Monday, January 15, 2007

Proactive Communication for Real Estate Development

For the past decade, I have researched, worked for and served on numerous public and civic boards, all dealing with real estate development and revitalization. I’ve noticed that some projects sail through the zoning, design review or planning process with no opposition from adjacent property owners, homeowners associations or neighborhood groups. Other projects come before these boards amidst a groundswell of public opposition akin to peasants carrying torches and pitchforks. What’s the difference?

The most startling thing about the opposition is that it rarely has to do with the project itself. Frequently similar projects have been built nearby with no opposition. When opposition occurs, it usually stems from a lack of understanding between the developer and the stakeholders, and can reflect anger at being left out of the process.

When entering into any urban development, whether it’s renovating a single building or master planning a large infill site, a developer can be a good neighbor and stave off opposition by adopting a proactive approach and following a few simple steps.

Identify all the stakeholders. Depending on the scope of a project, there can be a great number of citizens and groups concerned about the outcome. Certainly adjacent property owners and neighborhood associations would be interested, as well as existing tenants in buildings being revitalized. Talk to everyone who could potentially be affected by the project, and ask them for ideas of other groups you should identify. You don’t want to be blindsided in the middle of the project by opposition from a group you didn’t even know existed.


Learn their concerns. Once you’ve identified all of the possible stakeholders, talk to each group or individual. This seems like a time consuming step, but it will save money and headaches down the road. If there are groups that oppose your project, learn why. Some of their concerns may be relatively easy to address, but ignoring them could solidify greater opposition in the future.


Speak their language. When meeting with homeowners groups, community associations, and individual neighbors, discuss your project in language that is easily understood by both sides. These individuals may not know what TIF is or care about TDRs, but they do care about community impact, pedestrian access, and views. Empathize with their concerns and explain the project in a way that facilitates mutual understanding and open communication.


Listen with an open mind. Although it’s a natural first reaction, don’t be too quick to dismiss any potential opponents as troublemakers or pests. Many developers have benefited from the open exchange of ideas and the input from people who have a vested interest in the positive outcome of a project.


Establish a collaborative process. Create a process that will allow stakeholders to be a part of the decision. Of course, there are many parts of a development project that cannot be open to collaboration, but identify those areas that can be collaborative, and find ways to bring as many of the stakeholders into the process as is reasonable. This gives potential opponents a way to get information and establishes good faith between the developer and the neighborhood.


Overall, be proactive. Don’t wait until opposition arises to get the stakeholders involved. By allowing those impacted by your project to have access to the decision-making process, you can avoid opposition that could cost your company time and money as the project develops.


Judy Morley, Ph.D., is the senior partner of Grasshopper Communications, which specializes in strategic marketing for real estate developers.

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