Developer Math, a Creative Science

6 Site Planning Truisms

1. The Multiplier Effect

Value Multiplier:Land = XApproved Land = 2X

Cost Multiplier:1-year approval cycle = Y2-year approval cycle = 5Y

1. Density: Addition by Subtraction

Example:8 Units/Acre:

7 Units/Acre:

6 Units/Acre:

Not approvable ever

4-year approval cycle

1-year approval cycle

3. Design: Subtraction by Addition

Appropriate investment in design =1-year approval cycle

Minimal investment in design =2-year approval cycle

Zero investment in design =4-year approval cycle

4. The Municipality Equation

Step 1: Understand the municipality’s requirements: UseDensityMaster planVariancesFiscal impactsTrafficEtc…

Step 2: Reward the municipality, reduce approval time

Step 3: Reward yourself

5. Land Use and the Go/No Go Corollary

Inherently Approvable Land Use = baseline revenue potential, minimum approval Time, minimum risk

Reasonably Approvable Land Use = profitable revenue potential, reasonable approval time, tolerable risk

Maximum Land Use = Maximum revenue potential, maximum approval time, maximum risk

6. Research and Development

The single most important part of the development process:

DUE DILLIGENCE