A brief history is presented of the development and use of air rights. Aspects of their nature, ownership and valuation, and a formula for their appraisal are presented. The formula encompasses values of the land free and clear of railroad tracks or anything else, the economic value which is lost due to reduction of functional utility in modifying the building, the added cost of construction of the building in the air space interest, and the additional interest which must be paid for funding projects built on air rights. The last three factors are deducted from the basic value of the land to compute the value of the air rights. To determine the value of the remainder of the land after taking the air rights, one deducts the air rights from the value of the land before taking. However, determination of some of these costs with any degree of precision may become difficult. It is emphasized that the land must not be overloaded with restrictions in an effort to protect against certain conditions. All rights which are necessary to protect the highway must be preserved, but unnecessary limitations must be limited. In regard to a discussion of cities of the future, it is indicated that new means of automotive transportation will have to be developed before the air pollution danger is solved. Present problems of urban development must be better understood, and various uses must be made of the tunnel principle in dealing with underground or air space problems.
Abstract