Chapter 13, Summary from Meg

Chapter 13
The Role of the Public Sector

- Any real estate development has the government playing a role
- The chapter examines the roles of governments as they affect the development process and the development industry as a regulator of private development and as a provider of needed public infrastructure and facilities.

The Public Sector as a Regulator
- Public and private interactions in any development increase in frequency as the proposed projects are subjected to criticism during the approval process leading to the stages of final permits

The Local Regulatory Process
- A comprehensive plan describes the desirable ways in which a community should develop over ten-twenty year time frame.
- Zoning ordinances are the most widely used form of land us regulation. They establish a variety of districts, depicted on maps, and spell out requirements and standards for permitted uses of land and buildings, the height and size of buildings, the size of lots and yards around buildings, the supply of parking spaces, the size and type of signs and fences, and other matters in each district.
- Subdivision regulations provide public control over subdivision land into lots for sale and development. They contain requirements and standards regarding the size and shape of lots, the design of construction of streets, water and sewer lines, and other public facilities, and other concerns such as protecting environmental features.
- Capital improvements programs are adopted by local governments to provide a construction schedule for planned infrastructure improvements, they also identity the expected sources of funds to pay for the improvements.
- A popular regulatory technique that goes beyond traditional planning and zoning is the use of requirements for adequate public facilities.
- Zoning changes may also require changes to the comprehensive plans
- Most public officials believe that involving their constituencies in these procedures will lead to wider consensus on new plans and regulations and therefore less opposition to implementing them.
- As a result, public officials use goal-setting exercises to describe future directions and qualities of growth based on projected trends and understanding of desired community qualities.

State Regulatory Actions
-Although state governments delegate most regulation of land use and development to local governments, states have always exercised some control over development.
-In growth management states, once a local plan has been reviewed or approved by a state agency and the community has adjusted its zoning and other regulations to the plan, development approvals and permits proceed in a traditional manner.

Public/Private Roles in Planning and Financing Infrastructure
-Providing infrastructure for community development is viewed as a primary government function. Many facility systems, such as roads and sewer lines must be closely related. Some public facilities and services such as school should be made available to all. Also, governments frequently expand infrastructure systems to support economic development in the community and the region.
Sources of Public and Capital Funds
-Local governments obtain capital for infrastructure improvements from their annual budgets, from the issuance of municipal bonds, and from state and federal funding programs.
- For long-term investments, governments depend on funds derived from obligation bonds or revenue bonds

Impact Fees and Exactions
- Impact fees are also known as systems development charges or development impact fees
- Impact fees are part of the developer contribution called “exactions”, that require developers to contribute to the provision of public facilities in their development.
- Sometimes exactions and fees are specified in regulations
- Other times exactions and fees are negotiated by jurisdictions with developers depending on their contribution


Legal Constraints, equity concerns, and administrative concerns… these are all basically judged on a case-by-case basis.

?s ask Meg