Real Estate Development Exam 1 Flashcards

Real Estate Development Exam 1 Flashcards Development AgreementsA contract between a local government entity and a landowner that defines the entitlement obligations of each party with respect to the development of the property. In a typical agreement, the developer receives assurance that the development standards and fees will be fixed as of the date of the agreement for the life of the agreement.By right approvalsApprovals for developments that are consistent with the rules and regulations. These can be approved without any further action.Traffic and transportation consultantA person who measures the impact of the project in terms of trips generated and the impacts of those trips on road segments and intersections. Improvements to mitigate the impact of projects on the surrounding community are identified as part of this process.Designated Development areaSpecify areas of more or less density. Focuses development investment.Planned Unit DevelopmentA vehicle that allows for more flexible entitlements for a small area or single project.Property ManagersPeople who provide direct oversight of maintenance, repairs, security, and operation to preserve and enhance the property's value. They usually remain in constant contact with tenants, as they are the intermediaries between tenants and the owner.Council of GovernmentsAssociation of local governments and agencies that address regional issues. Membership is made up of representatives of government bodies within a given are.Issues addressed usually can include regional and municipal planning, economic development, and transportation planning.AttorneyLegal specialists who are required throughout the development process, from land use, leases, construction contracts, purchase and sale agreements, and the rezoning and entitlement process. They also set up HOAs, convenants, and restrictions.FeasibilityDeveloper conducts or commissions a more formal market study to estimate market absorbtion and capture rates, conducts or commissions feasibility study comparing estimated value of project with cost, processes plans through government agencies. Demonstrates legal, physical, and financial feasibility for all participants.

Public Private PartnershipWhen a private developer works with public authorities and public resources to develop a project that has both public and private components.Specific PlansText, maps, statistical tables and other graphs that describe the project, the location and setting, the legal authority for the plan, the project's consistency with the general plan, and the mix and location of land uses. It may provide detail on design standards, conditions of approval, phasing, public financing, and steps for implementation and enforcement.Marketing and Public Relations Consultants People who communicate the project vision to the uses of space and the community at large. They translate the benefits of the project into imagery and material to create an image to appeal to the target audiences.Special tax districtMechanism that manages the entitlement process with a sort of mission, either to fund infrastructure or to solve environmental issues.Urban designerA person who coordinates individual buildings with public spaces, open spaces, and the larger neighborhood.Public Finance ConsultantA person who assists in the creation of public debt instruments to finance improvements that benefit the general community.AccountantA person who keeps the numbers straight, from basic bookkeeping to reporting to the securities and exchange commission. They review and validate project financial projections and ensure compliance with state and federal regulations on public and private investment offerings.SubdivisionThe partitioning of any unit of land for the purpose of sale, leasing, or financing.Risk stages1. Land without entitlements2. Land with entitlements3.Land with entitlements and basic infrastructure4. Vertical Buildings Completed (Unleased)5. Vertical Buildings Completed and Leased Property, asset, and portfolio management Owner oversees property management, reconfiguring, remodeling, and remarketing space as necessary to extend economic life and enhance performance of asset; corporate management of fixed assets and considerations regarding investors' portfolios come into play.AnnexationsWhen the property of a project is integrated into the town that is approving it.Transferable development rightsA device to move densities or other entitlements from one planning area to another. The planning areas may be located within a larger master plan or may be separated by geography and ownership. In the former situation, the developer is afforded a mechanism to adapt to changing

market conditions or to plan a complex site more creatively.Application PhaseDeveloper- Drawings, maps, all presentation material that is needed.Public Staff- Routes application through agencies and summaries responses.- Public notice of hearing- Staff Report

transect zoningA system that establishes six areas of increasing density as

one moves toward the urban core: rural preserve, rural

reserve, edge, general, center, core.Permanent LenderFirms that finance the completed project through a long-term mortgage. They essentially take over financing from the construction lender. May have a wide range of terms, involving fixed or variable interest rates, amortization periods, and repayment dates. The size of the permanent loan is determined by the value of the property and the cash flow that the property generates to service debt.Land PlannerSomeone who is engaged for large, multi-structure projects such as a master-planned community. They help create a good site plan that maximizes the use of property, taking into account topography, circulation, and land uses.Formal commitmentContracts, ofter contingent on each other, are signed.Developer may have all contracts signed at once; joint venture agreement, construction loan agreement and permanent loan commitment, construction contract, exercise of land purchase option, purchase of insurance, and prelease agreements.Civil EngineerProvide insight as to whether civil systems meet health, safety, and welfare requirements. Also used to help design and construct infrastructure, such as streets and systems for water, sewer, gas, electricity, telephone, cable, and storm drainage.VariancesLand uses being allowed where not normally permitted in the applicable zone.Concept PhaseDeveloper- Identifies site and conducts feasibility- Conducts stakeholder outreach Public Decision PhasePublic Officials- Public hearingsPublic Staff- Summarize and facilitateDeveloper- Address questions and revise plans as necessary Noise ConsultantA person who works with models that measure the impact of noise emanating from the project and the impact of noise from surrounding sources that may affect the project after occupancy.Leasing Agents and Sales BrokersPeople hired by the developer to implement the marketing plan. They sell or lease space to prospective buyers or tenants.Zoning OrdinanceLocal law that addresses the specific conditions under which land may be developed.Hazardous Substance ConsultantA person who creates a "Phase 1" report that identifies potential or existing environmental conditions at a site, on the basis of historic uses and known environmental issues at the property and in the vicinity. If hazardous materials