Chapter 3

Land Development

Subdivision: the legal and physical steps a developer must take to convert raw land into developed land.

-Regulates/controls/forecasts growth

-Controls appearances

-Controls the mix of land uses

-Provides for adequate infrastructure (utilities, roads, drainage, etc)

Subdivision can incorporate everything from large, mixed use mega-plans like Las Colinas to the creation of pad-sites in front of a Wal-Mart

Three stages of subdivision as mentioned in the text:

-Raw land: Uncle Billy’s 10,000 acre ranch

-Semi-developed land: Large parcels to be sold to specialty developers like residential and commercial

-Developed land: Individual lots and platted commercial sites.

Note: Book on page 59

Hindrances to development in the subdivision regulations from the developer’s point of view

-Burden of infrastructure

-Drainage concerns

-Community activism

Must remember that logic and perceived entitlements such as zoning or land use may not always prevail.

“Squeaky wheel gets the grease.”

Where to start?

-Look for land that already has the necessary zoning

-Look for land that is already served by public utilities

-Look for land that is free and has a million dollars of gold buried somewhere on it

Obtaining zoning and waiting for utilities is costly, especially if the developer has a significant burden of the financial responsibility on these items.

Where to begin after you start…

-Desirable area?

-Who’s buying?

-What do lenders want to lend on? What won’t they lend on?

-Site’s physical attributes? Potential natural amenities?

-Who else is sniffing around?

-How are the schools?

-What terms are the other guys offering your potential customers?

The benefits of macro-data with residential lot development analysis.

-Interest rates

-Projected housing starts

-Historical absorption rates

-Employment growth

-Population growth

All of these are useful data in assessing the demand. How much of that demand can you capture?

Site selection for beginning developers:

-Choose a manageable geographic area

-Set time limits on the investigation

-Don’t depend entirely on brokers… DRIVE AROUND!!!!

Site evaluation

-Consultants

-Walk the land

-Drainage

-Cable? Telephone? Gas? Electric?

-Who could be against it?

-What else?????????

ASK QUESTIONS!!!!

Zoning and Platting

-AG Zoning: AGriculture, this may be kind of a “holding area”

-Platting and changing zoning potentially will require a public hearing

-PD’s: “Planned Developments”

Four major regulatory issues according to the text:

-Vesting of development rights

-Growth controls

-Environmental issues

-Traffic

Avoid the “uh-ohs”

-City Staff

-Communities (HOA’s)

-Talk and ask questions EARLY