Entitlement 101 For Land Owners And Buyers

DEAL OR NO DEAL ??What Every Land Owner

Should Know About Entitlement

MJA Consulting LLC2031 E. Edgewood Drive #1

Lakeland, Florida

MJA CONSULTING LLC 2

OBJECTIVES• GIVING YOUR BUYER

EVERYTHING THEY WANT

• FINDING OUT WHAT THE SELLER IS REALLY OFFERING

• DETERMINING WHO IS ENTITLED TO WHAT


ENTITLEMENT MEANS MANY THINGS

HAVING:

The “Right” Zoning And Comprehensive Plan

Preliminary Plat Approval

Final Plat Approval

Site Plan Approval (Commercial And Multi-family)

All Your Governmental Approvals And Permits.Zoning Vs. Comprehensive Plan


WHAT THE LAND OWNER OR BUYER

NEEDS TO KNOW


DO NOT ASSUME

• That you have the correct information about the land

• That the local Planning, Zoning, Building Department has told you all you need to know about a piece of land

• That just because there is development next door that you can develop the property


WHAT YOU NEED TO KNOW

The Future Land Use Designation

The Zoning

What The Difference In Requirements

The Fema-Flood Information

The Wetlands Information

The Location Of The Site And If There Are Any Additional Controls


So Who Do You Ask?

YOUR PLANNING CONSULTANT

THE CITY/COUNTY PLANNING DEPARTMENT

THE ZONING DEPARTMENT

THE BUILDING DEPARTMENT

THE UTILITIES DEPARTMENT


What to Know

• The Difference Between

– Comprehensive Plan Designation

– Zoning

• The Legal Status Of The Property


How Does The Size Of The Project Affect Requirements

Zoning– Small Scale Amendment

– Large Scale Amendment

– Development Of Regional Impact


If the Comprehensive Plan Designation or the zoning is wrong

– Hire a planner

– Hire an engineer


Zoning Changes Will Take 2-4 Months


Comprehensive Plan Amendments

10 acres or less• 2-4 months to change

10 + acres • 6 months to a year to change• Involves the State Department of

Community Affairs (DCA)


DCA REVIEW

• Objections, Recommendations, Comment Report (ORC)– If Objections

• Must Be Met– If Not Met

• The Change Out Of Compliance• An Administrative Hearing Is Required


DUE DILIGENCE• In addition to the normal title searches and agreements

during this period you need to – check zoning– comprehensive plan– flood maps– wetlands maps– soils maps– topography – and more

• If there is an issue- then an extra long due diligence period


DUE DILIGENCE

To address issues you need experts:

Engineer to review site Certified Planner to Manage and Plan Site Surveyor Lawyer Soil Scientist Environmental Scientist Other experts


The Land Owner Or Buyer Needs To Complete:

• An Environmental 1 Site Investigation

• Survey the property

• Survey the wetlands

• Get soil and topographical information

• Market studies


• Economic Feasibility studies

• Adequacy of Schools (residential projects)

• Project feasibility

• Government support (at least staff support)

• Public hearing

• Neighborhood objections?


CLIENT DECISION

• Closing before all of the information and

actions are done?

• Extend the Due Diligence Period

• Seller does not agree

– Contract might be lost


Due Diligence Period Ends

Do not cheer until the contract closes!


HIDDEN ISSUES

• The Water Management District

• Road system-concurrency

• Schools

• Parks and recreation

• Utilities


A Potential New Wrinkle

The Home Town Democracy Act:

Modification to the State Constitution


What It Will Do?Require ALL comprehensive plan changes to be

voted on by the public. It will cost the land owner/buyer more money. It could stop growth.

The public probably would not have enough information to make a good decision on a request.

None of the planning or development organizations support this change.


What It Means To You!

• If the Home Town Democracy Act passes:

Difficult - if not impossible – CPA

• Little or no growth

• Land that does not require a change becomes

far more valuable

• NO CHANGE = NO SALE


More Wrinkles

• New Growth Management changes– School concurrency is required– Enforcement of Capital Improvements Budget– New Concurrency Rules-Pro-Rata share– No new funding for infrastructure at local level

• Power of no growth forces increases

• Lack of Funds to keep up with Infrastructure


Buying/selling a piece of land requires a great deal of accurate homework

• Understand what you have

• What are your needs; what are their needs?

• What are the Facts?

• What else do you and your client need to know?


When you find a reasonably priced and fully entitled property - BINGO!

If not, get to work!


U.S. Forecast Summary 2007-2008

• 2007 stronger 2st half– Rebound from slow residential Market– Higher rates and high energy prices sap

consumer spending

2008 recovery– Lower interest rates stimulate growth


Deal!

Entitlement 101 For Land Owners And Buyers

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