Question

Ron, a developer, wanted to convert a 15 unit three-story apartment he owned into a condominium, in order to realize a greater profit on the sale of condo units than he would if he sold the building as a single entity. Which of the following factors would the municipal council NOT be required to consider in deciding whether to give approval to the conversion application?

(a) The fact that the construction of a large shopping mall four blocks from the building had caused land values to rise to an extent where it was no longer economical to maintain the property as a small apartment.
(b) The fact that there was a relatively high rental vacancy rate in the area, as compared with the city as a whole.
(c) The fact that Ron had promised, as part of his conversion proposal, to make a voluntary payment of $500 to each of the tenants, as a contribution to their moving costs.
(d) The fact that the building had a limited life expectancy due to its aging construction and the need for replumbing throughout the entire building.

Answer 1

The municipal council would not consider Ron's private agreement to pay $500 to tenants as part of his application to convert an apartment into condominiums; they would focus on planning, zoning, and community impact.

Step-by-step explanation:

The municipal council, when considering whether to give approval to Ron's conversion application of his apartment into a condominium, would not need to consider the fact that Ron had promised, as part of his conversion proposal, to make a voluntary payment of $500 to each of the tenants, as a contribution to their moving costs. This is because the council's approval process would be based on planning, zoning, housing policies, and broader community impact rather than on private agreements between the owner and tenants.

Things such as the impact of a nearby shopping mall causing land values to rise, the rental vacancy rate in the area, and the building's limited life expectancy due to aging construction are considerations that would likely influence the municipal council's decision, as they relate directly to city planning and housing market dynamics. These issues deal with economic, physical, and social conditions that are part of the public interest.