Trimen Development Co. v. King CountyTrimen Development Co. v. King County
- Reporters:
- , , ,
- Before:
- Guy
Lead Opinion
Pеtitioner Trimen Development Company seeks review of a Court of Appeals decision affirming a summary judgment in favor of King County. Trimen seeks a refund of the park development fees it paid pursuant to King County Code (KCC) 19.38. Trimen claims that KCC 19.38, which conditions subdivision plat approval upon the dedication or reservation of land for open space or upon the payment of a fee in lieu of such dedication or reservation, is an invalid "tax” in violation of former
Background
In 1981, pursuant to former
The King County ordinance provides in part:
Every Subdivision final approval . . . shall be contingent upon reservation or dedication of land for the open space and recreational needs of its residents or payment of a fee-in-lieu thereof. The developer may either reserve or dedicate land, or make payment of a fee-in-lieu thereof pursuant to this chapter.
(Italics ours.) Clerk’s Papers, at 71 (KCC 19.38.020). If the developer chooses to dedicate or reserve land, the dedication must be within the subdivision’s "park service area”. KCC 19.38 defines the "park service area” as an area roughly approximate to elementary school boundaries, within which reservation or dedication of land and fees are received and used for the benefit of residents within that area. The amount of land to be reserved or dedicated is determined by a formula which considers the grоss land area of the proposed subdivision and the zone of the area. The County’s review of the documents for Trimen’s subdivisions indicated that there was sufficient flat, dry, and obstacle-free space available for onsite dedication.
The developer may instead pay a fee in lieu of dedication or reservation:
Unless land within a proposed subdivision is dedicated or reserved . . . final approval of the subdivision shall be contingent upon payment of a park development fee from the dеveloper to King County.
Clerk’s Papers, at 73 (KCC 19.38.070). The fee is calculated based on the assessed value of the equivalent amount of land that would have been reserved or dedicated. KCC 19.38.080. The collected fee must be appropriated only for the acquisition and development of open space, park sites, and recreational facilities within the park service area where the proposed subdivision is located. KCC 19.38.070. The collected fee must be allocated to a pаrticular project within 3 years of fee acceptance. KCC 19.38.070.
Trimen owns two parcels of land in northeast King County. In February 1987 and March 1988, Trimen submitted applications for subdivision approval for two developments known as Winchester Hills I and II, respectively. In Winchester Hills I, Trimen proposed to subdivide 21 acres into 77 lots for detached family homes. In Winchester Hills II, Trimen proposed to divide 22 acres into 41 lots.
Trimen submitted applications to the King County Building and Land Development Division (BALD) for preliminary approval of thе Winchester Hills I and II subdivisions. BALD is the agency responsible for reviewing and processing preliminary plat applications. BALD reviews each application and subsequently makes a report and recommendation to the King County zoning and subdivision examiner, who in turn holds a public hearing on the plat application and makes a recommendation to the King County Council. The King County Council makes the final decision on whether to approve, approve with conditions, or deny a preliminary plat application.
Once an applicant obtains preliminary approval, the applicant can proceed to final approval of the plat. During this stage, BALD reviews the plat for compliance with the conditions for preliminary approval, including whether the applicant has decided to provide open space by dedication or reservation, or to pay a fee in lieu of such dedication or reservation pursuant to ordinance 5596 (KCC 19.38). Once the conditions are satisfiеd and final approvals are obtained, the final plat can be recorded. The Council takes final action by ordinance.
King County approved Trimen’s preliminary plat of Winchester Hills I on the condition that Trimen
comply with KCC 19.38 regarding the provision of common open space with the subdivision or payment of a fee-in-lieu of open space dedication. If open space is provided an open space plan must be submitted for review and approval by BALD.
Clerk’s Papers, at 166. Trimen did nоt object to or appeal this condition. Based on the ordinance, Winchester Hills I
In March 1988, Trimen submitted its application for preliminary approval of the Winchester Hills II plat. At the time when the Winchester Hills II plat was being processed by BALD, applicants were required to show the open space to be dedicated or reserved pursuant to KCC 19.38 on the face of the plans. Based on the ordinance, Winchester Hills II required a dedication or reservation of approximately 1.016 acres, or three to six lots within that subdivision. Because Trimen did not show any open space on the submitted plans, BALD assumed that Trimen had elected tо pay a fee in lieu of dedication. Consequently, when the County approved Trimen’s preliminary plan for Winchester Hills II, it did so on the condition that Trimen "comply with K.C.C. 19.38 by paying a fee to the Parks Division in-lieu-of providing onsite open space.” Clerk’s Papers, at 101. Although BALD had assumed that Trimen had elected to pay the fee in lieu of open space and had recommended payment as a condition of plat approval, the record indicates that Trimen could have changed its mind and elected to dedicate open space at any time prior to final plat approval. Instead, Trimen elected to pay the fee in lieu of dedicating open space. Again, at Trimen’s request, the fee was reduced. Trimen paid the $34,979.38 fee without protest and was granted final approval of the plat. The plat was recorded in March 1990.
Issue
The central issue before us is whether King County lawfully imposed park development fees under former
Analysis
KCC 19.38
Trimen challenges the legality of KCC 19.38, arguing that the ordinance conditions the approval of a plat on the pay
KCC 19.38 permits no more than
Contrary to Trimen’s premise, the condition KCC 19.38 imposes upon plat approval is satisfaction of the ordinance — which requires either dedication of land or payment of a fee in lieu of dedication — not merely payment of a fee. KCC 19.38.020.
Moreover, the ordinance on its face is not a "tax”. We have previously stated that " 'if the primary purpose of the legislation is regulation rather than raising revenue, the legislation cannot be classified as a tax even if a burden or charge is imposed.’ ” Hillis Homes, Inc. v. Snohomish Cy.,
Trimen also contends that King Countys ordinance, as applied by the County, is invalid under
We interpret
Under
Payment of Fee Was Voluntary
Trimen claims that it paid the fees under duress. The Court of Appeals recently stated that within the context of
the word "voluntary” means precisely that the developer has the choice of either (1) paying for those reasonably necessary costs which are directly attributable to the developer’s project or (2) losing preliminary рlat approval. The fact that the developer’s choices may not be between perfect options does not render the agreement "involuntary” under the statute.
(Italics ours.) Cobb v. Snohomish Cy.,
Although there may be some debate as to whether a decision between paying a fee or forgoing plat approval is "voluntary”, such a decision was not before Trimen. In Cobb, Judge Agid declared that in order to be voluntary, "an agreement must at least present the parties with a viable choice.” Cobb, at 464 (Agid, J., concurring in part, dissеnting in part). King County presented Trimen with a viable choice — dedicate or reserve land for open space, or pay a fee in lieu of dedication. Trimen negotiated a reduced fee in lieu of dedication for both developments. King County accepted the reduced fees and Trimen paid the fees without protest. Given the record before us, we conclude that Trimen voluntarily paid the fee in lieu of dedication or reservation of land.
Agreement To Fund a Capital Improvement
Trimen next argues that KCC 19.38 violates
The fee so collected shall be appropriated only for acquisition and development of open space, park sites and recreational facilities within the park service area wherein the proposed subdivision is located. Such acquisition and development shall be consistent with any applicable Community Plan.
Clerk’s Papers, at 73.
While there is no explicit provision in KCC 19.38 to form an agreement between the parties to fund a particular capital improvement, KCC 19.38 does require that the acquisition and development of open space and recreational
Contrary to Bothell’s practice of using the collected fees to pay for park-related costs throughout the city in a manner totally unrelated to the plat upon which they were imposed, King County requires that such fees be used within the park service arеa. KCC 19.38.070.
Fees Imposed as a Direct Result of Development
Trimen next claims that King County violated
No county . . . shall require any payment as part of such a voluntary agreement which the county, city, town, or other municipal corporation cannot establish is reasonably necessary as a direct result of the proposed development or plat.
King County conducted a comprehensive assessment of park needs in a 1985 report titled Interim Assessment of King County Park Needs. The report indicated that there was a deficit of approximately 107 park acres in the North-shore area serving the Winchester Hills I and II subdivisions. Based on adopted county standards, the report stated that over 300 acres of additional park land will be required in this area by the year 2000 to provide for the projected increase in population. Trimen’s proposed subdivisions, with an expected occupancy average of three people per each of 112 potential residential units, created a need for an additional 2.52 acres of park land. The dedication or reservation of open space requirement of KCC 19.38, calculated at a reduced, negotiated figure of 5 percent, would have resulted in 2.096 acres of park and open space land. We conclude therefore that the fees imposed in lieu of dedication were reasonably necessary as a direct result of Trimen’s proposed development. See Dolan v. Tigard,
In Henderson Homes, Judge Agid cited Bothell’s straight fee-per-lot charge as evidence that Bothell’s assessment of park impact mitigation fees was made without any evaluation of the direct impact of the developments. Henderson Homes,
We hold that King County’s imposition of the park development fees was not unlawful under
We hold, therefore, that KCC 19.38 is lawful under
In Henderson Homes, we concluded a 3-year statute of limitations governs a developer’s challenge to the legality of a voluntary agreement to pay impact mitigation fees under
This court has consistently held that the 3-year statute оf limitations,RCW 4.16.080(3) , applies to actions to recover invalid taxes. The same principle applies to fees or charges, direct or indirect, on the subdivision of land when they do not comply withRCW 82.02.020.
Henderson Homes, 124 Wn.2d at 248. This statute of limitations applies to a plaintiffs allegations that imposition of impact mitigation fees constitutes an illegal tax, regardless of a claim’s ultimate merits. However, by characterizing a plaintiffs suit as one for recovery of an illegal tax, we do not suggest impact mitigation fees are taxes. Whеn assessed correctly, as King County did here, impact mitigation fees are an appropriate alternative to requiring a developer to dedicate land for open spaces.
Estoppel
The Court of Appeals held that Trimen’s claims were also barred by estoppel, ruling that requiring the County to refund the fees now would "inequitably grant a benefit to Trimen at the expense of the County.” Trimen,
Conclusion
We reject Trimen’s claim that KCC 19.38 is invalid on its face or as applied. We hold that King County’s park development fees were lawfully imposed as a condition of plat approval. We affirm the judgment of the Court of Appeals.
Andersen, C.J., and Utter, Brachtenbach, Durham, Smith, and Johnson, JJ., concur.
Notes
Former
"The city, town, or county legislative body shall inquire into the public use and interest proposed to be served by the establishment of the subdivision and dedication. It shall determine if appropriate provisions are made for, but not limited to, the public health, safety, and general welfare, for open spaces, drainage ways, streets, alleys, other public ways . . . parks, playgrounds, sites for schools and schoolgrounds . . . Dedication of land to any public body, may be required as a condition of subdivision approval and shall be clearly shown on the final plat.” Laws of 1974,1st Ex. Sess., ch. 134, § 5. Our citations toRCW 58.17.110 throughout this opinion refer to the statute'in efiect at all times relevant to the action before us.
As amended in 1990,
"Dedication of land tо any public body, provision of public improvements to serve the subdivision, and/or impact fees imposed under [RCW 82.02.050 throughRCW 82.02.090 ] may be required as a condition of subdivision approval. ... No dedication, provision of public improvements, or impact fees imposed under [RCW 82.02.050 throughRCW 82.02.090 ] shall be allowed that constitutes an unconstitutional taking of private property.” Laws of 1990,1st Ex. Sess., ch. 17, § 52. Since the actions forming the basis of this lawsuit occurred before 1990, the amended provisions do not apply.
See KCC 19.38.010(A)(3). King County Ordinance 5596 was codified as King County Codе (KCC) 19.38.
The Court of Appeals did not reach the merits of Trimen’s claim. The court instead upheld the trial court’s judgment based on the affirmative defenses raised in King County’s answer. Trimen Dev. Co. v. King Cy.,
The 1982 version of
Under the version of
(1) The payment shall be held in a reserve account and may only be expended to fund a capital improvement agreed upon by the parties to mitigate the identified, direct impact;
(2) The payment shall be expended in all cases within five years of collection; and
(3) Any payment not so expended shall be refunded with interest at the rate applied to judgments to the property owners of record at the time of the refund
No county, city, town, or other municipal corporation shall require any payment as part of such a voluntary agreement which the county, city, town, or other municipal corporation cannot establish is reasonably necessary as a direct result of the proposed development or plat.
Concurrence Opinion
(concurring) — I would affirm the Court of Appeals on the grounds that the 30-day statute of limitations applicable to platting decisions applies to bar the developer’s challenge to the King County ordinance at issue as discussed in my dissenting opinion in Henderson Homes, Inc. v. Bothell,