The plaintiffs charge the city improperly spent more than $20 million in impact fees collected from construction projects on the city's north side.

Specifically, they argue Atlanta collects impact fees from that area while exempting projects on the west and south sides of the city.

In addition, the suit charges the city spends fees collected on north side projects in underdeveloped areas instead of using them to enhance infrastructure that serves the projects from which the fees were collected.

The city has until Oct. 11 to respond to the judge's ruling. One acceptable response, according to a plaintiff representative who spoke with GlobeSt.com on condition of anonymity, would be a refund.

The state allows impacts fees, but, according to this representative, it stipulates that they must be reinvested to mitigate the impact of the development from which they were collected.

If no settlement is reach by Oct. 11, a date will be set for the case to be heard in federal court.

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