A government requirement that property developers provide public benefits, such as land dedication or fees, as a condition for development approval. Exactions must have an essential nexus to the development's impact and be roughly proportional to that impact.
From Latin 'exigere' (to drive out, demand). Originally meant any harsh demand or tribute. In modern land use law, the term specifically refers to conditions imposed on development permits, evolving as cities sought ways to finance infrastructure without raising taxes.
Exactions let cities say 'if you're going to build that shopping mall and create traffic, you need to help pay for the road improvements'—but the Supreme Court has set limits to prevent governments from essentially extorting developers. The Nollan and Dolan cases established that exactions must be related to the development's actual impact and proportional in scope. This doctrine protects developers from being forced to solve unrelated community problems as the price of a building permit.
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