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Land Development Checklist Eric Kieley Photography
LAND DEVELOPMENT CHECKLISTThis checklist outlines the typical process developers should go through, from looking at a property prior to purchase to evaluating the site potential, obtaining development approvals, and preparing nished lots for sale to builders. Land development today involves a rigorous, comprehensive set of evaluations and approvals involving multiple parties in both the private and public sectors. This resource will help both developers and public oicials better understand the many steps in the land development process, the timeline, likely costs, and required due diligence associated with residential development.Land Development ChecklistDecember 2019 | 32 | December 2019
What is the reason for interest in this piece of land? What governmental entities have jurisdiction over this property? Has the property been recently surveyed? What is the gross and net size of the property (developable area)? What is the price of the property and requirements of the transaction? Are there any physical improvements? What is the condition and approximate value? What is the zoning for this property? What is the zoning/land use of the surrounding properties? Are there any physical encroachments from neighboring properties?Site Constraints and OpportunitiesI FOUND A PROPERTY FOR SALE, NOW WHAT DO I DO? Are there existing easements or covenants on this property? Has the owner put any other conditions on the land? Will there be right-of-way dedication required? Are there power lines or transmission lines crossing the property? Are utilities available from government entities? Do utilities serve the property or do they need to be extended? How would you rate the location for the intended market segment? What is the highest and best use of the property? Is the land owner willing to sign an option agreement?Photo Credit: United Landmark AssociatesUnited Landmark AssociatesDecember 2019 | 32 | December 2019
LAND DEVELOPMENT CHECKLIST Perform American Land Title Association (ALTA) land title survey Walk the property and take site photos Consider the following: { Rock outcroppings { Low areas { Slopes { Floodplains { Wetlands { Water elements { High points and ridgelines { Land forms/unique natural features { Views and vistas { Sounds and smells { Cultural and historic resources Is the land characterized by or exposed to: { Poor soils { Soil erosion { Subsidence { Geologic hazards { Unusual noise, vibration or smells { Ingress and egress limitations { Poor surface drainage { High water table { Proximity to industrial facilities { Unsightly views { Upstream dam { Railroad tracks { Heavy air traic { Heavy vehicular traic { Any other actual or apparent safety concerns? { Are special consultants needed? Inventory natural resources Topography Forest cover Natural or man-made bodies of water Wetlands delineation Floodplains Wildlife Soils and rock Steep slopes Plant communities and speciesSTILL INTERESTED IN THE PROPERTY? CONTINUE YOUR RESEARCH….Site Constraints and Opportunities (cont'd)December 2019 | 54 | December 2019
Development requirements come in many forms and can be imposed on this process by governments at dierent levels. At the local level, jurisdictions may charge permit, utility hook-up, and impact fees and establish development and construction standards that either directly increase costs or builders and developers or cause delays that translate to higher costs.Source: Paul Emrath, Ph.D. “Government Regulation in the Price of a New Home." Housing Economics, 2016.ADDITIONAL INVESTIGATIONS Are there any waters of the U.S. on the site or running through the site? Have soil borings been conducted to determine depth? What are the potential access points or routes? What is the frontage and depth relative to the roads? Are there adequate stormwater outfalls? Has an Environmental Phase I Assessment been conducted? Are there any hazardous materials that will require clean-up/disposal? Have preliminary perc tests been conducted? Is there utility capacity available to serve the property? Will utility relocation be required? Are there wells on the land? Well depth? Will the property require septic? Will a community septic tank work on the site? Police and re services provided? Trash pick-up? Are there any special local environmental regulations (ex: critical area, water quality protection area)? Is the property subject to Fish and Game regulations? Are there any threatened or endangered species on the site? Has any portion of the site been classied as historically or archeologically signicant?December 2019 | 54 | December 2019
LAND DEVELOPMENT CHECKLIST{ What are the development review and approval procedures in this community?{ What is the local attitude towards new development?{ Is there a Comprehensive Plan? Master Plan? Growth Management Plan? Neighborhood Plan? What is the future community vision for this area?{ Have we obtained all of the relevant codes and ordinances (subdivision, zoning, energy, building)?{ What is the existing zoning for this property? Does the existing zoning align with the comprehensive plan?{ Is there an overlay district over this property?{ What is the time table for subdivision approval?{ Will the municipality require a donation of land or fee-in-lieu for open space, parks, schools, etc?{ Does the municipality have inclusionary zoning or other special requirements? { Will an Archeological study be required?{ Will a Threatened and Endangered Species study be required?{ Will a traic capacity or impact study need to be conducted?{ Are there natural or historic protected areas?{ Considering the net buildable area, how many units can I build on this property? Can I still make a prot?Government Constraints and OpportunitiesWHAT CAN BE DONE ON THIS PROPERTY?TYPES OF COSTS INCURRED DURING DEVELOPMENT⦁ Pure cost of delays in process⦁ Cost of applying for zoning/subdivision approval⦁ Costs incurred aer approval/before construction (impact fees, environmental mitigation, etc.)⦁ Value of land dedicated/le unbuilt⦁ Costs of complying with changes in development standards (setbacks, road widths, etc.)December 2019 | 76 | December 2019
Project FinancingWILL THIS PROJECT PENCIL OUT? Run a cash ow for the intended use Assess lot sales prices and pace, total development cost and timing, other project costs, so costs, and fees and determine land prices Calculate the loan-to-value ratios Know the various lending guidelines and parameters Gather thorough documentation to prove nancial capacity and project feasibility Is AD&C nancing available? Gap nancing? Permanent mortgage loans? Does the municipality require performance guarantees? Bond? Cash? Letter of credit? Escrow? What municipal nancing options are available in this community (ex: TIFs)? Has a market analysis been conducted? Has a feasibility study been conducted?TYPES OF COSTS INCURRED DURING CONSTRUCTION⦁ Pure cost of delays in process⦁ Added cost due to changes in construction codes and standards over the past 10 years⦁ Permit, hook-up, impact, or other fees paid by builderSource: Paul Emrath, Ph.D. “Government Regulation in the Price of a New Home.” Housing Economics, 2016. December 2019 | 76 | December 2019
Typical Development Approval ProcessRezoning, Variance, or Special Exception Required?Adequate Public Facilities Ordinance Applies?Is Subdivision Involved?Subdivision Sketch PlanStaff ReviewSubmit Preliminary Subdivision PlanFederal Environmental ReviewEnvironmental Impact StatementFederal PermitsThe development approval process varies greatly from one place to another, and many require several layers of local, state, and federal permits and approvals. This ow chart includes steps that are common to the development approval process in many jurisdictions. The time needed to obtain all of the approvals and permits necessary to begin development ranges from several months to many years.DO YOU REQUIRE FEDERAL PERMITS?* Although the development aproval process is typically local, there are an increasing number of federal permits that may need to be obtained.STEP 1 STEP 2Planning Commission HearingSubmit Final Subdivision PlanPlanning Commission ApprovalDecember 2019 | 98 | December 2019APPROVALSYESNONOYESYESNODESIGN CONCEPT
Impact Fee Ordinance?Independant Impact Fee Determination (Optional)Post Construction BondsSubmit Conventional or Alternative ConceptSubmit Site Development PlanPlanning and Zoning Commission HearingsPlanning Commission ApprovalSTEP 3Pay Impact and Other FeesObtain Grading and Other PermitsObtain Building PermitsSell Lots or Build HomesSell/Lease HomesPERMITTING AND FEESDecember 2019 | 98 | December 2019YESNOPERMITTING AND FEESYESNO
LAND DEVELOPMENT CHECKLISTEngineering and surveying $ ___________Soil tests $ ___________Rock removal $ ___________Structure and debris removal $ ___________Movement of water lines $ ___________Removal of hazardous, expansive, and otherwise defective soil $ ___________Hard soil removal $ ___________Soil import/export $ Grading $ ___________Drainage lines $ ___________Slope control $ ___________Retaining walls $ ___________Structures (bridges, culverts, etc.) $ ___________Curbs and gutters $ ___________Pavings $ ___________Sidewalks $ ___________Driveways $ ___________Median islands $ ___________Street lights $ ___________Street signs $ ___________Traic signals $ ___________Water meters $ ___________Fire hydrants $ ___________Landscaping $ ___________Trees $ ___________Walls or fences $ ___________Trails and bike paths $ ___________Park dedication $ ___________ • Land/cash equivalent $ ___________ • Park improvements $ ___________Electricity $ ___________Phone/cable/internet $ ___________Undergrounding utilities $ ___________Gas $ ___________Water connection fees $ ___________Sewer $ ___________Sewer connection fees $ ___________Sewer treatment fees $ ___________Septic tanks $ ___________Pumping plants $ ___________Sanitation district $ ___________Storm drain $ ___________Storm drain fees $ ___________O-tract costs – water $ ___________O-tract costs – sewer $ ___________O-tract costs – other $ ___________Subdivision Costs WorksheetDecember 2019 | 1110 | December 2019
Permits and plan checks $ ___________Inspection fees $ ___________Growth management $ ___________School fees $ ___________Capital facilities fees $ ___________Environmental assessments $ ___________Development taxes $ ___________Other fees $ ___________Bond premium $ ___________Property taxes $ ___________Home Owners Association (HOA) fees $ ___________Interest $ ___________Overhead $ ___________Miscellaneous $ ___________Total subdivision costs $ ___________ • Less projected refund advances $ ___________ • Cost beneting other land or later units $ ___________Actual subdivision costs $ ___________Total raw land cost $ ___________Estimated number of lots ____________Raw lot costs (total raw land cost divided by estimated number of lots) $ ___________Total land and subdivision costs $ ___________Estimated number of lots ____________Finished lot cost (total land and subdivision cost divided by estimated number of lots) $ ___________ Estimated retail value of nished lot $ ___________ Re-run project cash ow based on subdivision cost worksheetDecember 2019 | 1110 | December 2019
LAND DEVELOPMENT CHECKLISTSite PlanI HAVE DECIDED TO PURCHASE THE PROPERTY. NOW WHAT? Know the rules but be creative and innovative Will the site design require a zoning change? Special exception? Variance? Does the design need to be reviewed by a design or architectural review board in addition to the planning board? Fire District? Public Works? Create conceptual layouts { What is the vision and overall design concept? { Product types? { Lot sizes? { Amenities? { Green space requirements? { Considering National Green Building Standard Certication for land development? { Have I contacted the local planning department for early meetings? { What is my public outreach plan? What are the notication requirements? { Have I engaged and met with:• Civic associations, neighborhood groups• Surrounding home owners associations• Adjacent property owners { Outline benets but understand local issues and concernsJohn Bare PhotographyOn average, regulations imposed by government at all levels account for 24.3 percent of the nal price of a new single-family home built for sale. Sixty percent of this—14.6 percent of the nal house price—results from regulations imposed during the lot’s development. On average, regulation accounts for almost 55 percent of the price of a developed lot sold to a builder. The remaining 40 percent— 9.7 percent of the nal house price—is the result of costs incurred but he builder aer purchasing the nished lot.Source: Paul Emrath, Ph.D. “Government Regulation in the Price of a New Home.” Housing Economics, 2016. December 2019 | 1312 | December 2019
Lessard Design, Inc.December 2019 | 1312 | December 2019
LAND DEVELOPMENT CHECKLIST Land use, zoning and subdivision Wetlands Demolition Grading Right-of-Way (ROW) grading and sediment control Stormwater management National Pollutant Discharge Elimination System (NPDES) Storm drain and paving Tree removal and protection Sanitary sewer main construction Maintenance of traic – construction in ROW Construction and sales trailer Model homes Driveway Temporary construction access Signage and marketing Install construction entrances Sediment control installation Clearing and demolition Topsoil removal Utility relocation and osite water and sewer extension Earthwork operations – cut and ll Interim grading for future roads and lots Sanitary sewer install Storm drain install Water system install Curb and gutter Installation of streets, parking and sidewalks Dry utilities Street lights Trees and landscapingREADY TO SELL FINISHED LOTS!Construction SequencingONCE YOUR PLAN IS APPROVED MAKE SURE TO PULL THE APPROPRIATE PERMITSDecember 2019 | 1514 | December 2019
IF SELLING LOTS TO A BUILDER: Sign Letter of Intent and contract for sale before construction of project starts Create contract clause obligating builder to protect existing subdivision infrastructure improvements, tree conservation areas and stormwater Best Management Practices (BMP) from damage during house construction Review architectural guidelines with the Builder Transfer liability for governmental and regulatory obligations Transfer Use of Developers Grading and Sediment Control Permits Performance Guarantees: { Perform a site inspection and obtain partial or nal release of the performance guarantee from the municipality { Obtain a replacement bond or Letter of Credit for builder related items Transfer NPDES, DNR and EPA Land Disturbance permits only aer all lots are developed Provide homeowner or HOA transition and education documentsDebra BassertDecember 2019 | 1514 | December 2019
LAND DEVELOPMENT CHECKLISTThe National Association of Home Builders (NAHB) is a Washington-based trade association representing more than 140,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing nance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is ailiated with 800 state and local home builders associations around the country. NAHB’s builder members will construct about 80 percent of the new housing units this year.For more information on state and local housing aordability strategies, visit nahb.org/lu101 or nahb.org/housingforall.Related NAHB Resources:• Diversifying Housing Options with Smaller Lots and Smaller Homes, 2019• Inclusionary Zoning Primer, updated 2019• Smart Codes, Smart Process Checklist, 2017• How Did They Do It: Discovering New Opportunities for Aordable Housing, 2016• Development Process Eiciency: Cutting Through the Red Tape, 2015