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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: David Jones who wrote (25288)	11/17/2004 1:00:32 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

This is one of the reasons real estate developers hire a consultant, like myself, familiar with the area and the approval process. When I worked for Chevron's Land Department, most of my job was occupied by obtaining governmental approvals for Chevron's many projects ranging from drilling oil wells to building shopping centers. Part of this consisted of figuring out how a particular community worked and who listened to who - in addition to knowing the the simple functional aspects of what permits were needed. Once I had scoped out the situation, I had to go back to the operating department concerned and tell them what type of project I could sell. This often meant a different location, changed configuration and limits on hours of operation etc. Once I got Chevron's approval on the changes, the rest was easy if perhaps involved. For one project we set up a local number where people could call me, or at least my answering service. Then we sent out a letter from myself to 28,000 residents. Something like 50 people called and I talked with them and met with about thirty personally. If you do it right, the approvals come like clock-work. People like dealing with a responsible person who is available to them. If they read in the paper that the mighty Megalith Corporation is trying to gain approval for some project they know nothing about - well you just can't begin to believe what horrible scenarios they dream up in their mind. If they can call me and learn the actual details face to face, suddenly ever thing is different. I can tell them who is already supporting the project and how we changed the project to accommodate their concerns. Only after this process is completed did we ever file for government approval. No city ever asked us for anything other than minor technical changes. Their constituents had already given their approval. I've done the same work for real estate developers, but it's more difficult. Not because their condo project is more objectionable than drilling oil wells in an urban area - but because they have a difficult time hearing reality. The biggest problem is they buy the land first rather than obtaining an option to buy the land. So their profit or loss on the project is already locked in. Not surprising, if they have locked in a loss they don't want to hear about it. They only want to hear how they're going to gain approval for something that I know will never happen. One particularly stupid developer in Los Angeles, who did not pay for my advice, is about to get their head handed to them. The Sunset Millennium project (office/retail at Sunset & La Cienega) obtained approval for their project in 1999. When the stock market declined in 2000 they decided to postpone building the second part of their project until economic conditions became more certain, thus losing their building approvals for not beginning work within the time specified. They now want to regain approvals to build the second part of the project, but with condos rather than a hotel. Los Angeles has become far more congested since 1999. They would never obtain approval today for their original project approved in 1999. Realizing this, they have down-sized the project to result in a 50% reduction in projected traffic, double the previous number of public parking spaces, a free senior center, and expensive traffic improvements. Approval for this new configuration is highly uncertain. Frankly at this point I think what they're going to end up having to pay for a widening of Sunset Blvd. All this nonsense simply because they were stupid enough to voluntarily let their permit expire. Most real estate developers are tone deaf and can't hear correctly. All they hear is the clock ticking on their loan. The smart ones can listen well on their own - and if they can't they hire me. .

To: David Jones who wrote (25288)	11/17/2004 6:42:56 PM
From: David Jones	Read Replies (1) \| Respond to of 306849

Elroy dont know how I posted this to myself but it was ment for you. snip>>>>>Realizing this, they have down-sized the project to result in a 50% reduction in projected traffic, double the previous number of public parking spaces, a free senior center, and expensive traffic improvements.....end up having to pay for a widening of Sunset Blvd. All this nonsense simply because they were stupid enough to voluntarily let their permit expire.<<<<<end My father's neighbor tried to develop an adjoining four acres back in 96. This so called developer came in and bought out my fathers existing neighbors. He submitted plans that moved an easement my father had title to that ran through this fellows property and over built as to number of units imo. My father was angry and came to me to oppose this development. Many weeks later over a cup of coffee before the final city council meeting I laid out my thinking and asked this developer if he could reduce his lot number form 13 to 12. With the minor change the lower number would make to the street alignment. He refused and felt he had it in the bag sense he had gotten staff and building commission approval. He failed to understand the dynamics of his previous approvals. Sense he and my father were neighbors the planning commission passed it along to council knowing theirs would be the final say and staff passed it for what I knew as need for future infrastructure and some intricate politics. Well he lost at council and was denied approval. The council asked him if he HAD TO HAVE the 13 and wouldn't 12 be sufficient? The question being was it 13 or nothing. He replied yes it was 13 or nothing and my jaw dropped. He walked out with nothing but contempt for me. He's back now '04' with plans for 9 but I'm afraid he waited too long. Infrastructure and new issues are holding him up and I haven't heard from him sense summer. In my opinion he could get maybe 6 or 7 but my monies on that he's probably toast at this point. But for greed or stupidity he had 12 and walked away. Some people cant develop a cold.