The Goldwater Institute has sued Holbrook, claiming the city violated a local business owner's property rights to keep “undesirables” out.
The owner of a Howard Johnson motel planned to sell his property to a buyer who intended to convert it into temporary short-term lodging for low-income individuals.
But the libertarian-leaning organization says the city council then passed a new land-use ordinance directly related to the transaction. The mayor said the change gives the city more control of “who’s coming in.”
Court documents allege this caused the sale fall to through and decreased the property value. The Goldwater Institute says that’s illegal under a voter-approved proposition that requires governments to compensate property owners when regulations prevent them from using their land as they see fit.
They’re now demanding Holbrook pay the property owner $675,000 in compensation.