Cleveland must consider compensation after rezoning a $52,100 used-car lot investment for housing

An Ohio appeals court has ruled that the City of Cleveland must begin compensation proceedings after changing the zoning of a commercial property to residential use, preventing the owner from carrying out a planned business project. The Court of Appeals of Ohio, Eighth Appellate District, upheld a lower court ruling that requires the city to start formal proceedings to determine compensation for the landowner, TMS Enterprises, Ltd. The dispute began after the company spent thousands of dollars preparing a site for a used-car dealership, only for the city to change the property's zoning to residential use months later.Purchase and initial site investmentCourt documents show that TMS Enterprises bought a parcel of land in Cleveland for $12,100, intending to open a used-car dealership. After purchasing the property, the company spent another $40,000 preparing the site for the planned business. The investment was based on the expectation that the land could be used for commercial purposes. However, months after the company made these investments, the City of Cleveland changed the zoning rules for the property. The land was moved from a commercial or retail classification to a residenti...