Kismet Investors, Inc. v. County of Benton

617 N.W.2d 85, 2000 Minn. App. LEXIS 975, 2000 WL 1285413
CourtCourt of Appeals of Minnesota
DecidedSeptember 12, 2000
DocketC9-00-65
StatusPublished
Cited by8 cases

This text of 617 N.W.2d 85 (Kismet Investors, Inc. v. County of Benton) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kismet Investors, Inc. v. County of Benton, 617 N.W.2d 85, 2000 Minn. App. LEXIS 975, 2000 WL 1285413 (Mich. Ct. App. 2000).

Opinion

OPINION

LANSING, Judge

Kism'et Investors, Inc., appeals the district court’s decision affirming ■ Benton County’s denial of Kismet’s application for a variance to allow Bang’s on the Lake, an adult cabaret, to continue operating in its existing location. Kismet also appeals from the court’s summary judgment that the Benton County ordinance making King’s an unlawful use does not violate the First Amendment. Because we conclude that the county reasonably denied the variance and that the ordinance does not violate the First Amendment, we affirm.

FACTS

King’s on the Lake, also called King’s Inn, is a nude-dancing establishment or adult cabaret located in Benton County. Before September 1993, the building that now houses King’s housed several restaurants. When Bukaka, Inc., Kismet’s predecessor-in-interest, began operating King’s as an adult cabaret in September 1993, the county zoning and planning administrator notified Bukaka that it would need a conditional-use permit to operate an adult cabaret. See Bukalca, Inc. v. County of Benton, 852 F.Supp. 807, 809 (D.Minn.1993). Bukaka sought and obtained injunctive relief against Benton County’s conditional-use requirement on the grounds that it allowed Benton County administrators too much discretion to satisfy First Amendment requirements. See id. at 813 (granting preliminary injunction); see also Mga Susu, Inc. v. County of Benton, 853 F.Supp. 1147, 1154 (D.Minn.1994) (granting permanent injunction).

In June 1993, the Benton County Planning Commission began considering the need for an ordinance to govern adult-use establishments. In January 1994, the commission recommended to the Benton County Board of Commissioners a six-month moratorium on new adult uses in Benton County. The board passed the moratorium after a public hearing at which no adverse comments were received. On July 14, 1994, the planning commission recommended to the county board that it enact an amendment to the development code, designated Ordinance 242, to govern adult uses. The board, again after receiving no adverse comment at a public hearing, passed the ordinance on July 19, 1994.

Ordinance 242 permits adult uses in areas zoned B-l, B-2,1 — 1, and 1-2 so long as no adult use is located within 500 feet of any area zoned R-l, R-2, or R-3, or within 500 feet of any school, church, daycare facility, hotel, or public park. Benton County, Minn., Development Code § 7.10.2(A) (1998). The ordinance defines adult uses to include “adult enterprises, businesses or places open to some or all members of the public at or in which there *89 is an emphasis on the presentation, display, depiction or description of ‘specified sexual activities’ or ‘specified anatomical areas.’ ” Id. § 7.10.1. The ordinance designates existing adult uses as nonconforming uses until July 31, 1998, and unlawful uses after that date. Id. § 7.10.3.

Kismet purchased King’s in January 1997 and the land on which-King’s is located in January 1998. Kismet continued to operate King’s as an adult cabaret. On July 22, 1998, just days before King’s would become an unlawful use, Kismet applied to the Benton County Board of Adjustment for a variance from Ordinance 242.

At a public hearing on the variance application, the board heard testimony from Keith Keller, Kismet’s owner, and from many King’s employees. Keller testified that Kismet’s predecessors had made improvements to King’s that cost more than $300,000 and that these improvements made the building suitable only for an adult cabaret. King’s employees testified to personal hardships that they would suffer if no longer able to work at King’s. Bruce McGlaughlin, an expert planning consultant for King’s, testified that King’s met the criteria for a variance and that King’s did not cause the secondary effects that were the basis for enacting Ordinance 242. The board also heard testimony from Benton County citizens opposed to the variance.

In addition to testifying, McGlaughlin submitted a planning review that summarized his empirical study of King’s. The study concluded that King’s operation did not result in increased police calls or lower property values. The review also critically analyzed the studies from other municipalities and counties on which Benton County based its conclusion that adult uses lead to adverse secondary effects. McGlaughlin concluded that most of the studies were (1) misrepresented; (2) biased; (3) methodologically flawed; and/or (4) conducted under circumstances distinguishable from Benton County’s.

The board issued a written order denying the variance. The board found that King’s use was not prohibited in its current zoning district, but that the requested variance was not in harmony with the general purposes of the development code. The board further found that Kismet had not demonstrated a hardship unique to its property, and that the variance, if granted, would alter the family-neighborhood character of the area.

In response, Kismet brought this action, requesting that the district court (1) compel the county to grant a variance; (2) declare the ordinance unconstitutional; (3) declare unreasonable the amortization of King’s nonconforming use; (4) grant a temporary injunction prohibiting enforcement of the ordinance; and/or (5) find a taking and compel the county to condemn the land and pay fair value.

The district court denied Kismet’s motion for an injunction and affirmed the county’s denial of the variance. The county then moved for summary judgment on the remaining claims. The district court granted the motion against all claims except the constitutional claim. The court found a material issue of fact on whether there were alternative avenues of communication as required by the First Amendment and held an evidentiary hearing on that issue. Relying on evidence produced at the hearing that 100 alternative sites were available for adult uses in Benton County, the district court found the Benton County ordinance constitutional.

Kismet appeals the district court’s decision affirming the county’s denial of the variance and summary judgment ruling the Benton County ordinance constitutional.

ISSUES

I. Was the board’s denial of the variance unreasonable?

II. Does Ordinance 242 violate the First Amendment to the U.S. Constitution?

*90 ANALYSIS

I

A board of adjustment has broad discretion to grant or deny variances, and we review the exercise of that discretion to determine whether ' it was reasonable. VanLandschoot v. City of Mendota Heights, 336 N.W.2d 503, 508 (Minn.1983); Rowell v. Board of Adjustment, 446 N.W.2d 917, 921 (Minn.App.1989), review denied (Minn. Dec. 15, 1989). In determining reasonableness, we are guided by the standards set out in the relevant county ordinance, but a board’s authority to grant variances under the ordinance may not exceed the power granted by statute. Rowell, 446 N.W.2d at 921. When proceedings before a board are fair and complete, appellate review is based on the record of the board’s proceedings, not the district court’s findings or conclusions. Swanson v. City of Bloomington,

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Bluebook (online)
617 N.W.2d 85, 2000 Minn. App. LEXIS 975, 2000 WL 1285413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kismet-investors-inc-v-county-of-benton-minnctapp-2000.