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Fundamental Skills for Real Estate Development Professionals II. Con't Project Entitlement


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2010 ULI Fall Meeting Presentation
October 13, 2010
2:45 pm to 4:00 pm

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Fundamental Skills for Real Estate Development Professionals II. Con't Project Entitlement

  1. 1. Fundamental Skills for Real Estate Development Professionals II (cont'd) Project Entitlement Wednesday, October 13 2:45 p.m. – 4:00 p.m. Presented by: Mitchel Hutchcraft Vice President, Real Estate King Ranch and Consolidated Citrus, LP Fort Myers, FL
  2. 2. Fundamental Skills for Real Estate Development Professionals Project Entitlement: Objectives: • What are Entitlements • Why you should care about Entitlements • The Process: The “Who” and the “How” • Tips and Techniques: Sustainability to Civic Engagement
  3. 3. Entitlements Entitlements are a legal method (right) of obtaining approvals from a governmental entity to develop a property for a certain use, intensity, building type or building placement. Entitlements can be a major determinant in the ultimate use, viability, and value of your property. Form of: Land Use Approvals, Zoning, Development Orders and Permits
  4. 4. “…issued writ commanding the City to revoke all building permits and the certificate of occupancy…” Why Should I Care About Entitlements? “Under the ordinance, the City banned the development of “discount superstores,” which it defined as discount stores that exceed 100,000 square feet.” “The lawsuit against the US Fish and Wildlife Service, the corps and the Interior Department asks a judge to revoke a 2006 permit for Mirasol…”
  5. 5. Why Should I Care About Entitlements? “Despite governmental approval, the 136 occupied apartments violated the county’s comprehensive plan….” “…the court ruled that the law required demolition….”
  6. 6. Bad “Entitlements” Day:
  7. 7. Comprehensive Plan/ General Plan Zoning Land Dev. Regs. Permits Layers of Regulation Entitlement Process Vested Rights Property Value Comprehensive Plan/ General Plan Zoning Land Dev. Regs. Permits
  8. 8. Jurisdictional Interaction: 8 • Tiered Entitlement System – More detailed permits must be consistent with more general permits • Interactivity – Each level can prevent a project from going forward – Not all reviewing agencies share the same perspective on approval criteria – resulting in a disjointed and non-linear process • Vesting - Point at which certain approvals can no longer be taken away or modified
  9. 9. Permitting Agencies: 9 Federal Commenting Agencies • US Fish and Wildlife (FWS) • Environmental Protection Agency (EPA) • Army Corps of Engineering (ACOE) • Housing and Urban Development (HUD) • Department of Energy (DOE) State & Regional Commenting Agencies • Local Government (Planning, Zoning, Building) • Regional or State Planning Agencies • Department of Transportation (DOT) • Dept. of Environmental Protection (DEP/DNR) • Department of Agriculture or Forestry • Fish and Wildlife Commission (FFWCC or FWC) • Water Management District
  11. 11. Entitlements – Comprehensive Plan (General Plan) • Comprehensive Plan Amendments – Statement of Community Vision (Values) – Blueprint for future (long range) growth – Protects natural resources – Focuses infrastructure investment – Usually includes both map and text • Key elements – General land use categories – Goals and objectives Comprehensive Plan/ General Plan Zoning Land Dev. Regs. Permits
  12. 12. Entitlements – Future Land Use Map
  13. 13. Entitlements – Land Development Codes • Zoning (Right-to-Use) – Specific use, density, intensity, height, setbacks consistent with Comprehensive Plan Comprehensive Plan/ General Plan Zoning Land Dev. Regs. Permits (COMPREHENSIVE PLAN)
  14. 14. Entitlements – Conventional Zoning • Right to the use • Right to the density • Government may still regulate “how” the use is built
  15. 15. Entitlements – Planned Developments • Planned Development Approvals – More flexible, but usually requires MCP to tie down details – Negotiated site-specific zoning category – Creates more certainty for local government and public – Creates more flexibility for developer
  16. 16. Comprehensive Plan/ General Plan Zoning Land Dev. Regs. Permits Entitlements – Land Development Codes • Land Development Codes & Regulations – Detailed regulations implementing the Comprehensive Plan – Typically include height, setback and lot dimension regulations, etc. – Establish rules for Construction permits
  17. 17. Entitlements – Plats and Development Orders • Subdivision / Plat Approvals – Requirements of dividing land – Impact fees, exactions and other government requirements are imposed here • Development Orders & Engineering Approvals – Final plans which detail civil engineering or related requirements – Necessary to build horizontal improvements Comprehensive Plan/ General Plan Zoning Land Dev. Regs. Permits
  18. 18. Entitlements – Plats and Development Orders:
  19. 19. Entitlements – Permitting (Environmental): Wetlands/Unique and Sensitive Lands • Determine if property is “Jurisdictional” • Must demonstrate avoidance and minimization of impacts – the mitigation Endangered Species • State or Federally regulated species (Endangered Species Act) • Impacts and Mitigation (Take Permits) Water Quality • TMDLs & Numeric Nutrient Standards • Must demonstrate minimization of adverse impacts Comprehensive Plan/ General Plan Zoning Land Dev. Regs. Permits
  20. 20. Entitlements – State and Federal Environmental Permitting: • Federal Wetland Jurisdictional Determination – Wetlands – complex – Uplands and other types – not as complex • Dredge and Fill Permit • Federal Commenting Agencies – Often more onerous than the primary agency
  21. 21. State and Federal Environmental Permitting: • General (Nationwide) ERP/404 • Clean Water Act • Permits designed for predetermined impact • Usually easier to obtain due to their standardized nature • Less than .5 acres • Individual ERP • Permits that are unique and require specialized evaluation • Require Public Notice
  22. 22. Understanding Entitlement Negotiation – What are the tools? • Understand Community Values: • Design - Density and Appearance – Basic changes to density and intensity need to be carefully evaluated – Good design components may convince local governments to allow higher density/intensity • Exactions/Impact Fees – Need to negotiate and understand • Strategic and Tactical Initiatives – Utilizing “appropriate” tools and programs to enhance the acceptance of your project in your local community How can you solve other people’s problems?
  23. 23. Strategic and Tactical Initiatives – Community Values: Decision Drivers: • Density/Context • Environment • Economic Development • Retirees – Families – or Worker Bees • Community Aesthetic • Rental versus Condo • Open Space • Community Icons • Community Involvement
  24. 24. Strategic Initiatives - Sustainability: “Sustainable development is a pattern of resource use that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for generations to come.…...” – The Brundtland Commission • Environmental Sustainability • Carrying Capacity • Protection of Natural Systems • Material Selection • Efficiency • Economic Sustainability • Sociopolitical Sustainability
  25. 25. Strategic Initiatives - Smart Growth: “Smart Growth generally refers to development that supports the economy, the community, and public health.” – EPA Definition • Compact Development • Create Strong Local and Regional Economies • Concentrated Infrastructure and Public Services • Conservation of Resources • Mix of Uses – Integrated Communities • Walkable Neighborhoods – Transportation Choices • Integrated Open Space, Recreation and Water Management • Large areas reserved for farm and forest
  26. 26. Strategic Initiatives - Civic Engagement: • Information Harvesting (WIIFM) • Value of Establishing a Brand • Identify Potential Opposition • Identify Community Advocates • Intentional Communication • Internet Site • Small Group Meetings • Presentations to Civic Groups • One on One with Opposition • Accept Feedback • Incorporate Tactical and Strategic Refinements
  27. 27. Case Studies – The Good, The Bad and the Ugly
  28. 28. Case Study – Sunrise Grove – The Issues: • Significant issues with growth boundary, community preference, environment, infrastructure • Subject County has history of stiff “anti- growth” opposition • Proposing over 6 million SF of new uses • Community opposes residential, but was looking for economic development • Entitlement Strategy was very different from typical (new team, early outreach, detailed application) • Goal was to demonstrate economic benefit, opportunities for environmental enhancement, and a viable way to retain long-term agriculture.
  29. 29. Sunrise Groves – Collaborative Approach • Started outreach 3 months before submittal • Conducted interviews with key community leaders • Conducted dozens of meetings with HOA, Chambers, EDC and community groups. • Met in advance with permitting agencies and incorporated their feedback. • Conducted on-site interviews with Media and offered tours of property. • Met with adjacent governments, developers and neighborhoods. • Reached out to recognized “opposition” • Created Web Site to maintain communication with Community. • Joined Chamber(s)
  30. 30. Case Study – Sunrise Groves Media Coverage
  31. 31. Sunrise Grove – The Process Submitted initial findings & recommendations – September 2009 Received input Repeated this process several times over the next year until adequate analysis was conducted and county support achieved Revised Plan
  32. 32. Sunrise Groves – Results • Incorporated Community Vision – Eliminated Residential – Clustered Development to retain agriculture and allow for environmental enhancement – Identified flow way corridors – Incorporated Public Recreation Opportunities – Addressed Design Guidelines along adjacent scenic road – Focused on adjacent approved and existing uses. • Utilities – provided from adjacent City • New Road - provides additional regional connectivity
  33. 33. Entitlements – Take Away Value 1. Understand Time and Cost involved. 2. Develop and Implement a Sound Entitlement Strategy 3. Proactively think about Interactivity between permitting entities 4. Understand “Community Values” 5. Frame Justification in a Larger Local/Regional Planning Context 6. Think Long Term About the Project/Property and Long Term About Setting Precedent in the Entitlement Process
  34. 34. Questions or Comments: Mitch Hutchcraft King Ranch/Consolidated Citrus Limited Partnership October 13, 2010 4210 Metro Parkway Suite 250 Fort Myers, FL 33916 (239) 405-1694