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Unformatted text preview: L AND U SE O UTLINE CLAIMS TO CONSIDER AT ALL LEVELS: F EDERAL C ONSTITUTION 1) S UBSTANTIVE D UE P ROCESS (NO RATIONAL BASIS!!) 2) E QUAL P ROTECTION 3) T AKINGS F EDERAL S TATUTE 1) FHA S TATE E NABLING S TATUTE S TATE C OMMON L AW 1) S TATE TAKINGS 2) V ESTED RIGHTS L OCAL O RDINANCE 1) P ROCEDURES FOR D ECISION M AKING I. I NTRODUCTION a. Main concern as a potential developer maximizing return. Need to see what can be generated out of any given use. i. MORAL leaving it up to the market is not going to end up with most efficient result. Need regulation to avoid inefficiencies. b. Concerns: i. Financing 1. Persuading bank to finance something that is not built yet. 2. Value of the building compared to cost of financing 3. Time cost. 4. Marketing and transaction costs. ii. Neighborhood concerns 1. Any potential causes of action based on neighbors rights, such as nuisance or easements or restrictive covenants. 2. Neighborhood opposition. c. Hypothetical costs/benefits TYPE OF USE Benefit to Developer Cost to Community 1) Leave as is (2 story building) 2) 6 story residence $10 million $5 million 3) 20 story office building $20 million $25 million d. Most efficient result have neighbors get together and buy out air rights above 6 stories for $10 million. i. Developer is indifferent has $10 million from the neighbors and $10 million for the residential project. ii. Neighbors are better off than if he had built the office building they only lose $15 ($10 million payoff + $5 million in other costs), instead of $25 million. iii. Total gain $5 million ($20 million benefit - $15 million costs). 1. Better than potential $5 million lost if developer built office building. 1 e. Problem leaving to market forces, probably will not reach this result. i. Going to have a freeriding problem with the neighbors. Some will not want to pay up when it comes time to buy out the developer, and neighbors with relatively smaller costs will not want to pay. ii. Developer is probably not going to take community costs into account and does not care about potential overall loss. f. Solution land use regulation . Have city authority analyze and decide how to zone the property to reach the most efficient result. i. Knowing this, the city should zone this parcel allowing for a 6 story residence. ii. Source of power to regulate city enabling acts. g. What should go into making the decision on how to zone property? i. Planning board is presumably going to answer to some type of city counsel or the mayor who is worried about electoral issues, so not going to want to piss off community. ii. Developers can change the stakes by making campaign or other contributions....
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