LAND ACQUISITION AND

DEVELOPMENT -

SESSION III

MATT KROLL, WILLOWSFORD

HOWARD B. KATZ, NVR

ALICIA SKOUG, DREES HOMES

RYAN CONNOR, URBAN ENGINEERING

OVERVIEW OF SESSION III

• General Discussion

• Land Acquisition – Continued from Session II

• Engineering

• Land Development

• Case Study: Bethesda Mews

ACQUISITION – THE GROUND

ENGINEERING

CONSTRUCTION

TIME VALUE (TIME = MONEY)

• Cost of Land = $10M @ 9 % – Cost per year = $900,000/yr

– Cost per month = $75,000/mo

– Cost per day = $2,500

• Time to Process – Zoning = 12-24 mo

– Construction Plan = 6-12 mo

– Land Development = 6-9 mo

– Home Construction = 4-9 mo

– Time from Zoning – Home Settlements = 2-4 years for move in

LAND ACQUISITION – THE LAND

• Raw Land – cost vs. risk – Subdivision Required

• Entitled Land – cost vs. risk – Approved by County – “Shovel Ready”

• Finished Lots – cost vs. risk – Builder Buys the finished lot

– Developer Obligations

FINISHED LOT CONDITIONS

Developer

• Lots recorded

• Bonds and Permits

• Roads Base paved

• SWM

• Community Landscaping

• Off-Site Improvements

• Private Utilities available

• Amenities

Builder

• On-Lot Erosion Control

• Home Construction

• Section Snow removal

• Interim Grading

• On-Lot – Walls

– Excavation

– Utility services to house

– Driveway

– Permits

LAND ACQUISITION - FEASIBILITY

– Time Value – time to build

– Acquisition Budget- proforma

– Competitive Market Analysis (CMA)

– Feasibility Study

– Preliminary Engineering

– Product fit

– Purchase Contract Conditions

LAND ACQUISITION - PROFORMA

– Assumptions on raw land vs. finished lots

• Development cost (raw)

• Time (raw)

• Deposit

• Interest to carry land (raw)

• Sale price

• Absorption

• Overall Margin or IRR (Internal Rate of Return)

LAND DEVELOPMENT COSTS

• Soft Costs

– Studies

– Architecture Design

– Engineering &

Landscape Architecture

– Environmental

– Inspections

– Bonds and Permits

– Legal

– Submission & Inspection

• Hard Costs – Clearing & Grading

– Rock Manipulation

– Earthwork

– Erosion Control

– Pipework

– Streets and Sidewalks

– Dry Utilities

– Structures

– Bond Release

– Amenities

– Hardscape

LAND ACQUISITION – CMA

• What is the competitive market

• Competition

• Absorption

• Average square foot price

• What are they including

• Who is selling well and why

• From this you can determine a market

LAND ACQUISITION – OTHER CONSIDERATIONS

• Size of pad – fit product (finished lots)

• Environmental – wetlands and hazards

• Geotech – soil and rock

• Title Issues

• Utilities

• Land plan/topography

• HOA Docs/Design Guidelines

LAND ACQUISITION – EXAMPLE OF ISSUES FOUND IN STUDY PERIOD

• Acidic soils - remediation

• Covenant from neighboring property

• Rock hauling

• Hazardous waste /clean up

• Age of finished lot

• Zoning density

• Architectural review

• Plans and Specifications…….

ZONING - ENTITLEMENT

– Rezoning of Land: Changes designation of land for greater density or different use

– Comprehensive Plan

– Waivers and Modifications

– Traffic and Transportation, Schools, Environment, SWM, Parks, Tree Preservation, Affordable Housing

– Proffers

• Mitigates possible impact of additional density or use.

– No Expiration

SAMPLE ZONING PLAN

PRELIMINARY PLAT – VESTING

• Components of a Preliminary Plat

– Vesting of Density and Design Criteria

• Significant Governmental Action

– Conceptual Layout

– Limited level of detail

SAMPLE PRELIMINARY PLAT

THE CONSTRUCTION PLAN

Construction Details, Layout and Design, Grading, road design, stormwater, sewer, domestic water, fire coverage, landscaping, erosion and sediment control, water quality, floodplain, environmental features, soils, parking, amenities, etc.

SAMPLE GRADING PLAN

SAMPLE ROAD PROFILE

SAMPLE – STORM WATER MANAGEMENT

SAMPLE - WATER QUALITY

SUBDIVISION DOCUMENTS

The plat is the picture and the deed is the words.

– Deed

– Plat

– Homeowners Associations: Maintenance responsibility of commonly owned property

SAMPLE RECORD PLAT

BONDS, PERMITS & INSPECTIONS

• Bonds

• Permits – VDOT

– County Grading

– County Performance

– Water and Sewer

– Environmental permits (Wetlands, SWM, monitoring)

• Inspections - Bond Release – Inspections

– Street Acceptance

– Maintenance Bonds

BID AND CONTRACTS

• Construction Bid

– Turn Key

– Bid to 3

– Classified vs. Unclassified

– On-site vs. Off-site • Borrow or Excess

• Construction Contracts

– Scope

– General Conditions

– Cost and Time

– Plans and Specs

– Insurance

– Substantial Completion

– Dispute Resolution

THE CONSTRUCTION PROCESS

• Clearing & Erosion Control

• Earthwork

• Pipework

• Road construction

• Private Utilities

• Final Paving – Bond Release

CLEARING & EROSION CONTROL

EARTHWORK

EARTHWORK

PIPEWORK

ROAD WORK

DRY UTILITIES

• Power

• Phone

• Natural Gas

• Cable

• Utility Relocation

LAND DEVELOPMENT – OTHER CONSIDERATIONS

• Alternate sewer and water

– Pump Stations

– Wells and Drain Fields

• Wetlands and Streams

• Off-Site Improvements

– Utility extensions

– Roads

• Off-site easements

CASE STUDY

The following case study provides an

additional opportunity to further

understand the land acquisition and

development process.

CASE STUDY

BETHESDA MEWS

BETHESDA MEWS

(AKA AMERICAN COLLEGE OF CARDIOLOGY)

LAND AREA YEAR YEAR

(ZONING) CONTRACTED PURCHASED 44444

9.7 ACRES (R-60) OCTOBER 22, 2010 NOVEMBER 7, 2013

Site is located on east side of Old Georgetown Road just north of Cedar

Lane and NIH. The subject property had an impervious area constraint

due to the high cost of downstream storm water improvements that

would be required if we exceeded the existing office building and

parking lot impervious area of 155,807 square feet. Forest Conservation

Law required a minimum forest threshold of two acres. Category I

Forest protected a retained forest area of 1.97 acres, Category II

Conservation Easement of .30 acres along Old Georgetown Road

provided long term protection of existing trees and met the Master Plan

requirements for preservation of trees along property frontage.

Approved plan incorporated tot lot into environmental site design

feature for storm water management and provided pedestrian

connection from Old Georgetown Road to the Maplewood neighborhood.

Proposed development under the R-60 optional

method that would require

Moderately Priced Dwelling Units (MPDUs)

29 SFD / 5 Plex MPDUs (12.5%)

Subdivision Process Required:

Preliminary Plan

Final Site Plan

Certified Site Plan

Record Plat _______________________________________________________________________________________________________

Variances by Planning Board:

Impact on Critical Root Zones for Protected Trees

Public Street Width Modification

Elimination of sidewalk along one side of Camberley Avenue

CASE STUDY

BETHESDA MEWS

CASE STUDY

BETHESDA MEWS

CASE STUDY

BETHESDA MEWS

CASE STUDY

BETHESDA MEWS

CASE STUDY

BETHESDA MEWS

CASE STUDY

BETHESDA MEWS

CASE STUDY

BETHESDA MEWS