Ever wondered what happens when the government wants a piece of your property for a new road or sidewalk? The answer isn’t always simple. The Dolan case changed the rules on what the government can demand from property owners, setting a standard called “rough proportionality.” In this post, you’ll learn what the Dolan case is, why it matters for anyone facing eminent domain, and how it might affect you.

What Was the Dolan Case?

The Dolan case refers to a 1994 Supreme Court decision, Dolan v. City of Tigard. In this case, a business owner wanted to expand her store and parking lot. The city approved the expansion but only if she agreed to give up part of her land for a public greenway and bike path. She challenged this, arguing the city’s demand was too much. The Supreme Court agreed with her, setting a new rule for how governments can require property owners to give up land or money as a condition for development.

The Dolan case is important because it set the foundation for what’s known as the “rough proportionality” test. This test helps decide if what the government asks for is fair compared to the impact of the development.

Understanding Rough Proportionality

Rough proportionality means that when a city or government wants something from a property owner, like land for a sidewalk or money for infrastructure, the demand must match the impact of the proposed development. It’s not enough for the government to just want the improvement. There must be a clear connection between what’s being asked and the specific effects of the project.

For example, if you want to build a small addition to your house, the city can’t make you give up half your backyard for a public park. Their request has to be roughly proportional to the impact your addition would have on the community, like increased traffic or drainage.

How the Dolan Test Works

The Dolan test is a two-step process that courts use to decide if a government’s condition is fair in a dedication condition case. Here’s how it breaks down:

  1. There must be a connection (called “nexus”) between the government’s demand and the public issue caused by the new development.
  2. The amount or type of demand must be roughly proportional to the actual impact of the project.

So, if your new building will bring in more cars, the city might ask you to pay for a traffic light. But if you’re only adding a garden shed and the city wants a new road, that probably fails the Dolan test.

Why Dolan Matters for Property Owners

If you’re facing eminent domain or dealing with city requirements for your property, knowing about the Dolan case helps you protect your rights. Many people don’t realize the government’s power isn’t unlimited. The city can’t take more than what’s reasonable for the project’s impact. This standard gives you a way to push back if you think the demands are too high.

It also means you can ask for a clear explanation. If the government wants your land or money, they need to show real evidence that their request matches the effects your project will have. If they can’t, you may have a strong argument to negotiate or challenge their decision.

Common Examples: Real Life Situations

Let’s look at some simple examples where rough proportionality comes into play:

  1. A restaurant wants to add more seating. The city asks for a small contribution to improve nearby sidewalks because of expected foot traffic.
  2. A homeowner wants to split their lot to build a second house. The city requires a new water line but not a whole new sewer system for the neighborhood.
  3. A business expands its parking lot. The city asks for land to widen the street just enough for the extra cars, not for a whole new intersection.

These examples show that the government can ask for something, but it must be tied to the actual changes your project brings.

What To Do If You Face a Proportionality Exaction

If you’re in a situation where the city is asking for a dedication or payment as a condition for your project, start by asking for written proof of the connection between your project and their request. See if their demand really fits the scale of your development. If it seems excessive, you have the right to challenge it.

Working with a lawyer who understands the Dolan case and proportionality exaction case law can help. They’ll know what questions to ask and what evidence to request. This can make a real difference in how much you’re asked to give up, and in making sure your rights are protected.

Conclusion

The Dolan case put limits on what governments can demand from property owners. If you’re dealing with a potential exaction, remember that the request must be roughly proportional to your project’s impact. Understanding your rights is the first step to protecting your property. Contact us to learn more.