Development Management

Acting as owner’s representative, International Resort Communities will oversee the entire development of a project — including negotiating contracts for final design and construction, monitoring compliance with all contracts, producing and overseeing work schedules, and monitoring construction draws. The goal is to keep the project on time and on budget.

International Resort Communities (IRC) is the LuxuryForSale.Properties Group’s property development arm.  It is owned by officers of LuxuryForSale.Properties and undertakes two missions the development management (fee development) of projects on a turnkey basis.  The service is offered to LuxuryForSale.Properties clients as an extension of LuxuryForSale.Properties’s complete service. With responsibility comes authority working for ownership groups to develop the complete project and negotiate for all construction elements, assuring compliance with all contracts and monitoring construction draws.  The goal is to deliver a project on time and on budget.

LuxuryForSale.Properties is expert in

• Identifying the best areas to develop and isolating those areas of national patrimony that should never be developed.
• Defining and refining the unique qualities of a country that can be marketed. These contribute to National Storytelling – a method LuxuryForSale.Properties uses to export the unique stories of each tourism area.
• Identifying and proactively marketing to developers and to retail users the sites identified to develop.
• Financing developers’ projects.
• Involving an area’s residents in tourism so that individuals and families quickly understand the benefits achieved from an efficiently run tourism program.
• Creating environmentally and economically sustainable development, with an unobtrusive “tracking program” to ensure private enterprise does what it agrees to do.
• Preserving, conserving and enhancing natural resources for future generations.
• Showcasing arts and culture to attract tourists.
• Creating low-cost energy and resource products that will not tax existing facilities.
• Harnessing the world’s tourism industries to involve them in “partnership” with the area to bring tourism in greater numbers to the country.
• Preparing and promoting consistent and quality tourism programs around the new drivers of tourism: education, involvement and activity – supplementing traditional drivers of sun, sand and snow.
• Projecting an attractive, modern image for an area while still showcasing its traditional values and culture.
• Determining methods to finance the entire procedure – paying for the entire effort out of the product created – thus self-financing the entire program.

The Stages of property development generally follow the below guideline.

STAGES OF PROJECT DEVELOPMENT
CONCEPT	Selecting a site for the desired project is the first step in undertaking a development. The physical characteristics should be suitable for the project envisioned, and the site should be permitted for the projected use or be capable of getting permission from the proper authorities for such use. A detailed concept document should be written setting forth the original idea of the developer.
INITIAL CAPITAL	Capital must be assembled to carry the project forward through its formative stages, (or until funding can be secured for development). This capital should be sufficient to cover the operating costs of the developer, pay for all feasibility studies, planning and preliminary architecture, and other consultants, and pay for the fees and expenses of financial intermediaries.
FEASIBILITY OR PRE-FINANCE	Feasibility of the study must be tested, and the concept refined. The project must be proven to cover debt service and an equity return. Market demand studies, competition studies, operational projections, land planning, engineering, and preliminary architecture must be completed. An economic study will show what the cost of development will be and predict the after-debt cash flow. The required equity and debt. The business plan, including the financial plan, operating plan and marketing plan together with the market and economic studies should be presented as one document in a financial presentation. A Letter of Intent from an operator and franchiser should be available. Operators should be secured if necessary, at this time. EIS documents should be obtained. A title binder should be evidenced. (see documents required for financing submission)
FINANCING	The financial presentation is then used to solicit financing to develop the project. All financing should be explored including traditional sources, equity investment, and other non-traditional methodology such as financial guarantees, etc.
DESIGN OR PRE-DEVELOPMENT	Once financing is secured, final design and working construction and engineering documents are prepared for all components, and final agreements with operators are negotiated. The documentation is refined for operations and marketing.
DEVELOPMENT	Construction commences, limited marketing commences. Management is retained,
OPENING	A grand opening is staged for the project, typically with public relations, promotional and advertising segments. As appropriate local and governmental leaders are invited to take part.
OPERATIONS	Project Management oversees the operation of the project and monitors the operation of each component. The marketing program continues. If further stages of development are to be developed, the process herein should be repeated.

It is the feasibility and pre-financial areas that are addressed in depth by LuxuryForSale.Properties. This includes involving expertise, and packaging as follows:

• Site Selection

Often several sites are available or owned – for instance with governmental sponsorship the best site must be selected from many available.

• Concept with market focus

The concept of what is to be developed always takes into consideration the market for the product, competition, transportation, and management

• Market Feasibility Studies

The direct competition is personally visited and assessed for amenities, market, quality, pricing, and management.

Other competition is assessed through internet evaluation, but in most cases, LuxuryForSale.Properties is familiar with most resort areas in the world.

• Economic Development Studies

Each component is studied for cost, market, probable price, and absorption with cash flows developed for each, and a master cash flow projection done for the entire project.

• Selection of Brands and Operators

Branding is increasingly important as to a consumer a branding of a property with a major name indicates acceptance and a known factor.  It also is an indicator of the quality of a project.

Management of each component is one key to success.  There are many good management firms in the world, but those that are acceptable for a product usually have had experience in the area, speak the language, and have a working knowledge of the type of product involved.

The overall resort management generally is built and trained by LuxuryForSale.Properties to handle all elements of the resort management including promotion, travel agent relationships, governmental relationships, utilities management, management of any property owner’s association, and building and grounds maintenance.

• Land Planning, including land use and master planning

This is the vital process of having the land utilized appropriately so that topography, views, access, and utilities are all planned and set forth graphically in a logical plan that can be used by engineers and architects.  Usually, the land planner dominates the creative trades working on a project as the entire process is though out in the whole by the land planner.

This key function is a specialty that takes years of experience and expertise to render the highest quality service.  Land planning is the professional design on paper of a development, the placement of various component types with the intra-relationship and synergism. Sports and amenities are place appropriately, roads, and utilities are planned for, and planning considers view, placement of buildings, efficiency of development, transportation, use of water, and development cost.

• Land Use Plans:  This is a more rudimentary form of planning where a use for the development of a property of a property are graphicly displayed.
• Master Planning:  A much more detailed presentation which is followed by engineers and architects in the installation of roads, water distribution, sewage disposal, electricity distribution etc. as well as the detail and dimensions of every tract or property within the development.
• Individual component planning:  The Master plan is broken down further for individual site plans, necessary so one component will not over balance another, or block another’s view.
• Preliminary architecture:

Architecture sets the tone and character of a development.  It can also be so outstanding that it is the indelible signature of a development.  LuxuryForSale.Properties creates the preliminary design of a projects major buildings in order to assure that architecture is of the highest standards.  Outside architects are sometimes associated with this effort.

• The architectural package includes artists renderings of a few key components, and an aerial rendering of the project.
• Architectural guidelines are also prepared as a part of the developer manual.
• Preliminary engineering:

The details of all infrastructure have to be well thought out. The land planner and LuxuryForSale.Properties’s engineering specials work together to create the most efficient way to install and operate water generation and distribution, install and collect black water, and then treat it for re use in irrigation, generate and install electricity, and design and install roadways, storm drainage, and access to the various components.

• Cost estimates and budgets:

The entire development effort including any initial project and components built must be estimated preliminarily for costs.  The development costs are broken into hard costs, soft costs, marketing costs, and financial costs.

This cost is compared against income estimates from the sale of property, and from income producing assets once developed.

• Pricing, and valuation:

The value in the market of each asset to be sold is accomplished and projected against the cost of development in order to establish cash flows and profitability.

This is entirely necessary for marketing, for borrowing the development loan, and to assure the project is profitable.

• Environmental reports:
• Business planning a total business plan is written in detail including the below chapters.  The plan must be frequently updated.
• Financial Plan
• Marketing plan
• Development Plan
• Operating plan
• Architectural guidelines and restrictions
• The Master developer’s manual:

All of the above is assembled in detail to provide the development a long-term guide.

• Financial Presentations:

Financial presentations are made in summary for and in detail together with an information collection point assembled with a code for interested parties.

The financial presentations are different for solicitation of equity investors, if required, and for a development loan.  Each component developed will be financed independently from the development itself.

The development loan generally finances all infrastructure, all common amenities, management and marketing, and the initial financial costs.

A separate presentation would be developed if necessary, for financial guarantees, if utilized.

• Management of entitlement issuance:

Entitlements is a word describing the issuance by governmental bodies for planning and zoning, environmental approvals and building permits.  This is the owner’s responsibility, but LuxuryForSale.Properties will supervise this and work with the owner to assure that the presentations are made, together with the preparation of information for presentation.

• Supervision and coordination of preparation of working drawings, plans and specs.
• Coordination and reporting with client.

ASSOCIATED  COMPANIES

The LuxuryForSale.Properties Group has developed long term relationships with several leading companies in the world that often collaborate on a project.  These companies are highly regarded specialist companies.