The case started in Bellingham where the town allowed a power plant to be built after the developer promised to give $8 million for a new high school. The Land Court ruled that the rezoning in that case was invalidated because the construction of the high school had nothing to do with the impact the power plant would have on the town. A representative from the state appeals court tells GlobeSt.com that the case was brought there on appeal and cross-appeal. But rather than have the case appealed, the Supreme Judicial Court had the case transferred to its court.

"The whole thing is based on the fact of defining contract development," David Begelfer, CEO of the National Office of Industrial and Office Properties tells GlobeSt.com. He points out that the case turns on whether a developer can give anything to a town or city beyond remediating the impact of development. As Begelfer notes, the case has implications for the city's linkage payment program in which developers of large projects fund housing and job training programs. "There is a question if these are attributable to projects," he says.

While the original decision from the Land Court does protect a developer from being forced to provide a payment in order to get his or her project rezoned, Begelfer says that his organization is concerned that the decision's implications could ultimately hurt developers. Firstly, he notes that the way the decision was originally written, it can be applied retroactively, meaning that the rezoning of buildings already built can be questioned. Also, Begelfer says that communities will still ask for payments and if developers pay their projects could be at risk and if they don't they probably won't get those projects built.

"Someone down the road could say it's not appropriate," says Begelfer.

Tom Meagher, of Northeast Apartment Advisors, tells GlobeSt.com that the way things stand in the state now, "If you don't play ball, you won't get your permits." If the court upholds the Land Court ruling, towns, he says, "won't be able to ask for special favors. But, if developers don't give anything, their rezoning might not get passed."

But Begelfer is not concerned. His group filed an amicus brief with the court and he adds, "We think the case will be struck down."