The Hidden Price Tag: How Development Codes & Restrictive Zoning Inflate Project Costs Before Ground is Broken

Most people assume the biggest costs of development show up once construction begins concrete, steel, labor, and mobilization. But in many communities today, the most damaging costs hit before the first shovel ever touches the dirt.

They come from the quiet killers of project feasibility: stormwater restrictions that don’t match real site conditions, shallow outfalls that force expensive grading, new roadway impact fees, rising utility impact fees, and zoning uncertainty that burns time and budget with no guarantee of approval.

The result? Projects that look great on paper can become financially impossible long before they ever reach construction.

1. Shallow Outfalls Can Turn Detention Into a Site-Consuming Problem

Stormwater detention is necessary, and in many cases, it works well. The problem starts when cities apply requirements that don’t align with the site’s drainage reality—especially in areas with shallow outfalls.

When the outfall is shallow, gravity drainage becomes difficult, and detention ponds can quickly grow into a massive footprint. In some cases, the detention facility can take up over half the usable property, forcing the project to shrink, relocate buildings, or lose valuable parking and access.

At that point, detention isn’t a “site feature.” It becomes the dominant site constraint.

2. If Pumped Detention Isn’t Allowed, the Alternative Is Often Expensive Site Raising

Many municipalities restrict or prohibit pumped systems out of concern for maintenance or operational failure.

But here’s the reality: when pumped detention isn’t allowed, the solution isn’t always “just do it with gravity.” Often, gravity only works if the site has enough fall which many sites simply don’t have.

That means the project may need to create fall artificially through:

•  Importing large volumes of fill,

•  Raising pads and finished floors,

•  Longer underground storm systems,

•  Additional grading and retaining structures,

•  And more expensive sitework overall.

In other words, a restriction meant to reduce risk can unintentionally force a project into a far more expensive path.

3. Traffic Roadway Impact Fees and Utility Impact Fees Can Break the Pro Forma

Many fast-growing communities are implementing new roadway impact fees or increasing existing fee structures.

Impact fees can be reasonable tools for funding infrastructure, but they can also create a harsh financial reality: upfront costs that push a project past the point where it pencils.

Depending on the land use category and service area, roadway impact fees tied to trip generation can result in six-figure costs, and in some cases, over $1,000,000 for a single building.

Stack that with rising construction costs, financing pressure, and utility impact fees, and many projects don’t fail because the market is weak they fail because the entitlement and infrastructure cost burden becomes too heavy.

4. Zoning Uncertainty Can Drain Project Budgets Without Anyone Saying “No”

Zoning should guide smart growth. But in many jurisdictions, the zone change process can become a major risk factor itself.

This pattern is common:

•  A site is surrounded by compatible uses.

•  The city gives the impression they may support the change.

•  The client invests in planning, engineering, and site design.

•  The process stretches over weeks or months.

•  Then the decision shifts, delays, or a denial occurs late in the game.

Even when no one intentionally misleads anyone, zoning uncertainty can create a painful outcome: significant sunk costs with no guarantee of approval.

That uncertainty has a price tag and many times it’s paid long before permits are even in sight.

The Biggest Takeaway: Don’t Plan a Project Without Civil Engineering at the Table

One of the most avoidable mistakes in early development planning is treating civil engineering as a “later phase” service.

The civil team is often the first group that can identify critical red flags like:

•  Shallow outfall limitations,

•  Detention footprint impacts,

•  Whether pumped systems are allowed,

•  How much fall is realistically available,

•  Whether major fill import will be required,

•  What impact fees may apply to the use and size,

•  and whether the site is likely to be feasible under local requirements.

No firm can guarantee 100% cost certainty before official design begins—but involving civil engineering early can prevent major surprises and help teams make informed go/no-go decisions sooner.

Final Thought: The First Cost of Development Isn’t Dirt Work: It’s the Rules

Codes and requirements matter. Infrastructure matters. Responsible planning matters.

But feasibility matters too.

When detention consumes the land, pumping is prohibited, grading costs spike, impact fees jump, and zoning outcomes remain uncertain, the development process doesn’t just slow down—it becomes financially unworkable.

That hidden price tag is real and it often shows up before ground is broken.

Need help identifying civil “red flags” early?

Reach out to JRH Engineering & Environmental Services, Inc. to help your team stay up to date on development requirements, impact fee trends, and civil feasibility issues so your next project starts with clarity, not costly surprises.

By Jennifer Henrichs | JRH Engineering & Environmental Services, Inc. January 2026