LEGAL/LEGISLATIVE LOOK
Three Ways to Streamline Entitlements By Michael Takacs, RLA, ASLA
I n the rapidly evolving land development industry, owners and developers often face expanding entitlements timelines and permitting snags that can slow down or even halt their projects. Seemingly inevitable, these challenges can be the result of a surge in applications, municipal and agency staff shortages, and, in some areas, enduring virtual procedures adopted during the COVID-19 pandemic. In other regions, challenges are caused by increasingly stringent regulations and complex approvals processes. Regardless of geographic location or project type, however, development teams can follow a few best practices to keep delays at bay and control budgets in the face of entitlements uncertainties. To avoid slowdowns before they begin, teams should perform thorough due diligence, engage the local community, and strategize ways to work concurrently through waiting periods to keep projects moving forward. Here are three steps development and design teams can take to minimize the impacts of increased entitlements timelines:
and drainage permits at the same time, rather than waiting for site plan approval, also expedites the schedule.
to move forward on projects quickly and engage site civil engineers at the early stages of every project — even when you are still negotiating deals to buy land. This will allow the design team to develop a systematic approach to the due diligence process. Ordering preliminary design documents, such as geotechnical surveys or environmental studies, early in the due diligence phase can inform closing dates, ensure on-time approvals, and reduce “down time” in the rest of the process. Engaging these consultants early can be a small cost up front that could save up to two months down the line.
2.
Understand Local Permitting and Entitlements Nuances
Local expertise is particularly important when working with municipalities during the entitlements process. The longer the entitlement process, the more the project costs. Bohler has seen agency review times double in some regions, and these long wait times are costing developers — especially as prices on construction materials continue to rise.
Understanding the deal to strategize approach
Engaging local consultants to strategize approach
Help your design team understand the structure of the deal you are considering. Key elements like obligation deadlines, closing dates, and construction start are critical to helping the team form a strategy around your imperatives. If breaking ground is your top priority, for instance, Bohler recommends taking specific steps, such as obtaining an early clearing or mass grading permit, to get the contractor underway faster. As initial sitework commences, the design team can complete the remaining permitting items to keep the project moving forward. Developers should build ample time into agreements with tenants and banks to ensure developers meet their commitments and avoid incurring additional costs down the line. Submitting plans concurrently to expedite timeline In Pittsburgh, advance planning helps smooth the path forward. When possible, run zoning and construction documents plan sets concurrently. Processing these reviews parallel with each other shortens the overall project schedule and potentially improves the permitting timeline. Run site plan permits concurrently, as well. Submitting civil construction permits, such as driveway or utility connections
Unfamiliarity with regional development delays can cause even longer timeline slowdowns. As developers expand their geographic reach and explore new areas of the country, it is often necessary to educate newcomers to the market on exactly what they can expect, emphasizing the importance of realistic timelines. Teaming with land use attorneys and consulting agencies that know the region and local jurisdictions can dramatically reduce wasted time. This is especially effective where pre-established relationships can make processes easier or where newly created permits can slow a project already in progress. Asking the right questions to identify potential challenges You may want to inquire about hidden timeline extensions that can affect projects regardless of region — plats, environmental concerns, changes to available construction materials, and local traffic departments can all introduce delays. Likewise, jurisdictional sustainability requirements may be an additional source of potential slowdowns. New stormwater management regulations, implementation of solar panels and solar-ready facilities, and installation of electric vehicle charging stations are particularly likely to be affected.
1.
Engage the Design Team Early in Due Diligence
Your design team can help you identify important due diligence milestones and key factors impacting your deal structure. It is critical for the design team to establish priorities early on through due diligence and local stakeholder engagement. Consider sharing concepts, risk tolerances, and anticipated timelines at a project’s start. This can help your design consultants identify, mitigate, and manage challenges — while shaping the timeline accordingly. Obtaining data to inform project schedule Thorough due diligence often requires high-level expertise from site planning and consulting teams from the start — earlier than most developers would imagine. In Pittsburgh, for example, there’s often a need
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