Real-Life Decision Making
As a land developer, you have just bought a new parcel of property. That is your job: to scout for developable land, then build on it. It is a huge acquisition, but you did so well on your last project that you believe the community is receptive to your ideas. They know your work is of good quality.
Once you're familiar to a community and they like what you've done in the past, they are more accepting, says Jim Siepmann. He has been developing land for more than 20 years.
Often, Siepmann hears residents say, "'Thank God, it's you.' [Even so], there are always issues to deal with," he says. Why? "Most of the time, we're dealing with homes. It's different than other businesses. There is more emotional attachment."
On this last project, a small residential subdivision, you finished on time, making the buyers who purchased the plots very happy. They moved into their houses on the day you promised. Their homes overlooked a manmade lake, ducks floating serenely. You also laid a marked walking trail through the woods by their homes.
You bought the new parcel of land because the price was right. As of yet, you are not sure what to develop there.
"The devil is in the details in this work," says Daren Fluke. He is a development consultant. Despite the best planning, there will be hurdles.
"The frustrations or problems come when you design something and then you run into other problems that aren't your fault: neighborhood opposition, road capacity or sewer capacity, such as a problem with the sewer line....These problems can cost tens of thousands of dollars."
Siepmann agrees. He says that sometimes the weather can throw a few curveballs, too. He remembers a subdivision called Green Meadows that he developed in the mid-1980s.
"There wasn't a lot of storm water or erosion control. You opened up the ground and started your improvements," he says. "We started this project in a terribly wet year. It rained hard and almost every day. The water would run down onto other [existing] property owners. People's yards were muddy. I went to these neighbors' houses and cleaned it up myself."
You have to be ready to control problems because neighbors will do anything to make you regret every error along the way, he says. "They call the mayor, the news stations."
You get into your car to go take a look at the new acreage and make some decisions about what you want to develop. The acreage you bought can hold commercial space (offices), retail (shopping centers and restaurants) or residential (houses and condos). Zoning ordinances will permit all three. Because of recently passed legislation, the land will also permit mixed use, a combination of the above uses.
"There is often more than one viable solution to a planning issue," says Marnie Skobalski. She is a planner who assists developers. "There are as many directions a community may take as there are people in that community."
Your plot of land is not as isolated as the last one you developed. In fact, as you park, you see wetlands on one side and a pristine lake on the other with some residences. Hmm, if you built homes here, they would sell like hotcakes, with the natural landscaping. But you question this wisdom, because there are already homes here.
Out of your glove compartment, you pull the plans of another development in progress. There will be a business park on two sides of your parcel. With a business park, there might be a need for new restaurants and shops, but also there is a need for additional houses close to people's offices.
The land developer building the business park would more than likely bring in the infrastructure necessary for additional commercial or retail development. A developer must stand back and decide not only what is best for the area, but also what will sell.
What do you do?