Land Purchase and Subdivision Process

[Jonah Slove]

Hi All!

I am new to this site and this is my first post. Seems like a wealth of knowledge on this forum. This is less one specific question but more of an outline of what I am trying to do in hopes that I can add questions as they arise. If this post belongs elsewhere, admins please move.

Backstory - I am 33 year old organic farmer in Idaho. I have finally settled on a price for my farm (12 acres) which would allow a short plat and development of a cul de sack and build 5 residential lots for 5 of the acres, and then the farm with my own residence on the 7 remaining acres. The farm is also permitted under the "dude ranch" CUP to build additional cabins or smaller buildings to use as short term rentals, or worker housing, or other options. I really see the farm going the more agritourism route than just growing veggies.

So, I think the next step is to have the land surveyed so I can create a legal description and sign a legitimate sales agreement . Currently it is part of a much bigger parcel that the landlord has been developing as a small residential community. From there I can take my agreement along with the rest of my application and go to the farm service agency for financing. They will fund 45% of the loan at 1.5% for 20 years. My goal is to sell a lot or two on the cul di sack and pay the loan back. I think once the land is surveyed I will be able to short plat this 12 acres from the whole parcel with approval from P and Z and town council. Future steps will be getting engineering plans done for the road and utility work, a concept plan for the subdivision and getting it all approved from P and Z and town council again.

I know I am missing steps in here but I wanted to type out a scenario so I can come back with questions when I hit some road blocks. Please let me know if you guys have any questions for me currently and I appreciate the help! 

[William Hochstedler]

Many jurisdictions will not record a subdivision plat until you've put in (or bonded) the infrastructure (power, sewer, water, roads, etc).  So talk to the city to see what they'll need before you can sell the lots.  You will likely need access to six-figure cash or loan to execute your plan before your long-term financing.

Can you piggy back on the seller's bigger project?

Sounds like a cool plan.

Welcome to BP!

[Henry Clark]

Use the lookup function with my name and Spring lake and Journeys End subdivision posts.

First step is have your local surveyor survey the property.  Tell them what you want and ask them to lay it out.  They will know setback rules, road widths required, easement documentation for road and utilities, postal box and bus stop.  

Are you in the county, in the city, or in the mile limit for the city?  They will probably have different lot sizes.  

Lot sizes will also depend if your on city water and sewer.  

For example out county has a minimum 2 acre lot size, but also. 300 foot depth.  If you have city or rural water then we can do 1 acre since you don’t have to worry about sewer field contamination distance.

Flood plain.  Flood way designation?

Road surface.

Subdivision rules and application process.  Get the forms and the process.  

Percolation test.  Our county allows over 5 acres you can do yourself.   Less then that you have to pay.

Water test. Either drill well, measure neighbors or get letter from well driller. 
.     
People like water, trees and boulders.  You can do all of those to increase value or sale ability. 
One of our country subdivision lots above. 

[Jonah Slove]

Quote from @William Hochstedler:

Many jurisdictions will not record a subdivision plat until you've put in (or bonded) the infrastructure (power, sewer, water, roads, etc).  So talk to the city to see what they'll need before you can sell the lots.  You will likely need access to six-figure cash or loan to execute your plan before your long-term financing.

Can you piggy back on the seller's bigger project?

Sounds like a cool plan.

Welcome to BP!

 Thanks for the reply! We are not too far away in Victor, ID. As I understand, the city will allow a short plat so I can buy this parcel but then when I want to sell lots the utilities have to be in. Ive estimated $1mil total. I've got family helping where they get paid back once lots sell. I will piggy back on the sellers project when he mobilizes a crew to do utility install and road work for his next phase, I will have them continue to my cul de sack. thanks!

[Jonah Slove]

Quote from @Henry Clark:

Use the lookup function with my name and Spring lake and Journeys End subdivision posts.

First step is have your local surveyor survey the property.  Tell them what you want and ask them to lay it out.  They will know setback rules, road widths required, easement documentation for road and utilities, postal box and bus stop.  

Are you in the county, in the city, or in the mile limit for the city?  They will probably have different lot sizes.  

Lot sizes will also depend if your on city water and sewer.  

For example out county has a minimum 2 acre lot size, but also. 300 foot depth.  If you have city or rural water then we can do 1 acre since you don’t have to worry about sewer field contamination distance.

Flood plain.  Flood way designation?

Road surface.

Subdivision rules and application process.  Get the forms and the process.  

Percolation test.  Our county allows over 5 acres you can do yourself.   Less then that you have to pay.

Water test. Either drill well, measure neighbors or get letter from well driller. 
.     
People like water, trees and boulders.  You can do all of those to increase value or sale ability. 
One of our country subdivision lots above. 

 looks awesome! I tried to look up your post you mentioned but you have so many threads here I wasn't sure which you were directing me to.

anyway, I am in contact with a surveyor.. but waiting to sign the purchase agreement before I get the ball rolling. this property is in city limits and have been on contact with the planner. the 5 lots are within their parameters, this will have to be on city water and sewer.

[Jonah Slove]

here is a concept plan that is part of my purchase agreement 

[Henry Clark]

If you haven’t.  Check on storm sewers, storm ponds, water runoff direction. 

[Jonah Slove]

Update: We closed on this property and went ahead with the short plat process to create the new 12 acre parcel! I was also approved for the FSA loan at 1.5% :)

Now I am working with a planning and engineering firm to create the concept plans and stamped drawings for the full subdivision. Their proposal was for $40k but not sure I have any other local options.

[Henry Clark]

Congrats

$40k is kind of high.  You just plan to sell lots, correct and not build?  Ask the planning group to look at another subdivision plans and also ask the engineering firm for a similar set of plans to look through.  

I would run a cost estimate if you haven't.  You should be selling for about 100% above cost if not more.

See if there are any big outlying costs.  Storm ponds, storm drains, flood ways or flood zones, underground electric, fiberoptics, etc.

On the concept plan above.  Why no lots on the left side of the road.  Need those to help offset the road cost.

Good luck with project.

[Jonah Slove]

seems high. this town is very expensive so bids are always highs.

For the residential I plan to just build lots.

For the farmstead area our plan is to build our primary home and then 5 smaller cabins for rentals.

That road above is a smaller access road to the little cabins. They will not be in a separate lot but a larger farmstead parcel. This property also has a lengthy set of covenants that go along with the purchase agreement. The former owner sold to me because I run the community farm and he wants to insure the farm stays active.