Property environmental contamination will have a major impact on an apartment building. The health of the tenants will be affected and the tenants may move out as the apartments may be considered uninhabitable. Also, even if it is not a major spill that contamination must be revealed to any new potential tenant. Also the owner may be responsible to clean up toxic waste on their property. Income producing property's value is primarily determined by the Net Operating Income which on a contaminated property will be reduced considerably by the effects of the toxic waste and will continue until the toxic waste and its effect has been removed
The authority of State and Local government to regulate land use and enforce development and construction standards is vested in the "Police Power". This power establishes the right of government to enact laws to protect the general health, welfare, and safety of the public. Therefore the correct answer is C
An "adult dancing" business is an extremity which would have a negative on home values in that neighborhood. The best argument against allowing an adult bar in or adjacent to a residential area is that zoning laws exist to protect the value and stability of single-family households. Also zoning laws generally have restrictions that require establishments like that to be in specified zoned areas that are not near residential areas.