Avenue 6E Investments, LLC v. City of Yuma

217 F. Supp. 3d 1040, 2017 WL 1550414, 2017 U.S. Dist. LEXIS 66213
CourtDistrict Court, D. Arizona
DecidedMay 1, 2017
Docket2:09-cv-00297 JWS
StatusPublished
Cited by4 cases

This text of 217 F. Supp. 3d 1040 (Avenue 6E Investments, LLC v. City of Yuma) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Avenue 6E Investments, LLC v. City of Yuma, 217 F. Supp. 3d 1040, 2017 WL 1550414, 2017 U.S. Dist. LEXIS 66213 (D. Ariz. 2017).

Opinion

ORDER AND OPINION

[Re: Motion at Docket 218]

John W. Sedwick, Senior Judge

I. MOTION PRESENTED

At docket 218, the City of Yuma, Arizona, (“the City”) has renewed its motion for summary judgment as to plaintiffs’ Fair Housing Act disparate impact claim. The City argues that plaintiffs Avenue 6E Investments, LLC and Saguaro Desert Land, Inc. (jointly “Plaintiffs” or “the Hall Company”)1 failed to present appropriate statistics to establish a prima facie case of disparate impact and, alternatively, that it had a legitimate and nondiscriminatory basis for denying the Hall Company’s rezoning request. The City originally filed this motion at docket 148, but the motion was denied as moot after the court dismissed Plaintiffs’ disparate impact claim on other grounds. On appeal, the Ninth Circuit reversed the court’s dismissal and directed it to consider the arguments raised regarding the sufficiency of Plaintiffs’ statistical showing of disparate impact. The City’s statement of facts and supporting materials are located at docket 149. Plaintiffs’ response to the motion is at docket 227. Plaintiffs filed a response to the City’s statement of facts at docket 228 and filed their own statement of facts at docket 229. Their supporting materials are at docket 165. The City’s reply is at docket 232, and its response to Plaintiffs’ statement of facts is at docket 231. Oral argument was requested but would not assist the court.

II. BACKGROUND

This action arises from the City’s denial of the Hall Company’s rezoning application for a 42-acre parcel of undeveloped land in Yuma, Arizona (“the Property”). The Property is located in the southeast portion of Yuma; specifically, on the west side of Avenue 6E and about one-half mile south of. 32nd Street. The south end of the Property abuts a .low-density R-1-8, subdivision, Belleza Phase 1. The north end of the Property is bordered by a recreational vehicle village (“RV Village”). The City owns the parcel of land to the, east of the Property, which is designated for use as a wastewater facility and municipal park. To the west of the Property is the Terra Bella development. At the time of the events in this case, Terra Bella was zoned R-1-6 (minimum 6,000-square-foot lots) and had two phases of development. The first phase abutted the Property on the Property's southwest corner and had been platted for lots larger than the minimum lot size of 6,000 square-feet, ranging from 8,000 to 20,000 square feet. Only a couple of lots within the first phase of development had [1044]*1044been sold and developed during the relevant time period. The second phase abutted the Property to the west and northwest. It was vacant land that had not been platted.

Prior to 2006 the Property was part of a larger 80-acre parcel of land owned by KDC of Yuma, LLC (“KDC”). KDC applied to rezone the 80-acre parcel from agricultural to R-1-8 (minimum 8,000-square-foot lots). The City Council conditionally granted the rezoning application, after which KDC obtained approval of a preliminary plat on the entire parcel that set out single family lots that were at least 9,000 square feet. KDC developed the southern 38 acres, known as Belleza Phase 1, and then sold the remaining 42 acres, the Property, to the Hall Company. The Hall Company purchased the Property from KDC for $5.8 million, or around $135,000 an acre. At the time of the sale, the Property was still conditionally zoned R-1-8 and still had KDC’s preliminary plat providing for 129 lots of least 8,000 square feet.

In 2008, the Hall Company determined that development of the Property with R-1-8 zoning was not financially viable because there was no demand for large-lot, higher-priced homes in Yuma due to existing inventory and the housing market decline. Consequently, the Hall Company designed a development consisting of smaller lots: approximately 198 lots, each about 6,000 square feet. The Hall Company intended to construct affordable and moderately priced homes using a housing product—the Sunrise model home—it had built in another one of its subdivisions, Ocotillo 5, located approximately 1.25 miles south of the Property. Unlike more expensive large-lot homes, it believed that these affordable or moderately priced homes were still in demand. The Hall Company deemed “affordable” to mean entry-level houses priced between $120,000 and $150,000 and moderately priced to mean mid-level houses priced between $150,000 and $175,000. Specifically, the proposed price range for the houses to be constructed on the Property was between $125,200 and $159,800. They were not seeking to develop low-income housing as defined by the Department of Housing and Urban Development.

In order to implement the new plan, the Hall Company submitted an application to the City to rezone the Property from R-1-8 to R-1-6. Zoning designations R-1-8 and R-1-6 are both considered low-density zoning in Yuma, only one density gradient apart. The City’s planning staff recommended that the City Council approve the rezoning request, finding it consistent with the City’s General Plan for the area, which designated the area for low-density residential development.

Neighborhood opposition to the rezoning was subsequently communicated to City Council members through letters and at public meetings. People voicing opposition primarily based their objection to the rezoning on their belief that higher-density development and lower-priced homes would increase crime and reduce property values. Based on the substance of these comments, their expectation of increased crime and lower property values was based on the “demographics” that they associated with the Hall Company’s other developments; the Hall Company was known for developing low and moderately priced homes, and its representative estimates that at least half of the purchasers of its homes were Hispanic. An example of the comments made by opposing neighbors includes a letter which stated that the rezoning will cater to a “group of people” with incomes of less than $75,000 that “statistically account for 91% of rape, murder, assault, armed robbery, etc.”2 Another [1045]*1045neighboring homeowner sent a letter imploring the City Council to consider the homes and neighborhoods that the Hall Company had built in the past and to notice the “higher rate of unattended juveniles roaming the streets.”3 The homeowner stated that “many of [the Hall Company’s] homes were not single family dwellings like they were designated to be and instead turned into multifamily dwellings which in turn led to more unattended juveniles and crime.”4 One neighbor questioned at a City Council public hearing why the City would try to “mix these groups,” referring to the property owners who would live in the Hall Company’s proposed development and those that live in the neighboring R-1-S subdivisions.5 Another homeowner voiced concerns about the “ownership demographic[s]” and indicated that while the nearby RV Village to the north of the Property had smaller lots, it nonetheless had “very different ownership demographics” than the “prospective owners of the houses that would be built [on the Property].”6 In September of 2008, the City Council denied the rezoning application. It had been three years since the Council had denied a rezoning application, approving over 60 requests.7

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Cite This Page — Counsel Stack

Bluebook (online)
217 F. Supp. 3d 1040, 2017 WL 1550414, 2017 U.S. Dist. LEXIS 66213, Counsel Stack Legal Research, https://law.counselstack.com/opinion/avenue-6e-investments-llc-v-city-of-yuma-azd-2017.