Insights into Entitlements | M Square Commercial


Insights into Entitlements

Overview

The land entitlement process involves obtaining the necessary legal approvals to develop land
for specific commercial use. It is a key step in real estate development, ensuring that any
changes to land use or appearance follow local regulations.

Importance of Land Entitlements

  • Legal Compliance: This is essential for changing land use, particularly for commercial
    development. It ensures that the project adheres to local laws and regulations.
  • Project Viability: The entitlement process determines if a land deal can proceed and
    allows construction to start. It is crucial for the success of commercial real estate
    projects.

Steps in the Entitlement Process

  • Pre-Application Meeting: This is an initial discussion with city planners to get feedback.
    It involves local officials like the fire marshal and utility companies to identify any
    potential issues early.
  • Feasibility Study: This study checks if the development is possible and viable and includes items like performing title review, ALTA survey, environmental and geotechnical reports. It
    typically takes 90-120 days and can cost between $40k and $50k.
  • Site Plan Approval: A detailed plan is prepared by a civil engineer, showing proposed
    changes and improvements. This plan is then submitted to the Planning Department for
    approval.
  • Rezoning and Zoning Variances: Changing zoning laws may be necessary to fit the
    project’s needs. This includes obtaining variances for minor requirements to ensure the
    project can proceed.
  • Environmental Review: The project’s impact on the environment is assessed. This step
    may involve public hearings and the creation of mitigation plans if necessary.
  • Public Hearings and Community Meetings: These meetings involve presenting the
    project to local residents and stakeholders to gather feedback and address any
    concerns.
  • Utility and Road Approvals: Permits for utility installations and road construction are
    obtained. A traffic impact analysis may be required to assess and manage increased
    traffic flow.
  • Land Subdivisions: The process involves dividing land into lots suitable for commercial
    use. Approval is required before any development can begin.
  • Plan Checks and Permitting: Detailed plans are submitted for review to ensure they
    comply with all relevant building codes and regulations.
  • Final Approvals and Permits: Once all requirements are met, final permits are issued,
    allowing construction to begin.

Challenges and Risks

  • Complex Rules: Navigating local zoning and regulations can be challenging, requiring
    careful planning and expertise.
  • Community Relations: Managing opposition and addressing concerns from local
    residents is crucial for project success.
  • Environmental and Political Risks: Projects must comply with environmental
    regulations and align with local political goals.
  • Long Process: The entitlement process can take several months or even years,
    depending on the scope and complexity of the project.
    Risk Management Strategies
  • Check City Plans: It is important to align the project with the local government’s future
    land use plans to avoid conflicts.
  • Consult Experts: Working with civil engineers, land use attorneys, and real estate
    consultants can provide valuable guidance.
  • Engage Community: Addressing community concerns and building positive relations
    with stakeholders can facilitate smoother project approval.
  • Thorough Preparation: Ensuring that plans meet all local codes and regulations can
    help avoid delays and additional costs.

Benefits of Successful Entitlement

  • Higher Property Value: Securing development rights significantly increases the
    property’s value and marketability.
  • Development Readiness: Developers prefer land deals that are ready with all
    entitlements in place, as it saves time and resources.
  • Time and Cost Savings: Pre-approved land deals save developers both time and
    money, making the process more efficient and attractive.

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About Caroline Vega 344 Articles
Caroline Vega combines over a decade of digital strategy expertise with a deep passion for journalism, originating from her academic roots at Louisiana State University. As an editor based in New Orleans, she directs the editorial narrative at Commercial Lending News, where she crafts compelling content on commercial lending. Her unique approach weaves her background in finance and digital marketing into stories that not only inform but also drive industry conversations forward.