KRR Investments, LLC v. County of Grundy

2021 IL App (3d) 190130
Appellate Court of Illinois·Decided July 22, 2021·No. 3-19-0130·Published

Opinion

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

2021 IL App (3d) 190130

Order filed July 22, 2021

IN THE

APPELLATE COURT OF ILLINOIS THIRD DISTRICT

2021

KRR INVESTMENTS, LLC, an Illinois ) Appeal from the Circuit Court Limited Liability Company, and FIRST ) of the 13th Judicial Circuit, MIDWEST BANK, as Trustee of Trust No. ) Grundy County, Illinois 8823, )

)

Plaintiffs-Appellees, ) Appeal No. 3-19-0130 )

v. ) Circuit No. 13-CH-141 )

THE COUNTY OF GRUNDY, a Body ) Corporate and Politic of the State of Illinois, ) The Honorable ) Lance R. Peterson

Defendant-Appellant. ) Judge, Presiding.

JUSTICE LYTTON delivered the judgment of the court. Presiding Justice McDade and Justice O’Brien concurred in the judgment.

ORDER

Held: (1) Trial court’s order remanding matter to county board for further proceedings on special use application was not final and appealable;

(2) trial court’s ruling that zoning ordinance was arbitrary and capricious as applied to plaintiffs’ property was supported by the evidence where property was zoned Industrial but used only for farming; and (3) trial court’s declaration that plaintiffs’ proposed use of property was reasonable did not usurp role of county board.

¶1 Plaintiffs KRR Investments and First Midwest Bank filed an application with defendant County of Grundy seeking (1) a map amendment rezoning their property from Industrial to Agricultural, and (2) a special use permit to operate a recreational vehicle (RV) campground on their property. Defendant denied plaintiffs’ request for a map amendment and refused to consider their request for a special permit. Plaintiffs filed a complaint in circuit court seeking declaratory judgment and injunctive relief. The circuit court entered orders finding that (1) defendant’s zoning ordinance was arbitrary and capricious as applied to plaintiffs’ property, and (2) plaintiffs’ proposed use of their property was reasonable. Defendant appeals those orders. We affirm.

¶2 BACKGROUND

¶3 In 2007, plaintiffs purchased approximately 44 acres of land in Goose Lake Township, Grundy County. Plaintiffs purchased the property from a bank that had foreclosed on the land. The property was vacant, unused and for sale for seven to eight years before plaintiffs’ purchase. Midwest Bank owns 11.8 acres of the property, as trustee of Trust No. 8823, and KRR owns the remainder of the property. KRR is the beneficiary of Trust No. 8823. Plaintiffs’ property consists of unimproved farmland. Approximately 10.2 acres of the 11.8 acres owned by First Midwest is located in a floodplain and/or floodway of the Kankakee River.

¶4 Plaintiffs’ property is zoned Industrial, according to the Grundy County Zoning Ordinance in effect at the time of plaintiffs’ purchase. The eastern boundary of the property is the Kankakee River. The property to the west is zoned Industrial and used primarily as farmland. The area south of the property is zoned Industrial and used for industrial purposes. The property to the north is zoned Agricultural Residential and contains a residential subdivision.

¶5 Defendant adopted the Grundy County 2020 Comprehensive Land Use Plan in 2005. That plan, which was in effect when plaintiffs purchased the subject property, states that one of its

objectives is to “promote environmentally supportive recreational uses of lands in flood plains and areas adjacent to waterways.” It further states: “In order to provide adequate recreational facilities in the region, a tremendous increase in the amount of park camp sites *** will be needed.” The map accompanying the Land Use Plan identifies plaintiffs’ property as “Commercial Recreation.”

¶6 In 2010, defendant enacted the Grundy County Unified Development Ordinance, which permits campgrounds and recreational vehicle (RV) parks in property zoned Agricultural, subject to a special use permit. The ordinance sets forth the requirements for RV parks and campgrounds and states that the purpose of those facilities is to offer “alternative uses for marginally productive farmland.”

¶7 On October 12, 2012, plaintiff KRR, on behalf of itself and Trust No. 8823, filed a written application with defendant requesting an amendment to the zoning of the 11.8 acres of property owned by First Midwest Bank. KRR sought to have the property rezoned from Industrial to Agricultural and requested the issuance of a special use permit to allow KRR to operate a seasonal campground on the property.

¶8 After local and state agencies reviewed the application, defendant’s Land Use Committee issued 14 special use conditions for the campground. KRR agreed to abide by those conditions. Thereafter, the Grundy County Planning Committee reviewed KRR’s application. After its review, the Planning Committee recommended that the Grundy County Planning and Zoning Committee approve the application. The Planning and Zoning Committee next reviewed the application and recommended that it be placed before the County Board.

¶9 On April 16, 2013, a public hearing was held before the Grundy County Zoning Board of Appeals. Robert Schmude, a professional engineer, testified that the property owned by plaintiffs is currently being used as farmland, but the portions of the property occupied by wetlands and

woodlands are not farmed. Schmude estimated that all but six-and-a-half to seven acres of plaintiffs’ property is occupied by a floodplain or floodway.

¶ 10 Jay Heap, a real estate appraiser, testified that KRR’s proposed campground would not negatively affect property values in the area. He based his opinion on the existence of campground facilities throughout the state that adjoin residential properties.

¶ 11 Darryl Harrison testified that plaintiffs’ property has been “barely farmed” for the past 20 years. He expressed concerns that KRR’s proposed campground would lower nearby property values and endanger wildlife. Other nearby residents raised similar objections to KRR’s application and also argued that the proposed campground would inhibit industrial growth and be unsafe because of increased boat traffic and potential flooding. Some residents expressed positive opinions about the proposed campground, stating that it would give more people access to the Kankakee River.

¶ 12 At the end of the hearing, the County Zoning Board of Appeals voted to recommend denial of KRR’s application. The application then went back to the Land Use Committee, which provided a neutral recommendation of the application to the County Board.

¶ 13 On June 11, 2013, the County Board denied KRR’s application for a map amendment to change the zoning of the property from Industrial to Agricultural and took no action on KRR’s request for a special use permit. Two weeks later, plaintiffs filed a complaint in circuit court challenging the County Board’s decision. In December 2013, plaintiffs filed an amended complaint. Count I sought declaratory judgment, seeking declarations that (A) the county ordinance’s classification of plaintiffs’ property as Industrial is arbitrary, capricious and unreasonable; (B) plaintiffs’ proposed use of their property is reasonable; and (C) defendant’s actions and inactions constituted a taking of plaintiffs’ property without reasonable compensation.

Count II sought an injunction, requesting the court to enter orders (A) enjoining defendant to approve plaintiffs’ request for a map amendment and a special use permit, and (B) enjoining defendant from interfering with plaintiffs’ use of the property as a seasonal campground. Goose Lake Township filed a petition to intervene, which the trial court granted.

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KRR Investments, LLC v. County of Grundy, 2021 IL App (3d) 190130 (Ill. Ct. App. 2021).

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