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1. Zoning--outdoor advertising billboard--county ordinance preempted by State law
The superior court erred by concluding that a county's zoning ordinance prohibiting the
relocation of the pertinent billboard was not preempted by State law regulating outdoor
advertising, because: (1) although the North Carolina Outdoor Advertising Control Act (OACA)
and its corresponding regulations do not preempt local regulation of outdoor advertising under
N.C.G.S. § 160A-174(b)(5), N.C.G.S. § 160A-174(b)(2) provides that Department of
Transportation (DOT) regulations preempt the county's zoning ordinance; (2) OACA and DOT's
regulations allow a permit holder to move a nonconforming sign with the bounds of the sign
location/site as defined by 19A N.C.A.C. 2E.0201(27) while in contrast Article IV Section
406.4(G) of the county's zoning ordinance provides that a nonconforming sign shall not be
moved or replaced except to bring the sign into complete conformity with the county's
ordinance; (3) the county ordinance makes unlawful an act, omission, or condition expressly
made lawful by State law; (4) petitioner was not required to apply for a new permit from the
county when at all times it had a valid DOT permit, and a permit issued by DOT shall be valid
until revoked for nonconformance with the OACA or rules adopted by DOT; and (5) the county's
denial of a permit to petitioner would in effect cause the billboard to be removed, which could
not be done without the payment of just compensation.
2. Appeal and Error-_superior court--motion to supplement record--affidavits
The superior court did not err by denying respondents' motion to supplement the record
before the superior court with the affidavits of the Planning Director and Zoning Administrator
for the County, and two people who did not testify before the board, because the affidavits were
not before the board.
Judge McGEE concurring in part and dissenting in part.
Van Winkle, Buck, Wall, Starnes and Davis, P.A., by Craig D.
Justus, for Petitioner.
Hamilton Moon Stephens Steele & Martin, PLLC, by Robert C.
Stephens and Mark R. Kutny; The Law Office of Joshua J.
Morton, by Joshua J. Morton, Jr., for Respondents.
STEPHENS, Judge.
Lamar OCI South Corporation, d/b/a Lamar Advertising of
Asheville (Lamar), appeals from an order of the Superior Court
affirming a decision of the Stanly County Board of Adjustment (the
Board). The Board and Stanly County (collectively Respondents)
appeal from an order of the Superior Court denying Respondents'
motion to supplement the record before the Superior Court.
Lamar is an outdoor advertising company that leases a parcel
of real estate in Stanly County, located along N.C. Highway 24/27,
for an outdoor advertising sign (the billboard). The relevant
parcel of real estate is zoned Highway Business (HB). The
billboard was constructed in 1997, at which time Stanly County
(the County) and the Department of Transportation (DOT) issued
permits for the billboard. At that time, the County's zoning
ordinance permitted outdoor advertising signs in HB zoning
districts. In 2001, the County amended its zoning ordinance. As
amended, the zoning ordinance prohibited outdoor advertising signs
in HB zoning districts. Because it was located in an area in which
outdoor advertising signs were prohibited by the amended ordinance,
the billboard acquired the status of a legal nonconforming sign
under a grandfathering provision of the zoning ordinance.
Bobby Soule, Lamar's Vice-President and General Manager,
testified before the Board that DOT notified Lamar in early 2004
that DOT planned to widen N.C. Highway 24/27, that the billboard
was located in the right-of-way of the proposed road widening, and
that DOT would require the billboard to be relocated. Accordingly,Lamar relocated the billboard approximately fifty feet back from
N.C. Highway 24/27. When Lamar relocated the billboard, it
replaced the four poles of the billboard with four new poles.
Otherwise, the billboard remained the same. Lamar did not inform
the County of the relocation or request any permit from the County.
DOT reimbursed Lamar for the costs of relocating the billboard.
Lamar received a letter dated 19 August 2004 from the County's
zoning enforcement officer stating that Lamar's relocation of the
billboard violated the County's zoning ordinance. Lamar contacted
Ritchie Hearne (Hearne), a DOT district engineer, about the
status of Lamar's DOT permit. In a letter dated 23 August 2004,
Hearne stated that DOT regulations permitted a
sign owner to relocate [a] sign from its
original location off new right of way as long
as it remains in the sign location/site as
defined by [DOT's] regulations. The subject
sign met [DOT's] criteria and will keep the
same application, milepost and permit numbers.
In a letter dated 30 August 2004, Lamar's attorney responded to the
County, stating Lamar's position that the County could not prevent
Lamar from taking any action authorized by DOT under DOT's sign
regulatory program. Lamar also indicated it was willing to submit
a permit application and fee to the County. Michael Sandy
(Sandy), Planning Director and Zoning Administrator for the
County, responded to Lamar by letter dated 28 February 2005. The
letter informed Lamar that the billboard violated the County's
zoning ordinance. Lamar timely appealed the decision to the Board.
The Board heard Lamar's appeal on 12 April 2005. Sandy
testified that the County cited Lamar for failing to obtain apermit to erect a sign at the location where the billboard
presently stood. He also stated that had Lamar submitted a permit
application, the County would not have granted a permit since the
zoning ordinance no longer allowed outdoor advertising in HB zoning
districts.
Hearne also testified at the hearing. He stated that, at the
time of the hearing, Lamar had a valid permit for the billboard
from DOT. He also testified that DOT regulations allowed a permit
holder, without DOT's permission or knowledge, to move a sign
back from a right-of-way as long as the sign was not moved more
than 1/100th of a mile parallel to the right-of-way. If a sign did
not conform to DOT regulations, then DOT would not allow the sign
to be relocated, although DOT would be required to compensate the
sign owner.
The Board unanimously affirmed Sandy's zoning decision. The
Board concluded that when Lamar relocated the billboard, it lost
its status as a legal nonconforming sign under the County's zoning
ordinance because of the restriction of signs in areas zoned HB.
Lamar filed a petition for writ of certiorari in Superior
Court on 12 May 2005, and an amended petition on 5 July 2005.
Lamar contended that its relocation of the billboard was expressly
authorized by DOT and, pursuant to N.C. Gen. Stat. §§ 160A-
174(b)(2) and (5), Respondents were preempted from enforcing any
ordinances that prohibited relocation of the billboard within DOT
regulations. Lamar also contended that (1) the Board had committed
errors of law; (2) the record did not contain substantial,competent, and material evidence to support the Board's decision;
and (3) the Board's decision was not based upon substantial,
competent, and material evidence and was arbitrary and capricious.
Respondents filed an answer to the petition on 5 August 2005. The
Superior Court allowed the writ of certiorari on 2 February 2006,
finding that Lamar was entitled to a review of the Board's
decision. The writ also required the County to certify the record
of the proceedings to the Superior Court within sixty days.
Respondents filed a motion to supplement the record on 30
March 2006. Respondents sought to include in the record sworn
affidavits by (1) Sandy; (2) the Outdoor Advertising
Representative for DOT, Terry Morgan; and (3) the Right-of-Way
Agent for DOT, Charles D. Napier. Lamar filed objections to
Respondents' motion, contending (1) that Respondents were
improperly attempting to introduce evidence that was not part of
the record before the Board; (2) that if the motion was allowed,
Lamar would be unable to cross-examine the witnesses contrary to
its right of cross-examination in a quasi-judicial hearing; and
(3) that Sandy's affidavits improperly raised zoning violations
which were not part of the Board's decision.
The Superior Court heard arguments on Lamar's appeal and
Respondents' motion on 10 April 2006. In an order entered 19 April
2006, the Superior Court found that when Lamar relocated the
billboard without the involvement of the County, the billboard
became a newly erected and illegal sign which violated the County's
zoning ordinance. The Superior Court concluded that Lamar wasrequired to comply with the County's zoning ordinance when the
billboard was relocated and that Lamar had not done so. The
Superior Court also concluded that the County was not preempted
from regulating outdoor advertising signs because (1) the County's
zoning ordinance did not purport to regulate a field for which
State law provided a complete and integrated regulatory scheme to
the exclusion of local regulation; and (2) the County's zoning
ordinance did not make unlawful an act, omission, or condition
which was expressly made lawful by State law. The Superior Court
further concluded that the Board did not commit any errors of law,
that there was competent, material, and substantial evidence to
support the Board's decision, and that the Board's decision was not
arbitrary or capricious. Lamar appeals this order.
In a separate order entered 28 April 2006, the Superior Court
denied Respondents' motion to supplement the record, concluding
that Respondents sought to supplement the record with evidence that
would inappropriately add to the evidence that was before the
Board. Respondents appeal this order.
McGEE, Judge, concurring in part and dissenting in part.
I concur with the majority's conclusion that local regulation
of outdoor advertising is not preempted under N.C. Gen. Stat. §
160A-174(b)(5). However, I do not agree with the majority's
conclusion that the County's zoning ordinance is preempted pursuant
to N.C. Gen. Stat. § 160A-174(b)(2). Therefore, I respectfully
dissent from that portion of the majority's opinion and vote to
affirm the Superior Court's order concluding that the County's
zoning ordinance is not preempted.
The majority holds that the OACA and the corresponding DOT
regulations expressly allow a permit holder to relocate a
nonconforming billboard within a Sign Location/Site, but the
County's zoning ordinance prohibits such action. The majority
therefore concludes that the County's zoning ordinance is preempted
pursuant to N.C.G.S. § 160A-174(b)(2). The majority also finds
this Court's decision in Morris Communications Corp. v. Board of
Adjust. of Gastonia, 159 N.C. App. 598, 583 S.E.2d 419 (2003),
reh'g denied, 358 N.C. 155, 592 S.E.2d 690 (2004) to require thatwe find the County's zoning ordinance is preempted. I do not
agree.
In Morris, the City of Gastonia required the petitioner to
apply for a permit to change the frame and advertising sign on a
billboard. Id. at 599, 583 S.E.2d at 420. When the petitioner
applied for the permit, the City denied the application. Id. The
petitioner appealed the decision, arguing that changing the frame
and the advertisement on the billboard was expressly permitted by
State law. Id. The Board of Adjustment upheld the denial of the
permit, but the Superior Court reversed, concluding, inter alia,
that State law preempted the city's ordinance. Id. The city
ordinance in effect in Morris provided:
(c) A nonconforming sign may not be moved or
sign structure replaced except to bring the
sign into complete conformity with this
chapter. Once a nonconforming sign is removed
(i.e., the removal of the structural
appurtenances above the base or footing) from
the premises or otherwise taken down or moved,
said sign only may be replaced or placed back
into use with a sign which is in conformance
with the terms of this chapter.
(d) Minor repairs and maintenance of
nonconforming signs necessary to keep a
nonconforming sign in sound condition are
permitted.
Id. at 602, 583 S.E.2d at 422. The relevant DOT regulation
provided:
(c) Alteration to a nonconforming sign . . .
is prohibited. Reasonable repair and
maintenance are permitted including changing
the advertising message or copy. The
following activities are considered to be
reasonable repair and maintenance:
(1) Change of advertising message or copy onthe sign face.
(2) Replacement of border and trim.
(3) Repair and replacement of a structural
member, including a pole, stringer, or panel,
with like material.
(4) Alterations of the dimensions of painted
bulletins incidental to copy change.
Id. at 604, 583 S.E.2d at 423. As the majority recognizes in the
present case, we concluded in Morris that the DOT regulation
expressly permitted repair and replacement of a billboard's
structural member. Therefore, the ordinance was preempted to the
extent that it conflicted with the DOT regulation. Id. at 605, 583
S.E.2d at 423-24. Further, we also concluded in Morris that N.C.
Gen. Stat. § 136-131.1 did not apply because the City of Gastonia
did not remove the sign or cause the sign to be removed. Id. at
605, 583 S.E.2d at 424.
In the present case, I draw the same conclusion as to N.C.G.S.
§ 136-131.1. Respondents did not remove the sign or cause the sign
to be removed. Indeed, the County was not even aware of the change
in the billboard's location until after Lamar had relocated the
billboard. Further, even if N.C.G.S. § 136-131.1 does apply to the
present case, it does not prohibit local governments from removing
signs, or causing signs to be removed, but prohibits local
governments from doing so "without the payment of just
compensation[.]" Therefore, this provision does not provide a
basis for finding that the County's zoning ordinance is preempted.
I also conclude that the definitions included in 19A N.C.A.C.
2E.0201 and the grounds for revocation contained in 19A N.C.A.C.2E.0210 relied upon by Lamar do not expressly make lawful an act
made unlawful by the County's zoning ordinance. Although Lamar
insists, and the majority agrees, that Morris requires us to
conclude that the County's zoning ordinance is preempted, I find
the DOT regulations applicable in the present case to be different
from the DOT regulation at issue in Morris, and I distinguish
Morris on that ground. Two of the provisions relied upon by Lamar
are contained in the definition section of the regulations, and the
third lists situations in which DOT can revoke a permit.
Furthermore, although the majority correctly states that DOT's
regulations provide that "[a] nonconforming sign . . . may continue
as long as it is not abandoned, destroyed, discontinued, or
significantly damaged[,]" this provision does not mention
relocation of a billboard. In contrast, the regulation at issue in
Morris was a substantive statement of prohibited and permissible
actions regarding nonconforming signs and expressly stated that
"'[r]easonable repair and maintenance [of a nonconforming
billboard] are permitted including changing the advertising message
or copy.'" Morris, 159 N.C. App. at 604, 583 S.E.2d at 423
(quoting 19A N.C.A.C. 2E.0225(c)). I conclude that the DOT
regulations relied upon by Lamar and the majority in the present
case do not expressly make lawful the relocation of a nonconforming
sign within the "Sign Location/Site" in violation of local zoning
ordinances. Therefore, I would affirm the Superior Court's
conclusion that the County's zoning ordinance is not preempted by
the OACA or DOT's corresponding regulations pursuant to N.C.G.S. §
160A-174(b)(2). Lamar also briefly argues that the Board's decision was not
supported by competent evidence and was arbitrary as a matter of
law. When reviewing a claim that a board's decision was not
supported by the evidence, or was arbitrary and capricious, the
Superior Court must apply the whole record standard of review.
Hopkins v. Nash County, 149 N.C. App. 446, 448, 560 S.E.2d 592, 594
(2002). "The 'whole record' test requires the reviewing court to
examine all competent evidence (the 'whole record') in order to
determine whether the agency decision is supported by 'substantial
evidence.'" Amanini v. N.C. Dept. of Human Resources, 114 N.C.
App. 668, 674, 443 S.E.2d 114, 118 (1994). "The 'whole record'
test does not allow the reviewing court to replace the Board's
judgment as between two reasonably conflicting views, even though
the court could justifiably have reached a different result had the
matter been before it de novo." Thompson v. Board of Education,
292 N.C. 406, 410, 233 S.E.2d 538, 541 (1977).
Lamar argues that the Board's findings of fact were based upon
a misapprehension of law regarding the preemption issue and,
therefore, are not binding on appeal and should not be upheld.
Because I conclude that the Superior Court did not err by upholding
the Board's decision, I reject this argument.
Finally, because I would affirm the Superior Court's order
from which Lamar appeals, I do not reach Respondent's assignments
of error.
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