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City attorney tells council economic impacts of rezoning are not a taking under Utah law
Summary
City Attorney Eric Bunderson gave a training explaining that zoning decisions are legislative and that Utah Supreme Court precedent treats diminished property value from rezoning as not constituting a taking; he urged council to base decisions on health, safety and welfare standards.
City Attorney Eric Bunderson provided a legal training to the council on Sept. 9 focused on the standard of review for zone changes and the role economic impacts play in zoning decisions.
Bunderson quizzed the council that zone changes are legislative decisions and explained that the legislative standard grants broad discretion when actions are grounded in health, safety and welfare. He summarized a Utah Supreme Court case involving Sandy (referred to in the training by several case names) in which the court held that loss of property value due to rezoning does not amount to an unconstitutional taking. "Losses in property value based on a zone change is not illegal. It's not unconstitutional," he said, reading from the court’s language that such loss is an "uncompensated burden one must accept to live in an ordered society." Bunderson emphasized the takeaway: councils should not base rezoning decisions solely on economic gain or loss to property owners but instead on public welfare criteria.
Council members discussed whether the rule applied to variances and board-of-adjustment decisions; Bunderson said he would follow up with targeted training on those topics. The training was presented as an educational briefing for council members and did not include formal action.
Why this matters: Resolutions and zoning decisions shape land use, development patterns and property values; clarifying the legal standard helps the council frame decisions in defensible terms and reduces litigation risk if decisions are grounded in public-health, safety and welfare rationales.
Next steps: Bunderson said he will provide additional training on administrative approvals and variances as requested by council members.
