{"id":1004162925,"date":"2017-01-09T09:31:06","date_gmt":"2017-01-09T17:31:06","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004162925"},"modified":"2022-12-07T06:03:22","modified_gmt":"2022-12-07T14:03:22","slug":"reid-wilson-deeper-pockets-and-more-patience-are-required-to-achieve-development-approvals","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/reid-wilson-deeper-pockets-and-more-patience-are-required-to-achieve-development-approvals\/","title":{"rendered":"Reid Wilson: \u201cDeeper pockets and more patience are required to achieve development approvals\u201d"},"content":{"rendered":"
\"Reid<\/a>

Reid Wilson, Chairman of Wilson Cribbs + Goren<\/p><\/div>\n

By Alexandra Pacurar<\/p>\n

Houston<\/strong>\u2014Commercial real estate in Texas just completed its strongest upcycle in the past two decades, in spite of the industry’s challenges. Commercial Property Executive<\/em> talked to Reid Wilson, chairman of Texas real estate boutique law firm Wilson Cribbs + Goren, about how the changes looming in the U.S. land use regulations will impact the development of quality commercial real estate. Wilson also discussed how land use and zoning laws in the U.S. evolved towards a more flexible area.<\/p>\n

CPE<\/em>: What is your perspective on the U.S. Government\u2019s overhaul of planning and development for public land (in connection to oil and gas drilling, mining, and grazing)? Is a drastic change in regulations imperative?<\/strong><\/p>\n

Reid Wilson:<\/strong> Ken Burns\u2019 recent video history of the national parks and federal land system vividly justifies protection of public land. However, reasonable private use of public land for commercial purposes has become both politicized and mired in bureaucracy. Change is needed.<\/p>\n

In the western U.S., public land is significant in area and when you add in federally owned facilities, it\u2019s an even larger footprint. In Texas, we are an energy state, so the production, processing\/refining and transportation of energy (in its many states) is critical. For many reasons, financial and political, the U.S. needs to be energy independent. Access to federal land, both onshore and offshore, for not only energy production, but transportation via pipelines, is required to achieve energy independence.<\/p>\n

The dust-up over the Keystone\/XL pipeline is an example of misplaced focus. There is no dispute that pipelines are the safest and most efficient method to transport hydrocarbons, yet this pipeline cannot get built. The alternatives of barge, truck and rail are inefficient and more prone to accidents.<\/p>\n

CPE:<\/em> How have land use and zoning laws in the U.S. evolved in the past 25 years? Do you feel that the regulations are keeping up with the times?<\/strong><\/p>\n

Reid Wilson:<\/strong> Like the U.S. stock market, the type, level and complexity of land use regulation has steadily risen over the past 25 years. From time to time, there are examples of regulatory streamlining, but the overall trend is clearly for more regulation.<\/p>\n

Today, there is more \u201csite specific\u201d land use regulation, where the government imposes detailed requirements and limits on a new project. The old \u201cdevelop by right\u201d scheme based upon compliance with clearly defined rules is being replaced, at least as to any type of potentially controversial land use. The result is high entitlement risk. The regulatory scheme retains more individualized discretion, requires more expense to achieve a decision and takes more time.<\/p>\n

Innovative development is more difficult and is more limited to either the very small or very large developer. Deeper pockets and more patience are required to achieve development approvals.<\/p>\n

New concepts like \u201cform-based codes\u201d have a strong planning\/intellectual basis, but once the usually capable and experienced authors of the code leave the city, the local staff often struggles to achieve the higher level goals of these new regulations.<\/p>\n

CPE:<\/em> Which would you say are the biggest challenges in commercial real estate right now?<\/strong><\/p>\n

Reid Wilson:<\/strong> Without a doubt, it is the heavy\/helpful (depending on your perspective) hand of regulation. My practice has meandered across most areas of commercial real estate since 1979 and all have some measure of regulatory impact to the point that a significant component of time and resources in every commercial real estate transaction is regulatory or impacted by regulations.<\/p>\n

Consider these areas of regulation:<\/p>\n