Today, the Supreme Court announced its decision in Koontz v. St. Johns River Water Management District. The Court held that the government's demand for property from a land-use permit applicant must satisfy the Nollan/Dolan requirements even when it denies the permit or even when its demand is for money.
Mr. Koontz initially sought permits to develop a portion of his property from the St. Johns Water Management District (the "District"), which required permit applicants who want to build on wetlands to offset the resulting environmental damage. He offered to deed to the District a conservation easement on nearly 75% of his property. The District rejected this proposal and stated that his project would be approved only if he (a) reduced the size of the development and deeded a conservation easement over the remaining (larger) piece of property to the District, or (b) hired contractors to improve District wetlands several miles away. Koontz then filed suit alleging an unreasonable exercise of the state's police power constituting a taking without just compensation.
The trial court found the District's actions were unlawful because they failed the Nollan and Dolan tests, and the District Court of Appeal affirmed. Nollan and Dolan are cases which held that the government may not condition the approval of a land-use permit on the owner's relinquishment of a portion of his property unless there is a nexus and rough proportionality between the government's demand and the effects of the proposed land use.
The Florida Supreme Court then reversed the District Court of Appeal, finding that Mr. Koontz's claim failed because, unlike in Nollan and Dolan, the District denied his application, and, that a demand for money cannot give rise to a claim under Nollan and Dolan. The Supreme Court overruled the state court on both points, resulting in a victory for property rights advocates and landowners.
This article was prepared with assistance from Laura M. Walda, Associate.
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