By Chuck Ross
Look out a window on a cross-country airplane flight and vacant land still seems to be an abundant commodity. However, many builders are finding just the opposite to be true, and are re-looking at sites they once would have ignored. Previously passed-over property can offer great opportunities, but experts urge builders to investigate all potential pitfalls before making a financial commitment.
Don't Fight City Hall
Builder and developer Barry Simon has plenty of experience with problematic building sites. His Chesterfield, Mo.-based Simon Homes develops subdivisions and individual custom homes in the St. Louis suburbs. He begins investigating any new opportunity with a trip to city hall, to make sure the local leaders consider the property suitable for his intended use.
"The first thing we do is go to the municipality to see how the property is classified," he says. Zoning maps are the first resource, he says, but other documents may offer guidance if the property is not yet zoned.
"Most municipalities now have a comprehensive land plan," he says. "It describes what officials anticipate these empty spaces of land are planned to be zoned for in the future."
If you're looking at the land for a purpose other than that for which it is zoned (or anticipated to be zoned, in the case of currently unclassified property) Simon says your project may still have a chance. If you can make a reasonable argument that the current classification doesn't make sense, Simon suggests approaching the municipal representative (for example, the town council member, alderman or selectman for the area) to get a read on their position.
"You need to feel out the council people to be sure that they'll be on your side," he says.
Beware the Wild Kingdom
Environmental issues also pose potential problems for today's builders and developers. For example, slopes can require drainage and erosion mitigation. And water on a property, even if it's just in the form of an intermittently active drainage ditch, should raise an red flag, experts say. At least a portion of the parcel may be considered wetland, which can complicate site planning and add layers of construction regulations.
"Wetlands are a big issue," says Matt Moroney, executive director of Milwaukee's Metropolitan Builders Association. "And areas that don't have active water in them may still be wetlands."
Federal regulations also may apply. Simon says the U.S. Army Corps of Engineers needs to sign off on projects through which a moving body of water passes. He says the Corps may require disturbed wetlands to be created elsewhere on the property or in another location, or builders may be required to contribute to a general fund for wetland restoration (you can find out more on this program at http://www.corpsresults.us/regulatory/default.htm).
Teardowns of existing structures also pose potential environmental problems, Simon notes. Older houses and commercial structures may contain asbestos, requiring detailed demolition plans. And disposing these materials also will require care.
All these environmental regulations can be confusing, even for experienced builders. Moroney suggests a professional consultant could be helpful if such issues arise.
"There are companies out there that provide environmental engineering," he says. "To truly protect yourself, you man want to work with one of those companies."
Desperate Homeowners' Associations
As builders and developers come back to previously ignored property, they may need to work with owners of adjacent property that have been developed in the meantime. This is especially true when larger developments are planned for long-vacant parcels, but may be just as important for smaller, infill projects. Experts suggest scouting out potential opposition at a very early stage, so possible objections can be raised and understood.
"Citizens are much more involved in the development process," says Debbie Bassert, assistant staff vice president for the Washington, D.C.-based National Association of Home Builders (NAHB). "Developers now are much more used to going around and talking to the neighbors, even before drawing the plans up."
During these conversations, experts suggest thinking of alternative design strategies that could be more acceptable to project opponents.
"Be a good listener, and incorporate some of their suggestions," Moroney says. "It shows that you're concerned about the impact on the surrounding homeowners, and that you've worked to address those concerns. You kind of disarm the opposition, because you're meeting their concerns."
Build Yourself a Safety Net
With all these potential pitfalls, those in the business suggest a builder's first step when considering questionable properties should be to line up a good lawyer. A well-written land contract can be your savior if proposed plans fall through, they say. For example, Simon considers it essential to include a contingency requiring the property be zoned, "to the builder's satisfaction."
"We want that decision to be ours to make," he says. "Not something that's bound in the contract."
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