Developer's Agreement Information
A development agreement provides certainty for both the developer and the local government. The developer receives assurance that the regulations in effect at the time of the agreement will apply throughout the development period (even if the regulations change), and the local government receives commitments from the developer for: infrastructure improvements, impact fee payments, affordable housing contributions, environmental mitigation, and other public benefits. Development agreements are particularly useful for large, multi-phase projects that will be built over many years, because they protect the developer from regulatory changes during the extended development period.
Florida Legal Definition
Development agreements in Florida are governed by the Florida Local Government Development Agreement Act (Florida Statutes §163.3220-163.3243). Under §163.3227, a development agreement must describe: the legal description of the land, the duration of the agreement (not exceeding 30 years), the permitted uses, densities, and intensities, the public facilities and services that will serve the development, and the conditions and requirements for the development. Under §163.3233, the laws and policies in effect at the time the agreement is executed govern the development for the duration of the agreement, unless the agreement provides otherwise. Development agreements must be approved by the governing body after at least two public hearings (§163.3225).
How It's Used in Practice
In practice, attorneys negotiate development agreements as the capstone of the entitlement process for large-scale projects. The attorney drafts the agreement with the developer's goals in mind: locking in current zoning, vesting the development approvals against future regulatory changes, establishing the infrastructure contribution schedule, and providing flexibility for market-responsive phasing. Key negotiation points include: the duration of the agreement, the level of vesting (which regulations are frozen), the infrastructure contribution schedule, the triggering events for each development phase, the amendment process, and the default and termination provisions. The attorney also negotiates the public benefits that the developer will provide in exchange for the regulatory certainty.
Key Takeaways
- Development agreements lock in current regulations for multi-year projects.
- Duration: up to 30 years under Florida law.
- Governed by Florida Statutes §163.3220-163.3243.
- Required: description of uses, densities, services, and conditions.
- Protect developers from regulatory changes during extended build-out.
Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney–client relationship with Barnes Walker, Goethe, Perron, Shea & Johnson, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.
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