Due Diligence

The first step to Successful Land Development is Due Diligence.

  1. Due Diligence Process(basic considerations):
    1. Become familiar with local city/county ordinances and regulations as well as applicable state and federal requirements. It is also important to know the processes and schedules of these entities as they apply to your site.
    2. Prepare an initial analysis of the site's critical characteristics:
      • Does the site make market sense? (number of housetops, traffic counts, property & sales tax expenses, etc.)
      • Is the site zoned appropriately?
      • Has the site been platted?
      • Are there environmental considerations?
        • Hazardous waste contamination
        • FEMA Flood Zones
        • Tree Protection/Preservation
        • Other Protected Species
        • Wetlands
      • Is there historical and/or archeological significance?
      • Are there any deed restrictions?
      • Are there any special overlay districts?
      • Will adjacent property zoning & land use impact the site?
      • Other considerations.
    3. Investigate utilities availability:
      • Are public utilities nearby? (water, sanitary sewer, storm sewer, solid waste)
      • Are there franchise utilities nearby? (electricity, telephone, natural gas)
      • What will the developer's cost be to extend utilities to the site and across the site?
      • Are there any utility impact fees?
      • Are there any utility pro rata fees?
    4. Determine transportation characteristics and requirements:
      • Are roadways adequate?
      • What are the perimeter street paving requirements?
      • Are there any roadway impact fees?
      • Are any signalization of roadway intersections required?
      • Are the number of allowable driveways and driveway spacings suitable for your site?
      • Is driveway access controlled by TXDOT, city or county? (If your site includes a TXDOT access permit there needs to be from 3 weeks to 6 months extra in the schedule to allow for its process.)
      • Is a Traffic Impact Analysis required?
    5. Determine if the desired improvements will fit on the site in accordance with city/county building restrictions:
      • Is there a boundary survey, topographical survey, and/or tree survey with improvements?
      • If not, are there other sources of information available such as city/county maps for the site?
      • Are there any special requirements by the city/county with regard to:
        • Architectural Standards
        • Building Height
        • Building Setbacks
        • Fire Flow
        • Fire Lanes
        • Freight Loading/Unloading Areas
        • Landscape/Irrigation
        • Lighting
        • Park Dedications
        • Park Development Fees
        • Parking Spaces
        • Screening/Fencing/Buffering
        • Signage
        • Trash enclosures
        • Other special considerations
    6. Investigate drainage requirements:
      • Is storm water detention required?
      • Does the downstream off site system have adequate capacity for increased flow?
      • Do the oncoming site flows prescribe any requirements for extraordinary drainage system improvements?
    7. Investigate encumbrances that would preclude proposed development:
      • Does the title search show any easements, liens, delinquent taxes, boundary issues, or other issues on the property?
    8. Prepare a Concept Site Plan to determine if your project as envisioned will fit on the site and satisfy all of the municipal requirements for the site's development.

After your due diligence is complete, you may discover that some items need to be addressed such as a zoning change, or a variance for signage or landscaping may be required. You or the seller can approach the city/county to request the necessary changes in keeping with the city/county's processes.

Click here to view a sample due diligence report

Next Two Steps:

Land Development Process and the Construction of your building or sell lots/pad site, etc.