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ZoningandGrowthControls
ZoningandGrowthControls:IntroductionGovernmentroleinurbanlandmarketZoningtoseparatedifferentlandusesintoseparatezonesGrowthcontrolslimitpopulationgrowthWhowinsandwholoses?9-2TheEarlyHistoryofZoningComprehensivezoningstartedin1916Didchangeintransportationtechnologygeneratezoning?Truck:Replacedhorsecart,causingindustrytomovetosuburbsBus:Low-income(highdensity)householdsbetweenstreetcarspokesZoningtoexcludeindustryandhigh-densityhousing?9-3ZoningasEnvironmentalPolicyIndustrialPollutionZoningseparatesresidentsfrompollutionZoningdoesn’treducepollution,butmovesitaroundEconomicapproach:internalizeexternalitywithpollutiontaxRetailExternalities:Congestion,noise,parkingHighDensityHousing:Congestion,parking,blockedviewsAlternative:Performancestandardsfortraffic,noise,parking,views9-4FiscalZoningSomecommunitieseagerlyhostfirmsthatgeneratefiscalsurplusFiscaldeficit:Taxcontributionlessthancostofpublicservices9-5Minimumlotsizezoning(MLS)LargehouseholdinsmalldwellingmorelikelytogeneratedeficitMLSexploitscomplementarityofhousingandlandTargetlotsize:s=v*/(5?r)v*=targetpropertyvalue;r=marketvalueoflandExample:s=$200,000/(5?$80,000)=0.509-6MinimumLotZoningandtheSpaceExternalityExternality:largerlotgeneratesmorespaceandhigherutilityforneighborsExternalbenefitmeansthatlotssmallerthansociallyefficientsizeMLS:increasespaceandenforcereciprocityinspacedecisions9-7ZoningforOpenSpacePublicland:ParksandGreenbeltsRestrictionsonPrivateLand:PreservationoffarmorforestlandWhatistheefficientlevelofopenspace?Howdoeszoningaffecttheefficiencyofthelandmarket?9-89-9LegalEnvironment:SubstantiveDueProcessLawmustservelegitimatepublicpurposeusingreasonablemeansAmbler:Zoningpromoteshealth,safety,morals,generalwelfareNoconsiderationofcost,onlybenefitExample:ChineselaundriesinSanFrancisco9-10LegalEnvironment:EqualProtectionLawmustbeappliedinnon-discriminatoryfashionDoesexclusionaryzoningconstitutediscrimination?Euclid:effectsofzoningonoutsidersunimportantLosAltos:discriminationonbasisofincomeisOKStatecourtsadoptmoreactivistroleMountLaurel(NJ):Cityaccommodates“fairshare”oflow-incomeresidentsLivermore(CA):Considerinterestsofinsidersandoutsiders9-11LegalEnvironment:JustCompensationShouldpropertyownersbecompensatedforlossesinvaluefromzoning?Compensationrequiredforphysicalinvasion(occupation)oflandHarmpreventionrule:CompensationnotrequiredifzoningpromotespublicwelfareDiminutionofvalueruleCompensationrequiredifpropertyvaluedropsbysufficientlylargeamountNoguidanceonwhat’slargeenoughRuleisnotwidelyapplied9-12Houston:CityWithoutZoningLandusecontrolledbyvoluntaryagreementsamonglandownersResidential:Detailedrestrictionsondesign,appearance,maintenanceIndustrial:LimitactivitiesHowdoesHoustoncomparetozonedcities?SimilardistributionofindustryandretailersMorestripdevelopmentWiderangeofdensitiesofapartmentsLargersupplyoflow-income(highdensity)housing9-13UrbanGrowthBoundaries:IntroductionPolicyconfinesdevelopmenttositeswithintheboundaryExplicitprohibitionorrestrictedurbanservices1991:Onequarterofcitiesusedgrowthboundaries9-149-15WinnersandLosersfromGrowthBoundariesWorkersthroughouttheregionloseasutilitydropsUncontrolledcitygrows,pullingdownutilityIncontrolcity,competitionraisesrentuntilutilitydropstolevelinuncontrolledcityUtilityloss:InefficiencyofcitiesofdifferentsizeLandownersincontrolcity:Generallywinnersbecausepriceoflandincreases9-16UrbanGrowthBoundaryandtheLandMarketHowdoesagrowthboundaryaffectlandrentwithinthecity?Whowinsandwholoses?9-17Figure9-3UrbanGrowthBoundaryandtheLandMarketTheinitialequilibriumisshownbypointi.Theurbanbid-rentcurveintersectstheagriculturalbid-rentcurveat12miles.9-18Figure9-3UrbanGrowthBoundaryandtheLandMarketAnurbangrowthboundaryat8milesincreasesurbanrentwithintheboundaryanddecreasesrentoutsidetheboundary.9-19Figure9-3UrbanGrowthBoundaryandtheLandMarket9-20UrbanGrowthBoundariesandDensitySofar,considergrowthboundarycombinedwithminimumlotsizeWhathappenswhencityallowsdensitywithinboundarytoincrease?9-219-22Portland’sUrbanGrowthBoundaryMetropolitanboundaryperiodicallyexpandedtoaccommodategrowthCombinedwithpoliciesdesignedtoincreasedensityObjective:Directdevelopmenttolocationsforefficientuseofpublicinfrastructure9-23MunicipalversusMetropolitanGrowthBoundariesMostboundariesaroundmunicipalities,notmetropolitanareasLogic:DisplacementofworkersandresidentsdecreasescommonutilitylevelMunicipalcontrolsdisplacecongestionandpollutiontonearbymunicipalities9-24TradeoffswithGrowthBoundariesandOpenSpaceDecreaseutilityofworker/rentersIncreasevalueoflandwithintheboundaryHomeowners:Higherlandpricesbenefitowners9-25BenefitsversusCostsofOpenSpaceBenefitsfromopenspacenearcityCostishigherhousingpricesandhigherdensity(lessprivatespace)Reading,England:relaxationofpolicieswouldgenerateanetgain9-26OtherGrowthControlPolicies:BuildingPer
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