The unanimous opinion holds that development impact fees established through the legislative process are subject to constitutional scrutiny as potential regulatory takings.

The Takings Clause of the Fifth Amendment to the US Constitution allows the government to take private property for a public purpose so long as it provides “just compensation” to the property owner. The Takings Clause coexists with state and local governments’ police power to regulate land use. Past Takings Clause jurisprudence recognizes that a land use regulation “reasonably necessary to the effectuation of a substantial government purpose” is not a taking unless it diminishes too much of the property’s value or frustrates the owner’s investment-backed expectations.