Download Public Restrictions on Ownership: Land Use Controls, Urban Planning, and Zoning and more Exercises Real Estate Management in PDF only on Docsity!
Public Restrictions on Ownership
- Governmental land use controls
a) Recall that spillover effects are common in real estate, and can distort private land-use decisions. Two potential problems include:
Covenants and private law suits are examples of private contracts designed to resolve land use externalities. Nuisance
Nobel laureate Ronald Coase suggested that spillover effects were a consequence of failing to clearly define property rights.
Example – Suppose Joe wants to open a new nightclub on his property, but his neighbors don’t want it nearby.
Situation 1: Joe will make $200,000 if he opens the nightclub, but doing so will cost each of his five neighbors $20,000. The total cost of the nightclub to Joe’s neighbors is
In a social welfare sense, the nightclub because
If Joe’s neighbors have the right to stop the nightclub:
If Joe has the right to open the nightclub even if the neighbors don’t want it:
Situation 2: Joe will make $200,000 if he opens the nightclub, but doing so will cost each of his five neighbors $50,000. The total cost of the nightclub to Joe’s neighbors is
In a social welfare sense, the nightclub because
- Urban Planning and The Comprehensive General Plan
a) Urban planning is necessary to ensure that required public services are available for urban growth as it occurs. In Sedgwick County, this task falls to the Metropolitan Area Planning Department (MAPD) and Commission.
b) The comprehensive plan is used as a guide when making specific land-use and other urban policy decisions.
http://www.wichita.gov/CityOffices/Planning/AP/Comprehensive/
At the broadest level, the comprehensive plan presents a vision for what the community will look like in coming decades. The comprehensive plan should be used to anticipate and prepare for growth and the infrastructure needs that will come with that growth.
The comprehensive plan should project:
- Zoning Codes
a) Zoning ordinances are local laws that divide land in the jurisdiction into zones, each with its own restrictions on the type of permitted use and the maximum intensity of that use. Wichita and Sedgwick County have adopted a unified zoning code that applies to all properties in the city and in unincorporated parts of the county. http://www.wichita.gov/CityOffices/Planning/Zoning/
Small cities in the county have their own zoning codes.
b) A listing and brief description of the Wichita/Sedgwick County zoning districts can be found in the “Zoning Chart” on the MAPD zoning website.
Special district regulations
d) Other site development standards
Parking requirements
Screening & lighting
Other standards
e) Both the City of Wichita and Sedgwick County provide online Geographic Information Systems tools for finding zoning and other information related to real estate in the county.
Wichita – http://gis.wichita.gov/outsidegeneral/
Sedgwick County – http://gis.sedgwick.gov/startup.asp
f) Zoning Approval Process
See the Wichita-Sedgwick County Zoning Procedure Diagram on the MAPD website.
g) How should zoning change requests be decided?
The “Golden” Rules (available on the MAPD website).
b) Subdivision regulations are intended to provide for
Efficient and orderly location of streets; Reduction of vehicular congestion; Reservation and/or dedication of land for open spaces; Necessary off-site and on-site public improvements; The provision of recreational facilities which may include, but not be limited to, the dedication of land area for park purposes; Flood protection and storm water pollution prevention; Designation of building lines where necessary; Assurances of compatibility of design; and Other services, facilities, and improvements deemed necessary.
c) Community Unit Plans
d) Planned Unit Developments
- Other Governmental Powers
a) Building Codes
b) Escheat
c) Eminent Domain
b) Levying property taxes
The taxation process begins with the adoption of a budget. After the budget is approved, an appropriation is passed to authorize the expenditure. The tax levy is the formal action taken to impose the tax_._ The tax rate is calculated by dividing the total funds needed by the taxing authority by the total assessed value of taxable properties in the district. A mill is 1/1,000 of a dollar, or $0.001.
c) Example: In the 2011-12 budget, the City of Wichita estimated it would require $101,996,852 in property tax revenues. What is the resulting mill levy? The estimated assessed value of property in the City of Wichita was $3,160,537,060.
The resulting tax rate is ___________________________________.
The resulting mill rate is ___________________________________.
Suppose you owned a $125,000 house in Wichita. What would your 2011 tax bill be?
Your assessed value is ____________________.
Your tax bill is:
Taxing District
Assessed Value
Mill Rate
Taxes Due
City of Wichita 32.
Sedgwick County 27.
USD 259 56.
State of Kansas 1.
WSU 1.
Total 120.
Suppose you owned a commercial office building worth $2.35 million. What would your 2011 tax bill be?
Assessed value = ______________.
Tax bill = _____________.
