Structuring Real Estate Development Agreements With Municipalities

Description

Development agreements offer the opportunity to confirm important development project details in writing between a local government and a developer. Development agreements often provide clarity regarding applicable development regulations, unique project conditions, and public financing.

Benefits for developers and property owners often include flexibility for long-term multi-phased development projects, confirmation of vested rights in the event of changes in regulation, financial incentives, infrastructure obligations, and other development priorities not expressly addressed in the local ordinances.

For municipalities, development agreements provide a vehicle for facilitating a municipality's comprehensive planning goals, commitments for public facilities, including off-site infrastructure, as well as opportunities to seek greater developer financial obligations and exactions beyond standard conditions of approval.

Counsel negotiating development agreements should include terms to ensure implementation of all project terms and protect against claims, including allegations of illegal contract zoning and violations of constitutional nexus limitations. The panel will address ways to incorporate community benefits into development agreements to optimize the likelihood of approval on the one hand, while minimizing inappropriate development costs and conditions that can compromise project feasibility, including project financing.

Listen as our authoritative panel of land use and real estate counsel examines the benefits of development agreements and how to structure and negotiate terms for the owner/developer. The panel will offer practical guidance on ways to avoid or handle challenges to the arrangements.