ToolsofLand-UsePlanning.pptxTools of Land-Use Planning
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What is Land-Use Planning?
In urban planning, land-use planning seeks to order and regulate land use in an efficient and ethical way, thus preventing land-use conflicts.
Governments use land-use planning to manage the development of land within their jurisdictions.
In doing so, the governmental unit can plan for the needs of the community while safeguarding natural resources.
To this end, it is the systematic assessment of land and water potential, alternatives for land use, and economic and social conditions in order to select and adopt the best land-use options.
Often one element of a comprehensive plan, a land-use plan provides a vision for the future possibilities of development in neighborhoods, districts, cities, or any defined planning area.
In the United States, the terms land-use planning, regional planning, urban planning, and urban design are often used interchangeably, and will depend on the state, county, and/or project in question.
The American Planning Association states that the goal of land-use planning is to
further the welfare of people and their communities by creating convenient, equitable, healthful, efficient, and attractive environments for present and future generations.
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Available Tools to Effectuate Land-use Plans
There are two broad categories of direct actions by which a municipality can shape its land-use patterns:
Public capital investments
Land-use controls
There are some land-use decisions that are determined by higher levels of government and other large players that are not a part of the municipal body politic.
State highway departments, state legislators, and governors
New road constructions
Major firms and their facilities
The Quiet revolution (environmental concerns) when there is a clear public interest beyond the borders of the single community.
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What is Public Capital?
Public capital is the aggregate body of government-owned assets that are used as a means for productivity. Such assets span a wide range including:
large components such as highways, airports, roads, transit systems, and railways; local, municipal components such as public education, public hospitals, police and fire protection, prisons, and courts; and critical components including water and sewer systems, public electric and gas utilities, and telecommunications.
Often, public capital is defined as government outlay, in terms of money, and as physical stock, in terms of infrastructure.
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Public Capital Investment
Public capital investment creates very powerful economic forces that shape development and, unlike land-use controls, public capital investments such as roads or bridges or water mains are there to stay for a long time.
Accessibility is the most important determinant of land value.
Retailers want to be located where they are accessible to the maximum nuber of potential customers.
Buildings need to be placed where they are most accessible to potential employees and visitors.
The most accessible sites will command the highest price.
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Investing in the Future
In general, to invest is to distribute money in the expectation of some benefit in the future – for example,
investment in durable goods, in real estate by the service industry, in factories for manufacturing, in product development, and in research and development.
In finance, the benefit from investment is called a return. The return may consist of
a profit from the sale of property or
an investment, or
investment income including dividends, interests, rental income etc., or
a combination of the two.
The projected economic return is the appropriately discounted value of the future returns.
Investors generally expect higher returns from riskier investments.
When we make a low risk investment, the return is also generally low.
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Financing Capital Expenditures
In finance, a bond is an instrument of indebtedness of the bond issuer to the holders.
The most common types of bonds include municipal bonds and corporate bonds.
The bond is a debt security, under which the issuer owes the holders a debt and (depending on the terms of the bond) is obliged to
pay them interest (the coupon) or to repay the principal at a later date, termed the maturity date.
Interest is usually payable at fixed intervals (semiannual, annual, sometimes monthly).
In contrast to capital expenditures, the ordinary operations of state and local governments are funded with current revenues rather than with bonds.
In fact, states and local governments are generally prohibited from borrowing to pay for short-term expenses.
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Municipal Bond
Again a bond is a form of loan or IOU:
the holder of the bond is the lender (creditor), the issuer of the bond is the borrower (debtor), and the coupon is the interest.
Bonds provide the borrower with external funds to finance long-term investments,
or, in the case of government bonds, to finance current expenditure.
A municipal bond, commonly known as a Muni Bond, is a bond issued by a local government or territory, or one of their agencies.
It is generally used to finance public projects such as roads, schools, airports and seaports, and infrastructure-related repairs.
The term municipal bond is commonly used in the United States, which has the largest market of such trade-able securities in the world.
As of 2011, the municipal bond market was valued at $3.7 trillion.
Unlike new issue stocks that are brought to market with price restrictions until the deal is sold, most municipal bonds
are free to trade at any time once they are purchased by the investor.
Professional traders regularly trade and re-trade the same bonds several times a week.
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Capital improvement plan
A capital improvement plan (CIP), or capital improvement program, is a short-range plan, usually four to ten years, which identifies capital projects and equipment purchases, provides a planning schedule and identifies options for financing the plan.
Essentially, the plan provides a link between a municipality, school district, parks and recreation department and/or other local government entity and a comprehensive and strategic plan and the entity's annual budget.
A CIP provides many benefits including:
Allows for a systematic evaluation of all potential projects at the same time.
The ability to stabilize debt and consolidate projects to reduce borrowing costs.
Serve as a public relations and economic development tool.
A focus on preserving a governmental entity's infrastructure while ensuring the efficient use of public funds.
An opportunity to foster cooperation among departments and an ability to inform other units of government of the entity's priorities.
For example, it is not uncommon for a large city or county to incorporate into its CIP the capital needs of a school district, parks and recreation department and/or some other public service structure.
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Land-use Regulation - Zoning
Land-use planning often leads to land-use regulation, which typically encompasses zoning.
Zoning regulates the types of activities that can be accommodated on a given piece of land, as well as the amount of space devoted to those activities, and the ways that buildings may be situated and shaped.
The “taking clause” of the Fifth Amendment to the United States Constitution prohibits the government from taking private property for public use
without just compensation.
One interpretation of the taking clause is that any restriction on the development potential of land through zoning regulation is a “taking”.
A deep-rooted anti-zoning sentiment exists in America, that no one has the right to tell another what he can or cannot do with his land.
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Constitutional law and police power
In United States constitutional law, police power is
the capacity of the states to regulate behavior and enforce order within their territory for the betterment of the health, safety, morals, and general welfare of their inhabitants.
Under the Tenth Amendment to the United States Constitution,
the powers not delegated to the Federal Government are reserved to the states or to the people.
This implies that the Federal Government does not possess all possible powers, because
most of these are reserved to the State governments, and others are reserved to the people.
Police power is exercised by the legislative and executive branches of the various states
through the enactment and enforcement of laws.
States have the power to compel obedience to these laws through whatever measures they see fit, provided these measures
do not infringe upon any of the rights protected by the United States Constitution
or in the various state constitutions, and are not unreasonably arbitrary or oppressive.
Methods of enforcement can include
legal sanctions, physical means, and other forms of coercion and inducement.
Controversies over the exercise of state police power can arise when
exercise by state authorities conflicts with individual rights and freedoms.
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Eminent domain
Eminent domain is the power of a state, provincial, or national government to take private property for public use.
However, this power can be legislatively delegated by the state to municipalities, government subdivisions, or even to
private persons or corporations, when they are authorized by the legislature to exercise the functions of public character.
In a historical context, property taken could be used only by the government taking the property in question.
The most common uses of property taken by eminent domain have been for roads, government buildings and public utilities.
However, in the mid-20th century, a new application of eminent domain was pioneered, in which the government could take the property
and transfer it to a private third party.
This was initially done only to "blighted" property, on the principle that such properties had a negative impact upon surrounding property owners, but was later expanded to allow
the taking of any private property when the new 3rd party owner could develop the property in such a way as to bring in increased tax revenues to the government.
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Zoning Ordinances
The best-known form of land use control is the zoning ordinance.
This is generally prepared by the community’s planning or planning consultant.
Because Zoning is the process of dividing land in a municipality into zones (e.g. residential, industrial) in which certain land uses are permitted or prohibited,
it must be documented and approved by the community's legislative body.
In addition, the sizes, bulk, and placement of buildings may be regulated.
The type of zone determines whether planning permission for a given development is granted.
Zoning may specify a variety of outright and conditional uses of land.
It may also indicate the size and dimensions of land area as well as the form and scale of buildings.
These guidelines are set in order to guide urban growth and development.
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Why is Zoning Powerful?
Zoning has considerable power to achieve goals that the community favors, and it is almost free. Why?
Unless a “taking” has occurred no compensation need be paid to the property owners for reductions in property values caused by limitations imposed by the zoning ordinance upon the type or intensity of use permitted.
The municipality gets the right to exercise some control over the use to which the property will be put
without having to purchase it.
The same effects could be achieved by exercise of the power of eminent domain
or by contract between municipality and property owner.
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The Limitations of Zoning
Zoning is limited by both economic and legal forces.
If the value of land in a use permitted by zoning is very much lower than the value of that land in a use that is forbidden but for which a market exists,
property owners have strong motivation to try to change the zoning.
They may expend substantial funds on litigation, or
they may devote substantial effort to building a coalition of forces to lobby for zoning change.
If the community is hungry for jobs and additions to its tax base, potential investors may indicate to the community that if it does not show flexibility, their capital will be
invested in some other community, one that can recognize a good thing when it sees it.
Please note: Because of the large sums of money at stake in some land-use decisions, the practice of zoning, is not immune from bribery and corruption.
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Making Zoning More Flexible
Make zoning less rigidity
Reduce zoning saturation
Reduce excessive separation of uses
Rethink the intent and effects of zoning
Make land-use controls more flexible
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Bonus or Incentive Zoning
Many communities will allow increased residential densities if developers include
some units earmarked for low-and moderate-income tenants.
Many cities have made comparable arrangement with regard to office development. For example:
zoning might stipulate a certain height limitation but permit additional height or stories if the developer will provide certain amenities at ground level (i.e. access to transportation or a park, etc.)
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Transfer of Development Rights
The intent of transfer of development rights (TDR) is to concentrate development in areas where it is wanted
and to restrict it in areas where it is not.
To do so, a sending and a receiving area are designated.
Property owners in the sending areas who do not develop their properties to the full extent permitted by law may sell their unused rights to property owners in receiving areas.
The technique may be used to preserve open space, to limit development in an ecologically fragile area, or to achieve historic preservation goals, among others.
https:// en.wikipedia.org/wiki/High_Line
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Inclusionary Zoning
Developers who build more than a specified number of units must
include a certain percentage for low and moderate-income households.
It differs from incentive or bonus approach because it is not discretionary.
Cost are shifted to the developer and eventually to the other buyers and renters.
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Planned Unit Development
A planned unit development (PUD) is a type of building development and also a regulatory process.
As a building development, it is a designed grouping of both varied and compatible land uses, such as
housing, recreation, commercial centers, and industrial parks, all within one contained development or subdivision
The origins of PUDs in the new American communities can be traced to British movements during the 1950s.
The developments in Britain's new communities dealt with the locations of industrial elements and how they were publicly dictated before building ever began in order to uphold an economic base.
However, in America, privately controlled communities often had to attract industry after the residential sectors had been built and occupied.
https://en.wikipedia.org/wiki/Planned_unit_development
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The Villages, Florida
The Villages is a census-designated place (CDP) in Sumter County, Florida, United States. It shares its name with a broader master-planned age-restricted community that spreads into portions of Lake and Marion counties.
The Villages consistently ranks as a very high growth area. The U.S. Census ranked The Villages as the fastest-growing U.S. city for the second year in a row (during the 12 months ending in July 2014);
As of August 2017, the total population of The Villages reached 115,000 people.
The Villages is made up of 17 special purpose Community Development Districts (CDD), which are controlled by a board of supervisors (BoS), five individuals elected by the landowners of the district.
The overall development lies in central Florida.
Between 2010 and 2017, the population of The Villages area grew almost 33 percent, from 94,279 in 2010 to 125,165 in 2017. According to U.S. Census data released in March 2018,
The Villages was the 10th in the annual list of fastest-growing metropolitan areas in the United States.
In 2017 Forbes magazine named The Villages to the list of The 25 Best Places To Retire in the United States for the second time.
Also in 2017, 55Places.com rated The Villages was the number one spot in the list of most popular active adult communities for the fifth year in a row.[11]
https://en.wikipedia.org/wiki/The_Villages,_ Florida#IRS_audit_of_CDD_bonds
https:// www.youtube.com/watch?v=0Q78GHZGwBk
https:// www.youtube.com/watch?v=WDmYEiKt1AM
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Homeowner association
In the United States, a homeowner association is a private association often formed by
a real estate developer for the purpose of marketing, managing, and selling homes and lots in a residential subdivision.
Typically the developer will transfer ownership of the association to the homeowners after selling a predetermined number of lots.
Generally any person who wants to buy a residence within the area of a homeowners association must become a member, and therefore must
obey the governing documents including Articles of Incorporation, CC&Rs (Covenants, Conditions and Restrictions) and By-Laws, which may limit the owner's choices.
Most homeowner associations are incorporated, and are subject to state statutes that
govern non-profit corporations and homeowner associations.
State oversight of homeowner associations is minimal, and it varies from state to state. Some states, such as Florida and California, have a large body of HOA law.
Other states, such as Massachusetts, have virtually no HOA law.
The fastest-growing form of housing in the United States today are common-interest developments (CIDs), a category that
includes planned unit developments of single-family homes, condominiums, and cooperative apartments.
https :// en.wikipedia.org/wiki/Homeowner_association
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Planned Residential Unit Development (PRUD)
A planned residential unit development (PRUD) (sometimes planned unit residential development (PURD)) is a variant form of PUD where
common areas are owned by the individual homeowners and not a homeowners association or other entity.
A PURD is considered the same as a PUD for planning commission purposes and allows
for flexibility in zoning and civic planning.
In most PUDs, individual owners have full ownership of their homes and buildings, making them the responsible party for maintenance.
Governing documents of homeowners associations within PUDs often delegate most
of the maintenance responsibilities to the owners, assuming the least amount of responsibility possible.[1]
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General Obligation Bond
A general obligation bond is a common type of municipal bond in the United States that is secured by a state or local government's pledge to use legally available resources, including tax revenues, to repay bond holders.
Most general obligation pledges at the local government level include a pledge to levy a property tax to meet debt service requirements,
in which case holders of general obligation bonds have a right to compel the borrowing government to levy that tax to satisfy the local government's obligation.
Because property owners are usually reluctant to risk losing their holding due to unpaid property tax bills, credit rating agencies often consider a general obligation pledge to have very strong credit quality and frequently assign them investment grade ratings.
If local property owners do not pay their property taxes on time in any given year, a government entity is required to increase its property tax rate by as much as is legally allowable
in a following year to make up for any delinquencies.
In the interim between the taxpayer delinquency and the higher property tax rate in the following year,
the general obligation pledge requires the local government to pay debt service coming due with its available resources.
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Revenue Bond
A revenue bond is a special type of municipal bond distinguished by its guarantee of repayment solely from revenues generated by a specified revenue-generating entity associated with the purpose of the bonds, rather than from a tax.
Unlike general obligation bonds, only the revenues specified in the legal contract between the bond holder and bond issuer are required to be used for repayment of the principal and interest of the bonds; other revenues (notably tax revenues) and the general credit of the issuing agency are not so encumbered.
Because the pledge of security is not as great as that of general obligation bonds, revenue bonds may carry a slightly higher interest rate than G.O. bonds; however, they are usually considered the second-most secure type of municipal bonds.
Revenue bonds may be issued to construct or expand upon various revenue-generating entities, including:
Water and Wastewater (Sewer) utilities
Toll roads and bridges (see toll revenue bond)
Airports, seaports, and other transportation hubs
Power plants and electrical generation facilities
Prisons
Generally, any government agency or fund that is run like a business, generating operating revenues and expenses (sometimes known as an enterprise fund), can issue revenue bonds. An agency that provides a free service, such as a school, can not do so, as their only revenue is tax dollars.
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For Your Information: Risk of Chronic Flooding
Rising Seas, Chronic Floods, and the Implications for US Coastal Real Estate
Along nearly 13,000 miles of coastline of the contiguous United States, hundreds of thousands of buildings lie in the path of rising seas: schools, hospitals, churches, factories, homes, and businesses.
Long before these properties and infrastructure are permanently underwater, millions of Americans living in coastal communities will face more frequent flooding, as the tides inch higher and reach farther inland.
As sea levels rise, persistent high-tide flooding of homes, yards, roads, and business districts will begin to render properties effectively unlivable, and neighborhoods—even whole communities— financially unattractive and potentially unviable.
Yet property values in most coastal real estate markets do not currently reflect this risk.
And most homeowners, communities, and investors are not aware of the financial losses they may soon face.
https:// www.ucsusa.org/sites/default/files/attach/2018/06/underwater-analysis-full-report.pdf
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