Shapell Industries, Inc. v. Governing Board

In 1987, the governing board of the Milpitas Unified School District (District) passed two resolutions which authorized the levy of a “school facilities fee” of $1.50 per square foot on new residential development and $0.25 per square foot on new commercial and industrial development throughout the District. Developers were required to pay fees in those amounts to the District as a condition of obtaining a building permit. Shapell Industries, Inc., a developer, tendered payment under protest and brought suit against the District seeking invalidation of both resolutions and a refund of its money. The trial court issued a writ of mandate granting the requested relief and the District appeals from the judgment.

We will affirm in part and reverse in part. We affirm that portion of the judgment ordering a refund of all commercial and industrial fees collected pursuant to Resolution No. 87.12, finding that the District acted without any reasonable basis for imposing those fees. We reverse the judgment, however, insofar as it ordered a refund of all residential fees collected pursuant to Resolution No. 87.12. As to those fees we direct that the court instead order a partial…