Municipality May Attempt to Use Planning Power to Acquire Parking
A developer purchased 17 acres of prime Scottsdale land from the Arizona State Land Department at public auction, where the developer was the sole bidder. The City of Scottsdale, which has publicly declared its need for a portion of the land for additional parking for Pinnacle Peak Park, did not bid on the land. The City Manager has announced the City's intention of using its planning powers to "acquire" the additional parking from the developer.
When a municipality starts talking about using its "planning power" to acquire property watch-out. That is really a euphemism for an unconstitutional taking of property without just compensation. Often, a City will try to exact property from developer's during the zoning process, knowing that the developer may need the cooperation of the city during the land entitlement process. A city will use this to its advantage and require a developer to give up land for reasons that may be completely unrelated to the zoning and use of the property. The only way that such unconstitutional activity can be stopped is for the developer to stand up to the city and refuse to dedicate the land. Even if that means having to fight the city in court.
The ability to use planning powers to acquire private property is limited. Announcing its intention prior to a planning request and on the eve of a private purchase of the property may subject a municipality's actions to closer scrutiny if the property owner challenges the municipality's actions
