Week 3: Site Planning, Building Types & Project Feasibility

Week 3 of the Incremental Development Alliance’s Small Developer Bootcamp was where the work of becoming a developer shifted from theory to practice. After grounding ourselves in financing and zoning during the first two weeks, this day focused on how to take a real piece of land and shape it into a buildable, financially viable project. For participants working in Gary, this meant learning how to navigate a landscape full of opportunity, deep lots, vacant parcels, and strong demand for quality housing, while also confronting the challenges of outdated zoning, inconsistent infrastructure, and a market where appraisals often lag behind construction costs.

Reading the Land Before You Build

We began with the fundamentals of site planning, learning how to “read” a lot the way a developer does. This meant looking beyond simple dimensions and understanding how access, topography, utilities, and neighborhood context influence what can be built. In Gary, alley access can be a hidden advantage, allowing for more flexible parking layouts and better site circulation. At the same time, participants learned to watch for issues like incomplete infrastructure or drainage challenges, which can add unexpected costs. The goal was to help participants see that every lot has a story, and that understanding the site is the first step toward shaping a feasible project.

Choosing the Right Building Type

From there, we explored how different building types fit different sites and markets. Participants examined the strengths and limitations of ADUs, duplexes, triplexes, fourplexes, small mixed‑use buildings, and rowhouses:  duplexes and triplexes often offer the best balance of affordability and cash flow; fourplexes can be more efficient but may run into zoning or parking constraints; and small mixed‑use buildings can activate corners but are harder to finance in low‑appraisal markets. 

In Gary, where many lots are deep but narrow, participants saw how certain building types naturally align with the city’s historic fabric, even if the current zoning code doesn’t always allow them. This sparked important conversations about how design choices can either support or undermine feasibility.

When the Numbers Say “Yes” (or “Not Yet”)

The heart of the session was understanding project feasibility: how to determine whether a project “pencils.” Participants learned how to estimate construction costs, account for soft costs like architecture and permitting, and calculate operating assumptions such as rent levels, vacancy rates, and ongoing expenses. They practiced translating these inputs into basic return metrics like net operating income, cash‑on‑cash return, and return on cost. This exercise revealed how sensitive small projects can be to even small changes in design, cost, or rent assumptions. It also highlighted why feasibility is especially challenging in Gary, construction costs are relatively fixed, but appraisals often come in low, creating a gap that can make traditional financing difficult.

Making Projects Pencil in a Low-Appraisal Market

Despite these challenges, this workshop emphasized that Gary also offers unique opportunities. Low land costs, deep lots, and strong demand for quality rental housing create fertile ground for small-scale development, especially when paired with creative financing, phased development, or partnerships with local lenders and CDFIs. Participants learned how to adjust building types, rework site plans, or refine unit mixes to improve feasibility. They also saw how incremental development, starting small, building value, and reinvesting, can be a powerful strategy in a city where block‑by‑block stabilization is essential.

Iteration, Adaptation, and Creativity

By the end of the week, participants understood that development is an iterative craft. It requires testing ideas, adjusting assumptions, and shaping a project until the numbers work. In a city like Gary, where every block has its own history and conditions, this adaptability is not just helpful, it’s necessary. Week 3 gave participants the tools to approach a site with confidence, evaluate what’s possible, and begin shaping projects that fit the land, the code, and the market. It was a reminder that small projects, done thoughtfully, can have a big impact on the future of Gary’s neighborhoods. Small projects can:

• Fill in vacant lots

• Stabilize blocks

• Create new housing options

• Support local businesses

• Build wealth for residents

• Demonstrate what’s possible

In Gary, where opportunity is abundant but systems are outdated, small developers are uniquely positioned to lead the way.

This training is made possible by a grant from the Legacy Foundation's John S. and James L. Knight Donor Advised Fund.