Koontz v. St. Johns River Water Management Dist.
Koontz v. St. Johns River Water Management Dist.
Opinion
*599
Our decisions in
Nollan v. California CoastalComm'n,
I
A
In 1972, petitioner purchased an undeveloped 14.9-acre tract of land on the *2592 south side of Florida State Road 50, a divided four-lane highway east of Orlando. The property is *600 located less than 1,000 feet from that road's intersection with Florida State Road 408, a tolled expressway that is one of Orlando's major thoroughfares.
A drainage ditch runs along the property's western edge, and high-voltage power lines bisect it into northern and southern sections. The combined effect of the ditch, a 100-foot wide area kept clear for the power lines, the highways, and other construction on nearby parcels is to isolate the northern section of petitioner's property from any other undeveloped land. Although largely classified as wetlands by the State, the northern section drains well; the most significant standing water forms in ruts in an unpaved road used to access the power lines. The natural topography of the property's southern section is somewhat more diverse, with a small creek, forested uplands, and wetlands that sometimes have water as much as a foot deep. A wildlife survey found evidence of animals that often frequent developed areas: raccoons, rabbits, several species of bird, and a turtle. The record also indicates that the land may be a suitable habitat for opossums.
The same year that petitioner purchased his property, Florida enacted the Water Resources Act, which divided the State into five water management districts and authorized each district to regulate "construction that connects to, draws water from, drains water into, or is placed in or across the waters in the state." 1972 Fla. Laws ch. 72-299, pt. IV, § 1(5), pp. 1115, 1116 (codified as amended at
In 1984, in an effort to protect the State's rapidly diminishing wetlands, the Florida Legislature passed the Warren S.
*601
Henderson Wetlands Protection Act, which made it illegal for anyone to "dredge or fill in, on, or over surface waters" without a Wetlands Resource Management (WRM) permit. 1984 Fla. Laws ch. 84-79, pt. VIII, § 403.905(1), pp. 204-205. Under the Henderson Act, permit applicants are required to provide "reasonable assurance" that proposed construction on wetlands is "not contrary to the public interest," as defined by an enumerated list of criteria. See
Petitioner decided to develop the 3.7-acre northern section of his property, and in 1994 he applied to the District for MSSW and WRM permits. Under his proposal, petitioner would have raised the elevation of the northernmost section of his land to make it suitable for a building, graded the land from the southern edge of the building site down to the elevation of the high-voltage electrical lines, and installed a dry-bed pond for retaining and gradually releasing stormwater runoff from the building and its parking lot. To mitigate the environmental effects of his proposal, petitioner offered to foreclose any possible future development of the approximately 11-acre southern section of his land by deeding to the District a conservation *2593 easement on that portion of his property.
The District considered the 11-acre conservation easement to be inadequate, and it informed petitioner that it would approve construction only if he agreed to one of two concessions. First, the District proposed that petitioner reduce the size of his development to 1 acre and deed to the District a conservation easement on the remaining 13.9 acres. To reduce the development area, the District suggested that petitioner could eliminate the dry-bed pond from his proposal and instead install a more costly subsurface *602 stormwater management system beneath the building site. The District also suggested that petitioner install retaining walls rather than gradually sloping the land from the building site down to the elevation of the rest of his property to the south.
In the alternative, the District told petitioner that he could proceed with the development as proposed, building on 3.7 acres and deeding a conservation easement to the government on the remainder of the property, if he also agreed to hire contractors to make improvements to District-owned land several miles away. Specifically, petitioner could pay to replace culverts on one parcel or fill in ditches on another. Either of those projects would have enhanced approximately 50 acres of District-owned wetlands. When the District asks permit applicants to fund offsite mitigation work, its policy is never to require any particular offsite project, and it did not do so here. Instead, the District said that it "would also favorably consider" alternatives to its suggested offsite mitigation projects if petitioner proposed something "equivalent." App. 75.
Believing the District's demands for mitigation to be excessive in light of the environmental effects that his building proposal would have caused, petitioner filed suit in state court. Among other claims, he argued that he was entitled to relief under
B
The Florida Circuit Court granted the District's motion to dismiss on the ground that petitioner had not adequately exhausted his state-administrative remedies, but the Florida District Court of Appeal for the Fifth Circuit reversed. On remand, the State Circuit Court held a 2-day bench trial. After considering testimony from several experts who *603 examined petitioner's property, the trial court found that the property's northern section had already been "seriously degraded" by extensive construction on the surrounding parcels. App. to Pet. for Cert. D-3. In light of this finding and petitioner's offer to dedicate nearly three-quarters of his land to the District, the trial court concluded that any further mitigation in the form of payment for offsite improvements to District property lacked both a nexus and rough proportionality to the environmental impact of the proposed construction. Id ., at D-11. It accordingly held the District's actions unlawful under our decisions in Nollan and Dolan .
The Florida District Court affirmed,
*2594
Second, the majority drew a distinction between a demand for an interest in real property (what happened in
Nollan
and
Dolan
) and a demand for money.
*604
Board of Trustees of Internal Improvement Trust Fund,
Recognizing that the majority opinion rested on a question of federal constitutional law on which the lower courts are divided, we granted the petition for a writ of certiorari, 568 U.S. ----,
II
A
We have said in a variety of contexts that "the government may not deny a benefit to a person because he exercises a constitutional right."
Regan v. Taxation WithRepresentation of Wash.,
Nollan
and
Dolan
"involve a special application" of this doctrine that protects the Fifth Amendment right to just compensation for property the government takes when owners apply for land-use permits.
Lingle v. Chevron U.S.A. Inc.,
A second reality of the permitting process is that many proposed land uses threaten to impose costs on the public that dedications of property can offset. Where a building proposal would substantially increase traffic congestion, for example, officials might condition permit approval on the owner's agreement to deed over the land needed to widen a public road. Respondent argues that a similar rationale justifies the exaction at issue here: petitioner's proposed construction project, it submits, would destroy wetlands on his property, and in order to compensate for this loss, respondent demands that he enhance wetlands elsewhere. Insisting that landowners internalize the negative externalities of their conduct is a hallmark of responsible land-use policy, and we have long sustained such regulations against constitutional attack. See
Village of Euclid v. Ambler Realty Co.,
Nollan
and
Dolan
accommodate both realities by allowing the government to condition approval of a permit on the dedication of property to the public so long as there is a "nexus" and "rough proportionality" between the property that the
*606
government demands and the social costs of the applicant's proposal.
Dolan, supra, at 391,
B
The principles that undergird our decisions in
Nollan
and
Dolan
do not change depending on whether the government
approves
a permit on the condition that the applicant turn over property or
denies
a permit because the applicant refuses to do so. We have often concluded that denials of governmental benefits were impermissible under the unconstitutional conditions doctrine. See,
e.g.,
Perry,
A contrary rule would be especially untenable in this case because it would enable the government to evade the limitations of Nollan and Dolan simply by phrasing its demands for property as conditions precedent to permit approval.
*607
Under the Florida Supreme Court's approach,
*2596
a government order stating that a permit is "approved if" the owner turns over property would be subject to
Nollan
and
Dolan,
but an identical order that uses the words "denied until" would not. Our unconstitutional conditions cases have long refused to attach significance to the distinction between conditions precedent and conditions subsequent. See
Frost & Frost Trucking Co. v. Railroad Comm'n of Cal.,
The Florida Supreme Court puzzled over how the government's demand for property can violate the Takings Clause even though " 'no property of any kind was ever taken,' "
Nor does it make a difference, as respondent suggests, that the government might have been able to deny petitioner's application outright without giving him the option of
*608
securing a permit by agreeing to spend money to improve public lands. See
Penn Central Transp. Co. v. New York City,
That is not to say, however, that there is no relevant difference between a consummated taking and the denial of a permit based on an unconstitutionally extortionate demand. Where the permit is denied and the condition is never imposed, nothing has been taken. While the unconstitutional conditions doctrine recognizes that this burdens a constitutional right, the Fifth Amendment mandates a particular *609 remedy -just compensation-only for takings. In cases where there is an excessive demand but no taking, whether money damages are available is not a question of federal constitutional law but of the cause of action-whether state or federal-on which the landowner relies. Because petitioner brought his claim pursuant to a state law cause of action, the Court has no occasion to discuss what remedies might be available for a Nollan / Dolan unconstitutional conditions violation either here or in other cases.
C
At oral argument, respondent conceded that the denial of a permit could give rise to a valid claim under
Nollan
and
Dolan,
Tr. of Oral Arg. 33-34, but it urged that we should not review the particular denial at issue here because petitioner sued in the wrong court, for the wrong remedy, and at the wrong time. Most of respondent's objections to the posture of this case raise questions of Florida procedure that are not ours to decide. See
Mullaney v. Wilbur,
Respondent argues that we should affirm because, rather than suing for damages in the Florida trial court as authorized by
Respondent also contends that we should affirm because petitioner sued for damages but is at most entitled to an injunction ordering that his permit issue without any conditions. But we need not decide whether
federal
law authorizes plaintiffs to recover damages for unconstitutional conditions claims predicated on the Takings Clause because petitioner brought his claim under
state
law. Florida law allows property owners to sue for "damages" whenever a state agency's action is "an unreasonable exercise of the state's police power constituting a taking
*2598
without just compensation."
For similar reasons, we decline to reach respondent's argument that its demands for property were too indefinite to give rise to liability under
Nollan
and
Dolan.
The Florida Supreme Court did not reach the question whether respondent issued a demand of sufficient concreteness to trigger the special protections of
Nollan
and
Dolan
. It relied instead on the Florida District Court of Appeals' characterization of respondent's behavior as a demand for
Nollan
/
Dolan
purposes. See
*611 Finally, respondent argues that we need not decide whether its demand for offsite improvements satisfied Nollan and Dolan because it gave petitioner another avenue for obtaining permit approval. Specifically, respondent said that it would have approved a revised permit application that reduced the footprint of petitioner's proposed construction site from 3.7 acres to 1 acre and placed a conservation easement on the remaining 13.9 acres of petitioner's land. Respondent argues that regardless of whether its demands for offsite mitigation satisfied Nollan and Dolan, we must separately consider each of petitioner's options, one of which did not require any of the offsite work the trial court found objectionable.
Respondent's argument is flawed because the option to which it points-developing only 1 acre of the site and granting a conservation easement on the rest-involves the same issue as the option to build on 3.7 acres and perform offsite mitigation. We agree with respondent that, so long as a permitting authority offers the landowner at least one alternative that would satisfy Nollan and Dolan, the landowner has not been subjected to an unconstitutional condition. But respondent's suggestion that we should treat its offer to let petitioner build on 1 acre as an alternative to offsite mitigation misapprehends the governmental benefit that petitioner was denied. Petitioner sought to develop 3.7 acres, but respondent in effect told petitioner that it would not allow him to build on 2.7 of those acres unless he agreed to spend money improving public lands. Petitioner claims that he was wrongfully denied a permit to build on those 2.7 acres. For that reason, respondent's offer to approve a less ambitious building project does not obviate the need to determine whether the demand for offsite mitigation satisfied Nollan and Dolan .
III
We turn to the Florida Supreme Court's alternative holding that petitioner's claim fails because respondent asked
*612
him to spend money rather than give up an easement on his land. A predicate for any unconstitutional conditions claim is that the government could not have constitutionally ordered the person asserting the claim to do what it attempted to pressure that person into doing. See
Rumsfeld,
We note as an initial matter that if we accepted this argument it would be very easy for land-use permitting officials to evade the limitations of Nollan and Dolan . Because the government need only provide a permit applicant with one alternative that satisfies the nexus and rough proportionality standards, a permitting authority wishing to exact an easement could simply give the owner a choice of either surrendering an easement or making a payment equal to the easement's value. Such so-called "in lieu of" fees are utterly commonplace, Rosenberg, The Changing Culture of American Land Use Regulation: Paying for Growth with Impact Fees, 59 S.M.U. L.Rev. 177, 202-203 (2006), and they are functionally equivalent to other types of land use exactions. For that reason and those that follow, we reject respondent's argument and hold that so-called "monetary exactions" must satisfy the nexus and rough proportionality requirements of Nollan and Dolan .
*613 A
In
Eastern Enterprises,
Respondent's argument rests on a mistaken premise. Unlike the financial obligation in
Eastern Enterprises,
the demand for money at issue here did "operate upon ... an identified property interest" by directing the owner of a particular piece of property to make a monetary payment.
*2600
Louisville Joint Stock Land Bank v. Radford,
In this case, moreover, petitioner does not ask us to hold that the government can commit a
regulatory
taking by directing someone to spend money. As a result, we need not apply
Penn Central
's"essentially ad hoc, factual inquir[y],"
Finally, it bears emphasis that petitioner's claim does not implicate "normative considerations about the wisdom of
*615
government decisions."
Eastern Enterprises,
B
Respondent and the dissent argue that if monetary exactions are made subject to scrutiny under Nollan and Dolan, then there will be no principled way of distinguishing impermissible land-use exactions from property taxes. See post, at 2607 - 2608. We think they exaggerate both the extent to which that problem is unique to the land-use permitting context and the practical difficulty of distinguishing between the power to tax and the power to take by eminent domain.
It is beyond dispute that "[t]axes and user fees ... are not 'takings.' "
*2601
Brown,
At the same time, we have repeatedly found takings where the government, by confiscating financial obligations, achieved a result that could have been obtained by imposing a tax. Most recently, in
Brown,
Two facts emerge from those cases. The first is that the need to distinguish taxes from takings is not a creature of our holding today that monetary exactions are subject to scrutiny under Nollan and Dolan . Rather, the problem is inherent in this Court's long-settled view that property the government could constitutionally demand through its taxing power can also be taken by eminent domain.
Second, our cases show that teasing out the difference between taxes and takings is more difficult in theory than in practice.
Brown
is illustrative. Similar to respondent in this case, the respondents in
Brown
argued that extending the protections of the Takings Clause to a bank account would open a Pandora's Box of constitutional challenges to taxes. Brief for Respondents Washington Legal Foundation et al. 32 and Brief for Respondent Justices of the Washington Supreme Court 22, in
Brown v. Legal Foundation of Wash
., O.T. 2002, No. 01-1325. But also like respondent here, the
Brown
respondents never claimed that they were exercising their power to levy taxes when they took the petitioners' property. Any such argument would have been implausible under state law; in Washington, taxes are levied by
*617
the legislature, not the courts. See
The same dynamic is at work in this case because Florida law greatly circumscribes respondent's power to tax. See
This case does not require us to say more. We need not decide at precisely what point a land-use permitting charge denominated by the government as a "tax" becomes "so arbitrary ... that it was not the exertion of taxation but a confiscation of property."
Brushaber v. Union Pacific R. Co.,
*618 C
Finally, we disagree with the dissent's forecast that our decision will work a revolution in land use law by depriving local governments of the ability to charge reasonable permitting fees.
Post,
at 2606 - 2607. Numerous courts-including courts in many of our Nation's most populous States-have confronted constitutional challenges to monetary exactions over the last two decades and applied the standard from
Nollan
and
Dolan
or something like it. See,
e.g.,
Northern Ill. Home Builders Assn. v. County of Du Page,
The dissent criticizes the notion that the Federal Constitution places any meaningful limits on "whether one town is overcharging for sewage, or another is setting the price to sell liquor too high."
Post,
at 2607. But only two pages later, it identifies three constraints on land use permitting fees that it says the Federal Constitution imposes and suggests that the additional protections of
Nollan
and
Dolan
are not needed.
Post,
at 2608 - 2609. In any event, the dissent's argument that land use permit applicants need no further protection when the government demands money is really an argument for overruling
Nollan
and
Dolan
. After all, the Due Process Clause protected the Nollans from an unfair allocation of public burdens, and they too could have argued that the government's demand for property amounted to a taking under the
PennCentral
framework. See
Nollan,
* * *
We hold that the government's demand for property from a land-use permit applicant must satisfy the requirements of Nollan and Dolan even when the government denies the permit and even when its demand is for money. The Court expresses no view on the merits of petitioner's claim that respondent's actions here failed to comply with the principles set forth in this opinion and those two cases. The Florida Supreme Court's judgment is reversed, and this case is remanded for further proceedings not inconsistent with this opinion.
It is so ordered.
Justice KAGAN, with whom Justice GINSBURG, Justice BREYER, and Justice SOTOMAYOR join, dissenting.
In the paradigmatic case triggering review under
Nollan v. California Coastal Comm'n,
I think the Court gets the first question it addresses right. The Nollan - Dolan standard applies not only when the government approves a development permit conditioned on the *620 owner's conveyance of a property interest ( i.e., imposes a condition subsequent), but also when the government denies a permit until the owner meets the condition ( i.e., imposes a condition precedent). That means an owner may challenge the denial of a permit on the ground that the government's condition lacks the "nexus" and "rough proportionality" to the development's social costs that Nollan and Dolan require. Still, the condition-subsequent and condition-precedent situations differ in an important way. When the government grants a permit subject to the relinquishment of real property, and that condition does not satisfy Nollan and Dolan, then the government has taken the property and must pay just compensation under the Fifth Amendment. But when the government denies a permit because an owner has refused to accede to that same demand, nothing has actually been taken. The owner is entitled to have the improper condition removed; and he may be entitled to a monetary remedy created by state law for imposing such a condition; but he cannot be entitled to constitutional compensation for a taking of property. So far, we all agree.
Our core disagreement concerns the second question the Court addresses. The majority extends
Nollan
and
Dolan
to cases in which the government conditions a permit not on the transfer of real property, but instead on the payment or expenditure of money. That runs roughshod over
Eastern Enterprises v. Apfel,
I also would affirm for two independent reasons establishing that Koontz cannot get the money damages he seeks.
*621 First, respondent St. Johns River Water Management District (District) never demanded anything (including money) in exchange for a permit; the Nollan - Dolan standard therefore does not come into play (even assuming that test applies to demands for money). Second, no taking occurred in this case because Koontz never acceded to a demand (even had there been one), and so no property changed hands; as just noted, Koontz therefore cannot claim just compensation under the Fifth Amendment. The majority does not take issue with my first conclusion, and affirmatively agrees with my second. But the majority thinks Koontz might still be entitled to money damages, and remands to the Florida Supreme Court on that question. I do not see how, and expect that court will so rule.
I
Claims that government regulations violate the Takings Clause by unduly restricting the use of property are generally "governed by the standards set forth in
Penn Central Transp. Co. v. New York City,
Our decisions in
Nollan
and
Dolan
are different: They provide an independent layer of protection in "the special context of land-use exactions."
Lingle,
Accordingly, the
Nollan
-
Dolan
test applies only when the property the government demands during the permitting process is the kind it otherwise would have to pay for-or, put differently, when the appropriation of that property, outside the permitting process, would constitute a taking. That is why
Nollan
began by stating that "[h]ad California simply required the Nollans to make an easement across their beachfront available to the public ..., rather than conditioning their permit to rebuild their house on their agreeing to do so, we have no doubt there would have been a taking" requiring just compensation.
Here, Koontz claims that the District demanded that he spend money to improve public wetlands, not that he hand over a real property interest. I assume for now that the District made that demand (although I think it did not, see infra, at 2609 - 2611.) The key question then is: Independent of the permitting process, does requiring a person to pay money to the government, or spend money on its behalf, constitute a taking requiring just compensation? Only if the answer is yes does the Nollan - Dolan test apply.
But we have already answered that question no.
Eastern Enterprises v. Apfel,
The majority tries to distinguish
Apfel
by asserting that the District's demand here was "closely analogous" (and "bears resemblance") to the seizure of a lien on property or an income stream from a parcel of land.
Ante,
at 2599, 2601. The majority thus seeks support from decisions like
Armstrong v. United States,
But the majority's citations succeed only in showing what this case is
not
. When the government dissolves a lien, or appropriates a determinate income stream from a piece of property-or, for that matter, seizes a particular "bank account or [the] accrued interest" on it-the government indeed takes a "specific" and "identified property interest."
Apfel,
524 U.S., at 540-541,
The majority thus falls back on the sole way the District's alleged demand related to a property interest: The demand arose out of the permitting process for Koontz's land. See
ante,
at 2599 - 2600. But under the analytic framework that
Nollan
and
Dolan
established, that connection alone is insufficient to trigger heightened scrutiny. As I have described, the heightened standard of
Nollan
and
Dolan
is not a freestanding protection for land-use permit applicants; rather, it is "a special application of the doctrine of unconstitutional conditions, which provides that the government may not require a person to give up a constitutional right-here the right to receive
*2607
just compensation when property is
*626
taken"-in exchange for a land-use permit.
Lingle,
The majority's approach, on top of its analytic flaws, threatens significant practical harm. By applying
Nollan
and
Dolan
to permit conditions requiring monetary payments-with no express limitation except as to taxes-the majority extends the Takings Clause, with its notoriously "difficult" and "perplexing" standards, into the very heart of local land-use regulation and service delivery. 524 U.S., at 541,
That problem becomes still worse because the majority's distinction between monetary "exactions" and taxes is so hard to apply.
Ante,
at 2600. The majority acknowledges, as it must, that taxes are not takings. See
Perhaps the Court means in the future to curb the intrusion into local affairs that its holding will accomplish; the Court claims, after all, that its opinion is intended to have only limited impact on localities' land-use authority. See
ante,
at 2595, 2602. The majority might, for example, approve the rule, adopted in several States, that
Nollan
and
Dolan
apply only to permitting fees that are imposed ad hoc, and not to fees that are generally applicable. See,
e.g.,
Ehrlich v. Culver City,
At bottom, the majority's analysis seems to grow out of a yen for a prophylactic rule: Unless
Nollan
and
Dolan
apply to monetary demands, the majority worries, "land-use permitting officials" could easily "evade the limitations" on exaction of real property interests that those decisions impose.
Ante,
at 2599. But that is a prophylaxis in search of a
*629
problem. No one has presented evidence that in the many States declining to apply heightened scrutiny to permitting fees, local officials routinely short-circuit
Nollan
and
Dolan
to extort the surrender of real property interests having no relation to a development's costs. See,
e.g.,
Krupp v. Breckenridge Sanitation Dist.,
II
I also would affirm the judgment below for two independent reasons, even assuming that a demand for money can trigger Nollan and Dolan . First, the District never demanded that Koontz give up anything (including money) as a condition for granting him a permit. 4 And second, because (as everyone agrees) no actual taking occurred, Koontz cannot claim just compensation even had the District made a demand. The majority nonetheless remands this case on the theory that Koontz might still be entitled to money damages. I cannot see how, and so would spare the Florida courts.
*631 A
Nollan
and
Dolan
apply only when the government makes a "demand[ ]" that a
*2610
landowner turn over property in exchange for a permit.
Lingle,
And unless Nollan and Dolan are to wreck land-use permitting throughout the country-to the detriment of both communities and property owners-that demand must be unequivocal. If a local government risked a lawsuit every time it made a suggestion to an applicant about how to meet permitting criteria, it would cease to do so; indeed, the government might desist altogether from communicating with applicants. That hazard is to some extent baked into Nollan and Dolan ; observers have wondered whether those decisions have inclined some local governments to deny permit applications outright, rather than negotiate agreements that could work to both sides' advantage. See W. Fischel, Regulatory Takings 346 (1995). But that danger would rise exponentially if something less than a clear condition-if each idea or proposal offered in the back-and-forth of reconciling diverse interests-triggered Nollan - Dolan scrutiny. At that point, no local government official with a decent lawyer would have a conversation with a developer.
*632 Hence the need to reserve Nollan and Dolan, as we always have, for reviewing only what an official demands, not all he says in negotiations.
With that as backdrop, consider how this case arose. To arrest the loss of the State's rapidly diminishing wetlands, Florida law prevents landowners from filling or draining any such property without two permits. See
ante,
at 2591 - 2592. Koontz's property qualifies as a wetland, and he therefore needed the permits to embark on development. His applications, however, failed the District's preliminary review: The District found that they did not preserve wetlands or protect fish and wildlife to the extent Florida law required. See App. Exh. 19-20, 47. At that point, the District could simply have denied the applications; had it done so, the
Penn Central
test-not
Nollan
and
Dolan
-would have governed any takings claim Koontz might have brought. See
Del Monte Dunes,
Rather than reject the applications, however, the District suggested to Koontz ways he could modify them to meet legal requirements. The District proposed reducing the development's size or modifying its design to lessen the impact on wetlands. See App. Exh. 87-88, 91-92. Alternatively, the District raised several options for "off-site mitigation" that Koontz could undertake in a nearby nature preserve, thus compensating for the loss of wetlands his project would cause. Id., at 90-91. The District never made any particular demand respecting an off-site project (or anything else); as Koontz testified at trial, that possibility was presented only in broad strokes, "[n]ot in any great detail." App. 103. And the District made clear that it welcomed additional proposals *2611 from Koontz to mitigate his project's damage to wetlands. See id., at 75. Even at the final hearing on his applications, the District asked Koontz if he would "be willing to go back with the staff over the next month and renegotiate this thing and try to come up with" a solution. Id., at 37. But Koontz refused, saying (through his lawyer) that *633 the proposal he submitted was "as good as it can get." Id., at 41. The District therefore denied the applications, consistent with its original view that they failed to satisfy Florida law.
In short, the District never made a demand or set a condition-not to cede an identifiable property interest, not to undertake a particular mitigation project, not even to write a check to the government. Instead, the District suggested to Koontz several non-exclusive ways to make his applications conform to state law. The District's only hard-and-fast requirement was that Koontz do something-anything-to satisfy the relevant permitting criteria. Koontz's failure to obtain the permits therefore did not result from his refusal to accede to an allegedly extortionate demand or condition; rather, it arose from the legal deficiencies of his applications, combined with his unwillingness to correct them by any means. Nollan and Dolan were never meant to address such a run-of-the-mill denial of a land-use permit. As applications of the unconstitutional conditions doctrine, those decisions require a condition; and here, there was none.
Indeed, this case well illustrates the danger of extending
Nollan
and
Dolan
beyond their proper compass. Consider the matter from the standpoint of the District's lawyer. The District, she learns, has found that Koontz's permit applications do not satisfy legal requirements. It can deny the permits on that basis; or it can suggest ways for Koontz to bring his applications into compliance. If every suggestion could become the subject of a lawsuit under
Nollan
and
Dolan,
the lawyer can give but one recommendation: Deny the permits, without giving Koontz any advice-even if he asks for guidance. As the Florida Supreme Court observed of this case: Were
Nollan
and
Dolan
to apply, the District would "opt to simply deny permits outright without discussion or negotiation rather than risk the crushing costs of litigation"; and property owners like Koontz then would "have no
*634
opportunity to amend their applications or discuss mitigation options."
B
And finally, a third difficulty: Even if (1) money counted as "specific and identified propert[y]" under Apfel (though it doesn't), and (2) the District made a demand for it (though it didn't), (3) Koontz never paid a cent, so the District took nothing from him. As I have explained, that third point does not prevent Koontz from suing to invalidate the purported demand as an unconstitutional condition. See supra, at 2603 - 2604. But it does mean, as the majority agrees, that Koontz is not entitled to just compensation under the Takings Clause. See ante, at 2597. He may obtain monetary relief under the Florida statute he invoked only if it authorizes damages beyond just compensation for a taking.
The majority remands that question to the Florida Supreme Court, and given how it disposes of the other issues here, I can understand why. As the majority indicates, a State could decide to create a damages remedy not only for a taking, but also for an unconstitutional conditions *2612 claim predicated on the Takings Clause. And that question is one of state law, which we usually do well to leave to state courts.
But as I look to the Florida statute here, I cannot help but see yet another reason why the Florida Supreme Court got this case right. That statute authorizes damages only for "an unreasonable exercise of the state's police power constituting a taking without just compensation."
III
Nollan and Dolan are important decisions, designed to curb governments from using their power over land-use permitting to extract for free what the Takings Clause would otherwise require them to pay for. But for no fewer than three independent reasons, this case does not present that problem. First and foremost, the government commits a taking only when it appropriates a specific property interest, not when it requires a person to pay or spend money. Here, the District never took or threatened such an interest; it tried to extract from Koontz solely a commitment to spend money to repair public wetlands. Second, Nollan and Dolan can operate only when the government makes a demand of the permit applicant; the decisions' prerequisite, in other words, is a condition. Here, the District never made such a demand: It informed Koontz that his applications did not meet legal requirements; it offered suggestions for bringing those applications into compliance; and it solicited further proposals from Koontz to achieve the same end. That is not the stuff of which an unconstitutional condition is made. And third, the Florida statute at issue here does not, in any event, offer a damages remedy for imposing such a condition. It provides relief only for a consummated taking, which did not occur here.
The majority's errors here are consequential. The majority turns a broad array of local land-use regulations into federal constitutional questions. It deprives state and local *636 governments of the flexibility they need to enhance their communities-to ensure environmentally sound and economically productive development. It places courts smack in the middle of the most everyday local government activity. As those consequences play out across the country, I believe the Court will rue today's decision. I respectfully dissent.
For ease of reference, this opinion refers to both men as "petitioner."
Thus, because the proposed offsite mitigation obligation in this case was tied to a particular parcel of land, this case does not implicate the question whether monetary exactions must be tied to a particular parcel of land in order to constitute a taking. That is so even when the demand is considered " outside the permitting process." Post, at 2607 (KAGAN, J., dissenting). The unconstitutional conditions analysis requires us to set aside petitioner's permit application, not his ownership of a particular parcel of real property.
Citing cases in which state courts have treated similar governmental demands for money differently, the dissent predicts that courts will "struggle to draw a coherent boundary" between taxes and excessive demands for money that violate Nollan and Dolan . Post, at 2608. But the cases the dissent cites illustrate how the frequent need to decide whether a particular demand for money qualifies as a tax under state law, and the resulting state statutes and judicial precedents on point, greatly reduce the practical difficulty of resolving the same issue in federal constitutional cases like this one.
The majority's sole response is that "the unconstitutional conditions analysis requires us to set aside petitioner's permit application, not his ownership of a particular parcel of real property." Ante, at 2600, n. 1. That mysterious sentence fails to make the majority's opinion cohere with the unconstitutional conditions doctrine, as anyone has ever known it. That doctrine applies only if imposing a condition directly- i.e., independent of an exchange for a government benefit-would violate the Constitution. Here, Apfel makes clear that the District's condition would not do so: The government may (separate and apart from permitting) require a person-whether Koontz or anyone else-to pay or spend money without effecting a taking. The majority offers no theory to the contrary: It does not explain, as it must, why the District's condition was "unconstitutional."
The majority argues that existing state-court precedent will "greatly reduce the practical difficulty" of developing a uniform standard for distinguishing taxes from monetary exactions in federal constitutional cases. Ante, at 2602, n. 2. But how are those decisions to perform that feat if they themselves are all over the map?
Our
Penn Central
test protects against regulations that unduly burden an owner's use of his property: Unlike the
Nollan
-
Dolan
standard, that framework fits to a T a complaint (like Koontz's) that a permitting condition makes it inordinately expensive to develop land. And the Due Process Clause provides an additional backstop against excessive permitting fees by preventing a government from conditioning a land-use permit on a monetary requirement that is "basically arbitrary."
Eastern Enterprises v. Apfel,
The Court declines to consider whether the District demanded anything from Koontz because the Florida Supreme Court did not reach the issue. See ante, at 2597. But because the District raised this issue in its brief opposing certiorari, Brief in Opposition 14-18, both parties briefed and argued it on the merits, see Brief for Respondent 37-43; Reply Brief 7-8, Tr. of Oral Arg. 7-12, 27-28, 52-53, and it provides yet another ground to affirm the judgment below, I address the question.
Reference
- Full Case Name
- Coy A. KOONTZ, Jr., Petitioner v. ST. JOHNS RIVER WATER MANAGEMENT DISTRICT.
- Cited By
- 367 cases
- Status
- Published