What is a development agreement?

A development agreement is a legal agreement created between a developer and a government entity, typically outlining the terms and conditions under which a land development proposal will proceed. This agreement often encompasses details such as the scope of the project, timelines, responsibilities of both parties, and specific conditions that must be met to ensure that the development aligns with local zoning regulations and community standards.

This option is correct because it captures the essence of what a development agreement entails—serving as a binding document that governs the relationship between the developer and the municipality or local authority involved in the project. It is crucial for ensuring that developments adhere to approved plans and regulations, thus promoting orderly growth and development in the community.

The other options do not accurately describe a development agreement. A permit for residential construction refers specifically to authorization to build and does not encompass the broader terms of a development agreement. An official zoning amendment involves changes to zoning laws or classifications but lacks the comprehensive nature of a development agreement. Lastly, a contract for commercial property sales is focused on the transfer of property ownership rather than the conditions and approvals related to land development.