Compensation as a planning compass: decision making in light of future claims and lawsuits

Local governments around the world are typically required to compensate property owners for decline in property values due to planning actions. This has impacted and constrained the ability of cities to manage and plan their environments. We explore how issues of compensation, or the fear of compensation payments, influence the planning process and system. Delving into Israel’s planning system, renowned for its generous compensation regime, we examine Tel-Aviv‘s largest conservation plan, which afforded heritage protection to a thousand buildings, and inquire how issues of compensation affected decisions during the planning and implementation stages of the city’s most significant conservation policy.