It's basically the same idea in the states as Tinfoil presents in Canada. Organize a group of concerned citizens from your neighborhood, and make alliances with similar organizations in other neighborhoods.
As far the argument it takes the sway the city council, a roomful of angry shouting people goes a long way, no matter how good their argument. There's actually no right or wrong in zoning; it's just politics. Make sure that the city council knows _in advance_ that there are a lot of angry people, even before it goes to the planning commission. They'll pass their concerns along to the planning department and planning commission, which both have to make recommendations. If anybody has any contacts within the political establishment, use them to find out who to influence and whether the developer has any particular influence (ie, is he somebody's buddy or is he paying somebody off).
Get a petition together with a lot of names. Meet with planners with a long list of concerns that must be addressed: traffic, pollution, child safety, blocked sight lines (decreases property values). Make sure the newspaper knows about it. When the planning commission meets, raise a ruckus and get in the paper. When the city council meets, make sure once again to have met with city councilmen privately in advance (separately), and mob the chamber. If you can't fill the chamber, make lots of noise. Everybody speak; keep them there until 3 in the morning.
Honest to God, this should probably do it unless the local govt's out-and-out corrupt and the developer has them in his pocket. It works all the time around here. You probably can't succeed in keeping the parcel from being developed, but you can keep the development less dense.
Actually, one other thought. Really the only way to keep the lot entirely undeveloped is to hire somebody to go out there and find an endangered species. The Western Blue-Throated Regurgitator, the Wisconsin Purple Stink Flower, whatever. If you could do that, the developer's ass is grass. But I wouldn't count on it.
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