10 Proven Strategies for Successfully Navigating the Approvals Process
Give a little bit, just don't give it all away.
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As a developer, effectively managing the approvals process creates the most value for your business. Almost everything else is merely mitigating risk.
So, how can you most effectively manage the approvals process? What are the pitfalls, opportunities, and strategies to maximize value?
First, the approvals process is a negotiation. The best developers are typically adept negotiators, understanding the need to compromise while balancing it with achieving their own goals.
Creating a new development project of significant scale requires buy-in from the community and municipal leaders. If you cannot win over the community, you likely won't secure the necessary approvals.
Here are our Top 10 Strategies for Successfully Navigating the Approvals Process:
Propose what you want—and a little more.
Never show a design you are not ready to build.
Know which potential project changes are, and are not, economically feasible before attending a public meeting.
Contact other developers who have recently navigated this municipal process to learn from their experiences.
Be flexible in your project design and seek common ground.
Stand your ground, but always try to avoid a fight.
Build informal alliances with community leaders.
Recognize you are now a member of the community. Be a good neighbor.
If you don’t have an answer, commit to finding out and follow through.
Assemble the right team for the job (land-use attorney, architect, and civil engineer).
A recent conversation inspired this post. Having gone through the approvals process many times, I know what happens when a developer says yes to every single request from public officials. Unfortunately, their project included a few too many “Yes, we can do that” answers and not enough “Sorry, we can’t commit to that.”
Let’s just say their deal didn’t work.
When presenting a large project to a town or city for review, propose what works economically. Always include some design features that exceed requirements to appeal to those reviewing your project. These features can vary, such as a green roof, mass timber, specific window glazing, an HVAC system, or a sustainability award (LEED, Passive Haus, etc.).
It is crucial for developers to be ambitious. However, it is equally important to ensure a project is not overburdened by features that do not add economic value.
In today’s economic climate, many deals don’t pencil out due to high construction costs and interest rates. Adding costly features that do not contribute to the bottom line makes no sense.
When pressured to add just one more feature to your project, step back, assess whether you should commit to it, and respond accordingly.
Best of luck to all those readers who are navigating the approvals process or attempting to capitalize on a deal in this challenging development climate.
Cheers,
John
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