Agenda - 03-21-1990 - Laserfiche WebLink

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[22] = [2S] LAND USE 167 23 Nether the Clearly mandatory set-asides can be applied to land in many ried about different ways. There is the Utopian example, where the benefit it the city is greater than the obligation and perhaps nobody pays. A man- orking to datory set-aside could be applied to land without increasing the ore of the density at all or providing any compensating benefit, as in swilling to Orange County. Benefits can have a value of less than the cost of :oncerned the obligation. Through what is known as incentive zoning, a was care- given extra benefit can be offered in return for an obligation and isapplied. builders can decide if the benefits are worth the obligation.There ncreasing are any number of variations. in Utopia Land use lawyers, developers, investors, planners, and politi- cians should all be concerned about what is happening in New 1 the city Jersey and in California, whether or not they live and do busi- Ind again ness in those states, because the notion that broad societal problems can be fixed by assessing others is, on the surface, attractive. These inclusionary programs are likely to become 'roblem increasingly popular, as an alternative to taxation, as the federal government further reduces funding levels on existing housing echanism programs and as these regulatory mechanisms become further 1, mainly legitimized through wide-scale implementation. It is imperative, the city therefore, that policymakers everywhere understand that in- "create" clusionary regulatory mechanisms, which do not "create" a fli were benefit equal or greater than the obligation they impose, will fits s w were result in economic burdens of the kind that the various actors in is appar- the housing economy will attempt to pass on. builder The issue of who ultimately pays for inclusionary set-asides, tion and unless it is felt that the landowner in Utopia should have re- bought ceived $10 million, becomes relevant only if government in- eezed, it creases costs without a commensurate benefit or bestows the tsts that benefit at a differential point in time from when it gives notice of t would the obligation so that the benefit and obligation fall on different cause it people. Timing is important also from a public policy point of • view even when the same people own the land, because slapping :rnment on obligations after bestowing benefits ("Indian giving") irri- alanced i tates most people. Some of those people will incur reliance ying. In interests that should be protected. ivant to !I dwarf .n been Incidence and Public Policy effect Assuming that it is not possible to understand incidence be- h he cause of an irn rfect knowledge of the housing market and her r the the pricing, the pro="e= will be approached in a different way. appears Let us ass_-tee .e are the city council or the Supreme Court of nefit. New Jerse; a:== w= do not want to give out any zoning 4.,