Zoning: Friend or Foe?

By Buster Owens

Theself-storage industry is experiencing the fastest growth rate to date. With theintroduction to the storage market of REITs, successful franchising, low cost andavailability of money, the expansion is tremendous. A successful self-storage developerfollows the same basic rules of real estate: make site selections based on location,location, location. With the larger companies aggressively pursuing the best locationsand willing to pay top dollar for them, an in-depth knowledge of the zoning process may bethe key to an individual's success in the marketplace.

Zoning can do one of two things: It can work against you, or it can be used to youradvantage if you assemble a piece of prime property and rezone it. The larger companiesare, generally, looking for property that is properly zoned and ready for development.They prefer not to spend an extended period of time on the rezoning process.

According to the Orange County, Fla., Code Book, the functions, powers and duties ofthe zoning commission shall be:

The powers and duties of the zoning commission refer to the maintenance of acomprehensive plan. Some states require all cities, counties and municipalities to submita land-use plan (zoning map) to the state for adoption. The land-use plan indicates to thestate where and what type of zoning is in place for the area. Rezoning a property from onemajor classification to another could possibly require an amendment to the state'scomprehensive land map prior to beginning the rezoning process. It is extremely importantto know the procedure in your jurisdiction.

Zoning Classifications

Zoning classifications can be broken down into five major categories: agricultural,residential, multi-family, commercial and industrial. In years past, self-storage wastypically grouped into industrial zonings. The industrial zoning was, in part, due to theterm "mini-warehouses." When discussing a proposed facility with the zoningofficial, the proper term to use is "self-storage facility." Mini-warehousesconjure the image of unattractive, metal-ribbed buildings with no architectural flair. Italso brings to mind small businesses operating out of these units, which can be unsightly.

As the industry has matured and zoning boards have become more familiar with the latestdesigns in self-storage, they have come to accept the fact that self-storage is a retailbusiness, and that a commercial zoning is more appropriate.

Making Zoning Work for You

Having reviewed the functions of the zoning board, how can I use this information to myadvantage? Following is a case study of the rezoning of a piece of property in OrangeCounty, Fla. The parcel is approximately 5.2 acres and is located in a prime, in-fillmarket. The property fronts two different roads and carries three different zonings. Partof the property along the major road is zoned C-1, another part of the property ismulti-family, and the third zoning is for high-density housing.

In this case, we want to rezone the property PD (planned development) in order to keep1.2 acres in the C-1 zoning and to rezone the remaining 4 acres to a C-3 zoning, which isconsistent to self-storage. As stated earlier, patience is needed for this exercise. Wewill create a timeline for the steps involved with the amendment to the comprehensive landplan and the eventual rezoning.

December 1996--Discussions with County Planning regarding land-use potential.

To begin the process, you need to research with the planning and zoning department whatyou would like to accomplish. This should give you an indication as to how well it will bereceived by the staff. It also helps to begin building a personal relationship with thestaff, which can be beneficial. I have found an artist's rendering of the proposedfacility to be one of the most important factors in helping to sell your ideas, not onlywith the zoning board, but with the neighbors and businesses in the immediate area.

January 1997--Presentation to and discussions with neighborhood groups andsurrounding businesses.

This might be the most important step. Before making formal applications to the county,contact the local neighborhood and homeowner's associations and go meet with them. This isnot a prerequisite to rezoning, but it helps to win over your neighbors and determine whattype of opposition you will be facing during the public hearings. Take your ideas andpictures to these meetings and explain what you would like to build. These meetings aretypically informal, allowing the residents to ask you questions about their concerns.

In this particular case, the homeowner's association for the condos to the north andthe Pine Hills Neighborhood Association came to our public hearings and spoke favorablyabout our proposition. We were able to convince the residents of the condos thatself-storage would be a good buffer between their homes and the commercial activityoccupying the corner. Furthermore, with the present zoning in place, there could possiblybe low-income housing built on the property. It is difficult for the board to deny yourapplication when you have the support of your neighbors and the surrounding businesses.

February 1997--Application for land-use change; small-scale amendment to thecomprehensive land-use plan.

The first official step is to modify the state of Florida's previously adopted land-usemap. Due to the size of the property, a small-scale amendment is required. Small-scaleamendment applications are only accepted twice a year and are only valid for the first 60acres that are applied for. Due to these restrictions, it is very important to know thesetimetables or you could be sitting around doing nothing for six months. It is alsoimportant to be one of the first to apply to ensure that you do not get removed from thedocket. Even though the application is made through the state, the local planning andzoning board handles the public hearings and will then make recommendation to the state asto whether it should be accepted or not.

March 1997--Follow-up presentation to concerned citizen groups for input.

The citizen groups have now had a chance to digest your earlier presentation and areexpressing their concerns.

April 1997--Public hearing; Planning and Zoning; land-use change.

This is the first in a series of public hearings concerning the amending of thecomprehensive land-use plan. Once again, the artist rendering of your proposed facilitywill be useful. Also, any support from the citizen groups that have been previouslyaddressed will be of tremendous value. If the neighbors like it, why would the board notbe in favor of the project? I cannot emphasize the impact of citizens standing before theboard during a public hearing and stating that a self-storage facility is what they wouldlike to see built on your property.

May 1997--Public hearing; Board of County Commission; land-use change.

This is the same type of hearing as the one above, only this hearing is in front of theCounty Commissioners instead of Planning and Zoning. You should prepare in the same manneras above.

May 1997--Application for zoning change.

Now that you are well underway with the amendment to the land-use plan, Zoning willaccept your application for rezoning. Remember that you cannot rezone the parcel withoutthe land-use amendment.

May 1997--Contract for survey and preliminary site engineering.

At this point in the procedure, you will have a pretty good feel as to where theprocess is heading. If everything looks favorable, it is time to start with preliminaryengineering on the parcel.

June 1997--Pre-application conference for preliminary site-development review.

A pre-application conference with the staff helps you to define setback requirements,aisle widths, height restrictions, floor-area ratios, etc., that will need to beincorporated into your development plan.

June 1997--Presentation to Development Review Committee for site development.

This step entails the submittal of a site plan that is fairly complete. The plan willshow 90 percent of what will be required to be on the plans once you submit for the actualsite permit. For example, this plan will show the building layouts, the location of theoffice, all utilities, grading and drainage plans, retention and landscaping.

July 1997--Public Hearing; planning and zoning change.

Finally, it is time to actually begin the rezoning process. Having been through thepublic hearings on the proposed land-use change, you see they are basically repetitive.Typically, you are working with the same officials on the rezoning as you did with thesmall-scale amendment to the land-use plan.

August 1997--Public hearing; Board of County Commissioners; zoning change.

This is the final hearing to have the zoning change adopted by the commission. This istypically a formality. Hopefully, at this point, the planning and zoning staff haverecommended the change for approval. If not, this is the time to fight your battle withthe commission. If this is the case, you will want to contact everyone you know who is infavor of your development and ask them to attend the hearing to speak on your behalf.

August 1997--Submission of plat for review.

Now that the zoning has been successfully changed, you will be required to prepare andsubmit the revised plat, showing the new zoning on the property. This plat will thenbecome part of the public record and will reflect the new zonings.

September 1997--Revisions to and final recording of the plat.

You have now completed the rezoning process that began almost a year ago. It is notuncommon for this timeline to be extended due to many delays from engineers, responsesfrom county officials, missed deadlines, etc.

October 1997--Submit plans and specifications to building department for permits.

January 1998--Receive permits and begin development of property.

After an overview of the system and timelines involved, it becomes apparent why mostpeople choose not to buy property without the correct zoning. However, the time is wellspent when you compare what you probably saved in land costs and the proximity to anestablished market.

In conclusion, the cumbersome procedures for the rezoning can indeed be your friend. Itmay open an opportunity for you that you would not of been able to achieve otherwise. Inorder to successfully guide your way through the system, here are some importantreminders:

1) Familiarize yourself with the process.

2) Recruit your neighbors early.

3) Be aware of deadline dates for submittals and public hearings.

4) Be friendly towards the staff.

5) Use artist renderings and photographs to sell your ideas.

Good luck, and keep in mind that the services of a professional planner might be theway to go. Any city will have consultants who specialize in these rezoning issues. Theyare already familiar with the local officials and have a working knowledge of theprocedures required by your jurisdiction. It could save you time and some frustration.

Emmett "Buster" Owens III is director of marketing for The Rabco Corp.,based in Ocoee, Fla. Rabco is a full-service contractor specializing in the design,engineering, fabrication and erection of custom and pre-engineered single- and multistoryself-storage facilities. For more information, call (800) 989-0220; Web: www.rabco.com.