Navigating Zoning, Permits, and Entitlements Without Delays

Many projects encounter unforeseen delays before the actual construction of a building even begins. As an experienced Owner’s Representative, many times these issues arise from lack of understanding of zoning, permits, and other entitlements required by the local and state jurisdiction where the project is taking place.

Zoning, permits, and entitlements and the approvals process associated with them can be a project killer and can be set in motion in the wrong order and with the wrong information leading to unnecessary delays as a project struggles to get off the ground.

The approval process for any project is typically not a straightforward process and can require significant time to obtain everything required for development. Requirements for these approvals can vary by jurisdiction, by type of asset and by complexity of the proposed project. Licenses and permits can vary greatly from state to state and even from city to city for similar projects. In addition, the local approval processes from jurisdiction to jurisdiction can vary significantly.

Strong owner’s representation can be a huge strategic advantage in getting a project’s entitlements in line quickly and efficiently.

Why Projects Get Delayed Before Construction Starts

Many times delays are caused by a series of relatively minor errors that, in time, become insurmountable problems.

A zoning inconsistency gets overlooked during due diligence.

A site plan submittal is made prior to complete determination of required utility configurations and therefore require additional review cycles.

A municipality may require revisions of the plans or information submittals which would require the submittals to go through an additional review cycle.

A public hearing is delayed due to an incomplete documentation package.

A permit package is sent for approval, but for reasons unknown to the owner, the package is placed at the bottom of the pile as other projects go through the approval process more quickly because the coordination between the various consultants is much better.

These are not typical problems but rather typical project risks.

The entitlement process is not a mere check list item in the development process. In actuality, the process of obtaining necessary permits and approvals is one of the most time-sensitive components of any project. Once a project has gone off track with the entitlements, it can cause significant problems later in the development process.

Financing packages come apart, contractors become unavailable, material prices increase dramatically, tenant commitments fail to materialize, and in the meantime, key project stakeholders are pressing for information and updates on the status of the project.

Understanding the Regulatory Hurdles

While every city or town is structured differently and has its own set of processes and rules for handling applications for development, most go through the following set of processes for approval.

Zoning Compliance

Zoning Compliance: Is the proposed use of the subject property allowed by current zoning regulations.

This sounds simple until it is not.

 Questions often include:

• Is the intended use allowed by right?
• Does the property require rezoning?
• Is a variance needed?
• Are there any restrictions on setbacks, height, parking requirements, density or building design?
• Are overlay districts or special planning areas involved?

A site that looks perfect on paper can have major problems due to incorrect zoning assumptions.

Entitlements

Entitlements are formal approvals that establish what can be built on a property and how a property can be used.

This may include:

• Rezoning approvals
• Conditional use permits
• Variances
• Site plan approvals
• Design review approvals
• Subdivision approvals
• Infrastructure coordination approvals

Because entitlements typically involve many individuals including planning staff, special district review boards, elected officials, utility providers and interested neighborhood groups, schedules can quickly become out of control unless the process is actively managed.

 This is where the schedule can start to become very unpredictable unless someone is actively managing the process.

Permitting

 After entitlements have been acquired, permit acquisition may take less time, as long or longer than the entitlements process.

 This can involve:

• Planning and building department review
• Building permits
• Grading permits
• Civil permits
• Utility permits
• Stormwater approvals
• Fire department approvals
• Accessibility compliance reviews
• Environmental clearances

Each permit/submission will have a list of required documentation, time frames for submission and processing and who they will be sent to and who they will be received from.

Submitting incomplete packages almost guarantees delays.

The Cost of Getting It Wrong

Approvals that are late create a host of financial problems.

One late permit can put a project off by weeks or months.

That can mean:

• Code changes,
• Permit fee yearly increases
• Increased predevelopment carrying costs
• Escalating construction pricing
• Delayed revenue generation
• Financing extension costs
• Consultant redesign fees
• Missed market opportunities
• Frustrated investors or stakeholders

Even a few weeks of delays can significantly affect the returns of a project.

 A project that was initially predicted to generate high returns can quickly become much less profitable due to delayed completion.

How an Owner’s Representative Keeps Projects Moving

An Owner’s Representative of substance does more than monitor the progress of a project.

In the Owner’s Representative role not only the progress of the development is monitored, but also proactively anticipating possible regulatory friction that may interfere with the smooth running of the project as part of the services. 

Early Due Diligence

The best time to identify approval risk is before you make any major commitments.

This includes reviewing:

• Existing zoning conditions
• Land use compatibility\entitlement requirements
• Permit pathways
• Utility constraints
• Municipal review timelines
• Political or community sensitivities
• Historic or environmental considerations

In summary, there’s much that can be discovered early in the development process that can save the owner from problems later.

Building a Realistic Approval Strategy

 One of the biggest mistakes in development is assuming approvals will happen faster than they realistically can.

 A good owner’s rep develops approval timelines based on reality as opposed to best case scenario assumptions of how approval will occur.

 That means understanding:

• Review meeting calendars
• Application deadlines
• Required sequencing
• Agency dependencies
• Likely revision cycles
• Public hearing timelines (if applicable)

A realistic plan protects the overall schedule.

Coordinating Consultants

 Architects, civil engineers, land use attorneys, permitting specialists, and utility consultants, among others, are typically involved as consultants.

Without active coordination, communication gaps create delays.

An owner’s representative orchestrates all the consultants to keep all submissions on track and ensures that all are aware of the respective deadlines and who is accountable for what.

That coordination matters more than many owners realize.

A great consultant team can lose time if there is no owner’s representative. 

Managing Municipal Relationships

Approvals involve people, not just paperwork.

As noted before, municipal staff members have a lot on their plate managing other priorities, workloads, and the plethora of procedures required to process plans and applications.

Professional communication with municipal staff, rapid response to their comments and notes, and a project leader that does not allow friction to impede the process is important to obtaining timely approval.

Relationships do not supersede an owner’s and design team’s compliance with municipal requirements. However, strong relationships with municipal staff can yield more clarity and responsiveness from local government.

Tracking Issues Before They Become Problems

 Small issues become expensive when they sit unnoticed.

 A missing consultant response.

 An unresolved code interpretation.

 A utility review stuck in limbo.

 A public comment concern that needs proactive attention.

 An owner’s rep tracks the small issues that can develop into very expensive problems before they become problems on the critical path of a project.

Protecting the Bigger Picture

 The owner should be focused on investment decisions and stakeholder priorities. Issues that impact the project’s ability to meet the owner’s objectives should receive his/her attention. Permit and development issues that impact the project’s timeline should be handled by the owner’s representative.

They should not spend their time and energy dealing with issues such as permit comments, deciphering municipal codes and dealing with agency responses.

That’s where experienced owner’s representation creates real value.

 The benefit is not simply paperwork management.

 It’s protecting timeline certainty.

 It’s reducing avoidable cost exposure.

 It’s creating cleaner communication among all parties.

 This helps ensure a project can progress from concept through to construction with the fewest surprises along the way.

Final Thoughts

 Development approvals are often unseen but can greatly affect the course of a project. Entitlements, zoning and permits can be a controlled process but can quickly become a source of frustration for all parties involved.

Zoning, permits and entitlements can be a well controlled process or another component of a project that creates unnecessary problems.

The difference between a controlled process and a source of problems for your project is preparation, coordination and leadership.

Our experienced staff is here to help and provide the best owner’s representation, ensuring that risk is identified early and the required steps and individuals are assembled to move the project forward in a disciplined and organized fashion.

Because the most expensive delays are often the ones that could have been prevented.