Addressing Exactions And Impact Fees
Developers have many costs to take into consideration, not the least of which are exactions. An exaction is a condition that the government requires a developer to meet in order to get permits and move forward with a project.
There are essentially two types of exactions: monetary and nonmonetary exactions. Monetary exactions include impact fees, linkage fees and other fees designed to cover some or all of the costs associated with building public infrastructure that will be required because of the new development. Nonmonetary exactions include easements or dedications of land, and may prove just as costly to a developer as monetary exactions.
Is An Exaction A Taking?
Texas landowners sometimes refer to exactions as takings. This is a particularly complex issue. Monetary exactions may not be considered regulatory takings, because the taking clause refers to the taking of property, either physically taking the property or imposing regulations that prevent the landowner from getting the use or value of the property. An obligation to pay money to the government cannot be considered property.
However, nonmonetary exactions may be considered takings in certain situations. Questions must be asked about the necessity of the easement or land dedication and the value to the public good contrasted with the loss to the property owner.
What Can Be Done About Exactions?
At Vassallo & Salazar, P.C., our Dallas based attorneys will carefully review your situation. Are you being asked to pay an impact fee or provide an easement in order for your project to move forward? We will help you understand your rights and obligations. We will work with the regulatory body to negotiate a positive outcome, with the goal of moving your project forward as quickly and at as little added cost as possible. When necessary, we are prepared to take the fight further and challenge the constitutionality of an exaction.