What a municipality may require a developer to give, and the constitutional limits.
Esshaki Legal Media TeamCurrent as of December 2023
Conditions requiring a developer to dedicate land, build improvements or pay
fees are analyzed under a heightened standard because they condition a benefit
on relinquishing property.
Essential nexus. The condition must serve the same governmental purpose as
the reason a permit could have been denied. A requirement unrelated to the
project’s impacts fails at this step.
Rough proportionality. The condition must be roughly proportional in nature
and extent to the impact of the proposed development, supported by an
individualized determination. Precise mathematics is not required; a bare
assertion is not enough.
Scope of the doctrine. It applies to monetary exactions as well as physical
dedications, and courts have applied it to conditions imposed by legislation as
well as by adjudication.
Impact fees must generally be authorized by statute, calculated from a
study identifying the capital needs generated by new development, segregated in
accounts by category, and spent within a defined period on facilities benefiting
the payers, with refunds if not.
Documentation is the defense. A capital improvements plan, a fee study
updated periodically, and a record connecting the project’s demand to the fee.
Protest and reservation. Developers should pay under written protest where
required by statute to preserve a challenge, since payment without reservation
can waive it.