Tag Archives: LBG Development

How Hard is it to Change my Development Agreement?

“How hard is it to change my development agreement?

This is a complex question with many answers depending on the history of the property, the municipal or county entity, the willingness to revisit  the agreement provisions by the said entities, and what provisions, if any, have already been satisfied.

Let’s look at one example:

A new property owner has just bought a piece of property. In his due diligence the new owner discovered that the property has expired plats on it, and has a development agreement that was approved 4 years ago with 6 years left in its current term. There are also various time sensitive payments that are due from the property owner, but due to the economy he realizes that he is going to have to hold the property for a while and he wants to delay them. The question he is faced with is:

“Will the City work with me to allow me to amend some of the provisions in the development agreement that are time sensitive?”

Obviously this issue and issues like this are of critical concern to the property owner, a good option would be to hire an attorney who negotiated the terms of the agreement in the first place, or an entitlement practitioner. Typically, a good zoning attorney or a good entitlement practitioner, with substantial experience in development agreements, who is familiar with the particular City or County will have established relationships and be able to advocate the property owner’s position successfully. It must be noted that an amendment of the agreement is not always going to be approved by either staff or the City Council or County Commission, but if the new owner can still show a win-win for both the municipal or county entity and the owner. It is likely the City (or County) will work with the new owner to create some type of relief. As to what form that will take that will be up to the Parties.

For further information call (602)-330-8470 Gary Lane, AICP at LBG Development we have “unmatched experience in every facet of development.”  or write your questions and comments to info@lbgdevelopment.com.


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Do I Navigate through the City Entitlement Process?

In this time of economic uncertainty, when is it time to start or continue through the City entitlement process?

The answer to the question is not so straightforward and is dependent upon a number of variables such as (a) the timing of the real estate market, (b) the true value of the land, (c) whether or not there is debt on the property, (d) the patience level of the lender, (e) the amount of debt, and (f) when the loan matures.

Let’s examine one example:

A property owner has a zoning category that doesn’t have a lot of value compared to the amount of debt on the property.  If the owner does nothing it is highly unlikely anyone will be interested in the property because the zoning is too restrictive for today’s marketplace.  The result of this could be that no sales or purchaser/tenant/investor interest is generated.  This in turn may lead to an eventual foreclosure proceeding and a possible deficiency judgment.  The one advantage the Owner has is that he has time to rezone the property. If he chooses this route he would probably increase the value of the land  and start marketing and selling parcels.

The large question facing the property owner is:

“Do I spend the money to rezone the property?  And, what happens if that still doesn’t work, and now I have spent a substantial amount of money and I could still be facing a deficiency judgment?”

Obviously, these issues are of critical concern to the property owner and simply stated, this is where a good market study and an entitlement professional can help to give the property owner an understanding of the market place, the appropriate entitlement for the property, sales price expectations, and the time and process for proceeding through the City zoning web.

If the property owner feels a comfort level with the outcome of the two analyses then it may be in his best interest to proceed.

For further information call (602)- 330-8470 Gary Lane, AICP at LBG Development, we have “unmatched experience in every facet of development.” or write your questions and comments to info@LBGDevelopment.com.


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