It’s becoming more common for lenders to require the collateralization of existing and proposed buildings in large-scale commercial and residential developments by some real estate associated with each project.

The stricter lending guidelines have led West Glen Town Center LLC to propose subdividing a 10.9-acre parcel west of Interstate 35 and north of Mills Civic Parkway in West Glen Town Center into five commercial lots.

The platting would place all buildings situated on the existing lot, as well as areas reserved for future buildings, on their own lots, said Aaron Chittenden, a city planner.

West Glen representative Kevin Crawford of Cooper Crawford & Associates LLC told the West Des Moines Plan and Zoning Commission this month that lenders have developed a formula that requires a certain amount of land, based on the square footage of existing and proposed buildings, to be associated with each building.

The City Council approved the preliminary plat on Oct. 19.

Chittenden said the city began receiving these types of requests about a year ago, adding that the practice is becoming “very common” in the development of townhomes.

Chittenden said having multiple buildings on one parcel makes it more difficult for banks and developers to get a handle on exactly what development ground is associated with a given project. In other words, “what part of that property is securing my loan, as opposed to your loan?” he said.

It’s hard to believe that developers, such as West Glen’s owners, Gary Kirke and Bill Van Orsdel, would “go through this exercise if they didn’t have to,” Chittenden said.

“It’s probably just a reflection of tightening lending standards,” he said.

Based on its preliminary approval, Chittenden said he expects the City Council to approve a final plat at its next meeting.