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<br /> <br /> <br /> <br /> <br /> <br /> Steven S.C. Lim <br /> March 25, 2008 <br /> Page 3 <br /> <br /> 3. Whether the taking is physical or if "the interference arises from some public <br /> program adjusting the benefits and burdens of economic life to promote the <br /> common good." <br /> <br /> Penn Central, 438 U.S. at 124. <br /> <br /> Adjusting the benefits and the burdens - the relevant part of the third <br /> criteria - is probably of little importance after Lucas given the Court's language there <br /> excoriating regulation which merely confers a public good and for which the Court <br /> clearly states the public as a whole should pay rather than a single landowner. From some <br /> of the language which the Planning Director uses, and given some of the material he <br /> cites, one is left with the impression that this sort of "public good" is what he would <br /> prefer to accomplish if he could. That leaves the economic effect on the landowner and <br /> the character of the government's action as the primary focus of a partial regulatory <br /> taking case. <br /> <br /> In the present situation, it is difficult to avoid concluding that Kohala LLC <br /> had distinct investment-backed expectations to build at least 50 homes on 50 lots, as <br /> approved by the Planning Commission under the aforementioned SMAP. In other words, <br /> the economic effect on the landowner is substantial, and its distinct - indeed, quite <br /> reasonable under the circumstances - investment-backed expectations would be dashed <br /> should the County downzone the parcel as recommended by the Planning Director. <br /> Certainly the Court has used the investment-backed expectation standard <br /> in conjunction with the other Penn Central standards, thus holding in Hodel v. Irvin. 481 <br /> U.S. 704 (1987) that the 1983 Indian Land Consolidation Act took property without <br /> compensation even though the plaintiff had no investment-backed expectations <br /> whatsoever, because the Court deemed the economic impact on the plaintiff otherwise <br /> "substantial" and the character of the governmental action "extraordinary." Hodel. 481 <br /> U.S. at 709. <br /> <br /> The "character of the government action" standard has "morphed" into <br /> something different from the Court's original meaning in Penn Central. As the Hodel <br /> case cited in the preceding subsection indicates, it no longer means whether the taking <br /> was physical or regulatory (what the Court arguably meant in Penn Central) but rather the <br /> police power basis for the governmental action. Thus, the "extraordinary" nature of the <br /> governmental action in Hodel helped persuade the Court that a partial regulatory taking <br /> had occurred. So also a court in Maine emphasized the importance of the character of the <br /> governmental police power action in preserving sand dunes (citing Penn Central) in <br /> Fichter ex rel v. State Board of Environmental Protection, 2000 WL 33676710 <br /> (Me.Super.). <br /> In the present case, all the reasons posited by the Planning Director in <br /> favor of the downzoning of the subject parcel are related to the general welfare, rather <br />