The GlobeSt.com article "Will Development Save the Real Estate Cycle?" (by Kelsi Maree Borland | Los Angeles | 12/23/2015) spoke positively about LADBS' parallel processing and customer partnership approaches to the development process. The article was based on an interview between GlobeSt.com and Cox Castle & Nicholson partner Andrew Fogg regarding a panel discussion he helped moderate at their LA office called "A Regulator’s View through the Looking Glass." Ray Chan presented material at that event on how LADBS is, as Mr. Fogg said, "making the approval process feel like a fruitful partnership instead of a series of roadblocks."
The focus was the commercial real estate permitting process; how the City could be a partner and help facilitate development projects; and how development helps to save the real estate cycle from a dramatic dip. Mr. Fogg emphasized:
- "Traditionally, the design, permitting, and construction processes are addressed in a linear fashion, but Ray is spearheading efforts in LA to offer an alternative parallel design permitting process wherein developers are able to begin the plan check process directly after submitting conceptual designs, while simultaneously handling the detail and engineering phases of the approval process. The City of LA has had great success permitting a large number of large projects using this model, and individual developers reap the benefit of dramatically expediting their projects, reducing risk, and increasing speed to market."
- "A development cycle can last anywhere from 12 to 15 years, and Ray Chan and LADBS present a strong argument for fighting to stretch out the current cycle. The Department is committed to making it faster and easier to develop in LA. They are energetic about educating developers, on both the benefits of developing in LA and the positive impact that continued development would have on extending the real estate cycle, to avoid a repeat of the dramatic drop of the last downturn in 2008."
- "By expanding the development cycle, you create a higher cycle peak, a longer plateau and a gentler decline. The challenge is that in this stage of the cycle, continued development in LA would mean competing harder for development opportunities that are considering other markets. In other words, LA needs to differentiate itself beyond the fact that it is a metropolis with great weather. It needs to compete with both global markets like New York and London, as well as regional markets like Orange County and San Diego to attract developers, so LADBS is making a special effort to broadcast the fact that it is doing its part by establishing expeditious and client‐focused programs to help developers deliver projects both safely and quickly."
Mr. Fogg concluded with, "Everyone is really enthusiastic about LADBS' attitude of partnership and flexibility...The thing that struck everyone in the room was Ray and LADBS’ dedication to flexibility...The Department wants to make it known that they are dedicated to finding creative solutions. They want developers to know that they are not the keepers of the red tape, but rather their partners in breaking through it and getting to the finish line as soon as possible."