of thumb might assume that the cost for vertical and horizontal improvements would be $100/sq. ft. of office space.

Residential Land Developments
The rules of thumb applied to residential land developments would be designed to estimate the number of building lots that the parcel could produce once the subdivision had been completed, and the cost for horizontal improvements. The value of each “raw” building lot would be calculated based on the projected sale value of the finished product (house on its lot) and the improvement costs.

One site yield rule of thumb might net out of the gross land area of the parcel the amount of square feet that would be wasted or couldn’t be used for whatever reason and then would divide the result by the amount of the minimum lot size required by the zoning to come up with the number of lots. For example, the rule of thumb calculations might look like this for a 15 acre vacant parcel zoned for 20,000 sq. ft. lots:

Step 1: 43,560 sq. ft. x 15 acres = 653,400 sq. ft.
Step 2: 653,400 sq. ft. x 70% = 457,380 sq. ft.
Step 3: 457,380 sq. ft. divided by 20,000 sq. ft. = 22.87 building lots

The final result is always rounded down, so there would be roughly 22 building lots for this parcel. In the second step, 30% of the gross site area was deducted to account for wastage, square feet lost because of natural constraints (e.g., slopes, floodplain, irregular shape) and land area that would be taken up by new roads in the community.

Remember that rules of thumb can vary by geographic area. They are rough estimates so you should modify them as circumstances warrant and not just apply them blindly. If a substantial portion of the 15 acre parcel was in floodplain, it wouldn’t make any sense to deduct only 30% from the total gross site area. If you’re not sure what rule of thumb to use, be conservative.

People who invest in land for a living, like builders and developers, know that following a couple of cardinal rules can mean the difference between having a deal that’s potentially viable and one that is a disaster in the making. Here are the principles that influence their purchasing decisions.

Rule 1: Location
Location is the most important aspect of a property because it’s the only thing that cannot be changed. You can demolish or add onto a house or maybe even pick it up and move it, but you cannot pick the land up and move it. Location determines not only how the property can be used (zoning) and accessibility to public utilities, but also the parcel’s value based on the surrounding properties. There is no substitute for a good location.

Rule 2: Value Is Always Related to Use
The value of land for development hinges on its ability to be used by buyers. A 10 acre parcel with substantial areas of floodplain, steep slopes or wetlands may produce only one building lot. Its value will ultimately be determined by what a buyer can do with it (i.e., build one house) and not by the number of acres it has.

Rule 3: More Target Markets = Higher Value
Value increases if the parcel can be used by many potential buyers or categories of buyers. Several factors determine the market appeal of development land. These include uses permitted under current zoning, location, availability of public or on-site utilities, physical characteristics, and legal restrictions. Suppose you’re thinking about buying a property that abuts a pig farm. It has everything you want, including a cheap price tag. But chances are, you won’t find many buyers for it when you go to sell. Conversely, you will have to pay more for a parcel abutting parkland, but you’ll have your choice of buyers willing to pay a premium price for it.

Rule 4: Value = Price + Terms
Ultimately, buyers determine what a property is worth, but an offer is much more than just price. It’s a set of scales with price on one side and terms and conditions on the other. The real value of development land is the price a buyer is willing to pay in exchange for terms and conditions. For example, you want to buy a landlocked parcel. You need to know if the owner of the adjoining property will sell off some frontage. You don’t want to purchase the frontage unless the seller accepts your offer and you don’t want to have to buy the property if you can’t get the requisite amount of frontage. So you would give the seller an offer contingent on your being able to get the frontage and anything else you’d need to be able to sell the parcel to builders. You would offer the seller a higher price if the seller would agree to these conditions than if the seller wanted to sell “as is.”

Rule 5: When Buying, Think Like a Seller
Before you decide to buy a land parcel, you should evaluate it as objectively as possible and try to identify objections that buyers might have when you go to sell. In short, when investing in land, think like a seller because your goal is to sell the parcel, not live on it. When builders purchase land for development, they evaluate it in the context of the property’s appeal in the eyes of the end users (i.e., home buyers or those leasing or purchasing office and retail space).

Rule 6: Do Your Due Diligence
Most of what you need to know about the land parcel cannot be seen. So many issues need to be investigated, including zoning, utilities, surrounding property uses and values, deed and other title restrictions, and the site’s physical features. It’s absolutely critical that the due diligence be performed thoroughly, even if that means you have to hire somebody to do it for you. There are no short cuts here. Incorrect assumptions, bad information and what you don’t know could come back to haunt you.

Developing land can be profitable, but if you’re not prepared red tape, cost overruns, and building delays can make the process feel both endless and difficult. Want to ensure your land development goes smoothly?

In this guide we’ll discuss assessing your needs, finding the right property and staying on budget and on schedule.

Tips for getting started

Before you start looking for properties, you’ll want to spend some time thinking about what kind of project you’re looking to do. If you’re a first-time developer, you may not want to start off with an entire subdivision or a large-scale commercial property. You may also want to keep your first project close to home, where personal connections can help you with both the red tape and your search for a trustworthy, high-quality builder.

You’ll also want to look at what you can afford as you’ll likely be paying for some or all of the development costs with a loan. The size of the loan you can get depends on factors like your income, assets and how much experience you have with developing. Talking with a local banker can help you get a better sense of the loan size you can expect to get. More experienced developers may want to consider other options for financing, such as attracting individual investors or contracting with a seller who can help shoulder development costs.

Finding the right piece of land

Once you’ve thought about your ideal project and your budget, you can start looking for vacant land. Look at several properties that fit within your size and budget requirements and then analyze the locations. To do this, it helps to think from the future owner’s point-of-view. If you’re building a family home, you’ll want to look at the quality of schools, access to parks and the distance from the city or office developments where the owner is likely to be employed.

Once you’ve found a property that looks like a good fit, it’s time to ensure your investment is a sound one by looking at these three areas:

1. Site desirability: good schools and transport links won’t save a property that’s located in a flood plain or near to a plot slated for undesirable development, such as a water treatment plant. You may also want an engineer to come out to look at things like soil quality, drainage issues or environmental problems.
2. Local political situation: politicians can be a major roadblock to your development. Do your homework in advance by seeing if there is anyone strongly anti-growth or against the kind of projects you’d like to do.
3. Financial situation of the local jurisdiction: a local budget crisis can mean serious permitting delays as staff is laid off or furloughed, or increased costs for infrastructure if the community can’t afford its usual share.

Controlling your costs and schedule

Once you’ve decided on a property you can move on to more in-depth planning. You can start by creating a master schedule, a key tool that can help you keep your land development project under control. Write down each step in the order it should be performed in, starting with planning and continuing through each step in the permitting process. While many tasks can be handled at the same time, keeping an orderly, updated schedule will make sure you don’t cause delays by missing vital steps. This is important, since the sooner you start construction, the less interest you’ll accumulate on your loan.

To keep things moving, know where you can speed things up. For example, consultants, engineers and architects can often complete work more quickly if you ask, but local agencies or regulators usually won’t.

Another way to keep your project on track is to work with quality contractors. While it may cost more to hire someone who works to a high standard, it can actually be more costly to work with someone who does subpar work. If planning boards ask for changes in design or city engineers cite you for not being up to code, it can cause costly delays. Working with people with a good reputation and inspecting the site often can make sure that quality stays high. And in the end, a commitment to quality will likely pay off a second time, when you start marketing your development to buyers.

Property development due diligence involves many steps. When done correctly the risk involved with land development are greatly reduced and the odds for profit are increased considerably.

The first step before signing your contract with the Seller is to clearly negotiate all terms that you require. If you and the seller understand all that is expected of both parties, in particular during the due diligence period, you will avoid potential problems down the road. This is where your attorney comes into place. I highly recommend hiring an experienced real estate attorney that is familiar with negotiating land purchase contracts and working with developers. Purchasing land is risky and it is best to minimize your risk from the onset. Typically land purchase contracts go through numerous negotiations and revisions. It is much more difficult after the contract has been signed to get the parties to agree to contract amendments, although contract amendments and addendum are prepared quite frequently based upon inspection report findings and other events that occur during the due diligence period.

Requesting in the contract that the seller provide inspection reports or other documents you require during the due diligence period is crucial in evaluating whether you are able to achieve your development goals with this particular piece of property. Be sure to provide a time period for the due diligence that all parties must comply with. 30 to 60 days is the minimum due diligence period for the buyer to conduct his due diligence but 120 days or longer is not uncommon with complicated acquisitions or parcels that require rezoning or are contingent on permit approvals.

There are many factors that you should consider which influence purchasing unimproved land. Since purchasing raw land has risks, I suggest you keep in mind the following (Please Note: Much of this information was gathered from the website Property Development Source):

1. Title Issues.

Are there any clouds on the title? In other words, does the seller have clear title to the property? Review of all title reports and underlying documents affecting the property is crucial. Having a real estate attorney review the documentation on your behalf is recommended whether you are a novice or experienced investor/developer. However, you should review the documents yourself too. Ask questions if you do not understand something or it looks odd to you. The main concern is to make sure the seller does in fact have legal and clear title so that you will not have any legal issues later on. Title insurance protects you in this regard, but you do not want to have to be litigating title issues when they can be discovered early on before you close the deal.

2. Survey Issues.

Are there any encroachments from adjoining properties on your land or vice a versa? Encroachments could be neighboring buildings, utilities, easements, fences, water, etc. Are the property boundaries clearly marked and surveyed? If there are encroachments, you and the seller will need to be able to resolve the issues prior to closing. Some issues may not be able to be resolved or resolved in a timely manner and you must decide if you still want to purchase the land despite the unresolved issue. You may need the seller to obtain what is called an easement from an adjoining property. An easement is a written document allowing one party use of another party’s water, road, utility lines, parking spaces, driveway, etc. An easement is typically drawn up by the seller’s attorney and reviewed by your attorney. Title companies will exclude encroachment issues from your coverage so it is important to resolve these issues immediately.

3. Land Use Approvals.

Zoning regulations, site plan approvals, building permit and approvals, lot size, setback issues, fire safety issues, environmental and health issues such as sewer, septic disposal, storm water management, streams, rivers, wetlands, etc. Recommend obtaining an environmental report to determine if there are any problems with chemicals, pesticides, pollution, etc.

4. Availability and Access of Utilities.

Access to utilities, water, electricity, gas and sewer/septic systems, telephone, cable and internet is another concern that needs to be investigated. If access is not readily available, it can be costly to get basic utilities to the site.

5. Accessibility of roads.

Are there roads already in place or will you need to build them? You also need to consider the cost of maintaining the roads.

6. Topography, drainage and flood zones.

Recommend obtaining a soils report and geology report. Is the property in a flood zone? There are designations of flood zones areas and insurance availability is conditioned upon what flood or fire zone properties are located in. Slope issues, stability.

During the due diligence period, the seller must provide you with certain past or current reports that he has in his possession such as geology, soils reports, environmental reports. It is best to request these in your contract so that all parties are clear about what they need to deliver to each other. Depending on how old the reports are you can then decide if you want to rely on the seller’s reports or obtain new ones. Also, be sure your contract states the seller will assist with any permitting or regulatory actions that may be required during due diligence. (Often local permitting agencies won’t release information or accept rezoning or permit applications without the present owner’s signature. This clause in the contract states the seller will sign these type of documents as needed.)

It is also important to remember that the seller cannot legally sell the land to someone else. He can take back-up offers, however. A back-up offer is another offer contingent upon the first offering not going through and the first buyer canceling the deal. It is totally legal and ethical for a seller to take backup offers and this practice is done frequently in a seller’s market [where demand is high and inventory of available properties is low]. The seller cannot legally disclose to the second backup buyer the purchase price or terms of your offer unless all parties agree to the disclosure nor can he disclose to you the amount of the backup offer and terms without the other party’s consent.

By doing your due diligence you minimize your risk. It is impossible to anticipate every source of delay or risk. Conducting due diligence will cost you money and time. The customary way of conducting due diligence is to hire professionals to assist you. Attorneys, surveyors, engineers, environmental experts, zoning and land use specialists who will review documents, do inspections and make inquiries on your behalf during the due diligence inspection periods negotiated between you and the seller in your purchase contract.

When you want to buy land for development, you should think of your offer as consisting of two parts. Buyers and sellers often focus only on the price part of the equation and ignore the one that’s just as important – terms. In fact, the terms and conditions that are included in the land development offer can be even more critical than price. Why is that?

There are several reasons. People buying land need to have contingencies built into their offers that allow them time to get certain things done. Land developers typically want the ability to walk away from a deal when they learn new “adverse” information or when something else happens that, in their opinion, lessens the viability of doing the deal. Terms and conditions in land development offers address the purchaser’s bottom-line concern: I want to be able to get out of this deal if I can’t do what I want with this property or if the deal no longer makes sense for me.

If you’ve read my previous article (“Due Diligence for Real Estate Investing: An Overview”), then you know that virtually everything land investors need to find out about a property has to be investigated because it isn’t readily apparent or visible. Doing or not doing the deal can depend on the facts uncovered by your investigation. As a result, due diligence plays a huge role in the land business. So how do you give yourself the right in the contract to get the necessary information?

Land development offers provide for an up-front period of time, often 45-90 days from when the contract was signed by both parties. During this due diligence or feasibility period, buyers can do whatever investigation and testing of the property they want at their own expense, such as verifying the zoning, obtaining site-specific information (topography, floodplain, soils, wetlands, boundaries, environmental contamination and utilities) and data relating to the area (plans for future development and growth or property values).

At the conclusion, the buyers can continue with the next phase of the transaction or terminate the contract and be refunded any down monies if they’ve learned something that negatively impacts the feasibility of the deal. The purpose of this up-front period is for the buyers to get the information necessary to determine if the property can be developed as they want. Even if the buyer’s offer doesn’t contain any other contingencies, it will provide for this feasibility period, and if you think about it, it doesn’t make any sense to buy land without knowing all of the material facts.

Other contingencies in the land development contract generally depend on the scenario contemplated by the buyer. For example, if the property is going to be subdivided, the contract might state that the purchase would be conditioned on the buyer getting a minimum number of lots approved by the municipality. Provisions for getting use approvals (such as a variance, special exception or conditional use) or an outright change of zoning classification would be included. Since the ability of the property to be served by public or private utilities may be important, the offer would contain language relating to getting the requisite utility approvals and permits.

Land development offers are not cookie cutter. They need to be customized to take into account the particular property and the buyer’s intended use. Accordingly, buyers don’t work with the forms customarily used in buying or selling houses. These forms simply wouldn’t be adequate for this type of real estate. Instead, developers employ attorneys to assist them in preparing the contract and modifying it as the situation warrants.

Land investors who want terms and conditions have to be prepared to pay a higher price for the property. Land owners who want to get the highest price for their properties need to be willing to give terms and to allow buyers the opportunity to work through reasonable contingencies. If they try to get buyers to purchase the land “as-is” (without any contingencies), they are likely to discover that there’s no market for their parcels, perhaps at any price. This doesn’t mean, however, that sellers should give buyers an open-ended contract (i.e., an unlimited amount of time to satisfy the contingencies). This is where land sellers would be very smart to retain a “real” real estate attorney to guide them in evaluating land development offers and whether particular contingencies (and time frames for satisfying them) are reasonable and realistic.

The fact-gathering process begins with your first contact with the land parcel and continues throughout the time you’re involved with the property. Although you’ll be collecting various types of information at different stages, the primary purpose of due diligence in the context of “developing” a property is to enable you to determine if the land development would be economically feasible.

The specific information that you will need about a parcel will depend on the land development scenario you want to do, the specific property, applicable laws or ordinances, the seller and other facts unique to the situation. However, as discussed in previous articles in this Land Development Values series, key issues include a rough estimate of the site yield, the improvement costs and the potential income you could realize from transforming the property. So those are the issues on which you should focus your efforts when you’re beginning your evaluation of land parcels.

Location: Utilities & Surrounding Area

You will need to find out if the parcel can be serviced by public utilities (especially sewer and water) because this has a direct impact on the potential yield of the site and the ultimate cost of improvements. In addition, zoning ordinances often require that public water and sewer be available in order for a parcel to be developed into certain uses or specify different densities based on public and private water and sewer. Accordingly, you’ll need to determine the locations of existing or proposed lines by reviewing mapping available at the offices of the municipality, governmental authority or private utility company. The presence of lines at or near the parcel is no guarantee that utility service is available. A moratorium on new connections could prevent the property from accessing existing lines, so you should also find out if utility permits are available and the cost of permit and tap-in fees.

Depending on your intended land development scenario, you might have to discard the parcel if it cannot be serviced by public water and sewer. However, if that is not the case, then you will ultimately need to find out (with assistance from your engineer) if the soils and other geologic conditions on the property favor on-site sewage disposal systems and wells. In addition to making site yield more speculative, private utility service may add significantly to improvement costs.

To avoid the “noxious neighbor” trap (discussed in a previous article), you should investigate the properties in the area of the one you’re pursuing. This means checking out the current zoning and getting details of any pending subdivision, use or development applications. Use common sense to define the scope of the area you investigate. The “impact zone” can extend beyond properties within walking distance where the existing use or proposed change could have a negative effect from a distance.

Physical Characteristics

You don’t have to be an engineer to collect some basic, preliminary information about the parcel’s features, such as existing structures, topography, size, shape, road frontage, and whether it appears to have areas of wetlands and floodplain. Data and mapping relating to soils, wetlands, topography and floodplain are available from several sources on and off the Internet. Aerial photography can be quite useful in getting a sense of the parcel’s boundaries and conditions on and off the site. If you get to the point of putting a parcel under contract, your engineer will assemble site-specific information, but your preliminary research should give you a general idea of the site’s natural or man-made features that may present challenges to developing it.

Restrictions

In addition to researching the zoning of the parcel, you may want to get a copy of the current deed to see if there are any obvious title issues, such as easements and restrictive covenants. (You would, of course, have a full title search done during the feasibility period of your purchase contract.) When you’re at the municipal office, be sure to find out if the property has undergone use, subdivision or development proceedings in the past and if so, review the municipal files and plans submitted.

Finished Product Value

After you “develop” the parcel, you’ll want to be able to sell it for a profit. Your buyers may be builders who will, in turn, sell the finished product to end users. Therefore, what you can get for the parcel in part depends on the ultimate value of that finished product (i.e., building lots, residential new construction packages, or office and retail facilities). Where you contemplate a residential subdivision, you should identify the current and pending residential communities in the area, the builders involved, what the home sites are selling for and the rate at which they are selling. Also critical is the revalue of existing housing in the immediate area because this in a sense sets the bar for the sale prices of the new construction on the site. For office and retail uses, research rent rates obtained for comparable non-residential properties in the area. Where applicable, find out the sale prices of individual office or retail buildings and condo units.

Owning a piece of your very own hunting property is no doubt one of the best possessions there is when it comes to hunting. I have been hunting public land my who life and I am definitely ready for a change. I grew up hunting a variety of game. My love of the outdoors led me to obtain a Fisheries and Wildlife degree from the University of Minnesota. After working for a few different organizations I am now a real estate agent who specializes in hunting properties. Over the years I have learned what it takes and what can be done to your hunting land in order to increase the quality of the hunting. As I go through these 4 tips, keep in mind that every property, population, and area is different. Some of these tips may work for you while some may not.

• The highly regarded FOOD PLOT

Food plots are the new rage when it comes to attracting wildlife to your property. Not only will food plots assist in attracting wildlife to your property but they will give you a place to observe and even stalk/wait for your game. This is a highly effective strategy and one that I encourage provided certain conditions are met and the owner takes time to learn the proper technique in building food plots.

• WILDLIFE OPENINGS

Like food plots, wildlife openings provide food and sometimes even cover for a variety of wildlife species. A wildlife opening is basically a cleared area on a property that allows for undergrowth and young saplings to grow. These young plants and trees can provide a very high amount of forage for animals. These open areas allow forage such as grasses, clovers, Jewelweed, and berries such as raspberries to grow. Wildlife openings are much easier to work with because they don’t need much if any future attention, unlike food plots. They are great if you do not have the time, money, or equipment to manage a full blown food plot. My next tip will show you some cheap and one-time additions you can add to the opening.

• Mast producing trees

Mast producing trees are basically trees that produces forage from their canopy. One of the highly regarded trees of wildlife in Minnesota are the Apple trees. Apple trees are great for wildlife and hunting properties because once they are established they can produce a huge abundance of forage for wildlife during the fall season for years to come. Apple trees can be a great addition to a wildlife opening.

• Trails

Although trails are naturally occurring in the wilderness it can be very beneficial to add or maintain them on your property. Most wildlife prefer the path of least resistance, which is why you will find trails throughout the woods. Maintaining the current trails or even creating trails will allow you to monitor the local wildlife population. Trails provide a great place for game cameras which allow you to see and track you game even when you are not around.

I hope you enjoyed these tips and keep in mind that not all properties may be right for these techniques. If you are new to property ownership, I suggest you pick up a few books or check out some other articles to learn more about the subject of managing your property for wildlife.

Have you ever considered what it takes for raw land to turn into the massive land developments we see all around us? Very few things in the world take as much consideration as how to create a land development. It takes developers many months to look into past, present and future information to ensure that they have created a sound plan for the environment to develop the land for the purposes the developer needs it to accommodate.

Research is done for land development because each separate project has its own issues and special circumstances that make it unique. Surveyors and Civil Engineers work closely together to look into every possible potential issue to make sure they have a plan for anything that can happen with a land development project. Things such as drainage, ground stability and the other structures surrounding the project are all some of the things that need to be taken into consideration before the shovel breaks ground.

There are steps that land developers must take on their journey into developing a piece of raw land. First, they must spend an ornate amount of time looking into all of the factors that affect a project. They track economic trends to see if investing time and money in to a land development project is profitable. They also look into things like population growth and job growth to determine the growth of an area. This step usually involves many different professionals. Government officials, business members, real estate professionals and builders will meet with a land developer to create a due diligence report. This eliminates all the guesswork involved and puts the facts in place to determine the worthiness of a proposed project.

Once developers have found land, determined that an area’s growth rate is worthy of the proposed project developers will go about negotiating for the acquisition of the raw land. There are two common ways most developers go about this process they are; purchasing the land upfront with cash or negotiating an option to purchase the land by a set date and price by putting a large deposit down. The second option is considered more favorable because it leaves developers funds available for the project at hand. It is unwise to tie up working capital when working on land development projects.

Next developers draw up architectural plans for approval by local government officials. Whether land is being developed for a sub division, a professional complex, an industrial park or a shopping plaza plans need to be approved by officials and if funding is be acquired by outside investors should also be involved in approving the proposed draft. This step all involves accessing permits by all stages of government that are needed for the developer’s project to continue smoothly.

Lastly the land will be converted from raw, natural land into what land that has been processed into a state that makes it useful and valuable to the land developer and all participants involved in the process. Builders come in purchase the land and begin turning it into a piece of property that fulfills the need of the surrounding community.

Development takes a piece of Earth that most people look at as a vacant wasteland without purpose and turns the natural, raw, land into a plot of riches. Developers take on the huge risks involved in land development because of the large reward financially in the end.

What is An Entitlement?

The definition of entitlement with regard to land development is the legal method of obtaining approvals for the right to develop property for a particular use. The entitlement process is complicated, time consuming and can be costly, but know what you can and can’t do with a piece of property is vital to determining the real estate feasibility of your project. Some examples of entitlements are as follows:

Entitlement Examples:

1. Zoning and zoning variances for building heights, number of parking spaces, setbacks. Your land use attorneys and zoning experts come into play here. My advice is to heavily rely on their expertise and follow their directions to avoid unnecessary delays in your approval process.

2. Rezoning. Depending on the current use allowed for the property, you might need to have the site rezoned which is a complicated process and sometimes cannot be done.

3 Use Permits. You may need to obtain conditional use permits and this goes hand in hand with zoning and zoning variances.

4. Road approvals. Do you need to put in existing roads? Who maintains the roads? Are there shared roads via easements? These are all questions that you need to have the answers to and be prepared to comply with in the regulatory process.

5 Utility approvals. Are utilities available to the site? Do you need to donate land to the city in exchange for utility entitlements? Again, you will need to comply with the municipality regulations and standards.

6. Landscaping approvals. The city planning and development agencies must also approve your design and landscaping. Your architect and engineers will be most helpful in this area.

Hire an Experienced Development Team:

The best advise is to hire an experienced development team of architects, developers, lawyers, project consultants, civil, soil, landscape and structural engineers and consultants at the onset to help you analyze, review, interpret and advise you regarding design studies, applicable zoning and code requirements, and maximum development potential of the property. Without an experienced team, it is extremely difficult and a lot of time will be wasted in trying to complete the regulatory process because the very nature of the regulatory process is so complicated.

Here is how the process works. First, remember to keep in mind that the process is very slow and frustrating and can take approximately 3 to 12 months or sometimes years depending on how complicated the project is. Part of the reason is that each city planner has different interpretations of their local rules. Today, approvals involve jurisdictions overlapping such as city, county and state and these jurisdictions do not communicate with each other. It is extremely crucial that you establish good working relationships with these planners to obtain your approvals. Again, this is why you need to work with a development team that has already built these relationships with local staff of the local jurisdiction where your property will be developed. These relationships will streamline and help to expedite your approval process. Your experienced team of experts will be able to negotiate issues for you and eliminate additional requests by the local jurisdiction to avoid further delays in obtaining your approvals.

Regulatory Process:

Majority of development projects must go through certain aspects of the entitlement process and some projects will be required to go through several public hearing processes for approval depending on each jurisdiction’s rules. To begin, commercial development of land requires a review and approval from the local Development Review Board or Planning Department Review Division. Each municipality has a different name but the functions are similar.

1. The process starts with obtaining site approval from the local Planning and Development Department. By contacting the local Planning and Development Department Review Division, your expert team will then put together a land use pre-application which complies with the codes of that particular jurisdiction. By complying with the codes, this will eliminate additional requests by the jurisdiction, further review and extension and unnecessary delays of the approval process.
2. Next a meeting date will be set. You and/or your representatives will meet with the Planning Department to discuss the proposed project and review process. The process includes approval of your site plan, elevations, colors, landscaping, vicinity map, etc. Environmental information will need to be submitted also. There is usually a fee that accompanies the application. The fees vary from jurisdiction to jurisdiction.
3. If for some reason your site plan is denied, you can appeal to the City Council. The appeal process varies from each jurisdiction.
4. Once you obtain site approval, then you will need design approval, master use permits. The design approval process is where your architect will design the building shell, core layout, exterior appearance, building height, site layout, landscaping concepts, traffic impact, site access and utility layouts and submit them for approval.
5. Neighborhood hearings are generally required for all general plan conditional use permits. You may be required to send out written notice or post information on the site. Normally the City will send notices to the neighbors also. Signs should be placed on the property, and an open house meeting is generally held. Your development team will be instrumental in advising and assisting you so that you have a higher probability of achieving success in obtaining neighborhood approval. Be prepared, even if you comply with the regulatory process codes and regulations, there is always the possibility that the neighborhood may have their own agenda and that the hearings and decisions may not be favorable to your project going forward. This is where your attorneys and the rest of your development team’s expertise and participation are crucial.

If wetlands are located on the property you will need special documentation that states whether the Wetlands Act applies or not. If it does, either it will result in significant or insignificant impact as granted by evidence of a permit. Sometimes it is best to set aside or donate the wetlands portion of the property and avoid development issues. Your development team will be able to advise you on the best course of action once they have assessed all the information and reviewed the reports.

Land development is a crucial part of the modern society we live in today. Land development involves the alteration of natural land to create a site that is ready for building. Construction could be for public, private, commercial, residential or even government sectors. Developing land involves many improvements. For instance, most land in its natural state does not have adequate drainage for building. In order to create an environment that is stable to build on land developers go in and prep the land for later construction. This might involve excavating the land, filling it in, paving areas or even adding concrete. These things are done to improve the land to prepare the environment for construction.

Developers assume great risks when developing land. It is such a lucrative business to go into because of the risks involved. Not every mind works in the same fashion. Land developers must be able to look at the current facts and historical data to make predictions on how the conditions involved will affect the piece of property. With that information they can choose what the best method is to prepare the site in order to create the most usable land.

The risks involved are huge. If a mistake is made even if construction has begun on the land the developer is responsible for correcting the error. When something goes wrong the developer is physically and financially responsible to correct the situation. They are creating the entire infrastructure of the project. The position they hold is not only risky but very profitable when things go as planned.

Of course there are so many aspects of risk in any position that is held. The first risk in land development is the developer’s skill level. How much experience does a developer have? You need to be able to look at a piece of natural land and develop it within the concept the construction company has without error. The bigger the project the more difficult the task at hand will be. Developers must use math, science and their knowledge of construction to create a site for their clients.

Developers will be called in as investors search out available raw land. It is important that a developer know what to look for in helping investors purchase property to develop. It is important to know if the lot you are looking at is going to be perfect for a residential sub division or is a mini mall is better suited for that property. It is important to access the land around the site including any buildings that might be erected already or in process. Does the development that is being proposed fit in the area? This all rests on the land developer.

If you are searching out land to develop before an investor is involved you will also need to find funding for your proposed project. This is quite often the hardest part of a developer’s job. You must prove that it is viable and at the end of development you will be able to make the money needed to pay off the loaned amount. It is a waste of money to develop land that is not seen as valuable. How as a developer can you make each development more valuable than the next?

Land development is not all about where to place this dirt to make a smooth canvas for construction to begin. As you can see it is truly all encompassing in the entire construction process. Developers need to make sure that the manner in which they displace the current landscaping and replace it is the most profitable for all involved.