Codding Enterprises v. City of Merced

Appellant, Codding Enterprises, was the owner of a 5-acre parcel of unimproved land in the City of Merced which was zoned for the construction of 107 apartment units. In October of 1972 appellant sold the five-acre parcel to a third party, but before the parcel could be conveyed city ordinances required appellant to obtain permission from the city for a lot split. As a condition of approving the lot split, the city levied fees in the amount of $150 for each of the apartment units planned, for a total of $16,050. These fees were collected in lieu of dedication of land for park and recreational purposes pursuant to an ordinance of the City of Merced. After exhausting its administrative remedies appellant paid the fees under protest and subsequently filed the present action.

Appellant contends the ordinances were void in that they conflicted with a state statute, Business and Professions Code section 11546, which authorizes cities, as a condition to approval of subdivision maps, to require the dedication of land for park and recreational purposes or the payment of fees in lieu of such dedication. The word “subdivision” is defined by Business and Professions Code section…