Land Use Entitlement

1. Land Use Entitlement Real Estate 619 Urban Land Development Doug Rupe Consolidated Holdings, Inc.

2. Experience

3. First property opened October 2003 As of 1/1/09Open: 129 Under Construction: 44

4. Development Components • The Idea • Site Acquisition and Control • Due Diligence/Entitlement • Closing on Property • Improvements – Construction • Project Completion …this evening we are focusing on #3.

5. EntitlementDefinition • In Land Development………… • the Entitlement Process is “the legal method of obtaining approvals for the right to develop property for a desired use.” • Includes zoning, local, state, federal approvals and building permits, support from private groups such as neighborhoods. • Signage approval

6. How do we obtain approvals? • Start with the facts, AND THEN • Communicate!! • With all stakeholders • City Leaders – extremely important!! • Neighbors • Service providers • Investors/Lenders • Corporate executives

7. How do we obtain approvals? • Work closely with the municipality to understand the rules and the process • Build support. Meet personally with: • Staff • Planning, Building, Commissioners, Mayor • Neighborhood • Advisory committee and Associations • Rely on your consultants • Design accordingly

8. How do we obtain approvals? • This was a REAL email……….. “What I need is a list if specific unknown problems we will encounter.” So, how do we get the facts?

9. Get the facts first! Site Investigation Report

10. Development Components are not linear, but intertwined………….. • Work closely with your consultants • Site design issues – we heard about these last week • Grading and Drainage, environmental, geotechnical • Public Hearings – DAB, Planning, City Council • Zoning – If use is not permitted by right, can you get support for approval? • Will surrounding uses support you? • Commercial adjacent to residential is tough • You want to know this before spending too much money

11. Development Components are not linear, but intertwined………….. What happens when you don’t have reliable facts? • Title issues • Use restrictions? • Outstanding taxes? • Building Department review and response. • Proof of Approvals needed to close the loan.

12. Suddenly, a heated exchange took place between the King and the moat contractor. Contractor Consultant You A & E team

13. Examples: Tales from the Trenches • Lincoln, Nebraska • Found the perfect site • Located on I-80 at North 27th • Zoned for hotel use and platted • But too expensive • Owner was an experienced developer, willing to accommodate us

14. Site is too large Before

15. Just right! After Went from 108,464 s.f. to 80,956 s.f. Savings of $96,278

16. Next issueLincoln: Siding vs. brick • Broker said, “must have all brick” • Site tour of adjacent and nearby improvements suggested, “must have all brick” • Review of Restrictive Covenants showed otherwise

18. Lincoln: Siding vs. Brick

19. Lincoln: Siding vs. Brick Seek answers that satisfy the owners and the city

20. Lincoln, NE

21. Kansas City, Missouri • Started looking for site in late 2003 • Found site in February 2004 • Site was a “leftover” • Zoned Agriculture • Located between commercial and multi-family residential • Needed to be subdivided • Immediately met with City staff

22. Kansas City

23. Site Kansas City

24. Kansas City

25. Kansas City Site Plan #1

26. Kansas City Site Plan #2

27. Kansas City Site Plan Version 3.0

28. Kansas City

29. Gulfport, Mississippi • Use was approved by right • Found great site on main drag - Highway 49 • 5 minutes north of the beach • Vacated street through property • Relocation of utilities not completed • Discovery of Wetlands

30. Gulfport, Mississippi Wetlands Assessment stated: • “The presence of suspect wetland areas.” • “Saturated soils were observed.” • “The subject property is located within the floodplain of Turkey Creek.” • “Wetlands appear to be an environmental concern in connection with the subject property.”

31. Gulfport, Mississippi http://www.fema.gov

32. Gulfport, Mississippi

33. Gulfport, Mississippi • Site placed under contract 7/7/04 • Due to uncertainty, progress was delayed • Phase I was completed 1/24/05 • Wetlands cited • Wetlands Delineation completed 2/15/05 • Wetlands Report submitted to USACE 3/15/05 • Jurisdictional determination received 5/10/05

34. Gulfport, Mississippi • USACE report posted 6/1/05. Public comments due 7/1/05 • Mississippi Dept. of Env. Quality approved Stormwater Pollution Prevention Plan (SWPPP) on 7/18/05 • Mississippi Dept. of Marine Resources (MDMR) meeting scheduled for 8/29/05.

35. August 29, 2005 • Hurricane Katrina made landfall. Be flexible, as things often change

36. Gulfport, Mississippi • Took three weeks before contact was re-established • MDMR meeting re-scheduled for 10/17/05 • USACE permit received 12/13/05 • Land closing occurred 12/21/05 • Notice to proceed issued 2/08/06 • Certificate of Occupancy received 2/7/07

37. Gulfport, Mississippi

38. Other things to consider… • Public opposition • Threatened species • Pygmy Owl, Saguaro cactus, groundhogs • Archaeology • FAA • Historic Preservation • Contamination

39. Work with the experts • Research • Site Selection • Legal • Architectural • Civil • Environmental and Soils

40. Questions? “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.” Winston Churchill