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Environmental Review Delay Cost Calculator

Environmental review timelines can stretch from months to years.

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%
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Total review delay cost

$2,520,000

Land carry cost

$1,800,000

Soft cost burn

$720,000

How the math works

Extra months = actual − expected. Carry = basis × COC × (extra/12). Soft = monthly × extra.

12 extra months × ($15M × 12% + $60k × 12) = $1.8M + $720k = $2.52M review delay cost.

How to Use

  1. Enter land acquisition cost basis.
  2. Enter cost of capital %.
  3. Enter expected review months.
  4. Enter actual review months.
  5. Enter monthly soft cost burn.
  6. Read environmental review delay cost.

Frequently Asked Questions

How long do environmental reviews take?

Categorical exclusion (minor project): 1-3 months. EA (Environmental Assessment) under NEPA: 6-12 months. EIS (Environmental Impact Statement) under NEPA: 18-48 months. SEQRA (NY state): 9-30 months. CEQA (CA state): 12-36 months. Litigated reviews: 3-7 years. Timing heavily influenced by project size, community opposition, agency backlog, and litigation likelihood. Consult an environmental law firm at concept stage.

Why does review take so long?

Required: site studies (phase I / II / III environmental), habitat/species review, cultural/historic preservation review, traffic study, stormwater review, air quality, water supply/demand, sewer capacity, energy/utility capacity, noise study. Each is a separate consultant and report. Agency review rotation, public comment period (30-90 days typical), response to comments (2-6 months). Institutional developers hire environmental project managers to coordinate the dozens of moving parts.

Can you accelerate review?

(1) Tiered environmental review — use prior planning area review to cover site-specific review. (2) Cooperating agency approach — federal, state, and local review in parallel. (3) Community benefits agreement to preempt opposition. (4) Mitigation bank credits to avoid individual mitigation development. (5) Combined EIR/EIS (joint NEPA/CEQA document in CA). Smart sponsors can cut 9-18 months off base case. Amateur sponsors often add 12-24 months by doing things in wrong sequence.

What's the economic cost?

Land carry at cost of capital (10-15% of acquisition) is dominant. Soft cost burn (legal, consultants, design maintenance, property tax, management). A 12-month review delay on a $30M land purchase at 12% = $3.6M carry + $600-1,200k soft cost = $4.2-4.8M cost. Environmental review delays kill deal IRRs — many sponsors walk away during review rather than bleed through a protracted process.

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