Andalucia Development Corp. v. City of Albuquerque

2010 NMCA 052, 234 P.3d 929, 148 N.M. 277
CourtNew Mexico Court of Appeals
DecidedApril 28, 2010
Docket28,407
StatusPublished
Cited by6 cases

This text of 2010 NMCA 052 (Andalucia Development Corp. v. City of Albuquerque) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Andalucia Development Corp. v. City of Albuquerque, 2010 NMCA 052, 234 P.3d 929, 148 N.M. 277 (N.M. Ct. App. 2010).

Opinion

OPINION

KENNEDY, Judge.

{1} Pursuant to a writ of certiorari, requested by the City of Albuquerque, we review the district court’s application of a municipal impact fee ordinance and its attendant regulations. The ordinance at issue, passed on December 10, 2004, by the City of Albuquerque and the Albuquerque City Council (City), exempts developers from paying impact fees when they possess development rights that vested prior to the ordinance’s date of enactment. City of Albuquerque, N.M., Code of Ordinances § 14-19-1-12(D) (2004) (amended 2009) (hereinafter ROA). Respondents, Andalucía Development Corporation, Inc., and SPS Investments, LC (Developers), argue they were improperly required to pay the fee. Developers claim that under the ordinance, a developer’s rights in property vest at the time the city’s Environmental Planning Commission (EPC) approves an unplatted subdivision site plan. 1 The district court agreed. We reverse.

{2} As we explain below, our interpretation indicates that a developer’s rights vest under the ordinance when the city approves a reliable platting pattern for a subdivision. The district court improperly held that Developers’ rights vested prior to the enactment of the ordinance and incorrectly found that Developers had received “approval” under Brazos Land, Inc. v. Board of County Commissioners, 115 N.M. 168, 170, 848 P.2d 1095, 1097 (Ct.App.1993), creating common law vested rights. Such an analysis confuses the common law doctrine of vested rights with the vested rights contemplated by the ordinance. As a result, we hold that the court erroneously invalidated the ordinance’s two-year sunset provision.

BACKGROUND

{3} The facts of this ease are undisputed. In March 2001, the EPC approved a site plan for subdivision of lands owned by Ray A. Graham, III, which included eight individual tracts. Although no tracts were platted, the approved plan established tract boundaries, vehicle access, bicycle and trail access, public transit access, internal circulation requirements, building heights, setbacks, and common landscape standards. It provided zoning for the entire development and annexation of a small portion from Bernalillo County to the City. The plan stated that its goal would be to eventually plat each tract. Thereafter, the development proceeded in three phases. Phase 1 received approval in August 2003, and Phase 2 received approval in November 2004. But Phase 3, the property at issue in this case, was not approved until August 2005, more than seven months after passage of the impact fee ordinance.

{4} The EPC approved Phase 1 in August 2003 as an amendment to the original site plan for subdivision. That amendment indicated Phase l’s lot platting and further subdivided Tract 1 into four smaller tracts that were designated 1A through ID. It also designated Tracts IB through ID as “bulk [t]racts for future development.” It is Tract 1C with which we are concerned in this case. In September 2003, the property was sold to Developers, which then invested in further plans and improvements, including the submission of two additional amendments to the original site plan for subdivision covering Phases 2 and 3. In November 2004, the EPC approved the first of those, which was a second amendment to the original site plan for subdivision. It designated a platting pattern for Phase 2 of the development and, like the amendment to develop Phase 1, designated Tracts 1C through ID as “bulk [tjracts for future development.”

{5} The next month, on December 10, 2004, the City passed the ordinance at issue in this case. That ordinance requires developers to pay impact fees for development of new property within the city and exempts those whose rights vested prior to its enactment. ROA § 14-19-1-1; § 14-19-1-12(D). In August 2005, Developers received the third and final approval for amendment of the original site plan. That amendment provides for Phase 3 of the development and designates a platting pattern and subdivision layout for Tract 1C. On November 30, 2005, the City determined that Developers had vested rights in Phases 1 and 2 prior to the enactment date of the ordinance because the amendments covering those phases indicated platting patterns for individual lots. Property covered by Phases 1 and 2 was therefore exempt from impact fees. But because platting for Phase 3/Tract 1C was not approved until after enactment of the ordinance, the City determined that Developers’ rights in that property were not vested within the exception. Thus, the City notified Developers that it would be required to pay impact fees for Phase 3/Tract 1C. Developers objected. They argued that the March 2001 original site plan for subdivision gave them vested rights in Phase 3/Tract 1C, but the City’s Impact Fee Administrator (IFA) was unpersuaded. As he explained, “the original [March 2001] site development plan for subdivision was for a bulk land plat [and such a plan] does not rise to the level of a right to proceed with development because it only defines the zoning parameters or entitlements for a parcel — the parcel will require further review and approval to acquire ... development rights.”

{6} Developers challenged the IFA’s decision and appealed to the EPC. Again, Developers argued that the EPC’s March 2001 approval of the original site plan for subdivision conferred vested rights. As a result, their rights in Phase 3/Tract 1C vested prior to the enactment of the impact fee ordinance and should trigger the exemption. This argument failed to persuade the EPC, which concluded that such vested rights “are those that would allow a property owner to proceed with development subject to technical compliance with the approved site development plan.” Bulk land subdivision plans, like the one submitted in March 2001 do not confer development rights

because they require ... further intermediary approval to proceed with development, and are therefore not the type of approval that establishes vested rights____ The approval of a bulk land subdivision or a site development plan for a bulk land subdivision does not result in a vested right under the impact fee ordinances.

Those approvals do not “allow a property-owner to proceed to develop” the property.

{7} Developers renewed their argument on appeal to the City, which appointed an independent hearing officer to consider the matter. The hearing officer recommended that the City reverse the decision of the EPC, stating that “the number of future approvals necessary [for development of the property] is irrelevant.” The original approval of Developers’ site plan for subdivision was, he stated, sufficient for impact fee exemption under the ordinance. However, despite the hearing officer’s recommendation, the City decided to hold its own hearing, and it did so on August 21, 2006. Afterwards, it published a decision along with formal findings of fact, finding that “[a] development that [has] not progressed to the point of having committed to any specific lot configuration, location or layout should not be considered to have a vested right for purposes of avoiding impact fees.” “[W]ith respect to the land now at issue [Phase 3/Tract 1C] there was no approval [prior to the ordinance’s enactment] for any lots ...

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Bluebook (online)
2010 NMCA 052, 234 P.3d 929, 148 N.M. 277, Counsel Stack Legal Research, https://law.counselstack.com/opinion/andalucia-development-corp-v-city-of-albuquerque-nmctapp-2010.