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11-1447 KOONTZ V. ST. JOHNS RIVER WATER MGMT. DECISION BELOW: 77 So.3d 1220 CERT. GRANTED 10/5/2012 QUESTION PRESENTED: For over eleven years, a Florida land use agency refused to issue any of the permits necessary for Coy A. Koontz, Sr., to develop his commercial property. The reason was because Koontz would not accede to a permit condition requiring him to dedicate his money and labor to make improvements to 50 acres of government-owned property located miles away from the project-a condition that was determined to be wholly unrelated to any impacts caused by Koontz's proposed development. A Florida trial court ruled that the agency's refusal to issue the permits was invalid and effected a temporary taking of Koontz's property, and awarded just compensation. After the appellate court affirmed, the Florida Supreme Court reversed, holding that, as a matter of federal takings law, a landowner can never state a claim for a taking where (1) permit approval is withheld based on a landowner's objection to an excessive exaction, and (2) the exaction demands dedication of personal property to the public. The questions presented are: 1. Whether the government can be held liable for a taking when it refuses to issue a land-use permit on the sole basis that the permit applicant did not accede to a permit condition that, if applied, would violate the essential nexus and rough proportionality tests set out in Nollan u. California Coastal Commission, 483 U.S. 825 (1987), and Dolan v. City of Tigard, 512 U.S. 374 (1994); and 2. Whether the nexus and proportionality tests set out in Nollan and Dolan apply to a land-use exaction that takes the form of a government demand that a permit applicant dedicate money, services, labor, or any other type of personal property to a public use. LOWER COURT CASE NUMBER: SC09-713
In the case of Koontz v. St. Johns River Water Management District, Coy Koontz Sr., a landowner in Florida, sought to develop a section of his property which was classified as protected wetlands. The local water management district agreed to grant him permission if he would either reduce the size of his development or pay for improvements on other government-owned lands to offset environmental damage caused by his project. When Koontz refused both options and sued instead, claiming that such demands were an overreach of governmental power and violated the Takings Clause under Fifth Amendment rights (which prohibits governments from taking private property without just compensation), it led to this Supreme Court case. The U.S Supreme Court ruled in favor of Koontz in 2013 with a 5-4 decision stating that government's demand for property from a land-use permit applicant must satisfy the requirements of Nollan v. California Coastal Commission and Dolan v City Of Tigard even when it denies the permit or demands money.
In the dissenting opinion for Koontz v. St. Johns River Water Management District, Justice Elena Kagan argued that the majority's decision expanded the scope of two previous cases (Nollan and Dolan) beyond their original intent, which could have significant implications on local governments' ability to regulate land use and negotiate with developers. She contended that these cases were meant to apply only when a government issues a permit in exchange for money or property but not when it denies one outright as was done in this case. Furthermore, she disagreed with applying these precedents to monetary exactions since they originally dealt with physical dedications of property. The broad interpretation by the majority, according to her view, would unduly burden public entities and limit their capacity to serve citizens effectively through land-use regulations.