Land plot for construction of an industrial enterprise

If the investor makes a decision on the construction of a new industrial enterprise, one of the priorities to be resolved is to find and register the rights to the land plot on which production will be located.


The correct choice of land in general affects the payback of the project and the profitability of production in general. Therefore, the process of search, selection and registration of land rights should be treated responsibly. Otherwise, there are risks of incurring additional costs for eliminating deficiencies that have not been identified and taken into account in a timely manner, or in the worst case, such legal obstacles will not allow to implement the project of building an industrial enterprise.


Of course, in addition to physical characteristics (size, shape of the site, topography, geographical location, proximity of utilities, etc.), when searching for a land plot special attention should be given to its legal status in accordance with the norms of land and town planning legislation.



Therefore, let’s see


on which land plot is it possible to build an industrial enterprise?


First, the land must be subject to civil rights.

This means that its area, boundaries must be determined, and information about it must be entered in the State Land Cadastre.


Usually, the formation of a land plot occurs through the development and approval by local authorities of a land management project for the allocation of land plots from state and municipal property, or by dividing or combining previously formed land plots. Formed land plot must be assigned cadastral number. Also, the appropriate purpose is obligatory – “lands of industry, transport, communications, energy, defense and other purposes”. In addition, within the target destination, an even narrower subcategory is distinguished – a type of use that must also be taken into account: the location of processing, engineering, construction companies; location of buildings of enterprises associated with the use of subsoil and the like. Purpose and type of land use is established by a special classification of the types of land purpose, which is approved by the State Land Committee of Ukraine.


Secondly, when choosing a land plot it is necessary to take into account the requirements of town planning legislation on the location of the land plot.

If the land plot is selected and meets the requirements of the customer in terms of physical parameters and is set aside in compliance with the norms of land legislation, it must be remembered that the process of new construction must take place in full compliance with urban planning legislation.

From the point of view of urban planning documentation, the territory in which industrial enterprises are located belongs to the production zone of the settlement. The situation may arise that, at first glance, the land plot has the necessary purpose and the procedure for its allocation is fully observed. However, on the territory where the land plot is located, planning restrictions, preferable and allowable uses of the territory should be determined. As a rule, this is a sectoral separation and division into classes of hazard (based on the volume of emissions from sources of environmental pollution). In total, in accordance with city planning standards, there are seven types of production areas. The type of production zone of a certain territory is specified in the town planning documentation.

It should be noted that each settlement has its own master plan, a zoning plan (zonning) and / or a detailed plan of the territory. The allotment of land plots, the change of purpose, the construction of any objects, including industrial enterprises that do not correspond to them, is prohibited.

Therefore, the discrepancy of the intentions of the building is the reason for the refusal of the city planning and architecture authority to issue urban planning conditions and restrictions (UPR). The UPR is the first document that an investor needs to obtain from local authorities before designing an industrial enterprise.

Of course, the law provides for the possibility of introducing changes to the urban planning documents of settlements. However, this is a time consuming and financially burdensome procedure. Since, when making changes in the town planning documentation, both public discussions and state expertise are held.

In practice, if the local council gives permission to develop a detailed plan (a document that clarifies the provisions of the master plan at the local level), then from development to approval it takes at least four months. Although the development of town planning documents is related to the powers of local authorities, it is quite often that potential investors finance the development of detailed plans and facilities. This is quite risky, since no one can guarantee an investor successful results of public hearings (for example, community activists who oppose a given building often become on the way) and positive vote of deputies of local councils (approval of town planning documents is their exclusive competence).

In any case, the situation with each individual land plot needs to be studied in detail (since each locality has its own town planning documentation), find out its status from the point of view of land and town planning legislation and determine whether it is possible to build an industrial enterprise on it at all. .

Therefore, for this purpose, before acquiring (leasing) a land plot for the construction of a new industrial enterprise, we recommend engaging a professional lawyer in the field of land and city planning legislation.

Law Firm Legal Consulting Center has many years of experience in supporting various construction projects (from residential buildings to agricultural elevators). Our lawyers will provide expert advice on the possibility of building an industrial enterprise of your chosen industry and will provide legal support for the process of registration of land rights, obtaining urban planning conditions and restrictions, drawing up permits at the Inspection of Architectural and Construction Control.


Irina Korotkova, Law Firm “Legal Consulting Center”

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