Kaufman & Broad Central Valley, Inc. v. City of Modesto

The City of Modesto (City) appeals from a judgment granting a petition for writ of mandate filed by Kaufman & Broad Central Valley, Inc. (Kaufman & Broad). The writ ordered the City to refund, with interest, development impact fees it had collected from Kaufman & Broad in excess of those in effect when Kaufman & Broad’s vesting tentative subdivision map for its River Terrace subdivision was deemed complete on June 22, 1988.

In this opinion, we hold that the due process notice requirements implicit in the vesting tentative map statutes limit increases in developer’s fees to those for which adequate standards for determining the scope and extent of the fee increases are in place at the time the vesting tentative map is deemed complete.

Background

In 1987, the City appointed an “Infrastructure Study Committee” to examine various mechanisms for funding certain future public improvements identified in the City’s “Capital Improvement Program.” In its final report issued in June of that year, the committee recommended the City establish development impact fees to finance that portion of the improvements made necessary by new development. The committee offered additional…