Costco Wholesale Corp. v. Orange County

780 So. 2d 198, 2001 WL 85516
CourtDistrict Court of Appeal of Florida
DecidedFebruary 2, 2001
Docket5D00-1728
StatusPublished
Cited by1 cases

This text of 780 So. 2d 198 (Costco Wholesale Corp. v. Orange County) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Costco Wholesale Corp. v. Orange County, 780 So. 2d 198, 2001 WL 85516 (Fla. Ct. App. 2001).

Opinion

780 So.2d 198 (2001)

COSTCO WHOLESALE CORPORATION, a Washington Corporation, Appellant,
v.
ORANGE COUNTY, a political subdivision of the State of Florida, ABC Liquors, Inc., and Issa Saffar, d/b/a Liquor Plus, Appellees.

No. 5D00-1728.

District Court of Appeal of Florida, Fifth District.

February 2, 2001.

*200 Scott A. Glass of Shutts & Bowen, LLP, Orlando, for Appellant.

James F. Page, Jr., and G. Robertson Dilg of Gray, Harris & Robinson, P.A., Orlando, for Appellee, Orange County.

John F. Bennet of Fishback, Dominick, Bennett, Stepter, Ardaman, Ahlers & Bonus, Orlando, for Appellee, ABC Liquors, Inc.

PLEUS, J.

This case involves the balance between a landowner's constitutionally protected property rights and the police powers of a county.

Costco constructed two membership warehouse clubs in unincorporated Orange County. It sought to transfer two of its package store liquor licenses to these new locations. Both warehouses are less than 5,000 feet from existing package stores. Orange County has had an ordinance since 1955 prohibiting a package store from operating within 5,000 feet of another package store. A package store is defined in the ordinance to be an establishment which sells beer, wine and liquor for off site consumption.

In October of 1999, the Orange County Zoning Department proposed to the Planning and Zoning (P & Z) Commission that the portion of the ordinance with the distance restriction on package stores be repealed on the basis that it furthered no public health, safety, moral or welfare purpose.[1] According to the Zoning Department's presentation to P & Z, the greatest distance separation outside Orange County is in Dade County, where the distance is 1,500 feet. It noted that the current 5,000 foot separation requirement is "extreme when compared to other jurisdictions." The Zoning Director noted in his presentation that the regulation advances no particular zoning purpose but only serves to keep new package stores from locating within three square miles of long-established stores.[2] The Sheriff's Office of Orange County reported that no problems would be created by a repeal of the restriction.

P & Z recommended to the Board of County Commissioners (BCC) that the restriction be repealed, but the BCC, for unexplained reasons, never acted on the recommendation.

After the BCC failed to act on the P & Z recommendation, Costco sought a variance from Orange County which was denied. The transcript of the variance hearing before the BCC is enlightening because it clearly shows the main motivation for refusing to grant the variance was the economic protection of existing package stores owned by the interveners. The entire focus of the hearing was on the economic impact the variance might have. For example, Commissioner Mary Johnson stated, "So, you know, we do have concerns. I do because we do have retailers here that have liquor licenses and they are local people and I think we should support them." Commissioner Bob Freeman expressed his motivation this way: "We have business owners here that have abided by that distance, that also have expressed reservations about how it affects their property." *201 Commissioner Edwards stated, "I think it would be unfair to the others who have complied with the ordinance over the years to unilaterally change that on a variance and allow Costco to go in.... We need to safeguard those who have licenses and maybe perhaps allow others to go into these areas if they have consent of the license holder." Apparently three of the commissioners wanted to ignore the restriction and allow a constitutionally-protected property right if the "local people" would agree.

After denial of the variance requests, Costco filed for declaratory and injunctive relief, asserting the regulation was arbitrary and capricious, and requesting the ordinance be declared unconstitutional. The parties stipulated that the only issue of law to be determined was "whether the County's imposition of a 5,000 foot separation distance between package goods stores is a constitutional exercise of the police powers."

Our standard of review is de novo because the only question before us is the facial validity of the ordinance. See Village of Tequesta v. Loxahatchee River Environmental Control Dist., 714 So.2d 1100 (Fla. 4th DCA 1998).

We start with the presumption of constitutionality and the general rule that courts should try to uphold the constitutionality of the enactment when lawfully possible to do so. See Kane v. Robbins, 556 So.2d 1381 (Fla.1989). Despite this presumption, the constitutional right of property owners to make legitimate use of the property "may not be curtailed by unreasonable restrictions under the guise of police power." See Burritt v. Harris, 172 So.2d 820, 823 (Fla.1965). If the regulation "exceeds the bounds of necessity for the public welfare," it must be "stricken as an unconstitutional invasion of property rights." Id.

While the right to zone is inherent in the county's police power, the United States Supreme Court held in Village of Euclid, Ohio v. Ambler Realty Co., 272 U.S. 365, 395, 47 S.Ct. 114, 71 L.Ed. 303 (1926) that if such zoning has "no substantial relation to the public health, safety, morals, or general welfare," the ordinance should be declared unconstitutional. Our Florida courts have followed this rule as well. See Davis v. Sails, 318 So.2d 214, 222 (Fla. 1st DCA 1975) [quoting City of Miami Beach v. Lachman, 71 So.2d 148 (Fla.1953)]. Thus, when a zoning regulation is challenged, it is the first duty of the court to determine whether the challenged ordinance bears a substantial relationship to the public health, safety, morals or welfare. If it does not, the trial court should look no further as the regulation is unconstitutional.

The substantial relationship rule is substantive law. It may be simply stated as follows: In order for a regulation to be valid, the regulation must have "some substantial relationship to the promotion of the public health, safety, morals or general welfare." Davis, 318 So.2d at 218. Put differently, a zoning ordinance is invalid if it discloses no purpose to prevent some public evil or fill some public need.

As noted in Davis, the substantial relationship rule should not be confused with the "fairly debatable" rule, which is a rule of procedure or application and applies to the application of an otherwise constitutional ordinance. Id. at 216. The fairly debatable rule may be stated as follows: If the application of a regulation "to a specific parcel of property is reasonably subject to disagreement, that is, if its application is fairly debatable," then the regulation as applied must be upheld. Id. at 217.

At the trial, the court received into evidence the transcript of the pertinent P & Z and BCC hearing and heard testimony from the former Planning Director for Orange County, Ed Williams. Williams was called as an expert witness by the intervenor, ABC Liquors, in an effort to bolster the argument that the County need *202 only identify at least one legitimate governmental interest which the regulation is designed to protect. Once identified, argued ABC Liquors, the court should then determine whether there is a rational relationship between the goal of protecting that interest and the method being enacted to achieve the goal.

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Related

Orange County v. Costco Wholesale Corp.
823 So. 2d 732 (Supreme Court of Florida, 2002)

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Bluebook (online)
780 So. 2d 198, 2001 WL 85516, Counsel Stack Legal Research, https://law.counselstack.com/opinion/costco-wholesale-corp-v-orange-county-fladistctapp-2001.