I am an advocate of rezoning for value. Simply stated, buy land with a less valuable use classification and rezone the property to its highest and best use. As an example, buy agricultural use property for land located within a commercial area. If the rezoning to commercial is successful, the value of the property has increased in value. The real estate development business is a risk reward industry. To assess the possibility of rezoning for value, the zoning map and master plan are important public documents to be researched.
Zoning Map - this map is posted online by the local municipality. The map will show all of the zoning districts within the municipal boundaries. Locate the subject parcel on the zoning map and determine the assigned zoning classification for the property. Also, make note of the zoning classification for the immediate surrounding and adjacent properties. Assess trends and changes in zoning for the surrounding properties. Also contact the zoning or planning department and seek information about their intention of revising the zoning map for the town.
Master Plans – each jurisdiction will have an overall growth management plan illustrating the uses for areas and property within its jurisdiction. This plan will delineate uses i.e. Residential, Industrial, Commercial, etc. The master plan does not specify the zoning but designates the use. The master plan changes periodically and in some cases must be updated every 5 or 10 years based on local ordinances or state law. The property should be consistent with the master plan or consider a master plan change application. This may present a more difficult and lengthy regulatory process but most jurisdictions permit this option.
The due diligence report map and plan section will be posted on my blog over the next several days.
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