The Development Manager is a critical early position to fill in any social purpose real estate project. Different than the Project Manager who will manage all aspects of the project along the way, the Development Manager helps pull together the early team of professionals (from architects to planners to engineers and market consultants to environmental consultants and lawyers) to address the issues – financial, environmental, political, physical – that will need to be thought through to take your idea from a vision to a shovel ready project. Good Development Managers will help point out pitfalls and avoid (most) costly errors, and for not-for-profit partners, can also help skill up your board of directors and senior leadership to take on a large real estate project. By working together, the NFP and the development manager are a team that translates the organization’s vision into reality.
The duties of a Development Manager typically include some or all of:
? overseeing the preparation of development/concept plan
? undertaking market need/demand analysis (market research); the NFP may already have some of this from its programming work.
? identifying, evaluating and assisting with property acquisition; the NFP may already own land or be receiving a bequest or a gift of a City amenity
? assisting with project design (from market and budget perspectives)
? preparing capital and operating cost budgets
? assisting with zoning/rezoning and other approvals
? preparing applications to CMHC and/or BC Housing or other funders
? helping prepare marketing materials and coordinating marketing/application processes
? preparing financing application to investors and lenders, and helping negotiate terms
? helping design a transparent procurement process and construction contract
? may assist with monitoring and reporting on construction costs (but this may transfer to the project manager)
? ensure a plan for property management is in place (again, may transfer to project manager)
Developing a RFP for a Development Manager for project conception
Early in the dream of a real estate project, a NFP partner should issue a request for proposals from three potential development managers. The RFP should describe:
? vision for the project – what you dream of doing
? short background on your NFP – why this is on mission for you
? assets you already have – land you own, amenity you have negotiated, funds you have saved
? what discussions you might have already had with the municipal government or any other level of government
? what talents exist in your senior staff and your board of directors to help with this project
? any timelines that you think are important (Is your lease up soon? Is there a funding program you are aware of?)
At this early stage, you want to find a Development Manager to help you conceive the project and break it into chunks. Who you choose here must be a good fit for your mission, your competencies and inspires your confidence. You can offer a small contract (i.e. $10k inclusive) and ask the respondents to the RFP to indicate what they will do of the list above to get you started on the development path. Of course, they won’t do all of the above – it’s a just a small contract for them to help you get started on the project.