Cbc Joint Venture v. the City of the Village of Clarkston

CourtMichigan Court of Appeals
DecidedSeptember 25, 2018
Docket337750
StatusUnpublished

This text of Cbc Joint Venture v. the City of the Village of Clarkston (Cbc Joint Venture v. the City of the Village of Clarkston) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cbc Joint Venture v. the City of the Village of Clarkston, (Mich. Ct. App. 2018).

Opinion

STATE OF MICHIGAN

COURT OF APPEALS

CBC JOINT VENTURE, UNPUBLISHED September 25, 2018 Plaintiff-Appellee/Cross-Appellant,

v No. 337750 Oakland Circuit Court THE CITY OF THE VILLAGE OF LC No. 2015-149783-CZ CLARKSTON,

Defendant-Appellant/Cross- Appellee.

Before: TUKEL, P.J., and BECKERING and SHAPIRO, JJ.

PER CURIAM.

In this zoning dispute, defendant appeals by right the trial court’s order granting plaintiff summary disposition of its equal protection and substantive due process claims under MCR 2.116(C)(10) (no genuine issue of material fact). Plaintiff cross-appeals by right the trial court’s grant of summary disposition under subrule (C)(10) to defendant of plaintiff’s takings claims. We reverse in part, affirm in part, and remand for entry of summary disposition in favor of defendant on all counts.

I. BASIC FACTS

This case arises out of plaintiff’s application to have the property located at 59 S Main Street (the Property) in the city of the village of Clarkston rezoned from multiple-family residential to village commercial. The Property is located in the “downtown commercial core district.” The building located on the Property was built in 1903 and functioned as a house and office. The building was eventually converted to apartment use, and around 1975, was remodeled to “to accommodate boutique businesses with a small restaurant in the basement.” The parties do not dispute that the property was zoned for commercial use from 1975 to 1986, which is when plaintiff purchased the Property. It is undisputed that after plaintiff purchased the Property, the zoning was changed to multi-family residential, which was consistent with plaintiff’s plans to use the Property as an apartment building.

According to plaintiff, around 1994, Sharon Catallo, then the mayor of Clarkston, and her husband converted a historic church and parsonage into a restaurant (The Union) and general store, respectively. Those properties are located across S Main St. from the Property. The Union

-1- Woodshop, located a few buildings north of the Union, is also owned and operated by the Catallo family. Specifically, the restaurants are now owned by Sharon Catallo’s son, Curt Catallo.

Also relevant to this appeal is property directly north of the Property, 55 S Main St. In 2014, that property was rezoned from multiple-family residential to village commercial, the classification sought by plaintiff in this case. Prior to its rezoning, the property at 55 S Main St. had been in legal, nonconforming use as a dentist’s office. See Note 5, infra.

In February 2015, plaintiff applied for the Property to be rezoned to “village commercial,” with the intent of operating it as a bar and restaurant. The Property contains five apartment units, all of which were occupied during this litigation.

On March 2, 2015, the planning commission recommended that plaintiff’s request be granted. Richard K. Carlisle, a professional planning consultant retained by defendant, then analyzed plaintiff’s request. Carlisle found that the properties north of the Property and those on the east side of Main Street (across the street from the Property) were all zoned “village commercial.” He concluded that “a commercial use of the property would not be incompatible with the zoning and use of other properties in the immediate area.” Carlisle was aware that properties to the south were zoned multiple-family residential, but he reasoned that the Master Plan was outdated with respect to the Property (and 55 S Main St.) and suggested that it was improper for the Property to be in the downtown commercial core yet zoned for residential use. In conclusion, Carlisle was inclined to recommend the rezoning, but he suggested that the request should be “more narrowly refined.”

At a March 9, 2015 meeting, the city council tabled plaintiff’s rezoning request and sent it back to the planning commission for it to address the option of “conditional rezoning” of the Property. 1 Plaintiff submitted an amended application to rezone the Property specifically for use as a bar and restaurant. At an August 3, 2015 planning commission meeting, after public comment, a motion to approve plaintiff’s request was defeated. Prior to the city council meeting, William Basinger, the person who had made the motion to zone the property as multiple-family residential in 1986, wanted to present to the council members the reasoning for his position that the Property’s zoning should not change. Basinger set forth three main reasons why plaintiff’s request should be denied. Basinger stated that

[t]he request for rezoning is not consistent with the goals and objectives of our Master Plan which include preserving the historic character of the City as a defining trait of the community, protecting the viability of residential neighborhoods and having multiple family housing in the village center to contribute to the vitality of downtown businesses[.]

1 Larry Barnett, one of plaintiff’s principal members, elaborated that the “[the city council] wanted it sent back to the Planning Commission for contract zoning. So we presented [the planning commission] a contract plan so we could just do a bar/restaurant, not a funeral parlor or something.”

-2- Basinger also asserted that plaintiff had not provided sufficient evidence showing that it could maintain a reasonable return on investment. Further, Basinger noted that there was sufficient land available for restaurant use in the downtown area.

At an August 10, 2015 meeting, the city council, including Sharon Catallo, upheld the planning commission’s recommendation to deny conditional rezoning for the Property with a vote of six to one.

II. PROCEEDINGS BELOW

In October 2015, plaintiff brought suit, alleging that the rezoning denial deprived it of its constitutional rights to equal protection and substantive due process. Plaintiff also alleged that it was denied procedural due process because Sharon Catallo (along with Cara Catallo and William Basinger) had a conflict of interest and improperly influenced the other city council members. Additionally, plaintiff alleged that the zoning of the Property constituted a governmental taking because it was denied economically viable use of the Property.

The parties filed competing motions for summary disposition. The briefs largely focused on whether defendant had treated the Property differently from other properties in the downtown area and whether it had legitimate reasons for doing so. At oral arguments, defendant pointed out that the properties where the Catallo restaurants were located had been zoned for commercial use at the time they were converted to restaurants, and thus those other properties were distinguishable from the Property in that regard. Nevertheless, plaintiff maintained that it was being “singled out” for disparate treatment.

On January 4, 2017, the trial court agreed with plaintiff that the Property was being treated differently than similarly situated property and granted plaintiff summary disposition. The court noted that a “major reason” defendant articulated for the rezoning denial was the need for a “buffer”2 between non-residential and residential districts.

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Bluebook (online)
Cbc Joint Venture v. the City of the Village of Clarkston, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cbc-joint-venture-v-the-city-of-the-village-of-clarkston-michctapp-2018.