Who Says That Markets 'Fail' to Price in Externalities?

Good little vignette here that pleases me on so many levels.
1.  It is clear that house, aka land, prices suffer a reduction compared to similar locations if they are on a busy road.  That is the market is pricing in the externality.  Well.  Well.  Who'd a thunk it?
2.  DA is just another rent seeking homeownerist looking after No. 1.
3.  What's more DA appears to be using her position to further the scheme that will enhance her personal land value. Allegedly.  It cheers me up no end to see that cronyism is alive and well in JC's acolytes.