A residential real estate developer applied to a local agency to rezone his parcel for residential development. The developer’s zoning application was approved and the developer began construction. The local agency then imposed a density restriction on all newly-developed land to limit urban sprawl. The density restriction solely applied to the developer’s parcel and stopped him from completing his planned development. Later, when the density restriction was set to expire, the local agency extended the density restriction for an additional ten-year period. The developer sought to recover his money losses, claiming the local agency engaged in a prejudicial abuse of its police power since it extended a density restriction which exclusively applied to his parcel after the agency approved his parcel for residential development. The local agency claimed it did not abuse its police power since the density restriction placed on the developer’s parcel of land was enforced and extended to limit urban sprawl in an effort to protect the public welfare. A California court of appeals held the local agency was not liable for the developer’s losses due to the limitations placed on the planned development since the local agency acted in the interest of the public welfare by limiting urban sprawl and thus did not abuse its police power. [Arcadia Development Co. v. City of Morgan Hill (2011) 197 CA4th 1526]