Which four criteria must a use satisfy to qualify as the highest and best use of a property?

Correct Answer

B) Legally permissible, physically possible, financially feasible, and maximally productive

Highest and best use is defined as the reasonably probable use of a property that is: (1) Legally permissible — allowed by zoning and other regulations; (2) Physically possible — supported by the site's size, shape, topography, and access; (3) Financially feasible — capable of generating a positive return; and (4) Maximally productive — producing the highest value among feasible uses. In Alaska, physical possibility is especially significant given factors such as permafrost, floodplains, and remote access that can limit viable uses.