Rezoning Carry Cost Calculator

Rezoning applications tie up land capital for months or years.

Land acquisition cost

Annual land carry %

Attorney cost

Consultant fees

Months in process

Total rezoning carry

$1,745,000

Land carry

$1,320,000

Legal + consultant

$425,000

How the math works

Land carry = land × rate × (months/12). Soft = attorney + consultant.

$8M × 11% × (18/12) = $1.32M land carry + $425k soft = $1.75M rezoning process cost.

How to Use

Enter land acquisition cost.
Enter annual land carry rate %.
Enter rezoning attorney cost.
Enter consultant fees.
Enter months in process.
Read total rezoning carry.

Frequently Asked Questions

What does rezoning actually take?

Application submission (with land use attorney, planner, architect, engineer, landscape architect all providing exhibits). Neighborhood outreach and community benefits agreement. Public notice (30-90 day window). Planning commission hearing(s). Zoning board of adjustment (if required). City council vote (for larger rezonings). Referendum period (some states). Each step 30-90 days. Total: 9-36 months typical; 4-6 years possible in litigious or opposed projects.

Why rezone?

Density bonus (more units per acre = more value). Use change (single-family to multifamily; commercial to mixed-use). Height bonus. FAR (floor area ratio) bonus. Parking relief. Setback variances. Each gives development flexibility that increases land value. A successful rezoning typically doubles to quintuples land basis, net of all carry and legal cost. Riskier than stabilized acquisition but higher return — a classic value-add developer lane.

Costs to budget?

Land use attorney: $150-400k over 18-24 months. Planner: $50-200k. Architect (schematic design): $100-500k. Engineer, landscape, traffic, historic: $150-400k combined. Community benefits: $50k-several million depending on size. Permit application fees: $25-250k. All in: $0.7-4M before a single shovel turns. Institutional developers budget 3-6% of total project cost for pre-development. Don't underestimate.

What happens if rezoning fails?

Land value snaps back to as-is-zoned value — often 30-70% of what sponsor paid. Sponsor takes write-down. Can (1) re-submit with different proposal (common), (2) sell at loss, (3) hold and wait (political shifts), (4) develop per existing zoning. Major losses here are why sponsors often structure with partners bearing equity risk vs sponsors bearing execution risk. Evaluate downside case rigorously before committing land capital.