Real Estate Agent · Durham, NC · Member since 2019 · 2 posts · 0 votes
Regarding subdivisions that have disclosures indicating that annexation will take place 4-5 years in the future where properties have access to city utilities (water, sewer, trash, etc), what are the benefits of having delayed annexation to the city and/or developer of these projects?
Regarding subdivisions that have disclosures indicating that annexation will take place 4-5 years in the future where properties have access to city utilities (water, sewer, trash, etc), what are the benefits of having delayed annexation to the city and/or developer of these projects?
I've heard some developers do not construct streets as robust as cities might require. If the subdivision is not part of the city during development and construction, the developer might be able to get away with spending less to construct lower quality streets. And that approach might apply to other aspects of the subdivision.
Also, I've heard some larger developers entice cities to approve projects by donating land within the subdivision land for public parks, elementary schools, fire departments and such -- some go so far as to actually build these extras, saving the cities even more money. I would assume that subdivisions annexed years later would not have to provide such perks. So, the developer saves money up front, but still manages to convince buyers to move to the subdivision with the promise of a delayed annexation.