Looking to rezone a parcel that is currently DI (drilling island)

Los Angeles County, California
Land & New Construction
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Looking to rezone a parcel that is currently DI (drilling island)

Brian Caudill
Investor · Bakersfield, CA · Member since 2020 · 22 posts · 6 votes

Hey guys, I have a 2.62 acre lot that I’m in the process of purchasing to flip or develop. We opened escrow yesterday and it’s a 60 day with a 45 day inspection. Chicago title showed the zoning as R1 but after further digging with the county planning department I have found that the lot is actually DI which means Drilling island. Unfortunately there isn’t a lot you can do with a lot zoned DI but I’d like to know if anyone has had any luck changing the zoning from DI to R or C? From what the planner said, it can be done but there are absolutely no guarantees that it will go through. I’ll be in the deal around 100k so I need to figure out the likelihood of getting a zone change before I’m stuck with a lot that all I can do is park a few vehicles on or potentially use for a solar field. This is what I have found on DI uses

  • 19.48.020 - Permitted uses.

    The following uses and all others determined to be similar to these uses pursuant to Sections19.08.030 through 19.08.080 of this title are permitted in the DI district:

    A.

    Resource extraction and energy development uses:

    — Oil or gas exploration and production pursuant to Section 19.98.050 of this title.

    — Solar energy electrical generator which is accessory to a permitted or conditionally permitted use and where the power generated does not exceed the total on-site power demand.

    (Ord. G-7482 § 77, 2007; prior code § 7105.02)

  • 19.48.030 - Uses permitted with a conditional use permit.

    The following uses are permitted in the DI district with a conditional use permit:

    A.

    Recreation, entertainment and tourist facilities:

    — Park or playground;

    B.

    Miscellaneous uses:

    — Auto parking lot

    — Recreational vehicle or boat storage, private, when contiguous to, and for the benefit of, a residential development

    — Solar energy electrical generators when not accessory to a permitted or conditionally permitted use

    — Subdivision drainage sump, provided that mineral rights owners have given written consent.

    Thanks ahead of time to anyone who might be able to help. 

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Justin Hammerle
Realtor · Providence, RI · Member since 2022 · 404 posts · 262 votes
3y

@Brian Caudill - I would recommend amending the agreement contingent on the rezone.  As you mentioned there is significant risk and a rezone is not an easy lift.  If the seller won't go for it, I would kill the deal.

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  • Carini Rochester
    Investor · Rochester, NY · Member since 2016 · 576 posts · 358 votes
    3y

    For a price, ask for 6 months (or a year) to work through the zoning change process with the sale contingent on you getting the zoning and approvals you need/want. If the zoning change doesn't go through you would lose the money you paid for tying up the property for six months plus whatever you spend on the approval process.

    1Reply
  • Justin Hammerle
    Realtor · Providence, RI · Member since 2022 · 404 posts · 262 votes
    3y

    @Brian Caudill - I would recommend amending the agreement contingent on the rezone.  As you mentioned there is significant risk and a rezone is not an easy lift.  If the seller won't go for it, I would kill the deal.

    3Reply
  • Brian Caudill
    OP
    Investor · Bakersfield, CA · Member since 2020 · 22 posts · 6 votes
    3y
    Quote from @Justin Hammerle:

    @Brian Caudill - I would recommend amending the agreement contingent on the rezone.  As you mentioned there is significant risk and a rezone is not an easy lift.  If the seller won't go for it, I would kill the deal.


     Thanks Justin, that’s a really good idea and I might have to do that. Thank you for the suggestion man, it’s greatly appreciated. 

    0Reply
  • Brian Caudill
    OP
    Investor · Bakersfield, CA · Member since 2020 · 22 posts · 6 votes
    3y
    Quote from @Carini Rochester:

    For a price, ask for 6 months (or a year) to work through the zoning change process with the sale contingent on you getting the zoning and approvals you need/want. If the zoning change doesn't go through you would lose the money you paid for tying up the property for six months plus whatever you spend on the approval process.

    Thanks Carini, I replied to Justin and then saw your response which is essentially a more detailed version of his response. I think you guys are on to something with that “contingent on” amendment. Thanks for the breakdown, I was really excited about the deal because I had an investor lined up and everything. Obviously they only want it if they can develop so it’s a little scary betting the 100k on being able to rezone. 
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  • Matt Devincenzo
    Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
    3y

    In Socal you're probably looking at more like a 3-5 year process, and your entitlements will likely cost $500K (just a guess). It doesn't sound like you're familiar with CEQA or the associated requirements. In a nut shell you have to look at the full and complete scope of just about any discretionary project and (most likely) cannot process a rezone as a stand alone approval. You will likely need to initiate a Community or General plan amendment, provide a proposed use (sounds like residential), if that is more than 1 unit then you'll need a site plan, which would need a map to subdivide, requiring a 'Tentative Map', which then....and evaluate its impacts on water/sewer/traffic/greenhouse gas amongst others...

    The speed and efficiency of completing this does depend largely on the municipality, but if this is one of the big players (LA, SD, Irvine) then I'm really confident in my timeframe. A smaller area it could be 1/3 lower possibly...but it will still be measured in years and hundreds of thousands in costs not months and thousands...the devil is in the details and the details could mean I'm overstating the requirements, but I've got a several clients I can point to who I cautioned the same and they thought I was exaggerating only to find out years later that I was being as real and up front with them as I possibly could...

    1Reply
  • Paul H.
    Developer · Ottawa, Ontario · Member since 2019 · 105 posts · 58 votes
    3y

    If you're going to ask for contingencies on rezoning, also ask for the option to pay for 2, 3 month extensions.  This can really protect you when the process really drags out, and it will.

    Best of luck!

    0Reply
  • Brian Caudill
    OP
    Investor · Bakersfield, CA · Member since 2020 · 22 posts · 6 votes
    3y
    Quote from @Matt Devincenzo:

    In Socal you're probably looking at more like a 3-5 year process, and your entitlements will likely cost $500K (just a guess). It doesn't sound like you're familiar with CEQA or the associated requirements. In a nut shell you have to look at the full and complete scope of just about any discretionary project and (most likely) cannot process a rezone as a stand alone approval. You will likely need to initiate a Community or General plan amendment, provide a proposed use (sounds like residential), if that is more than 1 unit then you'll need a site plan, which would need a map to subdivide, requiring a 'Tentative Map', which then....and evaluate its impacts on water/sewer/traffic/greenhouse gas amongst others...

    The speed and efficiency of completing this does depend largely on the municipality, but if this is one of the big players (LA, SD, Irvine) then I'm really confident in my timeframe. A smaller area it could be 1/3 lower possibly...but it will still be measured in years and hundreds of thousands in costs not months and thousands...the devil is in the details and the details could mean I'm overstating the requirements, but I've got a several clients I can point to who I cautioned the same and they thought I was exaggerating only to find out years later that I was being as real and up front with them as I possibly could...

    I think this is the exact response I was looking for!! I was curious what hoops I would have to jump through and you’ve given me a pretty defined idea of what it would take to bring this to life. Obviously I’m going to cancel escrow and step away from it. Thanks again Matt! I really appreciate the feedback! Also, thanks to everyone who chimed in here. Have an awesome day everyone. 
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