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Zoning Bulletin October 25, 2010 1 Volume 4 1 No. 20 <br />lTh a district is to encourage land development that "emphasizes mixing <br />land uses, increases the availability of affordable housing ... preserves <br />open space ... and critical environmental areas ... and encourages <br />community and stakeholder collaboration in development decisions." <br />There are financial incentives for municipalities that create smart <br />growth zoning districts. These incentives include the following possi- <br />ble payments from the commonwealth to the municipality: a one-time <br />"zoning incentive payment" that correlates with the number of units of <br />new construction allowed; a "density bonus payment" in the amount <br />of $3,000 for each housing unit constructed within the district; and <br />preferential status when discretionary funding is awarded from speci- <br />fied agencies of the commonwealth. <br />In 2006, the Town of Kingston (the "Town") began the process of <br />adopting a smart growth gverlay district on a 109-acre parcel. In accor- <br />dance, with the related laws, the Town submitted an application to the <br />Commonwealth's Department of Housing and Community Development <br />(the "Department"). Among other required information, the application <br />identified 69.6 acres of the 109-acre parcel as "developable land." <br />Subsequent to the application, in October 2006, the common- <br />wealth's Natural Heritage and Endangered Species Program issued <br />an updated atlas. The revised atlas identified as much as SO% of the <br />109-acre parcel as a priority habitat for state -listed rare species. Under <br />the smart growth laws, the developable land area in a smart growth <br />zoning overlay district excludes, among other areas, land designated as <br />rare species habitat. The town became aware of the rare species desig- <br />nation on the parcel. However, it did not revise its figures contained in <br />its application to the Department. <br />Eyentually, the Department approved the town's application. In <br />April 2007, a zoning ordinance (the "Ordinance") identifying the <br />109 acres as a smart growth overlay district was adopted by a vote <br />of the Town meeting. The Department then granted final approval of <br />the Ordinance in August 2007. The town received a zoning incentive <br />payment in the amount of $600,000. The town was then required, by <br />the governing laws, as well as conditions placed on the approval by <br />the Department, to annually update the Department with information, <br />including the amount of developable land. In its first annual update, <br />dated July 2008, the town did not revise its figures relating to the de- <br />velopable land area on the 109-acre parcel. <br />Thereafter, in November 2007, owners of land abutting or near the <br />smart growth zoning district (the "Abutters") filed a legal action in <br />court. They sought to have the Ordinance invalidated. Among other <br />things, the Abutters alleged that the Ordinance designating the smart <br />growth district was "invalid as an arbitrary and unreasonable exercise <br />of zoning power." The Abutters argued that the Ordinance (and thus <br />© 2010 Thomson Reuters 7 <br />61 <br />