In a landmark decision for land use and development, the United States Supreme Court has ruled under the Fifth Amendment of the U.S. Constitution that regulatory agencies cannot make “extortionate demands” on land-use permit applicants. In Koontz v. St. Johns River Water Management District, 517 U.S. __ (2013), the Court allowed a landowner to bring a claim for a Fifth Amendment takings, where the agency attempted to coerce him into providing what was considered excess or disproportionate mitigation as the “price” of getting land use approval.

Why Does This Decision Matter?

This decision is important because it signals that all government agencies—federal, state and local — will need to take greater care that the exactions and conditions they impose on permit applicants are fair and related to the purpose of the permit program. It also clarifies that an agency cannot deny a permit application because the applicant refuses to accept the agency’s unreasonable mitigation demands. Applicants can rely on the constitutional protections recognized by this decision as they negotiate their permit mitigation terms.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Topics:  Dolan v City of Tigard, Fifth Amendment, Koontz v St John's River Water Management, Land Developers, Nexus, Nollan v California Coastal Commission, Permits, Property Owners, Rough Proportionality Test, Takings

Published In: Civil Procedure Updates, Constitutional Law Updates, Commercial Real Estate Updates, Residential Real Estate Updates, Zoning, Planning & Land Use Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Venable LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »