A local government may an exaction to require concessions from developers, such as the construction of sidewalks on land that will be developed. The exaction must further a legitimate public interest.
An exaction is a type of tax that requires developers to contribute land, facilities, or funding for certain types of public facilities that may serve more than the developer's project or be located off site. Recent Supreme Court decisions (Dolan v. Tigard, Nollan v. California Coastal Commission) have made many municipalities reluctant to impose exactions, for fear of being sued under the 14th Amendment "takings" clause. There must be an appropriate connection between the requirement for the exaction and the cited public objective for the exaction.
a condition imposed on the issuance of a development approval that requires the developer to dedicate land to the public, to allow the public access to his private land, or to pay a fee in lieu of such requirements