We have spoken before, here and here, about so-called "use-it-or-lose-it entitlements".

The catalyst behind this idea -- and it is just an idea at this stage, at least here -- is the belief that too many developers are sitting idle on zoned land. And they're allegedly doing this because they believe it will be worth more tomorrow.

Why bother building anything when you can instead just wait and make money that way?

To counteract this speculative force, some believe that one answer is to just strip land of its zoning entitlements if it's not used within a certain period of time (right now it lasts forever). I get why this is sometimes proposed, but my response to this has consistently been: it's a terrible idea.

It is a terrible idea because developers are generally always incentivized to move as quickly as possible. And it is a terrible idea because every now and then a period in the cycle will arrive where, it's not that developers don't want to build, it's that many/most can't.

And guess what? Right now is one of those times.

We have a running joke in our office about the manic nature of the development business. Sometimes you feel like you're having the best day of your life and everything is clicking and moving forward. And sometimes it feels like you're about to die (slight exaggeration). Things are stuck, nothing is moving, and/or a new problem has just popped up. So our team likes to joke that we have a "manic meter" in our corner of the office. Sometimes it's up and sometimes it's down.

Part of the challenge is that progress in the world of development generally takes a very long time. Whenever I talk to someone who isn't in the industry and I explain our timelines, they are usually shocked and question why things move so slowly. For example, we just spent the last 82 days trying to pull a building permit that realistically could have been issued in an afternoon. That is frustrating. Meter down. We have also spent more than half a decade working on some planning approvals. That's even more frustrating. Meter down.

The way I have learned to respond to this dynamic is to try and move as fast as possible. Never assume you have enough time, because things will generally always take longer than you expect. You need to be constantly moving and pushing. So you need to be impatient in the short-term. I also find it helpful to break big projects down into smaller projects so that you have wins to celebrate along the way and you can feel some accomplishment. Having hobbies that don't take decades to come to fruition may further help.

But alongside being impatient in the short-term, you also have to be patient in the long-term. Our team started working on One Delisle in 2015. We are now in 2021 and preparing to start construction. That's a marathon, not a sprint. So what you need to do is find the right balance between short-term impatience and long-term patience. This, I guess, is part of the manic nature of this business.

Meter up.

Strong Towns recently published an interesting set of articles talking about something they refer to as "pretextual planning." Articles here and here. What they mean by this is that sometimes we create planning rules not necessarily because we think they are the right thing to do, but because they serve as good bargaining chips when dealing with developers and builders. For example, let's not eliminate parking minimums but instead concede on it during the entitlement process. This, the articles argue, is not good practice. And I would of course agree with that.

But here is another very valid point that is made: when you make building so painfully complicated you end up creating a whole bunch of negative externalities. Not only does the cost of housing and building go up, but you also 1) make it more difficult for smaller builders to participate in the market and 2) you end up increasing the minimum size of new developments. And that is because as projects get more complicated and expensive, you end up needing larger and larger projects to amortize / justify the development expenses.

It's really too bad.