SITE SELECTION
AND THE DEVELOPMENT PROCESS
By: Thomas J. Filazzola, P.E.
Finding the right site for your business is arguably one of the most important aspects of the small business start-up process (see: Where to Start). However, bringing your business plan from concept to reality can also be one of the most difficult and complicated issues for a business owner to deal with.
Of course the demographics of the neighborhood and other marketing aspects are critical at determining what constitutes a good location, but that's only half the battle.
Once you get past the business portions of the deal, you need to investigate and analyze the development issues you will face when coursing through the permitting (or entitlement) process with the various jurisdictional agencies to really find out if it truly is the right site for you.
The following is a partial list of the myriad items that should be addressed in the early phases of your project, and why they can be important. Obtaining these reports and surveys with the help of your civil engineer can save you both time and money during the course of building your business. Although common in many projects, they are most prevalent with freestanding sites, where the municipal ordinances and codes can have the greatest impact on your construction budget and development plans.
- ALTA Survey – Understanding the boundaries and physical elements of the property in question will be critical when planning development, renovations, or even if maintaining existing conditions. These items will impact the use, yield and functionality of the project.
- Title Report / Insurance – A Title Report should identify any easements or Covenants & Restrictions that may encumber your business and will provide confidence in the ownership and “clear title” status of the property.
- Zoning – In most, if not all municipalities, zoning ordinances and codes govern the development of the site. Issues such as building size / location, parking, drive thru stacking, etc. can be dictated by the code, often not exactly as you might have first envisioned or hoped for. Not sure of your particular zoning? Our ever-growing National Resource Map has links to many of the largest municipalities around the country.
- Signage – With most businesses, identification is essential. But almost always and even more so now than ever, many jurisdictional agencies are trying to minimize signage, both free-standing and building signs. Furthermore, sign lighting has also become a point of contention.
- Access management – If your customers can't get in and out of your site or have difficulty maneuvering within it, your business will suffer. Traffic volume is only one aspect to consider, do not overlook traffic signals, directionalized traffic flow, potential takings, or other potential access related restrictions or prohibitions.
- Environmental matters – This can be a minor issue, perhaps handled by the land owner, or it can be monumental in scope and importance and suck the life out of you. If you have any doubts or the property was or is a high-risk use (gas station, factory, dry cleaner, etc) a Phase 1 environmental assessment (and Phase 2, if necessary) should be ordered. It’s very likely that your lender will require you to have one as a condition of funding your project in any case. Although these studies will address the subject property you also need to be aware of the surrounding properties and the community as well. Sometimes other restrictions can affect the project such as Scenic vista protection ordinances, River corridors and wetlands, historic or archaeological districts, etc.
- Civic Associations – Never before has the public been so involved and impactful to the development of private property than now. Civics, community boards and others wield considerable influence on the entitlement process and NIMBY-ISM (not in my backyard philosophy) has become commonplace. Try to prepare for this by understanding the issues that other applicants have faced.
- Sewer & Water availability – In certain areas, these factors can limit your yield (That’s the amount of water that you’ll be allowed to use and then discharge into a public or private sewer system). This information is generally accessible via public records and should be addressed with the utility companies at the onset of your project.
- Handicap accessibility - This is generally an issue when retrofitting an older building or site. Remember, many buildings on the market today were originally constructed before the laws were in effect. It’s also not uncommon to find that these items were often ignored or neglected in the past. Some elements can prove difficult or too expensive to bring to current ADA (American’s with Disability Act) code. This is an item that should be addressed with your architect or engineer and always budgeted for.
Although this list looks to be extensive, it’s actually far from all-inclusive. Every building project is unique and must be analyzed on a case by case basis. For even the most savvy businessman, builder or developer it can be a maze of potential obstacles hindering the successful launch of your business.
Being surprised by any of these items can lead to frustrating delays and costly budget overruns to even the best planned projects. Getting ahead of the curve can be achieved by retaining the right professionals to help your project get off to the right start.
Finding the right land use attorneys and civil engineers to help you develop your project early on can help you avoid costly and time consuming problems.
Having a local civil engineer provide you with a Site Evaluation Report and/or Zoning Analysis Report will help identify the often hidden hurdles and dangerous details that can stall or even prevent the success of your project.
Be prepared for it all, by being “Smart from the start”.
TM
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