Also known as: traditional exaction · exactions
Written by attorneys · grounded in primary & secondary sources — see below
Requirements that local governments impose on land developers as conditions for approving subdivision plats or building permits. These requirements commonly include dedications of land for public parks or streets and payments of fees in lieu of dedication or for installation of infrastructure such as water and sewer lines. The conditions must directly mitigate impacts caused by the proposed development.
Tiana Tan seeks approval to build a small retail center on her parcel. The city grants the permit only if she conveys a public access easement across the rear of the lot for a future bike path. The easement does not address any traffic or drainage impact from the retail center. The condition therefore operates as an unconstitutional exaction.
Tara Tran applies to expand her warehouse. The county refuses the permit unless she pays a large sum for off-site road improvements unrelated to her project. Because the monetary demand lacks the required connection to project impacts, the refusal constitutes a taking subject to exactions review.
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Traditional exactions require developers to dedicate land for parks or streets or pay fees in lieu of dedication. They also commonly cover street surfacing and utility connections. These conditions are valid only when they mitigate specific impacts of the proposed development.
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An exaction becomes a taking when the government conditions a permit on conveyance of a property interest without an essential nexus to a legitimate interest that would justify denying the permit outright. The condition must directly mitigate harms caused by the development.
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Yes. The standards apply to permit denials and to demands for money as well as land dedications. Refusal to issue a permit because the applicant rejects an unconnected or disproportionate monetary condition triggers takings scrutiny.
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