Site Selection
June 15th, 2007 by Todd
Many of the factors that should be considered in selecting a site have been outlined on the proceeding pages (Target Outreach area, Visibility, Zoning and Affordability). The challenge is often simply finding a site that is adequate to the Church’s needs. If the potential site has not presented itself, it would be wise to contact a commercial realtor for assistance. Consider retaining the realtor as your representative. Common real estate transactions have the seller of the property paying the realtor’s commission. As a result, the law requires a realtor involved in a transaction (including yours) to represent the seller’s interest first.
However, if you sign an agreement for the realtor to represent you in helping you find land, they are no longer obligated to represent the seller’s interest. The advantage to you is you know that the negotiations will be made to garner the best deal possible for the church. Although this may add to the price on paper a well negotiated deal will save the church money in the long run. Additionally, since the commission would be removed from the seller’s responsibility this may provide an additional incentive for a lower asking price. Beyond this, our best advice for finding a site is to pray and to be patient. Site searches can sometimes take years. God tends to use this time to refine the Church, clarify vision and, at times, perform some “pruning” to prepare the Church for the expanded territory. When faced with a delay, the Church can still employ other strategies to continue to grow. [See “Strategies to Immediately Increase Capacity“.]
Once a perspective site has been identified, assuming it meets the requirements for zoning, target market, and affordability, a proper analysis needs to take place. Typically this is performed within what is called a “due diligence” period. Any offer to purchase should include certain contingencies to protect the church’s interests and to make sure the site can be used for its intended purpose. The due diligence period must be long enough to obtain all of the necessary studies and approvals. Typical conditions that go into an agreement of sale would include:
- Financing, if required
- Environmental (lack of any hazardous material, disposal and presence of any environmentally restricted areas, such as wetlands or endangered animal habitats)
- Verification of an ultimate site capacity consistent with the church’s expectation. (There should be a clear declaration of the intended ultimate number of seats for a Worship Center and quantity of parking spaces necessary to sustain this)
- Municipal approval for the development being stipulated [Please note that in most jurisdictions they will not give a blanket approval for the ultimate development of the property – the Master Plan. Rather, their approvals tend to be “meted out” according to the phase of construction that is initially proposed. Most municipal approvals have a limited time period, such as one year, within which a building permit must be pulled in order to maintain the approval]
For an offer to purchase to be taken seriously, it is important that the conditions be tied to a realistic time frame. The due diligence period is based on the reasonable amount of time that it would take to satisfy all of the conditions. If you’re unsure of how to word the conditions that pertain to your situation and what period of time to include, please feel free to call us for a consultation.
Making the determination for what can be developed on the site over time will require a professional Architect, Planner, or Engineer to evaluate all aspects of the site and then to develop a real Master Plan. For more information on developing a Master Plan see “Master Plan Development“.