Developer Dilemma.

As a condition of a city giving approval for a developer to build 96 condominiums on a parcel of land, the city required the developer to set aside 10 condo units at below the market rate and make a substantial contribution to a city fund. The developer proceeded with construction but challenged the city’s requirements pursuant to Government Code section 66020(a), protesting “the imposition of any fees, dedications, or other extractions imposed on a development project,” as permitted under the statute. The city contended the developer’s action was not timely filed, contending section 66020(a) did not apply because the city did not impose any fees, dedications or other extractions. While the California Supreme Court agreed the city did not impose fees, it held the city did impose “other extractions” and remanded the matter for further proceedings. (Sterling Park, L.P. v. City of Palo Alto (Cal. Sup. Ct.;  October 17, 2013) 57 Cal.4th 1193.