N.T. Hill Inc. v. City of Fresno

Plaintiff N.T. Hill Inc., doing business as R. J. Hill Company (Hill), appeals from a judgment in favor of defendant City of Fresno (City) in a lawsuit brought by Hill to challenge the legality of certain water capacity fees assessed against a residential subdivision being developed by Hill. We will reverse. In the published portion of this opinion we compare Government Code sections 66020 and 66022 and describe their respective applications with respect to fees of the type in issue.

Statement of Case and Facts

In June 1994, Hill submitted a vesting tentative subdivision map application to the City for the development of Golden Dawn Ranch, a proposed residential subdivision of 449 single-family homes on approximately 109 acres known as tract No. 4677. The tract was located in an area identified by the City as “water supply area ‘501.’ ” On October 5, 1994, the City approved Hill’s vesting tentative map for the development, on the condition (among others) that Hill pay a water well fee or, in the alternative, dedicate a well site and construct a water well and wellhead treatment facilities. Hill chose to pay the fee, which was calculated to be $253 per dwelling unit. By…