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Development and Annexation Agreements in Illinois

 Posted on January 10, 2024 in Residential Real Estate

Oak Brook real estate development lawyerReal estate developers in Illinois need to be aware of the potential implications of entering into development and annexation agreements with local municipalities. These agreements can significantly impact the financial viability of a project, as well as the potential risks and rewards. Understanding these agreements' essential terms and conditions is critical for ensuring a successful project. Without a development or annexation agreement, a developer risks having their project halted or modified, leading to significant delays and increased costs. To navigate this process, contact an experienced lawyer for essential guidance.

What Is a Development Agreement?

A development agreement is a contract between a developer and a municipality that sets forth the terms and conditions under which the developer may proceed with their project. The agreement will specify the type of development that is allowed, the number of units that can be built, the density of the development, the height of the buildings, the setbacks from property lines, and other zoning regulations. The agreement will also identify any particular conditions that apply to the project, such as environmental restrictions. 

What Is an Annexation Agreement?

An annexation agreement is a contract between a municipality and a property owner that allows the property to be annexed into the city limits in exchange for certain concessions from the municipality. The most common concession is an agreement to provide the property with utilities, such as water and sewer service. The annexing municipality may also agree to provide police and fire protection, trash collection, and other services. In return for these concessions, the property owner typically agrees to develop the property in accordance with the municipality's zoning ordinances. 

What Are the Key Terms and Conditions of These Agreements? 

The terms and conditions of development and annexation agreements can vary depending on the specific project, but there are some general categories that developers should be aware of. These include building code requirements, zoning regulations, environmental impacts, financial considerations, and community benefits. 

Building code requirements typically dictate things like the building materials that can be used, fire safety standards, and accessibility guidelines. Zoning regulations can dictate how dense or tall a building can be and what type of businesses are allowed to operate within the space. Environmental impacts can include things like noise pollution, traffic congestion, and air quality concerns. Financial considerations can include bonds or other financing mechanisms the municipality may require. Community benefits can include public parks or affordable housing units that must be provided as part of the development project. 

It is important to note that these are just general categories – each specific project will have its own unique set of terms and conditions that must be negotiated between the parties involved. An experienced real estate attorney can help developers navigate these negotiations and ensure their rights are protected. 

Contact Our Oak Brook, IL Real Estate Development Attorney

Developers should consider both development and annexation agreements before proceeding with any new projects. These agreements are important because they set forth critical parameters for the project, such as the types of development that will be allowed and the number of units that can be built. With these agreements in place, developers can avoid having their projects halted or modified down the line, which can lead to costly delays. If you have any questions about development or annexation agreements, contact an experienced Naperville, IL real estate lawyer at Lindell & Tessitore, P.C. by calling 630-778-3818. We can advise you on your specific situation and address your needs and concerns throughout your real estate development project.

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