Development Process

Overview

Development Process is a fundamental component of regenerative village development. This guide synthesizes knowledge from re:build gatherings to provide practical insights for implementing development process in community projects.

Key Principles

Contract and agreement foundation: Establish clear principles for development while adhering to contracts and working on agreements that support the project's goals.

Methods and Approaches

Development planning process typically includes:

1. Land and site analysis and due diligence

2. Choosing general development type

3. Selecting systems (energy, water, waste, etc.)

4. Market research

5. Detailed investment analysis with equity waterfalls, cash flow distributions, and partnership structures

Execution phase: Once deals are executed, development begins with tender processes for constructors and contractors.

Regenerative lens methodology: A methodology for regenerative development applies at multiple scales—from individual projects to regional development, considering the full context of a place.

Generative framework: Move to a generative development framework that addresses climate, ecology, living systems, and well-being. The core principle is enabling people to live good lives, using the same holistic approach to meet various human needs including food, shelter, community, and purpose.

Crowdfunding approach: Some projects shift fundraising to crowdfunding, which, while slower, ensures the company can be owned 50% by customers and nature stakeholders, maintaining alignment with regenerative values.

Strategic thinking: For all new development, we need to think differently. While the status quo is strong, take a strategic approach rather than fighting against it—work around, through, or with existing systems to create change.

Benefits

• Research and learning: Traveling to different communities worldwide provides valuable insights into development processes, funding strategies, and project management systems that can make projects more efficient
• Pre-development acceleration: Applying these development elements can significantly help with the pre-development phase and accelerate the journey from dream to capitalization and reality
• Pre-sales funding: Pre-sales can help fund a lot of development without having to raise very large amounts of capital upfront
• Future planning: Proper development processes help ensure projects are viable long-term, though future uncertainties always remain

Key Insights

Global learning: Researching and visiting different communities worldwide (in places like Costa Rica, Thailand, Colorado, and elsewhere) provides insights into funding strategies and project management systems that can make regenerative projects more efficient.

Mission-driven development: Some projects have missions to demonstrate scalable, innovative real estate development that is self-sustaining, zero waste, and positive carbon sequestering, transitioning humanity toward a civilization where all humans are free to focus on their creative actions and purpose.

Comprehensive planning: The development planning process includes land and site analysis, due diligence, choosing development type, selecting systems, market research, and detailed investment analysis with equity structures and cash flow distributions.

Integration of resources: Compile all resources—business plan, development plan, financial model, and vision—into easily understandable formats like pitch decks and websites for communication and fundraising.

Pre-development support: These development elements can significantly help with the pre-development phase and accelerate the journey from vision to reality.

Early integration strategy: When building land-based projects, integrating residential or hospitality components early can serve a pre-sale function, helping fund the overall development.

Budget complexity: Land development typically involves many different budget items and line items, which are often quite expensive. Proper planning helps manage these costs.

Parallel processes: Multiple development activities often happen simultaneously—development and remodeling of assets proceed based on the type of asset being developed.

Examples and Case Studies

Early integration strategy: Projects that integrate residential or hospitality components early can use pre-sales to fund development, creating a self-financing model.

Component-based funding: If your project has a major component (like permaculture or another significant element), you may be able to fund not just that component's development, but also primary project costs, with potential surplus for additional development.

Expertise gap: Many regenerative projects lack expertise in both development and hospitality, making them first-time projects in these areas. This can be a barrier for institutional investors who prefer proven track records.

System design: Part of the development process involves designing specific elements of systems (energy, water, waste, etc.) that support the overall project development.

Best Practices

• Pre-sales funding: Pre-sales can help fund a lot of development without having to raise very large amounts of capital upfront
• Equity preservation: Pre-sales allow you to fund development without giving away large amounts of equity, as most development can be funded through pre-sales
• Component-based development: If your project has major components (like permaculture), structure funding to cover not just those components but also primary project costs
• Rapid execution: Once deals are executed, begin development immediately with tender processes for constructors to maintain momentum

Implementation Guide

To implement development process in your regenerative village project, consider the following approach:

Implementation details to be added.

External Resources

For deeper exploration of this topic, see:

• Coliving Portugal - Development process examples from Portugal
• Community Living Portugal - Community development approaches