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. This analysis should include the review of the Future Land Use, zoning, entitlement and permitting processes, and the availability and capacity of sewer, water and public utilities.
Other specialty consultants, whose information would be summarized in the report, would provide the boundary survey, Phase 1 Environmental Report, a Wetland and Endangered Species Report, Preliminary Geotechnical Report and a Preliminary Traffic Report. A topographic and tree survey are also often included.
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.
Land Development Readiness Reports for Landowners Considering a Sale to Builders or Developers
by Vern Priest, P.E., MBA
Before selling vacant land, acreage, or development property to a builder or developer, it is important to understand the property’s development potential, physical condition, zoning status, and possible constraints. A Land Development Readiness Report gives landowners practical information before offers are made, much like a home inspection helps a homeowner understand issues that may affect the value of a house being sold “as-is.”
For landowners, knowing the strengths and limitations of a property before negotiations begin can help protect value and improve decision-making. A Land Development Readiness Report can identify key land development considerations such as zoning, future land use, entitlement requirements, permitting issues, utility availability, floodplain concerns, wetlands, environmental conditions, access, topography, and other factors that may influence marketability or a developer’s offer.
A Land Development Readiness Report helps answer important questions such as:
- What is the current condition of the property and its visible site features?
- How do the property’s size, location, access, road frontage, and topography affect development potential?
- How do existing zoning, permitted uses, and future land use designations influence value?
- What entitlement, rezoning, subdivision, or permitting steps may be required?
- Are sewer, water, electric service, and other public utilities or infrastructure available?
- How would FEMA floodplain areas, wetlands, environmental conditions, or endangered species concerns affect development?
- What issues should be addressed before marketing the land or evaluating offers from builders, developers, investors, or buyers?
Before you sell, know what your land can become. A Land Development Readiness Report provides a clear summary of findings and practical recommendations to help landowners understand development opportunities, potential risks, and possible steps to enhance value before marketing the land or responding to offers from builders, developers, investors, or buyers. For more information or to get started on a Land Development Readiness Report, please call Vernon Priest, P.E at 407-865-1300 or by email at vpriest@feldservices.com.
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 services on a property,
please contact Florida Entitlement & Land Development Services at (407) 865-1300.
