Zoning is the process of dividing land in to different zone that differ by permissible use. Zoning affects property development and can also refer to the dimensions and size of the land area as well as zoning for building height. There are five major different kinds of urban zoning. These include spatial, industrial, commercial, residential-commercial and residential.
Rezoning is sometimes seen as a type of social contract between the local government and citizens. It can be used for a variety of purposes, like changing the rules of the area to increase value through development. It can also work in the reverse way to rezone an industrial area into a residential one. The city will often require something in return from the owner of a property, which is known a community amenity contribution. Additional costs for infrastructure like roads, sewers and amenities like parks, community centers and pools, are paid for by developers with development cost levies, or DCLs.
Process
Certain types of zoning, like zoning for height or density, increases the value of property. It has been observed that zoning in this way is a way of transferring wealth from the community in terms of space, sunlight, views to the developer.