Episode 3: How to Get Ahead of Offsite Improvements

You think you’ve found the perfect site… until the city drops a five-page list of offsite improvements you never budgeted for. Suddenly you’re staring at tens, maybe hundreds, of thousands of dollars in “improvements” you didn’t plan on.

Ouch!

I’ve watched this play out more times than I can count, and it rarely ends the way developers hope. So, how do you protect your project before offsite improvements sneak up on you?

Let’s talk about it in today’s episode of Just One More Site. 

Common Offsite Improvements and Why They’re Required

So, what is an offsite improvement, why do they exist, and why is it your responsibility to improve something that isn’t even on your property.  

First, what are offsite improvements? Simple: they’re fixes the city wants to complete off your property. Think road widening, turn lanes, utility extensions, fire hydrants, sidewalks, ADA upgrades, sewer fixes, stormwater upgrades, or even adding road lighting. Cities require these for safety, traffic management, accessibility, and to bring aging infrastructure up to today’s standards.

It may seem unfair, and often it is pretty unfair. You didn’t break it and you weren’t the one who miscalculated what 80s infrastructure could support, but you’re the one who has to fix it. And if you’re not ready for that reality early, your projected ROI can get away from you fast. 

I recently had a client with less than 150 feet of frontage in an infill lot who will be responsible for installing nearly 700 feet of sidewalk and street lighting to bring the rest of the development up to 2023 code. It’s not fair, but it’s a requirement for whoever wants to develop that lot and if you don’t someone else will.

How Offsite Improvements Derail Timelines and Budgets

How do these offsite improvements derail your project? First, they trigger extra engineering, civil design, and coordination that you didn’t plan for. Then you’re waiting on public works, traffic engineering, or even utility companies to weigh in and none of those groups move fast. 

Your construction schedule can’t advance until their reviews are done, which means delays in your CUP, your building permit, and even getting your project out to bid. And of course, the surprise price tag. Offsite improvements can jump into the six-figure range quickly, which is enough to flip a healthy pro forma upside down.

All of this creates a domino effect where even a small request can stall the entire project.

We have a client that kicked off a project with us in Spring of 2024 that is still waiting for a new deceleration lane and new traffic lights to be completed so he can submit for building permit and get started on his own project. Fortunately, the landlord is footing the bill, but he’s still stuck in limbo waiting for offsite improvements outside of his control.

How to Get Ahead of Offsite Improvements (and Keep Your Project Alive)

Here’s the key to getting ahead of offsite surprises: Planning & Research.

We start with what we do best: conceptual site planning and pre-application meetings. Sitting down with the right city departments before kicking off a project almost always uncovers potential issues like deceleration lanes, utility relocations, or stormwater upgrades before they turn into costly delays later.

Then there’s what a smart developer brings to the table… Early recon work like GIS checks, utility research, traffic counts, and reviewing existing infrastructure helps set realistic expectations. Some developers even plan for the unplanned by including a provisional offsite allowance in their budget. So much as a rough placeholder can make the difference between a project that keeps moving and a project that dies on the spreadsheet. Plus, if offsite improvements aren’t required, then that just makes your bottom line look even better!

Offsite improvements aren’t a problem when you spot them early. They only become a problem when you don’t. That’s why we built the Hover Development Roadmap. It shows you every step between choosing a site and opening your doors, including where offsite improvements usually appear and how to plan for them before they stall your project.

If you want clarity on your next site, download the Roadmap by submitting the form below or reach out for a walkthrough. It’s the simplest way to understand the path ahead and keep your project moving. I’m Kyle May and thanks for watching Just One More Site!