Land Development

Figures, xi
About the Author, xv
Acknowledgments, xv
Disclaimer, xvii

Introduction 1
The Process, 1
Where to Begin, 3
Key Elements, 3
New Complexities, 5
The Project Team, 6
Market Research and Financial Analysis
Consultants, 7
Project Planner, 7
Auxiliary Advisers, 7
The Developer, 8
Future Homebuyers, 8

Chapter 1 The Market Study, 10
Why Do a Market Study? 11
Purpose of a Market Study, 11
Types of Market Studies, 12
General Studies, 13
Site-specific Studies, 14
Highest-and-Best-Use Studies, 14
Target Market Profile Studies, 15
What Kind of Study Do You Need?, 15
Housing Supply and Demand, 17
Housing Mix, 18
Projecting Demand, 18
Adjusting the Projection, 19
Sources of Demographic Data, 25
Census Data, 25
Other Sources of Demographic Data, 27
Data Vendors, 28
Capture Ratio, 28
Understanding the Target Market, 29
Psychographic Data, 29
Sources of Psychographic Information, 31
Specialized Knowledge of the Target Market, 33
When to Use Specialized Information, 33
Sources of Specialized Information, 34
Project Viability, 35
When to Study the Market, 35
Before Land Purchase, 36
After Land Purchase, 37
During Project Build-Out and Sales, 37
After Project Completion, 38
When to Purchase Market Information, 38
In-House Market Studies, 39
Professional Market Studies, 39
Continue to Market, 42
Advertising and Other Marketing Activities, 42
Selling the Project, 43
Selling to Builders, 43
Selling to Homebuyers, 44
Today's Marketplace, 45

Chapter 2 Financing Your Project, 46
Dramatic Changes in Development Financing, 47
Sources of Capital, 48
Increased Documentation Requirements, 50
Types of Loans, 54
Acquisition Loan, 55
Development Loan, 57
Construction Loan, 58
Permanent and Interim Financing, 59
Alternative Sources of Financing, 60
Partnerships and Investors, 60
Joint Ventures, 61
Pension Funds, 62
Types of Land Purchase Agreements, 62
Analyzing Cash Flow and Profit, 65
Pro Forma Analysis, 65
Cash Flow Diagram, 68
Sensitivity Analysis, 68
Profit Analyses, 72
Accuracy of Methods, 73
Future of Development Financing, 75

Chapter 3 Site Selection, 77
Two Approaches to Site Selection, 78
Development Idea in Search of Site, 78
Site in Search of Master Plan Concept, 80
Three Types of Site Characteristics, 81
Physical Factors, 83
Geotechnical Conditions, 83
Topographical Conditions, 88
Site Features, 90
Hazards, 94
Improvements, 95
Site History, 96
Legal and Political Factors, 96
Zoning, 97
Growth Management, 98
Comprehensive Land Use Plan, 99
Subdivision Ordinances, 101
Contiguous Property, 102
Overlapping Regulations, 103
Political Factors, 104
Off-Site Factors, 107
Negative Off-Site Factors, 107
Special Studies, 108
Environmental Impact Studies, 108
Stormwater Management Plan, 109
Wetlands Review, 109
Traffic Studies, 111
Tree Surveys, 111
Sources of Information for Special Studies, 111
Geographic Information Systems, 112
Evaluating Preliminary Site Data, 113
Organizing Site Data, 114
Decision Matrix, 114
Starting with the Site, 120
Site Selection and the Target Market, 120

Chapter 4 Site Analysis, 122
Gathering Additional Data, 123
Project Design, 123
Project Costs, 123
Site Analysis Tools, 124
Current Maps, 124
Drawings and Tests, 125
Land Survey, 125
Physical Factors, 126
Topography, 126
Soils and Subsurface Conditions, 129
Hydrology and Drainage Requirements, 131
Stormwater Runoff, 135
Site Features, 135
Project Opportunities, 135
Project Constraints, 140
Regulatory Requirements, 143
Zoning, 144
Subdivision Review Process, 148
Environmental Approvals, 149
Building Codes, 152
Off-Site Factors, 152
Streets and Sidewalks, 153
Utilities, 153
Applying Site Analysis to the Master Plan, 155
Producing Multiple Solutions, 155
Selecting a Final Concept, 158

Chapter 5 Major Environmental Regulations Affecting Development, 160
Transforming the Physical Environment, 160
Regulatory Climate, 161
Creative Alternatives, 162
Environmental Permitting, 162
Reviewing Project Impact, 163
Submittal Process, 163
Key Areas, 166
Wetlands, 166
Regulations, 166
Project Impacts, 169
Hazardous Wastes, 170
Regulations, 171
Project Impacts, 172
Water Quality, 173
Regulations, 173
Project Impacts, 174
Air Quality, 176
Regulations, 176
Project Impacts, 177
Noise Control, 177
Regulations, 178
Project Impacts, 178
Radon, 179
Regulations, 179
Project Impacts, 179
Plants and Wildlife, 182
Regulations, 183
Project Impacts, 183
New Approach to Development, 183
Marketing the Environment, 184
The Green Developer, 185
Recognition Programs, 185
Environmental Awareness, 186

Chapter 6 Developing a Master Plan Concept, 187
Initial Idea, 188
Unified Master Plan, 188
Community Identity, 189
Site Characteristics, 190
Target Market's Preferences, 191
Regional Context, 193
Sense of Community, 194
Social Interaction, 194
Automobile and Pedestrian, 196
Privacy, 198
Choosing a Concept for a New Development, 201
New Design Ideas, 201
Traditional Neighborhoods, 202
Smaller Developments, 204
Creating a Unique Place, 206
Finalizing the Master Plan, 209
Development Guidelines, 210
Architectural Guidelines, 210
Deed Restrictions and Covenants, 212
Construction Guidelines, 213
Master Plans of the Future, 213

Chapter 7 Site Engineering and Stormwater Management, 216
Site Engineering Plan, 217
Components, 217
Master Plan, 218
Grading Plan, 219
Stormwater Management Plan, 219
Erosion and Sediment Control Plan, 220
Grading Plan, 220
Cut and Fill, 220
Spot Elevations and Slopes, 221
Code Compliance, 222
Microengineering Process, 223
Stormwater Management Plan, 225
Principles, 227
Types of Systems, 228
Design of Closed Systems, 230
Design of Open Systems, 234
Combining Open and Closed Systems, 236
Stormwater Drainage Plan, 238
Site Drainage Patterns, 238
Rational Formula, 240
Subarea Drainage Requirements, 242
Retention and Detention Basins, 244
Creating Project Amenities, 249
Erosion and Sediment Control Plan, 251
Temporary Control Measures, 253
Permanent Control Measures, 255
Site Engineering and Your Project, 257

Chapter 8 Residential Streets, 258
Street Design, 258
New Directions in Street Design, 259
Local Street Ordinances, 261
Applying Ordinances to the Master Plan, 262
Street Hierarchy, 263
Street Width, 264
Cul-de-sac Turnarounds, 265
Street Geometry, 266
Intersections, 267
Curb or Corner Radius, 269
Vertical and Horizontal Alignment, 271
Street Patterns, 273
Density and Scale, 274
Site Conditions, 277
Focal Points and Pedestrian Routes, 278
Basic Design Considerations, 278
Cross Sections and Stormwater Runoff Systems, 281
Street Design Process, 282
Entrances, 282
Enhancing Your Project's Identity, 284

Chapter 9 Selecting Housing Types, 286
What the Buyer Wants, 286
General Design Issues, 287
Density and Pattern, 288
Single-Family Detached, Large Lot, 288
Single-Family Detached, Small Lot, 289
Attached Housing, 294
Matching the Target Market's Demands to
Housing Types, 301
Style Preferences, 303
Regional Preferences, 303
Site Characteristics, 304
Climate, 305
Homebuyer's Identity, 309
Planning as the Key to Success, 310

Appendix A Sources of Marketing Data, 311
Demographic Data, 311
U.S. Bureau of the Census: Census Reports, 311
U.S. Bureau of the Census: Other Publications, 311
Congressional Information Service, 313
Private Sources of Demographic Data, 313
Psychographic Data, 315

Appendix B Land Development Checklist, 316
Market Analysis, 316
Target Market Identification, 316
Relating Product to Target Market, 316
Determining Capture Ratio, 317
Financial Analysis, 317
Land Acquisition, 317
Loan Structure and Disbursement, 318
Pro Forma Analysis and Cash Flow, 318
Site Analysis, 319
Physical Factors, 319
Legal Factors, 322
Political Factors, 324
Off-Site Factors, 324
References, 326
Index, 329