Home Builders Ass'n v. City of Apache Junction

11 P.3d 1032, 198 Ariz. 493, 332 Ariz. Adv. Rep. 15, 2000 Ariz. App. LEXIS 152
CourtCourt of Appeals of Arizona
DecidedOctober 12, 2000
Docket2 CA-CV 99-0198
StatusPublished
Cited by14 cases

This text of 11 P.3d 1032 (Home Builders Ass'n v. City of Apache Junction) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Home Builders Ass'n v. City of Apache Junction, 11 P.3d 1032, 198 Ariz. 493, 332 Ariz. Adv. Rep. 15, 2000 Ariz. App. LEXIS 152 (Ark. Ct. App. 2000).

Opinion

OPINION

BRAMMER, Presiding Judge.

¶ 1 Appellants, Home Builders Association of Central Arizona and several corporate home builders, appeal from the superior court’s judgment concluding that the City of Apache Junction (the City) had statutory authority to pass an ordinance that imposes development fees on residential developments for school capital finance purposes. Concluding that no such authority exists, we reverse and remand.

Facts and Procedural History

¶2 In an apparent attempt to assist the Apache Junction Unified School District (the District), in December 1997, the Mayor and City Council of the City passed Ordinance 1014 (the Ordinance), which amended the City’s code, effective March 1998. 1 The Ordinance assesses a fee for “any building permit” issued for single family, multi-family, or mobile or manufactured homes, and cites A.R.S. § 9-463.05 as the authority for its adoption and the imposition of the fee. The amount of the fee varies depending on the type of dwelling unit, with single family homes ^generating the highest fee and multifamily units the lowest. The purpose of the Ordinance was to raise funds to defray the costs associated with new school construction within the District occasioned by occupancy of new housing facilities within the City.

¶ 3 The day after the Ordinance was adopted, the City and the District entered into an intergovernmental agreement, pursuant to A.R.S. § 11-952. The agreement provides, inter alia, that funds raised by the City pursuant to the Ordinance would be “transferred” to the District for “additional necessary capital school facilities to serve population growth within the ... City as it exists now or as it may be increased in the future.”

¶ 4 Appellants filed this action seeking declaratory, injunctive, and special action relief, the latter pursuant to Rules 3(b) and 3(c), Ariz. R.P. Special Actions, 17B A.R.S. Appellants alleged that the City had no authority *496 to enact the Ordinance under § 9-463.05, that article XI, §§ 1 and 2, of the Arizona Constitution essentially precluded the fee, that the fee was an “unauthorized tax,” and that its imposition violated their due process and equal protection rights, thereby violating 42 U.S.C. § 1983. Appellants sought a judgment declaring that the Ordinance was “unlawful, arbitrary and capricious and in excess of the legal authority of the [City] under Arizona law,” and requested special action and injunctive relief to prevent the City from assessing the fee. Appellants further requested an accounting of the fees already paid as well as their return and prejudgment interest thereon. The trial court granted the District’s motion to intervene in support of the Ordinance’s validity.

¶5 Appellants also sought certification to maintain the action as a class action, pursuant to Rule 23, Ariz.R.Civ.P., 16 A.R.S., requesting relief on behalf of “all entities” who had been charged and who had paid fees to the City pursuant to the Ordinance. They sought a return of the fees, also alleging that, by collecting the fees, the City had deprived the class members of due process of law.

¶ 6 Rather than litigating appellants’ request for class certification, civil rights claims, damages, and other issues, the parties stipulated that the trial court should first decide the threshold question of whether the Ordinance was authorized under Arizona law. Although the issue raised a question of law, the trial court held an evidentiary hearing that addressed the social and economic background against which the fee was imposed. 2 After that hearing, the trial court concluded that enactment of the Ordinance was a proper exercise of the City’s power under A.R.S. §§ 9-463.05, 9-240(B)(18), 9-240(B)(21)(a), 9-276(A)(16), 9-276(A)(23), and 9-499.01. 3 Accordingly, it denied appellants’ request for declaratory, injunctive, and special action relief and entered judgment in favor of the City and the District pursuant to Rule 54(b), Ariz.R.Civ.P., 16 A.R.S. Appellants appeal from that judgment. 4

Standard of Review

¶ 7 The central question we must resolve is whether the Ordinance is authorized under either § 9^463.05 or any of the other statutes on which the trial court relied. This presents an issue of statutory interpretation, a question of law that we review de novo. Tallent v. National Gen. Ins. Co., 185 Ariz. 266, 915 P.2d 665 (1996); Lavidas v. Smith, 195 Ariz. 250, 987 P.2d 212 (App. 1999). The adoption of the Ordinance is a legislative act that carries a presumption of validity. See Home Builders Ass’n of Central Arizona v. City of Scottsdale (City of Scottsdale II), 187 Ariz. 479, 930 P.2d 993 (1997).

¶ 8 The City and the District argue that we must accord the City’s decision to impose the development fee “considerable deference” or must uphold the Ordinance unless it was enacted “arbitrar[ily] and without factual justification.” City of Scottsdale II, 187 Ariz. at 482-83, 930 P.2d at 996-97; see also Home Builders Ass’n of Central Arizona v. City of Scottsdale (City of Scottsdale I), 179 Ariz. 5, 875 P.2d 1310 (App.1993) (court should defer to municipality’s findings that development fee will result in beneficial use and is reasonably related to burden imposed on municipality by development unless those findings are arbitrary, erroneous, and wholly unwarranted). Our resolution of the legal issue here, however, does not hinge on evaluating or questioning the “factual underpinning” or “wisdom” of the City’s legislative decision embodied in the Ordinance. Id. at 482, 875 P.2d 1310, 930 P.2d at 996. Rather, our focus is on whether any legal authority *497 exists for the City to take the action it did. See City of Scottsdale I, 179 Ariz. at 7, 875 P.2d at 1312 (although courts generally defer to municipalities’ legislative determinations of factual matters, municipalities nonetheless “may not use fees for any purpose or in any manner that will not meet the statutory requirements”).

Legal Framework

¶ 9 We set forth below selected parts of the Ordinance to which the parties primarily direct their arguments:

WHEREAS, A.R.S.

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Bluebook (online)
11 P.3d 1032, 198 Ariz. 493, 332 Ariz. Adv. Rep. 15, 2000 Ariz. App. LEXIS 152, Counsel Stack Legal Research, https://law.counselstack.com/opinion/home-builders-assn-v-city-of-apache-junction-arizctapp-2000.