Due Diligence
Comprehension Evaluation
Have you purchased a property and then found out that it had serious problems? If you had more complete information, would you have made a different decision, offered a lower price or negotiated better terms for the property?
A comprehensive due diligence report would address these concerns. It should include the review of the Future Land Use, zoning, entitlement and permitting processes, transportation and school concurrency, availability and capacity of utility services.
Other specialty consultants would provide the boundary survey, Phase 1 Environmental Report, a Wetland and Endangered Species Report, Preliminary Geotechnical Report and for larger projects a Preliminary Traffic Report.
Due diligence should identify properties that are viable development sites, those that can benefit from the value-added process, and to recognize opportunities and constraints relative to the property or to the geographic area.
All properties should be evaluated to determine if additional value can be realized by changing the land use, zoning or by amending existing approvals.
THE IMPORTANCE OF DUE DILIGENCE ON LAND DEVELOPMENT PROJECTS
by Vern Priest
We have had the opportunity to review abandoned Florida land development projects, from Jacksonville, to the Florida panhandle, throughout central Florida and as far south as Naples. While doing this due diligence research many problems were discovered on these projects.
The most common ones that affected the value of these properties were: loss of approvals due to failure to perform approval or permit requirements, unpaid impact or utility connection fees, expiration of permits, permit or environmental violations and unrecorded plats. These properties came in a wide variety, from undeveloped land to partially completed subdivisions to finished lots. Due to the phasing of projects, all three situations were often encountered within one property.
This type of research provides the information necessary to determine the development potential of a property and typically includes:
- Meeting with local officials to determine the current status of the zoning, concurrency, entitlements and plat recordation.
- Review of existing development and permits documentation to determine the phasing, remaining obligations and expiration dates.
- Determine what impact/utility connection fees have been paid or need to be paid.
- Determine availability of sewer, water, and other required utilities.
- Performing a site inspection to determine the current status of the project and existing construction.
- Provide recommendations for maintaining the approvals and for future development of the property.
For additional information or to request due diligence assistance on a property,
please contact Florida Entitlement & Land Development Services at (407) 865-1300.
