Handelsman v. Town of Palm Beach

38 Fla. Supp. 2d 101
CourtCircuit Court for the Judicial Circuits of Florida
DecidedDecember 12, 1989
DocketCase No. CL 88-4773 AJ
StatusPublished

This text of 38 Fla. Supp. 2d 101 (Handelsman v. Town of Palm Beach) is published on Counsel Stack Legal Research, covering Circuit Court for the Judicial Circuits of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Handelsman v. Town of Palm Beach, 38 Fla. Supp. 2d 101 (Fla. Super. Ct. 1989).

Opinion

OPINION OF THE COURT

MARY E. LUPO, Circuit Judge.

FINAL JUDGMENT FOR DEFENDANT

This case came before the court for non-jury trial on October 23, 24, 25, 26, 27, 31, and November 1, 1989. The case arises from enactment by the Town of Palm Beach of Section 2.10(47.2), Town of Palm Beach Zoning Ordinance, creating certain “town serving” commercial districts, the enactment of Section 6.40(1), Town of Palm Beach Zoning Ordinance, regulating special exception uses, and the application of these ordinances to property owned by the plaintiffs at 215-223 Worth Avenue in the Town of Palm Beach.

Before March, 1980, most of the Town’s commercial property, including Worth Avenue, was zoned to permit general commercial uses without regard to any square-foot limitations.

[102]*102Residents of the Town grew concerned about several factors: an increase in traffic; problems with parking; the displacement of small, neighborhood businesses by large, region-serving, retail establishments (like the Esplanade); and a rapid change in the Town’s character. The Town Council employed Adley Associates, Inc. to study the problems and to recommend solutions (D’s #1, 2). After receipt of the Adley study and recommendations, the Town Council adopted Ordinance 4-80 in March, 1980, dividing the C-A Commercial District into three separate districts: The C-WA, Worth Avenue District that includes the plaintiffs’ property; the C-TS, Town-Serving Commercial District; and the C-OPI, Office, Professional and Institutional District.

Both the C-WA and C-TS Districts enumerate various permitted uses and limit the maximum gross leasable area to 2,000 square feet. Ordinance 4.80 allows for special exceptions uses in excess of the 2,000 square-foot limitation provided:

That the proposed use will not attract the principal portion of its customers/clients from off-island locations.
The applicant shall submit evidence satisfactory to the Town Council that not less than 50% of the customers of the proposed use will be “Town Persons.” Section 6.40(1), Town of Palm Beach Zoning Ordinance. “Town Person(s)” are defined by Section 2.10(47.1) of the ordinance as “All full-time and seasonal residents as well as visitors staying at accommodations and employees working in establishments located within the town.”

Restaurants and clothing stores of fewer than 2,000 square feet are permitted uses in the C-TS District. In the C-WA District, however, restaurants of fewer than 2,000 square feet are special exception uses, although clothing stores of few than 2,000 square feet are permitted uses. (B. Schedule of Use Regulations, Town of Palm Beach Zoning Ordinance).

In July, 1983, Handelsman, an experienced real estate investor, acquired the property located at 215-223 Worth Avenue for $3.2 million. At the time of purchase, the property consisted of the Ta-Boo Restaurant, a real estate office, three retail shops, and a fifty-foot parcel in the rear of the building fronting on Peruvian Avenue. Except for the restaurant, none of the leased areas exceeded 2,000 square feet of gross leasable area allowed under the C-WA zoning designation. Because the restaurant pre-existed the 1980 zoning change, use of the property as a restaurant was “grandfathered” as a non-conforming, special exception use.

In late 1987, Handelsman began negotiations concerning 215-223 [103]*103Worth Avenue with The Limited Store, Inc. of Columbus, Ohio. The Limited had purchased the property immediately to the west of Handelsman’s, and was in the process of dividing the building into five retail stores, each not exceeding two thousand square feet, in conformity with the Town’s zoning ordinance. Handelsman rejected The Limited’s offer to purchase his property, and negotiated a lease. On March 10, 1988, Handelsman and The Limited executed a twenty-five year lease for the restaurant space formerly leased by Ta-Boo. Because the proposed use as a retail store of 7,000 square feet clearly exceeded the 2,000 square foot limitation in the Town’s zoning ordinance, the lease was conditioned upon the:

. . . Landlord obtaining a special exception from the Town Council of Palm Beach permitting the change in use of the Demised Premises from a restaurant to a retail store, or, alternatively, overturning the decision of the building official to the effect that a special exception is required in order to permit a change from the existing restaurant use to a retail use. ([’s #3).

On March 8,1988, the Town Council unanimously affirmed the decision of the building official that a special exception was required to change the use from restaurant to retail. The Council postponed consideration of the application for special exception until its next meeting.

On April 12, 1988, the Town Council unanimously denied Handelsman’s application for special exception. On April 28, 1988, The Limited executed its right of termination pursuant to the condition in the lease.

The plaintiffs’ four-count complaint was filed on May 28, 1988, and seeks relief as follows:

A. Count I is an action for declaratory judgment to invalidate the zoning ordinance on their faces and as applied;

B. Count II is an action for temporary and permanent injunctive relief to prevent the Town from denying the plaintiffs the right to use the property for a retail apparel business with a gross leasable area of more than 2,000 square feet;

C. Count III is an action for a taking. The plaintiffs seek compensation for the loss of all reasonable beneficial use and enjoyment of their property because of the Town’s enforcement of the zoning ordinances.

D. Count IV is a claim under 42 U.S.C. § 1983 based on alleged violations of procedural and substantive due process and equal protection.

[104]*104The court will address each count of the complaint.

A. Count I: Declaratory Judgment

In Count I, the plaintiffs challenge the constitutionality of the town-serving ordinance on its face and as applied.

The plaintiffs make three separate challenges to the constitutionality of the town-serving ordinance on its face: it is confiscatory; it is vague; it is not substantially related to the public health, safety, and welfare. The court finds that the ordinance is constitutional on its face.

Handelsman purchased the subject property after the 1980 enactment of the ordinance he now attacks. The evidence shows that he has purchased considerable additional property in the commercial areas of the Town and on Worth Avenue while this ordinance was in effect, and after its constitutionality was upheld by a prior judgment of another Circuit Judge. The evidence is uncontroverted that Handelsman’s property has more than doubled in value since he acquired it in July, 1983.

Where the property owner purchased the property in the face of the challenged zoning ordinance, and the property is worth more than the purchase price, and can be used and has a value for its use, the plaintiffs cannot claim that the ordinance is confiscatory. County of Brevard v Woodham, 223 So.2d 344 (Fla. 4th DCA 1969), cert. denied, 229 So.2d 872 (Fla. 1969). The ordinance is not confiscatory on its face.

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Bluebook (online)
38 Fla. Supp. 2d 101, Counsel Stack Legal Research, https://law.counselstack.com/opinion/handelsman-v-town-of-palm-beach-flacirct-1989.