An Ohio company paid $12,100 for Cleveland land and put $40,000 into a planned used-car lot; months later the city rezoned it residential, and an appeals court said the move was a compensable taking

• An Ohio appeals court has ruled that the City of Cleveland must begin compensation proceedings after changing the zoning of a commercial property to residential use, preventing the owner from carrying out a planned business project.
• The Court of Appeals of Ohio, Eighth Appellate District, upheld a lower court ruling that requires the city to start formal proceedings to determine compensation for the landowner, TMS Enterprises, Ltd.
• The dispute began after the company spent thousands of dollars preparing a site for a used-car dealership, only for the city to change the property's zoning to resi