What is the actual procedure through which this happens? You buy the land and then are granted permission on a discretionary basis? It seems to me that if you were a small business this becomes much harder to participate in because you need to acquire and hold the unproductive asset. This would mean that land use tends towards that which large firms (which can sustain the costs easily by self-financing) find useful.
For simple businesses like a retail store in a location that has other retail it’s not too risky to bet that you’ll be approved, too.
For businesses with unique needs or that happen to be in the public crosshairs, you’re putting a lot at risk in the process.
The process favors big companies and developers who have established relationships and “connections” with the planning boards.
The situation is even wilder in some other countries, both more and less corrupt than the average US municipality. In some places you’re not getting a permit at all without a sizable bribe, or having an in with the planning board.
In my city one of the aspiring developers tried to run an expensive political campaign to get a family member into an office that could have helped with their approvals. People caught on and didn’t like it one iota.