An Orange County Business Lawyer Shares Thoughts on the Necessity of Development Agreements

November 9, 2016

A development agreement is a contract between a landowner and a public agency, such as a city or county government, relating to how an existing property or lot of land that will be significantly changed will be handled between the parties.  There may be occasions when a development agreement is not necessary or required. Nonetheless, having a development agreement in place, even when it’s not strictly required, can offer tremendous benefits and protections to all parties involved. Ask an Orange County business lawyer at Fitzgerald Yap Kreditor if you would like more information about development agreements.

It’s nearly always recommended for developers to have a development agreement in place on reasonably large projects. This is particularly true in cases where long-term development phasing is necessary. Likewise, if the developer will be required to substantially invest in infrastructure items like roads, curbs and utilities, a development agreement will be especially desirable.

Hammering out a development agreement is nearly always beneficial to the developer. After all, why should a landowner invest considerable time and capital in a project that may be indefinitely stalled by disagreements with government officials? It is far more expedient to have a clear understanding of the expectations of both parties before beginning any substantive work. Having the development agreement in place justifies the time and expense of taking further steps because the developer knows that the project can progress as planned.

However, there can be occasions when it doesn’t make sense to enter into a development agreement. Perhaps the developer does not want the project to come under the intense scrutiny of the government or the public. They may be averse to such public disclosure for any number of reasons including the disapproval or condemnation of the public. On the other hand, they may be worried that the public agency will try to increase development fees and costs based on the project.

Entering into a development agreement isn’t always in the best interests of the landowner. However, they can be quite advantageous in many circumstances. If you need assistance with determining whether or not you should seek a development agreement with a city, county or other local government agency, then contact an Orange County business lawyer at Fitzgerald Yap Kreditor. We have the experience and legal knowledge that you need to determine whether or not a development agreement would benefit you and your project. Call us at (949) 788-8900 to learn more.