Municipality development costs are too high - Should we commission it ourselves?

Hello everyone,

the following situation with us:

We (or rather my father) own a plot of land on the outskirts of a village. The plot is directly adjacent to the last house of the village. Currently, the plot is not yet developed, meaning it is agricultural land. I asked the municipality whether it would basically be possible to build a single-family house on the plot and how the development of the plot would proceed.

In our municipality, the situation is such that plots are only developed if the municipality owns the plot. This means for us that we would have to sell our own plot to the municipality (at a price of about €22 per m², here the municipality is somewhat accommodating and would pay us the price for land with building expectation). Afterwards, the municipality develops the plot and sells it back to us as building land for €70 per m². About 700 m² would be developed later. In total, we would therefore pay €48 per m² to have the municipality develop our plot. For 700 m², this amounts to over €33,000, which we would have to pay for the development of our own plot.

Now my questions:

Is the municipality allowed to simply say that it will only develop plots if it itself is the owner of the plot?

And if so, shouldn’t the municipality’s purchase and sale prices for the plot at least roughly correspond to the actual development costs? €33,000 for the development of a 700 m² plot can never be justified solely by the actual development costs.

And the last question: Could we also commission the development of the plot ourselves? That is, engage companies to properly carry out the development. Thus, the municipality would have nothing to do with the actual development, at most with the final acceptance.

Thank you in advance for the feedback

The buyback also incurs additional purchase costs. I cannot tell you anything about the municipality's procedure. However, I want to tell you that you apparently significantly underestimated civil engineering costs. One meter of sewage pipeline with all the surrounding work like road opening, etc. easily costs €1000/m.

48€ development costs are in my opinion not too much. The entire effort is only being made for you

The thing with self-contracting is a tricky matter. In order for you to build, sewage, possibly rainwater, fresh water, electricity, and potentially gas must be laid from the last developed property to yours. This means that the street, which belongs to the municipality, the district, the state, or even the federal government, must be opened up; this may require accepting traffic disruptions. Everything must then be closed up again, manholes must be installed, and manhole covers fitted. In other words, it seems unlikely to me that a municipality would allow a private person to carry this out, especially if they are inexperienced.

At the moment, the property is not yet developed, meaning it is agricultural land.

And thus not designated as building land in the land use plan?

Is the municipality allowed to simply say that they will only develop plots if they themselves own the property?

Of course, by the way, that is only the external development; meaning the street, sewer, etc. in front of the property. Then there is the internal development...

And the last question: Could we commission the development of the property ourselves? That is, hire companies to properly carry out the development. Thus, the municipality would have nothing to do with the actual development. At most, with the acceptance at the end.

As long as you probably don't make the deal, the city will not make any efforts to designate the property as building land in the land use plan.

Therefore, it is unnecessary to even consider carrying out the external development yourself.

The good thing about their proposal, by the way, is that the entire procedure including fees related to the land use plan and development planning etc. is also covered by the municipality.

Thank you already for your previous answers.

And thus not designated as building land in the land use plan?

No, in the land use plan it is currently not designated as building land.

Sure, by the way, that is only the external development; meaning street, sewer etc. in front of the property. Then comes the internal development....

I know that. That’s why the development costs just for the external development seem so high to me.