Due Diligence Report - Permitted and Conditional Uses

For each zoning classification, there are permitted and conditional uses defined by local government. As an example for a property zoned General Business, the following permitted and conditional uses guide the development pattern approved by local government.

PERMITTED USES
From the zoning regulations, determine the permitted uses for the property. Determine if any of the uses are consistent with your intended use for the property. Evaluate the adjacent property for consistency in development pattern and if this zoning is appropriate for the area. OR perhaps there is a higher and best use for the site.
As an example, for a General Business Use, the permitted uses would be outlined as follows:
1. All principal uses permitted in the Neighborhood Business Zone
2. Art, dance music or other similar instructional school
3. Auto parts store
4. Bowling alley
5. Commercial Office
6. Commercial Retail
7. Funeral Home
8. Garden Center
9. Professional Office
10. Shopping Centers
11. Vocation/Trade School
12. Combination of two (2) or more of the above permitted uses
13. Other uses similar to those listed above

CONDITIONAL USES
Many zoning ordinances include other uses which can be developed on the property but must not contain any variances and be approved. An example of conditional uses for a General Business Zone are:
1. Automobile repair shop
2. Automobile sales establishment for new or used cars
3. Automobile service station (gas station or motor vehicle service station)
4. Car Wash
5. Churches and places of worship
6. Commercial recreation activities
7. Health Care facility
8. Hotel or motel
9. Mini-storage facility
10. Public utilities
11. Veterinary clinic hospital or animal care facility

The above example is from an ordinance which hasn’t been updated in years. In the future, mixed uses will be the only way to develop sustainable projects. Both vertical integrated mixed use buildings and horizontal mixed uses will provide market flexibility and diversification to reduce risks. These types of projects will however necessitate new partnering roles and reinventing business models within the real estate development industry. Remember a sustainable project achieves economic, social and environmental objectives. A project, product or building labeled “green” may not be considered sustainable! Ask for a copy of my white papers on the Future of Land Development (3-parts) for additional insight.