If the properties are available at tax auction for $500 that would then make the value at $500 as one would not pay $3000 for something that can be purchased for $500.So you now have an established value.
So if for instance properties were sold for $200 that would then place a value on surrounding properties at $200 ,comps set the worth.
Or you could go a little bit further ,
For example, Henneberry and Barrows [[1990) find
that the effects of exclusive agricultural zoning in Wisconsin on property values are negative effects for smaller parcels close to urban areas and positive for large parcels farther from urban areas.
In a recent analysis that uses propensity score matching and instrumental variables to account for the zoning
endogeneity, Lui and Lynch [[2011) find that low-density zoning has differentiated impacts on rural land
parcel depending on whether they are resource versus residential parcels. Specifically, resource parcels’
land values are unaffected and residential parcels’ values decrease by 20-50% with the low density rural
zoning constraint.
http://ageconsearch.umn.edu/bitstrea...5%203%2011.pdf
So while it would be clear that the general look of the area would be improved by cleaning up of the area ,weather or not it would actually increase property values for the surrounding neighbors? I think that would be up for dispute.
"These issues are important in the legal debates at the national level involving takings cases, and they are highly relevant to Oregon's Measure 37, passed by voters in
November 2004. [[4) Measure 37 requires that when a land-use regulation "has the effect of reducing the fair market value of the property," then either a payment must be made to landowners equal to the reduction in the fair market value, or a waiver must be granted from the regulation. [[5) Determining whether land-use regulations have had positive or negative effects on land values is, of course, a central question in this context."
http://www.thefreelibrary.com/The+ef...s.-a0144981210
I would believe that by offering the existing property owners first right of refusal the city council has pretty much eliminated the above possibility.
It all sounds good and well on the surface but this is new territory when you start introducing urban farming on a large scale,cross the Ts and dot the I's ,if the measure had flown through with no thought other then yea it looks good and in the case I listed above how much more monies would it have cost the city in litigation and future buy outs..