Due Diligence Report - Neighboring Property

1. Existing and Proposed Uses

Start with a recent aerial photo to understand the existing uses of land adjacent to the property in question (PIQ). During the site visit, investigate all adjacent parcels for existing development patterns. Understand the relationship of the existing uses and development pattern and illustrate how the existing developments may or may not impact the PIQ’s development approach. Take photos and inventory each for future reference. Find out if there is an association or a property management company involved with any of the existing projects.

Research the land use map, master plan, and zoning map for the surrounding property as well as for the property under consideration for purchase. It is important to understand the development potential of the adjacent property and how it may impact the development plans for the PIQ. It is conceivable that the adjacent property should also be purchased for subsequent phases of the project. The adjacent property may have attributes that would significantly increase the market appeal of the PIQ. Each parcel would be a puzzle piece in the development pattern and how the property fits together for a comprehensive development pattern is advantageous for the community and developer.

2. Positive and Negative Surrounding Property Analysis

Prepare a detailed list of the positive and negative impacts surrounding properties may have on the development pattern of the PIQ. Consider technical, marketing, and political aspects of each property and describe how to overcome the negative and how to best utilize the positive aspects of the development. As an example:

(a) Technical – the adjacent property may have an endangered species on the property requiring a buffer which may extend into the PIQ.

(b) Marketing: the proposed development may be consistent with the adjacent existing project and both project designs must be have road and pedestrian connectivity.

(c) Political: the PIQ is adjacent to a 4,000 unit active adult community – and the intended use is first time homebuyer product.

3. Neighborhood Reaction to Development Plans

• Citizens are voicing their opinions at public hearings
• Seek neighborhood and community input on project plans and goals
• Create guidebooks on development costs and regulatory processing costs
• Outline citizen involvement in the process and define their role
• Prepare educational material on the public approval process
• Educate newly appointed board members on the process
• Develop an effective and mediation or arbitration system
• Increase public awareness

4. Political Assessment

It is important to know the political climate of a community. Is it a “no growth community” or a community open to growth and new growth trends? With each local approval/permit requirement, the more influence the politicians will have over the property and its use.

Become familiar with:

• The local politicians that would support your project
• The staff that processes projects and their influences
• Learn the regulatory permitting process
• The surrounding neighborhood and if they will oppose to the project
• The community “hot buttons” for inclusion in the project design
• An experienced land use/zoning attorney
• Master plan and growth management plans
• Subdivision approval process and the time required “to be in the ground”