Here is a story out of the San Francisco Bay Area. Some time back
a real estate developer purchased 24 acres of land in Half Moon
Bay at a foreclosure auction. The parcel was in the middle of
several housing developments and the new owner intended to build
83 homes on it. Permission to build had been granted to the
previous owner, and it seemed like it would be a profitable
investment property.
When it came time to build the city decided it preferred to leave
the parcel as an "open space," without actually compensating the
owner for his now worthless land. The city argued it wasn't
suitable for development because it was a protected "wetland,"
while the owner argued that the wet spot was the result of a
storm drainage system that the city improperly built, and as a
result caused water to accumulate on his property.
He sued for property damage and the federal judge awarded him $37
million. The city is appealing because it only has a $10 million
annual budget and this damage award will bankrupt the city and
force it to dissolve. The developer is offering to work out a
deal but the city is refusing to negotiate.
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/12/19/BA34U0VJK.DTL
.
|
