Due Diligence Report- Regulatory Section

9. Entitlement, Approval and Permitting Processes


The most important section of the regulatory analysis is the understanding of the plan review and approval process required by local government. Each local municipality has their own unique approach to assessing development applications. Most developers will indicate that a project schedule and the success of the project are pre-determined during the regulatory review process. Time is money and delay during the review process is not uncommon which only adds to the cost of developing land.

The zoning entitlement process is typically a different time line than the approval of project plans based on approved zoning. The rezoning process may take longer and may have a defined set of dates in which milestones must be achieved, i.e. community meetings, informal staff consultations, etc. This schedule can’t be modified since it is cast in stone by the politicians at the beginning of each calendar year. The rezoning time line will change by one month later if there is a problem with the rezoning application. Rezoning property is high risk with a high reward. Soft costs required to rezone property can be significant without assurances of obtaining approval. Take advantage of any informal meetings with the politicians, neighbors, and staff to understand their points of view.

This section should also include a contact list for the stakeholders involved in the rezoning process.

The review and approval of development plans may not be as stringent or legalized as the rezoning process. Obtain applications, fee schedules, and outline of the process which may indicate a specific submission date before the Planning Board will act on the application. Or the municipality delegates plan review approval to the staff and a time frame is provided in which the staff must act on the application. In either case, the time line may be expedited and include this option in the report. Provide the local regulatory time line, steps for approval and the contact list. The contact list may be different from those involved in rezoning cases.

Besides the written procedures, find out about Board traditions and any “unwritten” nuances exercised during the regulatory process. Summarize the findings because “this is the way we do things” will directly affect the project schedule and possibly add cost to the project. Remember the developer’s motto: “Be on time and within budget”. Following the regulatory plan review process exactly without alteration and with quality plans will minimize the time government takes to issue permits and approvals.