Toward an Evaluative Framework for Land Use Policy in Industrial Districts of the Urban Core: A Qualitative Analysis of the Exclusionary Zoning Approach

Abstract

This paper provides a preliminary analysis of costs and benefits associated with exclusionary zoning, a policy vehicle which seeks to preserve or promote industry in the urban core especially (where competition for land resources is typically the greatest), by prohibiting the incursion or encroachment of 'higher uses.' The paper examines arguments commonly advanced pertaining both to alleged 'costs' of exclusionary zoning (e.g., relating to efficiency arguments, impacts on urban economic adaptability, and municipal revenues); and also to perceived 'benefits' (diversification of the economic base and urban employment structure, efficiency of public service provision, the restriction of negative externalities, etc.). It is observed that for both costs and benefits, basic underlying arguments have in some cases been over-stated, or have failed to critically examine all relevant factors. It is suggested that in general, exclusionary zoning may be appropriate if applied in a selective manner; but that expectations as to outcome should be tempered in the light of possible costs, and also by an understanding of serious limitations associated with that approach.

Expert Evaluation of Municipal Revenues and Expenditures by Land Use Category

“…However, relatively low property values offer a plausible explanation, particularly in light of the discussion provided by Heikkila and Hutton (1986) on the costs of maintaining industrial lands in the urban core.…”

“…The distribution of municipal revenues and expenditures also provides a useful context within which land use policy decisions can be made. For example, recent work by Heikkila and Hutton (1986) draws upon similar research results to estimate the tax base implications of zoning used to preserve industrial land.…”

“…The distribution of municipal revenues and expenditures also provides a useful context within which land use policy decisions can be made. For example, recent work by Heikkila and Hutton (1986) draws upon similar research results to estimate the tax base implications of zoning used to preserve industrial land.An additional motivation for this exercise derives from its potential research applications. Land use mix is, or ought to be, a major factor in explaining variations across local government fiscal profiles.…”

The Highest and Best Use? Urban Industrial Land and Job Creation

“…In contrast to more modern office buildings, this type of space offers firms the flexibility they seek in today's economy, with the ability to shift between vertical and horizontal organization, and to easily add or shed employees. This benefit augments the argument by Heikkila and Hutton (1986) about the conditions under which exclusionary zoning for industrial land is in the public interest.…”

“…Planners just reacting to developers rather than adopting a more comprehensive approach that analyzes the local economy may actually be enabling suboptimal decision making about industrial land conversion (WolfPowers, 2005). Heikkila and Hutton (1986) use the term exclusionary zoning to refer to policies that preserve industrial zoning (typically in the urban core) by prohibiting higher uses despite market interest. This policy has costs in that it may mean inefficient use of resources, inhibition of industrial transition, and impacts on the local tax base in ways that are rarely made explicit.…”