What does 'financially feasible' refer to in the highest and best use analysis?

In the context of highest and best use analysis, 'financially feasible' specifically relates to the financial return of the use. This means that for a particular use of a property to be considered viable, it must be able to generate sufficient income to cover the costs associated with its development and operation, while also providing a reasonable return on investment.

When assessing the highest and best use, one must evaluate whether the potential financial returns justify the investment. This involves analyzing expected income, market conditions, costs associated with the property, and investment risks. If a use is not financially feasible, it is unlikely to be sustainable in the long term, regardless of its legality or market demand.

While other options like costs of improvements and market demand are important factors in the overall analysis, they do not specifically define 'financially feasible.' Instead, they contribute to the broader understanding of whether a particular use can be sustained financially over time. Legality also plays a role in determining the highest and best use but does not pertain to the financial viability of the use itself. Thus, focusing on the financial returns ensures that the analysis directly addresses the economic aspects that impact a property’s potential use.