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0 tracked cards Constitutional Law

A city landmark law prevents the owner of a historic theater from adding a 40-story office tower above it. The owner can still operate the theater, lease retail space inside it, and sell unused development rights to nearby lots, but the restriction substantially reduces the property's potential value.
Which statement is most accurate under regulatory-takings doctrine?

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The restriction is valid without compensation only if the owner bought the property after the law was enacted. The restriction is automatically a taking because it reduces the property's value. The restriction is analyzed under Penn Central by considering economic impact, interference with reasonable investment-backed expectations, and the character of the government action. The restriction must be compensated whenever it prevents the owner's most profitable use.

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