Overview

The land entitlement process involves obtaining the necessary legal approvals to develop land
for specific commercial use. It is a key step in real estate development, ensuring that any
changes to land use or appearance follow local regulations.

Importance of Land Entitlements

  • Legal Compliance: This is essential for changing land use, particularly for commercial
    development. It ensures that the project adheres to local laws and regulations.
  • Project Viability: The entitlement process determines if a land deal can proceed and
    allows construction to start. It is crucial for the success of commercial real estate
    projects.

Steps in the Entitlement Process

  • Pre-Application Meeting: This is an initial discussion with city planners to get feedback.
    It involves local officials like the fire marshal and utility companies to identify any
    potential issues early.
  • Feasibility Study: This study checks if the development is possible and viable and includes items like performing title review, ALTA survey, environmental and geotechnical reports. It
    typically takes 90-120 days and can cost between $40k and $50k.
  • Site Plan Approval: A detailed plan is prepared by a civil engineer, showing proposed
    changes and improvements. This plan is then submitted to the Planning Department for
    approval.
  • Rezoning and Zoning Variances: Changing zoning laws may be necessary to fit the
    project’s needs. This includes obtaining variances for minor requirements to ensure the
    project can proceed.
  • Environmental Review: The project’s impact on the environment is assessed. This step
    may involve public hearings and the creation of mitigation plans if necessary.
  • Public Hearings and Community Meetings: These meetings involve presenting the
    project to local residents and stakeholders to gather feedback and address any
    concerns.
  • Utility and Road Approvals: Permits for utility installations and road construction are
    obtained. A traffic impact analysis may be required to assess and manage increased
    traffic flow.
  • Land Subdivisions: The process involves dividing land into lots suitable for commercial
    use. Approval is required before any development can begin.
  • Plan Checks and Permitting: Detailed plans are submitted for review to ensure they
    comply with all relevant building codes and regulations.
  • Final Approvals and Permits: Once all requirements are met, final permits are issued,
    allowing construction to begin.

Challenges and Risks

  • Complex Rules: Navigating local zoning and regulations can be challenging, requiring
    careful planning and expertise.
  • Community Relations: Managing opposition and addressing concerns from local
    residents is crucial for project success.
  • Environmental and Political Risks: Projects must comply with environmental
    regulations and align with local political goals.
  • Long Process: The entitlement process can take several months or even years,
    depending on the scope and complexity of the project.
    Risk Management Strategies
  • Check City Plans: It is important to align the project with the local government’s future
    land use plans to avoid conflicts.
  • Consult Experts: Working with civil engineers, land use attorneys, and real estate
    consultants can provide valuable guidance.
  • Engage Community: Addressing community concerns and building positive relations
    with stakeholders can facilitate smoother project approval.
  • Thorough Preparation: Ensuring that plans meet all local codes and regulations can
    help avoid delays and additional costs.

Benefits of Successful Entitlement

  • Higher Property Value: Securing development rights significantly increases the
    property’s value and marketability.
  • Development Readiness: Developers prefer land deals that are ready with all
    entitlements in place, as it saves time and resources.
  • Time and Cost Savings: Pre-approved land deals save developers both time and
    money, making the process more efficient and attractive.