Federal court shuts down city’s attempt to make Oregon family business pay for road
November 13, 2025
Medford, Oregon; November 13, 2025: The Ninth Circuit Court just turned back a local government’s attempt to force a family business to foot the bill for a public infrastructure project. KOGAP Enterprises, Inc. sued the City of Medford in 2022 after the City refused to approve a minor revision to KOGAP’s previously approved development unless the business paid $700,000 for a public road and bridge to serve future developments.
“The government cannot use the permit process to pressure private businesses or individuals to subsidize public infrastructure,” said Brian Hodges, attorney with Pacific Legal Foundation, which represented KOGAP at no cost. “The Supreme Court has repeatedly held that it is unconstitutional to single out property owners to shoulder massive costs for the public. We are thrilled that the court applied that precedent today in defense of Oregonians’ property rights.”
Family-owned KOGAP Enterprises spent 20 years transforming its old sawmill operation into Stewart Meadows Village, a 100+ acre mixed use development. During this time, KOGAP built miles of streets, recreational trails, and several bridges. But the City’s latest demand that KOGAP fund a massive building project to benefit future developers was a road too far.
Despite warnings from the City’s own attorneys that this was an “unlawful exaction,” the City proceeded with its demands. KOGAP challenged the exaction in court and, after losing in district court, filed a federal appeal to defend Oregon property owners’ constitutional rights.
On November 13, 2025, the Ninth Circuit Court of Appeals reversed the district court’s prior decision and ruled in KOGAP’s favor. The court’s opinion states that:
[T]he record does not contain a basis upon which the district court could have held that the City demonstrated rough proportionality between the project’s expected impacts and the exaction imposed. …
We reverse the district court’s orders granting summary judgment to the City and direct entry of summary judgment for KOGAP on remand.
The case is KOGAP Enterprises, Inc. v. City of Medford.
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Pacific Legal Foundation is a national nonprofit law firm that defends Americans threatened by government overreach and abuse. Since our founding in 1973, we challenge the government when it violates individual liberty and constitutional rights. With active cases in 34 states plus Washington, D.C., PLF represents clients in state and federal courts, with 18 wins of 20 cases litigated at the U.S. Supreme Court.