City That Failed to Make Required Findings in Five-Year Report Was Properly Ordered to Refund Unspent Development Impact Fees

In Walker v. City of San Clemente, published August 28, 2015, the Fourth District Court of Appeal, Division 3 affirmed a trial court's order to the defendant city to refund to developers $10.5 million in development impact funds that the city collected but did not spend for the intended purpose of creating more beach parking.  The city began collecting the fee when the development was first planned.  Subsequently, beach parking proved adequate, and the city's only action toward increasing beach parking was purchasing a vacant lot that it did not turn into a parking lot.  Government Code section 66001, part of the Mitigation Fee Act, requires a municipality that collects a development impact fee but does not expend all of it to make a report every five years setting forth findings that provide reasons to retain the money.  The city made the report, but the court concluded that the report did not set forth findings justifying retaining the money.  Refund was the proper statutory remedy.