When a specific site is indentified for a prospective project, the developer must go through a Discovery Process to determine its viability based on many factors. In lieu of hiring a multitude of consultants, during the Discovery Process to investigate the technical aspects of the site, adding to at risk costs, Paris Projects utilizes its 30 years of experience and knowledge of diverse disciplines to assist the developer to provide preliminary conceptual site work analysis in a short period of time.
Initially, the developer must evaluate if current landowners are willing to sell at a price that makes the deal work. This process alone can take months or years depending on the number of properties required for an assemblage and if the sellers are realistic and open to selling their property.
Concurrently, the existing land use for zoning classification must be verified to determine if a rezoning process will be required to allow the proposed new use. This prospect of a rezoning campaign cannot be taken lightly by the developer. Many projects have been derailed or killed because of neighborhood opposition, onerous city design guidelines or dislike of the proposed project by the community at large.
Once the developer is reasonably confident in his ability to buy and use the land for his intended purpose, he begins to plug very rough costs, income and profit estimates into a proforma or project budget. Experienced “rules of thumb” projections are utilized in the initial soft and hard costs proforma such as brokerage, leasing, design, legal, finance costs, property management fees, land, square footage building costs and projected rental income. Each and every site, however, is unique relative to physical characteristics and its conditions. This uncertainty relative to required work cost strikes fear in the heart of most developers and represents one of the highest risk aspects of any development.
All expenditures by the developer during the Discovery Process, called “pursuit costs”, are usually paid out of pocket and are at risk if the project does not move forward.
The initial analysis includes the review of readily available, no cost information such as existing boundary and TOPO surveys, aerial photography from various sources and public information from the municipal and state’s websites.
Existing surveys can be very helpful in establishing the general size and acreage of projects and can delineate existing easements and utilities that may require costly relocations such as high voltage stations or primary electrical services, high pressure gas mains, fiber optics, sewer mains and drainage features.
The lack of utilities near the site can also constitute a cost concern if offsite improvements are required to serve the site.
TOPO surveys or city websites indicate existing site characteristics and can provide the most crucial information for indentifying costly development concerns regarding the specific site. Drainage and creeks can affect the developable area if floodways exist. They can require expensive culvert or bridge crossing construction. The ultimate site plan layout, with sites that have water-draining issues, is to locate detention ponds on the low end of the site.
At Paris Projects, we take the Discovery Process very seriously to ensure that our clients move forward with their development decisions based on solid information and accurate proformas.
One of the highest compliments paid to our firm by a client is, “I utilize Paris Projects on all of my developments. It’s the most effective money spent for my piece of mind. I consider the hiring of Keith and his team at Paris Projects as simply buying an insurance policy against unforseen risks… dollars well spent”.
Keith Paris
President
Paris Projects, Ltd.
