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Resort Property Search Sussex County Delaware
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Zoning Process and Cost
in
Sussex County Delaware
WARNING :
If you live in a
Livable Delaware Zone 3 or 4,
your land value has been affected drastically by the
Governor's newest directives with "roadblocks" for
development and new home construction in special
"environmentally sensitive zones" as per the latest
realignment of development districts on the state map.
Those who
are unaware of the latest special zoning may be
inadvertently following the Sussex County land use plan and
attempting to bring a well planned community into the
County, only to find out after 18 months and thousands of
out of pocket dollars spent, that they are being denied by
the Governor's PLUS review and special zoning. Please
contact your local County Councilman, your
state Representative and Senator for further information on
this latest "roadblock" to progress. (This was sent to
me after I requested a review of this page by another person who
is very active in trying to achieve more affordable housing
and a better environment here in Sussex County; Sandra Ware;
Realtor and President of The Positive Growth Alliance
www.PositiveGrowthAlliance.org .)
MY, PRE-Article-Notes: (Article follows in
black...)
It has become recently, notably important, perhaps imperative, that
in order to get land approved for a housing
Sub-Division it MUST be aligned with the Governors Livable Delaware
Directives! To be approved a
project must be in zone 1, or perhaps zone 2 or maybe in some
special cases in zone 3 but not in zone 4 and not ever in a red
striped area which is deemed;
Environmentally Sensitive and ONLY For the Critters
even though such areas may already be well developed and this areas
may already include small towns, villages and numerous developments!
The Governor says NO MORE!
Most Realtors are not cognizant of the
ultimate importance of land being IN Livable Delaware zone one or zone two,
or else! Subsequently, there is land listed for sale as
"development potential" by many sellers and their agents, at fantastic prices of $100,000 to $500,000
per acre. Most of that land is worth perhaps 10% of the listed price or less
because it is in the Governor Minner Do
NOT LIVE IN LIVABLE DELAWARE Zone 3 or 4.
To clarify; the requirements of Zone 1 and 2
will most likely allow new homes for people to live in and zone 3
and 4 will not allow new homes, under current approval guidelines as
demonstrated recently! Even in zone one and two however,
millions of dollars are spent to prepare lands for developments,
before you see any changes on the land to get it ready to build
homes.
Sussex County Delaware is one of the most
desirable places in America to live as demonstrated by the number of
people who want to buy here and are buying here and have been buying
here over the last several decades. As Baby Boomers get closer
to retirement a huge percentage of those millions want to have a new
home in Sussex County as near to the beach as they can afford.
CLICK:
Here is a map showing the Livable
Delaware zones
it comes up in pdf format. Bright Orange is zone 1,
lighter Orange is 2 and yellow 3 which has only a distant
possibility for development. White zones are NOT being approved.
Recently millions and millions of dollars were spent by three
different developers on three different developments which were all
designed Well Beyond the requirements for a development - BUT -
these three fabulous, beautiful, functional and in all ways great
communities, although to be built far, far, better than required
with far more open space, affordable housing, green space, protected
wild-lands and more were turned down. They were turned down because they were not in
Livable Delaware zone one or two. (written by Jody October 20 2005).
The Incredibly Well Considered
Sussex County Land Development Process.
By Frank Kea
and Jody
Hudson
Copyright 2005
One would believe, given the content of most
local newspaper coverage and letters to the editor, that the process
of developing land in Sussex County is not only quick and easy but
is also ill considered by officials and poorly regulated by
governing agencies.
In fact, quite the reverse is true. The
process is heavy with information required at every stage of the
process from zoning to final approval and review upon review by
regulating agencies, so much so that a given project will take as
much as three years or more to move from a contract to purchase the
land to the ability to put a shovel in the ground and begin
construction.
Naturally, the process, timing and cost of a
given development depends on many factors such as size, complexity,
location, whether or not wetlands disturbance is required, whether
or not cultural resource studies are needed and other environmental
resource studies that might be required.
Let’s have a look at the actual process, timing
and costs involved in purchasing, rezoning and gaining the necessary
approvals to develop a community and build and occupy a home in
Sussex County. Keep in mind that the costs indicated are
out-of-house costs and do not include in-house salaries, operating
costs or transfer or other taxes.
We will base this snap shot on a 100 acre, 200
single family detached lot, Residential Planned Community somewhere
around the Bethany Beach area. Our “Example Community” will involve
minor filling of non-tidal wetlands for road crossings over existing
farm ditches. In addition, two old homes sites that may have
historic value exist within the boundary of the property, a common
occurrence in Sussex County.
To all appearances, therefore, this should be a
fast, easy and inexpensive Residential Planned Community to get
approved and permitted.
Now let’s look at how much time, money is
required to gain this fast, easy and inexpensive approval as well as
how much careful consideration is taken both by the Sussex County
Planning and Zoning Commission, the Sussex County Council and staff
and the other County, State and Federal agencies involved in the
plan review and permitting process.
Throughout the process, the public is invited at several points
along the way to question and contribute to the process as well.
For ease of understanding, let us say our
“Example Community” gets started on January 1, 2004.
Market Research and Analysis
4 months (May 1st, 2004,
decision is made to purchase subject property)
Cost - $15,000
Contract for Purchase of Property
From a few days to months, say 30
days (June 1st, 2004 we have signed purchase agreement)
Contract value - $10,000,000
Deposit - $250,000, non-refundable after end of study period.
Due Diligence/Study Period
3 months (September
1st, 2004 Due Diligence must be complete)
Boundary and topographical survey
Phase 1 Environmental Study
Phase 1 Cultural resources Study
Wetlands Delineation and report
Preliminary Traffic Study is
initiated
Legal Advice
Conceptual Land Planning
Preliminary Engineering
Cost - $185,000
- At this point (September
1st, 2004) the Decision is made to move ahead with
the project. “Example Community” property is under contract
with the obligation to close when all approvals are gained.
- $450,000 has been spent.
First Submission of required plans and
other information to Office of State Planning Coordination (PLUS
Process).
2 months (November 1st,
2004)
Preparation of necessary plans,
graphics, reports and applications.
Cost - $45,000
PLUS Hearing
30 days (December 1st,
2004)
Consultants preparation for and
attendance at hearing
Cost - $7,500
Revise Plans and prepare response based on
PLUS comments (Preparation to submit to Sussex County)
60 days (February 1st,
2005)
Cost - $20,000
Complete Preliminary Traffic Impact Study
(must be complete prior to submission to Sussex County)
60 days (April 1st,
2005)
Cost – Already accounted for
Submit to Sussex County for rezoning
hearing from AR-1 to MR-RPC
No additional time
No additional cost
12 month waiting period to get to
public hearing with Planning & Zoning Commission
- At this point (April 1st,
2005) the “Example Community” has been diligently studied,
designed and revised for eleven (11) months by a team of
professionals.
- Our “Example Community” has been
preliminarily reviewed by Sussex County and all involved State
Agencies.
- $522,500 has been spent simply to
reach the point where submission for rezoning is possible.
Public hearing with Planning & Zoning
Commission (April 1st, 2006)
Consultants prepare and submit any
additional information prior to hearing
Preparation of presentation and graphics
Attorney and consultants attend hearing and make
presentation
Cost - $25,000
Planning Commission considers entire
application and public hearing testimony, schedules application
as old business, entertains motion to approve or deny, discusses
reasons, concerns, etc. and (if motion is to recommend approval)
develops conditions of approval as a part of discussion with advise
from Assistant County Attorney and Zoning Administrator and votes.
30 days (May 1st,
2006)
Public hearing with County Council
60 days from P&Z public hearing
(June 1st, 2006)
Preparation of any
additional presentation materials and graphics
Attorney and consultants attend
hearing and make presentation
Cost - $25,000
County Council considers entire application,
public hearing testimony and recommendation from Planning Commission,
schedules application as old business, entertains motion to approve
or deny, discusses reasons, concerns, etc. and (if motion is to
recommend approval) develops conditions of approval as a part of
discussion with advise from Assistant County Attorney and Zoning
Administrator and votes. A vote is not required within any specific
time frame and, depending on the complexity of the submitted
application and materials, the time needed by the Council to take
careful consideration will vary. For our purposes:
4 months (October 1st,
2006)
- At the completion of the rezoning
process, 2 years and 5 months have been consumed.
Note: This example is not a rezoning for the purpose of
an increase in density. The original farm land zoning of AR-1
allowed slightly more homes per acre than the zoning that is
being applied for here. The purpose of this zoning is to allow
a better and more fully planned community as opposed to just the
maximum number of lots per acre. This should allow an easier
and more efficient approval process.
- A thorough review of an extensive
record of plans and materials has been conducted by the Sussex
County planning and engineering staff, the Planning & Zoning
Commission and the County Council.
- All plans and materials submitted
available for public review.
- Two public hearings have been held
after appropriate, legally required publication.
- Everyone who wished to testify
either for or against the rezoning has had the opportunity, all
of which is taken into consideration by both the Planning
Commission and the County Council.
Presuming that the re-zoning application
warranted a positive vote from the Planning Commission and County
Council, our community development project now moves forward into
the final engineering and permitting process.
Final Residential Planned Community Plan is
prepared and submitted to the Planning Commission for review and
approval.
30 days (November 1st,
2006)
Cost - $15,000
Civil Engineers prepare site construction
plans and recordation plats including:
Water system plans
Sanitary Sewer Concept Plan
Sanitary Sewer plans
Roadway and parking plans
Entrance Plans and any off site
traffic/roadway improvements plans
Sediment & Erosion Control Plans
Notice of Intent is filed with
Conservation District
Notice to utilize
Corps of Engineers Nationwide Permit is filed (“Nationwide” permits
were issued by the COE for different types of fills under certain
amounts to ease the process.)
4 months (March 1st,
2007)
Cost - $450,000
Construction Plans are submitted to the
following agencies for review and approval:
Fire Marshall
Conservation District
DelDOT
State Health Department
Private Water Utility
Sussex County Engineering
Department
Delaware State Department of
Natural Resources & Environmental Control
Review, response to comments with
plan revisions timing
Phase 1 Cultural
Analysis is submitted to State Archeologist
State requires Phase 2 Cultural
Analysis
Corps of Engineers
requires submission and review of mitigation plans (Even with the
use of a Nationwide permit, the COE may require that plans be
provided showing replacement wetlands for those filled.)
13 months (April 1st,
2008)
Cost – $125,000
(unforeseen costs not included in basic engineering services)
Final Site Plan is submitted to Planning
Commission for final approval. (Must submit evidence of
all required agency approvals for approval.)
30 days (May 1st, 2008)
Cost – included above
Submit road and sewer performance bond(s)
and Construction Agreements to County insuring that work will be
completed for approval.
30 days (June 1st,
2008)
Cost of performance bonds - $25,000
Pay Sussex County and Conservation District
Construction Inspection and Sediment Erosion Control Inspection Fees
Timing – included above
Cost - $1,100,000
Schedule Preconstruction Conference with
County
30 days (July 1st,
2008)
Cost - $1,000
Consummate purchase of property (begin
paying interest costs)
Timing – 1 week
Cost - $10,000,000
$ 280,000 closing
costs
$ 25,000 per
month interest cost
- With the completion of final
construction plans and permitting, 3 years and 2 months have
been consumed.
- $12,568,500 has been spent on
consulting, engineering, legal, etc. and permitting and closing
costs together with the investment of $10,000,000 in land.
- Land Development Construction can
only now begin.
- No income has yet been generated
from our “Example Community”.
Consummate $8,000,000 loan for site
improvement construction
Timing - already included
Cost - $80,000
closing cost
$17,500
per month interest cost
Prepare marketing and advertising materials,
set up on-site sales team and begin sales process.
Timing – included in construction
timing
Cost - $250,000
Prepare and record Home Owner Association
Documents, hire management company and prepare Association operating
budget.
Timing - included in construction
timing
Cost - $35,000
Site work construction for 50 lot First
Phase
6 months (January 1st,
2009)
Cost - $2,380,000
including interest and 25% of unforeseen site construction problems
- With the completion of the first
phase of land development construction, 4 years and 6 months
have been consumed.
- Lots may now be sold and Home
Building may begin.
- $15,313,500 has been spent
Site work construction for 50 lot Second
Phase
6 months (July 1st,
2009)
Cost - $2,380,000
including interest and 25% of unforeseen site construction problems
Site work construction for 50 lot Third
Phase
6 months (January 1st,
2010)
Cost - $2,380,000
including interest and 25% of unforeseen site construction problems
Site work construction for 50 lot Final
Phase
6 months (July 1st,
2010)
Cost - $2,380,000
including interest and 25% of unforeseen site construction problems
- With the completion of the final
phase of land development construction, 6 years and 2 months
have been consumed.
- $22,453,500 has been spent or
$112,267 per lot.
Many allege that
Residential Community Developments are fast, easy, inexpensive and
approved without adequate review, oversight or inspection.
The truth is, our
development process provides the venue for incredibly well
considered Federal, State, County and Public decision-making.
Public and agency scrutiny
together with the necessary approvals and permits that must be
gained and inspections that are required following all of the
professional research, review, and management by teams of
professionals licensed by the State via the many thousands of
dollars invested for each future lot yields high quality residential
development.
Richard B. Peiser put it this
way:
Developers face a much more
complex world than they did even ten years ago. Everyone has a
stake in their activities. The days are passed when a developer
could unilaterally decide what he wanted to build and then build it
without consulting community leaders, neighbors and others affected
by the development.
This is demonstrated in Sussex
County, Delaware, with the care that is taken by the Planning &
Zoning Commission, the County Council, their staff, and the State
and Federal agencies involved in the process as well as by the
enthusiastic participation by the public in most every land use
decision made today. What has evolved is
a dynamic and symbiotic process that results in ever more Positive
Growth Alliances of all these agencies and individuals.
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