a:26:{s:9:"weblog_id";s:1:"5";s:8:"entry_id";s:0:"";s:6:"sticky";s:0:"";s:14:"allow_comments";s:1:"n";s:16:"allow_trackbacks";s:1:"n";s:10:"entry_date";s:19:"2008-03-29 01:34 PM";s:15:"expiration_date";s:0:"";s:23:"comment_expiration_date";s:0:"";s:8:"category";a:1:{i:0;s:1:"9";}s:9:"author_id";s:1:"1";s:6:"status";s:4:"open";s:14:"trackback_urls";s:0:"";s:18:"versioning_enabled";s:1:"y";s:5:"title";s:52:"Navigating the Complexities of Mixed-use Development";s:9:"url_title";s:52:"navigating_the_complexities_of_mixed_use_development";s:6:"submit";s:6:"Submit";s:11:"field_id_20";s:52:"Navigating the Complexities of Mixed-use Development";s:11:"field_ft_20";s:4:"none";s:11:"field_id_25";s:1:"5";s:11:"field_id_21";s:0:"";s:11:"field_ft_21";s:4:"none";s:11:"field_id_22";s:0:"";s:11:"field_ft_22";s:4:"none";s:11:"field_id_23";s:5956:"<p>During the last two decades the number of mixed-use developments has
increased significantly and isn\'t showing signs of slowing down.
Described as an environment where a person can live, work and play, a
typical mixed-use project consists of ground floor retail with either
housing or office space above. Other mixed-use projects include entire
neighborhoods where different uses are mixed together in close
proximity. In any event, mixed-use development remains extremely
complicated. The developer must balance what may be conflicting uses
and priorities. Before a developer considers tackling a mixed-use
development, he or she should carefully consider the entirety of the
project.</p>
<p></p>
<h2>The Challenges</h2>
<p></p>
<p>Many challenges confront the developer of a mixed-use project,
including added complexity due to the multiple uses, restrictive zoning
codes, increased construction costs, difficult-to-obtain financing and
a lack of suitable locations. The first step a developer needs to take
is crafting a plan with the assistance of a development team. Members
of the team will change throughout the process, but at any given time,
the team may include potential partners and investors, attorneys,
public agencies, architects, engineers, contractors, lenders and
tenants.</p>
<p>The developer must focus on finding the right location and gaining
control of the property. Uses must not only be internally compatible,
but must also be compatible with the surrounding area. Obtaining the
approvals required for a mixed-use project will be challenging for the
developer. A change in zoning, which is a time consuming process, will
be required, and will most likely draw heated opposition from nearby
and surrounding property owners. Purchase contracts must contemplate
and provide sufficient time to satisfy the contingencies upon which the
development is dependent. These contingencies include, without
limitation, acquisition of other parcels, zoning and site plan approval
and financing. If the project requires an assemblage of multiple
parcels and the developer contemplates using eminent domain to acquire
any such parcels, it must be cognizant of the mandates and constraints
imposed by applicable laws. The Missouri legislature recently amended
Missouri\'s condemnation law to add premiums to the price to be paid for
condemned properties, which have been owned by the same family for more
than 50 years and/or constitute principal residences, and to increase
relocation benefits. Further, the use of eminent domain to acquire
property for private use has come under scrutiny, and Missouri law now
prohibits its use for \"solely economic development purposes.\" Eminent
domain is available to acquire blighted or conservation areas, but what
constitutes \"blight\" is subject to interpretation and if judicially
challenged, will significantly delay and increase the cost of the
project.</p>
<p></p>
<h2>Finding the Funds</h2>
<p></p>
<p>Mixed-use developments are costly to develop, and in all likelihood,
will require road and utility work and significant infrastructure
expenditures. Banks may be reluctant to accept the exposure inherent by
the size and scope of such developments, and financial incentives such
as tax breaks and bond financing are often required. Public assistance
for mixed-use projects is often provided under one or more of the
following Missouri statutes: the Property Tax Increment Allocation
Redevelopment Act (TIF), which authorizes the use of incremental real
property and sales tax revenues to fund redevelopment project costs;
the Transportation Development District Act (TDD), which authorizes the
imposition of sales taxes, property taxes and/or special assessments to
fund transportation-related improvements; and the Community Improvement
District Act (CID), which authorizes the imposition of sales taxes,
property taxes and/ or special assessments to fund community-related
public improvements and services. To get public assistance, the
developer will need to endure the administrative process, which entails
participation in public hearings and encourages the expression of
public opinion and sentiment, which is often critical.</p>
<p>Whether public or private financing is used, the availability of
funds will depend on there being sufficient presales and/or leasing. A
mixed-use commercial lease is complex. It is the developer\'s job to
look at surrounding uses and determine what the market can withstand.
The developer must also consider what uses would be marketable and
financially feasible. It is important to remember that although the
lease is with the developer, the maintenance and governance of the
common areas of the project may be turned over to a condominium or
homeowners association, and that not all users get along. Residential,
retail, and office users compete for parking; retailers complain about
support columns that are essential in multistory buildings, but
interfere with their open store formats; and residents complain about
noise from delivery trucks. For a mixed-use project to succeed,
architectural controls must be adopted, and the responsibility for
maintaining and operating the common areas of the development must be
equitably allocated amongst the users. Each must pay their respective
share. Further, each user must be reasonably assured that its use will
not be interrupted or adversely affected by the use or change in use of
other parcels in the development.</p>
<p>As a result of such complexities and challenges, mixed-use
developments take time and have significant front-end costs for site
control, market and feasibility studies, planning, design, engineering,
legal and other professional fees, all of which are at risk if the
project is not ultimately approved. However, for developers with the
stamina to survive the process, mixed-use developments can be an
efficient and effective use of land, and a huge success for the
community.</p>";s:11:"field_id_24";s:0:"";s:10:"category_0";s:1:"9";}