That’s just the local politicians political corruption through the zoning process. When government reduces the value of someone’s property, the government should pay the difference.
Zoning has been used as a way for local politicians to do things that would otherwise never be allowed or considered ethical.
In Yuma, Arizona, zoning was voted down repeatedly. People did not want the government telling them what they could do with their property. Finally, the state forced them into it... for matching funds. Of course the local politicians love it. It gives them tremendous, almost unaccountable, power.
Here in Texas we have to major cities of comparable size, Houston and Dallas. The DFW metroplex has zoning throughout it’s municipalities. Houston does not. As a result, you’ll find that DFW is much more livable than Houston. I’ll take zoning please.