scholarly journals Planning, property and profit: the use of financial viability modelling in urban property development

2020 ◽  
Vol 71 (1) ◽  
pp. 35-55
Author(s):  
Edward Mitchell

By drawing upon McAuslan’s analysis of the ideologies underpinning land use planning law, this paper examines financial viability modelling and legal processes in the context of local authority decision-making related to property development on large urban sites. A local authority can make a site ready for development by using ‘compulsory purchase’ powers to acquire land, by transferring that land to a property developer and by granting that developer planning permission to commence construction. Analysis of case law, academic criticism of viability modelling practices and a recent property development project highlight issues arising when local authority planning departments use viability appraisals to legitimise decisions purportedly taken in the public interest. An in-depth examination of viability modelling within local authority estates departments then opens a new site for critical inquiry of local authority land acquisition practices. The paper’s conclusions reflect upon how financial viability modelling shapes decision-making, despite questions surrounding both modelling techniques and the outputs that viability appraisals produce.

2011 ◽  
Vol 5 (1) ◽  
pp. 4-69 ◽  
Author(s):  
Judith Resnik

The identification of courts as “open” and “public” institutions is commonplace in national and transnational conventions. But even as those attributes are taken for granted, the privatization of adjudication is underway. This Article explores how—during the last few centuries—public procedures came to be one of the attributes defining certain decision-making institutions as “courts.” The political and theoretical predicates for such practices can be found in the work of Jeremy Bentham, a major proponent of what he termed “publicity,” a practice he commended by detailing the architecture for various entities—from the Panopticon for prisoners to the Parliament for legislators and courts for judges. Bentham argued the utility of publicity in enhancing accuracy, public education, and judicial discipline.Moving forward in time, I examine various contemporary techniques in several jurisdictions that shift the processes of adjudication toward privatization. Included are the devolving adjudication to less-public government entities such as administrative agencies; outsourcing to private providers; and reconfiguring the processes of courts to render them more oriented toward settlement.For those appreciative of the role courts play in developing and protecting human rights, these new practices are problematic because adjudication can itself be a site offering opportunities to engage in democratic practices. The odd etiquette entailed in public adjudication under democratic legal regimes imposes obligations on government and disputants to treat each other—before an observant and often times critical public—as equals. Public and private power can be constrained by such performative requirements. When decision making takes place in public, the application of law to fact can engender normative contestation predicated on popular input. This claim of public adjudication’s democratic potential and utilities is, however, not an argument that the judgments provided and the norms developed will necessarily advance a shared view of the public welfare. Hence, while eager to re-engage Bentham, I offer different claims for publicity and less optimism about its consequences.


Author(s):  
Joonna Smitherman Trapp ◽  
Mariah Dozé

Abstract This article presents a mentor and student's journey into the world of undergraduate scholarly publication discover a number of unexpected ethical conundrums. The student builds her authority by leaning into her own expertise as a writer and owner of her own work. As the publishing site becomes a site of manipulation, she responds with her growing sense of the ethics of writing for the public. She gains authority in ways that few undergraduate writers can through her decision making.


2013 ◽  
pp. 581-600
Author(s):  
John P. Isaacs ◽  
David J. Blackwood ◽  
Daniel Gilmour ◽  
Ruth E. Falconer

Sustainable decision making for strategic planning is a challenging process: requiring an understanding of the complex interactions among environmental, economic and social factors. Commonly, such decisions are dominated by economic factors hence there is a need for a framework that supports inclusive decision making throughout all stages of urban and rural planning projects. Towards this the authors have developed the Sustainable City Visualization Tool (S-CITY VT) which comprises 1) indicators (these provide the basis for assessment and monitoring of sustainability) selected according to scale and development 2) modelling techniques that provide indicator values, as not all of the indicators can be measured, and allows spatio-temporal prediction of indicators 3) Interactive 3D visualisation techniques to facilitate effective communication with a wide range of stakeholders. The sustainability modelling and 3D visualisations are shown to have the potential to enhance community engagement within the planning process thus enhancing public acceptance and participation within the urban or rural development project.


2020 ◽  
Vol 91 (6) ◽  
pp. 3343-3357
Author(s):  
Julia S. Becker ◽  
Sally H. Potter ◽  
Sara K. McBride ◽  
Emma E. H. Doyle ◽  
Matthew C. Gerstenberger ◽  
...  

Abstract Operational earthquake forecasts (OEFs) are represented as time-dependent probabilities of future earthquake hazard and risk. These probabilities can be presented in a variety of formats, including tables, maps, and text-based scenarios. In countries such as Aotearoa New Zealand, the U.S., and Japan, OEFs have been released by scientific organizations to agencies and the public, with the intent of providing information about future earthquake hazard and risk, so that people can use this information to inform their decisions and activities. Despite questions being raised about the utility of OEF for decision-making, past earthquake events have shown that agencies and the public have indeed made use of such forecasts. Responses have included making decisions about safe access into buildings, cordoning, demolition safety, timing of infrastructure repair and rebuild, insurance, postearthquake building standards, postevent land-use planning, and public communication about aftershocks. To add to this body of knowledge, we undertook a survey to investigate how agencies and GNS Science staff used OEFs that were communicated following the Mw 7.8 2016 Kaikōura earthquake in Aotearoa New Zealand. We found that agencies utilized OEFs in many of the ways listed previously, and we document individual employee’s actions taken in their home-life context. Challenges remain, however, regarding the interpretation of probabilistic information and applying this to practical decision-making. We suggest that science agencies cannot expect nontechnical users to understand and utilize forecasts without additional support. This might include developing a diversity of audience-relevant OEF information for communication purposes, alongside advice on how such information could be utilized.


Author(s):  
Jeannie Van Wyk

Arun Property Development (Pty) Ltd wished to subdivide portions of the farm Langeberg 311, Durbanville. The 1988 structure plan for the area had indicated that certain roads would traverse the property. These and other roads all formed part of a new subdivision known as Sonstraal Heights. As is customary, the ownership of the roads in the subdivision vested in the municipality in terms of section 28 of the Land Use Planning Ordinance 15 of 1985 (C) (LUPO) on the date of approval of the subdivision. Central to this provision is that no compensation is payable to the developer if the provision of the public roads is based on the normal need therefor arising from the subdivision. Since the developer was of the opinion that the roads it had provided exceeded the normal need, the issue that had to be resolved was whether compensation must be paid for roads beyond what would normally be required for a subdivision. The main issue that the courts, from the Western Cape High Court to the Constitutional Court in Arun Property Development (Pty) Ltd v City of Cape Town 2015 2 SA 584 (CC), had to deal with was whether the vesting of roads beyond the normal need therefor arising from the subdivision amounted to an expropriation of land for which compensation is payable in terms of section 25(2) of the Constitution. This case note looks at the different stages of the case, and in the process highlights the historical and legislative background and the subdivision process. It shows that the vesting of the ownership of roads in the municipality is similar to the payment of a development contribution, both of which can be categorised as deprivations of property in terms of the constitutional property clause. On 1 July 2015 LUPO was effectively superseded by the new Spatial Planning and Land Use Management Act 16 of 2013 (SPLUMA) and the Western Cape Land Use Planning Act 3 of 2014 (LUPA). Since SPLUMA does not and LUPA does contain a reference to the "normal needs" provision, the implications of Arun for the new legislative dispensation are addressed.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Edward Mitchell

Purpose The compulsory purchase of land forms the subject of much legal and urban regeneration research. However, there has been little examination of the contractual arrangements between local authorities and private sector property developers that often underpin the compulsory purchase process. This paper aims to examine local authority/private developer contractual behaviour in this context. Design/methodology/approach An empirical examination of property development contracts made for the “Silver Hill” project in Winchester, a small city in southern England, and the Brent Cross shopping centre extension in north London. Drawing on Macneil’s (1983) relational contract theory, the paper analyses key contract terms and reviews local authority documentation related to the implementation of those terms. Findings The contracts had two purposes as follows: to provide a development and investment opportunity through the compulsory purchase and redistribution of private land; and to grant the private developers participating in the projects freedom to choose if they wished to take up that opportunity. While the contracts look highly “relational”, the scope for flexibility and reciprocity is both carefully planned and tightly controlled. This exposes an asymmetric power imbalance that emerges in and is rearticulated by this type of contractual arrangement. Originality/value The empirical analysis of contract terms and contractual behaviour provides a rare opportunity to scrutinise the local authority-private developer relationship underpinning both property development practice and compulsory purchase.


2015 ◽  
Vol 24 (3) ◽  
pp. 68-70
Author(s):  
Shannon L. Sibbald ◽  
Ross Graham ◽  
Jason Gilliland

Greater understanding of the important and complex relationship between the built environment and human health has made ‘healthy places’ a focus of public health and health promotion. While current literature concentrates on creating healthy places through traditional decision-making pathways (namely, municipal land use planning and urban design processes), this paper explores do-it-yourself (DIY) urbanism: a movement circumventing traditional pathways to, arguably, create healthy places and advance social justice. Despite being aligned with several health promotion goals, DIY urbanism interventions are typically illegal and have been categorized as a type of civil disobedience. This is challenging for public health officials who may value DIY urbanism outcomes, but do not necessarily support the means by which it is achieved. Based on the literature, we present a preliminary approach to health promotion decision-making in this area. Public health officials can voice support for DIY urbanism interventions in some instances, but should proceed cautiously.


2014 ◽  
Vol 1030-1032 ◽  
pp. 2292-2295
Author(s):  
Yong Liang Zhou ◽  
Jian Ming Lu ◽  
Shuai Xu ◽  
Jin Xin Cao

Site selection is one of the most important issues of the construction of a rational and efficient public bike system. In connection with the limitations of traditional methods of site selection, this thesis puts forward a site selection method based on GIS. The application of GIS technology provides site selection with a new idea and method, makes up for the shortcomings of traditional research methods and lets decision-making about site selection possess scientific and intuitive image, data and information.


Author(s):  
Ernst Marais ◽  
PJH Maree

In Arun the Constitutional Court held that section 28 of the Land Use Planning Ordinance (LUPO) vests all land indicated as public roads on a development plan in the local authority upon approval of such a plan. This includes land that is in excess of the normal need of the development. The appellant must hence be compensated for the "expropriation" of such excess land if the provision is to comply with section 25(2) of the Constitution. This ruling is problematic for both expropriation law and administrative law.In terms of section 25(2) four objections may be raised against the Arun decision. Firstly, it disregards the function of the public interest requirement for expropriation, as understood in view of the law-of-general-application requirement (which, in turn, is informed by the legality principle). The state cannot expropriate property for purposes that are ultra vires (or ulterior to) the authorising legislation. Yet the Arun court seems to allow just this by permitting the local authority to acquire land unrelated to the normal need of the development against payment of compensation instead of setting the attempted expropriation aside. The judgment, secondly, ignores the role of compensation under section 25(2). Merely paying compensation to an affected party cannot turn an invalid expropriation into a valid one, since compensation is merely the result of a valid expropriation and not a justification for it. Thirdly, it makes the distinction between deprivation and expropriation pivot on the effect of the property limitation, which is unable to properly distinguish between these two forms of limitation in all instances. Finally, Moseneke DCJ's ruling seems to afford an election to litigants who are affected by materially defective expropriations to choose whether to accept the expropriation and claim compensation or to have it reviewed and set aside under PAJA. This election, if it indeed exists, subverts the principles of expropriation law and may have negative repercussions for both expropriation law and administrative law, especially in view of the single-system-of-law principle.From an administrative law perspective the authors identify four considerations that could assist courts in determining whether administrative law should be considered, if not applied, in a given case. The first is the internal coherency of the law in view of the subsidiarity principles. The subsidiarity principles provide guidelines for courts to decide cases where two fundamental rights might be applicable. A principled approach is necessary in this context to ensure that the law operates as a single system and displays the positive characteristics of such a system. The fact that Moseneke DCJ preferred to award compensation to Arun instead of reviewing the expropriation under PAJA runs contrary to these principles and seems to result in an outcome which endorses – instead of prevents – administrative injustice. Secondly, the Constitutional Court's refusal to follow PAJA by reason of its being onerous on the appellant contradicts earlier case law where the Court held that time-periods under the Act cannot be circumvented by reason of their being burdensome. The rationale behind these time-periods is integral to securing administrative justice, since time-periods are not merely formalistic technicalities. Thirdly, the authors argue that a green-light approach to internal remedies could have resulted in the broadening of the interpretative context and recognition of the legitimate role of the public administration in the state. Finally, deference as understood by Dyzenhaus also exemplifies why administrative law should not be ignored in cases which concern the exercise of public power. According to Dyzenhaus, deference requires courts to actively participate in the justification of administrative decisions by asking whether the administration's "reasoning did in fact and also could in principle justify the conclusion reached". 


Author(s):  
Bradley Slade

In Arun Property Development (Pty) Ltd v Cape Town City the Constitutional Court awarded compensation for land that vested in the City of Cape Town in terms of a regulatory framework. The regulatory framework, sections 25 and 28 of the Cape Land Use Planning Ordinance of 1985 (LUPO), provides that land needed for public streets and places and indicated as such on a subdivision plan should vest in the local authority concerned, but without compensation if that land is based on the normal need of providing the particular development with such public streets and places. The appellant argued that since land in excess of the normal need also vested in the City, it had a right to be compensated for the excess land that vested in the City. The Court, overturning two Supreme Court of Appeal decisions, awarded compensation. The Court hinted that the compensation was for the expropriation of the appellant's land that was excess to the normal need. In the absence of a formal expropriation procedure, this case note investigates whether the compensation could have been awarded for statutory expropriation or constructive expropriation. Therefore, the question that is posed is whether the alleged expropriation for which the Court awarded compensation can be classified as either statutory expropriation or constructive expropriation. It is pointed out that the Court accepted that section 28 of the LUPO constitutes a development contribution for the land based on the normal need. In terms of the notion of development contributions, a developer has to donate land to the local authority concerned if that land is required to provide the particular development with public streets and places. A development contribution, as part of the administrative process of approving developments, is regulatory in nature and its validity is judged in terms of the requirements for a valid deprivation of property. It is argued that since the Court interpreted section 28 of the LUPO to provide for development contributions, the alleged expropriation cannot be classified as statutory expropriation. Statutory expropriation occurs when legislation expropriates property directly through mere promulgation. In this case, the excess land vested in the City only after an administrative action was taken to approve a subdivision plan. It is also argued that statutory expropriation cannot be recognised in South African law, due to the constitutional requirements for a valid expropriation in section 25(2) of the Constitution.


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