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Thought Leadership: Business Strategy

Top five considerations when a developer approaches

When approached by a private developer, organizations often find themselves at a crossroads. The opportunity to collaborate with a developer can be enticing—bringing new investment, improved financials, revitalization, and economic growth among other benefits. However, these discussions require careful evaluation to ensure the partnership aligns with your organization’s goals, legal authority, and broader interests. The stakes are high, and making an informed decision is essential to avoid unintended consequences. Below are key considerations to help you navigate these conversations with confidence and clarity.

1. Determine whether a partnership is permissible

Before engaging in discussions, first determine whether your organization has the legal authority to enter a development partnership. Some entities face statutory, regulatory, or policy limitations that restrict certain agreements. Public land use, financial commitments, and operational responsibilities may be bound by existing frameworks that dictate what is and isn’t possible. Consulting legal experts early in the process can clarify feasibility and identify legal pathways for collaboration.

2. Clarify desired outcomes: why are you considering this partnership?

A successful development partnership begins with a well-defined purpose. This purpose should align with your organization’s mission and strategic vision. Consider these questions:

• How does this opportunity support your core mission and priorities?
• Does it fit within your existing strategic plans and objectives?
• What specific outcomes do you hope to achieve?

Clearly defining your objectives will guide negotiations and help ensure the project remains aligned with your long-term goals. Being proactive in setting success metrics will safeguard against a project straying off course or failing to provide meaningful benefits.

3. Assess impact and necessary support

Development projects can create ripple effects, impacting organizational leadership, constituents, businesses, advocacy groups, etc. Before moving forward, evaluate the potential impact of the proposed development and anticipate the support that would be necessary to advance the initiative.

Consider the following:

• Impact: How will the project benefit the organization, constituents, businesses, and the local economy? Will it improve financial performance, enhance quality of life, create jobs, or lead to displacement?
• Engagement: Who within your organization or external stakeholders needs to be involved to help advance the project and gain necessary approvals? Who might support it, and who might oppose it?
• Case Building: How can you best engage and educate stakeholders about the benefits and trade-offs?

Engaging stakeholders early fosters transparency, builds trust, and helps prevent conflicts that could arise from poor communication or a lack of inclusivity in decision-making.

4. Evaluate feasibility

Before making commitments or entering negotiations, assess the project’s feasibility to decide whether further exploration is warranted. A preliminary evaluation helps gauge whether the opportunity is worth pursuing before investing significant time and resources in due diligence activities.

Key factors to consider:

• Market demand: Does the project align with current market trends and community needs? Is there a clear audience or user base?
• Financial feasibility: Are the projected revenues, costs, and funding structures realistic? Are there any immediate financial red flags?
• Sustainability: Is the business model sustainable, or does success depend on ongoing subsidies or overly optimistic growth projections?

If the initial assessment suggests strong alignment with your goals and no immediate feasibility concerns, a full market and financial feasibility study should follow to support a well-informed decision.

5. Establish a clear process for moving forward

If the partnership is legally allowable, aligns with your desired outcomes, gains stakeholder support, and proves feasible, the next step is to define a structured process for further due diligence and development of deal terms. Without a clear framework, even well-intended partnerships can become bogged down by inefficiencies, miscommunication, and unforeseen roadblocks.

A well-organized process should include:

• Responsibilities: Clearly defined roles and responsibilities to prevent Misalignment.
• Approval Process: A structured process with key milestones to secure necessary approvals.
• Collaboration: Regular meetings to facilitate collaboration and informed decision-making.
• Timelines: Realistic timelines for due diligence, presentations, negotiations, and approvals to keep the project on track

Having a roadmap ensures alignment among stakeholders, manages expectations, and helps address potential challenges before they become major obstacles.

Conclusion

Being approached by a private developer presents both opportunities and challenges. Improved financial performance, economic growth, improved infrastructure, and enhanced amenities can be substantial benefits—but only if the partnership is well-structured and thoughtfully evaluated. By taking the time to assess legal authority, clarify desired outcomes, engage with stakeholders, evaluate feasibility, and establish a structured process, your organization can make informed decisions that protect its interest and contribute to long-term success.

At Brailsford & Dunlavey, we specialize in guiding public entities through these complex conversations. Our expertise ensures that partnerships are strategically structured and aligned with the broader needs of the community. If you’re evaluating a private development proposal, we’re here to provide analysis, insights, and guidance to help you make the best decision for your organization and the communities you serve.