As the housing and commercial real estate markets continue their recovery, projects that have lain dormant for any number of reasons are beginning to move forward. One of the most important factors in any real estate development is the land use entitlements and discretionary approvals obtained. A developer may have obtained certain approvals from a city or county such as a general plan amendment, a rezoning of the property, a tentative and final tract map approval, or even a development agreement all accompanied by a certified environmental impact report in satisfaction of the California Environmental Quality Act. In most jurisdictions, however, the entitlements will lapse if the project is not implemented within the time periods specified in the approvals and permits, and a failure to timely implement approvals could lead to their loss.
Therefore, a developer who seeks to revive a partially or wholly unrealized development project must first determine three key pieces of information: (1) what development rights were originally granted; (2) whether any of those development rights have vested; and (3) if the existing project is not viable, whether a revised project would require further environmental review.
