Scott Wedel: Compensation conflict
April 18, 2006
One size may not perfectly fit all for compensating residents of the Westland Mobile Home Park, but that is far better than making every resident apply to a special compensation committee with vague suggestions about how to more fairly compensate residents.
Any attempt to provide more or less assistance based on residents’ plans is going to require the compensation committee to be deeply involved in every applicant’s personal finances. It also is all but guaranteed to result in many residents feeling they were forced to beg for compensation only to be shafted again when they got less than they expected.
Also, it would be extremely difficult to design a compensation scheme that was not vulnerable to being cynically manipulated. A person could give all the right answers to get the most amount of money and then cash out and move away.
It might be reasonable to allocate 95 percent of the compensation according to a clear formula and reserve 5 percent for those willing to apply for additional compensation because of their individual circumstances.
And the way to handle this in the future is to tell the developer that if he or she has the resources to shut down a mobile-home park and build on the site, that he or she has the resources to expand an existing or build a new mobile-home park elsewhere in the region.
Recommended Stories For You