If your community is struggling to attract economic development opportunities, it may be time to look at the factors influencing the cost of development and it’s relationship to the local market.
Although released in the Fall of 2016, this SIOR article by Debroah Mickler is an excellent outline of the variables that make or break “feasibility” for new industrial (or any other) development.
By highlighting how an industrial developer determines what it can pay for land, the article also shows how project costs (e.g. impact and permit fees; or off-site infrastructure improvements) impact a project’s budget relative to land cost.
Taking the time to identify these variables in your community can help your city or economic development organization better understand why it may not be attracting the opportunities envisioned. It is also a great starting point for a conversation on the types of incentives it may take to attract projects (e.g. expedited permitting; offsets to land cost; tax increment financing of infrastructure, etc.).
Got questions? Contact us
The Puget Sound Regional Council (PSRC) is currently taking comments on Vision 2050 – the regional multi-county planning policies that will guide and influence the next round of county and city comprehensive plan updates. The public comment deadline is September 16th at 5pm.
Below is our comment letter outlining our firm’s concerns and requesting PSRC consider amendments to specific draft policies on development patterns, transportation and growth allocations.
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We’re located at 3705 Colby Avenue, Ste 1, Everett, WA.
Companies, especially those in real estate development, have developed comprehensive due diligence/feasibility processes to determine if a project is a go or no-go.
But even the best due diligence/feasibility processes we’ve seen lack an understanding of the ‘political’ elements impacting a project, which often results in one of two scenarios:
1. The company passes on a project in response to a perceived regulatory roadblock, which if investigated further might be easily navigated, or
2. The company proceeds with a project only to run into an ‘unexpected’ political change that threatens the entitlements they seek (e.g. moratoriums, more stringent regulations, emergency ordinances, etc.).
We’ve got solutions and here’s how we help:
- Political & Regulatory Risk Assessments – We specialize in understanding local and state regulatory systems and we excel at researching local regulatory trends, past project results, changing political winds (example: is the no-growth neighborhood group running candidates to flip the local council/board?). We can help your company assess the political and regulatory risks prior to your investment.
- Reverse Engineering of Regulatory Roadblocks – Have you ever passed on a project because you ran into a single regulatory limitation that didn’t fit the project (e.g. allowed % of lot coverage was too low for your home designs)? We help companies assess regulatory roadblocks and design strategies that can change the red flag your seeing into a green light.
- Maximizing the Project’s Value – What if you could get a little more density? Shorten your approval by a few weeks? Or reduce some of your project’s conditions? We can help with that. We understand the politics of negotiation, as well as the opportunities to speed up local regulatory processes, and we can assist you in maximizing your next project’s value.
- Proactive Project Mine-Clearing – Developing relationships, seeking code interpretations, securing code amendments – are all efforts we can manage on your behalf prior to your next project moving forward.
- Community Outreach – There’s nothing worse than thinking everything is going great only to go to hearing and have dozens of neighbors show up in opposition. We are experienced at communicating with neighborhoods and adjacent landowners, and we can help your company manage long-term project risk by utilizing the opportunity to address concerns early in the process.
Want to learn more about how we can help your projects? Contact us.
The annual comprehensive plan amendment cycle (a/k/a the “DOCKET”) in Washington’s cities and counties is the primary opportunity for real estate investors, developers and small businesses to better their return on investment by changing the applicable future land use designation and/or zoning on their property.
RELY ON OUR EXPERTISE.
Toyer Strategic can evaluate the options, as well as prepare, submit and manage a Docket proposal through every step of the process.
AND DON’T LET TIME RUN OUT.
Missing an application deadline can cost you at least a year of time. For example. . .
- Renton accepts applications between August 1 and October 15th
- Snohomish County accepts applications until the last business day in October
- Lacey accepts applications through the first business day in January
Contact us to discuss your project