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Entitlement Issues & Constraints

The acquisition of “entitlements” (i.e., the rights to build a specific project, subject to certain Conditions of Approval) is a very risky and lengthy process.  During this process several development and environmental issues, as well as, planning and zoning constraints will need to be addressed to the satisfaction of the approving jurisdiction.  Aside from the mandated technical studies required (traffic report, EIR, etc.) the pursuit of entitlements is often a political endeavor as the action required by the City Council or the Board of Supervisors to approve any entitlement request is a discretionary one. 

 

The members of these approving agencies are elected officials and consequently “listen” to their voters.  Thus, satisfying all concerned (the planning, engineering and environmental staff of the jurisdiction involved along with the various neighborhood special interest groups) is of paramount importance to ensure a favorable approval of the entitlements sought.  It is always a juggling act between securing the needed entitlements from the approving jurisdiction on the one hand, and on the other hand, the developer or builder maintaining a certain minimum financial threshold to achieve a reasonable profit margin that will allow the project to be financed, given the concessions often required in order to ensure the needed approvals.

 

The good news is that once the requested entitlements are acquired, the value-added due to the new entitlements is several fold that of the original value of the unentitled property. 

 

Mr. Ryan is a seasoned entitlement veteran, having entitled over 25,000 lots in his 45-year career in the real estate Industry.  His experience in the entitlement arena has served him well as an expert in this field and in his courtroom testimony.

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