When builders cut and run

Unfinished subdivisions and abandoned development sites, the legacy of an economic downturn that began more than a year ago, are presenting local governments with a challenge:

In an area dotted with construction sites, how can cities and counties prevent builders from stripping acreage, then walking away?

In Sandy Springs, where 11 development sites now sit dormant, the city has placed a deadline on land-clearing. If developers clear-cut land, then let it lie fallow for more than six months, the city could revisit zoning conditions for the project.

The new authority, approved Tuesday night, is inspired by instances in which developers obtained a “land disturbance” permit —- allowing them to clear trees, shrubs and grass from a property —- and then never followed through with construction, said Wendell Willard, the city attorney.

Whether revisiting zoning conditions solves the problem remains to be seen. Some communities in the metro area have beefed up code enforcement, or are trying other methods to encourage developers to finish what they start.

In the past year, Gwinnett County has required some developers to have a building permit in hand before they start clearing land.

Cobb County, which last year had a wave of abandoned subdivisions, focused its efforts on enforcing existing codes, regulating things such as grass height. The county in recent months has had new buyers snap up many of the dormant sites, said Rob Hosack, community development director. “Above all else, we at least have someone we can call and say, ‘Hey, you need to come out there and cut the weeds, they’re getting too high,’ ” he said.

Some builders question whether tougher approaches aimed at compliance will do any good. Given the continuing crises in the banking and housing industries, developers may have little choice but to walk away from a site, said Christopher Burke, a spokesman for the Greater Atlanta Home Builders Association.

“They’re not starting because they can’t,” he said. “Or they’ve gone out of business.”

George McClure, a residential and commercial developer based in Cherokee County, said governments that try to revisit zoning may be overstepping their authority.

If vacant properties are poorly maintained, the cities and counties should fine the owner, whether it is a bank or a developer, he said.

“They have always come after the developer,” said McClure, who is president of the McClure Company and chairman of a litigation fund for the Homebuilders Association of Georgia. “And now the developer is out of business. And the bank owns the property.

“Enforce the rules that are on the books, instead of making new ones.”

‘Such a prime location’

In Sandy Springs, the barren acreage left behind is visible from many roads.

On Glenridge Drive, one of the city’s main arteries, an iron fence frames the dormant Glenridge Estates housing subdivision.

Developer Masoud Zahedi, owner of Farsi Properties, cleared the land and installed utilities for eight home sites, intending to sell to a home builder. More than a year after it was cleared, the land remains unsold, he said.

Located between new housing developments that range from the $500,000s to the $800,000s, the property is filled with weeds, some reaching 5 feet. Zahedi said he’s stuck in a bad market.

“It was such a prime location,” he said, “we thought it was immune from this mess.”

In Sandy Springs, discussion about new development regulations this month triggered questions among City Council members about what they can do with barren, dormant properties, beyond code enforcement efforts. While the newly revised regulations simply put a 180-day deadline on land clearing permits, the expiration date gives the city an opportunity to take another look at dormant sites.

Any change in project zoning would still require a council vote.

Willard, the city attorney, has advised the council that he wouldn’t feel comfortable with a change in underlying zoning, such as a switch from business to residential zoning. But he said the council could revisit certain conditions, which would allow a building to exceed height restrictions, for example.

Even some Sandy Springs council members say they aren’t sure the city should move in that direction. “That’s the $64,000 question,” Councilman Doug MacGinnitie said recently. “What are we trying to make them do? Are we trying to make them finish the project, or if they abandon the project, make it so at least it doesn’t look like an eyesore?”

Years of uncertainty

In some neighborhoods, the waiting game has continued for years, creating uncertainty for homeowners whose properties overlook clear-cut sites.

Among the most prominent examples in Sandy Springs is a 10-acre site on Peachtree Dunwoody Road, across from the North Springs MARTA station.

In August 2001, the developer, Roberts Properties, received approval from Fulton County to build a $150 million complex —- including a 12-story office building, a 10-story condo building and 14-story apartment complex.

In October 2005, a few months before the city of Sandy Springs took over, the developer obtained a land clearing permit from Fulton and cleared the wooded site, according to city documents. Construction has not progressed since, but because Roberts Properties continues to remove soil from the site, city officials say the company is complying with its land disturbance permit.

Given the years that have passed, neighbors are coping with the uncertainty of what will be built on the site, said Tochie Blad, an area homeowner. Every time she calls Charlie Roberts, the company president, she said, he assures her he still plans to develop the site. “I typically call in the fall, and he says he’ll build in the spring,” she said.

Last week, Roberts said he still intends to build on the Peachtree Dunwoody site, but said he has been held up by market conditions.

“We’re not sitting here on purpose,” he said. “We’re sitting here because we don’t have a choice, because of the economy. Believe me, I’d much rather be building on it.”