November 27, 2023
OBTAINING LAND PLOTS FOR CONSTRUCTION AND DETERMINING THEIR PURPOSE: FIELD OF DISCRETION FOR LOCAL AUTHORITIES

Local authorities have the right to reserve land plots for comprehensive development of the territory. In this case developers may not apply for such land plots if the requested purpose of their use does not correspond to the city plans. Moreover, the courts may not second guess the local authorities’ zoning decisions since the approval of the town-planning documents falls within the competence of local authorities.

The Supreme Court confirmed the right of local authorities to refuse to grant a land plot to developers if the planned use of the land plot requested by the developer does not comply with the city plans for comprehensive development of the territory (CDT). At the same time, the local authority need not prove that the CDT is already being implemented by another developed under a specific contract or is reflected in approved detailed documentation. The mere fact that the land plot in question is classified as falling within the comprehensive development zone is sufficient to consider it reserved for this purpose. Once this classification is made, any prior planning documentation that allowed to place other objects in a territory is considered to have lapsed.

In another case, the Supreme Court highlighted the fact that the approval of the town-planning documents falls within the competence of municipal authorities. In that case, the lower court had ordered the municipality to adopt a new general plan to move the claimant’s land plot outside a designated zone for the placement of a pre-school. The municipality did not comply with the court order, which caused the claimant to seek relief in court again to confirm that it is entitled to build an office building on its land plot. However, the Supreme Court held that courts are not entitled to second guess the municipality’s zoning decisions. Since the approval of the general plan is a matter of municipal discretion, only the municipality is entitled to make the relevant decision.

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