Land Development Entitlements

Entitlements are often overlooked and pose a significant challenge in the development process. While they are commonly associated with due diligence, there exists a distinct difference. Due diligence primarily focuses on assessing whether a site aligns with development criteria, encompassing factors like clean title, surveys, and geotechnical investigations. On the other hand, entitlements refer to legal rights granted through approvals from government entities, specifying permitted uses, intensity, building types, or placement.

These entitlements play a pivotal role in enhancing property values. Key entitlements encompass zoning, preliminary plat approval, state and regional permits (e.g., department of transportation for ingress/egress, state environmental agencies for stormwater detention), and local permits (e.g., land disturbance permits). Simply put, without the appropriate entitlements, a project cannot progress. Obtaining entitlements is a time-consuming process, typically taking six to twelve months. It is crucial to factor in the entitlement period when negotiating land contracts and assessing financial requirements for a project.