I haven't put the effort into finding an official source yet, but I've been seeing a lot of talk about the Terraforming Permit being purchased through Nook Miles.
(It's not exactly what I expected, but it would make sense: the Direct stated that it unlocks after developing your Island, and having enough Miles saved up presumably means having played/developed quite a lot)
They mentioned "fully decked out" (not developed), while in the same segment talking about building bridges and slopes. It seems to me they're indicating you need to those structures (requires town hall) before you can get the permit.