Planning a development
Even though there are hundreds of ways to plan out a development, there are a few common professional services and studies that most developers obtain in order to make more informed decisions. These include, boundary survey, topographic survey, wetlands study, geotechnic study, and environmental assessment. In different areas or regions other reports may be common as well.
Depending on the type of project, this information is then provided to an architect, landscape architect, or civil engineer to start the design process. They will work with the developer to determine what can be developed on, above, and below the surface. These professionals also will take into consideration all of the local rules and codes into their design. A few of these include, setbacks from property lines, height limits, parking requirements, interconnectivity or roads or sidewalks with other projects, and specific uses allowed within the sites zoning.
Once preliminary designs are complete the developer will meet with the municipal planning department to review designs and see if there are any major red flags to moving forward. Getting to a point where the developer feels comfortable moving forward and spending more money with the process is referred to in the industry as a go/no go point. If there are problems the process to correct those or seek out changes to the codes that would allow for the project to move forward can take anywhere from 3 months to 3 years depending on the municipality.
The next step includes full architectural and engineering designs. Costs also play a big role in this stage of the project. Not only because a substantial amount of money is being spent in the planning process but also to make sure the designs meet the budget requirements of the project. A CPA or other qualified professional can be part of this project to create proform as and financial projects. This info will also be helpful when the developer seeks out a loan or raises funds for the project.
The next step is obtaining all permits to build the development and depending on the type of project, local, state, and federal permits may be needed. Tying into public or private infrastructure such as water, sewer, stormwater, natural gas, power, and fiber needs to be worked out. Also determine if there is any impact on adjacent roads or owners and how that gets addressed such as closing sidewalks and providing alternative access. Project timelines and sourcing materials begins and remains designs get planned.
The project is now shovel ready but no work has been done to the site. Up to this point the process typically has taken 1-2 years of planning and everyone involved is anxious for the work to start. From the first shovel hitting the ground through full completion and approvals can take 1-10 years depending on the project and seems to always take longer than expected. Most developers have grow used to putting a 10% contingency on both cost and time because so many projects for differently then planned. That being said, on larger projects, a qualified project management form can really make a difference.
After all is said and done, the question becomes, did it work, Did the project meet expectations, did it make money, did it accomplish the developers goals? If yes then it is likely that the developer will go through the whole ordeal again. They will also be likely to use the same team again if possible.