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permit conditions and development exactions. The more - <br />indirect the nexus betwee~the exaction imposed and the public <br />needs created, the more vulnerable the exaction is to successful <br />regulator), takings challenges INollan v. California Coastal <br />Commission, 483 U.S. 82~ (1987)]. <br /> <br />Hollan and the EsSential Nexus <br /> <br />In 1987, the U.S. Suprem8 Court considered whether a <br />condition imposed on app{oval ora building permit constituted <br />a taking of private properr~ without just compensation. In <br />Nollan, the Court ruled that the state could not condition <br />issuance of a permit on th61andowners' dedication of a public <br />easement across their bead{front propert), because no nexus <br />existed between the permit~condition and the public purpose of <br />ensuring public beach acce!s. <br /> When the Nollans applied for a permit to enlarge their <br />bungalow, the California ~oastal Commission found that the <br />neg' structure would increa, se obstruction of the ocean view. <br />lLatber than probfl:nt the ct~nstruct~on altogether, the <br />commission sought to impbse the beach access conditiom The <br />Court found thc conditionluntelated to visual access. Justice <br />Scalia stated that "[t]he eviilent constitutional propriety <br />disappears, however, if the ~:ondition substituted for the <br />prohibition utterly fails to further the end advanced as the <br />justification for thc prohiNt,on. When the essential nexus is <br />eliminated, the situation b~comes the same as if California law <br />forbade shouting fire in a c}owded theater, but granted <br />dispensation to those willing to contribute $100 to the state <br />treasury." The Court concluded that the permit condition <br />amounted to a regulator), t~.king. <br /> Before the decision in Dolan, the Supreme Court's takings <br />decisions followe, d the gen~alized standard that a land-use <br />regulation must 'substantia[lly advance a legitimate state <br />interest" and not deny a laridowner economically viable use of <br />his land [Agins v. Ci9, of Ti~uron, 447 U.S. ,-55 (1980); Penn <br />Central]. However, no cicai test was ever articulated for <br />determining what constitu~s a legitimate state interest or what <br />type of connection between~ the regulation and the state interest <br />satisfies the requirement. <br /> In Nollan, the coastal co~mission argued that this <br />reasonable relanonshtp te~t should be appl,ed when <br />determining how close a "ilk" was necessary between the <br />condition imposed and the ?ublic need or burden created by <br />the proposed development ~r land use. The Court did not reach <br />that issue, however, becausd it found that "this case does not <br />meet even the most untailo}ed standards." <br /> 5tare courts have been u}ing a "reasonable relationship" test <br />to determine whether a regfilation substantially advances a <br />legitimate public interest. ~nder this standard, if the restriction <br />imposed by the regulation i~ reasonably related to a legitimate <br />purpose, the regulation witlistands constitutional attack. <br />Following Nollan, many commentators speculated as to whether <br />a "substantial relationship" !est was required for development <br />conditions or exactions. Th{~ state courts, however, continued to <br />apply the traditional "reasoOablc relationship" test. <br /> <br />Doian and a Hew Standard <br />In Dolan, the Supreme CorOt set out to resolve the question left <br />open m Nollan concerning ~the requtred degree of connecnon <br />between the exactions imposed by the city and the projected <br /> <br />Mark Dennison is an artorn~ and author who practices environ- <br />mental, land-use, and zoningilaw in Ridgewood, New Jersey. <br />2 ~ <br /> <br />impacts of the proposed development." In state court, the <br />landowner argued for a "substantial relationship" test. The <br />Oregon Supreme Court, however, upheld the development <br />exactions under a reasonable relationship test, stating that it was <br />"unable to agree with the petitioners that the Nollan court <br />abandoned the 'reasonably related' test." <br /> Venturing further down the dangerous, result-oriented path <br />it took in 1992 in Lucas v. South Carolina Coastal Council the <br />Court has nog, pronounced yet another dubious standard--the <br />"rough proportionality" test--to justin, questionable reasoning <br />used to invalidate certain development exactions as a {aking of <br />private property ~vithout just compensation. Although Lucas <br />focused only on a rather narrow aspect of takings lag,. <br />jurisprudence~regulations that deprive a landowner of all <br />productive and beneficial use of property--it turns out to have <br />foreshadowed the Court's pro-property rights stance.. <br /> After reviewing the standards that state courts have <br />traditionally applied, the Court created a brand new test for <br />determining the constitutionality of development conditions <br />and exactions, stating: <br /> <br /> We think the %easonable relationship" test adopted by a <br /> majority of the state courts is closer to the federal constitutional <br /> norm than either of those previously discussed ["rational basis" <br /> and "specific and uniquely attributable" tests]. But we do not <br /> adopt it as such, partly because the term "reasonable <br /> relationship" seems confusingly similar to the term "rational <br /> basis" which describes the minimal level of scrutiny under the <br /> Equal Protection Clause of the Fourteenth Amendment. We <br /> think a term such as "rough proportionality" best encapsulates <br /> what we hold to be the requirement of the Fifth Amendment. <br /> No precise mathematical calculation is required, but the ciD, <br /> must make some sort of individualized determination that the <br /> required dedication is related both in nature and extent to the <br /> impact of the proposed development. <br /> <br /> Having announced its new test, the Court then analyzed the <br />facts to det~e?mine whether the conditions imposed by the city <br />of Tigard, Oregon, met this standard. <br /> <br />Facts of the Dolan Case <br />The landowner, Florence Dolan, owns and operates a plumbing <br />and electric supply store in an area zoned central business district <br />(CBD). The store covers approximately 9,700 square feet or/the <br />eastern side of a 1.67-acre parcel. Fanno Creek flows through the <br />lot's southwestern corner and along its western boundar)'. A <br />portion of the property lying within the creek's 100-year <br />floodplain is virtually unusable for commercial development. <br /> The city adopted a comprehensive plan and codified it in its <br />community development code (CDC). Among the plan's <br />requirements, propert7 owners in the CBD needed to comply <br />with a 15 percent open space and landscaping requirement. The <br />city also adopted a plan for a pedestrian/bicycle pathway to <br />encourage alternatives to automobile transportation in the <br />CBD, as well as a master drainage plan to alleviate flooding <br />problems along Fanno Creek, which included areas near the <br />Dolan property. <br /> Dolan applied to the city for a permit to increase the size of <br />the store to 17,600 square feet and pave a 39-space parking lot. <br />The city. planning commission approved the permit application <br />subject to conditions imposed by the CDC, which establishes <br />the following standard for site development review approval: <br /> Where landfill and/or development is allowed within and <br /> adjacent to thc 100-year floodplain, the ciD, shall require the <br /> dedication of sufficient open land area for greenway adjoining <br /> <br /> <br />