Feasibility Studies
Practical insights from 5 re:build sessions on implementing feasibility studies in regenerative villages.
Overview
Feasibility Studies is a fundamental component of regenerative village development. This guide synthesizes knowledge from re:build gatherings to provide practical insights for implementing feasibility studies in community projects.
Methods and Approaches
Development planning process: In the development planning process, you're going to do land and site analysis and due diligence, choosing your general development type, choosing the systems that you're gonna have and then creating your market research and then have a detailed investment analysis with equity waterfalls, cash flow distributions, and limited general partners. This comprehensive process ensures all aspects of feasibility are thoroughly evaluated.
Location analysis: Feasibility studies should evaluate location and site context, economic analysis, and geographical advantages—understanding what makes a location viable and what challenges it presents.
Pre-acquisition studies: Some projects complete all feasibility studies before acquisition, ensuring they understand the project fully before committing. This approach reduces risk and enables informed decision-making.
Third-party verification: Engaging third-party experts for specialized analysis (such as carbon analysis, environmental assessments, or engineering studies) provides objective verification and credibility.
Benefits
- Risk reduction: Comprehensive feasibility studies identify potential risks and challenges before significant investment
- Informed decision-making: Detailed analysis provides the information needed to make sound decisions about project viability
- Investor confidence: Thorough feasibility studies demonstrate serious planning and reduce investor risk, increasing confidence
- Cost optimization: Identifying issues early allows for cost-effective solutions before construction begins
- Regulatory compliance: Feasibility studies help ensure projects meet regulatory requirements from the start
- Strategic planning: Analysis informs strategic decisions about development type, systems, and approaches
Key Insights
Comprehensive planning: Successful projects often include detailed business plans (sometimes 100+ pages), investment strategies, websites, initial land feasibility studies, and real estate negotiations.
Development planning process: The 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.
Location analysis: Feasibility studies should include location and site context, economic analysis, and geographical advantages—understanding what makes a location viable.
Pre-acquisition studies: Some projects complete all feasibility studies before acquisition, ensuring they understand the project fully before committing.
Action-oriented analysis: Feasibility studies should lead to clear action plans—think about what actions you might undertake based on your analysis.
Break-out analysis: When breaking down projects into components, feasibility analysis becomes part of the overall assessment process.
Third-party verification: Third-party carbon analysis can demonstrate significant environmental benefits. For example, ceramic domes show 85-95% reduced embodied CO2 compared to conventional construction for the same floor space.
Examples and Case Studies
Then business plan, like a hundred-page business plan, and a project like website investment strategy, and initial land feasibility studies, we did real estate negotiations
But at the time we've acquired the project, we already have all the feasibility studies
Implementation Guide
To implement feasibility studies in your regenerative village project, consider the following approach:
Phase 1: Initial Assessment (Months 1-2)
- Conduct preliminary site and location analysis
- Evaluate basic project viability and alignment with goals
- Identify key feasibility questions that need detailed study
- Determine which studies require third-party experts
- Develop feasibility study plan and timeline
Phase 2: Comprehensive Studies (Months 2-6)
- Complete land and site analysis with due diligence
- Conduct market research and demand analysis
- Perform detailed investment analysis with financial modeling
- Evaluate development type options and system requirements
- Engage third-party experts for specialized analysis (environmental, engineering, etc.)
- Assess regulatory and permitting requirements
Phase 3: Analysis and Decision (Months 6-8)
- Synthesize findings from all feasibility studies
- Identify risks, challenges, and opportunities
- Evaluate project viability and alignment with goals
- Develop recommendations and action plans
- Make go/no-go decision based on comprehensive analysis
- Create detailed project plan if proceeding
Phase 4: Documentation (Months 8-9)
- Document all feasibility study findings
- Create comprehensive feasibility report
- Prepare materials for investors and stakeholders
- Update project plans based on study findings
- Establish monitoring systems for ongoing feasibility validation