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rightthinking - > Right Thinking -> Hillside ordinance OK a tough pill to swallow
Hillside ordinance OK a tough pill to swallow

The atmosphere in the Bakersfield City Council chambers was almost festive Wednesday night as council members unanimously voted to approve the hillside ordinance that will ensure the orderly development of the hills in northeast Bakersfield.

Not that council members swapped high fives, mind you. There was no triumphant fist-pumping in the audience, no unseemly victory dances in the foyer. But the relief over ending this six-year saga -- at least for the moment -- was palpable.

Hopefully the howling mobs will now disperse, The Californian's editorial writers will find another topic to obsess over and the City Council and developers can get down to the business at hand -- the fair and just enactment of the ordinance.

A little fairness is long overdue, but before we get into that, I have to say the ordinance, for the most part, is a great idea. I love everything about it. Almost.

No homes on the bluffs? Good idea, though no one actually ever planned to build homes on those ridges in the first place. Health and safety standards for fire protection and erosion control? Super, got to have 'em. Viewsheds and slope protection? Fine, no problem.

Including a provision that compensates property owners for land they will no longer be able to develop, but bought before the ordinance was even a twinkle in the planning commission's collective eye?

Oops, not included.

The long and bitter battle over the bluffs has not been fought over viewsheds, slope protection or even the snotty attitudes of out-of-town developers. It was and still is about respecting private property rights and honoring contracts.

Contracts like those made by Gordon and Joyce Downs who, as part of a development group that includes General Holding, bought 40 acres of land in the foothills east of Hart Park in 2004.

Downs, a Kern County native who has found success in his heavy-equipment rental business, said he did his homework before making the land purchase, checking with the city's general plan and reading every available document to ensure his business venture was as low-risk as possible.

Downs' own development plan was deemed complete by the city in July 2005. The most recent version of the hillside ordinance -- the one with aesthetic provisions that would prevent Downs from developing most of his property -- was not even available for public notice until May 2006.

The fact that the aesthetic provisions didn't even exist when Downs and other developers bought their property is lost on the ordinance's most ardent supporters, who insist the property owners ignored other documents that indicated such requirements were in the offing.

Documents like the city's Vision 2020 plan, a general, long-range plan for the city's growth that includes in its 94 pages a reference noting the importance of viewsheds and "the aesthetic value of open space areas."

Open spaces just like those found on Downs' property! How's that for a connection?

Pretty lame. Downs thinks so, too, and says he only wished he'd been clairvoyant enough to predict what lay ahead.

"If I were (clairvoyant), I'd go to Vegas, play the roulette wheel for a day and retire," he says. "If those class one and class two viewsheds in the revised ordinance had been in effect when we purchased the property, we wouldn't have bought it."

But they weren't and he did. And even though the ordinance's head cheerleader, Councilman Mike Maggard, was able to return most of Downs' lots two weeks ago in a compromise made with a quick sweep of his pen, the developer is "still looking at over a $1 million impact" in lost revenue, says Scott Howry, attorney for Downs and other property holders.

"We have a very strong legal argument against the ordinance because it can't retroactively be applied to the projects," he says. "We're going to continue to work to resolve our differences over the next few months."

Lawsuits, Howry says, will surely be filed.

But costly litigation can still be avoided thanks to variances built into the ordinance that will allow developers and City Council members to address aesthetic and other issues as they arise during development. At least three council members made a public promise to honor those variances before casting their votes Wednesday night.

Smart growth that invests in the entire community is something everyone in Bakersfield wants. But regulating property out from under its rightful owners isn't smart -- it's unethical, un-American and just plain dumb.

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posted by rightthinking on Sunday, October 29, 2006 at 04:35 PM
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posted by mattloch on Oct 29, 2006 at 11:43 PM
He lost a few lots, and that's "over $1 million impact"? Well, he still got several million in the bank, then, because that little "compromise" left him several lots to develop. He's still going to make money on it. The fact that he isn't going to be able to make an obscene amount of money is what Ms. Shrider is talking about here. Not "regulating property out from under its rightful owners". He bought the property in 2004, well into the "six-year saga". 

"If I were (clairvoyant), I'd go to Vegas, play the roulette wheel for a day and retire" he says. Well, let's be truthful about this analogy. He came along well after the ball was rolling. He put his bet down well after the table was closed. And now he's pissed off because he's hit "odds" instead of landing on the exact number? He's still going to see a huge retun on this investment. He's still going to make more money than perhaps any other investment, stocks, certainly bonds, anything short of robbing a bank will not net the pile of cash he's going to make off with. He's going to need one of those huge scoop loaders he rents for his business to haul off the bundles of money he's going to make here. But it's "un-ethical, un-American, and just plain dumb" because he won't make a dump truck's worth of cash? 

Way to stand up for the "little guy", Shrider. Glad to see you're so concerned for the well-being of this multi-millionaire.
posted by rightthinking on Oct 30, 2006 at 07:03 AM

You miss the point, Mattloch. How much money Mr. Downs has or may make is irrelevant, though many seem inexplicably bitter over his financial success. He used his own money, made what all available evidence showed was a sound investment and now stands to make a handsome profit. What's the problem? 

You say Mr. Downs "put his bet down well after the table was closed." What evidence do you have of that? If you have the documents that show Mr. Downs should have seen this coming, I'd very much like to see them. So would the city, as they haven't yet been able to produce such evidence. Mr. Downs and the other property owners bought their land fair and square - and the city knows it.

I did not say it's "unethical, un-American and just plain dumb" because Mr. Downs may not "make a dumpt truck's worth of cash" and you know it. It's the breaking of contracts, the reneging on deals I find reprehensible. That many in our city don't says much about our community's collective character.

posted by Hardliner4freedom on Oct 30, 2006 at 07:53 AM

A little off topic (not much), but I'm definitely in favor, thus far, of Prop. 90, the property rights initiative.
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Not only is it a needed re-affirmation of the takings Clause of the Fifth Amendment (dented by the misguided Kelo Supreme Court ruling), but it protects freedom-related aspects of private property rights as well.  Property rights are important bulwarks of liberty that are as neglected by most civil libertarians as are falsely prized by civil authoritarians.
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I actually don't want to tip off freedom-haters to the key passage that enamors me of Prop. 90, but it's in there.  Freedom-haters often pretend to cherish property rights -- yet abandon that principle the moment a property owner wants to do more with it than displace kit foxes.

 

posted by NancyII on Oct 30, 2006 at 08:11 AM
Property rights are funny things.  I firmly believe when you plunk your money down on a piece of property you have the right to do with it what you please.  But..what about the guy who wants to just build a shack on it?   Across from your front yard.
OK..now we need some ordinances to protect the common good...the neighborhood if you will.  So you buy a nice piece of land in a nice development with a view of the mountains and your neighbor plants giant trees blocking your view.  Do you have a right to demand they be removed because after all, that's why you bought where you did?  Does your neighbor have the right to build a big shop next door so that when you walk out onto your patio..that's what you get to look at?

If I had the money, I'd have bought all the land along the river on Alfred Harrell Highway and made sure no one built out there (except me of course) and kept the area pristine.  Unfortunately I didn't have the money and maybe wouldn't have had the foresight to do that.  Now it's getting densely populated.

Back in the dark ages my ex and I bought 20 acres next to a campground in Tehachapi with an old delapidated house that we restored.  It sat on the corner of the acreage with a view down the valley to Brights Lake and when I left in 1985 it was really a gorgeous view.  I drove up there last year and that view is gone.  It's covered with houses and roads.  Next door where the campground had previously kept clear of camper (they were farther up the mountain) was covered with camp trailers and motorhomes.

I guess my rambling point is that although we buy the property, we don't always have the right to dictate to others how thier land can be used...or not used.  This bluff thing has always bothered me because I love the rugged look of all of it.  The fact is..people bought that land and we have no right to use it for our personal recreation without their permission.  They have a right to build condos, houses, Starbucks, or anything they choose.  I don't have to like it..but it's the way it should be.

This is starting to sound like the cowboy days when ranchers felt the sodbusters had no right to fence off the range with barbed wire.

The property owners have rights..but so does the public.   Who's is right and who is wrong?
posted by Hardliner4freedom on Oct 30, 2006 at 08:30 AM
Zoning laws do give Libertarians fits.  Many Libertarians see the need for them; others even consider zoning laws an intolerable deprivation of property rights.
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Personally, I accept the need for zoning laws, but I have seen them used by people in power to harass owners for political or personal reasons.
posted by rightthinking on Oct 30, 2006 at 10:26 AM

Okay, one more time. 

It's not about being rich or poor. It's not about whether or not a community has a right to apply building restrictions - of course it does.

The Hillside Ordinance fight is about property owners who bought the property fair and square. It's about a city that adopted an ordinance and wanted to enforce it RETROACTIVELY WITHOUT COMPENSATING owners for land they could no longer use. 

It really isn't all that complicated.

posted by Hardliner4freedom on Oct 30, 2006 at 10:28 AM

Marylee is right on this one...

posted by dusty1215 on Oct 30, 2006 at 10:34 AM
Man, folks are sure fond of big bold fonts when they want to make their point. The people who own the land in question are not poor, or middle class, right? They are well-off individuals are they not? Aren't they land developers? Just asking here, since I am not aware of who actually owns the land being discussed in this thread.
posted by Hardliner4freedom on Oct 30, 2006 at 10:47 AM

I don't think it's OK to justify retroactively adopting and enforcing an ordinance that deprives landowners their intended land use, simply because the land owners involved are wealthy.

 

posted by dusty1215 on Oct 30, 2006 at 10:51 AM
If they are land developers, they always risk this type of ordinance or ruling when they want to build. Its part of the whole speculation thing isn it Hardliner? I don't think its because they are wealthy..I think they were speculating and they got burned.
posted by Christopherv on Oct 30, 2006 at 11:44 AM
Who didn't know in 2004 that the zoning on the bluffs was unsettled?  It is disingenuous and unbelievable to claim that much naivete about the land speculation on this property.  Mike Maggard's position was quite well know - and in fact was more hard line in 2004 than in this latest draft.  It was reported by the Californian that General Holdings had proposed a deal with Maggard that would allow him to look strong on the issue until he was safely elected to his new office, and then the provision would expire after he was out of the City Council.  That seems closer to what has actually come to pass than Marylee's characterization of a land pulled from under its property owner.

The fun irony is that General Holding will end up losing more money by their delay in cooperating because they have delayed their way right out of th ehot housing market, only to win when the frenzy has so dramatically cooled.   If this housing slump is anything like the last one ('89 -'95) they have a few years and a several point decline in property values to endure.  Plus, unless Marylee is going to buy several of those lots, General Holding also has plagued the actual future homebuilders there with a reputation that this is the spot where greedy, uncaring and cheap homes are built.

Nice job, guys.  A Phyrric victory if ever there was one.
posted by mattloch on Oct 30, 2006 at 12:03 PM
I never said it was a "rich v. poor" issue. I just don't think that we should necessarily feel sorry for a developer that will still see a return on their investment, but won't see such a large return on it.

Thanks for responding Ms. Shrider. It is nice to see you interested in this issue, and responding to our comments. For my responses:

1) Mr. Downs purchased the property four years into the Hillside Ordinance development. If you can't see that, you're just being foolish.

2) If you (or Mr. Downs) can produce a signed contract or deal between the City and himself, I'll call for that City employee to be fired. You won't. The closest you'll find is a nice letter saying that the City looks forward to reviewing his development plans. Nowhere in there does it mention anything about a permitted (or potential) density, or breakdown of lot sizes. Just a pretty statement about "looking forward to development similar to (other places in town)."

3) Compensation (like what you're rooting for) occurs when the property owner loses most or all of the value of a property. Mr. Downs has lost a few lots, taking a "$1 million impact". Well, that was counting your chickens before they've hatched, isn't it? He's still going to se a significant return on his investment. To say that he should be compensated is as foolish as saying that developers should be compensated for the losses incurred because of roads, parks, schools, police and fire stations, or any of a number of "public" spaces or uses. Will Mr. Downs still see a (sizable) return? Yes. Would it be greater without the Ordinance? Yup. Would it be even greater without standard sized streets or public amenities? You bet. Should he be compensated? No way. And that's not just me talking. The Supreme Court has said so time and time again.

It really isn't that complicated.
posted by anonymous on Oct 31, 2006 at 08:26 AM
2816.
posted by nooneisabovethelaw on Nov 1, 2006 at 12:16 PM
No, he should have been compensated for what he paid for the land. Period. Not what he could have made off the land. That's fair and right and legal. I wish the council hadn't backed down and agreed to the compromise.
posted by mattloch on Nov 1, 2006 at 02:43 PM
But he only lost potential value, not actual value. That's like saying "I was going to buy a BMW, but since the taxes are so high I'm not able to afford it. Therefore the government should buy me a car."

All land use regulations decrease potential value. But why should the government compensate you for something that you may or may not have built? This is not only counting chickens before they've hatched, this is asking to be paid for a delivery of chickens that haven't hatched.
posted by nooneisabovethelaw on Nov 1, 2006 at 06:32 PM
Mattloch, I agree with you. As an example, what I mean is, if he paid $100 per acre for the land and was hoping to sell it for $1,000, pay him $100 and take his land. He's not out anything that way. That's fair compensation. He couldn't necessarily hope to make anything on it. Or I'd live with even reasonable markup...say, 10 %. Anything else is ridiculous.
posted by mattloch on Nov 1, 2006 at 08:48 PM
How about we let him develop it, and if he makes anything more than what he paid for it, we don't give him a dime. If he ends up taking a loss after subdividing it, he gets paid back whatever he paid for it. And we need receipts. Deal?
posted by nooneisabovethelaw on Nov 1, 2006 at 09:49 PM
Done deal. I'm down widdat.
posted by anonymous on Nov 2, 2006 at 09:29 AM
2819.
1

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