Facts of the Case

Florence Dolan wanted a permit from the City of Tigard to expand her store and pave her parking lot. The city agreed to grant her permit on the condition that she dedicate part of her land for (1) a greenway along a nearby creek to help alleviate runoff from the pavement, and (2) a pedestrian/bicycle path to relieve traffic congestion from the city's growing business district.

Question

Did the city's conditions for the permit violate the 5th Amendment's "takings" clause as absorbed by the 14th Amendment's due process clause?

Conclusion

Yes. The Court ruled that the city did not present conclusive evidence that the walkway/bicycle path would reduce traffic congestion, and so could not require Dolan to give up her property as a condition of the permit. In addition, the city did not explain why a public greenway was necessary, as opposed to a private one. There must be an "essential nexus" between a legitimate state interest and the permit requirements (Nollan v. California Coastal Commission), and the city failed to demonstrate that the benefits would justify the requirements.