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Zoning Due Diligence: A Critical Step in Redevelopment

When purchasing vacant land, commercial, or industrial property for redevelopment, conducting thorough zoning due diligence is essential. Skipping this step can lead to unforeseen complications and delays, jeopardizing the success of your project. Below is a comprehensive guide to ensure your zoning due diligence is both thorough and effective.

Steps for Zoning Due Diligence

  1. Negotiate a Due Diligence Period
    • Secure a 30- to 45-day due diligence period in your purchase agreement. This timeframe allows you to back out of the deal if zoning or other issues arise.
  2. Research Zoning Entitlements
  1. Start with the Property Appraiser Website: Locate the property’s zoning district using the GIS map feature. Activate the “Legend” tab and select the zoning overlay to identify the district. For instance, a commercial property might be labeled “GC-2,” which typically indicates a semi-intensive General Commercial zoning district. Sometimes, the property appraiser does not publish zoning information. If so, check the city or county’s website for a zoning GIS map to confirm zoning. In rarer cases, the city or county will not have a GIS map, but instead will have a static PDF map. If this is the case, I recommend requesting a zoning verification letter.
  2. Consult the Land Development Code: Access the city’s land development code, often hosted on Municode’s website. Search for the zoning code (e.g., “GC-2”) to confirm allowable uses and development restrictions. Note that some cities consolidate allowable uses into a master chart for all zoning districts.
  3. Verify Consistency with the Comprehensive Plan: Check that the zoning district aligns with the comprehensive plan’s future land use designation. In rare cases where inconsistencies exist, a future land use amendment may be required—a process that can take one to two years.
  4. Check Platting Requirements
  5. Confirm whether the property has been platted. If not, the city may require platting or re-platting, which can take one to two years. This requirement may also apply to subdivided platted lots.
  6. Evaluate Lot Size and Setbacks
  7. Review minimum lot size requirements and setback regulations, including front, side, and rear setbacks. These parameters affect the feasibility of your development plans.
  8. Obtain an ALTA Survey and Phase 1 Environmental Study
  9. For vacant land or commercial properties, commission an ALTA survey and a Phase 1 environmental study. These assessments help identify site-specific issues and potential contamination that could hinder development.
  10. Seek Zoning Verification
  11. If ambiguities exist in the code, request a zoning verification letter from the local jurisdiction. While this document can clarify how zoning regulations apply to your specific property, it should never be relied upon without independent research. If the city provides incorrect information and the code states otherwise, the verification letter will not serve as a reliable basis. This underscores the importance of thorough due diligence, and why our firm provides value in navigating these complexities.
  12. Submit a Public Records Request
  13. Request all development records related to the property, including site plan approvals and development orders. Previous orders may impose restrictions, which are typically recorded and can also be found in the title commitment’s Schedule B2 exceptions.
  14. Schedule a Pre-Application Meeting
  15. Arrange a meeting with planning staff to discuss your project. Having an architect prepare a concept plan in advance ensures the feedback you receive is targeted and actionable.
  16. Review Parking Requirements
  17. Verify parking requirements in the zoning code. Inadequate parking provisions can derail projects, so ensure your proposed development meets these standards during the due diligence phase.

Conclusion

Conducting zoning due diligence is a critical step in the redevelopment process. By following these steps, you can identify potential hurdles early, mitigate risks, and ensure the viability of your project. Our firm has extensive experience guiding clients through zoning and land use complexities. Contact us to ensure your redevelopment project proceeds smoothly and successfully.

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