This may be a multi-faceted question depending on who you ask. But to me, project development is where you see a need and you decide to come up with a solution that can help solve the need. You develop a solution starting from the ground up. Look at the cause of the problem, how can it be solved and decide how best to do that. This can include staffing, action steps, objectives, costs, etc. You will also need to look at who the project will benefit and how you will evaluate the results. This is esp. important if you decide to go after funding for the project. Sometimes, more than one organization will develop a project to meet a community need, sometimes it is one dept. in one agency. Project development can come out of a good strategic planning. You know what needs to happen over the next 2-3 years so you have to decide how to meet that need and get the results. I am sure you will get different answers but hope this helps.