River Walk Apartments, LLC v. Twigg, 396 Md. 527

Summary

The Maryland Court of Appeals considered whether two City of Frederick agreements authorizing a special assessment and waiving impact fees were enforceable without legislative approval by ordinance. The court held that the agreements were not legislatively authorized and therefore were unenforceable, reversing the judgment requiring the City to issue shell construction permits.

Holdings

1. A municipality's impact fees, which constitute taxes or revenue-raising charges, may be created or waived only by legislative act. The City of Frederick's mayors therefore lacked authority to create the contractual special assessment and waive the City's impact fees without authorization by ordinance.
2. The November Agreement and Deferral Agreement were ultra vires and unenforceable because the mayors lacked authority to create the special fee and waive impact fees.
3. Summary judgment requiring the City to issue the shell construction permits without additional impact fees was improper because the agreements were ultra vires and unenforceable.

Questions Presented

1. Whether the City's mayors had authority to create a special assessment fee and waive legislatively imposed impact fees through contracts without legislative authorization by ordinance.
2. Whether the City's general authority to acquire rights-of-way and enter contracts for public projects made the November Agreement and Deferral Agreement enforceable.
3. Whether the circuit court properly granted summary judgment requiring the City to issue permits without additional impact fees.

Disposition

affirmed