Fox Run 1 v. Springville City

CourtDistrict Court, D. Utah
DecidedJuly 17, 2024
Docket2:20-cv-00223
StatusUnknown

This text of Fox Run 1 v. Springville City (Fox Run 1 v. Springville City) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fox Run 1 v. Springville City, (D. Utah 2024).

Opinion

THE UNITED STATES DISTRICT COURT DISTRICT OF UTAH

FOX RUN I, LLC, a Utah Limited Liability MEMORANDUM DECISION AND Company, ORDER GRANTING [94] DEFENDANT’S MOTION FOR Plaintiff, SUMMARY JUDGMENT

v. Case No. 2:20-cv-00223-DBB-DBP

CITY OF SPRINGVILLE, a Utah District Judge David Barlow municipality,

Defendant.

Before the court is Defendant City of Springville’s (“Springville”) Motion for Summary Judgment, which seeks to dispose of Plaintiff Fox Run I, LLC’s (“Fox Run”) federal constitutional claims.1 For the following reasons, the court GRANTS Springville’s motion. BACKGROUND This case arises from the denial of a building permit for a senior living facility in Springville, Utah. In 2014, Springville adopted a definition of “Senior Independent Living Facility” that did not include an age restriction,2 and beginning in 2016, Fox Run sought to apply for a building permit for a Senior Independent Living Facility utilizing the definition that did not include an age restriction (the “Project”).3 In 2017, Springville adopted a new definition for “Senior Independent Living Facility” that restricted use to individuals aged 55 and older.4 The

1 Springville’s Mot. for Summ. J. (“Def.’s Mot.”), ECF No. 94. 2 Id. at 11; Pl.’s Opp’n to Mot. for Summ. J. (“Pl.’s Opp’n”) 3, ECF No. 103. 3 Def.’s Mot. 11; Pl.’s Opp’n 3. 4 Def.’s Mot. 11; Pl.’s Opp’n 3. parties dispute whether Fox Run had applied for final approval for the Project prior to the definitional change.5 Nevertheless, in 2017, the parties entered into a Settlement Agreement in an attempt to resolve their dispute.6 Under the Settlement Agreement, the parties agreed that no age restriction would apply to the Project and that Fox Run would have a vested property interest to construct the Project as shown in the development plans attached as Exhibit B to the Settlement Agreement.7 In addition, the parties agreed that “no building permit application has been submitted” for the Project and that “each building permit application shall go through [the] City’s building permit process.”8 Next, the parties agreed that Fox Run would resolve Springville’s redlines on its development plans before it applied for a building permit.9 And Fox Run agreed “that the building exterior

elevations and interior plans shown on [Exhibit B] will be the building elevations and interior plans for the buildings constructed within the Project[.]”10 Fox Run agreed to follow a particular timeline for its application for a building permit: e. Section 11-7-409 of the Springville City Code requires that a building permit for an approved site plan must be applied for within six months and allows for one six month extension. The parties agree that Fox Run’s Site Plan validity of approval timeframe to apply for a building permit for Phase 1 of the Project . . . shall commence as of the date when resolution of all contingencies or redline comments for all phases of the Development Plans are completed, as determined by City[.] City shall notify Fox Run of the Commencement Date by sending a written notice to Fox Run[.]

5 See Def.’s Mot. 11; Pl.’s Opp’n 3. 6 See Am. Compl. ¶ 14, ECF No. 61; Settlement Agreement and General Release of All Claims (“Settlement Agreement”), ECF No. 81-1. 7 Settlement Agreement ¶¶ 2, 4(a); see also id., Ex. B. 8 Id. ¶ 4(d). 9 Id. ¶ 4(a), (b). 10 Id. ¶ 4(i). f. Fox Run’s Site Plan approval timeframe to apply for a building permit for Phase 1 of the project under section 11-7-409 of the Springville City Code will be extended from six-months to one year.11 Finally, the parties released prior claims and limited remedies for any breach of the Settlement Agreement.12 Following settlement, Fox Run submitted its proposed site plan, and Springville prepared redlines.13 Fox Run then submitted a revised plan that addressed some of the City’s redlines but, according to Springville, it also made changes to the stipulated “Exhibit B” plan from the Settlement Agreement.14 Springville sent an email to Fox Run notifying it of the discrepancies.15 The parties met on October 8, 2018, and Fox Run agreed to revise the site plan according to Springville’s concerns.16 On October 18, Fox Run provided its revised site plan,17 and on November 15, 2018, Springville approved Fox Run’s site plan, which listed the Commencement Date as November 8, 2018.18 In late October and early November 2019, Fox Run submitted to Springville materials for its application for a building permit.19 Around that same time, Fox Run missed a mortgage payment on the property.20 On November 25, Mr. John Penrod—the Springville City Attorney—notified Fox Run that it did not submit a complete building permit application within one year of the

11 Id. ¶ 4(e), (f). 12 Id. ¶¶ 10–11. 13 Def.’s Mot. 14; Pl.’s Opp’n 5–6; see also Decl. of Laura Thompson ¶¶ 4–5, ECF No. 94-1. 14 See Sept. 5 Email from Glen Goins, ECF No. 94-2; see also Def.’s Mot. 14–15; Pl.’s Opp’n 6. 15 Sept. 5 Email from Glen Goins. 16 Oct. 8 Email from Steven Kelly, ECF No. 94-3; see also Def.’s Mot. 15; Pl.’s Opp’n 6. 17 Oct. 18 Email from Steven Kelly, ECF No. 94-5; see also Def.’s Mot. 15; Pl.’s Opp’n 6. 18 Nov. 15 Letter from Glen Goins, ECF No. 8-2 Ex. 5; see also March 29 Email from Steven Kelly, ECF No. 94-6 (describing corrections to a typographical error on the original letter). 19 See Am. Compl. ¶ 32; Answer to Am. Compl. ¶ 32, ECF no. 81. 20 Pl.’s Responses to Springville’s Requests for Admission, Response No. 3, ECF No. 94-14. Commencement Date.21 According to Mr. Penrod, Fox Run did not submit “any heating/cooling

load calculations and duct design or structural engineering with endorsement [and] calculations.”22 In addition, Mr. Penrod claimed that the building elevations and interior plans shown in the application materials differed from the Exhibit B site plan.23 Accordingly, Mr. Penrod notified Fox Run that its vested rights under the Settlement Agreement were terminated.24 On December 6, 2023, Mr. Josh Yost—Springville’s Community Development Director—issued a decision denying the building permit application on the basis that it was incomplete.25 And again, on December 10, 2019, Mr. Yost informed Fox Run that an additional reason for denial of the application was because the building plans differed from those in Exhibit B.26 On March 4, 2020, Fox Run’s lender notified Fox Run of its intention to foreclose upon the

property.27 In July 2020, the property on which Fox Run had intended to build the senior living facility was sold in a foreclosure sale.28 Fox Run initially filed suit in April 2020.29 On December 15, 2021, Fox Run filed its Amended Complaint, alleging: breach of contract, breach of the implied covenant of good faith and fair dealing, deprivation of procedural due process under state and federal law, deprivation of substantive due process under state and federal law, equal protection violation under state and federal law, and inverse condemnation under state and federal law.30 In response to Springville’s

21 See Nov. 25, 2019 Letter from John Penrod, ECF No. 94-10. 22 Id. 23 Id. 24 Id. 25 See Dec. 6, 2019 Letter from Josh Yost, ECF No. 94-11. 26 See Dec. 10, 2019 Letter from Josh Yost, ECF No. 94-12. 27 Notice of Default and Election to Sell, ECF No. 94-15. 28 See Def.’s Mot. 19–21; Pl.’s Opp’n 10. 29 See Compl., ECF No. 2. 30 See Am. Compl. ¶¶ 77–131. motions to dismiss,31 the court dismissed Fox Run’s breach of contract and breach of the implied

covenant of good faith and fair dealing claims,32 as well as Fox Run’s state constitutional claims.33 Accordingly, all that remains are four federal constitutional claims.

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Fox Run 1 v. Springville City, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fox-run-1-v-springville-city-utd-2024.