
A land developer represented by James Scarbrough and a former law partner argued to the North Carolina Supreme Court that Cabarrus County did not have statutory authority to require “voluntary mitigation payments” from developers for public facilities. The Supreme Court agreed, finding that the fees were coercive, establishing an unlawful “pay-to-build system for developers.” 366 N.C. at 161. The Supreme Court further explained that “[i]n practice, the [Board of Commissioners] has leveraged this dynamic to generate substantial revenues for the County, which once again, demonstrates the precise harm that [the ordinance] may inflict on unpopular groups. Such government action should not be permitted without specific enabling legislation enacted by the General Assembly.” Id. at 167.