Land Use Attack Plan Outline - Fall 2007 - Selmi & Kushner - Iglesias.doc

Pre determine the level of judicial scrutiny so long

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pre-determine the level of judicial scrutiny so long as it offers the same or more protections to private property owners than the U.S. Constitution/Federal Statutes. Contrasting Special Assessments and Exactions Special assessments : Resemble a property tax – paid by eventual consumer, not developer. Not tied to development permission. They’re imposed after a project is already built…not as a condition to building. Exactions : Conditions on development Paid up front by developer, passed on to the consumer in the price of the house (including long-term interest) Emphasis in exactions is how much cost the development will impose on the community Cannot deduct cost of assessment or exaction from income tax (unlike a property tax) Traditionally imposed for streets, parks, water, and sewer. Modern: imposed for anything (e.g. child care, affordable housing, wetlands preservation, transportation) Types of Exactions Land Dedications : require developer to grant government title to land or easement. Argument Against: require one acre towards a park 5 times, city gets 5 1-acre parks instead of 1 5-acre park. “In lieu of dedication” fees (alternative) : Cash issued to city for the purpose of purchasing another property that will serve the same or similar government purpose intended by the exaction. Impact fee: condition imposed to cover infrastructure needs due to impact of development Tied to cost of infrastructure required as result of development, not value of land Imposed on zoning amendment, site plan approval, variance, building permit, subdivision map approval Linkage fees Usually applies to retail & industrial development where housing pops up as a result of development. Workers need housing, water, sewer, etc so commercial owner should pay systemic costs Limited use: California cities in up markets get away with this; Vulnerable under Nollan and Dolan Bearing the Cost of Impact Fees - Issues Exaction minus benefit = not distributed or paid equally among all parties to transaction Negative gain (extraction is worth less than benefit) b/c construction is sloppy or corrupt Rent seeking: revenue shifts away from subdivision. Community benefits at the expense of subdivision Market issues & constraints on impact fees PUBLIC CHALLENGE: Economies of scale…amenities wanted cannot be supported with existing population HOUSING CHALLENGE: No affordable housing for employees = no new business development = no new tax revenue (general & sales) unless impact fees are removed INDIVIDUAL CHALLENGE: Resident paying higher prices to cover impact fees could challenge the waiver of impact fee to developer (as violation of local government’s obligation to treat entities equally) COMPETITIVE CHALLENGE: Existing businesses not treated equally; Other JX not charging impact fees – developer will exit your market.
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  • Fall '18
  • Robert Strouse
  • developer, Zoning

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