Rezoning & New Multi-Family Development Strategy

[Mike Russ]

Hi - I am looking for some guidance or references on how to proceed with an opportunity that is potentially available to me in Dayton, OH.  There is a large parcel of land in a desirable neighborhood that is potentially being rezoned from agriculture to multi-family.  It has some hurdles in the zoning process with getting water/sewer extended but I think in the long-term it is feasible with the discussions I have had with local officials.  The property owner is ready to walk away and sell the property.  I have interest in buying because I believe if I develop a good strategy to work with a developer here once I complete rezoning, there is a lot of potential in the location.  I am curious to hear/learn more about what type of business approach is common or suggested when landowners work with developers and what I need to watch out for.  I have experience in buying/holding existing rentals in this area but I have not done development at this stage.

Initially, I was thinking about a model where we would potentially divide the property and construction in 3 phases once I complete rezoning and I sell to the developer 1/3 of the parcels at a time.  I make the profit on the land sale only for my efforts rezoning and let the developer handle everything else including road/sewer extension as they develop the site.  

Any other thoughts, suggestions, or references on what I should read/listen to would be very much appreciated.

Thanks,

Mike

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