By Matt Robertson, Scott Long Construction
Searching for new land to build can sometimes be difficult, especially when you are looking to build a new church. Here are three important guidelines to follow when finding the right piece of land.
1. Check Zoning Restrictions. First and foremost, when you find a property you might be interested in, check the zoning laws to verify that a church is allowed to be built on that particular parcel of land. Even if allowed, there is still no guarantee that a church can be built on it. You will want to do a thorough investigation of all o f the implications that come with the zoning. If not allowed by right, many zoning classes will allow a church, but with additional restrictions. While these addition restrictions may be limited, they can be debilitating to your purchase. Usually, additional restrictions involve a Special Exception or Conditional Use Permit which requires approval by the planning commission as well as your county, town, or city board. Be prepared for this process to take at least 6 months and potentially over a year.
2. Check on the Utilities. Where are the utilities like water, sewer, and natural gas that will support your facility located? A well or septic field may be allowed, depending on the size of your building and the jurisdiction, but may not be feasible. Further, your building may also require a sprinkler system. If the closest utilities are a great distance from the land, then additional costs to run utility lines or build on-site water containment infrastructure (for fighting a fire), should be factored into the actual price of the property. These costs should be used as a negotiation point for the price. In addition, if utilities are “at the street”, then ensuring that you can tap into the line and that sufficient capacity is available is critical. The answer can be affected by a number of things like a moratorium, private ownership of lines, current infrastructure size, etc.
3. Paying for the land. How do you plan to pay for the land? In today’s lending environment, plan on having a significant amount of dollars for the down payment. At least 50% cash for land is normal today; 50% will potentially be the maximum amount that a lender will loan on the property. Lenders always want to mitigate their risk in the deal, especially with a church. Working with your lender early in your search to understand your financial capabilities is highly recommended. Further, bringing a team of people on to provide counsel to you through the land acquisition and the necessary due diligence can save time and money in the long run. These professionals should include a commercial real estate broker, builder, architect, civil engineer, real estate attorney, and lender.
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