What do land development expenses encompass for an Epcon Communities project?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Land development expenses encompass all horizontal construction costs that are required to bring entitled raw land to a point where Units and other amenities are permitted to be constructed. These costs typically include conceptual site plans, all materials, labor, hard and soft costs, fees, permits, plan reviews, inspections, testing, bonds, letters of credit, site plans, erosion and stormwater control measures, demolition of existing structures, temporary access to the site, clearing, mass excavation, retaining walls, temporary and permanent utility services, streets, roadways, sub-base and base, curbs and underdrains, street lighting and signage, fencing and any other facilities or work that is required to complete the land development. Any necessary off-site improvements that may be required to accommodate the on-site improvements are also considered a cost of land development.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 22–32)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, land development expenses encompass a wide array of horizontal construction costs necessary to prepare raw land for the construction of units and amenities. These expenses are crucial for bringing the land to a state where building is permitted.
Specifically, these costs include both materials and labor, as well as hard and soft costs, fees, permits, plan reviews, inspections, testing, bonds, letters of credit, and site plans. Additionally, land development covers erosion and stormwater control measures, demolition of existing structures, temporary site access, clearing, mass excavation, and retaining walls.
Furthermore, the expenses extend to temporary and permanent utility services, streets, roadways, sub-base and base, curbs and underdrains, street lighting and signage, and fencing. Any off-site improvements required to support the on-site developments are also included as part of the land development costs. For a prospective Epcon Communities franchisee, understanding these comprehensive costs is essential for budgeting and financial planning when developing a new community.