Analyzing Subdivision Proposals

1
Chapter 20

• Analyzing Subdivision Proposals

2
Overview of the Subdivision Process

• Subdivision ventures grow out of developers
  perception of unsatisfied demand for certain
  types of buildable sites.
• Implement site acquisition strategy
• Title acquisition, land planning, land survey
• Physical improvements follow surveying process
• Sale

3
Location Decisions

• Subdivision location decisions must be responsive
  to needs of ultimate users
• Subdividers also need to consider current and
  potential uses of abutting sites

4
Coping with Regulatory Requirements

• Governmental land use control is exercised
  through zoning laws and master land use plans.
• Small-scale subdividers may limit land
  acquisition to appropriately zoned tracts
• Large-scale subdividers frequently develop plans
  requiring extensive rezoning and government
  approvals
• Municipalities seek to influence level of
  subdivision activity through control over public
  utilities
• Capacity
• Special assessments

5
Creating the Subdivision Plan

• Contents of land plans vary with size of
  developments
• Large-scale plans divide area by specialized use
  categories
• Modest subdivision plans may simply plot
  individual sites and make provision for utility
  easements

6
Financing the Project

• Subdividers use land acquisition and development
  loans to raise capital
• Lenders usually disburse loan proceeds on
  piecemeal basis as improvements are completed
• Most lenders view subdivision loans as more risky
  than construction loans
• Subdividers depend upon proceeds form land sales
  for funds to repay loans
• Project marketability is vital