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Development Approvals:
Public PolicyCivic Process
Public Engagement
What matters to UDI in 2016 and beyond.
Why are we here?
1.We have always worked with you, and want to continue. We know there’s issues with housing + development in Fraser Valley.
2.To fully understand land development, need to understand what’s happening in our region and the Big Picture.
3.We are in this together: you create the policy + we implement it. When we can’t implement your policies – we all fail.
4.Our business is inherent with risk.
5.Solutions we can work on in 2016.
Fraser Valley Municipalities
Collectively need to understand the big picture.
Big Picture + Land Development
(1) It’s a Risky Business
(2) The Region is Growing
(3) A New Class War
(4) Housing Message Has Changed
Approvals
Land issues
Construction
The market
Global forces
Financing
The Real Estate Development ProcessDevelopment Concept
ConstructionNegotiation and Approvals
Feasibility AnalysisOperation for Sale
Idea /
Dream
Use
Site
Vision /
Goals
Marketing
Architectural
Design Issues
Finance
Project
Management
Market
Research
Evaluate Site:
• Architectural/
Engineering
• Legal
• Acquisition
• Environmental
• Zoning and
Development
Potential
Rough Cost
Refine Cost Estimate
Identify Realistic Sources
of Finance
Review Cost Estimate & Form
Financial Program (goals)
Select
Use /
Site
Set Specific
Market Goal
Start
Architectural
Program &
Schematic
Preliminary
Market Test
Detailed Market
Analysis
Design
Marketing
Strategy
Refine Program and Schematics
Test All Cost Assumptions:
Undertake Development
Proforma
Contact Potential
Financial SourcesNegotiate Tentative or
Conditional Commitments
Investigation / Negotiation
with Regulatory Agencies
Implement Marketing
Strategy
Pre-Lease or
Pre-Sale
Initiate Development Entitlements
Working Drawings:
• Architectural
• Mechanical
Construction
Specifications
Detailed Financials:
• Development Proforma
• Operating Proforma
Negotiate Financing Agreement
for Permanent and Construction
Loans
Draft Operating
Management Plan
Acquire Site
Bid Construction
Raise Equity
Arrange
Financing
Guarantees
Close
Construction
Financing
Hire Operating Management
Market to Tenants or Buyers
Sign Leases or Sales Contracts
Contract Construction
Construction
Cash Draws
Construction Progress
and Review
Bonding
Draw
Schedule
Opening
Local Government Code
Inspection
Lenders
Inspection
Equity Pay-in
Schedule
Operating Maintenance and Management
Negotiate Leases / Sales Re-
lease as Necessary
Close Permanent
Financing
Equity Pay-in (if
Scheduled)
Engineering Analysis
Identify Roles Necessary to
Complete DevelopmentDesign General Project
Management System
Identify Project Team
for Various Roles
Estimate Project
Development Costs
CONCEPT
Five Critical Elements: Specific use of a
designated site for an identified market by a
specific development team with a defined
financial program.
Draft Project Development
Management Plan
Identify all Team
Members: establish
roles and project details
FEASIBILITY STUDY
Analysis of all assumptions regarding market, site,
financing, development proformas financial requirements,
team, and roles. Suggested modifications or alternatives
for concept to be feasible.
GO/MODIFY/SELL
Manage Team
Members’ Work
Coordinate Interaction,
negotiate trade-offs
Manage All Team
Members’ Work as Per
Agreements
DEAL
All elements of project made definite. Letters of
commitment, contracts and load documents
binding all participants to the specific elements
of the deal.
GO/MODIFY/SELL
Construction Oversight or Management
Through Construction Manager or Architect
Marketing OversightPublicity Event for
Opening
PROJECT
Completely built, leased building, passing all
inspection.
Owner’s Responsibility:
• Manage
• Pay Mortgage
• Report to Investors
OPERATIONS
Effectively Rented / Sold Project,
meeting financial and other project
goals.
NO GONO GO
NO GO
MODIFY
GO
SELL
MODIFY
GO
SELL
Community Consultation
Submit Application
Rezoning / Development Process
Rezoning / Development Approvals
Prepared for UDI by Chuck Brook
Risky Business
Approvals are one part of an inherently complex, risky process and business model.
Our region is growing. Fraser Valley: big growth to 2041.
Yes, Single Family real estate prices have increased.
Don’t confuse Vancouver West Side for the Fraser Valley, when it comes to housing policy.
Fraser Valley issues are unique to this sub-region.
What the heck is going on?!
The old class war may be over (e.g. Occupy era): the new politics of class is just beginning.
A widening fracture between housing “winners” and “losers.”
And real estate is akin to 21st century currency.
Policy alone cannot change the market. But strategic intervention can mitigate negative impacts on our overall housing strategy.
This public sentiment is creeping into land use policy. There is also great concern, borderline pettiness and xenophobic thinking.
(4) New Conversation is Emerging : housing dialogue on the street.
Be careful: media is not public policy.
Policy should be a function of public good:Housing affordability;
Environmental best practices;Complete neighbourhoods;
Social infrastructure.
Big Picture sets context for our industry and working with you.
Risk : Growth : Public Policy : Communications
What does it mean for 2016 and beyond?
Where does this leave us with approvals in 2016?
1. Clarity + defining our sandbox
2. Consistent timing
3. Allowing for innovation
4. Transition at City Hall
5. New Communication Approaches
Pre-Application
meetings with City
Develop your plans and
consult the community.
Application to the City.
City review of plans.
Planning / Design Panel
1st/2nd Council
Reading: Project Intro.
Public Hearing date.
Public Hearing:
Delegation by developer.
Delegations by public.
3rd Reading:
Council vote.
Approval in principle?
4th Reading:
Development Agreement.
Final enactment of bylaw.
NO
YES
Civic ProcessCouncil
Process
TWO YEARS ONE MONTH
????
Years of work before we come to Council
Local Government Act (Provincial)
Growth Strategies (Regional)
Official Community Plan (Municipal)
Neighbourhood Plan Policies
Development Permit Area Guidelines
Zoning
Development Agreement * (infrastructure, servicing agreements, timing of amenity construction, phasing agreements – do not underestimate this process).
Development Permit
Other Guidelines
Other Agencies – Local, Regional, Provincial, Federal, First Nations
Due diligence before we come to Municipal Staff
Geotechnical and subsoil conditions Environmental contamination and remediation Location and precedent / adjacent land uses Transportation + Access Issues Protected hazard Zones Topography Natural features + wildlife habitat Historical Buildings / Artifacts Creeks, water courses Archaeological features & First Nations Agricultural Land Reserve
Each one of these has an implication on our proforma.
Give us a sandbox… e.g. sandbox edges, boundaries and volume of sand. Clarity,
consistency in process.
2. Time
Why time matters:
We know approvals take time, but one of our biggest pressures is time:
Financing deadlines; closing dates; non-refundable deposits; marketing windows in spring/fall; “election cycles”;
occupancy permit delays.
e.g. Client loss half ownership in project from election delay.
Industrial complex with $200,000 monthly draw.
3. Innovation.Our industry is adapting.
– rules may need to keep up.
3. Transition at City HallLoss of experience + corporate memory
Quote from Public Hearing X:
“I’m not against development. This is just the wrong project for this location. It’s too tall + dense, and out of
scale for this neighbourhood. There will be traffic, shadowing, wind tunnels, privacy issues – and City Staff
has a flawed public process. Also, city politicians are corrupt, Staff is stupid, and developers are only
motivated by greed. But I’m not opposed to development. Wrong place for the wrong development.
At the wrong time.”
Communications
We know the public approvals process can be difficult.
We face great financial risk :: you face great political risk.
Collectively need to create a more informed discussion.
Find a better way to communicate with those who are most affected, not just the ones who attend the most open houses.
Final thoughts on Approvals
1. In a time of uncertain community sentiment, we need stability and certainty of process in your municipal halls.
2. Let us adapt and be innovative when it comes to great ideas; Talk to us regularly about policy changes.
3. Need to work together together on transit – that’s the “new land” we need to grow our region.
4. Need good transition of retiring staff to new staff – transfer of knowledge. City Hall needs a good transition strategy.
5. Collectively need to manage communications – we know how hostile it can be for you and us.
Thank you to Fraser Valley for being a community partner with UDI.
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