Even the most experienced developers on the market have run into problems with locations selected for development, oftentimes at great cost. While it may be impossible to foresee any and all possible issues with a site, focusing on the site selection process and working through this with a skilled team is key to ensuring a successful development project.  Site Selection is a multi-faceted process that includes the following:

• Identifying Risks/Rewards in the planning process

• Location of Project

• Understanding Local and State guidelines

• Permitting Process

The entire process begins with the selection of a Design/Builder to lead you to success.

Role of Design-Builder  - Leading the project 

A skilled design/build firm like Senate Construction will lead a project beginning with the site selection process through permitting and construction. Working with architects, civil and structural engineers, the design/builder will lead the process and along the way will identify risks and provide a dynamic budget for the project and a reasonable timeline to completion. Risks identified will affect permitting design and budget. Knowing potential pitfalls and ongoing costs will assist in better managing the project and making “Go” or “No Go” decisions along the way.  This input will allow you (the project owner) to evaluate the budget and your projected return on investment throughout the project identifying risk/rewards in the planning process.

Questions Design/Builders Focus on:

• Does the project’s scope comply with local zoning?

• Is this type of project allowed under published zoning guidelines?

• Is this location a complete greenfield site? 

• Are there utilities currently on-site? What are the lead times for Utilities onsite?

• Is City/Town Sewer/Water readily available?

All of these factors will affect a project’s budget and timeline.  Sewer/water connection costs must be evaluated as part of the project due diligence and may affect both the budget and schedule. These costs must be evaluated and if outside of projected cost or timing, they should be accounted for in the projects risk register.

Location of Project:

There are many reasons developers select a particular location for a project with hours of research behind these outcomes. During this process, Senate will meet with the Local Business Development Office, who can assist you in understanding the current business climate of a location.  Is the project you are presenting favorable to the town? What is the current business climate?  In many cases, these offices will assist in positioning the project. Senate working with these resources will also start to court acceptance with the various department heads of the municipality. Conducting 21 E Testing is also mandatory to identify any buried hazardous waste or barriers on your project site that will need to remediated. The cost to remove and adequately dispose of this waste can be extraordinary and can often times negatively affect a project. Additionally, Senate recommends contingencies on a Purchase and Sale Agreement that allow a buyer to back out of a purchase if the permitting will not be allowed or will exceed projected costs.  In some cases, zoning guidelines can drive a project cost beyond acceptable parameters or if a variance is required, the cost to have this approved or extend a timeline for approval can negatively impact the budget and the potential return on investment.

Understanding Local and State Guidelines:

Everyone who has even dabbled in real estate development understands the complexities of zoning. But zoning requirements are just the starting point. At Senate, we review a long list of questions to find any potential problems with a project that may be costly in dollars or time. The key is to identify these upfront, assign a value to correct as well as develop a timeline to meet these requirements. Some of these questions include…..

• Is the type of business planned compliant with the zoning guidelines for the property? 

• Is the location large enough to accommodate the project?  

• What are the setbacks for the property? 

• Is there enough area to meet the parking requirements for the proposed staff?  

• Who are the abutters? 

• Is this a favorable situation or could abutter pushback present delays to permitting that your budget cannot absorb without financial impact?

• Is the location within a conservation jurisdiction? 

• Are there any endangered species that will affect permitting? 

• Does the municipality have any architectural standards that we need to prepare the project for? 

The Permitting Process:

In this phase you are evaluating the time it will take to have a site plan approved.  The pace by which a site plan is approved is set by the local municipality.  An understanding of the local process as well as the pace they work at will influence the time and resources required to have a site plan approved. As we have seen across the Commonwealth, there is a wide range of timelines here so it is key to understand how each municipality may operate.

Site selection and the local approval process can be resource consuming for any organization or developer, no matter how skilled. By engaging an experienced design/build firm like Senate Construction, to lead the process, the project sponsor can focus on their core competency, running their business, developing, and marketing projects. With 30 years of experience across New England, Senate Construction can help guide any project from the all-important site selection process through completion. Feel free to contact Senate at rrose@senateconstruction.com or 978.430.5126 to discuss how we can add value to your project.