Also known as: development exaction · exaction · exactions · impact fees · dedications
Written by attorneys · grounded in primary & secondary sources — see below
Requirements imposed by a local government on a developer as a condition of granting permission to develop land. The requirements may include dedication of land for public use, installation of public improvements, or payment of fees in lieu of dedication.
Dustin Donovan sought a permit to expand his warehouse. The city imposed a fee calculated as a percentage of projected revenue, collected alongside his income tax return, and expected to generate substantial funds for public infrastructure. Donovan paid the fee under protest and challenged its validity.
David Dawson applied to enlarge his retail store. The city required dedication of a strip of land for a greenway and bike path. Dawson showed that the required dedication exceeded the traffic impact of the expansion.
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Dominic Drake sought to replace his beachfront cottage with a larger home. The coastal commission granted the permit only if Drake conveyed a public easement across the beach. Drake refused and sued, claiming the condition lacked connection to any impact from the new house.
Dorothy Daniels requested approval to subdivide her parcel. The city demanded a cash payment for off-site park improvements that bore no relation to the subdivision's effects. When Daniels declined, the city denied the permit outright.
Delilah Duran owned homes in a neighborhood targeted for a new auto plant. The city used eminent domain to assemble the parcels and transfer them to a private developer, citing economic development benefits.
Daphne Doyle purchased oceanfront lots intending to build homes. A new state law barred all construction to preserve the dunes. Doyle sued, arguing the regulation left her parcels without any economically viable use.
The government must demonstrate an essential nexus between the dedication and a legitimate interest that would support outright denial of the permit. It must also prove the dedication is roughly proportional in nature and extent to the projected impact of the development.
Yes. The standards govern monetary exactions as well as dedications of real property. Refusal to issue a permit because an applicant rejects an invalid monetary condition triggers scrutiny under the exactions doctrine.
Courts examine the exaction's practical operation and effect. Key indicators include collection through the tax system, variation with income or revenue measures, and capacity to raise substantial revenue, regardless of the label Congress or a locality applies.
…law). As I noted in Bowen v. Roy : “The fact that the underlying dispute involves an award of benefits rather than an exaction of penalties does not grant the Government license to apply a different version of the Constitution. . . . The fact that appellees seek exemption from a precondition that the Government…