ABSTRACT
This chapter begins with an overview of the land development process and then lays out one form of feasibility analysis: revenue-expense analysis, which accounts for revenues and expenses in order to assess project solvency over time. It reviews the subdivision development process in order to explore the feasibility of creating more-sustainable subdivisions. Solvency analysis determines whether the land developer can stay cash positive from the time money is first spent through the time lot sales begin. For purposes of illustration, assume that a land developer is considering developing a medium-size residential subdivision in a growing suburban area. The designers then conduct a site analysis and develop programs and concept plans that are subjected to various feasibility analyses. The chapter explores the feasibility of creating more-sustainable residential subdivisions. It describes the land development process from the developer's perspective, the associated risks, and the ways developers manage risk.
