Sterling Park, LP v. City of Palo Alto

Developer sought to build ninety-six condominiums, but as a condition of obtaining a permit to do so, City required Developer to set aside ten condominium units as below market rate housing and make a substantial payment to a city fund. Developer challenged these requirements but did so while proceeding with construction. At issue before the Supreme Court was whether Cal. Gov’t Code 66020, which permits a developer to proceed with a project while also protesting the imposition of “fees, dedications, reservations, or other exactions,” applied in this case. The lower courts held that section 66020 did not apply, and thus, the action was untimely. The Supreme Court reversed, holding that even if the requirements at issue in this case were not “fees” under section 66020, they were “other exactions,” and accordingly, Developer was permitted to challenge the requirements while the project proceeded.

Sterling Park, LP v. City of Palo Alto