What is the purpose of a development agreement?

The purpose of a development agreement is to outline the responsibilities and obligations of the parties involved in a development project. This agreement typically serves as a legally binding contract between the developer and the local government or municipality, specifying what is expected from each party throughout the development process. It can include details about the timing of construction, land use, infrastructure improvements, and compliance with local regulations.

By clearly defining these responsibilities, the development agreement helps to ensure that all parties have a mutual understanding of their commitments and helps to prevent disputes that may arise during or after the development process. Such agreements also serve to protect the interests of the community by ensuring that the development adheres to predetermined guidelines and standards that benefit both the developers and the local population.

In contrast, while property tax responsibilities, design aesthetics, and zoning laws are important aspects of real estate development, they are not the primary focus of a development agreement itself. Property tax responsibilities are usually dictated by law rather than an agreement, design aesthetics might be covered under specific design guidelines or permits, and zoning laws are established regulations that govern land use rather than the contractual obligations between developers and municipalities.