land use entitlement real estate 619 urban land development doug rupe consolidated holdings, inc

Land Use EntitlementLand Use Entitlement

Real Estate 619Urban Land Development

Doug RupeConsolidated Holdings, Inc.

ExperienceExperience

First property opened October 2003As of 1/1/09 Open: 129 Under Construction: 44

Development ComponentsDevelopment Components

1. The Idea

2. Site Acquisition and Control

3. Due Diligence/Entitlement

4. Closing on Property

5. Improvements – Construction

6. Project Completion

……this evening we are focusing on #3.this evening we are focusing on #3.

• In Land Development…………– the Entitlement Process is “the legal method of

obtaining approvals for the right to develop property for a desired use.”

– Includes zoning, local, state, federal approvals and building permits, support from private groups such as neighborhoods.

– Signage approval

EntitlementEntitlementDefinitionDefinition

How do we obtain approvals?How do we obtain approvals?

• Start with the facts, AND THEN

• Communicate!!– With all stakeholders

• City Leaders – extremely important!!

• Neighbors

• Service providers

• Investors/Lenders

• Corporate executives

• Work closely with the municipality to understand the rules and the process

• Build support. Meet personally with:– Staff

• Planning, Building, Commissioners, Mayor

– Neighborhood• Advisory committee and Associations

• Rely on your consultants• Design accordingly


• This was a REAL email………..

“What I need is a list if specific unknown problems we will encounter.”


So, how do we get the facts?So, how do we get the facts?

Get the facts first!Get the facts first!

Site In

vestigati

on

Report

• Work closely with your consultants– Site design issues – we heard about these last week

• Grading and Drainage, environmental, geotechnical

• Public Hearings – DAB, Planning, City Council– Zoning – If use is not permitted by right, can you get

support for approval?– Will surrounding uses support you?

• Commercial adjacent to residential is tough

• You want to know this before spending too much money

Development Components are not Development Components are not linear, but intertwined…………..linear, but intertwined…………..

What happens when you What happens when you don’t have reliable facts?don’t have reliable facts?

• Title issues– Use restrictions?– Outstanding taxes?

• Building Department review and response.

• Proof of Approvals needed to close the loan.

Development Components are not Development Components are not linear, but intertwined…………..linear, but intertwined…………..

Suddenly, a heated

exchange took place between the King and

the moat contractor.

You

Contractor

Consultant

A & E team

Examples: Tales from the TrenchesExamples: Tales from the Trenches

• Lincoln, Nebraska

• Found the perfect site– Located on I-80 at North 27th – Zoned for hotel use and platted– But too expensive– Owner was an experienced developer, willing

to accommodate us

Site is too largeSite is too largeBefore

Went from 108,464 s.f. to

80,956 s.f.

Savings of $96,278

Just right!Just right!After

Next issueNext issueLincoln: Siding vs. brickLincoln: Siding vs. brick

• Broker said, “must have all brick”

• Site tour of adjacent and nearby improvements suggested, “must have all brick”

• Review of Restrictive Covenants showed otherwise

Lincoln: Siding vs. BrickLincoln: Siding vs. Brick

Seek answers that satisfy the Seek answers that satisfy the owners and the city owners and the city

Lincoln: Siding vs. BrickLincoln: Siding vs. Brick

Lincoln, NELincoln, NE

Kansas City, MissouriKansas City, Missouri

• Started looking for site in late 2003• Found site in February 2004• Site was a “leftover”• Zoned Agriculture• Located between commercial and multi-

family residential• Needed to be subdivided• Immediately met with City staff

Kansas CityKansas City

Site


Kansas CityKansas CitySite Plan #1

Kansas CityKansas CitySite Plan #2


Site Plan

Version 3.0

Gulfport, MississippiGulfport, Mississippi

• Use was approved by right

• Found great site on main drag - Highway 49

• 5 minutes north of the beach

• Vacated street through property

• Relocation of utilities not completed

• Discovery of Wetlands

• “The presence of suspect wetland areas.”• “Saturated soils were observed.”• “The subject property is located within the

floodplain of Turkey Creek.”• “Wetlands appear to be an environmental

concern in connection with the subject property.”

Gulfport, MississippiGulfport, MississippiWetlands Assessment stated:


http://w

ww.fema.g

ov

• Site placed under contract 7/7/04

• Due to uncertainty, progress was delayed

• Phase I was completed 1/24/05– Wetlands cited

• Wetlands Delineation completed 2/15/05

• Wetlands Report submitted to USACE 3/15/05

• Jurisdictional determination received 5/10/05


• USACE report posted 6/1/05. Public comments due 7/1/05

• Mississippi Dept. of Env. Quality approved Stormwater Pollution Prevention Plan (SWPPP) on 7/18/05

• Mississippi Dept. of Marine Resources (MDMR) meeting scheduled for 8/29/05.


August 29, 2005August 29, 2005

• Hurricane Katrina made landfall. Be flexible, as things often change

• Took three weeks before contact was re-established

• MDMR meeting re-scheduled for 10/17/05

• USACE permit received 12/13/05

• Land closing occurred 12/21/05

• Notice to proceed issued 2/08/06

• Certificate of Occupancy received 2/7/07


Other things to consider…Other things to consider…

• Public opposition• Threatened species

– Pygmy Owl, Saguaro cactus, groundhogs

• Archaeology• FAA• Historic Preservation• Contamination

Work with the expertsWork with the experts

• Research

• Site Selection

• Legal

• Architectural

• Civil

• Environmental and Soils

Questions?Questions?

“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.”

Winston Churchill

land use entitlement real estate 619 urban land development doug rupe consolidated holdings, inc

Documents

brick slide

ne slide

experience slide

e team slide

site acquisition

perfect site

city lincoln

brick site tour of adjacent