Is appreciation of land accounted for in LTC?

[Brian Cade]

In the case of a multifamily construction loan, is the land portion of the LTC based strictly on the purchase price (even if multiple years prior), or is it be based on the current market value of the land?

In a nutshell I've purchased land that is unable to be built on until a water shortage is addressed, likely taking 2-5 more years, but possibly longer, and as you would expect that uncertainty has depressed land values. I'm trying to get rough figures in line to make sure I'm ready to hit the ground running once the water moratorium is over.

Thanks!