Sterling Park, L.P. v. City of Palo Alto

A developer wanted to build 96 condominiums on a parcel of land. As a condition of obtaining a permit to do so, the city required the developer to set aside 10 condominium units as below market rate housing and make a substantial cash payment to a city fund. The developer proceeded with the construction but challenged in court these requirements pursuant to a statute that permits a developer to proceed with a project while also “protest-ting] the imposition of any fees, dedications, reservations, or other exactions imposed on a development project.” (Gov. Code, § 66020, subd. (a).)

We must decide whether section 66020 applies. If it does not, it appears another statute would apply, and that statute would make this action untimely. (See § 66499.37.) Specifically, we.must decide whether the requirements at issue constitute the imposition of “any fees ... or other exactions” under section 66020, subdivision (a). The trial court and Court of Appeal held that this statute only governs fees imposed “for the purpose of defraying all or a portion of the cost of public facilities related to the development project.” (§ 66000, subd. (b) [defining “fee”].) Because the protested…