Real Estate Development: Principles and

Process, 5th Ed
Miles, M.E, et al
CHAPTER 8

DECISION MAKER AND STAKEHOLDER

KELOMPOK 2:

Achmad Saifuddin (9116202301)

Jeffry Dwi (9116202303)
Ade Rochmanu (9116202316)
Novrizal Putra (9116202318)

PROGRAM MAGISTER MANAJEMEN TEKNOLOGI

BIDANG KEAHLIAN MANAJEMEN PROYEK
PROGRAM PASCASARJANA
INSTITUT TEKNOLOGI SEPULUH NOPEMBER
SURABAYA
2017
MANAGING CHANGE
Change is often opposed by communities because it threatens to disrupt daily life a new
project will alter the visual landscape, it will bring new people into the community, it will
increase traffic and daily habits will be affected.
THE NATURE OF CHANGE
A driving force behind change is growth.
Reaction to growth are not always positive, debate more often arises over how to stop it,
direct it to other places or make it happen more slowly.
DISCRETIONARY APPROVALS
The impertus for change to a plan arises for a number reason :
The general plan may have recognized the need for futere land use change.
Elected officials
The political constituancy
Complex projects
When a jurisdiction recognizes the need for flexibility in addressing land use issues and has
a process to accommodate unique situations or better manage growth, public participations
in the process is reopened.
ACCOMADATING STAKEHOLDERS
Theres a vague suspicion that a discretionary approval creates financial value for the
developer and landowner and is therefore an unearned incremeat rather than a means of
meeting the communitys needs.
THE PARTICIPANTS
The variety of participants include:
The developers team
Public outreach and public affairs profesionals
The land use attorney
The public sectors team
Stakeholders
Public Outreach
THE PUBLIC SECTORS TEAM
The primary responsibility of the project representative is to listen. The developer needs to
understand the possible impact that her proposal will have on the community and with this
knowledge take specific actions: change the project, mitigate its impact or provide
appropriate offsetting benefits.
 The public affairs consultants role is to keep the developer advised of the political trends
and issues that may impact the project.
The land use Attorney will advice on negotiations with stakeholders and translate agreement
into entitlement documentation is consistent across agencies and review documentation for
its integrity in the even of legal challenges.
There are several typical organizational structure in The Public Sectors team:
The Board
The Board summarize key issues from project proponents and opponents,
coordinate with the jurisdictions planning staff, synthesize the information
for the decision maker and evaluate broader political implication of the
project decision.
The Planning Commission and Other Commission
The Planning Commission and Other Commission may make final land use
decision, make land use decisions subject to appeal, make land use decisions
foor subsequent approval by the board, originate studies and regulations.
The Planning Staff
STAKEHOLDERS
A stakeholder is a person or group who may be affected by or have an interest in a proposed
development project. There are some example of stakeholder:
Individual stakeholder
Ad Hoc Groups
Formal and Semiformal Groups
Issue-Based Groups
Supporters

PUBLIC OUTREACH
There are high risk phase on the development process. The risk can be mitigate on some
ways:
Information Gathering
Charrettes
Disseminating Information
Building Support
Public Hearing
THE INTERSECTION OF PLANNING THEORY AND ENTITLEMENTS
Since the mid 20th century, planning theory has led or influenced the entitlement process in
three areas:
Participation The inclusion and representation of all stakeholders in the
entitlement process
Process The means by which stakeholders are empowered to influence the
character of developments
Physical Design The final form of the proposed development to meet the
needs of stakeholders.
The connection between theory and practice is not always direct. The regulatory system is
complex and often presents barriers to absorption of planning thought:
Regulatory lag
Conflicting agency
Market Resistance
Entitlement Barriers
ADVOCACY PLANNING
Advocacy planning has greatly complicated the approvals process, expanding the amount of
time and money that must be allocated to this phase.
PUBLIC/PRIVATE PARTNERSHIP
Public/Private Partnerships is a development venture operated through the collaboration of
one or more government entities and private sector developers.
Business agreements
Realited limited public financial resources
Public approvals
The active of involment
Public objective

PRIVATE VERSUS PUBLIC SECTOR RESOURCES

The private sector is often presumed to be more likely to be able to construct a large capital
project in a shorter period of time than a public agency counterpart and do so at or under
budget.
ORGANIZATIONS AND THE PUBLIC/PRIVATE PROCESS
Public/private development is frequently organized under a quasi-public institusional
structure that permits an organization to operate with greater flexcibility and fewer
restrictions than a city agency involved in development.
PRINCIPLE OF PUBLIC/PRIVATE PARTNERSHIP
Public aid should be delivered through cost sharing mechanism
Investment of public
The timing and condition of public
THE OBJECTIVES OF PUBLIC/PRIVATE DEVELOPMENT
Public/private partnerships are strustured as creative alliances that are intended to produce
net benefits for all parties.
FORMATION OF PUBLIC/PRIVATE PARTNERSHIPS
Public/private partnerships offer many advantages but a nearly equal number of challengers.
TERMS OF DEAL
Determining total development costs by project component
Determining the level of private financing availabel
NEGOTIATING THE DEAL
Profit sharing agreements have not always to produced substantial revenues for cities.
PRACTICAL PROBLEMS AND POLICY ISSUES
As cities share more of a projectsfinancial risk, they often ask for more contro
SPORTS FACILITIES
Some economists have argued againts public funding of sports facilities, showing that they
are often a bad deal for the city.