From red tape to results: Transforming the development review process for local government leaders

Efficient permitting and development review processes empower local governments to better serve the community, support economic vitality and uphold regulatory standards. The effectiveness of a city or county's development review process is crucial for ensuring predictable and consistently applied processes and cycle times.

Challenges in development review processes

Our process improvement team has identified challenges that occur in large urban areas, experiencing a surge in development applications as the economy recovers and small municipalities facing growth pressures due to an abundance of un- and under-developed land. Development processes are often complex, involving multiple layers of review and approval across several review stages (e.g., pre-application, application intake, land use and subdivision review, infrastructure development, site plan review, permit issuance, building construction, inspections and project completion).

The complexity of land use and land development permitting review and approval processes can significantly challenge developers and contractors. An application for a new commercial or mixed-use project can involve numerous reviews and approval cycles by various government departments (planning, community and economic development, public works, fire, parks and recreation), external agencies, boards and commissions (planning commission, and zoning board, architectural design review boards, etc.), as well as city council meetings and public engagement sessions.

Each stage of the process requires detailed documentation, regulatory compliance and coordination among different review and approval entities. For instance, the land use analysis might necessitate an environmental impact assessment, re-zoning and additional meetings with review staff. Similarly, the infrastructure development stage could involve coordination with utility companies, adherence to safety standards and detailed engineering studies and inspections. This multi-layered approach ensures thorough scrutiny but can also lead to delays and increased costs if not managed efficiently.

Common pain points

Based on our work in this area, we have identified three common pain points that hinder the effectiveness of development permitting processes.

1. Misalignment between staffing and increasing permit applications: Both large and small municipalities have experienced a rise in permit applications. Staff vacancies and inadequate staffing levels can impede process efficiency and often extend overall cycle times for completion.
2. Unclear or conflicting guidance: Prospective applicants often face unclear or conflicting guidance about application/submittal requirements and the sequence of process reviews and approvals. Reducing communication gaps is key to minimizing delays.
3. Sequential review and approval processes: The complexity of review and approval processes across multiple departments and divisions of local government and outside agencies often necessitates a clear understanding of when sequential versus concurrent reviews can be used.

Development review best practices

Local government leaders should proactively review and improve their processes to enhance operational efficiencies by determining applicable best practices after identifying system pain points, such as:

• Leveraging technology: Maximizing the use of technology to provide seamless access to information, process status updates, online payments and to make resubmittals.
• Team collaboration tools: Using inter-departmental and inter-jurisdictional cooperation and communication methods to optimize resource allocation and reduce task and cycle times.
• Applicant satisfaction surveys: Assessing customer service can be a valuable tool for identifying areas for improvement that result in visible benefits for applicants and community members.
• Operational transparency: Operationalizing clearly defined processes and procedures will ensure predictable outcomes and build trust between the government, its applicants and constituents.

Effective use of digital tools and development permitting software

Utilizing data and analytical reports to manage workload and staffing capacity is essential to eliminate time delays caused by manual processes and the use of spreadsheets. Training staff to use data reports and unit level performance metrics helps inform and guide the assignment work and staffing decisions. Leveraging Baker Tilly's knowledge of digital tools and performance reporting can significantly improve productivity and workload management.

To further enhance the development review operations by local governments, Baker Tilly has the experience and knowledge to assist with leveraging specialized permitting software, including Accela, TrakiT, MyGov, EnerGov and other development systems  We find that local governments with development permitting software have not optimized use of these tools through training, system updates or routine use of system reports and metrics.