A Catch-22 Choice on City Regulations "Waive It or Pay It" Dan Reuter, AICP

1. A Catch-22 Choice on City Regulations "Waive It or Pay It"Dan Reuter, AICP

2. The Sunbelt High Growth! Georgia Growth Trends United States Population Change 2000 2030 281ml 363ml

3. 2005 Building Permits

4. Where Have We Been? • Substantial growth, construction and infrastructure built across the Georgia • U.S. system of property regulation – 80+ years of Supreme Court decisions • Georgia system – Home Rule by local governments and citizens • Generally balanced public and private interests

5. Why Regulate Land? • Property regulations protect and enhance values • Property regulations create stable legal environments for investments • Citizens expect reasonable regulations in communities • Regulations moderate extremes and protect natural resources

6. Inverse Condemnation • Regulatory takings are currently covered under existing law – reasonable use • Expanding takings is a concept intended to dismantle government property regulation • Concept that any government regulation should compensate owners based on the perceived impact on appraised value • Ignores responsibility of property ownership to neighbors or community and public investments that support use of property

7. Takings • “Takings” has been defined by the U.S. Supreme Court during past 50 plus years • Complex legal issue that cannot be judged simply by a gut check • Changing Georgia laws to create an unbalanced preference against government regulations will create unintended and potentially dire consequences. • Result would be a pre-industrial age standard for property regulation

8. Takings • Defining a “Taking” as devaluation of property value would: • Create a big stick for developers! • During a rezoning case for any use – threat of property devaluation would be a problem for local governments • Existing property zoning, setbacks, etc. could be eliminated by compensation claims and litigation

9. Regulatory takings issue got elevated by Supreme Court Kelo decision Proposition 37 in Oregon 2006 ballots had referendums in four states – passed in Arizona Financed by NAHB, Howie Rich, etc. 2006 State Issues

10. Comparing Apples and Space Rocks • Oregon – UGB and 20 acres and 3 years of farm revenue. • Georgia – 1 acre lot, water, septic and legal access to a road • Georgia is less regulated and easier state to develop property than most of U.S. • Local governments in Georgia support more development, provide infrastructure and generally assist property owners

11. Impacts • Deregulation of property will cause unintended economic, legal, environmental and social consequences • Benefits only a few owners and developers yet risks all homeowners and businesses • Open floodgate of property and regulatory lawsuits • Inverse condemnation would disrupt economy, planning and development

12. Solutions • Address the needs of individuals who have real regulatory issues • Educate elected officials and citizens on existing laws • Recognize that reasonable regulations provide the basis for a strong real estate market • Focus on win/win tools and solutions that link public and private interests

13. Status • Part 5 and north Georgia stream buffers • ACCG, GMA, GPA, Georgia Conservancy and others have formed “Georgians for Community Protection” • www.georgiansforcommunityprotection.org • Expect legislation introduced during next two weeks • National website - www.propertyfairness.org

14. Resources • American Planning Association • www.planning.org • Book: Good News About Taking • Smart Growth Network • www.smartgrowth.org • Community Rights Counsel • www.communityrights.org