Before You Sign on the Dotted Line

• INTRODUCTION AND OVERVIEW
• GET TO WORK
• FORMING A TEAM
• ON LOCATION
• • Preparing for the Site Search
  • Renovation vs. New Construction
  • Where to Look for Leads on Spaces
  • Before You Sign on the Dotted Line
  • Designing the Space You Need
• FINANCE

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Photo courtesy of Sammons Center for the Arts.

After you have found the appropriate site, here are some of the tasks entailed before signing a purchase agreement:

Check Zoning

Zoning defines what kinds of activities are permitted in certain areas of the city. Properties in commercial and industrial zones may not be permitted for live-work purposes, while certain types of art such as glass blowing or welding might not be permitted in residential zones. Contact the city zoning office to determine the compliance rules for your project. Advocating for a zoning variance could add significant time to the completion of your facility.

Inspect the Building

Building inspection examines the physical condition of the building and estimates the need for repair.  It should be carried out by certified inspectors. Working together with an architect and structural engineer is recommended, as they can help estimate potential cost for renovation, taking into account both the current condition of the building and the goals of renovation. Please visit Square Feet Chicago for detailed information regarding inspection.

Check Building Codes

Building codes stipulate the requirements a structure should meet to ensure safe use. It may not always be transparent whether a live-work space should follow residential or commercial codes. Accordingly a few cities have prepared special policies regarding live-work space. If you live in an area where the appropriate codes are not clear, working with a code consultant will be especially important. S/he can offer a more detailed interpretation of local building codes to make sure that compliance does not impede the feasibility of the facility.

Study the Environmental Conditions

Environmental study is especially important for the redevelopment of former commercial or industrial properties. In order to prevent the viability of the project from becoming in jeopary, be sure to account for the costs of addressing any environmental problems. A Phase I assessment carried out by environmental experts may be expensive, but is a recommended investment to get critical information about existing environmental conditions. Sometimes lenders will require such an assessment to assure project feasibility.¹

Appraise the Property

An appraisal estimates the current value of the property. Lending institutions might require additional assessments carried out by specified appraisers.

Consult Your Lawyer

Acquisition involves a large number of legal documents. Work with your lawyer to legally and timely purchase the property for your facility.

Sources

Corbett, Thomas. “Square Feet Chicago-Inspections.” Chicago Artists Resource. Chicago Department of Cultural Affairs. Date of Access: Oct 30, 2009. www.chicagoartistsresource.org/node/8675

Hecht, Bennett L. Developing Affordable Housing: A Practical Guide for Nonprofit Organizations. New York: Wiley, 1999.

Kartes, Cheryl. Creating Space: A Guide to Real Estate Development for Artists. New York: American Council for the Arts, 1993. 

[1]Hecht, Bennett L. Developing Affordable Housing: A Practical Guide for Nonprofit Organizations. New York: Wiley, 1999. 51