Development Proposal Report: Land and Development Coursework

This report presents a detailed development proposal for a land development project, likely for a course on land development and planning. The proposal outlines the objectives of the Phillips Land Company, including expansion and network building, and addresses critical issues in land development. The report includes a description of the company's role, citation and planning details for a specific site in Arkansas, and the proposed development methodology. It delves into market analysis, risk management strategies, and recommendations. Furthermore, the proposal incorporates a residual appraisal, detailing financial calculations and considerations, including land financing costs and developer profit. The report also discusses a separate stream focused on Mayfield SRF, outlining its objectives, role, and planning framework for housing development and community engagement. The report covers various aspects of the development process, from planning and market analysis to financial projections and risk mitigation.

Development Proposal 1
DEVELOPMENT PROPOSAL
By
Course
Professor’s Name
Institution Name
Date

Development Proposal 2
DEVELOPMENT PROPOSAL
OBJECTIVES The company plans on expanding and providing housing for the residents and
creating more networks with other companies. To formulate a better and advanced land development program that will enhance
the company to achieve more construction development all over the world.
 Analyze and address critical issues on land development projects.
ROLE OF THE COMPANY
Phillips Land Company works to meet all the needs of its customers who are willing to invest in
land development projects. The company makes sure that her customers easily get access to
permits whenever they wish to invest in a land projects. The company provide short term
investment loan to its clients but in case they want large amount of loans then the company
ensures that they connect the clients with reliable banks for financial assistance and connect the
client with suppliers for easy access of building materials. The company also helps its clients in
marketing their projects and connects them to the city officers for easy assessment of their
projects. Phillips provides an insurance cover to its clients in case of any damages taking place.
CITATION AND PLANNING
Phillips Land Company plans to develop and own a land on the North West of England,
Arkansas with an aim of converting farm land into houses. Previously the land was under
farming activities and the income from the farm work was minimal. The project will suits the
city and its residents since the city is developed with a number of social amenities and well
connected transportation system. According to Bhattacharya, et al, (2018), the project aims on
providing residing houses for the workers who work in the town. It wills covert approximately

Development Proposal 3
five acres of land into housing subdivision. The zoning permits building of the housings and with
the chatting from the residents it clear that the site is viable to develop housing and the
commercial activities are incredible. The site is accessible to public transportation hence
convenient for the residents. The site is near a well known tourism attraction site hence
convenient for both commercial and recreational activities for the residents and this complement
the nearby commercial development.
The maintenance required is minimal from the report given by the construction company since
the drainage is good. The housing proposed will be checked for hazardous material with
appropriate fire exit. The housing will comply with the disability act to fit all the residents. The
land is situation seven miles from the town and five miles away from the hot springs. Security is
a guarantee to the residents providing both electric and portable fencing. Phillips assures site
construction homes and water sewer power. The project will provide enough parking area
including an underground parking area. With the help of environmental officers, environmental
assessment has to be prepared to help in planning residual appraisals and evaluate the effects of
the development activity on the natural and human environment depending on a research done by
Muret-Wagstaff and Lopreiato,( 2019).
DEVELOPMENT METHODOLOGY
The team will work with the government to ensure a permit to start up the project is allowed. The
company has worked with a number of suppliers in the previous years so it will be easy to order
materials on time and original ones, as recorded by Jadevicius, et al (2018, p77). Phillips
Company is assured of getting approval from the city council since they have worked together
with the government so it will be easy to beat the competition of getting permits as reported by
Bolleter, (2018).

Development Proposal 4
The company will have to apply for approval of using overweight trucks while building since the
government has prohibited huge trucks because of noise pollution. It will have to pay and be
assessed on use of their construction materials. Screening will take place to ensure that detailed
assessment is done, whereby the exercise will involve the city council for guidance. Bencure, et
al, (2019) reported that the proposal has to go through the city council for approval and comment
on the development project. The development will provide measurable benefits to the city
residents and the company in terms of revenue, cost reduction, productivity and employments.
Phillips is a well known company and it has invested in one of the largest bank in the country,
hence it will be easy to access it development loan efficiently.
MARKET
Arkansas is very competitive because of the amenities that are available like the hot springs,
hotels, companies and tourist sites. The facilities available have triggered increase of
employment and as a development consultant; the area was the best for the allocation of the
housing. For the past three years the living standard of the area has increased up to 22% due to
the rise of job and housing market. According to Mitchell (2018, p1277) most companies are
located in the area because the transport system, security and power are readily available.
Phillips Company has been able to work with almost all the surrounding companies creating
higher chances in the new market from a research conducted by Bradley and Sparling, (2017).
To market the houses the company will need to have an agreement with realtor during the
marketing and selling phase just to make sure that the resident follow the procedure required.
With the rise in the market the company will sell their houses with a forecast sale price of $474
to $500. The town is focused more in agricultural activities as compared to housing hence

Development Proposal 5
Phillips has a hire chance of encouraging the resident to develop their land into housing assuring
them of a better profit according to Braakmann, (2019, p 520)
RISK MANAGEMENT
According to Benner and Karner, (2016, p 15) the company will be dealing with the realtors to
be able to market the houses and this may lead to certain potential risk for the company. Most of
the resident will opt to go for the reducing cost of houses elsewhere causing the cost of the
houses to reduce. The flexibility of the market will be a threat causing the return to be lower than
expected. The cost of labor and building material are high and this will affect the profit of the
company. The company will have to include additional budget for the foreseeable prices which
has to be approved by the government.
RECOMMENDATION
The company has to be sensitive on planning and for this reason in case of any supply or labor
failure the company will need to have alternatives suppliers and workers. The company has been
working with government planners and engineers hence it and assurance of compliance from the
team making the construction swift. The company is well developed making it easy to comes and
help other companies creating trust and work efficiency according to Koster, (2019).
RESIDUAL APPRAISAL
The value of the land the company is investing will be the residual amount resulting from the
housing. The company will consider the cost of construction which will be relative to the cost of
the land. The value will have to cover the cost of future revenues, expenses and risk the
company will forecast cash flow in to the future. The method of residual appraisal will include
forecasting cash flow in future but the company will make several assumptions before starting
the development project;

Development Proposal 6
 Equity investment = land value
 In case of leasing, the company would capitalize it income stream using market
capitalization rate.
The amount available to purchase the land is $900,000. Development method framework will
help to calculate the expected income from the housing following the frame work;
Gross value upon
completion
175 units $150000 per unit $26,250,000
Cost of sale 4% of gross - $1,050,000
Net value upon
completion
Gross-cost of sale - $25,200,000
Hard cost $45 per square foot Gross buildable area
190,000 square feet
$8,550,000
Soft cost 15 % of the hard cost - $1,282,500
Development
financial cost
Hard soft cost\6
month installments
Interest rate of 12% $300,000
Developer profit 15% net upon
completion
- $3,780,000
Residual to land and
financing cost
$11,287,500
Land financing cost

Development Proposal 7
Land residual $9,835,715.88
Land = gross development value_ (construction +fee +profit)
Gross upon completion is the cash flow expected from the development after completion, cost of
sale are the expenses the organization will spend while selling the houses in terms of marketing
their project. Hard cost involves the finances used in construction project as stated by Crosby, et
al, (2018) where the company will set aside 15% percent of the total hard cost for soft cost
expenses. The expenses involves consultant fee, taxes and interim financial cost Garza and
Lizieri,(2016, p450). To make the project successful, the company intends to apply a loan in one
of the developed banks in the town worth 70% of the land cost. The loan will include payment of
interest at the end of the loan term of 12% per year. The amount that remains after deduction of
expenses should be enough to purchase the land that is worth $900,000 and the profit for the
developer approximating 15%. Residual to land and land financing cost includes the cash that
remains after the company has completed its project and consists of the accumulated interest if
the loan. Garza and Lizieri, (2016, p55) came up with a report on calculation of land residual;
Interest of the land= (total land cost- equity)*[1+i)n-1] = 0.7(cost of land)*[(1+0.125)6-1]
=0.05416(cost of the land) =$ 532,702.37
Residual of the land= $11,287, 500/1.1476033
=$9,835,715.88
The interest of 15% per year (12 months) will be, land cost [(1.0125)6-1] = $41,222.02
The company is bound to face the risk of difference of the selling cost of the land but with the
help of the company marketers they will be able to negotiate the cost of the land and include risk
mitigation fee of approximately $4 per square unit.

Development Proposal 8
STREAM B
OBJECTIVES
 Regenerate a house framework with an aim of development and creating
residential homes
 Engage all Mayfield stakeholders and identify their site of interest, respecting
each idea.
 Create unity with the city management team to develop the city into a
commercial, administrative and recreational area.
 Ensure that the housing is in the right area and are designed, implemented and
managed in the best way by collaborating with other house owners and city council.
 The proposal is indicative evolving a wider area of housing rather than definitive.
ROLE OF MAYFIELD
The company’s duty is to guide its investors in their projects in term of best development
projects and public realm. The company provides education and employment opportunities to its
members who are willing to join the organization. It provides ideas and solutions to the city and
its clients by guiding them on development of the city and the future plan of their development
projects. Mayfield works to provide social amenities by targeting local communities and
provides commercial offices place in the city. The company has created retail and hotel
accommodation and more than 1400 homes for the residents according to McAllister, et al,
(2016, p137).
MAYFIELD SRF
The Mayfield SRF is one of the planning organizations on land and building project. The
organization was approved in 2009, amended in 2013 and updated in 2018 receiving approval by

Development Proposal 9
Manchester city council. The land is approximately 30 acres with Manchester international
airport services available. The company plans on utilizing the 154,800 square meter land on
housing. The job market of Mayfield is competitive from the diverse array of shops, hotels,
restaurants and other leisure experience. Mayfield plans on creating approximately 1500 housing
and creating more opportunities on employment and education. The proposed residential area
will provide the residents with public amenities creating better living environment. In 2018,
Mayfield opened a co-working place to enhance collaboration with organization, businesses,
sharing ideas and creating unity for a successful business environment according to McGuinness,
et al (2018).
The Manchester international festival collaborates with Mayfield to enhance hosting of events
and planning detailed phases of work. The phases would include Mayfield Park which would
occupy over twenty acres of land which has not been in use for a number of decades, storey
offices and a storey car park.
PLANNING AND CITATION
Mayfield has large plots of lands yet to be utilized in productive projects and as an individual; I
plan on purchasing a land of 7acres and utilizing it into housing sector. The housing will
accelerate change in the town with the help of Mayfield Company since it is a well known
organization in creating new homes, offices and hotels as reported by Bracke and Tenreyro,
(2019). The development will benefit the surrounding community like New East Manchester.
The site where housing development is to take place is next to a major transport interchange
hence the project will be able to scheme itself according to Bhattacharya, et al, (2018, p 23). The
people living around the area will have opportunity to contribute in the management of the pack
and the area will have a number of security guards and body cameras. The housing project is

Development Proposal 10
intended to offer a large underground parking area and the research was carried out by Austin, et
al, (2016, p121).
Mayfield has been working with TfGM and LCR (London and continental railways) which are
the most developed organization hence creating good relation between the government and the
financial investors. Chief executive has developed a good relation with the city treasurer and
solicitor hence easy to follow up with the town regulations and taxes. The proposal has been
considered to be a part of the government initiative aiming to link residents with agencies to
enable a well developed workforce. Mayfield is considered to be a long term regeneration
aspiration hence the suppliers trust and believe in the consistency. The organization made it easy
to curb delaying of material teamed up in creating better transportation route and managing
transport system in the town.
MARKET
The market in the city is competitive since the city is rapidly growing with the help of Mayfield
Company. The company has been able to create social amenities and offices for the residents
hence with the increasing settlement, the demand or residential houses are high. Most of the
companies are located in the city since it has well connected transportation system raising the
standard of living up to 15% according to Allen and Hamnett, (2018). The realtors in the town
are always available to help in the marketing of the residential houses. Mayfield has created a
number of storey building to ensure residents never lack a home and this create a competitive
market for housing, reducing the cost of house from$500 to $400 since most people want to have
a site of the beautiful scenario. The people who work and live in the residential area will be a
great contribution to the upkeep and management of the houses hence reducing management cost
of the houses according to Wyatt, (2018) on management of residual areas.

Development Proposal 11
CHALLENGES
Since the town has retarded to be more of a remote area, Mayfield has a duty and a responsibility
of ensuring that the town thrives to create conducive working and living environment. Mayfield
has a duty of ensuring that the economy of the city is sustained and the competitiveness of the
city benefits the residents. A lot of unregulated vehicles may lead to insecurity in the housing
sector; hence the security officers have a duty to restrict the vehicles for security purposes. The
cost of employing realtors to market houses will lead to reduction of net income especially when
most residents prefer high storey building which may go at a cheaper price than others, as
researched by Bilotkach, et al, (2017). Underground car parks are extremely expensive and
unsustainable because in twenty years time the park will be void since people will not or will less
be driving cars. The company has limited number of contractors making it costly to hire a
contractor. McAllister, (2019, p 230), has done a clear report on planning on stalled buildings.
We will work together with the other local land owners to ensure that to ensure that with the help
of Mayfield we bring forth opportunities and high qualities homes. Collaboration with the city
council and the house owners will ensure that more housing opportunities are regenerated to
benefit a wider section of the community. Mayfield has a good relationship with Manchester city
council; hence the process of approving the framework will be easy. The company will include a
formal public consultation regarding the new housing later a document incorporating public
comments will be represented to the executive and later the proposed housing project can began.
The company will assist in loans or connect developer to banks that are well developed.
Mayfield Company will connect the individual to the best contactors and have a privilege to get
the best design available. Transportation connection is excellent hence Mayfield has a chance to
consults a number of suppliers to deliver material and in case on delay from one, you can request

Development Proposal 12
from another. In case of any challenge in the project, the company has experts who can advice on
how to solve the current problem and also help in forecasting the future of the project.
TIME SCALE
Stages Action Days
Pre development  Coming up with a
suitable area and testing it
feasibility.
 Engagement of the
town planner and the civil
engineering to know the
cost expected on
construction.
 Identifying the
available market and
identifying challenges
expected.
 Secure
construction permission.
 The accountant and
finance office will plan on
the budget to be used
 45-60
 60-90
 30-50
 40-50
 45-60
Construction  Vertical construction
 Schedule control on the
 250
 120