David Costas v. City of Park Hills, Kentucky

Court of Appeals of Kentucky·Decided June 13, 2025·No. 2024-CA-0312·Unpublished

Opinion

RENDERED: JUNE 13, 2025; 10:00 A.M.

NOT TO BE PUBLISHED

Commonwealth of Kentucky

Court of Appeals

NO. 2024-CA-0312-MR

DAVID COSTAS AND JASMINE COSTAS APPELLANTS

APPEAL FROM KENTON CIRCUIT COURT v. HONORABLE MARY K. MOLLOY, JUDGE ACTION NO. 23-CI-00621

CITY OF PARK HILLS, KENTUCKY APPELLEE

OPINION

AFFIRMING

** ** ** ** **

BEFORE: A. JONES, L. JONES, AND TAYLOR, JUDGES. TAYLOR, JUDGE: David Costas and Jasmine Costas appeal from a February 13, 2024, order of the Kenton Circuit Court which denied their motion for summary judgment in a declaratory judgment action, and granted summary judgment in favor of the City of Park Hills, Kentucky. We affirm.

BACKGROUND

The Costases’ residence is located in Park Hills, Kentucky, a home rule city in Kenton County. The Costases acquired their residence in 2020 and found it difficult to park on the street adjacent thereto. In 2022, the Costases sought to place a parking pad on the right-of-way at the front of their residence to avoid parking on the street. The Kenton County Planning and Development Services agency informed them that since the proposed pad was in the City’s right- of-way, their project was subject to various ordinances of the City of Park Hills.1 On October 2, 2022, the Costases submitted an Application for Encroachment Permit for their proposed parking pad, and described therein their plan to pave a 45-foot length of the grass between the sidewalk and curb, with no cuts to the curb.

The permit application was brought up for business at the Park Hills City Council meeting on October 10, 2022. After much discussion about the proposed parking pad, including parking and safety issues, the application was tabled and referred to the Infrastructure Committee. When the Costases’ attorney observed that their encroachment application met the requirements of the ordinance, he was informed that approval of the parking pad was within the City’s discretion.

1 The controlling ordinances look to Article V, Chapter 52 of the Park Hills Code of Ordinances, hereinafter referred to at times in this Opinion as the “City Code.”

The Infrastructure Committee held a meeting on October 19, 2022, at which the Costases presented their design plan and articulated the need for the proposal. The meeting minutes reflect that a discussion ensued for about 41 minutes over the Committee’s various concerns, including safety issues, regarding the parking pad application. The minutes also show the Committee felt a complicating factor was that the site was near a stop sign on the street.

At the next City Council meeting on October 24, 2022, Jasmine Costas spoke before the Council about their proposed project’s merits, and she raised questions about how other properties in Park Hills received approval for parking pads. The minutes reflect that she was provided answers, but no decision on the project was reached. Following the meeting, the Costases apparently made a demand on the City Clerk for issuance of the permit. On October 25, 2022, City Clerk Julie A. Alig sent a letter to the Costases’ attorney informing him that the encroachment permit application remained pending before the City Council and would be taken up at the next regular meeting when the Infrastructure Committee would report. The next day, October 26, 2022, the Park Hills City Attorney, Daniel R. Braun, sent a letter to the Costases’ attorney regarding the project. First, in response to the Costases’ open records requests, he noted that no other encroachment permit applications existed because other parking pads had been installed by the City as part of a city road project. Secondly, he stated in response

to the Costases’ demand to the City Clerk that the permit be issued “immediately,” that the Costases’ interpretation and applicability of Section 52.03 of the City’s Code was incorrect. He added that a resolution had been previously approved by the City Council in 1990 that provided approval of parking pads rests at the sole discretion of the City Council.

At the City Council meeting on December 12, 2022, Commissioner Elkins, who chaired the Infrastructure Committee, reported to the City Council that the Committee was not in favor of approving the Costases’ parking pad application due to safety concerns. Further discussions were undertaken by the Council, including whether the procedure for obtaining permission for a parking pad was governed by Chapter 52 of the City Code or the 1990 resolution, which had become out-of-date, regarding how parking pads were to be approved.2 The matter was again tabled because the City Attorney was not present at the meeting. The City Council ultimately addressed the issue at their meeting on February 13, 2023. After substantial discussion, a majority of the Council voted 5-1 to deny the Costases’ Application for Encroachment Permit.

On April 7, 2023, the Costases filed a complaint in the Kenton Circuit Court under Kentucky Revised Statutes (KRS) 418.040 and 418.045, for a

2 David Costas and Jasmine Costas’ attorney noted during the meeting that the resolution called for approval by the City of Park Hills Building Inspector and at the time of their proposal, the City of Park Hills no longer employed a building inspector.

declaration of rights concerning the parking pad and for an order requiring the City to issue the Costases a permit to construct the pad. The Costases moved for summary judgment on November 13, 2023, and filed a memorandum in support thereof. Their primary argument was that the permit for alterations to the right-of- way should have been automatically granted under the plain language of the Park Hills city ordinance governing permits. Section 52.03(A) states, “[s]uch permit shall be granted pursuant to application thereof or made to the Clerk/Treasurer in such manner and in such form as he or she may prescribe.” The Costases contended the word “shall” meant the issuance of the permit was mandatory, not discretionary by the City. They further argued that the City’s exercise of discretion in denying their application was arbitrary in violation of Section 2 of the Kentucky Constitution.

On December 8, 2023, the City filed a reply and a Counter Motion for Summary Judgment. The City argued that the Costases’ permit was given thorough vetting and consideration, so the allegations of arbitrariness were unfounded. The City asserted it has authority to exercise discretion and control over public rights-of-way. Further, the City took safety concerns into consideration in denying the application. The City also argued that the Costases misinterpreted the applicability of Section 52.03 of the Code, as it pertained to street and utility cuts, not right-of-way pads or encroachment permits. The Kenton

Circuit Court agreed with the City’s interpretation of its ordinance, as well as the 1990 resolution granting the City the discretion to approve the installation of parking pads. The Court found no evidence that the decision was arbitrary, nor that it violated Section 2 of the Kentucky Constitution. The court granted the City’s counter motion for summary judgment, and this appeal followed.

STANDARD OF REVIEW

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