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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.

 

  • $572,500 has been spent.

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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