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New York Impact Fees: Unconstitutional?
A developer challenging two fees imposed by a town as part of the price of obtaining subdivision approval claimed in its suit that the Town of Monroe's Local Law 3 was unconstitutional. The developer's claim was rejected by the Second Department in Twin Lakes Development Corp. v. Town of Monroe (see page 3). Although the court's conclusion was not surprising in light of past judicial treatment of impact fees, the case presents the opportunity for a reconsideration of New York's treatment of such fees.
The Twin Lakes Case
The Twin Lakes Development Corp., which sought to subdivide a parcel into 22 residential lots in Monroe, challenged the town's Local Law 3, which required a subdivision applicant to pay a fee of $1500 per lot in lieu of a dedication of parkland on its property. (The developer also challenged a second local law which required a subdivision applicant to pay consultant fees incurred by the town Planning Board in reviewing the subdivision application; this article does not directly address that fee). The developer contended that Local Law 3 was unconstitutional. In addition, Local Law 3 raised significant statutory issues.
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