Blue Jeans Equities West v. City & County of San Francisco

In this action we consider whether the heightened scrutiny test alluded to in Nollan v. California Coastal Comm’n (1987) 483 U.S. 825 [ 97 L.Ed.2d 677 , 107 S.Ct. 3141 ] (hereafter Nollan) should be applied to San Francisco’s Transit Impact Development Fee (TIDF) Ordinance. (Ord. No. 224-81, codified at S. F. Admin. Code, § 38.1 et seq.) We conclude the Nollan analysis is applicable only to “possessory takings,” rather than “regulatory takings,” and does not apply to the TIDF.

Facts and Procedural Background

Plaintiff Blue Jeans Equities West is the owner and developer of Levi’s Plaza, a five-building office, retail and condominium complex in the north or northeast waterfront section of San Francisco. This area of San Francisco is located away from the financial district, the traditional area of downtown office space. At the time of the project’s conception, the main tenant was to be Levi Strauss & Company, which was then located in the financial district of the city. Prior to construction of the complex, a final environmental impact report was prepared by the San Francisco Department of City Planning. Among other things, the report discussed the adverse impact the…