Professional Documents
Culture Documents
Introduction
Land Development is a complex and highly coordinated series of activities that requires and
appreciation of the needs and desires of the individuals, the community and the land developer.
The overall scope and unique characteristics of the land development process must be fully
understood, since attempts to short-circuit the process usually result in increased costs and an
extended project duration.
Defining Land Development Activities
Land development usually embodies the conversion of property into a finished site that possesses
the features capable of supporting a desired activity. The three general and descriptive categories
of land development are: 1) industrial, 2) commercial, and 3) residential.
Industrial development focuses on providing suitable property for activities associated with the
processing of materials and the production of consumer goods. Typically, this land is located in a
parcel that is specifically set aside for industrial development, such as an industrial park. The
location of industrial development is dictated by social and political factors, affordable property, and
the availability of labor and material. Other factors which contribute to successful industrial
development are: climate, transportation access, available utilities (water, sewer, etc.),
environmental compatibility, and future expansion potential. Today, most industrial developments
place an emphasis on aesthetics and the preservation of open space while trying to minimize noise,
odor, and other objectionable by-products of industry.
Commercial development concerns the interchange of goods or commodities. This type of
development includes, office, retail, wholesale, financial, and other service activities. The success
of commercial development is dependent on the purchasing power of the supporting population
within an anticipated trade area. Commercial development can take place in a downtown central
business district, outlying shopping districts (shopping malls), and commercially zoned residential
neighborhoods.
Residential development is concerned with providing safe, serviceable, and affordable residential
structures and associated facilities. As a percentage of total land use, residential development is
the predominant type of development activity and includes, single-family homes, multi-family
homes, and manufactured homes. A single family dwellings one housing unit that is constructed
on a single building lot. A multi-family dwelling consists of a several attached units, such as, twin
homes, townhouses, and apartment complexes. Manufactured housing is a factory-built,
completely finished unit that is that are moved to a site, rather than constructed on site.
Since the overall land development process is basically the same for all three categories, the focus
of this text is on residential development since it encompasses the largest percentage of land use
and often requires more detailed design and in-depth analysis.
Figure 1.1 Percentage Cost Breakdown for a Single-Family Home (NAHB 1989)
The costs associated with the finished lot, however, have increased almost threefold and include:
the purchase price of the parcel of land; the engineering costs, permitting fees, tie-in charges, and
site construction (clearing, grading, road & utility installations, etc.). Since finished lot costs have
accounted for an increasing percentage of the selling price of a home, methods must be developed
which can decrease this cost and ultimately provide more affordable housing.
In recent years, several factors have had an increasing influence on the current practice of
residential land development, including:
Increased ecological and environmental awareness.
Social acceptance of land development activities.
Complex permitting process.
Multiple plan reviews by numerous regulatory agencies.
The intent of each of the above factors is to improve the quality and character of land development
activities. Due to the complexity of the land development process, these factors may actually
decrease the efficiency and prolong the entire process. This does not imply that these factors act
as roadblocks to development. On the contrary, social, environmental, and regulatory issues are
essential components of a well-planned development.
The land development industry must be able to respond to these issues and incorporate them into
the overall process. Due to the complexity and scope of these issues, incremental schemes of
depicting the process no longer apply. Due to advances in computer technologies and current
information exchange capabilities, there exists a need to reexamine the land development process,
by identifying the key elements and specific individuals that are involved in the process.
A Market Study determines the type of buyers to capture; understanding their buying power,
lifestyle characteristics, and product demands; and matching housing and development types to
those characteristics. Site Selection and Analysis determine the actual and desirable site
characteristics and conditions. It involves determining and analyzing physical, legal and political,
and off-site characteristics of a particular parcel of land. Project Design matches the marketing
information and buyer preferences with the site characteristics to produce a plan that best satisfies
these requirements. Site Engineering deals with the physical handling of the topography and
installing the infrastructure to support the land development plan. The management of Project
Costs involves both the soft costs (fees, marketing, and investigating site conditions) and the hard
costs (labor, equipment, and material) for the project. These combine with the project schedule to
determine the time and cost controls and constraints. Financial Feasibility collects of this
information to project an accurate project cash flow which ultimately leads to determining the profit
from the projected sales forecasts and the project costs. Financial Feasibility dictates whether the
site must be redesigned, reengineered, or cost adjusted.
Successful land development relies on the expertise of a variety of professionals and consultants
who collectively form the development team. The developer must assemble the development
team in order to provide the specialized knowledge required for creating a viable project.
Land Developer
Since land development is a profit oriented business with inherent risks, the land developer is
usually considered the team leader, the final arbiter, and the ultimate decision maker. The timing
of decisions about when to assemble the team or when to add on a team member are critical.
Environmental and legal issues often require specialized expertise. Since an individual land
developer cannot possess all of the functional expertise involved in land development, the
knowledge and experience of a development team are required. The land developer must be able
to identify and coordinate the disciplines involved. The land developer is an investor who commits
equity, equipment, labor force, and management talent to the conversion of land from one use to
another. The land developer must be familiar with costs, financial analysis, and construction
procedures. Unlike other careers, there is no strict educational curriculum for land developers. The
land developer is an entrepreneur, a risk bearer, and above all, a coordinator. The land developer's
social responsibility is great because of the tremendous value of the land and because society must
ultimately endure the final product for many years. The bottom line is not just economics, but
whether or not the project satisfactorily meets the needs and desires of the residents and society
as a whole.
Engineer / Surveyor
An engineer / surveyor's responsibilities can include: testing the soil; establishing the precise
location of streets and building lines; locating property (lot) boundaries (which in most states
requires a certified professional surveyor); and furnishing topographic maps, detailed data, and the
working drawings needed to establish grades, earthworks, street improvements, storm water
drainage systems, sanitary sewers, water supply mains, and other public utilities. The engineer
must also specify the types of materials that will be used (the specifications) and may also be asked
to develop cost estimates and project schedules. The engineer should know facility costs and is
often responsible for cost estimates. The engineer's decisions about when to bring in specialized
assistance are often crucial to the project. For example, the assistance of a hydrologist, soil
geologist, and environmental biologist may be required if the existence of wetlands is a possibility
on a particular site.
Land Planner
A land planner should be familiar with local zoning policies and municipal regulations. A competent
land planner not only creates better places for people to live, but creates value for the developer.
A land planner is typically a generalist with strong supporting skills. Land planning involves matters
of site determination, evaluation, allocation, and the selection of locations for specific uses of land.
Included are such issues as topography, access and circulation, bicycle and pedestrian traffic, open
spaces, and areas for residential, commercial, and industrial uses. All of these must be coordinated
to produce a unified development which can be built economically, operated efficiently, and properly
maintained. Land planning is really product planning - matching the land use to the market in a
profitable way. The land planner also has primary responsibility for relating the proposed project
to the overall comprehensive plan of the municipality.
Financier
Almost all land developers rely, to a large degree, on an abundant supply of borrowed funds.
Financing is one element in the land development process which is subject to a great amount of
fluctuation. The availability of adequate financing determines whether a project is feasible and
ultimately profitable. A land developer should shop thoroughly and be prepared to wait, if possible,
until better terms can be secured. A knowledge of money sources is indispensable to the
developer, and is perhaps as important as a knowledge of construction techniques. In all cases,
the lender, whether assuming the role of owner, investor, or financial institution, must first be
convinced about the feasibility of the project. It is imperative that the developer either understand
the techniques of financing or retain an expert who does.
General Contractor
A land development firm may undertake the entire venture in certain types of development
activities, which include the buying, building, and marketing of the project. In such cases the
developer usually possesses in-house construction capabilities, thus, assuming the role as
contractor. In other ventures the developer may acquire the services of a general contractor, or
may subcontract different phases of construction.
The general contractor is typically responsible for scheduling, estimating, construction, quality
control, and safety of the construction phase of the project. The general contractor is responsible
for contacting and scheduling the subcontractors. The general contractor must also be skilled in
organizing and supervising materials, equipment, and labor.
Architect / Landscape Architect
Architecture involves the planning, design, and construction of buildings or structures, while
landscape architecture involves the same processes with a focus on the exterior of the dwelling or
site. Architects and landscape architects must design structures that are suitably adapted to the
topography and character of each lot. Each lot and structure should fit well into the overall
conceptual plan of the land developer and adjacent properties. Architects and landscape architects
can provide additional services, such as site planning; building material and planting selection;
exterior color, styling, and coordination; interior design; professional supervision; and
merchandising suggestions related to display and advertising. These extra services can pay for
themselves by helping to produce a superior development and housing with increased value.
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Market Researcher
Market research can be handled in-house or by an outside consultant, depending on the size and
resources of the development company. Market research and analysis provides a framework for
the land developer in the use of market data and trends which can reduce the inherent risks
involved in land development. Opportunities to increase market capture can be maximized when
a project is designed for a specific market. Marketing involves the research and analysis of: 1) the
housing types on the market, 2) the resale market, 3) the competition, 4) the economic forces, and
5) the demographics of a particular area. By conducting market research the developer can better
design a project to respond to market opportunities.
Realtor
A realtor is a licensed professional who is engaged in the real estate business. A reliable realtor
is in constant contact with the target market group, namely the prospective home buyer. The realtor
adds insight to current market demands and acts as an agent to the land developer in the sale of
the finished homes.
Auxiliary Advisers
Auxiliary advisers are often required in order to assist the primary members of the development
team in specific areas of expertise. Auxiliary advisers may include: attorneys, hydrologists,
geologists, soil scientists, environmental experts. The size and scope of the project often dictate
the need for additional project support from these specialty areas.
Due to the increasingly complex nature of the residential land development process, an attorney
plays a key advisory role, and is often considered as part of the primary development team. An
attorney who is familiar with the land development process can save the land developer a great
deal of money, often many times the cost of the legal fees of the attorney. The attorney should be
responsible for preparing and reviewing the legal documentation required for a project including:
project financing; consultant services; land purchase; lease and sale agreements (especially with
the subcontractors and home builders); contracts; zoning changes; and the drafting of covenants
specifically tailored to the development or subdivision.
Other Project Participants
Although not inherently members of the development team, other individuals and groups play a
critical role in the formation, review, and approval processes involved with a residential land
development plan. These participants include: 1) the municipal engineer, 2) regulatory officials,
and 3) plan or design reviewers. The municipal, or township, engineer is usually the first person
that the land developer contacts to discuss the conceptual plan. The municipal engineer can
provide valuable information regarding regulatory land use restrictions or zoning requirements for
a particular site. The municipal engineer can also act as a go-between or conduit for transmitting
design information from the land developer to the regulatory officials.
Regulatory officials (either elected or appointed) are individuals who represent the local, county,
state, or federal agencies who are responsible for plan and project review. Since residential land
development is primarily a local issue, the regulatory officials most involved in the process include
members of the local zoning board, planning board, and board of supervisors.
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Additional reviews, for the design and engineering calculations, are often required. These are
typically performed by an outside engineering firm that was not involved in the original design. The
cost associated with this part of the review process can be substantial, thus further increasing the
cost of the entire land development process.
Summary of the Development Team Approach
The input from the development team is critical to the decision making process that is required
during the residential land development process. Members of the development team are
responsible for creating, collecting, processing, and interpreting information. The specific types of
information required for the preliminary project planning phase is presented in the following
sections. This information is required for developing a model of the overall land development
process and a specific preliminary project planning model.
facilities maintenance. Eventually all systems need maintenance, repair, or replacement. For
example, roads will need to be resurfaced, sewer and storm water pipes and manholes will need
cleaning, and parks and playgrounds will need maintenance. Facilities management is the final
follow-up activity of the overall residential land development process and is the responsibility of the
municipality, an individual utility, and/or the homeowners association.
Table 1.1 lists the key activities of each phase of the process. These activities are combined to
form a model of the land development process which is illustrated in Figure 1.6.
Table 1.1 The Land Development Process
Phase I: Preliminary Project Planning
Owner (or Society) Need Statement
General Plan of the Land Developer
Formulate the Development Team
Market Research
Feasibility Study
Site Selection
Site Characteristics
Regulatory Conditions
Off-Site Factors
Conceptual Plan
Phase II: Project Design and Review
Site Analysis and Basic Engineering Calculations
Initial Permitting and Application Process
Preliminary Design
Public Hearings
Revisions to the Preliminary Design
Preliminary Review and Approvals
Additional Permitting and Applications
Detailed Design
Formal Review and Approvals
Final Design (engineering calculations & drawing requirements)
Final Review and Approvals
Phase III: Construction and Delivery
Design Drawings (contracts, specs., cost estimates, and schedules)
Procurement (labor, equipment, and material)
Phased Project Construction
Inspection and Testing
Project Approvals and Sign-Off
As-Built Drawings
Dedication of the Project to Owner (Municipality)
Project Initiation (Start-Up)
Facilities Management (Upgrade and Maintenance)
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Within the figure, the rectangular boxes represent milestone events. These typically represent the
end product of an internal process which involves a series of critical decisions that are required
before proceeding to the next step. The diamond shaped boxes represent major regulatory
decisions. Rounded boxes represent a subprocess which is a major contributor to the milestone
events in the rectangular boxes. Ovals represent specific project output, such as drawings,
contracts, specifications, and as-built drawings.
The basic purpose of the model is to define and schematically illustrate the residential land
development process. The development of the model is the key to understanding the process and
is a fundamental component of a quantitative analysis approach that is applied to Phase I Preliminary Project Planning. The purpose is to formulate a subsequent model of that subprocess
which incorporates various components of that phase development with the development team
approach to project management.
Feasibility Study
A feasibility study is a fundamental component of the site selection process. A feasibility study is
typically required for project financing and loan approvals and for the planning, design, and
construction budgets of a project. A feasibility study determines the cost of various components
of the conceptual plan and is based on local cost information, either current or projected. The
feasibility study contains factors which are related to the development costs associated with the
land, engineering and design, construction, and financial and legal aspects.
Site Selection
The process of site selection and analysis is an important aspect of the land development process
and vital to the success of the project. Site selection and analysis is a separate topic that will be
covered in detail in Chapter 4.
Site Characteristics
Site characteristics include: climate, geotechnical conditions, topography, site features, hazards,
previous site improvements, and site history.
Climate: Each site has a characteristic climate which is typical of a specific geographic region.
Climate can influence the orientation of structures, heating and air-conditioning requirements,
building material selection, and landscape plantings. An important consideration in recent years
is the attention given to solar energy potential. Passive solar heating during winter months is
an important part of home design and building orientation.
Geotechnical Conditions: Geotechnical conditions refer to the geologic, hydrologic, and soil
conditions of a particular site. The depth to the water table, percolation rates, depth to bedrock,
sinkhole activity, and radon potential are important geotechnical considerations. Geotechnical
conditions affect all types of underground structures including: drainage systems, roadway
beds, basements, foundations, and utility installations. Geotechnical information may be
obtained from the U.S. Geologic Survey and the U.S. Soil Conservation Service.
Topography: Topography is the slope gradient of a site expressed as the relationship of vertical
feet of elevation over horizontal feet of distance. Topography influences the locations of
buildings, roads, pathways, utility placement, and drainage systems. Topographical maps from
a U.S. Geological Survey can be used to identify areas of concern on a particular site. A
topological map of the site and the surrounding area are often necessary to determine the
drainage patterns and the extent of the watershed for the storm water management system.
Site Features: The physical features of the site include both the vegetation and wildlife. These
can have either positive or negative impacts. A vegetation analysis includes the location and
description of trees, shrubs, grasses, and wetland vegetation. Wildlife and their associated
habitats should be considered simultaneously. Special attention must be paid to rare or
endangered vegetation or wildlife.
Hazards: Hazards that may be encountered on a site, include: abandoned vehicles or
equipment; previous construction debris and cleared vegetation; chemical or hazardous
wastes; underground storage tanks; and illegal dump sites.
Previous Site Improvements: For certain properties, site improvements are present from former
site uses or partially completed previous development activities. These improvements can
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include: cleared right-of-ways, partially constructed roads, standing structures, and utility
installations.
Site History: During the investigation of the former uses of a site, historical structures or areas
of archaeological significance could be discovered. Some local jurisdictions may require a
historic preservation survey. Federal and state regulations may require that an archaeological
survey be conducted.
Regulatory Conditions
Regulatory Conditions include legal factors and political climate. Legal factors include the laws,
codes, and ordinances at the local, state, and federal levels of government which regulate site
development. During the site selection process, the regulations and guidelines of critical
importance are: zoning, community or regional master plans, and subdivision ordinances. The
political climate is focused on the attitude of the community toward development. Community
acceptance is critical for the approval, design, and construction schedule of a land development
project. The development team must formulate strategies that can effectively deal with community
attitudes in order to achieve a favorable consensus among groups that could potentially object to
the project.
Off-Site Factors
Off-site factors are dependent on the exact location of a site and include adjacent land uses,
location and availability of utilities, public transportation, schools, community services, and the
condition and existence of access roads. Off-site factors can be viewed as either negative or
positive. The existence of negative off-site factors tend to influence development more than the
absence of positive off-site factors.
Conceptual Plan of the Land Developer
The conceptual plan is the single most important influence on all subsequent planning, design, and
construction decisions for a given project. The conceptual plan includes aspects related to: density,
access, regulatory constraints, utilities, open space, housing types and styles, landscaping, and
amenities. The level of detail for a conceptual plan is dependent on the requirements of the land
developer and the development team.
The following section concerns the development of a specific model for the preliminary project
planning phase of the land development process. This involves incorporating the concept of the
development team into the preliminary project planning phase of the land development model.
The Preliminary Project Planning Model
When the development team approach and the informational requirements, as previously identified,
are integrated into the original land development model, a second model is created which is directly
related to preliminary project planning. The purpose of this model is to present a detailed
perspective of the parties involved and the information required during the preliminary project
planning phase. This model provides the necessary background for the end product of this phase,
which is the conceptual plan. It also builds a foundation for formulating a comprehensive plan for
development. Figure 1.7 illustrates the preliminary project planning model and incorporates the
development team concept and the informational requirements that are inherently involved in the
decision making process for formulating a conceptual plan.
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Summary
Responsible land planning is a problem solving and decision making process. Knowledge and
information gathered from a variety of resources contribute to the process. Collectively these
resources form the development team. Since an individual developer cannot possess all of the
functional expertise involved in land development, he or she must rely on the knowledge and
experience of the development team.
Since land development is profit oriented with inherent risks, the developer is considered the team
leader, the final arbiter, and ultimate decision maker. The timing of decisions about when to
assemble the team or when to add on a team member are important. Environmental and legal
issues, for example, can often adversely impact the land development process.
A residential land development model has been formulated to graphically illustrate the overall
process which includes preliminary project planning, project design and review, and project
construction and delivery. A preliminary project planning model has been developed to assist in
identifying the characteristics, factors, and conditions that are involved in conceptual planning.
The following chapter is focused specifically on market research, which includes the collection and
organization of information required for developing a market research report.
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