MBE Rules · Constitutional Law

Exactions and Public Use

Nollan/Dolan; Kelo

The rule

Land-use exactions require an essential nexus and rough proportionality to the development's impacts; takings for economic development satisfy the Public Use Clause under deferential review.

In plain English

Land-use exactions are conditions placed on developers to mitigate the impact of their projects. For these exactions to be valid, there must be a direct connection (essential nexus) between the condition and the impact of the development, and the condition must be roughly proportional to the impact.

Worked example

A city requires a developer to dedicate a portion of their land for a public park as a condition for obtaining a building permit. The city justifies this requirement by showing that the new development will increase local population density, thereby necessitating more recreational space. The court finds that the city's requirement meets the essential nexus and rough proportionality standards, allowing the exaction to stand.

Memory hook

Exactions need a link and balance: connect the dots and keep it fair!

The trap

Exams may present scenarios where the connection between the exaction and the development's impact seems weak, leading students to overlook the essential nexus requirement. Students might also confuse the standards for exactions with those for regulatory takings.

How examiners test it

Questions often involve a hypothetical development project and ask whether a specific exaction imposed by a government entity meets the essential nexus and rough proportionality tests, sometimes contrasting it with takings for economic development.

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