American Institute of Certified Planners (AICP) Practice Exam

What principle emerged from the ruling in Dolan v. Tigard regarding development exactions?

1. The need for a rational nexus between exactions and development

2. All exactions are considered unconstitutional

3. Exactions can be arbitrary if justified

4. Economic impact is irrelevant to development conditions

The correct answer is: The need for a rational nexus between exactions and development

The principle that emerged from the ruling in Dolan v. Tigard is the necessity for a rational nexus between exactions and the impacts of the proposed development. This landmark case established that when a local government imposes requirements on developers—such as dedications of land or payment of fees as a condition for obtaining a permit—there must be a clear, logical connection between the exactions and the projected impact of the development on the community. The Supreme Court ruled that a mere desire to generate funds for public use does not justify exactions. Instead, it emphasized that these requirements must serve the same purpose as the proposed development, aiming to address the specific impacts it creates. This ruling is vital for planners as it ensures that any conditions imposed are fair and proportionate, preventing arbitrary decision-making by local authorities. By reinforcing the rational nexus requirement, the decision helps to maintain a balance between development and public interests, ensuring that development projects contribute positively to the community while also protecting property rights.