Is This a Good Place for a School?

By Tony Whitaker

Recently our firm had an experience with a property being considered for development of a charter school. The property was situated on high ground with ample road frontage along a newly constructed highway, had relatively accessible utility service, and was nicely proportioned for efficient site layout. This property initially appeared to be well suited for the intended purpose. But after conducting an assessment of project-specific traffic characteristics and nearby roadway conditions, and based on subsequent discussions with DOT officials, we quickly understood that the cost of necessary roadway improvements would consume more than one-half of the project’s entire development budget. These projected costs were not attributable to the property per se, but were due to the specific combination of roadway conditions and project characteristics that would result from development of this property in the proposed manner. This site was quickly dropped from consideration and the project was successfully developed on a more suitable nearby parcel, with manageable project costs.

This experience illustrates the importance and value of conducting a feasibility assessment very early in the life of any potential land development project. Such an assessment should be based on a good understanding of conditions on the site and its vicinity, practical consideration of project characteristics and impacts, and a thorough evaluation of the regulatory requirements for the project. If the assessment demonstrates that the property will satisfy the project’s functional needs and financial constraints, the information learned is useful for project purposes moving forward. If the property or the regulatory environment is found to be unsuitable, the investment is still generally understood as a good one, as it prevents the expensive error of pursuing an infeasible project.

A feasibility assessment should be sufficiently thorough, but may proceed incrementally with the ability to suspend the effort upon discovery of any unsatisfactory “deal-killer” information. Initial efforts are generally focused on the questions of first priority, which usually relate to the ability to secure zoning approvals, achieve the necessary density, obtain acceptable vehicular access, and connect to utility services. This is also the time to begin evaluating the site’s physical condition and infrastructure, functional and aesthetic opportunities and constraints, and the regulatory environment within which the envisioned project would exist. These various characteristics may be understood and evaluated as the property’s “assets” and “liabilities”.

Assuming the initial feasibility work results in satisfactory findings, subsequent work usually revolves around conceptualizing the project’s physical layout and visual appearance, fine-tuning density projections, and estimating site development costs. This work is not always linear. For example, if early questions arise about non-typical costs for necessary utility service connections, this issue may be addressed sooner rather than later, and may take precedence over all other considerations until satisfactorily resolved.

Feasibility assessments are an indispensable tool for project decision-making and risk management. Land purchase agreements for development purposes should be made contingent on obtaining satisfactory findings of project feasibility. An effective feasibility assessment must be based on an appropriate degree of site research and investigation, practical consideration of project characteristics and impacts, and a thorough understanding of applicable regulations affecting project development and operation. Civil Consultants regularly provides customized feasibility services for our clients’ potential projects. Please call us to discuss how we might assist you with your project assessment needs.