Development Negotiations/Project Packaging
Over their multiple-decade professional careers, Vantage Point Real Estate Development Management, LLC, senior professionals have worked with public clients in creative and collaborative efforts to attract developers and investors utilizing pragmatic business approaches. After spearheading many of the public/private development techniques used to rebuild America’s cities and towns, our senior professionals have tailored these rich experiences and lessons learned to face the complexities of the contemporary real estate and economic climate. By applying familiar deal-making and innovative financing techniques, our horizons have broadened from specializing earlier in downtown and MXD endeavors to now also packaging commercial, residential and recreation located in suburban settings. Unmatched successes have led to significant real estate reinvestments nationwide.
A key advantage offered by our senior professionals is their experience in avoiding structuring poor partnerships for clients. With economic and financial difficulties facing both public and private entities today, it is imperative that not only the economics of a proposed development be properly analyzed, but also the financial capacity of potential partners be clearly understood. We look at income and expense forecasts, risk factors and financial terms to judge financial feasibility. Our evaluations paved the way for projects with merit.
The process followed by our senior professionals when negotiating agreements and packaging a project is solidly grounded in an understanding of what the public and private sector seek in a public/private partnership arrangement. The public sector seeks private developers that have experience in the type of project desired, have a successful track record, are financially strong, understand the public process, and know the associated public scrutiny and won’t back out.
The private sector seeks a public sector partner that has strong political will, has site control, and is ready and willing to provide the public financial means to help with development funding gaps. Typical public sector financial incentives include TIF, tax credits, tax abatement, infrastructure investment, zero/low-interest loans, grants and density bonuses. Public-sector participation can also include expedited permitting, regulatory assistance, and assistance with land assemblage.
The project packaging process typically starts with issuance of a Request for Qualifications/Proposals (RFQ, RFP), and once some common terms are negotiated, these results form the basis of a Memorandum of Understanding (MOU). Subsequently, development and disposition agreements are structured, negotiated and finalized, which defined the roles responsibilities of both public and private sector partners, as well as milestones for performance by both parties. Deal points addressed in development agreements include public contributions, development and land purchase phasing, purchase price, upside participation, design standards, timelines, obligations and remedies for non-performance.