Hamilton and High, LLC v. City of Palo Alto
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In 1985, Palo Alto established the Commercial Downtown zoning district with parking regulations that allowed for “payment of an in-lieu monetary contribution to the city to defray the cost” of new, off-site parking spaces for “sites which would otherwise be precluded from development due to parking constraints.” In 1995, the city recognized the need to further mitigate insufficient downtown parking facilities and established an in-lieu parking fee for new, nonresidential development in the “University Avenue parking assessment district.” City staff has periodically submitted “five-year findings” on the parking fund, consistent with the Mitigation Fee Act (Gov. Code, 66000).
The plaintiffs, developers who paid the fees as a condition of approval of a building project, sued, seeking a refund of their unexpended fees. The city argued that the fee was not subject to the Mitigation Fee Act; that the five-year finding and refund provisions did not apply; that, even if the Act did apply, the claim was barred by the statute of limitations; and that it complied with the Act’s requirements by belatedly adopting five-year findings.
The court of appeal reversed the trial court, ordering a refund of the plaintiffs’ unexpended fees. The fee is subject to the Act, and the action is not time-barred. The failure to timely make five-year findings triggered the refund provision. Section 65010(b), does not require that plaintiffs make an independent showing of prejudice for a violation of section 66001(d)
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