Maguire/Thomas Partners Fifth & Grand, Ltd., Maguire/Thomas Partners Grand Place Tower, Ltd., Tax Matters Partner - Page 26

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          recorded against their Library Square tract parcels to fulfill              
          the requirements of the MTP Designated Building Site Application            
          continue in effect until released by the City.                              
               Although the City could repeal Ordinance No. 159802 and the            
          MTP Designated Building Site, that possibility exists for any               
          zoning change.  A property owner has no vested right to have its            
          property’s current zoning continued; a local governmental or                
          zoning authority, in the exercise of its police power, may later            
          revise the property’s zoning.  See, e.g., Avco Cmty. Developers,            
          Inc. v. S. Coast Regl. Commn., 553 P.2d 546 (Cal. 1976) (a                  
          governmental authority may not contract away its right to                   
          exercise its police power in the future).                                   
               We conclude that the zoning change made by Ordinance No.               
          159802 and the MTP Designated Site produced benefits of an                  
          indefinite and undeterminable duration for the Library Tower and            
          Grand Place Tower parcels and/or the owners of those parcels.               
          The cost of obtaining this zoning change is thus not depreciable            
          by either Library Square or Fifth & Grand, but it must instead              
          be capitalized and allocated to the Library Tower parcel or                 
          Grand Place Tower parcel.  Galt v. Commissioner, 19 T.C. at 910;            
          cf. Chevy Chase Land Co. v. Commissioner, 72 T.C. 481, 487-489              
          (1979) (the costs incurred by the taxpayer for an unsuccessful              
          rezoning effort were deductible as an abandonment loss).  Our               
          case here is like Galt and is distinguishable from Chevy Chase              






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