13- Project Cost Overruns and Mitigation Strategies

ANALYSIS OF COST OVERRUNS IN SUSTAINABLE STILTED PROJECTS

The Harmony Life project aims to set a new standard and become a national benchmark for future developments under similar conditions.
This benchmark not only applies to architecture and sustainability but also to financial balance:
How can additional technological and construction costs be offset?
One key strategy involves elevating the market’s environmental standards, but public sector support is also necessary to foster equilibrium and encourage this type of development.

Essentially, for every additional dollar invested, there should be sufficient return to encourage investors to balance risks and rewards.

See Image 13.1: Technological and Construction Cost Overruns

ECONOMIC BALANCE MECHANISMS (NECESSARY PUBLIC SECTOR BENEFITS)

To compensate for cost overruns and stimulate investment, the county should facilitate urban, fiscal, and regulatory incentives, such as:

1. Increase in Permitted Density

From 30 to 38 dwellings/acre

This represents a 26.6% increase in sellable/rentable units → helping amortize stilt construction and viaduct costs.

2. Increase in Permitted Building Height

Taller buildings allow:

Lower land occupancy (smaller ecological footprint)
Higher return per vertical square meter
Reduced road infrastructure and public service needs per unit

3. Specific Fiscal Incentives or Subsidies

Reduction or partial reimbursement of impact fees
Tax credits for sustainability (LEED, Florida Green Building Coalition)
Bonuses for green infrastructure innovation

4. Streamlined Processes and Priority Permitting

Creation of a "Green Window" for projects meeting strict ecological criteria
Technical assistance for permitting processes with SFWMD, FDEP, and OCEPD

5. Designation as Model Development

Formal recognition as a sustainable pilot project by the county
Facilitates public financing opportunities or partnerships with universities, NGOs, etc.

See Image 13.2: Other Benefits to Negotiate with the County

For Harmony Life to set a new standard for green, compact cities, not only technical innovation and environmental commitment are required, but also a regulatory and economic environment that rewards them.
The balance must emerge from a shared vision with the county, ensuring every additional dollar invested returns value in density, height, fiscal efficiency, or urban prestige.