A Game of Cat And Mouse

The Real Estate Espresso Podcast

A Game of Cat And Mouse

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Welcome to the Real Estate Espresso podcast, your morning shot of what’s new in the world of Real Estate investing. I’m your host, Victor Menasce. Today, we’re discussing the project approval process in the City Council.

Every city’s municipal government is tasked with managing resources and planning land use. Gaining approval for a project is not a random occurrence, it necessitates considerable effort. There are invariably certain individuals who will object to your project, many of whom you have likely never encountered, and who may not be materially affected by your project, but merely possess an ideological opposition to development. They entertain a narrative that portrays all developers as wealthy individuals exploiting the less affluent solely to further enrich themselves without any sense of environmental responsibility.

Zoning, a complex concept not thoroughly understood by most citizens, guides the city’s growth and prescribes the types of properties required for a sustainable and vibrant community. Our mission as developers is to construct communities that individuals are compelled to call their home. Unfortunately, not all communities adhere to a sensible plan. Those who are elected, the policymakers, are not necessarily experts in land use. They’re everyday individuals, like you and I, who opted to run for political office and were victorious. Some are educators, lawyers, engineers, athletes, journalists, among others.

In most major cities, the mayor only votes to break a tie, if required, although their voice does hold sway among city councilmembers. The decision to approve a project, for better or worse, rests with these elected officials. The city council members’ decision is subject to a variety of influences. These could include the impact on taxes, the city’s future debt, traffic, schools, or other city resources.

As developers, we are obliged to familiarize ourselves with the priorities of each of the city council members. Understanding who has a stake in a project, and connecting with each one is pivotal. In order to facilitate this, it’s critical to have someone on your team who has access to all of the key individuals. For instance, in one of our projects, we enlisted the services of a paid lobbyist who used to be a city council member. Everyone on the team has a specific role. One person might be regularly interacting with the mayor, another with the head of utilities, and yet another with each city council member to ensure we are cognizant of their concerns.

In any city council, there is a range of opinions. Some council members might be focused on specific developments in the local area and have strong opinions about local needs. Others might prioritize resources for fire and police protection, holding the view that any additional growth would overextend these already limited resources. We don’t aim to convince every single council member who is development-averse that growth is positive for the community. What we do aim to achieve is regular communication with both the important employers in the area and the influential advisors to the council members.

We are investing in creating a website that outlines the benefits of our project. In absence of readily available information, the general public, some of whom will oppose our project, may fabricate their own evidence to corroborate their arguments. Understanding potential objections in advance and preparing appropriate responses is essential. Often these objections are not grounded in reality, and can be quite outlandish, but unless you know what the objections are, it’s challenging to respond effectively. Opposition groups can mobilize quickly, especially on social media, and even recruit subject matter experts to act as witnesses on their behalf. They come well-prepared with presentations, drone photography, and academic papers. It’s only by knowing the objections in advance that you can effectively counter these expert witnesses.

Unfortunately, the world of development has turned into a game of cat and mouse. As you ponder over this, have a wonderful rest of your day, continue creating amazing things, and we’ll continue our conversation tomorrow.