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1. Zoning--moratorium and subsequent amendment to ordinance--site application
pending--asphalt plant
The trial court erred by granting summary judgment in favor of defendant town based on
the town's moratorium and subsequent amendment to the pertinent zoning ordinance while
plaintiff's application for site plan approval with defendant to construct an asphalt plant within
the town limits was pending, and the case is reversed and remanded, because: (1) plaintiff was
entitled to rely upon the language of, and have his application considered under, the zoning
ordinance in effect at the time he applied for the permit; and (2) to hold otherwise would allow
compliance with regulations and permitting to become a moving target to ever changing
revisions or amendments.
2. Zoning--moratorium and later permanent ban on asphalt plants_-summary
judgment--genuine issues of material fact--public purpose--equal protection--
arbitrary and capricious standard
The trial court erred in a zoning case by granting summary judgment in favor of
defendant town after the town repeatedly failed to act on plaintiff's application for site plan
approval to construct an asphalt plant within the town limits, and defendant issued a moratorium
and later a permanent ban on asphalt plants within the town and its extraterritorial zoning
jurisdiction, because genuine issues of material fact existed as to: (1) whether the public purpose
defendant town sought to accomplish by a total ban on asphalt plants is legitimate; and (2)
whether defendant's decision to place a total permanent ban on manufacturing and processing
facilities involving petroleum products within all areas located in the city limits and its
extraterritorial zoning jurisdiction denied equal protection and was arbitrary and capricious.
Judge JACKSON dissenting.
Smith, James, Rowlett & Cohen, LLP, by J. David James and Seth
R. Cohen, for plaintiff-appellant.
Cranfill, Sumner & Hartzog, L.L.P., by Susan K. Burkhart, for
defendant-appellee.
TYSON, Judge.
Douglas M. Robins (plaintiff) appeals from the trial court's
order granting summary judgment in favor of the Town of
Hillsborough (defendant). We reverse and remand.
JACKSON, Judge, dissenting.
For the reasons stated below, I respectfully dissent from the
majority opinion.
Generally, [t]he adoption of a zoning ordinance does not
confer upon citizens . . . any vested rights to have the ordinance
remain forever in force, inviolate and unchanged. McKinney v.
City of High Point, 239 N.C. 232, 237, 79 S.E.2d 730, 734 (1954).
However, North Carolina recognizes two methods by which a landowner
may establish vested rights in a zoning ordinance: (1) qualify
pursuant to relevant statutes establishing such vested rights; or
(2) qualify under the common law. Browning-Ferris Industries v.
Guilford County Bd. of Adj., 126 N.C. App. 168, 171, 484 S.E.2d
411, 414 (1997).
The relevant statute for establishing a vested right in this
case is North Carolina General Statutes, section 160A-385.1(c)
(2003), which provides: [a] vested right shall be deemed
established with respect to any property upon the valid approval,
or conditional approval, of a site specific development plan . . .. In the case sub judice, plaintiff never received approval of
his site plan. Valid approval of a site plan is a prerequisite to
the establishment of vested rights pursuant to North Carolina
General Statutes, section 160A-385.1(c), and the absence of such
approval is fatal to plaintiff's establishment of a statutory
vested right.
Plaintiff concedes that he does not have a statutory vested
right to approval of his site plan application, but argues that his
rights did not vest statutorily due to defendant's refusal to issue
a decision on his application. Plaintiff did not, however, allege
in his complaint that defendant purposefully had delayed acting on
his application and therefore that issue was not before the trial
court. Generally, an issue not raised and argued before the trial
court cannot be raised for the first time on appeal. N.C. R. App.
P. Rule 10(b)(1) (2005); Creasman v. Creasman, 152 N.C. App. 119,
123, 566 S.E.2d 725, 728 (2002).
Even if plaintiff's argument that defendant purposefully
delayed making a decision on plaintiff's application for site plan
approval, which was not included in his initial complaint, were
considered, plaintiff could not prevail. The evidence in the
record on appeal clearly demonstrates that the failure to reach a
decision on plaintiff's application was the result of ongoing
consideration of various, complicated issues regarding the project.
Plaintiff's attorney did not object to the continuation of any of
the Board of Adjustment meetings and even informed the Board, when
the lateness of the hour was pointed out, that his cross-examination of the witness testifying at the time would be
extensive. While this complicated review was proceeding, the Town
of Hillsborough enacted the moratorium on the acceptance, review,
or consideration of new or pending applications for approval of any
manufacturing or processing facility involving petroleum products.
This sequence of events necessarily ended the ongoing review of
plaintiff's application.
In the alternative, plaintiff argues that he is entitled to a
vested right pursuant to the common law. A common law vested right
to develop or build exists
when: (1) the party has made, prior to the
amendment of a zoning ordinance, expenditures
or incurred contractual obligations
'substantial in amount, incidental to or as
part of the acquisition of the building site
or the construction or equipment of the
proposed building,' Town of Hillsborough v.
Smith, 276 N.C. at 55, 170 S.E.2d at 909; (2)
the obligations and/or expenditures are
incurred in good faith, Id.; (3) the
obligations and/or expenditures were made in
reasonable reliance on and after the issuance
of a valid building permit, if such permit is
required, authorizing the use requested by the
party, Id. . . . and (4) the amended ordinance
is a detriment to the party.
Browning-Ferris, 126 N.C. App. at 171-72, 484 S.E.2d at 414. The
landowner bears the burden of proving all four elements to
establish a common law vested right. Id. at 172, 484 S.E.2d at
414.
In his complaint, plaintiff contends that, prior to the
moratorium, he had expended substantial sums of money and had
incurred contractual obligations related to the acquisition of the
property for his plant. Plaintiff further contends that theseexpenditures and obligation were incurred in good faith and in
reasonable reliance on the approval of his Erosion Control Plan by
Orange County. The reliance on the approval of the Erosion Control
Plan is not sufficient, however, to establish a common law vested
right in plaintiff. The approval is not a building permit, as is
required to establish common law vested rights, nor is it similar
in nature to a building permit. Further, the approval was granted
by a governmental agency completely distinct, separate, and beyond
the control of the Town of Hillsborough and was merely one step in
the process of evaluation and approval of a site plan. Plaintiff
did not have a valid building permit, or any permit issued by
defendant whatsoever, upon which he could reasonably rely prior to
the enactment of the moratorium and permanent ban. Consequently,
no common law vested right arose.
As defendant had neither a statutory vested right nor a common
law vested right to the approval of his site plan application, I
would overrule this assignment of error.
The majority contends this Court previously has addressed the
issue presented in the instant case in Lambeth v. Town of Kure
Beach, 157 N.C. App. 349, 578 S.E.2d 688 (2003), and that our
Supreme Court considered a similar issue in Northwestern Financial
Group v. County of Gaston, 329 N.C. 180, 405 S.E.2d 138 (1991). In
both cases the applicant was held to be entitled to rely on the
provisions of the applicable ordinance as it existed at the time of
the initial application. However, I believe both of these casesclearly are distinguishable from, and inapplicable to, the facts of
the instant case.
In Lambeth, the issue addressed on appeal was whether the
subsequent amendment of the town's zoning ordinance mooted the
petitioner's appeal of the denial of his permit under its prior
ordinance. This Court held that, because the subsequent amendment
further restricted the petitioner's use of his property and did not
give him the relief sought, the petitioner's claim and injury
remained viable. 157 N.C. App. at 352, 578 S.E.2d at 690.
Accordingly, on appeal from the denial of his permit, the
[p]etitioner was entitled to rely upon the language of the
ordinance in effect at the time he applied for the permit. Id.
This holding pertained only to the petitioner's reliance on the
prior ordinance in his appeal from the denial of his permit.
In the instant case, no decision ever was rendered regarding
plaintiff's application. Accordingly, plaintiff's appeal is not
from a decision based upon the criteria contained in the ordinance
as it existed at the time of his application. Had a decision been
made on plaintiff's application pursuant to the existing ordinance,
equity would dictate that review of that decision be made utilizing
the same criteria upon which the decision in question was made. As
this was not the situation in the case sub judice, I would hold
that plaintiff was not entitled to rely on the language of the
ordinance in effect at the time of his application.
In Northwestern Financial, a developer submitted plans for a
mobile home park pursuant to the provisions of the Gaston CountyMobile Home Park Ordinances then in effect. 329 N.C. at 182, 405
S.E.2d at 139. A revised version of the Mobile Home Park
Ordinances took effect approximately three months after the
developer submitted his original plans. Id. The revised
ordinances specifically provided that the provisions of the prior
ordinances would apply to plans submitted prior to the effective
date of the revised ordinances. Id. The developer subsequently
submitted several revised plans in response to deficiencies
identified by the reviewing agencies - one prior to the effective
date of the revised ordinances and two after that date. Id. at
182-83, 405 S.E.2d at 140.
The Planning Board voted to disapprove the developer's fourth
set of plans, in part, on the ground that any proposed plans would
have to be in accordance with the revised ordinances. Id. at 185,
405 S.E.2d at 141. The developer attempted to submit a fifth set
of plans which the County refused to accept for consideration under
the previous ordinance provisions. Id. The developer appealed the
decision.
On appeal, the Supreme Court held that the developer had
established its right to review of the plans under the prior
ordinances by its submission of the plans prior to the effective
date of the revised ordinances. Id. at 188, 405 S.E.2d at 143. In
reaching this holding, the Supreme Court determined that the plans
all had been reviewed under the prior ordinance and that, by its
very terms, the subsequent ordinance did not apply to plans
submitted prior to the effective date of the subsequent ordinance. Id. at 186-87, 405 S.E.2d 142. Accordingly, the developer was
entitled to review of the plans under the provisions of the
previous ordinances and, if the plans conformed to the requirements
of those ordinances, the ordinance provided for a permit by right
upon compliance with the terms of the ordinance, and such permit
may not be denied on the basis that it is a hazard to the public
welfare. Id. at 191, 405 S.E.2d at 144.
In contrast with the specific facts in Northwestern, the
provisions of the moratorium and permanent ban subsequently adopted
in the case sub judice specifically provided that they applied to
all applications pending at the time of, or filed after, the
effective date of the moratorium and amended zoning ordinance. As
the Supreme Court's holding in Northwestern is based on specific
provisions of the amended ordinance providing that applications
pending prior to the effective date of the amendment would be
reviewed under the terms of the original ordinances - a fact not
present in the instant case - I believe Northwestern is
inapplicable to the case at bar. In addition, the applicable Town
of Hillsborough Ordinance did not provide for a permit by right
upon compliance with the terms of the ordinance notwithstanding the
fact that the use might be a potential hazard to the public
welfare.
(See footnote 1)
The majority next holds that plaintiff's due process rights
were violated by defendant's adoption of the moratorium and
subsequent amendment of the zoning ordinance to prohibit
manufacturing or processing facilities involving petroleum
products. The majority bases its position on the contention that
when a municipality prohibits an otherwise lawful activity, the
municipality must demonstrate a more substantial relationship
between the prohibition and the public welfare than when such
lawful activity is merely restricted to particular areas to
establish the constitutionality of the prohibition. I do not
believe that this issue is properly before this Court.
On appeal, plaintiff challenges the validity of the procedures
followed in extending the moratorium and argues that defendant's
decision to permanently prohibit manufacturing and processing
facilities involving petroleum products was arbitrary and
capricious as applied to this case. Plaintiff does not allege that
either the moratorium or the amended ordinance were faciallyinvalid. Rather, plaintiff argues that the procedure utilized in
extending the moratorium violated due process and that the amended
ordinance violated due process as applied. Accordingly, the
validity of the provisions of the amended ordinance itself is not
in question on appeal as it has not been challenged by plaintiff.
The majority's holding, premised upon the constitutionality of
the ordinance itself, effectively creates an appeal for plaintiff.
It is not the role of the appellate courts, however, to create an
appeal for an appellant. Viar v. N.C. DOT, 359 N.C. 400, 402, 610
S.E.2d 360, 361 (2005). Further, an appellate court will not
decide a constitutional question unless it is properly presented
. . . . State v. Muse, 219 N.C. 226, 227, 13 S.E.2d 229, 229
(1941); see also, State v. Blackwell, 246 N.C. 642, 644, 99 S.E.2d
867, 869 (1957); Carillon Assisted Living, L.L.C. v. N.C. Dep't of
Health & Human Servs., 175 N.C. App. __, 623 S.E.2d 629 (2006).
With regard to the due process arguments actually raised by
plaintiff in his brief, I would hold that none of plaintiff's due
process rights were violated in either the extension of the
moratorium or in the application of the amended ordinance to the
facts of this case.
Plaintiff argues that there were genuine issues of material
fact regarding whether defendant complied with all statutory and
due process requirements in extending the moratorium. Defendant
contends that public notice and hearing, pursuant to North Carolina
General Statutes, section 160A-364, were required for the valid
extension of the moratorium. Defendant argues that no furthernotice or hearing was required as the original moratorium, the
validity of which was never challenged by plaintiff, included a
provision for the extension of the moratorium by the Hillsborough
Town Board.
Pursuant to North Carolina General Statutes, section 160A-364,
notice of public hearing was published on 9 April and 16 April 2003
regarding a special Joint Public Hearing of the Hillsborough Town
Board and the Planning Board on 22 April 2003. In pertinent part,
the notice provided:
2. Zoning Ordinance Amendment. Amendment to
establish a development moratorium on the
processing, review and approval of
applications for permits and approvals,
including site plans, for all manufacturing
and processing facilities which involve
petroleum products (including asphalt) on all
properties under the Town's zoning
jurisdiction. The Town is currently working on
amending the regulations for such facilities
and desires to suspend the current permitting
and approval process while modified
development regulations are being considered.
The proposed development moratorium will
expire on December 31, 2003, unless (1) sooner
terminated by the Town Board or (II)[sic]
extended by the Town Board, for a period not
longer than six months, prior to December 31,
2003.
(emphasis added). At the 22 April hearing, interested parties on
both sides were given the opportunity to speak regarding the
proposed moratorium. Three possible courses of action were
presented: (1) enact no moratorium; (2) enact a moratorium on new
applications; or (3) enact a moratorium on pending and future
applications. During the discussion, the Chairman of the Planning
Board asked how the moratorium would end and was told that it wouldend automatically upon the adoption of new language or on 31
December 2003 unless the Town Board took action to extend it. No
exception or argument was made regarding this statement by anyone,
including plaintiff. The third option was selected by unanimous
vote of the Town Board. The enacted ordinance contained the exact
language regarding the expiration of the ordinance that was
included in the notice of hearing which was published in accordance
with North Carolina General Statutes, section 160A-364.
North Carolina General Statutes, section 160A-364 provides, in
relevant part, [b]efore adopting or amending any ordinance
authorized by this Article, the city council shall hold a public
hearing on it. The portion of the ordinance at issue in the
instant case states:
This Ordinance shall be effective immediately
upon adoption, and shall remain in effect
until 11:59:59 p.m. on December 31, 2003
unless sooner terminated by the Board of
Commissioners, or unless extended for a period
of not longer than six months by the Board of
Commissioners acting prior to expiration.
Plaintiff argues that the requirements of section 160A-364 must be
strictly construed based upon this Court's holding in Sandy Mush
Props, Inc. v. Rutherford Cty, 164 N.C. App. 162, 595 S.E.2d 233
(2004). In Sandy Mush, we held that the failure of the county to
run two advertisements noticing a public hearing during which a
proposed temporary moratorium was to be discussed, as required
pursuant to North Carolina General Statutes, section 153A-323 (a
statute applicable to county governments which is analogous to
section 160A-364 which applies to municipal governments) resultedin the subsequently enacted temporary moratorium being invalid.
Id. at 168, 595 S.E.2d at 237. The temporary moratorium was held
invalid as a result of the failure to run the two required
advertisements despite the fact that the plaintiff in the case had
actual notice of the hearing and had the opportunity to, and did in
fact, speak at the hearing in opposition to the temporary
moratorium.
I agree with plaintiff that the requirements of section 160A-
364 must be strictly construed. Section 160A-364 requires the
holding of a public hearing prior to the adoption or modification
of any ordinance, and that notice of that hearing be given once a
week for two successive weeks prior to the hearing in a newspaper
of general distribution in the area. N.C. Gen. Stat, . 160A-364.
Plaintiff does not argue that the adoption of the ordinance
originally enacting the temporary moratorium did not comply with
the requirements of section 160A-364. Therefore, the validity of
the temporary moratorium is not at issue.
Instead, plaintiff argues that the extension of the temporary
moratorium modified the original ordinance and, therefore,
additional notice and a second public hearing, as provided in
section 160A-364, were required. However, the provisions of the
original ordinance explicitly authorized an extension, of no more
than six months, of the temporary moratorium by action of the Board
of Commissioners. The exact language of this provision as adopted
was included in the public notice of the hearing regarding the
adoption of the temporary moratorium. Further, that provision wasdiscussed at the public hearing without objection or comment by any
party.
The provisions of the temporary moratorium ordinance
specifically authorized the extension of the temporary moratorium
by the Board of Commissioners. I find no authority which prohibits
the inclusion of a pre-approved extension in a duly enacted
ordinance. The extension of the temporary moratorium for two
months on 1 December 2003 by the Board of Commissioners was,
therefore, authorized pursuant to the terms of the ordinance.
Accordingly, as section 160A-364 applies only to adoption or
modification of ordinances, and that section must be strictly
construed, I would hold that the extension of the temporary
moratorium was not subject to the requirements of section 160A-364
as it did not modify the original ordinance.
Plaintiff also argues that the amendment to defendant's zoning
ordinance banning manufacturing and processing facilities involving
the use of petroleum products violated the Law of the Land Clause
of Article I, section 19 of the North Carolina Constitution. The
Law of the Land Clause of the North Carolina Constitution, N.C.
Const. art. I, § 19, 'is synonymous with due process of law as
used in the Fourteenth Amendment to the Federal Constitution.'
Rhyne v. K-Mart Corp., 358 N.C. 160, 180, 594 S.E.2d 1, 15 (2004)
(quoting In re Moore, 289 N.C. 95, 98, 221 S.E.2d 307, 309 (1976))
(internal quotation marks omitted). No process is due a person
who is deprived of an interest by official action unless that
interest is protected by law, i.e., unless it is an interest inlife, liberty or property. Henry v. Edmisten, 315 N.C. 474, 480,
340 S.E.2d 720, 725 (1986). As previously stated, I do not believe
plaintiff had a vested right in the approval of his site plan
application, and accordingly I would hold no process was due
plaintiff regarding that application.
Assuming arguendo that plaintiff had a vested right in
approval of his application, the evidence does not support a
finding that defendant acted arbitrarily and capriciously in
failing to make a decision on plaintiff's application. A municipal
board of adjustment has a duty to safeguard the health and safety
of the entire community. Signorelli v. Town of Highlands, 93 N.C.
App. 704, 710, 379 S.E.2d 55, 59 (1989). It undoubtably would be
a breach of this duty to approve plaintiff's application when there
was evidence to support either approval or disapproval of the
application and all evidence had yet to be received. Accordingly,
I believe that defendant could not have approved plaintiff's
application based on the evidence presented prior to the adoption
of the moratorium without breaching its duty to the community.
Therefore, the failure to render a decision on the application was
neither arbitrary nor capricious.
I would affirm the order of the trial court.
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