Municipal Infrastructure Funding: Overcoming Legal Challenges with Exactions and Impact Fees

Navigating New Application of Essential Nexus and Rational Relationship Standards, State Law, and Types of Exactions

Recording of a 90-minute CLE webinar with Q&A

Conducted on Thursday, July 24, 2014

Recorded event now available

or call 1-800-926-7926
Course Materials

This CLE course will provide guidance to municipal counsel on the latest developments in the use of exactions and impact fees to fund infrastructure. Attendees will benefit from an analysis of the impact of the Koontz decision, how the legal standards now apply to monetary exactions and more.


Exactions and impact fees are valuable and useful development tools for local governments. However, governments must take great care in establishing and implementing exactions to avoid legal pitfalls.

Exactions must be established and implemented according to very specific standards set by federal and state law. Additionally, after 25 years of unchanged law, last year the Supreme Court in Koontz established that monetary exactions are now subject to nexus and rough proportionality requirements. As a result, counsel for municipalities must be prepared to handle increased challenges and allegations of coercive exactions or unreasonable impact fees.

Listen as our distinguished panel discusses what constitutes an exaction, the impact of the Koontz decision, and its application to monetary exactions and variances in state law. The panel will also discuss best practices that local governments can implement in pursuing exactions for the benefit of local development.



  1. Types of exactions
  2. Supreme Court doctrine
    1. Nollan, Dolan and Koontz
  3. Applicability of legal standards
    1. Essential nexus
    2. Rational relationship
    3. Legislative exception
  4. State law issues
  5. Best practices


The panel will review these and other key questions:

  • What types of burdens or requirements placed on a developer constitute an exaction or impact fee?
  • What are the legal standards with which municipalities must comply in planning and implementing exactions?
  • How does the Supreme Court’s decision in Koontz change the landscape of exactions? How must municipalities deal with the new challenges developers will now be able to use?
  • How must state law be considered in implementing exactions?


Killen, Rob
Rob Killen

Kaufman & Killen

Mr. Killen specializes in development rights, creation of special districts, annexation, zoning and governmental...  |  Read More

Deborah Rosenthal
Deborah Rosenthal

Sheppard Mullin

Ms. Rosenthal devotes her practice to land use and environmental law and litigation. She works extensively with...  |  Read More

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