The Perils of Regulatory Property in Land Use Regulation

Abstract

"Regulatory property" is the right to engage in specified activities, made valuable by government prohibitions against competitors, and protected by de jure or de facto status as property. This Article explores regulatory property and focuses upon its applications in land use regulation. It considers, inter alia, transferrable development rights, exclusive leases of subsidized sports stadia, and urban revitalization condemnations for retransfer for pre-arranged private development. The Article concludes that these generally are unfair and inefficient practices.

Keywords: affordable housing, bargaining, cap and trade, competition, crony capitalism, eminent domain, interest group, open access, police power, public good, public trust, public-private partnership, redevelopment, rent seeking, special privilege, steer and row, taking, tax increment financing, zoning

JEL Classification: K11, Q24, Q28, R52