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75 N.C. L. Rev. 1243 (1996-1997)
Land Use Regulation in an Age of Heightened Scrutiny

handle is hein.journals/nclr75 and id is 1261 raw text is: LAND USE REGULATION IN AN AGE OF
HEIGHTENED SCRUTINY
DAVID A. DANA*
In order to regulate proposed residential and commercial land
development, states and localities employ a range of tools,
including development prohibitions and conditions.      Local
regulators' discretion as to when they may impose such conditions
or prohibitions varies by jurisdiction, but state courts generally
have rejected claims that localities exceeded their statutory or
constitutional authority in doing so. Until recently, United States
Supreme Court jurisprudence paralleled this deferential state
court jurisprudence; however, in the recent cases Nollan v.
California Coastal Commission and Dolan v. City of Tigard, the
Court held that, although states and localities retain broad
discretion to deny landowners permission for residential or
commercial development, there are substantial constitutional
limitations on the conditions such governments may impose on
their grants of development permission. This Article explores the
ways in which judicial review of development conditions, coupled
with the absence of serious judicial scrutiny of development
prohibitions, may    diminish  allocative  efficiency  in  land
development markets. After reviewing the law and politics of
development conditions, Professor Dana argues that judicial
scrutiny of development conditions may impede, rather than
enhance, the efficient functioning of development markets in the
United States. Using fundamental economic concepts and a
model of the land development process as a game between
developers and regulators, he analyzes a range of inefficiencies
that may result from the constitutional tests enunciated in Nollan
and Dolan.
* Associate Professor of Law, Boston University School of Law. B.A., J.D. Har-
vard University. I greatly benefited from the comments of the participants in faculty
workshops at Boston University School of Law and Northwestern University School of
Law. I owe special thanks to Jack Beermann, Bob Bone, Ron Cass, Keith Hylton, Susan
Koniak, Michael Kremer, Jim Lindgren, Steve Marks, Tom Merrill, Julie Schrager, and
Stewart Sterk.

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