Linear Programming and Financial Analysis of the New Community Development Process

The land development process with its concomitant financial analysis is described for new communities. A multi-period linear programming model was constructed permitting the determination of (1) maximum revenues, (2) the optimal development schedule, (3) the optimal parcelization schedule, and (4) the optimal land allocations for the proposed new community. The model's role as an aid to the developer is described, and a procedure proposed, based upon the dual variables, that links the financial analysis to the plan for development. The applicability of the model is illustrated via a case study of a proposed large-scale development.