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With the rapid development of commercial and
industrial uses along the I-75 corridor in Oakland
County, Orion Township sought improve the
appearance and mix of uses located in its
southern 'gateway'-the area known as the
Brown Road Study Area. The Brown Road
Master Plan identified a portion of the Brown
Road frontage as 'Research Industry.' The
Township's Planning Consultant drafted text for
an Overlay District to encourage redevelopment
of the area into high technology research and
industrial park uses. The Township then sought
to determine if there was a market for the types
of uses envisioned and if development of the
study with such uses would be financially
feasible.
Our firm, in partnership with another, was
retained to prepare a two-phase analysis of these
issues. Phase 1 examined the market potential of
the Overlay District to determine if there was
already an adequate supply of lands zoned for
such uses in the marketplace and whether the
study area was competitively positioned to take
advantage of the market demand for such uses.
Then, working with a conceptual site plan and
with cut and fill estimates provided by the
township's engineering consultant, we utilized a
development approach to prepare the Phase 2
analysis of the potential financial feasibility were
the study area to develop as a high technology
research and industrial park.
Our analysis was the second phase of a two-part
analysis. The first study (performed by a partner
organization) examined the market potential of
the Overlay District to determine if there was
already an adequate supply of lands zoned for |
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such uses in the marketplace and whether the
study area was competitively positioned to take
advantage of the market demand for such uses.
The study concluded that there were reasonable
prospects of market absorption for the study area
were the Overlay District to be established.
Research steps for our analysis included
determination of the value of each individual lot
as it sells off (utilizing the supply and demand
analysis and concluded sell off timing
determined in the Phase 1 market analysis),
estimation of site improvement costs (other than
those provided by the township's engineer), lot
pricing, holding costs and the assumed
developer's profit.
A discounted future cash flow, following
deduction for developer's profit, was then
prepared to identify the residual land value, or
that amount of money a developer could feasibly
pay for the subject property.
The Phase 2 analysis was based on the
hypothetical assumption that the land was under
one ownership, that the proposed overlay zoning
district had been approved, that a special
assessment district was established to fund the
extension of sewer lines to the property, and that
a large on-site gravel pit was restored to a
minimum required grade level.
The Phase 1 and 2 reports provided input to the
variety of factors considered by the Township
relative to its implementation of the proposed
overlay zoning district in the Brown Road study
area. |
