What are the differences between Federal Construct and Lease Construct in site selection?
While many requirements and processes are common to both, there are a few differences. • First, with Federal Construct, the land is purchased outright. With Lease Construct, the government does not take fee title to the land, but assigns the option to the developer. • Second, with Federal Construct, the team must evaluate the overall cost of the site plus relocation and all other site costs to ensure Prospectus integrity. With Lease Construct, the team must evaluate the cost of the land in addition to the anticipated rental rate to ensure integrity with the net rent, authorized in the Prospectus. • Third, with Federal Construct, every effort is made to meet local regulations and codes, but it is not a requirement. With Lease Construct, the developer is required to meet all regulations and codes (or seek variances and waivers). • Fourth, with Federal Construct, the government has the right of eminent domain. With Lease Construct, the practical difficulties associated with the execution
