Downzoning property is always a thorny issue: on the one hand, zoning changes are typical, "police power"-type governmental activities; on the other hand, they can significantly impact property values, and in some cases can result in governmental takings liability. When a property owner experiences a change in zoning, there are typically two theories that can be pursued: one is so-called "spot zoning," and the other is a regulatory taking.
Under the first theory, "spot zoning," a property owner can have a zoning designation invalidated if it can prove the government targeted the ...
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