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failed attempt to rezone the property for residential purposes
during the year in issue. The Planning Commission and staff
opposed residential zoning of the property, recommending to the
City Council to deny the rezoning request. In 1989, Lakewood's
proposed rezoning of the Elbow Lake property was overwhelmingly
defeated by 95 percent of the voters in the referendum.
Petitioner has not presented a persuasive reason to believe that
the City Council would ignore this near-unanimous, clear public
objection to residential zoning of the Elbow Lake property and
approve a subsequent rezoning application for the property.
Moreover, at the time of trial, the Elbow Lake property was still
zoned for agricultural use. We conclude that a change in the
zoning of the Elbow Lake property was not probable at the time of
the claimed deduction or within a reasonable period of time
thereafter. Lakewood's proposed development of the Elbow Lake
property was prohibited in 1989 because of the local zoning
ordinance, which predates the 1989 Manual, regardless of the 1989
Manual and MOA. Accordingly, the 1989 Manual and MOA did not
cause the $9 million reduction in the value of the Elbow Lake
property claimed by Lakewood.
We find that the continued agricultural zoning of the Elbow
property resulted in a $1 million value of the property in 1989.
In that regard, we must determine whether Lakewood is entitled to
deduct either the difference between the basis and $1 million or
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