Exam 2 Flashcards
How long does a developer spend on idea inception
20-30% of the time
Ways ideas may evolve (3)
- A site looking for an idea
- A use looking for a site
- Capital looking for a development opportunity
Characteristics of a good project (3)
- Serves user well
- Adds value to the community
- Profitable
Determinants of property value (5)
- Location
- Accesibility
- Physical property features
- Neighborhood/environmental factors
- Public sector factors
Ways to generate ideas (7)
- Brainstorming
- Nominal group
- Delphi
- Environmental scanning
- Focus groups
- Surveys
- Design Charette
Back of the envelope pro-forma (3)
Step1: Estimate value after development
Step2: Estimate cost to develop (construction and land)
Step3: Compare value to cost
How is the public a partner (5)
- Planner
- Regulator
- Infrastructure Builder
- Legal Mediator
- Business Partner
Zoning
The principle land use regulation for localities.
Use and density restrictions and design standards
Capital Improvement plan
community planning tool used to coordinate the location, timing and financing of capital improvements over a period of usually 4-6 years.
Building codes
a set of rules that specify the minimum standards for constructed objects such as buildings and nonbuilding structures
Subdivision controls
preliminary plat- map of proposed subdivision
final plat- map of final subdivision
Standards: drainage, streets, sidewalks etc
Comprehensive plan
community goals and aspirations in terms of community development.
Is planning and zoning conservative or liberal
Both
Conservative planning and zoning (4)
Arguments in favor: 1. Protecting property values 2. lowering taxes 3. economic development 4. conserve natural resources Against: Inefficient, property rights, affordable housing
Liberal planning and zoning (4)
- Environmental protection
- reduces social costs of private enterprise
- access and housing for all
- promotes environmental justice
Against:
exclusionary, impedes progressive design, promotes sprawl
Legal basis for land use controls
Legislative and Judical
Legislative (2)
- A state power devolved-lower levels have power
2.via enabling acts
based on police power- making of laws
Judicial (4)
- Balance police power against constitutional protection (judge)
- Roughly proportionality and due process (fair treatment)
- reasonable economic use remains
- may require compensation- payout
Option property for complete feasibility study (3)
- Agreement on sole right to purchase at a price within a time- removes the property from the market
- Consideration/payment is forfeit if no purchase or put toward purchase if there is
- Gives time for detailed feasibility
Types of options (5)
- Straight option
- Declining credit option
- Price escalation option
- Rolling option
- Lease and release
Straight option
Off the market for a price and time
Declining credit option
less option money applied to purchase price as time progresses; encourages early exercise
Price escalation option
additional amounts are paid over time to allow for longer options, or higher land price paid
Rolling option
allows a builder to control a number of lots and add another once he uses one
Lease and release
builder controls more land than needed by paying rent on excess; land is then released to the builder when he pays a certain price
How do you prepare an impact study (6)
- Define scope
- Inventory existing conditions
- Compile community standards and guidelines
- Project assess the impacts
- Incorporate mitigation measures
- Monitoring/ enforcement
Direct effects/impacts
occur at same time and place of action
Indirect effects/impacts
later in time/more distant but reasonably foreseeable
Cumulative
from the incremental impact when added to other past, present, and foreseeable future actions by any person/agency
Significance impacts to consider
Context: setting of the proposed action and how that impacts society, the affected region, the affected interests, locality.
Intensity: Severity of impact; impacts on health, unique features, endangered species, violation of environmental laws or standards
Mitigation (6)
- Not taking risks
- limiting action
- repairing or restoring
- Reducing or eliminating over time
- Compensating for impacts
- Monitoring the impact and taking appropriate corrective measures
- insufficient for sustainability
Public private partnerships
public involvement as developer, lender, investor, lessor, or operator in collaboration with private investors and owners
purposes of public private partnerships (5)
- Stimulate development
- feasibility
- affordability
- raise land value/increment
- control what occurs on a particular parcel.
Federal definition
rent or mortgage < or = 30% of gross household income (for household earning 80% of county median income)
Limits: ignores area efficiency, accessibility, property condition and neighborhood condition
Net Operating Income (NOI)
NOI = EGI - operating expenses
Financial productivity = NOI = ((leaseable sqft x rent) x occupancy) - operating expenses
Option
a contract which gives the buyer (the owner) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on or before a specified date.
