The property, zoned 3-acre residential, was 128 acres in 2 parcels of 60 and 68 acres, both in PA act 515, with a house centered on the 60 acre parcel. To subdivide or build (change the use) would result in a penalty and roll back in taxes. The 68-acre parcel had been for sale for $12,000 per acre for quite some time, with no buyer's interest, because of the large tract size. The land is located on an unpaved road with fields adjacent to the street, a low area in the center with a pond, rising sharply to high, wooded hilltops on either side.
The
goal:
A subdivision plan that would allow a quick sale of the house and a flexible
sale of the rest of the property over time. A limited budget did not allow
for large engineering costs, heavy site improvement costs or performance
bonds as a condition to subdivision approval, or rollback taxes and penalty
as a result of breaching Act 515. A sensitive plan was desired, but the
client wanted to maximize the value of the property within these parameters.
The
challenge:
A site analysis and analysis of the zoning and subdivision ordinances
showed that much of the land was either too wet or too steep, and high
density development would have to be tightly clustered in the lower fields.
The access to the high areas was limited and too steep for a public street.
A quick study of the market revealed that clustered homes on small lots
were selling for $250,000 - $350,000. The road would have to be paved,
a community sewer or water system would have to be designed and installed,
and extensive internal roads and stormwater controls would have to be
engineered and built. The alternate would be to sell to a developer at
a discounted value, subject to Township and other agency approvals, taking
more time, with unknown results. There was, however, a possible market
for large, secluded lots that would support expensive custom homes.
The
solution:
First the total tract was changed from Act 515 to Act 319. This allowed
it to be subdivided into 10-acre minimum size parcels, on which a home
could be built, with no roll back or penalty. A plan was developed subdividing
the property into 7 lots ranging from 10 acres to 30 acres for the premium
hilltop sites. All lots have their own access from the street and no site
improvements, public roads, common stormwater basins, or other public
improvements or permits are required. The secluded nature of the site
and large, premium lots on an unimproved road was treated as an asset
and marketed that way. The house and 2 other lots sold immediately for
an average land value of about $26,000 per acre, and the client has the
flexibility of selling the remaining lots, with price increases, over
time. 
This
plan actually creates more value for the client than a 45 lot clustered
development would, after discounting the site improvements and off site
expenses. Additionally, the buyers of the lots are afforded a great real
estate tax saving, since their land is valued as farm use under Act 319.
The owners are assured of continued low density due to the subdivision
design and the fact that the first lot owner to break the Act 319 covenant
on his lot pays the rollback and penalty for the whole tract. The Township
was happy to receive a low-density use, and approved the plan quickly.
The wet, low lying area in the center of the property was preserved as open area and the lots were accessed from the perimeter so that the homes could be located on higher ground and overlook the central open areas.