D‐TAP 101Small

DeveloperTraining

Course InstructorsAndy BabulaVarro Real Estate

Joe BowmanConscious Living Institute

Sara Joy ProppeSchafer Richardson

SECTION 1

Purpose of Course

Purpose of Course

SECTION 2

Introduction

Development Process

Site Selection & Opportunity Identification

Acquisition, Due Diligence, & Entitlements

Financial Feasibility Financing

Design & Construction

Lease Up & Property 

Management

Skills Needed at Each Stage of Development

Site Selection & Opportunity Identification

Acquisition, Due Diligence, & Entitlements

Financial Feasibility Financing

Design & Construction

Lease Up & Property 

Management

Partnerships

• Real estate broker• Attorney• Architect• Engineers• General Contractor

• Market Analyst• Financial Partners• Financial Analyst• Property Manager 

Activity A:

Small Developer Skills Inventory

Your Business Model

Buy Build

Hold Flip

Residential Commercial

Internal External

Build‐to‐Suit Speculation

Financing

Acquisition

Term

Asset

Tenant

Geography

Where Do You Start?

Activity B:

My Small Development Business Concept

Small Group Discussion

SECTION 3

Site Selection &Opportunity Identification

Build Your Inventory Comparison

Build Your Inventory Comparison

What to Consider When Selecting a Site

• Basic Specifications (Size, Age, Parking, etc.)• Zoning• Plans• Price• Market Potential• Existing Tenants• Property Conditions• Availability• Relationships!

Basic SpecificationsWhat is buildable land?

www.spb‐inc.com

Stair192 SF

Tenant 1 Tenant 32592 SF 2400 SF

Elevator72 SF

108'Mech25 SF

Stair216 SF

180'

Tenant 2

Tenant 5Tenant 45772 SF3107 SF

3384 SF

Kitchen/Lounge600 SF

Gross vs. Rentable vs. Usable Square FootageBasic Specifications

Finding Basic Site SpecificationsHennepin County

Finding Basic Site SpecificationsCity of Minneapolis

Understanding Zoning Maps

www.planning.orgwww1.nyc.gov

Zoning Code Terms

Plans, Plans, & More PlansComprehensive PlansSmall Area PlansNeighborhood Plans

Market PotentialTraffic Volume – Visibility – Accessibility 

Resources for Site SelectionBroker Sites

http://www.mncar.org/public‐commercial‐listing/

http://www.loopnet.com/

http://www.themlsonline.com/minnesota‐real‐estate

Resources for Site Selection

Minneapolis Property Information

http://www.ci.minneapolis.mn.us/propertyinfo/index.htm

Minneapolis Planning and Zoning

http://www.minneapolismn.gov/cped/planning/index.htm

Minneapolis Sector Liaisons

http://www.minneapolismn.gov/cped/cped_about

Minneapolis Resources

Minneapolis Communities and Neighborhoods

http://www.mncompass.org/profiles/neighborhoods/minneapolis‐saint‐paul#!community‐areas

http://www.minneapolismn.gov/residents/neighborhoods/index.htm

http://www.ci.minneapolis.mn.us/neighborhoods/

Resources for Site SelectionHennepin County Property Information

http://www.hennepin.us/residents/property/property‐information‐search

Resources for Site SelectionTraffic Counts

http://minneapolis.ms2soft.com/tcds/tsearch.asp?loc=Minneapolis&mod

http://dotapp9.dot.state.mn.us/tfa/

Activity C:

Site Selection Questionnaire

SECTION 4

Acquisition, Due Diligence, & Entitlements

Acquisition Process

Letter of Intent

Purchase Agreement

Due Diligence Closing

Letter of Intent

PropertyPriceTiming

Contingencies

Non‐Binding

How Long “Under Contract”

All Cash/Quick Close

No money goes “hard” until all Due Diligence is complete and tenants lined up

“Free look” period

Paid extension(s)

Due Diligence Checklist

Buying Financing Appraisal Taxes & Assessments Financial Review

Managing Tenant Review Property Management Review

Owning Title Survey Environmental Inspections

Using Zoning/Use Licenses & Permits

Phase I & Phase II Environmental

Phase IIPhase I

• Property Records

• History of Uses

• Photographs

• Surveys

• Maps

• Records of nearby properties

• Soil samples

• Water samples

• Vapor samples

• Surveys for underground storage tanks

• Sampling of drums on site

• Testing of underground tanks

Zoning & Buildable Potential

Minimum Dimensions

Setbacks (Yard Requirements)

Lot Coverage

Floor Area Ratio

Height Limits

Parking

R3 – Multiple Family District

Uses Minimum Lot Area 

(Square Feet) 

Minimum Lot Width (Feet) 

Maximum Floor Area 

Ratio (Multiplier) 

Maximum Height 

RESIDENTIAL USES 

Dwellings 

Single‐ or two‐family dwelling 

5,000  40 0.5 or 2,500 sq. ft. of GFA per unit, 

whichever is greater 

2.5 stories, not to exceed 28 ft. The highest point of the 

roof of a single‐ or two‐family dwelling with a gable, hip, or gambrel roof shall not exceed 

33 feet. 

Cluster development 5,000 or 1,250 sq. ft. per dwelling unit, whichever is 

greater 40  1.5 

2.5 stories, not to exceed 35 ft. 

Multiple‐family dwelling 5,000 or 1,250 sq. ft. per dwelling unit, whichever is 

greater 40  1.5  4 stories, not to exceed 56 ft. 

Planned unit development 1 acre or 1,250 sq. ft. per dwelling unit, whichever is 

greater As approved by C.U.P.  1.5  4 stories, not to exceed 56 ft. 

Zoning & Buildable Potential ‐ FAR

Floor Area Ratio (FAR)1:1 Ratio

1 story(100% lot coverage)

2 stories(50% lot coverage)

4 stories(25% lot coverage)

Entitlements

Entitlements

Administrative Planning Commission City Council

Entitlements – City of Minneapolis

Permit

Permit Application

Administrative Site Plan Review

Development Coordinator

“Small” 1‐4 DUs, <1k SF

“Large”

Non‐Admin Site Plan Review

Neighborhood meeting(s)

Heritage Preservation Commission*(If needed)

Planning Commission*

City Council(Appeals, Rezoning, Vacating public right of way) 

Planning Committee of the 

Whole

Preliminary Development 

Review

Administrative Approval

Resubmission Required

Construction Plan Review

PDR Approval

PDR Resubmission Required

Optional

* Requires public hearingNOTE: Variance requests not requiring planning review go to the Zoning Board of Adjustment

Activity D:

Zoning Research

SECTION 5

Design & Construction

Do It Yourself v. Hiring Expertise

• Key Partners• Architect• Civil Engineer• General Contractor

Principles of Good Design

• Repeatable• Flexible• Cost‐Effective

The Missing Middle

Accessible Design

Design Process

SchematicDesign

DesignDevelopment

ConstructionDrawings

Evaluating a Building

• Roof• Insulation• Foundation and structure• Mechanical systems• Electrical systems• Plumbing• Doors and windows

Contracts

• Scope• Schedule• Budget• Terms of Payment• Insurance and Bonding• Liens

Scope of Work

• Work performed• Major fixed equipment• Fixtures and finishes• Permits

Budgeting

• Lump Sum Contract• Unit Price Contract• Cost Plus• Guaranteed Maximum• Incentives/Fees at risk

Wrap Upand

Final Questions