Gracey General Partnership v. City of Clarksville, Tennessee

CourtDistrict Court, M.D. Tennessee
DecidedJanuary 10, 2025
Docket3:23-cv-01189
StatusUnknown

This text of Gracey General Partnership v. City of Clarksville, Tennessee (Gracey General Partnership v. City of Clarksville, Tennessee) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gracey General Partnership v. City of Clarksville, Tennessee, (M.D. Tenn. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF TENNESSEE NASHVILLE DIVISION

GRACEY GENERAL PARTNERSHIP, ) A Tennessee General Partnership, ) ) Plaintiff, ) ) Case No. 3:23-cv-01189 v. ) Judge Aleta A. Trauger ) CITY OF CLARKSVILLE, ) TENNESSEE; JOE PITTS, Mayor of the ) City of Clarksville, Tennessee; DAVID ) SMITH, Interim Head of the Department ) of Building and Codes of the City of ) Clarksville, Tennessee; and DEIDRE ) WARD, Director of the Department of ) Building and Codes of the City of ) Clarksville, Tennessee, ) ) Defendants. )

MEMORANDUM This case concerns a land developer’s demolition permit application. For the reasons set forth herein, the court will grant the defendants’ Motion to Dismiss (Doc. No. 11). I. FACTS This dispute is about the plaintiff’s attempt to obtain a permit to demolish a house (the “House”) located on approximately one acre of land at 517 Madison Street, Clarksville, Tennessee (collectively, the “Property”).1 (Doc. No. 1 ¶¶ 10–11.)

1 The plaintiff also complains about the defendants’ denial of a Disconnect Order that would have allowed CDE Light Band to disconnect electrical services at the Property. (See Doc. No. 1 ¶ 5.) The failure to approve disconnection of electrical services seems entirely dependent on the denial of the demolition permit and does not merit separate consideration. (See Doc. No. 39 at 12 n.3 (“The City purportedly denied the issuance of the CDE Lightband ‘Utility Disconnect Order’ on the basis that the demolition permit had not been issued.”).) The plaintiff, Gracey General Partnership (“Gracey”), has sued the City of Clarksville (the “City”) and three Clarksville officials, in both their individual and official capacities: Joe Pitts, Mayor of Clarksville; David Smith, Interim Head of the City of Clarksville Department of Buildings and Codes; and Deidre Ward, Director of the City of Clarksville Department of Buildings and Codes (collectively, the “individual defendants”). (Doc. No. 1 ¶¶ 3–6.) The parties

disagree about the requirements, under municipal law,2 to demolish a building within the zoning “overlay district” in which the Property sits. The plaintiff alleges that, in denying its demolition permit application, the defendants violated municipal law and the United States Constitution. For over a decade, non-party George Terrell owned the Property, which he used as a single- family residence. (Doc. No. 1 ¶¶ 10–11.) By an August 29, 2023 deed, Gracey acquired the Property from Terrell.3 (Doc. No. 1 ¶ 10.) Gracey is a Tennessee general partnership, the members of which are two Tennessee Investment Services Trusts—JDW II and JPW II. (Doc. No. 1 ¶ 2; Doc. No. 6.) Gracey’s managing partner is Jennifer Willoughby.4 (Doc. No. 1 ¶ 21.) Willoughby and her husband are the “beneficial owners of various affiliated business entities,” including

Gracey. (Doc. No. 16-1 ¶ 2.) They are also the beneficial owners of JPW LLC, which was Gracey’s agent in the purchase of the Property and for which Willoughby is a real estate agent. (Id.; see also Doc. No. 39 at 9.) Gracey’s sole business is the “acquisition of distressed real estate” within

2 The defendants have filed the relevant portions of Clarksville Zoning Ordinance (Doc. No. 12- 11) and Clarksville Property Maintenance Code (Doc. Nos. 12-12 through 12-15). 3 The defendants say that the plaintiff’s purchase of the Property was contractually contingent on securing a demolition permit for the House. (See Doc. No. 13-1 (citing Doc. 12-10 at 35:13–17, 39:22–23); Doc. No. 47 at 9.) The plaintiff does not contest this. If the defendants are correct, it is unclear why the sale went through. 4 The Complaint and the plaintiff’s Business Entity Disclosure Statement state that Gracey has only two members, neither of which are Jennifer Willoughby. (Doc. No. 1 ¶ 2; Doc. No. 6.) So, while the Complaint identifies Willoughby as Gracey’s “managing partner” (Doc. No. 1 ¶ 21), it appears that she acts as Gracey’s agent. (Accord Doc. No. 32 at 2 n.1.) Clarksville’s central business zone for development—either by demolishing and building multi- family housing or by converting existing buildings for mixed residential and commercial use. (Doc. No. 16-1 ¶¶ 3–4.) Part of downtown Clarksville, including the Property, is zoned within the Central Business District. (Doc. No. 1 ¶ 12.) In addition to zoning districts, Clarksville has several “overlay

districts,” which are subsets of zoning districts that impose additional requirements on property within them—building standards rather than property use.5 One overlay district is the Downtown Urban Design Overlay District (the “Downtown District”), the purpose of which is “to enhance the quality, image, and economic vitality of Downtown Clarksville” and therefore “imposes urban design guidelines.” Clarksville Zoning Ordinance § 9.5.1(1). The Downtown Urban Design Standards and Guidelines (the “Guidelines”) “are intended to preserve and enhance the special character of the Downtown Overlay District by encouraging rehabilitation and new construction that is sensitive to the existing urban form and historic character.” Id. § 9.5.3(1)(A)(2). At great length and detail, the Guidelines suggest or mandate design features for property within the Downtown District.6 The Property at issue in this case is within the Downtown District. (Doc. No.

1 ¶ 14.)

5 See, e.g., Clarksville Zoning Ordinance § 9.5.1(2) (“This overlay zoning district is placed ‘over’ the base zoning in an area in order to modify the base zoning’s regulatory standards. The overlay district alters such standards as building placement, size and height, parking and access, and landscaping and buffering, but does not determine the use of the property. The use of property (both land and structures) is governed by the underlying base zoning.”). 6 For instance, the Guidelines provide that awnings on commercial and mixed-use buildings within the Downtown District need not be retractable, but they should “appear to be.” Id. § 9.5.3(1)(D)(4)(b). Relevant to this case are provisions of the City Property Maintenance Code and Clarksville Zoning Ordinance regarding the Downtown District. The provision of the Property Maintenance Code on which the plaintiff relies states: Permits. Any owner, authorized agent, or contractor who desires to construct, enlarge, alter, repair, move, demolish, or change a residential building or structure or to cause any such work to be done, shall first make application to the housing official and obtain the required permit therefor. Ordinary minor repairs may be made with the approval of the housing official without a permit, provided that such repairs shall not violate any of the provisions of this code.

Clarksville Code Tit. 4 Ch. 6 § 4-601(j).

The two applicable Zoning Ordinance sections are as follows:

Government officials, property owners, developers, design consultants and other stakeholders will use this section to prepare improvement plans that are consistent with the Downtown Design Standards and Guidelines. The standards and guidelines apply to private nonresidential and multiple-family residential (excluding single-family and duplex structures) new construction, exterior remodeling or repainting; window and awning changes or improvements; signing changes and improvements; sidewalk changes and improvements; exterior lighting changes and improvements; and landscaping and parking lot construction, changes and improvements.

§ 9.5.1(3) (“Scope of Review”).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Emmett Mann v. John Brenner
375 F. App'x 232 (Third Circuit, 2010)
Employers Reinsurance Corp. v. Bryant
299 U.S. 374 (Supreme Court, 1937)
Conley v. Gibson
355 U.S. 41 (Supreme Court, 1957)
Adickes v. S. H. Kress & Co.
398 U.S. 144 (Supreme Court, 1970)
Monell v. New York City Dept. of Social Servs.
436 U.S. 658 (Supreme Court, 1978)
Baker v. McCollan
443 U.S. 137 (Supreme Court, 1979)
Patsy v. Board of Regents of Fla.
457 U.S. 496 (Supreme Court, 1982)
City of Cleburne v. Cleburne Living Center, Inc.
473 U.S. 432 (Supreme Court, 1985)
Washington v. Glucksberg
521 U.S. 702 (Supreme Court, 1997)
County of Sacramento v. Lewis
523 U.S. 833 (Supreme Court, 1998)
Erickson v. Pardus
551 U.S. 89 (Supreme Court, 2007)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Highway Materials, Inc. v. Whitemarsh Township
386 F. App'x 251 (Third Circuit, 2010)
Frank Perano v. Township of Tilden
423 F. App'x 234 (Third Circuit, 2011)
Ralph King v. Harvey Sloane, Mayor
545 F.2d 7 (Sixth Circuit, 1976)

Cite This Page — Counsel Stack

Bluebook (online)
Gracey General Partnership v. City of Clarksville, Tennessee, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gracey-general-partnership-v-city-of-clarksville-tennessee-tnmd-2025.