BAS Enterprize, Inc. v. City of Maumee

282 F. Supp. 2d 673, 2003 U.S. Dist. LEXIS 16464, 2003 WL 22174596
CourtDistrict Court, N.D. Ohio
DecidedSeptember 22, 2003
Docket3:02 CV 7583
StatusPublished
Cited by2 cases

This text of 282 F. Supp. 2d 673 (BAS Enterprize, Inc. v. City of Maumee) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BAS Enterprize, Inc. v. City of Maumee, 282 F. Supp. 2d 673, 2003 U.S. Dist. LEXIS 16464, 2003 WL 22174596 (N.D. Ohio 2003).

Opinion

MEMORANDUM OPINION

KATZ, District Judge.

This matter is before the Court on Plaintiffs’ motion for summary judgment (Doc. No. 12) and Defendants’ cross-motions for summary judgment (Doc. No. 20). Plaintiffs have filed a combined response and reply (Doc. No. 80) and Defendants have filed a reply (Doc. No. 31). Also pending before the Court is Plaintiffs’ motion to refund TRO Bond (Doc. No. 13) as to which Defendants have filed a response (Doc. No. 18). Defendants have also filed a motion for attorney’s fees (Doc. No. 26) as to which Plaintiffs have filed a response (Doc. No. 29) and Defendants have filed a reply (Doc. No. 32).

The Court has jurisdiction to decide this matter pursuant to 28 U.S.C. § 1331, 28 U.S.C. § 1343, 28 U.S.C. § 2201 & 2202, 42 *676 U.S.C. § 1983 and 28 U.S.C. § 1367. For the reasons stated below, Plaintiffs’ motion for summary judgment will be denied. Defendant’s cross-motion for summary judgment will be granted. Plaintiffs’ motion to refund TRO bond will be granted. Defendants’ motion for award of attorney’s fees in connection with contempt proceeding will also be granted.

Background

On May 30, 2002, Plaintiff BAS Enter-prize, Inc., d/b/a as Halo Ventures, Inc. (“Halo Ventures”) entered into a lease agreement ■with Plaintiff BAJA Investments LLC (“BAJA”) for the property located at 1500 Holland Road (the “property”) in the City of Maumee, Ohio (“Mau-mee”). The lease agreement became effective on June 1, 2002. On that same day, Halo Ventures submitted an application for a building permit to Maumee’s Division of Budding and Zoning within the Department of Public Safety, which included blue prints that included a label “No Change In Use.” 1 At that point in time, the property was zoned by Maumee as a C-2 General Commercial District.

On June 3, 2002, the Maumee City Council (the “City Council”) unanimously voted to approve as an emergency amendment to its Zoning Code (the “Code”), Ordinance No. 88-2002 (the “Ordinance”), following the recommendation of the Municipal Planning Commission, to which it had previously referred the Ordinance. 2 The Municipal Planning Commission had considered the Ordinance at a public hearing on May 28, 2002. The Ordinance added definitions to Section 1103.01 of Code for sexually oriented businesses, adult entertainment, and adult uses of land.

Moreover, the Ordinance also amended Section 1127.02 of the Code to require that a sexually oriented business locate within the M-2 Industrial District, where such business would be a permitted use. The Ordinance does not completely ban adult establishments, but allows adult cabarets 3 and other sexually oriented businesses featuring nude dancing, and display of specified anatomical areas 4 and specified sexual activities 5 to operate in the M-2 Industrial District. (Doc. No. 12, Mohler Aff., Ex. *677 2(B), p. 7). The Ordinance also included several performance standards such as spacial and/or distance requirements and the limitation that no sexually oriented business may locate within one-thousand (1000) feet of a residential zoning district, library, education institution, park, recreational facility, religious place of worship, child day care facility, playground, swimming pool or any planned unit development that includes residential land uses.

On July 18, 2002, Maumee provided Halo Ventures with the requested building permit (the “permit”). Prior to issuing the permit, however, Bruce Wholf (“Wholf’), Maumee’s Building and Zoning Inspector, issued two Correction Letters dated June 12 and June 26, 2002 due to deficiencies in the documents Halo Ventures had submitted on May 30, 2002. Pursuant to the permit, Halo Ventures began internal renovations to the property. A substantial amount of correspondence and conversations between Maumee and Halo Ventures then took place as Wholf tried to determine if the intended use of the property was for a sexually oriented business.

Halo Ventures completed renovations to the property and applied for a Certificate of Occupancy on October 17, 2002. The application described the intended use of the property as a “Restaurant, Bar, Nightclub, Live entertainment.” (Doc. No. 21, Wholf Aff., Ex. 3(H)). On October 30, 2002, Wholf sent Halo Ventures a letter asserting that the reference to live entertainment on the Certificate of Occupancy application raised a concern that the property would be used for the purposes of a sexually oriented business, which was prohibited in the C-2 General Commercial District under the Code as amended by the Ordinance. He emphasized that this was not the first time this issue had arisen. Wholf maintained Halo Ventures needed to provide further information regarding the intended use to ensure compliance with the Code.

On October 31, 2002, Halo Ventures responded that the intended use and operation of business as set forth in its application for a Certificate of Occupancy would be consistent with the prior use of the property, and again requested Maumee to make the necessary inspection. Wholf then responded on November 5, 2002, reiterating his ongoing concerns about the nature of the intended use and its conformity withe Code, which he was responsible for enforcing. Halo Ventures sent further correspondence including a letter dated November 11, 2002, which maintained that “the live entertainment to be presented at 1500 Holland Road will be in full compliance with the City of Maumee Zoning Code and will not constitute a ‘sexually oriented business’ as defined in the City Zoning Code.” Id. at Ex. 3(M).

Though neither a Certificate of Occupancy nor a food service permit had been issued, Halo Ventures opened for business on November 21, 2002, operating as XO, presenting expressive entertainment and dance performances. That same evening, Wholf issued an administrative order closing XO and posted notices of illegal occupancy. On December 6, 2002, Plaintiffs filed a nine (9) count Verified Complaint seeking declaratory, injunctive and monetary relief. 6 Plaintiffs also filed a motion *678 for a preliminary injunction, along with a motion for a TRO seeking to prevent Defendants’ from enforcing the administrative order and the Ordinance. On June 9, 2002, the Honorable John W. Potter held a hearing on Plaintiffs’ motion for a TRO and ordered Defendants “to perform an inspection for the issuance of a certificate of occupancy to plaintiffs and to issue a ruling to plaintiffs regarding their application for a certificate of occupancy forthwith.” (Doc. No. 4).

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282 F. Supp. 2d 673, 2003 U.S. Dist. LEXIS 16464, 2003 WL 22174596, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bas-enterprize-inc-v-city-of-maumee-ohnd-2003.