Contract zoning is making a deal with a governing body to be granted exemptions to a zoning code. It was originally considered illegal, but the concept has evolved into two versions.
The first is legitimate conditional use zoning. In this legal version, there is a unilateral promise from the landowner to the governing board. For example, a city may decide to allow a production factory in an area where factories are not zoned if the factory will not release any emissions, excessive noise, or odors.
The second is illegitimate contract zoning. In this illegal version, a bi-lateral contract is established between the landowner and the governing board. For example, a city can not agree to allow a production factory in an area where factories are not zoned if the factory will pay the city a large amount of money.
Illustrative Cases:
See e.g., Cram v. Town of Geneva 190 A.D.2d 1028 (N.Y. App. Div. 1993); Save Harrison, Inc. v. Town/Village Harrison 168 A.D.3d 949 (N.Y. App. Div. 2019).
See also: land use law
[Last updated in July of 2022 by the Wex Definitions Team]
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