LAND ECONOMICS AND PLANNING
Land Economics and Planning
An Analysis of the Economic and Planning Issues of the Company
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Title Summary |
Land Economics and Planning
An Analysis of the Economic and Planning Issues of the Company
Main Task
The study intends to analyse the economic issues that the client could encounter in the acquisition of the site and to provide recommendations in developing a plan for the site development.
Main Assumptions
The study is based on the following assumptions: the site is located in an urban area; the site is going to be sold through a public auction by the state; and the client intends to build a business park in the site.
Type of Development
The client, being a commercial developer, is going to establish another business park in the site.
Main Points
The study indicates that the company will have to disburse a lot of its financial resources and build on a respectable reputation in order to secure the acquisition of the site. Moreover, upon the acquisition of the site, the client is to work within the terms of the existing limitations provided by laws and legislation.
Main Conclusion
The study concludes that proper development planning will essentially realise the goal of the company as a whole.
Main Recommendations
The study suggested the client to maintain a good relationship with the local authorities; be well acquainted with the rights and limitations as stated by law; and to consider the general welfare of the community.
A. Economic and Topographical factors
1. The local authority development plan
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Chapter |
Economic issues |
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The acquisition of the land entails several considerations before the client should even consider it. The following discussions will specify these issues both considering the topographical and economic elements that constitute a huge portion of the acquisition process. Moreover, assumptions must be formulated in order to create a sound analysis of these elements. Within the discussion in this first part of the study, it is assumed that the location of the desired piece of real estate is located in an urban area. This indicates a considerable amount of resources is at stake in acquiring the asset given the value and location of the real estate. Another assumption is that the piece of land that the client wants to acquire initially belonged to the state. This means that acquiring the land will have to go through a process of bidding with potential competitors hovering at the side also pent up in acquiring the urban land. Considering these assumptions, the discussion on this part will be taking into account the possible influence of the economic factors as well as the topographic factors on site development, site bid, and site values. On the whole this part of the paper will take into consideration the potential extent to which economic resources are to be spent. On the other hand, the discussions will also look into the elements that affect the main location factors of the real estate. To this end, the researcher will consult past and existing literature on land economics.
Economic and Topographical factors
The key issue with regards to the acquisition of the said land is basically its nature as an urban land. Cities are normally seen as a chaotic area yet one could not discount the vibrancy that is similarly exudes. (, 2001, ) There is a condition called “urban sprawl” that tends to manifest this paradox. ( and , 1996, ) With the apparent sight of power, modernization, and internationalization present in the urban façade, an equally compelling challenge lingers. And normally for urban areas, the availability of space usually takes the top spot. This issue of directly space influences factors such as site development, site bid, and site values.
Site development
The issue on site development lingers on the fact that there are existing considerations before the site is developed. Based on the images on the site map, the adjacent areas could be directly affected by any construction or changes in the site. Both the northern and southern areas of the site would directly be affected. This is because a residential area is established in the northern part of the site. This means that any development measures done in the site should not adversely affect the living conditions and the condition of the environment of those in the northern part of the site. This is similarly the case on the southern part of the site. On the lower part of the map, a business park is installed. This could indicate that the said area is a commercial one, meaning that the structure that would be built in the instance of site development should complement the existing commercial area south of the site.
Site bid
The site in an urban location, and based on the assumptions in this paper, the government would be handling the bidding of this land. This means the client would be ready to subject itself to a highly competitive bidding alongside other business entities trying to acquire the real estate. ( and , 2005, ) It is also expected from the company to place a market-clearing price so as to keep up with the other business entities seeking to acquire the real estate. (, 1998,)
Site values
The clients have to expect that the value of the site would be considerably large given that it is an urban land. The acquisition of the land therefore starts at the actual realization of the client on the approximate value of the land in financial terms. Hiring a company that would help appraise the value of the land would help the client in establishing and building the necessary amount that would be able to outshine the bids of other business entities interested in the site. Moreover, the client should also be able to establish a competent reputation. This will help in presenting a favourable image to those auctioning the site.
Main location factors
There are also main issues in the context of location of the site. The site is said to be in the edge of the city. This means it is in between an urban and a rural area. It manifests some sort of urban hinterland that connects both the city and the country. According to the study of . (1995, ) there is a concept in urban planning in this context called urban fringe. The use of the real estate could be an instrument that would trigger an urban sprawl by engulfing areas that formerly owned by farmlands and country villages.
Moreover, based on the site map, the site covers several parts of the area that appears to be a part of an existing structure. Specifically, the park, paths, drains and a nursery is included in the area which the client intends to purchase. This may pose a considerable problem in terms of the possible conflict with urban policies the moment the client shows its intention to build over such establishments and structures. Opposition from different parts of society that would be directly affected by any project may have a considerable effect on the operations of the client.
A main consideration on this part for the client is to consult with the urban land use management policies used by the city. The knowledge of the legal frameworks regarding the use of land and policies such that the client may become aware as to whether their projects in the acquired area would be applicable and not in conflict with the future land use of the said policies. (, 2001, )
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Chapter |
Planning issues |
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Seeing the client’s background on commercial development of land, one could easily surmise that it is more likely that the site under consideration would become a business park in the near future. Thus this study similarly takes that assumption into consideration in formulating the recommendations for the development plan of the site.
Development plan
Organizations are now in a vicious field where cutthroat completion is commonplace among the players in their respective industries. The struggle to survive is dictated by the competitive advantage to which these companies possess. This is where plans and strategies come into play. As the definition shifted to the business side, the context of the term strategy similarly holds more weight than merely defeating a known enemy. In the current context, a battle of an organization with one’s self, particularly a struggle for development is apparent. The work of (1999) reflects this as he noted the work of stating that a strategy is more that a mere collection of choices that are carried out in order to “attain overtly stated goals.” This shows that the shift towards a more profound use of the term has emerged. On the other hand, According to the work of (1991, ) planning is normally used to guarantee that the company is able to acquire the future it seeks. This is done by removing the barriers that serves as risks for the organization as a whole. To a certain extent, the process is more of a tool for the primary decision makers of the organization. The use of planning allows them to carry out “strategic decisions.” ( and , 2002, ) In so doing, the managers could similarly take the necessary consistency needed to achieve organizational goals. On the whole, planning appears to be an instrument to which the managers and other decision makers of the organization could use to make the firm more adaptive and constantly at par with the general changes in every aspect of their operations.
The local authority development plan
The plan should closely consider the development plan of the local authority. Specifically, the local government policies involving the construction and even the actual operations of the establishments after construction is completed should be in concurrence with the development plan of the company. As stated in the study of and (2000, ) indicated that the local government possess a considerable control on the development of certain parts of the area such as roads and bridges, town planning, building regulation and inspection. This means that a substantial number of services (the construction of roads and bridges) that would essentially benefit the client come from the government. Similarly, it is the local authorities that help organizations in maintaining the integrity of the establishment constructed in the site. The imposition of building regulations and inspection compels the client to create and operate an establishment that will essentially meet the standards indicated by the local authorities.
Planning Conditions
Planning permission
The client should also obtain a planning permit to the proper authorities. Among the main objectives of the planning permit system was to get rid of the irregular allocation of land development benefits triggered by strictly land use control. According to the 1990, the client has to obtain a planning permission before initiating any development measures in the site. On the other hand, the client may also be subjected to the power of the Secretary of State with regards to specific regulations provided by The Building Act 1984. Specific areas such as standard of health, safety, energy conservation and accessibility are covered by the said Act. In the case of environmental issues, the client has to be aware of certain legislation such as Health and Safety at Work etc Act 1974, Occupiers' Liability Acts 1957 and 1981, Environmental Protection Act 1990, Pollution Prevention and Control Act 1999, and Control of Asbestos at Work Regulations 2002.
Section 106 Factors
Under the Town and Country Planning Act 1990, the client has to contend with a local planning authority provided that the Act permits him/her to bind himself/herself to the client legally to carry out a planning obligation. This is what is normally termed as the Section 106 Agreement. To a certain extent, this agreement is basically a tool for the local authorities to provide limitations for land developers such that their projects would not affect the community as a whole. In this case, the local authorities, given that the site covers a considerably wide expanse, may compel the client to plant a certain number of trees or shrubbery in the area and maintain it for a certain period of time. In the long run, this Section 106 Agreement with the local authorities will benefit the community as a whole.
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Chapter |
Conclusion |
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The planning process is basically a means to enable the implementation of the strategy as unencumbered as possible for the organization. As it has been said in the prior discussion, it is a tool to deal with change. Indeed, strategic planning recognizes the possible changes that may occur even before it takes place. This lessens the risk of huge loss and considerable drawbacks in the acquisition of the company goal.
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Recommendation |
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Based on the discussions above and the conclusion stated, the study provides several recommendations:
· Maintain a good relationship with the local authorities
The local authorities are the ones that implement the laws in the area which the client would have its site. It would be beneficial if the company would build good relations with the local authorities. This could be carried out by basically knowing the boundaries that the client has in the development of the site.
· Be well acquainted with the rights and limitations as stated by law
The knowledge of the pertinent laws and legislation directly affecting the development of the client’s site is beneficial for the company such that their actions are measured in such a way that issues on legal matters are seen.
· Consider the general welfare of the community
The limitations provided by law to the client and its fellow developers are geared towards the safety and overall benefit of the community.
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References |
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