It's a continuing battle made worse since deletion of the registration requirement. Many states and local governments now feel they have more authority over airspace because of the Supreme Court action.
PatR
Premium Pilot
When they have no authority at all. In this case is appears the city has unilaterally declared private property owners have ownership of airspace below 400', something the Supreme Count has yet to provide, and prohibit flight below that altitude. They are also likely quite aware the FAA wants unmanned flight kept below 400'. Combining their local and federal altitude limits they in effect attempt to prohibit unmanned flight at any altitude.
Just to add to Rays post you might find this a good read also. SPECIAL EDITION Dronin' On - 7 Forces Transforming FAA UAV Industry
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