Hallmark Developers v. Fulton County, Georgia

386 F. Supp. 2d 1369, 2005 WL 2230261
CourtDistrict Court, N.D. Georgia
DecidedSeptember 12, 2005
DocketCIV.A.1:02-CV1862ODE
StatusPublished
Cited by2 cases

This text of 386 F. Supp. 2d 1369 (Hallmark Developers v. Fulton County, Georgia) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hallmark Developers v. Fulton County, Georgia, 386 F. Supp. 2d 1369, 2005 WL 2230261 (N.D. Ga. 2005).

Opinion

ORDER

EVANS, District Judge.

The above-styled action, having come on for trial without a jury on May 31, June 1, and June 2, 2005, and the Court having considered the testimony, exhibits, briefs and arguments of counsel hereby finds and concludes as follows:

I. Background and Procedural Posture

This is a civil suit for declaratory and injunctive relief, as well as for compensatory damages, attorneys’ fees and costs, brought pursuant to the Fair Housing Act, as amended, 42 U.S.C. § 3601 et seq. This action stems from the Defendant’s denial of Plaintiffs’ request to rezone approximately 182 acres of land located in the southwest quadrant of Fulton County (“Subject Property” or “Hallmark development”).

On July 3, 2002, Plaintiffs filed the instant lawsuit, asserting that the denial of their proposed development on the Subject Property violates the Fair Housing Act, the Civil Rights Act, and the Fifth and Fourteenth Amendments to the U.S. Constitution and amounts to exclusionary zoning. Plaintiffs also alleged state law claims challenging the constitutionality of the existing zoning classification for the property. Two days later, on July 5, 2002, Plaintiffs filed an identical lawsuit in Fulton County Superior Court asserting the same state and federal law claims as in their federal suit. The state court action was stayed pending adjudication or dismissal of the previously filed federal suit.

Defendant filed a motion for summary judgment which was granted in part. Specifically, the Court granted summary judgment to Defendant on Plaintiffs’ federal equal protection and exclusionary zoning claims; held that Plaintiffs’ federal takings claim was not ripe and dismissed it without prejudice; and declined to exercise jurisdiction over Plaintiffs’ state takings claim. With regard to the Fair Housing Act claim, the Court found that Plaintiffs did not present evidence of discriminatory motive or intent in the zoning decision but denied Defendant’s motion in the face of Plaintiffs’ evidence that the decision had a disparate impact on African-Americans. Only this latter claim remains for determination.

II. Findings of Fact

The South Fulton County Planning Area is the part of Fulton County which is south of Camp Creek Parkway and Campbellton Road. (Tr. at 413). The South Fulton 2015 Land Use Plan adopted July 7, 1999, updated July 11, 2001, and amended August 7, 2002 covers this area. Pl.’s Ex. 17. The 2000 U.S. Census divided this area into eleven census tracts. 1 The overall population is more than 70% African-American, according to the 2000 Census data. However, four of the census tracts contain much lower percentages of black population, ranging from 31% to 54%. The property at issue in this case is in a tract with 54% black population; an adjoining tract to the east has 87% black population and the adjoining tract to the west is 42% *1372 black. South Fulton County, as defined, is sparsely populated when contrasted with nearby municipalities such as East Point, College Park, and Hapeville. 2 The contrast is even greater if the comparison is with the downtown Atlanta area.

While the South Fulton County Planning Area generally is less affluent than the rest of Fulton County, its black and minority population tends to be as affluent or more affluent than the white population. This is true for 10 of the 11 census tracts, including the one which encompasses the subject property.

The South Fulton 2015 Land Use Plan depicts a wide swath of land along both sides of the South Fulton Parkway which has been slated for mixed use development. It is denominated a Live/Work corridor. The idea is to integrate work places, shopping, entertainment, services, housing and community facilities in a pedestrian friendly environment. (Pl.’s Ex. 18 at 6.3). The uses contemplated for the Live/Work corridor include high density retail, service, office and institutional uses along with multi-family and single-family residential. (Pl.’s Ex. 18 at 6.3). The area currently is rural-residential in character. (Def.’s Ex. 3 at 3). The area is zoned agricultural and the minimum lot size is one acre. Land uses consist of detached single-family homes and vacant land. (Def.’s Ex. 3 at 3). The Subject Property is within the Live/Work corridor on the south side of South Fulton Parkway.

Plaintiffs Hallmark and Charles Garrison acquired the Subject Property via cash purchase (the portion along Koweta Road at $4,000 per acre in 2000, and the portion along Stonewall Tell at $9,500 per acre in 2001) with the express intention of developing a mixed use development, including commercial, office, and residential structures. (Tr. at 45-46, 50). The planned complex was to include 950 residential housing units, partly free-standing homes and partly townhomes/apartments. The development required that the land be rezoned.

Hallmark previously had developed more than 70 subdivisions in Gwinnett County, DeKalb County, Rockdale County, Coweta County, and Fulton County. (Tr. at 32). It has never forfeited a bond or been sued for defective work or development in any of its subdivisions. (Tr. at 39, 41). Its principal, Chris Doughtie, has won numerous awards including Gwinnett County Builder of the Year and several professionalism awards. (Tr. at 41). Since the 1990s, Hallmark has focused on building low-income housing and has been successful in this field. While Doughtie has also built “high end” homes through his other corporations, Hallmark made its reputation for building low-income residences.

At trial Doughtie explained that he considered the term “low income” to be the same as HUD’s definition, which is up to 80% of HUD’s Adjusted Median Family Income (“HAMFI”)(Tr. 69). In 2001-2002, the HAMFI for a family of four in the Atlanta Metropolitan Statistical Area was $71,200. 3 The HAMFI is used by HUD to define eligibility for financial ás- *1373 sistance in obtaining a mortgage. Hallmark uses the availability of HUD assistance as a selling point for its homes.

As a precursor to seeking rezoning of the Subject Property, Doughtie arranged for Fulton County Commissioner Bill Edwards, Beth McMillan, Joseph Johnson 4 and their staffs to visit Chestnut Lake, a low-income, single-family subdivision that Hallmark had developed in Dekalb County. (Tr. at 54). Chestnut Lake contains 700 lots. The homes initially were priced in the range of $89,000 to $130,000, but after changes were made the price range was from about $120,000 to $150,000. (Tr. at 43, 55). The majority of the homes had been built by Mayfield Homes, which is owned in part by Doughtie and his son, Sean. (Tr. at 40, 43, 57). During the visit, Doughtie told Edwards and the other County representatives that Mayfield Homes would construct the free-standing homes planned for the Subject Property (Tr. at 111-112) and that these homes would be similar in appearance and layout to those at Chestnut Lake.

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Bluebook (online)
386 F. Supp. 2d 1369, 2005 WL 2230261, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hallmark-developers-v-fulton-county-georgia-gand-2005.