Tips for Developing Property

Many of you help your clients purchase property for future development.  Some of you buy and develop property yourselves.  To assist you in this process, I have developed a short list of items to keep in mind as you or your clients view various properties.  This list covers some of the less obvious, yet vitally important items you or your clients should consider.  It is by no means an exclusive list; I encourage you to use it as a basis to construct your own worksheet.

ITEMS TO CONSIDER

  1. Is this property close to a jurisdictional boundary?  For example, is the property in Thurston County’s jurisdiction, but within the path of Lacey’s future growth?  If so, developers can find themselves whip-sawed between two conflicting set of rules.  This problem gets particularly frustrating when each jurisdiction tells you the other is responsible for addressing your particular problem.  If at all possible, address this point up-front at a pre-submission meeting with your appropriate jurisdiction.
  2. Check for any zoning changes planned, but not yet implemented.  I have had at least one client who was forced to move at break-neck pace to vest their proposed use of a property before a zoning change occurred.  Sometimes these changes are subtle, and sometimes they are not well advertised, or well marked on a zoning map.  Pay close attention, and ask lots of questions to the appropriate planning department.
  3.  Has the local governmental jurisdiction proposed any construction projects affecting your property which are schedule, but not begun?  Try and avoid being the happy owner of a nice piece of developable property one day, and then watching as an army of bulldozers arrive next door the following day.  Check with the applicable public works department to see about sewer, traffic, lighting, or other public projects that might affect people trying to access your property.  Often these projects are scheduled months or years in advance, and there is no outward sign on the affected property to warn you of the future disruption.
  4. Will the local governmental jurisdiction assess fees to property owners who do certain kinds of developments in an area?  For example, say you want to build a project that will generate a set amount of traffic per day.  You may find yourself being assessed for traffic improvements that are located a mile or more away.  Often, the relationship between your project and the distant traffic improvement is apparent only to a traffic engineer.  Once again, ask careful questions at a pre-submission conference.  Confirm your understanding in writing with the appropriate persons.
  5. Use experts familiar with your area.  Some experts are known statewide for their skill and experience in building, engineering, or architecture.  While that is good, be aware that local firms may be able to provide similar quality and they know the ins and outs of the local jurisdictional requirements.  I have seen a big-name expert make costly mistakes simply because they were unaware of the local rules.  You may even consider partnering your well-known expert with a local person, particularly in the planning stage, to help cover this base.

The point of this list is simply to spark you and your clients to think carefully, ask lots of questions, and then to take the right measures to limit those unhappy surprises that can damage your project.

Published July 1997

This article contains information of general interest, and is not intended to be, nor should it be relied upon as a substitute for specific legal advice.

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