The recent bankruptcy of the California city of Mammoth Lakes - brought on by a $43 million court decision in favor of a developer - is an extreme example of the cost of land use disputes. But it's indicative of a widespread problem in the state.
You may be familiar with a spate of recent municipal bankruptcies in California. But in Mammoth Lakes, "It was not pensions or plummeting property values or questionable
accounting practices that pushed the tiny mountain resort town over the
edge: It was a $43-million court judgment in a lawsuit brought by a
developer after the town tried to back out of an agreement," note
.
"Peacocks, radio antennas, strip clubs and landslides have all sparked
high-profile cases, as well as the more common suits - such as the one
in Mammoth Lakes - by developers who were denied approval for a project
or neighbors and environmentalists trying to stall big-box stores or
large residential projects on sensitive land," report Sewell and Garrison.
"These cases often
drag on for years, sometimes consuming millions of dollars in legal
bills even before the issues are resolved. A Times review found that in
several Los Angeles County cities, land-use litigation amounted to the
lion's share of their legal bills."
FULL STORY: Land-use disputes can put cities on shaky financial ground

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