Your idea seems fine to me. I know that the town where I live required notice to neighbors for zoning variances and other building projects. However, I'd also guess that there is no law currently requiring the type of notice you've suggested.
As others on this thread have suggested, constructive notice via publication all too often is not notice at all.
The article doesn't say... but I wonder IF Connelly contacted the residents prior to making changes (adding the fence project)? Building permit.
Is there a penalty for not doing so. I would think so. I know that we have the same requirements that you listed. Maybe they could do something about that if he didn't, and would that be 15 different fines.... (3 at the time since only 3 are finished.)
As others on this thread have suggested, constructive notice via publication all too often is not notice at all.
I think the question shouldn't be what the law requires, but what the law allows. While it is not the government's job to keep you from making bad decisions, the officials do have a responsibility to the residents and community collectively. The end result of their actions is a bunch of po'd homeowners, some ugly fences, and a reduction in property values in a high-end neighborhood, with a resultant decrease in the tax base. All for $1,000.00, less the overhead of the paperwork and having the sale. They apparently knew about Connoly and his tactics, and had been warned about selling undeveloped property but did only what the law required of them, to the detriment of their constituents and community.