City of Rio Rancho v. Cloudview Estates

New Mexico Court of Appeals·Decided June 11, 2010·No. 29,510·Unpublished

Opinion

1 This memorandum opinion was not selected for publication in the New Mexico Reports. Please 2 see Rule 12-405 NMRA for restrictions on the citation of unpublished memorandum opinions. 3 Please also note that this electronic memorandum opinion may contain computer-generated 4 errors or other deviations from the official paper version filed by the Court of Appeals and does 5 not include the filing date. 6 IN THE COURT OF APPEALS OF THE STATE OF NEW MEXICO

7 CITY OF RIO RANCHO, 8 Plaintiff-Appellant, 9 v. NO. 29,510 10 CLOUDVIEW ESTATES, LLC, 11 Defendant-Appellee.

12 APPEAL FROM THE DISTRICT COURT OF SANDOVAL COUNTY 13 Louis P. McDonald, District Judge

14 Montgomery & Andrews, P.A. 15 Randy S. Bartell 16 Sharon T. Shaheen 17 Santa Fe, NM

18 for Appellant

19 Foster, Rieder & Jackson, P.C. 20 J. Douglas Foster 21 Travis G. Jackson 22 Albuquerque, NM

23 for Appellee 24 MEMORANDUM OPINION 25 VANZI, Judge.

1 At issue in this appeal is the nature and extent of a drainage easement that 2 covers the entirety of a ten-acre parcel of land located within the City of Rio Rancho, 3 New Mexico. The City of Rio Rancho (the City) appeals the district court’s order 4 reversing the City’s administrative decision that denied Cloudview Estates, LLC’s 5 (Cloudview) request to vacate the drainage easement on the parcel. The City also 6 appeals the district court’s order granting summary judgment in favor of Cloudview 7 on Cloudview’s inverse condemnation claim and granting summary judgment in favor 8 of Cloudview as to all of the City’s claims against Cloudview. We reverse the district 9 court’s reversal of the City’s administrative decision. We also reverse the district 10 court’s grant of summary judgment, both as to Cloudview’s inverse condemnation 11 claim and as to the City’s claims. 12 BACKGROUND 13 The property at issue is a ten-acre parcel of land labeled “Parcel F” on the 14 recorded final plat (the Plat) of the Vista Hills West Unit 1 (VHWU1) subdivision in 15 Rio Rancho, New Mexico, dated October 18, 1985. AMREP Southwest, Inc. (Amrep) 16 was the original owner and subdivider of all property within the VHWU1 subdivision 17 boundaries. The entirety of Parcel F is labeled as a drainage easement on the Plat. 18 Parcel F is also the subject of a dispute between the City and Amrep regarding their 19 intent in designating Parcel F as a drainage easement. See City of Rio Rancho v.

1 AMREP Southwest, Inc., 2010-NMCA-___, ___ N.M. ___, ___ P.3d ___ (No. 28,709, 2 June 7, 2010). 3 Cloudview purchased Parcel F in November 2004 from Martin and Theresa 4 Mares who themselves had purchased the property from Amrep in March 2004. On 5 July 1, 2005, Cloudview submitted an application to the City’s Planning and Zoning 6 Board (PZB) to vacate the drainage easement and create a thirty-lot subdivision on 7 Parcel F. 8 The City initially approved the proposed subdivision; however, after protests 9 by neighboring property owners who claimed that Parcel F had been represented to 10 them as permanent open space when they purchased their properties, the PZB 11 withdrew its approval for the proposed subdivision and denied Cloudview’s 12 application to vacate the easement. Cloudview appealed the PZB’s decision to the 13 City’s Governing Body (CGB). The CGB upheld the PZB decision. The CGB 14 determined that, at the time of the original platting of VHWU1, Amrep and the City 15 intended that Parcel F be set aside as undevelopable open space. The CGB further 16 determined that “[g]iven the twenty-year lapse of time, the complete build-out of the 17 underlying subdivision, and the relative scale of development sought by Cloudview 18 . . . development of Parcel F at this time would violate the planning principles dictated 19 by City law in effect now and at the time of the approval of the original plat.”

1 Following the CGB’s denial of its appeal, Cloudview filed a complaint against 2 the City in federal district court alleging that the City’s refusal to vacate the drainage 3 easement on Parcel F deprived Cloudview of due process and requested review of the 4 City’s administrative decision denying Cloudview’s application to vacate the 5 easement. The federal district court dismissed Cloudview’s claims without prejudice. 6 After the federal court’s dismissal of Cloudview’s complaint, the City filed a 7 complaint in district court, naming both Amrep and Cloudview as defendants. In the 8 complaint, the City requested a declaratory judgment determining the ownership of 9 Parcel F and the nature and extent of the encumbrance of the drainage easement on 10 Parcel F. In response to the City’s complaint, Cloudview filed several counterclaims 11 against the City. Two of these counterclaims are at issue in this appeal. First, 12 Cloudview requested judicial review by the district court of the City’s administrative 13 decision denying Cloudview’s application to vacate the easement. Second, Cloudview 14 made a claim of inverse condemnation alleging that the City’s denial of Cloudview’s 15 application to vacate the drainage easement had resulted in a taking of Cloudview’s 16 property for public use without just compensation. Cloudview moved for partial 17 summary judgment on the City’s claims against Cloudview and also requested 18 summary judgment on its inverse condemnation claim. The district court reversed the 19 City’s administrative decision denying Cloudview’s application to vacate the drainage

1 easement and granted summary judgment in favor of Cloudview on Cloudview’s 2 claim of inverse condemnation and granted summary judgment in favor of Cloudview 3 on the City’s claims against Cloudview. As noted above, the dispute between Amrep 4 and the City is the subject of a separate appeal. We discuss each of the district court’s 5 rulings regarding Cloudview and the City in turn. 6 DISCUSSION 7 I. District Court’s Reversal of the City’s Administrative Decision 8 Sitting in its appellate capacity, the district court reversed the City’s 9 administrative decision that had denied Cloudview’s request that the City vacate the 10 drainage easement over Parcel F. The district court held that the City’s decision was 11 contrary to law and not supported by substantial evidence. The district court did not 12 state the underlying facts that were the basis of its decision. 13 The City argues that the district court erred in reversing the City’s 14 administrative decision because (1) Cloudview’s notice of appeal to the district court 15 was untimely, (2) the court improperly reweighed evidence and made findings of fact, 16 and (3) the City’s decision was based on substantial evidence and in accordance with 17 the law. We reverse the district court’s ruling because we conclude that the City’s 18 decision was in accordance with the law and based on substantial evidence; therefore, 19 we do not address the City’s remaining arguments.

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