LFAP successfully assisted the City of San Marcos in its enforcement of an agreement for payment of fair share street improvement costs and Public Facilities Fees imposed in connection with land use entitlements. The agreement had been modified twice to provide additional time for the property owner to perform. After the owners defaulted on an Amended Agreement for payment of the fees, the City initiated its enforcement efforts. Defendants claimed that the fees were not due because they had been unsuccessful in developing the project, despite the fact that the agreement had been structured to provide for phased payment of the fees. Defendants also included a claim that the fees violated the Mitigation Fee Act. After the trial court found that the Amended Agreement was valid and ordered payment, Defendants appealed. The Fourth District Court of Appeal agreed that the City could lawfully enter into and enforce an agreement to phase payment of fees associated with land use entitlements. The California State Supreme Court denied review. The Opinion supports municipalities that wish to securitize fees agreed upon by the parties and to enforce upon default.
The full opinion can be found at this link. http://www.courts.ca.gov/opinions/nonpub/D062628.PDF