Very good YouTube video that asks the question, what does it take to build a beautiful city? The short answer is balance. The right balance between development and planning regulations that preserve and enhance our shared environment.
As we all know, where there is an optimal balance, there is a laffer curve to measure it. In the case of development, that's best measured as aggregate land rents. see here
So, in order to align the incentives of the state to make sure they produce a framework of laws, rules and regulations that maximises those rents, they should be collected as public revenue to be spent on services or redistributed as a Cititzen's Income.