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I've been on the engineering/consulting side of land development for quite a few years so I may be able to offer a little outline. It sounds like a buy and hold on the land your thinking about wouldn't be a great idea. Typically buy and hold works out better for county land (pre-annexation, zoned for agriculture) or if it still zoned agriculture within city limits, otherwise your paying residential/commercial rate taxes for who knows how long. It sounds like the piece your looking at is within city limits or just on the outskirts. If your even thinking about subdividing and selling lots you'll want to get a consultant on board sooner rather than later. Doubly so since you've never done this sort of thing before. Be prepared to pay a lot up front as land development is all about upfront cost for a, hopefully, large payout. If I was doing the project I'd want a concept plan so I could put together a pro forma. I'd take that concept plan to the City/county planner and get some quick input on it. I can't tell you how many projects have gone up in flames because the developer didn't consider stormwater management or they required larger public road improvements. Since you said state road you'd take it to the DOT too as they'll have some sort of LRTP or connectivity they may want you to follow. I'm guessing you'll be on the hook for: Public sewers Public Water Stormwater (both water quality and water quantity) Permit costs Dry utility extension (gas, electric, cable) Public Roads Improvement District Costs That's just for possible pubic costs. You'll still have to fund grading/services/landscaping/ect. Once you get these parameters defined you can put a cost together add a contingency fee and compare to see if the project works. If your still in the black then your finally ready to put an option on the land and begin your due diligence. You'll want a phase II assessment to check for wetlands, stream buffers, conservation, and historic landmarks. You'd be pretty drat surprised how often historic features crop up in development with most of them being unmarked cemeteries. You'd also do the ALTA survey at this time to confirm easements and covenants. I'd recommend getting a geotech out their at this time to do borings to check for rock/ground water issues. Once your phase II and ALTA come back clean you'd buy the property and start the fun stuff. Your consulting firm should submit plans for permit, help you hire up contractors, and be there for you to yell at when poo poo goes wrong. Hopefully in the year+ it takes you from concept to selling lots the residential market is still strong and you turn a profit. Even if you don't go the subdivision route you'll still be doing most of the above, minus the public improvements, to place a private residence on the land. You mentioned wells/septic for sewer and water. Never dealt with Maryland before but DNR's have been trying to stop septic systems going in for properties with "reasonable" access to city/public sewer & water. Obviously has huge impacts to your development so I'd get that cleared up first thing. Anyways, you could always put the option to buy before starting the concept planning if you so desire. Developers around here do it both ways. Keep us posted, I've been kicking around the idea of developing my own piece of land so I'd be curious if you go through with it.
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Feb 11, 2015 05:21
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| # ¿ May 11, 2024 20:26 |
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